Particularly if you’re setting targets at portfolio or firm-wide levels for carbon intensity reduction, she said, the data moves around.
The methodologies change and get updated, particularly with regard to scope three emissions, which are those emitted by a group's supply chain, not companies that it directly owns or controls.
Clients are now asking for for more data on not just carbon emissions, she added.
“Requests have escalated quite dramatically over the course of the last two years, and [the requests have] diversified.”
Previously, investors were primarily concerned with carbon reporting, but now they know that Ninety One is engaging with firms, they want to see engagement reports, diversity data on management teams, and even biodiversity data.
“You’re starting to see the requests broaden…but the data is spotty.”
Regulations incoming
Ninety One is “broadly supportive” of the UK’s incoming sustainability labelling disclosures, Moola said, adding these provide a bit more flexibility than the EU's Sustainable Finance Disclosure Regulation.
This regulation is essential, she said, to give investors comfort that the impact end of disclosure requirements has tangible effect.
“There is a real fear right now that there is lip service being paid,” she said.
“I think the disclosure is really important, but at the same time, ensuring that the drive towards sustainable investing has the intended consequence is equally important.”
Because if we create fantastic disclosures, she said, we might know exactly what we are buying, but the process behind that buying might not create the real world impact.
“Then what's the point?”
sally.hickey@ft.com
