1. No category

CDP Ireland Network
‘Doing Good by Being Good’
The opportunity for Ireland
Trends in Non-Financial Reporting
Gavin Whitaker
Gavin@cdpireland.net
Brian O’Kennedy
Brian@cdpireland.net
t
www.cdp.net | @CDP
Page 1
Agenda
1. Expert Seminar
•
CDP Ireland Network Update – Brian O’Kennedy , Chairman, CDP Ireland Network
•
ESG Reporting and Climate Change – The Opportunity for Ireland (The Good Video)
•
Global Developments in Corporate ESG and Non-Financial Reporting – David Wynn, Greenstone
Break
2. CDP Reporting Workshop
•
CDP Reporting: Advice from expert practitioners – panel Q&A
•
•
•
John Barcroft, DCC Plc
Tony Ryan, Kingspan Plc
Gavin Whitaker, Clearstream Solutions
•
CDP Global update, Advice & Changes to Climate Change questionnaire
•
Panel Discussion
www.cdp.net | @CDP
The Plan – Leadership and Guidance
Establish an open business network – other connected organisations
Platform for interested organisations, big or small
Free to join but members are expected to support by offering to share their
knowledge, insights and experience.
Social Media, Newsletters and Blogs
Events during 2015
•
Training workshop on CDP Reporting and the challenges of Carbon and Sustainability reporting
•
Global trends in carbon such as CRC, ESOS and Mandatory reporting in the UK, EU and US
•
Workshop on financial support available to companies working to reduce emissions
•
Other?
www.cdp.net | @CDP
Page 3
CDP Ireland Network Steering Committee
Majella Kelleher, SEAI
Shane Colgan, EPA
Sinead Whyte, ARUP
Mark Bennett, Dublin City Council
Emma Jane Joyce, NTMA
Paul Harris, Bank of Ireland Plc
Fiachra Crean, AIB
Stephen Nolan, GIFSC
John Barcroft, DCC Plc
Walter Tyrrell, UDG Healthcare
Lorcan Dowd, Kingspan Plc
Gavin Whitaker, Clearstream Solutions
Joseph Curtin, IIEA
www.cdp.net | @CDP
Brian O’Kennedy, Clearstream Solutions
Page 4
CDP Ireland Report 2014….. And 2015
This is an important year!
• Paris
• Climate Change Legislation
• Climate Change Mitigation Strategy - EPA
• Energy Efficiency Directive – ESOS in UK
www.cdp.net | @CDP
Page 5
Our Approach to Corporate Sustainability!
Why are we not leading?
Is it not important?
Do we not see a value?
What do our leaders believe?
Does it really effect us?
www.cdp.net | @CDP
Page 6
'Rising sea levels are cutting us off'
www.cdp.net | @CDP
Page 7
The Opportunity for Ireland – The Good Country?
How do we change things in Ireland? Origin Green?
Doing Good by Being Good…..
“Best country in the world to grow old in” – Enda Kenny!
http://www.ted.com/talks/simon_anholt_which_country_does_the_most_good_for_the_world
Simon Anholt TED Talk Play Video
www.cdp.net | @CDP
Join in !
Join our Linked In & Twitter groups – CDP Ireland Network
Share your knowledge, expertise and services
Attend our events – 4 per year
Interest in steering or hosting – Sponsorship
Measure and Report your emissions to CDP
Spread the word
www.cdp.net | @CDP
Page 9
Simon Anholt is an independent policy advisor who has worked for twenty years to help develop
and implement strategies for enhanced economic, political and cultural engagement with other
countries. These strategies are typically in the areas of national identity and reputation, public
diplomacy, economic competitiveness, cultural policy and cultural relations, regional integration,
export promotion, tourism, educational policy, immigration, foreign direct investment,
sustainability and talent attraction. He is best known for his work on the image and reputation of
countries, cities and regions.
www.cdp.net | @CDP
Page 10
Global Developments in Corporate ESG
and Non-Financial Reporting
David Wynn, Head of Client Services, Greenstone
17th April 2015
CONTENTS
• Introduction to Greenstone
• 3 Key Trends in Non-Financial Reporting
1. Increased Reporting
2. Reporting on Value Creation
3. Third Party Assurance
• Choosing the Right Approach
12
Introduction to
Greenstone
Introduction to Greenstone
A single, modular solution to collect, manage and report all non-financial and responsible
sourcing data across a global organisation.
ENVIRONMENT
Measure and report
resource consumption
and GHG emissions at
any organisational
level.
HEALTH & SAFETY
Record any H&S metric
relevant to your
business and analyse
performance across
your organisation.
CSR FRAMEWORKS
Meet requirements of
GRI, CDP, UNGC, DJSI and
any other required or
voluntary CSR metric.
