08 October 2007
Investors must start emphasising the importance of a company's environmental record before making an investment decision, climate change minister Joan Ruddock said today.
Ruddock, who opened the Carbon Disclosure Project launch in London today, emphasised the vital role played by investors in turning companies green, adding that government and business must work closely together to question and challenge practices "and more importantly, make business choice that reflect the importance of a low carbon economy."
"Investors have a particularly key role to play in this. They should give consideration to environmental and social credentials, sending out signals to the financial markets to say that carbon disclosure is vital and show companies that it will affect their investment decisions," Ruddock added.
The Carbon Disclosure Project, now in its seventh year, encourages transparency and accountability in business by calling for leading companies to disclose information on how they measure, report and manage greenhouse gas emissions.
This year has seen the project's greatest response rate since its launch, with 91 per cent of FTSE100 and 70 per cent of FTSE350 companies supplying information.