CDP's 2015 Forests Scoring Methodology

Transcription

1 CDP's 2015 Forests Scoring Methodology Introduction CDP s forests program has grown significantly both in geographic coverage and in scale over the past 2 years. To support this growth, CDP s forests questionnaire and scoring methodology have been revised for 2015 through an extensive internal review and external technical consultation process. The revised questionnaire and scoring methodology seek to achieve the following: 1. Provide a logical structure that guides companies through the journey of re moving commodity-driven deforestation from their value chain and improve their understanding of deforestation-related risks; 2. Facilitate greater and more robust disclosure while reducing reporting burden, where possible; 3. Provide structured disclosures that allow, to the extent possible, the automation of the forests scoring methodology; 4. Produce responses that lend themselves to effective engagement between external stakeholders and companies, allow companies to demonstrate progress and good practice, and allow stakeholders to identify and engage with companies that do not take action. The scoring methodology provides a score which assesses the responder's progress towards removing commodity-driven deforestation and forest degradation from its direct operations and supply chains, as evidenced by the company's CDP response. This includes an assessment of the level of detail and comprehensiveness in a response as well as the company's awareness of deforestation-related issues, management methods and progress towards leadership. Essential reading Before completing CDP's 2015 forests questionnaire, we strongly encourage you to read the notes in this methodology and CDP's 2015 reporting guidance document on forest risk commodities. The guidance explains, in detail, the information required to answer the questions fully and its instructions are reflected in the point allocation of this scoring methodology. The guidance can be downloaded from: Links to the relevant section of the guidance for each question are provided in the Online Response System (ORS). Data quality and accuracy CDP and its scoring partners produce scores based solely on the data in company responses, as disclosed to CDP directly by the companies. Neither CDP nor their reportwriters verify the information in any individual company response. Information outside of the CDP response is not considered in question level scoring. References to external sources of information, for example websites or Sustainability Reports, will not be considered when scoring. Responders are reminded that information in the CDP response is shared with CDP's investor signatories, whether the response is made available to the public or not, and are advised to provide information that is as complete and accurate as possible. Feedback on your score and questions on this methodology For more information about receiving feedback on your score please contact forests@cdp.net To ask questions or to make suggestions about this methodology please contact respond@cdp.net DISCLAIMER CDP's 2015 forests scoring methodology is still evolving. This version of the methodology has been published to indicate to responding companies how scores will be awarded this year. CDP reserves the right to make adjustments to the criteria or weighting of questions before and throughout the scoring period, based on emerging corporate deforestation risk management strategies and best practice, quality of response data or scoring outcomes. CDP WORLDWIDE 2015

2 Understanding this document Throughout the document you will see columns headed "numerator" and "denominator". The denominator column indicates the maximum number of points attainable for each question. In some cases, the maximum number of points is awarded automatically and does not require any judgment to be made by the scorer. In these cases, the number of points is given in the "numerator" column. Otherwise, the numerator column will be left blank to indicate that the scorer will complete it. The total denominator for a question pathway is indicated in bold in a line below the set of questions in that route. Unless otherwise stated, the scoring indicators apply across all commodities and points will be awarded for each commodity in isolation. If a row has not been completed for a commodity selected in F0.6, 0 points will be awarded for that commodity in that question. Where questions are not commodity specific, points awarded will be added to the question level score for each commodity reported on. Links, attachments, "Further information" and references to answers in other questions Scores will be based on answers entered into CDP s Online Response System (ORS). Unless otherwise stated, only information provided in the specific question text box, column, or field will be assessed. The ORS has facilities for companies to provide Further information and to provide attachments to answers. Whilst this information will be forwarded to investors/requesting members, Further information is not scored. Similarly, only information provided in the specific question text box, column, or field for the particular question will be assessed. References made to answers provided in other questions or other rows (i.e. for other commodities) will not be assessed. Unanswered questions Unanswered questions will be scored 0 out of the maximum available points for that question or set of questions. Blank cells within a table will be interpreted as not responding to the question, or choosing not to disclose data. This is particularly crucial in follow-on questions which require the selection of a commodity in column 1 of a table. If a selection has been made for a commodity in a question that drives a follow-on question, a row must be added and completed for that commodity in the follow-on question. If a row has not been completed for that commodity, zero points will be awarded for that commodity in that question. Supplying information as requested If a question has clearly been answered incorrectly, points will not be awarded for that question. This could include a response which clearly does not answer the question, a text response which does not support or contradicts the selection made from the drop down menu, or information in the wrong field of a table. Company-specific explanations Throughout the scoring methodology some points are awarded for "Company-specific explanations". These are defined as explanations which reference: activities, programs, products, services, methodologies or operating locations which are specific to that company s business or operations. A company-specific explanation should include details that will make the answer true for the responding company, distinct from other companies in the same industry and/or geography. A company-specific explanation should give data users confidence that the issue at hand has been thoroughly considered in the context of the responder's own business, and not simply assessed in general terms.

