New guidelines for electricity utilities reporting on climate

London, 13 September: Institutional investors this week published guidelines to help electricity utilities report their climate change risks and opportunities.

The Institutional Investors Group on Climate Change (IIGCC), a collaboration between pension funds and asset managers representing assets of more than €3.5 trillion ($4.9 trillion), said the guidelines will make it easier for investors to compare individual companies on their climate risks and policies.

The group worked with sell-side analysts at Paris-based CA Cheuvreux and a number of European utilities to develop the Disclosure Framework for Electricity Utilities.

Six major European utilities, including EDF, EDP, Fortum RWE, Union Fenosa and Scottish and Southern Energy presented their responses to the framework at the launch in London on Wednesday.

IIGCC is now working with US-based Ceres and its Investor Network on Climate Risk to improve climate risk disclosure by electricity utilities globally.

Ceres president Mindy Lubber said: “As climate-related risks and opportunities become increasingly recognised as relevant to electric power companies and their investors, it is imperative that disclosure standards continue to improve so that financial markets can respond effectively.”