The A List. The CDP Climate Performance Leadership Index On behalf of 767 investors with assets of US$92 trillion.

Transcription

1 Th A List Th CDP Climat Prformanc Ladrship Indx 2014 On bhalf of 767 invstors with assts of US$92 trillion Rport sponsor

2 近 似 色 Aplicación sobr fondo blanco Dloitt Blu Dloitt Grn PANTONE:コート 紙 を 使 用 する 場 合 にはPANTONE COATEDチップ 非 コート 紙 の 場 合 にはPANTONE UNCOATEDチップを 基 準 としてください CDP 2014 scoring partnrs CDP works with a numbr of partnrs to dlivr th scors for all our rsponding companis. Ths partnrs ar listd blow along with th gographical rgions in which thy provid th scoring. All scoring partnrs hav to complt a dtaild training cours to nsur th mthodology and guidanc ar applid corrctly and th scoring rsults go through a comprhnsiv quality assuranc procss bfor bing publishd. In som rgions thr is mor than on scoring partnr and th rsponsibilitis ar shard btwn multipl partnrs. CDP s global scoring and sustainability businss procss outsourcing (BPO) partnr Australia & Nw Zaland, Bnlux, Canada, Hong Kong, India, Irland, Nordic, SE Asia, Unitd Kingdom, Grmany and Austria Switzrland Brazil Franc 基 準 色 PANTONE DIC F294 CMYK C100 M75 Y0 K13 C45 M0 Y93 K0 RGB R0 G39 B118 R146 G212 B0 Japan China, Japan, Russia, Turky Grmany and Austria Grmany: Mittlstand Italy South Africa South Africa South Kora Aplicación n Mrchandising sustainabl Japan Aplicación n B/N Spain, Portugal and Latin Amrica Aplicación sobr color Japan Grmany and Austria Our sincr thanks ar also xtndd to th following for thir gnrous support: PE Intrnational ACCIONA BT Group CVS Halth Daimlr AG Elkta Konica Minolta, Inc Johnson Matthy Simns Aktingsllschaft

3 Contnts CEO forword 05 Sustainability data maks businss strongr Gust commntary: PE Intrnational 06 Climat Prformanc Ladrship Indx (CPLI) 08 What maks a climat chang prformanc global ladr? Excutiv summary 11 Ladrship critria 12 Whr ar th prformanc ladrs? 14 Invstor analysis: Climat chang action and financial prformanc Sctor profils 16 Consumr discrtionary 18 Consumr stapls 20 Enrgy 22 Financials 24 Halth car 26 Industrials 28 Information tchnology 30 Matrials 32 Tlcommunication srvics 34 Utilitis 36 Building on climat chang ladrship: Natural capital 37 Appndix I Invstor mmbrs 38 Appndix II Largst non-rspondrs by markt capitalization 40 Appndix III Invstor signatoris Masurmnt of missions usd throughout th rport: 1 gigaton (Gt) = 1,000,000,000 mtric tons 1 mgaton (Mt) = 1,000,000 mtric tons Covr photo: Shawn Pcor / Shuttrstock.com Important Notic Th contnts of this rport may b usd by anyon providing acknowldgmnt is givn to CDP. This dos not rprsnt a licns to rpackag or rsll any of th data rportd to CDP or th contributing authors and prsntd in this rport. If you intnd to rpackag or rsll any of th contnts of this rport, you nd to obtain xprss prmission from CDP bfor doing so. CDP has prpard th data and analysis in this rport basd on rsponss to th 2014 climat chang information rqust. No rprsntation or warranty (xprss or implid) is givn by CDP or any of its contributors as to th accuracy or compltnss of th information and opinions containd in this rport. You should not act upon th information containd in this publication without obtaining spcific profssional advic. To th xtnt prmittd by law, CDP and its contributors do not accpt or assum any liability, rsponsibility or duty of car for any consquncs of you or anyon ls acting, or rfraining to act, in rlianc on th information containd in this rport or for any dcision basd on it. All information and viws xprssd hrin by CDP and its contributors ar basd on thir judgmnt at th tim of this rport and ar subjct to chang without notic du to conomic, political, industry and firm-spcific factors. Gust commntaris whr includd in this rport rflct th viws of thir rspctiv authors; thir inclusion is not an ndorsmnt of thm. CDP and its contributors, thir affiliatd mmbr firms or companis, or thir rspctiv sharholdrs, mmbrs, partnrs, principals, dirctors, officrs and/or mploys, may hav a position in th scuritis of th companis discussd hrin. Th scuritis of th companis mntiond in this documnt may not b ligibl for sal in som stats or countris, nor suitabl for all typs of invstors; thir valu and th incom thy produc may fluctuat and/or b advrsly affctd by xchang rats. CDP rfrs to CDP Worldwid, a Unitd Kingdom company limitd by guarant, rgistrd as a Unitd Kingdom charity numbr CDP Worldwid. All rights rsrvd.

4 04 CEO forword On irrfutabl fact is filtring through to companis and invstors: th bottom lin is at risk from nvironmntal crisis. Th global conomy has bouncd back from crisis and a cautious optimism is bginning to prvad th markts. As w mbrac rcovry w must rmmbr that grnhous gas missions continu to ris and w fac stp financial risk if w do not mitigat thm climatchang/towards-aclimat-agrmnt/ Th unprcdntd nvironmntal challngs that w confront today rducing grnhous gas missions, safguarding watr rsourcs and prvnting th dstruction of forsts ar also conomic problms. On irrfutabl fact is filtring through to companis and invstors: th bottom lin is at risk from nvironmntal crisis. Th impact of climat vnts on conomis around th world has incrasingly bn splashd across hadlins in th last yar, with th worst wintr in 30 yars suffrd by th costing billions of dollars. Australia has xprincd its hottst two yars on rcord and th UK has had its wttst wintr for hundrds of yars costing th insuranc industry ovr a billion pounds. Ovr thr quartrs of companis rporting to CDP this yar hav disclosd a physical risk from climat chang. Invsting in climat chang rlatd rsilinc planning has bcom crucial for all corporations. Invstor ngagmnt on ths issus is incrasing. In th US a rcord numbr of sharholdr rsolutions in th 2014 proxy sason ld 20 intrnational corporations to commit to rduc grnhous gas missions or sustainably sourc palm oil. As mainstram invstors bgin to rcogniz th ral valu at risk, w ar sing mor action from som of th 767 invstors who rqust disclosur through CDP. Th Norwgian pnsion fund, Norgs Bank, with assts worth ovr $800 billion, xpcts companis to show stratgis for climat chang risk mitigation and watr managmnt, and hav divstd from both timbr and palm oil companis that did not mt thir standards. Thr is growing momntum on th policy front with Prsidnt Obama s announcmnt of nw fdral ruls to limit grnhous gass in th US. In th EU, som 6,000 companis will b rquird to disclos on spcific nvironmntal, social and govrnanc critria as part of thir mainstram rporting to invstors. In China ovr 20,000 companis will b rquird to rport thir grnhous gas missions to th govrnmnt. Thr is a palpabl sa chang in approach by companis drivn by a growing rcognition that thr is a cost associatd with th carbon thy mit. Masurmnt, transparncy and accountability drivs positiv chang in th world of businss and invstmnt. Our xprinc working with ovr 4,500 companis shows th multitud of bnfits for companis that rport thir nvironmntal impacts, unviling risks and prviously unsn opportunitis. W ar standing at a junctur in history. With th prospct of a global climat dal coming from th Unitd Nations procss, govrnmnts, citis, th privat sctor and civil socity hav a grat opportunity to tak bold actions and build momntum in th run up to th Paris 2015 mting. Th dcisions w mak today can lad us to a profitabl and scur futur. A futur that w can all b proud of. Paul Simpson Chif Excutiv Officr, CDP

