Embedding a carbon price into business strategy

Embdding a carbon pric into businss stratgy Sptmbr 2016

1,200+ companis disclos to CDP thir plans or currnt practic of placing a pric on thir carbon missions as an approach to managing carbon risk. 140+ of ths companis ar taking this approach furthr, by mbdding a carbon pric dpr within businss stratgis and oprations to hlp tak tangibl action on climat chang. 02

Contnts 04 Excutiv summary 05 Forword 05 Mssag from invstors 08 Latst trnds 10 Sctor trnds 11 Rgional trnds 12 Policy and carbon pricing: Who prics carbon around th world? 14 Disclosd prics by rgion: Intrnalizing policy prics 16 A maturing practic 16 Embdding an intrnal pric on carbon into businss stratgy 18 Carbon pricing is alrady dlivring chang 20 Cas studis 20 Novartis 21 SUEZ 22 Saint-Gobain 23 Nissan Motor Co. Limitd 24 Arçlik A.S. 25 Harmony Gold Mining Company Limitd 26 Royal DSM 27 Appndix 27 CDP Climat Chang Qustionnair Guidanc: ffctivly answring th intrnal pric on carbon qustion 28 Full list of companis using and planning to us an intrnal pric on carbon In this rport, all pric valus ar in USD unlss othrwis statd (s currncy convrsion rats on pag 28). All missions ar rportd in mtric tons. All data is basd on th rsponss of CDP 2016 climat chang and supply chain information rqusts (only rsponss submittd prior to Sptmbr 5, 2016). 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 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 CDP 2016 climat chang and supply chain information rqusts. 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 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. CDP North Amrica, Inc, is a not for-profit organization with 501(c)3 charitabl status in th U.S. 2016 CDP. All rights rsrvd. 03

Excutiv summary Mor than vr, invstors ar dmanding comprhnsiv climat disclosur. This includs assuranc that companis ar lowring thir risk xposur to policis that plac a pric on carbon and rallocating capital to dlivr highr rturns in a low-carbon conomy. This rport provids invstors, companis and govrnmnts with an ovrviw of how companis ar rsponding to carbon pricing signals within th global conomy. Ky findings: 1. 23% mor companis disclos th adoption of a pric on carbon. 1,249 companis disclosd thir practic of pricing carbon missions, or thir plans to soon do so. This rprsnts a 23% incras from 2015. Companis us this approach to prpar for a carbon-constraind futur by building prudnt buffrs into thir businss modls today. 2. A carbon pric is bing mbddd dpr into businss stratgy compard to 2015. 147 companis ar taking this approach furthr, by mbdding a carbon pric dpr within businss stratgis and oprations. Thy hav idntifid it as a mchanism that can hlp systmatically achiv missions rductions and rlatd targts. Companis rport that an intrnal pric hlps by providing an incntiv or addd rason to rallocat rsourcs toward low-carbon activitis; as a factor in th businss cas for R&D invstmnts; and as a way to rval hiddn risks and opportunitis in a company s oprations and in its supply chains. Exampls of companis who highlight on or mor of ths rasons ar Anglo Amrican Platinum, Arçlik A.S., Autodsk Inc., Bouygus, Cummins Inc., ENGIE, Harmony Gold Mining Company Limitd, Kring, Microsoft Corporation, Nissan Motor Co. Ltd, Novartis, Royal DSM, Saint-Gobain, Sky Plc, Socit Gnral, SUEZ, TD Bank Group, and Vina Concha y Toro SA. 3. Companis using an intrnal carbon pric ar sing tangibl impacts. 37 companis hav disclosd a tangibl impact as a rsult of intrnalizing a cost on carbon. Thy dscrib a varity of ways in which this tool has dirctly shiftd invstmnts toward nrgy fficincy masurs, low-carbon initiativs, nrgy purchass, and th dvlopmnt of low-carbon product offrings. 4. Larg numbrs of companis may b at risk. Whil 370 companis in 14 high-mitting industris say thy ar adopting carbon pricing, ovr 500 say thy do not plan to do so. Approximatly 400 of ths ar hadquartrd in countris who ar considring, ar currntly or hav alrady implmntd a pric on carbon. Th numbr of companis potntially at risk is likly to b vn largr givn th multinational natur of many of ths companis and th widr sctoral covrag of som carbon taxs. As data around carbon xposur continus to improv, invstors may qustion th risk-prpardnss of ths companis for climat rgulations. 5. Corporat carbon pricing has incrasd noticably in som rgions. This yar s rportd incras is prvalnt in all rgions. Notabl incrass wr from companis hadquartrd in Brazil, China, India, Japan, Mxico, th Rpublic of Kora, and th U.S. Som of ths countris hav carbon pricing policis in opration or policy proposals undr considration. Othrs do not. It is too arly to tll whthr ths incrass com as a rsult of corporat ractions to th Paris Agrmnt, pric signals from national polics, or ar indicativ of a nw corporat norm. 6. Pric lvls vary by rgion. Only 30% of companis disclosd th pric(s) thy us, ranging from <$1 to >$800. Typically, if clar rgulatory carbon pric signals xist, th bulk of disclosd corporat pric lvls will follow th policy pric. For xampl, many companis in Canada and th Rpublic of Kora disclosd pric lvls consistnt with th prvailing carbon pric lvls du to rgulation. In contrast, corporat pric lvls varid significantly across Europan companis, which could b du to th varity of carbon pricing policis oprating in th rgion. U.S. companis also disclosd a big pric rang and many signals that factord into pric calculations, including th EU s and California s missions trading systms and th U.S. Environmntal Protction Agncy s social cost of carbon. 7. Pricing practics vary by sctor. Of all th companis that rspondd to CDP s intrnal carbon pricing qustion, th Utilitis and Enrgy GICS sctors had th highst proportion of companis rporting that thy currntly pric or plan to pric carbon 63% of Utilitis disclosrs and 52% of Enrgy disclosrs. This compars with 30 40% of disclosing companis in th Financials, Tlcommunication Srvics and Matrials Sctors, and 19 25% in Halth Car, Consumr Discrtionary, Information Tchnology, Consumr Stapls and Industrials. { This rport s findings ar basd on disclosurs of 5,759 companis who rspondd to CDP s 2016 climat chang and supply chain information rqusts, mad on bhalf of invstors with $100 trillion in assts, and purchasing organizations with ovr $2 trillion in spnding powr. 04

Forword Lanc Pirc, Prsidnt, CDP North Amrica I am dlightd to launch this rport on th v of Climat Wk in Nw York. Th rsults rportd in this rlas of annual CDP data ar a sign of incrasingly concrtd action by businss to dal with th risk of a changing climat. As co-chair of th businss ngagmnt working group of th World Bank s Carbon Pricing Ladrship Coalition, I hav witnssd som of this progrss up clos as th privat sctor continus to incras its vocal support for, and implmntation of, carbon pricing. W bliv th progrss sn hr rprsnts anothr milston in a historic yar of intrnational agrmnts and action on climat chang. Additionally, w anticipat th first rlas of guidanc by th Task Forc on Climat-rlatd Financial Disclosurs, as wll as th potntially arly ntry into forc of th Paris Agrmnt. Both ar significant milstons. Whil th cumulativ impact of ths dvlopmnts has yt to b fully masurd, th rsponss to CDP s 2016 disclosur rqust indicats that th mov toward carbon pricing w rportd last yar continus apac. This rport highlights a continuing trnd that companis ar rlying on low-carbon activitis in thir corporat stratgis as a rspons to changing pric signals within th conomy. Our data show a 23% incras in th numbr of major companis using, or planning to us, an intrnal pric on carbon as an approach to managing carbon risk. It is particularly xciting to not that companis ar bginning to rport tangibl impacts as a rsult of using an intrnal carbon pric within thir businss planning procsss. Carbon pricing schms ar driving chang in corporat bhavior not yt, howvr, at th rat and scal ncssary to kp global tmpratur ris to wll blow 2 C. Whn companis and invstors intrnaliz th cost of carbon by attaching a montary valu to ach unit of CO ², it nabls thm to account for and manag carbon risk throughout thir oprations and supply chains, or thir portfolios. Companis do this whn thy raliz thy ar xposd to various forms of systmic risk and sk to manag it through pricing thir climat-rlatd missions. Businss dcision makrs may us carbon pricing as a tool to tst thir stratgy against futur scnarios or to hlp driv invstmnt towards climat-alignd corporat goals, b it an missions rduction targt, an nrgy rlatd challng, or th cration of a nw lowcarbon product lin. This lattr approach is an xciting nw dvlopmnt, as this rport discusss. A group of companis ar now rporting plans to tak thir us of an intrnal pric on carbon to th nxt lvl: using it to hlp xcut a corporat climat targt. Saint-Gobain and SUEZ, for xampl, hav assignd a highr pric for invsting in low-carbon R&D, whil Nissan applis it whn choosing btwn invstmnts that will hlp achiv thir mission rduction targts. Radrs will not that w hav includd a mssag from invstors in this yar s rport. Thr is a sachang happning in th invstmnt world on this issu and dmand for CDP data has dramatically incrasd on th part of invstors who ar rading th writing on th wall as thy sk to idntify high-carbon activitis in thir portfolios. Invstors and ownrs ar looking for clar signs that companis ar managing risk and sizing opportunitis, dmonstrating that thy can succssfully chart a cours into th conomy of th futur. Showing you ar mbdding climat chang into th hart of your businss stratgy is a critical part of this procss. Intrnalizing a pric on carbon and disclosing whn and how you us it can dmonstrat prpardnss for futur climat-rlatd challngs and opportunitis. W hop you find this rport usful for your own planning activitis, and w look forward to hlping companis and invstors to lowr thir carbon footprint, and thir carbon risk. { 05

Mssag from invstors Jack Ehns, CEO, CalSTRS Mats Andrsson, Formr CEO of AP4 and Vic-Chairman of th Global Challngs Foundation This rport coms at a critical tim in th global journy to tackl th risk that climat chang rprsnts. It is critical that companis dmonstrat how thy ar taking climat chang sriously and ar proprly managing it. Whil this matrial risk is somthing that pnsion funds such as CalSTRS and AP4 hav bn focusd on for many yars now, it is clar that w ar sing a progrssiv shift in how much attntion th invstmnt community at larg is placing on climat chang. This will hav a significant impact on how capital is allocatd in th futur. For CalSTRS, AP4 and othr long-trm invstors and sharholdrs, climat chang rprsnts a potntial prmannt capital loss and consquntly a significant drag on invstmnt rturns. As public pnsion funds, CalSTRS and AP4 hav hundrds of thousands of mmbrs and stakholdrs rlying on th scur rtirmnt futur that w ar hr to provid in prptuity it is absolutly critical that w tak action to guard against this risk. Th momntum and surrounding awarnss around th impacts of climat chang triggrd by th Paris Agrmnt is only on of th signs of chang flt by th financial community. 2016 is a big yar for our sctor as wll, with grn financ faturd as a major focus at th rcnt G20 mting in China, followd by th Task Forc on Climatrlatd Financial Disclosurs publishing its main rport bfor th nd of this yar. Th lattr rfrs to th task forc stablishd by th G20 s Financial Stability Board to dvlop consistnt, voluntary climat-rlatd risk disclosurs that companis can us whn providing information to invstors, lndrs, insurrs, and othr stakholdrs. Transparncy is vn mor vital than vr bfor. This incrasing focus on risk disclosurs signifis that th industry will b sking firm assuranc that th companis thy invst in hav rcognizd climat risk and ar proprly managing it. For companis, this mans not only managing thir xposur to climat impacts but also incrasing climat rgulation and rlatd conomic policis bing put into plac globally. To dlivr on thir goals, govrnmnts ar hard at work implmnting policis that incntiviz low-carbon and discourag high-carbon activitis. Ultimatly, ths policis will licit a chang in pric signals in th conomy, with high-carbon activitis bcoming cost-prohibitiv. Mor importantly, ths activitis cost th conomy much mor in trms of th incrasd risk thy bring, which is why govrnmnts incrasingly turn to carbon pricing as an ffctiv conomic tool for driving down missions. It is not a qustion of whthr or not companis will b rquird to pay a pric on carbon (ithr in th form of a tax or within a cap-and-trad systm) in fact, thy ar alrady rquird to do so in many placs, and it will not b long bfor ths prics will scalat across many of th world s markts. In our funds, w hav alrady bgun to idntify th worst prformrs th worst pollutrs in ach sctor to mitigat risk in our portfolio. W bliv that ths companis will b doubly hit in th conomy of th futur not only will thir P&L b damagd, but thy will also b significantly dvalud ovr th long-trm, which gratly concrns us as sharholdrs. Additionally, w ar activly ngaging with various companis to nsur our capital is allocatd to lowr-risk, highr-rturn activitis. Bcaus pnsion funds ar not only invstors but ownrs too, w play activ rols on slction committs for major companis which w own and can thrfor bring a significant voic as part of th discussion in th lif of a company and its ovrall govrnanc and prformanc. And no CFO wants to tll thir board that pnsion funds will no longr b invsting in thm as thy ar dmd unsustainabl ovr th long-trm. This is why it is critical that companis ar abl to dmonstrat how thy ar taking climat chang sriously and ar proprly managing it. As th momntum for full disclosur in this ara incrass, w will not only b looking at company missions but also analyzing how climat risk mitigation is mbddd within thir corporat stratgis. Thos companis who show invstors and ownrs that thy tak this issu sriously and hav a plan in plac to tackl it will njoy a lowr cost of capital in th futur against thos that don t. 06

