Poros Group · ESG
Back at Barclays Innovation Hub: what's still driving disclosure
Aakash Kapur
Enjoyed being back at Nossa's old stomping ground fka Barclays Rise (now Barclays Innovation Hub). I was there for coffee this morning and to head from speakers from CDP, the Green Alliance, and Compare Ethics, and to compare notes on what's actually driving disclosure.
A few highlights / insights that stuck with me…
The reasons why companies disclose haven't changed
1 — Access to capital: CDP is now backed by 640 investors. CDP's CEO Sherry Madera shared this as an increase this year. This figure accounts for $127M (USD) in AUM.
2 — Business efficiency: Having customer/supplier data ready, knowing what's in the supply chain, and being able to respond fast, is key to have ready before you need to close a sale. If you haven't been asked for data by a business partner yet… it's coming.
3 — Compliance: Still a drumbeat in the background, even when timelines and politics get messy with scope creeping back. Still it is directionally on track.
Most interesting fact of the morning?
CDP shared that companies disclosing through CDP reduce their direct emissions by 7–10% on average within two years of disclosing, essentially finding the "low-hanging fruit" to solve for once measured. It's no different than what I was told when entering sales for the first time, "What doesn't get measured, doesn't get acted on."
Biggest opportunity?
Understanding and managing the trillions of dollars of physical risk companies are sitting with and the upside from acting on it. There were various metrics during the panel and keynote, but having forgotten exact figures, I tracked down a CDP study released late last year stating an average of $33.1M in environmental opportunities per company vs. $4.6m in costs to realise them, representing a 7x return.
The government angle of "greenwashing"
More than one speaker highlighted the importance of growth and jobs in the eyes of most governments. One speaker made the point that governments are optimising for growth and jobs, which is not independent from sustainability, even if the language shifts. The Planning and Infrastructure Act of 2025 was presented as an example of a reading that is steeped in concepts you'd absolutely file under ESG… but without the "ESG/DEI" labels.
Did a quick Ctrl-F once I got back to my desk with too much coffee in me. I found: "climate change," "biodiversity," "community," "sustainable development" and more, but no mention of ESG and couldn't even find the word "sustainability."