CDP Climate Change Report 2015

Transcription

1 CDP Climat Chang Rport 2015 Nordic natural capital dition Writtn on bhalf 822 of invstors with 86 trillion in assts CDP Rport Octobr

2 Contnts 05 Forword from CDP Excutiv Chairman Th work of CDP is crucial to th succss of global grn businss in th 21st cntury. CDP is harnssing th powr of information and invstor activism to ncourag a mor ffctiv corporat rspons to climat chang. Ban Ki-Moon, UN Scrtary-Gnral 07 Th EU non-financial rporting dirctiv 08 Mainstraming low carbon invsting 12 Global ovrviw 16 Nordic corporat disclosur ovrviw ladrship critria Nordic A List Nordic CDLI 22 Natural capital disclosur 24 Company commitmnts to action ahad of COP21 26 List of Nordic companis disclosing climat data in 2015 Important Notic Th contnts of this rport may b usd by anyon providing acknowldgmnt is givn to CDP Europ (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 hav prpard th data and analysis in this rport basd on rsponss to th CDP 2015 information rqust. No rprsntation or warranty (xprss or implid) is givn by CDP as to th accuracy or compltnss of th information and opinions containd in this rport. You should not act upon th information containd in Covr imag: City of Stockholm this publication without obtaining spcific profssional advic. To th xtnt prmittd by law, CDP 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. Stockholm is on of th world s lading citis All information and viws xprssd hrin by CDP is basd on thir judgmnt at th tim of this rport and ar subjct to chang without notic du to conomic, on sustainability. With a 100% rnwabl 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 lctricity targt and a plan to bcom ndorsmnt of thm. compltly fossil ful-fr by 2040, thy ar aiming high. Th city dvlopd its roadmap CDP, thir affiliatd mmbr firms or companis, or thir rspctiv sharholdrs, mmbrs, partnrs, principals, dirctors, officrs and/or mploys, may hav a to achiv fossil ful-fr status by 2050, 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 following a broad public consultation, and has 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. sinc brought forward th targt to Mor CDP Europ and CDP rfr to CDP ggmbh, Rgistrd Charity no. HRB B Local court of Charlottnburg, Grmany. Excutiv Dirctors: Simon Barkr, information on othr Nordic citis at Su Howlls, Stvn Tbb 2 infographic-narrativ.aspx 2015 CDP Europ. All rights rsrvd. 3

3 Paul Dickinson Excutiv Chairman CDP Du to th incrasd invstor usag of climat rlatd data in numrous diffrnt invstmnt stratgis th nd for highr quality and mor complt data is biggr than vr. Thrfor w ncourag companis to rport to CDP as it is th main hub globally to collct this data for all th invstors in th world. John Howchin, Ethical Council of th Swdish National Pnsion funds Dcarbonizing th global conomy is an ambitious undrtaking, vn ovr many dcads corporat ladrs undrstand th siz of th challng, and th importanc of mting it. W ar on th thrshold of an conomic rvolution that will transform how w think about productiv activity and growth. CDP was st up, almost 15 yars ago, to srv invstors. A small group of 35 institutions, managing US$4 trillion in assts, wantd to s companis rporting rliabl, comprhnsiv information about climat chang risks and opportunitis. Sinc that tim, our signatory bas has grown normously, to 822 invstors with 86 trillion in assts. And th corporat world has rspondd to thir rqusts for this information. Mor than 5,500 companis now disclos to CDP, gnrating th world s largst databas of corporat nvironmntal information, covring climat, watr and forst-risk commoditis. Our invstor signatoris ar not intrstd in this information out of mr curiosity. Thy bliv, as w do, that this vital data offrs insights into how rporting companis ar confronting th cntral sustainability challngs of th 21st cntury. And th data, and this rport, shows that companis hav mad considrabl progrss in rcnt yars whthr by adopting an intrnal carbon pric, invsting in low-carbon nrgy, or by stting long-trm missions rduction targts in lin with climat scinc. For our signatory invstors, insight lads to action. Thy us CDP data to hlp guid invstmnt dcisions to protct thmslvs against th risks associatd with climat chang and rsourc scarcity, and profit from thos companis that ar wll positiond to succd in a low-carbon conomy. This yar, in particular, momntum among invstors has grown strongly. Sharholdrs hav com togthr in ovrwhlming support for climat rsolutions at lading nrgy companis BP, Shll and Statoil. Thr is vr incrasing dirct ngagmnt by sharholdrs to stop th boards of companis from using sharholdrs funds to lobby against govrnmnt action to tax and rgulat grnhous gasss. This activity is vital to protct th public. Many invstors ar critically assssing th climat risk in thir portfolios, lading to slct divstmnt from mor carbon-intnsiv nrgy stocks or, in som cass, from th ntir fossil ful complx. Lading institutions hav joind with us in th Portfolio Dcarbonization Coalition, committing to cut th carbon intnsity of thir invstmnts. This momntum coms at a crucial tim, as w look forward to COP21, th pivotal UN climat talks, in Paris in Dcmbr. A succssful Paris agrmnt would st th world on cours for a goal of nt zro missions by th nd of this cntury, providing businss and invstors with a clar, long-trm trajctory against which to plan stratgy and invstmnt. Without doubt, dcarbonizing th global conomy is an ambitious undrtaking, vn ovr many dcads. But th actions that companis ar alrady taking, and rporting to CDP, show that corporat ladrs undrstand th siz of th challng, and th importanc of mting it. W ar on th thrshold of an conomic rvolution that will transform how w think about productiv activity and growth. W ar bginning to dcoupl nrgy us and grnhous gas missions from GDP, through a procss of dmatrialization whr consumption migrats from physical goods to lctronic products and srvics. This will crat nw assts, multi-billion dollar companis with a fraction of th physical footprint of thir prdcssors. Similarly, thr is a growing ralization that work is no longr a plac, but incrasingly an activity that can tak plac anywhr. And it no longr rlis on th physical, carbon-intnsiv infrastructur w onc built to support it. In th 19th cntury w built railway lins across th glob to transport popl and goods. Now w nd to crat a nw form of transportation, in th form of broadband. Invstmnt in fixd and mobil broadband will crat advancd ntworks upon which th communications-drivn conomy of th 21st cntury can b built an conomy whr opportunity is not limitd by tim or gography, and whr thr ar no limits to growth. An conomic rvolution of this scal will crat losrs as wll as winnrs. Schumptr s crativ dstruction, applid to th climat challng, is st to transform th global conomy. It is only through th provision of timly, accurat information, such as that collctd by CDP, that invstors will b abl to proprly undrstand th procsss undrway. Our work has just bgun. 4 5