This is why w ar plasd to s th growing trnd of companis intrnalizing th cost of carbon. CDP s rport documnts th growing trnd of companis disclosing that thy ar pricing carbon into thir invstmnt dcision-making procsss. This is simpl risk managmnt and in som sctors should b th norm. What is vn mor intrsting to s is th growing group of companis who st a corporat carbon pric and us it to dlibratly achiv a stratgic goal whthr to driv down missions, incras low-carbon assts or stimulat a nw climat-frindly lin of products. This clarly signals to us an important chang is undrway and th momntum is growing at a global scal. ar dmonstrating to sharholdrs that thy ar gradually maturing in thir approach to climat chang and thir knowldg-bas and undrstanding of th impacts of lack of action. This is why this rport and th work that CDP is undrtaking to incras corporat ngagmnt and disclosur in this ara is so vry important. W look forward to sing mor companis masuring thir carbon, pricing it, dlivring rductions and rporting on it in th coming yars. { Companis that st a maningful missions rduction targt and clarly pric carbon into thir corporat dcision making procss Jack Ehns CEO CalSTRS Mats Andrsson Formr CEO of AP4 Vic-Chairman of th Global Challngs Foundation 07

Latst trnds 1,249 companis ar disclosing to CDP thir plans or currnt practic of putting a pric on carbon missions bcaus thy undrstand that carbon risk managmnt is a businss imprativ. This rprsnts a 23% incras from 2015. Th us of intrnal carbon pricing is maturing and stablishing itslf as a drivr of ral chang. Mor than vr, invstors ar dmanding comprhnsiv climat disclosur including assuranc that companis ar adquatly lowring thir risk xposur to policis that plac a pric on carbon and rallocating capital toward aras of thir businss that will s a highr rturn in a low-carbon conomy. Disclosurs to CDP in 2016 captur th corporat rspons: 517 companis ar alrady using intrnal carbon pricing as an accounting and risk managmnt tool (19% incras from 2015), and an additional 732 disclos plans to implmnt on by 2018 (26% incras from 2015). Ths companis, across all industris and gographis, hav idntifid intrnal carbon pricing as an approach to building prudnt buffrs into thir businss modls to prpar for a carbonconstraind futur. Thy hav told CDP that mbdding th cost of carbon into oprations and conomic forcasts can hlp thm bttr mitigat th risks posd by xisting or mrging carbon pricing rgulations, prioritiz nrgy fficincy, and driv invstmnts in rnwabl nrgy purchass and othr GHG missions rduction activitis. This yar s data dmonstrats that th us of intrnal carbon pricing among corporations is also maturing and stablishing itslf as a drivr of ral chang in businss practics. 147 companis ar mbdding an intrnal carbon pric vr dpr within businss stratgis and across oprations in ordr to tak tangibl action on climat chang. Ths companis hav idntifid carbon pricing as a mchanism to systmatically achiv missions rductions and rlatd targts mandatd by managmnt. A sub-st of 37 companis dscrib a varity of ways in which this tool has dirctly impactd budgt allocations or invstmnt dcisions, which has rsultd in tangibl changs. Exampls includ shifting invstmnts toward nrgy fficincy masurs, low-carbon initiativs, nrgy purchass, and th dvlopmnt of low-carbon product offrings. Som companis cit th usfulnss of an intrnal pric on carbon in making th businss cas for low-carbon invstmnts, as it can improv th rturn on invstmnt (ROI) or an invstmnt s payback priod. This signifis a distinct shift in th us of intrnal carbon pricing: from an input in invstmnt dcisions to on that dirctly supports th xcution of climat targts. { 08 1 Anothr 1,223 companis did not rspond to th intrnal carbon pricing qustion (CC2.2c/S2.2c).

Corporat carbon pricing: 2016 in numbrs 23% incras from prvious yar 732 planning 1,249 total 517 pricing now 37 disclosing impact 147 mbdding in climat stratgy 3,234 not pricing 500+ potntially at rgulatory risk Intrnal carbon pricing: driving chang in businss practics Th imag to th lft illustrats th brakdown of CDP s global sampl of companis into stags of th intrnal carbon pricing procss: In th planning stag, 732 companis ar considring whthr an intrnal carbon pric can assist th businss s stratgic approach or oprations, or how thir businss should us a pric on carbon. 517 companis ar alrady utilizing an intrnal pric as an accounting and risk managmnt tool. Of ths, 147 companis ar taking this approach a stp furthr to actually mbd th pric as part of a stratgy to achiv an stablishd climat targt. 37 companis ar rporting tangibl rsults against targts. Companis not pricing Ovr 3,200 companis disclosd to CDP that thy do not us an intrnal pric on carbon and do not plan to adopt this approach in th nxt two yars.¹ Ovr 500 of ths ar in high-mitting industris (as opposd to th 370 in th sam industris who ar adopting a pric) with approximatly 400 bing hadquartrd in countris who ar ithr considring, ar currntly implmnting, or hav alrady implmntd, a pric on carbon. Th numbr of companis potntially at risk is likly to b vn largr givn th multinational natur of many of ths companis and th widr sctoral covrag of som carbon taxs. As data around carbon xposur continus to improv, invstors may qustion th risk-prpardnss of ths companis for climat rgulations. 1,223 not diclosing thir practic 09

Sctoral trnds This yar, 5,759 companis rspondd to CDP s 2016 climat chang and supply chain information rqusts. About on in fiv companis (1,249) disclosd that thy intrnaliz a carbon pric now, or plan to do so in th nxt two yars. Th graphic blow illustrats all companis who rspondd to th intrnal carbon pricing qustion,¹ arrangd in GICS Sctors, according to whthr thy rportd that thy us an intrnal pric on carbon now ( pricing now ) or plan to pric in th nxt two yars ( pricing by 2018 ). Companis who rportd that thy do not us an intrnal pric on carbon now and do not plan to adopt this practic in th nxt two yars, ar also citd ( not pricing ). 1 Data sampl only includs companis that rspondd to th intrnal carbon pricing qustion (CC2.2c/S2.2c). Th Utilitis and Enrgy Sctors hav th highst proportion of companis rporting that thy ar adopting a pric on carbon 63% of all Utilitis Sctor disclosrs and 52% of all Enrgy Sctor disclosrs. This compars with th Tlcommunication Srvics 40%, Matrials 35%, Financials 31%, Information Tchnology 25%, Consumr Stapls 24% and Industrials 23%, Consumr Discrtionary 22%, and Halth Car 19%. 99 Companis pricing vs. not pricing, by GICS sctor Pricing now Pricing by 2018 Matrials 135 54 119 Not pricing 40 96 436 Consumr Discrtionary Information Tchnology 82 623 400 138 60 Enrgy 18 47 65 Industrials 46 85 Financials 68 735 Consumr Stapls 417 303 12 11 22 68 Tlcommunication Srvics 33 47 Utilitis 18 63 145 Halth Car 10

Rgional trnds As th intrnational community movs towards implmnting th Paris Agrmnt, carbon pricing is sn by many as a ky mchanism driving missions rductions in th privat and public sctor. 2 2 World Bank and Ecofys. 2016. Carbon Pricing Watch 2016 (May), Washington, DC. Doi: 978-1-4648-0930-9-1 Licns: Crativ Commons Attribution CC BY 3.0 IGO. 3 Carbon Pricing: Th Paris Agrmnts Ky Ingrdint, IETA, and EDF. 2016. 4 Putting a Pric on Carbon with a Tax, World Bank. Rtrivd: http://www.worldbank.org/ contnt/dam/worldbank/documnt/sdn/ background-not_carbon-tax.pdf 5 Mapping Carbon Pricing Initiativs 2013 rcivd financial support from th CF-Assist Program, managd by th World Bank Institut (WBI) 6 Businss for Climat Platform Emissions Trading Systm EPC ETS. Cntro d Estudos m Sustntabilidad da EAESP and EPC. 2015. 7 Intrnational Carbon Action Partnrship (ICAP). China to cap missions from six sctors, ETS to launch 2016. ICAP. July 4, 2016. To dat, 180 nations hav signd th Paris Agrmnt, agring to limit global avrag tmpratur ris to wll blow 2 C compard with pr-industrial lvls. Ovr half of thos national govrnmnts plan to us carbon pricing and othr markt mchanisms to achiv thir missions rduction goals, as statd in thir nationally dtrmind contributions (NDCs). 3 This yar s rportd incras in companis intrnalizing or planning to intrnaliz a carbon pric is prvalnt in all rgions. Th ris is most vidnt in Brazil, China, India, Japan, Mxico, th Rpublic of Kora, and th U.S. It is still too arly to tll whthr ths changs com as a rsult of corporat ractions to th Paris Agrmnt, pric signals from national policis, or whthr thy ar indicativ of a nw corporat norm. Th numbr of U.S. companis rporting th us of an intrnal carbon pric continus to incras yaron-yar. In 2014 only 29 companis rportd using an intrnal carbon pric; today 80 ar pricing, with an additional 130 planning to implmnt on within two yars. Mxico and Brazil also xprincd larg jumps. Mxico has had a carbon tax on som fossil fuls sinc 2012 and rcntly announcd th potntial dvlopmnt of an missions trading schm (ETS) that would b implmntd in 2018. 4 In th past yar, th numbr of Mxican companis pricing carbon has doubld. For som tim, th World Bank has rportd that a trading schm is undr considration 5 in Brazil, but this has yt to b confirmd by Brazilian policymakrs. Evn without dfinitiv policy signals, th privat sctor has bn prparing. On initiativ brings togthr mor than 20 major Brazilian companis to simulat an ETS with liv company data. 6 This, alongsid th data trnds sn this yar, suggsts that Brazil is a markt to watch. Japan has also sn a significant incras in companis rporting that thy us, or plan to us, an intrnal carbon pric. Th country has had a carbon tax (which currntly stands at just ovr $2) on th us of fossil fuls sinc 2012 and an ETS systm in plac in th city of Tokyo sinc 2010. This approach to managing climat risk appars to b rising up th corporat agnda in India. Th Indian govrnmnt has in plac a numbr of policis that snd pric signals into th conomy around carbon missions, such as th coal css (tax) and th nw nrgy fficincy schm, Prform, Achiv and Trad (PAT). Chins companis hav startd to mobiliz. This coms against th backdrop of China piloting missions trading in four citis, two provincs and th spcial conomic zon of Shnzhn sinc 2013, ahad of th plannd introduction of a national schm in 2017. Early stimats suggst that up to 50% of China s GHG missions will b covrd by this schm, rprsnting a significant incras in th covrag of carbon pricing globally. According to rcnt rports, thr ar ight sctors which will b includd in th national systm, namly ptrochmicals, chmicals, building matrials, iron and stl, non-frrous mtals, papr production, lctricity gnration and aviation. 7 Embdding carbon costs into businss stratgy will bcom a ncssary part of doing businss in China for ths and rlatd sub-sctors in futur yars. { Notabl rgional incrass Country 2015 total 2016 total Incras from 2015 2016 Brazil 27 47 74% China 54 73 35% India 27 44 63% Japan 69 104 51% Mxico 13 26 100% Rpublic of Kora 48 64 33% 147 210 43% 11

Policy and carbon pricing Who prics carbon around th world? NORWAY 5 CANADA 47 EUROPEAN UNION RT A 385 AL BE BRITISH COLUMBIA QUÉBEC SWITZERLAND 210 19 RGGI* CALIFORNIA MEXICO BERMUDA 26 1 GUATEMALA COLOMBIA 1 14 COSTA RICA 2 ECUADOR 2 BRAZIL 47 PERU 2 AUSTRIA 5 BELGIUM 5 CZECH REPUBLIC 3 DENMARK 9 FINLAND 10 FRANCE 56 GERMANY 49 GREECE 5 HUNGARY 2 IRELAND 11 ITALY 24 LUXEMBOURG 3 NETHERLANDS 17 POLAND 4 PORTUGAL 6 SLOVAKIA 1 SPAIN 37 SWEDEN 14 UNITED KINGDOM 124 NIGERIA 1 SOUTH AFRICA 44 Existing policis Emrging policis ARGENTINA 4 Numbr of companis in ach country that rport using, or planning to us, an intrnal carbon pric. * Rgional Grnhous Gas Initiativ: U.S. Stats of Conncticut, Dlawar, Main, Maryland, Massachustts, Nw Hampshir, Nw York, Rhod Island, and Vrmont. 12 3 CHILE 4

RUSSIA 3 ESTONIA LATVIA REPUBLIC OF KOREA LITHUANIA CHINA 64 73 UKRAINE KAZAKHSTAN TURKEY JAPAN 104 TAIWAN ISRAEL 1 1 TOKYO TIANJIN JORDAN EGYPT 1 SAITAMA PROVINCE BEIJING 20 52 UNITED ARAB EMIRATES 2 KYOTO GUANGDONG PROVINCE INDIA SHENZHEN 44 THAILAND HONG KONG 10 6 CHONGQING PROVINCE HUBEI PROVINCE PHILIPPINES 4 MALAYSIA SINGAPORE 6 2 INDONESIA 3 AUSTRALIA 37 NEW ZEALAND 3 Carbon pricing policy information sourc: World Bank and Ecofys. 2016. Carbon Pricing Watch 2016 (May), Washington, DC. Not: Implmntd policis r-catgorizd as xisting, and schduld policis and policis undr considration r-catgorizd as mrging. 13