3 Explanations As well as answering the specific question posed in the questionnaire, explanations should answer the question Why? and/or the question How?. A statement such as This is not relevant for our business will not be considered an explanation since it does not explain why or how the topic is not relevant. Explanations that are duplicated (e.g. copied and pasted between questions) will only be eligible for points if they make sense in the context of each specific question and provide the specific details requested in the scoring methodology. In general, companies should tailor the text of explanations to fit each question, and exercise caution when copying text to avoid losing points unnecessarily. CDP WORLDWIDE 2015

4 Scoring approach Companies will be assessed across four consecutive levels which represent the steps a company moves through as it progresses towards removing deforestation and forest degradation from its direct operations and supply chain. The levels are: 1) Disclosure 2) Awareness 3) Management 4) A minimum score, or the presence of a minimum number of indicators, on one level will be required in order to be assessed on the next level. If the minimum score threshold is not achieved, the company will not be scored on the next level. Thresholds have been provisionally set at 50%, and will be reviewed during the scoring period to ensure that the results reflect the spread of performance accurately. Results will be communicated to responders with their current level, indicating which areas of deforestation risk management they are performing well in, and what actions to target for improvement. Scores will be awarded separately for each commodity a company is reporting on. Scores for questions which are not commodity-specific will be added to the score of each commodity reported on. Companies will receive a level for each commodity reported on. One question may include criteria for scoring across more than one level. The criteria for scoring the levels are distributed throughout the questionnaire. All of the questions are scored for the disclosure level. Some of the questions have no awareness, management or leadership level scoring associated with them. The CDP forests score is based solely on information provided in a company's CDP forests response. However, CDP will reserve the right to exclude responders from the '' level if any publicly available information calls into question their suitability for inclusion in the leadership category. The forests scoring methodology is developing, and CDP welcomes feedback on how best to assess and measure progress based on the CDP response. Management Awareness Disclosure Illustration of forests scoring levels

5 Disclosure points are awarded for every question. Awareness points are awarded for some questions, where the response indicates that the company has enough knowledge of the topic to provide a definitive answer. Management and points are awarded where a company highlights that it is undertaking, or has undertaken, a 'positive' action which contributes to removing deforestation and forest degradation from its direct operations and supply chain. A positive action is one that contributes to better governance, awareness of impact, disclosure, accounting and management. CDP forests scoring is still limited in its consideration of the materiality and effectiveness of actions relative to a company's impact, sector and business; this is an area that CDP intends to investigate in future developments of the methodology. The CDP forests score is based solely on activities and positions disclosed in the CDP response. It therefore does not consider other actions not mentioned in the CDP response and data-users are asked to be mindful that these may be positive or 'adverse' or 'negative' in terms of deforestation risk management. The score is not a comprehensive metric of the level to which a company is environmentally friendly or 'green', or a specific metric on the forest footprint, but rather an indication of the level of action taken by the company to assess and manage its impacts on, and from, deforestation related issues during the reporting year. Scoring does not yet make any assessment of the impacts of a company's disclosed deforestation risk management or deforestation risk mitigation activities. Since deforestation issues are extremely specific to environmental, geographical, social and business contexts in which they occur, assessing impact and developing comparable measures of impact will only be attempted in future versions of the methodology. Links, attachments, "Further information" and references to answers in other questions Scores will be based on answers entered into CDP s Online Response System (ORS). Unless otherwise stated, only information provided in the specific question text box, column, or field will be assessed. The ORS has facilities for companies to provide Further information and to provide attachments to answers. Whilst this information will be forwarded to investors/requesting members, Further information is not scored. Similarly, only information provided in the specific question text box, column, or field for the particular question will be assessed. References made to answers provided in other questions or other rows (i.e. for other commodities) will not be assessed. Unanswered questions Unanswered questions will be scored 0 out of the maximum available points for that question or set of questions. Blank cells within a table will be interpreted as not responding to the question, or choosing not to disclose data. This is particularly crucial in follow-on questions which require the selection of a commodity in column 1 of a table. If a selection has been made for a commodity in a question that drives a follow-on question, a row must be added and completed for that commodity in the follow-on question. If a row has not been completed for that commodity, zero points will be awarded for that commodity in that question. Supplying information as requested If a question has clearly been answered incorrectly, points will not be awarded for that question. This could include a response which clearly does not answer the question, a text response which does not support or contradicts the selection made from the drop down menu, or information in the wrong field of a table. CDP WORLDWIDE 2015