SUPPLIERPORTAL
Track, analyse and report
the responsible sourcing
performance of your
entire supplier network
including carbon, waste
and water.
14
3 Key Trends in NonFinancial Reporting
Introduction
Reporting terminology used by N100*
•
More reporting!
•
More terminology!
•
Reputational risk is the most commonly cited
type of business risk
•
Greater transparency and balance is needed
•
Materiality are the heart of reporting
•
Integration, integration, integration
N100 (100 largest companies in 41 countries) KMPG, 2013
16
1. Increased Reporting
•
•
GRI, ISO and <IR> offer broad and flexible
frameworks while UNGC offers flexible
principles on a smaller set of indicators.
These types of reporting are useful for
external and customer audiences.
SASB, DJSI and CDP are more prescriptive
and have a more focused and therefore
narrow scope. This type of reporting is
useful for investors and finance audiences
who require comparability and
quantification.
17
1. Increased Reporting
International voluntary
reporting guidance
Type
•
What does it cover?
•
•
How is it used?
Who is it for?
•
Covers Economic, Environmental and Social
topics
A focus on materiality, stakeholder engagement
and management approach
International voluntary
disclosure platform
•
•
Organisations decide what is material for them to
report
•
‘Core’ or ‘Comprehensive’ approach
•
Any type of organisation
Specific guidance for certain sectors and SMEs on
using the framework
Organisations sign up to make 10 principles part
of their business
Covers Human Rights, Labour, the Environment
and Anti-Corruption
•
•
•
Top-down commitment
Annually required to report a public
‘Communication on Progress’
•
Any type of organisation
Over 6,000 organisations in 135 countries have
signed up to UNGC
18
1. Increased Reporting
Type
International voluntary reporting framework
•
A framework composed on Guiding Principles and
Core Content for producing an Integrated Report
•
Focused on the creation of value
•
Core content should be incorporated into a clear,
concise report showing value creation and the
connections between impacts
What does it cover?
How is it used?
•
Who is it for?
Primarily aimed at private sector reporters with
investor interest
•
Generally used by advanced reporters
International voluntary framework
•
Seven core subjects aligned with GRI
Focus on improving processes and organising
social responsibility activities within an
organisation
•
•
•
The standard is purchased as a guidance
document by organisations
It’s not reported to or assessed by ISO
•
Any type of organisation
•
Useful for those committed to improving the
sustainability of internal processes and activities
19
1. Increased Reporting
International voluntary disclosure
platform
Type
•
What does it
cover?
•
•
•
Who is it for?
•
US standard for industry-specific
mandatory filing
•
•
Focus on GHG emissions in the
climate change programme
Programmes in forestry, water,
cities & supply chain
•
How is it used?
International family of indexes on
sustainability
A set of annual prescriptive
questions
Transparently scored on Disclosure
and Performance out of 100
Any organisation can disclose
Widely used by investors to assess
Investor focus on providing
sustainability criteria on society,
economics, and the environment
for specific industry sectors
•
Companies assessed in multiple
regional indexes via questionnaires
Continuous media and stakeholder
analysis monitoring
•
All companies in the S&P Global
Broad Market Index
The most sustainable top 10%
•
•
Standards being rolled out
•
Asks organisations to report on
their sustainability with an investor
audience in mind focusing on value
•
US companies complete a form and
submit it alongside financials to the
Securities & Exchange Commission
•
Due to become mandatory for any
public company traded on a US
20
exchange
1. Increased Reporting
Energy Savings Opportunity Scheme (ESOS)
•
ESOS is a mandatory energy assessment scheme set up by
the UK government, in response to the EU’s Energy
Efficiency Directive
•
It requires qualifying organisations to measure and audit their energy usage across their buildings, transport and industrial activities
•
ESOS applies to a UK company if it either: employs more than 250 people, or has an annual turnover in excess of €50 million and an
annual balance sheet in excess of €43 million
EU Directive on Non-Financial Reporting
