Improving transparency as the foundation for carbon performance

Transcription

1 Improving transparency as the foundation for carbon performance CDP Canada Climate Change Report 12 On behalf of 655 investors with assets of US$ 78 trillion Report written for Carbon Disclosure Project by: Carbon Disclosure Project 6 W 48th Street, 1th Floor New York, NY 136 info@cdproject.net

2 24 CDP Investor Members 12 Members CDP works with investors globally to advance the investment opportunities and reduce the risks posed by climate change. It does this by asking almost 6, of the world s largest companies to report on their climate change strategies, GHG emissions and energy use in the standardized Investor CDP format. To learn more about CDP s member offering and becoming a member, please contact us or visit the CDP Investor Member section at: investormembers ABRAPP Aegon AKBANK T.A.Ş. Allianz Global Investors Aviva Investors AXA Group Bank of America Merrill Lynch Bendigo and Adelaide Bank Blackrock BP Investment Management California Public Employees Retirement System - CalPERS California State Teachers Retirement Fund - CalSTRS Calvert Asset Management Company Catholic Super CCLA Daiwa Asset Management Co. Ltd. Generation Investment Management HSBC Holdings KLP Legg Mason London Pension Fund Authority Mongeral Aegon Seguros e Previdência S/A Morgan Stanley National Australia Bank NEI Investments Neuberger Berman Newton Investment Management Ltd Nordea Investment Management Norges Bank Investment Management PFA Pension Robeco Rockefeller & Co. SAM Group Sampension KP Livsforsikring A/S Schroders Scottish Widows Investment Partnership SEB Sompo Japan Insurance Inc Standard Chartered TD Asset Management Inc. and TDAM USA Inc. The RBS Group The Wellcome Trust 1 CDP INVESTOR SIGNATORIES AND ASSETS (US$ TRILLION) AGAINST TIME Investor CDP Signatories Investor CDP Signatory Assets SIGNATORY INVESTOR BREAKDOWN 259 (39%) Asset Managers 2 (33%) Asset Owners 143 (21%) Banks 33 (5%) Insurance 13 (2%) Other Number of Signatories Assets (US$ Trillions) 39 2

3 CDP Signatory Investors 12 Signatories 655 financial institutions with assets of US $78 trillion were signatories to the CDP 12 information request dated February 1st, 12 Aberdeen Asset Managers Aberdeen Immobilien KAG mbh ABRAPP - Associação Brasileira das Entidades Fechadas de Previdência Complementar Achmea NV Active Earth Investment Management Acuity Investment Management Addenda Capital Inc. Advanced Investment Partners AEGON N.V. AEGON-INDUSTRIAL Fund Management Co., Ltd AFP Integra AIG Asset Management AK Asset Management Inc. AKBANK T.A.Ş. Alberta Investment Management Corporation (AIMCo) Alberta Teachers Retirement Fund Alcyone Finance AllenbridgeEpic Investment Advisers Limited Allianz Elementar Versicherungs-AG Allianz Global Investors Kapitalanlagegesellschaft mbh Allianz Group Altira Group Amalgamated Bank AMP Capital Investors AmpegaGerling Investment GmbH Amundi AM ANBIMA Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais Antera Gestão de Recursos S.A. APG AQEX LLC Aquila Capital Arisaig Partners Asia Pte Ltd Arma Portföy Yönetimi A.Ş. ASM Administradora de Recursos S.A. ASN Bank Assicurazioni Generali Spa ATI Asset Management ATP Group Australia and New Zealand Banking Group Limited Australian Ethical Investment AustralianSuper Avaron Asset Management AS Aviva Investors Aviva plc AXA Group Baillie Gifford & Co. BaltCap BANCA CÍVICA S.A. Banca Monte dei Paschi di Siena Group Banco Bradesco S/A Banco Comercial Português S.A. Banco de Credito del Peru BCP Banco de Galicia y Buenos Aires S.A. Banco do Brasil S/A Banco Espírito Santo, SA Banco Nacional de Desenvolvimento Econômico e Social - BNDES Banco Popular Español Banco Sabadell, S.A. Banco Santander Banesprev Fundo Banespa de Seguridade Social Banesto Bank Handlowy w Warszawie S.A. Bank of America Merrill Lynch Bank of Montreal Bank Vontobel Bankhaus Schelhammer & Schattera Kapitalanlagegesellschaft m.b.h. BANKIA S.A. BANKINTER BankInvest Banque Degroof Banque Libano-Francaise Barclays Basellandschaftliche Kantonalbank BASF Sociedade de Previdência Complementar Basler Kantonalbank Bâtirente Baumann and Partners S.A. Bayern LB BayernInvest Kapitalanlagegesellschaft mbh BBC Pension Trust Ltd BBVA Bedfordshire Pension Fund Beetle Capital BEFIMMO SCA Bendigo & Adelaide Bank Limited Bentall Kennedy Berenberg Bank Berti Investments BioFinance Administração de Recursos de Terceiros Ltda BlackRock Blom Bank SAL Blumenthal Foundation BNP Paribas Investment Partners BNY Mellon BNY Mellon Service Kapitalanlage Gesellschaft Boston Common Asset Management, LLC BP Investment Management Limited Brasilprev Seguros e Previdência S/A. British Airways Pension Investment Management Limited British Columbia Investment Management Corporation (bcimc) BT Investment Management Busan Bank CAAT Pension Plan Cadiz Holdings Limited Caisse de dépôt et placement du Québec Caisse des Dépôts Caixa Beneficente dos Empregados da Companhia Siderurgica Nacional - CBS Caixa de Previdência dos Funcionários do Banco do Nordeste do Brasil (CAPEF) Caixa Econômica Federal Caixa Geral de Depositos CaixaBank, S.A California Public Employees Retirement System California State Teachers Retirement System California State Treasurer Calvert Investment Management, Inc Canada Pension Plan Investment Board Canadian Friends Service Committee (Quakers) Canadian Imperial Bank of Commerce (CIBC) Canadian Labour Congress Staff Pension Fund CAPESESP Capital Innovations, LLC CARE Super Carmignac Gestion Catherine Donnelly Foundation Catholic Super CBF Church of England Funds CBRE Cbus Superannuation Fund CCLA Investment Management Ltd Celeste Funds Management Limited Central Finance Board of the Methodist Church Ceres CERES-Fundação de Seguridade Social Change Investment Management Christian Brothers Investment Services Christian Super Christopher Reynolds Foundation Church Commissioners for England Church of England Pensions Board CI Mutual Funds Signature Global Advisors City Developments Limited Clean Yield Asset Management ClearBridge Advisors Climate Change Capital Group Ltd CM-CIC Asset Management Colonial First State Global Asset Management Comerica Incorporated COMGEST Commerzbank AG CommInsure Commonwealth Bank Australia Commonwealth Superannuation Corporation Compton Foundation Concordia Versicherungsgruppe Connecticut Retirement Plans and Trust Funds Co-operative Financial Services (CFS) Credit Suisse Daegu Bank Daesung Capital Management Daiwa Asset Management Co. Ltd. Daiwa Securities Group Inc. Dalton Nicol Reid de Pury Pictet Turrettini & Cie S.A. DekaBank Deutsche Girozentrale Delta Lloyd Asset Management Deutsche Asset Management Investmentgesellschaft mbh Deutsche Bank AG Development Bank of Japan Inc. Development Bank of the Philippines (DBP) Dexia Asset Management Dexus Property Group DnB ASA Domini Social Investments LLC Dongbu Insurance DWS Investment GmbH Earth Capital Partners LLP East Sussex Pension Fund Ecclesiastical Investment Management Ecofi Investissements - Groupe Credit Cooperatif Edward W. Hazen Foundation EEA Group Ltd Elan Capital Partners Element Investment Managers ELETRA - Fundação Celg de Seguros e Previdência Environment Agency Active Pension fund Epworth Investment Management Equilibrium Capital Group equinet Bank AG Erik Penser Fondkommission Erste Asset Management Erste Group Bank Essex Investment Management Company, LLC ESSSuper Ethos Foundation Etica Sgr Eureka Funds Management Eurizon Capital SGR Evangelical Lutheran Church in Canada Pension Plan for Clergy and Lay Workers Evangelical Lutheran Foundation of Eastern Canada Evli Bank Plc F&C Investments FACEB FUNDAÇÃO DE PREVIDÊNCIA DOS EMPREGADOS DA CEB FAELCE Fundacao Coelce de Seguridade Social FAPERS- Fundação Assistencial e Previdenciária da Extensão Rural do Rio Grande do Sul FASERN - Fundação COSERN de Previdência Complementar Fédéris Gestion d Actifs FIDURA Capital Consult GmbH FIM Asset Management Ltd FIM Services FIPECq - Fundação de Previdência Complementar dos Empregados e Servidores da FINEP, do IPEA, do CNPq FIRA. - Banco de Mexico First Affirmative Financial Network, LLC First Swedish National Pension Fund (AP1) Firstrand Group Limited Five Oceans Asset Management Florida State Board of Administration (SBA) Folketrygdfondet Folksam Fondaction CSN Fondation de Luxembourg Forma Futura Invest AG Fourth Swedish National Pension Fund, (AP4) FRANKFURT-TRUST Investment-Gesellschaft mbh Fukoku Capital Management Inc FUNCEF - Fundação dos Economiários Federais Fundação AMPLA de Seguridade Social - Brasiletros Fundação Atlântico de Seguridade Social Fundação Attilio Francisco Xavier Fontana Fundação Banrisul de Seguridade Social Fundação BRDE de Previdência Complementar - ISBRE Fundação Chesf de Assistência e Seguridade Social Fachesf Fundação Corsan - dos Funcionários da Companhia Riograndense de Saneamento Fundação de Assistência e Previdência Social do BNDES - FAPES FUNDAÇÃO ELETROBRÁS DE SEGURIDADE SOCIAL - ELETROS 3