5 Sustainability data maks businss strongr 05 Tru ladrs in th fild ar using thir sustainability information to bcom strongr businsss and to mak bttr dcisions. Humanity is living byond th plant s ability to support us. W hav to dcoupl conomic growth from our us of rsourcs and th first stp to doing that is to know and monitor th impact of our activitis. Thanks to th fforts of CDP, th amount and quality of data availabl to businsss has xplodd. W now liv in th ag of big data and businsss hav th ability to dcod quickly and ffctivly th impact of th way thy oprat. This is a boon to companis and thir stakholdrs as thy bcom incrasingly concrnd about issus ranging from grnhous gas missions and rsourc scarcity to labor conditions and conflict minrals and thir potntial ffcts on businss prformanc. Businsss, citis, govrnmnt dpartmnts and municipalitis nd to know, now mor than vr, what is going on within thir own oprations and throughout thir valu chains. Howvr, thr is a big diffrnc btwn having th information availabl and bing abl to mak good us of it. Trying to gathr and us this data armd with littl mor than a clipboard and a spradsht is no longr fasibl if organizations want to manag thir sustainability rporting and xtract th maximum valu from it. Thy nd systm-wid softwar platforms that nabl thm to valuat vrything from a product carbon footprint to an ntrpris-lvl sustainability stratgy or supply chain program. And information, onc collctd, should not b trappd in th silos of diffrnt dpartmnts but should b usd again and again to mt rqusts for gratr transparncy from stakholdrs ranging from organisations such as CDP to invstors, customrs, mploys and rgulators. Howvr, disclosur on its own is not nough. Sustainability ladrs ar using th walth of data thy now hav availabl to dfin targts, idntify opportunitis, bnchmark thir prformanc, monitor and masur cost and communicat thir progrss. Th intgration of sustainability prformanc managmnt into thir oprations nabls businsss not just to map thir sustainability landscap but also to navigat thir way through it and scal up thir fforts. Armd with th knowldg of th full impacts of thir valu chains and products, thy can improv thm or mak ntirly nw products with sustainability dsignd into thm. Thy can crat innovativ tchnologis and sll into nw markts. And crucially, thy can do this not just on an ad-hoc or on-off basis but thy can scal up thir sustainability prformanc throughout thir organizations to crat an ongoing comptitiv advantag. Tru ladrs in th fild ar using thir sustainability information to bcom strongr businsss and to mak bttr dcisions basd on what thy hav larnd. Thy undrstand that analyzing, rporting and bnchmarking th data thy hav gathrd can hlp to boost rvnus, strngthn brands, cut costs and manag risks. W congratulat th companis rcognisd for thir ladrship in this rport and ar plasd to continu to accompany many of thm on thir journy. Christoph Wilfrt CEO, PE Intrnational

6 Climat Prformanc Ladrship Indx (CPLI) Yars Company Country on CPLI Consumr discrtionary ARÇELİK A.Ş Turky Nw BMW AG Grmany Daimlr AG Grmany DIRECTV Nw Fiat Italy Gnral Motors Company Nw H&M Hnns & Mauritz AB Swdn Johnson Controls Nw Kring Franc Nw LG Elctronics South Kora Nissan Motor Co., Ltd. Japan Rd Elsvir Group Unitd Kingdom Rnault Franc Nw Skisui Chmical Co., Ltd. Japan Tofaş Türk Otomobil Fabrikası A.Ş. Turky Nw Toyota Motor Corporation Japan Volkswagn AG Grmany Wyndham Worldwid Corporation Nw YOOX SpA Italy Consumr stapls Aon Co., Ltd. Japan Nw Anhusr Busch InBv Blgium Associatd British Foods Unitd Kingdom Nw Coca-Cola HBC AG Switzrland Nw CVS Halth Nw Danon Franc Nw Diago Plc Unitd Kingdom Hinkn NV Nthrlands Nw J Sainsbury Plc Unitd Kingdom Nw Kirin Holdings Co Ltd Japan Nw L Oral Franc Morrison Suprmarkts Unitd Kingdom Nw Oriflam Cosmtics AB Swdn Nw Philip Morris Intrnational Pick n Pay Stors Ltd South Africa SABMillr Unitd Kingdom Nw Shisido Co., Ltd. Japan Nw Sona Portugal Suntory Bvrag & Food Japan Nw Unilvr plc Unitd Kingdom Wal-Mart Stors, Inc. Nw Enrgy Essar Oil India Nw S-Oil Corporation South Kora Nw Solstad Offshor Norway Nw Spctra Enrgy Corp Financials Aviva Unitd Kingdom Nw Banco Espirito Santo Portugal Nw Yars Company Country on CPLI Banco Santandr Spain Nw Bank of Amrica Mrrill Lynch Bankia Spain Nw BNY Mllon CaixaBank Spain Comrica Incorporatd Commrzbank AG Grmany Nw Commonwalth Bank of Australia Australia Daiwa Hous Industry Co., Ltd. Japan Nw Dxus Proprty Group Australia Firstrand Limitd South Africa Gnrali Dutschland Holding AG Grmany Goldman Sachs Group Inc. Hndrson Group Irland Nw Host Hotls & Rsorts, Inc. HSBC Holdings plc Unitd Kingdom ING Group Nthrlands Nw Insuranc Australia Group Australia Intsa Sanpaolo S.p.A Italy Invsta Offic Fund Australia Nw National Australia Bank Australia Principal Financial Group, Inc. Raiffisn Bank Intrnational AG Austria Rdfin Proprtis Ltd South Africa Nw Samsung Fir & Marin Insuranc South Kora Nw Sanlam South Africa Nw Shinhan Financial Group South Kora Simon Proprty Group Nw Standard Bank Group South Africa Nw Standard Chartrd Unitd Kingdom Nw TD Bank Group Canada Th Hartford Financial Srvics Group, Inc. UBS Switzrland Wlls Fargo & Company Zurich Insuranc Group Switzrland Nw Halth car AstraZnca Unitd Kingdom Nw Bayr AG Grmany Elkta Swdn Nw Lundbck A/S Dnmark Nw Mdiclinic Intrnational South Africa Nw Novozyms A/S Dnmark Nw Olympus Corporation Japan Industrials Abngoa Spain Balfour Batty Unitd Kingdom Nw Bombardir Inc. Canada Nw bpost Blgium Nw Canadian National Railway Company Canada Nw Carillion Unitd Kingdom CNH Industrial NV Unitd Kingdom Nw

