List of Most Important ESG Companies 2023

CDP

What is CDP?

CDP (formerly Carbon Disclosure Project) is a UK-based environmental reporting platform that helps companies, cities, states, and regions to measure and disclose their environmental impact. The platform collects and analyzes data on climate change, water security, and deforestation from over 9,600 organizations globally. 

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CDP Services 

• Disclosure: CDP's disclosure platform helps companies and cities to report their environmental impact in a standardized manner.
• Insight: CDP's analysis and research provide insights into environmental trends, risks, and opportunities.
• Engagement: CDP works with companies, investors, policymakers, and other stakeholders to encourage action on climate change.

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ESG Data Convergence Initiative (EDCI)

The ESG Data Convergence Initiative (EDCI) is a collaboration between leading ESG data providers to create a standardized framework for ESG data. 

The EDCI aims to address the lack of standardization in ESG data, which can make it difficult for investors to compare and evaluate companies on their ESG performance.

Features: 

The EDCI framework includes a set of common ESG indicators and metrics that companies can use to report their ESG performance. The framework also includes guidelines for data quality and transparency, as well as a data processing and validation system.

The EDCI is supported by leading ESG data providers, including MSCI, Sustainalytics, and Vigeo Eiris. The initiative aims to create a more transparent and reliable ESG data ecosystem, which will help investors make more informed decisions about their investments.

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EU Taxonomy Regulation

The EU Taxonomy Regulation is a classification system for sustainable economic activities. It aims to create a common language for sustainable finance, which will help investors identify and invest in sustainable activities.

The EU Taxonomy Regulation is based on six environmental objectives: 

• Climate change mitigation, 
• climate change adaptation, 
• Sustainable use and protection of water and marine resources, 
• Transition to a circular economy, 
• Pollution prevention and control, 
• Protection and restoration of biodiversity and ecosystems. 

The taxonomy also includes criteria for determining whether an economic activity is sustainable.

The EU Taxonomy Regulation is a key part of the EU's sustainable finance agenda. It is designed to help investors identify and invest in sustainable activities and to promote the transition to a more sustainable economy.

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) is a framework for sustainability reporting. It provides a standardized approach to reporting on sustainability issues, which helps companies communicate their sustainability performance to stakeholders.

The GRI framework includes a set of reporting guidelines that companies can use to report on their sustainability performance. 

The guidelines cover a range of sustainability issues, including environmental, social, and governance issues. 

The GRI framework is widely used by companies around the world to report on their sustainability performance. It is recognized as one of the leading sustainability reporting frameworks and is used by many investors and other stakeholders to evaluate a company's sustainability performance.

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Green House Gas Protocol (GHGP)

The Green House Gas Protocol (GHGP) is a framework for measuring and reporting greenhouse gas emissions. 

It provides a standardized approach to measuring and reporting greenhouse gas emissions, which helps companies understand and manage their climate impact.

The GHGP framework includes guidelines for measuring and reporting greenhouse gas emissions from a range of sources,

• Direct emissions from operations, 
• Emissions from the use of electricity and heat, 
• Emissions from the supply chain

The framework also includes guidance on how to set targets and manage emissions.

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Read more about the GHG Protocol here: What is the GHG Protocol? 

Read more about types of emissions here: What are Scope 1, 2, and 3 Emissions? 

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Global Warming Potential (GWP)

Global Warming Potential (GWP) is a measure of the impact of greenhouse gases on the climate. It is significant because it provides a standardized way to compare the climate impact of different greenhouse gases.

What are the GWPs?

The GWP is a measure of how much heat a greenhouse gas traps in the atmosphere over a specific period of time, compared to carbon dioxide. The higher the GWP, the more impact the gas has on the climate. 

The GWP of different greenhouse gases varies, which makes it important to use a standardized measure to compare their climate impact.

Significance 

The GWP is used by governments, companies, and other organizations to assess the climate impact of their operations and products. It is an important tool for understanding the contribution of different greenhouse gases to climate change, and for identifying opportunities to reduce emissions. The GWP is also used in international climate agreements, such as the Paris Agreement, to set targets for reducing greenhouse gas emissions.

