CDP-FTSE-350-Climate-Change-Report-2012

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16 estimates that the global market for low-carbon energy solutions in 2020 could be over US$2.2 trillion. In addition, investors are increasingly using climate performance metrics to positively and negatively screen potential investments. United Utilities believes that an experience in delivering a business strategy which integrates climate change and a transparent strategic narrative around climate change puts it at a strategic advantage. Indeed, while only 33% of responding companies consider themselves to have a strategic advantage relating to climate change, the proportion jumps to 74% when looking at the companies listed on the CDLI. While the percentage of all reporting companies who integrate climate change into their strategy remains low (2012: 56%), 95% of CDLI companies already have an integrated strategy. 80% of the CDLI also includes climate change-related information in their annual reports. Being able to report a long-term understanding of physical risks provides greater confidence to shareholders and customers. While customers may focus on the environmental impact of companies’ products or services, investors may focus on the long-term resilience of their business. Extreme weather patterns are increasingly frequent in the UK and worldwide (physical risks were highlighted by 74% of respondents) and can have a significant impact on a company’s business continuity. For example, Debenhams notes how a number of its supply chain operations are located in areas at risk from flooding or droughts and the supply of materials for products may be negatively affected by extreme weather events. The gulf in the quality of reporting between CDLI companies and non-CDLI companies highlights how regulation will help other companies catch up with the leaders. Mandatory reporting, such as the UK’s proposed regulations on GHG reporting, will provide further impetus towards an integrated reporting model. “We recognise that climate change is not just an environmental challenge; but also one that affects the health and livelihood of millions of people because of the links to complex issues such as poverty; economic development and population growth. We believe that the most effective response to the challenges associated with climate change can only be achieved through a concerted global effort.” Astra Zeneca “In 2012, our sustainability credentials were requested in £2.7bn of customer bids.” BT Group “We believe that incorporating climate change in our strategy has helped us to gain strategic advantage; both operationally... and in the market places we serve.” Electrocomponent
The Future of Reporting The culmination of several factors coming together has helped drive greater levels of carbon disclosure in the past decade. Government regulations, from building standards and the EU-ETS to the recently proposed mandatory reporting legislation, now require companies to measure and report their emissions as part of compliance. Stakeholder pressure from investors and customers, as seen by the work of CDP, helps prepare companies for regulation. As the tools and frameworks (such as CDSB’s Climate Change Reporting Framework) for reporting become available and improve, the private sector will continue to find that disclosure becomes easier and more useful. Looking to the future, the evolution of reporting on climate change will be focused on the following key issues: retaining global consistency in reporting, improving the quality of data and demonstrating an integration of this understanding into strategy. Mandatory reporting in the UK will continue to drive more companies to report emissions and include this information in their annual reports. Voluntary reporting through CDP will provide more detailed information for companies to determine what is material and for investors to use in their research and analysis of future risk. There will also be an expectation that the information reported is verified and assured. The detail of the UK Government’s new regulations, in particular regarding the boundary requirements, will be crucial in deciding whether companies are truly prepared for mandatory reporting or not. However, there is no doubt that CDP has been crucial in preparing companies for mandatory reporting. The investor-relevant information requested by CDP is currently more comprehensive than the proposed UK reporting requirements, and provides a global platform that continues to drive forward strategic change and business benefit and will prepare companies with the data they need to be ready for whatever the future of reporting is. 17
Page 1 and 2: The Future of Reporting CDP FTSE 35
Page 3 and 4: CEO Foreword The pressure is growin
Page 5 and 6: Being able to tell a positive story
Page 7 and 8: CDP Signatory Investors 2012 655 fi
Page 9 and 10: Resolution Resona Bank, Limited Rey
Page 11 and 12: Key Themes and Highlights of 2012 R
Page 13 and 14: Climate change reporting: drivers a
Page 15: in consumer behaviour, or both. The
Page 19 and 20: Taking the next step in reporting O
Page 22 and 23: 22 2012 Leaders Introduction to the
Page 24 and 25: 24 • 80% of the CDLI companies al
Page 26 and 27: 26 CPLI T3 THE CDP FTSE 350 CPLI 20
Page 28 and 29: 28 Company name Country Associated
Page 30 and 31: 30 Company name Country CAPE United
Page 32 and 33: 32 Company name Country Electrocomp
Page 34 and 35: 34 Company name Country Homeserve U
Page 36 and 37: 36 Company name Country Legal & Gen
Page 38 and 39: 38 Company name Country Phoenix Gro
Page 40 and 41: 40 Company name Country Shire Irela
Page 42 and 43: 42 Company name Country Witan Inves
Page 44 and 45: 44 Company name Country Unite Group
Page 46 and 47: 46 Appendix II Using CCRF for your
Page 48: 48 CDP Contacts Paul Dickinson Exec

CDP-FTSE-350-Climate-Change-Report-2012

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