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Name of presenter
CDP Workshop
April, 2012
Spain
Outline
1. CDP Overview
2. Questions for 2012 and main changes from 2011
3. Reporter Services
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Mission
•
CDP‘s mission:
―to accelerate solutions to climate change and
water management by putting relevant
information at the heart of business, policy and
investment decisions‖
•
CDP is the
global standard
for measurement
and reporting of climate change information
•
Annual climate change information request
•
Investors
•
Purchasing organizations
•
Governments
―The work of the Carbon Disclosure
Project is crucial to the success of
global business in the 21st century. No
other organization is gathering this type
of corporate climate change data and
providing it to the marketplace.‖
Ban Ki Moon
―CDP is to the future of business what
the X-ray was to the then-future of
medicine — without it, we would never
have seen the insides of the patient's
health.‖
Christiana Figueres
Executive Secretary of the UN
Framework Convention on Climate
Change (UNFCCC)
Responders (Investor & Supply Chain programs)
2003 2004 2005 2006 2007 2008 2009 2010 2011 235 295 355 922 1449 2204 2456 3050 3715
CDP over time
0 100 200 300 400 500 600 700 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 35 95 155 225 315 385 475 534 551 655 4.5 10 21 31 41 57 55 64 71 78Our activites in Spain
• Our strategic partners are:
• CDP request carbon disclosure from the largest 85 companies by market
capitaliation
• CDP request water management discloser from the 4 companies in
water intensive sectors:utilities, energy and consumer discretionary
• Signatory Investors:
BBVA
Bankia
Banco Santander Banco Popular
Mapfre
Bankinter
CaixaBank
Banesto
Banco Sabadell
Banca Civica
655
Institutional Signatory
Investors in 2012
3,700+
Number of Companies
reporting via CDP in 2011
$78T
AUM represented by
CDP‘s signatory
investors in 2012
Proportion of Global 500
companies reporting via CDP in
2011
Proportion of Euro 300 companies
reporting via CDP in 2011.
50
CDP Supply Chain
Members in 2011
Proportion of Iberia 125 companies
reporting via CDP in 2011
Key figures for CDP
90%
81%
40%
4911
Number of companies
asked to respond to
Investor CDP 2012
SIGNATORY
INVESTORS
REQUESTING
SC/PP MEMBER
THOMSON
REUTERS
FINANCE
CDP
WEBSITE
CDP
ANALYTICS
OTHER INVESTORS
DISCLOSING COMPANIES
YOUR CUSTOMERS
GENERAL PUBLIC
OTHER PUBLICATIONS
PUBLIC RESPONSES/ SCORES
CDP
REPORTS
BLOOMBERG
SUSTAINABILITY
INDICIES
NON PUBLIC RESPONSES
SIGNATORY
INVESTORS
REQUESTING
SC/PP MEMBER
What happens to the information?