6 Disclosure scoring approach Point allocation Every question in the questionnaire is scored for disclosure. In general, the number of points allocated to each question depends on the amount of data requested. Some questions have more than one point attached to a single piece of information where the information is of particularly high importance. The disclosure scores for sections of the questionnaire are weighted to indicate which sections are most important to data users. Sections with more points allocated to them are of greater importance to data users. At the end of scoring the response, the number of points a company has been awarded is divided by the maximum number that could have been awarded. The fraction is then converted to a percentage by multiplying by 100 and rounded to the nearest whole number. (Points awarded / points attainable) x 100 = Disclosure Score Question types For some questions points or fractions of points are awarded cumulatively, according to the number of data points provided, up to the maximum points available for the question. Other questions require all of the data points requested for the question to be completed in order for any points to be awarded. For the latter type, leaving information blank or failing to provide a required data point will lead to zero points being awarded for that question. Responders are advised to check the scoring methodology closely when preparing responses. Question routes Some parts of the disclosure score takes a 'point balancing' approach to adjust for the fact that not all of the questions or table columns will be relevant to all responders, and therefore will not be presented to all responders or not all responders will be required to complete them, giving different opportunities to accumulate points. This balancing may be applied to a leading question, when some options in a drop-down menu are awarded more points than others. This should not be interpreted as meaning that some selections are preferable to others because they have a different number of disclosure points associated with them. Disclosure threshold A minimum disclosure score will be required to be met before scores are given for awareness and the other scoring levels. This ensures that the response has enough information completed to assess other aspects of deforestation risk management accurately. The threshold is provisionally set at 50% but this level may be revised to ensure it is set at an appropriate level to both reflect and challenge current practice. CDP WORLDWIDE 2015

7 Awareness scoring approach The awareness score measures how comprehensively the company has evaluated how commodity-driven deforestation relates to its business - i.e. impacts of business activities on deforestation and how this affects people and ecosystems, as well as impacts of deforestation-related risk on business activities. This will influence the degree of risk that a particular company faces. Questions F1.1, F1.2, F1.3, F2.1a, F2.1b, F2.2, F4.1, F5.1, F5.2, F6.1a, F6.3, F7.1, F7.2, F9.1, F9.2, and F10.3 have awareness points associated with them. These are indicated in the 'Awareness" columns in the scoring methodology. The awareness score does not measure if a company has taken any actions to address deforestation-related issues, beyond initial screenings or assessments. Action to address issues is measured in the next scoring level: Management. To progress to the management level of scoring a company must have scored over a threshold number of the available awareness points, showing that they have assessed a broad range of deforestation-related issues and demonstrate a basic level of awareness of how commodity-driven deforestation relates to its business. The threshold is provisionally set at 50% and will be reviewed to ensure that the distribution of responders among scoring levels is representative of current levels of progress. CDP WORLDWIDE 2015

8 Management Management points are awarded for questions or columns which provide evidence of actions associated with good deforestation risk management in the CDP response. Answers which represent more advanced management practices have more points associated with them. The maximum number of points available for each question is listed in the "Management Denominator" column in the scoring methodology. Details of how the points will be allocated according to the response chosen and data provided are given in the "Management score allocation" column. After assessing how its business impacts on deforestation, and how deforestation impacts on its business, a company can decide what action to take to reduce these impacts. Efforts can be made to mitigate risks, advance its level of traceability or certification in at-risk countries, make its risk assessments more robust and comprehensive, implement a deforestation policy or make a zero deforestation commitment and integrate deforestation related issues into its business strategy. The management score rewards action in all these areas. Since deforestation related issues are context-specific, as well as often being specific to a particular company s business operations, it is all but impossible to recommend a particular course of action as universally correct to all companies. The management scoring therefore relies on companies disclosure of process and procedure rather than judging the appropriateness or effectiveness of the particular actions that have been undertaken. Questions F1.3a, F2.1, F2.1a, F2.1b, F2.1d, F2.2, F3.1a, F3.1b, F3.1c, F3.2, F3.3, F3.4, F4.1a, F4.2, F4.3, F5.1, F5.2, F5.2a, F5.3, F5.4, F6.1, F6.1a, F6.2, F6.3, F6.3a, F7.1, F7.2a, F7.3, F8.1, F8.2a, F8.3, F8.4, F9.1, F9.2, F9.3, F9.4, F9.5, F9.6, F10.1, F10.2, F10.3, F10.4, F10.5, and F12.1 are scored for management. These are indicated in the 'Management" columns in the scoring methodology. CDP WORLDWIDE 2015

