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www.carboncredentials.comwww.carboncredentials.comwww.carboncredentials.com
Maximising your 2019 CDP disclosure
14th February 2019
Carbon Credentials, CDP & Jupiter Asset Management
Speakers
Richard TarbotonDirector of Strategic
Services
Mark EvansAnalyst, Environment
& Sustainability
Sonya BhonsleGlobal Head CDP
Supply Chain
Kesi CourtmanConsultant,CDP Lead
5
Who we are
People ClientsEnergy PerformanceStrategy Data
IntegrityCuriosity
Excellence
41,000 buildings
Data from over 60 countries
14%
Savings
Collaborative Asset Performance Programme
CDP from an investor
perspective
IPCC Special Report on 1.5oC
The next ten years will be crucial to
limit global temperature rise.
Global CO2 emissions will need to decline by 45% from 2010 levels by 2030, and
reach net zero by 2050.
SBTi supports the 1.5oC aim and will be reviewing resources and
target validation protocols.
Business as usual won’t cut it anymore
Legal & General names, fames and shames corporate climate leaders and laggards
2018 CDP Results
6% 11% 27% 4% 27% 0% 22% 2%
Key trends in 2018
11% increase in companies
disclosing
4% decrease in number of UK
firms achieving an A grade
Key trends by sector
10
Maximising your 2019 CDP
disclosure: Customer requests,
scope 3 and the potential of
supply chain
February 13th, 2019
Add your voice to the conversation
#CDPSupplyChain
SONYA BHONSLE
Global Head of Supply Chain
CDP@S_Bhon
@CDP
1111Add your voice to the conversation:
#CDPSupplyChain | @CDP
2018 supply chain members
Your emissions are your customers scope 3
13Add your voice to the conversation:
#CDPSupplyChain | @CDP
SC Member Request: Set a science based target
14
This will have a ripple effect,
cascading up and down our value
chain, when customers use our
energy efficient technology that is
manufactured in factories with
science-based targets, they will cut
their own carbon emissions,
achieving exponentially more with
less environmental impact.
Lara Birkes
Vice president and chief
sustainability officer for HPE
SC Member Request: More action on emissions
15 #CDPSupplyChain | @CDP
16 Name | @TwitterAdd your voice to the conversation:
#CDPSupplyChain | @CDP
SC Member Request: Report emissions reductions
1717Add your voice to the conversation:
#CDPSupplyChain | @CDP
SC Member Request: Report emissions reductions
SC Member Request: Encouraging renewable energy purchasing
“How will we meet our new supply
chain target? Close cooperation with our
suppliers will be key. We will be
working together to help them switch
to renewable energy, and
encouraging more of them to report
to CDP. This is a critical first step
towards action for suppliers, and the
data they disclose will enable us to track
emissions reductions and uptake of
renewable energy in our supply chain”.
Gabrielle Ginér, Head of Sustainable
Business Policy at BT Group
We will reduce the carbon emissions Associated with our supply chain on 2016/17 levels by 29% by 2030
We will helpcustomers reduce
carbon by threetimes…
67.6%
6.7%
25.7%
3: 1We will help
customers reducecarbon by three
times…
…BT’s end-to-end carbon emissions
67.6%
6.7%
25.7%
Our supply chain
Customer use and disposal of our products
Our own operations
BT’s end-to-endcarbon emissions
As at 31 March 2017
19
Renewables in the supply chain: new focus for SC members
Significant consumption in tier 1 suppliers
62% of suppliers reported details of their energy consumption 27% of energy came from renewable sources
Just 4% of suppliers report having a renewable energy target
Only 83 committing to RE100 out of 5500
Add your voice to the conversation:
#CDPSupplyChain | @CDP
Consumer Goods
Retailers
Manufacturing
base
20Add your voice to the conversation:
#CDPSupplyChain | @CDP
Covering more of the supply chain: The cascade… driving action throughout the value chain
21
We take this responsibility seriously and
joined CDP Supply Chain as a founding
member for climate, water and forests.
This involvement has influenced the
environmental performance of some of our
most important strategic suppliers. Many are
now engaging their own suppliers on
these topics.
Alexandra Palt,
Corporate Responsibility Officer,
L'Oréal
Up from 23% in 2017
SC Member Request: engage your suppliers and take action on your upstream emissions
Add your voice to the conversation:
#CDPSupplyChain | @CDP
22 Name | @Twitter
We absolutely exit suppliers if they don't address environmental issues. We must take very serious measures. And the companies see who is no longer in the room.