4 4 Fundação Forluminas de Seguridade Social - FORLUZ Fundação Itaipu BR - de Previdência e Assistência Social FUNDAÇÃO ITAUBANCO Fundação Itaúsa Industrial Fundação Promon de Previdência Social Fundação Rede Ferroviária de Seguridade Social - Refer FUNDAÇÃO SANEPAR DE PREVIDÊNCIA E ASSISTÊNCIA SOCIAL - FUSAN Fundação Sistel de Seguridade Social (Sistel) Fundação Vale do Rio Doce de Seguridade Social - VALIA FUNDIÁGUA - FUNDAÇÃO DE PREVIDENCIA COMPLEMENTAR DA CAESB Futuregrowth Asset Management Garanti Bank GEAP Fundação de Seguridade Social Generali Deutschland Holding AG Generation Investment Management Genus Capital Management Gjensidige Forsikring ASA Global Forestry Capital SARL GLS Gemeinschaftsbank eg Goldman Sachs Group Inc. GOOD GROWTH INSTITUT für globale Vermögensentwicklung mbh Governance for Owners Government Employees Pension Fund ( GEPF ), Republic of South Africa GPT Group Graubündner Kantonalbank Greater Manchester Pension Fund Green Cay Asset Management Green Century Capital Management GROUPAMA EMEKLILIK A.Ş. GROUPAMA SIGORTA A.Ş. Groupe Crédit Coopératif Groupe Investissement Responsable Inc. GROUPE OFI AM Grupo Financiero Banorte SAB de CV Grupo Santander Brasil Gruppo Bancario Credito Valtellinese Guardians of New Zealand Superannuation Hanwha Asset Management Company Harbour Asset Management Harrington Investments, Inc Hauck & Aufhäuser Asset Management GmbH Hazel Capital LLP HDFC Bank Ltd Healthcare of Ontario Pension Plan (HOOPP) Helaba Invest Kapitalanlagegesellschaft mbh Henderson Global Investors Hermes Fund Managers HESTA Super HIP Investor Holden & Partners HSBC Global Asset Management (Deutschland) GmbH HSBC Holdings plc HSBC INKA Internationale Kapitalanlagegesellschaft mbh HUMANIS Hyundai Marine & Fire Insurance. Co., Ltd. Hyundai Securities Co., Ltd. IBK Securities IDBI Bank Ltd Illinois State Board of Investment Ilmarinen Mutual Pension Insurance Company Impax Asset Management IndusInd Bank Limited Industrial Alliance Insurance and Financial Services Inc. Industrial Bank (A) Industrial Bank of Korea Industrial Development Corporation Industry Funds Management Infrastructure Development Finance Company ING Group N.V. Insight Investment Management (Global) Ltd Instituto de Seguridade Social dos Correios e Telégrafos- Postalis Instituto Infraero de Seguridade Social - INFRAPREV Instituto Sebrae De Seguridade Social - SEBRAEPREV Insurance Australia Group IntReal KAG Investec Asset Management Investing for Good CIC Ltd Irish Life Investment Managers Itau Asset Management Itaú Unibanco Holding S A Janus Capital Group Inc. Jarislowsky Fraser Limited JOHNSON & JOHNSON SOCIEDADE PREVIDENCIARIA JPMorgan Chase & Co. Jubitz Family Foundation Jupiter Asset Management Kaiser Ritter Partner (Schweiz) AG KB Kookmin Bank KBC Asset Management NV KBC Group KCPS Private Wealth Management KDB Asset Management Co., Ltd. KDB Daewoo Securities KEPLER-FONDS Kapitalanlagegesellschaft m. b. H. Keva KfW Bankengruppe Killik & Co LLP Kiwi Income Property Trust Kleinwort Benson Investors KlimaINVEST KLP Korea Investment Management Co., Ltd. Korea Technology Finance Corporation (KOTEC) KPA Pension Kyrkans pensionskassa La Banque Postale Asset Management La Financiere Responsable Lampe Asset Management GmbH Landsorganisationen i Sverige LBBW - Landesbank Baden-Württemberg LBBW Asset Management Investmentgesellschaft mbh LD Lønmodtagernes Dyrtidsfond Legal & General Investment Management Legg Mason Global Asset Management LGT Capital Management Ltd. LIG Insurance Co., Ltd Light Green Advisors, LLC Living Planet Fund Management Company S.A. Lloyds Banking Group Local Authority Pension Fund Forum Local Government Super Local Super Logos portföy Yönetimi A.Ş. London Pensions Fund Authority Lothian Pension Fund LUCRF Super Lupus alpha Asset Management GmbH Macquarie Group Limited MagNet Magyar Közösségi Bank Zrt. MainFirst Bank AG MAMA Sustainable Incubation AG Man MAPFRE Maple-Brown Abbott Marc J. Lane Investment Management, Inc. Maryland State Treasurer Matrix Asset Management MATRIX GROUP LTD McLean Budden MEAG MUNICH ERGO AssetManagement GmbH Meeschaert Gestion Privée Meiji Yasuda Life Insurance Company Mendesprev Sociedade Previdenciária Merck Family Fund Mercy Investment Services, Inc. Mergence Investment Managers Meritas Mutual Funds MetallRente GmbH Metrus Instituto de Seguridade Social Metzler Asset Management Gmbh MFS Investment Management Midas International Asset Management Miller/Howard Investments Mirae Asset Global Investments Co. Ltd. Mirae Asset Securities Mirvac Group Ltd Missionary Oblates of Mary Immaculate Mistra, Foundation for Strategic Environmental Research Mitsubishi UFJ Financial Group Mitsui Sumitomo Insurance Co.,Ltd Mizuho Financial Group, Inc. Mn Services Momentum Manager of Managers (Pty) Limited Monega Kapitalanlagegesellschaft mbh Mongeral Aegon Seguros e Previdência S/A Morgan Stanley Mountain Cleantech AG MTAA Superannuation Fund Mutual Insurance Company Pension-Fennia Nanuk Asset Management Natcan Investment Management Nathan Cummings Foundation, The National Australia Bank National Bank of Canada NATIONAL BANK OF GREECE S.A. National Grid Electricity Group of the Electricity Supply Pension Scheme National Grid UK Pension Scheme National Pensions Reserve Fund of Ireland National Union of Public and General Employees (NUPGE) NATIXIS Nedbank Limited Needmor Fund NEI Investments Nelson Capital Management, LLC Neuberger Berman New Alternatives Fund Inc. New Amsterdam Partners LLC New Mexico State Treasurer New York City Employees Retirement System New York City Teachers Retirement System New York State Common Retirement Fund (NYSCRF) Newton Investment Management Limited NGS Super NH-CA Asset Management Nikko Asset Management Co., Ltd. Nipponkoa Insurance Company, Ltd Nissay Asset Management Corporation NORD/LB Kapitalanlagegesellschaft AG Nordea Investment Management Norfolk Pension Fund Norges Bank Investment Management North Carolina Retirement System Northern Ireland Local Government Officers Superannuation Committee (NILGOSC) NORTHERN STAR GROUP Northern Trust Northward Capital Pty Ltd Nykredit Oddo & Cie OECO Capital Lebensversicherung AG ÖKOWORLD Old Mutual plc OMERS Administration Corporation Ontario Teachers Pension Plan OP Fund Management Company Ltd Oppenheim & Co. Limited Oppenheim Fonds Trust GmbH Opplysningsvesenets fond (The Norwegian Church Endowment) OPTrust Oregon State Treasurer Orion Energy Systems Osmosis Investment Management Parnassus Investments Pax World Funds Pensioenfonds Vervoer Pension Denmark Pension Fund for Danish Lawyers and Economists Pension Protection Fund Pensionsmyndigheten Perpetual Investments PETROS - The Fundação Petrobras de Seguridade Social PFA Pension PGGM Vermogensbeheer Phillips, Hager & North Investment Management Ltd. PhiTrust Active Investors Pictet Asset Management SA Pioneer Investments PIRAEUS BANK PKA Pluris Sustainable Investments SA PNC Financial Services Group, Inc. Pohjola Asset Management Ltd Polden-Puckham Charitable Foundation Portfolio 21 Investments Porto Seguro S.A. Power Finance Corporation Limited PREVHAB PREVIDÊNCIA COMPLEMENTAR PREVI Caixa de Previdência dos Funcionários do Banco do Brasil PREVIG Sociedade de Previdência Complementar ProLogis Provinzial Rheinland Holding Prudential Investment Management Prudential Plc Psagot Investment House Ltd PSP Investments Q Capital Partners QBE Insurance Group Rabobank Raiffeisen Fund Management Hungary Ltd.

