Version number	Release / Revision date	Revision summary
1.0	Released: January 11, 2023	Publication of the 2023 questionnaire preview and reporting guidance.
1.1	Revised: February 10, 2023	C6.1 and C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4: Guidance on the use of biogas certificates for scope 1 reporting has been updated. C8.2e: Question dependency updated so that C8.2e is not presented to companies who indicate in C8.2 that they do not consume any purchased or acquired electricity, heat, steam or cooling.
1.2	Revised: February 14, 2023	C3.5: Companies in the financial services sector will not be presented with the option “At the company and activity level” in column 2 as these companies are not required to report alignment against the EU Taxonomy for Sustainable Activities until January 2024. C3.5, C3.5a, C3.5b and C3.5c: Guidance has been updated to clarify the data being requested, and to provide links to further external resources including new EU Commission FAQs on the EU Taxonomy. Connections to other frameworks: for financial services institutions, connections to the Net Zero Asset Managers (NZAM) initiative have been removed for C3.3, and added for C-FS2.2b, C-FS2.2e, C3.1, C3.5, C3.5a, C4.1, C4.3c, C11.2, C12.4, C-FS14.1, C-FS14.1c, and C-FS14.3a. FW-FS4.3: In column 2, agricultural commodities sugar, tobacco and rice will now only be presented to companies who indicate in C-FS0.7 that they finance or insure industry sectors with a critical impact on water security.
1.3	Revised: March 23, 2023	C2.2: Guidance updated to request that companies include an explanation of the frequency of assessment and time horizons reported when describing their process for identifying, assessing and responding to climate-related risks and opportunities. C-CO4.2d and C-OG4.2d: Guidance updated to request that companies reporting a separate methane reduction target in C4.1a/b provide details of the target in C-CO4.2d/C-OG4.2d. C-CO4.8 and C-OG4.8: Guidance updated to request that where flaring is not relevant to a company’s operations, they include examples and timelines in their explanation to illustrate why it is not relevant.
1.4	Revised: April 17, 2023	C3.5a and C3.5b: Example responses added for questions on taxonomy alignment.
1.5	Revised: June 9, 2023	C3.2a: Guidance updated to specify that only companies with financial services as their primary sector should use the “NGFS scenarios framework" dropdown. C-FS14.3a: Drop-down added for companies to indicate if they do not have commercial/corporate/SME clients to report on in this question.
1.6	Revised: July 12, 2023	C-OG9.5a/C-CO9.5a: Clarification of the requested content for column 2. This column requests CAPEX in the reporting year for the expansion activity as a percentage of an organization’s total CAPEX in the reporting year, not as a percentage of total CAPEX for power generation alone.
1.7	Revised: July 25, 2023	C3.5b: The requested content has been updated for columns 26, 28 and 30 as it is not possible to upload attachments for these columns. Supporting documents may be uploaded in question C-FI if needed. C3.5c: The requested content has been updated as it is not possible to upload attachments for this question. Companies may upload attachments in C10.2a that relate to the verification/assurance of information provided in C3.5a and/or C3.5b. Other supporting documents may be uploaded in question C-FI if needed.
1.8	Revised: August 4, 2023	C4.1a, C4.1b, C-FS4.1d, C4.2a,C4.2b: Updates to Chinese translations of column headings to fix errors and improve clarity.

Preparing your CDP response

Please find below information on the support materials and options available to companies, and important notes for completing your disclosure. Please review these notes carefully as you prepare your response, even if you have responded to the questionnaire in previous years.

CDP disclosure support materials

CDP provides a variety of support materials to help organizations disclosing to our questionnaires. Before completing the corporate questionnaires, we strongly recommend you read this Reporting Guidance, the Scoring introduction, and relevant Scoring Methodology. Please also refer to the CDP Technical Notes and other guidance materials accessible from the guidance tool after signing in to the website, and see the Frequently Asked Questions on the website.

Reporting guidance

The reporting guidance in this document includes the following:

Module-level guidance: for select modules, this guidance provides an overview of key changes, sector-specific content for the module, and important disclosure notes. This section also presents question pathway diagrams showing the flow of questions through each module.
Question-level guidance: at the question level, guidance is separated into the following components to provide clarity around questions, terminology and requirements:

- Rationale: provides reasoning behind the inclusion of each question;
- Connections to other frameworks: notes for each relevant question in the climate change questionnaire, connections to the Sustainable Development Goals (SDGs), S&P Global Corporate Sustainability Assessment (S&P CSA), the Task Force on Climate-related Financial Disclosures (TCFD), RE100, and for financial services institutions only, the Net Zero Asset Managers (NZAM) initiative and CEO Water Mandate;
- Requested content: offers context around each question and requested criteria;
- Explanation of terms: provides detailed definitions for specific terminology;
- Example responses: for select questions, this provides an example of a response that would include all information requested; and
- Additional information: for select questions, this provides optional contextual information and sources related to the subject of the disclosure request.

Glossary: viewable at the end of the reporting guidance, the glossary contains a subset of 'Explanation of terms'.
Appendix: Agricultural/Forestry management practices.

If you have any questions that are not answered in the reporting guidance, the additional guidance noted below, or our Frequently Asked Questions, please contact your local CDP contact or visit the CDP Help Centre.

Webinars and workshops

CDP hosts live webinars and workshops designed to aid you with environmental reporting.

Please visit the workshops and webinars and climate change pages of CDP's website for more details.

CDP Reporter Services

CDP Reporter Services program offers tailored support, enhanced data access and thought leadership on managing and reporting environmental risk to your business. Access the tools you need to move from disclosure to leadership on integrating climate, forests management, and water security into your wider business strategy. For year-round, personalized disclosure support from a dedicated CDP account manager, a gap analysis of your previous response, final review before submission and analytics tools to benchmark yourself against peers and understand best practice contact [email protected]. Visit the Reporter Services page of CDP's website for more information.

CDP's Accredited Solutions Providers

CDP partners with leading environmental service providers that can support companies throughout all stages of the measurement, reporting and management of their climate and sustainability data and impacts. All CDP solutions providers have met specific accreditation criteria. See provider areas of expertise below, and visit the accredited solutions provider directory to search for the provider best able to support you:

Carbon reduction solutions providers offer technology and services that can help your organization reduce carbon emissions and improve energy efficiency.
Climate change consultancy solutions providers have a wide range of technical expertise to support companies with establishing and implementing climate change and sustainability strategies.
Science-based target (SBT) solutions providers have expertise in helping companies to set and implement targets in line with what the latest climate science says is necessary.
Education & training solutions providers improve employee awareness and understanding of how climate change affects their organization through carbon management training programs.
Renewable energy solutions providers provide expertise in procuring, tracking, and generating renewable power.
Software solutions providers simplify the collection, monitoring, and reporting of sustainability, CSR, and environmental data through integrated sustainability software applications.
Verification solutions providers help organizations disclose accurate data and improve internal processes by providing third-party verification and assurance of emissions data, a practice recommended by CDP.

As well as visiting our accredited solutions provider webpage, you can also contact [email protected] to find out more.

Important notes for completing your disclosure

Acronyms

Avoid using bespoke internal acronyms unless required for your organization’s response, in which case please provide their meaning to enable correct analysis and scoring.

Blank responses

Leaving a response blank is interpreted as non-disclosure. For numeric fields, values of zero (0) imply a measurement has been made, and the value is zero (0). For numeric fields where no measurement has been made, please leave the field blank and provide an explanation in an open text field for that same question (e.g. 'Comment' (optional) or 'Please explain' (scored)). If there is no open text field for the question, you may provide an explanation in the Further information field in the ORS at the end of your disclosure. Leaving a response blank and entering a value of zero (0) have different scoring implications. Please see the scoring methodology for more details.

Character limits

The character limits noted in the reporting guidance and in the ORS include spaces.

'Comment' columns

Some questions include a column labelled as 'Comment'. Note that providing information in these columns is optional.

Company-specific information

Some questions request company-specific information, rationales, case studies and/or examples. This level of detail gives data users confidence that the issue at hand has been thoroughly considered in the context of the responding organization's own business and not simply assessed in general terms.

Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations unique to your company’s business or operations. A company-specific explanation should include details that make the answer true for the responding company and are distinct from other companies in the same industry and/or geography.
Clear rationales are those which provide logical reasoning for methodologies, descriptions, decision, and actions.
Case studies are defined as a detailed description of the implementation of a process, strategy or decision to a specific situation and/or task. When formulating case studies, responders may find it helpful to consider a “Situation-Task-Action-Result” (STAR) approach :1) Situation: what was the context or background? 2) Task: what needed to be done or what was the problem to be solved? 3) Action: what was the course of action taken? 4) Result: what was the final outcome of the course of action?
An example does not need to follow the STAR approach. It can be shorter than a case study but should include some company-specific detail.

For more details, refer to the Scoring Introduction on the CDP website.

Consistency

CDP encourages a comprehensive and consistent response. Please ensure there is no conflicting information in your responses, both within a question and across the questionnaire.

Copy forward

The 'copy forward' functionality will be available in the ORS for companies that disclosed to CDP in previous reporting years. This functionality auto-populates your most recent answers into your questionnaire where applicable.

Note that this functionality may have been disabled for modified data points. The reporting guidance will indicate which questions have been modified. The Questionnaire Changes document on the guidance section of the CDP website lists all revisions from the previous year.

Please review the auto-populated answers carefully. It is your responsibility to ensure your answers are updated for the accuracy and completeness of your response.

Data accuracy

CDP recognizes that there may be uncertainty linked to data – this can arise from data gaps, assumptions, metering/measurement constraints including equipment accuracy etc. CDP allows estimated data to be submitted. However, an emphasis is placed on reporting transparently and this means that a company should always provide an explanation when its reported data is not accurate and detail the uncertainty (use the 'Please explain' or 'Comment' columns provided in the question).

Drop-down options ('Other, please specify')

Please select from the options provided whenever possible, and only select 'Other, please specify' when none of the listed options is appropriate. This greatly assists data analysis. If selecting 'Other, please specify', you must add a label that describes the option you are providing data for.

'Further information' field

At the end of the questionnaire, there is an opportunity to provide additional information or context that you feel is relevant to your organization’s response. This field is optional and not scored.

Mergers and acquisitions (M&As)

All disclosure should be defined by the organizational boundary applicable at the time of the stated reporting period. (Note that for CDP disclosure, organizations are encouraged to align their reporting period and organizational boundaries with their financial reporting).
Regarding forward-looking disclosure, organizations should include information that was correct at the time of the stated reporting period (for example, for data points referring to the future or "the next two years"). Organizations undergoing (or that have undergone) M&As need to consider the timing of the M&As and reporting period as follows:

Organizations that were acquired after the end of the current reporting period: these should respond with what was planned (strategy, targets, etc.) before being acquired (i.e., during the reporting period). For transparency, where possible they may state where they consider that the forward-looking information may be subject to change due to the very recent acquisition.
Organizations that were acquired during the reporting period: these should provide information that was applicable and correct to the best of their knowledge at the end of the reporting period. At the time of submitting their response to CDP, this information may not be the most up to date due to changes underway following the acquisition. For transparency, the company may state this in their disclosure where possible.

Personal data

It is important that you do not include the name of any individual or any other personal data in your response. For questions that ask for the positions of staff, out of respect for personal data privacy we are asking only for the position and not for the individual’s name or any other information relating to them.

Providing feedback to CDP

You can provide feedback to CDP on the content of our questionnaires and supporting documents through our online general feedback form.

We are unable to respond individually to all feedback, but please be assured that all form submissions are reviewed and contribute towards our continuous improvement.

However, if you represent a responding organization and would like to request a response, please get in touch with your local CDP contact.

Sector introduction: Financial Services (FS)

Activities in the financial services sector include banking, investing (asset management and/or asset ownership) and insurance underwriting. The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) highlight the important role of the financial sector as preparers of environmental disclosures. Disclosure by this sector will enable investors, central banks, regulators/supervisors and other relevant stakeholders to better understand the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to environmental risks through activities such as lending, financial intermediary, investment and/or insurance underwriting. Organizations in the FS sector should respond to the CDP questionnaire in the context of these financing activities, in addition to operational activities where appropriate. Organizations in the financial sector receive sector-specific climate change questions and modifications to existing climate change questions, as well as specific guidance included to clarify the type of information banks, insurance companies and asset managers should consider in their response.

In addition, organizations in the financial sector receive an additional module at the end of the questionnaire to collect information on the topics of forests and water security.

CDP’s financial services questions focus on the following topics:

Portfolio exposure to environmental risks and opportunities;
Environmental issues in the organization’s policy framework;
Engagement with clients and investee companies;
Portfolio emissions, in line with the Partnership for Carbon Accounting Financials Global GHG Accounting and Reporting Standard for the Financial Industry, and additional portfolio impact metrics;
Portfolio alignment to 1.5-degree world; and,
Shareholder voting on environmental issues.

C0 Introduction

Module Overview

This module requests information about your organization’s disclosure to CDP and will help data users to interpret your responses in the context of your business operations, timeframe and reporting boundary.

The information provided here should apply consistently to your responses throughout the questionnaire and be complete and accurate as it may determine response options presented in subsequent modules.

For this reason, you should respond to every question in this module before accessing the rest of the questionnaire.

Key changes

Modified questions:
- C0.2 – columns added to allow companies to restate a different number of years of data for each scope.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on organizational activities for the following high-impact sectors:

Agricultural commodities
Capital goods
Cement
Chemicals
Coal
Construction
Electric utilities
Financial services
Food, beverage and tobacco
Metals & mining
Oil & gas
Paper & forestry
Real estate
Steel
Transport original equipment manufacturers (OEMs)
Transport services

Pathway diagram - questions

This diagram shows the general questions contained in module C0. To access question-level guidance, use the menu on the left to navigate to the question.

(C0.1) Give a general description and introduction to your organization.

Change from last year

No change

Rationale

This will help data users interpret your responses.

Response options

This is an open text question with a limit of 5,000 characters.

Please note that when copying from another document into the ORS, formatting is not retained.

Requested content

General

Provide information about your operations to help data users understand your greenhouse gas (GHG) emissions inventory and corporate climate change strategy. Include information on your business divisions and your emissions-generating activities (e.g. extraction and/or processing/refining of natural resources, electricity generation, transportation, manufacturing etc.).
This information helps data users understand your company’s emissions profile and differences in emissions figures between peer companies.
You may also provide any other information which is relevant to your disclosure.

Explanation of terms

Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.

(C0.2) State the start and end date of the year for which you are reporting data and indicate whether you will be providing emissions data for past reporting years.

Change from last year

Modified question

Rationale

This will help data users interpret your responses.

Ambition: Companies disclose historic data that enables progress over time to be tracked.

Connection to other frameworks

RE100

Response options

Please complete the following table. *Column/row appearance is dependent on selections in this or other questions.

Start date	End date	Indicate if you are providing emissions data for past reporting years	Select the number of past reporting years you will be providing Scope 1 emissions data for*	Select the number of past reporting years you will be providing Scope 2 emissions data for*	Select the number of past reporting years you will be providing Scope 3 emissions data for*
From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Select from: Yes No	Select from: 1 year 2 years 3 years 4 years 5 years Not providing past emissions data for Scope 1	Select from: 1 year 2 years 3 years 4 years 5 years Not providing past emissions data for Scope 2	Select from: 1 year 2 years 3 years 4 years 5 years Not providing past emissions data for Scope 3

Requested content

General

Apply this reporting year to your answers for the entire questionnaire unless the ability is provided to specify other reporting periods.
Please ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
If you are using the Export/Import functionality, please check that the imported date is correct.
The current reporting year is the most recent 12-month period for which data is reported.
This reporting period applies to all answers except where other reporting periods can be disclosed. CDP does not require companies to align their reporting year with their fiscal year. However, when organizations report emissions intensity using a financial metric, both emissions and financial information provided should align with the reporting year reported here.
Note that the investment community generally prefers a company's disclosure period to match the fiscal year for their financial jurisdiction. This facilitates the assessment of environmental performance data in alignment with financial performance data.
CDP recommends that companies provide a year for which they have complete data if possible. However, if you do not have data for the entirety of your reporting year, you have the following options:

- Extrapolate your data to cover the entire reporting year.
- Outline in C6.4 the sources of Scope 1 and 2 emissions within your selected reporting boundary and not included in your disclosure.

Select "No" in column 3 (Indicate if you are providing data for past reporting years) unless you are a first time responder providing emissions from past years or a previous responder to CDP who is restating your emissions data. For more information on this see the note for first-time responders and the note for restating data below.
If multiple years of data are provided, only data pertaining to the most recent reporting year will be scored.

Note for first-time responders:

If you have not provided emissions data before, supply gross global emissions data for the five years prior to the current reporting year in the emissions accounting questions (C6.1 and C6.3) for Scopes 1 and 2, and in C6.5a for Scope 3.
To report emissions data for years prior to the current reporting year, select "Yes" in column 3 ("Indicate if you are providing emissions data for past reporting years"). Then select how many years of emissions data you will be providing for each Scope in columns 4-6. You should aim to provide the same number of past years of emissions data for all Scopes.
This will enable you to enter the corresponding number of past years of data when you reach questions C6.1, C6.3, and C6.5a.

Note for restating data:

You may also choose to restate your emissions data previously supplied to CDP, for example to ensure that your historical data reflects your current organizational boundary.
Reporting recalculated figures for these years is optional. However, if you wish to do this it can provide transparency to stakeholders using your data.
If you choose to restate data previously supplied to CDP, report the dates of those reporting periods here by selecting "Yes" in column 3 ("Indicate if you are providing emissions data for past reporting years"). Then select how many years of emissions data you will be providing for each Scope in columns 4-6.
This will enable you to enter the corresponding number of past years of data when you reach questions C6.1, C6.3, and C6.5a.
For more information on restatements see CDP's technical note on restatements here.

Note for financial services companies:

The number of past years data for Scope 3 will also determine the number of past years data for portfolio emission data in question C-FS14.1c.

(C0.3) Select the countries/areas in which you operate.

Change from last year

No change

Rationale

This will help data users interpret your responses.

Connection to other frameworks

RE100

Response options

Please complete the following table:

Country/area
Select all that apply: [Country/area drop-down list]

Country/area

Select all that apply:

[Country/area drop-down list]

Requested content

General

Select all countries/areas in which you operate from the drop-down menu provided.

(C0.4) Select the currency used for all financial information disclosed throughout your response.

Change from last year

No change

Rationale

CDP encourages companies to report financial figures associated with their impacts, risks, and opportunities. Establishing a single currency will facilitate the collection of comparable financial information. This will benefit investors and other data users when assessing the costs and benefits reported by your organization.

Response options

Please complete the following table:

Currency
Select from: [Currency drop-down list]

Currency

Select from:

[Currency drop-down list]

Requested content

General

Select the currency to be applied to all financial information reported in this disclosure.
For example, if you select USD($), provide metric tons CO₂e per USD($) as the financial intensity metric in question C6.10.

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Change from last year

No change

Rationale

This will help data users interpret your responses.

Connection to other frameworks

RE100

Response options

Select one of the following options:

Financial control
Operational control
Equity share
Other, please specify

Requested content

General

Use a consolidated approach when determining reporting boundaries. CDP recommends that you consult your legal or accounting advisors when doing so.
The “consolidated approach” identifies which entities are included within the reporting boundary. Unless stated otherwise, the information you provide in response to the CDP climate change questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses, etc., within your reporting boundary.
To support the use, tracking, and comparability of reported GHG information, respondents are encouraged to adopt the consolidation approaches based on the GHG Protocol Corporate Standard, outlined in more detail in Chapter 3 of the Standard.
If you have previously disclosed emissions data to CDP and your consolidation approach has changed in the current reporting year, select your new approach here and provide details of the change in C5.1b.

Further clarification of options

The options in the drop-down for this question are based on the GHG Protocol Corporate Standard, and are described in more detail below (text adapted from the GHG Protocol Corporate Standard:

- Financial control: An organization has financial control over an operation if it has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities. Generally, an organization has financial control over an operation for GHG accounting purposes if the operation is treated as a group company or subsidiary for the purposes of financial consolidation.

- Companies using the CDSB framework should select this option.

- Operational control: An organization has operational control over an operation if it or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation.

- Most SMEs select this option.

- Equity share: Under the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation. The equity share reflects the economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share will normally be the same as the ownership percentage. Where this is not the case, the economic substance of the relationship the company has with the operation always overrides the legal ownership form to ensure the equity share reflects the percentage of economic interest. The principle of economic substance taking precedence over legal form is consistent with international financial reporting standards.

In the case of leasing arrangements, please see the GHG Appendix: Categorizing GHG Emissions from Leased Assets and the International Accounting Standard (IAS) 17 on Leases, published by the International Financial Reporting Standards (IFRS) to determine the appropriate scope for those emissions.

Explanation of terms

Company: Throughout this questionnaire, “your company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary. This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms. This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
GHG inventory: a quantified list of an organization’s greenhouse gas emissions and sources.
Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
Reporting boundary: This determines which organizational entities, such as groups, businesses and companies, are included in or excluded from your disclosure. These may be included according to your financial control, operational control, equity share or another measure. Please consistently apply this organizational boundary when responding to questions unless you are specifically asked for data about another category of activities.

Organizational activities: Financial services

(C-FS0.7) Which activities does your organization undertake, and which industry sectors does your organization lend to, invest in, and/or insure?

Question dependencies

This question is mandatory, and your response to it determines which questions will be shown throughout the questionnaire and which response options will be presented within these questions. If no selection is made in column 4, the FW-FS module will not appear.

Change from last year

Minor change

Rationale

CDP aims to deliver a more focused questionnaire for organizations in the financial services sector. This question determines what type of financial institution your organization is and accordingly what financial industry activities your organization performs and/or engages in that are relevant for this disclosure. This will provide context on your financing and/or activities to investors and other data users as well as help your organization set reporting boundaries. The industry sectors listed in this question have a potentially critical impact on forests and/or water according to CDP’s impact assessments, and your selections drive whether the new Forests and Water Security module (FW-FS) will appear.

Ambition: Financial services companies are aware of the industry sectors they lend to, invest in, and/or insure and thus the environmental impact of their portfolios.

Connection to other frameworks

TCFD Financial Sector

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Activity	Does your organization undertake this activity?	Insurance types underwritten*	Industry sectors your organization lends to, invests in, and/or insures*
Banking (Bank)	Select from: Yes No	Select all that apply: General (non-life) Life and/or Health	See drop-down options below
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Industry sectors your organization lends to, invests in, and/or insures (column 4)

Select all that apply:

Exposed to all broad market sectors
Agricultural chemicals
Agricultural products wholesale
Alternative vehicles manufacturing
Animal processing
Animal products wholesale
Apparel design & manufacturing
Aquaculture
Basic plastics
Biofuel supply
Biofuels
Cattle farming
Coal extraction & processing
Cocoa bean farming
Cotton farming
Dairy & egg products
Electronic components manufacturing
Fabric metal components manufacturing
Fast food
Finished wood products
Fruit farming
Grain & corn farming
Grain & corn milling
Hypermarkets & superstores
Inorganic base chemicals
Logging
Metal smelting, refining & forming
Metallic mineral mining
Natural gas extraction
Nitrogenous fertilizers
Non-nitrogenous fertilizers
Oil & gas extraction initial
Oil & gas refining
Oilseed processing
Other animal farming & processing
Other base chemicals
Other crop farming
Other oilseed farming
Palm oil farming
Palm oil processing
Paper products
Personal care & household products
Pharmaceuticals
Poultry & hog farming
Print publishing
Rice farming
Rubber farming
Semiconductors manufacturing
Soybean farming
Soybean processing
Specialty chemicals
Sugarcane farming
Supermarkets, food & drugstores
Textiles
Vegetable farming
Wood & paper materials
Wood & paper products wholesale
None of the above

Requested content

General

If you are an insurance company that invests assets on your own behalf, select “Yes” in column 2 for rows “Insurance underwriting” and “Investing (Asset owner)”, as both insurance underwriting and investment activities are applicable to your business.
If you are a bank that does both lending and asset management, select “Yes” in column 2 for rows “Banking (Bank)” and “Investing (Asset manager)”, as both are applicable to your business.
If you are a multifinance company engaging in any type of lending even if not taking deposits, select “Yes” in column 2 for row “Banking (Bank)”.
If you are a financial conglomerate that undertakes multiple activities listed, please select “Yes” in column 2 for all activities that apply.
If you are a financial services company having only individual clients as opposed to having corporate clients, the guidance for subsequent questions indicate where responses are requested only regarding corporate clients.

Does your organization undertake this activity? (column 2)

For each activity, select “Yes” if the activity occurs inside your organizational boundary.
At a minimum, select “Yes” to each activity for which more than 20% of your organization’s revenue in the reporting year is associated.

Insurance types underwritten (column 3)

This column only appears if you select “Yes” in column 2 for the row “Insurance underwriting (Insurance company)”
Indicate which types of insurance you provide:
- General (non-life): typically defined as any insurance that is not determined to be life insurance. It is also referred to as “Property and casualty” insurance in some regions.
- Life and/or health: life insurance is a type of insurance that pays out upon the death of an insured person, and health (or medical) insurance is a type of insurance that covers the cost of medical care.
CDP recognizes that some questions are not relevant to insurers that provide only life and/or health insurance, and so your selection here determines which response options related to due diligence, exclusion policies and portfolio impact will appear. Therefore, if you are an insurer providing only life and/or health insurance, select only the “Life and/or health” option.
Please note that this is relevant to your insurance underwriting activities only. You are still required to respond to all questions relevant to your investing activities.

Industry sectors your organization lends to, invests in, and/or insures (column 4)

This column only appears if you select “Yes” in column 2 of any activity. Please note that this column will not appear for the row “Insurance underwriting (insurance company)” if “Life and/or health” is the only selection in column 3.
Select all industry sectors your organization supports through your financing, investing and/or insurance activities.
If you lend to, invest in and/or provide insurance to all industry sectors, you can select “Exposed to all broad market sectors” and you do not need to select any other options in the list.
At a minimum, select all industry sectors which either represent at least 0.5% of your portfolio based on either total or outstanding commitments, premiums or committed capital or represent at least $50M of lending or investments.
If you do not lend to, invest in, or insure any of the industries listed here, select “None of the above”
Your industry sector selections here determine whether you are requested to disclose on forests and/or water security issues in module FW-FS Forests and Water Security.

Explanation of terms

Banking (Bank): Financial institutions that mostly undertake lending, deposit taking and other financial intermediary activities. Relevant questions focus on banks’ lending and other activities, which for banks are the entire collection of products, securities and loans held on the balance sheet for which they own the receivable stream. Note that multifinance companies engaging in e.g. motor vehicle lending while not taking deposits are considered banks for the purpose of this questionnaire.
Investing (Asset Management): Also known as investment managers, asset managers are hired by clients to invest assets on their behalf. Relevant questions focus on asset managers’ investing activities.
Investing (Asset Ownership): Include public- and private-sector pension plans, (re)insurance companies, endowments, and foundations that invest assets on their own behalf or on behalf of their beneficiaries. Relevant questions focus on asset owners’ investing activities.
Insurance underwriting (Insurance company): Financial institutions that provide and sell insurance underwriting products and services to their policyholders. Relevant questions focus on insurers’ insurance policy underwriting activities/portfolios. Please note that where references are made to “insurance” in the questionnaire, these are also applicable to reinsurance unless otherwise specified.

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Change from last year

No change

Rationale

ISIN codes and other market identifiers are used globally in the identification of securities such as bonds, futures, and stocks. Providing your organization’s unique identifier(s) will increase the transparency of your response.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Indicate whether you are able to provide a unique identifier for your organization	Provide your unique identifier*
Select from: Yes, an ISIN code Yes, a CUSIP number Yes, a Ticker symbol Yes, a SEDOL code Yes, another unique identifier, please specify No	Text field [maximum 50 characters]

[Add row]

Requested content

General

If your organization has multiple unique identifiers, add a row for each.

Provide your unique identifier (column 2)

This column is only presented if one of the “Yes” options is selected in column 1.
Ensure that you enter the correct format for your unique identifier. For example, ISIN codes include a two-letter country/area code, followed by a nine-character alphanumeric identifier and a single check digit.

Explanation of terms

ISIN: International Securities Identification Number, a 12-character alphanumeric code used to identify a security, such as a stock or bond. It is structured with the first two letters referencing the country/area of origin of the issuer for the security, in accordance with ISO 3166. The second grouping consists of nine characters made up of digits and letters, which is the unique identifying code for the security. In the U.S. and Canada this is known as the CUSIP number (see below). The final digit is the check digit, which ensures the authenticity of the code.
CUSIP number: Committee on Uniform Security Identification Procedures number, a 9-character alphanumeric code that identifies a security for the purposes of facilitating clearing and settlement of trades. CUSIPs are used to distinguish, among other reasons, between multiple share classes or bond tranches. CUSIPs are mostly used in the United States and Canada.
Ticker symbol: A ticker symbol, also known as a stock symbol, is a unique series of letters assigned to a security for trading purposes. Ticker symbols are usually related to the organization’s name, and additional letters denote additional characteristics such as share class or trading restrictions.
SEDOL code: Stock Exchange Daily Official List code, a 7-character identification code consisting of two parts: a 6-character alphanumeric code and a trailing check digit. SEDOLs issued prior to January 26, 2004 were composed only of numbers. SEDOLs serve as the National Securities Identifying Number for all securities issued in the United Kingdom.

C1 Governance

Module Overview

Board-level oversight of climate-related issues is considered best practice and provides an indication of the importance of climate-related issues to the organization.

This module is intended to capture the governance structure of your company with regard to climate change, and provides data users with an understanding of the organization's approach to climate-related issues at the board level and management level.

Key changes

Removed questions:
- C1.2a (2022) – asking where in the organizational structure the positions with responsibility for climate related issues are. These data points have been merged into C1.2

Modified questions:
- C1.1a – has new dropdown options on positions on the board with responsibility for climate-related issues.
- C1.1b – has new response options on governance mechanisms including oversight of public policy engagement and climate transition plans.
- C1.2 – has new response options on management responsibilities including public policy engagement and climate transition plans. C1.2a merged into this question with ‘please explain’ column.
- C1.3a – has new response options on performance indicators and a new column on the contribution of the incentives to the organization’s climate commitments or climate transition plan.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on retirement schemes for the following high-impact sectors:

Financial services

Pathway diagram - questions

This diagram shows the general questions contained in module C1. To access question-level guidance, use the menu on the left to navigate to the question.

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Change from last year

No change

Rationale

This question provides an indication of the importance of climate-related issues to your business. Investors and other data users are interested in an organization's understanding and approach to climate-related risks at the board level; how aligned this is with business strategy, policies, and performance objectives; and how the board monitors progress against targets and goals.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

Response options

Select one of the following options:

Requested content

General

Select “Yes” if the board and/or board committees take account of climate-related issues when, for example:
- reviewing and guiding business strategy, the risk management approach and annual budgets;
- overseeing the organization's employee incentives, major capital expenditures, acquisitions, and divestitures;
- monitoring progress towards targets;
- creating and reviewing environmental policies, strategy or information.

Note for financial services sector companies:

Consider whether the board and/or board committees have oversight of climate-related issues in relation to the financial activities undertaken by your organization such as lending, financial intermediary, investment and/or insurance underwriting activities, in addition to operational activities.
Further details can be provided in subsequent questions C1.1a and C1.1b

Explanation of terms

Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries/areas use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board".

Additional information

For further information on board-level oversight in governance, see TCFD’s recommendations, CDP’s technical note on the TCFD’s recommendations and “How to Set Up Effective Climate Governance on Corporate Boards - Guiding principles and questions” (World Economic Forum, 2019).

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Question dependencies

This question only appears if you select “Yes” in response to C1.1.

Change from last year

Modified question

Rationale

This question provides an indication of the importance of climate-related issues to your business and aims to identify the highest-level individual(s) on the board with direct responsibility for climate-related issues.

Ambition: Companies allocate responsibility for climate-related issues to specific board -level positions/committees.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Position of individual or committee	Responsibilities for climate-related issues
Select from: Board Chair Director on board Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operating Officer (COO) Chief Procurement Officer (CPO) Chief Risk Officer (CRO) Chief Sustainability Officer (CSO) Chief Investment Officer (CIO) [Financial services only] Chief Credit Officer (CCO) [Financial services only] Chief Underwriting Officer (CUO) [ Financial services only] Chief Government Relations Officer (CGRO) Chief Technology Officer (CTO) Other C-Suite Officer President Board-level committee General Counsel Other, please specify	Text field [maximum 2,500 characters]

Position of individual or committee

Responsibilities for climate-related issues

Select from:

Board Chair
Director on board
Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operating Officer (COO)
Chief Procurement Officer (CPO)
Chief Risk Officer (CRO)
Chief Sustainability Officer (CSO)
Chief Investment Officer (CIO) [Financial services only]
Chief Credit Officer (CCO) [Financial services only]
Chief Underwriting Officer (CUO) [ Financial services only]
Chief Government Relations Officer (CGRO)
Chief Technology Officer (CTO)
Other C-Suite Officer
President
Board-level committee
General Counsel
Other, please specify

Text field [maximum 2,500 characters]

[Add Row]

Requested content

General

Report where in the board the responsibility for oversight of climate-related issues lies. This may be with an individual member of the board or a board-level committee, e.g. sustainability committee, risk committee, etc.
Note that this question is asking about direct responsibility for oversight. In practical terms, this is the person or committee at the top of the chain of command specifically managing information on climate-related issues, making decisions about what the company will do and adapting those decisions based on climate-related information.
The CEO is ultimately responsible for everything in the company; however this question is looking to identify board-level responsibility specifically on climate-related issues. While this may be the CEO, it is not necessarily always the case.
Note that this question asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.

Position of individual or committee (column 1)

Select the position of the individual on the board responsible for climate-related issues. If the position is not listed here please select the closest match for your organization and provide the position title in column 2 (“Responsibilities for climate-related issues”).
If oversight falls jointly to the members of a committee, rather than an individual position, you should select “Board-level committee” and provide the name of the committee in column 2 (“Responsibilities for climate-related issues”).
If there is more than one position, please add a row.

Responsibilities for climate-related issues (column 2)

State what responsibilities this position/committee has related to climate issues.
You can use this text field to provide any other relevant information, such as:
- Examples of climate-related decisions that the position/committee made or contributed to.

Explanation of terms

C-suite: A term used to collectively refer to the most senior executive team.

(C1.1b) Provide further details on the board’s oversight of climate-related issues.

Question dependencies

This question only appears if you select “Yes” in response to C1.1.

Change from last year

Modified question

Rationale

Investors and other data users are interested in organizations’ understanding and approach to climate-related risks at the board level; how aligned this is with organizational strategy, financial planning, and external engagement; and the monitoring of progress against corporate targets.

Ambition: Climate-related issues are integrated into the mechanisms used by the board to oversee the company.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

TCFD

Governance recommended disclosure a) Describe the board’s oversight of climate related risks and opportunities.

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Frequency with which climate-related issues are a scheduled agenda item	Governance mechanisms into which climate-related issues are integrated	[FINANCIAL SERVICES ONLY] Scope of board-level oversight	Please explain
Select from: Scheduled - all meetings Scheduled - some meetings Sporadic - as important matters arise Other, please specify	Select all that apply from drop down options below:	Select all that apply: Climate-related risks and opportunities to our own operations Climate-related risks and opportunities to our banking activities Climate-related risks and opportunities to our investment activities Climate-related risks and opportunities to our insurance underwriting activities The impact of our own operations on the climate The impact of our banking activities on the climate The impact of our investing activities on the climate The impact of our insurance underwriting activities on the climate	Text field [maximum 3,000 characters]

Frequency with which climate-related issues are a scheduled agenda item

Governance mechanisms into which climate-related issues are integrated

[FINANCIAL SERVICES ONLY] Scope of board-level oversight

Please explain

Select from:

Scheduled - all meetings
Scheduled - some meetings
Sporadic - as important matters arise
Other, please specify

Select all that apply from drop down options below:

Select all that apply:

Climate-related risks and opportunities to our own operations
Climate-related risks and opportunities to our banking activities
Climate-related risks and opportunities to our investment activities
Climate-related risks and opportunities to our insurance underwriting activities
The impact of our own operations on the climate
The impact of our banking activities on the climate
The impact of our investing activities on the climate
The impact of our insurance underwriting activities on the climate

Text field [maximum 3,000 characters]

[Add Row]

Governance mechanisms into which climate-related issues are integrated (column 2)

Reviewing and guiding annual budgets
Overseeing major capital expenditures
Overseeing acquisitions, mergers, and divestitures
Reviewing innovation/R&D priorities
Overseeing and guiding employee incentives
Reviewing and guiding strategy
Overseeing and guiding the development of a transition plan
Monitoring the implementation of a transition plan
Overseeing and guiding scenario analysis

Overseeing the setting of corporate targets
Monitoring progress towards corporate targets
Overseeing and guiding public policy engagement
Overseeing value chain engagement
Reviewing and guiding the risk management process
Other, please specify

Requested content

General

You should consider the frequency that climate-related issues are a scheduled agenda item for the principal board-level committee having oversight for climate-related issues. This may be a subcommittee of the board, or the full board itself.
If you select “Other, please specify” provide a label for the Frequency with which climate-related issues are a scheduled agenda item.
Note that your response to this question may refer to the position of employees relevant to board oversight mechanisms. In this case, do not include the name of any individual or any other personal data in your response.

Governance mechanisms into which climate-related issues are integrated (column 2)

Select all of the governance mechanisms in which climate-related issues are included.

Scope of board-level oversight [FINANCIAL SERVICES ONLY]

Activities of a business may be both affected by climate change or contribute to climate change. For financial institutions these impacts may materialize via the organization’s own operations, the financial products and services offered to its clients, and/or its investments. This column seeks insight on whether an organization’s board considers both:

- How the risks posed or opportunities presented by climate change impact its business; and conversely
- How its business activities contribute either positively or negatively to climate change.

Please explain (column 3)

Describe the governance mechanisms selected in column 2 and explain how these mechanisms contribute to the board's overall oversight of climate-related issues.
Include such details as what climate issues are scheduled agenda items, who briefs the board and on which matters (e.g. "a report from each Business Head regarding progress towards climate-related targets is reviewed quarterly by the board").
As much as possible, give examples from the reporting year.

(C1.1c) Why is there no board-level oversight of climate-related issues and what are your plans to change this in the future?

Question dependencies

This question only appears if you select “No” in response to C1.1.

Change from last year

No change

Rationale

As board-level oversight of climate-related issues is considered best practice, this question allows organizations to explain why there is no board-level oversight.

Response options

Please complete the following table:

Primary reason	Board-level oversight of climate-related issues will be introduced within the next two years.	Please explain
Text field [maximum 1,000 characters]	Select from: Yes, we plan to do so within the next two years No, we do not currently plan to do so	Text field [maximum 2,400 characters]

Primary reason

Board-level oversight of climate-related issues will be introduced within the next two years.

Please explain

Text field [maximum 1,000 characters]

Select from:

Yes, we plan to do so within the next two years
No, we do not currently plan to do so

Text field [maximum 2,400 characters]

Requested content

Primary reason (column 1)

Provide your organization's main rationale for not currently having board-level oversight of climate-related issues.

Please explain (column 3)

Explain what you plan to implement in the next two years, or why you do not currently plan to do so.

(C1.1d) Does your organization have at least one board member with competence on climate-related issues?

Change from last year

No change

Rationale

Transitioning a business for success in a sustainable future requires related expertise within its decision-making bodies. This capability at board level signals a company’s commitment to understanding and responding to risks, opportunities, and impacts.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Board member(s) have competence on climate-related issues	Criteria used to assess competence of board member(s) on climate-related issues*	Primary reason for no board-level competence on climate-related issues*	Explain why your organization does not have at least one board member with competence on climate-related issues and any plans to address board-level competence in the future*
Select from: Yes No, but we plan to address this within the next two years No, and we do not plan to address this within the next two years Not assessed	Text field [maximum 2,500 characters]	Select from: Important but not an immediate priority Judged to be unimportant, explanation provided Other, please specify	Text field [maximum 2,500 characters]

Board member(s) have competence on climate-related issues

Criteria used to assess competence of board member(s) on climate-related issues*

Primary reason for no board-level competence on climate-related issues*

Explain why your organization does not have at least one board member with competence on climate-related issues and any plans to address board-level competence in the future*

Select from:

Yes
No, but we plan to address this within the next two years
No, and we do not plan to address this within the next two years
Not assessed

Text field [maximum 2,500 characters]

Select from:

Important but not an immediate priority
Judged to be unimportant, explanation provided
Other, please specify

Text field [maximum 2,500 characters]

Requested content

General

Consider whether any kind of skills, experience or expertise assessment of your board is conducted for environmental issues.
Note that your response to this question may refer to the position of employees relevant to board-level competence. In this case, do not include the name of any individual or any other personal data in your response.

Criteria used to assess competence on climate-related issues (column 2)

This column is only presented if “Yes” is selected in column 1.
Detail the specific criteria used to assess the board’s climate-related competence.

Primary reason for no board-level competence on climate-related issues (column 3)

This column is only presented if one of the “No” options is selected in column 1.
Select the primary reason as to why there is no board-level competence on climate-related issues in your organization.
If none of the reasons are applicable to your organization, select “Other, please specify” to provide the primary reason.

Explain why your organization does not have at least one board member with competence on climate-related issues and any plans to address board-level competence in the future (column 4)

This column is only presented if one of the “No” options is selected in column 1.
If you selected “Judged to be unimportant, explanation provided” in column 3, explain the criteria used to decide that board-level competence on climate-related issues is not important for your organization.
Describe any plans to address board-level competence on climate-related issues, such as any measures you have implemented to enhance the climate-related competence of the board.

Management responsibility

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Change from last year

Modified question

Rationale

While it is most important for a member of the board to have responsibility for climate-related issues, assigning management-level responsibility indicates to CDP data users that the organization is committed to implementing its climate-related strategy.

Ambition: Companies allocate management responsibility for climate-related issues to senior roles.

Connections to other frameworks

SDG

Goal 12: Responsible consumption and production

TCFD

Governance recommended disclosure b) Describe management’s role in assessing and managing climate related risks and opportunities.

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Position or committee	Climate-related responsibilities of this position	[FINANCIAL SERVICES ONLY] Coverage of responsibilities	Reporting line	Frequency of reporting to the board on climate-related issues via this reporting line	Please explain
Select from: Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operating Officer (COO) Chief Procurement Officer (CPO) Chief Risks Officer (CRO) Chief Sustainability Officer (CSO) Chief Government Relations Officer (CGRO) Chief Technology Officer (CTO) Chief Investment Officer (CIO) [Financial services only] Chief Credit Officer (CCO) [Financial services only] Chief Underwriting Officer (CUO) [Financial services only] Other C-Suite Officer, please specify President General Counsel Risk committee Sustainability committee Safety, Health, Environment and Quality committee Corporate responsibility committee Credit committee [Financial services only] Investment committee [Financial services only] Responsible Investment committee [Financial services only] Audit committee [Financial services only] Other committee, please specify Business unit manager Energy manager Environmental, Health, and Safety manager Environment/Sustainability manager Facility manager Process operation manager Procurement manager Public affairs manager Risk manager Portfolio/Fund manager [Financial services only] ESG Portfolio/Fund manager [Financial services only] Investment/credit/insurance analyst [Financial services only] Dedicated responsible investment analyst [Financial services only] Investor relations manager [Financial services only] Risk analyst [Financial services only] There is no management level responsibility for climate-related issues Other, please specify	Select all that apply from drop-down options below	Select all that apply: Risks and opportunities related to our banking Risks and opportunities related to our investing activities Risks and opportunities related to our insurance underwriting activities Risks and opportunities related to our own operations	Select from: Reports to the board directly CEO reporting line Risk - CRO reporting line Finance – CFO reporting line Investment – CIO reporting line [Financial services only] Operations – COO reporting line Corporate Sustainability/CSR – CSO reporting line Other, please specify	Select from: More frequently than quarterly Quarterly Half-yearly Annually Less frequently than annually As important matters arise Not reported to the board	Text field [maximum 3,000 characters]

Position or committee

Climate-related responsibilities of this position

[FINANCIAL SERVICES ONLY] Coverage of responsibilities

Reporting line

Frequency of reporting to the board on climate-related issues via this reporting line

Please explain

Select from:

Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operating Officer (COO)
Chief Procurement Officer (CPO)
Chief Risks Officer (CRO)
Chief Sustainability Officer (CSO)
Chief Government Relations Officer (CGRO)
Chief Technology Officer (CTO)
Chief Investment Officer (CIO) [Financial services only]
Chief Credit Officer (CCO) [Financial services only]
Chief Underwriting Officer (CUO) [Financial services only]
Other C-Suite Officer, please specify
President
General Counsel
Risk committee
Sustainability committee
Safety, Health, Environment and Quality committee
Corporate responsibility committee
Credit committee [Financial services only]
Investment committee [Financial services only]
Responsible Investment committee [Financial services only]
Audit committee [Financial services only]
Other committee, please specify
Business unit manager
Energy manager
Environmental, Health, and Safety manager
Environment/Sustainability manager
Facility manager
Process operation manager
Procurement manager
Public affairs manager
Risk manager
Portfolio/Fund manager [Financial services only]
ESG Portfolio/Fund manager [Financial services only]
Investment/credit/insurance analyst [Financial services only]
Dedicated responsible investment analyst [Financial services only]
Investor relations manager [Financial services only]
Risk analyst [Financial services only]
There is no management level responsibility for climate-related issues
Other, please specify

Select all that apply from drop-down options below

Select all that apply:

Risks and opportunities related to our banking
Risks and opportunities related to our investing activities
Risks and opportunities related to our insurance underwriting activities
Risks and opportunities related to our own operations

Select from:

Reports to the board directly
CEO reporting line
Risk - CRO reporting line
Finance – CFO reporting line
Investment – CIO reporting line [Financial services only]
Operations – COO reporting line
Corporate Sustainability/CSR – CSO reporting line
Other, please specify

Select from:

More frequently than quarterly
Quarterly
Half-yearly
Annually
Less frequently than annually
As important matters arise
Not reported to the board

Text field [maximum 3,000 characters]

[Add Row]

Climate-related responsibilities of this position (column 2)

Managing annual budgets for climate mitigation activities
Managing major capital and/or operational expenditures related to low-carbon products or services (including R&D)
Managing climate-related acquisitions, mergers, and divestitures
Providing climate-related employee incentives
Developing a climate transition plan
Implementing a climate transition plan
Integrating climate-related issues into the strategy
Conducting climate-related scenario analysis

Setting climate-related corporate targets
Monitoring progress against climate-related corporate targets
Managing public policy engagement that may impact the climate
Managing value chain engagement on climate-related issues
Assessing climate-related risks and opportunities
Managing climate-related risks and opportunities
Other, please specify

Requested content

General

Provide details of the highest management-level position or committee with responsibility for climate-related issues.
Note that this question asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.

Position or committee (column 1)

Select the best match for the position/committee in your organization, or select "Other, please specify".
The list includes senior positions that may sometimes but not always be at board level, and therefore positions listed in C1.1a are also listed here. Select one of those positions only if the individual has management responsibility for climate-related issues.
If there is more than one senior position/committee with management-level responsibility for climate-related issues and you would like to describe this, you may use the "Add Row button". This is optional. In this case, ensure that the position/committee with the highest level of responsibility is in the top row of the table.
If you select “There is no management level responsibility for climate-related issues", provide your organization’s rationale for that in column 6 “Please explain”.

Climate-related responsibilities of this position (column 2)

This column does not appear if “There is no management level responsibility for climate-related issues” is selected in column 1 “Position or committee”.

Coverage of responsibility [FINANCIAL SERVICES ONLY] (column 3)

This column only appears if “Assessing climate-related risks and opportunities” or “Managing climate-related risks and opportunities” is selected in column 2 “Climate-related responsibilities of this position”.
This column seeks to understand whether the highest management-level position or committee with responsibility for climate-related issues considers both climate-related risks and opportunities related to both your own operations and core financing activities.

Reporting line (column 4)

This column does not appear if “There is no management level responsibility for climate-related issues” is selected in column 1 “Position or committee”.
Select the best match for the reporting line that oversees the position/committee with responsibility for climate-related issues.

Frequency of reporting to the board on climate-related issues via this reporting line (column 5)

This column does not appear if “There is no management level responsibility for climate-related issues” is selected in column 1 “Position or committee”.

Please explain (column 6)

Provide a rationale as to why the climate-related responsibilities selected in column 2 have been assigned to this position/committee.
State the processes by which the position/committee is informed of and monitors climate-related issues.

Explanation of terms

Highest management-level position(s) or committee(s): The most senior individual or committee with operational responsibility for the implementation of decisions taken at the board level and day-to-day management.

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?

Change from last year

No change

Rationale

CDP data users aim to understand the degree to which companies encourage their employees to address climate-related issues and impacts of the business, as well as the mechanisms by which companies are incentivizing certain behaviors and performances.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

S&P Global Corporate Sustainability Assessment

Climate-Related Management Incentives

Response options

Please complete the following table:

Provide incentives for the management of climate-related issues	Comment
Select from: Yes No, not currently but we plan to introduce them in the next two years No, and we do not plan to introduce them in the next two years	Text field (maximum 1,000 characters)

Requested content

General

Note that incentives can be positive (i.e. give people something) or negative (prevent access to something).

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).

Question dependencies

This question only appears if you select “Yes” in response to C1.3.

Change from last year

Modified question

Rationale

Ambition: Executive-level employees are incentivized to achieve measurable climate-related outcomes linked to the organization’s climate commitments and/or transition plan.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

S&P Global Corporate Sustainability Assessment

CEO Compensation - Long-Term Performance Alignment

CEO Compensation - Success Metrics

Climate-Related Management Incentives

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Entitled to incentive	Type of incentive	Incentive(s)	Performance indicator(s)	Incentive plan(s) this incentive is linked to	Further details of incentive(s)	Explain how this incentive contributes to the implementation of your organization’s climate commitments and/or climate transition plan
Select from: Board Chair Board/Executive board Director on board Corporate executive team Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operating Officer (COO) Chief Procurement Officer (CPO) Chief Risk Officer (CRO) Chief Sustainability Officer (CSO) Chief Government Relations Officer (CGRO) Chief Technology Officer (CTO) Chief Investment Officer (CIO) [Financial services only] Chief Underwriting Officer (CUO) [Financial services only] Chief Credit Officer (CCO) [Financial services only] Other C-Suite Officer President General Counsel Executive officer Management group Business unit manager Energy manager Environmental, health, and safety manager Environment/Sustainability manager Facilities manager Process operation manager Procurement manager Public affairs manager Risk manager Portfolio/Fund manager [Financial services only] ESG Portfolio/Fund manager [Financial services only] Investment analyst [Financial services only] Dedicated Responsible Investment staff [Financial services only] Investor Relations staff [Financial services only] Risk management staff [Financial services only] Buyers/purchasers All employees Other, please specify	Select from: Monetary reward Non-monetary reward	Select all that apply: Monetary reward Bonus - % of salary Bonus – set figure Promotion Salary increase Shares Profit share Retirement plan Other, please specify Non-monetary reward Internal company award Internal team/employee of the month/quarter/year recognition Public recognition Other, please specify	Select all that apply from drop-down options below:	Select from: Short-Term Incentive Plan Long-Term Incentive Plan Both Short-Term and Long-Term Incentive Plan Not part of an existing incentive plan This position does not have an incentive plan	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

Entitled to incentive

Type of incentive

Incentive(s)

Performance indicator(s)

Incentive plan(s) this incentive is linked to

Further details of incentive(s)

Explain how this incentive contributes to the implementation of your organization’s climate commitments and/or climate transition plan

Select from:

Board Chair
Board/Executive board
Director on board
Corporate executive team
Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operating Officer (COO)
Chief Procurement Officer (CPO)
Chief Risk Officer (CRO)
Chief Sustainability Officer (CSO)
Chief Government Relations Officer (CGRO)
Chief Technology Officer (CTO)
Chief Investment Officer (CIO) [Financial services only]
Chief Underwriting Officer (CUO) [Financial services only]
Chief Credit Officer (CCO) [Financial services only]
Other C-Suite Officer
President
General Counsel
Executive officer
Management group
Business unit manager
Energy manager
Environmental, health, and safety manager
Environment/Sustainability manager
Facilities manager
Process operation manager
Procurement manager
Public affairs manager
Risk manager
Portfolio/Fund manager [Financial services only]
ESG Portfolio/Fund manager [Financial services only]
Investment analyst [Financial services only]
Dedicated Responsible Investment staff [Financial services only]
Investor Relations staff [Financial services only]
Risk management staff [Financial services only]
Buyers/purchasers
All employees
Other, please specify

Select from:

Monetary reward
Non-monetary reward

Select all that apply:
Monetary reward

Bonus - % of salary
Bonus – set figure
Promotion
Salary increase
Shares
Profit share
Retirement plan
Other, please specify

Non-monetary reward

Internal company award
Internal team/employee of the month/quarter/year recognition
Public recognition
Other, please specify

Select all that apply from drop-down options below:

Select from:

Short-Term Incentive Plan
Long-Term Incentive Plan
Both Short-Term and Long-Term Incentive Plan
Not part of an existing incentive plan
This position does not have an incentive plan

Text field [maximum 2,500 characters]

[Add Row]

Performance indicator(s) (column 4)

Board approval of climate transition plan
Shareholder approval of climate transition plan
Achievement of climate transition plan KPI
Progress towards a climate-related target
Achievement of a climate-related target
Implementation of an emissions reduction initiative
Reduction in absolute emissions
Reduction in emissions intensity
Energy efficiency improvement
Increased share of low-carbon energy in total energy consumption
Increased share of renewable energy in total energy consumption
Reduction in total energy consumption
Increased investment in low-carbon R&D
Increased share of revenue from low-carbon products or services in product or service portfolio

Increased engagement with suppliers on climate-related issues
Increased engagement with customers on climate-related issues
Increased engagement with clients on climate-related issues [Financial Services only]
Increased engagement with investee companies on climate-related issues [Financial Services only]
Increased supplier compliance with a climate-related requirement
Increased value chain visibility (traceability, mapping, transparency)
Company performance against a climate-related sustainability index (e.g., DJSI, CDP Climate Change score etc.)
Implementation of employee awareness campaign or training program on climate-related issues
Increased alignment of portfolio/fund to climate-related objectives [Financial Services only]
Other, please specify

Requested content

General

Note that this question asks about the position of employees entitled to incentives. Do not include the name of any individual or any other personal data in your response.
Add a row to report incentives that your most senior employees are entitled to before reporting those for other employees.

Entitled to incentives (column 1)

Select the best match for the position entitled to the incentive(s), or select “Other, please specify”.

Types of incentive (column 2)

Incentive types include:

- Monetary - a bonus or some form of financial remuneration;
- Non-monetary - employee rewards not resulting directly in any form of financial remuneration.

If the position is entitled to both monetary and non-monetary incentives, enter details of each type of incentive in separate rows.

Incentive(s) (column 3)

The options presented in this column depend on your selection in column 2 “Type of incentive”.

Performance indicator(s) (column 4)

Select the climate-related performance indicator(s) relevant to the incentive(s) for the position selected in column 1. You will have the opportunity to provide further details in column 6 “Further details of incentive”.

Incentive plan(s) this incentive is linked to (column 5)

Indicate whether the climate-related incentive(s) for this position is part of an incentives plan:
- Short-Term Incentive Plans (STIPs) aim to reward employees for their individual contribution to achieving short-term business objectives and maximizing organizational performance over the course of a year.
- Long-Term Incentive Plans (LTIPs) aim to reward and retain employees key to achieving the organization’s long-term strategic goals. Incentives that are part of an employee’s LTIP are usually rewarded over the course of/after a number of years
If the position has an incentive plan but the performance indicator(s) disclosed in column 4 is not part of the plan, select “Not part of an existing incentive plan”.
If the position does not have an incentive plan, or your organization does not implement employee incentive plans, select “This position does not have an incentive plan”.

Further details of incentive(s) (column 6)

Use this field to provide further details of the climate-related incentive(s) the position is entitled to, including:
- The timeframe of the performance indicator(s)
- Quantitative details of the incentive(s) and the performance indicator(s)
- Regional, sectoral, and/or operational context
Provide further details of how the incentive(s) ties in with the position’s employee incentive plan (if relevant).

Explain how this incentive contributes to the implementation of your organization’s climate commitments and/or climate transition plan (column 7)

For example, explain how the performance indicator(s) reported in column 4 is linked to key performance indicators (KPIs) within your climate transition plan, or how it will progress your commitment to reach net-zero emissions by 2050.