Disclosd prics by rgion Intrnalizing policy prics Canada Carbon prics by company, $USD/mtric ton $ UK carbon pric floor $25.71 Qubc CAT $12.60 Albrta SGER $15.33 BC carbon tax $22.99 Unitd Kingdom Carbon prics by company, $USD/mtric ton $ 20 80 61.27 11.49 15.32 11.49 25 22.98 22.98 22.98 22.98 22.98 22.98 22.98 22.98 22.98 22.98 13.79 11.49 11.49 11.49 11.49 11.49 11.49 9 75.83 86.04 53.15 40 33.51 32.08 27.71 25.08 24.64 24.64 24.64 24.64 24.64 24.64 24 23.92 23.92 23.48 23.48 23.33 23.33 21.29 17.50 17.50 11.17 10 42.12 38.29 30.64 125 291.65 Currnt or impnding policy rgulations ar snding strongr pric signals to a numbr of markts throughout th world. This yar s data shows that companis appar to b rsponding by pgging thir intrnal carbon prics to policy pric signals.¹ Intrnal carbon prics usd by companis in Canada rsmbl th pric lvls st by Provincial policis oprating in Québc, Albrta and British Columbia. Québc has a GHG cap and trad systm in plac with th currnt pric at around $12.60. Albrta s carbon tax is around $15.30. British Colombia s tax is $23. A national carbon pricing systm is also undr considration.² In South Africa, narly all disclosd corporat carbon prics follow th rang of prics ($3.27 $8.17) rlasd by th National Trasury Dpartmnt in rspct of th South African carbon tax. In th Rpublic of Kora, companis ar pgging thir prics to th prvailing markt pric within thir nwly stablishd ETS. A rang of prics may mrg in th futur, as som companis incras thir intrnal prics, particularly thos with oprations in othr countris or thos mbdding carbon risk mor dply into thir businss stratgy. Whil a clar pattrn is not vidnt in th prics that Japans companis disclos, many companis rport that thir intrnal pricing practic is influncd by th Tokyo ETS. A vast rang of prics ar usd by companis in Europ, coinciding with th varity of policis that oprat in th rgion, as wll as a history of activ ngagmnt by companis on climat. Currntly, 12 carbon tax systms, som of which hav bn in plac sinc 1990, sit alongsid th EU and Swiss mission trading systms, th UK s carbon pric floor, and th Frnch govrnmnt s plans to introduc a pric floor for th lctricity sctor. Notably, UK company prics ar trnding at th lvl of th UK s pric floor, around $25.70 in 2016. Thr is littl consistncy in th pricing procss and pric lvls among U.S. companis. Prics start as low as >$1 and rang as high as $150. Companis rportd rfrncs to th EU ETS and Californian Cap and Trad systm, ithr bcaus thy fall undr thir complianc, or in ordr to modl potntial futur pricing scnarios in th absnc of a fdral carbon pric. Othrs intrnaliz implicit carbon prics that alrady affct thir businss including nrgy pric forcasts, allowanc prics, costs of nrgy fficincy standards, all mannr of nvironmntal and rlatd complianc costs, and vn costs that might rsult from th U.S. Clan Powr Plan. This yar, two U.S. companis, Amrn Corporation and Covanta Enrgy Corporation, disclosd intrnalizing th U.S. Environmntal Protction Agncy s social cost of carbon. { 1 Corporat prics hav bn convrtd to USD/mtric ton, basd on an annual avrag xchang rat from Jun 2015 Jun 2016. Som companis disclos a rang, or multipl, intrnal carbon prics diffrntiatd by varying colors in th bar graphs abov. 2 Carbon pricing policy information sourc: World Bank and Ecofys, 2016. Carbon Pricing Watch 2016 (May), Washington, DC. (policy prics in USD basd on April 1, 2016 xchang rat) 14

Japan Carbon prics by company, $USD/mtric ton Europan Union Carbon prics by company, $USD/mtric ton $ Tokyo and Saitama ETS $31.19 $ EU ETS $5.92 South Africa Carbon prics by company, $USD/mtric ton $ $ 893.29 384.11 133.99 90 84.86 89.33 50.43 26.80 35.73 26.80 8.93 26.80 22.97 17.87 15.30 13.40 9.83 8.93 3.27 3.27 3.27 8.17 8.17 8.17 8.17 7.70 3.79 3.27 3.27 2.36 South African Carbon Tax (phas-in pric) $3.27 Koran ETS $16.12 South African Carbon Tax $8.17 8.17 8.17 8.17 Rpublic of Kora Carbon prics by company, $USD/mtric ton 85.75 19.72 16.46 16.29 14.58 12.68 12.68 8.57 8.57 55.84 83.77 39.09 50.26 80.42 23.34 78.18 69.25 5.58 67.01 64 55.84 54.03 50 22.34 44.68 40 39.09 35.74 33.51 33.51 33.51 30 27.92 27.92 18 25 22.34 22.34 12.29 22.34 7.82 22.34 15 6.70 13.40 12.29 12.29 11.49 11.17 11.17 11.17 10.05 9.42 8.94 8.94 8.23 8 7.82 7.82 7.82 7.82 6.70 5.58 5.58 5.58 4.86 3.35 2.23 150.78 15

A maturing practic Embdding an intrnal pric on carbon into businss stratgy This sction of th rport discusss th trnd of 147 companis that ar maturing in thir us of an intrnal pric on carbon. 16 Ovr 90 % of disclosing companis statd that climat chang poss an inhrnt risk to thir businss Ths companis ar using an intrnal carbon pric to implmnt or achiv an stablishd climat targt, allowing thm to furthr mbd climat chang considrations into businss dcisions. A sris of cas studis xamin th xprinc of svn companis that us this approach. Each study focuss on th company s ovrall approach to managing climat chang risks and opportunitis, and th rational for adopting a pric on carbon. Thy xamin how th pric is mbddd into businss stratgy to achiv implmnt or achiv climat targts. Th companis covrd ar hadquartrd in Europ, Japan, South Africa, and Turky and com from a rang of sctors. Almost all of th companis hav committd to stting scinc basd targts or disclos that thy anticipat doing so in two yars. Th cas studis rly upon information disclosd by th companis in rspons to th 2016 climat chang information rqust and furthr information supplid by th companis in subsqunt intrviws conductd by CDP. Managing climat risks and opportunitis Ovr 90% of disclosing companis statd in thir 2016 disclosurs that climat chang poss an inhrnt risk to thir businss. Ths companis highlightd a varity of risks, drivn by changs in th physical climat or rgulations concrning climat, that hav th potntial to gnrat a substantiv chang in businss oprations, rvnu, or xpnditur. Th majority of ths companis no longr simply track climat-rlatd risks but also includ thm in risk and opportunity analyss, thrby intgrating climat chang considrations into ovrall businss stratgis. Companis sking to oprationaliz climatconscious businss stratgis typically turn to climat targts that lowr risks by cutting missions and thir associatd costs. Climat targts can ncompass GHG missions rductions, nrgy fficincy, and rnwabl nrgy procurmnt goals among othrs. Som targts ar xprssd as aspirations to achiv carbon nutrality or to gain a comptitiv dg in th markt for co-frindly products and srvics. Smartly dsignd climat targts can rduc th burdn associatd with xisting or futur climat chang rgulations. A growing numbr of companis, 147, hav disclosd that thy ar adopting an intrnal pric on carbon in th implmntation of climat-conscious businss stratgis. Ths companis dscrib intrnal carbon pricing as a ky drivr in th xcution of climat targts spcifically pointing to th ralizd or anticipatd impacts on invstmnt dcisions that would lad to missions rductions. Exampls of this approach ar providd in th cas studis that follow. Companis idntify intrnal carbon pricing as an ffctiv tool in a numbr of ways, including: 1. It provids an incntiv or addd rason to rallocat rsourcs toward low-carbon activitis such as nrgy fficincy improvmnts, missions rductions, and rnwabl nrgy procurmnt ovr highcarbon activitis. Applying a carbon cost to such invstmnt dcisions supports a bttr rturn on invstmnt, thus crating a clar businss cas for thir xcution. Cas study xampls (p. 20 26): Arçlik, Harmony Gold Mining, Nissan, Novartis, Royal DSM, Saint- Gobain, SUEZ. Othr xampls: Sky Plc and Cummins Inc. Sky Plc Consumr Discrtionary, Unitd Kingdom [Sky uss] an intrnal pric of carbon to hlp us mak dcisions on th invstmnts w mak in nrgy fficincy and on sit rnwabl nrgy in addition to standard simpl pay back and Invstmnt Rats of Rturns (IRR) to hlp build a mor robust businss cas in invstmnts mad, particularly for th cas of on-sit rnwabl nrgy whn simpl pay backs ar typically longr than othr businss invstmnts mad Exampls of whr this has bn usd is in th invstmnt of on-sit rnwabls at our sit in Ostrly, Wst London, whr w hav invstd in xcss of 7m in a Combind Cooling and Hating Powr Plant (CCHP), 100KW wind turbin and PVs. Typically simpl pay backs for ths on sit rnwabls would b btwn 6 11 yars but whn th cost th intrnal pric of carbon is includd in th rviw including CRC costs, FIT tariffs and EU Emissions Trading thn th invstmnt is a mor positiv on ovr th long trm. Cummins Inc. Industrials, An intrnal pric of carbon is usd whn valuating funding of nrgy fficincy projcts Cummins is still at th stag of its nrgy fficincy projcts whr th pric of carbon is usually not a dtrmining factor in whthr a projct is fundd. Thr ar instancs, howvr, whn a projct may not hav a high rturn on invstmnt or mt othr financial hurdls but dos avoid a significant amount of GHGs, so projct may thn gt fundd in that way.

2. It is usd in dtrmining th businss cas for R&D invstmnts ncssary for nw low-carbon products and srvics; a priority for companis sking to cut missions from th manufacturing procss and attract nw businss from customrs intrstd in low-carbon, low-cost solutions. Cas study xampls: Saint-Gobain, SUEZ. Othr xampls: Anglo Amrican Platinum, Vina Concha y Toro SA. Anglo Amrican Platinum Matrials, South Africa Amplats mploys an intrnal pric of carbon for: Planning and justifying climat-rlatd invstmnts; Stimulating rsarch and dvlopmnt of PGM rlatd low carbon tchnologis such as ful clls; Idntifying and prioritising climat chang-rlatd risks and opportunitis; Incntivising fficincis across th businss; Buffring th impact of South Africa s proposd carbon tax; Gaining a long trm comptitiv advantag; and Engaging with supplirs on climat chang stratgis and grnhous gas rduction masurs. Vina Concha y Toro SA Consumr Stapls, Chil Viña Concha y Toro viws this intrnal pric of carbon as a ky stratgic lmnt, a practic that will mak all of our businss units awar of th impact w hav and how w can hlp fight Climat Chang. W also hop to hlp thm undrstand how Climat Chang can affct our own businss. Naturally, w xpct this intrnal carbon pric to stimulat innovation in our products and procsss, driving comptition and stimulating invstmnt in low carbon tchnologis. Intrnally, this carbon pricing works as a fund. 3. Assigning a financial valu to both mittd and avoidd carbon missions hlps rval hiddn risks and opportunitis in a company s own oprations and in its supply chain. This is particularly rlvant for companis navigating an array of carbon pricing rgulations bcaus thir oprations span multipl countris. Cas study xampls: Arçlik, Harmony Gold Mining, Nissan, Novartis, Royal DSM, Saint-Gobain, SUEZ. Othr xampls: Autodsk Inc., Kring. Autodsk, Inc. Information Tchnology, Autodsk blivs in taking bold action on climat chang. Stting an intrnal pric on carbon will not only nabl bttr dcision-making by aligning our own businss and invstmnts with a low-carbon conomy, but will also hlp us bttr undrstand and support our global customrs to rimagin, rinvnt, and rcrat th built world for vryon Kring Consumr Discrtionary, Franc Sinc 2012, Kring has bn working on th cration and dploymnt of its Environmntal Profit and Loss account (EP&L), th statd objctiv givn in 2012 bing to covr 100% of th Group s activitis by 2015 Th EP&L is an innovativ tool dsignd to assss impacts and rlianc on natural rsourcs. It maks it possibl to attribut a montary valu to th Company s nvironmntal impacts throughout its supply chain. Th EP&L is covring 6 indicators among which is GHG missions Carbon pricing and montization of othr ky nvironmntal indicators ld th Group to xplor nw sourcing stratgis for ky raw matrials { 17

Carbon pricing is alrady dlivring chang For th first tim, companis rportd sing a dirct link btwn pricing of carbon missions and th dlivry of a tangibl chang. A group of 37 companis alrady rport actual impacts on thir businss as a rsult of adopting an intrnal carbon pric. For xampl, som companis disclosd an intrnal carbon pric affcting budgt allocations or th cration of a nw businss function. It also impactd invstmnts, shifting capital towards nrgy fficincy masurs, low-carbon initiativs, nrgy purchass, and product offrings. This signifis a rising awarnss that corporat carbon pricing can driv activitis and invstmnts that dirctly support th xcution of climat targts. Whil most companis ar at th arly stags of this approach, thir xprincs illuminat a notworthy trnd, and prhaps an mrging bst practic, in th corporat us of intrnal carbon pricing.{ Businss stratgy dlivring climat outcoms Objctiv: Climat-alignd businss stratgy Implmntation tool: Carbon pric Effctiv carbon risk managmnt Emissions rductions Enrgy fficincy and rnwabl nrgy invstmnts Nw low-carbon products and srvics 18