5 Raiffeisen Kapitalanlage-Gesellschaft m.b.h. Raiffeisen Schweiz Genossenschaft Rathbones / Rathbone Greenbank Investments RCM (Allianz Global Investors) Real Grandeza Fundação de Previdência e Assistência Social Rei Super Reliance Capital Ltd Resolution Resona Bank, Limited Reynders McVeigh Capital Management RLAM Robeco Robert & Patricia Switzer Foundation Rockefeller Financial (trade name used by Rockefeller & Co., Inc.) Rose Foundation for Communities and the Environment Rothschild Royal Bank of Canada Royal Bank of Scotland Group RPMI Railpen Investments RREEF Investment GmbH Russell Investments SAM Group SAMPENSION KP LIVSFORSIKRING A/S SAMSUNG FIRE & MARINE INSURANCE Samsung Securities Sanlam Life Insurance Ltd Santa Fé Portfolios Ltda Santam Sarasin & Cie AG SAS Trustee Corporation Sauren Finanzdienstleistungen GmbH & Co. KG Schroders Scotiabank Scottish Widows Investment Partnership SEB SEB Asset Management AG Second Swedish National Pension Fund (AP2) Seligson & Co Fund Management Plc Sentinel Investments SERPROS - Fundo Multipatrocinado Service Employees International Union Pension Fund Seventh Swedish National Pension Fund (AP7) Shinhan Bank Shinhan BNP Paribas Investment Trust Management Co., Ltd Shinkin Asset Management Co., Ltd Siemens Kapitalanlagegesellschaft mbh Signet Capital Management Ltd Smith Pierce, LLC SNS Asset Management Social(k) Sociedade de Previdencia Complementar da Dataprev - Prevdata Socrates Fund Management Solaris Investment Management Limited Sompo Japan Insurance Inc. Sopher Investment Management SouthPeak Investment Management SPF Beheer bv Sprucegrove Investment Management Ltd Standard Bank Group Standard Chartered Standard Chartered Korea Limited Standard Life Investments State Bank of India State Street Corporation StatewideSuper StoreBrand ASA Strathclyde Pension Fund Stratus Group Sumitomo Mitsui Financial Group Sumitomo Mitsui Trust Holdings, Inc. Sun Life Financial Inc. Superfund Asset Management GmbH SUSI Partners AG Sustainable Capital Sustainable Development Capital Svenska Kyrkan, Church of Sweden Swedbank AB Swift Foundation Swiss Re Swisscanto Asset Management AG Syntrus Achmea Asset Management T. Rowe Price T. SINAI KALKINMA BANKASI A.Ş. Tata Capital Limited TD Asset Management Inc. and TDAM USA Inc. Teachers Insurance and Annuity Association College Retirement Equities Fund Telluride Association Tempis Asset Management Co. Ltd Terra Forvaltning AS TerraVerde Capital Management LLC TfL Pension Fund The ASB Community Trust The Brainerd Foundation The Bullitt Foundation The Central Church Fund of Finland The Children s Investment Fund Management (UK) LLP The Collins Foundation The Co-operative Asset Management The Co-operators Group Ltd The Daly Foundation The Environmental Investment Partnership LLP The Hartford Financial Services Group, Inc. The Joseph Rowntree Charitable Trust The Korea Teachers Pension (KTP) The Pension Plan For Employees of the Public Service Alliance of Canada The Pinch Group The Presbyterian Church in Canada The Russell Family Foundation The Sandy River Charitable Foundation The Shiga Bank, Ltd. The Sisters of St. Ann The United Church of Canada - General Council The University of Edinburgh Endowment Fund The Wellcome Trust Third Swedish National Pension Fund (AP3) Threadneedle Asset Management TOBAM Tokio Marine Holdings, Inc Toronto Atmospheric Fund Trillium Asset Management Corporation Triodos Investment Management Tri-State Coalition for Responsible Investment Tryg UBS Unibail-Rodamco UniCredit SpA Union Asset Management Holding AG Union Investment Privatfonds GmbH Unione di Banche Italiane S.c.p.a. Unionen Unipension UNISON staff pension scheme UniSuper Unitarian Universalist Association United Methodist Church General Board of Pension and Health Benefits United Nations Foundation Unity Trust Bank Universities Superannuation Scheme (USS) Vancity Group of Companies VCH Vermögensverwaltung AG Ventas, Inc. Veris Wealth Partners Veritas Investment Trust GmbH Vermont State Treasurer Vexiom Capital, L.P. VicSuper Victorian Funds Management Corporation VietNam Holding Ltd. Voigt & Coll. GmbH VOLKSBANK INVESTMENTS Waikato Community Trust Inc Walden Asset Management, a division of Boston Trust & Investment Management Company WARBURG - HENDERSON Kapitalanlagegesellschaft für Immobilien mbh WARBURG INVEST KAPITALANLAGEGESELLSCHAFT MBH Water Asset Management, LLC Wells Fargo & Company West Yorkshire Pension Fund WestLB Mellon Asset Management (WMAM) Westpac Banking Corporation WHEB Asset Management White Owl Capital AG Winslow Management, A Brown Advisory Investment Group Woori Bank Woori Investment & Securities Co., Ltd. YES BANK Limited York University Pension Fund Youville Provident Fund Inc. Zegora Investment Management Zevin Asset Management Zurich Cantonal Bank CalSTRS (California State Teachers Retirement System) CalSTRS board has made climate risk management the signature issue in our corporate governance engagement program. CDP data is an essential input and is reviewed prior to meeting with companies on any issue to ensure that the discussion covers climate risk if warranted. CDP data is also very important to CalSTRS as we develop and execute our shareholder resolutions. Jack Ehnes, CEO 5