4 Updat: Th EU Non-Financial Rporting Dirctiv All companis should b rporting to CDP. Hr you hav an xampl of how public policy and intrnational dialogu bgins to driv markts, and how markts nd information. Achim Stinr, Excutiv Dirctor, UN Environmnt Programm (UNEP) Consistncy in th approachs to th NFR Dirctiv implmntation across th EU Mmbr Stats is crucial. Ar w on track? On Sptmbr 29th 2014, th EU Council approvd th Dirctiv on disclosur of non-financial and divrsity information by crtain larg corporations of public intrst with at last 500 mploys. Th dirctiv has to b nforcd by 2017 undr th EU Accounting Dirctiv and is currntly undrgoing th implmntation procss in th EU countris. Th Mmbr Stats do hav som flxibility on crtain aspcts,.g. how to spcify th Dirctiv s txt, whr th information nds to b rportd, how th data should b vrifid and which companis should b rquird to rport. Mmbr Stats ar currntly implmnting th nvironmntal rporting componnt of th Dirctiv quit diffrntly, which could lad to a patchwork of fragmntd and incompatibl national rporting rquirmnts. At th sam tim institutional invstors dmands for globally comparabl, vrifid corporat nvironmntal data throughout companis whol supply chain hav bcom vn clarr and mor urgnt ovr rcnt months. CDP s ky principls rgarding NFR Consistncy in th approachs to th NFR Dirctiv implmntation across th EU Mmbr Stats is crucial. Disclosurs mad by companis will only b usful to sharholdrs if thy can b compard to disclosurs mad by pr companis, vn if thy happn to b listd in anothr EU country. Nw rgulatory rquirmnts should b in lin with xisting bst practic in corporat disclosur. To avoid rporting only for th sak of rporting, it is important to promot th consistncy of rportd information for invstors and to rduc th rporting burdn for companis. Th primary purpos of annual rports by listd companis is to inform sharholdrs and influnc thir bhavior. Thrfor rportd information should answr its customr s nds and should allow invstors to compar diffrnt companis, and should b an accurat rprsntation of th risks and opportunitis facing companis. Information rportd to sharholdrs should b prsntd alongsid assurd financial information and should b possibl for a third party to assur. Nonfinancial information should b rportd with th sam dgr of car and rigor as financial information and should b prsntd alongsid it in th sam rport to incras visibility and usag of such information for dcision making procsss. CDP s position CDP s long-trm ndorsmnt by mor than 800 institutional invstors with ovr 86 trillion of assts undr managmnt has d-facto introducd a standard for rporting corporat nvironmntal information. Som 5,500 companis worldwid (of which around 1,800 alon ar in Europ) alrady apply this rporting standard, cumulativly rprsnting ovr half of th world s markt capitalization. Institutional invstors us non-financial CDP data in thir daily dcision making via various information channls such as Bloombrg trminals, CSR rports, annual financial statmnts, ESG ratings, as wll as dirctly through CDP. CDP data is also usd to driv chang through corporat supply chains, and to inform nvironmntal policy that rlats to businss activity. How CDP can hlp Via th CDP rporting platform, companis alrady rport information to invstors that fulfils thir rquirmnts as rgards nvironmntal rporting. In addition to this, CDP has promotd th dvlopmnt of standards for mainstram non-financial rporting through its support of th Climat Disclosur Standards Board (CDSB), in coalition with svn othr ky nvironmntal NGOs (CERES, Th Climat Group, Th Climat Rgistry, IETA, WBCSD, WEF, WRI). CDSB s rporting framwork is a uniqu tool, which would nabl companis to us data from thir CDP rspons to comply with th nw EU accounting dirctiv as rgards nvironmntal rporting. Th CDSB rporting framwork also provids th basis on which th social and govrnanc rporting rquirmnts could b built. How your company can gt involvd In ordr to mak th nw lgislation maningful, as wll as simpl to implmnt by companis, w ncourag you to advocat your national govrnmnts dirctly and through your trad associations. A pragmatic EU wid approach to non-financial rporting is th optimal solution for businss and invstors. It should build on availabl and stablishd rporting framworks, such as CDSB. CDP and CDSB ar hr to support you in that ffort. Our staff ar availabl to answr any qustions and provid furthr information. Stvn Tbb Managing Dirctor CDP Europ 6 7

5 Low carbon invsting hits mainstram Cas study: KLP I think thr ar grat bnfits to invstmnt managrs who ar abl to intgrat nvironmntal data into thir modls. Thy ar th ladrs in finding a valu-drivr within an industry and modling it whn th rst of th markt can t. That givs you a comptitiv advantag. Gorg Srafim Harvard Businss School Capital markts ar waking up to climat-conscious invsting. Mainstram Europan invstors ar finding ways to lowr th carbon contnt of thir portfolios, without sacrificing rturns. Th largst asst managrs on Wall Strt now offr financial products to addrss carbon opportunitis and risks. And mor activist funds from Swdn to Australia ar ngaging with th havist mittrs, urging thm to lowr thir grnhous gas missions. CDP ld this shift, harnssing th powr of invstors now rprsnting on-third of th world s invstmnt. In 2000, whn CDP first askd invstors to sign its disclosur rqust to companis, most fund dirctors wr indiffrnt to climat chang issus. Sinc thn, CDP has won th support of financial giants including AIG, Bank of Amrica Mrrill Lynch, Barclays, BlackRock, Crdit Suiss, Dutsch Bank, HSBC, ING, Itau, J.P. Morgan Chas, Macquari, Nomura, Santandr, and Wlls Fargo. Th fild would not b whr it is today without CDP, said Curtis Ravnl, dirctor of sustainability for Bloombrg, whos trminals display CDP data, scoring and rankings that