Green Accountability

At the start of 2010, the SEC issued guidance on climate change disclosure, deeming it an obligation of business and investment institutions to report climate risk information to shareholders. The SEC said "companies must meet investors' demand for carbon emissions and other climate risk data--and that such disclosures may no longer be considered voluntary," reports the RiskMetrics blog.

Yet more than 2,500 global organizations now voluntarily submit greenhouse gas emissions and climate change strategies through the investor-led Carbon Disclosure Project, added RiskMetrics.

What's more, as of July 7, shareholder proposals addressing climate and energy issues reached a record high of 101 proposals filed for the 2010 proxy season. That's almost a 50 percent increase from last year, said the environmental investor advocacy group Ceres in a press release. Of the 42 resolutions that went to a vote, 16 achieved 30 percent or more approval, nearly tripling the number that achieved that level of approval in 2009.

But it's not just environmentally conscious shareholders who consider climate-related issues important. Nearly half (48 percent) of U.S. CEOs surveyed by PricewaterhouseCoopers said they think a company's reaction to climate change will create a reputational advantage in the minds of key stakeholders, including employees, said Corporate Board. With company reputations at stake, CEOs are giving green initiatives a second look. Perhaps future proxy statements will contain enhanced environmental disclosure, reflecting enhanced green initiatives. Will stakeholders and employees take the bait?

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