6 CEO Foreword CDP has pioneered the only global system that collects information about corporate behavior on climate change and water scarcity, on behalf of market forces, including shareholders and purchasing corporations. 6 The pressure is growing for companies to build long-term resilience in their business. The unprecedented debt crisis that has hit many parts of the world has sparked a growing understanding that short-termism can bring an established economic system to breaking point. As some national economies have been brought to their knees in recent months, we are reminded that nature s system is under threat through the depletion of the world s finite natural resources and the rise of greenhouse gas emissions. Business and economies globally have already been impacted by the increased frequency and severity of extreme weather events, which scientists are increasingly linking to climate change. 1 Bad harvests due to unusual weather have this year rocked the agricultural industry, with the price of grain, corn and soybeans reaching an all time high. Last year, Intel lost $1 billion in revenue and the Japanese automotive industry lost $45 million of profits as a result of the business interruption floods caused to their Thailand-based suppliers. It is vital that we internalise the costs of future environmental damage into today s decisions by putting an effective price on carbon. Whilst regulation is slow, a growing number of jurisdictions have introduced carbon pricing with carbon taxes or cap-and-trade schemes. The most established remains the EU Emissions Trading Scheme but moves have also been made in Australia, California, China and South Korea among others. Enabling better decisions by providing investors, companies and governments with high quality information on how companies are managing their response to climate change and mitigating the risks from natural resource constraints has never been more important. CDP has pioneered the only global system that collects information about corporate behavior on climate change and water scarcity, on behalf of market forces, including shareholders and purchasing corporations. CDP works to accelerate action on climate change through disclosure and more recently through its Carbon Action program. In 12, on behalf of its Carbon Action signatory investors CDP engaged 5 companies in the Global 5 to request they set an emissions reduction target; 61 of these companies have now done so. CDP continues to evolve and respond to market needs. This year we announced that the Global Canopy Program s Forest Footprint Disclosure Project will merge with CDP over the next two years. Bringing forests, which are critically linked to both climate and water security, into the CDP system will enable companies and investors to rely on one source of primary data for this set of interrelated issues. Accounting for and valuing the world s natural capital is fundamental to building economic stability and prosperity. Companies that work to decouple greenhouse gas emissions from financial returns have the potential for both short and long-term cost savings, sustainable revenue generation and a more resilient future. Paul Simpson CEO, Carbon Disclosure Project 1. The State of the Climate in 11 report, led by the National Oceanic and Atmospheric Administration (NOAA) in the US and published as part of the Bulletin of the American Meteorological Society (BAMS).

7 Foreword The Canadian corporations that responded to this year s CDP information request are rising to the long-term carbon and climate change challenge in the same way they would for any other significant and material change. The incentive to capture and analyze carbon emissions data is the benefit of transparency in understanding the performance of corporations. It is also a basic human desire to understand the changing world around us and to improve the lives of the next generation. As simple as it sounds, the process of taking a yearly snapshot of even a single country s corporate carbon profile is a complex project that requires significant resources, cooperation, and expertise. Accenture is proud to be the official writer of the CDP Canada Climate Change Report 12. The conclusions we found in this year s report were encouraging. As the responses in this report show, Canadian companies are tackling the challenge of climate change headon. They are seeking opportunities, managing risks, putting climate change on their boardroom agendas, encouraging their leaders and organizations, and increasingly, identifying and capturing the economic benefits of doing so. In short, the Canadian corporations that responded to this year s CDP information request are rising to the long-term carbon and climate change challenge in the same way they would for any other significant and material change. In seeking to clarify the relationship between carbon, corporations, and the global economy, the Carbon Disclosure Project and Accenture work closely together in many regions of the world. We have collaborated to score and write the country reports in multiple countries around the world and will continue our Canadian support as CDP Canada Report Writer over the next two years. Globally, Accenture is the solution integrator and implementation partner for CDP s reporting platform and database the largest source of primary corporate climate change information in the world. This strong partnership stems from shared goals; namely, helping companies integrate climate change into strategies and operations. Ultimately, this helps our respective stakeholders investors, respondents and the broader public mitigate the risks of climate change and realize sustainable value creation related to carbon. As a leading provider of consulting, technology and outsourcing services, Accenture helps leading organizations in both the private and public sectors, in Canada and internationally to improve productivity and efficiency in their operations, reduce emissions, and reinvent their infrastructure as they move towards a low carbon economy. Accenture thanks all the current Canadian Institutional Investor Signatories and the 17 responding companies for their ongoing and strong commitment to addressing climate change. We look forward to continuing our work with CDP, and we encourage the Canadian investment and business communities to act decisively on sustainability today, to drive high performance in the future. Michael Denham Country Managing Director, Accenture Canada 7

8 Contents 8 CDP Investor Members 12 2 CDP Signatory Investors 12 3 CEO Foreword 6 Paul Simpson, CEO, Carbon Disclosure Project Foreword 7 Michael Denham, Country Managing Director, Accenture Canada Executive Summary 9 Companies Identify More Climate Change Risks with a Direct Short-Term Impact on their Business 11 Companies Prioritize Climate Change on the Corporate Agenda, Finding More Value in Emissions 15 Reduction Initiatives and More Opportunity to Improve Profitability Companies Improve Transparency on Climate Change Issues, but Lag on Performance Criteria 18 Value of Responding to CDP 19 Guest commentary Marie Giguère, Executive Vice-President, Legal Affairs and Secretariat, Caisse de dépôt et placement du Québec Guest commentary 21 Peter Grauer, Chairman, Bloomberg L.P. Carbon Disclosure Leadership Index (CDLI) 22 Carbon Performance Leadership Index (CPLI) 25 Sector Snapshots Canada Sector Snapshot Overview 27 Communication and High Tech 28 Consumer Discretionary 29 Consumer Staples 3 Energy 31 Financials 32 Industrials 33 Materials 34 Utilities 35 Appendix I: Table of Emissions, Scores and Sector Information by Company 36 Key to Appendix I 41 Appendix II: Non-Canada Responding Companies 42 CDP Canada Partners and Sponsors 43 Important Notice The contents of this report may be used by anyone provided acknowledgement is given to Carbon Disclosure Project (CDP). This does not represent a license to repackage or resell any of the data reported to CDP or the contributing authors and presented in this report. If you intend to repackage or resell any of the contents of this report, you need to obtain express permission from CDP before doing so. Accenture and CDP have prepared the data and analysis in this report based on responses to the CDP 12 information request. No representation or warranty (express or implied) is given by Accenture or CDP as to the accuracy or completeness of the information and opinions contained in this report. You should not act upon the information contained in this publication without obtaining specific professional advice. To the extent permitted by law, Accenture and CDP do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it. All information and views expressed herein by CDP and/or Accenture is based on their judgment at the time of this report and are subject to change without notice due to economic, political, industry and firm-specific factors. Guest commentaries where included in this report reflect the views of their respective authors; their inclusion is not an endorsement of them. Accenture and CDP, their affiliated member firms or companies, or their respective shareholders, members, partners, principals, directors, officers and/or employees, may have a position in the securities of the companies discussed herein. The securities of the companies mentioned in this document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates. 'Carbon Disclosure Project and CDP refer to Carbon Disclosure Project, a United Kingdom company limited by guarantee, registered as a United Kingdom charity number In the United States, CDP is a special project of Rockefeller Philanthropy Advisors. 12 Carbon Disclosure Project. All rights reserved.