7 07 Yars Company Country on CPLI Cobham Unitd Kingdom Nw CSX Corporation Dai Nippon Printing Co., Ltd. Japan Nw Daikin Industris, Ltd. Japan Nw Dampskibsslskabt NORDEN A/S Dnmark Nw Dutsch Bahn* Grmany Nw Doosan Havy Industris South Kora & Construction Frrovial Spain Finnair Finland Nw Flughafn Münchn GmbH* Grmany Nw Hyundai E&C South Kora IHI Corporation Japan Nw Kawasaki Kisn Kaisha, Ltd. Japan Nw Komatsu Ltd. Japan Larsn & Toubro India Nw Lockhd Martin Corporation MAN SE Grmany Nw Mitsui O.S.K. Lins Ltd Japan Nw Northrop Grumman Corp Royal BAM Group Nthrlands Nw Royal Philips Nthrlands Samsung C&T South Kora Schnidr Elctric Franc SGS SA Switzrland Shimizu Corporation Japan Simns Aktingsllschaft Grmany Stanly Black & Dckr, Inc. Taisi Corporation Japan Nw Thals Franc Nw Toppan Printing Co., Ltd. Japan Nw Toshiba Corporation Japan Toto Ltd. Japan Nw Information tchnology Accntur Irland Nw Adob Systms, Inc. Akamai Tchnologis Inc Nw Amadus IT Holding Spain Nw Appl Inc. Nw Atos SE Franc Autodsk, Inc. Cap Gmini Franc Nw Cisco Systms, Inc. Dlta Elctronics Gratr China Nw Ericsson Swdn Nw EVRY ASA Norway Nw Fujitsu Ltd. Japan Googl Inc. Nw Group Stria Franc Hwltt-Packard Hitachi, Ltd. Japan Nw Junipr Ntworks, Inc. Nw Yars Company Country on CPLI Konica Minolta, Inc. Japan Microsoft Corporation Nokia Group Finland Samsung Elctro-Mchanics South Kora Co., Ltd. Samsung Elctronics South Kora Samsung SDI South Kora SAP AG Grmany SK Hynix South Kora Tata Consultancy Srvics India Tch Mahindra India Nw Vaisala Oyj Finland Nw Wipro India Matrials ACERINOX Spain Nw Anglo Amrican Platinum South Africa Nw Harmony Gold Mining Co Ltd South Africa Holmn Swdn Isral Chmicals Isral Nw Italcmnti Italy Nw Johnson Matthy Unitd Kingdom Nw LG Chm South Kora Nw Syngnta Intrnational AG Switzrland Nw Tck Rsourcs Limitd Canada Nw Th Mosaic Company UPM-Kymmn Corporation Finland Nw Tlcommunication srvics Blgacom Blgium BT Group Unitd Kingdom Elisa Oyj Finland Nw Koninklijk KPN NV (Royal KPN) Nthrlands KT Corporation South Kora Nippon Tlgraph Japan Nw & Tlphon Corporation (NTT) Orang Franc Sprint Nxtl Corporation Tlfonica Spain Tlnor Group Norway TliaSonra Swdn Nw Utilitis ACCIONA S.A. Spain Cntrica Unitd Kingdom Nw EnBW Enrgi Badn-Württmbrg AG Grmany Nw Endsa Spain Nw Entrgy Corporation Gas Natural SDG SA Spain Ibrdrola Spain Kora District Hating Corp. South Kora Nw Ppco Holdings, Inc. RWE AG Grmany Nw SSE Unitd Kingdom VERBUND AG Austria Nw Indicats total numbr of yars on CPLI from 2010 to 2014 inclusiv Shadd aras indicat th companis that hav bn on CPLI vry yar sinc * CDP Mittlstand program, not includd in rport analysis. Addd aftr publication, not includd in analysis.

8 08 What maks a global climat prformanc ladr? Th singl biggst risk that xists to th conomy today is how formr U.S. Trasury Scrtary Hnry Paulson has catgorizd climat chang. H blivs that th factors that narly brought down th U.S. financial sctor hav parallls with climat chang. Th global challng Economis globally hav broadly strngthnd but lvls of manmad grnhous gass (GHGs) in th atmosphr hav bn incrasing at rcord pac and ar xpctd to rach a 40 billion mtric ton high this yar. This suggsts that markt mchanisms and big businss hav so far faild to dcoupl conomic from missions growth. Howvr, it sms that a tipping point has bn rachd. In Sptmbr, mor than 100 of th world s political ladrs gathrd at th UN Scrtary Gnral s landmark Climat Summit, with many making public commitmnts on climat chang. China rvald gratr dtrmination for climat progrss, for th first tim announcing a goal to rduc its absolut carbon missions. Th corporat world is taking qually promising stps. Rsarch has rvald that solar and wind farms now offr viabl altrnativs to coal-powrd plants as nrgy sourcs.¹ Thr hav bn significant dvlopmnts in a global divstmnt movmnt to rduc dpndncy on non-rnwabl nrgy. Rockfllr Brothrs Fund, alongsid othr influntial invstors, has announcd th intntion to sll US$50 billion of fossil ful invstmnts, r-invsting th procds in clan nrgy systms. Idntifying th ladrs Th invstors that rqust companis disclos thir climat rlatd risks and opportunitis through CDP rprsnt US$92 trillion, a third of th world s invstd capital. This yar, 1,971 companis hav rspondd² to this call for critical climat chang data, thrby playing a vital rol in driving sustainabl conomis. This information has bn scord using CDP s rspctd mthodology, primarily by FirstCarbon Solutions, CDP s global scoring and sustainability businss procss outsourcing partnr. 187 of ths businsss which dmonstrat a suprior approach to climat chang hav rcivd an A grad for thir prformanc and a position on CDP s Climat Prformanc Ladrship Indx (CPLI). This is th first tim CDP has producd a truly global list of prformanc ladrs, rgardlss of markt capitalization. Qualitis of ladrship This dfinitiv lagu th A List prsnts th public companis that ar taking th most action to hlp driv th transformativ action at scal that w so urgntly nd. Furthr, ths corporations ar implmnting stratgis that bnfit thir bottom lin. Ths companis, such as Coca Cola HBC, which has savd US$20 million and rducd its missions by 30,000 Opportunitis and risks % of companis who idntify opportunitis 99% ladrs 87% CDP avrag Most commonly rportd opportunitis Numbr of tims rportd, and % of total opportunitis rportd 145 (12%) Changing consumr bhavior 123 (10%) Rputation 77 (6%) Ful/nrgy taxs and rgulation 1. Lvlizd cost of nrgy analysis Vrsion 8.0, Lazard, Sptmbr 2014 % of companis who idntify risks 96% ladrs 88% CDP avrag Most commonly rportd risks Numbr of tims rportd, and % of total risks rportd 118 (8%) Rputation 2. 1,971 company disclosurs to CDP s climat chang program wr analyzd for this rport to dtrmin th CPLI group. Companis that rspondd voluntarily or aftr th scoring dadlin hav not bn includd but can b viwd onlin at (7%) Chang in prcipitation xtrms and droughts 97 (6%) Changing consumr bhavior

