Name of presentation Name of presenterLundquist CSR Online Awards SeminarOctober 28th, 2011Diana M. Guzmán CorroDirector Southern EuropeDiana.Guzman@cdproject.netTel: 39 34 0127 2951
Lundquist CSR Online Awards SeminarAgenda I. The Carbon Disclosure Project – Introduction II. Investor CDP 2011 – CDLI and CPLI III. Information for Investors IV. Investors case studies V. Why to disclose through CDP?
Lundquist CSR Online Awards SeminarI. Carbon Disclosure Project (CDP) Introduction “The Most Powerful Green NGO Youve Never Heard Of” Harvard Business Review Blog, 5 October 2010
Lundquist CSR Online Awards Seminar“The Most Powerful Green NGO Youve Never Heard Of”* The most important global investor initiative– with the support of 551 institutional investors with US$71 trillion of asserts under management. CDP is the global standard for measurement and reporting of climate change information. The largest data base on emissions and corporate climate chance strategy. Active in 72 countries, with offices in London, Berlin, Paris, Madrid, New York, Beijing, Sap Paolo, Delhi and Tokyo.Misión“To accelerate solutions to climatechange by putting relevant informationat the heart of business, policy andinvestment decisions”“ In blu: 72 countries where CDP is present *Source : Harvard Business Review Blog, 05 Oct 2010
Lundquist CSR Online Awards Seminar Programme overview Investor CDP: 551 investors, with a combined $71 trillion in assets under management CDP Supply Chain & Public Procurement: 50 members, 1500 suppliers CDP Water Disclosure: 354 signatories with assets of US$43 trillion CDP Cities: 42 major Cities Carbon Action: 35 investors with US$7.6 trillion assets under management are asking the world’s largest companies to demonstrate that they are managing carbon effectively
Lundquist CSR Online Awards SeminarMore than 3000 companies scored in 2011 on disclosure and performance across industrial sectors Disclosure score: Performance score: •Reflects the potential quality and •Points awarded for action that completeness of the disclosure and contribute to climate change hence its likely usefulness to data- mitigation, adaptation and users. transparency (verification/assurance rewarded). •Suggests good internal data management and understanding of the issues climate change presents to the •Not a comprehensive metric of the company’s business. level to which a company is low- carbon or green‘, but indication of the •It rewards external verification and level of action taken by the company assurance of emissions data as this to manage its impacts on/from climate gives data-users greater confidence in change the reliability of the data.
Lundquist CSR Online Awards SeminarIII. Information for Investors “The Most Powerful Green NGO Youve Never Heard Of” Harvard Business Review Blog, 5 October 2010
Lundquist CSR Online Awards SeminarWhy are investors using CDP data?• Questionnaire designed by investors and for investors.• Supports investor activity • E.g. Engagements through the UN Principles for Responsible Investment• Allows benchmarking between companies The CDP data helps us to• Identifies leaders in addressing climate determine the quality of an change individual company’s• Encourages companies to identify climate management response and is a change risks and opportunities factor in our overall buy, sell and• Provides information about current and hold decisions potential suppliers Lord Sharman Chairman, Aviva
Lundquist CSR Online Awards SeminarGlobal 500 CDLI and CPLI vs benchmark total financial return
Lundquist CSR Online Awards SeminarHow is CDP data communicated to stakeholders? NON PUBLIC RESPONSES PUBLIC RESPONSES SIGNATORY REQUESTING SIGNATORY REQUESTING INVESTORS SC/PP MEMBER INVESTORS SC/PP MEMBER CDP CDP CDP WEBSITE ANALYTICS REPORTS FTSE CDP MARKIT GOOGLE BLOOMBERG CARBON INDEX FINANCE INDEXOTHER INVESTORS DISCLOSING COMPANIES YOUR CUSTOMERS GENERAL PUBLIC OTHER PUBLICATIONS
Lundquist CSR Online Awards SeminarCDP Data is used for investment decisionsBereitstellung der Daten am KapitalmarktBlomberg, Google Finance 14
Lundquist CSR Online Awards SeminarThe Markit Carbon Disclosure Leadership index family tracks theperformance of companies according to the CDP annual scores
Lundquist CSR Online Awards SeminarThe FTSE CDP Carbon Strategy Index Series aims to support investorsin incorporating climate change risks into their investment strategy
Lundquist CSR Online Awards SeminarIV. Investors case studies “The Most Powerful Green NGO Youve Never Heard Of” Harvard Business Review Blog, 5 October 2010
Lundquist CSR Online Awards SeminarCase studiesSell and buy side recommendations “Analysis of objective measures of performance on a comparable basis is vital to assessment of company’s Goldman Sachs management of ESG issues. CDP provides a valuable tool for analysis of climate change related aspects of environmental performance” “We are using extensively the Carbon Disclosure Project to fine tune our CO2 Analysis on the companies we cover. The Societé Générale CDLI is a very important metric: the more transparent the company, the less risk to discover additional CO2 emissions (and costs) moving forward”
Lundquist CSR Online Awards SeminarCase studiesThe use of CDP data by the investors “We find the CDP data for many companies to be more coprehensive than the information provided in their annual reporting and we use it as a basis for our dialogue with companies. Opening a constructive dialogue with specific companies helps Robecco to make additional information available which is highly relevant for investors to make better informed investment decisions. Through this active dialogue Robeco aims for better conduct in environmental issues, such as, for example, adopting new policies on environmental issues and setting more ambitious targets in these areas. This will decrease the risks in these companies and will make Robeco’s investments on behalf of our clients more valuable in the long-term.”
Lundquist CSR Online Awards SeminarV. Why to disclose through CDP? “The Most Powerful Green NGO Youve Never Heard Of” Harvard Business Review Blog, 5 October 2010
Lundquist CSR Online Awards SeminarWhy companies decide to disclose through CDP?Opportunity for companies to communicate and demonstrate:•Ability to provide comparable and relevant climate data to theirshareholders in response to their request•Increased awareness of greenhouse gas emission hot spots so that youcan begin to reduce them•Business leadership in understanding the risks from climate change•How the company is creating opportunities for innovation in this area•How you are future-proofing your company from climate changeimpacts.