form th basis for nw indx-basd funds. Thy mobilizd th invstmnt community to rcogniz climat chang and to driv disclosur from companis. Whil th US has long laggd Europ in invstor action on climat chang, many Wall Strt stalwarts ar now focusing on it. Ovr th last two yars, ESG has bcom mor cntral to our clints, said Hugh Lawson, Goldman Sachs had of ESG invsting. Climat chang is clarly on popl s minds. Th invstmnt community is building products and tools to rduc carbon intnsity in portfolios, and shifting invstmnt to nw low carbon tchnologis and opportunitis. Dvloping nw stratgis and products rquirs solid information, and CDP gathrs and analyzs th nvironmntal impact of mor than 5,500 companis rprsnting 55%* of th world s markt capitalization. Qualitativ answrs to CDP s climat chang qustionnair offr intgratd information for activ invstors ngaging companis. Invstmnt managr Rockfllr & Co. ss in CDP disclosurs how companis ar daling with watr and missions challngs, and th transparncy of thir supply chain. W lik to put th (financial) mtrics in contxt, said Farha-Joyc Haboucha, Rockfllr s dirctor of Sustainability & Impact Invsting. All thos nitty-gritty dtails hlp us talk to managmnt. W can show on company s dtails to anothr, and say: You can do bttr on this. Companis will now hav to prov thy mt strict ESG standards to b includd in th portfolio of ABP, on of th world s biggst pnsion funds, with 350bn in assts and 2.8 million participants. Th Dutch pnsion fund xpcts to shift 30bn of its 90bn in quitis to cut th carbon missions of companis within its portfolio by 25% ovr th nxt fiv yars. Th nw stratgy must not hav an impact on th rturn on invstmnt, th fund s chairwoman Corin Wortmann said. Whthr activ or passiv, invstors actions ar backd by rsarch that shows that good disclosur is a proxy for good managmnt globally and that bst-in-class climat prformrs may outprform thir prs. It is mor fasibl to incorporat climat chang into invstmnt dcisions bcaus th data availability and quality has incrasd in th last 10 yars du to groups lik CDP, said Gorg Srafim at Harvard Businss School. Globally, $21.4 trillion was invstd in funds with ESG mandats in 2014, up 61% in two yars, according to th Global Sustainabl Invstmnt Allianc. In Europ, it is mor than half of institutionally managd assts. Invstors taking a long-trm viw ar crucial to avoiding th tragdy of th horizon, according to Mark Carny, Chairman of th Financial Stability Board and Govrnor of th Bank of England. In a rcnt spch to Lloyd s of London, Carny calld for bttr disclosur worldwid, citing CDP as a modl, to mak th global conomy mor rsilint. H said clar prics on carbon, anothr focus of CDP, and strss-tsting would buttrss this. As mainstram invstors tak a longr viw, thy ar asking companis to futur-proof thir businss to tak bttr account of nvironmntal risks and opportunitis to stabiliz, maximiz and grow sharholdr rturn. Divst, invst, ngag and rport KLP s carbon stratgy is thrfold. First, w divst from companis that obtain 50% or mor of thir rvnus from coal-basd activitis, including coal powr gnration and coal mining. Th list of xcludd companis is publicly availabl on our wbsit, along with th rational for xclusion. Scondly, w ngag with th most CO 2 -intnsiv companis to ncourag missions rductions. KLP has bn th Norwgian partnr for CDP sinc W now work closly with CDP also on spcific multi-invstor ngagmnts cntrd on th CDP quartrly invstor-focusd sctor rsarch. Thirdly, KLP has committd on billion Norwgian kronr to targtd impact invsting to produc nw rnwabl nrgy capacity in dvloping countris, whr coal is oftn th altrnativ ful sourc. Ths invstmnts ar KLP s most dirct contribution to nsuring w rach th two-dgr scnario. On top of this w masur and rport our carbon footprint, crating awarnss on how KLP and invst companis fforts of missions rduction contribut. About KLP Kommunal Landspnsjonskass (KLP) is Norway s largst pnsion fund managing public mploys pnsions as wll as dlivring saf and comptitiv financial and insuranc srvics to th public sctor. Th group has total assts of NOK 513 billion invstd globally in quitis, bonds, infrastructur and proprty. KLP has bn a Norway partnr to CDP sinc *sourcd from Bloombrg 8 9 On of KLP s impact invstmnt projcts is th Drunbrg plant, Situatd in th Eastrn Cap in South Africa. Imag courtsy of th Scatc Solar ASA.

6 Nordic invstors in th forfront of ncouraging corporat action on missions CDP Invstor signatoris and mmbrs Collaborativ invstor action for gratr transparncy on th Nordic markt To assss our invstmnt portfolios w ar dpndnt on rliabl, comparabl data from th companis in which w invst. W ncourag all companis in our invstmnt portfolios to provid th rqustd information to CDP. In April 2015, fourtn major Nordic invstors took mor dirct action to ncourag nvironmntal transparncy from th companis in thir holdings. Ths invstors askd companis to bgin work on climat rporting to provid gratr insight into thir managmnt of risks and opportunitis from climat chang. Th invstors dirctly contactd 73 companis in th Nordic rgion. Most of ths companis had consistntly dclind to provid information to invstors through th CDP platform in prvious yars. A fw wr rciving th rqust for information for th first tim. Th rsults of this collaborativ ngagmnt wr vry positiv, as 19% of th targtd companis vntually providd information to invstors through CDP in For a furthr 24% of th companis, a positiv dialogu was stablishd with strong vidnc that ths companis wr bginning th data collction procss for futur rporting. A partial rspons is always prfrabl to no rspons On of th bnfits of rporting through CDP is that by rsponding to a singl qustionnair a company can satisfy hundrds of invstors. Thrfor th sam st CDP Nordic invstor signatoris of qustions is prsntd to all organizations. Companis ar at diffrnt stags of rporting maturity and partial rsponss ar prfrrd to no rspons. Th lttr was signd by th First, Scond, Third, Fourth and Svnth Swdish National Pnsion Funds, KLP, Folktrygdfondt, Ilmarinn, Storbrand, Norda Asst Managmnt, Länsförsäkringar, PKA, KPA Pnsion and th Church of Swdn A 1. Invstor signatoris by location 2. Invstor signatoris by typ CDP invstor initiativs backd in 2015 by 822 institutional invstors rprsnting in xcss of 86 trillion in assts giv invstors accss to a global sourc of yar-on-yar information that supports longtrm objctiv analysis. CDP Nordic