Example response

Entitled to incentive	Type of incentive	Incentive(s)	Performance indicator(s)	Incentive plan(s) this incentive is linked to	Further details of incentive(s)	Explain how this incentive contributes to the implementation of your organization’s climate commitments and/or climate transition plan
Chief Executive Officer (CEO)	Monetary reward	Bonus - % of salary	Reduction in absolute emissions	Long- term Incentive Plan	Our CEO is entitled to a bonus of 100% of their salary after 5 years if the organization has achieved a 25% reduction in absolute emissions within those 5 years.	The performance indicator is in line with our near-term science-based target, which forms part of our climate transition plan.
Chief Procurement Officer (CPO)	Monetary reward	Shares	Increased supplier compliance with a climate-related requirement	Short-Term Incentive Plan	If supplier compliance with our requirement of setting a science-based target increases by 10% by the end of the reporting year, our CPO is entitled to an extra 1% of company shares.	This incentive is linked to our commitment to net-zero emissions throughout our supply chain by 2050.

(C-FS1.4) Does your organization offer its employees an employment-based retirement scheme that incorporates ESG criteria, including climate change?

Change from last year

No change

Rationale

This question seeks to understand whether the financial institution offers a retirement scheme that considers ESG criteria (specifically climate change and/or climate-related indicators) in their holdings. Consideration of ESG factors in retirement schemes contributes to the financing of a sustainable economy and demonstrate that organizations consider such risks and opportunities in their assessment of plan options. This question allows CDP data users to understand how the organization is contributing to sustainable/ESG investing.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Employment-based retirement scheme that incorporates ESG criteria, including climate change	Describe how funds within the retirement scheme are selected and how your organization ensures that ESG criteria are incorporated*	Provide reasons for not incorporating ESG criteria into your organization’s employment-based retirement scheme and your plans for the future*
Select from: Yes, as the default investment option for all plans offered Yes, as an investment option No, but we plan to in the next two years No, and we do not plan to in the next two years No, due to a compulsory national scheme	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

Requested content

Employment-based retirement scheme that incorporates ESG criteria, including climate change (column 1)

Select the option which best describes your use of employment-based retirement schemes that incorporates ESG criteria, including climate change, if any.
Select “Yes, as the default investment option for all plans offered” if employees are automatically enrolled in a retirement scheme that incorporates ESG criteria.
Select “Yes, as an investment option” if employees need to actively opt-in in a retirement scheme that incorporates ESG criteria.

Describe how funds within the retirement scheme are selected and how your organization ensures that ESG criteria are incorporated (column 2)

State whether the funds within the retirement scheme are passively or actively managed (e.g. if they follow an index or an actively managed ESG investment strategy).
Briefly describe the ESG criteria used to select the funds within the retirement scheme.

Provide reasons for not incorporating ESG criteria into your organization’s employment-based retirement scheme and your plans for the future (column 3)

This column only appears if you select either “No, but we plan to do in the next two years” or “No, and we do not plan to in the next two years” in column 1.
Provide a company-specific description as to why you do not incorporate ESG criteria into your organization’s employment-based retirement scheme.
State if and how you plan to incorporate ESG criteria into your organization’s employment-based retirement scheme in the future.

Explanation of terms

Employment-based retirement scheme: This covers all types of corporate retirement saving schemes that an organization may offer its employees. Depending on jurisdiction, these may be referred to as pension schemes, superannuation, retirement plans, 401K, etc. These may be either defined benefit or defined contribution types.
Default investment option: The investment plan that is selected automatically for a member joining the retirement scheme.
Investment option: The investment plan that is optional for a member joining the retirement scheme; they may choose this option over the default investment option.
ESG criteria: Environmental, social and governance factors.

C2 Risks and opportunities

Module Overview

Evaluating exposure to climate-related risks and opportunities over a range of time horizons allows for a strategy for the transition to a net-zero carbon economy recognized in the Paris Agreement and UN SDGs. This module focuses on processes for identifying, assessing, and responding to climate-related issues as well as on the climate-related risks and opportunities identified by your organization. This information helps investors to assess the potential impacts to valuations and the adequacy of the company’s risk response.

Many of the challenges you face when reporting on climate-related issues are common to other aspects of corporate reporting, requiring you to provide statements about your prospective condition. Some organizations, particularly accounting firms and their governing bodies, have published guidance about how to prepare statements that contain forward-looking information.

You may wish to consult with your financial, legal, and/or compliance departments for advice on your company’s general approach to the provision of forward-looking statements and information concerning risks.

Note that the questions relate to “inherent” risk and not the “residual” risk that remains after management measures have been taken into account.

Note for financial services sector companies:

The TCFD recommendations highlight the importance of the financial sector considering the impacts of climate-related issues in the context of their financing activities. When evaluating exposure to climate-related risks and opportunities, financial services sector companies should primarily consider the impact on their lending, financial intermediary, investing and/or insurance underwriting activities, in addition to operational activities.

Key changes

Modified guidance:
- C2.2 – guidance updated to request that companies include an explanation of the frequency of assessment and time horizons reported when describing their process for identifying, assessing and responding to climate-related risks and opportunities.
- C2.3a – clarification on how companies who cannot provide an absolute figure may report the cost of response to a risk.
- C2.4a – clarification on how companies who cannot provide an absolute figure may report the cost to realize an opportunity.

Click here for a list of all changes made this year.

Sector specific content

Additional questions for financial services sector companies.

Pathway diagram - questions

This diagram shows the general questions contained in module C2. To access question-level guidance, use the menu on the left to navigate to the question.

Management processes

(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?

Change from last year

No change

Rationale

For many companies, climate change poses significant financial challenges and opportunities, now and in the future. CDP asks about a process for identifying, assessing, and responding to climate-related risks and opportunities so that data users may gauge the thoroughness of your company's understanding of its exposure to climate-related issues.

Connection to other frameworks

TCFD

Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.

Risk Management recommended disclosure b) Describe the organization’s processes for managing climate-related risks

Risk Management recommended disclosure c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.

Response options

Select one of the following options:

Requested content

General

Select "Yes" if you have any process in place for identifying, assessing, and responding to climate-related risks and opportunities, regardless of how thorough it is. You will be able to provide further details in the subsequent questions.
Only select "No" if you do not have any form of process for identifying, assessing, and responding to climate-related issues.

Explanation of terms

Climate-related risk, in line with the TCFD, refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.
Climate-related opportunity, in line with the TCFD, refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.
Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).

(C2.1a) How does your organization define short-, medium- and long-term time horizons?

Change from last year

No change

Rationale

CDP has added this question to understand the different timescales at which businesses consider climate-related issues in their risk assessment process and in strategy and financial planning. Subsequent questions on risk and opportunity disclosure, strategy and financial planning, relate to different time horizons, hence their definition is requested here.

Connection to other frameworks

TCFD

Strategy recommended disclosure a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

Response options

Please complete the following table:

Time horizon	From (years)	To (years)	Comment
Short-term	Numerical field [enter a number from 0-100 using no decimals or commas]	Numerical field [enter a number from 0-100 using no decimals or commas]	Text field [maximum 2,400 characters]
Medium-term
Long-term

Requested content

General

This question is seeking a definition of what your organization considers to be short-, medium-, and long-term horizons in the context of climate-related risks and opportunities.
If your long-term time horizon is open-ended, you may leave the column “To (years)” blank.

Comment (column 4) (optional)

You may specify if this time horizon for assessing climate-related risks and opportunities is aligned with other business practices time horizons and provide any other relevant information.

Additional information

Time horizons of climate-related risks

There is a common perception that all climate-related risks are “long-term”, arising in 10+ years; however, transitional risks such as policies, technology, and markets are emerging earlier than this, and physical risks including the frequency and intensity of storms, floods, and droughts are recognized risks today.
Evaluating exposure to climate-related risks over a range of time horizons allows for a strategy for the transition to a low-carbon economy as recognized in the Paris Agreement and UN SDGs.

TCFD position on time horizons

Because the timing of climate-related impacts on organizations will vary, TCFD believes specifying timeframes across sectors could hinder organizations’ consideration of the climate-related risks and opportunities specific to their businesses. TCFD is therefore not defining timeframes and encourages respondents to decide how to define their own timeframes according to the life of their assets, the profile of the climate-related risks they face, and the sectors and geographies in which they operate.
In assessing climate-related issues, organizations should be sensitive to the timeframes used to conduct their assessments. While many organizations conduct operational and financial planning over a 1-2 year timeframe, and strategic and capital planning over a 2-5 year timeframe, climate-related risks may have implications over a longer period. It is therefore important for organizations to consider the appropriate timeframes when assessing climate-related risks.

(C2.1b) How does your organization define substantive financial or strategic impact on your business?

Change from last year

No change

Rationale

The subsequent questions will ask you to disclose risks and opportunities with the potential to have a substantive financial or strategic impact on your business. What is considered a substantive impact for a business will be different for each responding company, therefore explaining your threshold for classifying potential impacts as substantive is critical context for CDP data users.

Response options

This is an open text question with a limit of 5,000 characters. Please note that when copying from another document into the ORS, formatting is not retained.

Requested content

General

Describe and quantify, in detail, how your organization defines a ‘substantive impact’ on your business at the corporate level, in the context of a climate-related risk.
What constitutes a substantive impact will vary between companies. For example, a 1% reduction in profits will have different effects on different companies depending on their respective profit margins. Companies are therefore asked to determine ‘substantive’ in the way that they would do for their business decision-making. For example, a substantive impact of relatively high magnitude could occur because of a large number for any one of the following aspects, or because of a small number for all three combines to create a larger impact:

- the proportion of business units affected
- the size of the impact on those business units
- the dependency of the organization on that unit
- the potential for shareholder or customer concern.

Explanation of terms

Substantive impact on the business: an impact that has a considerable or relatively significant effect on an organization at the corporate level. This could include operational, financial or strategic effects that undermine the entire business or part of the business.

Example response

A substantive financial or strategic impact on our business is defined in our risk management process as follows: either the effect on revenue is more than EUR 50 million and the probability of occurrence is above 25%, or the effect on revenue is EUR 10-50 million and the probability of occurrence is above 75%.

(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities.

Question dependencies

This question only appears if you select "Yes" in response to C2.1.

Change from last year

Modified guidance

Rationale

Understanding how a company integrates the consideration of climate-related issues into its overall risk management framework provides insight into the thoroughness of the risk management processes employed by organizations. Companies that fully integrate and frequently assess climate-related risks and opportunities across their value chain and over a range of time-horizons may be better equipped to handle longer-term uncertainties and liabilities.

Connection to other frameworks

TCFD

Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.

Risk Management recommended disclosure b) Describe the organization’s processes for managing climate-related risks

Risk Management recommended disclosure c) Describe how processes for identifying, assessing, and managing climate related risks are integrated into the organization’s overall risk management.

S&P Global Corporate Sustainability Assessment

Climate Risk Assessment - Physical Risks

Climate Risk Assessment - Transition Risks

Climate Change Strategy

TCFD Disclosure

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Value chain stage(s) covered	Risk management process	Frequency of assessment	Time horizon(s) covered	Description of process
Select all that apply: Direct operations Upstream Downstream [not shown to FS]	Select from: Integrated into multi-disciplinary company-wide risk management process A specific climate-related risk management process	Select from: More than once a year Annually Every two years Every three years or more Not defined	Select all that apply: Short-term Medium-term Long-term None of the above/Not defined	Text field [maximum 7,000 characters]

[Add Row]

Requested content

General

You are requested to provide information on the risk management processes at all the stages of the value chain applicable to your organization.
Upstream value chain refers to activities, products and services that are inputs to the activities of your business, sourced from third parties. This may include the regulations and policies applied by governments, or the products and services provided by your suppliers (i.e. the supply chain).
Downstream value chain refers to the third parties benefiting from the outputs, products and services of your business activities. This may be your customers and clients, or the organizations and projects your business invests in.
Note that if your response to this question refers to the position of employees relevant to your risk management processes, do not include the name of any individual or any other personal data in your response.

Value chain stage (column 1)

Select all the stages of the value chain that your risk management process covers.
If you have separate processes for different value chain stages, you may add rows to describe those processes separately.

Risk management process (column 2)

Select the option that best describes how your process for identifying, assessing, and responding to climate-related risks and opportunities is integrated into your overall risk management framework. If your organization has more than one process in place, select the one that is most commonly employed. You will have the opportunity to expand further in column 5 “Description”.

- Integrated into multi-disciplinary company-wide risk management processes: a documented process where climate-related risks and opportunities are identified and assessed in an integrated way in the company’s centralized enterprise risk management program covering all possible types/sources of risks and opportunities
- A specific climate-related risk management process: a documented process that identifies, assesses and responds to climate change risks and opportunities separate from other business risks and opportunities.

Frequency of assessment (column 3)

Select the option that describes how often climate-related risks are assessed. If climate-related risk management is integrated into company-wide risk management processes then the frequency of assessment will be the same throughout the enterprise risk management process.

Time horizons covered (column 4)

Choose all the time horizons that are considered in your climate-related risk assessment. For example, if you only consider risks that may impact your business in the short term, in line with your definition of time horizons provided in C2.1a, you should select “short-term” here. Or, if you consider, short-term, medium-term and long-term horizons, select all three.
In case none of the time horizons provided in C2.1a are covered by this risk management process, select “None of the above/ Not defined” and explain the applicable time horizon or why it is not defined in the column “Description”

Description (column 5)

Describe your process for identifying, assessing and responding to climate-related risks and opportunities, including:

- The process used to determine which risks and opportunities could have a substantive financial or strategic impact on the organization;
- How your organization makes decisions to mitigate, transfer, accept or control the identified climate-related risks and to capitalize on opportunities.
- An explanation of the frequency of assessment and time horizons reported in columns 3 and 4.

Note for financial services sector companies

This question is asking about the processes used to identify, assess and respond to climate-related risks and opportunities within your operations and your supply chain.
There is a separate question on portfolio risk management.

Explanation of terms

Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).

(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?

Question dependencies

This question only appears if you select "Yes" in C2.1.

Change from last year

No change

Rationale

Data users need to know which risk types are considered in climate-related risk assessments. Not all risk types are relevant to each organization. The aim of this question is to ascertain how thoroughly companies examine multiple risk types as an indication of the comprehensiveness of the risk assessment.

Connection to other frameworks

TCFD

Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.

S&P Global Corporate Sustainability Assessment

Climate Risk Assessment - Physical Risks

Climate Risk Assessment - Transition Risks

Climate Change Strategy

TCFD Disclosure

Response options

Please complete the following table:

Risk type	Relevance & inclusion	Please explain
Current regulation	Select from: Relevant, always included Relevant, sometimes included Relevant, not included Not relevant, included Not relevant, explanation provided Not evaluated	Text field [maximum 2,500 characters]
Emerging regulation
Technology
Legal
Market
Reputation
Acute physical
Chronic physical

Requested content

Please explain (column 3)

Your response should explain:

- Your decision on the relevance and inclusion of this risk type in your risk assessment.
- For every risk type deemed relevant, an example of a specific risk considered in your assessment.
- If you choose ‘Not relevant, explanation provided’: why this risk type is not deemed relevant.

Note for financial services sector companies:

Consider which climate-related risks are relevant to your lending, investment, insurance underwriting and/or financial intermediary activities, in addition to your operational risks.
Consider characterizing your climate-related risks in the context of traditional industry risk categories such as credit risk, market risk, liquidity risk, and operational risk.
Banks:

- Describe climate-related risks (transition and physical) in lending and other financial intermediary business activities by geography, industry, credit quality or average tenor.

Insurance companies:

- Describe climate-related risks on re-/insurance portfolios by geography, business division, or product segments, including the following risks:
- Physical risks from changing frequencies and intensities of weather-related perils;

- Transition risks resulting from a reduction in insurable interest due to a decline in value, changing energy costs, or implementation of carbon regulation; and
- Liability risks that could intensify due to a possible increase in litigation. For example, the risk of an increase in claims for defense costs in relation to directors and officers (D&O) liability.

- Additionally, as an asset owner, please also describe the climate-related risks relevant to your investment portfolio.

Asset managers:

- Describe the climate-related risks relevant to your product or investment strategy by geography, industry, or product segment.

Explanation of terms

Climate-related risks: TCFD divides climate-related risks into two major categories: risks related to the transition to a lower-carbon economy and risks related to the physical impacts of climate change.
Transition risks

- Current and emerging regulation: policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change;
- Technology: all risks associated with technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic system;
- Legal: all climate-related litigation claims;
- Market: all shifts in supply and demand for certain commodities, products, and services;
- Reputation: all risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy.

Physical risks

- Acute: risks that are event-driven, including increased severity of extreme weather events, such as cyclones, hurricanes, or floods;
- Chronic: longer-term shifts in climate patterns (e.g. sustained higher temperatures) that may cause sea level rise or chronic heat waves.

Upstream and downstream risks: defined based on the location of the risks in your value chain and can also refer to any of the risk types above i.e. emerging regulation, technology, legal, market reputation etc.

Example response

Risk type	Relevance & inclusion	Please explain
Current regulation	Relevant, always included	As an energy company, we are subject to many regulatory requirements relating to climate change, including the EU Emissions Trading Scheme (ETS), Energy Savings Opportunity Scheme (ESOS) and Energy Company Obligation (ECO). Due to the significance of such regulations to our business, we closely monitor and assess risks associated with any changes through their inclusion in our enterprise risk management (ERM) process. Operating costs of our business are expected to increase by an average of £300 per new regulatory measure introduced by the government.
Emerging regulation	Relevant, always included	We continually monitor, review, and assess proposed and incoming regulatory change as part of our ERM framework to mitigate and manage potential impacts on our business. Our company invested £500m in our business solutions over 2016-2018 and uncertainty over UK regulations, such as flexible generation incentives for distributed generation, could potentially affect our return on that investment therefore it was vital that regulatory changes relevant to climate change and with the potential to impact this investment were identified at an early stage and the required mitigations implemented.
Technology	Relevant, always included	Decarbonization is a significant driver of technology development within the energy sector and vice versa, including distributed energy products and services, such as demand response and energy optimization. We are currently launching a hybrid heat pump trial to increase our understanding of consumer behaviors around a technology we believe will play a significant role in the transition.
Legal	Relevant, always included	Failure to comply with our legal obligations in relation to climate change is a key risk to our business. For example, failure to deliver our obligations under ECO to improve domestic energy efficiency and invest in reducing heating costs for vulnerable customers could lead to enforcement action, including fines to compensate for consumer detriment.
Market	Relevant, always included	Consumer behavior is changing due to factors such as energy efficiency and climate change, leading to reduced energy usage volumes per customer in some markets. With 70% of our total revenue coming from energy supply, the risk from reduced demand is that our revenue will also reduce by approximately 2 million USD annually.
Reputation	Relevant, always included	An example of this risk type is damage to our brand, trust and reputation due to failure to manage our impact on society including climate change. For example, due to one of our partner company’s stake in a coal power plant, there was a risk of adverse media attention which could result in us losing customers.
Acute physical	Relevant, always included	Acute climate risks, such as extreme weather events, pose numerous challenges to our operations and assets, due to the potential for disruption to critical processes and/or infrastructure, as well as the potential for increased customer demand for our services. For example, flooding, snow and ice events impact our employees’ ability to travel to work safely and may drive an increased demand for domestic heating engineer callouts at the same time, placing pressure and safety risks on our workforce.
Chronic physical	Relevant, sometimes included	Long-term changes to weather patterns present both risks and opportunities for our business. Given the long-term nature of these trends and global scale of impact, such risks are considered through our annual strategic planning processes. While the possibility of milder winters could lead to a reduction in energy demand for heating, warmer summers would likely increase demand for cooling during the day and night, which could lead to significant changes in patterns of demand – both impacts could affect our supply revenue.

(C-FS2.2b) Do you assess your portfolio's exposure to climate-related risks and opportunities?

Question dependencies

This question only appears if you select “Yes” in response to C2.1.
Rows in this question will be presented according to the activities reported in C-FS0.7.

Change from last year

No change

Rationale

The TCFD recommendations highlight the importance of the financial sector evaluating its exposure to climate-related risks and opportunities. When evaluating exposure to climate-related risks and opportunities, organizations in the financial sector should primarily consider the impact on their financial portfolios including lending, investment, insurance underwriting and/or other financial intermediary activities.

Connection to other frameworks

TCFD

Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.

NZAM (FS Only)

Commitment 3
Commitment 6

Response options

Please complete the following fixed row table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio*	We assess the portfolio's exposure	Explain why your portfolio's exposure is not assessed and your plans to address this in the future*
Banking (Bank)	Select from: Yes No, but we plan to in the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Requested content

Portfolio (column 1)

The rows presented in this question depend on the activities you selected in question C-FS0.7.

Explain why your portfolio's exposure is not assessed and your plans to address this in the future (column 3)

This column only appears if any “No…” option is selected in column 2.

Explanation of terms

Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
Climate-related risk: In line with TCFD, refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.
Climate-related opportunity: In line with TCFD, refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.

(C-FS2.2c) Describe how you assess your portfolio's exposure to climate-related risks and opportunities.

Question dependencies

This question only appears if you selected “Yes” to any of the activities listed in C-FS2.2b. A row will appear in this table for each portfolio for which you selected “Yes” in column 2 of question C-FS2.2b.

Change from last year

No change

Rationale

The TCFD recommendations highlight the importance of the financial services sector considering the potential impacts of climate-related risks and opportunities in the context of their financing activities. When evaluating exposure to climate-related risks and opportunities, organizations in the financial sector should primarily consider the potential impact on their financial portfolios including lending, financial intermediary, investment and/or insurance underwriting activities.

Connection to other frameworks

TCFD

Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.

NZAM (FS Only)

Commitment 3

Commitment 6

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio*	Type of risk management process	Proportion of portfolio covered by risk management process	Type of assessment	Time horizon(s) covered	Tools and methods used	Provide the rationale for implementing this process to assess your portfolio's exposure to climate-related risks and opportunities
Banking (Bank)	Select from: Integrated into multi-disciplinary company-wide risk management process A specific climate-related risk management process	Percentage field [enter a percentage from 0-100]	Select from: Qualitative only Quantitative only Qualitative and quantitative	Select all that apply: Short-term Medium-term Long-term Not defined	Select all that apply: UNEP FI Portfolio Impact Analysis Tool for Banks UNEP FI Corporate Impact Analysis Tool 2DII Paris Agreement Capital Transition Assessment (PACTA) tool The Transition Pathway Initiative (TPI) 2 Degrees of Separation Portfolio temperature alignment Risk models Scenario analysis Stress tests Internal tools/methods External consultants Other, please specify	Text field [maximum 5,000 characters]
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Requested content

General

Consider how you assess your portfolio’s exposure to climate-related risks and opportunities in your lending, financial intermediary, investment and/or insurance underwriting activities.

Portfolio (column 1)

The options which appear are driven by your selections in column 2 of C-FS2.2b

Type of risk management process (column 2)

Select whether you assess your portfolio’s exposure to climate-related risks and opportunities as an integrated part of your company-wide risk management process or whether you have a specific climate-related risk management process.

Proportion of portfolio covered by risk management process (column 3)

For each of your portfolios, disclose the proportion of the portfolio covered by a risk management process.
Coverage by portfolio value can be based on either total or outstanding commitments, premiums, and/or committed capital.

Type of assessment (column 4)

Disclose whether the assessment is qualitative, quantitative, or both.
Qualitative assessment is descriptive and may include stakeholder involvement, meetings, interviews, and analysis of scenario impacts or descriptive risk matrices.
Quantitative assessment is expressed in numbers and involves indicators, indices, variables and metrics such as probabilistic or stochastic risk modelling considering frequency and severity of events.

Tools and methods used (column 6)

Select which tools and methodologies you use to assess your portfolio’s exposure to climate and/or forests-related risks:
- UNEP FI Portfolio Impact Analysis Tool for Banks: Helps banks analyze the impacts associated with their retail (consumer and business banking) and wholesale (corporate and investment banking) portfolios
- UNEP FI Corporate Impact Analysis Tool: Enables users to perform a holistic analysis of companies, based on the reality of those companies’ business activities and the needs of the countries in which they operate, whether for sourcing, production or sales
- 2DII Paris Agreement Capital Transition Assessment (PACTA) tool: Portfolio-level analysis for equities and fixed income climate transition risks in power and some industrial sectors (cement and steel)
- The Transition Pathway Initiative (TPI): Bottom-up assessment of how listed companies are preparing for the transition to a low-carbon economy
- 2 Degrees of Separation: In-depth sector and company-level analysis of oil and gas companies’ upstream exposure to climate transition risks
- Portfolio temperature alignment: Portfolio alignment tools are used to generate metrics to determine the overall level of alignment of a portfolio, by assessing the performance of its individual companies.
- Risk models: computerized systems, such as catastrophe models, used to assess and quantify the financial impact of a range of potential future disasters
- Scenario analysis: Considers how an organization is impacted by changes to policy/regulation, technology or market changes aimed at emissions reductions, energy efficiency, subsidies/taxes or other constraints or incentives implemented to facilitate a low carbon economy (for example, the ‘well below 2°C’ goal committed to by the Paris Agreement). Assesses the impact of acute or chronic physical change related to climate change such extreme weather, rising sea levels, water shortage, etc.
- Stress tests: Process of evaluating a number of statistically defined possibilities to determine the most damaging combination of events, and the loss they would produce. The likelihood of such an event is then assessed
If you select “Other, please specify”, please describe the tools and methodologies you use to assess your portfolio’s exposure.

Provide the rationale for implementing this process to assess your portfolio's exposure to climate-related risks and opportunities (column 7)

Provide reasons for why you implemented this specific process to assess your portfolio’s exposure to climate-related risks and opportunities.
You may also describe the advantages and disadvantages of the process chosen.
Explain how you defined and calculated the proportion of portfolio covered by your risk management process and if the assessment included systemic and sector risks.

Explanation of terms

Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For bank lending, this is the entire collection of products and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(C-FS2.2d) Does your organization consider climate-related information about your clients/investees as part of your due diligence and/or risk assessment process?

Question dependencies

Rows in this question will be presented according to the organizational activities reported in C-FS0.7. This question is not shown if “Insurance underwriting (Insurance company)” is the ONLY selection in C1 of C-FS0.7 and “Life and/or health” is the ONLY section in C2 of C-FS0.7.

Change from last year

No change

Rationale

Connection to other frameworks

TCFD

Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.

Risk management recommended disclosure b) Describe the organization's processes for managing climate-related risks.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Portfolio*	We consider climate-related information	Explain why you do not consider climate-related information and your plans to address this in the future
Banking (Bank)	Select from: Yes No, but we plan to do so in the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Requested content

General:

For each of your financial portfolios, disclose whether you consider climate-related information about your clients /investee companies as part of your client screening, risk assessment and/or due diligence process.
Incorporating climate-related information into business processes can take many forms. This assessment is dependent on the organization’s client base and scale of business.
Banks:
- Incorporating clients’ climate-related information in borrower and deal-level credit risk and other pre-lending assessments such as due diligence and “know your client” processes.
- For the purpose of this question focus on your commercial/corporate clients
Asset managers:
- Incorporating investees’ climate-related information in fund allocation and investment risk assessment processes.
Insurance companies
- Incorporating policyholders’ climate-related information in insurance underwriting due diligence processes.

Portfolio (column 1)

The options which appear are driven by the activities you selected in C-FS0.7

Explain why you do not consider climate-related information and your plans to address this in the future (column 3)

This column only appears if any “No…” option is selected in column 2

Explanation of terms

Due diligence: Research or investigation performed by the financial services company before entering into an agreement or a financial transaction with another party. There are many types of due diligence. Relevant ones may include client due diligence, environmental due diligence and Know Your Client (KYC) processes.
Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For bank lending, this is the entire collection of products and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(C-FS2.2e) Indicate the climate-related information your organization considers about clients/investees as part of your due diligence and/or risk assessment process, and how this influences decision-making.

Question dependencies

This question appears if “Yes” is selected in any row in C-FS2.2d. A row will appear if “Yes” is selected in the corresponding row in C-FS2.2d.

Change from last year

No change

Rationale

Considering climate-related information about clients/investees in the initial phases of risk assessment and/or as part of your due diligence process helps investors and organizations in the financial sector better understand their value chain’s exposure to climate-related risks and opportunities. Data users are interested in what information financial institutions consider, about which clients/investees, and whether that is enough for them to make informed lending, investment and/or insurance underwriting decisions and thus mitigate climate-related risks within their portfolio.

Connection to other frameworks

TCFD

Risk management recommended disclosure a) Describe your organization’s processes for identifying and assessing climate-related risks.

Risk management recommended disclosure b) Describe the organization’s processes for managing climate-related risks.

NZAM (FS Only)

Commitment 7

Response options

Please complete the following table. You are able to add rows by using the “Add another” button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio*	Type of climate-related information considered	Process through which information is obtained	Industry sector(s) covered by due diligence and/or risk assessment process	State how this climate-related information influences your decision-making
Select from: Banking (Bank) Investing (Asset manager) Investing (Asset owner) Insurance underwriting (Insurance company)	Select all that apply: Emissions data Energy usage data Emissions reduction targets Climate transition plans TCFD disclosures Other, please specify	Select all that apply: Directly from the client/investee From an intermediary or business partner Data provider Public data sources Other, please specify	Select all that apply: Energy Materials Capital Goods Commercial & Professional Services Transportation Automobiles & Components Consumer Durables & Apparel Consumer Services Retailing Food & Staples Retailing Food, Beverage & Tobacco Household & Personal Products Health Care Equipment & Services Pharmaceuticals, Biotechnology & Life Sciences Software & Services Technology Hardware & Equipment Semiconductors & Semiconductor Equipment Telecommunication Services Media & Entertainment Utilities Real Estate Other, please specify	Text field [maximum 2,500 characters]

Portfolio*

Type of climate-related information considered

Process through which information is obtained

Industry sector(s) covered by due diligence and/or risk assessment process

State how this climate-related information influences your decision-making

Select from:

Banking (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Select all that apply:

Emissions data
Energy usage data
Emissions reduction targets
Climate transition plans
TCFD disclosures
Other, please specify

Select all that apply:

Directly from the client/investee
From an intermediary or business partner
Data provider
Public data sources
Other, please specify

Select all that apply:

Energy
Materials
Capital Goods
Commercial & Professional Services
Transportation
Automobiles & Components
Consumer Durables & Apparel
Consumer Services
Retailing
Food & Staples Retailing
Food, Beverage & Tobacco
Household & Personal Products
Health Care Equipment & Services
Pharmaceuticals, Biotechnology & Life Sciences
Software & Services
Technology Hardware & Equipment
Semiconductors & Semiconductor Equipment
Telecommunication Services
Media & Entertainment
Utilities
Real Estate
Other, please specify

Text field [maximum 2,500 characters]

[Add row]

Requested content

General

For each of your financial portfolios, disclose whether you consider climate-related information about your clients/investee companies as part of your screening, risk assessment and/or due diligence process. For example:
Banks:
- Considering clients’ climate-related information in borrower and deal-level credit risk and other pre-lending assessments such as due diligence and “know your client” processes.
- For the purpose of this question, focus on your commercial/corporate clients.
Asset managers:
- Considering investees' climate-related information in fund allocation and investment risk assessment processes.
Insurance companies:
- Considering policyholders’ climate-related information in insurance underwriting due diligence processes.

Portfolio (column 1)

A row will appear if “Yes” is selected in the corresponding row in C-FS2.2d.

Type of climate-related information considered (Column 2)

Select which type of climate-related information you consider as part of your screening, risk assessment and/or due diligence process.

Process through which information is obtained (Column 3)

Select how you obtain climate-related information about clients/investee companies. This information could either be requested from the client/investee directly or gathered from other data sources.

Industry sector(s) covered by due diligence and/or risk assessment process (Column 4)

Select which industry sectors you cover in your due diligence and/or risk assessment process

State how this climate-related information influences your decision-making (column 5)

If you conduct enhanced due diligence or risk assessments involving climate-related information for certain clients only, describe what kinds of clients are considered relevant, and why.
Comment on the proportion of clients for which this information is considered.
Describe how you use the information you consider and if it has any bearing on the outcomes of due diligence or risk assessment processes.

Explanation of terms

Due diligence: Research or investigation performed by the financial services company before transacting with another party.

(C2.2g) Why does your organization not have a process in place for identifying, assessing, and responding to climate-related risks and opportunities, and do you plan to introduce such a process in the future?

Question dependencies

This question only appears if you select “No” in response to C2.1.

Change from last year

No change

Rationale

A thorough risk and opportunity assessment is integral to addressing climate-related issues. Therefore data users want to understand why your company does not carry out such assessments, as well as any plans to do so in the future. Without a process for managing risks and opportunities, companies may be unable to determine the best ways to prepare for future uncertainties and liabilities, or to capitalize on available opportunities.

Response options

Please complete the following table:

Primary reason	Please explain
Select from: We are planning to introduce a climate-related risk management process in the next two years Important but not an immediate business priority Judged to be unimportant, explanation provided Lack of internal resources Insufficient data on operations No instruction from management Other, please specify	Text field [maximum 1,500 characters]

Primary reason

Please explain

Select from:

We are planning to introduce a climate-related risk management process in the next two years
Important but not an immediate business priority
Judged to be unimportant, explanation provided
Lack of internal resources
Insufficient data on operations
No instruction from management
Other, please specify

Text field [maximum 1,500 characters]

Requested content

Primary reason (column 1)

Select the primary reason why your company does not have a process in place to identify, assess, and respond to climate-related issues.
Select only one option from the drop-down menu. If multiple options reasonably apply to your company, explain any additional reasons in column 2.
If you select “Other, please specify”, provide a label for the primary reason.

Please explain (column 2)

Ensure your explanation is company-specific and provides additional details as to why you do not have a process in place, including any specific plans to create a process and the anticipated timeline for its creation. For instance, you may include details on how you are exploring creating a process, using concrete examples from your company’s experience.
Please also include details of how climate-related risks are addressed as they do arise (such as environmental legislation, weather-related events, or reputational risks related to climate change). Include company-specific examples in your description.

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business?

Change from last year

No change

Rationale

Investors and data users are interested in learning whether your organization has knowledge at the corporate level of any substantive climate-related risks, across any part of your value chain.

Connection to other frameworks

TCFD

Strategy recommended disclosure a) Describe the climate related risks and opportunities the organization has identified over the short, medium, and long term.

SDG

Goal 13: Climate action

Response options

Select one of the following options:

Requested content

General

Please indicate if you have identified any inherent climate-related risks.
For the purposes of this response, the risks reported should only be those which:

- May pose substantive financial or strategic impacts, in line with your definition of substantive impact provided in C2.1b; and
- Are inherent (risks that exist in the absence of controls, i.e. not taking into account any potential mitigation or management measures that have been or could be implemented).

Note for financial services sector companies:

For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities. Further details can be provided in subsequent questions.

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.

Question dependencies

This question only appears if you select “Yes” in response to C2.3.

Change from last year

Modified guidance

Rationale

Your response to this question will allow data users to see, in one place, details of the risks posed to your organization by climate-related issues, and also the estimated potential financial impact of these risks at the corporate level and your response strategy to manage these risks.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Strategy recommended disclosure a) Describe the climate related risks and opportunities the organization has identified over the short, medium, and long term.

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy and financial planning.

Please note: columns 1-6 align with the TCFD recommendations.

S&P Global Corporate Sustainability Assessment

Climate Risk Assessment - Physical Risks

Climate Risk Assessment - Transition Risks

Financial Risks of Climate Change

Physical Climate Risk Adaptation

TCFD Disclosure

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.

1	2	3a	3b	4	5	6	7
Select from: Risk1 - Risk100	Select from: Banking portfolio [FS only] Investing (Asset manager) portfolio [FS only] Investing (Asset owner) portfolio [FS only] Insurance underwriting portfolio [FS only] Direct operations Other parts of the value chain [FS only] Upstream [not shown to FS] Downstream [not shown to FS]	Select from: Current regulation Emerging regulation Legal Technology Market Reputation Acute physical Chronic physical	See drop-down options below	See drop-down options below	Select from: Capital adequacy and risk-weighted assets Liquidity risk Funding risk Market risk Credit risk Insurance risk Reputational risk Policy and legal risk Systemic risk Operational risk Strategic risk Other non-financial risk None	Text field [maximum 2,500 characters]	Select from: Short-term Medium-term Long-term Unknown

Identifier

Where in the value chain does the risk driver occur?

Risk type

Primary climate-related risk driver

Primary potential financial impact

[Financial services only] Climate risk type mapped to traditional financial services industry risk classification

Company- specific description

Time horizon

Select from:

Risk1 - Risk100

Select from:

Banking portfolio [FS only]
Investing (Asset manager) portfolio [FS only]
Investing (Asset owner) portfolio [FS only]
Insurance underwriting portfolio [FS only]
Direct operations
Other parts of the value chain [FS only]
Upstream [not shown to FS]
Downstream [not shown to FS]

Select from:

Current regulation
Emerging regulation
Legal
Technology
Market
Reputation
Acute physical
Chronic physical

See drop-down options below

Select from:

Capital adequacy and risk-weighted assets
Liquidity risk
Funding risk
Market risk
Credit risk
Insurance risk
Reputational risk
Policy and legal risk
Systemic risk
Operational risk
Strategic risk
Other non-financial risk
None

Text field [maximum 2,500 characters]

Select from:

Short-term
Medium-term
Long-term
Unknown

8	9	10	11	12	13
Select from: Virtually certain Very likely Likely More likely than not About as likely as not Unlikely Very unlikely Exceptionally unlikely Unknown	Select from: High Medium-high Medium Medium-low Low Unknown	Select from: Yes, a single figure estimate Yes, an estimated range No, we do not have this figure	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]

Likelihood

Magnitude of impact

Are you able to provide a potential financial impact figure?

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Select from:

Virtually certain
Very likely
Likely
More likely than not
About as likely as not
Unlikely
Very unlikely
Exceptionally unlikely
Unknown

Select from:

High
Medium-high
Medium
Medium-low
Low
Unknown

Select from:

Yes, a single figure estimate
Yes, an estimated range
No, we do not have this figure

Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]

Explanation of financial impact figure	Cost of response to risk	Description of response and explanation of cost calculation	Comment
14	15	16	17
Text field [maximum 2,500 characters]	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]	Text field [maximum 2,500 characters]	Text field [maximum 2.500 characters]

[Add Row]

Primary climate-related risk driver drop-down options (column 3b)

Select one of the following options:

Current regulation

Carbon pricing mechanisms
Enhanced emissions-reporting obligations
Mandates on and regulation of existing products and services
Regulation and supervision of climate-related risk in the financial sector [Financial services only]
Other, please specify

Emerging regulation

Carbon pricing mechanisms
Enhanced emissions-reporting obligations
Mandates on and regulation of existing products and services
Regulation and supervision of climate-related risk in the financial sector [Financial services only]
Other, please specify

Legal

Exposure to litigation
Regulation and supervision of climate-related risk in the financial sector [Financial services only]
Lending that could create or contribute to systemic risk for the economy [Financial services only]
Investing that could create or contribute to systemic risk for the economy [Financial services only]
Insurance underwriting that could create or contribute to systemic risk for the economy [Financial services only]
Other, please specify

Technology

Substitution of existing products and services with lower emissions options
Unsuccessful investment in new technologies
Transitioning to lower emissions technology
Other, please specify

Market

Changing customer behavior
Uncertainty in market signals
Increased cost of raw materials
Inability to attract co-financiers and/or investors due to uncertain risks related to the climate [Financial services only]
Loss of clients due to a fund’s poor environmental performance outcomes (e.g. if a fund has suffered climate-related write-downs) [Financial services only]
Contraction of insurance markets, leaving clients exposed and changing the risk parameters of the credit [Financial services only]
Rise in risk-based pricing of insurance policies (beyond demand elasticity) [Financial services only]
Other, please specify

Reputation

Shifts in consumer preferences
Stigmatization of sector
Increased stakeholder concern or negative stakeholder feedback
Lending that could create or contribute to systemic risk for the economy [Financial services only]
Investing that could create or contribute to systemic risk for the economy [Financial services only]
Insurance underwriting that could create or contribute to systemic risk for the economy [Financial services only]
Negative press coverage related to support of projects or activities with negative impacts on the climate (e.g. GHG emissions, deforestation, water stress) [Financial services only]
Other, please specify

Acute physical

Avalanche
Cold wave/frost
Cyclone, hurricane, typhoon
Drought
Flood (coastal, fluvial, pluvial, groundwater)
Glacial lake outburst
Heat wave
Heavy precipitation (rain, hail, snow/ice)
Landslide
Storm (including blizzards, dust, and sandstorms)
Subsidence
Tornado
Wildfire
Other, please specify

Chronic physical

Changing precipitation patterns and types (rain, hail, snow/ice)
Changing temperature (air, freshwater, marine water)
Changing wind patterns
Coastal erosion
Heat stress
Ocean acidification
Permafrost thawing
Precipitation and/or hydrological variability
Saline intrusion
Sea level rise
Soil degradation
Soil erosion
Solifluction
Temperature variability
Water scarcity
Other, please specify

Primary potential financial impact drop-down options (column 4)

Select one of the following options:

Increased direct costs
Increased indirect (operating) costs
Increased capital expenditures
Increased credit risk
Decreased revenues due to reduced demand for products and services
Decreased revenues due to reduced production capacity
Decreased access to capital
Decreased asset value or asset useful life leading to write-offs, asset impairment or early retirement of existing assets
Increased insurance claims liability [Financial services only]
Reduced profitability of investment portfolios [Financial services only]
Devaluation of collateral and potential for stranded, illiquid assets [Financial services only]
Other, please specify

Requested content

General

For the purposes of this response, the risks reported should only be those which may pose inherently substantive impacts in your business operations, revenue, or expenditure, regardless of whether or not the company has taken action to mitigate the risk(s).

Identifier (column 1)

Select a unique identifier from the drop down menu provided to identify the risk in subsequent questions, if required, and to track the status of the risk in subsequent reporting years. Please select from Risk1-Risk100 and use the same identifier in subsequent years for the same risk. For any new risks you are adding, always use a new identifier that you have not used previously.

Where in the value chain does the risk driver occur? (column 2)

Upstream value chain refers to activities, products and services that are inputs to the activities of your business, sourced from third parties. This may include the regulations and policies applied by governments; the products and services provided by your suppliers (i.e. the supply chain).
Downstream value chain refers to the third parties benefiting from the outputs, products and services of your business activities. This may be your customers and clients, or the organizations and projects your business invests in.
[Financial Services only] The options shown will be driven by the organizational activities you selected in C-FS0.7.

Risk type (column 3a)

See explanation of terms for definitions of risk types.
Note that a selection must be made for both column 3a and column 3b. Your data will not be saved if either column is left blank.

Primary climate-related risk driver (column 3b)

Risk driver describes the source of the risk and will depend on the risk type chosen in column 3a. Select an option that best describes the primary risk driver of the identified risk from the drop-down menu.
Note that a selection must be made for both column 3a and column 3b. Your data will not be saved if either column is left blank.

Primary potential financial impact (column 4)

This column refers to the potential financial impact that the risk could have on your organization. The financial impacts of climate-related issues on organizations are not always clear or direct, and for many organizations there might be more than one financial impact associated with a climate-related risk. Select the option from the drop-down menu that you evaluate as having the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 14).

Climate risk type mapped to traditional financial services industry risk classification [Financial services only] (column 5)

In this column consider how climate-related risks fit into your already existing organizational framework. Consider where in your traditional industry risk framework you classify the potential financial impact of the climate risk. As per the TCFD supplemental guidance to financial institutions, “Banks should consider characterizing their climate-related risks in the context of traditional banking industry risk categories such as credit risk, market risk, liquidity risk, and operational risk.” If an identified risk maps to multiple risk categories, choose the primary risk category.
- Capital adequacy and risks weighted assets: refers to the minimum amount of capital that must be held by financial institutions in order to reduce the risk of insolvency.
- Liquidity risk: occurs when a financial institution cannot meet its short-term debt obligations.
- Funding risk: refers to the risk associated with the impact on a project's cash flow from higher funding costs or lack of availability of funds.
- Market risk: refers to the possibility of loss resulting from an adverse movement in asset prices.
- Credit risk: refers the possibility of a loss resulting from a counterparty’s failure to repay a loan or meet contractual obligations.
- Insurance risk: refers to the possibility of loss resulting from an event(s) that triggers the insurer to pay (a) claim(s).
- Reputational risk: refers to the risk for negative public perception or to the potential of uncontrollable events to have an impact on a company's reputation.
- Policy and legal risk: refers to the possibility that legal action will be taken because of an individual's or corporation's actions, inaction, products, services, or other events.
- Systemic risk: the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy.
- Operational risk: refers to the possibility of loss resulting from failed processes, systems, human error or outside influences.

Company-specific description (column 6)

Provide further contextual information on the risk driver, including more detail on the exact nature, location and/or regulation of the effect concerned, as well as any notable geographic/regional examples.
Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations specific to your company’s business or operations.

Likelihood (column 8)

The likelihood of the impact occurring along with the magnitude of the impact are the building blocks of a risk/opportunity matrix – a common method of identifying and prioritizing risk and opportunities.
The likelihood refers to the probability of the impact to your business occurring within the time horizon provided, which in the case of an inherent risk might be similar to the probability of the climate event itself.
For example, if the risk relates to a piece of new legislation which has already been prepared in draft form, the likelihood of the impact associated with that risk occurring will be relatively high.

Magnitude of impact (column 9)

The magnitude describes the extent to which the impact, if it occurred, would affect your business. You should consider the business as a whole and therefore the magnitude can reflect both the damage that may be caused and the exposure to that potential damage.
For example, two companies may have identical facilities located on a coast in an area which is vulnerable to sea level rise. However, if company A relies on that facility for 90% of its production capacity and company B relies on it for only 40% of its production capacity, the magnitude of a sea level rise impact on company A will be comparatively higher than that on company B.
It is not possible for CDP to accurately define terms for magnitude as they will vary from company to company. For example, a 1% reduction in profits will have different effects on different companies depending on the profit margins on which they work. Therefore, companies are asked to determine magnitude on a qualitative scale. Factors to consider include:

- The proportion of business units affected;
- The size of the impact on those business units; and
- The potential for shareholder or customer concern.

Are you able to provide a potential financial impact figure? (column 10)

Your selection will determine whether columns 11,12, and 13 will be presented.
It is acknowledged that these figures will be estimates.
If you are unable to provide a figure for a financial impact, you may use column 14 "Explanation of financial impact" to provide a description of the impact in relative terms; for example, as a percentage relative to a stated or publicly available figure, or give a qualitative estimate of the financial impact.

Potential financial impact figure (currency) (column 11)

Provide a single figure for the inherent financial impact of the risks (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
An example would be the cost of destruction of facilities from extreme weather (before taking into consideration how much insurance coverage you have).

Potential financial impact figure - minimum/maximum (currency) (columns 12, 13)

Provide the estimated range for the inherent financial impact (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
Potential financial impact figure – minimum (currency): Use this field to report the lower point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘5,000’ should be reported here.
Potential financial impact figure – maximum (currency): Use this field to report the upper point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘50,000’ should be reported here.

Explanation of financial impact figure (column 14)

Use this open text field to explain the figure provided in the “Potential financial impact” (columns 11, 12, 13);
Describe how you arrived at this figure (or range), including:

- What approach was employed to calculate the figure;
- The figures used in your calculation;
- Any assumption the figure is dependent on.

If "We do not have this figure" was selected in column 10, use this column to provide a description of the financial impact in relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.
You can also describe here other financial impacts of the selected climate-related risk (other than the main impact identified in column 4), and provide more details on the nature of the impact in case you selected “Other, please specify” in column 4.

Cost of response to risk (column 15)

Provide a quantitative figure for the cost of your risk response actions. If there are no costs to responding to the risk, enter 0.
If you cannot provide an absolute value, you may report a percentage value by entering 0 in this column and then report the percentage figure in column “Description of response and explanation of cost calculation" (column 16), including an explanation for how the percentage was calculated.
This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.

Description of response and explanation of cost calculation (column 16)

Provide details of your organization’s response to mitigate, control, transfer or accept the risk.
Include an example of company-specific risk responses actions (activities, projects, products and/or services).
Provide an explanation of how the figure for the cost of managing the risk (in column 15) was calculated, including the figures used in your calculation. If you entered 0 in column 15 “Cost of response to risk”, you should still explain how you arrived at a figure of 0, even if the cost is absorbed into business-as-usual activities.

Comment (column 17) (optional)

You can use this text field to enter any additional relevant information.

Note for oil and gas sector companies:

In answering the questions above, please consider the impact of national and international emissions targets and how those could affect demand for oil and gas products. Will they lead to your company having a less carbon-intensive fuel mix? Will fuel efficiency standards affect the demand for fuel? Are there other instances where demand is likely to reduce due to regulation?
Is your company affected by other types of regulation such as restrictions on flaring, or by requirements for a certain level of climate-related performance in order to receive permission to operate and/or as a condition of accessing new oil & gas resources? (e.g. a requirement for carbon sequestration).
Companies are encouraged to include these drivers in the response to this question and explain how their portfolio of reserves is evolving in response to these drivers (in the Comment column).

Note for electric utility sector companies:

Electric utilities are asked to consider, among other issues:

- How national and international targets on demand management might affect demand for electricity;
- The impacts of related policies such as building regulations specifying more energy-efficient buildings;
- Policies to increase renewable electricity supply or to support developments that may result in GHG emissions reductions, e.g. CO₂ capture and storage, clean coal technologies and energy storage;
- The impacts of any emissions trading schemes and any emissions reduction targets you have set or with which you have to comply, including the analysis of possible scenarios and their effect on the company;
- The effects on wholesale and retail power prices of carbon prices in the different markets in which you operate and the extent to which carbon prices are passed through, or may in the future be passed through, into electricity prices in the markets, based on current and anticipated regulatory requirements.

Note for auto and auto component manufacturing companies:

Please consider the financial and strategic implications of current and planned national, regional, and international policies for increasing automobile fuel efficiency and developing “clean” engines for each of the markets in which you operate. You should also consider how other related environmental policies, such as regulations and standards regarding air quality, use of alternative fuels, and sustainable mobility could further impact your business.
Specifically, you should take into account how climate change policy could impact you in terms of sales, the financial cost of any loss or potential loss of market share, additional costs of complying with regulation and, if applicable, how you have or will pass increased costs down the value chain.

Note for agricultural sector companies:

Agricultural companies should report on risks that may affect the revenue associated with the agricultural/forestry, processing/manufacturing and/or distribution. These risk are often driven by:

- Physical factors, e.g. extreme weather events that disrupt production/supply of raw materials.
- Changes in regulation pertaining to agricultural, processing, manufacturing, distribution and/or consumption activities.
- Changes in consumer demands and new market trends

Note for companies with coal reserves:

Companies with coal reserves can refer to CDP Technical Note: Guidance for companies with coal reserves for more information on disclosing demand and stranded asset risk.

Note for financial services sector companies:

For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities, regardless of whether any action has been taken to respond to the risk(s).
Note that if providing a potential financial impact figure, this figure should represent the financial impact on your business. For example, if reporting a risk of stranded assets, you should report the potential financial impact (such as the write-down or devaluation) of the assets stranding on your balance sheet (before taking into consideration any controls you may have in place to mitigate the impacts), as opposed to reporting the portfolio exposure to those assets.
Consider providing a description of risks by sector and/or geography, as appropriate. This can be provided in the "Company-specific description" (column 6).
Both physical and transition risks in your investing, financing, underwriting, and/or operational activities should be considered, including the risk of stranded assets. These are assets that are no longer economically viable as a result of climate-related transition or physical risks.
Banks:

- Banks should describe significant concentrations of credit exposure to carbon-related assets.
- Additionally, banks should consider disclosing their climate-related risks (transition and physical) in their lending and other financial intermediary business activities.

Insurance companies:

- Insurance companies should consider climate-related risks on re-/insurance portfolios by geography, business division, or product segments, including the following risks:

- Physical risks from changing frequencies and intensities of weather-related perils;
- Transition risks resulting from a reduction in insurable interest due to a decline in value, changing energy costs, or implementation of carbon regulation; and
- Liability risks that could intensify due to a possible increase in litigation. For example, the risk of an increase in claims for defense costs in relation to directors and officers (D&O) liability.

- Additionally, as an asset owner, please also describe the climate-related risks relevant to your investment portfolio.

Asset managers:

- Asset managers should consider climate-related risks for each product or investment strategy.

Note for real estate companies:

Since real estate is a location-bound and a long-term investment, it is highly exposed to climate-related risks. Commercial real estate companies should consider stranding risks - the devaluation or non-performance of assets, thus making them ‘stranded’.
Stranded assets may be subject to write-downs due to:

- Demand shifts towards sustainable properties, putting pressure on ‘non-green’ assets;
- Higher exposure to acute physical risks (storms, flooding, wildfires, etc.);

Notes for capital goods sector companies:

All the end markets supplied to by the capital goods sector face increasing regulation and decarbonization targets; from building standards to mandated technologies for power generation. Companies in this sector are therefore indirectly exposed to risks in their value chain, and should consider, among other issues, risks associated with:

- Carbon pricing regulation and stricter emissions constraints on products and services;
- Shifts in end-market demand away from fossil fuel dependent technologies.

Explanation of terms

Climate-related risks: TCFD divides climate-related risks into two major categories: risks related to the transition to a lower-carbon economy and risks related to the physical impacts of climate change.
Transition risks

- Current and emerging regulation – policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change;
- Technology – all risks associated with technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic system;
- Legal – all climate-related litigation claims;
- Market – all shifts in supply and demand for certain commodities, products, and services;
- Reputation – all risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy.

Physical risks

- Acute – risks that are event-driven, including increased severity of extreme weather events, such as cyclones, hurricanes, or floods;
- Chronic – longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves.

Likelihood: The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 reports. They are associated with probabilities, indicating the percentage likelihood of the event occurring. It is not necessary for respondents to have calculated probabilities for the risks they are considering, however they can give an indication as to the meaning of the terms:

- Virtually certain: 99–100% probability
- Very likely: 90–100%;
- Likely: 66–100%;
- More likely than not: 50–100%;
- About as likely as not: 33–66%;
- Unlikely: 0–33%;
- Very unlikely: 0-10%;
- Exceptionally unlikely: 0–1%.

Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
Capital expenditure: A measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.

Example response

Identifier	Where in the value chain does the risk driver occur?	Risk type	Primary climate-related risk driver	Primary potential financial impact
Risk1	Direct Operations	Chronic physical	Changing temperature (air, freshwater, marine water)	Increased direct costs

Company- specific description	Time horizon	Likelihood	Magnitude of impact	Are you able to provide a potential financial impact figure?
Company X owns and operates data centres across the United States and Europe. Our data centres require cooling to maintain a stable temperature to operate. All of our data centres use our in-house DATACOOL systems to regulate temperatures. However, as global mean temperatures rise, more cooling is required, needing more electricity usage to cool the data centres. Correspondingly the cost of cooling will increase. Company X carried out a scenario analysis to identify the likely impact on cooling costs under a 1.5°C scenario. With the existing DATACOOL technologies in use in our North American and European operations, costs associated with data centre cooling will increase 63% overall by 2050. This reflects a 65% increase in electricity consumption for our 345 North American data centres, and 58% across our 90 European facilities. For our largest data centre in Dallas Texas, we anticipate cooling costs to increase by 120% by 2050.	Long-term	Very likely	Medium	Yes, a single figure estimate

Potential financial impact figure (currency)	Explanation of financial impact figure	Cost of response to risk	Description of response and explanation of cost calculation	Comment
$63,000,000	The $63 million figure is based on a 63% increase in annual data centre cooling costs across all our operations by 2050, under a 1.5°C scenario. This is based on current annual cooling costs of $100 million. This figure assumes continued use of existing DATACOOL cooling systems.	$25,000,000	As global mean temperatures rise, the cost of cooling our data centres is set to increase significantly. As part of our 2025 business strategy, Company X’s response to this risk consists of two programmes. First, we are investing $15 million in research and development towards next generation DATACOOL cooling systems, including outside air and sea water indirect cooling technologies. These have the potential to reduce our cooling costs by up to 70%. Second, we are investing $10 million in self-generation renewable energy projects. This investment will double our current renewable generation capacity and reduce our exposure to increasing electricity costs as cooling costs increase. The total cost of the response to risk, $25 million, is the sum of the cost of these two programmes: $15 million in R&D for more energy efficient cooling technologies, and an investment of $10 million in renewable electricity self-generation capacity.	N/A

(C2.3b) Why do you not consider your organization to be exposed to climate-related risks with the potential to have a substantive financial or strategic impact on your business?

Question dependencies

This question only appears if you select “No” in response to C2.3.

Change from last year

No change

Rationale

A risk assessment may identify no substantive climate-related risks. This conclusion is important to disclose and explain. Knowing why your organization has concluded that it is not exposed to risks is crucial for data users to understand your business.

