Prudential plc. Basis of Reporting: GHG emissions data and other environmental metrics.

Transcription

1 Prudential plc. Basis of Reporting: GHG emissions data and other environmental metrics.

2 This Basis of Reporting document supports the preparation and reporting of GHG emissions data and other environmental metrics by Prudential plc. for the Prudential plc. CR Report and annual statement in the directors report. 1. General Reporting Principles In preparing this document consideration has been given to the following principles: o o o Comparability and Consistency with other data including prior reporting years. Transparency and Understandability providing clarity to users. Information about the underlying calculations of the reported figures including any necessary assumptions made. 2. Organisational Boundary For the purpose of the 2013 CR report GHG emissions data has been accounted for by adopting an Operational Boundary approach. That is, Prudential plc. has accounted for emissions where it or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation. (Green House Gas Protocol, A Corporate Accounting and Reporting Standard). Under this approach, our GHG emissions from all owned and leased facilities globally over which we have operational control are counted. Additionally, the operational control boundary includes estimated usage for full service gross leased offices and collected data centres where the energy utilities are paid and met. Under this boundary reporting covers emissions generated from 389 occupied leases, covering 517,934 square meters. To determine the sites where emission reporting was required, lease information was taken from our central lease database. The central database is maintained for all regions and contains information about whether a site is subleased, the area which the lease covers and the period with which the lease is valid. Within our investment portfolio reporting covered approximately 2,755,775 square meters and 203 buildings. Information about investment sites was provided by a number of sources and was collated centrally to determine total emissions under operational control. Decision Point 1. Estimation for missing data, or exclude and explain? 2. Selected Reporting Period? Comment We estimate for missing data where possible. Accrual methodology is used for missing invoices, and estimation methodology is used for sites with no invoices. All methods will use proxy data based on benchmarking data developed from Prudential s portfolio (where invoices have been received). 01 October September This period does not correspond with the Directors Report period (January 2013 to December 2013). The reporting period was brought forward by three months to improve the availability of invoice data (which often lags by one month or more after the usage period) and reduce the reliance on estimated data.

3 Decision Point 3. Are there any material differences to the Directors report? 4. Inclusion of leased assets? 5. Materiality considerations/exclusi ons. Comment Prudential is reporting based on operational control. Businesses and assets where Prudential does not have operational control are excluded from GHG reporting due to operational control considerations. These businesses appear in the Directors Report. All leased assets will be included. In the event that the landlord pays the invoice (and Prudential does not see an invoice), electricity will be estimated based on proxy data. Training rooms, subleased offices and serviced offices are excluded. Prudential has set a materiality threshold of 5%. The following exclusion have been made based on this: Within Asia, Agents business travel, (scooters these do not come under Prudential s operational control and collection of this information would be extremely difficult). Minor works (gardeners, minor construction works, so small as to be immaterial, anticipated < 1%) Emissions from refrigerants from small split-system air conditioning units are so small as to be immaterial (anticipated< 0.1%). The electricity use from these units has been reported. 6. What intensity ratio will be used? 7. Baseline Year Travel booked outside of the UK is not included. We are working to improve our reporting in this area. Tonnes of CO2-e/SQ. meter. Net Lettable Area. Calculated as a snapshot at end of reporting period ology Prudential plc. uses The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG protocol (revised edition) as the global standard) 2004, as the guiding methodology for calculating carbon emissions. The GHG Protocol was co-developed by the World Resources Institute and the World Business Council for Sustainable Development. The environmental data is collected and aggregated to provide a group wide picture based on a combination of actual, extrapolated and estimated data, depending on the type of data and the market the data comes from. Please see below table for further information. This basis of the data is sourced from invoices, supplier reports, and expenses systems. Emissions and environmental metrics collated are detailed below:

4 Mandatory Emissions Fuel combustion 1 emissions CO 2 e emissions resulting from; gas use for heating and cooking. Quantity of diesel consumed for back up power generation. The covers all Prudential plc. occupied and investment buildings where there is operational control. kwh and litres converted to CO 2 e using Defra 2013 conversion factors. Invoices and supplier reports are collated and entered into GHG calculation models. Where data has not been obtainable, extrapolation over time period days has been conducted with existing data; an average daily rate per meter squared has been applied to any missing invoiced days. Where no data has been received, benchmarking data has been used to estimate kwh for gas use for that property. Further information is provided within the assumptions section of this report. Fugitive emissions 1 emissions CO 2 e emissions resulting from loss of fugitives released into atmosphere. The covers all Prudential plc. occupied and investment buildings where there is operational control. kg converted to CO 2 e using Defra 2013 conversion factors. Based on invoices from the provision of top up gases as well as reports from air conditioning engineers and catering equipment engineers. Vehicle Fleet- 1 emissions CO 2 e emissions resulting from vehicles owned or leased. The covers all Prudential plc. owned cars, vans, planes and minibuses including leased cars operating for business use. km travelled by size of vehicle converted to CO 2 e using Defra 2013 conversion factors. Where km were not available quantity of fuel consumed converted to CO 2 e using Defra Extraction from the expenses system on a quarterly basis for leased cars by number of KM travelled by vehicle type and size of engine. Company owned vehicles, mileage or cost supplied by property contacts. Any missing fuel and mileage data has been extrapolated for the full reporting year using average miles or litres per day multiplied by missing