invstor signatoris Norda Invstmnt Managmnt AMF Pnsion Norgs Bank Invstmnt Managmnt 78 ATP Group Nykrdit Assts undr managmnt Cultura Bank Öhman Dansk Bank Group OP Fund Managmnt Company Ltd US$trillion 71 DIP Opplysningsvsnts fond (Th Norwgian Church Endowmnt) DNB ASA 64 East Capital AB Pnsion Dnmark Eika Kapitalforvaltning AS Pnsion Fund for Danish Lawyrs and Economists Ekobankn mdlmsbank (cooprativ bank) PFA Pnsion Elo Mutual Pnsion Insuranc Company PKA Q Asst Managmnt Ltd Pohjola Asst Managmnt Ltd Erik Pnsr Fondkommission Sampnsion KP Livsforsikring A/S Evli Bank Plc SEB AB Asst Managrs 41 FIM Asst Managmnt Ltd Scond Swdish National Pnsion Fund (AP2) = 44% First Swdish National Pnsion Fund (AP1) Sligson & Co Fund Managmnt Plc Asst Ownrs Folktrygdfondt Svnth Swdish National Pnsion Fund (AP7) = 30% 31 Folksam Sixth Swdish National Pnsion Fund (AP6) Banks Fourth Swdish National Pnsion Fund, (AP4) Skandia = 19% Gjnsidig Forsikring ASA Storbrand ASA Insuranc Handlsbankn Svnska kyrkan - 37 = 5% 21 Ilmarinn Mutual Pnsion Insuranc Company Svnska kyrkans pnsionskassa Othrs Kva Swdbank AB - 19 = 2% KLP Swdish Pnsions Agncy KPA Pnsion Th Cntral Church Fund of Finland 10 Landsorganisationn i Svrig Third Swdish National Pnsion Fund (AP3) 4.5 Länsförsäkringar Unionn LD Lønmodtagrns Dyrtidsfond Unipnsion Fondsmaglrslskab A/S LocalTapiola Asst Managmnt Ltd Vritas Pnsion Insuranc Mistra, Th Swdish Foundation for Stratgic Environmntal 10 Rsarch UBS 11 Europ = 46% North Amrica = 26% Latin Amrica & Caribban - 75 = 9% Asia - 78 = 9% Australia and NZ - 67 = 8% Africa - 16 = 2% A This includs vidnc and insight into companis grnhous gas missions, watr usag and stratgis for managing climat chang, watr and dforstation risks. Invstor mmbrs hav additional accss to data tools and analysis. to bcom a mmbr visit: Pags/what-is-mmbrship.aspx To viw th full list of invstor signatoris plas visit: Pags/Sig-Invstor-List.aspx 3. Invstor signatoris ovr tim 35 Numbr of signatoris Invstor mmbrs ABRAPP - Associação Brasilira das Entidads Fchadas d Prvidência Complmntar AEGON N.V. Allianz Global Invstors ATP Group Aviva Invstors AXA Group Bank of Amrica Mrrill Lynch Bndigo & Adlaid Bank Limitd BlackRock Boston Common Asst Managmnt, LLC BP Invstmnt Managmnt Limitd California Public Employs' Rtirmnt Systm California Stat Tachrs' Rtirmnt Systm Calvrt Invstmnt Managmnt, Inc. Capricorn Invstmnt Group, LLC Catholic Supr CCLA Invstmnt Managmnt Ltd ClarBridg Invstmnts DEXUS Proprty Group Environmnt Agncy Pnsion fund Etica SGR Eurizon Capital SGR Fachsf FAPES Fundação Itaú Unibanco Gnration Invstmnt Managmnt Goldman Sachs Asst Managmnt Hndrson Global Invstors HSBC Holdings plc Infraprv KyCorp KLP Lgg Mason Global Asst Managmnt London Pnsions Fund Authority Main Public Employs Rtirmnt Systm Morgan Stanly National Australia Bank Limitd NEI Invstmnts Nubrgr Brman Nw York Stat Common Rtirmnt Fund Norda Invstmnt Managmnt Norgs Bank Invstmnt Managmnt Ovrlook Invstmnts Limitd PFA Pnsion Prvi Ral Grandza Robco RobcoSAM AG Rockfllr Asst Managmnt, Sustainability & Impact Invsting Group Royal Bank of Canada Sampnsion KP Livsforsikring A/S Schrodrs SEB AB Sompo Japan Nipponkoa Holdings, Inc Sustainabl Insight Capital Managmnt TD Asst Managmnt Trra Alpha Invstmnts LLC Th Wllcom Trust Univrsity of California

7 Global ovrviw Board or snior managmnt rsponsibility for climat chang incntivs for th managmnt of climat chang issus Th cas for corporat action on climat chang has nvr bn strongr and bttr undrstood. With th scintific vidnc of manmad climat chang bcoming vr mor incontrovrtibl, lading companis and thir invstors incrasingly rcogniz th stratgic opportunity prsntd by th transition to a low-carbon global conomy. Global Analyzd rsponss 1,799 1,997 Markt cap of analyzd companis US$m* 25,179,776 35,697,470 Scop 1 5,459 MtCO 2 5,382 MtCO 2 Scop 2 1,027 MtCO 2 1,301 MtCO 2 Scop 1 lik for lik: 1306 companis 4,135 MtCO 2 4,425 MtCO 2 Scop 2 lik for lik: 1306 companis 794 MtCO MtCO 2 * Markt capitalization figurs from Bloombrg at 1 January 2010 and 1 January Improving climat actions Globally And thy ar acting to siz this opportunity. Th latst data from companis that this yar took part in CDP s climat chang program as rqustd by 822 institutional invstors, rprsnting US$95 trillion in assts provid vidnc that rporting companis ar taking action and making invstmnts to position thmslvs for this transition. Growing momntum from th corporat world is coinciding with growing political momntum. Latr this yar, th world s govrnmnts will mt in Paris to forg a nw intrnational climat agrmnt. Whatvr th contours of that agrmnt, businss will b cntral to implmnting th ncssary transition to a low-carbon global conomy. Engagmnt with policymakrs on climat issus Intnsity missions rduction targts Absolut mission rduction targts Activ missions rduction initiativs Businss is alrady stpping up. Th Unitd Nations Environmnt Programm stimats that xisting collaborativ missions rduction initiativs involving companis, citis and rgions ar on cours to dlivr th quivalnt of 3 gigatons of carbon dioxid rductions by That s mor than a third of th missions gap btwn xisting govrnmnt targts for that yar and grnhous gas missions lvls consistnt with avoiding dangrous climat chang. Thos invstors who undrstand th nd to dcarboniz th global conomy ar watching particularly closly for vidnc that th companis in which thy invst ar positiond to transition away from fossil ful dpndncy. By rqusting that companis disclos through CDP, ths invstors hav hlpd crat th world s most comprhnsiv corporat nvironmntal datast. This data hlps guid businsss, invstors and govrnmnts to mak bttr-informd dcisions to addrss climat challngs. This rport offrs a global analysis of th currnt stat of th corporat rspons to climat chang. For 8000= 80% 9400= 94% 4700= 47% 7500= 75% 6000= 60% 8400= 84% 2100= 21% 5000= 50% 2700= 27% 4400= 44% 4700= 47% 8900= 89% 2900= 29% 6300= 63% 3800= 38% 6400= 64% Emissions data for 2 or mor Scop 3 catgoris Scop 1 data indpndntly vrifid = 34% 6400= 64% Scop 2 data indpndntly vrifid W ar targting th full oprational missions for th organisation, including lctricity, natural gas, disl and rfrigrant gass usd in oprational buildings and flts. J Sainsbury Plc CDP has changd th way invstors ar abl to undrstand th impact of climat chang in thir portfolio... promoting awarnss of what risks or bnfits ar mbddd into