Response options

Please complete the following table:

Primary reason	Please explain
Select from: Risks exist, but none with potential to have a substantive financial or strategic impact on business Evaluation in process Not yet evaluated Other, please specify	Text field [maximum 2,500 characters]

Primary reason

Please explain

Select from:

Risks exist, but none with potential to have a substantive financial or strategic impact on business
Evaluation in process
Not yet evaluated
Other, please specify

Text field [maximum 2,500 characters]

Requested content

Primary reason (column 1)

Select the reason that best describes why you consider your organization to not be exposed to climate-related risks with the potential to have a substantive financial or strategic impact on your business, given your definition of substantive as reported in C2.1b.

Please explain (column 2)

Your explanation should include company-specific details such as your evaluation process or specific reasons why you have not yet conducted a risk assessment or why there are no climate-related risks to your organization.

Opportunity disclosure

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?

Change from last year

No change

Rationale

Investors and data users wish to know whether your organization has identified at the corporate level any substantive climate-related opportunities, presented across any part of your value chain.

Connection to other frameworks

SDG

Goal 13: Climate action

TCFD

Strategy recommended disclosure a) Describe the climate related risks and opportunities the organization has identified over the short, medium, and long term.

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

Response options

Select one of the following options:

Yes
Yes, we have identified opportunities but are unable to realize them
No

Requested content

General

Regulation on climate change as well as physical changes related to climate may present opportunities for your organization in a variety of ways, for example through the adoption of low-emission energy sources, the development of new products and services and access to new markets. Further details of such opportunities are provided in the guidance for question C2.4a.
Please note that opportunities can be:

- Currently being experienced or expected to arise in the future
- Being managed or newly identified
- Well understood or with high levels of uncertainty with regard to the likelihood of the opportunity materializing and the extent to which it will impact the business

Note for financial services sector companies:

For the purposes of this response, the opportunities reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities. Further details can be provided in subsequent questions.

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business.

Question dependencies

This question only appears if you select “Yes” in response to C2.4.

Change from last year

Modified guidance

Rationale

Your response to this question will allow CDP data users to see, in one place, details of the opportunities posed to your organization by climate-related issues, and also the estimated potential scale of these opportunities at the corporate level and your response strategy to take advantage of these opportunities.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Strategy recommended disclosure a) Describe the climate related risks and opportunities the organization has identified over the short, medium, and long term.

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

Please note: columns 1-7 align with the TCFD recommendations.

S&P Global Corporate Sustainability Assessment

Financial Opportunities Arising from Climate Change

TCFD Disclosure

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.

1	2	3	4	5	6	7
Select from: Opp1 - Opp100	Select from: Banking portfolio [FS only] Investing (Asset manager) portfolio [FS only] Investing (Asset owner) portfolio [FS only] Insurance underwriting portfolio [FS only] Direct operations Other parts of the value chain [FS only] Upstream [not shown to FS] Downstream [not shown to FS]	Select from: Resource efficiency Energy source Products and services Markets Resilience	See drop-down options below	See drop-down options below	Text field [maximum 2,500 characters]	Select from: Short-term Medium-term Long-term Unknown

Identifier

Where in the value chain does the opportunity occur?

Opportunity type

Primary climate-related opportunity driver

Primary potential financial impact

Company-specific description

Time horizon

Select from:

Opp1 - Opp100

Select from:

Banking portfolio [FS only]
Investing (Asset manager) portfolio [FS only]
Investing (Asset owner) portfolio [FS only]
Insurance underwriting portfolio [FS only]
Direct operations
Other parts of the value chain [FS only]
Upstream [not shown to FS]
Downstream [not shown to FS]

Select from:

Resource efficiency
Energy source
Products and services
Markets
Resilience

See drop-down options below

Text field [maximum 2,500 characters]

Select from:

Short-term
Medium-term
Long-term
Unknown

Likelihood	Magnitude of impact	Are you able to provide a potential financial impact figure?	Potential financial impact figure (currency)	Potential financial impact figure - minimum (currency)	Potential financial impact figure - maximum (currency)
8	9	10	11	12	13
Select from: Virtually certain Very likely Likely More likely than not About as likely as not Unlikely Very unlikely Exceptionally unlikely Unknown	Select from: High Medium-high Medium Medium-low Low Unknown	Select from: Yes, a single figure estimate Yes, an estimated range No, we do not have this figure	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]

Explanation of financial impact figure	Cost to realize opportunity	Strategy to realize opportunity and explanation of cost calculation	Comment
14	15	16	17
Text field [maximum 2,500 characters]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add Row]

Primary climate-related opportunity driver drop-down options (column 4)

Select one of the following options:

Resource efficiency

Use of more efficient modes of transport
Use of more efficient production and distribution processes
Use of recycling
Move to more efficient buildings
Reduced water usage and consumption
Other, please specify

Energy source

Use of lower-emission sources of energy
Use of supportive policy incentives
Use of new technologies
Participation in carbon market
Shift toward decentralized energy generation
Other, please specify

Products and services

Development and/or expansion of low emission goods and services
Development of climate adaptation, resilience and insurance risk solutions
Development of new products or services through R&D and innovation
Ability to diversify business activities
Shift in consumer preferences
Reputational benefits resulting in increased demand for goods/services [Financial services only]
Other, please specify

Markets

Access to new markets
Use of public-sector incentives
Access to new assets and locations needing insurance coverage
Increased diversification of financial assets (e.g., green bonds and infrastructure) [Financial services only]
Increased sales of liability and other insurance to cover climate-related risks [Financial services only]
Reduced risk of asset stranding considered in investment decision making [Financial services only]
More timely preparation for investors in adhering to current and potentially stricter future regulation in relation to fiduciary duty [Financial services only]
Increased demand for funds that invest in companies that have positive environmental credentials [Financial services only]
Enhanced financial performance of investee companies as a result of being able to access new markets and develop new products to meet green consumer demand [Financial services only]
The development of new revenue streams from new/emerging environmental markets and products [Financial services only]
Improved ratings by sustainability/ESG indexes [Financial services only]
Other, please specify

Resilience

Participation in renewable energy programs and adoption of energy-efficiency measures
Resource substitutes/diversification
New products and services related to ensuring resiliency [Financial services only]
Increased reliability, climate- resilience of investment chain [Financial services only]
Other, please specify

Primary potential financial impact drop-down options (column 5)

Select from the following options:

Reduced direct costs
Reduced indirect (operating) costs
Increased revenues resulting from increased demand for products and services
Increased revenues through access to new and emerging markets
Increased revenues resulting from increased production capacity
Increased access to capital
Increased value of fixed assets
Increased diversification of financial assets
Increased portfolio value due to upward revaluation of assets [Financial services only]
Returns on investment in low-emission technology
Other, please specify

Requested content

General

For the purposes of this response, the opportunities identified should only be those which may pose substantive impacts in your business operations, revenue, or expenditure.

Identifier (column 1)

Select a unique identifier from the drop down menu provided to identify the opportunity in subsequent questions, if required, and to track the status of the opportunity in subsequent reporting years. Please select from Opp1-Opp100 and use the same identifier in subsequent years for the same opportunity. For any new opportunities you are adding, always use a new identifier that you have not used previously.

Where in the value chain does the opportunity occur? (column 2)

Upstream value chain refers to activities, products and services that are inputs to the activities of your business, sourced from third parties. This may include the regulations and policies applied by governments; the products and services provided by your suppliers (i.e. the supply chain).
Downstream value chain refers to the third parties benefiting from the outputs, products and services of your business activities. This may be your customers and clients, or the organizations and projects your business invests in.
[Financial Services only] The options shown will be driven by the organizational activities you selected in C-FS0.7.

Opportunity type (column 3)

Select an option from the drop-down menu that best describes the type of the identified opportunity:

- Resource efficiency – opportunities related to improving resource efficiency across production and distribution processes, buildings, machinery/appliances, and transport/mobility.
- Energy source - opportunities related to shifting energy usage toward low emission energy sources.
- Products and services - opportunities related to innovation and development of new low-emission and climate adaptation products and services.
- Markets – opportunities in new markets or types of assets that may help organizations to diversify their activities and better position themselves for the transition to a lower-carbon economy.
- Resilience – opportunities related to the development of adaptive capacity to respond to climate change. They may be especially relevant for organizations with long-lived fixed assets or extensive supply or distribution networks; those that depend critically on utility and infrastructure networks or natural resources in their value chain; and those that may require longer-term financing and investment.

Primary climate-related opportunity driver (column 4)

Opportunity driver describes the source of the opportunity and will depend on the opportunity type selected in column 3. Select an option from the drop-down menu that best describes the identified opportunity. If you select “Other”, please provide further details in column Company-specific description (6).

Primary potential financial impact (column 5)

This column refers to the potential financial impact that the opportunity could have on your organization. The financial impacts of climate-related opportunities on organizations are not always clear or direct, and for many organizations there might be more than one financial impact associated with a climate-related opportunity;
Select the option that you deem to have the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 14);

Company-specific description (column 6)

Provide further context on the opportunity driver, including more detail on the exact nature, location, and/or regulation of the effect concerned, as well as any notable geographic/regional examples.
Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations specific to your company’s business or operations.

Likelihood (column 8)

The likelihood of the impact occurring, along with the magnitude (see below) are the building blocks of a risk/opportunity matrix – a common method of identifying and prioritizing risk and opportunities.
The likelihood refers to the probability of the impact to your business occurring within the time horizon provided, which in the case of an inherent opportunity might be similar to the probability of the climate event itself.
For example, if the opportunity relates to a piece of new legislation which has already been prepared in draft form, the likelihood of the impact associated with that opportunity occurring will be relatively high.

Magnitude of impact (column 9)

The magnitude describes the extent to which the impact, if it occurred, would affect your business. This should consider the business as a whole and therefore the magnitude can reflect both the opportunity and the extent to which it applies throughout the organization.
It is not possible to accurately define terms for magnitude as they will vary from company to company. Therefore, companies are asked to determine magnitude on a qualitative scale. Factors to consider include:

- The proportion of business units affected;
- The size of the impact on those business units; and
- The potential for shareholder or customer response.

Are you able to provide a potential financial impact figure? (column 10)

Your selection will determine whether column 11 or columns 12 and 13 will be presented.
It is acknowledged that these will be estimates and, where possible, assumptions made in arriving at a financial impact figure should be stated in the column 14 ("Explanation of financial impact").
If you are unable to provide a figure for a financial impact, you may use column 14 to provide a description of the impact in relative terms; for example, as a percentage relative to a stated or publicly available figure, or give a qualitative estimate of the financial impact

Potential financial impact figure (currency) (column 11)

Provide a single figure for the financial impact of the opportunity. This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.

Potential financial impact figure (currency) (columns 12, 13)

Provide the estimated range for the financial impact of the opportunity. This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
Potential financial impact figure – minimum (currency): use this field to report the lower point of your estimated financial impact associated with the opportunity. For example, if the range is from US $5,000 to $50,000, "5,000" should be reported here.
Potential financial impact figure – maximum (currency): use this field to report the upper point of your estimated financial impact associated with the opportunity. For example, if the range is from US $5,000 to $50,000, "50,000" should be reported here.

Explanation of financial impact figure (column 14)

Use this open text field to explain the figure provided in the “Potential financial impact” (columns 11, 12, 13).
Describe how you arrived at this figure (or range), including:

- What approach was employed to calculate the figure;

- The figures used in your calculations;

- Any assumptions the figure is dependent on.

If ‘We do not have this figure’ was selected in column 10, use this column to provide a description of the financial impact in relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.
You can also describe here other financial impacts of the selected climate-related opportunity (other than the main impact identified in column 5), and provide more details on the nature of the impact in case you selected “Other, please specify” in column 5.

Cost to realize opportunity (column 15)

Provide numerical data on the cost to realize opportunity. If there are no costs to this, enter 0.
If you cannot provide an absolute value, you may report a percentage value by entering 0 in this column and then report the percentage figure in column “Strategy to realize opportunity and explanation of cost calculation” (column 16), including an explanation for how the percentage was calculated.

Strategy to realize opportunity and explanation of cost calculation (column 16)

Use this text field to provide information on methods you are using or plan to use to exploit the opportunity and maximize its potential realization. Make sure to include an example of company specific activities, projects, products and/or services which are aiming to realize the opportunity. Make sure to include:

- An example of company-specific activities, projects, products and/or services which are aiming to realize the opportunity; and
- An explanation of how the figure for the cost to realize opportunity (in column 15) was calculated, including the figures used in your calculation. If you entered 0 in column 15 “Cost to realize opportunity”, you should still explain how you arrived at a figure of 0, even if the cost is absorbed into business-as-usual activities.

Comment (column 17) (optional)

You can use this text field to enter any additional relevant information.

Note for electric utility sector companies:

In answering the questions above, please consider:

- Opportunities that may arise from emissions trading;
- The opportunities that national or international targets on energy efficiency and demand management might present for your company e.g. revenue implications from energy services business units;
- Your company’s views on any opportunities that may result from policies on renewable energy or low emissions technologies e.g. current or planned investments in these areas; and
- The extent to which you receive financial incentives to reduce the electricity use of customers.

Note for agricultural sector companies:

Agricultural companies should report on opportunities that the revenue associated with the agricultural/forestry, processing/manufacturing and/or distribution of raw materials and goods. For example, opportunities might arise from:

- Increased efficient by reducing energy use during the production of raw materials and/or the manufacture of food, beverage and other goods;
- Reduced costs due to carbon payments by adopting practices or technology to reduce carbon footprint;
- Government of private financial incentives for adoption low impact agriculture/forestry.

Note for financial services sector companies:

Consider opportunities associated with products and services such as green bonds, green infrastructure, green loans/mortgages, green insurance products, products and services ensuring resiliency, specialty climate-related risk advisory services and others.
Note that if providing a potential financial impact figure, this figure should represent the financial impact on your business. For example, the potential revenues generated by green loans should be reported, as opposed to the potential size of the green loan book.
You should consider providing a description of your opportunities by sector and/or geography, as appropriate.

Note for capital goods sector companies:

In line with the TCFD’s recommendations, companies in this sector should consider opportunities for products or services that improve efficiency, reduce energy use and support closed-loop product solutions.

Explanation of terms

Likelihood: The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 reports. They are associated with probabilities, indicating the percentage likelihood of the event occurring. It is not necessary for respondents to have calculated probabilities for the risks they are considering, however they can give an indication as to the meaning of the terms:

- Virtually certain: 99–100% probability;
- Very likely: 90–100%;
- Likely: 66–100%;
- More likely than not: >50–100%;
- About as likely as not: 33–66%;
- Unlikely: 0–33%;
- Very unlikely: 0-10%;
- Exceptionally unlikely: 0–1%.

Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.

Example response

Identifier	Where in the value chain does the opportunity occur?	Opportunity type	Primary climate-related opportunity driver	Primary potential financial impact	Company- specific description	Time horizon
Opp1	Downstream	Products and services	Development and/or expansion of low emissions goods and services	Increased revenues resulting from increased demand for products and services	Company Y produces packaging solutions for customers worldwide. The opportunity identified is increasing demand for our low-carbon, sustainable packaging ranges. Global awareness of climate change and the existential risk it poses to humanity is fueling demand for low-carbon products, including our packaging ranges made from non-virgin materials. Since launching in 2010, our carbon neutral ECO-PACK product range has grown to comprise 85% of our annual revenue. Based on current growth trends and market data, we anticipate ECO-PACK sales to increase a further 240% in our North American markets, 160% in the EMEA and APAC regions to 2030.	Medium-term

Likelihood	Magnitude of impact	Are you able to provide a potential financial impact figure?	Potential financial impact figure (currency)	Explanation of financial impact figure	Cost to realize opportunity	Strategy to realize opportunity and explanation of cost calculation	Comment
Likely	High	Yes, a single figure estimate	$870,000,000	The $870 million figure is based on a 200% increase in annual sales revenue from ECO-PACK product lines by 2030. This is based on current annual sales of $435 million. This figure is based on current growth trends and assumes no new product lines are developed.	$100,000,000	Company Y’s strategy to realise the opportunity consists of a 2030 marketing strategy for ECO-PACK product lines to capitalize on the growing demand for low-carbon packaging solutions, and a ramping up of ECO-PACK production capacity. As part of our new marketing strategy, we will coordinate marketing campaigns for our award-winning ECO-PACK product lines in each of the regions, North America, EMEA and APAC. This will enable us to double annual sales revenue by 2030. At the same time, we are investing in increasing ECO-PACK production capacity by building a state-of-the-art, net-zero production facility in Germany. Production will begin at the facility in 2023, allowing us to more than double production capacity of our sustainable product lines. The total cost to realise the opportunity, $100 million, consists of marketing costs of $6 million and a further $94 million on increasing production capacity to 2030.	N/A

(C2.4b) Why do you not consider your organization to have climate-related opportunities?

Question dependencies

This question only appears if you select “No” or “Yes, we have identified opportunities but are unable to realize them” in response to C2.4.

Change from last year

No change

Rationale

Investors and other data users are interested to know whether you are aware of climate-related opportunities. An explanation of why your organization has concluded that it is not exposed to opportunities is crucial for understanding your business strategy.

Response options

Please complete the following table:

Primary reason	Please explain
Select from: Opportunities exist, but we are unable to realize them Opportunities exist, but none with potential to have a substantive financial or strategic impact on business Evaluation in progress Judged to be unimportant No instruction from management to seek out opportunities Not yet evaluated Other, please specify	Text field [maximum 2,500 characters]

Primary reason

Please explain

Select from:

Opportunities exist, but we are unable to realize them
Opportunities exist, but none with potential to have a substantive financial or strategic impact on business
Evaluation in progress
Judged to be unimportant
No instruction from management to seek out opportunities
Not yet evaluated
Other, please specify

Text field [maximum 2,500 characters]

Requested content

Primary reason (column 1)

Select the reason that best describes why you consider your organization to not be exposed to climate-related opportunities with the potential to have a substantive financial or strategic impact on your business.

Please explain (column 2)

Please explain further why there are no climate-related opportunities for your company or, if they exist, why you are unable to realize them;
If relevant to your selection in column 1, please:

- Make reference to how you identified opportunities;
- Include how you have defined ‘substantive’ impact in the context of an opportunity, and reference the definition of substantive impact you gave in C2.1b if applicable;
- Describe when you will next repeat an assessment of opportunities;
- Include specific reasons why you have not yet conducted an opportunity assessment/why it is considered unimportant for your business;
- Provide any other company-specific details such as your evaluation process.

C3 Business strategy

Module Overview

CDP data users are interested in organizations’ forward-looking strategies and financial decisions that are driven by climate-related future market opportunities, public policy objectives, and corporate responsibilities. This module allows organizations to disclose whether they have acted upon integrating climate-related issues into their business strategy. The module includes questions on scenario analysis and transition planning which are important evolutions in strategic environmental planning.

Given the importance of forward-looking assessments of climate-related risks and opportunities, scenario analysis is an important and useful tool for an organization to use, both for understanding strategic implications of climate-related risks and opportunities, and for informing stakeholders of how the organization is positioning itself in recognition of these issues. It also can aid investors, lenders, and insurance underwriters in informing their own financial decision making.

Transition planning is also an important evolution of strategic environmental planning, and includes all the relevant changes that need to be made to the company’s business model before the company can adjust to a net-zero future. This is especially relevant for companies operating in high impact sectors.

Climate-related scenario analysis and transition planning disclosure was piloted by CDP in the Assessing Low-Carbon Transition (ACT) initiative in 2016. Further information on conducting and disclosing scenario analysis can be found in the CDP Technical Note on Scenario Analysis. Further information on transition planning can be found in the CDP Climate Transition Plan technical note.

Responses given in this module should be relevant to the reporting period, even if revisions have been made to your strategy between the reporting period and the time of submission of your CDP response. Where this is the case, you can include more up to date information in C-FI field at the end of the questionnaire. This will not be scored but will be available to investors, banks and customers (in the case of those responding on behalf of Supply Chain Members) that view your response.

Note for financial services sector companies:

Financial services sector companies are asked to consider how climate-related risks and opportunities will affect business strategy in relation to their lending, financial intermediary, investment and/or insurance underwriting activities, in addition to operational activities.

Key changes

New questions:
- C3.5b asks about the share of spending and revenue aligned with sustainable finance taxonomies at the activity level.
- C3.5c requests additional contextual information relevant to taxonomy alignment.

Modified questions:
- C3.5 – has more response options that drive the subsequent new questions.
- C3.5a – has new columns to report a figure for taxonomy alignment and disclose the taxonomy and objective if required.
- [Financial Services Only] C-FS3.6 – requests an explanation for why the policy framework does not include climate-related requirements if this option is selected.
- [Financial Services Only] C-FS3.6a – includes a new drop-down option to disclose developments of pathways to net-zero by 2050 or sooner.
- [Financial Services Only] C-FS3.8a – requests information on coverage of covenants.

Modified guidance:
- C3.4 – clarification that companies should provide details of how they plan to resource the different aspects of their climate transition plan.

Additional guidance:
- C3.2b – additional information added on exploratory and normative scenario analysis.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions for FS sector companies.

Pathway diagram - questions

This diagram shows the general questions contained in module C3. To access question-level guidance, use the menu on the left to navigate to the question.

(C3.1) Does your organization’s strategy include a climate transition plan that aligns with a 1.5°C world?

Change from last year

Minor change

Rationale

Developing a climate transition plan provides certainty to data users that a company is aligning to the long-term climate goals and that its business model will continue to be relevant in a net-zero carbon economy. Collecting feedback on the climate transition plan allows shareholders to review and raise resolutions related to progress. This question allows companies to demonstrate transparency on their climate transition plans and associated feedback mechanisms.

Connection to other frameworks

SDG

Goal 13: Climate action

TCFD

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

NZAM (FS Only)

Commitment 10

Response options

Please complete the following table:

Climate transition plan	Publicly available climate transition plan	Mechanism by which feedback is collected from shareholders on your climate transition plan	Description of feedback mechanism	Frequency of feedback collection	Attach any relevant documents which detail your climate transition plan (optional)	Explain why your organization does not have a climate transition plan that aligns with a 1.5°C world and any plans to develop one in the future	Explain why climate-related risks and opportunities have not influenced your strategy
Select from: Yes, we have a climate transition plan which aligns with a 1.5°C world No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a climate transition plan within two years No, our strategy has been influenced by climate-related risks and opportunities, but we do not plan to develop a climate transition plan within two years No, and our strategy has not been influenced by climate-related risks and opportunities	Select from: Yes No	Select from: Our climate transition plan is voted on at Annual General Meetings (AGMs) We have a different feedback mechanism in place Our climate transition plan is voted on at AGMs and we also have an additional feedback mechanism in place We do not have a feedback mechanism in place, but we plan to introduce one within the next two years We do not have a feedback mechanism in place, and we do not plan to introduce one within the next two years Not applicable as our organization does not have shareholders	Text field [maximum 2,500 characters]	Select from: More frequently than annually Annually Less frequently than annually	[Functionality that allows for several attachments]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

Climate transition plan

Publicly available climate transition plan

Mechanism by which feedback is collected from shareholders on your climate transition plan

Description of feedback mechanism

Frequency of feedback collection

Attach any relevant documents which detail your climate transition plan (optional)

Explain why your organization does not have a climate transition plan that aligns with a 1.5°C world and any plans to develop one in the future

Explain why climate-related risks and opportunities have not influenced your strategy

Select from:

Yes, we have a climate transition plan which aligns with a 1.5°C world
No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a climate transition plan within two years
No, our strategy has been influenced by climate-related risks and opportunities, but we do not plan to develop a climate transition plan within two years
No, and our strategy has not been influenced by climate-related risks and opportunities

Select from:

Our climate transition plan is voted on at Annual General Meetings (AGMs)
We have a different feedback mechanism in place
Our climate transition plan is voted on at AGMs and we also have an additional feedback mechanism in place
We do not have a feedback mechanism in place, but we plan to introduce one within the next two years
We do not have a feedback mechanism in place, and we do not plan to introduce one within the next two years
Not applicable as our organization does not have shareholders

Text field [maximum 2,500 characters]

Select from:

More frequently than annually
Annually
Less frequently than annually

[Functionality that allows for several attachments]

Text field [maximum 2,500 characters]

Requested content

General

Note for financial services sector companies: Questions C-FS14.3 and C-FS14.3a ask about actions to align your portfolio with a 1.5°C world, and whether you assess if your clients/investees' business strategies are aligned with a 1.5°C world.

Climate transition plan (column 1)

You should select “Yes, we have a climate transition plan which aligns with a 1.5°C world” if you have developed a plan for how to transition your company to a business model compatible with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures. See “Explanation of Terms” for more information. If you select this option, you will be asked to provide further details on your climate transition plan in subsequent columns.
You should select “No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a climate transition plan within two years” if climate-related risks and opportunities have already influenced your strategy and/or financial planning and you either:
- have not developed a climate transition plan but intend to develop one which aligns with a 1.5°C world within two years; or
- have developed a climate transition plan which does not yet align with a 1.5°C world (as per the definition in “Explanation of terms”) and intend to align it within two years.
If you select “No, and our strategy has not been influenced by climate-related risks and opportunities”, you will have the opportunity to explain further in column 8 “Explain why climate-related risks and opportunities have not influenced your strategy”.

Publicly available climate transition plan (column 2)

This column is only presented if “Yes, we have a climate transition plan…” is selected in column 1.

Mechanism by which feedback is collected from shareholders on your climate transition plan (column 3)

This column is only presented if “Yes, we have a climate transition plan…” is selected in column 1.
You should select “Our climate transition plan is voted on at Annual General Meetings” if you hold AGMs (as defined in the Explanation of Terms) during which shareholders vote on your organization’s climate transition plan. Note that this option is applicable even if your climate transition plan is already in progress, as it should be continually adjusted and voted on by shareholders (rather than a one-time sign-off). Furthermore, shareholders should be given the opportunity to provide feedback on progress made against your climate transition plan.
You should select “We have a different feedback mechanism in place” if your climate transition plan is not voted on at AGMs, but there is another way shareholders can provide feedback on the contents and progress of your climate transition plan.
You should select “Not applicable as our organization does not have shareholders” if, for example, your organization is privately held.

Description of feedback mechanism (column 4)

This column is only presented if “We have a different feedback mechanism in place” or “Our climate transition plan is voted on at AGMs and we also have an additional feedback mechanism in place” is selected in column 3.
Briefly describe the process shareholders use to provide feedback on the contents and progress of your climate transition plan. You may also provide any additional information to clarify your selection in column 3, for example, why you do not hold AGMs, or why you have more than one feedback mechanism in place.

Frequency of feedback collection (column 5)

This column is only presented if “We have a different feedback mechanism in place” or “Our climate transition plan is voted on at AGMs and we also have an additional feedback mechanism in place” is selected in column 3.

Attach any relevant documents which detail your climate transition plan (optional) (column 6)

This column is only presented if “Yes, we have a climate transition plan…” is selected in column 1.
You may attach one or more documents which include your climate transition plan e.g., your annual report, your sustainability report, and/or a separate climate transition plan document.
Note that CDP considers a credible climate transition plan to be succinctly integrated into an organization’s existing mainstream filings. Please refer to the CDP Climate Transition Plan technical note for more details.

Explain why your organization does not have a climate transition plan that aligns with a 1.5°C world and any plans to develop one in the future (column 7)

This column is only presented if “No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a climate transition plan within two years” or “No, our strategy has been influenced by climate-related risks and opportunities, but we do not plan to develop a climate transition plan within two years” is selected in column 1.
Explain why you have not developed a climate transition plan, or why your climate transition plan is not aligned with a 1.5°C world (as per the definition in “Explanation of terms”).

Explain why climate-related risks and opportunities have not influenced your strategy (column 8)

This column is only presented if “No, and our strategy has not been influenced by climate-related risks and opportunities” is selected in column 1.
Your answer should be company-specific and include:
- Why climate-related risks and opportunities have not influenced your business strategy and/or financial planning; and
- Whether you expect them to in the future. For example, climate change may have little effect on your business because of the nature of your goods/services. In that case, please give as complete an explanation as possible.
[Oil and gas only] Discuss whether you have considered integrating regulatory and physical climate change risks into your business strategy, investment decisions and risk management. You should also discuss whether you have considered the diversification of your portfolio into lower-carbon and non-fossil fuel products (e.g. natural gas, biofuels, renewable energy), and development of carbon capture and sequestration technology. If relevant, provide the methodology used for any integration of future carbon prices into your hydrocarbon exploration strategy and investment decisions, and the assumptions used. Where possible, provide illustrative examples of the assumptions made in specific investment decisions.
[Electric utilities only] Discuss any considerations to incorporate renewable energy, carbon capture & sequestration, cleaner coal technologies and energy storage into your strategy.
[Transport OEMs only] Discuss whether you have considered the impact of climate-related issues on your strategy for your products at group level and, where relevant, for specific markets, including the impact of existing regulatory drivers. Discuss expansion into hybrid/fully electric vehicles and fuel cell technology, if relevant.

Explanation of terms

Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5 degrees Celsius. Please refer to the CDP Climate Transition Plan technical note for more details.
Strategy: In line with TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.
Financial planning: In line with TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1-5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
Annual General Meeting (AGM): (or annual shareholder meeting) is a yearly gathering between the shareholders of a company and its board of directors. It is primarily held to enable shareholders to vote on company issues, including the selection of the company's board of directors.
Alignment with a 1.5°C world: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5). According to the Science-based Targets initiative, aligning with a 1.5°C world currently means reducing Scope 1, 2 and 3 emissions to zero or close to zero and neutralizing any residual emissions by 2050 at the latest.

(C3.2) Does your organization use climate-related scenario analysis to inform its strategy?

Change from last year

No change

Rationale

Your disclosure to this question provides data users with an indication of the extent to which your company is considering a range of possible and probable futures when considering climate-related challenges and opportunities, in line with best practices in corporate environmental management.

Connection to other frameworks

SDG

Goal 13: Climate action

TCFD

Strategy recommended disclosure c) Describe the resilience of the organization’s strategy, taking into consideration different climate related scenarios, including a 2°C or lower scenario.

S&P Global Corporate Sustainability Assessment

Climate Risk Assessment - Physical Risks

Climate Risk Assessment - Transition Risks

TCFD Disclosure

Response options

Complete the following table:

Use of climate-related scenario analysis to inform strategy	Primary reason why your organization does not use climate-related scenario analysis to inform its strategy	Explain why your organization does not use climate-related scenario analysis to inform its strategy and any plans to use it in the future
Select from: Yes, qualitative Yes, quantitative Yes, qualitative and quantitative Yes, qualitative, but we plan to add quantitative in the next two years No, but we anticipate using qualitative and/or quantitative analysis in the next two years No, and we do not anticipate doing so in the next two years	Select from: Important but not an immediate priority Judged to be unimportant, explanation provided Lack of internal resources No instruction from management Other, please specify	[Text field, 2,500 characters]

Requested content

General

Select whether your organization uses climate-related scenario analysis to inform its business strategy, and if yes, the type of scenario analysis you use. See “Explanation of terms” for more details on qualitative and quantitative scenario analysis.

Primary reason why your organization does not use climate-related scenario analysis to inform its strategy (column 2)

This column is only presented if “No, but we anticipate using qualitative and/or quantitative analysis in the next two years” or “No, and we do not anticipate doing so in the next two years” is selected in column 1.
Select the reason that best describes why your organization does not use climate-related scenario analysis to inform your strategy.
If more than one reason applies to your organization, select the reason which is most relevant and elaborate on the other reason(s) in column 3.

Explain why your organization does not use climate-related scenario analysis to inform its strategy and any plans to use it in the future (column 3)

This column is only presented if “No, but we anticipate using qualitative and/or quantitative analysis in the next two years” or “No, and we do not anticipate doing so in the next two years” is selected in column 1.
Provide a company-specific explanation of why you do not use climate-related scenario analysis to inform your strategy and outline any plans to do so in the future.
If you selected “Judged to be unimportant, explanation provided” in column 2, explain the criteria used to decide that climate-related scenario analysis is not important for your organization.
If you selected “Lack of internal resources”, specify whether this relates to lack of internal expertise, data availability, funds to outsource the analysis or other resources.

Explanation of terms

Scenario analysis: A scenario describes a potential path of development that will lead to a particular outcome or goal. Scenario analysis is the process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.

- Qualitative scenarios: A high level, narrative approach to scenario analysis, suitable for organizations familiarizing themselves with the process. Qualitative scenario analysis explores relationships and trends for which little or no numerical data is available.
- Quantitative scenarios: A more detailed method for conducting scenario analysis, with greater rigor and sophistication in the use of data sets and quantitative models which may warrant further analysis. Quantitative scenario analysis can be used to assess measurable trends and relationships using models and other analytical techniques.

Additional information

Industry examples of scenario analysis - Shell, BP, Mercer, BHP Billiton, BIER’s Future Scenarios Toolkit

(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.

Question dependencies

This question only appears if you select “Yes, qualitative”, “Yes, quantitative”, “Yes, qualitative and quantitative” or “Yes, qualitative, but we plan to add quantitative in the next two years” in response to C3.2.

Change from last year

Minor change

Rationale

Scenario analysis as a planning tool is a recommended practice for businesses preparing for possible futures. Investors are interested in understanding how companies use this planning tool to guide climate-related strategy, and specifically which scenarios different organizations utilize in their planning process.

Connection to other frameworks

SDG

Goal 13: Climate action

TCFD

Strategy recommended disclosure c) Describe the resilience of the organization’s strategy, taking into consideration different climate related scenarios, including a 2°C or lower scenario.

S&P Global Corporate Sustainability Assessment

Climate Risk Assessment - Physical Risks

Climate Risk Assessment - Transition Risks

TCFD Disclosure

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Climate-related scenario	Scenario analysis coverage	Temperature alignment of scenario	Parameters, assumptions, analytical choices
Select from:  Transition scenarios IEA NZE 2050 IEA B2DS IEA 2DS IEA 450 IEA SDS IEA APS IEA STEPS (previously IEA NPS) IEA CPS Greenpeace  DDP  IRENA  BNEF NEO  NGFS scenarios framework [Financial Services only] Customized publicly available transition scenario  Bespoke transition scenario  Physical climate scenarios RCP 1.9  RCP 2.6  RCP 3.4  RCP 4.5  RCP 6.0 RCP 7.0 RCP 8.5  Customized publicly available physical scenario  Bespoke physical scenario	Select from: Company-wide Business division Business activity Facility Country/area Product-level Portfolio [FS only] Other, please specify	Select from: 1.5ºC 1.6ºC – 2ºC 2.1ºC - 3ºC   3.1ºC - 4ºC   4.1ºC and above  Unknown	Text field [maximum 2,500 characters]

Climate-related scenario

Scenario analysis coverage

Temperature alignment of scenario

Parameters, assumptions, analytical choices

Select from: 

Transition scenarios

IEA NZE 2050
IEA B2DS
IEA 2DS
IEA 450
IEA SDS
IEA APS
IEA STEPS (previously IEA NPS)
IEA CPS
Greenpeace 
DDP 
IRENA 
BNEF NEO 
NGFS scenarios framework [Financial Services only]
Customized publicly available transition scenario 
Bespoke transition scenario

Physical climate scenarios

RCP 1.9 
RCP 2.6 
RCP 3.4 
RCP 4.5 
RCP 6.0
RCP 7.0
RCP 8.5 
Customized publicly available physical scenario 
Bespoke physical scenario

Select from:

Company-wide
Business division
Business activity
Facility
Country/area
Product-level
Portfolio [FS only]
Other, please specify

Select from:

1.5ºC
1.6ºC – 2ºC
2.1ºC - 3ºC  
3.1ºC - 4ºC  
4.1ºC and above 
Unknown

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General

As recommended by TCFD, scenarios should be sufficiently diverse to allow challenging “what-if” analyses and capture a wide range of insights about uncertain futures. In assessing transition risks, a company should consider using or developing a 1.5°C scenario. In assessing physical risks, a company should use the current GHG pathway based on government policies currently in place, which according to latest estimates from the Climate Action Tracker would result in warming of about 2.7°C above pre-industrial levels. 2.7°C is the median of the low and high ends of current policy projections.
Companies using customized or bespoke scenarios should have a robust and accountable process to ensure that the scenarios used are objective and diverse, and should transparently disclose this process and the content of the scenarios in this question.

Climate-related scenario (column 1)

Add a row for each scenario used in your scenario analysis.
Only companies with financial services as their primary sector should select the “NGFS scenarios framework” dropdown. All other companies using the NGFS scenarios framework should select “Customized publicly available transition scenario”.

Scenario analysis coverage (column 2)

The TCFD Guidance on Scenario Analysis recommends that scenario analysis should encompass the whole company. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
If the scenario analysis does not apply to the whole company, select the option that best describes the coverage of the scenario, and provide further details in column 4 “Parameters, assumptions, analytical choices”.

Temperature alignment of scenario (column 3)

This column is only presented if “Customized publicly available physical scenario”, “Customized publicly available transition scenario”, “Bespoke physical scenario”, or “Bespoke transition scenario” is selected in column 1.

Parameters, assumptions, analytical choices (column 4)

Provide details on how the selected scenario was identified, with reference to the parameters, assumptions and analytical methods used:
- Parameters refer to measurable factors built into the scenario that may have a material impact on your business performance, such as discount rate, GDP, and other macro-economic or demographic variables.
- Assumptions refer to assumptions made about how the parameters are likely to develop over the scenario’s timeframe, such as the timing of policy changes (e.g., carbon prices) or the development of market prices of key commodities/products.
- Analytical choices refer to the time horizons, data sources and models used, such as any SSPs (Shared Socioeconomic Pathways) used in conjunction with your scenario.
Indicate in your response whether your analysis using this scenario was quantitative or qualitative.

Note for financial services sector companies:

State if your organization uses climate-related scenario analysis to understand the impact of climate-related issues on lending, financial intermediary, investment and/or insurance underwriting activities, in addition to operational activities.
Note that “Company-wide” in column 2 refers to the reporting boundary as disclosed in question C0.5 in the introduction module. Financial services sector organizations using scenario analysis on their portfolios should select “Portfolio [FS only]”, even when the scenario analysis covers all financial activities and portfolios.
Both physical and transition pathway risks should be considered in your scenario analysis.
Banks:
- Banks are encouraged to use the Network for Greening the Financial System (NGFS) scenarios framework.
Insurance companies:
- Insurance companies that perform climate-related scenario analysis on their underwriting activities should provide the following information:

Explanation of terms

1.5°C or lower scenario: A core element of the TCFD’s Strategy recommendation c) “Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario”. As noted on page 26 of The TCFD Guidance on Scenario Analysis for Non-Financial Companies, the TCFD now recommends that in assessing transition risks, companies should consider using or developing a 1.5°C scenario for the “2°C or lower scenario”, stating that “a 1.5°C scenario would provide stronger diversity in assumptions about future policies and technologies. A 1.5°C scenario also aligns with the latest scientific research from the IPCC, the growing momentum of pledges to limit emissions to net-zero by 2050, and the spirit of the Paris Agreement, demonstrating a company’s alignment to recognized temperature targets.”
Publicly available scenarios: Taken from TCFD recommendations, “Publicly available scenarios” refer to scenarios which are:
- used/referenced and issued by an independent body;
- wherever possible, supported by publicly available datasets;
- updated on a regular basis; and
- linked to functional tools (e.g., visualizers, calculators, and mapping tools) that can be applied by organizations.
IEA NZE 2050: IEA’s Net Zero by 2050 scenario presents a roadmap for the energy sector to transition to a net zero energy system by 2050. It assumes that advanced economies will reach net zero in advance of 2050 and sets out an emissions trajectory consistent with a 50% chance of limiting the global temperature rise to 1.5°C without a temperature overshoot.
IEA B2DS: IEA’s Beyond 2°C Scenario (B2DS) sets out a rapid decarbonization pathway in line with international policy goals. The B2DS looks at how far known clean energy technologies could go if pushed to practical limits, in line with countries’ ambitious aspirations in the Paris Agreement. In this scenario, the energy sector reaches carbon neutrality by 2060 to limit future temperature increases to 1.75°C by 2100. This pathway implies that all available policy levers are activated throughout the outlook period in every sector worldwide, requiring unprecedented policy action as well as effort and engagement from all stakeholders.
IEA 2DS: IEA’s 2°C Scenario is built on a projected warming limit of 2°C and is part of the annual publication “Energy Technology Perspectives”, providing scenario analysis based on the development of lower carbon technology and its deployment in various sectors. The IEA ETP 2DS sets out an energy system development pathway and an emissions trajectory consistent with at least a 50% chance of limiting the average global temperature rise to 2°C. It sets the target of cutting CO2 emissions by almost 60% by 2050 (compared with 2013), followed by continued decline after 2050 until carbon neutrality is reached. It also identifies changes that help ensure a secure and affordable energy system in the long run, while emphasizing that transforming the energy sector is vital, but not enough on its own.
IEA 450: IEA’s World Energy Outlook 450 scenario is expressed as realizing a 50% chance of limiting warming to a 2°C rise by 2100 (originally based upon a projected warming limit of 2°C through limiting the concentration of GHG’s to around 450ppm of CO2 equivalent) and offers steps by which that goal might be achieved. It references many separate measures which are required to reduce energy-related emissions from 2015 to 2040, including stronger deployment of technologies that are familiar and available at a commercial scale today, delivering close to 60% of the emissions reductions. Technologies referenced include the building of significant additional nuclear capacity and rapid CCS expansion.
IEA SDS: IEA’s Sustainable Development Scenario (SDS) is compatible with the Paris Agreement’s less ambitious “well-below 2°C” goal. It assumes all energy-related SDGs and all current net-zero pledges are achieved, with advanced economies reaching net zero emissions by 2050, China by 2060 and all others by 2070 at the latest. It has a 50% probability of limiting global temperature rise to 1.65°C, assuming no extensive net negative emissions. With some net negative emissions after 2070, temperature rise could be reduced to 1.5°C by 2100.
IEA APS: IEA’s Announced Pledges Scenario (APS) takes account of all climate commitments made by governments around the world including Nationally Determined Contributions (NDCs) as well as longer-term net-zero targets and assumes they will be met in full and on time. The global emissions difference between the APS and the NZE represents the “ambition gap” that needs to be closed for governments to achieve the goals agreed in the 2015 Paris Agreement.
IEA STEPS (previously IEA NPS): IEA’s Stated Policies Scenario (STEPS) does not take for granted that governments will meet all announced goals. It instead looks at where the energy system might go without additional policy implementation, looking at existing policies and measures and those under development. The global emissions difference between the STEPS and the APS represents the “implementation gap” that needs to be closed for governments to achieve their announced decarbonization targets.
IEA CPS: IEA’s Current Policies Scenario (CPS) includes only existing energy policies. This default setting for the energy system is a benchmark against which the impact of “new” policies can be measured.
Greenpeace: Refers to the Advanced Energy [R]evolution scenario. Based on Greenpeace’s basic Energy [R]evolution scenario, which includes significant efforts to exploit opportunities for energy efficiency, along with large-scale integration of renewables, biofuels, and hydrogen into the energy mix, the Advanced Energy [R]evolution scenario sets out an ambitions pathway towards a fully decarbonized energy system by 2050 through much stronger efforts to move energy towards a 100% renewable energy supply. Consumption pathways remain similar to the basic scenario, but faster introduction of technologies leads to complete decarbonization. The IEA’s Current Policies Scenario serves as the reference point in the development of Greenpeace’s Advanced Energy Revolution scenario.
DDP: The Deep Decarbonization Pathways (DDP) initiative builds and brings to the public debate realistic decarbonization pathways to 2050. These are designed to deeply reduce carbon emissions while satisfying socio-economic objectives. The pathways are developed country/area by country/area, considering in each case the specific context and highlighting key drivers of the transformation and their potential effects.
IRENA: IRENA’s REmap determines the potential for countries, regions and the world to scale up renewables in order to ensure an affordable and sustainable energy future. REmap assesses worldwide renewable energy potential assembled from the bottom-up, starting with country/area analyses – in collaboration with country/area experts, and then aggregating these results to arrive at a global picture. REmap accounts for renewable power technologies, but also considers technology options in heating, cooling and transport. In determining the potential to scale up renewables, REmap focuses on possible technologies pathways and assesses numerous other metrics, including: technology, sector and system costs; investment needs; externalities relating to air pollution and climate; CO2 emissions; and economic indicators such as employment and economic growth. Based on these country/area driven results, REmap provides insights to policy and decision makers for areas in which action is needed.
BNEF NEO: Bloomberg New Energy Finance’s (BNEF) New Energy Outlook (NEO) focusses on the annual long-term economic analysis of the world’s power sector out to 2050. 2021’s edition presents three scenarios that are aligned with the Paris Agreement, achieving net-zero emissions in 2050. The Green Scenario is a net-zero pathway where so-called ‘green hydrogen’ complements greater electricity use, recycling and bioenergy. The Grey Scenario assumes greater use of electricity and renewable power is complemented by carbon capture and storage technology and allows for the continued use of some fossil fuels. The Red Scenario assumes smaller, modular nuclear is deployed to complement wind, solar and battery technology in the power sector, with dedicated nuclear plants manufacturing so-called “red hydrogen”.
NGFS scenarios framework: To facilitate the uptake of climate scenario analysis by central banks, financial regulators, and the larger financial community, the NGFS developed a global set of scenarios and published guidance on conducting such analysis.
RCP 1.9: Representative Concentration Pathway (RCP) 1.9 is the IPCC’s lowest emission pathway that focuses on limiting warming to below 1.5°C by the end of the century, which is the aspirational goal of the Paris Agreement. RCPs provide a quantitative description of atmospheric pollutions over time, as well as radiative forces in 2100. In RCP 1.9, radiative forcing is limited to no more than 1.9 W/m2 above pre-industrial levels.
RCP 2.6: In RCP 2.6, radiative forcing peaks at 3.1 W/m2 before returning to 2.6 W/m2 by 2100, achieved through; a shift to renewable energy sources; CO2 remaining at today’s level until 2020, then decline and becoming negative in 2100; and CO2 concentrations peaking by 2050, followed by a modest decline to around 400 ppm by 2100.
RCP 3.4: RCP 3.4 represents the IPCC’s intermediate pathway between the very stringent RCP2.6 and the less stringent mitigation efforts associated with RCP4.5.
RCP 4.5: RCP 4.5 represents one of IPCC’s intermediate stabilization pathways in which radiative forcing is stabilized at approximately 4.5 W/m2 after 2100.
RCP 6.0: RCP 6.0 represents one of IPCC’s intermediate stabilization pathways in which radiative forcing is stabilized at approximately 6.0 W/m2 after 2100.
RCP 7.0: RCP 7.0 consists of a baseline outcome rather than a mitigation target, and represents the medium-to-high end of the range of future emissions and warming resulting from no additional climate policy.
RCP 8.5: RCP 8.5 represents the IPCC’s high-end pathway in which radiative forcing reaches greater than 8.5 W/m2 by 2100, and continues to rise for some time afterwards.
Transition risks
- Current and emerging regulation – policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change;
- Technology – all risks associated with technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic system;
- Legal – all climate-related litigation claims;
- Market – all shifts in supply and demand for certain commodities, products, and services;
- Reputation – all risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy.
Physical risks
- Acute – risks that are event-driven, including increased severity of extreme weather events, such as cyclones, hurricanes, or floods;
- Chronic – longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves.

Additional information

Exploratory vs. Normative Scenario analysis

The TCFD Guidance on Scenario Analysis for Non-Financial Companies identifies two main types of scenarios: (1) exploratory scenarios used to explore a range of different possible futures and (2) normative scenarios used to plan for a preferred future. The essential difference is that with normative scenarios, scenario analysis begins with a desired future outcome and works backward to inform decisions on what is needed to achieve that outcome. With exploratory scenarios, the scenario analysis instead begins from the present, and then describes a diverse set of plausible future states.

Normative scenarios are typically used for assessment and setting of specific targets and implementation plans, while exploratory scenarios are used to assess potential climate-related risks and uncertainties, and test the resiliency of various strategies to a wide range of future conditions. The TCFD recommends the use of an exploratory approach.

IEA Energy Technology Perspectives (ETP)

International Energy Agency (IEA)’s comprehensive publication on energy technology focuses on the opportunities and challenges of scaling and accelerating the deployment of clean energy technologies. Additional information on this publication can be found here.

Critical uncertainties

Identified using a process of scaling potential impacts and uncertainties, those meeting high for both impact and uncertainty should be considered ‘critical uncertainties’ and the basis for the development of scenarios. A common process for identifying critical uncertainties is the development of an impact/uncertainty grid. Further information on critical uncertainties can be found in CDP’s technical note on Scenario Analysis.

(C3.2b) Provide details of the focal questions your organization seeks to address by using climate-related scenario analysis, and summarize the results with respect to these questions.

Question dependencies

Change from last year

Additional guidance

Rationale

Scenario analysis should be based on concise focal questions that provide direction for the analysis, and the results inform an organization’s decisions and actions. Providing this information to CDP data users gives insight into why your organization is using scenario analysis and how the results have impacted your organization’s strategy.

Connection to other frameworks

SDG

Goal 13: Climate action.

TCFD

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

Strategy recommended disclosure c) Describe the resilience of the organization’s strategy, taking into consideration different climate related scenarios, including a 2°C or lower scenario.

S&P Global Corporate Sustainability Assessment

Climate Risk Assessment - Physical Risks

Climate Risk Assessment - Transition Risks

TCFD Disclosure

Response options

Please complete the following table:

Focal questions	Results of the climate-related scenario analysis with respect to the focal questions
Text field [maximum 3,000 characters]	Text field [maximum 3,000 characters]

Requested content

General

In this question you should provide a single response based on all scenarios disclosed in C3.2a.

Focal questions (column 1)

List the focal question(s) that provided direction to your climate-related scenario analysis. See “Additional information” for further guidance on focal questions.
Provide a rationale for selecting the scenarios disclosed in C3.2a to address the focal question(s).

Results of the climate-related scenario analysis with respect to the focal questions (column 2)

Provide a company-specific summary of the results of the scenario analysis, and how the results have informed your decisions and actions, with respect to the focal question(s).
You may also describe how the results of the climate-related scenario analysis have influenced your business strategy and financial planning more broadly.

Note for energy sectors:

Discuss in particular whether your focal questions address the exposure of current investments in new reserves and/or assets to the risk of lower demand and stranded assets; how current and future capital expenditure may be affected by short-to-long term risk of stranded assets, and what probability/likelihood you assign to that risk. You should also discuss how you have considered your organization’s energy outlook in the scenario analysis, and whether you tested the flexibility of your strategy to adjust to significant changes in the demand for your products.

Note for financial services sector companies:

Banks:
- Banks should consider providing a discussion of how climate-related scenarios are used, such as to inform credit and exclusion policies.
Asset Managers/Asset owners:
- Asset managers should consider describing how they use climate-related scenarios, for example to better understand how climate-related issues inform relevant products or investment strategies.
- Asset owners should consider providing a discussion of how climate-related scenarios are used, such as to inform investments in specific assets.
Insurance companies:
- Insurance companies should consider describing how they use climate-related scenarios, for example to inform insurance premiums and capital requirements.

Explanation of terms

Focal question(s): The critical questions or potential decisions that a company seeks to address.

Additional information

Problem Definition: “Define the focal question(s)” – from section 2.2, step 2 of the TCFD Guidance on Scenario Analysis:

“This step is important because focal questions are a key anchor point for many of the decisions made during scenario development and analysis. In thinking about focal questions, a company is seeking to flesh out the focus of scenario analysis around the broad question of “how could climate change plausibly affect our [company, business unit, product, commodity input, customer segment], what should we do, and when?” Some questions a company should consider are as follows:

What possible future developments need to be probed?
What variables are needed to support decision-making?
What forces and developments have the greatest ability to shape future performance?”

Exploratory vs. Normative Scenario analysis

(C3.3) Describe where and how climate-related risks and opportunities have influenced your strategy.

Question dependencies

This question only appears if you select any option except “No, and our strategy has not been influenced by climate-related risks and opportunities” in response to column 1 of C3.1.

Change from last year

Modified guidance for FS only

Rationale

Investors and data users are interested to know how climate-related risks and opportunities may have affected organizations’ strategies. Answers to this question may be used to inform expectations about the future performance of an organization and on how resilient its strategy is to climate-related risks and opportunities.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

S&P Global Corporate Sustainability Assessment

Climate Strategy Impacts

TCFD Disclosure

Response options

Please complete the following table:

Business area	Have climate-related risks and opportunities influenced your strategy in this area?	Description of influence
Products and services	Select from: Yes No Evaluation in progress Not evaluated	Text field [maximum 2,400 characters]
Supply chain and/or value chain
Investment in R&D
Operations

Requested content

General

Each row in the table corresponds to a possible area of impact in a company’s business. For each row, select how climate-related risks and opportunities have affected your strategy in this area.
This question is intended to focus on the group business strategy – meaning the full corporate body on which you are reporting. However, if it is more appropriate, you may wish to comment on divisional (business unit) strategies. If you are responding to the request from a supply chain member, please also include information specific to your requesting member, i.e. relevant business units.

Description of influence (column 3)

Describe how your strategy in this area has been influenced by climate-related risks and opportunities and the time horizon(s) it covers;
Specify if this includes any climate change adaptation and mitigation activities.
Include the most substantial strategic decision(s) in this area to date that have been influenced by the climate-related risks and opportunities;
If a certain strategic decision was informed by the climate-related scenario analysis, please specify that.
If your strategy in this area has not been influenced by climate-related risks and opportunities, explain why not.
If the evaluation of influence is still in progress, include a company-specific description of the evaluation process used, and when it is expected to be completed.

Note for oil & gas companies, electric utilities, automotive and automotive component manufacturers, and companies with coal reserves:

Please refer to the sector specific guidance for the risks and opportunities questions before answering this question.
The guidance contains a number of issues that investors want these sectors to consider in answering the risks and opportunities questions and you may wish to draw together some of these issues in your answers to questions on the integration of climate change into business strategy.
Please provide a complete answer to these questions on business strategy in the input fields provided. Do not cross-refer to the risks and opportunities answers in your response to this question.

Note for oil & gas sector companies:

Discuss, if relevant, your methodology for the integration of regulatory and physical climate change risks into the company strategy, investment decisions and risk management, including the assumptions used.
Where possible, provide illustrative examples of the assumptions made in specific investment decisions.
You should also discuss - again if relevant - the diversification of your portfolio into lower-carbon and non-fossil fuel products (e.g. natural gas, biofuels, renewable energy) and strategy for development of carbon capture and sequestration technology, including technology areas of focus, and distinctive areas of strength your company believes it holds.
Please give the methodology used for the integration of future carbon prices into your hydrocarbon exploration strategy and investment decisions, with the assumptions used. Where possible, provide illustrative examples of the assumptions made in specific investment decisions.

Note for electric utility sector companies:

Discuss any work to incorporate renewable energy, carbon capture & sequestration, cleaner coal technologies and energy storage into your strategy.

Note for transport OEMs sector companies:

Discuss the impact on your strategy for your products at group level and, where relevant, for specific markets, including any related targets for GHG emissions performance (expressed as gCO₂e/unit distance) and include a reference to any regulatory drivers and the baseline against which performance is measured.
Discuss expansion into hybrid/fully electric vehicles and fuel cell technology, if relevant.

Note for companies with coal reserves:

Companies with coal reserves can refer to CDP Technical Note: Guidance for companies with coal reserves on how to disclose demand and stranded asset risk.

Note for financial services companies:

The climate-related risks and opportunities to be considered in this question refer to lending, financial intermediary, investment and/or insurance underwriting activities of your organization, in addition to your operational activities.
Banks:

- Describe the potential impacts of climate-related risks and opportunities on your core businesses, products and services, including:

- Information at the business division, sector or geography, credit quality and average tenor levels;

Asset managers/Asset owners:

- Under” Supply chain and/or value chain” describe how climate-related risks and opportunities are factored into your investment strategies and investee selection.
- Also describe how each product or investment strategy may be affected by the transition to a lower-carbon economy.

- For members of the Net Zero Asset Manager initiative (NZAM) "Products and services" apply to creating investment products under NZAM Commitment 5, and "Supply chain and/or value chain" apply to investment strategy/ investing in technology/ engagement strategy under NZAM Commitment 3.

Insurance companies:

- Describe the potential impacts of climate-related risks and opportunities on your core businesses, products and services, including:

- Information at the business division, sector or geography levels;

- As asset owners, insurance companies should describe how climate-related risks and opportunities are factored into relevant investment strategies – in the business’ value chain. This could be described from the perspective of the total fund or investment strategy or individual investment strategies for various asset classes.

Explanation of terms

Note for financial services sector companies:

Products and services: All products and services in the organization’s lending, investing and insurance underwriting business as well as other products and services including financial intermediary activities that are not part of core financing activities such as financial guarantees, M&A, securities underwriting, bond issuance, etc.