9 points are awarded for actions reported which are considered best practice in deforestation risk management as it s currently generally understood. scoring builds on management scoring as well as the previous levels. Therefore a minimum score in management or one of the other levels may be a requirement before leadership points are awarded. For leadership status, the company response must score leadership points as detailed in the methodology. Questions F2.1, F2.1a, F2.1b, F3.1a, F3.1b, F3.1c, F3.2, F3.3, F3.4, F4.1a, F5.2, F5.2a, F6.1a, F6.3, F7.1, F8.1, F9.2, F9.3, F9.4, F9.5, F9.6, F10.3, F10.4 and F10.5 have leadership points associated with them. Several questions also have leadership requirements associated with the response, although they are not scored for leadership points. Companies which do not meet the criteria detailed for these questions will not be awarded leadership status. Questions F0.3a, F0.4a, F2.1d, F8.2a and F8.4 have such requirements. To qualify for leadership, a company must: 1) Respond on all relevant operations and supply chains, making no significant exclusions (F0.3a, F0.4a); 2) Have undertaken a comprehensive and thorough risk assessment of all operations and supply chains (F2.1/F2.1d); 3) Commit to zero deforestation in all operations and supply chains by - at least (F8.2a or F8.4). These actions represent best practice as reported to CDP, and as formulated by CDP in consultation with other stakeholders working in the field of deforestation risk management of corporate commodity value chains. Review of leadership responses CDP will review all responses which score in the leadership level to ensure that the response is sufficiently detailed and of high enough quality to make a judgment of leadership. Response quality checks will ensure that: 1) responses are generally clear and unambiguous in their meaning; 2) responses answer the questions being asked with relevant information; and 3) responses have an adequate level of detail to answer each question clearly and provide useful information to data users. Significant exclusions If the CDP response contains significant exclusions, as reported in questions F0.3a, F0.4a and F2.1d, the company will not be eligible for a leadership score. Examples of significant exclusions could include a company with very large global operations reporting information for only one relevant country, or a company choosing not to disclose data for a business area which is material to the business and simultaneously has the potential to have a large impact on deforestation. Exclusions due to valid business reasons such as recent mergers or acquisitions will not be considered significant exclusions. Response status (Public) In order to achieve leadership level, the CDP forests response must be made public.

10 Reputation checks CDP will review all responses at the leadership level to ensure that nothing included in the CDP response or available in the public domain calls into question the company's suitability for inclusion in the leadership level. In 2015 CDP will review data dating from the reporting year on a number of social and environmental topics related to CDP's programs. CDP WORLDWIDE 2015

11 Disclosure Awareness Managemen D D A A M M L L Question Approach Approach t Approach Approach Numerator Denominato Numerator Denominato Numerator Denominato Numerator Denominato Number Route 1 Route 2 Question text Max r Max Max r Max Max r Max Max r Max F0.1 Please give a general description and introduction to your organization Not scored Not scored Not scored Not scored F0.2 Please select the stages of the value chain which best represent your organization s area of operation pertaining to forest risk commodities. If your organization is diversified or vertically integrated, please select all that apply F0.3 Are there any parts of your direct operations that are excluded from this disclosure? F0.3a F0.3 Yes Please identify the parts of your direct operations that are excluded from your disclosure F0.4 Are there any parts of your supply chain that are excluded from this disclosure? Not scored Not scored Not scored Not scored Not scored Not scored Not scored; Not scored Not scored requirement Not scored Not scored Not scored Not scored Not scored Not scored; requirement F0.4a F0.4 Yes Please identify the parts of your supply chain that are excluded from your disclosure Do you produce or use materials that contain any of the forest risk commodities? F0.5 Please complete the table Not scored Not scored Not scored Not scored F0.6 Please confirm which commodities you will be disclosing on Not scored Not scored Not scored Not scored F0.7 Please state the start and end date of the year for which you are reporting data Not scored Not scored Not scored Not scored F1.1 F1.2 F1.3 F1.3a F1.3 Yes F1.4 F1.3 Don t know F2.1 How does your organization use your selected commodities? Please provide details on the form and source of the commodities you use or produce Please indicate the percentage of your organization s revenue dependent on each of your selected forest risk commodities Has your organization experienced impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years? Please identify the impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years Please describe why you do not know if your organization experienced any impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years Please select the option that best describes your procedures with regard to assessing deforestation risks and opportunities and selection in table Not scored Not scored Not scored Not scored option selected Not scored Not scored , selection and Not scored explanation Not scored Not scored Not scored Not scored selection and selection and Not scored explanation explanation F2.1a F2.1 column 2 'Integrated into a comprehensive, company-wide risk assessment process'; 'Undertaken independently of other risk assessments'; 'Other' Please provide further details on your risk assessment procedures with regard to deforestation risks and opportunities and selection and selection, selection and explanation F2.1b F2.1 column 2 'Integrated into a comprehensive, company-wide risk assessment process'; 'Undertaken independently of other risk assessments'; 'Other' Please identify which of the following criteria are factored into your organization s deforestation risk assessments selection and explanation, selection and explanation F2.1c F2.1 column 2 'Integrated into a comprehensive, company-wide risk assessment process'; 'Undertaken independently of other risk assessments'; 'Other' Please provide any additional information about your approach to assessing deforestation risks here Not scored Not scored Not scored Not scored F2.1d F2.2 F2.1 column 2 'Integrated into a comprehensive, company-wide risk assessment process'; 'Undertaken independently of other risk assessments'; 'Other' F2.1 column 2 'Deforestation risks are not assessed' F2.1 column 3 'Partial direct operations' and/or 'Partial supply If you have conducted a partial risk assessment, please identify any exclusions in the following chain' table Please explain why you do not have a process in place for assessing and managing deforestation risks, and whether you plan to introduce such a process in the future Not scored and explanation Not scored; requirement selection Penalty Penalty F3.1 Have you identified any inherent risks related to producing, marketing or sourcing forest risk commodities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Please select all that apply Not scored Not scored Not scored Not scored F3.1a F3.1 'Risks driven by changes in physical parameters' For your selected forest risk commodities, please describe any inherent operational risks in your direct operations or supply chain driven by changes in physical parameters that have the potential to generate a substantive change in business operations, revenue or expenditure Not scored selection and explanation explanation

