cdp, diana guzman engagement workshop. 3rd lundquist csr online awards, venice 27-28 oct 2011

Name of presentationName of presenter

Lundquist CSR Online Awards SeminarOctober 28th, 2011

Diana M. Guzmán CorroDirector Southern [email protected]: 39 34 0127 2951

Agenda

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 Seminar

I. Carbon Disclosure Project (CDP)Introduction

“The Most Powerful Green NGO You've Never Heard Of”Harvard Business Review Blog, 5 October 2010


“To accelerate solutions to climate change by putting relevant information at the heart of business, policy and investment decisions”“

Misión

In blu: 72 countries where CDP is present*Source : Harvard Business Review Blog, 05 Oct 2010

“The Most Powerful Green NGO You've 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.

CDP over time

Responders(Investor & Supply Chain programs)


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


II. Investor CDP 2011CDLI and CPLI


Core module questions2011

MODULE PAGEIntroduction Introduction

GovernanceStrategy

Targets & Initiatives

Management

CommunicationClimate change risksRisks & Opportunities

Climate change opportunitiesEmissions Methodology

Emissions dataScope 1 emissions breakdownScope 2 emissions breakdown

Scope 2 – contractualEnergy

Emissions performanceEmissions trading

Scope 3


More than 3000 companies scored in 2011 on disclosure and performance across industrial sectors

Disclosure score:

•Reflects the potential quality and completeness of the disclosure and hence its likely usefulness to data-users.

•Suggests good internal data management and understanding of the issues climate change presents to the company’s business.

•It rewards external verification and assurance of emissions data as this gives data-users greater confidence in the reliability of the data.


Performance score:

•Points awarded for action that contribute to climate change mitigation, adaptation and transparency (verification/assurance rewarded).

•Not a comprehensive metric of the level to which a company is low-carbon or 'green‘, but indication of the level of action taken by the company to manage its impacts on/from climate change

III. Information for Investors



Why 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

• Identifies leaders in addressing climate change

• Encourages companies to identify climate change risks and opportunities

• Provides information about current and potential suppliers

The CDP data helps us to

determine the quality of an

individual company’s

management response and is a

factor in our overall buy, sell and

hold decisionsLord Sharman

Chairman, Aviva


Global 500 CDLI and CPLI vs benchmark total financial return


How is CDP data communicated to stakeholders?

SIGNATORY INVESTORSSIGNATORY INVESTORS

REQUESTING SC/PP MEMBER


BLOOMBERGBLOOMBERGGOOGLE FINANCEGOOGLE FINANCE

CDP WEBSITE

CDP WEBSITE

CDP ANALYTICS

CDP ANALYTICS

OTHER INVESTORS DISCLOSING COMPANIES YOUR CUSTOMERS GENERAL PUBLIC OTHER PUBLICATIONS

PUBLIC RESPONSES

CDP REPORTS

CDP REPORTS

MARKIT INDEX

MARKIT INDEX

FTSE CDP CARBON

INDEX

FTSE CDP CARBON

INDEX

NON PUBLIC RESPONSES

SIGNATORY INVESTORSSIGNATORY INVESTORS




Bereitstellung der Daten am KapitalmarktCDP Data is used for investment decisionsBlomberg, Google Finance

14



CDP Analytics

The Markit Carbon Disclosure Leadership index family tracks the performance of companies according to the CDP annual scores


The FTSE CDP Carbon Strategy Index Series aims to support investors in incorporating climate change risks into their investment strategy


IV. Investors case studies



Goldman Sachs

“Analysis of objective measures of performance on a comparable basis is vital to assessment of company’s management of ESG issues. CDP provides a valuable tool for analysis of climate change related aspects of environmental performance”

Societé Générale

“We are using extensively the Carbon Disclosure Project to fine tune our CO2 Analysis on the companies we cover. The CDLI is a very important metric: the more transparent the company, the less risk to discover additional CO2 emissions (and costs) moving forward”

Case studiesSell and buy side recommendations


Robecco

“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 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.”

Case studiesThe use of CDP data by the investors


V. Why 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 you can 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 change impacts.

Why companies decide to disclose through CDP?


Thank you!

Diana M. Guzmán CorroDirector Southern [email protected]


cdp, diana guzman engagement workshop. 3rd lundquist csr online awards, venice 27-28 oct 2011

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