9 Executive Summary Amidst an increasingly uncertain regulatory landscape and changing physical environment, Canada s largest public companies have used the 12 Investor CDP Information Request to signal that they are now, more than ever, faced with the challenge of identifying and managing a spectrum of growing, near-term climate risks. As a result, they are increasing the position of climate change on the corporate agenda and are finding more ways to capitalize on climaterelated opportunities to improve corporate profitability while achieving climate change mitigation goals. Through their continued efforts to advance transparency in their climate change-related practices, encouraged by an increasingly aware and sensitive public and investment community, they are laying the foundation for good carbon performance. The key findings of the 12 CDP Canada Report are: Companies identify more climate change risks with a direct short-term impact on their business The total number of risks related to climate change increased by 8% (38) to 496 in 12. Regulatory risks, such as carbon and fuel taxes, were most frequently reported (238), followed by physical risks (165), such as extreme weather, and other climate change risks (93), such as impact on a company s reputation. Eighteen percent (12) more respondents (77) reported regulatory risks in 12, while 1% (6) more respondents (67) reported physical risks (see Figure 3). Relative to physical and other climate change risks, regulatory risks are seen as the most short-term 67% (16) of these risks are expected to materialize within five years. Physical risks are seen as the most direct in impact 82% (136) of these risks are expected to have a direct impact on respondents, rather than on their customers and suppliers. Companies prioritize climate change on the corporate agenda, finding more value in emissions reduction initiatives and more opportunity to improve profitability Companies continue to weave the issue of climate change into the core fabric of their business models. Seventy-seven percent (79) of respondents report that climate change is integrated into their business strategy up 4% (3) from 11. Climate change is being addressed at the highest levels of the corporate structure. Eighty-six percent (89) of respondents report senior manager/officer or individual/ sub-set board-level responsibility for climate change. Companies increasingly identify economic value in emissions reduction initiatives. A total of 139 reported emissions reductions initiatives have annual monetary savings up 3% (32) from 11 (see Figure 4). Companies find more opportunities in climate change to improve profitability by appealing to changing consumer demands and by reducing costs. An equal number of respondents (86) report 11% (32) more climate-change opportunities (315) than in NUMBER OF COMPANIES REPORTING REGULATORY, PHYSICAL AND OTHER RISKS Number of Companies Reporting Risks Regulatory Physical Climate Change Other* Risk Type * Other climate-related risks include reputation, changing consumer behavior, induced changes in human and cultural environments, fl uctuating socioeconomic conditions, increasing humanitarian demands, amongst others NUMBER OF RESPONDENTS IDENTIFYING ANNUAL MONETARY SAVINGS BY EMISSIONS REDUCTION ACTIVITY TYPE Number of Respondents Energy Efficiency Other* Transportation Fugitive or Process Emissions Activity Type Reductions * Other includes behavioral change, low carbon energy installation and purchase, product design, and any uncategorized initiative. 9

10 Companies improve transparency on climate change issues, but lag on performance criteria Twenty-seven percent (47) more external publications, such as annual and voluntary reports, were used by respondents in 12 to communicate corporate activity related to climate change and GHG emissions performance. Canada respondents received an average carbon disclosure score of 6 an increase of 9% (5) from 11 (see Figure 5). Opportunities still exist for respondents to improve on carbon performance by defining emissions reduction targets, verifying and assuring emissions data, and accelerating achievements in emissions reduction as only one Canada respondent received the A performance band required to gain entry into the Carbon Performance Leadership Index (CPLI). 1. Canada s largest publicly traded companies on the Toronto Stock Exchange (TSX) by market capitalization. 2. Additionally, 92% (55) of the TSX6 (Canada s 6 largest publicly traded companies) responded, representing 91% of the TSX6 by market capitalization. 3. Although 17 companies responded, the report analysis was conducted on a base of a 13 companies. Companies excluded from the analysis were: subsidiaries of another responding company, merged during the scoring process, or submitted their response past the information request deadline. About CDP Canada in 12 The 12 Investor CDP Information Request was sent to the Canada 1 companies on behalf of 655 institutional investors (CDP signatories) representing $78 trillion in assets. The fiduciary backing of the 12 CDP questionnaire increased by 19% (14) over the previous year, up from 551 signatories in 11. This represents the growing interest of the investor community in environmental, social and governance (ESG) reporting. Fifty-four percent (17) of the Canada responded, representing 79% of the Canada by market capitalization. 2 For the first time in Canada, this report publishes the carbon performance scores of eligible respondent companies. This information will enable respondents to better measure themselves against their peers and investors to quickly assess the quality of performance on actions taken to mitigate climate change. The compilation of the 12 CDP Canada Report is based on their responses 3 to the 12 Investor CDP Information Request. This report examines how the largest Canadian companies continue to integrate climate change into their strategy, governance, management, and operations in order to mitigate risks and act on opportunities presented by climate change. 5 RANGE AND AVERAGE OF CANADA CARBON DISCLOSURE SCORES Minimum Maximum 12 Sector Carbon Disclosure Leadership Index (CDLI) Average 12 Average 11 Average Carbon Disclosure Score Leaders (CDLI) Communication and High Tech Consumer Discretionary Consumer Staples Energy Financials Industrials Materials Utilities Sector

11 Companies Identify More Climate Change Risks with a Direct Short- Term Impact on their Business In 12, Canadian companies reported an increasing number of risks 8% (38) more risks related to climate change were reported in 12, 496 versus 458 in 11. Regulatory risks topped the list, but concerns about physical risks from climate change were also expressed. Regardless of type, companies are taking action to mitigate these risks. Regulatory risks are the most frequently cited Canada s fragmented regulatory environment, with different federal, provincial, and territorial climate change policy plans, poses an increasing risk to business operations. Of the companies that responded to the CDP 12 questionnaire, 72% (77) identified 238 regulatory risks. This reveals that regulation takes prominence as the leading climate change risk, when compared to physical risks (165) and other climate change risks (93), such as an impact on the company s reputation. Uncertainty around regulation makes it difficult for our clients to plan for the future or quantify risk and makes it difficult for financial institutions to adequately determine the extent and timeframes associated with regulatory risk Bank of Nova Scotia In fact, the actual number of companies reporting regulatory risks increased from 11. Figure 6 illustrates a significant 18% increase from 65 to 77 companies identifying regulatory risks. By comparison, the number of companies identifying physical risks and "other" risks increased by 1% (from 61 to 67 and 49 to 54, respectively). 6 MORE RESPONDENTS ARE REPORTING RISKS IN Number of Companies Reporting Risks Regulatory Physical Other* Risk Type * Other climate-related risks include reputation, changing consumer behavior, induced changes in human and cultural environments, fl uctuating socio-economic conditions, increasing humanitarian demands, amongst others. 11