5 days. Electricity- 2 emissions CO 2 e emissions resulting from electricity consumed in kilowatt hours (kwh). Operations utilise energy to generate light, heat, power, cooling and provide refrigeration. The covers all Prudential plc. occupied and investment buildings where there is operational control. kwh converted to CO 2 e using Defra 2013 conversion factors. Invoices and supplier reports are collated and entered into GHG calculation models. Where data has not been obtainable, extrapolation over time period days has been conducted with existing data; an average daily rate per meter squared has been applied to any missing invoiced days. Where no data has been received, benchmarking data has been used to estimate kwh for gas use for that property. Further information is provided within the assumptions section of this report. Voluntary Emissions Business Travel- 3 emissions CO 2 e emissions resulting from air and rail travel. The covers air and rail travel booked by UK business only km converted to CO 2 e using Defra 2013 conversion factors. Report provided by two travel agent companies and multiplied. All distances are reported in KM and conversion figures use the DEFRA 2013 including radiative forcing uplift. Waste- 3 emissions Total CO 2 e emissions resulting from non recycled waste. The of waste reporting covers, all investment properties with operational control, UK occupied properties, US occupied properties. We do not currently collect waste data for our occupied buildings in Asia, and Continental Europe. Tonnes converted to CO 2 e using Defra 2013 conversion factors. Report provided by waste management companies, property managers and waste transfer notes. No assumptions or estimations have been made for missing data.

6 Waste Recycled - 3 emissions Total CO 2 e emissions resulting from waste recycled. The of waste reporting covers, all investment properties with operational control, UK occupied properties, US occupied properties. We do not currently collect waste data for our occupied buildings in Asia and Continental Europe. Tonnes converted to CO 2 e using Defra 2013 conversion factors. Report provided by waste management companies, property managers and waste transfer notes. No assumptions or estimations have been made for missing data. Water Consumption Total quantity of water recorded in cubic metres. The covers all Prudential plc. occupied and investment buildings where there is operational control. Cubic Metres. Consumption recorded for Prudential Occupied from on site weekly meter readings and invoices. Investments (not with Operational Control)- 3 emissions CO 2 e emissions resulting from occupier controlled activities within our multi-let UK investment properties. The covers occupier controlled activities within our multi-let UK investment properties. This relates only to properties where the landlord pays the utility bill and charges our occupiers for their usage based on sub-metered usage. It also does not include occupier usage where they are directly responsible for their own utility supply which is a significant scope 3 emission not included in this reporting. It does not include any investment properties outside the UK where the data is not currently reported in a way which allows this breakdown. kwh and litres converted to CO 2 e using Defra 2013 conversion factors. Invoices and supplier reports are collated and entered into GHG calculation models. Where data has not been obtainable, extrapolation over time period days has been conducted with existing data; an average daily rate per meter squared has been applied to any missing invoices.

7 Assumptions For each fuel type there are a number of over-arching assumptions that also apply. These are outlined below: Any sites with missing area (square foot/metre), electricity or gas an estimation has been applied. An average substitute is calculated using internal benchmarks following the below levels:. o Level 1 (best option): Is an average figure available for the country in question by property type? o If no Level 2 (next best option): Is an average figure available by country level? o If no Level 3 (final option): Use the average contained within the Prudential data model. Any sites that do not have a property type (e.g. Sales office) will assume the average benchmarking figure for their respective country. In the event that there is incomplete information on lease Start Date and End Date, assumes a conservative approach, i.e. the property is open for the full reporting period All costs have been converted to a common currency (GBP) based on Prudential s end of month spot rate at 31/10/2013. This allows for a normalised GBP/kWh (or other energy unit) to be used for accruals and/or estimation purposes in the model. A complete data set for Asian investment portfolio was unavailable data was entered into the data model Assumptions, electricity: Every building in the site list either has invoice/accrual or estimated electricity consumption/cost. Estimates and accruals are only applied to months where lease is active. If we have received an invoice for only part of a month, then data is accrued for the remaining days of the month Assumptions, transport: Only registered assets are included. Transport is calculated either based on litres of fuel consumed/purchased or distance travelled. Data providers were requested to provide litres of fuel where possible, or if not, distance travelled. For the UK, leased cars conducting business miles were included in reporting. Transport is only calculated where Prudential Plc. has advised that a vehicle is owned or under their operational control Assumptions, waste; Waste figures do not include buildings where Prudential plc. is a tenant without operational control of waste. Weight of waste is based on the assumed weight per uplift of different types of recycling, based on industry averages, and multiplied by the number of uplifts in the year at each property.

8 UK Investments, January 2013 to December 2013 figures were used for September 2012 to October 2013 reporting Assumptions, fugitive emissions; For UK investment properties the quantity of gas released was not available for all sites broken down by gas type. Where this was the case it was assumed that HFC 134A was released as this was deemed most likely Assumptions, business travel; Business travel does not include travel booked by individuals and claimed via the expenses system. Business miles conducted in personal (non-owned or leased) vehicles applied an average conversion factor as fuel and size of engine was unknown.

9 4. Reported data by region Fuel Combustion Fugitive emissions Vehicle Fleet Electricity Use Business Travel Waste produced Waste Recycled UK Occupied UK Investments N/A N/A Continental Europe Occupied US Occupied North America Investments N/A N/A Asia Occupied Asia Investments N/A N/A