•
Applies to large public-interest companies with more than 500
employees and a balance sheet over €20 million, or a net turnover
over €50 million (Impacts around 6,000 companies)
•
Requires these companies to report on environmental, social, human rights, diversity and anti-bribery practices
•
EU Member States have two years to transpose the Directive into national legislation and companies are expected to begin reporting
in 2017
21
2. Reporting on Value Creation
•
•
•
•
•
The circular economy where we don't have end of life, we have end of use
‘Less bad’ is not ‘more good’
Engaging with suppliers to complete reporting on the value chain
A fundamental principle of Integrated Reporting <IR> is how an organisation leads to “the creation of value in the short, medium
and long term”
Value
•
Increasing Revenue?
•
Reducing Costs?
•
Mitigating Risks?
•
Enhancing Brand?
Creative
values
Principles
Visions
Goals
Strategies
Tactics
Metrics
Value
creation
22
3. Third Party Assurance
•
•
There is a growing trend toward assurance of reporting
This can help enhance stakeholder acceptance of the data as well as its reliability
•
A steady increase in
companies verifying is
levelling off. This could be due
to increasing internal capacity
and comfort within
organisations to internally
verify their own
environmental measurements.
Percentage of companies assuring GHG emissions data
State of Green Business Report 2015
https://www.greenbiz.com/report/state-green-business-report-2015
23
Choosing the Right Approach
WHY report?
•
Enhanced reputation, ensuring investors or because it’s mandated
•
Winning new business, improving stock prices or gaining new investment
WHO is the audience?
•
At the heart of any kind of successful communication is knowing your audience
•
Stakeholder groups are varied and often want different information communicated in a tailored way
•
The various framework, standards and guidelines available target different audiences and should be aligned with what the relevant
stakeholders see as material
WHAT needs to be reported?
•
Engaging with stakeholders to understand what they perceive to be relevant, valuable or material issues for an organisation is the key
foundation to a transparent, concise and resonant disclosure on sustainable performance
•
Important to balance what’s reported between what’s been done and the goals, targets and vision for the future, whether they be in the
short, medium or long term
24
Contact
David Wynn
Head of Client Services
dwynn@greenstoneplus.com
www.greenstoneplus.com
25
5th Floor, Crown House
143-147 Regent Street
London W1B 4NR
T:
W:
+44 (0)20 3031 4000
www.greenstoneplus.com
DCC plc – Reporting to CDP
John Barcroft – Head of Group Sustainability
DCC plc
• FTSE 250 – Sales, marketing, distribution and business support
services across 4 divisions:
–
–
–
–
•
•
•
•
Energy
Technology
Healthcare
Environmental
c. 10,000 employees
Revenue* - £11.2bn
Profit* - £208m
Operating in 13 countries
* YE 31 March 2014
Why respond to CDP?
•
•
•
•
•
•
Credible
Challenging – sets out best practice beyond just reporting the numbers
Supports other reporting requirements – CRC, FTSE
Internal benchmarking
Supports energy efficiency initiatives
Customer demand – supply chain
But…
• Limited investor interest
Answering the Questions
• Read the Scoring Methodology carefully
• Answer at least all questions that are scored.
• ‘No’ is an acceptable answer for Disclosure.
– Some questions are not scored – e.g. CC2.4 (COP21), CC9.2/10.2
• Accept that some scores will be zero.
What helps?
• Have an appropriate climate change plan/strategy.
• Set a target – absolute and/or intensity
• Build climate change into your existing risk management processes –
threats and opportunities.
• Track energy efficiency projects in your organisation
• Consider an external assurance process
Data collection
Challenges for DCC
• 600+ sites
• Limited number of automatic meters
• Relevance to the businesses
Solutions
•
•
•
•
•
Standard set of energy/carbon reporting guidelines
Regular data entry (at least quarterly)
Keep it simple but auditable
Software
Make it relevant
Software - Accuvio
•
•
•
•
•
FTSE 250 – Support Services – sales, marketing and distribution
c. 10,000 employees
Revenue – £11.2bn
Profit - £208m
Operating in 13 countries
Kingspan Group
CDP Presentation
17th April 2015
The Business

