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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



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:


SC Member Request: Report emissions reductions



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:


Consumer Goods

Retailers

Manufacturing

base



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



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



Integrating environment into business as usual



*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

[email protected]

Supply Chain Report Launch

mailto:[email protected]

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



Understanding your position relative to your peers is key to senior-level buy-in

Roadmap Business case Science-based targets Engagement

£

Quick Win 2: Scope 3 Screening

Target setting

Scope 3

Develop science-based targets

Scope 3 Screening2


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


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: [email protected]: https://carboncredentials.com/

Linkedin: https://www.linkedin.com/company/carbon-credentials/Twitter: @CCESltd

mailto:[email protected]

https://twitter.com/CCESltd

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