Many companies have resisted disclosing environmental, social and governance data out of fear of being shunned by investors. These days, not disclosing that information may be even more risky. Energy giant Exxon Mobil Corp. learned that lesson in June when Legal & General Investment Management, Europe’s second-largest asset manager, removed the company from the holdings of its £5 billion ($6.2 billion) Future World funds, a fund group for investors who consider ESG criteria. ...
Companies that refuse to disclose ESG data face growing risks of investor hostility. Earlier this year, Legal & General Investment Management removed Exxon Mobil from its $13tn Future World funds for failing to meet emissions and reporting targets. Companies that do not lose existing investors may be passed over by new ones in favour of more transparent firms. In February, a group of 88 investors with almost $10tn in assets sent standardised environmental disclosure requests to leading companies. The Workforce Disclosure Initiative, a coalition with over $6.2bn in assets, also contacted 750 firms in July requesting staff management information.