A global leader in high performance insulation and building envelopes

Market leading positions in UK, Mainland Europe, North America and Australasia

Proprietary technology drives differentiation in product performance
Our Strategy

Lead the field in high performance insulation globally with proprietary and differentiating technologies

Become the world’s leading provider of low energy building solutions – Insulated & Generate

Achieve greater geographical balance, primarily focusing on
The Americas, Western Europe and appropriate developing markets
The 3 Pillars
to achieve an average annual
return on investment of ca.
15%
CDP Experience

Reporting since 2012

59 manufacturing facilities worldwide

Collate data from each location
CDP Experience

Brief CDP Process
Step 1: Governance establishment (led by CEO)
Step 2: Appoint divisional project champions
Step 3: Record data such as energy, carbon, risks
and opportunities for each individual site
Step 4: Collate data for entire Kingspan estate
Step 5: Report Kingspan’s performance to the
Carbon Disclosure Project (CDP)
CDP Experience

Kingspan 2014 Performance: Disclosure Band B
2012

Disclosure Score:

Performance Band:
2014
43
85
N/A
B
Strategy & CDP Alignment

Confidence to shareholders – disclosing non-financial data

Enhance profitability by reducing overheads – 4.6% reduction in Energy Consumption recorded in 2014 – added c. €1m
profit

Lead by example – Net Zero Energy by 2020, 50% by 2016


Measure – Reduce – Produce – Purchase
Demonstrate viability of Net-Zero Energy – predominantly using Kingspan Products
Kingspan NZE Initiative
400
290
267
100
224
GWh 200
191
156
149
0
50 %
0
2012
2013
2014
2015
2016
Net Non-Renewable Energy Comsumption (GWh)
2017
NZE %
Strategy & CDP Alignment
Year
Total Energy Use GWh
Total Renewable Energy GWh
NZE
%
2012A
317
27
9
2013A
327
2014A
312
2015P*
334
2016P*
337
181
54
2017P*
342
193
56
60
15 GWh
18
Equivalent
88 to
28
143Profit
€1m Net
43
2014 Highlights

2014 Energy Reduction Highlights
Location
Energy Saving
CO2 Saving
Eichen, Germany
5 GWh
In progress
Jessup / Ontario, N. America
1 GWh
In progress
Pembridge / Selby / Basilton
16.3 GWh
3614 tCO2e
Portadown, Ireland
0.65 GWh
120 tCO2e
Sherburn* / Holywell, UK
3.9 GWh
1266 tCO2e
Kingscourt, Ireland*
0.7 GWh
323 tCO2e
* Actual results expected Aug 2015
Example

Kingspan Group HQ – Kingscourt, Ireland



Kingspan’s first NZE Building
ISO15001 certified for Energy Management
Kingspan systems; Wall (façades) + roof, iLED lighting, PV, Sol-Air, heat pump, solar thermal.
Example

Kingspan Insulated Panels – Kingscourt, Ireland

EPC saving: 0.7GWh – 323 tCO2e

Areas of focus: Monitoring + Targeting, iLED lighting, Compressed air, BMS, Extraction
system
Example

Kingspan Environmental – Portadown, Ireland



Heat Recovery: 0.65 GWh – 120 tCO2e
Ireland’s largest rooftop PV system
Kingspan Energy: 1.32 MWp – 1.1 GWh – 591 tCO2e
Example

Kingspan Insulated Panels – Holywell, UK


EPC saving: 1.2GWh – 101 tCO2e

Areas of focus: iLED lighting, motors, compressed air, extraction system
Kingspan Energy: 0.4MWp – 320 MWh / yr – 172 tCO2e
Example

Kingspan Insulated Panels – Sherburn, UK


EPC saving: 2.8 GWh – 1,165 tCO2e

Areas of focus: iLED lighting, motors, compressed air, extraction system.
Kingspan Energy: 5.5 MWp – 4.5 GWh – 2,416 tCO2e (100% of electricity usage on site)
Example

Kingspan Insulated Panels – Pembridge, Selby & Basildon


Thermal wheel heat recovery system: 14.6GWh – 2701 tCO2e
Selby / Pembridge iLED’s: 1.7 GWh – 913 tCO2e
Other Benefits of CDP

Platform to mitigate risks and identify opportunities associated to climate change for the future of our business.

Facilitates governance, strategy, targets & communication

Brand enhancement – e.g. Carbon trust

Demonstrates to customers / clients what can be achieved!