Example response

Business area	Have climate-related risks and opportunities influenced your strategy in this area?	Description of influence
Products and services	Yes	Risks and opportunities related to the growing demand from customers for transparency, naturality, and food and drinks with low carbon footprint, (as reported in C2.3a Risk 6 and C2.4a Opportunity 8) have influenced our product-related strategy and product portfolio. In June 2019, our Board of Directors made a Global Transparency and Sustainability Pledge, committing to increasing the share of plant-based products in the portfolio, using more natural ingredients in our flagship brands such as Pantheon Peanut Butter, Red Rose Beetroot Paste, Gracious Hummus and increasing transparency on our packaging (e.g. disclosure of the presence of any synthetic or GMO ingredients on product labels). This gives consumers a greater variety of products and improved ability to choose them, while providing a high-quality product offering, benefiting the producers as well as preserving natural resources, promoting biodiversity, improving soil health and water quality, and reducing carbon emissions. We aim to have implemented changes to our products and packaging in line with the pledge by December 2020, prioritizing our consumer base in North America and Europe.
Supply chain and/or value chain	Evaluation in progress	Since we source 80% of our raw materials from drought-prone India and severe water stress is increasing every year, we have started placing more emphasis on conducting risk assessments for extreme weather events. In December 2019, the Board decided to employ a team of external consultants to work on developing a supply chain transparency tool. This tool will allow us to gather important information about our supply network (including sub-tier suppliers), so that we can better assess our vulnerability to natural disasters and other risks across our global supply chain. The supply chain transparency tool is expected to be fully functional by September 2020 and will be central in informing our supply chain strategy going forward.
Investment in R&D	No	Climate-related risks and opportunities have not yet influenced our R&D investment strategy, as we are initially focused on evaluating the risks and opportunities relating to our operations, supply chain and existing products and services, ensuring our business strategy is aligned in accordance with these. We expect to begin evaluating the impact of risks and opportunities on our R&D expenditures in 2020.
Operations	Yes	National and sub-national jurisdictions that account for about half of the global economy now have carbon pricing systems (as disclosed in C2.3a Risk 2). This trend is on the rise and could result in increased operational costs for our company. For example, a carbon price of €32/ton would increase our operational costs to €25.1m in Europe. This has led to our Board's strategic decision to join RE100 and commit to transition to 100% renewable electricity by 2030, with an intermediary step of 40% by 2022. In 2019, 38 of our production sites in Europe ran on 100% renewable energy and we purchased 37% of our total electricity from renewable sources such as wind farms and hydropower plants (compared with 22% in 2018). As part of this strategy, all our new plants will have renewable power generation facilities on site.

(C3.4) Describe where and how climate-related risks and opportunities have influenced your financial planning.

Question dependencies

This question only appears if you select any option except “No, and our strategy has not been influenced by climate-related risks and opportunities” in response to column 1 of C3.1.

Change from last year

Modified guidance

Rationale

This question is seeking to understand where the identified risks and opportunities may have influenced your financial statements, and how this has been incorporated into your financial planning process.

Connection to other frameworks

TCFD

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

S&P Global Corporate Sustainability Assessment

Climate Strategy Impacts

TCFD Disclosure

Response options

Please complete the following table:

Financial planning elements that have been influenced	Description of influence
Select all that apply: Revenues Direct costs Indirect costs Capital expenditures Capital allocation Acquisitions and divestments Access to capital Assets Liabilities Provisions or general reserves [Financial services only] Claims reserves [Financial services only] None of the above	Text field [maximum 7,000 characters]

Financial planning elements that have been influenced

Description of influence

Select all that apply:

Revenues
Direct costs
Indirect costs
Capital expenditures
Capital allocation
Acquisitions and divestments
Access to capital
Assets
Liabilities
Provisions or general reserves [Financial services only]
Claims reserves [Financial services only]
None of the above

Text field [maximum 7,000 characters]

Requested content

General

Climate-related issues can affect several important aspects of an organization’s financial position, both now and in the future. For example, climate-related issues may have implications for an organization’s capital expenditures. In turn, capital expenditures will determine the nature and amount of fixed assets, how these depreciate over time and the proportion of debt and equity to be funded on an organization’s balance sheet. Climate-related issues may also carry implications for future cash flows (operating, investing, and financing activities). This question seeks to establish whether climate-related issues have already had implications on your financial planning.

Description of influence (column 2):

Provide details on how climate-related risks and opportunities have influenced the selected elements of your financial planning. Include a case study for at least one of the elements selected. For example, if you have disclosed substantive climate-related risks or opportunities in questions C2.3a or C2.4a, you may provide details of how the risk or opportunity has affected the financial planning element selected in column 1.
If you have reported that your organization has a climate transition plan in C3.1, provide details of how you plan to resource the different aspects of the climate transition plan.
Specify the time horizons this planning covers.
If you selected “None of the above”, explain if there is another element of financial planning that has been influenced; or why climate-related risks and opportunities have not yet influenced your financial planning.

Note for financial services sector companies:

The climate-related risks and opportunities to be considered in this question refer to lending, financial intermediary, investment and/or insurance underwriting activities of your organization, in addition to your operational activities.

Banks:
- Describe the potential financial impacts of the identified climate-related risks and opportunities on your core businesses, products and services. For example, you may do this by translating climate risk data into probability of default, total committed exposure and/or exposure at default.
Asset managers/Asset owners:
- Where appropriate, describe how climate-related risks and opportunities may affect the financial returns of relevant products or investment strategies.
- Asset managers should also describe how each product or investment strategy might be affected by the transition to a lower-carbon economy.
Insurance companies:
- Describe the potential financial impacts of climate-related risks and opportunities on your core businesses, products and services. For example, you may do this by translating climate risk data into probability of default and/or exposure at default.
- As asset owners, insurance companies should describe how climate-related risks and opportunities may affect the financial returns of investment strategies. This could be described from the perspective of the total fund or investment strategy or individual investment strategies for various asset classes.

Explanation of terms

Financial planning: in line with the TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
Indirect costs: Also known as 'operating cost' or 'overheads'. This generally refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
Capital allocation: refers to distributing and investing a company's financial resources in ways that will increase its efficiency, and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.
Capital expenditure: Capital expenditure is a measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
Acquisition: Obtaining ownership and control by one firm, in whole or in part, of another firm or business entity.
Divestment: A process for selling assets for financial, environmental, political or social goals. In the progression to a low-carbon economy, organizations are recognizing climate-related transition and physical risks posed to minimize exposure to stranded assets (assets that have suffered unanticipated or premature write-downs, devaluations or conversion to liabilities).
Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.
Assets: Entities functioning as stores of value and over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them, over a period of time (the economic benefits consist of primary incomes derived from the use of the asset and the value, including possible holding gains/losses, that could be realized by disposing of the asset or terminating it).
Liabilities: An obligation which requires one unit (the debtor) to make a payment or a series of payments to the other unit (the creditor) in certain circumstances specified in a contract between them.
Provisions or general reserves [Financial services only]: Balance sheet items representing funds set aside by the organization as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord.
Claims reserves [Financial services only]: Balance sheet reserve specifically set aside by insurance companies to pay policyholders who have filed or are expected to file legitimate claims on their policies. Consider both reported but not settles (RBNS) and incurred but not reported (IBNR) reserves.

Example Response

Financial planning elements that have been influenced

Description of influence

Capital expenditures

In 2017 our organization introduced an internal price on carbon into our capital expenditures approval process, with the aim to redirect investments towards clean technologies, lower-carbon solutions, and renewable energy projects across our operations and supply chain. We conducted a benchmark study and decided to set the price at a relatively high level, 36€/tCO2e, to internalize the potential future cost of carbon in the long term. Returns on investments are assessed with the impact of the carbon implication. This enables management to arbitrate between different options and to choose the most virtuous and efficient ones in order to achieve our organization’s strategic goals. This is a long-term measure, and the price will be periodically reviewed and updated. As a direct result of this implemented internal price on carbon we have approved a project of installing solar panels in our factories in Spain that will reduce our demand for purchased energy by 30% in the next 5 years.

(C3.5) In your organization’s financial accounting, do you identify spending/revenue that is aligned with your organization’s climate transition?

Change from last year

Modified question

Rationale

Companies need to be aware of whether their spending and revenue is supporting their climate transition. Basing such an assessment on activities, projects or assets defined as sustainable by a sustainable finance taxonomy can inform progress being made on their commitment to mitigate and adapt to climate change and add credibility to it.

Ambition: Companies are aware of whether their spending and revenue are aligned with their climate transition, and/or a sustainable finance taxonomy.

Connection to other frameworks

NZAM (FS Only)

Commitment 4

Response options

Please complete the following table. *Column/row appearance is dependent on selections in this or other questions.

Identification of spending/revenue that is aligned with your organization’s climate transition

Indicate the level at which you identify the alignment of your spending/revenue with a sustainable finance taxonomy*

Select from:

Yes, we identify alignment with our climate transition plan
Yes, we identify alignment with a sustainable finance taxonomy
Yes, we identify alignment with both our climate transition plan and a sustainable finance taxonomy
No but we plan to in the next two years
No, and we do not plan to in the next two years

Select from:

At both the company and activity level [not shown to FS]
At the company level only

Requested content

Identification of spending/revenue that is aligned with your organization’s climate transition (column 1)

The drop-down options presented in this column will depend on your response to question C3.1.
Select “Yes, we identify alignment with our climate transition plan" if, in your financial statements, you identify spending/revenue that is compatible with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures and is therefore aligned with your organization’s climate transition plan as disclosed in C3.1. It is up to each company to determine what is considered to be aligned with your organization’s climate transition plan, but for example:

Revenue derived from the sale of low-carbon products or services as defined via recognized taxonomies or methodologies.
Spending (e.g., CAPEX or OPEX) on the implementation of emissions reduction initiatives and/or investment in new low-carbon assets or projects.
Select “Yes, we identify alignment using a sustainable finance taxonomy” if you identify financial information associated with the alignment of your organization’s activities with a sustainable finance taxonomy (e.g., the EU Taxonomy for Sustainable Activities), at the company and/or activity level.
Select “Yes, we identify the alignment with both our climate transition plan and a sustainable finance taxonomy” if you are able to provide information separately on both the alignment of your spending/revenue with your climate transition plan, and the alignment of your organization’s activities with a sustainable finance taxonomy. Disclosing information on both is particularly useful where the ambition of the sustainable finance taxonomy and your climate transition plan differs (e.g. if the temperature goal of the taxonomy is to keep global temperatures to 2°C above pre-industrial levels, but your climate transition plan is 1.5°C aligned).

You will have the opportunity to provide further details in the subsequent questions.

Indicate the level at which you identify the alignment of your spending/revenue with a sustainable finance taxonomy (column 2)

This column only appears if “Yes, we identify alignment with a sustainable finance taxonomy” or “Yes, we identify alignment with both our climate transition plan and a sustainable finance taxonomy” is selected in column 1.
Select “At the company level only” if you wish to disclose alignment against a sustainable finance taxonomy, but the taxonomy does not require alignment information to be provided at the activity level. For example, you should select this option if the taxonomy requires a breakdown at project or asset level but not at activity level, or if the taxonomy requires just an overall figure at company/group level. See “Explanation of terms” for more information.
Non-financial services companies that wish to disclose alignment against the EU Taxonomy for Sustainable Activities should select “At the company and activity level”.
Companies in the financial services sector are not presented with the option “At the company and activity level”.
Note that as per the Disclosure Delegated Act, financial services companies are not required to report alignment against the EU Taxonomy for Sustainable Activities until January 2024.
Financial services companies that wish to report alignment with a sustainable finance taxonomy other than the EU Taxonomy for Sustainable Activities may select “At the company level only”.

Explanation of terms

Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5. Please refer to the CDP Climate Transition Plan technical note for more details.
Sustainable finance taxonomy: As defined by the Bank for International Settlements, a sustainable finance taxonomy is a set of criteria which can form the basis for an evaluation of whether and to what extent a financial asset can support given sustainability goals. The central goal of taxonomies is driving capital allocation towards sustainable activities, reducing greenwashing, and enabling simpler comparison.

Additional information

Sustainable finance taxonomies are instruments to support the redirection of financial flows towards environmentally (and socially) sustainable activities. While a coherent disclosure system with internationally agreed standards and taxonomies is needed to ensure effective data access, analysis, and use by the data users, CDP’s 2025 strategy has highlighted that a harmonized taxonomy landscape is crucial to support the investment decisions of capital market actors and help to prevent greenwash, as laid out in CDP’s policy brief on sustainable finance taxonomies.

As a global environmental disclosure system, CDP aims to accelerate the implementation of sustainable finance taxonomies at scale. This is reflected in the questions in this module, asking companies to report the alignment of their business operations and financial accounting with sustainable finance taxonomies, such as the EU Taxonomy for Sustainable Activities.

These questions are taxonomy-agnostic, allowing companies to provide information on alignment with any sustainable finance taxonomy. However, additional guidance is provided for companies choosing to report under the EU Taxonomy for Sustainable Activities. The following (non-exhaustive) list of sources contains references to detailed taxonomy disclosure guidance developed by the EU Commission and the Technical Expert Group on Sustainable Finance (TEG):

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 (EU Taxonomy Regulation)
Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 (Disclosure Delegated Act (Annexes 1-5))
Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 (Climate Delegated Act) - for technical screening criteria and DNSH criteria for taxonomy eligible activities
Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022 (Complementary Delegated Act) - for reporting on nuclear and fossil gas activities
EU Commission FAQs - on how the EU Taxonomy will work in practice
EU Commission FAQs - for reporting eligibility of activities and assets
EU Commission FAQs - on disclosures under Article 8 of the EU Taxonomy
EU Commission FAQs - on the interpretation and implementation of Article 8 of the EU Taxonomy
EU Taxonomy FAQs - on the interpretation and implementation of technical screening criteria and Do no significant harm (DNSH) criteria.
TEG Taxonomy Final Report
TEG Taxonomy Final Report - Technical Annex
EU Taxonomy compass - for a visual representation of the contents of the EU Taxonomy

(C3.5a) Quantify the percentage share of your spending/revenue that is aligned with your organization’s climate transition.

Question dependencies

This question only appears if any “Yes…” option is selected in response to column 1 of C3.5.

Change from last year

Modified question

Rationale

This question allows companies to demonstrate the extent to which their spending and revenue is compatible with their climate transition, and/or directed at/derived from activities, projects, or assets defined as sustainable by a sustainable finance taxonomy.
Ambition: The share of spending/revenue aligned with your climate transition plan and/or aligned with a sustainable finance taxonomy increases over time.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

Alignment with EU Taxonomy for sustainable activities - Capital Expenditure

Alignment with EU Taxonomy for sustainable activities - Operating Expenditure

Alignment with EU Taxonomy for sustainable activities - Revenues

NZAM (FS Only)

Commitment 4

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table. *Column/row appearance is dependent on selections in this or other questions.

Financial metric	Type of alignment being reported for this financial metric	Taxonomy under which information is being reported*	Objective under which alignment is being reported*	Amount of selected financial metric that is aligned in the reporting year (unit currency as selected in C0.4)
1	2	3	4	5
Select from: Revenue/Turnover CAPEX OPEX Other, please specify	Select from: Alignment with a sustainable finance taxonomy Alignment with our climate transition plan	Select from: EU Taxonomy for Sustainable Activities Other, please specify	Select from: Climate change mitigation Climate change adaptation Total across all objectives	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places

Percentage share of selected financial metric aligned in the reporting year (%)	Percentage share of selected financial metric planned to align in 2025 (%)	Percentage share of selected financial metric planned to align in 2030 (%)	Describe the methodology used to identify spending/revenue that is aligned
6	7	8	9
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Text field [maximum 4,000 characters]

[Add row]

Requested content

General

This question aims to understand your organization’s unique financial pathway associated with its climate transition.
It is up to each company to select the relevant financial metric(s) and methodology(ies) for identifying the alignment of its expenditures/revenues with its climate transition.
Note that this question requests information to be provided at the company (organizational) level. If you indicated in column 2 of C3.5 that you identify alignment at both the company and activity level, you will have the opportunity to provide activity-level information in the subsequent question, C3.5b.
If you are reporting any type of spending on or revenue from low-carbon products and/or services, specify in column 9 whether it pertains to mature technologies or non-mature technologies (e.g., if you finance Emerging Climate Technologies). If this pertains to both mature and non-mature technologies, please provide the breakdown for these.
It is acknowledged that figures for future years will be estimates. Assumptions underlying these estimates should be disclosed in column 9.

Financial metric (column 1)

Add a row for each financial metric you would like to provide information for, or select “Other, please specify” to provide information for a financial metric that is not listed.
You can make your response more granular by adding multiple rows and selecting “Other, please specify”. For example, if in addition to total OPEX, you wish to report several distinct categories of OPEX (e.g., utilities, business travel, R&D expenses, etc.) separately, you may do so by adding multiple rows and using “Other, please specify” to specify the relevant OPEX category.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should add a separate row to provide figures for turnover, CAPEX and if relevant, OPEX associated with each environmental objective separately, and a total across all objectives. Note that as per the EU Taxonomy Technical Expert Group Report (TEG), “turnover” and “revenue” are often used interchangeably, and in some contexts, may mean the same thing, despite there being some technical differences. The term turnover is most commonly used in Europe and Asia, while the use of the terms revenues or sales is more common in the United States. Revenue disclosures can therefore be considered as turnover wherever appropriate.

Type of alignment being reported for this financial metric (column 2)

The drop-down options presented in this column will depend on your response to question C3.5.
If you select “Alignment with a climate transition plan”, it is up to each company to determine what is considered to be aligned with your organization’s climate transition plan, for example:
- Revenue derived from the sale of low-carbon products or services as defined via recognized taxonomies or methodologies could be included in the percentage share aligned with your organization’s climate transition plan.
- Spending (e.g., CAPEX or OPEX) on the implementation of emissions reduction initiatives and/or investment in new low-carbon assets or projects could be included in the percentage share aligned with your organization’s climate transition plan.
- Spending/revenue that is related to activities which do not directly contribute to your organization’s climate transition (e.g. revenue from sales of equipment used in both low-carbon and high-emitting assets etc.) should not be included.
If you select “Alignment with a sustainable finance taxonomy”, the information reported in the subsequent columns should be calculated in line with the requirements set out by the taxonomy. For example, if you are disclosing information under the EU Taxonomy for Sustainable Activities, the information should be reported in accordance with the requirements of Article 3 of the EU Taxonomy Regulation.

Taxonomy under which information if being reported (column 3)

This column is only presented if “Alignment with a sustainable finance taxonomy” is selected in column 2 “Type of alignment being reported for this financial metric”.
Add a row for each sustainable finance taxonomy you are providing information for.
Select “Other, please specify” to provide information for a sustainable finance taxonomy that is not listed. For further information on alternative sustainable finance taxonomies, please see CDP’s policy brief.
If you select “EU Taxonomy for Sustainable Activities”, note that the reporting period under the EU Taxonomy is January to December which may differ from the reporting period indicated in C0.2 relevant to the rest of the CDP questionnaire.

Objective under which alignment is being reported (column 4)

This column is only presented if “Alignment with a sustainable finance taxonomy” is selected in column 2 “Type of alignment being reported for this financial metric”.
Add a row for each environmental objective within the sustainable finance taxonomy you wish to provide information for. See the Explanation of Terms for more information on climate change mitigation and adaptation. If the sustainable finance taxonomy does not require disclosure against specific environmental objectives, select “Total across all objectives”.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should enter information for each environmental objective separately. You should also report total alignment across all objectives. The figures reported in this question should be calculated from the “Taxonomy-aligned” information you reported at activity-level in the subsequent question C3.5b.

Amount of selected financial metric that is aligned in the reporting year (column 5)

Enter the spending/revenue that you consider to be aligned with your organization’s climate transition (i.e., aligned with your climate transition plan or a sustainable finance taxonomy as indicated in column 3) for this financial metric as an absolute monetary value in the reporting year.
This figure should be based on your company-wide financial statement for the reporting year, consistent with your organizational boundary as disclosed in C0.5, and in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
Unless your organization is disclosing alignment against a sustainable finance taxonomy which requires data to be provided for a specific reporting year, the figure provided in this column should be consistent with the reporting year defined by your answer to C0.2.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should provide this figure for a January to December reporting period. If you are disclosing information under the EU Taxonomy for Sustainable Activities, the figure reported in this column should meet the requirements of Article 3 of the EU Taxonomy Regulation.

Percentage share of selected financial metric aligned in the reporting year (%) (column 6)

Enter the spending/revenue that you consider to be aligned with your organization’s climate transition (i.e. that is aligned with your climate transition plan or a sustainable finance taxonomy as indicated in column 3) for this financial metric as a percentage of your total spending/revenue for this financial metric in the reporting year.
This figure should be based on your company-wide financial statement for the reporting year, consistent with your organizational boundary as disclosed in C0.5.
Unless your organization is disclosing alignment against a sustainable finance taxonomy which requires data to be provided for a specific reporting year, the figure provided in this column should be consistent with the reporting year defined by your answer to C0.2.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should provide this figure for a January to December reporting period. If you are disclosing information under the EU Taxonomy for Sustainable Activities, the figure reported in this column should meet the requirements of Article 3 of the EU Taxonomy Regulation.

Percentage share of selected financial metric planned to align in 2025 (%) (column 7)

Enter the spending/revenue for this financial metric that you plan to align with your organization’s climate transition (i.e., that you plan to align with your climate transition plan or a sustainable finance taxonomy as indicated in column 3) as a percentage of your total planned spending/revenue for this financial metric in 2025.

Percentage share of selected financial metric planned to align with a 1.5°C world in 2030 (%) (column 8)

Enter the spending/revenue for this financial metric that you plan to align with your organization’s climate transition (i.e., that you plan to align with your climate transition plan or a sustainable finance taxonomy as indicated in column 3) as a percentage of your total planned spending/revenue for this financial metric in 2030.

Describe the methodology used to identify spending/revenue that is aligned (column 9)

Provide the criteria used to determine the alignment of the spending/revenue with your organization’s climate transition.
Comment on how your organization’s spending/revenue that is aligned with your climate transition is estimated to change over time and describe the assumptions underlying the estimation.
Companies disclosing alignment with your organization’s climate transition plan:
- Should provide examples of the activities, assets, technologies, products and/or services for which you classified the associated spending/revenue as aligned with your climate transition plan.
- You may also provide examples of activities, assets, technologies, products and/or services for which you did not classify the associated spending/revenue as aligned.
- Indicate whether you have obtained third party verification/assurance for your alignment information.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should use this column to describe your methodology for calculating your taxonomy alignment and how you have avoided double-counting. If you have obtained third party verification/assurance for your alignment information, you will have the opportunity to indicate this in a subsequent question.
If you are disclosing alignment with your organization’s climate transition plan and alignment with a sustainable finance taxonomy in separate rows, use this column to explain why these figures differ.

Explanation of terms

Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5. Please refer to the CDP Climate Transition Plan technical note for more details
Emerging Climate Technology (ECT): a commercially promising technology that addresses climate mitigation challenges but needs to attract enough investment to deploy the technology and develop business models and markets for the product or services it produces. Eventually it may become a successful innovation deployed at scale, generating new markets or profoundly disrupting established (fossil-based) ones (Auerswald et al., 2005). For a more detailed definition and guidance, refer to the ECT initiative.
Climate change mitigation: the process of holding the increase in the global average temperature to well below 2°C and pursuing efforts to limit it to 1.5°C above pre-industrial levels, as laid down in the Paris Agreement.
Climate change adaptation: the process of adjustment to actual and expected climate change and its impacts.
Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
Turnover: 'net turnover' means the amount derived from the sale of products and the provision of services after deducting sales rebates and value added tax and other taxes directly linked to turnover, as per Article 2(5) of Directive 2013/34/EU (The Accounting Directive).
Capital expenditure (CAPEX): A measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
Operational expenditure (OPEX): Operating expenditure includes direct non-capitalized costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets.

Example Response

Company A Response

Financial Metric	Type of alignment being reported for this financial metric	Taxonomy under which information is being reported*	Objective under which alignment is being reported*	Amount of selected financial metric that is aligned in the reporting year (unit currency as selected in C0.4)
1	2	3	4	5
Revenue/Turnover	Alignment with our climate transition plan	N/A	N/A	330,000

Percentage share of selected financial metric aligned in the reporting year (%)	Percentage share of selected financial metric planned to align in 2025 (%)	Percentage share of selected financial metric planned to align in 2030 (%)	Describe the methodology used to identify spending/revenue that is aligned
6	7	8	9
2	4	30	Our automobile manufacturing business currently produces both vehicles with internal combustion engines and electric vehicles. We have accounted as ‘aligned with our climate transition plan’ the revenue generated from sales of electric vehicles only. We estimate that our revenue from EVs will increase in the future due to regulatory requirements and shifting consumer preferences. To estimate the percentage share in 2025 and 2030 we modelled the results from a recent consumer survey. To estimate the demand of EV vehicles in different jurisdictions we carried out a policy analysis and modelled the emergence of future regulations. In our calculation we excluded revenues from ICE vehicles and revenues from sales of equipment used in both ICE and EVs, as we classed such equipment as neutral.

Company B Response

Financial Metric	Type of alignment being reported for this financial metric	Taxonomy under which information is being reported*	Objective under which alignment is being reported*	Amount of selected financial metric that is aligned in the reporting year (unit currency as selected in C0.4)
1	2	3	4	5
CAPEX	Alignment with our climate transition plan	N/A	N/A	600,000
CAPEX	Alignment with a sustainable taxonomy	EU Taxonomy for Sustainable Activities	Total across all objectives	480,000

Percentage share of selected financial metric aligned in the reporting year (%)	Percentage share of selected financial metric planned to align in 2025 (%)	Percentage share of selected financial metric planned to align in 2030 (%)	Describe the methodology used to identify spending/revenue that is aligned
6	7	8	9
10	23	42	We currently generate energy from both renewable energy and fossil fuel energy generation facilities. We have accounted only the CAPEX associated with our renewable energy assets as ‘aligned with our climate transition plan’. As part of our net-zero by 2045 commitment, we intend to triple our renewable energy capacity by 2030 and exit our coal generation by 2025 and gas generation by 2040. We are therefore planning to increase the CAPEX associated with renewables from 10% to 42% of our total CAPEX by 2030.
8	20	40	We have also assessed the alignment of our renewable energy and fossil fuel activities with the EU Taxonomy. The 8% figure disclosed represents the proportion of our total CAPEX associated with the substantial contribution of our onshore wind and thermal power generation activities to climate change mitigation and climate change adaptation in the reporting year. CAPEX associated with our onshore wind and thermal power plants, plant machinery and grid equipment are included. Our fossil fuel power generation activities did not meet the technical screening criteria prescribed under the EU Taxonomy Complementary Delegated Act As part of our net-zero commitment to triple our renewable energy assets and phase out fossil fuel by 2045, we plan to increase our taxonomy-aligned CAPEX to 20% in 2025 and 40% in 2030. In calculating the figure as a total across both climate-related objectives, we followed the EU Commission’s guidance to avoid double counting by separately counting CAPEX associated with activities contributing to climate mitigation and climate adaptation at the activity level.

Company C response

Financial Metric	Type of alignment being reported for this financial metric	Taxonomy under which information is being reported*	Objective under which alignment is being reported*	Amount of selected financial metric that is aligned in the reporting year (unit currency as selected in C0.4)
1	2	3	4	5
Other, please specify (OPEX - R&D expenses)	Alignment with our climate transition plan	N/A	N/A	60,000

Percentage share of selected financial metric planned to align in 2025 (%)	Percentage share of selected financial metric planned to align in 2025 (%)	Percentage share of selected financial metric planned to align in 2030 (%)	Describe the methodology used to identify spending/revenue that is aligned
6	7	8	9
18	30	60	Alongside our dairy business, we produce plant-based milks and yogurt. We have accounted the R&D expenses related to these plant-based products as ‘aligned with our climate transition plan’. R&D expenses are accounted for in our financial statements as a subset of OPEX. Based on trends over the last ten years, we anticipate consumer demand for our plant-based products to continue to increase over time. Therefore, we estimate that the share of our total R&D that is on plant-based dairy alternatives will increase to 60% by 2030 to meet this demand.

Company D response

Financial Metric	Type of alignment being reported for this financial metric	Taxonomy under which information is being reported*	Objective under which alignment is being reported*	Amount of selected financial metric that is aligned in the reporting year (unit currency as selected in C0.4)
1	2	3	4	5
Revenue/Turnover	Alignment with a sustainable finance taxonomy	EU Taxonomy for Sustainable Activities	Climate change mitigation	800,500

Percentage share of selected financial metric planned to align in 2025 (%)	Percentage share of selected financial metric planned to align in 2025 (%)	Percentage share of selected financial metric planned to align in 2030 (%)	Describe the methodology used to identify spending/revenue that is aligned
6	7	8	9
15	20	35	Our company’s operations include clinker and cement manufacturing activities which are eligible under the EU Taxonomy. In the reporting year, 15% of our total turnover was attributable to the manufacture of grey cement clinker and cement from alternative hydraulic binder – activities which met all criteria to contribute substantially to climate change mitigation under the EU Taxonomy by enabling the transition to 1.5C. Our operations in these activities are expected to expand by 2030 as we phase out our conventional cement manufacturing units. Therefore, we expect the proportion of our total turnover which substantially contributes to climate change mitigation under the taxonomy to increase to 35% by 2030.

(C3.5b) Quantify the percentage share of your spending/revenue that was associated with eligible and aligned activities under the sustainable finance taxonomy in the reporting year.

Question dependencies

This question only appears if “At both the company and activity level” is selected in response to column 2 of C3.5.

Change from last year

New question

Rationale

This question allows companies to provide evidence of the extent to which their spending and revenue is directed at/derived from activities defined as sustainable by a sustainable finance taxonomy.

Ambition: Companies align their spending and revenue with activities defined as sustainable by a sustainable finance taxonomy.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

Alignment with EU Taxonomy for sustainable activities - Capital Expenditure

Alignment with EU Taxonomy for sustainable activities - Operating Expenditure

Alignment with EU Taxonomy for sustainable activities - Revenues

Response options

Economic activity	Taxonomy under which information is being reported	Taxonomy alignment	Financial metric(s)	Taxonomy-aligned turnover from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-aligned turnover from this activity as % of total turnover in the reporting year*	Taxonomy-aligned turnover from this activity that substantially contributed to climate change mitigation as a % of total turnover in the reporting year*
1	2	3	4	5	6	7
Select from drop-down options below	Select from: EU Taxonomy for Sustainable Activities Other, please specify	Select from: Taxonomy-aligned Taxonomy-eligible but not aligned	Select all that apply: Turnover CAPEX OPEX	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]

Taxonomy-aligned turnover from this activity that substantially contributed to climate change adaptation as a % of total turnover in the reporting year*	Taxonomy-eligible but not aligned turnover from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-eligible but not aligned turnover from this activity as % of total turnover in the reporting year*	Taxonomy-aligned CAPEX from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-aligned CAPEX from this activity as % of total CAPEX in the reporting year*	Taxonomy-aligned CAPEX from this activity that substantially contributed to climate change mitigation as a % of total CAPEX in the reporting year*	Taxonomy-aligned CAPEX from this activity that substantially contributed to climate change adaptation as a % of total CAPEX in the reporting year*
8	9	10	11	12	13	14
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]

Taxonomy-eligible but not aligned CAPEX associated with this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-eligible but not aligned CAPEX associated with this activity as % of total CAPEX in the reporting year*	Taxonomy-aligned OPEX from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-aligned OPEX from this activity as % of total OPEX in the reporting year*	Taxonomy-aligned OPEX from this activity that substantially contributed to climate change mitigation as a % of total OPEX in the reporting year*	Taxonomy-aligned OPEX from this activity that substantially contributed to climate change adaptation as a % of total OPEX in the reporting year*	Taxonomy-eligible but not aligned OPEX associated with this activity in the reporting year (unit currency as selected in C0.4)*
15	16	17	18	19	20	21
Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]

Taxonomy-eligible but not aligned OPEX associated with this activity as % total OPEX in the reporting year*	Type(s) of substantial contribution*	Calculation methodology and supporting information	Technical screening criteria met	Details of technical screening criteria analysis	Do no significant harm requirements met	Details of do no significant harm analysis
22	23	24	25	26	27	28
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Select all that apply: Own performance Adapted activity Transitional activity Activity enabling mitigation Activity enabling adaptation	Text field [maximum 2,500 characters]	Select from: Yes No	Text field [maximum 2,500 characters]	Select from: Yes No	Text field [maximum 2,500 characters]

Minimum safeguards compliance requirements met	Details of minimum safeguards compliance analysis
29	30
Select from: Yes No	Text field [maximum 2,500 characters]

[Add row]

Economic activity (column 1) drop-down options

Select one of the following options:

Afforestation
Rehabilitation and restoration of forests, including reforestation and natural forest regeneration after an extreme event
Forest management
Conservation forestry
Restoration of wetlands
Manufacture of renewable energy technologies
Manufacture of equipment for the production and use of hydrogen
Manufacture of low carbon technologies for transport
Manufacture of batteries
Manufacture of energy efficiency equipment for buildings
Manufacture of other low carbon technologies
Manufacture of cement
Manufacture of aluminium
Manufacture of iron and steel
Manufacture of hydrogen
Manufacture of carbon black
Manufacture of soda ash
Manufacture of chlorine
Manufacture of organic basic chemicals
Manufacture of anhydrous ammonia
Manufacture of nitric acid
Manufacture of plastics in primary form
Electricity generation using solar photovoltaic technology
Electricity generation using concentrated solar power (CSP) technology
Electricity generation from wind power
Electricity generation from ocean energy technologies
Electricity generation from hydropower
Electricity generation from geothermal energy
Electricity generation from renewable non-fossil gaseous and liquid fuels
Electricity generation from bioenergy

Transmission and distribution of electricity
Storage of electricity
Storage of thermal energy
Storage of hydrogen
Manufacture of biogas and biofuels for use in transport and of bioliquids
Transmission and distribution networks for renewable and low-carbon gases
District heating/cooling distribution
Installation and operation of electric heat pumps
Cogeneration of heat/cool and power from solar energy
Cogeneration of heat/cool and power from geothermal energy
Cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels
Cogeneration of heat/cool and power from bioenergy
Production of heat/cool from solar thermal heating
Production of heat/cool from geothermal energy
Production of heat/cool from renewable non-fossil gaseous and liquid fuels
Production of heat/cool from bioenergy
Production of heat/cool using waste heat
Construction, extension and operation of water collection, treatment and supply systems
Renewal of water collection, treatment and supply systems
Construction, extension and operation of waste water collection and treatment
Renewal of waste water collection and treatment
Collection and transport of non-hazardous waste in source segregated fractions

Anaerobic digestion of sewage sludge
Anaerobic digestion of bio-waste
Composting of bio-waste
Material recovery from non-hazardous waste
Landfill gas capture and utilization
Transport of CO2
Underground permanent geological storage of CO2
Passenger interurban rail transport
Freight rail transport
Urban and suburban transport, road passenger transport
Operation of personal mobility devices, cycle logistics
Transport by motorbikes, passenger cars and light commercial vehicles
Freight transport services by road
Inland passenger water transport
Inland freight water transport
Retrofitting of inland water passenger and freight transport
Sea and coastal freight water transport, vessels for port operations and auxiliary activities
Sea and coastal passenger water transport
Retrofitting of sea and coastal freight and passenger water transport
Infrastructure for personal mobility, cycle logistics
Infrastructure for rail transport
Infrastructure enabling low-carbon road transport and public transport
Infrastructure enabling low carbon water transport
Infrastructure for water transport
Infrastructure enabling road transport and public transport
Airport infrastructure
Low carbon airport infrastructure
Construction of new buildings
Renovation of existing buildings
Installation, maintenance and repair of energy efficiency equipment
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings

Installation, maintenance and repair of renewable energy technologies
Acquisition and ownership of buildings
Data processing, hosting and related activities
Computer programming, consultancy and related activities
Programming and broadcasting activities
Data-driven solutions for GHG emissions reductions
Close to market research, development and innovation
Research, development and innovation for direct air capture of CO2
Professional services related to energy performance of buildings
Engineering activities and related technical consultancy dedicated to adaptation to climate change
Non-life insurance: underwriting of climate-related perils
Reinsurance
Education
Residential care activities
Creative, arts and entertainment activities
Libraries, archives, museums and cultural activities
Motion picture, video and television program production, sound recording and music publishing activities
Pre-commercial stages of advanced technologies to produce energy from nuclear processes with minimal waste from the fuel cycle
Construction and safe operation of new nuclear power plants, for the generation of electricity or heat, including for hydrogen production, using best-available technologies
Electricity generation from nuclear energy in existing installations
Electricity generation from fossil gaseous fuels
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system

Requested content

General

This question requests information on the numerical amount and percentage of your organization’s total turnover, CAPEX, and, where applicable, OPEX in the reporting year which, in relation to a selected activity, is:
- Taxonomy-aligned: meets the criteria prescribed under a sustainable finance taxonomy; and
- Taxonomy-eligible but not aligned: does not meet the criteria prescribed under a sustainable finance taxonomy
Note that the information provided in this question should be limited to activities which are eligible (or aligned) under a sustainable finance taxonomy (i.e., activities which are eligible to be classified as environmentally sustainable under the taxonomy). You will have the opportunity to provide information on non-eligible activities in C3.5c.
If you are disclosing information under the EU Taxonomy for Sustainable Activities, you should report each of Revenue/Turnover, CAPEX, and, where applicable, OPEX for your selected activities.
If you have obtained third party verification/assurance for your taxonomy-alignment data, you will have the opportunity to indicate this in C3.5c and C10.2a.
See “Explanation of terms” for more information.

Economic activity (column 1)

Select the option that best describes the activity for which you are disclosing financial information on taxonomy-eligibility or -alignment.
The list of economic activities corresponds to the classification of environmentally sustainable economic activities included within the Climate Delegated Act to the EU Taxonomy Regulation. Companies reporting against taxonomies other than the EU Taxonomy should select the closest approximation of the activity for which you wish to report information, based on their given description within the Climate Delegated Act. Whilst the EU Taxonomy list of activities are largely based on the Nomenclature of Economic Activities (NACE), note that these references are only indicative and not exhaustive. Therefore, even in the absence of a NACE sector reference in the Climate Delegated Act, an economic activity that you wish to report on may yet match the activity description laid out by the Act and be eligible for reporting.
If an activity comprises elements that are both taxonomy-aligned and taxonomy-eligible but not aligned (e.g., the activity meets the criteria prescribed under the taxonomy for some of your organization’s facilities but not others), add two separate rows for that activity. In one row, provide financial information for the proportion that is taxonomy-aligned, and in the other, provide financial information for the proportion that is taxonomy-eligible but not aligned. Select the relevant option in column 3 to indicate which type of taxonomy alignment you are reporting for each row.

Taxonomy under which information is being reported (column 2)

If you wish to provide financial information on your organization’s alignment with an activity-level sustainable finance taxonomy that is not listed, select “Other, please specify” and provide the name of the taxonomy.

Taxonomy Alignment (column 3)

Select “Taxonomy-aligned" to report financial information for an activity (or a proportion of an activity) which meets the criteria prescribed under the sustainable finance taxonomy selected in column 2 in the reporting year.
Select “Taxonomy-eligible but not aligned” to report financial information for an activity (or a proportion of an activity) which does not meet the criteria prescribed under the sustainable finance taxonomy selected in column 2 in the reporting year.
If you are disclosing information under the EU Taxonomy for Sustainable Activities, selecting “Taxonomy-aligned” in this column indicates that you are able to provide information in columns 25-30 as per the requirements of Article 3 of the EU Taxonomy Regulation.
Your selection in this column will drive the appearance of subsequent columns.

Financial metric(s) (column 4)

Select the financial metric(s) you would like to provide information for.
If you are disclosing information under the EU Taxonomy for Sustainable Activities, you should select turnover, CAPEX, and, if relevant, OPEX for each row reported, i.e., for each taxonomy-aligned activity (or proportion of an activity) and each taxonomy-eligible but not aligned activity (or proportion of an activity).
Your selection in this column will drive the appearance of subsequent columns.

Taxonomy-aligned [turnover/CAPEX/OPEX] from this activity in the reporting year (unit currency as selected in C0.4) (columns 5, 11, 17)

These columns are presented if “Taxonomy-aligned” is selected in column 3 “Taxonomy alignment”. The relevant column(s) (5, 11, and/or 17) will be presented based on your selection(s) in column 4 “Financial metric(s)”.
Enter the absolute value of taxonomy-aligned [turnover/CAPEX/OPEX] associated with the activity selected in column 1 in the reporting year.
The figures provided in these columns should be based on your company-wide financial statement for the reporting year, consistent with your organizational boundary as disclosed in C0.5, and in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
Unless your organization is disclosing alignment against a sustainable finance taxonomy which requires data to be provided for a specific reporting year, the figures provided should be consistent with the reporting year defined by your answer to C0.2.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should provide figures for a January to December reporting period.

Taxonomy-aligned [turnover/CAPEX/OPEX] from this activity as % of total [turnover/CAPEX/OPEX] in the reporting year (columns 6, 12, 18)

These columns are presented if “Taxonomy-aligned” is selected in column 3 “Taxonomy alignment”. The relevant column(s) (6, 12, and/or 18) will be presented based on your selection(s) in column 4 “Financial metric(s)”.
Enter the taxonomy-aligned [turnover/CAPEX/OPEX] associated with the activity selected in column 1 as a percentage of your total [turnover/CAPEX/OPEX] in the reporting year.
Unless your organization is disclosing alignment against a sustainable finance taxonomy which requires data to be provided for a specific reporting year, the figures provided in these columns should be consistent with the reporting year defined by your answer to C0.2.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should provide figures for a January to December reporting period, and should refer to Annex I of the Disclosure Delegated Act (pg. 17-22) and sections II, III and IV of the EU Commission FAQs (pg. 25-30) for detailed guidance on calculation of these figures, referred to as the ‘turnover KPI’, ‘CapEx KPI’ and ‘OpEx KPI’. See the Explanation of Terms for more information.

Taxonomy-aligned [turnover/CAPEX/OPEX] from this activity that substantially contributed to [climate change mitigation/climate change adaptation] as a % of total [turnover/CAPEX/OPEX] in the reporting year (columns 7, 8, 13, 14, 19, 20)

These columns are presented if “Taxonomy-aligned” is selected in column 3 “Taxonomy alignment”. The relevant column(s) (7 & 8, 13 & 14, and/or 19 & 20) will be presented based on your selection(s) in column 4 “Financial metric(s)”.
Enter separately the percentage of your organization’s taxonomy-aligned [turnover/CAPEX/OPEX] associated with the activity selected in column 1 that contributed substantially to climate change mitigation (columns 7, 13, 19) and climate change adaptation (columns 8, 14, 19) in the reporting year.
For example:
- if 23% your organization’s total turnover from the activity in the reporting year contributed to climate change mitigation, but the activity did not contribute to climate change adaptation, enter “23” in column 7, and “0” in column 8; or
- if the activity did not contribute to climate change mitigation, but 7% your organization’s OPEX associated with the activity in the reporting year contributed to climate change adaptation, enter “0” in column 19 and “7” in column 20.
- If 14% your organization's total CAPEX associated with the activity in the reporting year contributed to climate change mitigation, and 3% your organization's total CAPEX associated with the activity in the reporting year contributed to climate change adaptation, enter "14" in column 13 and "3" in column 14.
If you are disclosing information under the EU Taxonomy for Sustainable Activities and the activity selected in column 1 substantially contributed to both climate change mitigation and climate change adaptation in the reporting year, depending on the specific nature of the activity, a percentage figure for taxonomy-aligned [turnover/CAPEX/OPEX] may be reported under both objectives. Note that turnover from adapted activities may not be assessed for climate change adaptation except in specific scenarios. For more information on addressing double counting, refer to the examples provided in the EU Commission FAQs (p15-17).
Unless your organization is disclosing alignment against a sustainable finance taxonomy which requires data to be provided for a specific reporting year, the figures provided should be consistent with the reporting year defined by your answer to C0.2.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should provide figures for a January to December reporting period.

Taxonomy-eligible but not aligned [turnover/CAPEX/OPEX] from this activity in the reporting year (columns 9, 15, 21)

These columns are presented if “Taxonomy-eligible but not aligned” is selected in column 3 “Taxonomy alignment”. The relevant column(s) (9, 15, and/or 21) will be presented based on your selection(s) in column 4 “Financial metric(s)”.
Enter the absolute value of taxonomy-eligible but not aligned [turnover/CAPEX/OPEX] associated with the activity selected in column 1 in the reporting year.
Unless your organization is disclosing alignment against a sustainable finance taxonomy which requires data to be provided for a specific reporting year, the figures provided should be consistent with the reporting year defined by your answer to C0.2.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should provide figures for a January to December reporting period.

Taxonomy-eligible but not aligned [turnover/CAPEX/OPEX] from this activity as % of total [turnover/CAPEX/OPEX] in the reporting year (columns 10, 16, 22)

These columns are presented if “Taxonomy-eligible but not aligned” is selected in column 3 “Taxonomy alignment”. The relevant column(s) (10, 16, and/or 22) will be presented based on your selection(s) in column 4 “Financial metric(s)”.
Enter the taxonomy-eligible but not aligned [turnover/CAPEX/OPEX] associated with the activity selected in column 1 as a percentage of your total [turnover/CAPEX/OPEX] in the reporting year.
Unless your organization is disclosing alignment against a sustainable finance taxonomy which requires data to be provided for a specific reporting year, the figures provided in these columns should be consistent with the reporting year defined by your answer to C0.2.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should provide figures for a January to December reporting period.

Type(s) of substantial contribution (column 23)

This column is presented if “Taxonomy-aligned” is selected in column 3 “Taxonomy alignment”
Select the type(s) of substantial contribution to climate change mitigation and/or climate change adaptation you are disclosing for the activity selected in column 1:
- Own performance: the activity is being performed in a way that it itself contributes substantially by making a positive impact or removing a negative impact on climate change mitigation. For example, where the activity is already low-carbon. If you are disclosing alignment against the EU Taxonomy for Sustainable Activities, note that activities are considered substantially contributing through own performance if they meet the corresponding technical screening criteria established by the Climate Delegated Act (Annex I- pg. 12- 140).
- Adapted activity: the activity is being performed in a way that it itself contributes substantially by making a positive impact or removing a negative impact on climate change adaptation. For example, where the activity adopts adaptation solutions. If you are disclosing alignment against the EU Taxonomy for Sustainable Activities, note that activities may qualify as substantially contributing through own performance if they meet the corresponding technical screening criteria established by the Climate Delegated Act (Annex II- pg. 146- 346).
- Transitional activity: the activity does not have a technologically or economically feasible low-carbon alternative, but substantially contributes to climate change mitigation by supporting the transition to a net-zero carbon economy consistent with a pathway to limit the temperature increase to 1.5C above preindustrial levels.
- Activity enabling climate change mitigation: the activity enables a substantial contribution to be made to climate change mitigation in other activities. For example, the activity enables other activities to achieve emissions reductions.
- Activity enabling climate change adaptation: the activity enables a substantial contribution to be made to climate change adaptation in other activities. For example, the activity is developing adaptation solutions.
If you are disclosing against the EU Taxonomy for Sustainable Activities, you are encouraged to use the EU Taxonomy Compass tool developed by the EU Commission, to determine whether an activity is enabling or transitional.
If the activity substantially contributes to both climate change mitigation and climate change adaptation, select all types of substantial contribution across both objectives. For example, an activity may contribute substantially to climate change mitigation based on its own performance, and also enable climate change adaptation.

Calculation methodology and supporting information (column 24)

Disclose the basis on which figures reported in this question for the activity selected in column 1 were calculated, including any assessment of the allocation of revenues and expenditures to the activity, and its CAPEX plan (as per the Disclosure Delegated Act (Annex I- pg. 19-22) in the case of the EU Taxonomy).
Provide any other supporting information, such as the basis on which the turnover, CAPEX, and, if relevant, OPEX were calculated, and any inclusions or exclusions thereof.
Indicate whether any operations within the activity selected in column 1 are non-eligible under the sustainable finance taxonomy. If you are reporting against the EU Taxonomy for Sustainable Activities use this column to indicate non-eligible activities under the Complementary Delegated Act (Annex III- pg. 43-44).

Technical screening criteria met (column 25)

Select whether the activity selected in column 1 meets the technical screening criteria for substantial contribution to climate change mitigation and/or climate change adaptation established under the sustainable finance taxonomy (the Climate Delegated Act (Annexes I and II) in the case of the EU Taxonomy).
If an activity selected in column 1 substantially contributes to both climate change mitigation and climate change adaptation, select ‘Yes’ in this column only if the technical screening criteria for the activity set against both objectives under the sustainable finance taxonomy have been met.
For activities that are both taxonomy-aligned and taxonomy-eligible but not aligned (i.e. that you are reporting in two separate rows), select whether the proportion of the activity reported in this row meets the technical screening criteria, as per your selection in column 3 “Taxonomy Alignment”.

Details of technical screening criteria analysis (column 26)

If you selected “Yes” in column 25, describe how the activity meets the technical screening criteria for substantial contribution to climate change mitigation and/or climate change adaptation.
If you selected “No”, in column 25, explain why the activity does not meet the technical screening criteria for substantial contribution to climate change mitigation and/or climate change adaptation.

Do no significant harm requirements met (column 27)

Select whether the activity selected in column 1 meets the criteria set out under the sustainable finance taxonomy (the Climate Delegated Act (Annexes I and II) in the case of the EU Taxonomy) to demonstrate no significant harm to other environmental objectives.
You should take into account both the environmental impact of the activity itself and of the products and services provided by that activity.
If an activity selected in column 1 substantially contributes to both climate change mitigation and climate change adaptation, select ‘Yes’ in this column only if no significant harm is demonstrated against both objectives under the sustainable finance taxonomy.
For activities that are reported as both taxonomy-aligned and taxonomy-eligible but not aligned (i.e., that you are reporting under two separate rows), select whether the proportion of the activity reported in this row meets the do no significant harm criteria, as per your selection in column 3 “Taxonomy alignment”.
Companies disclosing alignment against the EU Taxonomy for Sustainable Activities should refer to Section III of the EU Commission FAQs (p67- 76) for further guidance on the do no significant harm criteria.

Details of do no significant harm analysis (column 28)

If you selected “Yes” in column 27, describe how the activity met the do no significant harm criteria for climate change mitigation and/or climate change adaptation.
If you selected “No”, in column 27, explain why the activity did not meet the do no significant harm criteria for climate change mitigation and/or climate change adaptation.

Minimum safeguards compliance requirements met (column 29)

Select whether the activity selected in column 1 complies with international best practices for sustainable business and social safeguards such as the:
- OECD Guidelines for Multinational Enterprises,
- UN Guiding Principles on Business and Human Rights,
- ILO Declaration on the Fundamental Principles and Rights at Work; and
- International Bill of Human Rights.
For activities that are both taxonomy-aligned and taxonomy-eligible but not aligned (i.e., that you are reporting under two separate rows), select whether the proportion of the activity reported in this row complies with international best practices for sustainable business and social safeguards, as per your selection in column 3 “Taxonomy Alignment”.

Details of minimum safeguards compliance analysis (column 30)

If you selected “Yes” in column 29, describe how the activity complies with international best practices for sustainable business and social safeguards.
If you selected “No”, in column 29, you may wish to explain why the activity does not comply with international best practices for sustainable business and social safeguards.

Explanation of terms

Turnover: 'net turnover' means the amounts derived from the sale of products and the provision of services after deducting sales rebates and value added tax and other taxes directly linked to turnover, as per Article 2(5) of Directive 2013/34/EU (The Accounting Directive). In case of reporting to the EU Taxonomy, please refer the explanation for ‘Key Performance Indicators’ below, for further information on the exact reporting requirements of the Turnover KPI.
CAPEX: A measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure. In case of reporting to the EU Taxonomy, please refer the explanation for ‘Key Performance Indicators’ below, for further information on the exact reporting requirements of the CAPEX KPI.
OPEX: Operating expenditure includes direct non-capitalized costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom activities are outsourced that are necessary to ensure the continued and effective functioning of such assets. In case of reporting to the EU Taxonomy, please refer the explanation for ‘Key Performance Indicators’ below, for further information on the exact reporting requirements of the OPEX KPI.
Taxonomy-eligible but not aligned: An activity is considered ‘taxonomy-eligible but not aligned’ if your organization generates turnover or invests in capital or operating expenditure corresponding to an activity listed in column 1, but the activity does not meet the technical screening criteria and/or do no significant harm criteria prescribed by the sustainable finance taxonomy and/or does not comply with international best practices for sustainable business and social safeguards.
Taxonomy-aligned: An activity is considered ‘taxonomy-eligible but not aligned’ if, your organization generates turnover or invests in capital or operating expenditure corresponding to such activities in column 1, and the activity meets the technical screening criteria and do no significant harm criteria prescribed by the sustainable finance taxonomy and complies with international best practices for sustainable business and social safeguards.
Substantial contribution: A taxonomy-eligible activity is said to substantially contribute to one or more environmental objectives under a taxonomy when it, through its own performance, meets the corresponding technical screening criteria set out by the relevant taxonomy. In relation to the EU Taxonomy for Sustainable Activities this refers to the technical screening criteria established by the Climate Delegated Act (Annexes I and II).
Do no significant harm: A taxonomy-eligible activity that substantially contributes to one or more of the taxonomy’s objectives and complies with international best practices for sustainable business and social safeguards may only qualify as an environmentally sustainable (i.e., ‘taxonomy-aligned’) if it does not cause significant harm to any other environmental objective. In relation to the EU Taxonomy for Sustainable Activities, this refers to the conditions specified under Article 17 of the EU Taxonomy Regulation.
Minimum safeguards: A taxonomy-eligible activity that substantially contributes to one or more of the taxonomy’s objectives and does not cause significant harm to any other environmental objective may only qualify as an environmentally sustainable (i.e., ‘taxonomy-aligned’) if it complies with international best practices for sustainable business and social safeguards. In relation to the EU Taxonomy for Sustainable Activities, these refer to the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organization on Fundamental Principles and Rights at Work and the International Bill of Human Rights.
Key Performance Indicators (KPIs): In relation to the EU Taxonomy for Sustainable Activities, the KPIs refer to the proportion of the turnover, capital expenditure (CAPEX) and operating expenditure (OPEX) related to assets or processes associated with environmentally sustainable economic activities. For each of the Turnover KPI, CAPEX KPI, OPEX KPI this refers to the numerator divided by the denominator as specified by the Disclosure Delegated Act (Annex I pg 17- 19).

Example Response

Example 1: Company A reports turnover associated with an activity which is taxonomy eligible but not aligned with the EU Taxonomy. The activity is not aligned as it does not meet the DNSH requirements prescribed under the taxonomy.

Economic activity	Taxonomy under which information is being reported	Taxonomy Alignment	Financial metric(s)	Taxonomy-eligible but not aligned turnover from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-eligible but not aligned turnover from this activity as % of total turnover in the reporting year*
1	2	3	4	9	10
Manufacture of renewable energy technologies	EU Taxonomy for Sustainable Activities	Taxonomy-eligible but not aligned	Turnover	250,500	9

Calculation methodology and supporting information

Technical screening criteria met

Details of technical screening criteria analysis

Do no significant harm requirements met

Details of do no significant harm analysis

Minimum safeguards compliance requirements met

Details of minimum safeguards compliance analysis

Based on a detailed analysis of our economic activities and products in solar PVC and CSP manufacturing, we have assigned them to the EU Taxonomy activity ‘Manufacture of renewable energy technologies’. We generate 9% of our total turnover from the manufacture of renewable energy technologies eligible under the taxonomy, such as solar PV cells, inverters, and thermal storage systems. This figure represents our net turnover from products or services associated with PVC and CSP manufacturing, including intangible assets, IP licensing, and R&D, divided by our total net turnover. The solar PVC and CSP activities considered here are found to be fully taxonomy-eligible, without any operations that are non-eligible.

Yes

Solar PVC and CSP fall within the definition of ‘renewable energy’ under Directive (EU) 2018/2001. Therefore, the manufacture of solar PVC and CSP technologies meets the technical screening criteria requirement for activities falling under ‘Manufacture of renewable energy technologies’ outlined in Annex I of the Climate Delegated Act.

To address the DNSH criteria under ‘Manufacture of renewable energy technologies’, we performed a detailed climate risks and vulnerability assessment based on climate projections appropriate to the lifespan and scale of our business activities. We assessed physical risks from the manufacture of CSP and solar PV cells such as water stress and the emission of toxic chemicals to water, and installed water treatment and recycling equipment as adaptation measures to address these risks.

We also performed an environmental impact assessment to identify threats of habitat loss and fragmentation and implemented measures based on the mitigation hierarchy, to avoid operations in biodiversity sensitive areas and mitigate damage where necessary. Please refer to our annual sustainability report (attached) to find a detailed summary of our EIA.