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Institutional Investors Group on Climate Change (IIGCC)

The Institutional Investors Group on Climate Change (IIGCC) is a European organization that represents over 250 institutional investors with over €33 trillion in assets under management. 

The group's mission is to promote climate action among investors and to support policies that will facilitate the transition to a low-carbon economy. Some of the key features of IIGCC include:

• Collaboration: IIGCC brings together a diverse group of investors to share knowledge and resources, and to coordinate their efforts to address climate change.
• Engagement: The group engages with companies, policymakers, and other stakeholders to encourage action on climate change and to raise awareness of the risks and opportunities associated with the transition to a low-carbon economy.
• Research and advocacy: IIGCC conducts research and develops policy recommendations to support its mission of promoting climate action among investors.

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Intergovernmental Panel on Climate Change (IPCC)

The Intergovernmental Panel on Climate Change (IPCC) is a United Nations body that assesses the science, impacts, and risks of climate change. 

The IPCC's reports are widely regarded as the most authoritative sources of information on climate change. They are used by policymakers around the world to inform their decisions on climate action. 

Some of the key features of IPCC include:

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• Scientific rigor: The IPCC's reports are based on a rigorous scientific process that involves hundreds of experts from around the world.
• Transparency: The IPCC's processes are transparent and open to public scrutiny, and the organization seeks feedback from a wide range of stakeholders to ensure that its reports are comprehensive and accurate.
• Policy relevance: The IPCC's reports are designed to be policy-relevant, providing policymakers with the information they need to make informed decisions on climate action.

Read more about the most recent IPCC report here.

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International Energy Agency (IEA)

The International Energy Agency (IEA) is an intergovernmental organization that works to ensure reliable, affordable, and clean energy for its member countries. 

The IEA's work focuses on promoting energy efficiency, developing renewable energy sources, and reducing greenhouse gas emissions. 

Some of the key features of IEA include:

• Energy data and analysis: The IEA collects and analyzes energy data from around the world, providing policymakers with information on energy trends, technologies, and policies.
• Energy policy advice: The IEA provides policy advice to its member countries, offering recommendations on how to achieve their energy goals while reducing greenhouse gas emissions.
• International cooperation: The IEA works closely with other international organizations, including the United Nations, to promote sustainable energy policies and technologies.

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International Sustainability Standards Board (ISSB)

The International Sustainability Standards Board (ISSB) is a new organization that is being established by the International Financial Reporting Standards Foundation (IFRS). 

The ISSB will develop a global sustainability reporting standard that will enable companies to report on their sustainability performance in a consistent and comparable way. 

Some of the key features of ISSB include:

• Global reach: The ISSB is a global sustainability reporting standard that is used by companies around the world.
• Transparency: The ISSB's processes are transparent and open to public scrutiny, and the organization seek feedback from a wide range of stakeholders to ensure that its standard is comprehensive and accurate.
• Collaboration: The ISSB works closely with other sustainability standards organizations to ensure that its standard is consistent with existing frameworks and is complementary to other reporting initiatives.

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Partnership for Carbon Accounting Financials (PCAF)

The Partnership for Carbon Accounting Financials (PCAF) is a global partnership of financial institutions that work towards measuring and disclosing the carbon footprint of their investments and loans. 

The PCAF helps financial institutions align their investments with the Paris Agreement's goal of limiting global temperature rise to 1.5°C above pre-industrial levels. 

The PCAF has over 120 financial institutions as members, representing assets worth more than $43 trillion.

PCAF Asset Classes

PCAF Asset Classes is a framework that helps financial institutions measure the carbon footprint of their investments across different asset classes such as equity, fixed income, and real estate. 

The PCAF Asset Classes framework helps investors identify high-carbon investments and transition towards low-carbon alternatives.

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Principles for Responsible Investment (PRI)

The Principles for Responsible Investment (PRI) is a United Nations-supported initiative that encourages investors to integrate ESG considerations into their investment decisions. 