Drive value proposition
Impact of our products
CDP Reporting
Gavin Whitaker
Consulting Director
Gavin@clearstreamsolutions.ie
www.cdp.net | @CDP
Page 52
CDP Reporting
 Why are you disclosing to CDP ?
 Who in your organisation can help you ?
 Play the long game
Benchmark
Use available resources – www.cdp.net
 Don’t end the good work on the 30th June
 The company should benefit from the process
www.cdp.net | @CDP
Page 53
CDP Verification Importance & Benefits
Relevance
Verification is defined as a systematic,
Competency
independent process for the evaluation of
Independence
climate data against a set of predefined
Terminology
criteria.
Methodology
Availability
ISO 14064-3
AA1000
ISAE 3000
www.cdp.net | @CDP
Page 54
CDP Verification Importance & Benefits
Objectives
Level of Assurance
Stakeholders expectations – what are
investors’, customers’ and other
stakeholders’ criteria for carbon reporting
Criteria
and how much reliability do they expect or
Materiality
demand of the disclosure ?
Scope
www.cdp.net | @CDP
Page 55
CDP Verification Importance & Benefits
Increasingly verification will
become an important factor
in our assessment of
supplier responses to future
CDP responses
PepsiCo Inc
Current & Future regulation
Global prospective buyers
Investors – Bloomberg, Google Finance
Indices – Dowjones Sustainability Index
Reliability, comparability and trust
Risks and opportunities
Competitive advantage
www.cdp.net | @CDP
Page 56
Ireland 2014
 Quality of the responses is increasing – Scope 1 & 2 ?
 Majority of companies make their response public
 Majority have 3rd party Verification
 Over 60% of Irish reporting companies have employee
target or incentive.
 Company listing in a published report
www.cdp.net | @CDP
Page 57
CDP 2015
Ireland Spring Workshop
Ji Yeon Kim, Laura Pitkin & Leyla Basacik
www.cdp.net | @CDP
Page 1
Content
 Introduction
 Road to Paris 2015
 Technical overview: Questionnaire & scoring changes
 Q&A
www.cdp.net | @CDP
Page 59
Our vision
www.cdp.net | @CDP
Page 60
Our strategic goal
www.cdp.net | @CDP
Page 61
CDP in numbers
1000+
207
822
companies
report on
water
cities
use CDP
system
investors with
$95 trillion
endorse
questions
5,000+
160+
66
companies
report on
climate
change
companies
report on
forests
companies with
$1.15 trillion
annual spend
engage
suppliers
www.cdp.net | @CDP
Page 62
Road to Paris 2015: Commit to business leadership on climate
Laura Pitkin, Project Officer, Global Operations
roadtoparis@cdp.net
www.cdp.net | @CDP
Page 6
What is Road to Paris 2015?
CDP and the We Mean Business Coalition are offering companies a platform to act and be
recognized.
 Top climate performers already report stronger financial performance and a better ability to manage
the shifting dynamics of natural resources supply, customer demand and regulatory controls.
 2015 presents a unique opportunity: The UN Climate Change Conference in Paris in December
www.cdp.net | @CDP
Page 64
The initiatives and commitments to date
33
33
16
50
94
companies have endorsed one
or more of the initiatives
17
www.cdp.net | @CDP
44
Page 8
Company Commitments
British Land Company
BT Group
Carillion
Cobham
Diageo Plc
EDF
IDEAcarbon
Innovation Group
Marks and Spencer
Group plc
Morgan Sindall Group
National Express
Group Plc
National Grid
Orange
Reed Elsevier Group
TUI Group
Unilever plc
Autodesk
Colgate Palmolive Company
Ecotierra
Mars
Philip Morris International
Principal Financial Group
SkyPower
Grupo
Financiero
Banorte SAB
de CV
Braskem
Cálidda
Duratex S/A
Visão
Sustentável
www.cdp.net | @CDP
Eskom
Pick 'n Pay Stores Ltd
Sekem Group
Tiger Brands
Woolworths Holdings Ltd
Zenith Bank
Page 66
Abengoa
ACCIONA S.A.
Atmoterra
AXA Group
Bank J. Safra Sarasin AG
Commerzbank AG
Danfoss
Enel
Formula E
Fortum
GDF Suez
Gecina
H&M Hennes & Mauritz AB
Iberdrola SA
Ikea
Kering
Koninklijke KPN NV (Royal
KPN)
Lafarge
L'Oréal
Neas Energy
Nestlé
Nouveau Energy
Management
Novozymes
Pirelli
Royal Philips
SAP AG
SGS SA
Sodexo
Statkraft
Statoil
Suez Environnement
Swiss Re
T.SINAİ KALKINMA
BANKASI A.Ş.
Terna
Total
Veolia
YOOX SpA
AU Optronics
CLP Holdings
Limited
Hindustan
Construction
Company
