Transcript here - CDP Turkey

Introduction
CDP Reporting Workshop
Istanbul, 27 February 2010
Presentation by: Alicia Ayars
Introduction
– Who is CDP?
– CDP Programmes and deadlines
– Structure of the information request for CDP 2010
– New question areas for CDP 2010
– Detail regarding specific questions
– Ratings methodology
– Tips for responding
– CDP offerings
– Questions
CDP
The Growth of Institutional Support:
CDP1, 35 signatory investors, $4.5 trillion
CDP2, 95 signatory investors, $10.3 trillion
CDP3,155 signatory investors, $21 trillion
CDP4, 255 signatory investors, $31 trillion
CDP5, 315 signatory investors, $41 trillion
CDP6, 385 signatory investors, $57 trillion
CDP2009, 475 signatory investors, $55 trillion
CDP2010, 534 signatory investors, $64 trillion
“There will be a large creation and re-distribution of shareholder value in the transition
to a low carbon economy – there will be winners and losers at sector level and within
sectors at company level.
The winners are more likely to be those businesses that take the time to understand
and address this complex area.”
Tom Delay, Chief Executive, The Carbon Trust
Climate Change and Shareholder Value
March, 2006
CDP
CDP provides a global intersection between government, investors
and companies
534 INSTITUTIONAL
INVESTORS
CDP
COMBINED ASSETS
OF US $64 TRILLION
COORDINATING
SECRETARIAT
DATA MADE
PUBLICLY
AVAILABLE VIA
CDP USED BY
NON-INVESTORS
3,700 OF THE
WORLD’S LARGEST
CORPORATIONS
CDP Programmes
Programme:
Core Modules:
Additional Modules:
Investor CDP
Core Module (Q 1-22)*
Electric Utility
Auto & Auto Component
Manufacturing
Oil & Gas
CDP Supply Chain
Core Module (Q 1-22)*
Supplier Module
CDP Public Procurement
Core Module (Q 1-22)*
Supplier Module
Investor CDP AND CDP
Supply Chain/CDP Public
Procurement
Core Module (Q 1-22)*
Electric Utility
Supplier Module
Auto & Auto Component
Manufacturing
Oil & Gas
Please note the *
CDP Process
From 1 February:
Companies participating in the Investor
programme are asked to respond to the
Core Module and Additional Modules
Responses due:
31 May
With results posted from late
September though December
From 1 April:
Companies participating in CDP Supply
Chain/Public Procurement programme are
asked to respond to the Core Module and
Supplier Module
Responses due:
31 July
With results discussed from January
Structure
Structure of the Information Request CDP 2010:
– Governance – Accountability and performance incentives
– Risks & Opportunities – Regulatory, physical and other – including
financial implications; identification process
– Strategy – Linkage with business strategy, reduction targets
(including forecasting) and actions
– Emissions reporting – Scopes 1, 2, 3 reporting, methodologies and
emission factors used, reporting boundaries, data verification
– Energy use reporting – Cost of utilities and/or of fuel purchased
– Emissions trading – Cap and trade, strategies
– Communications – External reporting (e.g., CSR)
Structure
New question areas for CDP 2010
Overall the questionnaire is shorter than in 2009 with a number of sub-questions having
been removed. Significant changes from CDP 2009:
– Risk identification process - Describe your company’s process for identifying
significant risks and/or opportunities from climate change and the process for
assessing the degree to which they could affect your business, including the financial
implications.
– Link between climate change and strategy - Please describe how your overall group
business strategy links with actions taken on risks and opportunities identified, targets
and reporting.
– More granularity – Data accuracy and assurance questions broken down by emissions
scope.
– A new specific sector supplement for Oil and Gas companies.
Turkish Expansion
From the Core Module you will be asked to respond to:
Governance
Risks and opportunities
Strategy
A subset of the emissions accounting questions:
• Gross global Scope 1
• Gross global Scope 2
Emissions history
Emissions intensity
Communications
You will NOT be asked to provide answers to:
Emissions trading questions
Detailed breakdown of your Scope 1 and Scope 2 questions
If you wish to complete the full request, that is possible.
Governance
Governance
First question, highlighting
how important Governance is
to investors.
Very simple, asking how
climate change is managed
within your company
Governance
First question in the Online Response System (ORS)
Link to Guidance
document
Onscreen
Guidance
Risk and Opportunity
6 Questions cover 3 areas:
Regulatory
Physical
“Other”
Previous responses include:
€0.01 increase per KWh results in €58
million costs for some industrial sites
EUETS will put estimated additional €6
per ton on steel
Disruption to supply caused by storms
cost one company $227 million in 2008
Risk and Opportunity
Risk and Opportunity
When yes is selected:
Title of presentation
Strategy
Importance of Developing a Strategy:
– Developed strategies aid in
maintaining cohesive response
to shareholder interest/ requests
– Help companies to understand
their position in terms of
regulation
– Enable companies to take part in
international and national
regulatory discussions
– Enables companies to make
better expansion/ investment
decisions
Strategy
Pfizer:
Three separate targets:
1. Reduce CO2 emissions by 35% per $ million of revenue by 2007 from the baseline year 2000;
2. To reduce worldwide CO2 emissions on an absolute basis by 20% from 2008 to 2012 (baseline year 2007);
3. Meet 35% of Pfizer’s electricity needs by 2010 through the use of "clean" energy technologies.
VS.
Johnson & Johnson:
One absolute target:
7% absolute reduction target by
2010 against a 1990 baseline.