EXAMPLES ENGIE Utilitis, Franc Th Group uss intrnal rgional carbon pric snsitivs to assss its invstmnts projcts Th impacts of carbon pricing scnarios on th nw invstmnt projcts proposals ar rviwd in light of th spcific contxt of th host country and of its rgulatory framwork, and inform dcision making. In 2015, th Group dcidd to no longr pursu nw dvlopmnts in coal, bliving that a carbon pric will stadily b stablishd in th world s various rgions and that coal-fird powr plants will b advrsly affctd in th futur. Socit Gnral Financials, Franc...th Group is on of th first banks to hav implmntd in 2011 an Intrnal Carbon Tax, currntly amounting to EUR 10 pr ton mittd. Th procds raisd in th businss lins ar usd to fund intrnal nvironmntal fficincy initiativs. Th goal of this schm is to show that nvironmntal masurs ar also opportunitis to crat valu and innovation for th bank Ovr th thr yars of this schm s xistnc, all 119 winning initiativs, involving building, IT, papr, transport or wast (sinc 2015), nabld annual rcurring savings of an avrag of EUR 13 million on ovrhads, an avrag of 4,700 tonns pr yar of CO ² and an avrag of 30 GWh of nrgy savings. Microsoft Corporation Information Tchnology, Th carbon f affcts invstmnt dcisions by providing both an incntiv and th financial justification for intrnal fficincy initiativs In FY15, th carbon f fund was usd to support invstmnts in: a. 14 intrnal fficincy initiativs that othrwis likly would not hav takn plac, for a projct liftim rduction of $596,395 and 8.896 mtco ². b. 2,699,210 MWh in grn powr in th Unitd Stats, arning Microsoft th U.S. Environmntal Protction Agncy (EPA) s Grn Powr Partnrship as th numbr two purchasr in th Unitd Stats. c. 18 carbon offst projcts in 16 countris to rduc narly 550,000 mtco ² and support th dvlopmnt of a low-carbon conomy in mrging nations. Bouygus Industrials, Franc Th intrnal pric of carbon is only concrning Bouygus Batimnt IDF s scop. This carbon fund is a Bouygus Construction projct which rsultd in th cration of a guid for co-frindly altrnativs. In 2015, thanks to th carbon fund, which was bing tstd, two construction projcts wr subsidisd in which low carbon co-frindly altrnativs could b usd. On of th projcts usd low-carbon concrt and th othr an altrnativ nrgy production mthod basd on a hat pump drawing nrgy from gry watr. TD Bank Group Financials, Canada Th larnings from our carbon nutrality and intrnal pric on carbon hav also drivn an incrasd commitmnt to dvloping a rang of low-carbon financial products including th financing for rsidntial rnwabls and nrgy fficincy projcts, insuranc for hybrid and lctric vhicls, and th issuanc of a $500 million grn bond. 19

Cas study Novartis GICS SECTOR Halth Car ANNUAL REVENUE US $49,414,000,000¹ Intrnal pric on carbon: $100 USD/mtric ton Enrgy fficincy & rnwabl nrgy Emissions rductions Emissions rduction targt² Absolut targt by 2020, 30% rduction and by 2030, 50% rduction of Scop 1 and 2 missions from 2010 baslin. Rportd missions (2015) Scop 1 533,736 mtric tons CO ² Scop 2 (location-basd) 1,085,252 mtric tons CO ² Scop 2 (markt-basd) 829,375 mtric tons CO ² Baslin missions (2010) Scop 1 617,909 mtric tons CO ² Scop 2 (location-basd) 1,062,041 mtric tons CO ² Scop 2 (markt-basd) 962,836 mtric tons CO ² Hadquartrs: Basl, Switzrland 1 All annual rvnu in USD, 2016 disclosur yar.rtrivd Sptmbr 15, 2016 from Bloombrg trminal. 2 Companis may hav othr missions rduction targts in addition to thos listd in ths studis. Novartis rports that climat chang could rsult in incrasd prics for ky inputs such as watr and nrgy, and xtrm wathr vnts could significantly impact supply chains or damag facilitis. Thy ar also at risk of incrasing costs linkd to th carbon missions associatd with thir manufacturing facilitis. Rcognizing this, Novartis discloss that it has dcidd to mbd climat chang into its corporat stratgy and has st itslf th targts of rducing combind Scop 1 and Scop 2 GHG missions by 30% by 2020, and 50% by 2030 from its 2010 baslin. Ths targts hav bn st basd on th blif that govrnmntal schms can only b succssful if privat sctor companis activly contribut with targts for thir own global oprations and products. Novartis is includd in th EU ETS with svral production sits locatd in EU mmbr stats. Th company nots that so far this has not drivn up oprating costs and Novartis has bn abl to sll surplus allowancs thanks to th succssful nrgy fficincy programs implmntd at ths sits. Yt thy highlight that this is likly to chang as th systm undrgos rform and as othr countris follow suit. Th company discloss that thy support th tru cost of carbon bing mbddd within th conomy, whthr through carbon taxs or cap and trad schms, as a tool that will b ffctiv in mitigating climat chang. For this rason and to hlp achiv thir climat goals, Novartis dcidd in 2015 to st an intrnal carbon pric of $100 USD/mtric ton of CO ². Thy rport that thy basd th amount on th World Bank's cost of climat chang to socity calculations. Using its carbon pric similar prics wr valuatd for othr nvironmntal impacts Novartis quantifid its ntir nvironmntal footprint in montary trms, whn participating in a pilot application of th rcntly launchd Natural Capital Protocol. Through this xrcis, Novartis was abl to stimat its global nvironmntal Profit and Loss for its own oprations and for its matrial supply chain. Novartis nots that thy bliv stting an intrnal pric on carbon will hlp idntify projcts that can cost-ffctivly rduc GHG missions, and will driv invstmnts into aras such as nrgy fficincy and using rnwabl nrgy sourcs to powr thir oprations. Th Ral Estat and Facilitis Srvics tams will prioritiz projcts that will hlp Novartis mt its 2020 GHG missions rduction targts, and th projcts will b approvd by top managmnt. Currntly, Novartis is invstigating projcts that could hlp rduc GHG missions by up to 185,000 mtric tons CO ². A major off-sit wind and svral on-sit solar powr purchas agrmnt options ar part of this valuation. Th company nots that an intrnal pric on carbon is hlping Novartis idntify projcts that rduc GHG missions, and gnrat a rturn on invstmnt.{ 20

Cas study SUEZ GICS SECTOR Utilitis ANNUAL REVENUE US $16,799,980,000 Enrgy fficincy & rnwabl nrgy Low-carbon products Emissions rductions Emissions rduction targt Absolut targt by 2030, 30% rduction of Scop 1 and 2 missions from 2014 baslin. Rportd missions (2015) Scop 1 6,364,728 mtric tons CO ² Scop 2 1,790,762 mtric tons CO ² Baslin missions (2014) Scop 1 6,086,997 mtric tons CO ² Scop 2 1,796,765 mtric tons CO ² Hadquartrs: La Défns, Franc Within its 2015 2030 climat roadmap, SUEZ announcd a nw businss stratgy that prioritizs actions that will nabl th businss to mitigat th causs and adapt to th consquncs of climat disruption. SUEZ has st a targt of 30% rduction of Scop 1 and Scop 2 combind missions by 2030, using its 2014 missions as a baslin, as wll as an objctiv to rach 60 million mtric tons of CO ² avoidd for its customrs on th 2015 2020 priod through wast and wastwatr rcovry. Th company nots that a cntral componnt of its nvironmntal commitmnts is support for a rliabl xtrnal pric on carbon, which it says will rinforc th markt of rcycld products and acclrat th dvlopmnt of wast tratmnt activitis in dvloping countris. Additionally, SUEZ has adoptd an intrnal pric on carbon this yar. From now on, SUEZ committd to tak into account carbon pricing signals within its invstmnt dcisions and its rsarch and dvlopmnt programs to acclrat th implmntation of circular conomy, th only modl of growth which can structurally rduc grnhous gass missions. Jan-Louis Chaussad, CEO highr) pric will hlp orint rsarch and dvlopmnt towards lss carbon-intnsiv tchnologis. A third approach will consist of systmatically masuring th prformanc of th company s low-carbon products and srvics and calculating th associatd carbon goodwill, in ordr to dmonstrat thir bnfits compard to altrnativs. This way, SUEZ blivs that it can incntiviz clints to choos low-carbon options by rvaling cost savings and GHG missions avoidd or rducd and thus hlp thm to achiv thir mandatory or voluntary carbon commitmnts. Whil at th group-lvl th intrnal pric on carbon is a nw innovation, som parts of SUEZ s businsss hav mployd this tool for som tim. SUEZ nots that in th cas of Bristol Watr, it has hlpd th company to navigat th Unitd Kingdom's Carbon Rduction Commitmnt, which applis a carbon tax of 16 pr mtric ton CO ². Using an intrnal carbon pric has hlpd Bristol Watr to manag and rduc its carbon tax bill by prioritizing invstmnts that rduc nrgy us. SUEZ says that th pric is also linkd to Bristol Watr s goal to rduc its missions by 75% by 2040. To mt this targt, th company uss a shadow pric of carbon to driv invstmnts in low-carbon tchnologis. For xampl, it ld to th dcision to install nw watr pumps that offr suprior nrgy prformanc. Th pric improvd th rturn on invstmnt that could b ralizd as a rsult of making th invstmnt. { SUEZ rports that it will us a pric on carbon in thr ways. On pric will apply to capital invstmnt dcisions to bring GHG missions prformanc as a concrt critrion in projct invstmnts, incrasing long-trm profitability of low-carbon solutions. Anothr (significantly 21

Cas study Saint-Gobain GICS SECTOR Industrials ANNUAL REVENUE US $43,981,860,000 Emissions rductions Enrgy fficincy & rnwabl nrgy Low-carbon products Emissions rduction targt Intnsity targt by 2025, 20% rduction of Scop 1 and 2 missions from 2010 baslin at iso-production. Rportd missions (2015) Scop 1 9,528,115 mtric tons CO ² Scop 2 (location-basd) 3,619,635 mtric tons CO ² Baslin missions (2010) Scop 1 12,976,886 mtric tons CO ² Scop 2 (location-basd) 4,461,638 mtric tons CO ² Hadquartrs: Courbvoi, Franc Saint-Gobain, a Frnch multinational building matrials manufacturr, discloss that an intrnal pric on carbon will b usd as a dcision support tool to prioritiz and manag CO ² action plans. Th company discloss that its CO ² approach faturs a st of group-wid climat goals, including its currnt intnsity targt of cutting 20% of GHG missions by 2025 from a 2010 baslin, and a nw st of scinc-basd missions rduction targts that ar currntly undr dvlopmnt. Introducd in arly 2016, Saint-Gobain highlights that it xpcts an intrnal pric on carbon will impact its CO ² rduction targts through th us of it in: Masuring and incorporating th currnt and anticipatd futur impacts of rgulatory carbon prics into th company s risk managmnt stratgy; Idntifying growth opportunitis in low-carbon innovations, and rdircting capital xpnditur and R&D in lin with nw opportunitis; and Managing priority actions to rduc CO ² missions. Stting ambitious carbon pricing lvls that ar in lin with Saint-Gobain s objctivs contributs to rinforc our commitmnt to fight for th climat. Pirr-André d Chalndar, Chairman and CEO Saint-Gobain discloss that it will us two prics to dnot th two ways in which a pric on carbon will b applid in th businss. On carbon pric will b applid to capital xpnditur projcts abov a crtain thrshold, to nrgy sourc invstmnts, and to nrgyrlatd invstmnts at th company s currnt sits that consum mor than 10GWh annually. In its disclosur to CDP, Saint-Gobain rports that a carbon pric will b usd in th stratgy and plans of its plants that ar includd in th EU ETS in ordr to incntiviz invstmnt in nrgy fficincy quipmnt so as to manag a worst cas scnario that, aftr 2020, it no longr rcivs fr allowancs undr th EU ETS, which would lad to highr oprational costs. Anothr carbon pric, markdly highr, will b usd to driv invstmnts in R&D that will acclrat th dlivry of brakthrough tchnologis. Saint- Gobain rports that th us of a pric on carbon in this mannr will b instrumntal in its businss plan to incras markt shar in nrgy-saving products for xisting-building and nw-building markts. Saint-Gobain rports that its intrnal pric on carbon will b applid to all corporat activitis across 66 countris (many of which ar not prsntly subjct to rgulatory pricing) and will impact th company s scop 1, 2 and 3 missions. { 22