12 Question Number Route 1 Route 2 Question text Disclosure Approach 2015 Awareness Approach 2015 Managemen t Approach 2015 Approach 2015 D Numerator Max D A Denominato Numerator r Max Max A M Denominato Numerator r Max Max M L Denominato Numerator r Max Max L Denominato r Max F3.1b F3.1c F3.2 F3.3 F3.4 F3.1 'Risks driven by changes in regulation' F3.1 'Reputational risk' For your selected forest risk commodities, please describe any inherent risks in your direct operations or supply chain driven by changes in regulation that have the potential to generate a substantive change in business operations, revenue or expenditure For your selected forest risk commodities, please describe any inherent reputational risks in your direct operations or supply chain that have the potential to generate a substantive change in business operations, revenue or expenditure If you indicated in question F3.1 that you do not consider your organization to be exposed to operational risks related to producing, marketing or sourcing any of your selected commodities, please explain why in the table below If you indicated in question F3.1 that you do not consider your organization to be exposed to risks related to producing, marketing or sourcing any of your selected commodities driven by changes in regulation, please explain why in the table below If you indicated in question F3.1 that you do not consider your organization to be exposed to reputational risks related to producing, marketing or sourcing any of your selected commodities, please explain why in the table below Not scored Not scored Not scored Not scored Not scored selection and explanation selection and explanation and explanation and explanation and explanation explanation explanation , selection and explanation , selection and explanation , selection and explanation F4.1 F4.1a F4.1 Yes F4.2 F4.1 No F4.3 F4.1 Don t know F5.1 F5.2 Have you identified any opportunities related to producing, marketing or sourcing these commodities sustainably that have the potential to benefit your organization? Please describe the opportunities related to producing, marketing or sourcing these commodities sustainably, and your organization s strategy to capitalize on them Please explain why you do not consider there to be any opportunities for your organization associated with producing, marketing or sourcing these commodities sustainably Please explain why you don t know if there are any opportunities for your organization associated with producing, marketing or sourcing these commodities sustainably Do you own or manage land used for the production of any of your selected commodities? Please complete the table Does your organization collect production and/or consumption data for your selected commodities? selection Not scored Not scored Not scored Not scored Not scored selection selection and explanation and explanation and explanation Not scored and explanation Not scored selection and explanation Not scored selection selection F5.2a F5.3 F5.2 'Consumption data available, disclosing'; 'Production data available, disclosing'; or 'Consumption and production data available, disclosing' F5.2 'Data available, but not disclosing' route Please disclose your production and/or consumption data using the table below Please explain why your organization is not disclosing production and/or consumption data for your selected commodities Not scored Not scored and explanation selection and explanation and explanation Not scored

