1.
Compliance & Core Values
GHG Management Trends,
Developments and Issues to Watch
Montreal, 23rd October 2013
Stephen Donofrio
Vice President, Partnerships & Innovation
Stephen.Donofrio@CDP.net / 212.378.2086
132 Crosby Street, 8th Floor, New York, NY 10012
@stephendonofrio
www.cdp.net | @CDP
Page 1

2.
Mission
{{
To transform the global economic system to
prevent dangerous climate change and
value our natural resources by putting
relevant information at the heart of
business, investment and policy decisions.
{{
@stephendonofrio
www.cdp.net | @CDP

3.
About CDP
CDP is an international,
not-for-profit organization
providing the only global
system for companies
and cities to measure,
disclose, manage and
share vital environmental
information.
{{
CDP’s detailed reporting is helping
persuade companies throughout the
world to measure, manage, disclose
and ultimately reduce their
greenhouse gas emissions. No
other organization is gathering this
type of corporate climate change
data and providing it to the
marketplace
- Ban Ki Moon,
UN Secretary General
CDP has 501(c)3 charitable status in the U.S. via its fiscal agent and sponsor liaison,
Rockefeller Philanthropy Advisors
@stephendonofrio
www.cdp.net | @CDP
{{

4.
CDP Programs – beyond carbon
{ Extension into new natural capital areas: Water – started in 2010; Forests – 2013
{ Extension into Cities
{ Action Exchange – Launched in 2013
Investor Programs
Corporate Programs
{ ACTION EXCHANGE
Cities Program
@stephendonofrio
www.cdp.net | @CDP
*New*

5.
Disclosure drives behavior change
Disclosure
process
improves
performance
@stephendonofrio
www.cdp.net | @CDP
Benchmarking
accelerates
learning
Data informs
investment and
procurement
analysis and
engagement

6.
Agenda
{ Trends & Insights
{ Increasing investor interest & corporate disclosure
{ Quality of corporate disclosure is ever-improving
{ Corporations are engaging more with value chain
{ Value chain management not advanced for all sectors
{ Financial outperformance of leading CDP companies
{ Reducing GHG emissions can be done so profitably
{ Developments
{ Corporate sustainability reporting partnerships & harmonization
{ Streamlining reporting - eXtensible Business Reporting Language
@stephendonofrio
www.cdp.net | @CDP
6

7.
Agenda
{ Trends & Insights
{ Increasing investor interest & corporate disclosure
{ Quality of corporate disclosure is ever-improving
{ Corporations are engaging more with value chain
{ Value chain management not advanced for all sectors
{ Financial outperformance of leading CDP companies
{ Reducing GHG emissions can be done so profitably
{ Developments
{ Corporate sustainability reporting partnerships & harmonization
{ Streamlining reporting - eXtensible Business Reporting Language
@stephendonofrio
www.cdp.net | @CDP
7

8.
750
90
CDP Signatories & Signatory Assets: 2003 - 2013
75
600
60
Assets ($ trillion)
Number of Signatories
Trends:
Increasing investor interest & corporate disclosure
Implications on
Disclosure:
{ 54% of world market
capitalization
To transform the global economic system to prevent
{ 81%
dangerous climate change and value our natural resources of Global 500
45
companies
by putting relevant information at the heart of business,
investment and policy decisions.
30 { In 2012, 6.8
450
300
150
15
0
0
2003
2004
2005
2006
Climate change signatories
Climate change assets
@stephendonofrio
www.cdp.net | @CDP
2007
2008
2009
2010
Water signatories
Water assets
2011
2012
Forests signatories
Forests assets
8
2013
gigatonnes of Scope
1 greenhouse gas
emissions were
disclosed through
CDP, approximately
20% of global
emissions

9.
Trends:
Quality of corporate disclosure is ever-improving
Transparency
Verification
97
71%
min score for G500 disclosure
leaders in 2013
of G500 companies verified
their GHGs in 2013
{ 2X % from 2011
{ 8% increase from 2011
@stephendonofrio
www.cdp.net | @CDP
Page 9

10.
Trends:
Corporations are engaging more with value chain
Benefits of engaging with the value chain:
{ Innovative solutions emerge for further GHG reductions
{ Strengthen relationships with stakeholders
{ Streamline processes & reduce costs
{ Redefine strategic advantage
@stephendonofrio
www.cdp.net | @CDP
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11.
Trends:
Corporations are engaging more with value chain
CDPSupplyChainProgram
US$1 trillion
@stephendonofrio
www.cdp.net | @CDP