invstmnts. Anna Karny BNY Mllon th first tim, CDP compars th xisting landscap to whn th world was last on th vrg of a major climat agrmnt. By comparing data disclosd in 2015 with th information providd in 2010, this rport tracks what companis wr doing in 2009, ahad of th ill-fatd Copnhagn climat talks at th nd of that yar. Th findings show considrabl progrss: with corporat and invstor ngagmnt with th climat issu; in lading companis managmnt of climat risk; and vidnc that corporat action is proving ffctiv. Howvr, th data also shows that much mor nds to b don if w ar to avoid dangrous climat chang. Growing corporat ngagmnt on climat chang For th purposs of this 2015 rport and analysis, w focusd on rsponss from 1,997 companis, primarily slctd by markt capitalization through rgional stock indxs and listings, to compar with th quivalnt 1,799 companis that submittd data in Ths companis, from 51 countris around th world, rprsnt 55% of th markt capitalization of listd companis globally. Th data shows significant improvmnts in corporat managmnt of climat chang. What was lading bhavior in 2010 is now standard practic. For xampl, govrnanc is improving, with a highr prcntag of companis allocating rsponsibility for climat issus to th board or to snior managmnt (from 80% to 94% of rspondnts). And mor companis ar incntivizing mploys through financial and non-financial mans to manag climat issus (47% to 75%). Importantly, th prcntag of companis stting targts to rduc missions has also grown strongly. Forty four pr cnt now st goals to rduc thir total grnhous gas missions, up from just 27% A A prformanc bands globally* prformanc bands globally A - 72 D - 69 A B No Band A minus C B in Evn mor 50% - hav goals to rduc missions pr unit of output, up from 20% in Companis ar rsponding to th vr-mor complling vidnc that manmad grnhous gas missions ar warming th atmosphr. This hlps build th businss cas for monitoring, masuring and disclosing around climat chang issus. But gratr corporat ngagmnt with climat chang is at last partly down to influnc from incrasingly concrnd invstors. Amid growing invstor concrn Sinc 2010, thr has bn a 54% ris in th numbr of institutional invstors, from 534 to 822, rqusting disclosur of climat chang, nrgy and missions data through CDP. Invstors ar also broadning th mans by which thy ar ncouraging corporat action on missions. In rcnt yars, thy hav launchd svral othr initiativs. For xampl, a numbr of institutional invstors hav com togthr in th Aiming for A coalition to call on spcific major mittrs to dmonstrat good stratgic carbon managmnt by attaining (and maintaining) inclusion in CDP s Climat A List. Th A List rcognizs companis that ar lading in thir actions to rduc missions and mitigat climat chang in th past CDP rporting yar. In 2015, following a priod of ngagmnt with th companis, th coalition was succssful in passing sharholdr rsolutions calling for improvd climat disclosur at th annual mtings of BP, Shll and Statoil, with narly 100% of th vots in ach cas. Invstors ar also applying principls of transparncy and xposur to thmslvs. Mor than 60 institutional invstors hav signd th Montréal Carbon Pldg, undr which thy commit to masur and publicly disclos th carbon footprint of 4. Disclosur scors ovr tim Globally 12 * in 2010 and 2015 not all companis wr scord for prformanc No band C D E Lowst Avrag Highst

8 W hav a public commitmnt to mt 100% of lctricity rquirmnts through rnwabls by fiscal 2018 and w will b invsting in about 200 MW of solar PV plants. Infosys Googl uss carbon prics as part of our risk assssmnt modl. For xampl, th risk assssmnt at individual data cntrs also includs using a shadow pric for carbon to stimat xpctd futur nrgy costs. Googl thir invstmnt portfolios on an annual basis. It aims to attract commitmnt from portfolios totaling US$3 trillion in tim for th Paris climat talks. Invstors ar sking to bttr undrstand th link btwn lowr carbon missions and financial prformanc, including through th us of innovativ invstor products such as CDP s sctor rsarch, launchd this yar, which dirctly links nvironmntal impacts to th bottom lin. Som invstors ar taking th nxt logical stp, and ar working to shrink thir carbon footprints via th Portfolio Dcarbonization Coalition (PDC). As of August, th PDC of which CDP is on th founding mmbrs was ovrsing th dcarbonization of US$50 billion of assts undr managmnt by its 14 mmbrs. Lading to ffctiv corporat action Companis ar rsponding to ths signals. In total, companis disclosd 8,335 projcts or initiativs to rduc missions in 2015, up from 7,285 in 2011 (th yar for which th data allows for th most accurat comparison). Th thr most frquntly undrtakn typs of projct ar: improving nrgy fficincy in buildings and procsss; installing or building low carbon nrgy gnrators; and changing bhavior, such as introducing cycl to work schms, rcycling programs and shard transport. Mor than a third (36%) of rporting companis hav switchd to rnwabl nrgy to rduc thir missions. On avrag, th companis that purchasd rnwabl nrgy in 2015 hav doubld th numbr of activitis thy hav in plac to rduc thir missions, showing thir growing undrstanding or capacity to raliz th bnfits of lowr carbon businss. Furthr, 71% (1,425) of rspondnts ar mploying nrgy fficincy masurs to cut thir missions, compard with 62% (1,185) in 2011, dmonstrating that companis ar committd to rducing wastd nrgy whrvr possibl. Companis ar also quitly prparing for a world with constraints and a pric on carbon missions. In th past yar particularly, w hav sn a significant jump in th numbr of companis attributing a cost to ach ton of carbon dioxid thy mit, to hlp guid thir invstmnt dcisions. This yar companis disclosd using an intrnal pric on carbon, a nar tripling of th 150 companis in Manwhil, an additional 582 companis say thy xpct to b using an intrnal pric on carbon in th nxt two yars. Howvr, ths fforts hav not provd sufficint to adquatly constrain missions growth. On a likfor-lik basis, dirct ( Scop 1 ) missions from th companis analyzd for this rport grw 7% btwn 2010 and Scop 2 missions, associatd with purchasd lctricity, grw 11%. Thr ar many factors that might xplain this, not last conomic growth but this ris in missions is also considrably lowr than would hav bn th cas without th invstmnts mad by rsponding companis in missions rduction activitis. Good progrss but it nds to acclrat Companis disclosing through