9 09 mtric tons through product dsign, dmonstrat that a low carbon futur dos not man low profit. Hightnd awarnss of th businss implications of climat chang Th vast majority of CPLI companis ar abl to idntify financial and businss opportunitis through thir climat chang stratgis and actions. Industrial tchnology firm Abngoa savs US$911 million annually having divrsifid its nrgy supply by installing two solar powr plants. Samsung C&T Corporation has assssd that rsponding to consumr dmand with grn products can incras its profits from sals by at last 9% within th nxt svn yars. CPLI companis ar also mor awar of th rang of risks that climat chang prsnts to its oprations, hlping to driv fforts to rduc missions. Elctric utility company Ibrdrola has invstd US$3.8 billion in lctricity and nrgy monitoring and distribution systms to cut its missions by 50,000 mtric tons. Assssing its transportation logistics has nabld car manufacturr Gnral Motors to implmnt rout rdsigns, mod changs from road to rail, and othr masurs that hav rsultd in missions of 244,000 mtric tons a yar and cost of US$287 million. Mor invstmnt for biggr rductions Th CPLI is invsting mor proportionally than its non-lading prs in activitis to rduc missions, collctivly totalling US$23 billion. As a rsult thir initiativs ar mor ffctiv; thy also hav a highr intrnal rat of rturn (IRR). Improving nrgy fficincy is by far th most popular approach to rducing missions across all companis. On avrag, th CPLI s initiativs yild annual rductions of 9% pr company with an IRR for ach initiativ of 57%. Thos of thir non-lading prs, howvr, rsult in 6% and 50% rspctivly. A company s ovrall absolut missions can vary for a rang of rasons including mrgrs and acquisitions but th A List has collctivly rducd its absolut missions by 33 million mtric tons in th past rporting yar, with total missions standing at million mtric tons. Additionally, th CPLI is making significantly bttr progrss with its targts for absolut missions rductions than its non-lading prs. Targts of all companis ladrs and non-ladrs ar gnrally too short-trm, running to 2016/17 on avrag. CPLI projcts to rduc missions, howvr, typically span 12 yars, which dmonstrats a willingnss for som long-trm invsting. Policy is citd by ladrs as a risk and opportunity in almost qual masur it is likly that a lack of clar long trm policy is stalling corporat progrss toward ambitious long-trm targts. Ladrs invstmnts and Ladrs rprsnt: 9% of rspondnts 46% of invstmnt in missions rduction activitis 11% of from missions rduction activitis A strong stanc Taking stps to rduc climat disruption on a global scal is a clar quality of prformanc ladrship. Thr quartrs (78%) of th lading businsss on th A List ngag with policy makrs on climat chang, vrsus 49% of th rmaining pack. Companis such as AstraZnca, th British-Swdish pharmacutical giant, gos on stp furthr and promots lading industry practic through national and intrnational trad associations in addition to ky govrnmnt and intrnational agncy stakholdrs. It stats that, climat chang is not just an nvironmntal challng, but also on that affcts th halth and livlihood of millions of popl bcaus of th links to complx issus such as povrty, conomic dvlopmnt and population growth. 75% of th ladrs ar on track to mt thir missions rduction targts vs. 59% of thir non-lading prs.

10 10 Ralizing rturns Practicing strong govrnanc of how climat chang affcts thir businss is driving ths companis to undrstand bttr how thir oprations impact th nvironmntal challngs that today fac th world. In turn, ths companis ar taking action to minimiz thir contribution to a changing climat and to rduc thir rlianc on natural rsourcs. With such a robust approach to managing ths issus, it is prhaps no surpris that th CPLI gnrats suprior rturns for its sharholdrs than othr global indics and has Policy: Risk or opportunity? 94% of ladr companis rport policy as a risk 98% of ladr companis rport policy as an opportunity missions rducd by CPLI in th past yar: 33 Mt outprformd th Dow Jons Sustainability World Indx by 19.6% and th Bloombrg World Indx by 9.6% (s pag 14 for dtails). Gt mor from CDP data Th analysis prsntd in this rport is a brif summary of a subst of th data availabl through CDP. W ncourag all radrs of this rport to viw th full corporat rsponss individually from our wbsit. Enhancd and unlimitd accss to th data is availabl through th CDP analytics tool which maks bnchmarking and trnd analysis simpl via a sris of intractiv dashboards and xport functions. Diffrnt vrsions of th tool ar availabl for invstors and companis. Visit to find out mor. Total Scop 1 and Scop 2 missions by sctor Mt Financials Halthcar Tlcommunication srvics Information tchnology Enrgy Consumr discrtionary Consumr stapls Matrials Industrials Utilitis

11 2014 ladrship critria 11 Each yar, company rsponss ar analyzd and scord against two paralll scoring schms: prformanc and disclosur. This rport focuss solly on prformanc and includs only thos companis that ntr th Climat Prformanc Ladrship Indx (CPLI) and achiv th highst A band. Th prformanc scor asssss th lvl of action, as rportd by th company, on climat chang mitigation, adaptation and transparncy. Its intnt is to highlight positiv climat action as dmonstratd by a company s CDP rspons. A high prformanc scor signals that a company is masuring, vrifying and managing its carbon footprint, for xampl by stting and mting carbon rduction targts and implmnting programs to rduc missions in both its dirct oprations and supply chain. In addition to th prformanc ladrs CDP would lik to commnd all companis that achivd th prformanc bands of A and B this yar for th xcllnt work thy ar doing with rgards to climat chang. This group accounts for 32% of th total numbr of companis that had thir disclosurs to CDP s climat chang program scord. It is clar from rading ths rsponss that ths companis ar putting considrabl rsourc and ffort into mitigating climat risk and maximizing climat opportunitis. Whil thy do not qualify for climat prformanc ladrship as dfind by th CDP scoring mthodology in 2014, many of thm hav bn ladrs in prvious yars. Thy ar continuing on thir pathway of invsting in mission rductions, and driving this issu up through thir managmnt structur and out through thir valu chains. What ar th CPLI critria? To ntr th CPLI (Prformanc Band A), a company must: ^^Mak its rspons public and submit via CDP s Onlin Rspons Systm ^^Attain a prformanc scor gratr than 85 ^^Scor maximum prformanc points on qustion 12.1a (absolut missions prformanc) for GHG rductions du to mission rduction actions ovr th past yar (4% or abov in 2014) ^^Disclos gross global Scop 1 and Scop 2 figurs ^^Scor maximum prformanc points for vrification of Scop 1 and Scop 2 missions ^^Furthrmor, CDP rsrvs th right to xclud any company from th CPLI if thr is anything in its rspons or othr publicly availabl information that calls into qustion its suitability for inclusion. Not: Companis that achiv a prformanc scor high nough to warrant inclusion in th CPLI, but do not mt all of th othr CPLI rquirmnts ar classd as Prformanc Band A- but ar not includd in th CPLI. How is th CPLI usd by invstors? Good prformanc scors ar usd by invstors as a proxy of good climat chang managmnt or climat chang prformanc of companis. Invstors idntify and thn ngag with companis to ncourag thm to improv thir scor. Th Aiming for A initiativ which was initiatd by CCLA Invstmnt Managmnt is drivn by a coalition of UK asst ownrs and mutual fund managrs. Thy ar asking major UK-listd utilitis and xtractivs companis to aim for inclusion in th CPLI. This may involv filing supportiv sharholdr rsolutions for Gnral Mtings occurring aftr Sptmbr Invstors ar also using CDP scors for cration of financial products. For xampl, Ndbank in South Africa dvlopd th Ndbank Grn Indx. Disclosur scors ar usd for slcting stocks and prformanc scors for assigning wight. For furthr information on th CPLI and how scors ar dtrmind, plas visit guidanc.

12 12 Whr ar th prformanc ladrs? Rspondnts/Ladrs Unitd Kingdom 252/19 Finland 36/5 Swdn 48/6 Norway 30/3 Canada 97/4 Nthrlands 30/5 Irland 16/2 Dnmark 20/3 Blgium 11/3 Grmany 89/11 342/34 Spain 39/11 Portugal 12/2 Austria 14/2 Turky 26/2 Franc 84/10 Italy 45/4 Switzrland 64/5 South Africa 66/8 Rspondnt numbrs for crtain countris may diffr from rgional CDP rports du to submission dat of rspons for inclusion in analysis/scoring and diffrnc btwn company location and xchang/indx listings. This map includs data only from countris that producd climat prformanc ladrs. Mor than 4,500 companis from mor than 80 countris us CDP to manag and shar vital nvironmntal information.

