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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. We must 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.

Honest AccountingCurrent 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:

  1. Propel all companies to use a carbon ‘shadow’ price in capital investment decision-making and to share that information with investors.
  2. Ensure all analysts, rating agencies and financial firms are factoring environmental, social and governance risks and opportunities in their research and valuations.
  3. Integrate sustainability factors, such as water availability, forest protection and human rights, into company and investment decision-making.
  4. 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.


Resources

Disclosure Framework for Water & Sewer Enterprises
Apr 02, 2013
In its Report on Municipal Securities Market, the United States Securities and Exchange Commission recommends the development of best practices in disclosure to improve the fairness and efficiency of the municipal market. Given the heightened attention to credit analysis across the municipal market, and the shifting operating environment facing issuers within the water and sewer sector, Ceres is issuing this disclosure framework to ensure that all material information is provided to investors in the primary and secondary markets.
Insurer Climate Risk Disclosure Survey 2012
Mar 06, 2013
This report summarizes responses from insurance companies to a survey on climate risk developed by the National Association of Insurance Commissioners (NAIC). In 2012 insurance regulators in California, New York and Washington required insurers that write in excess of $300 million in direct written premiums, and are licensed to operate in any of the three states, to disclose their climate-related risks using this survey. The aim of the survey and Ceres’ analysis of the responses is to provide regulators with substantive information about the risks to insurers posed by climate change, as well as steps insurers are taking in response to their understanding of climate change risks.
Investor Expectations for Improving Environmental & Social Performance in Canadian Oil Sands Development
Oct 22, 2012
A group of 49 investors with $2 trillion in assets under management are calling on Canadian oil sands developers to dramatically reduce the environmental and social impact of their operations.
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.