Lenovo Group
Link Real Estate
Investment Trust
Lite-On Technology
PTT
PTT Exploration &
Production Public
Company Limited
Sindicatum
StarHub
Wipro
Dentsu Inc.
Elion
Honda Motor
Company
KAO Corporation
Kintetsu
Corporation
Kirin Holdings
Konica Minolta, Inc.
Nissan Motor Co.,
Ltd.
Ricoh Co., Ltd.
CFS Retail Property
Trust
Novion Property Group
Warehouse Group
Westpac Banking
Corporation
Why commit?
www.cdp.net | @CDP
Page 67
Why commit?
 We will offer regular updates on the Road to Paris project and global climate change policy
developments throughout the year in the lead-up to COP21.
 We will notify companies of further opportunities to actively engage in global climate change policy
developments throughout 2015.
 The Business & Climate Summit 2015, Paris, May 20 – May 21 will provide a number of public
recognition opportunities.
www.cdp.net | @CDP
Page 68
The six climate initiatives
www.cdp.net | @CDP
Page 69
Commit to GHG emissions reduction targets that limit global warming to below 2°C
Benefits:
 Drive ambition and innovations needed to transition to a lowcarbon economy
 Be well prepared to respond to regulatory and policy changes
 Demonstrate proactive management to stakeholders
Demonstrate climate leadership by
Expectations:
committing to adopt a science-
 Set targets using a science-based target setting methodology:
based GHG emissions reduction
 Sectoral Decarbonization Approach (SDA)
target.
 The 3% Solution
www.cdp.net | @CDP
Page 70
Commit to having a strategy in place to procure 100% of electricity from renewable
sources
Benefits:
 Drive the creation of a global market for renewable power
 Engage policy makers and governments to support renewable power
policies
 Receive RE100 guidance and learning resources
Expectations:
Demonstrate climate
leadership by committing to
procure 100% of electricity
 Those ready to set a 100% target now: join RE100
 Those ready to set a bold target now: start their journey towards 100%
renewable power procurement
from renewable sources.
www.cdp.net | @CDP
Page 71
Commit to removing commodity-driven deforestation from all supply chains
Benefits:
 Combat a significant source of emissions
 Address risks in supply chains
 Create a more sustainable and resilient business
Expectations: Follow CDP’s Roadmap to deforestation:
Demonstrate climate leadership by
 Comprehensive risk assessment
committing to remove commodity-
 Set targets
driven deforestation from all
 Implementation
supply chains by 2020.
 Strive for leadership
 Tracking progress through CDP’s forests program
www.cdp.net | @CDP
Page 72
Responsible corporate engagement in climate policy
Benefits:
 Demonstrate corporate responsibility to investors and customers
 Benchmark for corporate sustainability and performance
Expectations: Follow the Guide for Responsible Corporate
Engagement in Climate Policy:
Demonstrate climate leadership
 Identify
by implementing best practice for
 Align
responsible engagement in
 Report
climate policy.
www.cdp.net | @CDP
Page 73
Provide climate change information in mainstream reports
Benefits:
 Demonstrate to the finance community that company is
addressing risks and opportunities
 Encourage peers to adopt similar standards
Expectations:
Demonstrate climate leadership by
providing climate change
information in mainstream
corporate reports as a matter of
 Become a signatory to the CDSB “Statement on Fiduciary Duty
and Climate Change Disclosure”
 Use a recognized international framework such as the CDSB
Reporting Framework to produce and use climate change
information
fiduciary duty.
www.cdp.net | @CDP
Page 74
Put a price on carbon
Benefits:
 Encourage innovation and economic competitiveness
 Be well prepared for a low-carbon economy
 Encourage policy makers and governments to support carbon
pricing policies
Expectations: Align with the UN Global Compact’s Business
Leadership Criteria on Carbon Pricing:
Demonstrate climate leadership
 Set an internal price on carbon
by putting a price on carbon.
 Publicly advocate
 Report on progress
www.cdp.net | @CDP
Page 75
Key dates
February
February-April
May-July
August-October
November-December




