Cyclone Case Study Odisha 1999 Super Cyclone in India.
CDP Progress & Challenges for Cities | Amanda Haworth
1. www.cdp.net | @CDP
CDP Progress
& Challenges for Cities
6th ICARB Edinburgh
5th September 2014
Amanda Haworth Wiklund
2. Agenda
What is CDP?
Summary of corporate trends on climate change
Brief points re work w governments & policy-makers
Summary of CDP Cities
Key outputs & results from 2014
Questions / discussion
3. About CDP
Launched in 2000 at 10 Downing Street
CDP is an international, not-for-profit organisation providing the only global system
for companies and cities to measure, disclose, manage and share vital
environmental information.
Largest database of corporate climate change, water and forest data in the
world
Data collected from over 4,500 companies including 81% of Global 500 companies
Global focus
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.
www.cdp.net | @CDP
Page 3
4. How CDP works
Corporations and Suppliers
Authority
Information
Authority
Signatory Investors and Supply
Chain Members
Information
5. CDP’s evolution
Over 14 years ago, Carbon Disclosure Project
was started as a project that used carbon
disclosure as a means to drive corporations to
reduce their carbon emissions.
Re-branded in early 2013 we’re now called CDP,
and have evolved to cover a wider spectrum of
natural capital - water and forests.
CDP works with corporations, cities, major
procurers, government and policy makers across
the globe.
www.cdp.net | @CDP
8. 403 G500 companies took part in CDP’s climate change programme in
2013.
56 Carbon Performance Leadership Index (CPLI) companies and 60 in
our Carbon Disclosure Leadership Index (CDLI).
9. Big emitters are not doing enough to reduce
1.65%
2013: 2.544 billion tons
CO2e
2009: 2.502 billion tons
CO2e
www.cdp.net | @CDP
The 50 largest emitters in 2013
emitted 73% of total scope 1 and 2
emissions;
Primarily energy, materials and
utilities companies;
Their emissions have increased
by 1.65% since 2009; and
This pattern is true of the five
high emitters of each sector.
11. Opportunity to focus emissions efforts
www.cdp.net | @CDP
97% of companies disclose
scope 1 and 2 emissions
from their operations; but
Nearly half (47%) of the
most carbon intensive
activities companies identify
are yet to be measured.
12. Financial incentives are powerful tools
www.cdp.net | @CDP
85% of companies that provide monetary
incentives (linked to energy or emissions
reductions) to the board, executive team or all
employees, report reductions in the past year vs.
67% of other companies;
Energy is the only sector where companies with
monetary rewards are not more likely to report
decreases in emissions.
14. Company reporting continues to improve
81%
403 G500 companies reported
through CDP in 2013
www.cdp.net | @CDP
71%
Responding G500 companies
verified their emissions in 2013
15. The quality of information continues to improve
www.cdp.net | @CDP
The minimum score for
entering the CDLI has risen to
97%;
This compares to 94% in 2012
and 94% in 2011; and
The number of performance
leaders has increased from 34 to
56
18. Global 500 Financial Performance
2013 analysis on G500 leaders
Re-baselined each year
G500 leaders from each year significantly
financially outperform the G500 overall
CDLI – 5 year analysis
CPLI – 2 year analysis
www.cdp.net | @CDP
20. Work with governments and policy makers
CDP is to the future of business what the X-ray was to the then future of medicine—
without, we would never have seen the insides of a patient’s health. Christiana Figueres
Executive Secretary of the UN Framework Convention on Climate Change
CDP was a force behind landmark UK legislation in 2013 mandating the reporting of
greenhouse gas emissions in the annual financial reports of listed UK companies. CDP also
engaged strongly to support European legislation proposed in 2014 requiring listed
companies to report environmental information to shareholders.
Leveraging procurement power
National governments are now using CDP to leverage their procurement power to drive
change across their supply chains.
Climate Disclosure Standards Board
CDP provides the secretariat for the Climate Disclosure Standards Board (CDSB). CDSB
provides a framework to assist companies with the reporting of climate change and other
environmental information that is of value to investors in mainstream financial reports.
Find out more, including on how governments and stock exchanges can also incorporate
this framework, at www.cdsb.net.
www.cdp.net | @CDP
22. CDP Cities
Why CDP Cities ? What do cities disclose?
Who discloses to CDP cities?