13 Rsp 13 South Kora 86/14 Gratr China 88/1 Japan 216/24 In 2014 narly 2,000 businsss shard climat chang information with CDP and th invstors that rqustd it. Each of ths companis is commndd for rsponding to th call, rgardlss of its scor. Insights from CDP data ar usd by invstors and othr dcision makrs to hlp catalyz action to achiv sustainabl conomis. Almost half of th prformanc ladrs ar hadquartrd in Europ, with a furthr third locatd in or Japan. Mor than a quartr of th Spanish and Blgian companis that took part in CDP s climat chang program wr awardd an A for prformanc, proportionally giving Spain and Blgium th most ladrs. Portugal, th Nthrlands and South Kora hav also prformd wll in this rgard. India 46/5 Of thos corporations that faild to rspond, th thr largst in trms of markt capitalization ar Brkshir Hathaway, Amazon.com Inc and Comcast Corporation. Australia 76/5

14 14 Invstor analysis: Climat chang action and markt prformanc ECPI is basd in Milan and Luxmbourg and is ddicatd to constructing invstabl products around th concpt of sustainability. In ordr to gaug th influnc of ladrship in carbon managmnt on th markt prformanc of a company, ECPI compard th markt prformanc of th Climat Prformanc Ladrs Indx (CPLI) 1 against that of a broad markt indx, th Bloombrg World Indx, 2 and that of a global sustainability indx, th Dow Jons Sustainability World Indx (DJSWI), 3 for th priod sinc th launch of th CPLI in Octobr Th rsults support th adoption of quantitativ carbon data in dvloping invstmnt stratgis. Ovr this four yar priod th CPLI gaind 37.53%, outprforming th Bloombrg World Indx which gaind 34.24% and th DJSWI which gaind 31.38%. Looking mor closly at th gographic brakdown of ths indxs, 4 th CPLI contains fwr mrging markt companis than th Bloombrg World Indx and a gratr concntration of UK companis. Th CPLI also has a gratr concntration of US companis than th DJSWI. At an industry lvl, th CPLI is ovr-wight in financial and ICT companis vrsus th othr indxs as companis in ths sctors hav on avrag bn quickr to intgrat climat chang into thir cor businss stratgy and st and mt missions rduction targts. Convrsly, th CPLI is undr-wight in nrgy, basic matrials and industrials companis as companis in ths sctors hav on avrag found it toughr to improv thir carbon fficincy and prformanc. Th CPLI is thrfor a good tool to infr th prformanc of th world markt, whil protcting th portfolio against th physical, rgulatory and rputational risks associatd with carbon missions and promoting th rduction of missions at company lvl. In futur it might b intrsting to dvlop an indx with th sam industry wightings as th world markt and companis rankd according to thir CDP prformanc scor. CPLI financial prformanc Indx, Octobr 1, 2010=1,000. Prics calculatd in US$. CPLI 37.53% 1,400 Bloombrg World Indx 34.24% 1,200 Dow Jons Sustainability World Indx 31.38% 1, Oct 1 Spt Sourc: data in US$ from 1/10/2010 to 22/9/2014, sourc ECPI basd on data by Thomson Rutrs Datastram and Bloombrg.

15 15 Gographic brakdown Bloombrg World Indx as of Sptmbr 22, 2014 Dow Jons Sustainability World Indx as of August 31, 2014 CPLI as of Sptmbr 22, 2014 CPLI vs. Bloombrg World CPLI vs. DJ Sustainability World Unitd Stats 39.98% Unitd Stats 31.36% Unitd Stats 40.51% 0.53% 9.15% Unitd Kingdom 10.98% China 7.48% Japan 6.93% Unitd Kingdom 5.45% Franc 3.58% Othr 36.58% Switzrland 9.76% Grmany 7.67% Franc 7.20% Othr 33.04% Unitd Kingdom 10.84% Grmany 7.94% Japan 7.42% Spain 5.27% Othr 28.01% 5.39% 0.14% n.a. 0.27% 0.49% n.a. n.a. n.a. 8.57% 5.03% Sourcs: Bloombrg World Indx, Bloombrg as of 22/9/2014; DJSWI indx factsht as of 31/8/2014 CDP indx: ECPI basd on data from CDP and TR Datastram. Data as of 22/9/2014. Industry brakdown Bloombrg World Indx as of Sptmbr 22, 2014 DJ Sustainability World Indx as of August 31, 2014 CPLI as of Sptmbr 22, 2014 CPLI vs. Bloombrg CPLI vs. DJ Sustainability Financials 22.43% Financials 21.62% Information tchnology 27.93% 16.45% 15.45% Consumr discrtionary 12.22% Consumr goods 13.09% Financials 24.32% 1.89% 2.70% Industrials 11.79% Tchnology 12.48% Consumr stapls 15.69% 6.50% 2.60% Information tchnology 11.48% Industrials 12.10% Consumr discrtionary 10.05% 2.17% 3.16% Consumr stapls 9.19% Halth car 11.92% Industrials 8.10% 3.69% 4.00% Enrgy 9.03% Basic matrials 8.71% Tlcommunication srvics 4.86% 0.36% 2.91% Halth car 8.75% Oil and gas 8.61% Halth car 3.27% 5.76% 8.65% Matrials 6.91% Consumr srvics 6.89% Utilitis 3.09% 0.53% 0.46% Tlcommunication srvics 4.50% Utilitis 2.63% Matrials 1.68% 5.23% 6.93% Utilitis 3.62% Tlcommunications 1.95% Enrgy 1.00% 7.74% 7.71% n.a. 0.07% 1. Th Indx is built using th historical composition of th CPLI, as annually assssd by CDP according to its propritary mthodology. Th indx adopts a markt capitalization wighting systm. Th indx composition is updatd annually, in Octobr, to rflct th rsults of that yar s scoring assssmnt. 2. Th Bloombrg World Indx is a capitalization wightd indx of all quitis includd in th Bloombrg World Indx Sris. Equitis in th sris wr in th top 85% markt capitalization of thir rspctiv Bloombrg Classification Sctor at th tim of th rbalanc. Th indx sris is rbalancd smi- annually in Fbruary and August. 3. Th Dow Jons Sustainability World Indx is composd of global sustainability ladrs as idntifid by RobcoSAM through a corporat sustainability assssmnt. Th indx rprsnts th top 10% of th largst 2,500 companis in th S&P Global BMI basd on long-trm conomic, nvironmntal and social critria. Rviw frquncy: annually in Sptmbr. 4. It is worth mntioning that this comparison is influncd by th dimnsion of th indics and diffrnt standards adoptd for industry classification.

