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ERM / Sustainability Institute: Costs and benefits of climate-related disclosure activities by corporate issuers and institutional investors

    Highlights and insights:

    “A new survey reveals what private sector organizations are currently spending on measuring and managing key climate change data and disclosure activities. The survey found that on average corporate issuers are spending $533,000 annually on climate-related disclosure, while institutional investors are spending an average of $1,372,000 annually to collect, analyze, and report climate data to inform their investment decisions.

    The three largest cost categories among investor respondents are:

    1. External ESG ratings, data providers, and consultants ($487,000 average annual cost for those reporting spend in this category).
    2. In-house, outside counsel, and proxy solicitor analysis of shareholder voting for ballot items related to gathering climate risk management information ($405,000 average annual cost for those reporting spend in this category).
    3. Internal climate-related investment analysis ($357,000 average annual cost for those reporting spend in this category).”
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