A group of nearly 100 leading pension funds, asset managers, banks and other institutional investors have today written to the chief executives of the world's largest 415 public companies urging them to accelerate efforts to deploy cost-effective emission reduction measures.

The letters form part of the Carbon Disclosure Project's (CDP) Carbon Action initiative, which builds on the NGOs strategy of requesting emissions data from public firms.

Each of the letters is tailored to the individual recipient's circumstances, setting out a series of measures investors would like to see the company take to reduce its carbon emissions. Typically they call on chief executives to commit to delivering year-on-year emissions reductions, set targets for cutting greenhouse gas emissions, and step up investment in green measures that deliver a positive return on investment, primarily in the field of energy efficiency.

The letters were signed by 92 companies after a further 61 companies joined the initiative in the past year. New signatories include Spain's Banco Santander, Banesto and BBVA, fund manager Henderson and asset manager APG.

Claudia Kruse, head of sustainability and corporate governance at APG, said the demands contained in the letter would help businesses deliver better returns for their investors.

'Companies stand to benefit from improving operational energy efficiency, as well as from capturing the market opportunity for energy efficiency-related products and services,' she said. 'The potential upside to their short-term performance and long-term competitiveness can be material. Hence, investors need greater visibility of how management drives improvements and seizes strategic opportunities.'

Her comments were echoed by Paul Simpson, chief executive of the CDP, who argued that companies that enhance their energy efficiency will also reduce their exposure to long-term financial risks, particularly in markets where carbon pricing regulations are in place.

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