16 16 Consumr discrtionary Sctor analysis Ths lading companis ar acutly awar of both th risks and opportunitis associatd with th changing dmands and xpctations of th consumr markt and with th obligations that com from changs to product labling and product standards. Thy gnrally s mor opportunity to capitaliz on ths potntial changs as a way to diffrntiat thir products and to gain markt shar, and xpct thm to hav a mdium to high impact within th nxt thr yars. With rgard to Scop 3 missions this group of lading companis is making good progrss in rporting th most important and rlvant catgoris. Ths ladrs rport good lvls of ngagmnt on climat chang and missions with thir valu chain, primarily through thir supplirs, but also with customrs and othr partnrs. Nissan should b commndd for bing th only company in this group to st an absolut targt byond 2020, rporting a targt of 24% rduction across Scop 1, 2 and 3 by Consumr awarnss in nvironmntal issus, spcially in climat chang, is th most important componnt for LGE s long trm businss stratgy th rsulting stratgis and managrial procsss hav providd opportunitis for comptitiv advantag. LG Elctronics Emissions trnd and financial intnsity Top invstmnt aras Enrgy fficincy: procsss Enrgy ffincy: building fabric Low carbon nrgy installation Enrgy ffincy: building srvics Bhavioral chang Invstmnt rquird $449 M 149 M 116 M 102 M 80 M montary $239 M 116 M 11 M 13 M 80 M 20 M 0.8 Mt 0.5 Mt 0.03 Mt 0.07 Mt 0.2 Mt 0.08 Mt Data ar drawn from qustion 3.3b. Figurs rflct total rportd invstmnt and. Som companis do not provid quantitativ data for all disclosd projcts. Thus, any implid rlationship btwn invstmnt, montary, and rductions, as a sctor, may b limitd. For dpr analyss, rfr to company-spcific information. Emissions trnd* Auto componnts 2,305,828 Automobils 2014 S1+S2, t Johnson Controls 1,415,641 3,356,000 4,178,320 8,416,034 3,430,215 1,260, ,127 7,611,000 9,038,463 BMW AG Daimlr AG Fiat Gnral Motors Company Nissan Motor Co., Ltd. Rnault Tofaș Türk Otomobil Fabrikası A.Ș. Toyota Motor Corporation Volkswagn AG Hotls, rstaurants and lisur 429,809 Wyndham Worldwid Corporation Houshold durabls 1,263, ,026 LG Elctronics Skisui Chmical Co., Ltd. Intrnt and catalogu rtail 1,290 YOOX SpA Mdia 195, ,846 DIRECTV Rd Elsvir Group Spcialty rtail 356,374 H&M Hnns & Mauritz AB Txtils, apparl and luxury goods 123,388 Kring Financial intnsity * S1+S2 missions rportd to CDP Total of Scop 1 and Scop 2 missions rportd to CDP 2014 Financial intnsity: Mtric tons pr unit of rvnu (US$million) (scop 1&2 missions). US$ rvnu data sourcd from Bloombrg for 2013 financial yar. information not public (only availabl to CDP invstors) information not availabl

17 17 Bing th invntor of th automobil, w accpt our rsponsibility for its futur. Our Road to mission-fr mobility stratgy sts clar goals: Promotion of low-carbon products and srvics with stat-of-th-art intrnal combustion ngins, tailor-mad hybridisation and sparhading th dvlopmnt of local mission-fr propulsion tchnologis. W want to b bst in class with th missons of our products. As a commitmnt to th Europan Union climat targts cutting absolut missions by 20% from 1990 to 2020 w translatd th EU targt into a rduction targt for our own Europan plants. Thus, production missions pr vhicl will dcras by two-thirds. Our Dsign for Environmnt procss as wll as our fforts in lif-cycl assssmnt hlpd us bcom th world s first manufacturr to rciv an Environmntal Crtificat for th Mrcds-Bnz S-Class in W continu this holistic approach to mitigat climat impact from our own oprations whil taking into account upstram and downstram ffcts. Daimlr AG Sctor profil Daimlr AG

18 18 Top invstmnt aras Top invstmnt aras Enrgy fficincy: building srvics Enrgy ffincy: building fabric Enrgy fficincy: procsss Low carbon Enrgy nrgy installation fficincy: procsss Low carbon Low nrgy carbon purchas nrgy installation Consumr stapls Sctor analysis Similar to its prs in th discrtionary sctor, this group cits changing consumr bhavior as th most important short-trm risk and opportunity, noting that it will gain mor businss from an nhancd rputation, than it would los from a damagd rputation. Changs in wathr pattrns that would affct raw matrial crop yilds is citd as a significant longr-trm risk by th sctor, which is largly comprisd of food producrs and rtailrs. Almost all of th ladrs in this sctor ngag with thir supplirs on climat chang and missions, with half using this ngagmnt to idntify rduction opportunitis, whil a third us that data to scor supplirs through thir procurmnt procss. On th topic of corporat influnc, this group is mostly supportiv of climat lgislation and virtually vry company says th position of thir trad associations is consistnt with its own corporat position. A third of th companis hav an absolut rduction targt to 2020 but only on Kirin Holdings from Japan has an absolut targt byond this to 2050 st at 50% for its whol valu chain. Collctivly, this group rducd its absolut missions by 840,000 mtric tons in th last rporting yar. Enrgy fficincy: building srvics Enrgy ffincy: building fabric Invstmnt rquird $668 M Invstmnt rquird $668 M 358 M 358 M 151 M 151 M 104 M M montary $390 M montary $390 M 297 M 297 M 38 M M 12 M 40 M 1.4 Mt CO 1.4 Mt 0.5 Mt 0.5 Mt 0.5 Mt 0.5 Mt 0.4 Mt 0.4 Mt 0.06 Mt 0.04 Mt Data ar drawn from qustion 3.3b. Figurs rflct total rportd invstmnt and. 42 M 0.06 Mt Som Low companis carbon do not provid quantitativ data for all disclosd 12 Mprojcts. Thus, any implid nrgy rlationship purchas btwn invstmnt, montary, and CO 0.04 Mt ² rductions, as a sctor, may b limitd. For dpr analyss, rfr to company-spcific information. Data ar drawn from qustion 3.3b. Figurs rflct total rportd invstmnt and. Som companis do not provid quantitativ data for all disclosd projcts. Thus, any implid rlationship btwn invstmnt, montary, and rductions, as a sctor, may b limitd. For dpr analyss, rfr to company-spcific information. Food scurity is a ky drivr in longr trm businss dcisions... it drivs our aims to sourc mor of our privat labl products locally and is an xplicit valuation critria in our tchnology valuations on food wast w hav changd th sourcing pattrns of som frsh produc to account for changing wathr conditions. Pick n Pay Holdings Emissions trnd and financial intnsity Emissions trnd* 2014 S1+S2, t Emissions Bvrags trnd and financial intnsity Emissions trnd* 5,285, S1+S2, Anhusr t Busch InBv Bvrags 741,684 5,285, ,388 1,882, ,684 1,140, ,388 1,882,389 1,839,413 Coca-Cola HBC AG Anhusr Diago PlcBusch InBv Coca-Cola Hinkn NV HBC AG Diago Kirin Holdings Plc Co Ltd Hinkn SABMillr NV 1,140, ,253 Kirin Suntory Holdings Bvrag Co Ltd & Food Food 1,839,413 and stapls SABMillr rtailing 2,529, ,253 Suntory Aon Co., Bvrag Ltd. & Food Food 1,659,100 and stapls CVS rtailing Halth 2,529,095 1,362,815 1,659,100 1,082,818 1,362, ,518 1,082, ,725 21,435, ,518 Aon J Sainsbury Co., Ltd. Plc CVS Morrison Halth Suprmarkts J Pick Sainsbury n Pay Stors Plc Ltd Morrison Sona Suprmarkts Pick Wal-Mart n Pay Stors, Stors Inc. Ltd Food products 241,725 Sona 21,435,137 3,144,397 Wal-Mart Associatd Stors, British Inc. Foods Food 1,238,822 productsdanon 3,144,397 1,953,147 Associatd Unilvr plcbritish Foods Prsonal 1,238,822 products Danon 1,953, ,456 Unilvr L Oréal plc Prsonal 35,195 products Oriflam Cosmtics AB 192,456 77,150 Tobacco35, ,407 77,150 L Oréal Shisido Co., Ltd. Oriflam Cosmtics AB Shisido Philip Morris Co., Intrnational Ltd. Tobacco 828,407 Philip Morris Intrnational Financial intnsity Financial intnsity * S1+S2 missions rportd to CDP Total of Scop 1 and Scop 2 missions rportd to CDP 2014 Financial intnsity: Mtric tons pr unit of rvnu (US$million) (scop 1&2 missions). * S1+S2 US$ rvnu missions data rportd sourcd to from CDP Bloombrg for 2013 financial yar. Total information of Scop not 1 public and Scop (only availabl 2 missions to CDP rportd invstors) to CDP 2014 information not availabl Financial intnsity: Mtric tons pr unit of rvnu (US$million) (scop 1&2 missions). US$ rvnu data sourcd from Bloombrg for 2013 financial yar. information not public (only availabl to CDP invstors) information not availabl 27