The PRI has over 3,000 signatories, representing over $100 trillion in assets under management. The PRI's six principles framework includes;

• Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
• Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
• Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
• Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
• Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
• Principle 6: We will each report on our activities and progress towards implementing the Principles.

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SEC Climate & ESG Task Force

The SEC Climate & ESG Task Force is a division of the United States Securities and Exchange Commission (SEC) that focuses on ESG risks and opportunities in the financial industry. 

The task force aims to identify and mitigate ESG-related risks that could impact investors, markets, and companies. 

The task force also ensures that companies disclose material ESG information to investors, which helps investors make informed investment decisions.

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Sustainability Accounting Standards Board (SASB)

The Sustainability Accounting Standards Board (SASB) is an independent, non-profit organization that develops sustainability accounting standards for companies. 

The SASB's standards help companies disclose material ESG information to investors in a standardized and comparable way. 

The SASB standards cover 77 industries and are based on industry-specific sustainability issues that are financially material to companies.

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Task Force on Climate-Related Financial Disclosures (TCFD)

The TCFD was established in 2015 by the Financial Stability Board (FSB) to develop a set of recommendations for companies to disclose climate-related financial risks. 

The recommendations cover four areas: governance, strategy, risk management, and metrics and targets. The TCFD has gained widespread support from companies, investors, and regulators worldwide, and is seen as a key tool for managing climate risks.

Features of TCFD:

• Develops recommendations for companies to disclose climate-related financial risks
• Covers four areas: governance, strategy, risk management, and metrics and targets
• Gained widespread support from companies, investors, and regulators worldwide

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The Paris Agreement

The Paris Agreement is a global agreement to limit global warming to well below 2 degrees Celsius above pre-industrial levels, and to pursue efforts to limit it to 1.5 degrees Celsius. It was adopted in 2015 by 196 parties to the United Nations Framework Convention on Climate Change (UNFCCC). The agreement includes commitments from countries to reduce their greenhouse gas emissions and to adapt to the impacts of climate change. The Paris Agreement has been a major driver of ESG investing, as investors seek to align their investments with the goals of the agreement.

Features of Paris Agreement:

• Global agreement to limit global warming to well below 2 degrees Celsius above pre-industrial levels
• Adopted in 2015 by 196 parties to the UNFCCC
• Includes commitments from countries to reduce greenhouse gas emissions and adapt to the impacts of climate change
• Major driver of ESG investing

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United Nations Framework Convention on Climate Change (UNFCCC)

The UNFCCC is an international treaty that was established in 1992 to address global warming. It has been ratified by 197 countries, including the United States. 

The UNFCCC provides a framework for international cooperation on climate change, and has led to the development of policies and regulations aimed at reducing greenhouse gas emissions.

Features of UNFCCC:

• The international treaty established in 1992 to address global warming
• Ratified by 197 countries, including the United States
• Provides a framework for international cooperation on climate change
• Led to the development of policies and regulations aimed at reducing greenhouse gas emissions

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Value Reporting Foundation (VRF)

The Value Reporting Foundation (VRF) is a non-profit organization that was formed in 2021 through the merger of the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC). 

The VRF aims to provide a comprehensive set of sustainability reporting standards that can be used by companies worldwide. The standards cover a range of ESG issues, including climate change, human rights, and social justice.

Features of VRF:

• Non-profit organization formed in 2021 through the merger of SASB and IIRC
• Aims to provide a comprehensive set of sustainability reporting standards
• Standards cover a range of ESG issues, including climate change, human rights, and social justice
• Can be used by companies worldwide

Conclusion

ESG companies play a crucial role in promoting sustainable investments and responsible business practices. The PCAF, PCAF Asset Classes, PRI, SEC Climate & ESG Task Force, SASB, and SDGs are some of the leading ESG companies that provide frameworks and standards for companies and investors to integrate ESG considerations into their decision-making process. By adopting ESG principles, companies can create long-term value for their stakeholders while contributing to global sustainability goals.

1. Requires financial market participants to disclose ESG risks and opportunities associated with their investments

2. Aims to increase transparency and help investors make informed decisions

3. Applies to asset managers, investment advisers, and other financial institutions operating in the EU

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