Aggregate data
and published
scores only
CDP
DATA
INVESTORS
DISCLOSING
COMPANIES
PROCURING
ORGANISATIONS
POLICY
ACTORS
ACADEMICS
Understanding
the environment
in which policies
are designed
Informing
procurement
decisions
Benchmarking,
informing strategy
& learning from
best practice
Building
knowledge in
the areas of
management,
accounting,
and policy
Engaging with companies
and incorporating data
Into financial models
Buy side
•
Engagement
with investee companies
(Robeco, Hermes)
•
Voting on shareholder resolutions
(CalSTRS, Aviva)
•
Exclusion criteria
(Pax World Investments)
•
Rank, score and screen companies
(SWIP, Calvert)
•
Analysis of carbon sensitivity of portfolios
(
Calvert, NEI
Investments, Caisse de dépôt, Generation IM, Nordea)
•
Carbon trading risk analysis
(SWIP)
Sell side
•
Broker recommendations
(Société
Générale)
•
Investment research
(Cheuvreux)
•
Peer and sector analysis
(Goldman
Sachs)
•
Creation of financial products
(i.e. ETF
Nedbank)
Investment advisors
•
Investment research
•
Risk models, sector analysis,
country risk profiles
Index providers
•
Markit Carbon Disclosure Leadership
index
•
FTSE CDP Carbon Strategy Index
•
BNEF Global Corporate Renewable
Energy Index 2011
Data providers
•
Integrate CDP data with financial
data
(Bloomberg, Thomson Reuters)
•
Rank, score and screen
companies
(Bloomberg)
CDP
DATA
Research providers
(e.g. EIRIS,
Trucost, MSCI ESG, Sustainalytics)
•
Investment research
•
Engagement with companies on
behalf of investors
CDP data in Bloomberg: Equity screening- possible research
criteria based on CDP Data
Fundamental Analysis of Individual Stocks: Page 1
(Reporting Period, Risks & Opps, GHG Emissions)
Fundamental Analysis of Individual Stocks:
Fundamental Analysis of Individual Stocks: Page 2
(GHG Emissions, Energy Use, Emissions Trading)
Fundamental Analysis: Historical Development: Page 1
(CDLI Score, Survey & Reported Year, Emissions)
The Markit Carbon Disclosure Leadership index family tracks the
performance of companies according to the CDP annual scores
The FTSE CDP Carbon Strategy Index Series aims to support investors
in incorporating climate change risks into their investment strategy
Carbon Action
•
Investors are requesting companies in the high emitting industries in G500 and FTSE
AllWorld-800 to implement cost-effective greenhouse gas emissions reductions to be
communicated through question 3 and question 13 in the 2012 Investor CDP information
request.
•
Specifically companies are being encouraged to:
•
Make year-on-year emissions reductions;
•
Identify and implement investment in greenhouse gas emissions reduction initiatives which
have a satisfactory positive return on investment;
•
Any companies that do not already have an emissions reduction target are asked to set and
publicly disclose this.
•
Companies in the G500 and FTSE AllWorld-800 in industries with potential for high
emissions in their supply chains are also asked to demonstrate their management of those
emissions.
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Name of presenter
Core modules and pages
Management
1. Governance
2. Strategy
3. Targets & Initiatives
4. Communications
Risks & Opportunities
5. Climate Change Risks
6. Climate Change Opportunities
Emissions
7. Methodology
8. Emissions Data
9. Scope 1 Emissions Breakdown
10. Scope 2 Emissions Breakdown
11. Scope 2 – Contractual
12. Energy
13. Emissions Performance
14. Emissions Trading
4. Communications
Management
1. Governance
2. Strategy
•
Responsibility for climate change
•
Reward structure
•
Risk Management Process
•
Integration with business strategy
•
Engagement with policy makers
•
Focus mostly on qualitative data
•
Aims to determine the carbon management processes your
company has in place and identify best practice activities.
Scoring Tip:
Remember scorers and data users
may not be intimately familiar with
your company. It will help if you use
internal jargon free language that
everyone could interpret.
3. Targets & Initiatives
Management
3. Targets & Initiatives
―The questions take you
through and say ‗do you
have environmental
performance targets?‘. We
didn‘t but we do now‖
Mary Armstrong
Vice President for
Environment, Health and
Safety
Boeing
Emission reduction targets
•
Absolute and/or intensity targets with details
•
Scope 3 categories updated (GHGP standards)
•
Progress within the reporting year
Enabling third parties to reduce emissions
Emissions reduction initiatives
•
NEW: Number of projects at each stage of
development and estimated annual CO2 savings
•
Details on implemented initiatives: estimated CO2 and
monetary savings, payback period, investment
required
•
Methods for driving investments for emission reduction
initiatives
Key Changes for 2012:
New Question Q3.3a
: ― Please
identify the total number of projects
at each stage of development, and
for those in the implementation
stages, the estimated CO2e
savings.‖
Scope 3 drop downs:
updated
Scoring Tips:
- 3.3a will not be scored to allow companies to adapt their reporting practices.