Due to limited resources, our vulnerability assessment report does not, at this stage, include an assessment of the scope for reuse and use of secondary raw material components in our manufactured products, which is a DNSH requirement for transition to a circular economy. We therefore do not meet all the DNSH requirements outlined in the Climate Delegated Act. However, we have included plans for assessing and adopting waste management measures to prioritize recycling over disposal of material.

Yes

We assessed compliance across 12 manufacturing sites in 3 countries. We adhere to the minimum safeguards criteria through a human rights risk assessment based on the UN Guiding Principles on Business and Human Rights. Risk specific measures identified from the analysis will be implemented by the end of 2023.

Example 2: Company B reports turnover and CAPEX associated with an activity which is aligned with the EU Taxonomy because it meets all the criteria prescribed under the taxonomy to make a substantial contribution to climate change mitigation based on own performance.

Economic activity	Taxonomy under which information is being reported	Taxonomy Alignment	Financial metric(s)	Taxonomy-aligned turnover from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-aligned turnover from this activity as % of total turnover in the reporting year*	Taxonomy-aligned turnover from this activity that substantially contributed to climate change adaptation as a % of total turnover in the reporting year*
1	2	3	4	5	6	8
Electricity generation from bioenergy	EU Taxonomy for Sustainable Activities	Taxonomy- aligned	Turnover CAPEX	520,500	14	14

Taxonomy-aligned CAPEX from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-aligned CAPEX from this activity as % of total CAPEX in the reporting year*	Taxonomy-aligned CAPEX from this activity that substantially contributed to climate change mitigation as a % of total CAPEX in the reporting year*	Taxonomy-aligned CAPEX from this activity that substantially contributed to climate change adaptation as a % of total CAPEX in the reporting year*	Type(s) of substantial contribution*	Calculation methodology and supporting information
11	12	13	14	23	24
35,000	12	12	0	Own performance	14% our total turnover in the reporting year can be attributed to the sale of renewable electricity generated from biogas and bioliquids. 12% of our total CAPEX in the reporting year was also associated with the construction of new bioenergy power generation plants.

Technical screening criteria met	Details of technical screening criteria analysis	Do no significant harm requirements met	Details of do no significant harm analysis	Minimum safeguards compliance requirements met	Details of minimum safeguards compliance analysis
25	26	27	28	29	30
Yes	Our electricity generation installations generate a total rated thermal input of 90 MW which meets the energy efficiency level associated with the best available techniques (BAT) conclusions for large combustion plants, as per the technical screening criteria outlined in Annex I of the Climate Delegated Act.	Yes	Plants which are located within zones that do not comply with the air quality limit values prescribed by Directive 2008/50/EC implement measures to reduce emission levels, taking into account the results of the information exchange published by the EU Commission in accordance with Directive (EU) 2015/2193. A climate risk and vulnerability assessment proportionate to the scale of the plants was conducted and the results published in our sustainability report (attached). Environmental degradation risks related to preserving water quality and avoiding water stress are identified and addressed in an Environmental Impact Assessment report (also attached), along with mitigation and compensation measures identified for biodiversity areas affected.	Yes	We have 20 production sites in 4 countries. We adhere to the minimum safeguards criteria through a human rights risk assessment based on the UN Guiding Principles on Business and Human Rights. Risk-specific measures identified from the analysis will be implemented by the end of 2023.

Example 3: Company C reports turnover associated with an activity which is aligned with the EU Taxonomy because it meets all the criteria prescribed under the taxonomy to make a substantial contribution to multiple objectives – contributing to climate change mitigation based on own performance, and enabling climate change adaptation.

Economic activity	Taxonomy under which information is being reported	Taxonomy alignment	Financial metric(s)	Taxonomy-aligned turnover from this activity in the reporting year (unit currency as selected in C0.4)*	Taxonomy-aligned turnover from this activity as % of total turnover in the reporting year*	Taxonomy-aligned turnover from this activity that substantially contributed to climate change adaptation as a % of total turnover in the reporting year*
1	2	3	4	5	6	8
Afforestation	EU Taxonomy for Sustainable Activities	Taxonomy- aligned	Turnover	80,000	5	4

Type(s) of substantial contribution*

Calculation methodology and supporting information

Technical screening criteria met

Details of technical screening criteria analysis

Do no significant harm requirements met

Details of do no significant harm analysis

Own performance
Activity enabling climate change mitigation

Of the taxonomy-eligible revenue from our activities, we assess the taxonomy-aligned sales from silviculture and logging associated with the category of ‘Afforestation’ under the EU Taxonomy to be 4% of the total net turnover from our activities. Additionally, we assess 1% turnover resulting from the sale of drought-resistant seeds and saplings, given that the afforested land is classified as a drought prone area as per the national remote sensing records.

In our assessment of taxonomy-eligible turnover, we only consider external sale of forestry products and not internal revenue generated by sale of products within the value chain of our enterprise. We have accounted for this latter revenue as part of the total taxonomy non-eligible turnover.

Yes

We have complied with the technical screening criteria by publishing a detailed afforestation plan and a subsequent forest management plan, fully aligned with the national laws on environmental impact assessment (available on our website). We have also published a detailed climate benefit analysis which demonstrates below-baseline GHG emissions since the start of the activity 10 years ago, when compared to a business-as-usual scenario in the absence of the afforestation activity over the same time period. The climate benefit analysis report (attached) also details the benefits to the local farming community during dry months from the sale of drought-prone seeds and saplings. We have also published the latest external audit report conducted by the FSC on our website.

Yes

We comply with the DNSH requirement for pollution prevention and control by implementing and monitoring alternative techniques and approaches to minimize the use of chemical fertilizers and pesticides. We also document records of chemical pesticides to verify our compliance with EU Regulation 2019/1021 and international legal frameworks such as the Rotterdam Convention.

We also comply with the DNSH requirement for protection and restoration of biodiversity and ecosystems. Our forest management plan outlines a plan for enhancing biodiversity in accordance with the national law, including measures to tackle the spread of invasive species. We have also published our EIA report on our website.

We also comply with DNSH requirement for both climate change mitigation and adaptation by meeting the TSC for these objectives.

Minimum safeguards compliance requirements met	Details of minimum safeguards compliance analysis
29	30
Yes	We have 10 afforestation sites across 2 countries. We adhere to the minimum safeguards criteria through a human rights risk assessment based on the UN Guiding Principles on Business and Human Rights. Risk-specific measures identified from the analysis will be implemented by the end of 2023.

(C3.5c) Provide any additional contextual and/or verification/assurance information relevant to your organization’s taxonomy alignment.

Question dependencies

This question only appears if “Yes, we identify alignment with a sustainable finance taxonomy” or “Yes, we identify alignment with both our climate transition plan and a sustainable finance taxonomy” is selected in response to column 1 of C3.5.

Change from last year

New question

Rationale

This question helps CDP data users interpret the information companies provide on the alignment of their spending/revenue with a sustainable finance taxonomy. Assurance and verification provides confidence in the accuracy of data reported.

Ambition: Companies are transparent about their approach to assessing alignment with sustainable finance taxonomies and the alignment is verified/assured by a third party.

This is an open text question with a limit of 5,000 characters.

General

You may use this question to report, for example:
- Information related to the scope of your activities subjected to taxonomy evaluation. You may report information on your activities that do not fall within the scope of taxonomy-eligible activities listed in column 1 of C3.5b.
- Any underlying assumptions made to determine your taxonomy-eligible activities.
- The financial accounting system used to calculate the figures for turnover, CAPEX and, where relevant, OPEX in questions C3.5a and C3.5b.
- A self-assessment of your overall alignment with the sustainable finance taxonomy.
- Any other information you see as relevant to data users. If you are disclosing against the EU Taxonomy for Sustainable Activities, you may report contextual information on the turnover, CAPEX and OPEX KPIs as specified by the Disclosure Delegated Act (Annex I, p20).
You may also use this question to indicate whether any of the information provided in question C3.5a and/or C3.5b has been verified/assured by a third party, and the level of assurance thereof. You should also indicate this in question C10.2a.

Business strategy: Financial services

(C-FS3.6) Does the policy framework for your portfolio activities include climate-related requirements for clients/investees, and/or exclusion policies?

Question dependencies

This question will not appear if you select “No” for all activities in C-FS0.7

Change from last year

Modified question

Rationale

Considering climate-related issues in an organization’s policy framework is an important element of business strategy and a signal of how deeply climate-related issues are embedded in an organization’s processes. For these reasons, data users are interested in understanding whether organizations in the financial sector have integrated climate-related requirements for clients/investees and whether they have implemented any climate-related exclusion policies.

Ambition: Financial services companies include climate-related requirements for clients/investees, and/or exclusion policies, in the policy framework for their portfolio activities.

Connection to other frameworks

NZAM (FS only)

Commitment 7

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Policy framework for portfolio activities that include climate-related requirements for clients/investees, and/or exclusion policies

Explain why the policy framework for your portfolio activities do not include climate-related requirements for clients/investees, and/or exclusion policies*

Select from:

Yes, our policies include climate-related requirements that clients/investees need to meet
Yes, we have exclusion policies for industries and/or activities exposed or contributing to climate-related risks
Yes, our framework includes both policies with climate-related client/investee requirements and climate-related exclusion policies
No, but we plan to include climate-related requirements and/or exclusion policies in our policy framework in the next two years
No, and we do not plan to include climate-related requirements and/or exclusion policies in our policy framework in the next two years

[Text field, 2,500 characters]

Requested content

General

Subsequent questions ask for more details on these policies within the framework.

Policy framework for portfolio activities that include climate-related requirements for clients/investees, and/or exclusion policies (column 1)

Indicate whether you include climate-related issues in the policy framework of your organization and whether this is related to:
- Climate-related requirements for clients/investees, or
- Exclusion policies based on climate-related issues

Explain why the policy framework for your portfolio activities do not include climate-related requirements for clients/investees, and/or exclusion policies (column 2)

This column is only presented if “No, but we plan to include climate-related requirements and/or exclusion policies in our policy framework in the next two years” or “No, and we do not plan to include climate-related requirements and/or exclusion policies in our policy framework in the next two years” is selected in column 1.
Provide a company-specific explanation of why the policy framework for your portfolio activities do not include climate-related requirements for clients/investees, and/or exclusion policies.

Explanation of terms

Policy framework: Policies that set out a set of procedures or goals that guide an organization’s decision-making processes in relation to its financing activities. Examples of such policies could include credit policy, risk policy, investment, underwriting policy, etc.
Exclusion policy: A provision that eliminates bank lending and/or insurance underwriting coverage for certain industries and/or activities based on specific criteria. For investors, it means the exclusion of certain industries/activities from investment portfolios. Exclusion policies may be framed in the context of a financial sector organization’s negative screening processes.

(C-FS3.6a) Provide details of the policies which include climate-related requirements that clients/investees need to meet.

Question dependencies

This question only appears if you select “Yes, our policies include climate-related requirements that clients/investees need to meet” or “Yes, our framework includes both policies with climate-related client/investee requirements and climate-related exclusion policies" in response to C-FS3.6.
Rows in this question will be presented according to the organizational activities reported in C-FS0.7.

Change from last year

Modified question

Rationale

To help manage climate related risks, organizations should integrate climate-related issues into existing policy frameworks. These policies may apply across the organization and may be based on sectors, geographies, business lines, asset classes or other. Although the wave of climate-related policies and regulations is growing, their implementation varies across organizations. This question helps data users understand which corporate policies integrate climate-related issues, and what proportion of a financial services sector company’s portfolio is covered by the policy.

Ambition: Financial services companies include climate-related requirements for clients/investees, and/or exclusion policies, in the policy framework for their portfolio activities.

Connection to other frameworks

NZAM (FS only)

Commitment 7

Commitment 3

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio*

Type of policy*

Portfolio coverage of policy

Policy availability

Attach documents relevant to your policy

Criteria required of clients/investees

Value chain stages of client/investee covered by criteria

Timeframe for compliance with policy criteria

Industry sectors covered by the policy

Exceptions to policy based on*

Explain how criteria required, criteria coverage and/or exceptions have been determined

Select from:

Banking (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Select all that apply:

Banking:

Credit/lending policy
Risk policy
Underwriting policy
Policy related to other products and services
Engagement policy
Pricing policy
Other, please specify

Investing:

Credit policy
Risk policy
Sustainable/Responsible Investment Policy
Investment policy/strategy
Policy related to other products and services
Proxy voting
Engagement policy
Active ownership policy
Pricing policy
Other, please specify

Insurance:

Risk policy
Insurance underwriting policy
Policy related to other products and services
Engagement policy
Pricing policy
Other, please specify

Percentage field [enter a percentage 0-100]

Select from:

Publicly available
Not publicly available

[Attachment functionality]

Select all that apply:

Disclosure of Scope 1 emissions
Disclosure of Scope 2 emissions
Disclosure of Scope 3 emissions
Disclosure of product-related emissions
Set a science-based emissions reduction target
Set an emissions reduction target
Be on track to achieving a science-based emissions reduction target
Develop a climate transition plan
Develop pathways to net-zero by 2050 or sooner
Other, please specify
No criteria required

Select from:

Direct operations only
Direct operations and supply chain

Select from:

Complying with criteria is a pre-requisite for business
Clients/investees must be compliant within the next year
Clients/investees must be compliant within the next 2 years
Clients/investees must be compliant within the next 5 years
No timeframe

Select all that apply:

Energy
Materials
Capital Goods
Commercial & Professional Services
Transportation
Automobiles & Components
Consumer Durables & Apparel
Consumer Services
Retailing
Food & Staples Retailing
Food, Beverage & Tobacco
Household & Personal Products
Health Care Equipment & Services
Pharmaceuticals, Biotechnology & Life Sciences
Software & Services
Technology Hardware & Equipment
Semiconductors & Semiconductor Equipment
Telecommunication Services
Media & Entertainment
Utilities
Real Estate
Other, please specify

Select all that apply:

Geography
Subsidiaries
Industry sector
Line of Business
Products and services
Transaction size
Segment of the value chain
Other, please specify

[Text field, 2,500 characters]

[Add row]

Requested content

General

You should add a row for each portfolio presented in column 1
If you have policies with different specifics in a single portfolio, add a separate row for each type of policy.

Portfolio (column 1)

The options which appear are driven by the activities you selected in C-FS0.7.

Type of policy (column 2)

The options which appear are driven by the row selected in column 1.

Portfolio coverage of policy (column 3)

Specify the coverage of your portfolio based on the portfolio value this policy applies to.
Coverage by portfolio value can be based on either total or outstanding commitments, premiums, committed capital and/or other.

Policy availability (column 4)

Indicate whether the selected policy is available to the general public or not.

Criteria required of clients/investees (column 6)

Select all the criteria which you require from your clients/investees, for example, indicate if you require your clients/investees to set science-based targets.
Criteria can refer to actions that must be taken, requirements that must be fulfilled, or to other possible criteria which clients/investees must fulfil.
Net-Zero Banking Alliance (NZBA) members disclosing on their NZBA commitment on “engaging on corporate and industry (financial and real economy) action, as well as public policies, to help support a net-zero transition of economic sectors in line with science and giving consideration to associated social impacts” should select “Develop pathways to net-zero by 2050 or sooner”.
Select “Other, please specify” to add any criteria not listed.

Value chain stages of client/investee covered by criteria (column 7)

Indicate whether the criteria listed in column 6 is applicable to clients/investees operational activities only, or whether the criteria must also be fulfilled in their supply chain.

Timeframe for compliance with policy criteria (column 8)

If your timeframe for compliance does not match any of the options exactly, select the closest option.

Exceptions to policy based on (column 10)

This column appears if you enter any value lower that 100% in column 3.

Explain how criteria required, criteria coverage and/or exceptions have been determined (column 11)

Explain how you calculated the percentage of portfolio coverage in column 3
Provide details of the exception criteria you selected in column 10 and explain why you chose these specific exceptions, if applicable.
Provide details of the requirements if you are a Net-Zero Banking Alliance (NZBA) member and you selected “Develop pathways to net-zero by 2050 or sooner” in column 6.

Explanation of terms

Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(C-FS3.6b) Provide details of your exclusion policies related to industries and/or activities exposed or contributing to climate-related risks.

Question dependencies

This question only appears if you select “Yes, we have exclusion policies for industries and/or activities exposed or contributing to climate-related risks” or “Yes, our framework includes both policies with climate-related client/investee requirements and climate-related exclusion policies” in response to C-FS3.6.

Change from last year

Minor change

Rationale

Exclusion policies are an element of financial sector companies’ negative screening processes to reduce portfolio exposure to climate-vulnerable projects and/or investments, and to implement climate-related commitments. Data users are interested in understanding the types of climate-related policy exclusions and the impact these exclusions have had or will have on the organizations’ exposure.

Connection to other frameworks

NZAM (FS only)

Commitment 7

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio*

Type of exclusion policy

Year of exclusion implementation

Timeframe for complete phase-out

Application

Country/Area/Region the exclusion policy applies to

Description

Select all that apply:

Banking (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Select all that apply:

All fossil fuels
All Coal
Thermal coal
Fuel from liquified coal
Coal mining
Mountaintop removal mining
Power from coal
All oil & gas
Oil from tar sands
Oil from shale
Gas from shale
Arctic oil and gas
Ultra-deepwater oil and gas
Fracked oil and gas
Liquified natural gas
Other, please specify

Numerical field [enter a number between 1900- 2022]

Select from:

Already phased out
By 2025
By 2030
By 2040
By 2050
Other, please explain

Select all that apply:

New business/investment for new projects
New business/investment for existing projects
Existing business/investment for existing projects
Other, please specify

Select all that apply:

Select all that apply from a drop-down list of countries/areas and regions. Please see the Technical Note "Countries, Area and Regions" for details around the available regions and their constituent countries/areas.
Other, please specify

Text field [maximum 2,500 characters]

[Add row]

Requested content

General

You should add a row for each portfolio presented in column 1.
If you have exclusion policies with different specifics in a single portfolio, add a separate row for each type of exclusion policy.

Portfolio (column 1)

The options which appear are driven by the activities you selected in C-FS0.7.

Timeframe for complete phase-out (column 4)

If you select “Other, please explain” in this column please specify your timeframe for complete phase-out in the format ‘By YYYY’, for example ‘By 2070’.

Application (column 5)

Indicate what type of projects and/or investments the policy applies to, whether it’s for new or existing projects.
- Selecting “New business for new projects” implies that you would decline to participate in a financing, investment or insurance for a new project that was covered by the exclusion, but may still participate in business for a project in which you were already a lender, investor or insurer.
- Selecting “New business for existing projects” implies that you would decline to participate in business for a project covered by the exclusion, even if you were already a lender, investor or insurer.

Description (column 7)

Describe the exclusion threshold (industry classification, company exposure, revenue, production, or other), the asset classes/product types/business division the policy applies to, as well as the impact the policy has had on your exposure to the subject of the policy.
The impact on exposure may be expressed as the change in the proportion of your portfolio exposed to the subject of the policy from the baseline (year of implementation).

Explanation of terms

Exclusion policy: A provision that eliminates bank lending and/or insurance underwriting coverage for a certain type of projects and/or companies based on a specific criterion. For investors, it means the exclusion of certain businesses from investment portfolios. Exclusion policies may be framed in the context of a financial sector company’s negative screening processes.
Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(C-FS3.6c) Why does the policy framework for your portfolio activities not include climate-related requirements for clients/investees, and/or exclusion policies?

Question dependencies

This question only appears if you select anything but “Yes, our framework includes both policies with climate-related client/investee requirements and climate-related exclusion policies” in C-FS3.6.

Change from last year

No change

Rationale

Including climate-related requirements in an organization’s policy framework is an important element of business strategy and a signal of how deeply climate-related issues are embedded in an organization’s processes. For these reasons, data users are interested in understanding the reasons why organizations in the financial sector have not included climate-related requirements for clients/investees into their existing financial activity policy frameworks and why they have not implemented any climate-related exclusion policies.

Response options

This is an open text question with a limit of 5,000 characters.

Please note that when copying from another document into the ORS, formatting is not retained.

Requested content

Your response should be company-specific and include:

Why climate-related requirements are not included in the policy framework of your organization, and;
A description of any plans for such policies in the future.
and/or
Why climate-related exclusion policies are not included in the policy framework of your organization, and:
A description of any plans for such policies in the future

(C-FS3.7) Does your organization include climate-related requirements in your selection process and engagement with external asset managers?

Question dependencies

This question only appears if you selected “Yes” in column 2 for the rows “Investing (Asset Manager)” and/or “Investing (Asset Owner)” in C-FS0.7.

Change from last year

No change

Rationale

For asset owners and managers working with external funds, the external asset managers have a significant impact on investment strategies and objectives. Including climate-related requirements into the selection of and engagement with external asset managers ensures that these investment strategies and objectives are aligned with the organization’s business strategy.

Connection to other frameworks

TCFD

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

NZAM (FS only)

Commitment 7

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Climate-related requirements included in selection process and engagement with external asset managers	Primary reason for not including climate-related requirements in selection process and engagement with external asset managers*	Explain why climate-related requirements are not included in selection process and engagement with external asset managers and your plans for the future*
Select from: Yes No, but we plan to include climate-related requirements in the next two years No, and we do not plan to include climate-related requirements in the next two years Not applicable, because we do not have externally managed assets	Select from: Important but not an immediate priority Judged to be unimportant, explanation provided Lack of internal resources No instruction from management Other, please specify	[Text field, 2,500 characters]

Requested content

Primary reason for not including climate-related requirements in selection process and engagement with external asset managers (column 2)

This column is only presented if any “No…” option is selected in column 1.
You can describe reasons why you do not include climate-related requirements in selection processes and engagement with external asset managers in column 3.

Explain why climate-related requirements are not included in selection process and engagement with external asset managers and your plans for the future (column 3)

This column is only presented if any “No…” option is selected in column 1.
Your response should be company-specific and include why your organization does not consider climate-related requirements when selecting and engaging with asset managers.
Briefly describe any plans you may have to address this in the future.

Explanation of terms

External asset manager: Wealth or investment manager that works independently from the reporting organization in the financial sector.

(C-FS3.7a) Provide details of the climate-related requirements included in your selection process and engagement with external asset managers.

Question dependencies

This question only appears if you selected “Yes” in column 1 in C-FS3.7

Change from last year

No change

Rationale

Connection to other frameworks

TCFD

Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

NZAM (FS only)

Commitment 7

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Coverage	Mechanisms used to include climate-related requirements in external asset manager selection	Describe how you monitor and engage with asset managers to ensure investment activities are consistent with your climate strategy
Select from: All assets managed externally Majority of assets managed externally Minority of assets managed externally	Select all that apply: Include climate-related requirements in investment mandates Include climate-related requirements in performance indicators and incentive structures Include climate-related requirements in requests for proposals Preference for investment managers with an offering of funds resilient to climate change Publish requirements of external investment managers in relation to climate issues Review investment manager’s climate performance (e.g., active ownership, proxy voting records, under-weighting in high impact activities) Review investment manager’s climate-related policies Use of external data on investment managers regarding climate risk management Other, please specify	Text field [maximum 2,500 characters]

[Add row]

Requested content

General

If you do not use the same mechanisms for all your assets managed externally, add a separate row for each mechanism.

Describe how you monitor and engage with asset managers to ensure investment activities are consistent with your climate strategy (column 3)

Give a description of the key actions you take to monitor and engage with asset managers in relation to your climate strategy.
If you selected “Other, please specify” in column 2, give further details of the mechanism and how you use it to include climate-related requirements in the external asset manager selection.

(C-FS3.8) Does your organization include covenants in financing agreements to reflect and enforce your climate-related policies?

Question dependencies

This question only appears if you select “Yes” in column 2 for the row “Banking” in C-FS0.7

Change from last year

No change

Rationale

Banks can influence their clients through requirements within the terms of financing agreements, and with the option of a default being triggered should there be a failure to comply. Data users are interested in whether banks are using this method to promote action on climate-related performance because there are potential benefits for the bank including a perceived improvement in credit profile and access to alternative pools of capital.

Response options

Please complete the following table.

Climate-related covenants in financing agreements	Primary reason for not including climate-related covenants in financing agreements	Explain why your organization does not include climate-related covenants in financing agreements and your plans for the future
Select from: Yes No, but we plan to include climate-related covenants in the next two years No, and we do not plan to include climate-related covenants in the next two years	Select from: Important but not an immediate priority Judged to be unimportant, explanation provided Lack of internal resources No instruction from management Other, please specify	Text field [maximum 2,500 characters]

Requested content

Primary reason for not including climate-related covenants in financing agreements (column 2)

This column is only presented if any “No…” option is selected in column 1.

Explain why your organization does not include climate-related covenants in financing agreements and your plans for the future (column 3)

This column is only presented if any “No…” option is selected in column 1.
Briefly describe the reasons why your financing agreements do not include climate-related covenants.
If you plan to include climate-related covenants in the next two years, highlight the key actions you plan to take.

Explanation of terms

Financing agreements: Legal documents defining the terms and conditions of a financing product or service between your organization, for example as lender, and your client, for example as borrower.

Additional Information

For further information on including climate-related covenants in financing documents, please refer to this article: Sustainable lending: a new shade of green.

(C-FS3.8a) Provide details of the covenants included in your organization’s financing agreements to reflect and enforce your climate-related policies.

Question dependencies

This question only appears if you select “Yes” in C-FS3.8 column 1

Change from last year

Modified question

Rationale

Banks can influence their clients through requirements within the terms of financing agreements, and with the option of a default being triggered should there be a failure to comply. CDP data users are interested in whether banks are using this method to promote action on climate-related performance because there are potential benefits for the bank including a perceived improvement in credit profile and access to alternative pools of capital.

Ambition: Financial services companies use covenants in all financing agreements to enforce climate action.

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Types of covenants used

Asset class/product types

Coverage of covenants

Please explain

Select all that apply:

Purpose or use of proceeds clause refers to sustainable project
Margin or pricing depends on sustainability criteria
Minimum level of green assets mandated
Legal mandate to obtain third party verification
Covenants related to compliance with your policies
Other, please specify

Select all that apply:

Corporate loans
Retail loans
Corporate real estate
Retail mortgages
Trade finance
Asset finance
Project finance
Debt and equity underwriting
Other, please specify

Select from:

All business/investment for all projects
New business/investment for all projects
New business/investment for new projects
Selected clients
Depending on loan size
Depending on loan tenor
Other, please specify

Text field [maximum 2,500 characters]

[Add row]

Requested content

General

If the types of covenants used are not the same for all asset classes and/or product types, add a separate row for each distinction.

Types of covenants used (column 1)

Select the types of covenants you have included within financing agreements.

Coverage of covenants (column 3)

Indicate the coverage of the financing agreements for which you are implementing covenants.
Data users want to understand how frequently Net-Zero Banking Alliance (NZBA) members implement covenants in financing agreements.

Please explain (column 4)

Briefly describe how the covenants and clauses you include in financing documents relate to your climate-related policies, and which policies they enforce.
Outline which types of clients you use covenants with, and why.
Indicate the proportion of financing agreements you are including these types of covenants in, as disclosed in column 3, and whether you consider the proportion to be substantive to your organization.

Explanation of terms

Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
Debt underwriting: Financial services used by companies issuing debt securities such as bonds or syndicated loans. The underwriter commits, for a fee, to purchase the securities from the issuer with a goal of re-selling or syndicating the securities, thereby allowing the issuer to bring their securities to the marketplace.
Equity underwriting: Financial services used by companies issuing equity, most often during an initial public offering. The underwriter commits, for a fee, to purchase shares from the issuer with a goal of re-selling those shares, thereby allowing the issuer to raise equity capital in return for an ownership position.
Financing agreements: Legal documents defining the terms and conditions of a financing product or service between your organization, for example as lender, and your client, for example as borrower.
Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.

C4 Targets and performance

Module Overview

Questions in this module focus on emissions and low-carbon energy targets, additional climate-related targets, net-zero targets, and details on emission reduction initiatives and low-carbon products.

Target setting provides direction and structure to environmental strategy. Providing information on quantitative targets and qualitative goals, and progress made against these targets, can demonstrate your organization’s commitment to improving climate-related issues management at a corporate level. This information is relevant to investors’ understanding of how your company is addressing and monitoring progress regarding the risks and opportunities disclosed.

Questions on emission reduction initiatives allow CDP data users to understand the organization’s commitment to reducing emissions beyond business-as-usual scenario.

Questions on low-carbon products provide valuable information to investors who are seeking to increase their investment in companies providing low-carbon and climate resilient goods and services.

Note for agricultural sectors:

The ‘Land management practices’ section includes questions around both adaptation and mitigation mechanisms adopted by companies to address climate change. This information demonstrates that organizations are committed to using practices that help reducing emissions and improve their resilience. Organizations can report up to 20 practices adopted on their land. Those practices that have brought or are expected to bring the largest benefits should be prioritized.

Key changes

Modified questions:
- C4.1a – new columns requesting a breakdown of target coverage by scope 3 category, and whether the target includes land-related or bioenergy emissions.
- C4.1b – new columns requesting a breakdown of target coverage by scope 3 category, and whether the target includes land-related or bioenergy emissions.
- [Financial Services Only] C-FS4.1d – new columns added on portfolio coverage metrics and frequency of target reviews.

Modified guidance:
- C4.2a – clarification that in the “Please explain…” column, companies should state whether their target covers all electricity consumption or only purchased electricity.
- C-CO4.2d and C-CO4.2d – guidance updated to request that companies reporting a separate methane reduction target in C4.1a/b provide details of the target in C-CO4.2d/C-OG4.2d.
- C4.3b – has additional guidance that companies reporting biofuels or biogas initiatives should indicate if they are using bioenergy with carbon capture and storage (BECCS).
- C-CO4.8 and C-OG4.8 – guidance updated to request that where flaring is not relevant to a company’s operations, they include examples and timelines in their explanation of why it is not relevant.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on targets, initiatives, and best available techniques for the following high-impact sectors:

Agricultural commodities
Cement
Coal
Electric utilities
Food, beverage & tobacco
Oil & gas
Paper and forestry
Steel

Pathway diagram - questions

This diagram shows the general questions contained in module C4. To access question-level guidance, use the menu on the left to navigate to the question.

(C4.1) Did you have an emissions target that was active in the reporting year?

Change from last year

No change

Rationale

Target setting provides direction and structure to environmental strategy. CDP data users want to understand companies' commitments to reducing emissions and whether the organization has a goal towards which they are harmonizing and focusing emissions-related efforts.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

TCFD

Metrics & Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

NZAM (FS Only)

Commitment 1

Response options

Select all that apply:

Absolute target
Intensity target
Portfolio target [FS only]
No target

Requested content

General

Targets that are based on a future “business as usual” year are not equivalent to emissions reduction targets and therefore should not be reported here. Acceptable targets must determine emissions reductions through comparison to a set base year in the past, not to a projected “business as usual” emissions figure in the future.
You have an “active target” if the target ends in or after the reporting year and the target is to reduce absolute emissions or emissions intensity.

- Absolute target: an absolute target describes a reduction in actual emissions in a future year when compared to a base year. The target can relate to your Scope 1, Scope 2 and/or Scope 3 emissions in full or in part.
- Intensity target: an intensity target describes a future reduction in emissions that have been normalized to a business metric when compared to the same normalized business metric emissions in a base year. The target can relate to your Scope 1, Scope 2 and/or Scope 3 emissions in full or in part.
- [Financial Services only] Portfolio target: a portfolio target describes a reduction of the impact of your lending, investment and/or insurance underwriting portfolios (e.g. portfolio emissions) on the climate.

Note for oil and gas sector companies:

Investors request that companies disclose both company-wide targets and targets at the divisional level.

Note for electric utility sector companies:

Investors request that companies disclose company-wide targets and, where applicable, at divisional level, and that intensity targets are also expressed as absolute targets where possible.

Note for transport OEMs sector companies:

In addition to any absolute targets, companies should disclose company-wide CO₂ and/or fuel economy targets for products and, where relevant, for specific markets. Targets should be expressed in grams of CO₂ per kilometer.

Note for financial services sector companies:

Consider any target types related to your lending, investment and insurance portfolios, in addition to targets related to Scope 1, Scope 2 and other Scope 3 emissions.

Note for capital goods sector companies:

Companies should consider reporting company-wide and/or product-level Scope 3 targets, and in particular, Scope 3 targets relating to the use of sold products.

Additional information

Examples of emissions reduction targets

The following are examples of absolute targets:

Metric tons CO₂e or % reduction from base year
Metric tons CO₂e or % reduction in product use phase relative to base year
Metric tons CO₂e or % reduction in supply chain relative to base year
Metric tons CO₂e or % reduction per year
Metric tons CO₂e or % reduction relative to 5 year rolling average of emissions
Cap on emissions in metric CO₂e

The following are examples of intensity targets:

Metric tons CO₂e or % reduction per unit revenue (also per unit turnover; per unit gross sales) relative to base year
Metric tons CO₂e or % reduction per full-time employee equivalent (also per hours worked; per operating hour; per guest night; per capita; per patient days) relative to base year
Metric tons CO₂e or % reduction per unit of product (e.g. metric ton of paper; metric ton of aluminum) relative to base year
Metric tons CO₂e or % reduction per passenger kilometer (also per km; per nautical mile) relative to base year
Metric tons CO₂e or % reduction per square foot relative to base year
Cap on emissions relative to an activity (e.g. stabilizing emissions at x metric tons CO₂e per metric to of steel produced)
Metric tons CO₂e or % reduction per MWh
Metric tons CO₂e or % reduction in emissions from business flights per employee

(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.

Question dependencies

This question only appears if you select “Absolute target” in response to C4.1.

Change from last year

Modified question

Rationale

The question is aimed at encouraging best practice in target setting, such as the use of science-based targets where available.

Ambition: Companies make progress against emissions targets that reflect their full emissions inventory, and are line with SBTi criteria.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Metrics & Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.

S&P Global Corporate Sustainability Assessment

Climate-Related Targets

TCFD Disclosure

NZAM (FS only)

Commitment 1

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.

Target reference number

Is this a science-based target?

Target ambition*

Year target was set

Target coverage

Scope(s)

Scope 2 accounting method

Abs1-Abs100

Select from drop-down options below

Select from:

1.5°C aligned
Well-below 2°C aligned
2°C aligned
Other, please specify

Numerical field [enter a number between 1900- 2023]

Select from:

Company-wide
Business division
Business activity
Site/facility
Country/area/region
Product-level
Other, please specify

Select all that apply:

Scope 1
Scope 2
Scope 3

Select from:

Location-based
Market-based

Scope 3 category(ies)	Base year	Base year Scope 1 emissions covered by target (metric tons CO₂e)	Base year Scope 2 emissions covered by target (metric tons CO₂e)	Base year Scope 3, Category […] emissions covered by target (metric tons CO₂e)* [One column for each Scope 3 category]	Base year total Scope 3 emissions covered by target (metric tons CO₂e)	Total base year emissions covered by target in all selected Scopes (metric tons CO₂e)
8	9	10	11	12-28	29	30
Select all that apply: Category 1: Purchased goods and services Category 2: Capital goods Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2) Category 4: Upstream transportation and distribution Category 5: Waste generated in operations Category 6: Business travel Category 7: Employee commuting Category 8: Upstream leased assets Category 9: Downstream transportation and distribution Category 10: Processing of sold products Category 11: Use of sold products Category 12: End-of-life treatment of sold products Category 13: Downstream leased assets Category 14: Franchises Category 15: Investments [does not appear to FS] Other (upstream) Other (downstream)	Numerical field [enter a number between 1900- 2023]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]

Base year Scope 1 emissions covered by target as % of total base year emissions in Scope 1	Base year Scope 2 emissions covered by target as % of total base year emissions in Scope 2	Base year Scope 3, Category […] emissions covered by target as % of total base year emissions in Scope 3, Category […] (metric tons CO ₂e)* [One column for each Scope 3 category]	Base year Scope 3 emissions covered by target as % of total base year emissions in Scope 3 (in all Scope 3 categories)	Base year emissions covered by target in all selected Scopes as % of total base year emissions in all selected Scopes
31	32	33-49	50	51
Percentage field [enter a percentage from 0-100 using a maximum of 3 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 3 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 3 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 3 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 3 decimal places]

Target year	Targeted reduction from base year (%)	Total emissions in target year covered by target in all selected Scopes (metric tons CO₂e) [auto-calculated]	Scope 1 emissions in reporting year covered by target (metric tons CO₂e)	Scope 2 emissions in reporting year covered by target (metric tons CO₂e)	Scope 3, Category […] emissions in reporting year covered by target (metric tons CO₂e) [One column for each Scope 3 category]	Total Scope 3 emissions in reporting year covered by target (metric tons CO₂e)
52	53	54	55	56	57-73	74
Numerical field [enter a whole number between 2018- 2100]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [0-999,999,999,999]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]

Total emissions in reporting year covered by target in all selected scopes (metric tons CO₂e)	Does this target cover any land-related emissions?	% of target achieved relative to base year [auto-calculated]	Target status in reporting year	Please explain target coverage and identify any exclusions	Plan for achieving target, and progress made to the end of the reporting year	List the emissions reduction initiatives which contributed most to achieving this target
75	76	77	78	79	80	81
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Select from: Yes, it covers land-related emissions only (e.g. FLAG SBT) Yes, it covers land-related and non-land related emissions (e.g. SBT approved before the release of FLAG target-setting guidance) Yes, it covers land-related CO₂ emissions/removals associated with bioenergy and non-land related emissions (e.g. non-FLAG SBT with bioenergy) No, it does not cover any land-related emissions (e.g. non-FLAG SBT)	Percentage field	Select from: New Underway Achieved Expired Revised Replaced Retired	Text field [maximum 5,000 characters]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add Row]

*This column only appears if you select one of the “Yes…” options in column “Is this a science-based target?”

Is this a science-based target? (column 2) drop-down options:

Select one of the following options:

Yes, and this target has been approved by the Science Based Targets initiative
Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years
Yes, we consider this a science-based target, but we have not committed to seek validation of this target by the Science Based Targets initiative within the next two years
No, but we are reporting another target that is science-based
No, but we anticipate setting one in the next two years
No, and we do not anticipate setting one in the next two years

Requested content

General

Note that CDP is requesting data on gross emissions targets. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions, and/or reductions attributable to the sequestration or transfer of GHGs (except in a specific case of bioenergy use for science-based targets and SBTi-approved FLAG targets, which include both emissions and removals from land – see “Additional information” for more details).
If you have a target that will be met in part by offsetting (including carbon neutrality targets), or CO₂ removals except for the bioenergy and SBTi-approved FLAG target cases specified in “Additional information”, only the proportion of the target that relates to emissions reductions (and not offset purchases or CO₂ removals) should be reported here. If you are uncertain of the proportion that will be achieved through emissions reductions, make an estimation based on the initiatives that you have in place or planned. Targets to reduce emissions in the product use phase or to reduce emissions from the supply chain should be captured as scope 3 targets.
If the details of your target differ between the scopes (e.g. if the temperature alignment of your scope 1+2 target is consistent with a 1.5°C-aligned pathway and the temperature alignment of your scope 3 target is consistent with a well-below 2°C-aligned pathway), report separate rows for the scope(s) for which the target differs.
If you intend to report a net-zero target in C4.2c, you should report both the near-term and long-term emissions reduction target(s) associated with your net-zero target either in this question or in C4.1b, and link them to your net zero target in column 3 of C4.2c. Please refer to the SBTi Net-Zero Standard for information on science-based net-zero targets.

Target reference number (column 1)

Select a unique target reference from the drop-down menu provided to identify the target in subsequent questions and to track progress against the target in subsequent reporting years.
If you reported a target to CDP last year and will be reporting progress against the same target this year, ensure you use the same target reference number as last year. For any new targets you are adding, always use a new reference number that you have not used previously.

Is this a science-based target? (column 2)

A brief description of science-based targets and why CDP is asking companies to set them is provided as additional information to this question.
In addition, refer to the CDP Technical Note on Science-Based Targets for what qualifies as a science-based target and how to assess your target against the Science Based Targets initiative’s criteria.
Companies with activities in the oil and gas sector for which there is no available sector methodology to determine whether a target is science-based should select the most appropriate ‘No…” option in this column. For more information on sector-specific requirements, see pages 14-21 of the SBTi Criteria.
Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practice in science-based target setting. Select this option only if the target has been approved by the SBTi.
Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a target and has self-assessed it to be science-based, it has been submitted to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your target to be science-based.
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years – Not all companies have had their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not yet submitted it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your target to be science-based. If you are currently in the process of revising your target to meet SBTi criteria, indicate this by selecting “No, but we anticipate setting one in the next two years.
Yes, we consider this a science-based target, but we have not committed to seek validation of this target by the Science Based Targets initiative within the next two years – Not all companies intend to have their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not committed to submit it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your target to be science-based. If you are a supplier to a company with a supplier engagement target, as part of which you have set a target in line with SBTi resources but are not planning to seek SBTi approval, select this option.
No, but we are reporting another target that is science-based – Another target (absolute or intensity) disclosed is science-based, either in another row in this table, or in C4.1b.
No, but we anticipate setting one in the next two years – While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
No, and we do not anticipate setting one in the next two years – No science-based targets have been set and there are no plans in place to set one in the next two years.

Target ambition (column 3)

This column only appears if you select any “Yes” option in column 2 “Is this a science-based target?”.
Select the level of ambition of your science-based target. Note that as of July 2022, the SBTi requires Scope 1 and 2 targets to be consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures, and Scope 3 targets to be consistent with the level of decarbonization required to keep global temperature increase to well-below 2°C compared to pre-industrial temperatures.
If your target is aligned with below 1.5°C compared to pre-industrial temperature temperatures, select “1.5°C aligned”.

Year target was set (column 4)

Enter the year in which your company set the target.
This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
If the target is science-based and has been submitted to the SBTi for validation or has been approved by the SBTi (as indicated by your response to column 2), enter the year in which your organization submitted the target for validation by the SBTi.
If you have a year-on-year rolling target, enter the year in which your company first set the target. This can be before the base year.
If you set the target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.

Target coverage (column 5)

If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
It is considered best practice to report one overarching target covering total company-wide Scope 1 and 2 emissions. Sub-targets may also be reported in additional rows.
If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column. E.g. if your target applies only to your European operations, select “Country/area/region” in this column and specify the country/area/region in the “Please explain target coverage and identify any exclusions” column.

Scope(s) (column 6)

This refers to the Scope(s) of emissions to which the target relates. Note that the target does not have to comprise all emissions within a particular Scope.

Scope 2 accounting method (column 7)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
Indicate whether the target relates to your location-based or market-based Scope 2 emissions.

Scope 3 category(ies) (column 8)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
Select the Scope 3 emissions category(ies) that relate to this target.
For each Scope 3 category selected in this column, a corresponding column will appear for you to provide the category’s emissions in the base year (columns 12-28), % of total base year emissions covered (columns 33-49) and emissions in the reporting year (columns 57-73).
The categories of Scope 3 emissions have been taken from the Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Refer to the Standard for additional information on the sources that each category comprises and how to calculate these emissions. If you are specifying a Scope 3 source under “Other, please specify” please make it clear whether it is an upstream or downstream source.

Base year (column 9)

The base year is the year against which you are comparing your emissions reduction target.
The base year cannot be after the reporting year
If you have a year-on-year rolling target, the base year will be the previous reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.

Base year Scope 1 emissions covered by target (metric tons CO₂e) (column 10)

This column only appears if you select “Scope 1” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
E.g. if your target is to reduce Scope 1+2 emissions arising from your European operations, enter the base year Scope 1 emissions for your European operations in this column.

Base year Scope 2 emissions covered by target (metric tons CO₂e) (column 11)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 2 proportion only.
E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 2 company-wide base year emissions in this column.

Base year Scope 3, Category […] emissions covered by target (metric tons CO₂e) (column 12-28)

A column will appear for each Scope 3 category selected in column 8.

Base year total Scope 3 emissions covered by target (metric tons CO₂e) (column 29)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
This figure should be the total Scope 3 base year emissions covered by the target for the Scope 3 category(ies) selected in column 8. It should equal the sum of the base year emissions you have entered for each Scope 3 category.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 3 proportion only.
E.g. if your target relates to Scope 1+2+3 emissions of a particular business activity (e.g. office-based operations, etc.), enter the base year Scope 3 emissions relating to that business activity for the Scope 3 category(ies) selected in column 8 in this column.

Total base year emissions covered by target in all selected Scopes (metric tons CO₂e) (column 30)

This figure should be the total base year emissions covered by the target in all Scopes selected in column 6.
E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 1+2+3 company-wide base year emissions in this column.
If the target relates to a single Scope, this figure will be the same as the figure reported in either column 10, column 11, or column 29.
If the target encompasses multiple Scopes, this figure will be equal to the sum of the figures reported in columns 10, 11 and/or 29.

Base year Scope 1 emissions covered by target as % of total base year emissions in Scope 1 (column 31)

This column only appears if you select “Scope 1” in column 6 “Scope(s)”.
Enter the base year Scope 1 emissions covered by the target (reported in column 10) as a percentage of your total company-wide base year emissions in Scope 1.
If the target encompasses multiple Scopes, this percentage should be based upon the Scope 1 proportion only.
E.g. if your target is to reduce Scope 1+2 emissions arising from your European operations, and the Scope 1 emissions from your European operations accounted for 80% of your total, company-wide Scope 1 emissions in the base year, then you should enter 80 into this column.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 1.

Base year Scope 2 emissions covered by target as % of total base year emissions in Scope 2 (column 32)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
Enter the base year Scope 2 emissions covered by the target (reported in column 11) as a percentage of your total company-wide base year emissions in Scope 2.
If the target encompasses multiple Scopes, this percentage should be based upon the Scope 2 proportion only.
E.g. if your target relates to Scope 1+2+3 emissions of a particular business activity (e.g. office-based operations, etc.), and the Scope 2 emissions from that business activity accounted for 20% your total, company-wide Scope 2 emissions in the base year, then you should enter 20 into this column.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 2.

Base year Scope 3, Category […] covered by target as % of total base year emissions in Scope 3, Category […] (metric tons CO₂e) (column 33-49)

A column will appear for each Scope 3 category selected in column 8.
Enter the base year Scope 3 category emissions covered by the target (reported in columns 12-18) as a percentage of your total company-wide base year emissions in that Scope 3 category.
E.g. if your target covers the Scope 3 Category 1 emissions of one region which accounts for 50% of your total base year Scope 3 emissions in Category 1, enter “50”.

Base year total Scope 3 emissions covered by target as % of total base year emissions in Scope 3 (in all Scope 3 categories) (column 50)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
Enter the base year Scope 3 emissions covered by the target (reported in column 29) as a percentage of your total company-wide base year emissions for all Scope 3 categories calculated in the base year.
E.g. If you have selected only one Scope 3 category in column 8 (e.g. “Business travel”), you should enter the base year emissions in that category covered by the target as a percentage of your total base year Scope 3 emissions as a whole.
If the target encompasses multiple Scopes, this percentage should be based upon the Scope 3 proportion only.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 3.

Base year emissions covered by target in all selected Scopes as % of total base year emissions in all selected Scopes (column 51)

Enter the total base year emissions covered by the target (reported in column 30) as a percentage of your total company-wide base year emissions in all Scopes selected in column 6.
If the target encompasses multiple Scopes, note that you should not sum the percentages reported in columns 31, 32 and/or 50.
E.g. if your target relates to Scope 1+2+3 emissions for your UK operations, and the Scope 1+2+3 emissions from your UK operations accounted for 10% your total, company-wide Scope 1+2+3 emissions in the base year, then you should enter 10 into this column.
If the target relates to a single Scope, this figure will be the same as the figure reported in either column 31, column 32, or column 50.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for all Scopes selected in column 6.

Target year (column 52)

Enter the year that the target ends. For example, if the target is to reduce emissions by 50% by 2030, the target year is 2030.
If you have a year-on-year rolling target, the target year will be the reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
You should not report any target that was achieved before the start of the reporting year.

Targeted reduction from base year (%) (column 53)

Enter your targeted emissions reduction as a percentage reduction in emissions in all Scopes relevant to the target to be achieved in the target year, when compared to the base year.
E.g. if your target is to reduce your Scope 1+2 emissions by 3000 metric tons CO2e and your base year Scope 1+2 emissions were 150,000 metric tons CO2e, you should enter 2 into this column (i.e. (3000/150000)=0.02; then multiply by 100 for percentage value).
If your target is to stabilize emissions at the base year level, you should enter 0 in this column.
Note that this column is intended to describe the targeted percentage reduction from the base year that is to be achieved in the target year, and not the percentage reduction from the base year observed in the reporting year.

Total emissions in target year covered by target in all selected Scopes (metric tons CO₂e) [auto-calculated] (column 54)

This column will be auto-calculated in the ORS.
The total emissions in your target year covered by the target will be calculated from the “Total base year emissions covered by target in all selected Scopes” (column 30) and the “Targeted reduction from base year” (column 53) columns. Ensure that you have entered data into these columns.
E.g. if your base year emissions were 150,000 metric tons CO₂e, and your targeted reduction is 2%, this column will display 147,000.

Scope 1 emissions in reporting year covered by target (metric tons CO₂e) (column 55)

This column only appears if you select “Scope 1” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
E.g. if your target is to reduce Scope 1+2 emissions arising from your European operations, enter the Scope 1 emissions in the reporting year for your European operations in this column.

Scope 2 emissions in reporting year covered by target (metric tons CO₂e) (column 56)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 2 proportion only.
E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 2 company-wide emissions in the reporting year in this column.

Scope 3, Category […] emissions in reporting year covered by target (metric tons CO₂e) (columns 57-73)

A column will appear for each Scope 3 category selected in column 8.
Note that emissions for all Scope 3 categories covered by a target should be reported every year.

Total Scope 3 emissions in reporting year covered by target (metric tons CO₂e) (column 74)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
This figure should be the total Scope 3 emissions in the reporting year covered by the target for the Scope 3 category(ies) selected in column 8. It should equal the sum of emissions in the reporting year you have entered for each Scope 3 category.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 3 proportion only.
E.g. if your target relates to Scope 1+2+3 emissions of a particular business activity (e.g. office-based operations, etc.), enter the Scope 3 emissions in the reporting year relating to that business activity for the Scope 3 category(ies) selected in column 8 in this column.

Total emissions in reporting year covered by target in all selected Scopes (metric tons CO₂e) (column 75)

This figure should be the total emissions in the reporting year covered by the target in all Scopes selected in column 6.
E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 1+2+3 company-wide emissions in the reporting year in this column.
If the target relates to a single Scope, this figure will be the same as the figure reported in either column 55, column 56, or column 74.
If the target encompasses multiple Scopes, this figure will be equal to the sum of the figures reported in columns 55, 56 and/or 74.

Does this target cover any land-related emissions? (column 76)

A brief description of land-related emissions (i.e., GHG emissions from Agriculture, Forestry and Other Land Use (AFOLU)) is provided as additional information to this question.
In addition, refer to the CDP Technical Note on Science-Based Targets for further detail and how to assess your target against the Science Based Targets initiative’s criteria.
Yes, it covers land-related emissions only (e.g. FLAG SBT) – Select this option if your target only covers GHG emissions related to land and agriculture and excludes emissions and removals associated with bioenergy, in line with SBTi guidance. Companies that have followed the SBTi Forests, Land and Agriculture (FLAG) guidance to set their target should select this option. This option will primarily be applicable to companies in the Agricultural Commodities, Food, Beverage & Tobacco, and Paper & Forestry CDP sectors.
Yes, it covers land-related and non-land related emissions (e.g. SBT approved before the release of FLAG target-setting guidance) – Select this option if your target covers both GHG emissions related to land and agriculture and non-land related emissions from energy/industry. This option will be primarily applicable to companies in the Agricultural Commodities, Food, Beverage & Tobacco and Paper and Forestry CDP sectors whose target was approved by the SBTi before the release of the SBTi FLAG target-setting guidance.
Yes, it covers land-related CO₂ emissions/removals associated with bioenergy and non-land related emissions (e.g. non-FLAG SBT with bioenergy) – Select this option if your target covers CO₂ emissions from the combustion, processing and distribution phase of bioenergy and/or land use emissions and removals associated with bioenergy feedstocks, in addition to non-land related emissions from energy/industry. This option could apply to companies in any CDP sector with a target that includes emissions from bioenergy.
No, it does not cover any land-related emissions (e.g. non-FLAG SBT) – Select this option if your target only covers non-land related emissions from energy/industry.
If you select any “Yes…” option, specify the types of land-related emissions covered by the target in the “Please explain target coverage and identify any exclusions” column.

% of target achieved relative to base year [auto-calculated] (column 77)

This column will be auto-calculated in the ORS.
The target’s percentage completion (in terms of emissions) relative to the base year will be calculated from the “Total base year emissions covered by target in all selected Scopes” (column 30), “Targeted reduction from base year” (column 53) and the “Total emissions in reporting year covered by target in all selected Scopes” (column 75) columns. Ensure that you have entered data into these columns.
E.g. if your target is to reduce your Scope 1 emissions by 10% and in the reporting year your Scope 1 emissions had reduced by 3% compared to the base year, this column will display 30 as your target is 30% complete.
Negative values indicate an increase in emissions relative to the base year.
Values greater than 100 indicate that you have exceeded your target.
This column will not appear if you set a target to stabilize your greenhouse gas emissions at the base year level, i.e. if you have entered 0 (zero) in column “Targeted reduction from base year (%)” (column 53).

Target status in reporting year (column 78)

New – Select this option for targets that have been set in the reporting year and are still in progress.
Underway – Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
Achieved – Select this option for targets that have been achieved or exceeded in the reporting year.
Expired – Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
Revised – Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 76 in the reporting year, for example due to a recalculation of the base year emissions or a change to the target year.
Replaced – Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
Retired – Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain target coverage and identify any exclusions” column.

Please explain target coverage and identify any exclusions (column 79)

If the target is not company-wide (i.e. it does not apply to the whole company in line with your definition of the reporting boundary), provide further details of your target coverage in this column. E.g. if you have selected “Country/area/region” in column 5, please specify which countries/areas/regions your target covers.
If you have excluded any relevant Scopes or Scope 3 categories from your target, state the reason for omitting these Scopes or Scope 3 categories and outline any steps you are taking to enable target-setting for relevant Scopes or Scope 3 categories.
If you selected any “Yes…” option in column 76, specify the types of land-related emissions that are covered by the target from those listed below. Refer to the additional information and the SBTi FLAG Guidance for more information.
- Direct land use change emissions – All direct emissions from land use change, including those associated with livestock feed and conversion of natural forests to plantation. Includes CO₂ emissions from land use change associated with deforestation and forest degradation, including conversion of natural forest to plantation following GHG Protocol definitions, and CO₂ emissions from land use change associated with conversion of coastal wetlands (mangroves, seagrass and marshes); conversion, draining and/or burning of peatlands; and conversion of savannas and natural grasslands.
- Indirect land use change emissions – Carbon stock loss due to land conversion on lands not owned or controlled by the company or in its supply chain, induced by change in demand for products produced or sourced by the company.
- Land management emissions – All emissions from land management; CO₂emissions related to on-farm vehicles and fertilizer production are also included, as they are commonly embedded in accounting tools and emission factors associated with land management. Includes methane emissions from manure management, enteric fermentation, and flooded soil (for lowland rice); direct and indirect N₂O emissions from manure management, crop residue, fertilizer application and fertilizer leaching, runoff and volatilization; methane and N₂O emissions from agricultural waste burning; CO₂emissions from machinery used on farm and transport of biomass; and CO₂ and N₂O emissions from fertilizer production.
- Biological carbon removals and storage not associated with bioenergy feedstocks – Carbon sequestration from improved forest management, agroforestry, forest restoration, silvopasture, soil organic carbon and biochar, excluding removals from the production and end use of bioenergy.
- Biogenic emissions and associated removals from bioenergy feedstocks – CO₂, CH₄ and N₂O emissions from the combustion, processing and distribution phase of bioenergy and the land use emissions and removals associated with bioenergy feedstocks.
You can use this column to identify where you have a financial year or average year based target.
If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.

Plan for achieving target, and progress made to the end of the reporting year (column 80)

This column only appears if you select “Underway”, “Revised”, or “New” in column 78 “Target status in reporting year”.
Describe how you plan to achieve the target, including any emissions reduction initiatives your organization plans to implement.
List the emissions reduction initiatives which have contributed most to any progress towards the target to the end of the reporting year.
If you are not on track to achieve the target, explain how you plan to get back on track.
If possible, specify your anticipated and/or observed progress curve in this column, i.e.:
- Linear – the rate of progress towards the target is anticipated and/or observed to be steady over time
- Logarithmic – the rate of progress towards the target is anticipated and/or observed to be faster at the start
- Exponential – the rate of progress towards the target is anticipated and/or observed to be faster at the end
- Variable – the rate of progress towards the target is anticipated and/or observed to change from year to year

List the emissions reduction initiatives which contributed most to achieving this target (column 81)

This column only appears if you select “Achieved” in column 78 “Target status in reporting year”.
List the initiatives which contributed most to the emissions reductions achieved over the lifetime of the target.

