Please note that the contents of this presentation are outdated. For the most recent news, visit www.cdsb.net. The Climate Disclosure Standards Board(CDSB) and the Carbon Disclosure Project(CDP) have hosted a webinar for the second time, to ensure your questions on the UK mandatory GHG emissions reporting legislation are answered. For further questions, please email us at info@cdsb.net.

1. WEBINAR 24 OCTOBER 2012
Introduction to the Draft Greenhouse Gas
Emissions (Director’s Report) Regulations
2013
Lois Guthrie, Executive Director
Climate Disclosure Standards Board
@CDSBGlobal

2. Q&As from the last webinar
cdsb.net/ukghgqa
• Timing
• Verification and enforcement
• Methodologies
• Reporting boundaries
• Reporting practices
• Breakdown
• Narrative
• Harmonization
• Geographical limits to reporting?
@CDSBGlobal

3. CDP & CDSB joint response to DEFRA Consultation
cdsb.net/UKGHGConsultationResponse
@CDSBGlobal

4. And…..
•A round table meeting
•More questions
•Update to the CDSB Climate Change Reporting Framework
@CDSBGlobal

5. A recap - What’s in the regulation?
Companies within scope – Quoted companies (per section 385 of the Companies Act
2006)
Disclosures (Reg 3)
GHG emissions (CO2, CH4, N2O, HFCs, PFCs, SF6)
Stationary & mobile combustion
Manufacturing processes
Fugitive emissions
Purchased electricity, heat, steam or cooling
Calculation methodology (including for activities subject to other reporting
regulation (Regs 4 & 5)
Intensity ratio (Reg 6)
First year information (Reg 7(2))
Changes in information for first reporting year (Reg 7(3))
Period for which GHG emissions are reported IF different from director’s report
period (Reg 7(4)
@CDSBGlobal

6. Upcoming UK regulation mandating GHG emissions reporting:
your questions answered
Lois Guthrie Gordon Wilson Jenny Harrison Stuart Wright Chris Havers Mardi McBrien
Executive Director, Chairman, CDSB Technical Director Manager Senior Account Manager, Managing Director,
Working Group; Sustainability Services, Sustainability Services,
CDSB CDP CDSB
Senior Manager, Climate Deloitte LLP, Deloitte LLP,
Change UK lead for carbon & UK lead for carbon
and Sustainability,
integrated reporting carbon footprinting
KPMG LLP,UK
@CDSBGlobal

7. Boundaries
Reg 3(1) – a directors report must state the annual quantity of emissions….resulting
directly from the following activities undertaken by the company….
(a) Combustion of fuel in any premises, machinery or equipment operated, owned or
controlled by the company;
(b) The use of any means of transport, machinery or equipment operated owned or
controlled by the company;
(c) The operation or control of any manufacturing process undertaken by the
company
Section 415(2) - for a financial year in which the company is a parent company and the
directors require group accounts, the directors’ report must be a consolidated report
relating to the undertakings included in the consolidation
Do activities that are operated owned or controlled go into the consolidated report?
@CDSBGlobal

8. Materiality
“We recommend that UK Government’s Guidance helps
companies to understand whether and to what extent they
are entitled or required to apply materiality determinations
or de-minimis criteria in preparing GHG emissions results for
inclusion in the Directors’ Report”.
Only to the extent necessary for an understanding of the
performance, position or development of the company?
@CDSBGlobal

9. Regulation 5
“A directors’ report must state if relevant information included in the report
was obtained as a result of the company’s compliance with………the CRC
Energy Efficiency Scheme Order 2010”
GHG Directors’ Report Regs CRC Scheme
Global in scope UK only
GHG emissions per financial Based on who pays the electricity
consolidation bill
Will adjustment be required or will CRC Scheme information be treated as
representing compliance?
@CDSBGlobal

10. Mandatory carbon reporting – key requirements
Announced by Nick Clegg at Rio + 20 in June
Scope - all UK incorporated quoted companies… (CA 06 definition) ie
with equity shares listed on main market of London Stock Exchange, EEA regulated, NYSE or NASDAQ
Scopes1 and 2 ie
Boundary issues
Global carbon direct emissions and
likely – financial
footprint (numerical) indirect (from Intensity ratio
consolidation rather
disclosure in consumption). required
than operational
directors’ report Scope 3 remains
control
voluntary
Consultation period (on draft statutory instrument) ends 17 October
Effective date – periods ending after April 2013 or October 2013
In 2015 Government will consider expanding to all large companies from 2016
Source: Deloitte LLP