13 Question Number Route 1 Route 2 Question text F5.4 F5.3 'Data not available' route F6.1 F6.1a F6.2 F6.3 F6.3a F7.1 F7.2 F0.2 'Production'; 'Processing'; and/or 'Trading' F0.2 'Production'; 'Processing'; and/or 'Trading' F0.2 'Production'; 'Processing'; and/or 'Trading' F0.2 'Manufacturing'; and/or 'Retailing' F0.2 'Manufacturing'; and/or 'Retailing' F6.1 Yes F6.1 No Please explain why production and/or consumption data is not available for your selected commodities Do you have a system in place to track and monitor the origin of raw materials for your selected commodities? Please describe the system you have in place to track and monitor the origin of raw materials for your selected commodities Please explain why you do not have a system in place to track and monitor the origin of raw materials for your selected commodities Please provide details on the level of traceability your organization has for your selected commodities Please describe your organization s approach to establishing traceability Please indicate where the highest level of direct responsibility for deforestation risk lies within your organization and detail the frequency and nature of engagement on the issue Have you evaluated how the availability or quality of forest risk commodities could affect your organization s growth strategy? Disclosure Approach 2015 Awareness Approach 2015 Not scored Not scored and selection Not scored and selection Not scored selection Managemen t Approach Approach D Numerator Max D A Denominato Numerator r Max Max A M Denominato Numerator r Max Max M L Denominato Numerator r Max Max L Denominato r Max and explanation Not scored selection Not scored and explanation, selection and requirement (F9.4) selection and explanation Not scored , selection and explanation, selection and requirement (F9.4) explanation Not scored and selection selection selection Not scored Not scored F7.2a F7.2 Yes F7.3 F7.2 Not evaluated F8.1 Please explain how you evaluated the effects of the availability or quality of forest risk commodities on the success (viability, constraints) of your organization s growth strategy Please explain why you have not evaluated how the availability or quality of forest risk commodities could affect the success (viability, constraints) of your organization s growth strategy Not scored Not scored Do you have a company policy that recognizes the role of deforestation in climate change mitigation? Not scored Not scored explanation Not scored and explanation Not scored selection selection and explanation F8.2 F8.2a F8.2 Yes F8.3 F8.2 No Has your organization made a commitment to reduce or remove deforestation and forest degradation from your direct operations and/or supply chain? Please identify which of the following criteria are specifically stated in your organization s commitment to reduce or remove deforestation and forest degradation from your direct operations and/or supply chain Please explain why your organization has not made a commitment to reduce or remove deforestation and forest degradation from your direct operations and/or supply chain, and whether you plan to do this in the future F8.4 Do you have commodity specific sustainability policies? F9.1 F9.2 F9.3 F9.4 F9.5 F0.2 'Production'; 'Processing'; and/or 'Trading' F0.2 'Manufacturing'; and/or 'Retailing' Do you have any environmental standards for the production of raw materials for your selected commodities, other than third party certification schemes? Does your organization enforce any procurement standards that impact your sourcing of forest risk commodities? Are you involved in any multi-partnership or stakeholder initiatives relating to the sustainability of these commodities? Please describe your role Do you specify any third party certification schemes for your selected commodities? Please indicate the percentage of total production and/or consumption currently certified Do you have any quantified targets for third party certified materials in your direct operations and/or supply chains? Not scored Not scored Not scored Not scored Not scored Not scored Not scored Not scored Not scored, selection and explanation Not scored; requirement (F8.4) , selection and explanation Not scored , selection and explanation Not scored; requirement (F8.2a) selection and explanation Not scored explanation selection and explanation, selection and explanation, selection and explanation selection and explanation explanation , selection and requirement (F6.1a, F6.3) , selection and requirement (F6.1a, F6.3, F9.4, F9.6)

14 Question Number Route 1 Route 2 Question text F9.6 Do you have any quantified targets for sustainable production and/or procurement, other than third party certification? Disclosure Approach 2015 Awareness Approach 2015 Not scored Managemen t Approach 2015, selection and explanation Approach 2015 D Numerator Max D A Denominato Numerator r Max Max A M Denominato Numerator r Max Max M L Denominato Numerator r Max Max L Denominato r Max, selection and requirement (F6.1a, F6.3, F9.4, F9.5) F10.1 F10.2 F10.3 F10.4 F0.2 'Production'; 'Processing'; and/or 'Trading' F0.2 'Manufacturing'; and/or 'Retailing' F0.2 'Manufacturing'; and/or 'Retailing' Have you identified sufficient sources of sustainable materials to meet your operational needs? Please explain what you are doing to ensure security/continuity of supply Are you working with smallholders to encourage and support sustainable forest management practices? Are you working with your direct suppliers to support and improve their capacity to supply sustainable materials? Are you working beyond the first tier of your supply chain to manage and mitigate risk? Not scored Not scored selection Not scored and explanation Not scored and explanation Not scored selection and explanation and explanation and explanation selection and explanation F10.5 Do you engage in activities that could either directly or indirectly influence the market for sustainable forest risk commodities? Please describe any key barriers or challenges to achieving deforestation free direct Not scored and explanation selection F11.1 operations and supply chains Not scored Not scored Not scored Not scored Please describe any measures that would improve your organization s ability to F11.2 manage deforestation risk Not scored Not scored Not scored Not scored Please provide the following information for the person that has signed off (approved) F12.1 your CDP forests response Not scored selection Not scored Questions in bold will be presented to all responders regardless of question routes chosen. CDP WORLDWIDE 2015