Example response

Worked example of absolute target table

The following table shows two absolute target examples:

A target to reduce covered Scope 1 and 2 emissions by 80% in 2026 compared with the base year (ID=Abs1);
A target to reduce covered Scope 3 emissions by 75% in 2027 compared with the base year (ID=Abs2);

Target reference number	Is this a science-based target?	Target ambition*	Year target was set	Target coverage	Scope(s)	Scope 2 accounting method
Abs 1	Yes, and this target has been approved by the Science -Based Targets initiative	1.5°C aligned	2019	Company-wide	Scope 1 Scope 2	Market-based
Abs 2	Yes, and this target has been approved by the Science -Based Targets initiative	1.5°C aligned	2019	Company-wide	Scope 3	N/A

Scope 3 category(ies)	Base year	Base year Scope 1 emissions covered by target (metric tons CO₂e)	Base year Scope 2 emissions covered by target (metric tons CO₂e)	Base year Scope 3, Category 1: Purchased goods and services emissions covered by target (metric tons CO₂e)	Base year Scope 3, Category 6: Business travel emissions covered by target (metric tons CO₂e)	Base year Scope 3, Category 7: Employee commuting emissions covered by target (metric tons CO₂e)
N/A	2018	830000	450000	N/A	N/A	N/A
Category 1: Purchased goods and services Category 6: Business travel Category 7: Employee commuting	2017	N/A	N/A	700000	100000	75000

Base year total Scope 3 emissions covered by target (metric tons CO₂e)	Total base year emissions covered by target in all selected Scopes (metric tons CO₂e)	Base year Scope 1 emissions covered by target as % of total base year emissions in Scope 1	Base year Scope 2 emissions covered by target as % of total base year emissions in Scope 2	Base year Scope 3, Category 1: Purchased goods and services emissions covered by target as % of total base year emissions in Scope 3, Category 1 (metric tons CO₂e)	Base year Scope 3, Category 6: Business travel emissions covered by target as % of total base year emissions in Scope 3, Category 1 (metric tons CO₂e)	Base year Scope 3, Category 7: Employee commuting emissions covered by target as % of total base year emissions in Scope 3, Category 1 (metric tons CO₂e)
N/A	1280000	95	95	N/A	N/A	N/A
875000	875000	N/A	N/A	95%	100%	100%

Base year Scope total 3 emissions covered by target as % of total base year emissions in Scope 3 (in all Scope 3 categories)	Base year emissions covered by target in all selected Scopes as % of total base year emissions in all selected Scopes	Target year	Targeted reduction from base year (%)	Total emissions in target year covered by target in all selected Scopes (metric tons CO₂e) [auto-calculated]	Scope 1 emissions in reporting year covered by target (metric tons CO₂e)	Scope 2 emissions in reporting year covered by target (metric tons CO₂e)
N/A	95	2026	80	256000	332000	180000
70	70	2027	75	218750	N/A	N/A

Scope 3, Category 1: Purchased goods and services emissions in reporting year covered by target (metric tons CO₂e)	Scope 3, Category 6: Business travel emissions in reporting year covered by target (metric tons CO₂e)	Scope 3, Category 7: Employee commuting emissions in reporting year covered by target (metric tons CO₂e)	Total Scope 3 emissions in reporting year covered by target (metric tons CO₂e)	Total emissions in reporting year covered by target in all selected scopes (metric tons CO₂e)	Does this target cover any land-related CO2 emissions?	% of target achieved relative to base year [auto-calculated]
N/A	N/A	N/A	N/A	512000	No, it does not cover any land-related emissions (SBT)	75
525000	75000	56250	656250	656250	No, it does not cover any land-related emissions (SBT)	33

Target status in reporting year	Please explain target coverage and identify any exclusions	Plan for achieving target, and progress made to the end of the reporting year	List the emissions reduction initiatives which contributed most to achieving this target
Underway	This target is company-wide and covers 95% of both our Scope 1 and 2 emissions, with some small exclusion due to poor data availability from some of our smaller sites and leased spaces in Southeast Asia. We have not included any land-related emissions within the target boundary.	By the reporting year we have achieved most of our target. To achieve further reductions we plan to keep improving our operational and logistics efficiency alongside electrification of our domestic vehicle fleet to achieve deep cuts to emissions. Alongside this we will continue to increase our sourcing of zero-carbon electricity. The progress curve is likely to be variable.	N/A
Underway	This company-wide target covers 70% of all our Scope 3 emissions, focusing on the largest categories most relevant to our business activities (Employee commuting, Business travel) while exclusing several minor categories which we aim to reduce through separate measures.	We are changing our procurement processes to include environmental criteria and therefore incentivize the purchase of lower-emissions products, reducing emissions. We are also pursuing remote working opportunities where possible for our administrative staff. We are also minimizing business travel where possible. Our biggest measure in this category is to encourage and support our employees to switch to low-carbon modes of transport. We have implemented a program which helps employees purchase season tickets for public transport and are trialing leasing electric vehicles for some employees.	N/A

Additional information

Science-based targets

Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and pursue efforts to limit warming to under 1.5°C. However, there is a large gap between the level of ambition of the country/area commitments and targeted temperatures. Companies, which are responsible for a vast majority of the world’s emissions, must play a critical role in filling the gap left by country/area commitments by raising the level of ambition in their target setting and reducing their emissions in line with climate science.
Science-based target setting methods enable companies to set emissions targets that are consistent with conserving the remaining global emissions budget. A number of factors are taken into consideration in order to determine what is most appropriate for a given company. Please see the Technical Note on Science Based Targets and the 2023 climate change scoring methodology for information on best practices in target setting and what CDP considers a science-based target.
Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practices in science-based target setting. Due to the waiting list for target validation, companies are encouraged to book a validation slot and submit their targets to the SBTi as early as possible in order for these targets to be used for scoring in CDP’s 2023 climate change questionnaire.
Regardless of submission to SBTi, companies are expected to report emissions reductions targets in their CDP response. Targets that did not pass the SBTi’s review process or that have not been submitted for review prior to the deadline will still be evaluated using the information disclosed by each company in their CDP response. See the Technical Note for more details.

Science-based targets — land-based emissions and removals accounting

As per the GHG Protocol Corporate Standard, GHG Protocol Corporate Value Chain (Scope 3) Standard and GHG Protocol Scope 2 Guidance, biogenic CO₂ emissions and removals shall be reported alongside a company’s GHG inventory, separately from the Scopes. However, SBTi criterion 10 requires CO₂ emissions from the combustion, processing and distribution of bioenergy and the land use emissions and removals associated with bioenergy feedstocks to be included in the target boundary when setting a science-based target (in Scopes 1, 2 and/or 3, as relevant) and when reporting progress against that target, even though such CO₂ emissions and/or removals are reported separately in a company’s GHG inventory. Additionally, companies are expected to account for land-based emissions and removals and set FLAG targets to address these emissions. Land-based emissions and removals should be included within the boundary of an SBTi-approved FLAG target when reporting progress against that target. Companies should select whether their targets cover land-based emissions and removals in column 76. Companies are expected to adhere to any additional GHG Protocol Guidance on accounting for land-based emissions when released in order to maintain compliance with the SBTi criteria.

(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s).

Question dependencies

This question only appears if you select “Intensity target” in response to C4.1.

Change from last year

Modified question

Rationale

The question is aimed at encouraging best practice in target setting, such as the use of science-based targets where available.

Ambition: Companies make progress against emissions targets that reflect their full emissions inventory, and are line with SBTi criteria.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Metrics & Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.

S&P Global Corporate Sustainability Assessment

Climate-Related Targets

TCFD Disclosure

NZAM (FS only)

Commitment 1

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” function at the bottom of the table.

Target reference number	Is this a science-based target?	Target ambition*	Year target was set	Target coverage	Scope(s)	Scope 2 accounting method	Scope 3 category(ies)	Intensity metric
1	2	3	4	5	6	7	8	9
Int1-Int100	Select from drop-down options below	Select from: 1.5°C aligned Well-below 2°C aligned 2°C aligned Other, please specify	Numerical field [enter a number between 1900- 2023]	Select from: Company-wide Business division Business activity Site/facility Country/area/region Product level Other, please specify	Select all that apply: Scope 1 Scope 2 Scope 3	Select from: Location-based Market-based	Select all that apply: Category 1: Purchased goods and services Category 2: Capital goods Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2) Category 4: Upstream transportation and distribution Category 5: Waste generated in operations Category 6: Business travel Category 7: Employee commuting Category 8: Upstream leased assets Category 9: Downstream transportation and distribution Category 10: Processing of sold products Category 11: Use of sold products Category 12: End-of-life treatment of sold products Category 13: Downstream leased assets Category 14: Franchises Category 15: Investments [does not appear to FS] Other (upstream) Other (downstream)	Select from drop-down options below

Base year	Intensity figure in base year for Scope 1 (metric tons CO₂e per unit of activity)	Intensity figure in base year for Scope 2 (metric tons CO₂e per unit of activity)	Intensity figure in base year for Scope 3, Category […] (metric tons CO₂e per unit of activity)* [One column for each Scope 3 category]	Intensity figure in base year for total Scope 3 (metric tons CO₂e per unit of activity)	Intensity figure in base year for all selected Scopes (metric tons CO₂e per unit of activity)	% of total base year emissions in Scope 1 covered by this Scope 1 intensity figure	% of total base year emissions in Scope 2 covered by this Scope 2 intensity figure
10	11	12	13-29	30	31	32	33
Numerical field [enter a number between 1900- 2023]	Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]	Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]	Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]	Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]	Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]

% of total base year emissions in Scope 3, Category […] covered by this Scope 3, Category […] intensity figure* [One column for each Scope 3 category]	% of total base year emissions in Scope 3 (in all Scope 3 categories) covered by this total Scope 3 intensity figure	% of total base year emissions in all selected Scopes covered by this intensity figure	Target year	Targeted reduction from base year (%)	Intensity figure in target year for all selected Scopes (metric tons CO₂e per unit of activity) [auto-calculated]	% change anticipated in absolute Scope 1+2 emissions	% change anticipated in absolute Scope 3 emissions
34-50	51	52	53	54	55	56	57
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [enter a number between 2018- 2100]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [0-999,999,999,999]	Percentage field [enter a percentage from -999-999 using a maximum of 2 decimal places]	Percentage field [enter a percentage from -999-999 using a maximum of 2 decimal places]

60-76

Intensity figure in reporting year for Scope 1 (metric tons CO₂e per unit of activity)

Intensity figure in reporting year for Scope 2 (metric tons CO₂e per unit of activity)

Intensity figure in reporting year for Scope 3, Category […] (metric tons CO₂e per unit of activity)* [One column for each Scope 3 category]

Intensity figure in reporting year for total Scope 3 (metric tons CO₂e per unit of activity)

Intensity figure in reporting year for all selected Scopes (metric tons CO₂e per unit of activity)

Does this target cover any land-related emissions?

% of target achieved relative to base year [auto-calculated]

Target status in reporting year

Numerical field [enter a number from 0-999,999,999,999 using a maximum of 10 decimal places and no commas]

Select from:

Yes, it covers land-related emissions only (e.g. FLAG SBT)
Yes, it covers land-related and non-land related emissions (e.g. SBT approved before the release of FLAG target-setting guidance)
Yes, it covers land-related CO₂ emissions/removals associated with bioenergy and non-land related emissions (e.g. non-FLAG SBT with bioenergy)
No, it does not cover any land-related emissions (e.g. non-FLAG SBT)

Percentage field

Select from:

New
Underway
Achieved
Expired
Revised
Replaced
Retired

Please explain target coverage and identify any exclusions	Plan for achieving target, and progress made to the end of the reporting year	List the emissions reduction initiatives which contributed most to achieving this target
82	83	84
Text field [maximum 5,000 characters]	Text field [maximum 2,400 characters]	Text field [maximum 2,400 characters]

[Add row]

*This column only appears if you select one of the “Yes…” options in column “Is this a science-based target?”

Intensity metric drop-down options:

Select one of the following options:

Grams CO₂e per revenue passenger kilometer
Metric tons CO₂e per USD($) value-added
Metric tons CO₂e per square meter
Metric tons CO₂e per metric ton of aluminum
Metric tons CO₂e per metric ton of steel
Metric tons CO₂e per metric ton of cement
Metric tons CO₂e per metric ton of cardboard
Grams CO₂e per kilometer
Metric tons CO₂e per unit revenue
Metric tons CO₂e per unit FTE employee
Metric tons CO₂e per unit hour worked
Metric tons CO₂e per metric ton of product
Metric tons of CO₂e per liter of product
Metric tons CO₂e per unit of production
Metric tons CO₂e per unit of service provided
Metric tons CO₂e per square foot
Metric tons CO₂e per kilometer
Metric tons CO₂e per passenger kilometer
Metric tons CO₂e per megawatt hour (MWh)
Metric tons CO₂e per barrel of oil equivalent (BOE)
Metric tons CO₂e per vehicle produced
Metric tons CO₂e per metric ton of ore processed
Metric tons CO₂e per ounce of gold
Metric tons CO₂e per ounce of platinum
Metric tons of CO₂e per metric ton of aggregate
Metric tons of CO₂e per billion (currency) funds under management
Other, please specify

Is this a science-based target? Drop-down options:

Select one of the following options:

Yes, and this target has been approved by the Science Based Targets initiative
Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years
Yes, we consider this a science-based target, but we have not committed to seek validation of this target by the Science Based Targets initiative within the next two years
No, but we are reporting another target that is science-based
No, but we anticipate setting one in the next two years
No, and we do not anticipate setting one in the next two years

Requested content

General

Note that CDP is requesting data on gross emissions targets. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions, and/or reductions attributable to the sequestration or transfer of GHGs (except in a specific case of bioenergy use for science-based targets – see “Additional information” for more details).
If you have a target that will be met in part by offsetting (including carbon neutrality targets), or CO2 removals except for the bioenergy case specified in “Additional information”, only the proportion of the target that relates to emissions reductions (and not offset purchases or CO2 removals) should be reported here. If you are uncertain of the proportion that will be achieved through emissions reductions, make an estimation based on the initiatives that you have in place or planned.
Targets to reduce emissions in the product use phase or to reduce emissions from the supply chain should be captured as Scope 3 targets.
If the details of your target differ between the Scopes (e.g. if the temperature alignment of your Scope 1+2 target is consistent with a 1.5°C-aligned pathway and the temperature alignment of your Scope 3 target is consistent with a well-below 2°C-aligned pathway), it is recommended to report separate rows for the Scope(s) for which the target differs.
If you intend to report a net-zero target in C4.2c, you should report both the near-term and long-term emissions reduction target(s) associated with your net-zero target either in this question or in C4.1a, and link them to your net zero target in column 3 of C4.2c. Please refer to the Science Based Targets initiative’s Net-Zero Standard for information on science-based net-zero targets.

Target reference number (column 1)

Select a unique target reference from the drop-down menu provided to identify the target in subsequent questions and to track progress against the target in subsequent reporting years.
If you reported a target to CDP last year and will be reporting progress against the same target this year, ensure you use the same target reference number as last year. For any new targets you are adding, always use a new reference number that you have not used previously.

Is this a science-based target? (column 2)

A brief description of science-based targets and why CDP is asking companies to set them is provided as additional information to this question.
In addition, refer to the CDP Technical Note on Science-Based Targets for what qualifies as a science-based target and how to assess your target against the Science Based Targets initiative’s criteria.
Companies with activities in the oil and gas sector for which there is no available sector methodology to determine whether a target is science-based should select the most appropriate ‘No…” option in this column. For more information on sector-specific requirements, see pages 14-21 of the SBTi Criteria.
Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practice in science-based target setting. Select this option only if the target has been approved by the SBTi.
Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a target and has self-assessed it to be science-based, and it has been submitted to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your target to be science-based.
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years – Not all companies have had their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not yet submitted it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your target to be science-based. If you are currently in the process of revising your target to meet SBTi criteria, indicate this by selecting “No, but we anticipate setting one in the next two years.
Yes, we consider this a science-based target, but we have not committed to seek validation of this target by the Science Based Targets initiative within the next two years – Not all companies intend to have their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not committed to submit it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your target to be science-based. If you are a supplier to a company with a supplier engagement target, as part of which you have set a target in line with SBTi resources but are not planning to seek SBTi approval, select this option.
No, but we are reporting another target that is science-based – Another target (absolute or intensity) disclosed is science-based, either in another row in this table, or in C4.1b.
No, but we anticipate setting one in the next two years – While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
No, and we do not anticipate setting one in the next two years – No science-based targets have been set and there are no plans in place to set one in the next two years.

Target ambition (column 3)

This column only appears if you select any “Yes” option in “Is this a science-based target” (column 2).
Select the level of ambition of your science-based target. Note that as of July 2022, the SBTi requires Scope 1 and 2 targets to be consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared with pre-industrial temperatures, and Scope 3 targets to be conistent with the level of decarbonization required to keep global temperature increase to well-below 2°C compared to pre-industrial temperatures.

Year target was set (column 4)

Enter the year in which your company set the target.
This must be either before or during the reporting year but cannot be after the reporting year or after the target year.
If the target is science-based and has been submitted to the SBTi for validation or has been approved by the SBTi (as indicated by your response to column 2), enter the year in which your organization submitted the target for validation by the SBTi.
If you have a year-on-year rolling target, enter the year you first set the target. This can be before the base year.
If you set the target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.

Target coverage (column 5)

If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
It is considered best practice to report one overarching target covering total company-wide Scope 1 and 2 emissions. Sub-targets may also be reported in additional rows.
If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column. E.g. if your target applies only to your European operations, select “Country/area/region” in this column and specify the country/area/region in the “Please explain target coverage and identify any exclusions” column.

Scope(s) (column 6)

This refers to the Scope(s) of emissions to which the target relates. Note that the target does not have to comprise all emissions within a particular Scope.

Scope 2 accounting method (column 7)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
Indicate whether the target relates to your location-based or market-based Scope 2 emissions.

Scope 3 category(ies) (column 8)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
Select the Scope 3 emissions category(ies) that relate to this target.
For each Scope 3 category selected in this column, a corresponding column will appear for you to provide the category’s Scope 3 intensity figure in the base year (columns 13-29), % of total base year emissions covered (columns 34-40) and intensity figure in the reporting year (columns 60-76).
The categories of Scope 3 emissions have been taken from the Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Refer to the Standard for additional information on the sources that each category comprises and how to calculate these emissions. If you are specifying a Scope 3 source under “Other, please specify” please make clear whether it is an upstream or downstream source.

Intensity metric (column 9)

If you select “Other, please specify,” provide a label for the metric.
This should be in the format “mass CO₂ per activity,” as in the drop-down options above.

Base year (column 10)

The base year is the year against which you are comparing your emissions reduction target.
The base year cannot be after the reporting year.
If you have a year-on-year rolling target, the base year will be the previous reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.

Intensity figure in base year for Scope 1 (metric tons CO₂e per unit of activity) (column 11)

This column only appears if you select “Scope 1” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
Note that the base year Scope 1 emissions intensity figure should be calculated by dividing the base year Scope 1 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee by 22%, using 2015 as the base year and 2025 as the target year, calculate what your company-wide Scope 1 emissions were per FTE in 2015 and enter that figure in this column.

Intensity figure in base year for Scope 2 (metric tons CO₂e per unit of activity) (column 12)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 2 proportion only.
Note that the base year Scope 2 emissions intensity figure should be calculated by dividing the base year Scope 2 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee by 22%, using 2015 as the base year and 2025 as the target year, calculate what your company-wide Scope 2 emissions were per FTE in 2015 and enter that figure in this column.

Intensity figure in base year for Scope 3, Category […] (metric tons CO₂e per unit of activity) (column 13-29)

A column will appear for each Scope 3 category selected in column 8.
If your target covers only certain activities within a Scope 3 category (as indicated in column 5 “Target coverage”), you should calculate the base year intensity figure using the base year emissions relating to those activities only, rather than the emissions for the Scope 3 category as a whole.

Intensity figure in base year for total Scope 3 (metric tons CO₂e per unit of activity) (column 30)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
Enter the total Scope 3 emissions intensity figure in the base year covered by the target in this column.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 3 proportion only.
Note that the base year total Scope 3 emissions intensity figure should be calculated by dividing the base year total Scope 3 emissions covered by the target for the Scope 3 category(ies) selected in column 8 by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your company-wide Scope 1+2+3 emissions per unit revenue by 46%, using 2018 as the base year and 2027 as the target year, calculate what your company-wide emissions per unit revenue were in 2018 for the Scope 3 category(ies) selected in column 8, and enter this figure in this column.

Intensity figure in base year for all selected Scopes (metric tons CO₂e per unit of activity) (column 31)

Enter the emissions intensity figure in the base year covered by the target for all selected Scopes in this column.
Note that this figure should be calculated by dividing the total base year emissions covered by the target in all selected Scopes by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee by 22%, using 2015 as the base year and 2025 as the target year, calculate what your company-wide Scope 1+2 emissions were per FTE in 2015 and enter this figure in this column
If the target relates to a single Scope, this figure will be the same as the figure reported in either column 11, column 12, or column 30.

% of total base year emissions in Scope 1 covered by this Scope 1 intensity figure (column 32)

This column only appears if you select “Scope 1” in column 6 “Scope(s)”.
Enter the base year Scope 1 emissions covered by the target as a percentage of your total company-wide base year emissions in Scope 1.
If the target encompasses multiple Scopes, the percentage should be based upon the Scope 1 proportion only.
Note that for this calculation you should use the absolute base year Scope 1 emissions covered by the target (i.e. metric tons CO2e), not the Scope 1 intensity figure you reported in column 11 (i.e. metric tons CO2e per unit activity).
E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee in your European operations only, and the Scope 1 emissions from your European operations accounted for 80% of your total Scope 1 emissions in the base year, then you should enter 80 into this column.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 1.

% of total base year emissions in Scope 2 covered by this Scope 2 intensity figure (column 33)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
Enter the base year Scope 2 emissions covered by the target as a percentage of your total company-wide base year emissions in Scope 2.
If the target encompasses multiple Scopes, the percentage should be based upon the Scope 2 proportion only.
Note that for this calculation you should use the absolute base year Scope 2 emissions covered by the target (i.e. metric tons CO2e), not the Scope 2 intensity figure you reported in column 12 (i.e. metric tons CO₂e per unit activity).
E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee in your European operations only, and the Scope 2 emissions from your European operations accounted for 30% of your total Scope 2 emissions in the base year, then you should enter 30 into this column.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 2.

% of total base year emissions in Scope 3, Category […] covered by this Scope 3, Category […] intensity figure (column 34-50)

A column will appear for each Scope 3 category selected in column 8.
Enter the base year Scope 3 emissions covered by the intensity figure in the Scope 3 category as a percentage of your total company-wide base year emissions in that Scope 3 category.
E.g., if your intensity figure covers only the Scope 3 Category 1 emissions of one region which accounts for 50% of your total base year Scope 3 emissions in Category 1, enter “50”.

% of total base year emissions in Scope 3 (in all Scope 3 categories) covered by this total Scope 3 intensity figure (column 51)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
Enter the base year Scope 3 emissions covered by the target as a percentage of your total company-wide base year emissions for all Scope 3 categories calculated in the base year.
E.g. if you have selected only one Scope 3 category (e.g. Business travel), you should enter the base year emissions in that category as a percentage of your total base year Scope 3 emissions in all categories.
If the target encompasses multiple Scopes, the percentage should be based upon the Scope 3 proportion only.
Note that for this calculation you should use the absolute base year Scope 3 emissions covered by the target (i.e. metric tons CO2e), not the total Scope 3 intensity figure you reported in column 30 (i.e. metric tons CO₂e per unit activity).
E.g. if your target is to reduce your Scope 1+2+3 emissions per unit revenue for a particular business activity only (e.g. office-based operations, etc.), and the total Scope 3 emissions from that business activity accounted for 20% your total Scope 3 emissions in the base year, then you should enter 20 into this column.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 3.

% of total base year emissions in all selected Scopes covered by this intensity figure (column 52)

Enter the total base year emissions covered by the target as a percentage of your total company-wide base year emissions in all Scopes selected in column 6.
Note that for this calculation you should use the absolute base year emissions covered by the target in all selected Scopes (i.e. metric tons CO₂e), not the intensity figure you reported in column 31 (i.e. metric tons CO₂e per unit activity).
E.g. if your target is to reduce your Scope 1+2+3 emissions per FTE employee for your UK operations, and the Scope 1+2+3 emissions from your UK operations accounted for 10% your total, company-wide Scope 1+2+3 emissions, then you should enter 10 into this column.
Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for all Scopes selected in column 6.

Target year (column 53)

Enter the year that the target ends. For example if the target is to reduce emissions intensity by 50% by 2030, the target year is 2030.
If you have a year-on-year rolling target, the target year will be the reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
You should not report any target that has been achieved before the start of the reporting year.

Targeted reduction from base year (%) (column 54)

Enter your targeted emissions intensity reduction as a percentage reduction of the emissions intensity figure in all Scopes relevant to the target to be achieved in the target year, when compared to the base year.
E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee to 7 metric tons CO₂e per FTE employee and your base year Scope 1+2 intensity figure was 9 metric tons CO₂e per FTE employee, you should enter 22 into this column (i.e. ((9-7)/9)=0.22; then multiply by 100 for percentage value).
If your target is to stabilize your emissions intensity at the base year level, you should enter 0 in this column.
Note that this column is intended to describe the targeted percentage reduction from the base year that is to be achieved in the target year, not the percentage reduction from the base year observed in the reporting year.

Intensity figure in target year for all selected Scopes (metric tons CO₂e per unit of activity) [auto-calculated] (column 55)

This column will be auto-calculated in the ORS.
The intensity figure in your target year covered by the target will be calculated from the “Intensity figure in base year for all selected Scopes” and the “Targeted reduction from base year” columns. Ensure that you have entered data into these columns.
E.g. if your base year Scope 1+2 intensity figure was 9 metric tons CO₂e per FTE employee, and your targeted reduction is 22%, this column will display 7.

% change anticipated in absolute Scope 1+2 emissions (column 56)

Complete this column if your target relates to Scope 1 and/or Scope 2 emissions. If your target does not relate to Scope 1 and/or Scope 2 emissions, enter 0 (zero) in this column.
Enter the percentage change in your total absolute gross global Scope 1+2 emissions anticipated, based on the information provided in the previous columns. A positive figure indicates that you anticipate an increase in emissions.
Note that even if your target only relates to one Scope (i.e. Scope 1 or 2), enter the change anticipated in your Scope 1+2 emissions.

% change anticipated in absolute Scope 3 emissions (column 57)

Complete this column if your target relates to Scope 3 emissions. If your target does not include Scope 3 emissions, enter 0 (zero) in this column.
Enter the percentage change in your total absolute global Scope 3 emissions (in all Scope 3 categories) expected, based on the information provided in the previous columns. A positive figure indicates that you anticipate an increase in emissions.

Intensity figure in reporting year for Scope 1 (metric tons CO₂e per unit of activity) (column 58)

This column only appears if you select “Scope 1” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
Note that the Scope 1 emissions intensity figure in the reporting year should be calculated by dividing your reporting year Scope 1 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your Scope 1+2 emissions per full time equivalent (FTE) employee from 9 metric tons CO₂e to 7 metric tons CO2e and in the reporting year your Scope 1 emissions per FTE employee were 5 metric tons CO₂e, enter 5 in this column.

Intensity figure in reporting year for Scope 2 (metric tons CO₂e per unit of activity) (column 59)

This column only appears if you select “Scope 2” in column 6 “Scope(s)”.
If the target encompasses multiple Scopes, the percentage should be based upon the Scope 2 proportion only.
Note that the Scope 2 emissions intensity figure in the reporting year should be calculated by dividing your reporting year Scope 2 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your Scope 1+2 emissions per full time equivalent (FTE) employee from 9 metric tons CO₂e to 7 metric tons CO₂e and in the reporting year your Scope 2 emissions per FTE employee were 3 metric tons CO₂e, enter 3 in this column.

Intensity figure in reporting year for Scope 3, Category […] (metric tons CO₂e per unit of activity) (columns 60-76)

A column will appear for each Scope 3 category selected in column 8.
Note that an intensity figure for all Scope 3 categories covered by a target should be calculated every year.

Intensity figure in reporting year for total Scope 3 (metric tons CO₂e per unit of activity) (column 77)

This column only appears if you select “Scope 3” in column 6 “Scope(s)”.
Enter the Scope 3 emissions intensity figure in the reporting year covered by the target in this column.
If the target encompasses multiple Scopes, the percentage should be based upon the Scope 3 proportion only.
Note that the Scope 3 emissions intensity figure in the reporting year should be calculated by dividing your total reporting year Scope 3 emissions covered by the target for the Scope 3 category(ies) selected in column 8 by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your company-wide Scope 1+2+3 emissions per unit revenue from from 16 metric tons CO₂e to 5 metric tons CO₂e and in the reporting year your Scope 3 emissions per unit revenue for the Scope 3 category(ies) selected in column 8 were 2 metric tons CO₂e, enter 2 in this column.
If your target covers only certain activities within a Scope 3 category (as indicated in column 5 “Target coverage”), you should calculate the intensity figure in the reporting year using the reporting year emissions relating to those activities only, rather than the emissions for the Scope 3 category as a whole.

Intensity figure in reporting year for all selected Scopes (metric tons CO2e per unit of activity) (column 78)

Enter the emissions intensity figure in the reporting year covered by the target for all selected Scopes in this column.
Note that this intensity figure should be calculated by dividing your total reporting year emissions covered by the target in all selected Scopes by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee from 9 metric tons CO₂e to 7 metric tons CO₂e and in the reporting year your Scope 1+2 emissions per FTE employee were 8 metric tons CO₂e, enter 8 in this field.
If the target relates to a single Scope, this figure will be the same as the figure reported in either column 58, column 59, or column 77.

Does this target cover any land-related emissions? (column 79)

A brief description of land-related emissions (i.e., GHG emissions from Agriculture, Forestry and Other Land Use (AFOLU)) is provided as additional information to this question.
In addition, refer to the CDP Technical Note on Science-Based Targets for further detail and how to assess your target against the Science Based Targets initiative’s criteria.
Yes, it covers land-related emissions only (e.g. FLAG SBT) – Select this option if your target only covers GHG emissions related to land and agriculture and excludes emissions and removals associated with bioenergy, in line with SBTi guidance. Companies that have followed the SBTi Forests, Land and Agriculture (FLAG) guidance to set their target should select this option. This option will primarily be applicable to companies in the Agricultural Commodities, Food, Beverage & Tobacco, and Paper & Forestry CDP sectors.
Yes, it covers land-related and non-land related emissions (e.g. SBT approved before the release of FLAG target-setting guidance) – Select this option if your target covers both GHG emissions related to land and agriculture and non-land related emissions from energy/industry. This option will be primarily applicable to companies in the Agricultural Commodities, Food, Beverage & Tobacco and Paper and Forestry CDP sectors whose target was approved by the SBTi before the release of the SBTi FLAG target-setting guidance.
Yes, it covers land-related CO₂ emissions/removals associated with bioenergy and non-land related emissions (e.g. non-FLAG SBT with bioenergy) – Select this option if your target covers CO₂ emissions from the combustion, processing and distribution phase of bioenergy and/or land use emissions and removals associated with bioenergy feedstocks, in addition to non-land related emissions from energy/industry. This option could apply to companies in any CDP sector with a target that includes emissions from bioenergy.
No, it does not cover any land-related emissions (e.g. non-FLAG SBT) – Select this option if your target only covers non-land related emissions from energy/industry.
If you select any “Yes…” option, specify the types of land-related emissions covered by the target in the “Please explain target coverage and identify any exclusions” column.

% of target achieved relative to base year [auto-calculated] (column 80)

This column will be auto-calculated in the ORS.
The target’s percentage completion (in terms of emissions) relative to the base year will be calculated from the “Intensity figure in base year for all selected Scopes” (column 31), “Targeted reduction from base year” (column 54), and the “Intensity figure in reporting year for all selected Scopes” (column 78) columns. Ensure you have entered data into these columns.
E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee by 22% and in the reporting year your Scope 1+2 emissions per FTE employee had reduced by 11% compared to the base year, this column will display 50 as your target is 50% complete.
Negative values indicate an increase in the emissions intensity figure compared to the base year.
Values greater than 100 incidate that you have exceeded your target.
This column will not appear if you set a target to stabilize your emissions intensity at the base year level, i.e. if you have entered 0 (zero) in column “Targeted reduction from base year (%)” (column 54).

Target status in reporting year (column 81)

New – Select this option for targets that have been set in the reporting year and are still in progress.
Underway – Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
Achieved – Select this option for targets that have been achieved or exceeded in the reporting year.
Expired – Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
Revised – Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 79 in the reporting year, for example due to a recalculation of the base year emissions intensity or a change to the target year.
Replaced – Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
Retired – Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain target coverage and identify any exclusions” column.

Please explain target coverage and identify any exclusions (column 82)

If the target is not company-wide (i.e. it does not apply to the whole company in line with your definition of the reporting boundary) provide further details of your target coverage in this column. E.g. if you have selected “Country/area/region” in column 5, please specify which countries/areas/regions your target covers.
If you have excluded any relevant Scopes or Scope 3 categories from your target, state the reason for omitting these Scopes or Scope 3 categories and outline any steps you are taking to enable target-setting for relevant Scopes or Scope 3 categories.
If you selected any “Yes…” option in column 76, specify the types of land-related emissions that are covered by the target from those listed below. Refer to the additional information and the SBTi FLAG Guidance for more information.
- Direct land use change emissions – All direct emissions from land use change, including those associated with livestock feed and conversion of natural forests to plantation. Includes CO ₂ emissions from land use change associated with deforestation and forest degradation, including conversion of natural forest to plantation following GHG Protocol definitions, and CO ₂ emissions from land use change associated with conversion of coastal wetlands (mangroves, seagrass and marshes); conversion, draining and/or burning of peatlands; and conversion of savannas and natural grasslands.
- Indirect land use change emissions – Carbon stock loss due to land conversion on lands not owned or controlled by the company or in its supply chain, induced by change in demand for products produced or sourced by the company.
- Land management emissions – All emissions from land management; CO₂emissions related to on-farm vehicles and fertilizer production are also included, as they are commonly embedded in accounting tools and emission factors associated with land management. Includes methane emissions from manure management, enteric fermentation, and flooded soil (for lowland rice); direct and indirect N ₂O emissions from manure management, crop residue, fertilizer application and fertilizer leaching, runoff and volatilization; methane and N ₂O emissions from agricultural waste burning; CO₂emissions from machinery used on farm and transport of biomass; and CO₂ and N₂O emissions from fertilizer production.
- Biological carbon removals and storage not associated with bioenergy feedstocks – Carbon sequestration from improved forest management, agroforestry, forest restoration, silvopasture, soil organic carbon and biochar, excluding removals from the production and end use of bioenergy.
- Biogenic emissions and associated removals from bioenergy feedstocks – CO₂, CH₄ and N₂O emissions from the combustion, processing and distribution phase of bioenergy and the land use emissions and removals associated with bioenergy feedstocks.
You can use this column to identify where you have a financial year or average year based target.
If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.

Plan for achieving target, and progress made to the end of the reporting year (column 83)

This column only appears if you select “Underway”, “Revised”, or “New” in column 81 “Target status in reporting year”.
Describe how you plan to achieve the target, including any emissions reduction initiatives your organization plans to implement.
List the emissions reduction initiatives which have contributed most to any progress towards the target to the end of the reporting year.
If you are not on track to achieve the target, explain how you plan to get back on track.
If possible, specify your anticipated and/or observed progress curve in this column, i.e.:
- Linear – the rate of progress towards the target is anticipated and/or observed to be steady over time
- Logarithmic – the rate of progress towards the target is anticipated and/or observed to be faster at the start
- Exponential – the rate of progress towards the target is anticipated and/or observed to be faster at the end
- Variable – the rate of progress towards the target is anticipated and/or observed to change from year to year

List the emissions reduction initiatives which have contributed most to achieving this target since it was set (column 84)

This column only appears if you select “Achieved” in column 81 “Target status in reporting year”.
List the initiatives which contributed most to the emissions reductions achieved over the lifetime of the target.

Example response

The table below shows two intensity target examples:

Int 1: a target to reduce total emissions (scope 1 and market-based scope 2) per US$ revenue from company-wide operations by 40% by 2025, from a base year of 2019. The emissions in the base year are 0.0005 tCO₂e/USD. The target emission intensity reduction would then be 0.0005 x 0.6 = 0.0003 tCO₂e/USD. The target was set in 2020.

Int 2: a target to reduce emissions from business flights per FTE employee by 50% by 2026, from a base year of 2015. Emissions from flights account for 25% of all Scope 3 emissions. The emissions in the base year are 2.6 tCO₂e/FTE. The target emission reduction would then be 2.6 x 0.5 = 1.3 tCO₂e/FTE . The target was set in 2016.

Target reference number	Is this a science-based target?	Target ambition*	Year target was set	Target coverage	Scope(s)	Scope 2 accounting method
Int1	Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science-based target initiative in the next two years	1.5°C aligned	2020	Company-wide	Scope 1 Scope 2	Market-based
Int2	No, and we do not anticipate setting one in the next two years	N/A	2016	Company-wide	Scope 3	N/A

Scope 3 category(ies)	Intensity metric	Base year	Intensity figure in base year for Scope 1 (metric tons CO₂e per unit of activity)	Intensity figure in base year for Scope 2 (metric tons CO₂e per unit of activity)	Intensity figure in base year for Scope 3, Category 6: Business travel (metric tons CO₂e per unit of activity)	Intensity figure in base year for total Scope 3 (metric tons CO₂e per unit of activity)
N/A	Metric tons CO₂e per unit revenue	2019	0.0004	0.0001	N/A	N/A
Category 6: Business Travel	Metric tons CO₂e per FTE employee	2015	N/A	N/A	2.6	2.6

Intensity figure in base year for all selected Scopes (metric tons CO₂e per unit of activity)	% of total base year emissions in Scope 1 covered by this Scope 1 intensity figure	% of total base year emissions in Scope 2 covered by this Scope 2 intensity figure	% of total base year emissions in Scope 3, Category 6: Business travel covered by this Scope 3, Category 6 intensity figure	% of total base year emissions in Scope 3 (in all Scope 3 categories) covered by this total Scope 3 intensity figure	% of total base year emissions in all selected Scopes covered by this intensity figure	Target year
0.0005	97	95	N/A	N/A	96	2025
2.6	N/A	N/A	100	25	25	2026

Targeted reduction from base year (%)	Intensity figure in target year for all selected Scopes (metric tons CO₂e per unit of activity) [auto-calculated]	% change anticipated in absolute Scope 1+2 emissions	% change anticipated in absolute Scope 3 emissions	Intensity figure in reporting year for Scope 1 (metric tons CO₂e per unit of activity)	Intensity figure in reporting year for Scope 2 (metric tons CO₂e per unit of activity)	Intensity figure in reporting year for Scope 3, Category 6: Business travel (metric tons CO₂e per unit of activity)
40	0.0003	-25	N/A	0.00030	0.00003	N/A
50	1.3	N/A	-10	N/A	N/A	2

Intensity figure in reporting year for total Scope 3 (metric tons CO₂e per unit of activity)	Intensity figure in reporting year for all selected Scopes (metric tons CO₂e per unit of activity)	Does this target cover any land-related CO₂ emissions?	% of target achieved relative to base year [auto-calculated]	Target status in reporting year	Please explain target coverage and identify any exclusions	Plan for achieving target, and progress made to the end of the reporting year	List the emissions reduction initiatives which contributed most to achieving this target
N/A	0.00033	No, it does not cover any land-related emissions (SBT)	85	Underway	The target covers most of our operations as per reporting boundary disclosed in C0.5. We have excluded a small amount of Scope 1 and 2 emissions from two small sites in South America (less than 700sqm) for which we don’t currently have data. CO₂ emissions and removals from bioenergy are not relevant to our organization.	Energy efficiency measures and operational improvements implemented at our offices in the US have already helped us reduce some of our emissions per unit revenue. However, most of the emissions reductions per unit revenue will be achieved by implementing our new company strategy that will change our business model to make it more sustainable and adapt to the needs of the 21st century. Please see details disclosed in module 3.	N/A
2	2	No, it does not cover any land-related emissions (SBT)	46	Underway	This target is based on financial year reporting: base year financial year 2015, reporting year financial year 2022, target year 2026. CO₂ emissions and removals from bioenergy are not relevant to our organization.	We have been taking advantage of videoconferencing opportunities where possible, but still interact with a number of clients where in person meetings and thus travel is still required. We are planning on scaling this back where possible and providing support for our clients to implement better videoconferencing where feasible. However, this has not been enough to keep us on track to meet our targets. In order to get back on track, we are exploring options to compensate emissions from flights with our travel providers.	N/A

Additional information

Science-based targets

Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and pursue efforts to limit warming to under 1.5°C. However, there is a large gap between the level of ambition of the country/area commitments and targeted temperatures. Companies, which are responsible for a vast majority of the world’s emissions, must play a critical role in filling the gap left by country/area commitments by raising the level of ambition in their target setting and reducing their emissions in line with climate science.
Science-based target setting methods enable companies to set emissions targets that are consistent with conserving the remaining global emissions budget. A number of factors are taken into consideration in order to determine what is most appropriate for a given company. Please see the Technical Note on Science Based Targets and the 2023 climate change scoring methodology for information on best practices in target setting and what CDP considers a science-based target.
Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practices in science-based target setting. Due to the waiting list for target validation, companies are encouraged to book a validation slot and submit their targets to the SBTi as early as possible in order for these targets to be used for scoring in CDP’s 2032 climate change questionnaire.
Regardless of submission to SBTi, companies are expected to report emissions reductions targets in their CDP response. Targets that did not pass the SBTi’s review process or that have not been submitted for review prior to the deadline will still be evaluated using the information disclosed by each company in their CDP response. See the Technical Note for more details.

Science-based targets — bioenergy accounting

As per the GHG Protocol Corporate Standard, GHG Protocol Corporate Value Chain (Scope 3) Standard and GHG Protocol Scope 2 Guidance, biogenic CO₂ emissions and removals shall be reported alongside a company’s GHG inventory, separately from the Scopes. However, SBTi criterion 10 requires CO₂ emissions from the combustion, processing and distribution of bioenergy and the land use emissions and removals associated with bioenergy feedstocks to be included in the target boundary when setting a science-based target (in Scopes 1, 2 and/or 3, as relevant) and when reporting progress against that target, even though such CO ₂ emissions and/or removals are reported separately in a company’s GHG inventory. Additionally, companies are expected to account for land-based emissions and removals and set FLAG targets to address these emissions. Land-based emissions and removals should be included within the boundary of an SBTi-approved FLAG target when reporting progress against that target. Companies should select whether their targets cover land-based emissions and removals in column 76. Companies are expected to adhere to any additional GHG Protocol Guidance on accounting for land-based emissions when released in order to maintain compliance with the SBTi criteria.

(C4.1c) Explain why you did not have an emissions target, and forecast how your emissions will change over the next five years.

Question dependencies

This question only appears if you select “No target” in response to C4.1.

Change from last year

No change

Rationale

As setting a target is a pre-requisite for leadership in environmental practice, data users need to understand why companies do not have active targets guiding environmental strategy.

Response options

Please complete the following table:

Primary reason

Five-year forecast

Please explain

Select from:

We are planning to introduce a target in the next two years
Important but not an immediate business priority
Judged to be unimportant, explanation provided
Lack of internal resources
Insufficient data on operations
No instruction from management
Other, please specify

Text field [maximum 2,400 characters]

Requested content

General

If you select “Other, please specify,” provide a label for the "Primary reason".

Five-year forecast (column 2)

Provide a qualitative and quantitative description of how you forecast your emissions will change over the next five years.
It is acknowledged that this forecast will be an estimate, but it is expected that companies will:

- forecast the expected direction of change (e.g. whether their emissions will increase, decrease or experience no change overall over the next five years).
- provide a quantitative description of the forecasted change in emissions (e.g. Scope 1 emissions forecasted to decrease by 30 metric tons CO₂e/ Scope 1 and Scope 2 emissions forecasted to increase by 10%/ Scope 3 emissions forecasted to decrease by 20%).
- provide a brief description of the reasons you forecast this change, or in the unlikely event no change, in emissions over the next five years. For example, this could be due to forecasted changes in output or expected emissions reduction activities.

Please explain (column 3)

Provide an explanation of why you do not have a target and the timeline to implement one, if applicable.

(C-FS4.1d) Provide details of the climate-related targets for your portfolio.

Question dependencies

This question only appears if you select “Portfolio target” in response to C4.1.

Change from last year

Modified question

Rationale

Achieving net zero by 2050 will require a major redirection of capital into sustainable solutions and low-carbon technologies, which only the financial services sector can provide. This profound influence on the wider economy means financial institutions’ climate change impact occurs mostly in their portfolios, rather than through their direct operations. Thus, setting targets and reporting on progress at a portfolio level is considered best practice for financial institutions and can help them align their financing, investment and insurance underwriting to a 1.5 degree world.

Ambition: Financial services companies set and progress climate-related targets for lending, investing and/or insuring that align with their commitment to achieve net zero by 2050.

Connection to other frameworks

TCFD

Metrics and Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.

S&P Global Corporate Sustainability Assessment

Climate-Related Targets

TCFD Disclosure

NZAM (FS only)

Commitment B

Commitment C

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” function at the bottom of the table.

Target reference number

Year target was set

Portfolio

Product type/Asset class/Line of business

Sectors covered by the target

Target type

Por1 - Por100

Numerical field [enter a number between 1900- 2023]

Select from:

Banking (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Select all that apply:
Banking

All product types
Corporate loans
Retail loans
Corporate real estate
Retail mortgages
Trade finance
Asset finance
Project finance
Debt and equity underwriting
Other, please specify

Investing

All asset classes
Fixed income
Listed equity
Private equity
Real estate/property
Infrastructure
Commodities
Forestry
Hedge funds
Fund of funds
Derivatives
Other, please specify

Insurance

All lines of business
Property and casualty
Construction and engineering
Agribusiness
Motor
Marine
Other, please specify

Select all that apply:

All sectors
Energy
Materials
Capital goods
Commercial and professional services
Transportation
Automobiles and components
Consumer durables and apparel
Consumer services
Retailing
Food and staples retailing
Food, beverage and tobacco
Household and personal products
Health care equipment and services
Pharmaceuticals, biotechnology and life sciences
Banks
Diversified financials
Insurance
Software and services
Technology hardware and equipment
Semiconductors and semiconductor equipment
Telecommunication services
Utilities
Real estate
Other, please specify

Select from:

Green finance
Sector Decarbonization Approach (SDA)
Portfolio coverage
Portfolio temperature alignment
Portfolio emissions
Other, please specify

Target type: Absolute or intensity

Scopes included in temperature alignment

Metric (or target numerator if intensity)

Target denominator

Base year

Figure in base year

Percentage of portfolio emissions covered by the target

Monetary metric for portfolio coverage (unit currency as reported in C0.4)

Percentage of portfolio covered by the target, using a monetary metric

Frequency of target reviews

Select from:

Absolute
Intensity

Select from:

Scope 1 + 2
Scope 1 + 2 + 3

Select from:
Green finance

Total green finance raised and facilitated (unit currency as reported in C0.4)
Total green investments (unit currency as reported in C0.4)
Total green bonds outstanding (unit currency as reported in C0.4)
Total green debt instruments outstanding (unit currency as reported in C0.4)
Other, please specify

Sector Decarbonization Approach (SDA)

Metric tons CO2e
Other, please specify

Portfolio coverage

% of portfolio setting a Science-Based Target
Other, please specify

Portfolio temperature alignment

Degrees of warming

Portfolio emissions

tCO2e

Other, please specify

Other, please specify

Select from:
Green finance

Total finance raised and facilitated (unit currency as reported in C0.4)
Total investments (unit currency as reported in C0.4)
Total bonds outstanding (unit currency as reported in C0.4)
Total debt instruments outstanding (unit currency as reported in C0.4)
Other, please specify

Sector Decarbonization Approach (SDA)

Meters squared
kWh
Ton cement
Ton pulp and paper
km
Passenger km
Ton km
Vehicle km
Ton iron and steel
Ton aluminum
Other, please specify

Portfolio emissions

Million revenues (unit currency as reported in C0.4)
Million invested (unit currency as reported in C0.4)

Other, please specify

Other, please specify

Numerical field [enter a number between 1900- 2023]

Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 3 decimal places and no commas]

Percentage field [enter a percentage from 0-100]

Select from:

Loan book value
Assets under management
Market value of investees
Invested value
Enterprise value of investees
Other, please specify
Not applicable

Percentage field [enter a percentage from 0-100]

Select from:

Quarterly
Semi-annually
Annually
Every five years
Other, please specify

Interim target year	Figure in interim target year	Target year	Figure in target year	Figure in reporting year	% of target achieved relative to base year [auto-calculated]	Aggregation weighting used
17	18	19	20	21	22	23
Numerical field [enter a number between 2018- 2100]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number between 2018- 2100]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Auto-calculated	Select from: Weighted average temperature score (WATS) Total emissions weighted temperature score (TETS) Market owned emissions weighted temperature score (MOTS) Enterprise owned emissions weighted temperature score (EOTS) Enterprise value (EV) + cash emissions weighted temperature score (ECOTS) Total assets emissions weighted temperature score (AOTS) Revenue owned emissions weighted temperature score (ROTS) Other, please specify

Proportion of portfolio emissions calculated in the reporting year based on asset level data	Proportion of the temperature score calculated in the reporting year based on company targets	Target status in reporting year	Is this a science-based target?	Target ambition	Please explain target coverage and identify any exclusions
24	25	26	27	28	29
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Select from: New Underway Achieved Expired Revised Replaced Retired	Select from: Yes, and this target has been approved by the Science-Based Targets initiative Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science-based target initiative in the next two years Yes, we consider this a science-based target, and the target is currently being reviewed by the Science-based target initiative Yes, we consider this a science-based target, it has been set in line with the Glasgow Financial Alliance for Net Zero (GFANZ) commitments, and we have committed to seek validation by, or it is currently being reviewed by, the Science Based Targets initiative Yes, we consider this a science-based target, and it has been set in line with the Glasgow Financial Alliance for Net Zero (GFANZ) commitments, but we have not committed to seek validation by the Science Based Targets initiative within the next two years No, but we are reporting another target that is science-based No, but we anticipate setting one in the next 2 years No, and we do not anticipate setting one in the next 2 years	Select from: 1.5°C aligned Well-below 2°C aligned 2°C aligned Other, please specify	Text field [maximum 2,500 characters]

[Add row]

Requested content

Target reference number (column 1)

Select a unique target reference from the drop-down menu provided to identify the target in subsequent questions and to track progress against the target in subsequent reporting years.

Year target was set (column 2)

Enter the year in which your company set the target.
This must be either before or during the reporting year. It cannot be after the reporting year or after the target year.
If you have a year-on-year rolling target, enter the year you first set the target. This can be before the base year.
If you set the target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.

Portfolio (column 3)

The options in this column are driven by your selections in C-FS0.7.
See Explanation of Terms for definition of “Portfolio”.

Product type/Asset class/Line of business (column 4)

The options in this column are driven by your selections in column 3.
If you have a target at the portfolio-level including all your products within this portfolio, select “All product types” / “All asset classes” / “All lines of business”.

Sectors covered by the target (column 5)

Select the sectors included within the target.
If your portfolio target concerns companies in specific sectors (i.e. sector decarbonization approach), select which sector it relates to.
Select “All sectors” if your portfolio target concerns all your clients/investees.

Target type (column 6)

Select which type of target you have implemented for your portfolio.

- Green finance: refers to the aim of providing loans, investments and/or other financial products and services to green projects.
- Sectoral Decarbonization Approach (SDA): a method for setting physical intensity targets that uses convergence of emissions intensity.
- Portfolio coverage: a method for setting target to drive the adoption of science-based emissions reduction targets by borrowers and/or investees.
- Portfolio temperature alignment: a method that enables financial institutions to set targets to align their base year portfolio temperature score to a long-term temperature goal.
- Portfolio emissions: setting targets to reduce portfolio emissions or emissions intensity.

Target type: Absolute or intensity (column 7)

This column only appears if “Green finance”, “Sectoral Decarbonization Approach (SDA)”, "Portfolio emissions", or “Other, please specify” is selected in column 6.
Select whether the target is an absolute target or an intensity target, e.g., targets related to tCO₂e are absolute targets, whereas targets related to an intensity metric such as tCO₂e/kWh are intensity targets.
If you select “absolute”, note that CDP is requesting data on gross emissions. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions from the use of goods and services and/or reductions attributable to the sequestration or transfer of GHGs. If you have a target that will be met in part by offsetting (including carbon neutrality targets), only the proportion of the target that relates to emissions reductions (and not offset purchases) should be considered here.

Scopes included in temperature alignment (column 8)

This column only appears if “Portfolio temperature alignment” is selected in column 6.

Target denominator (column 10)

This column only appears if “Intensity” is selected in column 7.
If you select “Other, please specify,” provide a label for the metric.

Base year (column 11)

The base year is the year against which you are comparing your emissions reduction target.
If you have a year-on-year rolling target, the base year will be the previous reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
You cannot have a base year that is in the future.

Figure in base year (column 12)

Enter the figure in the base year covered by the target.
The figure provided should be in the metric (or target numerator if intensity) provided in column 9.
If your target is an intensity target, note that the base year emissions intensity figure should be calculated by dividing the base year emissions covered by the target by the intensity metric denominator.

Percentage of portfolio emissions covered by the target (column 13)

Enter the percentage of total emissions in the portfolio selected in column 3 that is covered by the target. E.g., if a banking portfolio is selected in column 3, the company should report the percentage of total banking portfolio emissions covered by the target.

Monetary metric for portfolio coverage (unit currency as reported in C0.4) (column 14)

If you use a monetary metric as the primary method to define portfolio coverage, select the metric you use.

Percentage of portfolio covered by the target, using a monetary metric (column 15)

Enter the percentage of your portfolio that is covered by the target.
The percentage provided should be calculated based on the metric provided in column 14.

Frequency of target reviews (column 16)

Select the frequency for how often you review your target.

Interim target year (column 17)

Enter the target year of the interim target.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.

Figure in interim target year (column 18)

Enter the figure in the interim year covered by the target.
If the interim year is in the past, enter the measured figure.
If the interim year is in the future, enter the figure you expect to achieve in the interim year.
The figure provided should be in the metric (or target numerator if intensity) provided in column 9.
If your target is an intensity target, note that the intensity figure should be calculated by dividing the emissions covered by the target by the intensity metric denominator.

Target year (column 19)

If you have a year-on-year rolling target, the target year will be the reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.

Figure in target year (column 20)

Enter the targeted figure you expect to achieve in target year.
The figure provided should be in the metric (or target numerator if intensity) provided in column 9.
If your target is an intensity target, note that the intensity figure should be calculated by dividing the emissions covered by the target by the intensity metric denominator.

Figure in reporting year (column 21)

Enter the corresponding figure in the reporting year covered by the target.
The figure provided should be in the metric (or target numerator if intensity) provided in column 9.
If your target is an intensity target, note that the intensity figure should be calculated by dividing the emissions covered by the target by the intensity metric denominator.

% of target achieved relative to base year [auto-calculated] (column 22)

This column will be auto-calculated in the ORS.
The target’s percentage completion compared with the base year will be calculated from the “Figure in base year” (column 12), “Figure in target year” (column 20), and the “Figure in reporting year” (column 21) columns. Ensure you have entered data into these columns.
Values greater than 100 indicate that you have exceeded your target.

Aggregation weighting used (column 23)

This column only appears if “Portfolio coverage” or “Portfolio temperature alignment” is selected in column 6.
If you disclose a Portfolio coverage or Portfolio temperature alignment target, select the aggregation weighting used.

- Weighted average temperature score (WATS): Temperature scores are allocated based on portfolio weights.
- Total emissions weighted temperature score (TETS): Temperature scores are allocated based on historical emission weights using total company emissions.
- Market owned emissions weighted temperature score (MOTS): Temperature scores are allocated based on an equity ownership approach.
- Enterprise owned emissions weighted temperature score (EOTS): Temperature scores are allocated based on an enterprise ownership approach.
- EV + cash emissions weighted temperature score (ECOTS): Temperature scores are allocated based on an enterprise value (EV) plus cash & equivalents ownership approach.
- Total assets emissions weighted temperature score (AOTS): Temperature scores are allocated based on a total assets ownership approach.
- Revenue owned emissions weighted temperature score (ROTS): Temperature scores are allocated based on the share of revenue.