19 Sctor profil CVS Halth 19 As a pharmacy innovation company, our goal is to rinvnt pharmacy and focus on solutions that bnfit millions of popl. This businss vision is fully intgratd into our corporat social rsponsibility (CSR) stratgy, Prscription for a Bttr World, which charts our CSR cours for th futur, focusing on thr prioritis: building halthir communitis; protcting th plant; and crating conomic opportunitis. Our approach to CSR tis dirctly to our purpos: hlping popl on thir path to bttr halth, which w bliv is intrinsically linkd to th sustainability of our plant. At CVS Halth, w hav mad protcting th plant a stratgic priority and ar working to rduc our rsourc us and mbd sustainability into our products and supply chain. In 2010, w st a 2018 goal to rduc our carbon intnsity by 15 prcnt pr squar foot of rtail spac and w continu to mak significant progrss and ar tracking positivly toward that goal. CVS Halth

20 20 Enrgy Sctor analysis This sctor has vry fw companis that ar abl to mt th ladrship critria undr CDP s currnt scoring mthodology. Mor information about how CDP is working with th oil and gas industry to dvlop a sctor-spcific approach is providd on th nxt pag. From th fiv nrgy companis that hav achivd an A band and a position on th CPLI, th biggst risks rportd wr around rgulation, such as cap and trad schms, air pollution limits and carbon taxs. All of ths risks ar xpctd to impact within thr yars. Tropical cyclons ar rportd as th biggst short-trm physical risk du to th costly damag that can b inflictd on fixd assts, which ar oftn locatd in xposd aras. Spctra Enrgy s Entrpris Risk Managmnt (ERM) procss addrsss ky risks for th corporation. Matrial risks posd by climat chang ar assssd and incorporatd into th ERM procss. Ths includ financial and stratgic risks A company-wid businss dvlopmnt procss is usd to valuat businss opportunitis including thos drivn by climat chang such as dmand growth du to carbon prics and rgulatory framworks. Spctra Enrgy Top invstmnt aras Invstmnt rquird $869 M montary $450 M 1.8 Mt Top invstmnt aras Fugitiv missions rductions Fugitiv missions rductions Enrgy ffincy: procsss Procss missions rductions Invstmnt rquird $869 M 750 M 750 M montary 60 M $450 M 60 M 376 M 376 M 1.8 Mt 0.7 Mt 0.7 Mt 0.5 Mt 0.5 Mt 0.4 Mt Low carbon 53 M nrgy installation Enrgy ffincy: 33 M Low procsss carbon 0.2 Mt 0.4 Mt nrgy purchas 31 M Procss missions Data rductions ar drawn from qustion 3.3b. Figurs rflct total rportd invstmnt and. Som companis do not provid quantitativ data for all disclosd projcts. Thus, any Low carbon 53 M implid rlationship btwn invstmnt, montary, and CO nrgy installation ² rductions, as a sctor, may b limitd. For dpr analyss, rfr to company-spcific information. 33 M Low carbon 0.2 Mt nrgy purchas 31 M Emissions trnd and financial intnsity Emissions trnd* 2014 S1+S2, t Enrgy quipmnt and srvics 509,606 Solstad Offshor Oil, Emissions gas and trnd consumabl and financial fulsintnsity Emissions 6,036,218 Essar Oil trnd* 2014 S1+S2, t 7,293,142 S-Oil Corporation Enrgy quipmnt and srvics 9,211,186 Spctra Enrgy Corp 509,606 Solstad Offshor Financial intnsity Financial n/a intnsity 256 1, Oil, gas and consumabl fuls 6,036,218 7,293,142 Essar Oil S-Oil Corporation n/a 256 * S1+S2 missions rportd to CDP ,211,186 Spctra Enrgy Corp 1,451 Total of Scop 1 and Scop 2 missions rportd to CDP 2014 Financial intnsity: Mtric tons pr unit of rvnu (US$million) (scop 1&2 missions). US$ rvnu data sourcd from Bloombrg for 2013 financial yar. US$ rvnu figur unavailabl * S1+S2 missions rportd to CDP Total of Scop 1 and Scop 2 missions rportd to CDP 2014 Financial intnsity: Mtric tons pr unit of rvnu (US$million) (scop 1&2 missions). US$ rvnu data sourcd from Bloombrg for 2013 financial yar. US$ rvnu figur unavailabl 856 Data ar drawn from qustion 3.3b. Figurs rflct total rportd invstmnt and. Som companis do not provid quantitativ data for all disclosd projcts. Thus, any implid rlationship btwn invstmnt, montary, and rductions, as a sctor, may b limitd. For dpr analyss, rfr to company-spcific information.

21 Enrgy sctor dvlopmnt 21 CDP is incrasing its focus on a numbr of ky sctors, prioritizd for thir dpndnc and impact on climat chang, watr and dforstation. This will hlp to driv mor targtd and ffctiv action by companis to rduc grnhous gas missions, safguard watr rsourcs, and prvnt th dstruction of forsts. This mov towards gratr sctor focus is a rsult of consultation with stakholdrs including invstors and rsponding companis. CDP will b implmnting this approach gradually ovr th nxt thr yars, initially through th focus on our climat chang program, and thn xpanding this work to covr additional nvironmntal aras. In 2015 th sctor approach will b pilotd on th oil and gas¹ sctor, which has bn prioritizd for its rlvanc to climat chang. Th aim is to produc data that is mor maningful to invstors, rduc rporting rquirmnts for ky sctors, incntiviz transparncy and catalyz sctor-spcific action. 1. For O&G, CDP is initially focusing on th following sub-industris undr th Global Industry Classification Standard: Intgratd Oil & Gas ( ); Oil & Gas Exploration & Production ( ); and Oil & Gas Rfining & Markting ( ). Th sctor approach involvs: ^^ Consulting dirctly with invstors and industry rprsntativs, to assss th rlvanc of xisting CDP qustions that oil and gas companis hav bn rqustd to disclos to dat, both from CDP s climat chang qustionnair, as wll as from th supplmntary oil and gas sctor modul; ^^ Adjusting climat chang rporting rquirmnts for oil and gas companis accordingly to rflct th most rlvant aras for th sctor and its invstors; ^^ Dvloping sctor spcific guidanc to driv standardization and support rporting companis; ^^ Dvloping a sctor spcific scoring mthodology to assss th lvl of dtail and comprhnsivnss of oil and gas companis disclosurs and thir lvl of action takn on climat chang; and ^^ In th longr trm, introducing changs to CDP s Onlin Rspons Systm (ORS) to provid mor intuitiv mans to rport sctor-spcific information. Bnfits includ: ^^ Collcting th most rlvant and usabl information for invstors, dcision makrs and othr stakholdrs; ^^ Focusing companis on disclosing and taking action on ky issus idntifid for thir rlvanc to th nvironmnt and invstors; and ^^ Providing a mor maningful assssmnt of companis progrss on climat chang. CDP is working closly with industry and invstor rprsntativs to dvlop a sctor-spcific climat chang qustionnair for oil and gas companis ahad of th 2015 CDP disclosur priod. CDP will consult on proposd changs to th climat chang qustions prtaining to th oil and gas sctor in Octobr 2014.