-Getting points for describing carbon saving initiatives (Q3.3b) is tougher than
2011. Twice as many performance points are available.
Risks & Opportunities
5/6. Climate Change Risks/Opportunities
―We have used CDP as the
main tool to drive carbon
reporting right across our
organization. It has been
really fantastic for us. We‘ve
discovered cost savings and
we have probably saved ten
million [pounds in various
ways‖
Andy Green
CEO, Logica
•
Analysis of climate change risks and opportunities
•
Based on inherent not residual risk/opportunities
•
If not relevant, you are asked to explain why –
disclosure points
Risks and Opportunities driven by
•
Regulation
•
Physical climate parameters
•
Other climate related development
Further Details
•
risk drivers, potential impact, timeframe, direct/indirect,
likelihood, magnitude of impact
•
the potential financial implications of the risk before
taking action;
•
the methods you are using to manage this risk and
•
the costs associated with these actions
Key Changes for 2012:
- No question changes
- Additional guidance provided
.
Scoring Tip:
This section is worth up to 1/3
rdof
your disclosure score. Even if you
haven’t identified risks or
opportunities, you are scored for your
explanation for why not.
Emissions
7. Methodology
•
Scope 1 & Scope 2 base year emissions (metric
tonnes of CO2)
•
Name of the standard, protocol or methodology you
have used to collect activity data and calculate
emissions
•
The source for the global warming potentials you have
used
•
The emissions factors you have applied and their
origin
Key Changes for 2012:
No question changes
Additional guidance provided
Scoring for Emissions Module:
Key areas for improvement;
- Verification of Scopes 1, 2 & 3
- Scope 3 emissions inventories
and reductions
- Q13.1a – demonstrating absolute
carbon reductions
Emissions
8. Emissions Data
•
The boundary you are using for your Scope 1 and 2
greenhouse gas inventory.
•
Scope 1 and 2 emissions in figures in line with the
boundary given.
•
The level of uncertainty of the total gross global Scope
1 and 2 emissions figures that you have supplied and
specify the sources of uncertainty.
•
Verification/assurance status that applies to your
Scope 1 and 2 emissions.
Key Changes for 2012:
No question changes
Emissions
8. Emissions Data
CDP is committed to increasing the number of verified data submissions, and encourages
verification.
Why is it important?
•
Meeting the market demand
•
institutional investors, global prospective buyers,
•
market mechanisms: EU ETS, Californian Air Resources Board, Tokyo’s metropolitan
trading scheme, Australia’s Clean Energy Package
•
Improving external perceptions
•
Recognition through CDP scoring methodology, and Dow Jones Sustainability Indexes.
•
Continued improvements: enhancing processes and gaining competitive advantage
What does a company need to consider around verification?
•
CDP paper on ―Verification of climate change‖
•
https://www.cdproject.net/en-US/Respond/Pages/verification.aspx
•
Attach third party verification/assurance statement (e.g. PDF,
letter from verifier, CDP template verification statement available
on Guidance webpage).
Note: website links will NOT be taken into account (in certain
circumstances screenshots will be accepted – e.g. EU ETS
database)
•
Documentation needs to:
1. relate to the relevant scope;
2. clearly state the type of verification/assurance that has
been given and the standard used**;
3. cover the current reporting year.
** Standard used needs to comply with CDP criteria – see list of
accepted standards at
https://www.cdproject.net/en-US/Respond/Pages/verification-standards.aspx
.
•
CDP accepts verification under way, so long as the previous
verification/assurance statement is attached as proof of process.
Scoring Tips:
- Documents should be referencing
a verification protocol, NOT a GHG
calculation protocol.
- Make sure the documents for the
reporting year are attached.