12 Regulatory risks have the potential to impact both direct and indirect business operations Regulatory risks have a greater impact on companies in GHG-intensive industries, particularly in their direct operations. 1 For example, the 77 companies that reported regulatory risks account for more than 98% of the emissions volume disclosed to CDP. Conversely, the 26 remaining organizations that did not identify regulatory risks are either self-identified as low GHG emitters or have chosen not to disclose emissions. Regardless, organizations that did not disclose regulatory risks mentioned they are indirectly impacted by regulatory risks through their partners, customers and suppliers. While we have identified potential for regulatory risks related to climate change, we do not at this point deem these risks to be significant. We acknowledge that development of a legal and regulatory framework to address climate change would have potential economic impacts, for example, through disruption or increased cost of oil-dependent transportation, increased fuel and electricity costs and costs associated with new building requirements, and we will continue to monitor developments with interest. Future climate change regulations may also affect the operating costs for the real estate we occupy and that which we own as an investment. Sun Life Financial Inc. Companies expect regulatory risks to impact the bottomline. Sixty-six percent (156) of regulatory risks identified are expected to increase operational costs, such as the increasing cost of energy and fuel, payment of carbon taxes and the operational cost of complying with emissions regulations obligations. Should a cap-and-trade regime be implemented [in B.C.], current estimates around cost suggest a range similar to that of the Carbon Tax Teck s B.C. operations [currently pays] a total of $4-45M per year in carbon fees. Teck Resources Limited Meanwhile, 11% (27) of regulatory risks are expected to impact capital costs, such as the investment made in infrastructure to comply with regulatory obligations. As shown in Figure 7, the majority of regulatory risks are expected to impact organizations in the short term. Sixty-seven percent (16) of these risks are expected to materialize within five years, while only 7% (17) are expected to have an impact in more than 5 years. Meanwhile, 26% (61) of the risks have an unknown or blank timeframe. 1. For a detailed description on how CDP defi nes Direct versus Indirect impacts, please refer to the CDP Guidance for responding companies - Investor CDP 12, CDP Supply Chain 12, page RESPONDENTS EXPECT THE MAJORITY OF REGULATORY RISKS TO MATERIALIZE WITHIN FIVE YEARS <5 Years >5 Years Unknown/Blank Uncertainty Surrounding New Regulation Fuel/Energy Taxes and Regulations Cap and Trade Schemes Risk Driver Carbon Taxes Emission Reporting Obligations Other Regulatory Drivers* General Environmental Regulations Air Pollution Limits Product Efficiency Regulations & Standards International Agreements Number of Regulatory Risks Reported 12 * Other regulatory drivers include voluntary agreements, lack of regulation, product labeling and standards, etc.

13 More physical climate change risks are identified in 12 Risks from physical climate change such as changes in precipitation patterns, changes in average temperatures, rising sea levels, droughts, etc. are also receiving greater attention from the Canada. Extreme heat across Canada and the US, wildfires in the western provinces, and tropical storms in the Gulf of Mexico are recognized as weather crises with potential ramifications on global operations and supply chains. The Canada responded accordingly on two levels. Firstly, the number of companies identifying physical climate change risks increased by 1% (6) to 67 in 12 from 61 in 11. Secondly, the total number of reported physical climate change risks increased by 11% (16), to 165 in 12 from 149 in 11. Companies are clearly recognizing the direct impact physical climate change risks could have on their business. Eighty-two percent (136) of physical climate-related risks were reported to directly impact the company, a 14% (17) increase from 11. Extreme weather events in our areas of operation (the four western provinces) such as flooding, wildfires, lightning, and tornados could impact the operation of our facilities and therefore impact production. ARC Resources Ltd. Physical risks are the most direct in impact Meanwhile, approximately 1% (17) of risks were considered to indirectly impact companies through their supply chain or customers, which is similar to the 11 figures. Furthermore, 76% (125) of risks were reported to have a potential impact on reducing or disrupting production capacity, or increasing operational costs. This is virtually unchanged from 11. Physical risks affecting our suppliers could ultimately impact not only our own operations but our provision of products or services to our customers as well, depending on the circumstances. We view the range of impacts as follows: (a) minor delay in service or delivery (b) supply chain issues resulting in need to switch to alternate supplier which may result in delayed delivery, process workarounds, increased costs and differences in quality of materials and; (c) complete cessation of service or delivery in the short to medium term. Bank of Montreal Companies are proactively mitigating climate change risks Despite the regulatory and physical climate change risks, Canada respondents are clearly and actively pursuing risk mitigation options. Overall, 1% (7) more companies are integrating climate change into their multi-disciplinary risk management processes (74 respondents in 12 versus 67 in 11), as can be seen in Figure 8. [Enbridge] has a formal risk management policy, procedures and systems designed to mitigate risks, such as operational risks [Enbridge] performs an annual corporate risk assessment to scan its environment for all potential risks and allows pro-active management decisions to be made. Enbridge Inc. As the responses in this report show, Canadian companies are tackling the challenge of climate change head-on. They are seeking opportunities, managing risks, putting climate change on their boardroom agendas, encouraging their leaders and organizations, and increasingly, identifying and capturing the economic benefits of doing so. Michael Denham Country Managing Director, Accenture Canada 8 MORE RESPONDENTS ARE INTEGRATING CLIMATE CHANGE INTO MULTI-DISCIPLINARY RISK MANAGEMENT PROCESSES Specific Risk Managment Process Integrated into Multi-Disciplinary Processes No Documented Processes Number of Respondents Year 13

14 Most respondents are mitigating regulatory risks Since regulatory concerns topped the list of risks, it is no surprise that Canadian companies are managing regulatory risks through a variety of methods. In fact, most companies are engaging with policy makers 74% (57) of companies that disclosed regulatory risks are engaging with policy makers to encourage further action on climate change mitigation and/or adaptation. Even of those that did not disclose regulatory risks, 54% (14) work with policy makers and others to monitor the potential risks and opportunities of regulations. See right for other actions being taken to mitigate regulatory risks. Mitigating physical climate change risks poses a challenge to respondents Companies face more difficulty in mitigating the risks posed by physical climate changes, mainly due to the uncertainty of occurrence. Nevertheless, respondents are being proactive in implementing initiatives to manage the controllable elements of these risks. See below for other actions being taken to mitigate physical risks. Examples of Physical Risk Mitigation Adapting operations and supply chain The Company continually reviews physical risks to its business as part of regular management operating reviews and as issues are raised, it adapts its operating processes to minimize potential impact from these risks. For example, in anticipation of Hurricane Katrina in Louisiana, USA in 5, the Company pre-emptively prepared its operations and relocated its personnel and assets to minimize loss or suffering in the area. In addition, the Company procures its equipment, services and consumables from many sources and many locations to minimize risks of climate effects in any one particular geographic locale or business provider. Progressive Waste Solutions Ltd. Investing in natural resource management and technology The flooding we experience[d] in Saskatchewan in 11 had an estimated impact on ARC of between $5 - $1 million These risks are out of our control and unpredictable. We are, however, taking measures to better manage our water (i.e., our consumption, sources, licenses, etc.). By improving our water management system we will be able to better react to restricted access to the source. ARC Resources Inc. Examples of Regulatory Risk Mitigation Engaging with policy makers Nexen believes that engaging in public policy debates affecting our industry is fundamental to ensuring long-term business success. [... we] participated on Government of Canada climate-related trade missions to Africa and Central/South America and are active in the Climate Change working group of our international industry association IPIECA who are committed to education and improving industry s performance through cooperation and communication. Nexen Inc. Setting energy efficiency targets In terms of energy costs, Stantec's Sustainable Development team is developing Performance Improvement targets and associated initiatives that will focus on energy efficiency within each facility. The Stantec Executive Leadership team has set goals for energy efficiency in all offices. Approved 12 goals of reduction in energy usage by 4% are designed to reduce operational costs as a response to experienced and projected future fuel price increases. Stantec Inc. Investing in transformation to reduce overall emissions [Emera recently] completed construction of [a] sixth generator on the site that recycles the heat from two natural gas combustion turbines already producing power at the plant and use it to generate additional electricity with minimal extra fuel. The new equipment captures waste heat from the exhaust streams of the two combustion turbines and uses it to power a new steam turbine and generator set, generating 25 megawatts of electricity without any additional fuel or emissions. A second 25 megawatts will be generated by burning gas added directly into the waste heat stream from the turbines to increase energy output. The cost of this project is $93 million. Emera Inc. Investing in emissions data management and technology As emission reporting obligations become more complex, Enerplus will need to increase staff resources and may need to increase the accuracy of data collection technologies To manage this risk, Enerplus has upgraded their GHG emissions database to include all Canadian and U.S. operated facilities as well as to import and track data necessary for the source categories. This investment in our database management for GHG emissions had initial costs of approximately $15, with yearly maintenance costs. Enerplus Corporation 14