11. Carbon footprint reporting – discussion points
Key issues around reporting
• What is the boundary for reporting?
• How will you collate the information? Are some countries going to be harder than others? Do
you need a better process or to train your people?
• How can you get it in time for publication within the annual report?
• How robust is the data? You need appropriate controls, systems, validation checks
• Who will be responsible for producing this information and for managing performance?
• How will you inform the Audit Committee and get their input as to what they will want to see in
order to feel satisfied things are under control?
• How will you consider assurance? Will you audit the information internally or seek independent
assurance before this information is published in the annual report?
Key issues regarding the data
- Now you have to measure this, how will you then use the information?
- How can you get the value from doing this?..
Source: Deloitte LLP

13. Disclosure rates from UK plc in 2012
Total Response rate in the FTSE index
• FTSE 100 – 96% - (Highest level of response ever)
• FTSE 350 – 68%
238 companies are disclosing emissions related data and much more in the
FTSE main market. With a further 31 FTSE listed businesses outside of the
FTSE 350 disclosing.
A wealth of information is available for businesses who currently do report,
and those who do not report.
CDP is here to share the information and promote best practice in report with
the power of climate data.
@CDSBGlobal

14. Emissions Boundaries used in the FTSE 600
Financial control
Operational control
Other
Equity share
Climate Change Reporting
Framework (CCRF)
@CDSBGlobal

15. Verification – Basic stats from the FTSE 600
Scope 1 Scope 2
@CDSBGlobal

16. FTSE 600 - Intensity breakdown
Not Specified
unit of production
square meter
megawatt hour (MWh)
square foot
Other
metric tonne of product
passenger kilometer
billion (currency) funds under management
unit hour worked
kilometer
barrel of oil equivalent (BOE)
unit of service provided
liter of product
@CDSBGlobal

17. Consumer Discretionary - Breakdown of Intensities Not Specified
unit of production
square meter
megawatt hour (MWh)
square foot
Other
metric tonne of product
passenger kilometer
billion (currency) funds under
management
unit hour worked
kilometer
Examples of ‘Other’ categories
barrel of oil equivalent (BOE)
- per housing unit completed, - Unit of sold items, - per 1000
sq ft of salesfloor, - per retail Outlet
(Pub/Hotel/Restaurant), - Per cremation and funeral, -
Number of Set Top Boxes in customer homes
@CDSBGlobal

18. Consumer Discretionary - Breakdown of Intensities
Not Specified
unit of production
Other
metric tonne of product
Examples of ‘Others’ categories
- 000 tonnes of ore milled, - Ounces of PGM produced, - metric
tonnes CO2e (net) per tonne of cementitious product, - tonne of
fine Copper
@CDSBGlobal

19. YOUR
QUESTIONS
@CDSBGlobal

20. Spotlight on leases
A property investor owns property and
lets it on full repairing and insuring
lease. The landlord has minimal
involvement and the tenants pay all the
energy bills.
Does the property investor need to
report GHG emissions from the tenants’
energy use?
@CDSBGlobal

21. Calculation methodologies
@CDSBGlobal

22. Business Review vs Strategic Report Content Requirements
Business Review Strategic Report
A fair review of the company’s business (417(3)(a)) No change (414C(2)(a))
A description of the principal risks and uncertainties facing the company No change (414C(2)(b))
(417(3)(b))
Balanced & comprehensive analysis of …development & performance…. No change (414C(3)(a))
during the financial year (417(4)(a)
Balanced and comprehensive analysis of he position of the business at No change (414C(3)(b))
the end of the year (417(4)(b))
Quoted companies only – main trends and factors likely to affect the No change (414C(4)(c))
future development, performance and position of the business (419(5)(a))
A description of the company’s strategy
(414C(4)(a))
A description of the company’s business
model (414C(4)(b))
Quoted cos - Information about environmental matters (417(5)(b)(i)) No change (414C(d)(i))
Quoted cos - Information about he company’s employees (417(5)(b)(ii) No change (414C(d)(ii))
Quoted cos - Information about social and community issues Social, community & human rights issues
(415(5)(b)(iii)) (414C(d)(iii))
Essential contractual arrangements (417(5)(c)) Deleted
A breakdown of the number of persons of
each sex who are employees, directors
and managers
@CDSBGlobal

23. Thank you!
Lois Guthrie
CEO
lois.guthrie@cdsb.net
Office: + 44 (0) 20 7415 7180 | Mobile: + 44 (0) 7740 988 391
Mardi McBrien
COO
mardi.mcbrien@cdsb.net
Office: + 44 (0) 20 7415 7180 | Mobile: + 44 (0) 7920 463 046
Skype: mardi.mcbrien.cdp.cdsb
www.cdsb.net | @CDSBGlobal
Carbon Disclosure Project, Registered Charity no. 1122330. A company limited by guarantee registered in England no. 05013650.
@CDSBGlobal