Cas study Nissan Motor Co., Limitd GICS SECTOR Consumr Discrtionary ANNUAL REVENUE US $101,400,000,000 Emissions rductions Enrgy fficincy Emissions rduction targt Absolut targt by 2050, 24% rduction of Scop 1, 2 and 3 missions from 2000 baslin. Product targt by 2050, nw-vhicl missions rduction by 90% from 2000 baslin. Rportd missions (2015) Scop 1 928,236 mtric tons CO ² Baslin missions (2000) Scop 2 (location-basd) Scop 2 (markt-basd) Scop 1+2 (markt-basd) +3 (downstram) 3,111,678 mtric tons CO ² 2,547,951 mtric tons CO ² 135,000,000 mtric tons CO ² Hadquartrs: Yokohama, Japan Nissan is dvloping low to nar-zro carbon mission motor vhicls as part of its rspons to th risks and opportunitis prsntd by climat chang. It discloss that its vhicl th LEAF is th first mass-markt, pur-lctric vhicl launchd globally, and is now th bstslling EV in history. Nissan nots that its approach is supportd by customrs, who hav told this global auto makr that ful consumption and vhicl CO ² missions ar priority issus. This long trm businss stratgy is rflctd in a goal to rduc nw-vhicl GHG missions by 90% by 2050 compard to 2000 lvls. Across all aspcts of th company s oprations in ovr 20 countris, Nissan discloss an absolut targt of a 24% rduction in scops 1, 2 and 3 GHG missions by 2050. Nissan s stratgy is also vidnt in th invstmnts it has mad in low- to zro-carbon tchnologis, such as vhicl lctrification and lithium-ion battris. Svnty prcnt of Nissan s annual rsarch and nginring budgt will b allocatd to nvironmntal tchnologis during th Nissan Grn Program, which is a six-yar program running from 2011 to 2016. This is quivalnt to 300 billion JPY annually for 6 yars. Whil invsting in lctric vhicls involvs considrabl costs, Nissan ss th potntial for big rturns on invstmnt in th futur at th sam tim, thy ar supporting th achivmnt of what thy call a zro mission socity. An intrnal pric on carbon is usd in th capital allocation procss: GHG missions rduction is on of th most crucial paramtrs in Nissan s invstmnt plan slction procss. Proposals ar compard and slctd basd on carbon missions rduction pr unit cost of invstmnt, as wll as th nrgy rduction potntial, masurd with an intrnal pric of carbon. Whil Nissan did not disclos its pric lvl, th company did shar that th procss involvd stting a GHG rduction targt first, with th pric lvl linkd to th costs and rturns that invstmnts undrtakn in ordr to mt th targt. { 23

Cas study Arçlik A.S. GICS SECTOR Consumr Discrtionary ANNUAL REVENUE US $5,225,270,000 Enrgy fficincy & rnwabl nrgy Emissions rductions Emissions rduction targt Absolut targt by 2020, 60% rduction and by 2040, 100% rduction of Scop 1 and 2 missions from 2010 baslin. Rportd missions (2014) Scop 1 64,888 mtric tons CO ² Scop 2 22,091 mtric tons CO ² Baslin missions (2010) Scop 1 77,038 mtric tons CO ² Scop 2 80,687 mtric tons CO ² Hadquartrs: Istanbul, Turky Arçlik discloss that it ss climat chang as both a ky risk and opportunity for its businss and has mbddd climat chang into th hart of its stratgy. Th company highlights that thy focus on having a product lin of houshold appliancs that ar as nrgy fficint as possibl. It rports that it has st a nt zro missions targt for its domstic production plants by 2040, with an intrim goal of a 60% rduction by 2020. Additionally, Arçlik nots that it anticipats stting a scinc-basd targt in th nxt two yars. Th company rports that it aims to mt its targts through projcts in nrgy fficincy and nrgy gnratd from rnwabl sourcs, as wll as through carbon offsts to mt its 2040 goal. Th company discloss that it plans to purchas 100% rnwabl lctricity by 2020. Dspit thr not bing any immdiat risks of a carbon pric in Turky, Arçlik has dcidd to us an intrnal pric to hlp it achiv its aims. Th company rports that it will introduc a carbon f basd on th GHG missions of ach of its dpartmnts. Each corporat division will b rquird to contribut a sum of mony to a company-wid carbon fund, thir contribution will b proportional to what ach is rsponsibl for mitting. Using th rvnu that th carbon f gnrats, th fund will invst in carbon rduction projcts, such as nrgy fficincy, rnwabl nrgy, and similar nvironmntal initiativs. Arçlik did not disclos th valu it uss to pric carbon. Th company s Sustainability Committ, hadd by Arçlik s Chif Financial Officr, is ultimatly rsponsibl for th coordination of th carbon pric and fund. Arçlik s rportd that its scop 1 and 2 missions droppd 38% in 2014 from 2013 lvls. Arçlik invstd in svral nrgy fficincy projcts that cut 3,812 mtric tons CO ² in 2014, accounting for about 7% of rductions achivd that yar. Th rmaining 93% was du to th purchas of lctricity gnratd by rnwabl nrgy sourcs. In 2014, 78% of th lctricity Arçlik usd cam from rnwabl nrgy sourcs compard with 28% in 2013 and 1% in 2012. It has don this through purchasing from rnwabl nrgy supplirs and is now considring possibl rnwabl nrgy production invstmnts. { 24

Cas study Harmony Gold Mining Company Limitd GICS SECTOR Matrials ANNUAL REVENUE US $1,272,390,000 Emissions rductions Enrgy fficincy Emissions rduction targt Absolut targts by 2025, 22% rduction of Scop 2 missions from a 2015 baslin. By 2045, 90% rduction of Scop 1 and 2 missions from 2015 baslin. Rportd missions (2015) Scop 1 66,902 mtric tons CO ² Scop 2 (location-basd) 2,686,401 mtric tons CO ² Baslin missions (2015) As abov Hadquartrs: Randfontin, Gautng, South Africa Harmony is a gold mining and xploration company with oprations in South Africa and Papua Nw Guina. Th company highlights that it aims to st a prcdnt for th South African mining industry in rnwabl nrgy invstmnt and GHG missions rduction and plans to obtain at last 50% of its futur lctricity from rnwabl sourcs. It discloss that it anticipats stting a scinc basd targt within th nxt two yars. Harmony rports that it uss an intrnal pric on carbon basd on th carbon tax du to b implmntd in South Africa in 2017. According to its disclosur, it will not b xposd to th tax dirctly until 2020, but has assumd an intrnal pric into th planning of its oprations from 2016 nvrthlss. Intrnalizing a pric on carbon has shown th company that som of its mor marginal assts will no longr b profitabl in th futur onc carbon taxation bgins. It nots that this is on of th rasons it has dcidd to shift its businss stratgy to rducing its missions and nrgy intnsiv assts. Th company highlights that it uss th pric to: Undrstand th influnc of carbon pricing on th conomis and viability of Harmony s businss Adapt to th ffcts of a changing climat Driv invstmnt in mission rduction projcts Rduc risks and idntify opportunitis Ensur th long trm sustainability of th businss in th grn conomy Position itslf for th potntial impacts of climat chang Additionally, Harmony discloss that th ffcts of climat chang pos potntial risks for Harmony's oprations, particularly in trms of potntial watr shortags. This has also influncd th company's stratgy in this ara, lading to invstmnts and tchnical changs that maximiz rcovry of watr for r-us in som of it major mins, for xampl. In 2015, Harmony invstd in 12 nrgy and watr managmnt projcts, and has 19 ongoing projcts that it rports will hlp sav 64,040 MWh pr yar. It furthr rports that th 17 nrgy fficincy projcts plannd for 2016 will sav 82,301 MWh pr yar. It plans to utiliz th intrnal pric on carbon to hlp crat th invstmnt cas for ths projcts and will b abl to rport on th succss of this stratgy in futur disclosurs. { 25

Cas study Royal DSM GICS SECTOR Matrials ANNUAL REVENUE US $8,571,490,000 Intrnal pric on carbon: 50/mtric ton Emissions rductions Emissions rduction targt GHG fficincy targt by 2025, 45% rduction of Scop 1 and 2 missions from 2008 baslin. Rportd missions (2015) Scop 1 608,762 mtric tons CO ² Scop 2 458,643 mtric tons CO ² Baslin missions (2008) Scop 1 3,218,000 mtric tons CO ² Scop 2 1,076,000 mtric tons CO ² Hadquartrs: Hrln, Nthrlands Royal DSM, a Dutch multinational company activ in halth, nutrition and matrials, rports that it has rcognizd climat chang as a socital mgatrnd for ovr a dcad. Rflcting this, it highlights that it has mbddd in th cor of its businss stratgy th objctivs of rducing its own carbon footprint and crating an nabling nvironmnt for its low-carbon products. In 2016, Royal DSM rportd a nw targt to improv its GHG fficincy by 45% by 2025 from 2008 lvls. Royal DSM uss an intrnal pric of carbon with a valu of 50/mtric ton, xcding th pric in th EU ETS, which it trads in. Th company rportd that it st this pric for us in th valuation of larg invstmnt projcts so th financial impact of GHG missions could b accountd for: In ordr to ncourag invstmnts in low-carbon or carbon fr tchnologis, th Excutiv Committ dcidd to includ th financial impact of GHG missions (scops 1 and 2) through intrnal carbon pricing in th valuations of larg invstmnt projcts from 2016 onwards. This also srvs to prpar Royal DSM for th financial impact of an xtrnal carbon pric, which is on of th lmnts of th comprhnsiv climat dal that was struck in Paris in Dcmbr 2015 during COP21. For ach larg invstmnt proposal, two businss cass hav to b prsntd. On without and on with an intrnal carbon pric of 50 /t CO ². Th main bnfit is to mbd th considration of a pric on carbon into th gnral convrsation in a vry systmatic way within th company; that it bcoms a part of our languag in th sam way w would talk about any othr mbddd costs within our projcts. Graldin Matchtt, Chif Financial Officr Th company nots that in th arly phas of using th pric, it was addd to projcts alrady undrway to rval how dcisions could hav bn impactd by an intrnal pric. Sinc th full implmntation of this corporat dirctiv in 2016, Royal DSM has obsrvd th advantag of bing abl to mbd sustainability considrations mor ffctivly at an arly point in th dsign stag of projcts, whn fundamntal dcisions that positivly contribut to th company s climat chang objctivs can b radily mad. Th company s prliminary obsrvation is that th intrnal carbon pric is bing usd during concptual nginring to valuat and slct diffrnt nginring options. In coming yars, Royal DSM discloss that it will undrtak an valuation of th impact of its intrnal pric on carbon on th company s low-carbon invstmnt dcisions, and its climat chang and businss objctivs. { 26

Appndix CDP Climat Chang Qustionnair Guidanc: Effctivly answring th intrnal carbon pricing qustion Qustion CC2.2c Dos your company us an intrnal pric on carbon? Ys No, but w anticipat doing so in th nxt 2 yars (this choic is for companis that ar planning to stablish and implmnt an intrnal carbon pric) No, and w do not currntly anticipat doing so in th nxt 2 yars Qustion CC2.2d Plas provid dtails and xampls of how your company uss an intrnal pric on carbon Plas rspond using th txt box providd, whr possibl dtailing Scop that th missions prtain to (i.. Scop 1, Scop 2 and/or Scop 3) Typ of intrnal carbon pricing Rational for mploying a pric Actual pric(s) usd and varianc (.g. by tim or rgion, or by th way it is usd across th businss or in spcific businss units or corporat divisions) Procss to dtrmin pric(s) and businss division rsponsibl Exampls of how carbon pricing has affctd your businss (.g. businss stratgy, risk assssmnt or valuation, missions rduction, invstmnt dcisions) Challngs with this procss

Africa Carbon pric disclosur by GICS sctor 21 companis in Africa ar pricing carbon now.¹ Companis currntly using an intrnal pric on carbon Consumr Stapls Company Country Pric (US$)² Impact³ Targt 4 Illovo Sugar Ltd South Africa Pick 'n Pay Stors Ltd South Africa 8.17 Tigr Brands South Africa 8.17 Enrgy Exxaro Rsourcs Ltd South Africa 8.17 Sasol Limitd South Africa Financials Barclays Africa South Africa Currncy convrsion information Currncy Exchang rat (to USD) AUD 1.36 BRL 3.55 CAD 1.31 CHF 0.97 CNY 6.49 EUR 0.90 GBP 0.69 HKD 7.76 HUF 280.13 INR 66.55 JPY 111.95 KRW 1166.20 MXN 17.86 NOK 8.33 Ndbank Limitd South Africa Rdfin Proprtis Ltd South Africa 8.17 Halth Car Ntcar Limitd South Africa Industrials Group Fiv Ltd South Africa 3.27 Murray & Robrts Holdings Limitd South Africa Transnt South Africa Matrials Anglo Amrican Platinum South Africa 3.27 8.17 AngloGold Ashanti South Africa 7.70 Arclor Mittal South Africa Ltd South Africa Gold Filds Limitd South Africa 3.79; 5 Harmony Gold Mining Co Ltd South Africa 3.27 Kumba Iron Or South Africa 3.27 8.17 Sibany Gold Ltd South Africa 2.36 RUB 65.76 THB 35.26 TRY 2.90 Tlcom. Srvics MTN Group South Africa TWD 32.35 USD 1.00 ZAR 14.68 1 On company submittd privat rsponss and is not listd in th appndix. 2 All prics hav bn convrtd to USD/ mtric ton, basd on an annual avrag xchang rat from Jun 2015 Jun 2016. Som companis disclos a rang of prics (x: 10-50), or multipl (x: 10; 50) intrnal carbon prics. 3 A company is taggd for impact if thy disclosd a tangibl chang in thir businss practic as a rsult of applying an intrnal carbon pric 4 A company is taggd for targt if thy disclos using an intrnal carbon pric to xcut a climat-rlatd objctiv. Companis that anticipat using an intrnal pric on carbon in th nxt two yars Consumr Discrtionary Industrials Imprial Holdings, South Africa Avng Ltd, South Africa Woolworths Holdings Ltd, South Africa Basil Rad, South Africa Grindrod Ltd, South Africa Consumr Stapls Runrt, South Africa Ssic, Egypt Goldn Sugar Company Ltd, Nigria Matrials RCL Foods Ltd, South Africa African Rainbow Minrals, South Africa Tongaat Hultt Ltd, South Africa Nopak, South Africa Northam Platinum Ltd, South Africa Financials Sappi, South Africa Emira Proprty Fund, South Africa Librty Holdings Ltd (incorporating Librty Tlcommunication Srvics Lif Group Ltd), South Africa Tlkom SA Limitd, South Africa Standard Bank Group, South Africa Vodacom Group, South Africa Halth Car Mdiclinic Intrnational, South Africa 28