15 Companies Prioritize Climate Change on the Corporate Agenda, Finding More Value in Emissions Reduction Initiatives and More Opportunity to Improve Profitability Against a backdrop of increasing risks, companies are integrating climate change into their core strategies and operations. Specifically, the Canada are prioritizing climate change on their corporate agendas, offering stronger individual performance incentives for the management of this issue, and identifying more economic benefit in their related initiatives. Climate change is increasing its position on the corporate agenda Seventy-seven percent (79) of respondents report that climate change is integrated into their business strategy up 4% from 11 (76). Canadian Tire has integrated its business sustainability strategy into its operating plans within a profit mandate. The Company defines business sustainability as the pursuit and achievement of economic benefits from enhanced social and environmental outcomes. Canadian Tire Corporation, Limited Furthermore, 86% (89) of respondents report senior manager/ officer or individual/sub-set board-level responsibility for climate change consistent with the Canada last year. And there is a strong correlation between senior management involvement and carbon performance; of the top 4 respondents ranked by 12 carbon performance score, only one did not report senior management or board-level responsibility for climate change. More companies are offering incentives for the management of climate change issues The number of respondents that reported incentives for management of climate change issues increased by 6% from 44% (46) in 11 to 5% (52) in 12, as displayed in Figure 9. These incentives are also more tangible; for example, monetary incentives are now offered by 46% (47) of respondents, up from 37% (38) last year. Finally, these incentives are targeting higher levels of the organization. Eighteen percent (19) of all respondents report 9 RESPONDENTS OFFERING INCENTIVES FOR THE MANAGEMENT OF CLIMATE CHANGE ISSUES Percentage of Respondents % (52) 46% 44% (47) (46) 37% (38) 18% (19) 13% (13) Offer Any Incentives Offer Monetary Incentives Incentive Type Target CEO, COO, or Other Executive Officer 15

16 an incentive for the CEO, COO, Corporate Executive Team, or an Executive Officer, which is an increase from 13% (13) in 11. This is an encouraging trend. Offering incentives to the C-suite increases management buy-in, which then drives a stronger focus on climate change and should ultimately create value in the search of opportunities. CEO's performance is based on achieving annual targets which includes a target to reduce greenhouse gas emissions by 1% per tonne of product by 12 compared to 7. (Type of incentive reported: monetary reward) Potash Corporation of Saskatchewan Inc. Companies are realizing economic benefits from emissions reduction or avoidance Companies continue to incorporate climate change into their strategy and operations because they increasingly see economic value in doing so. In the pursuit of reduced carbon emissions, companies are deploying two main strategies: implementing specific emissions reduction initiatives, and capitalizing on products and services that aim to reduce third-party emissions. Internally, companies appear to be transitioning from people and process-based initiatives as sources for emissions reduction towards fixed capital investments in energy efficiency and transportation initiatives. Fixed capital investments indicate a continued focus on capturing sources of emissions reduction, and ensuring greater persistence of these benefits. For example, while the total number of initiatives reported has decreased by 21% (84) from 48 in 11 to 324 in 12, the decrease in energy efficiency initiatives was negligible and now energy efficiency represents 55% (178) of all initiatives up from 45% (182) in 11 (see Figure 1). More importantly, companies are tracking, recognizing and reporting the economic benefits of investing in climate change. Respondents are increasingly identifying annual monetary savings from emission reduction activities; the number of reported initiatives with annual monetary savings has increased by 3% (to 139 initiatives) in 12 across all types of emissions reduction activities (see Figure 11). This is a paradigm shift from the assumption that carbon and emissions-related initiatives are merely a cost, rather than a true investment with an expected economic return. Finally, from a revenue and earnings perspective, companies are capitalizing on the opportunity to offer products that help third parties reduce emissions. Sixty percent (61) of respondents reported that the use of its goods and/or services directly enable GHG emissions to be avoided by a third party up 9% (5) from last year. Use of our product (i.e., electricity generated by hydro, wind and landfill gas) allows our customers to reduce their GHG footprint. NGCC and SGER requirement led to 2,18,115 tonnes of CO2e reductions in 11 and 17,932,21 tonnes since baseline years. Capital Power Corporation The consumer market is increasingly looking for products with improved environmental performance attributes and lower carbon footprints. We are also improving our offerings of e-solutions and helping consumers to better understand how they can reduce their GHG emissions by using information and communication technologies (ICT) solutions. Bell Aliant Inc. 1 EMISSIONS REDUCTION INITIATIVES IMPLEMENTED BY TYPE Other* Fugitive or process emissions reductions Transportation Energy Efficiency 11 NUMBER OF RESPONDENTS IDENTIFYING ANNUAL MONETARY SAVINGS BY EMISSIONS REDUCTION ACTIVITY TYPE Number of Emissions Reduction Initiatives Implemented Year Number of Respondents Energy Efficiency Other* Transportation Fugitive or Process Emissions Activity Type Reductions 16 * Other includes behavioral change, low carbon energy installation and purchase, product design, and any uncategorized initiative.