If you select “Other, please specify”, specify the aggregation weighting used

Proportion of portfolio emissions calculated in the reporting year based on asset level data (column 24)

This column only appears if you selected “Sectoral Decarbonization Approach (SDA)” or “Portfolio emissions” in column 6 “Target type”.
Indicate the proportion of portfolio emissions calculated in the reporting year based on asset level data (i.e. not based on modelled data).
Details on how to calculate financed emissions for the different asset classes can be found in ‘Global GHG Accounting & Reporting for the Financial Industry’ (see page 41).

Proportion of the temperature score calculated in the reporting year based on company targets (column 25)

This column only appears if you selected “Portfolio temperature alignment” as target type in column 6.
Indicate the proportion of the temperature score calculated in the reporting year based on company targets (i.e. not based on a default score for the company).
This column is only relevant for portfolio temperature alignment targets. Further guidance on these and the process of setting a portfolio temperature alignment target can be found in the SBTi ‘Financial-Sector-Science-Based-Targets-Guidance’ (see page 85).

Target status in reporting year (column 26)

New - Select this option for targets that have been set in the reporting year and are still in progress.
Underway - Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
Achieved - Select this option for targets that have been achieved or exceeded in the reporting year.
Expired - Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
Revised - Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 13 in the reporting year, for example due to a recalculation of the base year emissions intensity or a change to the target year.
Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain (including target coverage)” column.

Is this a science-based target? (column 27)

This column only appears if “Banking” or “Investing” is selected in column 3.
Refer to the CDP Technical Note on Science-Based Targets for what qualifies as a science-based target and how to assess your target against the Science Based Targets initiative’s criteria.
Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practice in science-based target setting. Select this option only if the target has been approved by the SBTi.
Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a target and has self-assessed it to be science-based, and it has been submitted to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based.
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years – Not all companies have had their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not yet submitted it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based. If you are currently in the process of revising your target to meet SBTi criteria, indicate this by selecting “No, but we anticipate setting one in the next 2 years."
Yes, we consider this a science-based target, it has been set in line with the Glasgow Financial Alliance for Net Zero (GFANZ) commitments, and we have committed to seek validation by, or it is currently being reviewed by, the Science Based Targets initiative – Many financial institutions committed to accelerating the decarbonization of the economy do so by joining the GFANZ coalition and by primarily setting targets based on the GFANZ commitments. If your company has set such a target and has self-assessed it to be science-based, and it has been submitted to the SBTi for validation, or you are in the process of doing so, you should select this option.
Yes, we consider this a science-based target, and it has been set in line with the Glasgow Financial Alliance for Net Zero (GFANZ) commitments, but we have not committed to seek validation by the Science Based Targets initiative within the next two years – Many financial institutions committed to accelerating the decarbonization of the economy do so by joining the GFANZ coalition and by primarily setting targets based on the GFANZ commitments. If your company has set such a target and has self-assessed it to be science-based, but you have not committed to seek validation by SBTi, you should select this option.
No, but we are reporting another target that is science-based – Another target (absolute or intensity) disclosed is science-based, either in another row in this table, or in C4.1b.
No, but we anticipate setting one in the next 2 years – While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
No, and we do not anticipate setting one in the next 2 years – No science-based targets have been set and there are no plans in place to set one in the next 2 years.

Target ambition (column 28)

This column only appears if you select any “Yes” option in column 27 “Is this a science-based target?”.
Select the level of ambition of your science-based target. Note that as of July 2021 the SBTi currently requires Scope 1 and 2 targets to be consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures, and Scope 3 targets to be consistent with the level of decarbonization required to keep global temperature increase to well-below 2°C compared to pre-industrial temperatures.

Please explain target coverage and identify any exclusions (column 29)

If the target is not portfolio-wide provide further details of your target coverage in this column.
You can use this column to identify where you have a financial year or average year based target.
If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.

Additional information

Financial institutions can go further once they have calculated portfolio impact metrics by using the metrics to set targets for reducing their climate change impact and to inform actions they can take to reduce their impact. Reporting on progress through effective environmental disclosures is important at every stage of the journey.
There are a number of methodologies organizations in the financial sector can use to set and/or communicate portfolio targets. Some resources that may help you set and/or communicate a target include:
- SBTi – Financial Sector Science-Based Targets Guidance
- Net-Zero Asset Owner Alliance – Target Setting Protocol
- Net-Zero Banking Alliance – Guidelines for Climate Target Setting
- IIGCC – Paris Aligned Investment Initiative

Other climate-related targets

(C4.2) Did you have any other climate-related targets that were active in the reporting year?

Change from last year

No change

Rationale

Emissions reduction targets are not the only type of relevant targets that organizations use to drive change. CDP asks this question to allow companies to report climate goals separate from emissions reductions, recognizing that there are multiple types of targets.

Connection to frameworks

TCFD

Metrics & Targets recommended disclosure a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

Metrics & Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

Response options

Select all that apply from the following options:

Target(s) to increase low-carbon energy consumption or production
Target(s) to reduce methane emissions
Net-zero target(s)
Other climate-related target(s)
No other climate-related targets

Requested content

Note for oil and gas and coal sectors:

If you have a methane-specific emissions reduction target that was not reported in C4.1a/b, select “Target(s) to reduce methane emissions”. You will then receive a follow up question C4.2b where you can provide details of your methane-specific emissions reduction target.
If you engage in oil and gas or coal mining activities and have not selected “Target(s) to reduce methane emissions” in this question, you will receive a follow up question C-CO4.2d/C-OG4.2d requesting information on why you do not have a methane-specific emissions reduction target and will be asked to forecast how your methane emissions will change.
If methane emissions are not applicable to your organization, you will be given the opportunity to explain this in C-CO4.2d/C-OG4.2d.

Explanation of terms

Target to reduce methane emissions, or “methane-specific target” is any target to reduce specifically methane (CH₄) emissions e.g. reduction of leakage, venting or flaring of methane.
Net-zero target: the SBTi Net-Zero Standard defines corporate net-zero as:
1. reducing Scope 1, 2 and 3 emissions to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways and;
2. neutralizing any residual emissions at the net-zero target date and any GHG emissions released into the atmosphere thereafter.

(C4.2a) Provide details of your target(s) to increase low-carbon energy consumption or production.

Question dependencies

This question only appears if you select “Target(s) to increase low-carbon energy consumption or production” in response to C4.2.

Change from last year

Modified guidance

Rationale

Targets related to increasing low-carbon energy consumption or production can be an important element of organizations’ strategy to reduce their emissions.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Metrics & Targets recommended disclosure a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

Metrics & Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.

S&P Global Corporate Sustainability Assessment

Climate-Related Targets

TCFD Disclosure

RE100

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.

Target reference number	Year target was set	Target coverage	Target type: energy carrier	Target type: activity	Target type: energy source
1	2	3	4	5	6
Low1 – Low100	Numerical field [enter a number between 1900- 2023]	Select from: Company-wide Business division Business activity Site/facility Country/area/region Product level Other, please specify	Select from: Electricity Heat Steam Cooling All energy carriers Other, please specify	Select from: Consumption Production	Select from: Low-carbon energy source(s) Renewable energy source(s) only

Base year	Consumption or production of selected energy carrier in base year (MWh)	% share of low-carbon or renewable energy in base year	Target year	% share of low-carbon or renewable energy in target year	% share of low-carbon or renewable energy in reporting year	% of target achieved relative to base year [auto-calculated]
7	8	9	10	11	12	13
Numerical field [enter a number between 1900- 2023]	Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Numerical field [enter a number between 2018- 2100]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field

Target status in reporting year	Is this target part of an emissions target?	Is this target part of an overarching initiative?	Please explain target coverage and identify any exclusions	Plan for achieving target, and progress made to the end of the reporting year	List the actions which contributed most to achieving this target
14	15	16	17	18	19
Select from: New Underway Achieved Expired Revised Replaced Retired	Text field [maximum 2,400 characters] [Emissions reduction target ID]	Select all that apply: RE100 Science Based Targets initiative No, it's not part of an overarching initiative Other, please specify	Text field [maximum 2,400 characters]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add Row]

Requested content

General

If you are a member of the RE100 initative, you can use this question to self-report your progress towards achieving your RE100 target. Note that RE100 will use the data you report in module C8 (Energy) to come to its own assessment of your progress towards your RE100 target. If you have interim targets, they can be reported in this question in additional rows.
If you have a renewable electricity procurement target approved by the SBTi, you can report progress towards achieving that target in this question.

Target reference number (column 1)

Select a unique target reference from the drop-down menu provided to track progress against this target in subsequent reporting years.

Year target was set (column 2)

Enter the year in which your company set the target.
This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
For year-on-year rolling targets, enter the year that you first set the target. This can be before the base year.
If the target was set based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.

Target coverage (column 3)

If the target applies to the whole company, select “Company-wide”. Members of the RE100 initiative should select this option to report their RE100 target. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column. E.g. if your target applies only to your European operations, select “Country/area/region” in this column and specify the country/area/region in the column “Please explain target coverage and identify any exclusions”

Target type: energy carrier (column 4)

Select the energy carrier to which your target relates.
If your target relates to electricity, heat, steam and cooling combined, select “All energy carriers”
If your target relates to multiple, but not all, energy carriers, select “Other, please specify” and indicate the energy carriers your target relates to.
Members of the RE100 initiative should select “Electricity” to report their RE100 target.

Target type: activity (column 5)

Members of the RE100 initiative should select “Consumption” in this column to report their RE100 target.

Target type: energy source (column 6)

Select whether the target relates to increasing consumption or production of low-carbon energy, or of renewable energy specifically. Definitions are provided in the explanation of terms below.
Members of the RE100 initative should select “Renewable energy source(s) only” to report their RE100 target.

Base year (column 7)

The base year is the year against which you are comparing your target.
The base year cannot be after the reporting year.
For RE100 targets, the base year is usually the year that your organization committed to the RE100 initiative. This may be the same as the “Year target was set” (column 2).
If you have a year-on-year rolling target, the base year will be the previous reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.

Consumption or production of selected energy carrier in base year (MWh) (column 8)

Enter the absolute base year value for the target in megawatt hours (MWh). Note that this figure should be consistent with your selections in columns 3-6.
E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, enter in MWh the absolute renewable electricity consumed by your European operations in 2015 in this column.
E.g. for RE100 members, if your company-wide RE100 target is to achieve 100% renewable electricity consumption for your entire operations by a target year of 2025, enter in MWh the absolute renewable electricity consumed across all of your operations in the base year (i.e. the year that your organization committed to the RE100 intiaitve as specified in column 7).
If your target relates to multiple energy carriers, enter the total MWh in the base year for all energy carriers.

% share of low-carbon or renewable energy in base year (column 9)

Enter percentage share of low-carbon or renewable energy in the base year covered by the target.
This is the low-carbon or renewable energy in the base year covered by the target (reported in column 8) as a percentage of the total energy in the base year covered by the target.
E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, and in 2015 the renewable proportion of the total electricity consumed by your European operations was 40%, you should enter 40 in this column.
E.g. for RE100 members, if your company-wide RE100 target is to achieve 100% renewable electricity consumption for your entire operations by a target year of 2025, and the renewable proportion of the total electricity consumed across all of your operations in the base year (i.e. the year that your organization committed to the RE100 intiaitve as specified in column 7) was 60%, you should enter 60 in this column.

Target year (column 10)

Enter the year that the target ends. For example, if the target is to increase renewable energy production by 200% by 2030, the target year is 2030.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
You should not report any target that was achieved before the start of the reporting year.

% share of low-carbon or renewable energy in target year (column 11)

Enter the percentage share of low-carbon or renewable energy covered by the target to be achieved in the target year. This indicates your target ambition.
E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, enter 100 in this column.
Members of the RE100 initiative should enter “100” in this column to report their RE100 target.

% share of low-carbon or renewable energy in reporting year (column 12)

Enter the percentage share of low-carbon or renewable energy covered by the target in the reporting year.
E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, and in the reporting year the renewable proportion of the total electricity consumed by your European operations was 80%, you should enter 80 in this column.
If you are a member of the RE100 initiative, this column allows you to self-report progress against achieving your RE100 target. Note that RE100 will use the data you report in module C8 (Energy) to come to its own assessment of your progress towards your RE100 target.
E.g. for RE100 members, if your company-wide RE100 target is to achieve 100% renewable electricity consumption for your entire operations by a target year of 2025, and in the reporting year the renewable proportion of the total electricity consumed across all of your operations was 90%, you should enter 90 in this column.

% of target achieved relative to base year [auto-calculated] (column 13)

This column will be auto-calculated in the ORS.
The target’s percentage completion compared with the base year will be calculated from the “% share of low-carbon or renewable energy in base year” (column 9), ‘% share of low-carbon or renewable energy in target year” (column 11), and “% share of low-carbon or renewable energy in reporting year” (column 12) columns. Ensure you have entered data into these columns.

E.g. if your target is to achieve 100% renewable electricty consumption in your European operations by 2025 compared with 40% renewable electricity consumption in a base year of 2015, and in the reporting year you achieved 80% renewable electricty consumption, this column will display 66 as you have achieved 66% of your targeted increase in renewable electricty compared with the base year.
Negative values indicate a decrease in low carbon or renewable energy consumption or production compared to the base year.
Values greater than 100 incidate that you have exceeded your target.
If you are a member of the RE100 initiative, note that this column is not used to assess progress against your RE100 target. The RE100 target is considered to be achieved when the % share of renewable electricity in the reporting year is equal to 100%.

Target status in reporting year (column 14)

New – Select this option for targets that have been set in the reporting year and are still in progress.
Underway – Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
Achieved – Select this option for targets that have been achieved or exceeded in the reporting year.
Expired – Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
Revised – Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 12 in the reporting year, for example due to a recalculation or a change to the target year.
Replaced – Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
Retired – Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain target coverage and identify any exclusions” column.

Is this target part of an emissions target? (column 15)

If the target is part of an emissions reduction target reported in C4.1a or C4.1b, enter the emissions reduction target reference number here.

Is this target part of an overarching initiative? (column 16)

If the target is part of an overarching initaive, select the initative or select “Other, please specify” to outline the initiative.
If you are a member of the RE100 initiative, ensure to select “RE100” here.

Please explain target coverage and identify any exclusions (column 17)

If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”), provide further details of your target coverage in this column. E.g. if you have selected “Country/area/region” in column 3, please specify which countries/areas/regions your target covers.
If the target relates to low-carbon or renewable energy consumption, indicate whether the target covers all low-carbon or renewable energy consumption (i.e., the consumption of both self-generated and purchased/acquired energy) or only the consumption of purchased/acquired low-carbon or renewable energy.
If you reported a renewable energy consumption or production target in C4.2 last year and are reporting progress against the same target this year, indicate this in this column.
You can use this column to identify where you have a financial year or average year based target.
If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.

Plan for achieving target, and progress made to the end of the reporting year (column 18)

This column is only presented if “Underway”, Revised”, or “New” is selected in column 14 “Target status in reporting year”.
Describe how you plan to achieve the target, and list the actions which have contributed most to any progress towards the target.
If you are not on track to achieve the target, explain how you plan to get back on track.

List the actions which contributed most to achieving this target (column 19)

This column is only presented if “Achieved” is selected in column 14 “Target status in reporting year”.

Explanation of terms

Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels”.

Example response

The table below shows three low-carbon energy target examples:

1. Low 1: a company-wide RE100 target to increase the proportion of electricity consumed from renewable sources from 30% to 100% within 10 years from 2015. This target is part of the company’s absolute Scope 2 emissions reduction target reported in C4.1a.
2. Low 2: a company-wide target to increase the proportion of heat consumed from low-carbon sources by 2% per year. This is a year-on-year rolling target that was set in 2010, therefore the target year is the current reporting year (2020), and the base year is the previous reporting year (2019).
3. Low 3: a company-wide target set in 2015 to double renewable electricity production from 20% to 40% by 2025.The target status is revised in the reporting year due to bringing forward the target year from 2030 to 2025.

Target reference number	Year target was set	Target coverage	Target type: energy carrier	Target type: activity	Target type: energy source	Base year	Consumption or production of selected energy carrier in base year (MWh)	% share of low-carbon or renewable energy in base year
Low 1	2015	Company-wide	Electricity	Consumption	Renewable energy source(s) only	2015	87,000	30
Low 2	2010	Company-wide	Heat	Consumption	Low-carbon energy source(s)	2019	350	19
Low 3	2015	Company-wide	Electricity	Production	Renewable energy source(s) only	2015	9,200	20

Target year	% share of low-carbon or renewable energy in target year	% share of low-carbon or renewable energy in reporting year	% of target achieved relative to base year [auto-calculated]	Target status in reporting year	Is this target part of an emissions target?	Is this target part of an overarching initiative?
2025	100	70	57	Underway	Abs 2	RE100
2020	21	21.5	125	Achieved	No	No, it’s not part of an overarching initiative
2025	40	34	70	Revised	No	No, it’s not part of an overarching initiative

Please explain target coverage and identify any exclusions	Plan for achieving target, and progress made to the end of the reporting year	List the actions which contributed most to achieving this target
In 2015 we joined the RE100 initiative and set a company-wide target to achieve 100% renewable electricity consumption within 10 years, from a base year of 30% renewable electricity consumption. This target is part of our absolute Scope 2 emissions reduction target Abs 2.	We have started a process of purchasing an increasing amount of EACs to cover the electricity we use where these are available. Elsewhere we are planning on implementing a green tariff agreement to source renewable electricity and implementing energy efficiency measures to cut down our consumption of electricity and thus increase our proportion of renewables consumption. By the reporting year, we had achieved 70% renewable electricity consumption, thus achieved 57% of our targeted increase in renewable electricity compared with the base year. The target is still underway.	N/A
In 2010 we set a company-wide year-on-year target to increase the proportion of heat consumed from low-carbon sources by 2% per year. This target is company-wide and covers all our operations	N/A	Installing low-carbon sources of heat such as ground source heat pumps has been key action in fulfilling our target. Increasing energy efficiency and improving insulation have also contributed.
In 2015 we set a 15-year target to double our share of renewable electricity production by 2030, compared to 2015 levels. The target covers all our operations and is company-wide.	In the reporting year we revised this target to bring the target year forwards to 2025, as due to the decreased costs of solar PV equipment, we are already 70% of the way to achieving this target and should now achieve it before 2025. We plan to continue bringing additional solar generation facilities online and are making additional investments into our existing facilities to improve their efficiency.	N/A

(C4.2b) Provide details of any other climate-related targets, including methane reduction targets.

Question dependencies

This question only appears if you select “Other climate-related target(s)” or “Target(s) to reduce methane emissions” in response to C4.2.

Change from last year

Minor change

Rationale

Other climate-related targets can be an important element of organizations’ strategy to reduce their emissions. This question increases transparency of corporate environmental commitments.

Connection to frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Metrics & Targets recommended disclosure a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

Metrics & Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.

S&P Global Corporate Sustainability Assessment

Climate-Related Targets

TCFD Disclosure

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.

Target reference number	Year target was set	Target coverage	Target type: absolute or intensity	Target type: category	Metric (target numerator if reporting an intensity target)	Target denominator (intensity targets only)
1	2	3	4	5a	5b	6
Oth1 – Oth100	Numerical field [enter a number between 1900- 2023]	Select from: Company-wide Business division Business activity Site/facility Country/area/region Product level Other, please specify	Select from: Absolute Intensity	Select from: Energy productivity Energy consumption or efficiency Renewable fuel production Renewable fuel consumption Waste management Resource consumption or efficiency Low-carbon vehicles Low-carbon buildings Land use change Methane reduction target Fossil fuel reduction target Engagement with suppliers Engagement with customers R&D investments Green finance Other, please specify	Select from drop-down options below	Select from drop-down options below

Base year	Figure or percentage in base year	Target year	Figure or percentage in target year	Figure or percentage in reporting year	% of target achieved relative to base year [auto-calculated]
7	8	9	10	11	12
Numerical field [enter a number between 1900- 2023]	Numerical field [enter a number from 0- 999,999,999,999,999 using a maximum of 10 decimal places and no commas]	Numerical field [enter a number between 2018- 2100]	Numerical field [enter a number from 0- 999,999,999,999,999 using a maximum of 10 decimal places and no commas]	Numerical field [enter a number from 0- 999,999,999,999,999 using a maximum of 10 decimal places and no commas]	Percentage field

Target status in reporting year	Is this target part of an emissions target?	Is this target part of an overarching initiative?	Please explain target coverage and identify any exclusions	Plan for achieving target, and progress made to the end of the reporting year	List the actions which contributed most to achieving this target
13	14	15	16	17	18
Select from: New Underway Achieved Expired Revised Replaced Retired	Text field [maximum 2,400 characters [Emissions reduction target ID]	Select all that apply: EP100 EV100 Below50 – sustainable fuels Science Based Targets initiative – approved supplier engagement target Science Based Targets initiative – approved customer engagement target Science Based targets initiative - other Reduce short-lived climate pollutants Remove deforestation Low-Carbon Technology Partnerships initiative No, it’s not part of an overarching initiative Other, please specify	Text field [maximum 2,400 characters]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add Row]

Metric (target numerator if reporting an intensity target) drop-down options:

Select one of the following options:

Energy productivity

GDP
USD ($) value-added
units of revenue
ounces of gold
ounces of platinum
metric tons of aggregate
metric tons of aluminum
metric tons of steel
metric tons of cement
metric tons of cardboard
metric tons of product
metric tons of ore processed
square meters
kilometers
passenger kilometers
revenue passenger kilometers
liters of product
units of production
units of service provided
square feet
megawatt hours (MWh)
barrel of oil equivalents (BOE)
ton of oil equivalents (TOE)
ton of coal equivalents (TCE)
Other, please specify

Energy consumption or efficiency

kWh
MWh
GJ
million Btu
boe
toe
tce
Gcal
Other, please specify

Renewable fuel production

metric tons of solid biomass
liters of liquid biofuel
cubic meters of biogas
cubic meters of hydrogen
Other, please specify

Renewable fuel consumption

metric tons of solid biomass
liters of liquid biofuel
cubic meters of biogas
cubic meters of hydrogen
Percentage of total fuel consumption that is from renewable sources
Other, please specify

Waste management

metric tons of waste diverted from landfill
metric tons of waste recycled
metric tons of waste reused
metric tons of waste generated
Percentage of total waste generated that is recycled
Percentage of sites operating at zero-waste to landfill
Other, please specify

Resource consumption or efficiency

Percentage of paper from recycled or certified sustainable sources
metric tons of paper consumed
Percentage of plastic form recycled sources
metric tons of plastic consumed
Percentage of packaging from recycled or certified sustainable sources
metric tons of packaging consumed
Other, please specify

Low-carbon vehicles

Percentage of low-carbon vehicles in company fleet
Percentage of low-carbon vehicles sold
Percentage of company fleet using biofuel
Percentage of battery electric vehicles in company fleet
Percentage of conventional hybrids in company fleet
Percentage of plug-in hybrids in company fleet
Percentage of fuel cell electric vehicles in company fleet
Percentage of company facilities with electric vehicle infrastructure
Other, please specify

Low-carbon buildings

Percentage of net zero carbon buildings
Percentage of net zero energy buildings
Percentage of buildings with a green building certificate
Other, please specify

Land use change

hectares reforested
hectares afforested
hectares restored
Percent of supply chain compliant with zero gross deforestation
Other, please specify

Methane reduction target

cubic meters of methane vented
cubic meters of methane leaked
cubic meters of methane flared
Total methane emissions in m3
Total methane emissions in CO₂e
Methane leakage rate (%)
Other, please specify

Fossil fuel reduction target

cubic meters of natural gas consumed
metric tons of coal consumed
barrels of oil consumed
Percentage of fossil fuels in the fuel mix
Other, please specify

Engagement with suppliers

Percentage of suppliers (by emissions) disclosing their GHG emissions
Percentage of suppliers (by procurement spend) disclosing their GHG emissions
Percentage of suppliers (by emissions) setting emissions reduction targets
Percentage of suppliers (by procurement spend) setting emissions reductions targets
Percentage of suppliers (by emissions) with a science-based target
Percentage of suppliers (by procurement spend) with a science-based target
Percentage of suppliers (by emissions) actively engaged on climate-related issues
Percentage of suppliers (by procurement spend) actively engaged on climate-related issues
Other, please specify

Engagement with customers

Percentage of customers (by emissions) disclosing their GHG emissions
Percentage of customers (by emissions) setting emissions reduction targets
Percentage of customers (by emissions) with a science-based target
Percentage of customers (by emissions) actively engaged on climate-related issues
Other, please specify

R&D investments

Percentage of annual revenue invested in R&D of low-carbon products/services
US$ invested in R&D of low-carbon products/services
Percentage of R&D budget/portfolio dedicated to low-carbon products/services
Other, please specify

Green finance

Total amount of green bonds outstanding (green bond ratio)
Percentage of green bonds
Total amount of green debt instruments outstanding (green debt ratio)
Percentage of green debt instruments
Green finance raised and facilitated (denominated in currency)
Green investments (denominated in currency)
Percentage of green investments
Other, please specify

Target denominator (intensity targets only) drop-down options:

Select one of the following options:

KWh
MWh
GJ
Btu
boe
toe
tce
Gcal
revenue passenger kilometer
USD($) value-added
square meter
metric ton of aluminum
metric ton of steel
metric ton of cement
metric ton of cardboard
unit revenue
unit FTE employee
unit hour worked
metric ton of product
liter of product
unit of production
unit of service provided
square foot
kilometer
passenger kilometer
megawatt hour (MWh)
barrel of oil equivalent (BOE)
vehicle produced
metric ton of ore processed
ounce of gold
ounce of platinum
metric ton of aggregate
billion (currency) funds under management
hectare
metric ton of waste
liter of fuel
year
total amount of bonds outstanding at the end of the reporting period
total amount of debt outstanding at the end of the reporting period
Other, please specify

Requested content

General

If you are a member of the EP100 and/or EV100 initiative, you can use this question to report on your progress towards achieving your target.
To correctly report the progress against a stabilization target, i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), you should treat it as a target that is reset every year. In this case, “base year” corresponds to the beginning of the reporting year where your indicator is reset to zero for that year, and “target year” corresponds to the end of the reporting year where you report the performance achieved in the reporting year.

Target reference number (column 1)

Select a unique target reference from the drop-down menu provided to identify this target in subsequent questions and to track progress against this target in subsequent reporting years.

Year target was set (column 2)

Enter the year in which your company has set the target.
This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
For year-on-year rolling targets, enter the year that you first set the target. This can be before the base year.
If the target was set based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.

Target coverage (column 3)

If your target applies to the whole organization, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
If your target does not relate to the whole organization, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column.
E.g. if your target relates applies only to your office-based operations, select “Business activity”.

Target type: absolute or intensity (column 4)

Select whether the target is an absolute or an intensity target, regardless of whether you measure it in absolute (e.g. MWh) or relative (%) values. E.g. if your target is to increase the percentage of low-carbon vehicles in the company fleet, select “absolute”.

Target type: category (column 5a)

Note that a selection must be made for both column 5a and column 5b. Your data will not be saved if either column is left blank.

Metric (target numerator if reporting an intensity target) (column 5b)

Select the metric relevant to the target – for intensity targets this will be the target numerator.
Note that only the options relevant to the target category selected in column 5a will be displayed in the ORS.
Note that a selection must be made for both column 5a and column 5b. Your data will not be saved if either column is left blank.

Target denominator (intensity targets only) (column 6)

Select the metric denominator of your climate-related intensity target. This column will only appear if you selected “Intensity” in column 4.

Base year (column 7)

The base year cannot be after the reporting year.
The base year is the year against which you are comparing your target
If you have a year-on-year rolling target, your base year will be the previous reporting year.
If you have a stabilization target, i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), your base year will be the current reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.

Figure or percentage in base year (column 8)

Enter the base year value for your target. Note that this will be a percentage if you have selected any percentage option as your metric in column 5b.
E.g. if your target is to increase the percentage of low-carbon vehicles in the company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet in a base year of 2016, enter 40 in this column.
If you have a stabilization target i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), enter 0 (or 0%), as your performance for this target is reset at the beginning of every reporting year.

Target year (column 9)

Enter the year that the target ends. For example if the target is to reduce methane emissions by 50% by 2030, the target year is 2030.
If you have a year-on-year rolling target or stabilization target, your target year will be the reporting year.
If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain target coverage and identify any exclusions” column.
If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify in the “Please explain target coverage and identify any exclusions” column.
You should not report any target that was achieved before the start of the reporting year.

Figure or percentage in target year (column 10)

Enter the target year value for your target.
E.g. if your target is to increase the percentage of low-carbon vehicles in your company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet in a base year of 2016, enter 60 in this column.

Figure or percentage in reporting year (column 11)

Enter the reporting year value for your target.
E.g. if your target is to increase the percentage of low-carbon vehicles in your company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet a base year of 2016, and in the reporting year you have achieved 55% low-carbon vehicles in the company fleet, enter 55 in this column.
If you are reporting a stabilization target i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), enter the value achieved at the end of the reporting year (e.g. 100% if you managed to maintain your target for the share of zero waste to landfill sites).

% of target achieved relative to base year [auto-calculated] (column 12)

This column will be auto-calculated in the ORS.
The target’s percentage completion compared with the base year will be calculated from the “Figure or percentage in base year” (column 8), “Figure or percentage in target year” (column 10), and the “Figure or percentage in reporting year” (column 11) columns. Ensure you have entered data into these columns.

E.g. if your target is to increase the percentage of low-carbon vehicles in your company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet in a base year of 2016, and in the reporting year you have achieved 55% low-carbon vehicles in the company fleet, this column will display 75, as you have achieved 75% of your targeted % increase in low-carbon vehicles compared with the base year
Negative values indicate that you have made negative progress towards your target. E.g. in the above example, that you have reduced the percentage of low-carbon vehicles in the company fleet, when compared with the base year.
Values greater than 100% indicate that you have exceeded your target.

Target status in reporting year (column 13)

New - Select this option for targets that have been set in the reporting year and are still in progress.
Underway - Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
Achieved - Select this option for targets which have been achieved or exceeded in the reporting year.
Expired - Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
Revised - Select this option for targets that were set before the reporting year but a revision has been made in the reporting year, for example due to a recalculation or a change to the target year.
Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain target coverage and identify any exclusions” column.

Is this target part of an emissions target? (column 14)

If the target is part of an emissions reduction target reported in C4.1a or C4.1b, please enter the emissions reduction target reference number here.

Is this target part of an overarching initiative? (column 15)

If the climate-related target is part of an overarching initiative, select the initiative or select “Other, please specify” to outline the initiative.

Please explain target coverage and identify any exclusions (column 16)

If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”, provide further details of your target coverage in this column. E.g. if you have selected “Country/area/region” in column 3, please specify which countries/areas/regions your target covers.
You can use this column to identify where you have a financial year or average year based target.
If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.

Plan for achieving target, and progress made to the end of the reporting year (column 17)

This column is only presented if “Underway”, “Revised”, or “New” is selected in column 13 “Target status in reporting year”.
Describe how you plan to achieve the target, and list the actions which have contributed most to any progress towards the target.
If you are not on track to achieve the target, explain how you plan to get back on track.

List the actions which contributed most to achieving this target (column 18)

This column is only presented if “Achieved” is selected in column 13 “Target status in reporting year”.

Note for oil and gas and coal sector:

If you have a methane-specific emissions reduction target that was not reported in C4.1a/b, provide details of your methane-specific emissions reduction target in this question by selecting “Methane reduction target” in column 5a.

(C4.2c) Provide details of your net-zero target(s).

Question dependencies

This question only appears if you select “Net-zero target(s)” in response to C4.2.

Change from last year

Minor change

Rationale

Reaching net-zero emissions at the global level is a central goal of the climate action movement. Corporate net-zero targets are a powerful opportunity for companies to go beyond science-based emissions reductions by also contributing to CO2 removal from the atmosphere and accelerating climate action outside their value chains. This question provides investors and other data users with transparency on your organization’s commitment to achieving net-zero emissions.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

Climate-Related Targets

Net-Zero Commitment

Net-Zero Targets for Financed Emissions

TCFD Disclosure

NZAM (FS only)

General Commitment

Response options

Please complete the following table:

Target reference number	Target coverage	Absolute/intensity emission target(s) linked to this net-zero target	Target year for achieving net zero	Is this a science-based target?	Please explain target coverage and identify any exclusions	Do you intend to neutralize any unabated emissions with permanent carbon removals at the target year?	Planned milestones and/or near-term investments for neutralization at target year	Planned actions to mitigate emissions beyond your value chain (optional)
1	2	3	4	5	6	7	8	9
Select from: NZ1-NZ100	Select from: Company-wide Business division Business activity Site/facility Country/area/region Banking (Bank) [FS only] Investing (Asset manager) [FS only] Investing (Asset owner) [FS only] Insurance underwriting (Insurance company) [FS only] Product-level Other, please specify	Select all that apply: Abs1-Abs100 Int1-Int100 Por1-Por100 [FS only] Not applicable	Numerical field [enter a number between 2018- 2100]	Select from drop-down options below	Text field [maximum 2,400 characters]	Select from: Yes No Unsure	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

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Is this a science-based target? drop-down options:

Yes, and this target has been approved by the Science Based Targets initiative
Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years
Yes, we consider this a science-based target, but we have not committed to seek validation of this target by the Science Based Targets initiative within the next two years
No, but we are reporting another target that is science-based
No, but we anticipate setting one in the next two years
No, and we do not anticipate setting one in the next two years

Requested content

Target reference number (column 1)

Select a unique target reference from the drop-down menu provided to track progress against this target in subsequent reporting years.

Target coverage (column 2)

If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
[Financial Services only] Some of the target coverage options shown are driven by the organizational activities you selected in C-FS0.7
If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column; for example, if your target applies only to your European operations, select “Country/area/region” in this column and specify the country/area/region in the column “Please explain target coverage and identify any exclusions”

Absolute/intensity emission target(s) linked to this net-zero target (column 3)

If the target is linked to an emission reduction target(s) reported in C4.1a or C4.1b, select the relevant target reference number(s) here.
[Financial Services only] If the target is linked to a portfolio target(s) reported in C-FS4.1d, select the relevant target reference number(s) here.
You should generally be reporting at least one near term and one long-term absolute/intensity emission target linked to your net-zero target. Ambitious near-term emissions reductions are the most important component of any net-zero target, but setting and reporting long-term emission reductions targets is also important as these targets will specify the amount of abatement (emission reductions) that your company intends to reach (with the remainder to be neutralized) to reach a state of net-zero. If you have not reported any emission reduction targets in C4.1a or C4.1b that are linked to this net-zero target, please select “Not applicable” and explain why you are not reporting any linked emission targets in the column “Please explain target coverage and identify any exclusions”.

Target year for achieving net zero (column 4)

If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain target coverage and identify any exclusions” column.

Is this a science-based target? (column 5)

Please refer to the SBTi’s Net-Zero Standard for what qualifies as a science-based net-zero target and how to assess your target against the SBTi’s Net-Zero Standard Criteria.
Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their net-zero targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers net-zero targets approved by the initiative to reflect best practice in science-based net-zero target setting. Select this option only if the net-zero target has been approved by the SBTi.
Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a net-zero target and has self-assessed it to be science-based, and it has been submitted it to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your net-zero target to be science-based.
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years – If your company has set a net-zero target, has self-assessed it to be science-based and intends to submit it to the SBTi for validation in the next two years, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your net-zero target to be science-based. If you are currently in the process of revising your net-zero target to meet the SBTi’s Net-Zero Standard Criteria, indicate this by selecting “No, but we anticipate setting one in the next 2 years.
Yes, we consider this a science-based target, but we have not committed to seek validation of this target by the Science Based Targets initiative within the next two years – Not all companies intend to have their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not committed to submit it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you consider your target to be science-based.
No, but we are reporting another target that is science-based – Another net-zero target disclosed in a different row in this table is science-based.
No, but we anticipate setting one in the next 2 years – While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
No, and we do not anticipate setting one in the next 2 years – No science-based net-zero targets have been set and there are no plans in place to set one in the next 2 years.

Please explain target coverage and identify any exclusions (column 6)

If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”), provide further details of your target coverage in this column; for example, if you have selected “Country/area/region” in column 2, please specify which countries/areas/regions your target covers.
If you have self-assessed your net-zero target to be science-based but it has not been approved by the SBTi, please explain why you consider your target to be science-based.
If you have not reported any emission reduction targets that are linked to this net-zero target, please explain why not.

Do you intend to neutralize any unabated emissions with permanent carbon removals at the target year? (column 7)

Although most companies will reduce emissions by at least 90% through their emissions reduction targets, some residual emissions may remain at the target year.
Indicate whether your organization intends to neutralize these unabated emissions through the permanent removal and storage of carbon from the atmosphere when the net-zero target year is reached. See “Explanation of terms” for more information.

Planned milestones and/or near-term investments for neutralization at target year (column 8)

This column is only presented if “Yes” is selected in column 7.
Indicate the magnitude of emissions that you plan to neutralize in the net-zero target year, and describe any planned milestones and/or near-term investments that demonstrate the integrity of your commitment to neutralize unabated emissions in the target year.
For example, you may be investing or planning to invest into carbon dioxide removal and storage technologies (e.g. Direct Air Capture) in the near-term.

Planned actions to mitigate emissions beyond your value chain (optional) (column 9)

In addition to any neutralization actions described in column 8 (if applicable), describe any actions your organization has taken in the reporting year, or plans to take between the reporting year and net-zero target year, to accelerate the net-zero transition beyond your organization’s value chain. See “Explanation of terms” for more information.
For example, your organization may be purchasing high quality REDD+ carbon credits that will support countries to achieve their Nationally Determined Contributions (NDCs) in the long-term.
If you do not plan to mitigate emissions beyond your value chain as part of your net-zero target, you may leave this column blank.

Explanation of terms

Net-zero target: the SBTi Net-Zero Standard defines corporate net-zero as:
1. reducing Scope 1, 2 and 3 emissions to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways and;
2. neutralizing any residual emissions at the net-zero target date and any GHG emissions released into the atmosphere thereafter.
Neutralization: Measures that companies take to remove carbon from the atmosphere and permanently store it to counterbalance the impact of emissions that remain unabated. Neutralization can occur using removals within or beyond the value chain. (Adapted from the SBTi Beyond Value Chain Mitigation FAQ).
Beyond value chain mitigation: Mitigation action or investments that fall outside of a company’s value chain. This includes activities that avoid or reduce greenhouse gas emissions, and those that remove and store greenhouse gases from the atmosphere. Examples include purchasing high quality, jurisdictional REDD+ carbon credits that support countries in raising the ambition on and, in the long-term, achieving their nationally determined contributions, or investing in carbon dioxide removal (CDR) technologies such as direct air capture (DAC) with geological carbon storage. (Adapted from the SBTi Beyond Value Chain Mitigation FAQ)

Additional information

The Science Based Targets initiative has developed a standard for corporate net-zero targets, to ensure that companies’ net-zero targets translate into action that is consistent with achieving a net-zero world by no later than 2050.

Emissions reduction initiatives

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or implementation phases.

Change from last year

No change

Rationale

The answer to this question enables CDP data users to understand your organization’s commitment to reducing emissions beyond business-as-usual scenario (beyond standard maintenance/replacement activities).

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 13: Climate action

Response options

Select one of the following options:

Requested content

General

It is acknowledged that maintenance activities can have a beneficial impact on carbon emissions. Only activities that have either been part of a defined program of emissions reduction activities or where additional investment beyond standard maintenance/replacement has been made for the purposes of reducing emissions should be reported here.
It is acknowledged that diverse companies often have large number of emissions reduction initiatives operating over varying time periods and scales. You should answer this question in the context of the reporting year. This could include initiatives that have become operational within the reporting year (e.g. installation of new equipment, or instigation of new operational practices) or commitments that have been made in the reporting year (e.g. investments made which are yet to become fully operational).
If you are reporting a market-based Scope 2 figure, you can reflect any renewable energy purchasing policies as a component of emissions reduction activities. Please bear in mind, however, that if you are already buying renewable energy instruments and accounting for them at a zero emissions factor, then emissions reduction activities can only be achieved as “additional purchases” to what you are already doing. Therefore, emissions reduction activities are established by comparing what you have done in the previous year and what you are proposing to do in the future.
Measures taken to reduce Scope 3 emissions may be reported here.
Initiatives do not need to relate to specific targets reported in C4.1a/b.

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO₂e savings.

Question dependencies

This question only appears if you select “Yes” in response to C4.3.

Change from last year

No change

Rationale

This question demonstrates to CDP data users your organization’s progress towards reducing emissions through implementing emissions reduction initiatives.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 13: Climate action

Response options

Please complete the following table:

Stage of development	Number of initiatives	Total estimated annual CO₂e savings in metric tons CO₂e (only for rows marked *)
Under investigation	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
To be implemented*
Implementation commenced*
Implemented*
Not to be implemented

Requested content

Stage of development (column 1)

Report the initiatives in the following stages of development:

- Under investigation: A potential initiative to reduce emissions that is being evaluated but not yet approved by your company during the reporting year.
- To be implemented: An initiative to reduce emissions that has been approved for implementation by your company but its implementation has not yet commenced during the reporting year.
- Implementation commenced: An initiative to reduce emissions was started/activated in the reporting year, but by the end of the reporting period it was not yet fully active/functional in realizing emissions reductions.
- Implemented: An initiative that has fully come into effect in the reporting year e.g. it has become fully operational/functional in realizing CO₂e savings.
- Not to be implemented: A potential initiative to reduce emissions that was evaluated but not pursued by your company during the reporting year.

Companies should report on these stages of development in the context of the reporting year. Unless the project was new to one of the stages of development in the reporting year, it should not be reported.

Number of initiatives (column 2)

Where there are no projects in a stage of development, state 0 (zero). This column should be completed for all rows.

Total estimated annual CO₂e savings in metric tons CO₂e (column 3)

Enter the aggregated estimated annual emissions savings in metric tons CO₂e in column 3 for all initiatives in those stages marked with an * (to be implemented, implementation commenced, and implemented).
It is acknowledged that the CO₂e savings will be an estimate. More detail is requested on individual initiatives (or programs of activity) that have been implemented in the reporting year in C4.3b. Initiatives do not need to relate to specific targets disclosed in the questionnaire.

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Question dependencies

This question only appears if you select “Yes” in response to C4.3.

Change from last year

Modified guidance

Rationale

CDP data users are interested in understanding how you are making progress towards your emissions reduction targets, as well as other emissions-reducing actions undertaken in the reporting year.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 13: Climate action

RE100

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.

Initiative category

Initiative type

Estimated annual CO₂e savings (metric tons CO₂e)

Scope(s) or Scope 3 category(ies) where emissions savings occur

Voluntary/ Mandatory

Annual monetary savings (unit currency – as specified in C0.4)

Investment required (unit currency – as specified in C0.4)

Payback period

Estimated lifetime of the initiative

Comment

Select from:

Energy efficiency in buildings
Energy efficiency in production processes
Waste reduction and material circularity
Fugitive emissions reductions
Low-carbon energy consumption
Low-carbon energy generation
Non-energy industrial process emissions reductions
Company policy or behavioral change
Transportation
Other, please specify

Select from drop-down options below

Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

Select all that apply:

Scope 1
Scope 2 (location-based)
Scope 2 (market-based)
Scope 3 category 1: Purchased goods & services
Scope 3 category 2: Capital goods
Scope 3 category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Scope 3 category 4: Upstream transportation & distribution
Scope 3 category 5: Waste generated in operations
Scope 3 category 6: Business travel
Scope 3 category 7: Employee commuting
Scope 3 category 8: Upstream leased assets
Scope 3 category 9: Downstream transportation and distribution
Scope 3 category 10: Processing of sold products
Scope 3 category 11: Use of sold products
Scope 3 category 12: End-of-life treatment of sold products
Scope 3 category 13: Downstream leased assets
Scope 3 category 14: Franchises
Scope 3 category 15: Investments [does not appear to FS]
Scope 3: Other (upstream)
Scope 3: Other (downstream)

Select from:

Voluntary
Mandatory

Numerical field [enter a number from 0-999,999,999,999,999 using no decimal places, and no commas]

Select from:

<1 year
1-3 years
4-10 years
11-15 years
16-20 years
21-25 years
>25 years
No payback

Select from:

<1 year
1-2 years
3-5 years
6-10 years
11-15 years
16-20 years
21-30 years
>30 years
Ongoing

Text field [maximum 1,500 characters]

[Add Row]

Initiative type drop-down options:

Select one of the following options

Energy efficiency in buildings

Insulation
Maintenance program
Draught proofing
Solar shading
Building Energy Management Systems (BEMS)
Heating, Ventilation and Air Conditioning (HVAC)
Lighting
Motors and drives
Combined heat and power (cogeneration)
Other, please specify

Energy efficiency in production processes

Waste heat recovery
Cooling technology
Process optimization
Fuel switch
Compressed air
Combined heat and power (cogeneration)
Wastewater treatment
Reuse of water
Reuse of steam
Machine/equipment replacement
Automation
Electrification
Smart control system
Motors and drives
Product or service design
Other, please specify

Waste reduction and material circularity

Waste reduction
Product or service design
Product/component/material reuse
Product/component/material recycling
Remanufacturing
Other, please specify

Fugitive emissions reductions

Agricultural methane capture
Agricultural nitrous oxide reduction
Landfill methane capture
Oil/natural gas methane leak capture/prevention
Refrigerant leakage reduction
Carbon capture and storage/utilization (CCS/U)
Other, please specify

Low-carbon energy consumption

Solid biofuels
Liquid biofuels
Biogas
Geothermal
Large hydropower (>25 MW)
Small hydropower (<25 MW)
Hydropower (capacity unknown)
Renewable hydrogen fuel cell
Solar heating and cooling
Solar PV
Solar CSP
Nuclear
Wind
Tidal
Wave
Fossil fuel plant fitted with CCS
Low-carbon electricity mix
Other, please specify

Low-carbon energy generation

Solid biofuels
Liquid biofuels
Biogas
Geothermal
Large hydropower (>25 MW)
Small hydropower (<25 MW)
Hydropower (capacity unknown)
Renewable hydrogen fuel cell
Nuclear
Solar heating and cooling
Solar PV
Solar CSP
Wind
Tidal
Wave
Fossil fuel plant fitted with CCS
Other, please specify

Non-energy industrial process emissions reductions

Process equipment replacement
Process material substitution
Process material efficiency
Carbon capture and storage/utilization (CCS/U)
Other, please specify

Company policy or behavioral change

Supplier engagement
Customer engagement
Site consolidation/closure
Change in purchasing practices
Resource efficiency
Waste management
Other, please specify

Transportation

Business travel policy
Teleworking
Employee commuting
Company fleet vehicle replacement
Company fleet vehicle efficiency
Other, please specify

Requested content

General

Companies are asked to provide information on any emissions reduction initiatives made.
There is no need to record every action – initiatives can be recorded on a programmatic level. Companies with large numbers of initiatives should prioritize those that have the potential to provide a meaningful contribution to emissions reductions.
It is acknowledged that maintenance activities can have a beneficial impact on carbon emissions. Only those activities that have either been part of a defined program of emissions reduction initiatives or where additional investment beyond standard maintenance/replacement has been made for the purposes of reducing emissions should be reported here.
Where initiatives are part of routine maintenance or necessary equipment replacement (e.g. necessary replacement of equipment that has an additional benefit in emissions reduction), enter the additional (premium) costs and additional monetary savings associated with the lower emissions model (if applicable).
It should be noted that not all emissions reduction initiatives carry with them a significant cost – many initiatives, such as resource efficiency, have fairly negligible investment costs yet offer potentially high monetary savings. These initiatives should be included in the table, with the minimal investment required reflected in the “Investment required” column, and by selecting the payback of less than a year option (if this is the case).

Initiative category (column 1)

Select the option from the drop-down list that best describes the initiative. Note that these are broad categories only, with more detailed options provided in the “Initiative type” column.

- Energy efficiency in buildings – Select this option for all energy efficiency initiatives relating to buildings, including those relating to the building fabric (e.g. insulation, draught-proofing, etc.) and those relating to building services (e.g. HVAC, BEMS etc.)
- Energy efficiency in production processes – Select this option for all energy efficiency initiatives relating to processes (e.g. waste heat recovery, process optimization, compressed air, combined heat and power, automation, smart control systems, product/service design to improve energy efficiency etc.)
- Waste reduction and material circularity – Select this option for circular economy and waste reduction initiatives (e.g. reuse, recycling, remanufacturing, product/service design to reduce waste etc.).
- Fugitive emissions reductions – Select this option for initiatives to reduce fugitive emissions (e.g. methane capture, agricultural nitrous oxide reductions, refrigerant leakage reduction etc.)
- Low-carbon energy consumption – Select this option for emissions reduction initiatives relating to increasing low-carbon energy consumption i.e. energy from renewable sources, nuclear plants and fossil-fuel plants fitted with carbon capture and storage. Note that if increasing low carbon energy consumption has been a component of your emissions reduction initiatives please also report the other accompanying information in C6.2, C6.3, C7.5, and Module C8. If you select “Solid biofuels”, “Liquid biofuels”, or "Biogas" you should specify whether any of the biofuels are derived from sustainable biomass and/or if they are being used for bioenergy with carbon capture and storage (BECCS) in the “Comment” column (column 10). Refer to CDP’s Technical note on Biofuels for more information. Members of the RE100 initiative selecting this option should ensure to enter a figure in column 6 “Annual monetary savings”.
- Low-carbon energy generation – Select this option for initiatives relating to the installation of low-carbon energy generating facilities (renewable, nuclear or fossil-fuel plants fitted with carbon capture and storage) at your own site or at others on behalf of your clients. If you select “Solid biofuels”, “Liquid biofuels”, or "Biogas" you should specify whether any of the biofuels are derived from sustainable biomass and/or if they are being used for bioenergy with carbon capture and storage (BECCS) in the “Comment” column (column 10). Refer to CDP’s Technical note on Biofuels for more information. Members of the RE100 initiative selecting this option should ensure to enter a figure in column 6 “Annual monetary savings”.
- Non-energy industrial process emissions reductions – Select this option only for initiatives to reduce emissions from industrial production processes which chemically or physically transform materials (e.g. CO₂ from the calcinations step in cement manufacturing, CO₂ from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting etc.)
- Company policy or behavioral change – Select this option for initiatives relating to a change in company policy (e.g. value chain engagement, a new procurement policy) or an organizational behavioral change (e.g. resource efficiency improvements such as reducing paper use, waste management improvements such as reducing food waste etc.). Note that changes in company transportation policies should not be reported here but under the initiative category “Transportation”
- Transportation – Select this option for initiatives relating to employee travel and commuting and the company fleet.
- Other, please specify – If none of the listed categories are applicable to your initiative, select this option and specify the initiative.

Note that a selection must be made for both column 1 and column 2. Your data will not be saved if either column is left blank.

Initiative type (column 2)

Select the type of initiative you have undertaken from the drop-down options provided. Note that only initiative types relative to the initiative category selected in the previous column will be displayed in the ORS.
If none of the provided options are applicable to your initiative, select “Other, please specify” and provide details of the initiative type.
Note that a selection must be made for both column 1 and column 2. Your data will not be saved if either column is left blank.

Estimated annual CO₂e savings (metric tons CO₂e) (column 3)

Enter the expected annual CO₂e savings in all emission Scopes, in metric tons, occurring with the initiative in place. It is acknowledged that this figure is likely to be an estimate.
Where savings occur on a non-annual basis, average the savings so that an annual figure can be provided.
Where the initiative has not been in place for the entire reporting period, estimate and report the emissions that would be saved in a 12-month period, so that an annual figure can be provided.

Scope(s) (column 4)

Select the Scope(s) and/or Scope 3 categories where the emission reductions are expected to occur.
If the initiative covers multiple Scopes, select all Scopes and Scope 3 categories where emissions reductions are expected to occur.

Voluntary/Mandatory (column 5)

Select whether the initiative is mandatory (i.e. to comply with regulation), or a voluntary initiative.

Annual monetary savings (unit currency – as specified in C0.4) (column 6)

Enter the amount of monetary savings per year expected from the initiative (e.g. in reduced energy costs) once it is fully operational.
The number entered should be appropriate to the currency selected in C0.4.
Where savings occur on a non-annual basis, please average out so that an annual figure can be provided.

Investment required (unit currency – as specified in C0.4) (column 7)

Enter the total investment required for the initiative over its lifetime.
The number entered should be appropriate to the currency selected in question C0.4.

Payback period (column 8)

The payback period reflects the time it takes for the investment made to be offset by the monetary savings from the initiative (Payback Period = Investment/Annual monetary savings).
The payback period is not applicable (therefore select "No payback") if:

- the initiative does not require any investment and you have entered 0 (zero) in column 7 (Investment required (unit currency, as specified in C0.4)) AND/OR
- the initiative does not bring any monetary savings and you have entered 0 (zero) in column 6 (Annual monetary savings (unit currency – as specified in C0.4))

Estimated lifetime of the initiative (column 9)

This column refers to the duration of cash flow savings from carbon mitigation investments. This data point, in years, allows data users to calculate the Internal Rate of Return of the project, also using the “Annual monetary savings,” “Investment required” and “Payback period” information.
If you have multiple emissions reduction initiatives for each initiative type, select the median to answer this column.

Comment (column 10) (optional)

If you select “Solid biofuels”, “Liquid biofuels”, or "Biogas" as the “Initiative type” (column 2), specify whether any of the biofuels are derived from sustainable biomass here.

Note for electric utility sector companies:

For electric utilities, emissions reduction initiatives may include fuel switching at existing plants or investment in lower-emitting methods of generation. Please disclose this information if applicable.

Note for agricultural sector companies:

Agricultural sector companies are specifically asked to report on initiatives implemented to reduce emissions from agricultural/forestry, processing/manufacturing activities. E.g.:

- Adoption of low impact agriculture/forestry practices
- Increased efficiency of energy use during manufacturing
- Reduced fleet use of fossil fuels or increased use of renewable fuels in transportation

Explanation of terms

Building energy management system (BEMS): An integrated system comprising hardware, software, and services that leverage information and communication technology for monitoring, automating, and controlling energy consumption. Examples include smart meters and smart billing, data analytics, performance optimization and others.
Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
Process emissions: emissions from industrial production processes which chemically or physically transform materials (e.g. CO₂ from the calcinations step in cement manufacturing, CO₂ from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.)

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Question dependencies

This question only appears if you select “Yes” in response to C4.3.

Change from last year

No change

Rationale

This question provides data users with more transparency into your organization’s approach to realizing emissions reductions and progress towards targets.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 13: Climate action

NZAM (FS Only)

Commitment 3

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Method

Comment

Select from:

Compliance with regulatory requirements/standards
Dedicated budget for energy efficiency
Dedicated budget for low-carbon product R&D
Dedicated budget for other emissions reduction activities
Employee engagement
Financial optimization calculations
Internal price on carbon
Internal incentives/recognition programs
Internal finance mechanisms
Lower return on investment (ROI) specification
Marginal abatement cost curve
Partnering with governments on technology development
Other

Text field [maximum 2,400 characters]

[Add Row]

Requested content

General

This question is intended to gather information on the ways in which capital is directed towards emissions reduction activities within your company, and/or the way in which initiatives are identified. If your company uses an internal carbon price you are encouraged to report this here in addition to in C11.

Method (column 1)

Select the types of methods that you employ to help to channel funds towards emissions reduction initiatives.

Comment (column 2) (optional)

Provide additional details or examples as necessary.

Additional information

Marginal Abatement Cost Curves

Marginal Abatement Cost Curves, or MACCs, provide a method of evaluating potential emissions reduction activities. They provide a visual comparison of the marginal abatement costs for different projects.
MACCs can be generated to evaluate options at any level of organization – from individual business divisions, to the overall business and to sectors and countries/areas, evaluating individual projects, programs or policies.
Marginal abatement costs are calculated by dividing the costs of the project (calculated from the initial cost minus any savings made as a result of the project) by the greenhouse gas emissions saved over a specified investment timeframe.

These are then arranged with the lowest costs (sometime negative cost) on the left, increasing in cost to the right, creating the curve. An example taken from McKinsey & Company “ Impact of the financial crisis on carbon economics: Version 2.1 of the global greenhouse gas abatement cost curve"

Those projects/initiatives on the “left hand side” of the MACC are those where there are cost savings to be made over the lifetime of the project as a result of the emissions savings made, and therefore, even without a commitment to carbon reduction investment, should be implemented from a cost saving point of view. Where the bars extend above the line, positive costs are associated with the proposals. Here the MACC curve can be used to suggest the lowest cost options for achieving a particular target. Using the example above, savings of 9.5MtCO ₂can be made at costs of less than €40/tonCO₂.
As with all evaluation methods, the accuracy of the MACC will depend on that of the input data.