CDP s climat chang program hav mad substantial progrss in undrstanding, managing and bginning to rduc thir climat chang impacts. Howvr, if dangrous climat chang is to b avoidd, missions nd to fall significantly. Govrnmnts hav committd to hold global warming to lss than 2 C abov pr-industrial lvls. Th Intrgovrnmntal Panl on Climat Chang calculats that to do this, global missions nd to fall btwn 41% and 72% by Although mor companis ar stting missions targts, fw of thm ar in lin with this goal. In most cass, targts ar nithr dp nough nor sufficintly long trm. Mor than half (51%) of absolut missions targts adoptd by th rporting sampl xtnd only to 2014 or Two fifths (42%) run to 2020 but only 6% xtnd byond that dat. Th figurs for intnsity targts ar almost idntical. This caution in targt stting is likly th rsult of th uncrtain policy nvironmnt: many companis will b awaiting th outcom of th Paris climat talks bfor committing to longr-trm targts. Howvr, a numbr of big mittrs such as utilitis Ibrdrola, Enl and NRG hav stablishd longtrm, ambitious missions targts that ar in lin with climat scinc. Ths companis rcogniz that thr is a businss cas for taking on such targts and stting a clar stratgic dirction, including ncouraging innovation, idntifying nw markts and building long-trm rsilinc. Many othr companis hav pldgd to do so through th W Man Businss Commit to Action initiativ. CDP aims to work along a numbr of fronts to hlp othr companis, spcially in high-mitting sctors, join thm. With its partnrs, CDP has dvlopd a sctor-basd approach to hlp companis st climat scinc-basd missions rduction targts. Th Scinc Basd Targts initiativ uss th 2 C scnario dvlopd by th Intrnational Enrgy Agncy. Looking forward, CDP will ncourag mor ambitious targt stting through our prformanc scoring, by giving particular rcognition to scinc-basd targts. W ar planning gradual changs to our scoring mthodology that will rward companis that ar transitioning towards rnwabl nrgy sourcs at pac and scal. In addition, CDP is working with high-mitting industris to dvlop sctor-spcific climat chang qustionnairs and scoring mthodologis, to nsur that disclosur to CDP, and th actions rquird to show lading prformanc, ar appropriat for ach sctor. In 2015, w pilotd a sctor-spcific climat chang qustionnair and scoring mthodology privatly with slctd oil and gas companis, ahad of thir intndd implmntation in Th climat ngotiations in Paris at th nd of th yar prsnt a uniqu opportunity for countris around th world to commit to a prosprous, low carbon futur. Th mor ambitious th ffort, th highr th rwards will b. But Paris is a milston on th road to a bttr climat, not th grand final. A dpr div into corporat nvironmntal risk And businss nds a sat at th tabl in Paris Th Paris climat agrmnt will, w hop, provid vital ncouragmnt to what is a multi-dcad ffort to bring grnhous gas missions undr control. It will hopfully giv privat sctor mittrs th confidnc to st longr-trm missions targts alignd with climat chang. Companis and thir invstors thrfor will b, alongsid national govrnmnts, arguably th most important participants in nsuring th succss of th global ffort to rin in missions. Companis that hav an opinion on a global climat dal ar ovrwhlmingly in support: whn askd if thir board of dirctors would support a global climat chang agrmnt to limit warming to blow 2 C, 805 companis said ys, whil 111 said no. Howvr, a larg numbr of rspondnts (1,075) statd thy hav no opinion, and 331 did not answr th qustion. This suggsts ithr a lack of clarity around th official board position on th issu, or that many companis ar not trating th imminnt climat talks with th ncssary stratgic priority. Cntral to CDP s mission is communicating th progrss companis hav mad in addrssing climat chang, and highlighting whr risk may b unmanagd. To bttr do so, CDP has introducd sctor-spcific rsarch for invstors. This forward-looking rsarch links nvironmntal impacts dirctly to th bottom lin and dircts invstors as to how thy can ngag with companis to improv nvironmntal prformanc. Th rsarch flags topical nvironmntal and rgulatory issus within particular sctors, rlvant to spcific companis financial prformanc and valuation, and dsignd for incorporation into invstmnt dcisions. Sctors covrd to dat includ automotiv, lctric utilitis and chmicals. Th rsarch is intndd to support ngagmnt with companis, providing actionabl company-lvl conclusions. To bttr quip invstors in undrstanding carbon and climat risk, CDP is also dvloping furthr invstor tools such as a carbon footprinting mthodology, and is working continuously to improv th quality of our data. Conclusion Th dirction of travl is clar: th world will nd to rapidly rduc missions to prvnt th worst ffcts of climat chang. And th political will is building to undrtak thos rductions. Th majority of thos rductions will nd to b dlivrd by th corporat world crating both risk and opportunity. CDP and th invstors w work with hav playd a formativ rol in building awarnss of ths risks and opportunitis. Our data has hlpd build th businss cas for missions rduction and inform invstmnt dcisions. Th corporat world is rsponding with thousands of missions rduction initiativs and projcts. But th data also shows that fforts will nd to b rdoubld, by both companis and thir invstors, if w ar to succssfully confront th challng of climat chang in th yars to com. CDP has this yar introducd th first valuation and ranking of corporat watr managmnt, using scoring carrid out by our lad watr-scoring partnr, South Pol Group. Th qustions in th watr disclosur procss guid companis to comprhnsivly assss th dirct and indirct impacts that thir businss has on watr rsourcs, and thir vulnrability to watr availability and quality. Introducing crdibl scoring will catalyz furthr action. It will illuminat whr companis can improv th quality of th information thy rport, and thir watr managmnt prformanc. Participants will bnfit from pr bnchmarking and th sharing of bst practic. Watr scoring will follow a bandd approach, with scors mad public for thos companis raching th top ladrship band. Scoring will rais th visibility of watr as a stratgic issu within companis and incras transparncy on th fforts thy ar making to manag watr mor ffctivly. Furthrmor, scoring will b usd to inform businss stratgis, build supply chain rsilinc and scur comptitiv advantag. W hop that kping scor on companis and watr will rduc th dtrimntal impacts that th commrcial world has on watr rsourcs, nsuring a bttr futur for all. Th numbrs for companis using or planning to implmnt intrnal carbon pricing ar basd on th sampl analyzd for Putting a pric on risk:carbon pricing in th corporat world. Of th 1,997 companis analyzd in this rport 315 hav disclosd that thy st an intrnal carbon pric, with 263 planning to do so. For mor dtail, s carbon-pricing-in-th-corporat-world.pdf Unilvr Working towards watr stwardship

