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Investors use CDP information in a variety of ways: to inform and advance shareholder engagement with companies to improve environmental performance; to better understand the link between lower carbon emissions and financial performance such as through CDP’s award-winning sector research for investors; and in a variety of financial products, including low carbon indices.

• In terms of specific tools, CDP data powers Climetrics, the world’s first independent climate rating for investment funds which arms investors with the information they need to vote with their money and shift financial capital to low-carbon assets.
• CDP’s data is increasingly being used to create financial products including the New York State Common Retirement Fund’s low-carbon index created by Goldman Sachs, and the STOXX Low Carbon Indices.
• In 2018, the Euronext CDP Environment France index was launched, making it the first index globally to base its selection on how companies perform across not just climate change, but water security and deforestation metrics too.

Our new TCFD aligned, sector-focused disclosures that investors have been asking for, will also allow investors to look at the sector-specific performance metrics that have most environmental impact when assessing companies’ existing and future exposure to risk.  This allows investors to use this comparable information to better inform their engagement and investment decisions and ultimately protect their investments.