Webinars
Business and
Climate Summit in
Paris
UN Climate
Change
Conference in
Bonn
UN Climate
Summit NYC



CDP disclosure
deadline: June 30

Road to Paris 2015
kick-off


Invitation to commit
to leadership
Introductory
webinars
UN Climate
Change
Conference in
Geneva



CDP 2015
disclosure cycle
kick-off
www.cdp.net | @CDP


ORS opens
CDP spring
workshops

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Climate Week NYC
Sign up deadline:
Oct 30

CDP scores
released

Communicating
message of strong
corporate
leadership on
climate
UN Climate
Change
Conference in
Paris (COP21)
CDP reports
released
More information and making a commitment
Where can we get more information?
 Visit our website at www.cdp.net/roadtoparis
 Email the Road to Paris team at roadtoparis@cdp.net
How can we make a commitment?
 To indicate your company is prepared to make a commitment, please email us at
roadtoparis@cdp.net.
When should we make a commitment?
 Companies are requested to sign up before October 30, 2015.
 The earlier that companies make their commitment, the more benefits and recognition they will be
able to receive in the lead-up to the UN Climate Change Conference in Paris in December 2015 (COP
21).
www.cdp.net | @CDP
Page 20
Questionnaire & scoring changes
Leyla Basacik, Senior Technical Officer CDP
Leyla.basacik@cdp.net
www.cdp.net | @CDP
Page 78
Agenda
CDP’s climate change information request:
Overview
Principles for change
Moderate questionnaire and scoring changes for 2015
Changes beyond 2015
Top tips
CDP’s water information request – overview and changes for 2015
CDP’s forests information request – overview and changes for 2015
www.cdp.net | @CDP
Page 79
CDP’s 2015 climate change information request
www.cdp.net | @CDP
Page 80
Information request structure
CDP Climate Change/ CDP Supply Chain
one response for multiple requests
CDP Climate Change
Core Climate Change
Questionnaire
 Official deadline: June 30 for investor request for climate change (absolute deadline) and July 31 for Supply Chain
 Separate questionnaires for CDP’s water and forests programs (deadline June 30th)
www.cdp.net | @CDP
Page 81
Principles for questionnaire development
 Relevance to stakeholders
 Reflect developments in environmental reporting
 Improve data quality
 Make disclosing easier
 Automate the scoring process
 Support the realization of one or more of CDP’s strategic aims
www.cdp.net | @CDP
Page 82
Question changes in 2015
Key:
No
change
Minor change
Moderate changes
0: Introduction
1: Governance
2: Strategy
3: Targets &
initiatives
4: Communications
5: Risks
6: Opportunities
7: Methodology
8: Emissions
9: S1 Breakdown
10: S2 Breakdown
11: Energy
12: Emissions
performance
13: Emissions
Trading
14: Scope 3
15: Sign off
www.cdp.net | @CDP
Page 83
Scoring changes in 2015
Overview
 More performance points available
on risk and opportunity
management, long term risk
assessment, strategy, intensity
metric reduction
 Increased threshold for full points
for scope 1 and 2 verification
www.cdp.net | @CDP
Page 84
Governance
No change
No change to
question text
CC1.2
Do you provide incentives for the management of climate change issues, including the
attainment of targets?
CC1.2a
Please provide further details on the incentives provided for the management of climate
change issues
Who is entitled to benefit
from these incentives?
The type of
incentives
Incentivized performance indicator
Comment
No change
No change
Drop down options:
• Emissions reduction project
• Emissions reduction target
• Energy reduction project
• Energy reduction target
• Efficiency project
• Efficiency target
• Behaviour change related indicator
• Other, please specify
Text field
Scoring changes
Incentivised drop down options for performance:
· Emissions/Energy reduction projects and targets;
· Efficiency projects and targets
www.cdp.net | @CDP
Drop down values replace text box:
Multiple selections allowed
Page 85
New column
Internal price on carbon
New questions
CC2.2c
Does your company use an internal price of carbon?
CC2.2d
Please provide details and examples of how your company uses an internal price of
carbon
Where possible, companies are asked to address:
i)
Scope that the emissions pertain to (Scope 1, Scope 2
and/or Scope 3);
ii) rationale for employing a price;
iii) actual price used;
iv) variances in prices over time and across geographies;
v) who is responsible for determining the price; and
vi) examples of how carbon pricing affects investment
decisions.
Scoring implications: These
questions are not scored
www.cdp.net | @CDP
Page 86
An agreement at COP21
CC2.4
Would your organization’s board of directors support an international agreement
between governments on climate change, which seeks to limit global temperature rise
to under two degree Celsius from pre-industrial levels in line with IPCC scenarios such
as RCP2.6?
CC2.4a
Please describe your board’s position on what an effective agreement would mean for
your organization and activities that you are undertaking to help deliver this agreement
at the 2015 United Nations Climate Change Conference in Paris (COP 21)
New questions
included for 1 year only
Where possible, companies are asked to address:
Scoring implications: These
questions are not scored
i)
ii)
iii)
www.cdp.net | @CDP
your organization’s view of what an effective agreement would
entail;
the implications that this agreement would have on your company;
and
the actions that your organization is actively undertaking to support
the delivery of this agreement
Page 30
Emissions reduction initiatives
Activity
type
No change
CC3.3
Did you have emissions reduction initiatives that were active within the reporting year
(this can be in the planning and/or implementation phases)
No change
CC3.3a
Please identify the total number of projects at each stage of development, and for those
in the implementation stages, the estimated CO2e savings
No change to
question text
CC3.3b
For those initiatives implemented in the reporting year, please provide details in the
table below
Description
of activity
Estimated
Scope
annual CO2e
savings (metric
tonnes CO2e)
Voluntary/ Annual
Mandatory monetary
savings (unit
currency – as
specified in
CC0.4
New columns
Scoring changes:
Changes to disclosure and performance scoring
www.cdp.net | @CDP
Page 88
Investment
required (unit
currency – as
specified in
CC0.4)
Payback
period
Estimated
lifetime of
the initiative
Drop down:
Range of
years
Comment
Communications
No change to
question text
CC4.1
Have you published information about your organization’s response to climate change and
GHG emissions performance for this reporting year in places other than in your CDP
response? If so, please attach the publication(s)
Publication
Status
Page/Section
reference
Attach the
document
Drop down options:
• No
• In mainstream financial reports in
accordance with the CDSB Framework
• In mainstream financial reports but
have not used the CDSB Framework
• In other regulatory filings
• In voluntary communications
Drop down options:
• Complete
• Underway – previous
year attached
• Underway – this is our
first year
No change
No change
New column
Amended values
www.cdp.net | @CDP
Page 89
Scoring changes:
Changes to performance scoring
Verification