Asia Carbon pric disclosur by GICS sctor 122 companis in Asia ar pricing carbon now.¹ Companis currntly using an intrnal pric on carbon Consumr Discrtionary Company Country Pric (US$) Impact Targt Hoi Lung Shaoguan Hongda Gar Co., Ltd China China Mahindra & Mahindra India Bnss Holdings, Inc. Japan 13.40 Mazda Motor Corporation Japan NGK Spark Plug Co., Ltd. Japan 384.11 Nissan Motor Co., Ltd. Japan Toyota Motor Corporation Japan Coway Co Ltd Rpublic of Kora 8.57 Hankook Tir Co Ltd Rpublic of Kora 12.68 LG Elctronics Rpublic of Kora Consumr Stapls KAO Corporation Japan Lawson, Inc. Japan 22.97 Mgmilk Snow Brand Co.,Ltd. CJ Chiljdang KT&G Japan Rpublic of Kora Rpublic of Kora Enrgy Essar Oil India 15.00 JX Holdings, Inc Japan S-Oil Corp Rpublic of Kora 14.58 PTT Thailand 18.70 PTT Exploration & Production Public Company Limitd Thailand Financials Swir Pacific Hong Kong Daito Trust Construction Co., Ltd. Japan 50.43 Mori Building Co, Ltd. Japan Nomura Holdings, Inc. Japan Sompo Japan Nipponkoa Holdings, Inc Japan 26.80 35.73 Sumitomo Mitsui Trust Holdings, Inc. Japan KB Financial Group Rpublic of Kora 16.29 Halth Car Mindray Mdical Intl Ltd-Adr China Astllas Pharma Inc. Japan 893.29 Industrials Cathay Pacific Airways Limitd Hong Kong Hong Kong Aircraft Enginring Hong Kong 3.38 1 27 companis submittd privat rsponss and ar not listd in th appndix. Dai Nippon Printing Co., Ltd. Japan Daifuku Co., Ltd. Japan East Japan Railway Company Japan IHI Corporation Japan Kawasaki Kisn Kaisha, Ltd. Japan 90.00 Kokuyo Co., Ltd. Japan 9.83 29

Asia Carbon pric disclosur by GICS sctor Continud from prvious pag Company Country Pric (US$) Impact Targt Industrials, continud Information Tchnology Kyodo Printing Co., Ltd. Japan Taisi Corporation Japan Toto Ltd. Japan Doosan Havy Industris & Construction Rpublic of Kora Global Brands Manufactur Ltd Taiwan 3NOD China Faratronic China MingJi China Tch Mahindra India Canon Inc. Japan Citizn Holdings Co., Ltd. Japan 8.93 26.80 FujiFilm Holdings Corporation Japan Hiros Elctric Co., Ltd. Japan Hitachi, Ltd. Japan NEC Corporation Japan Rohm Co., Ltd. Japan Daduck Elctronics Co., Ltd. Rpublic of Kora Samsung Elctro-Mchanics Co., Ltd. Rpublic of Kora Samsung Elctronics Rpublic of Kora Simmtch Co., Ltd. Rpublic of Kora 16.46 AU Optronics Taiwan Darfon Elctronics Corp Taiwan 6.17 Dlta Elctronics Taiwan 3.08 Macronix Intrnational Taiwan 10.00 Young Lighting Tchnology Inc. Taiwan Zhn Ding Tchnology Holding Ltd Taiwan Matrials Bijing Whaton Glass China 6.17 Lunchong China ACC India Ambuja Cmnts India Dalmia Cmnt (Bharat) Limitd India Shr Cmnt India 2.12 ASAHI PRINTING Japan Dnka Company Limitd Japan 17.87 Hitachi Chmical Company, Ltd. Japan JSR Corporation Japan 26.80 Mitsui Chmicals, Inc. Japan Showa Dnko K.K. Japan Sumitomo Chmical Co., Ltd. Japan Toyo Ink SC Holdings Co., Ltd. Japan Ub Industris, Ltd. Japan 8.93 30

Company Country Pric (US$) Impact Targt Matrials, continud Hansol Papr Co Rpublic of Kora 8.57 Kumho Ptrochmical Rpublic of Kora LG Chm Ltd Rpublic of Kora Lott Chmical Corp Rpublic of Kora Lott Fin Chmical Rpublic of Kora POSCO Rpublic of Kora Tlcom. Srvics KDDI Corporation Japan 84.86 89.33 NTT DOCOMO, Inc. Japan Tru Corporation Thailand 5.67 Utilitis Osaka Gas Co., Ltd. Japan Th Tokyo Elctric Powr Company Japan Holdings, Inc (TEPCO) Tokyo Gas Co., Ltd. Japan Kora District Hating Corp. Rpublic of Kora Kora East-Wst Powr Rpublic of Kora 19.72 Kora Elctric Powr Corp Rpublic of Kora Kora Gas Corp Rpublic of Kora 85.75 Companis that anticipat using an intrnal pric on carbon in th nxt two yars Consumr Discrtionary Bstway (Hong Kong) Int, China Guangzhou Huabao Glass Co Ltd, China Minth Group Ltd, China Nostra, China Shandong Hlon Polytx, China Top Victory Elctronics(Fujian) Co. Ltd, China Wstfild Outdoor, Inc., China Yuli, China Zinwll Corporation, China Arvind Ltd, India Bharat Forg, India Tata Motors, India Asics Corporation, Japan Dntsu Inc., Japan Honda Motor Company, Japan Marui Group Co., Ltd., Japan Nikon Corporation, Japan Panasonic Corporation, Japan Dong Yang Piston Co., Ltd., Rpublic of Kora Ducksan co., Ltd., Rpublic of Kora ra Automotiv Systms Co., Ltd, Rpublic of Kora Eunsung txtil co,. ltd., Rpublic of Kora Hansoll Txtil Ltd, Rpublic of Kora Hotl Shilla Co., Ltd., Rpublic of Kora Korns Inc., Rpublic Of Kora SL Corp, Rpublic of Kora Consumr Stapls Fr-Fr Industrial Co, China Ningbo Ji Ming Elctric Applianc, China Zhjiang Axilon Shunhua Aluminum & Plastic Co., Ltd, China Hayco, Hong Kong Godrj Consumr Products, India Tata Global Bvrags, India NH Foods Ltd., Japan Nihon Kajitsu Kogyo Co., Ltd, Japan Shisido Co., Ltd., Japan Olam Intrnational, Singapor Charon Pokphand Foods PCL, Thailand 31

Asia Carbon pric disclosur by GICS sctor Continud from prvious pag Companis that anticipat using an intrnal pric on carbon in th nxt two yars Enrgy Inpx Corporation, Japan Financials Zhjiang Yat Elctrical Applianc Co., Ltd.,China Mahindra & Mahindra Financial Srvics, India Mahindra Lifspac Dvloprs Limitd, India Stat Bank of India, India YES Bank Limitd, India Daiwa Hous Industry Co., Ltd., Japan ORIX Corporation, Japan Svn Bank, Ltd., Japan Tokio Marin Holdings, Inc., Japan Hana Financial Group, Rpublic of Kora Industrial Bank of Kora, Rpublic of Kora Samsung Fir & Marin Insuranc, Rpublic of Kora Samsung Scuritis, Rpublic of Kora City Dvlopmnts Limitd, Singapor Kasikornbank, Thailand Halth Car Fnda, China Shngda, China Dr. Rddy s Laboratoris, India Nitin Lif Scincs, India Piramal Entrpriss, India ZCL Chmicals, India Daiichi Sankyo Co., Ltd., Japan Industrials Bauty Star, China China Stat Construction Intrnational Holdings Ltd, China Cixi Zhongfa Lamps, China Cosco Containr Lins Co., Ltd, China Hurrytop China Ntwork Logistics, China Jutng, China Ningbo Jiayin, China Ningbo Klit, China Sngld Optolctronics Co.,Ltd, China Suzhou Victory Prcision Manufactur Co., Ltd, China Victory Giant Tchnology, China Zotac, Hong Kong Jain Irrigation Systms, India Furukawa Elctric Co., Ltd., Japan Kajima Corporation, Japan Shimizu Corporation, Japan Sumitomo Havy Industris. Ltd., Japan Pacific Intr-link Sdn Bhd, Malaysia Dawoo E&C, Rpublic of Kora Hanjin Logistics, Rpublic of Kora Hyundai E&C, Rpublic of Kora Hyundai Glovis Co Ltd, Rpublic of Kora JK Lighting, Rpublic of Kora KCC, Rpublic of Kora Samsung C&T, Rpublic of Kora Samsung Havy Industris Co Ltd, Rpublic of Kora Taihan Elctric Wir, Rpublic of Kora King Slid Tchnology Co., Ltd, Taiwan YZC Kunshan, Taiwan Information Tchnology BOE Tchnology Group Co.,Ltd., China Cint Tchnologis, China Cybrtan Tchnology Inc, China Foundr PCB, China Huafng, China Shandong Saint Elctronics, China Shanghai Mixing, China Shnzhn Grntch, China Shnzhn Sun And Lynn, China Sirtc, China T&W, China Tongyu, China YanTat Printd Circuit (Shnzhn) Co., Ltd, China Infosys Limitd, India Brothr Industris, Ltd., Japan Fujitsu Ltd., Japan Konica Minolta, Inc., Japan Nomura Rsarch Institut, Ltd., Japan Ricoh Co., Ltd., Japan TDK Corporation, Japan Tchsap Asp Sdn Bhd, Malaysia Dawon Smiconductor Packaging Industrial Co Ltd, Rpublic of Kora ISU Ptasys Co Ltd, Rpublic of Kora LG Display, Rpublic of Kora LG Innotk, Rpublic of Kora Samsung SDI, Rpublic of Kora 32

SK Hynix, Rpublic of Kora Elc & Eltk Co Ltd, Singapor Advancd Smiconductor Enginring, Taiwan Arcadyan Grmany Tchnology, Taiwan Chaun-Choung Tchnology Corp, Taiwan Chicony Elctronics Co. Ltd, Taiwan Compal Elctronics, Taiwan Evrlight Elctronics Co Ltd, Taiwan FSP Tchnology Inc., Taiwan Innolux Corporation, Taiwan Joy Tchnology (Shnzn) Corp., Taiwan Lxtar, Taiwan Mitrastar Tchnologis (Formrly Zyxl Communications), Taiwan MiTAC Holdings Corporation (MHC), Taiwan Nanya Tchnology Corp, Taiwan Powrtch Tchnology Inc, Taiwan Qisda, Taiwan Quanta Computr, Taiwan Sabl Corporation, Taiwan Siliconwar Prcision Industris Co., Taiwan Taiwan Smiconductor Manufacturing, Taiwan Matrials Black Cat, China Nanyi Zhi Pin Packaging Co., Ltd, China Porton, China Rong Hua (Qing Yuan) Offst Printing, China Shanghai Huachi Printing Co., Ltd, China Shanghai Takmoto Packags Co., Ltd, China Shnma, China Shya Hsin Packaging Industry (China) Co.,Ltd., China Sprad Profit, China STARLITE PRINTERS (SZ) CO.,LTD, China Essar Stl Limitd, India Godrj Industris, India GRP, India Hindustan Zinc, India Mahindra Sanyo Spcial Stl Pvt. Ltd, India Parksons Packaging Limitd Chakan, India Tata Chmicals, India Tata Stl, India Vdanta Ltd, India Dynaplast, Indonsia Pt Visichm Intiprima, Indonsia Pt. Printindo Utama, Indonsia Nitto Dnko Corporation, Japan Rngo Co., Ltd., Japan Shin-Etsu Chmical Co., Ltd., Japan Takuchi-prss Industris, Japan Hyundai Stl Co, Rpublic of Kora Kiswir Ltd., Rpublic of Kora China Stl, Taiwan Indorama Vnturs PCL, Thailand PTT Global Chmical, Thailand Tlcommunication Srvics Airsys, China Anhui Tianyuan Commu, China China Mobil, China Chinacomm, China Innolight, China Svarn Infratl, India KT Corporation, Rpublic of Kora LG Uplus, Rpublic of Kora SK Tlcom, Rpublic of Kora SingTl, Singapor Hwacom Systms, Taiwan Advancd Info Srvic, Thailand Utilitis CLP Holdings Limitd, Hong Kong GAIL, India Tata Powr Co, India 33

Europ Carbon pric disclosur by GICS sctor 214 companis in Europ ar pricing carbon now.¹ Companis currntly using an intrnal pric on carbon Consumr Discrtionary Company Country Pric (US$) Impact Targt JCDcaux SA. Franc Kring Franc 69.25 Michlin Franc Rnault Franc BMW AG Grmany 6.70 Daimlr AG Grmany PUMA SE Grmany Volkswagn AG Grmany Rochling Automotiv Inditx Spain 30.00 Compagni Financièr Richmont SA Switzrland Arçlik A.S. Turky Vstl Elktronik Sanayi V Ticart A.S. Crst Nicholson PLC Italy Turky Unitd Kingdom Domino's Pizza Group plc Unitd Kingdom 24.64 Jaguar Land Rovr Ltd Unitd Kingdom 11.17 JD Sports Fashion Unitd Kingdom Marks and Spncr Group plc Unitd Kingdom N Brown Group Plc Unitd Kingdom 23.48 RELX Group Unitd Kingdom Sky plc Unitd Kingdom 23.33 Whitbrad Unitd Kingdom WPP Group Unitd Kingdom 53.15 Consumr Stapls Carlsbrg Brwris A/S Dnmark Carrfour Franc 22.34 78.18 Danon Franc Sofidl S.p.A. Italy Rixona Nthrlands Jrónimo Martins SGPS SA Portugal 5.58 Coca-Cola HBC AG Switzrland Nstlé Switzrland 1.02 Migros Ticart A.S. Turky Associatd British Foods Unitd Kingdom Dairy Crst Group Unitd Kingdom J Sainsbury Plc Unitd Kingdom 24.64 Morrison Suprmarkts Unitd Kingdom Muntons plc Unitd Kingdom Unilvr plc Unitd Kingdom 10.00 1 33 companis submittd privat rsponss and ar not listd in th appndix. 34