22 22 Top invstmnt aras Top invstmnt aras Enrgy fficincy: building srvics Financials Sctor analysis This sctor has th scond highst numbr of prformanc ladrs with 37 achiving th A band. Lik many othr sctors thy cit rputation and changing consumr bhavior as on of th most significant opportunitis in th nxt thr yars for attracting and rtaining both staff and customrs. Thr quartrs rport mploy ngagmnt and bhavioral chang as a ky drivr to achiving rductions with a payback of lss than on yar whn combind with having a ddicatd budgt for nrgy fficincy that improvs thir building prformanc. This sctor accounts for 30% of all CPLI rfrncs to mploy ngagmnt as a ky drivr of rductions. Many rportd short trm risks from uncrtainty around nw rgulation, as wll as th potntial impact of product fficincy rgulation, incoming cap and trad schms, ful/ nrgy rgulation and carbon taxs. With rgard to Scop 3 rporting, half th group rports that th missions associatd with thir invstmnts ar rlvant, but not yt calculatd. This highlights a focus ara for th financial sctor if it is to fully undrstand its dpr impact on climat chang. Six of th companis hav st absolut rduction targts to Goldman Sachs gos th furthst with a 100% targt to b carbon nutral in all thir offics and data cntrs. Collctivly, this group rducd its absolut missions by 340,000 mtric tons in th last rporting yar. Enrgy fficincy: building srvics Low carbon nrgy installation Enrgy fficincy: building fabric Invstmnt rquird $143 M Invstmnt rquird $143 M 87 M 87 M 29 M montary $55 M montary $55 M 23 M 23 M 5 M 15 5 M 0.17 Mt 0.17 Mt 0.07 Mt 0.07 Mt 0.01 Mt 0.01 Mt 0.08 Mt Low Procss carbon missions 15 M nrgy rductions installation 18 M 29 M 11 M 0.08 Mt Enrgy Transportation: fficincy: 6 M building us fabric 0.01 Mt 4 M Procss missions Data ar drawn from qustion 3.3b. Figurs rductions 18 rflct M total rportd invstmnt and. Som companis do not provid quantitativ data for all disclosd 11 Mprojcts. Thus, any implid rlationship btwn invstmnt, montary, and CO Transportation: 6 M ² rductions, as a sctor, may b limitd. For dpr analyss, rfr to company-spcific information. us 0.01 Mt 4 M Data ar drawn from qustion 3.3b. Figurs rflct total rportd invstmnt and. Som companis do not provid quantitativ data for all disclosd projcts. Thus, any implid rlationship btwn invstmnt, montary, and rductions, as a sctor, may b limitd. For dpr analyss, rfr to company-spcific information. Emissions trnd and financial intnsity Emissions trnd* 2014 S1+S2, t Capital markts Financial intnsity 216,396 BNY Mllon Emissions trnd and financial intnsity 14 Emissions 260, S1+S2, Goldman tco Sachs Group Inc. Financial 6 trnd* ² intnsity 2,223 Hndrson Group Capital markts 2 162, ,396 UBS BNY Mllon 4 14 Commrcial banks 260,209 Goldman Sachs Group Inc. 6 25,030 2,223 Banco Espirito Santo Hndrson Group , ,813 Banco Santandr UBS 4 4 4,271 Bankia Commrcial banks ,494 25,030 CaixaBank Banco Espirito Santo , ,988 Comrica Incorporatd Banco Santandr ,344 4,271 Commrzbank AG Bankia ,498 34,494 Commonwalth Bank of Australia CaixaBank ,376 75,839 HSBC Holdings plc Comrica Incorporatd ,737 51,344 Intsa Sanpaolo S.p.A Commrzbank AG , ,498 National Australia Bank Commonwalth Bank of Australia ,376 Raiffisn Bank Intrnational AG HSBC Holdings plc , ,737 Shinhan Financial Group Intsa Sanpaolo S.p.A , ,388 Standard Bank Group National Australia Bank , Standard Chartrd Raiffisn Bank Intrnational AG , ,663 TD Bank Group Shinhan Financial Group ,376, ,995 Wlls Fargo & Company Standard Bank Group Divrsifid financial srvics 250,605 Standard Chartrd 10 1,448, ,381 Bank of Amrica TD Bank Group ,688 1,376,340 Firstrand Limitd Wlls Fargo & Company ,483 ING Group Divrsifid financial srvics 1 Insuranc 1,448,398 Bank of Amrica 14 78, ,688 Aviva Firstrand Limitd ,267 88,483 Gnrali Dutschland Holding AG ING Group ,822 Insuranc Insuranc Australia Group 5 60,883 78,629 Principal Financial Group, Inc. Aviva ,105 31,267 Samsung Fir & Marin Insuranc Gnrali Dutschland Holding AG ,124 44,822 Sanlam Insuranc Australia Group ,364 60,883 Th Hartford Financial Srvics Group, Inc. Principal Financial Group, Inc ,984 33,105 Zurich Insuranc Group Samsung Fir & Marin Insuranc 2 2 Ral stat invstmnt trusts 39,124 Sanlam 4 111,240 74,364 Dxus Proprty Group Th Hartford Financial Srvics Group, Inc , ,984 Host Hotls & Rsorts, Inc. Zurich Insuranc Group ,168 Invsta Offic Fund Ral stat invstmnt trusts , ,240 Rdfin Proprtis Ltd Dxus Proprty Group , ,056 Simon Proprty Group Host Hotls & Rsorts, Inc Ral stat managmnt and dvlopmnt 35,168 Invsta Offic Fund ,417 44,844 Daiwa Hous Industry Co., Ltd. Rdfin Proprtis Ltd ,074 Simon Proprty Group 93 * S1+S2 missions rportd to CDP Ral stat managmnt and dvlopmnt Total of Scop 1 and Scop 2 missions rportd to CDP 2014 Financial intnsity: 351,417 Mtric Daiwa tons CO Hous ² pr unit Industry of rvnu Co., (US$million) Ltd. (scop 1&2 missions). 14 US$ rvnu data sourcd from Bloombrg for 2013 financial yar. information not public (only availabl to CDP invstors) * information S1+S2 missions not availabl rportd to CDP Total of Scop 1 and Scop 2 missions rportd to CDP 2014 Financial intnsity: Mtric tons pr unit of rvnu (US$million) (scop 1&2 missions). US$ rvnu data sourcd from Bloombrg for 2013 financial yar. information not public (only availabl to CDP invstors) information not availabl