9 Nordic ovrviw A A - 4 D prformanc bands in Nordic rgion B - 33 C - 53 No Band A prformanc bands in Nordic rgion A - 4 C - 24 A minus - 7 B - 48 D - 36 E - 8 No band Disclosur scors ovr tim in Nordic rgion This sction offrs an ovrviw of th dvlopmnts and currnt stat of climat chang disclosur and mitigation actions in th Nordic countris btwn 2010 and 2015, mirroring th global analysis. Th analysis in this sction is primarily focusd on th rsponss from 145 companis in 2015 slctd by thir markt capitalization to b compard with 130 companis that submittd data in Ths rsults covr a subst of th data availabl through CDP. In total 205 Nordic corporations rprsnting 84% of th markt capitalization of th Nordic stock xchangs disclosd climat chang information to thir stakholdrs through CDP in 2015, which rprsnts an 8% incras from Ths companis ar listd on pag 26. In addition to th incras of companis rporting nvironmntal information to thir invstors through CDP, th numbr of companis disclosing information to thir customrs through th supply chain program and th numbr of companis choosing to disclos to CDP on thir own initiativ (i.. not on th rqust of invstors or customrs) also incrasd. Ths companis us CDP disclosur as a tool to documnt th corporat situation and to bnchmark thmslvs against listd prs. Improvd transparncy amongst Nordic rspondrs Companis rporting to invstors through CDP ar offring mor complt submissions vry yar, but thr is vidnc showing that th gap btwn corporats taking proactiv masurs to manag and rduc thir carbon footprints and thos that don t has grown slightly sinc Th avrag of th prformanc bands dscribing th lvl of action has rmaind th sam, C in both 2010 and in 2015 among Nordic companis. Howvr, a closr look at th data indicats that in 2015 th disparity btwn lading and lagging climat prformanc btwn companis has incrasd, with significantly mor companis achiving prformanc band B or highr in 2015 whn at th sam tim th numbr of companis only achiving a prformanc band E or D has also incrasd. On th othr hand, th proportion of companis lft compltly without a prformanc band (with disclosur scor lowr than 50) has dcrasd significantly from 2010, suggsting improvmnt in th ovrall maturity of proactiv climat fforts among rsponding companis. Th avrag of Nordic disclosur scors, which masurs compltnss of th information supplid, was a rcord high 84 in 2015 whn in 2010 it was as low as 60. Disclosur scor avrags also vary slightly across th rgion with Norwgian corporations achiving th bst avrag rsults on transparncy in th rgion this yar. Typically th transparncy and compltnss of th rporting improvs with tim, so it is notworthy that in 2015 spcially in Swdn thr wr a numbr of nw companis rporting to invstors though CDP for th first tim. Positiv dvlopmnts with missions prformanc Sinc 2010, Nordic companis using CDP to manag thir climat impacts hav rducd thir Scop 1 missions by an avrag of 17% almost trbl th global avrag of 6%. Scop 2 missions, associatd with purchasd lctricity grw modratly with 2,9%, whil globally th growth was 11.4%. 4. Improving climat actions in Nordic rgion 8800= 88% 9500= 95% Board or snior managmnt rsponsibility for climat chang Avrag disclosur scor Nordic 84 C Dnmark 79 C Finland 82 C Norway 90 C Swdn 84 C Nordic* Analyzd rsponss 130 (1) 147 (2) Markt cap of analyzd companis US$m** 868,927 1,246,693 Scop MtCO MtCO 2 Scop MtCO MtCO 2 Scop 1 lik for lik: 94 companis MtCO MtCO 2 Scop 2 lik for lik: 94 companis 18.5 MtCO 2 19 MtCO 2 Howvr, companis in th rgion ar initiating fwr mission rduction activitis in absolut trms, with 469 activitis startd this yar, 0 compard with 517 in Morovr, whil 44% of companis rport consuming rnwabl nrgy to rduc missions ahad of th global Lowst Avrag Highst avrag of 36% Th ky trnds % figurs ar basd on th proportion of rsponding companis that chos a particular answr. Th data is not vrifid or cross rfrncd against scoring critria = 44% 6800= 68% Incntivs for th managmnt of climat chang issus 6200= 62% 8600= 86% Engagmnt with policymakrs on climat issus 2500= 25% 5600= 56% Intnsity missions rduction targts Avrag prformanc band th numbr in brackts rfrs to companis that rspondd aftr th dadlin, or rfrrd to a parnt company. Thy ar not includd in analysis. * only companis includd to th official Nordic 260 sampl basd on thir markt capitalization and which rspondd by wr analyzd for this sction. Th numbr in brackts rfrs to companis that rspondd aftr th dadlin, or rfrrd to a parnt company. Thy ar not includd in analysis. In total, 205 Nordic companis rprsnting 84% of th markt capitalization of th Nordic stock xchangs disclosd information to invstors via CDP in ** markt cap figurs takn from Bloombrg at 1 January 2010 and 1 January = 29% 3900= 39% Absolut mission rduction targts 4500= 45% 8500= 85% Activ missions rduction initiativs Th data suggsts, thn, that th sampl s strong prformanc in trms of missions rductions is a function of th maturity of climat chang managmnt among companis in th rgion, and of mor sophisticatd assssmnt of thos rduction activitis that yild th gratst CO 2 and cost rductions. Activitis startd in arlir yars ar likly to b baring fruit, spcially thos that sought to ncourag bhavioral chang among staff, as ths wr th most popular typ in rcnt yars (73 bhavioral chang rlatd projcts rportd in 2010, only 31 in 2015). Mor Nordic companis (59%) wr also abl to provid third party assuranc of thir Scop 1 and 2 missions data this yar than in any prvious yar. Indpndnt vrification of th data ultimatly improvs th accuracy and usfulnss of th data to fd into intrnal dvlopmnt and cost saving programs, and data quality is also paramount for data usrs such as invstors, businss customrs and govrnmnts. Emission contribution btwn sctors vary significantly. Utilitis sctor, rprsnting only 1% of th rsponding companis contribut to 15% of th missions. Also Enrgy (7%) and Matrials (12%) sctors ar rsponsibl for almost doubl of th missions compard to th numbr of rsponding companis from ths sctors with 16% and 24% of missions rspctivly. 4500= 45% 6400= 64% Emissions data for 2 or mor Scop 3 catgoris 4400= 44% 5900= 59% Scop 1 data indpndntly vrifid = 36% 5900= 59% Scop 2 data indpndntly vrifid

