An overview of CDP reporting and key developments in India including performance of leading Indian companies.

1. agneya
CDP - Taking Centre Stage
Climate change mitigation and resource conservation are fast becoming priorities in most business
operations. Once seen as nice-to-do activities there has been a major shift in understanding of the
true implications of climate change and natural resource depletion and the need for such mitigation
strategies. Organizations across the world are becoming aware of the fast changing regulations,
growing consumer awareness, increasing energy prices and the resource shortages that can
put major dents on business performance.
In the face of such developments, building investor confidence has become increasingly important.
Many investors now evaluate companies on environmental performance before making investment
decisions. In a study published by MIT Sloan School of Management1 there was clear indication that
shareholders are sensitive to environmental footprints of companies. According to the study,
companies with responsible behaviour towards environment witnessed significant positive
performance of their stock prices while those without environmental considerations, displayed
regular and even lower performance on stock prices. Organizations worldwide are aware of
such implications and are beginning to redesign and reorganize their businesses to address
risks due to climate change and resource depletion.
Over the years, several platforms have opened for organizations to report and disclose their
performance data internationally. Organizations such are CDP, GHG Protocol and Global Reporting
Initiative (GRI), provide standardized reporting platforms that have wide acceptability by
investors and other stakeholders worldwide. Other international organizations such as International
Standards Organization (ISO), LEEDS, etc., provide the means for organizations to improve
and certify their environment management systems as per internationally accepted norms.
1 “Corporate Social Responsibility and Shareholder Value: The Environmental Consciousness of Investors”, C. Flammer, MIT Sloan School
of Management, 2011

2. agneya
About CDP
CDP, formerly known as Carbon Disclosure Project, 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. A record of 722 investors, signatories to CDP, with US$87 trillion in assets –
around a third of the world’s invested capital, have asked more than 5000 organizations worldwide
to disclose their environmental performance through CDP. In 2012, more than 80% of the largest listed
companies around the world used CDP system for climate accountability. Overall, more than 4000
companies worldwide used CDP system as a tool for accounting their climate performance.
The growing number of investors
CDP Signatories
that are signatories to CDP indicates 800 100
87
the growing importance given to 700
Number of investors
Investors' Assets (in US$ Trillion) 78
71
natural resource management and 600 64
500 57 55
climate change by investor groups.
400 41
The recent expansion of CDP to 31
300 722
include water and forest in its 200
21
475
534 551 655
10 315 385
scope further testifies to the 4.5
100 225
35 95 155
importance given to crucial natural
resources. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(as on
Feb)
CDP India
CDP programme in India is relatively No. of Respondents
new. Started in 2007, CDP has 57
51 51 53
asked on behalf of investors, the 44
top 200 companies by market 37
capitalization to disclose their climate
performance through the CDP system.
Over the years, the country has
witnessed an increase in the number
of responses. From a low 35
2007 2008 2009 2010 2011 2012
respondents in 2007 there are now
No. of respondents Linear (No. of respondents)
53 respondents disclosing
performance data to CDP.

3. agneya
According to the CDP India 200 Climate Change Report, 95% of the respondents in India agree
that there are risks and opportunities associated with climate change especially regulatory risk
and resource cost. Another 81% believed that there is physical threat from climate change that could
affect business operations. Respondents also identified changing consumer behaviour as another
risk that needs to be address. Overall, these results indicate that most companies in India that have
measured environmental performance have realized that the threat climate change poses is significantly
relevant.
Leadership Index
CDP ranks companies based upon their overall performance and disclosure. Responding companies
are ranked in two categories – Climate Disclosure Leadership Index (CDLI) and Climate Performance
Leadership Index (CPLI). The first category ranks companies based on their disclosure levels while the
second category ranks them based on their overall improvement since the last disclosure. In both cases,
companies are ranked globally as well as country wise.
Performance of Indian Companies

4. agneya
All Aboard
While still at a nascent stage in India, the steady rise in participation in CDP disclosure by leading
companies is an encouraging sign. As the CDP framework becomes more integrated with global
businesses, and pressure from investors mounts, we will see more companies joining CDP thus
increasing the wealth of climate performance data available to potential investors.
Roadmap to Success - GVK Power & Infrastructure Case Study
Between 2011 and 2012, GVK Power & Infrastructure Limited and Wipro were the only two companies
to demonstrate positive improvements in their ranks at CDP India’s CDLI. While Wipro climbed a single
place to reach top spot at the Index, GVK Power & Infrastructure Limited climbed an impressive six
places to reach second.
Most of the activities that led to high ranking of GVK power & Infrastructure Limited at CDLI, including
the filing of CDP, were conceptualized, designed and implemented by Agneya. Achieving such high
standards of performance required clear foresight, strong action plan and top notch execution.
Several activities were at involved between the two CDP filings as shown below.
CDP 2011 CDP 2012
–
–