New Environmental Risk Ratings by Financial Institutions

The Financial Times recently reported that

Markit, a financial information company, will this summer launch an index based on the Carbon Disclosure Project (“CDP”) results for the 2008 survey.  “There is an increasing market both from a retail and institutional perspective for products and exposure to companies who have a good environmental management strategies, and we’re certainly getting that message from many of the institutional investors who are signatories to CDP,” Ms Joanna Lee of CDP said.

The Markit information will apparently also reflect physical risk faced by a company’s EHS management activities.  US companies have historically focused their HSE risk control efforts on compliance-oriented matters or remediation activities.  Now there may be a direct shareholder-based driver to assess the risks on a broader basis.

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