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As net-zero, diversity targets abound, stakeholders want more robust data

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As net-zero, diversity targets abound, stakeholders want more robust data

The ESG Insider newsletter compiles news and insights on environmental, social and governance developments driving change in business and investment decisions. Subscribe to our ESG Insider newsletter, and listen to the ESG Insider podcast on SoundCloud, Spotify and Apple Podcasts.

The 5th anniversary of the Paris Agreement on climate change over the weekend brought new net-zero commitments from a host of countries and businesses worldwide. With these new pledges, the United Nations estimates that by early 2021 countries representing around 65% of global CO2 emissions and around 70% of the world's economy will have committed to reaching net-zero emissions or carbon neutrality.

While more major companies around the world are disclosing climate change data and have improved their overall climate stewardship in recent years, gaps remain across all sectors in the total number of companies reporting and the quality of disclosures, according to the CDP, a group that surveys thousands of companies worldwide on the topic.

"We need more data and we need better data," Ateli Iyalla, managing director of CDP North America, said in an interview. "We need broader participation across underreported sectors, and we also need companies to continue to report at a higher quality."

ESG stakeholders are also seeking better data when it comes to corporate diversity. As we reported earlier this month, Nasdaq proposed requiring diversity on the boards of listed companies, but how exactly do you measure things like race and sexual orientation when data is scarce or nonexistent? Gender data is somewhat more robust, so for now we bring you a snapshot of the male/female breakdown of boards at Nasdaq-listed companies — see our Chart of the Week.

Chart of the week

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Top stories

Momentum builds for energy transition as oil, gas pledges grow

The number of North American energy companies setting net-zero absolute carbon emissions targets exploded during the second half of 2020, with utilities leading the way. Thanks to investors' increasing concerns about environmental, social and governance issues, however, the oil and gas industry is beginning to catch up.

Nasdaq diversity proposal puts thousands of company boards on notice

About 18% of the 2,707 companies listed at Nasdaq do not have any women on their boards, an S&P Global Market Intelligence analysis of public disclosures found. Nasdaq-listed companies in the energy and utilities sector had the lowest percentage of women as directors on their boards, while consumer companies listed on the exchange had the highest percentage of women in director roles.

Asset managers representing $9 trillion set net-zero target, launch initiative

A group of 30 asset managers representing more than $9 trillion in assets aims to reach net-zero emissions by 2050 by convincing companies in their portfolios and client investors to follow suit.

Environmental

Biden could seek carbon taxes with same strategy Trump used for steel, aluminum

Study finds US can reach net-zero emissions by spending just 3% more on energy

Exxon's new emissions intensity reductions pledge not strong enough – analysts

Social

COVID-19 casts spotlight on meat industry's role in antibiotic crisis

Utility regulators seek insight on environmental justice, racial inequities

Solar trade group confronts potential human rights abuses in supply chain

Governance

Corporate climate disclosures to CDP rose in 2020, but gaps remain

Japan to push back issuing first sovereign green bond despite emissions goal

French and Dutch regulators call for EU rules to stop greenwashing

ESG Indices

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