CDP Verification Template:
CDP produced a CDP verification
template to be completed by the
verifiers as a replacement for the
standard verification statement as
evidence of verification completed.
This is to allow for verifiers whose
standard assurance statement
does not cover the points
requested by CDP to demonstrate
how the reporting company has
met those requirements and allow
them to gain appropriate credit.
Emissions
9/10. Scope 1 and Scope 2 Emissions Breakdown
11. Scope 2 – Contractual
12. Energy
•
Aim to identify the degree to which activities are sensitive to energy costs and
energy supply.
•
Details on scope 2 emission calculations:
purchased energy emissions factors vs. grid average
•
Details on certificates, associated with zero or low carbon electricity
•
Country level data is useful for investors:
As this is the level at which emissions-related legislation is introduced
• How absolute emissions (Scope 1 and 2 combined)
for the reporting year compare to the previous year.
• Change in gross combined Scope 1 and 2 emissions
in metric tonnes CO2e
• Per unit currency total revenue
• Per full time equivalent FTE employee
• An additional intensity (normalized) metric that is appropriate
to business operations.
Emissions
13. Emissions Performance
Scoring Tips:
- So many performance points are
available !
- It should tell us how your actual
figures compare across years -
NOT pro-rated or averaged
- The same boundary reported at
8.1 should be used.
Emissions
14. Emissions Trading
•
Participation in existing trading schemes
•
allowances allocated/purchased
•
verified emissions
•
details of ownership
•
Originated/purchased any project based carbon credits:
•
Certified Emission Reductions (CERs) generated by activities under the Clean
Development Mechanism (CDM);
•
Emission Reduction Units (ERUs) generated by activities under the Joint
Implementation mechanism;
•
Voluntary Emission Reductions (VERs) generated by activities that reduce emissions,
Emissions
15. Scope 3
Key Changes for 2012:
- Scope 3 categories amended to
align with the new standard.
- Q15.3 and Q15.3a – amended
Scoring Tips:
- New scoring reflects the recent
publication of the GHG protocol for
Scope 3.
- CDP want companies to identify
the most relevant Scope 3
categories, so you only need to
quantify the most relevant
categories to get full marks in 2012.
- CDP does not specify which
categories –it is up to the
responders to select which is most
relevant for their company
•
WRI and WBCSD produced ―Corporate Value Chain
(Scope 3) Accounting and Reporting Standard.‖
•
Relevant Scope 3 emissions
•
Sources of Scope 3 emissions
•
Quantify – in metric tonnes CO2e
•
Methodology used
•
If you can’t quantify, provide a description
•
Verification/assurance status
•
Changes in Scope 3 emissions on a year-on-year basis
by Scope 3 category.
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Name of presenter
Membership programme which is
designed to support your carbon
management process and help you
achieve your carbon goals
Package has 5 elements
•
CDP Analytics
•
Emissions Reporting Tool
•
CDP Insights
•
Account Manager
•
Response Check
Fast growing with
55
members in
more than
10
countries
Email:
reporterservices@cdproject.net
to schedule a
personal presentation tailored to your needs
CDP Analytics
• Benchmark against CDP’s global dataset
• Powerful search filters — geography, index,
sector or company
• Turn CDP data into valuable information to
drive internal action
• Simple to use with pre-defined reports
Emissions Reporting Tool
• Move from spreadsheets to web-based
carbon management tool
• Visualize GHG data and trends
• Organize data according to your business
structure – divisions, facilities, assets and
geographies
• Identify hot spots for reductions
CDP Insights
• Webinar series – engage with carbon experts
• Share best practice with other members
• Roundtable discussions using TelePresence™
• Exclusive newsletter and website
Response Check
•
Response Check is included in member package
• Ensure your response data is complete
Account Management
•
Build a stronger relationship with CDP
• Support for the response process
• Support for the software tools
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All assistance material is available at
https://www.cdproject.net/en-US/Pages/Guidance.aspx