Key outputs from 2014
Open data
Partners and Sponsors
www.cdp.net | @CDP
24. Why CDP Cities? What do cities disclose?
Reporting platform for cities around the world to disclose their
environmental information
City governments to receive the same benefits companies have
received from disclosing to CDP
Questionnaire:
- Governance
- Risks and Adaptation
- Opportunities
- GHG emissions
- Renewable Energy
- Water
www.cdp.net | @CDP
25. Who discloses to CDP Cities?
207 cities worldwide disclosed to CDP Cities in 2014
www.cdp.net | @CDP
26. Key outputs and results from 2014
CDP Cities represent a growing slice of the world’s economy:
www.cdp.net | @CDP
27. Key outputs and results from 2014
Cities have identified a great number of risks arising from climate change:
28. Key outputs and results from 2014
The majority of those risks are occurring now:
29. Key outputs and results from 2014
Cities are taking many actions to reduce their impact :
31. Key outputs
Benchmark reports
2013 was the first year we offered cities
customised, interactive online benchmark
reports
Private for cities only
Includes cities report score against
regional average (measuring breadth and
depth of city’s response in 5 themes:
governance, emissions measurement,
emissions management, risk identification,
risk management)
Benchmarks cities against regional
average on a variety of climate change data
Track progress against managing
emissions
32. Open data
A large proportion of cities public
answers from 2014 are available online
for free. http://opendata.cdp.net/
Over 500 organisations downloaded our
Open data, including World Bank, WWF,
CERES, WBCSD the China Carbon
Emissions Association, as well as
countless academics and city and
national governments around the world.
Licensed the data via a Creative Commons Attribution Non-Commercial 4.0
license, allows users to use, adapt, and re-mix the data, as long as CDP is cited as
the source and the use is non-commercial.
33. Partners and sponsors
To ensure all of those 200+ cities report we work very closely with
- a group of cities (originally 40) leading in climate change
We also work in collaboration with some partners namely:
Report analysis writer
34. What people say about CDP
“One of the most successful investor engagement programmes of recent years”. The
Financial Times
“Participating in CDP helps drive performance for Diageo. The process ensures the
business focus on environmental management is maintained. It is an invaluable tool in
demonstrating progress against our targets and gaining the support of senior
leadership. It enables us to accelerate the speed with which strategic change can be
implemented”. Diageo
Sustainability experts polled by SustainAbility deem CDP’s sustainability ratings as
the most credible in the world in its Rate the Raters survey.
Thank you for inviting me to speak. Last August Arendalsuka ref local gov’t discomfort w fossil fuel oil wealth, comp w anti-Nazi Germans during Hitler’s time.
Inception brilliant formula to present corporations w fiduciary resp. To maintain share value by measuring carbon emissions “What gets measured gets managed” so then able to adapt and/or mitigate.
On behalf of 767 investors with US$92 trillion
Figures for 2014 not yet publicly available but show a 13% overall increase in company responses, of which 18% represents an increase in climate change responses, 188% in CDP Water.
Brief explanation of difference between CPLI & CDLI
Companies achieving a position in CDP’s Climate Performance Leadership Index are those who demonstrate the strongest strategies, commitments and actions to reduce carbon emissions and mitigate the risks of climate change.
Scope 1 and 2 emissions reported by the Global 500 companies have declined since 2009 but this is in part due to the changing composition of the sample and the declining proportion of companies from high emitting sectors. Companies from energy, utilities and materials sectors now represent 23% of the sample, versus 26% in 2009, and they are responsible for 87% of the scope 1 and 2 emissions this year.
Our key message is that the companies responsible for the majority of greenhouse gas emissions are not doing enough. We conducted analysis on 50 companies with high emissions and data going back to 2009. These 50 are responsible for 73% of this year’s scope 1 and 2 emissions, they are mainly from high emitting sectors and their emissions have risen by an average of 1.65% since 2009. This pattern is also true when we looked at the high emitters in each sector.
(Note that the analysis was looking at 5 year trends so some high emitters were not included if we did not have emissions every year since 2009. This means that we can not say we identified the 50 biggest emitters of 2013 or the 5 biggest emitters per sector of 2013)
(3rd key message followed by proof points)
While the high emitters clearly present significant opportunity for change, all companies could re-examine where they focus their emissions reductions efforts.
(Refer to stats in bullet points on slide)
(Note that companies this year were asked whether scope 3 categories were relevant and then whether they were calculated, the 47% refers to categories identified as relevant but not calculated)
Graph shows in particular that companies often focus on relatively insignificant opportunities for reductions:
Use of sold products (in centre) is reported by 25% of companies and accounts for 76% of reported scope 3; and
Business travel (on left) is reported by 72% of companies and accounts for 0.2% of scope 3.
Businesses can use monetary incentives to support action: companies are 18% more likely to achieve absolute emissions reductions when staff are given financial incentives.
(Refer to stats in first bullet point on slide noting the specific combination of monetary incentives which are linked to energy or emissions reductions and are applicable to the board, the exec team or to all staff)
This trend is true for every sector except Energy.
(4th key message with proof points)
On a positive note, we are making progress: 81% of the Global 500 uses CDP to manage and disclose their climate change impacts and 71% of those responding companies now disclose verified emissions.
And the overall quality and completeness of company responses continues to improve. The score required to achieve a position in the Climate Disclosure Leadership Index (CDLI) is now 97% and the number of companies achieving performance leadership on the CPLI has increased from 34 to 56.
(5th key message with proof points)
There are commercial benefits if companies lead on climate performance: changing consumer behaviour and / or reputation are reported as presenting the greatest climate change-related opportunities for nearly every sector.
(5th key message with proof points)
91 small cities 59 medium cities 57 large cities
The 207 total covers a worldwide population of 394,360,000