Signify
Add your voice to the conversation:
#CDPSupplyChain | @CDP
Integrating environment into business as usual
2323Add your voice to the conversation:
#CDPSupplyChain | @CDP
*Includes actions relating to CDP member collaboration and other initiatives
CDP Global Supply Chain Summit: 1.5days, 23+ speakers, 130+ attendees from
Japan, Latin America, Europe and across the United States
European Launch: 28th February, London. Want to come? Contact CDP via
supply.chain@cdp.net
Supply Chain Report Launch
Maximising Your CDP Disclosure
Common pitfalls in the 2018 disclosure cycle
1. Board-level buy in: Not having sufficient senior engagement on
climate change
2. Targets: Not having robust targets aligned with science
3. Scope 3: Lack of transparency and control over scope 3 emissions
4. Risks & Opportunities: Insufficient understanding from senior
stakeholders on climate-related risks & opportunities
5. Scenario Analysis: Insufficient scenario analysis embedded in the risk assessment process
Addressing these pitfalls
Board level buy-in
Target setting
Scope 3
Risk & Opportunities
Scenario Analysis
Develop an engaging strategy
Develop reporting against TCFD
Develop science-based targets
Risk & Opportunities Workshop
Scope 3 Screening
Peer Review & Case for Change
3
2
1
Problem Action Quick Win
Quick Win 1: Conduct a peer review and develop a case for change
Board level buy-inDevelop an engaging
strategy Peer Review & Case for
Change1
Problem Action Quick Win
Quick Win 1: Conduct a peer review and develop a case for change
Understanding your position relative to your peers is key to senior-level buy-in
Roadmap Business case Science-based targets Engagement
£
Quick Win 1: Conduct a peer review and develop a case for change
Quick Win 2: Scope 3 Screening
Target setting
Scope 3
Develop science-based targets
Scope 3 Screening2
Problem Action Quick Win
Quick Win 2: Scope 3 typically makes up >85%
Quick Win 3: Risks & Opportunities workshop
Risk & Opps
Scenario Analysis
Develop reporting against TCFD
Risk & Opportunities Workshop3
Problem Action Quick Win
Quick Win 3: Conduct a Risks & Opportunities workshop with senior stakeholders
AcceptableImprove control measures where practicableHigh risk. Control measures to be implementedUnacceptable risk. Control measures to be implemented
Objectives of R&O workshop
1. Gather information to complete the CDP questionnaire (deadline is mid-August)
2. Develop a list of risks/ opportunities to support Prudential’s ongoing work to align with the TCFD recommendations
3. Explore options for scenario analysis and discuss next steps
CDP’s questions on risk represent a significant proportion of total points available
No. Question Disclosure Awareness Management Leadership
1 Describe what your organization considers to be short-, medium- and long-term horizon 3 3 0 0
2Select the option that best describes how your organization's processes for identifying, assessing, and managing climate-related issues are integrated into your overall risk management.
1 2 2 1
3Select the options that best describe your organization's frequency and time horizon for identifying, and assessing climate-related risks
2 2 2 1
4 Provide further details on your organization’s process(es) for identifying and assessing climate-related risks. 1 1 2 0
5Which of the following risk types are considered in your organization's climate-related risk assessments?
• E.g. Current regulation, Emerging regulation, Technology, Market, Reputation, Acute physical, Chronic physical
5 5 5 1
6 Describe your process(es) for managing climate-related risks and opportunities. 1 2 3 1
7Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.
12 12 15 3
8Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business.
12 12 15 1.5
9 Describe where and how the identified risks and opportunities have impacted your business. 5 5 5 1
10Describe where and how the identified risks and opportunities have factored into your financial planning process.
7 3.5 3.5 1
Task Force on Climate-Related Financial Disclosure
Case Study: Australia and New Zealand Banking GroupThe first bank globally to align their disclosures with the TCFD recommendations, outlining their carbon strategy governance, management, metrics and targets in their 2017 annual review.
Opportunities
• Consumer purchasing trends for renewable energy and retro fit
• New regulations resulting in more stable investment
Risks
• Rain and droughts reducing revenue of companies we invest in
• Regulations impacting key investment sectors
Scenarios
1) The New Policies Scenario reflects the policies and measures already in place and the aims, targets and intentions announced by countries including commitments under the Paris Agreement.
2) The 450 Scenario reflects what would need to happen in order to “limit the average global temperature increase in 2100 to 2 degrees Celsius above pre-industrial levels”.
Understanding the CDP Scoring
Methodology
CDP Scoring
All program-specific scoring methodologies score responses across four consecutive levels: • Disclosure: the level of detail and comprehensiveness of a response; • Awareness: knowledge of how environmental issues impact your business; • Management: evidence of actions and management methods to address these impacts; and • Leadership: implementation of best practices in the field of environmental management.
Conduct a gap analysis of your 2018 response against the updated methodology
Avoid greenwash and take action to drive performance
Gap Analysis & Scoring
Strategy Improvement
Engage
Complete CDP
Review & Submit
Plan
Email: cdp@carboncredentials.comWebsite: https://carboncredentials.com/
Linkedin: https://www.linkedin.com/company/carbon-credentials/Twitter: @CCESltd
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