Company Country Pric (US$) Impact Targt Enrgy OMV AG Austria Nst Corporation Finland Total Franc 27.92 MOL Nyrt. Hungary Eni SpA Italy 40.00 Royal Dutch Shll Nthrlands 40.00 Vopak Nthrlands 27.92 Dt Norsk Oljslskap ASA Norway Statoil ASA Norway 50 64 Galp Enrgia SGPS SA Portugal 33.51 Compañía Española d Ptrólos, S.A.U. Spain CEPSA Rpsol Spain Lundin Ptrolum Swdn 54.03 BP Unitd Kingdom 40.00 Tullow Oil Unitd Kingdom Financials Dansk Bank A/S Dnmark BNP Paribas Franc Gcina Franc Socit Gnral Franc 11.17 Commrzbank AG Grmany Dutsch Bank AG Grmany Piraus Bank Grc 7.82 Banco d crdito social cooprativo Spain Banco Popular Espanol S.A. Spain 8.94 CaixaBank Spain 5.58 Norda Bank Swdn 2.23 BEKB / BCBE Switzrland Crdit Suiss Switzrland Swiss R Switzrland T.Garanti Bankasi A.S. Turky T.Sinai Kalkinma Bankasi A.S. Turky Aviva plc Unitd Kingdom Barclays Unitd Kingdom Big Yllow Group Unitd Kingdom 23.92 Capital & Countis Proprtis Unitd Kingdom 17.50 Ernst & Young LLP UK Unitd Kingdom 23.92 Hndrson Group Unitd Kingdom Lgal and Gnral Invstmnt Unitd Kingdom Managmnt Unit Studnts Unitd Kingdom 24.64 Workspac Group Unitd Kingdom 35

Europ Carbon pric disclosur by GICS sctor Continud from prvious pag Company Country Pric (US$) Impact Targt Halth Car Lundbck A/S Dnmark Novartis Switzrland 100.00 Boots Contract Manufacturing Unitd Kingdom Nuffild Halth Unitd Kingdom Spir Halthcar Unitd Kingdom 24.64 Industrials Grundfos Dnmark Air Franc KLM Franc Bic Franc 12.29; 22.34 Bouygus Franc Group Eurotunnl Franc La Post Franc 7.82 LEGRAND Franc 33.51 Saint-Gobain Franc Hochtif AG Grmany Kingspan Group PLC Irland Danili & C Officin Mccanich S.p.A. Italy Arcadis Nthrlands Royal BAM Group nv Nthrlands CTT Corrios d Portugal SA Portugal 39.10; 7.82 22.34 Abngoa Spain 10.05 Frrovial Spain Grupo Logista Spain Intrnational Consolidatd Airlins Group, Spain S.A. Obrascon Huart Lain (OHL) Spain 4.86 SAS Swdn Pgasus Hava Taşimaciliği A.Ş. Turky 6.37 Balfour Batty Unitd Kingdom 24.64 Go-Ahad Group Unitd Kingdom 23.33 Linklatrs LLP Unitd Kingdom Morgan Advancd Matrials Unitd Kingdom Morgan Sindall Group plc Unitd Kingdom Snior Plc Unitd Kingdom 27.71 Travis Prkins Unitd Kingdom Information Tchnology Atos SE Franc Sopra Stria Group Franc 5.58 Rnishaw Unitd Kingdom Sungard Availability Srvics (Sungard AS) Unitd Kingdom 36

Company Country Pric (US$) Impact Targt Matrials Solvay S.A. Blgium 83.77 Novozyms A/S Dnmark Mtsä Board Finland 11.17 Outokumpu Oyj Finland Stora Enso Oyj Finland MMP Packtis Franc 35.74 MMP Prmium Franc 35.74 BASF SE Grmany D.G.W. Grmany Edlmann Grmany HidlbrgCmnt AG Grmany 22.34 ThyssnKrupp AG Grmany Smurfit Kappa Group PLC Irland Palladio Group SPA Italy 9.24; 22.34 Zignago Vtro SpA Italy AkzoNobl Nthrlands 55.84 150.78 Royal DSM Nthrlands 55.84 Borrgaard ASA Norway Norsk Hydro Norway Arkhanglsk Pulp and Papr Mill Russia 16.75 Acrinox Spain Ercros Spain Bolidn Group Swdn SSAB Swdn Ttra Pak Swdn 11.17 Glncor plc Switzrland 8.17 LafargHolcim Ltd Switzrland Anglo Amrican Unitd Kingdom 3.27 8.17 BHP Billiton Unitd Kingdom 24.00 GPS PE Products Unitd Kingdom 17.50 Hill & Smith Holdings Unitd Kingdom Lonmin Unitd Kingdom Marshalls Unitd Kingdom Mondi PLC Unitd Kingdom 33.51 Ptra Diamonds Ltd Unitd Kingdom Rio Tinto Unitd Kingdom Tlcom. Srvics Magyar Tlkom Nyrt. Hungary Koninklijk KPN NV (Royal KPN) Nthrlands BT Group Unitd Kingdom 24.64 TalkTalk Tlcom Group Unitd Kingdom 25.08 Vodafon Group Unitd Kingdom 37

Europ Carbon pric disclosur by GICS sctor Continud from prvious pag Company Country Pric (US$) Impact Targt Utilitis Vrbund AG Austria 5.58 7.48 Fortum Oyj Finland EDF Franc ENGIE Franc SUEZ Franc VEOLIA Franc E.ON SE Grmany 22.34 44.68 A2A Italy 6.70 13.40 ENEL SpA Italy 12.29 Snam S.P.A Italy 8.23 Trna Italy EDP Enrgias d Portugal S.A. Portugal 5.58 67.01 REN Rds Enrgéticas Nacionais Portugal ACCIONA S.A. Spain 39.09; 50.26; 80.42 Enagas Spain 7.82 Endsa Spain 12.29 Gas Natural SDG SA Spain 23.24 37.11 Ibrdrola SA Spain 33.51 Vattnfall Group Swdn Cntrica Unitd Kingdom 32.08 National Grid PLC Unitd Kingdom 86.04 Pnnon Group Unitd Kingdom 75.83 291.65 Svrn Trnt Unitd Kingdom 21.29 SSE Unitd Kingdom Unitd Utilitis Unitd Kingdom 23.48 38

Companis that anticipat using an intrnal pric on carbon in th nxt two yars Consumr Discrtionary Group PSA, Franc Ipsos, Franc Sodxo, Franc Axl Springr SE, Grmany iwis motorsystm, Grmany Adlr Plastic Spa, Italy O.M.G. Di Mssiri Odoardo & C. Spa, Italy IEE, Luxmbourg Mlia Hotls Intrnational SA, Spain NAGARES. S.A., Spain NH Hotl Group, Spain Ihlas Ev Altlri Imalat Sanayi V Ticart A.S., Turky Brkly Group, Unitd Kingdom Brand Addition, Unitd Kingdom Cms Camron Mcknna, Unitd Kingdom D Vr Group, Unitd Kingdom Dntsu Agis Ntwork, Unitd Kingdom GLH (Thistl Hotls), Unitd Kingdom Norton Ros, Unitd Kingdom Rdrow Homs Ltd, Unitd Kingdom Rosti, Unitd Kingdom SuprGroup, Unitd Kingdom TUI Group, Unitd Kingdom Consumr Stapls Dlhaiz Group, Blgium L Oréal, Franc Tros, Franc Birsdorf AG, Grmany METRO AG, Grmany MI (Michallids), Grc D Mattis Agroalimntar S.P.A., Italy Hinkn NV, Nthrlands Acits Dl Sur Coosu, Spain AJE Group, Spain Dacsa Ltd, Spain A.G. Barr Plc, Unitd Kingdom Britvic, Unitd Kingdom Grggs, Unitd Kingdom Enrgy Maurl Et Prom, Franc ERG S.p.A, Italy SBM Offshor, Nthrlands PJSC Gazprom, Russia Tcnicas Runidas, Spain Ophir Enrgy Plc, Unitd Kingdom Prmir Oil, Unitd Kingdom Financials Altara Cogdim, Franc AXA Group, Franc CNP Assurancs, Franc Crdit Agricol, Franc Icad, Franc Klpirr, Franc Nxity, Franc Eurobank Ergasias SA, Grc National Bank Of Grc, Grc Allid Irish Banks plc, Irland UniCrdit, Italy ING Group, Nthrlands DNB ASA, Norway Bankintr, Spain BBVA, Spain Hoist Financ, Swdn Akbank T.A.S., Turky Türkiy Kalkinma Bankasi A.S., Turky Yapi V Krdi Bankasi A.S., Turky D Vr Vnus Group Ltd, Unitd Kingdom Hammrson, Unitd Kingdom Land Scuritis, Unitd Kingdom Prudntial PLC, Unitd Kingdom Halth Car UCB SA, Blgium Coloplast A/S, Dnmark Sanofi, Franc Frsnius SE & Co. KGaA, Grmany Shir, Irland AstraZnca, Unitd Kingdom Bupa, Unitd Kingdom Industrials Östrrichisch Post AG, Austria Palfingr AG, Austria Kytc, Czch Rpublic A.P. Mollr Marsk, Dnmark DANFOSS, Dnmark Finnair, Finland Valmt, Finland ADP (Aroports d Paris), Franc Drichbourg Multisrvics, Franc Schnidr Elctric, Franc Dutsch Post AG, Grmany Simns AG, Grmany Sudkabl GmbH, Grmany WAGO, Grmany Wnr Plastik GmbH, Grmany 39

Europ Carbon pric disclosur by GICS sctor Continud from prvious pag Companis that anticipat using an intrnal pric on carbon in th nxt two yars Ingrsoll-Rand Co. Ltd., Irland Airbus Group, Nthrlands CEVA, Nthrlands Royal Philips, Nthrlands Ficosa, Portugal Iturri, S.A., Spain Inwido Ab, Swdn Skanska AB, Swdn Gatgroup Holding AG, Switzrland Kuhn + Nagl Intrnational AG, Switzrland AVK, Unitd Kingdom BBA Aviation, Unitd Kingdom CNH Industrial NV, Unitd Kingdom Costain Group, Unitd Kingdom asyjt, Unitd Kingdom FirstGroup Plc, Unitd Kingdom Intrsrv Plc, Unitd Kingdom National Exprss Group Plc, Unitd Kingdom Projct Popl, Unitd Kingdom Rolls-Royc, Unitd Kingdom Stphnson Harwood, Unitd Kingdom Unipart, Unitd Kingdom Virgin Atlantic Airways Ltd, Unitd Kingdom Volx Group, Unitd Kingdom Whistl UK Ltd, Unitd Kingdom WSH Group, Unitd Kingdom Information Tchnology Scanfil, Finland Cap Gmini, Franc Jnoptik AG, Grmany SAP SE, Grmany Ericsson, Swdn Aci Worldwid Ltd, Unitd Kingdom NSC Global Ltd, Unitd Kingdom Matrials Constantia Packaging, Austria Air Liquid, Franc ARKEMA, Franc Chimx, Franc Lanxss AG, Grmany Wiland Holding, Grmany CRH Plc, Irland Armtallizing NV, Italy Industria Grafica Eurostampa S P A, Italy Italcmnti, Italy Nucria Adsivi SRL, Italy PCC Exol, Poland Grafobal a.s, Slovakia Alliabox, Spain Mnshn, Spain Clariant AG, Switzrland Givaudan SA, Switzrland Modl Holding AG, Switzrland Akçansa Çimnto Sanayi V Ticart A.S., Turky ASG, Unitd Kingdom Croda Intrnational, Unitd Kingdom Innovia Films Ltd, Unitd Kingdom Vdanta Rsourcs PLC, Unitd Kingdom Tlcommunication Srvics GOBE, Franc Dutsch Tlkom AG, Grmany VIA optronics (Suzhou) Co., Ltd, Grmany Tlcom Italia, Italy Tlfonica, Spain Millicom Intrnational Cllular SA, Swdn Swisscom, Switzrland Bacon Scurity & Communications Limitd, Unitd Kingdom Utilitis R.E.E., Spain Aknrji Elktrik Ürtim A.S., Turky Zorlu Dogal Elktrik Ürtimi A.S., Turky Zorlu Enrji Elktrik Ürtim A.S., Turky 40