10 2015 Ladrship Critria Climat chang is on of th mgatrnds driving our businss and rcognizd in KONE stratgy to b th forrunnr in providing nrgy fficint lvator and scalator solutions for nt zro nrgy buildings. KONE Oyj To limit Tlnor s risk xposur with rgards to climat chang rgulations, improving nrgy fficincy and mting mission rduction targts hav bcom a stratgic priority with high managmnt focus. Tlnor 5. Proportion of 2015 companis and Scop 1 & 2 missions by sctor Consumr Discrtionary - 12% Consumr Stapls - 5% Enrgy - 7% Consumr Discrtionary - 4% Consumr Stapls - 3% Enrgy - 16%...but mor ambitious fforts ar ndd Nonthlss, Nordic companis would do wll to rdoubl fforts, including in som aras whr companis in th rgion ar lagging. Only 68% of companis link managmnt incntivs to climat chang, compard with a global avrag of 75%.Th prcntag of Nordic companis stting absolut targts, at 39%, is also blow th global avrag of 44%. Whil th Nordic companis might b lagging thir global prs in stting absolut targts, th dvlopmnt within th rgion is still positiv. Th numbr of Nordic companis stting both absolut targts and intnsity targts has incrasd significantly from 2010, and also slightly from 2014 whn 34% of rsponding companis wr stting absolut targts. Th numbr of companis ahad on progrss to achiv ths targts has also incrasd to 51% this yar compard to 40% in Many Nordic companis sm to b in th procss of stting nw targts byond 2015 as almost 55% of th absolut targts adoptd by th Nordic sampl xtnd only to 2014 or 2015 and only 22% run to Th intnsity targts ar gnrally st for a slightly longr trm, but th caution in stting long-trm targts could rflct th uncrtain policy nvironmnt ahad of Paris ngotiations. Financials - 16% Halthcar - 7% Industrials - 31% Financials - 0% Halthcar - 1% Industrials - 36% IT - 6% Matrials - 12% Tlcomms - 3% IT - 0% Matrials - 23% Tlcomms - 1% Thr is also a rlativly small proportion of companis using carbon pricing to guid intrnal invstmnt dcisions in th Nordics, with just 13 of th 147 (9%) rsponding companis doing so, compard to global 16% of th analyzd companis. An additional 263 (13%) companis globally also say thy xpct to b using an intrnal pric on carbon in th nxt two yars whras only 13 (9%) of th analyzd companis in th Nordic rgion anticipat to adopt an intrnal carbon pric to support stratgic dcision making to offst th costs and risks of grnhous gas production. On of th Nordic companis alrady applying intrnal carbon pric is biotch company Novozyms: W bliv that a carbon pric will support climat chang mitigation fforts globally and driv CO 2 rductions, th company stats. Utlitis - 1% Utlitis - 15% % of rspondrs % of missions Each yar companis that participat in CDP s climat chang program ar scord against two paralll assssmnt schms: prformanc and disclosur. 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. Th disclosur scor asssss th compltnss and quality of a company s rspons. Its purpos is to provid a summary of th xtnt to which companis hav answrd CDP s qustions in a structurd format. A high disclosur scor signals that a company providd comprhnsiv information about th masurmnt and managmnt of its What ar th A List and CDLI critria? To ntr th A List, 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 2015) Disclos gross global Scop 1 and Scop 2 figurs Scor maximum prformanc points for vrification of Scop 1 and Scop 2 missions (having 70% or mor of thir missions vrifid) Furthrmor, CDP rsrvs th right to xclud any company from th A List if thr is anything in its rspons or othr publicly availabl information that calls into qustion its suitability for inclusion. CDP is working with RpRisk in 2015 to strngthn this background rsarch. Not: Companis that achiv a prformanc scor high nough to warrant inclusion in th A List, but do not mt all of th othr A List rquirmnts ar classd as Prformanc Band A- but ar not includd in th A List. To ntr th CDLI, a company must: Mak its rspons public and submit via CDP s Onlin Rspons Systm Achiv a disclosur scor within th top 10% of th total rgional sampl population* carbon footprint, its climat chang stratgy and risk managmnt procsss and outcoms. Th highst scoring companis for prformanc and/ or disclosur ntr th A List (Prformanc band A) and / or th Climat Disclosur Ladrship Indx (CDLI). Public scors ar availabl in CDP rports, wbsit, through Bloombrg trminals, Googl Financ and Dutsch Bors s wbsit. In 2015 th climat chang scoring mthodology was rvisd to put mor mphasis on action and as a rsult achiving A is now bttr alignd with what th currnt climat chang scnario rquirs. CDP oprats a strict conflict of intrst policy with rgards to scoring and this can b viwd at CDP-conflict-of-intrst-policy.pdf Communicating progrss Cntral to CDP s mission is communicating th progrss companis hav mad in addrssing climat chang, and highlighting whr risk may b unmanagd. To bttr do so, CDP is changing how our climat prformanc scoring is prsntd, and w hav introducd sctor-spcific rsarch for invstors. Banding prformanc scors Starting with watr and forsts in 2015 and including climat chang and supply chain in 2016, CDP is moving to prsnt scors using an approach that illustrats companis progrss towards nvironmntal stwardship. Each rporting company will b placd in on of th following bands: Disclosur masurs th compltnss of th company s rspons; Awarnss masurs th xtnt to which th company has assssd nvironmntal issus, risks and impacts in rlation to its businss; Managmnt masurs th xtnt to which th company has implmntd actions, policis and stratgis to addrss nvironmntal issus; Ladrship looks for particular stps a company has takn which rprsnt bst practic in th fild of nvironmntal managmnt. W bliv that this approach will b clarr and asir to undrstand for companis, invstors and othr stakholdrs. Watr and forst scors will us this nw prsntation of bandd scors in 2015, whil th updatd scoring mthodology for climat chang will b availabl in Fbruary 2016 with rsults *Not: whil it is usually 10%, in som rgions th CDLI cut-off may b basd on anothr critria, plas s local rports for confirmation. in lat