17 Companies are identifying more climate change opportunities In conjunction with integrating climate change into their strategies and operations, Canadian companies continue to look for opportunities to improve profitability and reduce costs by navigating a fluid regulatory environment and appealing to changing consumer demands. Annual Performance Agreement commitments made by EVP, Environment & Strategic Planning in 11: 1) Communicate Cenovus's environmental commitments, long-range forecasts to the organization; 2) Strengthen delivery of energy efficiency initiatives that subsequently improve GHG emissions and leverage available funding through the Climate Change and Emissions Management Corporation (CCEMC) for investigating future, game-changing technologies. Cenovus Energy Inc. While the number of companies reporting opportunities has remained consistent at 86 since 11, the total number of opportunities reported increased to 315 from 283. As seen in Figure 12, regulation is the most frequently reported climate change opportunity, thereby re-emphasizing that regulatory factors are top-of-mind for Canadian companies. In 1, the expectation of stronger regulations to create more energy efficient products, presented Canadian Tire with an opportunity to increase in store traffic and to increase the sales of energy-efficient products in its portfolio the incremental increase in sales in 11 was equal to $2 million Canadian Tire Corporation, Limited With that being said, the most frequently cited individual opportunity drivers are in the Other category, and relate to Changing consumer behavior, which increased 46% to 35 in 12 from 24 in 11 and Reputation, which increased 17% to 34 from 29. These responses demonstrate that both "Changing Consumer Behavior" and "Reputation" are key drivers of action as the Canadian public becomes more knowledgeable and attuned to climate change and its impacts on business and the environment. As a consumer-oriented business that sells products directly into the market place, reputational risk is always [a] concern... For climate change in particular, consumers would be interested in our ability to perform as a responsible environmental steward. This presents a potential opportunity for us in that our ability to manage our environmental reputation more effectively than our competitors may result in increased guest patronage, or conversely, may shield us from increased concerns and a potential decrease in guest patronage... Effectively managing our reputation with respect to environmental sustainability in order to attract and retain key talent in the industry also presents us and our Restaurant Owners with a significant opportunity. Tim Hortons Inc. As seen in Figure 13, companies most frequently reported an increase in demand for existing products and services as a potential impact of the opportunities identified above. "With demand for low-emissions natural gas and electricity steadily climbing... TransCanada continues to pursue new opportunities in technology that can improve the efficiencies of our systems, processes and facilities." TransCanada Corporation 12 REGULATORY OPPORTUNITIES ARE MOST FREQUENTLY CITED 13 INCREASED DEMAND IS THE MOST FREQUENTLY CITED POTENTIAL IMPACT Number of Opportunities Reported Regulatory Physical Other* Percentage of Total Opportunities Identified % (122) Increased Demand for Existing Prodcuts/Services 18% (55) Reduced Operational Costs 14% (42) New Products/ Business Services 28% (86) Other Impact* Opportunity Type * Other opportunities include those posed by changes in consumer attitude or improved standing due to your organization s stance or action on climate change. Potential Impact * Other impact includes: Increased production capacity, Investment opportunities, Increased stock price (market valuation), and 24 other categories. Blank responses were removed from chart sample. 17

18 Companies Improve Transparency on Climate Change Issues, but Lag on Performance Criteria Companies in the Canada are focused on improving the visibility of their response to climate change, as evidenced by the increase in number of publications used to communicate with their stakeholders, as well as the improvement in the average carbon disclosure scores of the Canada and the Carbon Disclosure Leadership Index (CDLI) detailed on page 22. For the first time in Canada, this report publishes the carbon performance scores of eligible respondent companies. This information will enable respondents to better measure themselves against their peers and investors to quickly assess the quality of performance on actions taken to mitigate climate change. Only one Canada company achieved the Carbon Performance Leadership Index (CPLI), detailed on page 25, indicating an opportunity for others to improve their performance scores. The proactive effort of Canada respondents to improve transparency in 12 reflects a foundation to excel on performance criteria in years to come. Companies are increasing communication with external stakeholders As companies identify more climate change-related opportunities, they are increasing the number of publications used to communicate their response to climate change and GHG emissions performance. In 12, companies reported a 27% (47) increase in annual reports, regulatory filings and voluntary communications up from 177 in 11 (see Figure 14). This growth was primarily driven by a 4% increase (from 87 to 122) in the number of voluntary communications, such as voluntary Corporate Social Responsibility (CSR) or sustainability reports, and consumer facing publications and advertising, among others. While the depth of these communications vary (e.g., onepage press release vs. annual sustainability report), the sharp increase in volume is a signal of more effort from corporations on communicating climate change-related topics to investors and the public. Enabling better decisions by providing investors, companies and governments with high quality information on how companies are managing their response to climate change and mitigating the risks from natural resource constraints has never been more important. Paul Simpson CEO, Carbon Disclosure Project 14 NUMBER OF PUBLICATIONS REPORTED BY TYPE Number of Publications Reported Annual Reports Regulatory Filings Voluntary Communications Publication Type 18

19 Value of Responding to CDP Overall, the Canada sees value in responding to the CDP s questionnaire (see table below). Their responses are a means to increase transparency with stakeholders, communicate targets, collect and track data, and measure performance. According to a 11 study 1, Carbon Disclosure Project data is downloaded on average more than 73, times a month via Bloomberg terminals a sure sign that investors and consumers see the value of disclosing this type of information. Responding to CDP allows companies to meet demand for transparency from investors, consumers and the general public. We meet stakeholder needs for transparent disclosure by publicly communicating our sustainability and climate change related initiatives. Key disclosure mechanisms include the Carbon Disclosure Project, our Corporate Responsibility Report and [other publications] Barrick Gold Corporation Shareholders and consumers are demanding that corporations show progress on reducing their impact on the environment. Rogers will continue to respond to the CDP to provide information on our carbon footprint and climate change related strategies. Rogers Communications Inc. Buyers are setting carbon reduction targets and are using CDP as a medium to collect information from suppliers Leading multinational and manufacturing companies are already setting environmental pre-selection criteria for their suppliers.for example, Wal-Mart has invited its suppliers to report their GHGs and reduction targets as part of its sustainability index for Wal-Mart products CDP recently came out with a supply chain questionnaire, endorsed by Wal-Mart, Ford and other leading multinational organizations, to enable companies to capture supplier emissions. Canadian National Railway Company The CDP questionnaire motivates companies to organize a strategy and system for emissions management and tracking. CCL has no in-place metric or database to capture data from our 38 countries and over 72 operations with common units of energy, waste volumes with detail on energy and sustainability related measurements... As we [were] invited in April 12 to be part of a CDP response we have been working for the past 9 days or so to organize a true strategy and system we have setup a team to put in place a real-time GHG program. CCL Industries CDP assists companies in measuring carbon performance of themselves over time and compared to others companies. Yamana has been reporting its emissions in the Corporate Sustainability Reports and other initiatives (as CDP) voluntarily. Its emissions results indicate good index comparing with its competitors. Yamana Gold Inc. 1. Eccles, Robert G.; Krzus, Michael P.; Serafeim, George. Market Interest in Nonfi nancial Information, The Journal of Applied Corporate Finance, Volume 23 Number 4 (Autumn 11). Based on November 1 April 11 data. 19

20 Guest Commentary The Caisse is convinced that climate change is a real and major issue, and that it may have an impact in the long term unless action is taken. The first phase of the Kyoto protocol, which sought to reduce greenhouse gas emissions, ends in 12. Several industrialized countries have decided not to participate in the next phase, preferring instead to begin negotiations on the terms of the next treaty, which only comes into force in. In this context, the Caisse attaches great importance to the Carbon Disclosure Project (CDP), an initiative that encourages companies to take into account the impact of their activities on the environment by asking them to account for and disclose their greenhouse gas emissions. Such disclosure encourages businesses to adopt best practices and develop emission reduction strategies. As an investor, the Caisse wants to have a profile of companies activities in this area in order to better analyze and manage this type of risk. The information collected in this way is useful to the Caisse because it allows for constructive dialogue with corporate leaders based on the disclosures. Where appropriate, our analysts and managers also integrate the costs related to CO 2 emissions into their financial models, or adjust the cost of capital based on carbon risk. In this regard, our managers applaud CDP s collaboration with the Bloomberg platform, which now provides access to CDP data. A few years ago, in the first Canadian edition of the CDP, the Caisse noted that under its responsibility to depositors it is obliged to account for the environmental impacts of business activities. This is why the Caisse has agreed to sponsor this project. Today, CDP Canada s 52 Canadian investors have asked businesses all over the world, including Canada s largest corporations by market capitalization, to disclose climate change information. The Caisse supports this collective effort, and encourages businesses to cooperate with the CDP by providing the information it has requested. Marie Giguère Executive Vice-President, Legal Affairs and Secretariat Caisse de dépôt et placement du Québec