Investors Spend US$1.3m to Assess Firms’ Climate Risks

Institutional investors typically spend US$1,372,000 annually to collect, analyse and report climate data to inform their investment decisions, according to a new survey. The poll, conducted by sustainability consultancy ERM for US investor network Ceres and Persefoni, a SaaS-based climate management and accounting platform, also found that corporate issuers spend US$533,000 per year to produce climate-related disclosures – almost exactly in line with the US$530,000 estimated by the Securities and Exchange Commission as the cost of compliance with its proposed climate disclosure rule. Asked to rate the potential benefits of climate-related disclosures and impact assessments, investor respondents ranked meeting client demand for climate disclosures highest, followed by better performance in meeting sustainability, climate, ESG and SDG goals. Investors spent most on external ESG ratings, data providers and consultants (US$487,000 per year), in-house / outside counsel, and proxy solicitor analysis of shareholder voting related to climate reporting (US$405,000), and internal climate-related investment analysis (US$357,000).

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2023 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top
Newsletter SignupReceive all the latest stories from the ESG Investor editorial team

Subscribe to our free weekly newsletter below and never miss a story.