15 D Denom Min Minimum and maximum total denominators for each module, and the overall total for each level D Denom Max A Denom Min A Denom Max M Denom Min M Denom Max L Denom Min L Denom Max Minimum and maximum denominators for each module expressed as a percentage of the total of the minimum & maximum for each level F F0 8% 9% 0% 0% 0% 0% 0% 0% F F1 11% 9% 33% 24% 0% 2% 0% 0% F F2 5% 8% 8% 15% 16% 13% 20% 13% F F3 8% 23% 0% 0% 9% 16% 9% 12% F F4 5% 3% 8% 6% 3% 4% 0% 4% F F5 8% 5% 25% 18% 15% 13% 18% 20% F F6 5% 7% 0% 6% 6% 8% 6% 8% F F7 8% 5% 17% 12% 9% 6% 6% 4% F F8 12% 8% 0% 0% 12% 9% 12% 8% F F9 18% 14% 8% 12% 22% 18% 24% 20% F F10 5% 7% 0% 6% 6% 8% 6% 12% F F12 4% 3% 0% 0% 3% 2% 0% 0% TOTAL TOTAL 100% 100% 100% 100% 100% 100% 100% 100% D Denom Min D Denom Max A Denom Min A Denom Max M Denom Min M Denom Max L Denom Min L Denom Max

16 F0. Introduction Disclosure Awareness Number Module Question text Numerator Denominator Disclosure point allocation Numerator Denominator Awareness point allocation Please give a general description and introduction to your F0.1 Introduction organization F0.2 Introduction F0.3 'Yes' route F0.3 Introduction Please select the stages of the value chain which best represent your organization s area of operation pertaining to forest risk commodities. If your organization is diversified or vertically integrated, please select all that apply disclosure point will be awarded for selecting at least one option from the tick box menu. 0 0 Not scored Are there any parts of your direct operations that are excluded from this disclosure? disclosure point will be awarded for. 0 0 Not scored F0.3a Introduction 1 disclosure point will be awarded for fully completing all Please identify the parts of your direct operations that are excluded from your disclosure 1 columns in the table. For each cell left blank, 0.25 points will 1 be deducted. 0 0 Not scored F0.3 'No' route F0.3 Introduction F0.3a Introduction F0.4 'Yes' route F0.4 Introduction Are there any parts of your direct operations that are excluded from this disclosure? disclosure point will be awarded for. 0 0 Not scored Please identify the parts of your direct operations that are excluded from your disclosure 0 0 This question will not be presented in this question route. 0 0 Not scored Are there any parts of your supply chain that are excluded from this disclosure? disclosure point will be awarded for. 0 0 Not scored F0.4a Introduction 1 disclosure point will be awarded for fully completing all Please identify the parts of your supply chain that are excluded from your disclosure 1 columns in the table. For each cell left blank, 0.25 points will 1 be deducted. 0 0 Not scored F0.4 'No' route F0.4 Introduction F0.4a Introduction F0.5 Introduction Are there any parts of your supply chain that are excluded from this disclosure? disclosure point will be awarded for. 0 0 Not scored Please identify the parts of your supply chain that are excluded from your disclosure 0 0 This question will not be presented in this question route. 0 0 Not scored Do you produce or use materials that contain any of the forest risk commodities? Please complete the table F0.6 Introduction Please confirm which commodities you will be disclosing on Please state the start and end date of the year for which you F0.7 Introduction are reporting data

