Ensure Honest Accounting
Current accounting systems fail to value environmental and social factors in business decision-making. Investors and companies too often “externalize,” or ignore, the ecological and human impacts from their activity. As a result, companies are able to exploit finite water resources at minimal cost and emit carbon freely.
Ceres is working to ensure that capital markets integrate the full costs of environmental and social factors in business strategies, risk management and public disclosure. Achieving this will ensure companies are rewarded for strong sustainable performance.
How We'll Get There:
- Propel all companies to use a carbon ‘shadow’ price in capital investment decision-making and to share that information with investors.
- Ensure all analysts, rating agencies and financial firms are factoring environmental, social and governance risks and opportunities in their research and valuations.
- Integrate sustainability factors, such as water availability, forest protection and human rights, into company and investment decision-making.
- Embed sustainability factors into the disclosure requirements of key capital market drivers such as the Securities and Exchange Commission, New York Stock Exchange and Financial Accounting Standards Board.
Incorporating Environmental, Social and Governance Factors into Investing: A Survey of Investment Consultant Practices
Oct 05, 2012
- This report shows that investment consultants retained by major asset owners such as pension funds, foundations and endowments have generally not considered environmental, social and governance (“ESG”) risks and opportunities as they advise their investor clients on their portfolios.
Stormy Future for U.S. Property/Casualty Insurers: The Growing Costs and Risks of Extreme Weather Events
Sep 20, 2012
- This Ceres report examines how extreme weather trends may be a harbinger of significant challenges ahead for a sector in which many companies are already confronting profitability and growth challenges. This analysis is based on a careful review of U.S. property/casualty insurance industry financial results as reported by A. M. Best Company in early 2012.
Sustainable Extraction? An Analysis of SEC Disclosure by Major Oil & Gas Companies on Climate Risk and Deepwater Drilling Risk
Aug 02, 2012
- Disclosure of material business risk is a core underpinning of the modern global economy’s health. A new report says that investors aren’t getting a clear picture from companies of just how deep the material risks are.
Global Investor Survey on Climate Change Report 2011
Jul 25, 2012
- This report provides the results of the second global survey of investment practices coordinated by the three investor networks on climate change – the IIGCC, based in Europe, INCR, based in North America and the Australia/New Zealand IGCC. The report provides an overview of the leading investment practices around the world on climate change and analyses the drivers for those practices.
Clearing the Waters: A Review of Corporate Water Risk Disclosure in SEC Filings
Jun 18, 2012
- New Sector Analysis added: Ceres has added sector-by-sector analyses for each of the eight sectors reviewed in this report. Download this new version. This report finds that though overall corporate disclosures of water-related risks in financial filings have increased since 2009, much reporting remains weak and inconsistent especially in regard to data on overall water use, financial exposure and potential supply chain risks.