Investors

Tools for investors, companies, cities, states and regions to manage their environmental impacts. The CDP Financial Services Disclosure System allows for a baseline assessment of climate-related risks, opportunities and impacts in financing portfolios; and of how banks, asset owners, asset managers and insurance companies are preparing for the net-zero carbon transition.

Use this resource to:

• Identify: Understand the relevant climate change, forests and water security impacts to measure, based on the organization’s size, sector, and geography.
• Measure, assess and value: Track change in performance over time. Each question in the questionnaire is scored – some with reference to social or ecological thresholds – to help the organisation determine whether it is performing sustainably on that topic.
• Communicate: Report to all stakeholders on climate change, forests and water security. The questionnaires provide a framework for companies to report environmental information to their stakeholders covering governance and policy, risks and opportunity management, environmental targets and strategy, and scenario analysis. Receive an A-D grading based on questionnaire responses.
• Benchmarking and rating: Benchmark environmental performance against industry peers and receive feedback on progress each year. The information disclosed is also used by financial markets for stewardship and engagement, in investment research, new financial products, and global indices and ratings.

Regulation that sets out sustainability disclosure requirements for financial market participants within the EU. It includes disclosure requirements for firm-level as well as for investment products. Disclosure requirements cover mitigation of negative impacts termed ‘principal adverse impacts’ and performance on sustainable investment objectives.

Use this resource to:

• Communicate: Review regulation for disclosure requirements for financial market participants in the EU

Tool to report on responsible investment activities annually.

This resource calls upon organisations to:

• Communicate: Report on firm-wide and portfolio or strategy-specific investment practices.

The EU Climate Transition Benchmarks (CTB) and Paris-Aligned Benchmarks (PAB) are examples of portfolio impact benchmarking techniques being employed in regulation. The regulation sets out requirements for index providers to construct investable indexes that are on a 7% decarbonisation trajectory.

Use this resource to:

• Measure, assess and value: Review EU’s proposed approach for establishing benchmarks, which incorporates greenhouse gas emissions at portfolio level. A climate benchmark serves as an investment performance benchmark for GHG emission-related strategies; an engagement tool and a policy benchmark to help guide strategic asset allocation.

The GIIN Operating Principles for Impact Management provide a framework for investors and fund managers to manage and measure their impact. The principles outline best practices for impact management across the investment lifecycle, from strategy development to implementation, monitoring and reporting.

This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.

The Principles for Responsible Investment (PRI) are a voluntary and aspirational set of investment principles that offer a selection of possible actions for investors to incorporate sustainability topics into their investment practices.

Use this resource for the following Actions of Impact Management:

• Strategy: Commit to considering environmental, social and governance (ESG) risks and opportunities in investment decisions, and to working with other industry participants to do the same.
• Governance: Adopt active ownership, and integrate sustainability topics into policies and governance practices.

The principles provide guidance for financial institutions and their public and private stakeholders to transition to an impact-based economy that can deliver on people’s needs and aspirations within planetary boundaries. The Principles promote Positive Impact Finance as a key solution for bridging the funding gap required to achieve the Sustainable Development Goals (SDGs).

Use this resource for the following Actions of Impact Management:

• Implement: Understand key definitions and requirements for the delivery and assessment of positive impact finance.

The SDG Impact Standards for Private Equity Funds provide a decision-making framework for integrating the Sustainable Development Goals (SDGs) into one or more funds.

This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.

The SDG Impact Standards for Bond Issuers are practice standards that provide a common language and a system for integrating sustainable development issues, the Sustainable Development Goals (SDGs) and impact management practices into business and investment decision-making.

Use this resource for the following Actions of Impact Management:

• Implement: The standards are designed to transform how enterprises and investors think about value creation, and integrate impact management and contributing positively to the SDGs.

The Financial Sector Science-Based Target Guidance helps financial instituions to set science-based targets related to climate.

Use this resource for the following Actions of Impact Management:

• Set Targets and plan: Set a portfolio target for greenhouse gas emissions.