17 F0. Introduction Management Number Module Question text Please give a general description and introduction to your F0.1 Introduction organization Numerator Denominator Management point allocation Numerator Denominator point allocation F0.2 Introduction F0.3 'Yes' route F0.3 Introduction Please select the stages of the value chain which best represent your organization s area of operation pertaining to forest risk commodities. If your organization is diversified or vertically integrated, please select all that apply Are there any parts of your direct operations that are excluded from this disclosure? F0.3a Introduction Please identify the parts of your direct operations that are excluded from your disclosure 0 0 Not scored 0 As a requirement for level, scorers should check that any relevant exclusions to the response have been transparently identified and are not relevant to the extent that the response will give an inaccurate or misleading picture of the company's deforestation risk management. For example, if a company operates globally but is disclosing for only one of its relevant countries of operation or business divisions, this would not be considered adequate for them to be considered for leadership status. Please refer to questionnaire guidance for details on determining relevant exclusions. CDP reserves the right to exclude companies from the leadership level if publicly available information indicates that relevant information has been excluded or misrepresented in the 0 response. F0.3 'No' route F0.3 Introduction F0.3a Introduction F0.4 'Yes' route F0.4 Introduction F0.4a Introduction F0.4 'No' route F0.4 Introduction F0.4a Introduction F0.5 Introduction Are there any parts of your direct operations that are excluded from this disclosure? Please identify the parts of your direct operations that are excluded from your disclosure Are there any parts of your supply chain that are excluded from this disclosure? Please identify the parts of your supply chain that are excluded from your disclosure Are there any parts of your supply chain that are excluded from this disclosure? Please identify the parts of your supply chain that are excluded from your disclosure Do you produce or use materials that contain any of the forest risk commodities? Please complete the table 0 0 Not scored 0 As a requirement for level, scorers should check that any relevant exclusions to the response have been transparently identified and are not relevant to the extent that the response will give an inaccurate or misleading picture of the company's deforestation risk management. For example, if a company operates globally but is disclosing for only one of its relevant countries of operation or business divisions, this would not be considered adequate for them to be considered for leadership status. Please refer to questionnaire guidance for details on determining relevant exclusions. CDP reserves the right to exclude companies from the leadership level if publicly available information indicates that relevant information has been excluded or misrepresented in the 0 response. F0.6 Introduction Please confirm which commodities you will be disclosing on Please state the start and end date of the year for which you F0.7 Introduction are reporting data

18 F1. Context Disclosure Awareness Number Module Question text Numerator Denominator Disclosure point allocation Numerator Denominator Awareness point allocation 1 disclosure point will be awarded for fully completing all columns in the table except the "Comment" column for at least one row per commodity selected in F0.6. For each cell left blank, 0.20 points will be deducted. 1 awareness point will be awarded for fully completing all columns except the "Comment" column for at least one row per commodity selected in F0.6 AND selecting any option (including "Other") in the "Source location" and "% of procurement spend" columns except the following: - Don't know F1.1 How does your organization use your selected commodities? Please provide details on the form and source of the Current State commodities you use or produce If there is not at least one row completed for a commodity 1 selected in F0.6, 0 points will be awarded. If there is not at least one row completed for a commodity 1 selected in F0.6, 0 points will be awarded. 2 disclosure points will be awarded for selecting an option 2 awareness points will be awarded for selecting an option Please indicate the percentage of your organization s revenue from the drop down menu in the "% revenue dependent on from the drop down menu in the "% revenue dependent on F1.2 Current State dependent on each of your selected forest risk commodities 2 commodity" column. 2 commodity" column. F1.3 'Yes' route F1.3 Current State F1.3a Has your organization experienced impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years? 1 1 disclosure point will be awarded for awareness point will be awarded for selecting "Yes". 1.5 disclosure points will be awarded for fully completing all columns in the table. Points will be awarded for as follows: Impact driver = 0.2 points Impact = 0.2 points Desrcription of impact = 0.2 points Please identify the impacts related to forest risk commodities that have generated a substantive change in your business Current State operations, revenue or expenditure in the past five years Financial impact = 0.2 points Response strategy = 0.1 points 1.5 Description of response strategy = 0.1 points 0 0 Not scored F1.4 Current State Please describe why you do not know if your organization experienced any impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years 0 0 This question will not be presented in this question route. 0 0 Not scored F1.3 'Don't know' route Has your organization experienced impacts related to forest risk commodities that have generated a substantive change in F1.3 your business operations, revenue or expenditure in the past Current State five years? 1 1 disclosure point will be awarded for. 0 0 out of a maximum of 1 awareness points will be awarded for 1 selecting "Don't know". F1.3a Current State Please identify the impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years 0 0 This question will not be presented in this question route. 0 0 Not scored Please describe why you do not know if your organization F1.4 experienced any impacts related to forest risk commodities that have generated a substantive change in your business Current State operations, revenue or expenditure in the past five years 1 disclosure point will be awarded for selecting an option from the drop down menu (including "Other") in the "Primary 1 reason for being unaware of impacts" column. 0 0 Not scored F1.3 'No' route F1.3 Current State Has your organization experienced impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years? 1 1 disclosure point will be awarded for awareness point will be awarded for selecting "No". F1.3a Current State Please identify the impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years 0 0 This question will not be presented in this question route. 0 0 Not scored F1.4 Current State Please describe why you do not know if your organization experienced any impacts related to forest risk commodities that have generated a substantive change in your business operations, revenue or expenditure in the past five years 0 0 This question will not be presented in this question route. 0 0 Not scored