Latin Amrica Carbon pric disclosur by GICS sctor 26 companis in Latin Amrica ar pricing carbon now.¹ Companis currntly using an intrnal pric on carbon Consumr Discrtionary Consumr Stapls Company Country Pric (US$) Impact Targt Fdbacktur Viagns Ltda EPP GILOGRJ Grupo Tlvisa S.A. Granja 3 Arroyos Natura Cosmticos SA Brazil Mxico Argntina Brazil Vina Concha y Toro S A Chil 1.00 Grupo Nutrsa S.A. Colombia Socidad Agrícola Industrial San Carlos Ecuador Enrgy Ptrólo Brasiliro SA Ptrobras Brazil Financials Banco Santandr Brasil Brazil Itaú Unibanco Holding S.A. Itausa Invstimntos Itau S.A. Brazil Brazil Industrials Ecofrotas Brazil Transports Cavalinho Brazil Colcaf Colombia Information Tchnology Srvic Bank Srvs. Tcnologicos E Brazil Matrials Braskm S/A Brazil Duratx S/A Brazil Utilitis AES Tit SA Brazil Cntrais Eltricas Brasiliras S/A (Eltrobras) Brazil 5.00 Companhia Enrgtica Minas Grais CEMIG Brazil 1.00 CPFL Enrgia SA Brazil 0.28 Colbun SA Chil 5.00 Clsia SA ESP Colombia Companis that anticipat using an intrnal pric on carbon in th nxt two yars Consumr Discrtionary Athra Sistmas Automotivos S/A., Brazil B2W Companhia Global do Varjo, Brazil Lojas Amricanas S/A, Brazil CINSA SA DE CV, Mxico Jansvill d México, S.A. d C.V., Mxico Karmatx, Mxico Prod Infantils Slctos SA CV, Mxico Consumr Stapls JBS S/A, Brazil Mataboi, Brazil Vigor, Brazil Colombina S.A., Colombia Dyval S.A (Rpostría Dli), Colombia Panifrsh Costa Rica SA, Costa Rica Ayvi SA d CV, Mxico Cafinco SA d CV, Mxico Comrcializadora GAB (Mr Lucky), Mxico Innophos Mxicana S. d R.L. d C.V., Mxico Pinsa Comrcial SA d CV, Mxico Protinas Y Olicos SA CV, Mxico 1 3 companis submittd privat rsponss and ar not listd in th appndix. 41

Latin Amrica Carbon pric disclosur by GICS sctor Continud from prvious pag Companis that anticipat using an intrnal pric on carbon in th nxt two yars Financials Banco Bradsco S/A, Brazil Paschoalotto I C BR G E LTDA, Brazil Banco Davivinda SA, Colombia Grupo d Invrsions Suramricana SA, Colombia Grupo Financiro Banort SAB d CV, Mxico Industrials Logintr, Argntina Companhia d Concssõs Rodoviárias CCR, Brazil Grupo Libra, Brazil Hidrojato Nacional SC LTDA, Brazil St Srvicos D Entrga DE TI (Txlog), Brazil Transportadora Rodomu LTDA, Brazil Transvip Transp D Val Vig Patrimonial LTDA, Brazil Matrials Rigollau, Argntina FIBRIA Clulos S/A, Brazil Grafica 43, Brazil Klabin S/A, Brazil Val, Brazil Votorantim Cimntos, Brazil Emprsas CMPC, Chil Cmntos Argos SA, Colombia Fproml SAS., Colombia Vical, Costa Rica Absormx, Mxico Frsnillo plc, Mxico Packaging Products dl Pru, Pru Trupal S.A, Pru Tlcommunication Srvics Axtl, Mxico Utilitis Cia Paranans d Enrgia COPEL, Brazil EDP Enrgias do Brasil S.A., Brazil Eltropaulo Mtropolitana Eltricidad d São Paulo S/A, Brazil Emprsa d Enrgia d Bogota S.A. E.S.P., Colombia Intrconxion Elctrica Sa, Colombia Isagn S.A. E.S.P., Colombia Middl East Carbon pric disclosur by sctor Companis that anticipat using an intrnal pric on carbon in th nxt two yars Consumr Discrtionary Classic Fashion Apparl, Jordan Matrials Altajir Glass, Unitd Arab Emirats Tlcommunication Srvics ECI Tlcom, Isral 42

North Amrica Carbon pric disclosur by GICS sctor 111 companis in North Amrica ar pricing carbon now.¹ Companis currntly using an intrnal pric on carbon Consumr Discrtionary Company Country Pric (US$) Impact Targt Aimia Inc. Canada 13.79 Canadian Tir Corporation, Limitd Canada 11.49 22.99 Fruit of th Loom Gnral Motors Company 5.00 Suprior Industris Intrnational Walt Disny Company Consumr Stapls Archr Danils Midland Campbll Soup Company Colgat Palmoliv Company Dan Foods Company Dl Mont Foods Horml Foods WhitWav Foods Enrgy ARC Rsourcs Ltd. Canada Canadian Natural Rsourcs Limitd Canada Cnovus Enrgy Inc. Canada Encana Corporation Canada 20 125 Enrplus Corporation Canada 22.98 Husky Enrgy Inc. Canada Imprial Oil Canada 80.00 Kyra Corp. Canada 11.49 22.98 Suncor Enrgy Inc. Canada 11.49 42.12 TransCanada Corporation Canada 61.27 Vrmilion Enrgy Inc. Canada 11.49; 16.91 Chvron Corporation ConocoPhillips 6 38 Dvon Enrgy Corporation 15.00 Exxon Mobil Corporation 80.00 Hss Corporation 20 40 Occidntal Ptrolum Corporation Financials Bank of Montral Canada 25.00 Grat-Wst Lifco Inc. Canada 22.98 Powr Corporation of Canada Canada 22.98 Powr Financial Corporation Canada 22.98 TD Bank Group Canada 9.00 BNY Mllon 29.02 Goldman Sachs Group Inc. Harvard Maintnanc, Inc. Wlls Fargo & Company 1 15 companis submittd privat rsponss and ar not listd in th appndix. 43

North Amrica Carbon pric disclosur by GICS sctor Continud from prvious pag Company Country Pric (US$) Impact Targt Halth Car Allrgan plc Biogn Inc. Industrials Air Canada Canada Information Tchnology Th Bck Group HC Bck Covanta Enrgy Corporation Cummins Inc. Dlta Air Lins Gnral Elctric Company Jacobs Enginring Group Inc. 23.92 Owns Corning 10 60 Parkr-Hannifin Corporation Stanly Black & Dckr, Inc. 23; 25; 150 Tnnant Company Wast Managmnt, Inc. Wisconsin Enrgy Consrvation Corporation (WECC) 13.12 Adob Systms, Inc. Alphabt, Inc. Asociar LLC Autodsk, Inc. Corning Incorporatd EMC Corporation 30.00 IO Data Cntrs Microchip Tchnology Microsoft Corporation Matrials Barrick Gold Corporation Canada Catalyst Papr Corporation Canada 22.98 HudBay Minrals Inc. Canada 15.32 38.29 Rsolut Forst Products Inc. Canada Tck Rsourcs Limitd Canada 11.49 30.64 E.I. du Pont d Nmours and Company Eastman Chmical Company Monsanto Company Owns-Illinois Th Dow Chmical Company Tlcom. Srvics Rogrs Communications Inc. GENBAND World Wid Tchnology Holding Company Canada 44

Company Country Pric (US$) Impact Targt Utilitis Capital Powr Corporation Canada TransAlta Corporation Canada 22.98 Amrn Corporation 23 53 Amrican Elctric Powr Company, Inc. CMS Enrgy Corporation DTE Enrgy Company Duk Enrgy Corporation Evrsourc Enrgy Exlon Corporation 0 20 FirstEnrgy Corporation Los Angls Dpartmnt of Watr and 12.45 Powr NiSourc Inc. 20.00 NRG Enrgy Inc OGE Enrgy Corp. Ormat Tchnologis Inc PG&E Corporation Pinnacl Wst Capital Corporation Smpra Enrgy WEC Enrgy Group Xcl Enrgy Inc. 1.86 40 Companis that anticipat using an intrnal pric on carbon in th nxt two yars Consumr Discrtionary Activ Knitwar Rsourcs Inc, Adjmi Apparl Group, All Accss Apparl, Inc., Cabl Connction & Supply, Custom Accssoris Inc, Dtroit Manufacturing Systms, E&E Manufacturing, Jjs Ma Inc Dba Rainbau, Low s Companis, Inc., Napco, Ottr Products, LLC, Paris Prsnts LTD, Rnfro Corporation, Royal Caribban Cruiss Ltd, Roytx Inc, Topson Downs, VF Corporation, Whirlpool Corporation, Wyndham Worldwid Corporation, Consumr Stapls Loblaw Companis Limitd, Canada Mapl Laf Foods Inc., Canada Albaad, Allianc On Intrnational Inc., Bavr Strt Fishris, Brwick Offray Hong Kong, Cargill, Coca-Cola Europan Partnrs, Kllogg Company, Lprino Foods, Mars, Massimo Zantti Bvrag, Michal Foods Inc (USFS), Molson Coors Brwing Company, Norpac Foods, Inc., Oxygn, PpsiCo, Inc., Philip Morris Intrnational, Royal Cup, Inc., Shanghai Yingshuo Plastic Co, Ltd, Suprm Ric Mill, 45

North Amrica Carbon pric disclosur by GICS sctor Continud from prvious pag Companis that anticipat using an intrnal pric on carbon in th nxt two yars Enrgy Crscnt Point Enrgy Corporation, Canada Bakr Hughs Incorporatd, CONSOL Enrgy Inc., Financials Bank of Nova Scotia (Scotiabank), Canada Bntall Knndy, Canada Host Hotls & Rsorts, Inc., Invsco Ltd, Iron Mountain Inc., JPMorgan Chas & Co., Morgan Stanly, Halth Car Baxtr Intrnational Inc., Bristol-Myrs Squibb, Catalnt Pharma Solutions, Valant Pharmacuticals Intrnational, Inc., Watrs Corporation, Industrials Canadian National Railway Company, Canada TTR Transport, Canada 3M Company, Asplundh Tr Exprt, Boston Coach, DSC Logistics, Flyt Tym Limousin, Iwco Dirct, Martin Transportation Systms, Northlin Utilitis, Rpublic Srvics, Inc., Wabtc Corp., Information Tchnology BlackBrry Limitd, Canada Arista Ntworks, Automatic Data Procssing, Inc., Equinix, INC., Jabil Circuit, Inc., Junipr Ntworks, Inc., NtApp Inc., Optoplx, PCTEL, Pnguin Computing, Qualcomm Inc., Synaptics, Tlamon Corporation, VMwar, Inc, VXI Global Solutions Inc, Wstrn Digital Corp, Yahoo! Inc., Matrials Dtour Gold Corporation, Canada Krugr Products Inc, Canada Yamana Gold Inc., Canada Accurat Box, Alcoa Inc., Avry Dnnison Corporation, Brry Plastics, Goldn Aluminum, Inc., Kopprs Holdings Inc, Nwmont Mining Corporation, Novlis Inc., Papr Magic Group Hong Kong Ltd, YONYU Plastics (Shanghai) Co., Ltd, Tlcommunication Srvics Tlus Corporation, Canada CnturyLink, Utilitis Th AES Corporation, 46

Ocania Carbon pric disclosur by GICS sctor 23 companis in Ocania ar pricing carbon now.¹ Companis currntly using an intrnal pric on carbon Consumr Stapls Company Country Pric (US$) Impact Targt Wsfarmrs Woolworths Limitd Australia Australia Enrgy AWE Australia Origin Enrgy Australia 36.75 Santos Woodsid Ptrolum Australia Australia Financials AMP Australia Australia and Nw Zaland Banking Group Australia 1.30; 10.29 15.44 GPT Group Australia Insuranc Australia Group Australia Invsta Proprty Group Australia National Australia Bank Australia Platinum Asst Managmnt Australia Stockland Australia Wstpac Banking Corporation Australia Industrials Qantas Airways Australia Matrials Incitc Pivot Australia South32 Fltchr Building Australia Nw Zaland Utilitis AGL Enrgy Australia 10.25 Infign Enrgy Australia Companis that anticipat using an intrnal pric on carbon in th nxt two yars 1 2 companis submittd privat rsponss and ar not listd in th appndix. Consumr Discrtionary Supr Rtail Group, Australia Warhous Group, Nw Zaland Enrgy Oil Sarch, Australia Financials Ayala Land Inc, Philippins Industrials Aurizon Holdings, Australia Australia Post, Australia Clanaway Wast Managmnt, Australia Matrials Alumina, Australia Boral, Australia Fortscu Mtals Group, Australia Intgratd Packaging Australia Pty Ltd, Australia Sandfir Rsourcs NL, Australia Sims Mtal Managmnt, Australia Atlas Consolidatd Mining & Dvlopmnt, Philippins Tlcommunication Srvics Spark Nw Zaland, Nw Zaland Glob Tlcom Inc, Philippins Utilitis APA Group, Australia 47

Rport Authors Nicoltt Bartltt Dirctor, Carbon Pricing Hannah Cushing Projct Managr, Global Initiativs Sara Law Vic Prsidnt, Global Initiativs CDP Contacts Paul Simpson CEO Lanc Pirc Prsidnt, CDP North Amrica Paula DiPrna Spcial Advisor Mdia inquiris Zo Tcholak-Antitch Communications, CDP North Amrica zo.antitch@cdp.nt For furthr information, contact: carbonpricing@cdp.nt This rport is availabl for download from www.cdp.nt. CDP is a non-profit running th global nvironmntal disclosur systm for companis and sub-national govrnmnts. www.cdp.nt This rport is supportd by Th Childrn s Invstmnt Fund Foundation, MacArthur Foundation, Mrck Family Fund, V. Kann Rasmussn Foundation and W Man Businss. Dsign www.tatianatmpl.com