www.cdp.net | @CDP
Page 2
Emissions performance
CC12.1a
Please identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined) and for each of them specify how your emissions compare to the
previous year
Reason
Emissions value (%)
Direction of change
Emissions reduction activities
Divestment
Acquisitions
Mergers
Change in output
Change in methodology
Change in boundary
Change in physical operating conditions
Unidentified
Other
www.cdp.net | @CDP
Page 91
Comment
Scoring changes:
In the ‘comment field’
companies must provide the
figures that were used in the
calculation for the figure in the
"emissions value %" column.
2016 and beyond
Overview
 Accounting and reporting on Scope 2 emissions
 Science based climate targets
 Verification/ assurance
 Sector approach
www.cdp.net | @CDP
Page 92
Scoring changes in 2016
Please note:
In 2016 companies responding to CDP Climate Change information request
will not receive a disclosure score and will not be eligible for a Climate
Disclosure Leadership Index
Companies will be scored for:
 Disclosure
 Awareness
 Management
 Leadership
and will receive bands from A to G
www.cdp.net | @CDP
Page 93
Scoring changes in 2016
Leadership
Management
A
 Each band (letter) will correspond
to a level
B

Management
Awareness
Awareness
Disclosure
C
D
There will be 2 bands per level apart
from leadership which is an A

E
F
This way the score is communicated
in a consistent way and illustrates
the continuous development a
company goes through
Disclosure
G
www.cdp.net | @CDP
Page 94
Top tips
 Review ‘Changes document for 2015’ – available on the climate change guidance web-page
 Make use of the guidance document - available on the climate change guidance web-page
 Make use of the ‘copy from last year’ button in the ORS
 Cross references to other questions are not scored, nor are links to external websites
 Use the main text fields provided for your responses and NOT the ‘Further Information’ field
 Four questions that request attachments (CC4.1, CC8.6, CC8.7, CC14.2) – these will only be
checked if attached to the right part of the response
www.cdp.net | @CDP
Page 38
CDP’s 2015 water information request
www.cdp.net | @CDP
Page 96
Investors are waking up to water risk
 CDP investor signatories hold
companies accountable for the economic,
environmental and human consequences
of their water use and management.
 CDP uses their significant voice to
move companies beyond business as
usual, to protect assets from current and
future water-related risk.
www.cdp.net | @CDP
Page 97
CDP’s water information request – a journey to stewardship
Current
state
www.cdp.net | @CDP
Risk
assessment
Implications
Page 98
Accounting
Response
Changes for 2015
 Current State
• Company wide water accounting
• Measure and monitor WASH
services
• Supplier reporting
 Risk assessment
• Structural changes; tables to allow
for more description of procedures
• 15 methods/tools now available
• No water risk assessment reason
www.cdp.net | @CDP
 Facility level water accounting
• Corporate level accounting new and
moved to Context
• Facility level water accounting only for
facilities at substantive risk
 Linkages
• Brought back from 2013 questionnaire;
now includes all linkages and trade offs
(forests, biodiversity)
Page 99
CDP’s 2015 forests information request
www.cdp.net | @CDP
Page 100
Forest risk commodities
Photo credits: Wood market in Cameroon - Ollivier Girard, CIFOR; Jukwa Village & Palm Oil Production - Ghana oneVillage Initiative; Cattle in Colombia’s eastern plains - Neil Palmer, CIAT; Soy bean at
Carimagua, in Colombia’s eastern plains - Neil Palmer, CIAT
www.cdp.net | @CDP
Page 101
2015 Forests questionnaire
Timber
Cattle Products
www.cdp.net | @CDP
Introduction
F0. Introduction
Current state
F1. Context
Risk Assessment
F2. Risk assessment
Implications
F3. Risks
F4. Opportunities
Measuring and Monitoring
F5. Measurement
F6. Traceability
Response
F7. Governance and strategy
F8. Policies
F9. Standards and targets
F10. Engagement
Challenges
F11. Barriers and challenges
Sign Off
F12. Sign off
Palm Oil
Soy
Page 102
Q&A
www.cdp.net | @CDP
Page 103
Thank you
respond@cdp.net
www.cdp.net | @CDP
Page 104