Two thirds of institutional investors are willing to put more capital in sustainable investments but are challenged by low disclosure on climate credentials of firms, according to a survey by HSBC.
The study, which surveyed about 300 institutional investors and about 300 corporates, revealed that less than 25% of firms made disclosures on environmental impact, while only 13% had adopted sustainable financing strategies.
However, the study also found that a quarter of firms who currently do not disclose their environmental impact plan to do so in the coming year.
Also, half of those surveyed said that they have strategies to lower their carbon footprint, and 34% said that they intend to disclose it in the coming 12 months.
Three quarters of investors planning to make green investments said that they are hindered from doing so by lack of credible investment opportunities, and a lack of access to quality research.
Respondents also agreed that more pressure from investors and regulators, and incentives for green financing are likely to encourage greater environmental disclosure and the launch of sustainable strategies.
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HSBC Climate Business Council head Andre Brandao said: “Moving to a low-carbon economy depends on a strong ecosystem for green financing and investment.
“This survey suggests there is a significant pool of capital available to firms with strong green credentials, but an absence of climate disclosure by companies, and a shortage of investors accessing research into this market, is putting a brake on allocation."