Emissions Accounting
Traditional emissions
reporting for S1 and S2
Changed wording
surrounding
disclosure of S2
What I own
or Control
Scope 1
What I Purchase
What I Influence
Scope 2 (Purchased Electricity)
Scope 3
Emissions Accounting
CO2, SF6, CH4, N20, HFCs, PFCs
Scope 2
Scope 1
Scope 3
Emissions Accounting
2010 Ratings Methodology
How response quality is assessed
Answer the question
Complete all applicable questions
Provide answers which are specific to the business of your organization
Provide detail, examples and case studies where possible
Provide figures where applicable – emissions, costs, investments, savings
Where unable or unwilling to answer a question, explain the reason why and any
activities in place that will enable you to answer it in the future
2010 Ratings Methodology
Assessment
How response quality is assessed
Q) What activities are you undertaking or planning to undertake to
reduce your emissions/energy use?
Indicative answer:
Energy efficiency
Many companies implement initiatives to save energy in the
use of refrigeration, thus reducing energy use and
corresponding carbon emissions.
The activity is named and
described – one point
Since CDP 2008 this initiative has been implemented at 10 of
its sites (4 in Europe, 3 in Australia and 3 in China). Each
year this is expected to save xxx Mt CO2e.
The response is specific
to the company – two
points
For example, in the Sydney site the initiative was
implemented in December 2008 by replacing the existing
refrigeration with xxxxx. This is estimated to have saved xx
MWh of energy at the Sydney site over the four month period
since its implementation.
Detail, values and a case
study are given where
appropriate –three points
Note: Some companies indicated that based on advice of general counsel, they knowingly did
not provide a more detailed response.
Helpful Tips
Tips for responding
Don’t leave questions blank – always provide a full response, even if an area
is not applicable or if a question is seemingly redundant
Leverage the supplemental Guidance
Provide answers that are specific with as much relevant detail as requested
Don’t cross–reference your responses from another question
Use the main text fields provided for your responses and not the Further
Information field
Be careful to address all points listed in the questions
Response deadline May 31st
Helpful Tips
Tips for responding - resources
Carbon Disclosure Project Information Request –
contains the latest questions posed by
Institutional Stakeholders
• Released December 2009
Carbon Disclosure Leaders Index 2010 –
describes the detailed scoring methodology to be
used to assess the companies’ responses
• Released late-February
Guidance Document – addresses FAQs and
provides further clarification/guidance on what is
expected in the responses as well as leading
examples of disclosure
• Released mid-February
Helpful Tips
Tips for responding - resources
CDP website:
- FAQs
- Reports
- Peer submissions
- CDP contacts
- Guidance
- Case studies
- Information on the
Online Reporting
System
CDSB
Climate Disclosure Standards Board:
CDSB works to develop a globally accepted framework, based on existing standards,
for corporate reporting on climate change.
Seeks to:
•
•
•
•
Elicit information of value to reporting organisations in devising and implementing their
business strategies and to users of climate change-related disclosures made in
mainstream reports.
Enhance the efficiency of capital allocation by investors, enabling them to integrate
climate change-related costs into their analyses.
Provide corporations with greater certainty on disclosure requirements and encourage
the consistency.
Provide conceptual and practical input into deliberations by regulatory agencies.
Carbon Calculators
CDP Carbon Calculation Partners
CDP Supply Chain
2009 Members
Tiered Services
Reporters have asked CDP for help building actionable insights from our
database
The global sustainability
journey creates business risk
Multiple stakeholder
reporting
Changing Demand
Supply chain upheaval
Investor re-evaluation
The CDP database captures
and quantifies the issues
Effective responses require
knowledge and insight
…energy scarcity. The gap in
demand-supply can result in high
operational costs with a resultant
impact on profitability…
Wipro
… impact how potential investors
view Air Canada and the aviation
industry…
Air Canada
CDP Reporter membership
…decrease in sales and profits
owing to elevation of production
costs and difficult procurement of
materials…
Sanyo Electric Company Ltd
Tiered Services
CDP provides knowledge and insight to respond to business risk
Meet
obligations
Information Gathering:
The largest global database
of primary corporate
emissions information
Reduce
risk
Reporting & Analysis:
Powerful Analytics to identify
performance improvements
Seize
opportunities
Communication &
Networking:
Dialogue with peers, industry
experts, Governments and
regulators
Tiered Services
CDP Reporter members have identified significant value to their
organisations
“The new analytical tools will allow us to benchmark our improving emissions
performance against thousands of other businesses and seek out further
opportunities to drive down our carbon footprint. E.ON UK will continue to invest in
the coming years in reducing carbon in our business, and new and improved CDP
systems will help guide this important work.”
Richard Scott, Head of Consultancy, E.ON Sustainable Energy
“CDP has recognised the value of the data disclosing companies provide, which
has not been readily available in the past. That's why we decided to become a
founding member of the new Reporter Services initiative. We see benefits for
investors too - providing disclosing companies with easy access to benchmarking
data will drive further improvement in climate change disclosures and data
provided to inform investment decisions.”
Mark Joiner, Executive Director Finance, National Australia Bank Limited
“CDP networking events and forums will have two real benefits for RBS Group.
Firstly we get to meet other companies and learn how they have addressed similar
challenges to our own. Secondly it provides a chance to discuss how we can
support potential clients in achieving their low-carbon objectives. “
Sefton Laing, Environmental Programme Coordinator, RBS Group
Many thanks
For further contact:
CDP London
+44 (0)20 7970 5660