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

22
2012 Leaders
Introduction to the Carbon Disclosure Leadership
Index (CDLI) and the Carbon Performance
Leadership Index (CPLI)
Each year, company responses are reviewed, analysed
and scored for the quality of disclosure and performance
on actions taken to mitigate climate change. The highest
scoring companies for disclosure enter the CDLI and the
highest for performance enter the CPLI.
What are the CDLI and CPLI criteria?
To enter the CDLI, a company must:
• Make their response public and submit it via CDP’s
Online Response System;
• Achieve a score within the top 10% of the reporting
population (35 companies in 2012).
To enter the CPLI (Performance Band A), a company must:
• Make their response public and submit it via CDP’s
Online Response System;
• Attain a performance score greater than 85;
• Score maximum performance points on question 13.1a
(absolute emissions performance for GHG reductions
due to emissions reduction actions over the past year);
• Disclose gross global Scope 1 and Scope 2 figures; and
• Score maximum performance points for verification of
Scope 1 and Scope 2 emissions.
Why are the CDLI and CPLI important to investors?
Analyses of the CDLI and CPLI provide insights into the
characteristics and common trends among the leading
companies on carbon disclosure and performance.
They highlight good practices in reporting, governance,
risk management, verification and emissions reduction
activities that drive climate change adaptation and
mitigation.
Additionally, good carbon management and disclosure
may be used as a proxy to assess where management are
applying superior understanding of their risk profile and
opportunities to help increase financial returns and the
sustainability of their business. Companies in the CDLI
and CPLI typically show a deeper understanding of, and
address more pro-actively, the risks and opportunities
presented by climate change. They build this into their
strategy, risks and opportunities management and
reporting processes. This transparency, and willingness to
disclose information, is attractive to investors as they can
make a more informed decision based on this information.
For further information on the CDLI and the CPLI
and how scores are determined, please visit
https://www.cdproject.net/guidance