12.
Trends:
Corporations are engaging more with value chain
“We recognize from our own experience, that working to reduce
greenhouse gas emissions can drive innovation and enable
support supplier disclosure savings....we are asking suppliers to publicly report their
cost
GHG emissions, reduction strategy and actions to the Carbon
Disclosure Project”
Asking suppliers to set a intensity target of 5% for suppliers’
Scope1 & 2
"Failure to meet these requirements [GHG disclosure, public
targets, supplier engagement] can impact your supplier ranking
and potentially diminish your ability to compete for Dell's
business”
@stephendonofrio
www.cdp.net | @CDP

13.
Agenda
{ Trends & Insights
{ Increasing investor interest & corporate disclosure
{ Quality of corporate disclosure is ever-improving
{ Corporations are engaging more with value chain
{ Value chain management not advanced for all sectors
{ Financial outperformance of leading CDP companies
{ Reducing GHG emissions can be done so profitably
{ Developments
{ Corporate sustainability reporting partnerships & harmonization
{ Streamlining reporting - eXtensible Business Reporting Language
@stephendonofrio
www.cdp.net | @CDP
13

14.
Insights:
Value chain management not advanced for all sectors
{ 403 co’s in Financials
(Banks, Diversified Financials, Insurance & Real Estate)
{ Financials make up 24% of respondents, however,
represents only 0.6% of total S1+2 emissions
{ Only 3% consider Scope 3 – Investments to be relevant
and have calculated associated GHGs
@stephendonofrio
www.cdp.net | @CDP
14

15.
{{
Under the CDP, in 2012 RBS reported greenhouse gas
emissions of 735,437 tonnes of carbon dioxide equivalent
(tCO2-e)... RBS did not report any emissions resulting from the
money it loans to fossil fuel companies or projects. These
‘financed emissions’ resulting from the bank’s loans to coal, oil
and gas companies bring the bank’s 2012 carbon footprint to up
to 1,200 times the footprint reported...
{{
- RBS’s true carbon emissions 2012, The World Development Movement (WDM)
@stephendonofrio
www.cdp.net | @CDP
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16.
Insights:
Financial outperformance of leading CDP companies (Global 500)
CDP & Sustainable Insight Capital
Management link climate change
engagement to financial performance
Over low scoring peers, co’s w/
superior CDP disclosure provide:
{ +5.2% return on equity
{ +18.1% cash flow stability
{ +1.6% dividend growth
@stephendonofrio
www.cdp.net | @CDP

17.
Insights:
Reducing GHG emissions can be done profitably
{ CDP, WWF & McKinsey found:
{ By reducing emissions, the US corporate
sector could save $780 billion (NPV basis)
by 2020
{ 79% of S&P 500 companies reporting to
CDP earn higher returns on their carbon
reduction investments than in their general
portfolio
{ Companies with higher emissions intensities
than others in their sectors tend to exhibit
lower levels of profitability
@stephendonofrio
www.cdp.net | @CDP

18.
Agenda
{ Trends & Insights
{ Increasing investor interest & corporate disclosure
{ Quality of corporate disclosure is ever-improving
{ Corporations are engaging more with value chain
{ Value chain management not advanced for all sectors
{ Financial outperformance of leading CDP companies
{ Reducing GHG emissions can be done so profitably
{ Developments
{ Corporate sustainability reporting partnerships & harmonization
{ Streamlining reporting - eXtensible Business Reporting Language
@stephendonofrio
www.cdp.net | @CDP
18

19.
Developments:
Corporate sustainability reporting partnerships & harmonization
DJSI & GRI to promote the
harmonization and clarification of
sustainability reporting
guidelines and frameworks
SASB & IIRC to promote greater
understanding, visibility and
support for the development of
integrated disclosure standards
with regard to material issues in
sustainability
@stephendonofrio
www.cdp.net | @CDP

20.
Developments:
Streamlining reporting - eXtensible Business Reporting Language
Electronic language of the 'XML' family that enables computers to tag and recognize
information in a comprehensive and standardized way across business systems
@stephendonofrio
www.cdp.net | @CDP
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21.
{{
We have also been encouraging CDP to
develop sectoral methodologies, so that as
the CPLI evolves it can more closely reflect
the strategic challenges that are unique to
high-impact sectors.
{{
- Helen Wildsmith
Head of Ethical & Responsible Investments, CCLA
@stephendonofrio
www.cdp.net | @CDP
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22.
Compliance & Core Values
GHG Management Trends,
Developments and Issues to Watch
Montreal, 23rd October 2013
Stephen Donofrio
Vice President, Partnerships & Innovation
Stephen.Donofrio@CDP.net / 212.378.2086
132 Crosby Street, 8th Floor, New York, NY 10012
@stephendonofrio
www.cdp.net | @CDP
Page 22