(C4.3d) Why did you not have any emissions reduction initiatives active during the reporting year?

Question dependencies

This question only appears if you select “No” in response to C4.3.

Change from last year

No change

Rationale

Emissions reduction initiatives are crucial to meeting emissions targets and reducing negative environmental impacts. CDP data users need to know why you do not engage in the best practice of actively reducing your emissions.

Response options

This is an open text question with a limit of 5,000 characters.

Please note that when copying from another document into the ORS, formatting is not retained.

Requested content

General

Provide a company-specific explanation as to why you do not have any emissions reduction initiatives active in the reporting year, and if you have any plans to implement them in the future. If you plan to implement emissions reduction initiatives in the future, estimate a timeframe of when you will begin to implement them.
If you do not have emissions reduction initiatives active in the reporting year because you have not identified any, provide more information regarding your process for identifying potential initiatives. E.g. if you investigated an area of organizational activities but the investigation did not result in potential initiatives, provide information on your investigations and explain why emissions reduction initiatives did not come to fruition.

Question C4.4 only applies to organizations with activities in the following sectors:

Agricultural commodities
Food, beverage & tobacco
Paper & forestry

(C-FS4.5) Do any of your existing products and services enable clients to mitigate and/or adapt to the effects of climate change?

Question dependencies

Shown to FS only. This question does not appear if you select “No” for all activities in C2 in C-FS0.7.

Change from last year

Revised question dependency

Rationale

Achieving net zero emissions by 2050 will require massive investment in low carbon technologies. Only the financial sector can provide this. Data users are interested in whether financial institutions are providing financial products and services to meet this investment challenge. This question is useful to investors seeking to increase their investment in organizations providing low-carbon financial products and services.

Ambition: Financial services companies develop and offer products and services that enable clients to mitigate and/or adapt to the effects of climate change.

Connection to other frameworks

SDG

Goal 13: Climate action.

NZAM (FS Only)

Commitment 5

Response options

Select one of the following options:

Requested content

General

Consider only financial products and services. If your organization has activities in more than one sector, you may also be presented with C4.5. All other low-carbon products and services (i.e. non-financial) should be reported in C4.5 and C4.5a.
There are various circumstances in which a financial services company might consider that the use of its products and services by others has the potential to reduce GHG emissions.
You should consider relevant low-carbon products such as green bonds, green loans/mortgages, green insurance products, specialty climate-related risk advisory services and others.

(C-FS4.5a) Provide details of your existing products and services that enable clients to mitigate and/or adapt to climate change, including any taxonomy used to classify the products(s).

Question dependencies

This question appears only if ‘Yes’ is selected in C-FS4.5.

Change from last year

No change

Rationale

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

NZAM (FS Only)

Commitment 5

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Product type/Asset class/Line of business

Taxonomy or methodology used to classify product

Description of product

Product enables clients to mitigate and/or adapt to climate change

Portfolio value (unit currency – as specified in C0.4)

% of total portfolio value

Type of activity financed/insured or provided

Select from:

Banking

Corporate loans
Retail loans
Corporate real estate
Retail mortgages
Trade finance
Asset finance
Project finance
Debt and equity underwriting
Other, please specify

Investing

Fixed Income
Listed Equity
Private Equity
Real estate/Property
Infrastructure
Commodities
Forestry
Hedge funds
Mutual funds
Fund of funds
Derivatives
Other, please specify

Insurance

Property & Casualty
Construction & Engineering
Agribusiness
Motor
Marine
Life
Health
Reinsurance
Other, please specify

Select from:

Low-carbon Investment (LCI) Taxonomy
Climate Bonds Taxonomy
The EU Taxonomy for environmentally sustainable economic activities
Evaluating the carbon-reducing impacts of ICT
Green Bond Principles (ICMA)
ISO 14040/44 Standards
LMA Green Loan Principles
LMA Sustainability Link Loans Principles
Externally classified using other taxonomy or methodology, please specify
Internally classified

Text field [maximum 2,500 characters]

Select all that apply:

Mitigation
Adaptation

Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]

Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]

Select all that apply:

Green buildings and equipment
Low-emission transport
Renewable energy
Emerging climate technology, please specify
Carbon removal
Nature-based solutions
Fortified buildings
Sustainable agriculture
Risk transfer mechanisms for under-insured or uninsured
Paperless/ digital service
Other, please specify

[Add Row]

Requested content

General

Consider only financial products and services. If your organization has activities in more than one sector, you may also be presented with C4.5 and C4.5a. All other low-carbon products and services (i.e. non-financial) should be reported in C4.5 and C4.5a.

Taxonomy or methodology used to classify product(s) (column 2)

As investors seek to increase the proportion of their portfolio invested in environment-friendly products there is an effort to establish standardized methodologies. As for avoided emissions, methodologies to calculate avoided emissions are still being developed.
If you offer products enabling clients to have beneficial impacts on the climate, which have been classified using an external taxonomy or methodology not listed, select “Externally classified using other taxonomy or methodology, please specify” and provide a label for the taxonomy or methodology.
If the products you offer have been classified internally as enabling clients to have beneficial impacts on the climate, select “Internally classified” and describe your internal classification system in column 3.

Description of product (column 3)

Use this column to describe the product that you are disclosing in this row
If you have selected “Internally classified” or “Externally classified using other taxonomy or methodology, please specify” in column 2, provide a rationale as to why you consider that this product will enable clients to mitigate and/or adapt to climate change.

% of total portfolio value (column 6)

Provide a percentage value for the proportion of products and/or services that you classify as low-carbon, climate resilient products or that enable a third party to avoid GHG emissions in relation to your total portfolio value.

Type of activity financed/insured or provided (column 7)

Indicate which type of sustainable solutions your financing, investments and insurance products and services are covering
- Green buildings and equipment: Green Buildings and Equipment are energy efficient or otherwise sustainable. Mature technologies identified by the IEA found under "Buildings" in the ETP Clean Energy Technology Guide.
- Low-emission transport: Transport modes (road, rail, shipping and aviation) which results in lower emissions, e.g. electric vehicles or increased transport efficiency. Mature technologies identified by the IEA found under "Transport" in the ETP Clean Energy Technology Guide.
- Renewable energy: Renewable energy is energy from sources that are naturally replenishing but flow-limited; renewable resources are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. The major types of renewable energy sources are: Biomass, Wood and wood waste, Municipal solid waste, Landfill gas and biogas, Ethanol, Biodiesel, Hydropower, Geothermal, Wind, Solar.
- Emerging climate technology (ECT), please specify: a commercially promising technology that addresses climate mitigation challenges but needs to attract enough investment to deploy the technology and develop business models and markets for the product or services it produces. Eventually it may become a successful innovation deployed at scale, generating new markets or profoundly disrupting established (fossil-based) ones (Auerswald et al., 2005). For a more detailed definition and guidance, refer to the ECT initiative.
- Carbon removal: solutions which remove CO2 from the atmosphere and permanently store it.
- Nature-based solutions: actions to protect, sustainably use, manage and restore natural or modified ecosystems, which address societal challenges, effectively and adaptively, providing human well-being and biodiversity benefits (IUCN, 2016).
- Fortified buildings: Fortified buildings use retrofit techniques to strengthen new and existing homes, making them more resistant to storms and other severe weather events.
- Sustainable agriculture: Farming that is environmentally sound, socially responsible, and profitable for farmers. Sustainable agriculture strives for the best long-term outcomes for forests, climate stability, and water security.
- Risk transfer mechanisms for under-insured or uninsured: Innovative risk transfer mechanisms or insurance products, e.g. risk pools or catastrophe bonds, which help under-insured or uninsured communities to meet the challenges of a changing climate.
- Paperless/digital service: Providing services to customer via digital/online services as oppose to paper/posted services, e.g. online billing statements

Explanation of terms

Adaptation: Adjustment to climate change current or expected effects so the consequences to the business and environment are alleviated and beneficial opportunities are realized.
Mitigation: or "climate change mitigation" refers to efforts to reduce or prevent emission of greenhouse gases.
Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.
Commodities: involves buying, selling, or trading a raw product, such as oil, gold, or coffee
Derivatives: refers to securities that derive their value from an underlying asset or benchmark.
Fixed Income: refers to a type of investment security that pay investors fixed interest or dividend payments until its maturity date.
Forestry: investment in forest lands, either directly (direct ownership of forest land) or indirectly (through e.g. a timber fund).
Fund of funds: investment fund that invests in other types of funds.
Hedge funds: alternative investments using pooled funds that employ different strategies to earn active returns, or alpha, for their investors.
Infrastructure: a form of “real assets,” which contain physical assets we see in everyday life like bridges, roads, highways, sewage systems, or energy.
Listed Equity: refers to shares of ownership issued by publicly-traded companies.
Mutual funds: investment using pooled funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Private Equity: alternative form of private financing in which funds and investors invest directly in companies.
Real estate/Property: refers to the purchase, purchase, ownership, management, rental and/or sale of real estate (e.g. land, buildings, infrastructure).
Property & Casualty: insurance protection that provides either property protection coverage or liability coverage for property owners.
Construction & Engineering: insurance protection that provides financial compensation for covered losses to a building or structure.
Agribusiness: insurance protection designed to protect businesses that earn all or most of their revenue from agriculture.
Health: insurance that covers the whole or a part of the risk of a person incurring medical expenses.
Motor: insurance protection for cars, trucks, motorcycles, and other road vehicles.
Life: insurance which guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
Marine: insurance protection that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination.

Additional information

The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. Further details on the guidelines for issuing green bonds are available here.
The Green Loan Principles (GLP) build on and refer to the Green Bond Principles (GBP) of the International Capital Market Association (ICMA), with a view to promoting consistency across financial markets. The green loan market aims to facilitate and support environmentally sustainable economic activity.

C5 Emissions methodology

Module Overview

A meaningful and consistent comparison of emissions over time is essential for managing climate-related issues. This module allows companies to describe any structural, boundary or methodological changes in the reporting year, provide the base year and base year emissions figures, and provide details of the standard, protocol, or methodology used to collect activity data and calculate emissions.

Key changes

Modified question:
- C5.1c – has two new columns on Scope for which you have recalculated your base year and past years’ recalculation.

Click here for a list of all changes made this year.

Pathway diagram - questions

This diagram shows the general questions contained in module C5. To access question-level guidance, use the menu on the left to navigate to the question.

Changes in the reporting year

(C5.1) Is this your first year of reporting emissions data to CDP?

Change from last year

No change

Rationale

Data users wish to understand year-on-year changes in emissions and this question allows organizations to indicate if they have previously reported emissions data to CDP. It drives follow-up questions on the details of changes to corporate structure, emissions accounting boundary or methodology, or reporting year.

Response options

Select one of the following options:

Requested content

General

If you have provided emissions data to CDP before, select “No”. You will be asked to provide details of any changes (structural, methodological, boundary etc.) since your last disclosure in subsequent questions.

(C5.1a) Has your organization undergone any structural changes in the reporting year, or are any previous structural changes being accounted for in this disclosure of emissions data?

Question dependencies

This question only appears if you select “No” in response to C5.1

Change from last year

No change

Rationale

Structural changes such as acquisitions, divestments, and mergers may have a significant impact on base year emissions due to the transfer of ownership or control of emitting activities from one organization to another. While a single structural change might not have a significant impact, the cumulative effect of a number of minor structural changes can result in a significant impact. This question provides data users with important context to any changes in emissions that may trigger base year emissions recalculation.

Response options

Please complete the following table:

*Column/row appearance is dependent on selections in this or other questions.

Has there been a structural change?	Name of organization(s) acquired, divested from, or merged with*	Details of structural change(s), including completion dates*
Select all that apply: Yes, an acquisition Yes, a divestment Yes, a merger Yes, other structural change, please specify No	Text field [maximum 500 characters]	Text field [maximum 2,500 characters]

Requested content

General

Consider structural changes (including minor ones) which:
- occurred during the reporting year and are being accounted for in this disclosure (e.g., you acquired a company during the reporting year and are including the acquired company’s emissions data in this CDP response).
- occurred prior to the reporting year but are being accounted for in this disclosure (e.g., you acquired a company during the previous reporting year but excluded the acquired company from your CDP response in the previous reporting year in C6.4a due to a lack of data, and now have the data to include the acquired company’s emissions data in this CDP response).

Has there been a structural change? (column 1)

Select all structural change(s) your organization has recently undergone. If your organization has not undergone any structural change(s) in the reporting year and you are also not accounting for a structural change that occurred in the previous reporting year, select “No”.

Name of organization(s) acquired, divested from, or merged with (column 2)

This column only appears if any “Yes…” option is selected in column 1

Details of structural change(s), including completion dates (column 3)

This column only appears if any “Yes…” option is selected in column 1.
State the completion date of the structural change, and explain how the structural change affects the ownership or control of the emitting activities of the organizations affected by the change.
Where multiple structural changes have occurred, please identify which completion dates refer to each organization listed in column 2.

Explanation of terms

Structural changes: Structural changes include mergers, acquisitions, divestments, and outsourcing/insourcing of emitting activities (refer to chapter 5 of the GHG Protocol Corporate Standard for more information).

(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year definition changed in the reporting year?

Question dependencies

This question only appears if you select “No” in response to C5.1

Change from last year

No change

Rationale

Changes in emissions calculation methodology, reporting boundary approach, and/or reporting year could result in a significant impact on the base year emissions and compromise the consistency and relevance of a company’s GHG emissions inventory. This question provides data users with important context to any changes in emissions that may trigger base year emissions recalculation.

Response options

Please complete the following table:

*Column/row appearance is dependent on selections in this or other questions.

Change(s) in methodology, boundary, and/or reporting year definition?	Details of methodology, boundary, and/or reporting year definition change(s)*
Select all that apply: Yes, a change in methodology Yes, a change in boundary Yes, a change in reporting year definition No, but we have discovered significant errors in our previous response(s) No	Text field [maximum 2,500 characters]

Requested content

Change(s) in methodology, boundary, and/or reporting year definition? (column 1)

Select all change(s) that occurred in the reporting year. If none of the changes occurred in the reporting year, select “No”.
Further details on each of the options are provided below:
- Change in methodology: This refers to changes that occurred due to modifications in the way that the emissions inventory is calculated, e.g., changes in emissions factors used or changes in methodology protocol followed.
- Change in boundary: This refers to changes to the boundary used for your emissions inventory calculations, e.g., changing your consolidation approach from financial control to operational control. This option could also apply if you incorporated facilities, activities, or Scope 3 categories into your inventory in the reporting year that were excluded in previous years, or if you have insourced or outsourced an activity (see page 105 of the GHG Protocol Corporate Value Chain standard).
- Change in reporting year definition: This refers to a change in how your organization defines the reporting year, e.g., changing from a reporting year which aligns with the calendar year to one which aligns with your fiscal year.
- Discovery of significant errors: This refers to either the discovery of significant errors, or the discovery of a number of errors that are collectively significant.

Details of methodology, boundary, and/or reporting year definition change(s) (column 2)

This column only appears if any “Yes…” option is selected in column 1.
Provide further details of the changes selected in column 1. For example, briefly describe how and why your emissions calculation methodology changed, and/or explain the context to any discovered errors. If new facilities have been included within your inventory, please list these, including their location. If you have included new Scope 3 categories in your inventory, please specify the categories added.

(C5.1c) Have your organization’s base year emissions and past years’ emissions been recalculated as a result of any changes or errors reported in C5.1a and/or C5.1b?

Question dependencies

This question only appears if any of the “Yes” options are selected in C5.1a, or if any of the “Yes” options or “No, but we have discovered significant errors in our previous response” is selected in response to C5.1b

Change from last year

Modified question

Rationale

Significant changes (structural, methodological, boundary etc.) can alter a company’s emissions profile, making meaningful historical comparisons difficult. To maintain consistency over time, base year emissions must be retroactively recalculated to reflect changes in the company that would otherwise compromise the consistency and relevance of a company’s GHG emissions inventory. This question allows data users to understand whether the company has recalculated their base year emissions as a result of the changes or errors disclosed in C5.1a and b.

Ambition: Companies recalculate base year emissions, and emissions from previous years to reflect changes that would otherwise compromise the consistency and relevance of the reported GHG emissions information.

Response options

Please complete the following table:

*Column/row appearance is dependent on selections in this or other questions.

Base year recalculation	Scope(s) recalculated*	Base year emissions recalculation policy, including significance threshold	Past years’ recalculation
Select from: Yes No, because we have not evaluated whether the changes should trigger a base year recalculation No, because the impact does not meet our significance threshold No, because the operations acquired or divested did not exist in the base year No, because we do not have the data yet and plan to recalculate next year	Select all that apply: Scope 1 Scope 2, location-based Scope 2, market-based Scope 3	Text field [maximum 2,500 characters]	Select from: Yes No

Requested content

General

The GHG Protocol Corporate Standard states that you should recalculate your base year emissions if your organization has changed structurally through acquisitions and/or divestments, the methodology or boundary used to calculate your emissions has changed, you have found significant errors in previous calculations, or if there have been changes to your excluded sources. This is so that your base year emissions can be directly compared with your current/reporting year emissions.
A company may, however, decide not to do this if the impact on emissions is not material or significant. It is up to each company to determine the threshold for what is considered significant or material by developing a base year recalculation policy. Organizations should apply their base year recalculation policy in a consistent manner (i.e. you should recalculate for both emissions increases and decreases).
Companies recalculating their base year emissions may also, as per the GHG Protocol, optionally recalculate GHG emissions data for past years between the base year and the reporting year.

Base year recalculation (column 1)

Select “Yes” if your organization has recalculated your base year emissions as a result of the changes or errors disclosed in C5.1a and/or C5.1b. The basis of the recalculation should be consistent with your recalculation policy (as described in column 2) and should be reflected in the base year emissions figures you disclose in the following question, C5.2.
Select “No, because we have not evaluated a recalculation of our base year” if you do not have a base year recalculation policy, or you have not evaluated whether the changes or errors identified in C5.1a and/or C5.1b should trigger a base year recalculation as per your policy.
Select “No, because the impact does not meet our significance threshold” if you have a base year recalculation policy and you have evaluated that the changes or errors identified in C5.1a and/or C5.1b do not meet your policy’s significance threshold and therefore the impact on emissions is deemed to be non-material.
Select “No, because we do not have the data yet and plan to recalculate next year” if your organization has merged with or acquired a company and you do not yet have the emissions data for the organization you have merged with or acquired. As per the GHG Protocol Corporate standard, “if it is not possible to make a recalculation in the year of the structural change (e.g. due to lack of data for an acquired company), the recalculation may be carried out the following year”. In this scenario, the emissions from the company your organization has merged with or acquired should be reported as an excluded source of emissions in C6.4a in this CDP response.

Scope(s) recalculated (column 2)

This column only appears if you select “Yes” in column 1 “Base year recalculation”.
Depending on the change(s) that have triggered a base year calculation (as disclosed in C5.1a and/or C5.1b), it may not be necessary to recalculate your organization’s base year emissions for all scopes. For example, you may have found a significant error in your calculation of a single category of scope 3 emissions.
Indicate in this column the scope(s) for which you have recalculated your base year emissions.

Base year emissions recalculation policy, including significance threshold (column 3)

Describe your organization’s base year recalculation policy, and if “Yes” was selected in column 1, clearly articulate the basis and context of the recalculation.
Ensure to include the significance threshold applied for determining base year recalculations.

Past years’ recalculation (column 4)

Select “Yes” if, due to changes or errors reported in C5.1a and/or C5.1b, in addition to your base year recalculation you have also recalculated emissions data for past years, and are restating them in C6.1, C6.3, and C6.5.
If you select “Yes” in this column, ensure you have also selected “Yes” in column 3 of C0.2 and indicated the number of past years of emissions you wish to restate for each Scope in columns 4-6 of C0.2.

Explanation of terms

Significance threshold: As noted on page 35 of the GHG Protocol Corporate Standard, a significance threshold is a “qualitative and/or quantitative criterion used to define any significant change to the data, inventory boundary, methods, or any other relevant factors. It is the responsibility of the company to determine the significance threshold that triggers base year emissions recalculation and to disclose it.”

(C5.2) Provide your base year and base year emissions.

Change from last year

No change

Rationale

A meaningful and consistent comparison of emissions over time requires that companies set a performance datum with which to compare current emissions.

Response options

Please complete the following table:

Scope	Base year start	Base year end	Base year emissions (metric tons CO₂e)	Comment
Scope 1	Use the calendar button or enter dates manually in the format DD/MM/YYYY	Use the calendar button or enter dates manually in the format DD/MM/YYYY	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Text field [maximum 2,400 characters]
Scope 2 (location-based)
Scope 2 (market-based)
Scope 3 category 1: Purchased goods and services
Scope 3 category 2: Capital goods
Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or 2)
Scope 3 category 4: Upstream transportation and distribution
Scope 3 category 5: Waste generated in operations
Scope 3 category 6: Business travel
Scope 3 category 7: Employee commuting
Scope 3 category 8: Upstream leased assets
Scope 3 category 9: Downstream transportation and distribution
Scope 3 category 10: Processing of sold products
Scope 3 category 11: Use of sold products
Scope 3 category 12: End of life treatment of sold products
Scope 3 category 13: Downstream leased assets
Scope 3 category 14: Franchises
Scope 3 category 15: Investments [row hidden for FS sector]
Scope 3: Other (upstream)
Scope 3: Other (downstream)

Requested content

General

This question requests a base year for your greenhouse gas inventory. This may be the same as the base year for your targets, but not necessarily.
If your company has measured its emissions in the past, you can use the oldest year for which it has available emissions information – preferably verified or assured – as your base year. If your company is measuring its emissions for the first time, you may choose the current reporting year as the base year.
Companies should ensure that the base year inventory includes both a location-based and market-based Scope 2 total, if applicable and feasible. This ensures “like with like” comparisons over time. If the Scope 2 base year chosen was calculated only according to the location-based method, you should also recalculate and report a market-based total if contractual information or residual mix totals are available for the base year. If not, you should state in the comment field that the location-based result has been used as a proxy since a market-based figure cannot be calculated.
As per the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, companies should use a single base year for Scope 1, Scope 2, and Scope 3 emissions (for all calculated Scope 3 categories). This is to enable comprehensive and consistent tracking of total emissions across all three Scopes over time. However, companies with already established base years for Scope 1 and Scope 2 emissions may use a more recent year for the Scope 3 base year (e.g., the first year for which you have complete and reliable Scope 3 emissions data).
Establishing a single base year for all Scope 3 categories simplifies Scope 3 emissions tracking and allows clearer communication of GHG emissions to data users.
If you are using an average of annual emissions over several consecutive years for your base year emissions, enter the last year in the period (e.g. 01/01/2019 – 31/12/2019), then provide the time period over which the average was calculated in the comment column and explain that the emissions figure reported is an average.
If you have not calculated base year emissions for a particular Scope 3 category, you may leave the respective row blank.
If you are using the Export/Import functionality, please check that the imported date is correct.

Additional information

Setting a base year: Setting a base year is an essential GHG accounting step that a company must take to be able to observe trends in its emissions information. According to the GHG Protocol Corporate Standard, a base year is “a historic datum (a specific year or an average over multiple years) against which a company’s emissions are tracked over time.” See Chapter 5 of the GHG Protocol Corporate Standard for more information on setting and recalculating a base year.
Recalculation criteria for Scope 3 emissions base year: The table below from the Corporate Value Chain (Scope 3) Accounting and Reporting Standard provides additional guidance for determining the need for Scope 3 base year recalculation due to changes in insourcing/outsourcing.

Emissions methodology

(C5.3) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate emissions.

Change from last year

Minor change

Rationale

CDP data users need to understand what methods have been used to calculate emissions.

Response options

Select all that apply from the following options:

ABI Energia Linee Guida
Act on the Rational Use of Energy
American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009
Australia - National Greenhouse and Energy Reporting Act
Bilan Carbone
Brazil GHG Protocol Programme
Canadian Association of Petroleum Producers, Calculating Greenhouse Gas Emissions, 2003
China Corporate Energy Conservation and GHG Management Programme
Defra Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance, 2019
ENCORD: Construction CO₂e Measurement Protocol
Energy Information Administration 1605(b)
Environment Canada, Sulphur hexafluoride (SF6) Emission Estimation and Reporting Protocol for Electric Utilities
Environment Canada, Aluminum Production, Guidance Manual for Estimating Greenhouse Gas Emissions
Environment Canada, Base Metals Smelting/Refining, Guidance Manual for Estimating Greenhouse Gas Emissions
Environment Canada, Cement Production, Guidance Manual for Estimating Greenhouse Gas Emissions
Environment Canada, Primary Iron and Steel Production, Guidance Manual for Estimating Greenhouse Gas Emissions
Environment Canada, Lime Production, Guidance Manual for Estimating Greenhouse Gas Emissions
Environment Canada, Primary Magnesium Production and Casting, Guidance Manual for Estimating Greenhouse Gas Emissions
Environment Canada, Metal Mining, Guidance Manual for Estimating Greenhouse Gas Emissions
EPRA (European Public Real Estate Association) guidelines, 2011
EPRA (European Public Real Estate Association) Sustainability Best Practice recommendations Guidelines, 2017
European Union Emission Trading System (EU ETS): The Monitoring and Reporting Regulation (MMR) – General guidance for installations
European Union Emissions Trading System (EU ETS): The Monitoring and Reporting Regulation (MMR) – General guidance for aircraft operators
French methodology for greenhouse gas emissions assessments by companies V4 (ADEME 2016)
Hong Kong Environmental Protection Department, Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings, 2010
ICLEI Local Government GHG Protocol
IEA CO₂ Emissions from Fuel Combustion
India GHG Inventory Programme
International Wine Industry Greenhouse Gas Protocol and Accounting Tool
IPCC Guidelines for National Greenhouse Gas Inventories, 2006
IPIECA's Petroleum Industry Guidelines for reporting GHG emissions, 2003
IPIECA’s Petroleum Industry Guidelines for reporting GHG emissions, 2nd edition, 2011
ISO 14064-1
Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act on Promotion of Global Warming Countermeasures (2005 Amendment)
Korea GHG and Energy Target Management System Operating Guidelines
National Development and Reform Commission (NDRC) Guidance for Accounting and Reporting of GHG Emissions for Corporates (Trial)
New Zealand - Guidance for Voluntary, Corporate Greenhouse Gas Reporting
Philippine Greenhouse Gas Accounting and Reporting Programme (PhilGARP)
Programa GEI Mexico
Recommendations for reporting significant indirect emissions under Article 173-IV (ADEME 2018)
Regional Greenhouse Gas Initiative (RGGI) Model Rule
Smart Freight Centre: GLEC Framework for Logistics Emissions Methodologies
Taiwan - GHG Reduction Act
Thailand Greenhouse Gas Management Organization: The National Guideline Carbon Footprint for organization
The Climate Registry: Electric Power Sector (EPS) Protocol
The Climate Registry: General Reporting Protocol
The Climate Registry: Local Government Operations (LGO) Protocol
The Climate Registry: Oil & Gas Protocol
The Cool Farm Tool
The GHG Indicator: UNEP Guidelines for Calculating Greenhouse Gas Emissions for Businesses and Non-Commercial Organizations
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
The Greenhouse Gas Protocol Agricultural Guidance: Interpreting the Corporate Accounting and Reporting Standard for the Agricultural Sector
The Greenhouse Gas Protocol: Public Sector Standard
The Greenhouse Gas Protocol: Scope 2 Guidance
The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Standard
The Tokyo Cap-and Trade Program
Toitū carbonreduce programme
Toitū carbonzero programme
US EPA Center for Corporate Climate Leadership: Direct Fugitive Emissions from Refrigeration, Air Conditioning, Fire Suppression, and Industrial Gases
US EPA Center for Corporate Climate Leadership: Indirect Emissions From Events and Conferences
US EPA Center for Corporate Climate Leadership: Indirect Emissions From Purchased Electricity
US EPA Center for Corporate Climate Leadership: Direct Emissions from Stationary Combustion Sources
US EPA Center for Corporate Climate Leadership: Direct Emissions from Mobile Combustion Sources
US EPA Mandatory Greenhouse Gas Reporting Rule
US EPA Emissions & Generation Resource Integrated Database (eGRID)
VfU (Verein fur Umweltmanagement) Indicators Standard
WBCSD: The Cement CO₂ and Energy Protocol
World Steel Association CO₂ emissions data collection guidelines
Other, please specify

Requested content

General

There are a variety of standards, methodologies, and protocols available for collecting and reporting GHG data, but the large majority of companies refer to the GHG Protocol.
The appropriateness of an emissions calculation methodology should be determined on a case-by-case basis, and it is good practice for the methods used to estimate emissions and the underlying data to be externally verified.
CDP makes no judgments on standards or methodologies applied by companies to produce their inventories. However, we expect that any tool used will follow the best practice and observe important aspects such as the accuracy and completeness principles of standards similar to the GHG Protocol. CDP encourages companies to use the GHG Protocol Corporate Standard when national standards are not specified.
If the metholology(ies) you have used is not listed, select “Other, please specify;” and indicate the methodology(ies) used.

C6 Emissions data

Module Overview

Reporting emissions is best practice and a prerequisite to understanding and reducing negative environmental impacts.

This module examines emissions data details and is aligned with TCFD Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

The GHG Protocol is developing new Land Sector and Removals Guidance. This new guidance is currently in the pilot testing and review phase, and will be finalized and published in 2023. Companies responding to the CDP 2023 climate change questionnaire should report in accordance with existing GHG Protocol corporate standards, and not use the draft land sector and removals guidance for CDP reporting in 2023, as it is still under development.

Key changes

Modified question:
- C6.1 – has two new rows for restatement of scope 1 emissions for up to five previous reporting years.
- C6.3 – has two new rows for restatement of scope 2 emissions for up to five previous reporting years.
- C6.4 – now asks if any sources of scope 3 emissions have been excluded from your disclosure.
- C6.4a – updated to request details of sources of emissions excluded from your disclosure for all three scopes.
- C6.5a – has two new rows for restatement of scope 3 emissions for up to five previous reporting years.
- C6.10 – new column added requesting the reason for the change in gross global combined scope 1 and 2 emissions intensity.

Modified guidance:
- C6.5 – guidance updated to reflect that excluded scope 3 sources within a category should now be reported in C6.4a, and that companies should indicate the boundary they have used for each scope 3 category.
- C6.7a – clarification that companies should not be using the draft GHG Protocol land sector and removals guidance for their 2023 CDP response.

For the agricultural commodities, food/beverage/tobacco and paper/forestry sectors only:

Removed question:
- C-AC6.9a/C-FB6.9a/C-PF6.9a (2022) – on greenhouse gas emissions by commodity. Datapoints from this question have been merged into C-AC6.9/C-FB6.9/C-PF6.9

Modified question:
- C-AC6.9/C-FB6.9/C-PF6.9 – datapoints from removed question C-AC6.9a/C-FB6.9a/C-PF6.9a have been merged into this question.
Modified guidance:
- C-AC6.8/C-FB6.8/C-PF6.8 – clarification that companies should not be using the draft GHG Protocol land sector and removals guidance for their 2023 CDP response.
- C-AC6.8a/C-FB6.8a/C-PF6.8a – clarification that companies should not be using the draft GHG Protocol land sector and removals guidance for their 2023 CDP response.

For the oil and gas sector only:

Modified question:
- C-OG6.13 – updated to request details of the methodology used to estimate methane emissions.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on emission intensity metrics for the following high-impact sectors:

Oil & gas
Cement
Steel
Transport services

Additional questions on Scope 3 emissions, biogenic carbon and agricultural commodities emissions for the following high-impact sectors:

Agricultural commodities
Food, beverage and tobacco
Paper and forestry

Additional questions on life cycle emissions assessment for the following high-impact sectors

Capital goods
Construction
Real estate

Pathway diagram - questions

This diagram shows the general questions contained in module C6. To access question-level guidance, use the menu on the left to navigate to the question.

Scope 1 emissions data

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO₂e?

Change from last year

Modified question

Rationale

Reporting emissions is best practice and a prerequisite to understanding and reducing negative environmental impacts. CDP asks this question to ensure companies are measuring their carbon footprints from direct emissions.

Ambition: Companies disclose that their Scope 1 emissions in the reporting year have reduced in line with a 1.5 °C-aligned pathway.

Connection to other frameworks

SDG

Goal 13: Climate action

TCFD

Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

S&P Global Corporate Sustainability Assessment

Direct Greenhouse Gas Emissions (Scope 1)

TCFD Disclosure

Response options

Please complete the following table:

Year	Gross global Scope 1 emissions (metric tons CO₂e)	Start date	End date	Comment
Reporting year	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	[This cell is not seen in ORS]	[This cell is not seen in ORS]	Text field [maximum 2,400 characters]
Past year 1 [Only appears if "1 year", "2 years", "3 years", "4 years" or "5 years" is selected in column 4 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 2 [Only appears if "2 years", "3 years", "4 years" or "5 years" is selected in column 4 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 3 [Only appears if "3 years", "4 years" or "5 years" is selected in column 4 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 4 [Only appears if “4 years” or “5 years” is selected in column 4 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 5 [Only appears if “5 years” is selected in column 4 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]

Requested content

General

Emissions must be reported in gross, not net figures. Therefore, negative numbers are not allowed.
Putting in zero suggests that you have measured your emissions and that they are equal to zero.
Gross emissions are requested so that data users can account for GHG emissions from sources owned or controlled by your organization before any reductions for offsets are made, as per the GHG Protocol Corporate Standard. This transparency is meant to provide users with the most accurate portrayal of the emissions created within your company's boundary.
Scope 1 emissions should be reported in metric tons of CO₂e. Common conversion factors are included in the Technical Note "Units of Measure Conversions".
Special requirements for carbon sequestration, captured & stored and transferred CO₂, transfer in – transfer out, and enhanced oil recovery are explained in the Technical Note "Special conditions for reporting Scope 1 emissions".
Emissions estimates are acceptable, as long as there is transparency with regards to the estimation approach (what is estimated and how) and the data used for the analysis is adequate to support the objectives of the inventory. If applicable to your organization's reporting of Scope 1 emissions, please outline this in the comment column.

Note for first-time responders

If you are a first-time responder, please provide gross global Scope 1 emissions data for the current reporting year and up to five years prior to the current reporting year.
The number of past year rows that will appear is dependent on your selection in column 4 of C0.2.
Please input the gross global Scope 1 emissions data for the current reporting year in the first row and work backwards from the current reporting year.
Please ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
Use the comment column to report relevant information regarding your organization's past Scope 1 emissions data.

Note for restatements

If you have chosen to restate your organization's gross global Scope 1 emissions data previously supplied to CDP (as indicated in column 4 of C0.2), you may do so here.
The number of past year rows that will appear is dependent on your selection in column 4 of C0.2.
Reporting recalculated figures for these years is optional.
All years Scope 1 emissions data needs to be entered in reverse order, with the current reporting year first, i.e. you should first input the current reporting year emissions data and work backwards from the most recent reporting year.
Please ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
Use the comment column to identify that this is restated data and the reason for the restatement.
For more information on restatements see CDP’s technical note on restatements here.

Note on biogas:

Carbon dioxide emitted from the combustion of biomass/biofuel or fermentation should not be included in your response to question C6.1 but instead should be reported in C6.7. This applies to self-generated biogas, and biogas delivered by a direct, dedicated pipeline.
When gas is sourced from a shared pipeline network with multiple sources including both renewable and non-renewable sources, certificates are required to demonstrate the renewable origin of gas (i.e. “certified biogas” or “green gas certificates”) and the following conditions need to be met:
- The company combusts gas sourced from a shared gas pipeline network;
- It also owns or purchases green gas certificates that originated from one of the gas producers on the pipeline network – these need not necessarily be purchased directly from the biogas producers;
- The company permanently retains the environmental attributes of the gas consumption, including any energy attribute certificates.
The appropriateness of using market-based instruments such as green gas certificates for the emissions inventories is a contested issue. The GHG Protocol is undertaking a process to determine the need and scope for additional guidance building on the existing set of corporate GHG accounting and reporting standards for Scope 1, Scope 2, and Scope 3 emissions. As part of this process, the GHG Protocol plans to holistically examine the appropriateness of market-based accounting methods across sectors, end-uses, and scopes. CDP intends to align with any revisions to the GHG Protocol standards and guidance resulting from this process, including on the use of green gas certificates for emissions accounting.
While the GHG Protocol process is ongoing, companies are encouraged to make their own judgement of the appropriateness of using green gas certificates in their emissions accounting. Companies should be transparent about any such use of green gas certificates by providing relevant details in the "Comment" column (column 5) in question C6.1, and in C6.7a.
If the company uses biogas that is sourced from a dedicated pipeline and the source is renewable, then they do not need certificates to prove the renewable origin.
CDP does not have specific requirements or recommendations for biogas certification. Certified biogas is defined as a contractual instrument that meets the Scope 2 Quality Criteria in GHG Protocol Scope 2 Guidance. For more information on this refer to CDP Technical Note: Accounting of Scope 2 emissions.

Note for agricultural sector companies:

Direct emissions from agricultural/forestry, processing/manufacturing and/or distribution activities should be reported as part of Scope 1 emissions in this question.

Explanation of terms

Biogas: A gas derived principally from the anaerobic fermentation of biomass and solid wastes and combusted to produce heat and/or power. Included in this category are landfill gas and sludge gas (sewage gas and gas from animal slurries) and other biogas.

Scope 2 emissions reporting

(C6.2) Describe your organization's approach to reporting Scope 2 emissions.

Change from last year

Modified guidance

Rationale

The purpose of this question is to allow companies to disclose their approach to calculating their Scope 2 emissions. This is particularly relevant when considering market-based Scope 2 emissions, as it is important to differentiate between companies that have not reported a market-based figure as they do not have operations where there are those contractual instruments, and those companies that do have operations where there are contractual instruments but have chosen not to disclose a market-based figure. CDP asks this question to enable accurate comparability across companies.

Connection to other frameworks

SDG

Goal 13: Climate action

Response options

Please complete the following table:

Scope 2, location-based

Scope 2, market-based

Comment

Select from:

We are reporting a Scope 2, location-based figure

We are not reporting a Scope 2, location-based figure

Select from:

We are reporting a Scope 2, market-based figure

We have no operations where we are able to access electricity supplier emission factors or residual emission factors, and are unable to report a Scope 2, market-based figure

We have operations where we are able to access electricity supplier emission factors or residual emissions factors, but are unable to report a Scope 2, market-based figure

Text field [maximum 2,400 characters]

Requested content

General

The GHG Protocol Scope 2 Guidance was published in January 2015. Part of the requirements of the guidance is that companies shall account for their Scope 2 emissions using two methodologies: a location-based method and a market-based method. The market-based method is for those companies who have any operations in markets providing product- or supplier-specific data in the form of contractual instruments. If this is not applicable to your company, you only need to provide one location-based figure.
Per the GHG Protocol Corporate Standard, a contractual instrument is “any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims.” Different markets will have different contractual instruments, which can include energy attribute certificates, direct contracts such as PPAs, and supplier-specific emission rates.
It is important to consider the definition of contractual instruments when determining whether your company needs to calculate a market-based figure. If your company can access emissions factors from your energy supplier for any of your operations, you are required to calculate and report a market-based figure. Therefore, when responding to this question, if you do have operations where there are contracts such as RECs and Guarantees of Origin, supplier specific emissions factors, or a residual emissions factor such as in the US and Europe – regardless of whether or not you purchase them – then you should not select “We have no operations where we are able to access electricity supplier emissions factors or residual emissions factors and are unable to report a Scope 2, market-based figure”. For full details please view the GHG Protocol Scope 2 Guidance. You can also reference CDP’s Technical Note on Accounting of Scope 2 emissions
For the purpose of CDP reporting, to claim the use of renewable electricity for market-based figures, companies must source renewable electricity from within the boundary of the market in which they are consuming the electricity (i.e. comply with the market boundary criteria). Please refer to CDP’s Technical Note on Accounting of Scope 2 emissions for further information.

Scope 2 emissions data

(C6.3) What were your organization's gross global Scope 2 emissions in metric tons CO₂e?

Change from last year

Modified question

Rationale

Reporting emissions is best practice and a pre-requisite to understanding and reducing negative environmental impacts. CDP asks this question to ensure companies are measuring emissions from purchased or acquired electricity, steam, heat, and cooling.

Ambition: Companies disclose that their Scope 2 emissions in the reporting year have reduced in line with a 1.5 °C-aligned pathway.

Connection to other frameworks

TCFD

Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

S&P Global Corporate Sustainability Assessment

Indirect Greenhouse Gas Emissions (Scope 2)

TCFD Disclosure

Response options

Please complete the following table:

Year	Scope 2, location-based	Scope 2, market-based (if applicable)	Start date	End date	Comment
Reporting year	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	[This cell is not seen in ORS]	[This cell is not seen in ORS]	Text field [maximum 2,400 characters]
Past year 1 [Only appears if "1 year", "2 years", "3 years", "4 years" or "5 years" is selected in column 5 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 2 [Only appears if "2 years", "3 years", "4 years" or "5 years" is selected in column 5 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 3 [Only appears if "3 years", "4 years" or "5 years" is selected in column 5 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 4 [Only appears if “4 years” or “5 years” is selected in column 5 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]
Past year 5 [Only appears if “5 years” is selected in column 5 of C0.2]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Text field [maximum 2,400 characters]

Requested content

General

Negative numbers are not allowed as reporting needs to be gross, not net figures. If you answered in C6.2 that you are not reporting a Scope 2 location-based figure and/or you answered that you are unable to report a Scope 2 market-based figure, please leave the corresponding column(s) in C6.3 blank.
Putting in zero would suggest that you have measured your emissions and that they are equal to zero.
Emissions estimates are acceptable, as long as there is transparency with regards to the estimation approach (what is estimated and how) and the data used for the analysis is adequate to support the objectives of the inventory.
For more information about CDP’s current recommendations on what emission factor to use for electricity accounting, where you can find emission factors and the different types there are, please check the Technical Note“Accounting of Scope 2 emissions.” Please also note that electricity produced by either CH₄ or N₂O is to be included in the emission factor.
For further information, please also see GHG Protocol Scope 2 Guidance.
For more detailed information beyond what is provided in this guidance and technical annexes, consult your electricity suppliers, carbon advisor, or verifier/assurer.

Note for first-time responders

If you are a first-time responder, please provide gross global Scope 2 emissions data for the current reporting year and up to five years prior to the current reporting year.
The number of past year rows that will appear is dependent on your selection in column 5 of C0.2.
Please input the gross global Scope 2 emissions data for the current reporting year in the first row and work backwards from the current reporting year.
Please ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
Use the comment column to report relevant information regarding your organization's past Scope 2 emissions data.

Note for restatements

If you have chosen to restate your organization’s gross global Scope 2 emissions data previously supplied to CDP (as indicated in column 5 of C0.2), you may do so here.
The number of past year rows that will appear is dependent on your selection in column 5 of C0.2.
Reporting recalculated figures for these years is optional.
All years Scope 2 emissions data needs to be entered in reverse order, with the current reporting year first, i.e. you should first input the current reporting year emissions data and work backwards from the most recent reporting year.
Please ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
Use the comment column to identify that this is restated data and the reason for the restatement.
For more information on restatements, see CDP’s technical note on restatements here.

Note for agricultural sector companies:

Scope 2 emissions from the use of electricity for agricultural/forestry, processing/manufacturing and/or distribution activities should be reported as Scope 2 emissions here.

Explanation of terms

Electricity: In line with GHG Protocol, this term is used as shorthand for electricity, steam, and heating/cooling. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.

Additional information

Scope 2 emissions: In many industries, indirect GHG emissions mostly occur from the generation of purchased electricity (and purchased heat, steam and cooling) consumed by the company, as per the GHG Protocol Corporate Standard. Non-energy-intensive companies are likely to have significantly higher Scope 2 figures than Scope 1 figures. The GHG Protocol highlights that “accounting for Scope 2 emissions allows companies to assess the risks and opportunities associated with changing electricity and GHG emissions cost.”

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1, Scope 2 or Scope 3 emissions that are within your selected reporting boundary which are not included in your disclosure?

Change from last year

Modified question

Rationale

In some cases it can be difficult to gather data for all sources. Circumstances where this might be the case include sources in countries/areas or small facilities where data acquisition is difficult or unreliable. Structural changes to the organization including mergers, acquisitions and divestments can also be reasons where emissions data are not included in your disclosure. This question enables companies to report where these sources are not included in the disclosure and thus provides data users transparency into reported emissions inventories.

Ambition: Companies report emissions from all sources, and are transparent on all exclusions.

Response options

Select one of the following options:

Requested content

General

Identify sources that would normally be within the consolidation boundary you have identified for your disclosure in C0.5 (i.e. financial control, operational control, equity share or other) but for which greenhouse gases are not reported in this disclosure. Excluded sources may be in a particular country/area or represent a number of very small facilities making it difficult to gather data.
Common reasons for exclusions, both relevant or not relevant, can include the following:

- Incomplete information for the period in question;
- Structural changes to the organization including mergers, acquisitions and divestments;
- Outsourcing and/or insourcing of activities; and
- Unreliable information.

The GHG Protocol’s Corporate Accounting and Reporting Standard notes on the reporting of exclusions (page 9) that “Specific exclusions…need to be clearly identified and justified, assumptions disclosed, and appropriate references provided for the methodologies applied and the data sources used. The information should be sufficient to enable a third party to derive the same results if provided with the same source data.”
Only select “No” if your answers to C6.1, C6.3, and C6.5 represent the total gross global emissions of all the companies, businesses, other entities or groups that fall within the definition of your organization’s reporting boundary (provided in C0.5).

(C6.4a) Provide details of the sources of Scope 1, Scope 2, or Scope 3 emissions that are within your selected reporting boundary which are not included in your disclosure.

Question dependencies

This question only appears if you select “Yes” in response to C6.4.

Change from last year

Modified question

Rationale

Ambition: Companies report emissions from all sources, and are transparent on all exclusions.

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Source of excluded emissions

Scope(s) or Scope 3 category(ies)

Relevance of Scope 1 emissions from this source

Relevance of location-based Scope 2 emissions from this source

Relevance of market-based Scope 2 emissions from this source

Relevance of Scope 3 emissions from this source

Text field [maximum 2,500 characters]

Select all that apply:

Scope 1
Scope 2 (location-based)
Scope 2 (market-based)
Scope 3: Purchased goods and services
Scope 3: Capital goods
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
Scope 3: Upstream leased assets
Scope 3: Downstream transportation and distribution
Scope 3: Processing of sold products
Scope 3: Use of sold products
Scope 3: End-of-life treatment of sold products
Scope 3: Downstream leased assets
Scope 3: Franchises
Scope 3: Investments [hidden for FS sector companies, data point requested in C-FS14.1a]
Scope 3: Other (upstream)
Scope 3: Other (downstream)

Select from:

Emissions are not relevant
Emissions are relevant but not yet calculated
Emissions are relevant and calculated, but not disclosed
Emissions excluded due to a recent acquisition or merger
Emissions are not evaluated

Select from:

Emissions are not relevant
Emissions are relevant but not yet calculated
Emissions are relevant and calculated, but not disclosed
Emissions excluded due to a recent acquisition or merger
Emissions are not evaluated

Select from:

Emissions are not relevant
Emissions are relevant but not yet calculated
Emissions are relevant and calculated, but not disclosed
Emissions excluded due to a recent acquisition or merger
Emissions are not evaluated

Select from:

Emissions are not relevant
Emissions are relevant but not yet calculated
Emissions are relevant and calculated, but not disclosed
Emissions excluded due to a recent acquisition or merger
Emissions are not evaluated

Date of completion of acquisition or merger	Estimated percentage of total Scope 1+2 emissions this excluded source represents	Estimated percentage of total Scope 3 emissions this excluded source represents	Explain why this source is excluded	Explain how you estimated the percentage of emissions this excluded source represents
7	8	9	10	11
[DD/MM/YYYY]	Numeric field [enter a value of 0-100 with 1 decimal places]	Numeric field [enter a value of 0-100 with 1 decimal place]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add Row]

Requested content

Source of excluded emissions (column 1)

Use this text field to name and briefly describe the source you are excluding. E.g. a geographic region, business activity, or type of facility.
If the source you are excluding is an organization (e.g. one of your subsidiaries or franchises), please state the full legal entity name of the organization in this column.
Your response to this question should be consistent with the boundary you have used to calculate and report emissions in C6.1, C6.3, and C6.5.

Scope(s) or Scope 3 category(ies) (column 2)

Select the Scope(s) and/or Scope 3 category(ies) of emissions from which you are excluding emissions from this source in your response to questions C6.1, C6.3 and/or C6.5.

Relevance of Scope 1 emissions from this source (column 3)

This column is presented if you select “Scope 1” in response to column 2 “Scope(s) or Scope 3 category(ies)”.
Emissions are not relevant – select this option if you have excluded Scope 1 emissions which you have identified as not relevant from this source.
Emissions are relevant but not yet calculated – select this option if you have excluded Scope 1 emissions from this source, you have identified these emissions as relevant, but you have not calculated them.
Emissions from this source are relevant and have been calculated, but are not disclosed – select this option if you have excluded from your CDP response Scope 1 emissions from this source that you have calculated and identified as relevant.
Emissions excluded due to a recent acquisition or merger – select this option if you have excluded Scope 1 emissions from this source due to an acquisition or merger that has taken place during the reporting period.
Emissions are not evaluated – select this option if you have excluded Scope 1 emissions from this source but have not evaluated the relevance of these emissions.

Relevance of Scope 2 (location-based or market-based) emissions from this source (column 4 and 5)

This column is presented if you select “Scope 2 (location-based)” (column 4) and/or “Scope 2 (market-based)” (column 5) in response to column 2 “Scope(s) or Scope 3 category(ies)”.
Emissions are not relevant – select this option if you have excluded Scope 2 emissions which you have identified as not relevant from this source.
Emissions are relevant but not yet calculated – select this option if you have excluded Scope 2 emissions from this source, you have identified these emissions as relevant, but you have not calculated them.
Emissions from this source are relevant and have been calculated, but are not disclosed –select this option if you have excluded from your CDP response Scope 2 emissions from this source that you have calculated and identified as relevant.
Emissions excluded due to a recent acquisition or merger – select this option if you have excluded Scope 2 emissions from this source due to an acquisition or merger that has taken place during the reporting period.
Emissions are not evaluated – select this option if you have excluded Scope 2 emissions from this source but have not evaluated the relevance of these emissions.

Relevance of Scope 3 emissions from this source (column 6)

This column is presented if you select a Scope 3 category in response to column 2 “Scope(s) or Scope 3 category(ies)”.
Emissions are not relevant – select this option if you have excluded Scope 3 emissions which you have identified as not relevant from this source.
Emissions are relevant but not yet calculated – select this option if you have excluded Scope 3 emissions from this source, you have identified these emissions as relevant, but you have not calculated them.
Emissions from this source are relevant and have been calculated, but are not disclosed – select this option if you have excluded from your CDP response Scope 3 emissions from this source that you have calculated and identified as relevant.
Emissions excluded due to a recent acquisition or merger – select this option if you have excluded Scope 3 emissions from this source due to an acquisition or merger that has taken place during the reporting period. This may only be used to exclude emissions from an acquired or merged organization’s value chain, not your company’s. For example, if you have acquired a company, you may select this option to report exclusions from the acquired company’s value chain (i.e. their Scope 3 emissions) but not your own value chain. For exclusions from your own value chain, select the most relevant other dropdown.
Emissions are not evaluated – select this option if you have excluded Scope 3 emissions from this source but have not evaluated the relevance of these emissions.

Date of completion of acquisition or merger (column 7)

This column is presented if “Emissions are excluded due to a recent acquisition or merger” is selected in column 3, 4, 5, or 6.

Estimated percentage of total Scope 1+2 emissions this excluded source represents (column 8)

This column is presented if any option other than “Emissions excluded due to recent acquisition or merger”, or “Emissions are not evaluated” is selected in column 3, and in either column 4 or 5.
This figure should be estimated using the following formula:

Estimated percentage of total Scope 1+2 emissions the excluded source represents = 100% x (Estimated Scope 1+2 emissions the excluded source represents) / (Total gross Scope 1+2 emissions reported in C6.1 and C6.3)

If you have calculated the Scope 1+2 emissions from the excluded source, use the formula above to provide the percentage of your total, gross, global Scope 1+2 emissions in the reporting year that the excluded source represents.
If you have not yet calculated Scope 1+2 emissions from the excluded source, or if activity data is unavailable, you may estimate the Scope 1+2 emissions for the excluded source. You should choose an estimation approach that is appropriate to your sector, organization, the excluded source, and the data available. For example, absolute Scope 1+2 emissions could be estimated using the Scope 1+2 emissions intensity of a similar source for which data is available, such as an industry-average emissions intensity for the type of source excluded per e.g. unit revenue, floor area, or FTE employee, or using proxy data and rough estimates. Ensure to be transparent in column 11 with regards to the estimation approach (what is estimated and how), and the data used for the estimation.

Estimated percentage of total Scope 3 emissions this excluded source represents (column 9)

This column is presented if any option other than “Emissions excluded due to recent acquisition or merger”, or “Emissions are not evaluated” is selected in column 6.
This figure should be estimated using the following formula:

Estimated percentage of total Scope 3 emissions the excluded source represents = 100% x (Estimated Scope 3 emissions the excluded source represents) / (Total gross Scope 3 emissions reported in C6.5)

If you have not yet calculated Scope 3 emissions from the excluded source, or if activity data is unavailable, you may estimate the Scope 3 emissions for the excluded source. You should choose an estimation approach that is appropriate to your sector, organization, the excluded source, and the data available. For example, absolute Scope 3 emissions could be estimated using the Scope 3 emissions intensity of a similar source for which data is available, such as an industry-average emissions intensity for the type of source excluded per e.g. unit revenue, floor area, or FTE employee, or using proxy data and rough estimates. Ensure to be transparent in column 11 with regards to the estimation approach (what is estimated and how), and the data used for the estimation.

Explain why this source is excluded (column 10)

Use this text field to describe why the source is excluded and its significance.

Explain how you estimated the percentage of emissions this excluded source represents (column 11)

This column is presented if any option other than “Emissions excluded due to recent acquisition or merger” or “Emissions are not evaluated” is selected in column 3, 4, 5 or 6.
Explain how you calculated the estimated percentage of your total, gross, global Scope 1+2, and Scope 3 emissions that the exclusion represents, including details of any emissions estimations and the estimation approaches used.
State whether you used the location-based or market-based Scope 2 figure from C6.3 in your calculation of the figure reported in column 8.
Provide a level of confidence for your estimations, and indicate whether the figures have been verified by a third party.

Example response

Worked example of excluded sources

In this instance presume that the company has selected ‘“Operational control’” in C0.5. Note that this example company response would be ineligible for the climate change A List due to excluded, relevant emissions and unevaluated, potentially relevant emissions.

Source of excluded emissions	Scope(s) or Scope 3 category(ies)	Relevance of Scope 1 emissions from this source	Relevance of location-based Scope 2 emissions from this source	Relevance of market-based Scope 2 emissions from this source	Relevance of Scope 3 emissions from this source	Date of completion of acquisition or merger
1	2	3	4	5	6	7
Four manufacturing facilities in Asia.	Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)	Emissions are not evaluated.	Emissions are relevant but not yet calculated.	Emissions are relevant but not yet calculated.	Emissions are relevant but not yet calculated.	n/a

Estimated percentage of total Scope 1+2 emissions this excluded source represents	Estimated percentage of total Scope 3 emissions this excluded source represents	Explain why this source is excluded	Explain how you estimated the percentage of emissions this excluded source represents
8	9	10	11
21%	17%	At present, we are only able to disclose our emissions from our European operations, but not our Asian operations. In terms of Scope 1 emissions, we are aware that our manufacturing operations may be associated with leakage of refrigerants, however we have not yet had the capacity to investigate and evaluate this thoroughly. In terms of Scope 2 emissions, we do have records of how much electricity we purchase in our four Asian facilities, but we have not yet adopted an approach to account for the associated Scope 2 emissions. As we have operations in Europe, where there are contractual instruments, we have also calculated a market-based figure. While there are no contractual instruments for our Asian operations, we are still unable to provide a market-based figure for those operations. In terms of Scope 3 emissions, we do not have access to data on the emissions created by the production and transportation of fuel.	We used a benchmarking approach to estimate the emissions for our four manufacturing facilities in Asia. We have ten European facilities of a similar size, age and build, for which we have calculated our scope 1 and 2 location-based emissions. We used their emissions data as a proxy to estimate the emissions of the four Asian facilities based on the floor area. Total scope 1 + 2 (location-based) for 10 European factories = 150,000tCO2e Total floor area for 10 comparable European facilities = 4000m2 Total floor area for 4 Asian facilities = 1000m2 Estimated emissions for 4 Asian facilities = 150,000 x (1000/4000) = 37,500tCO2e Estimated percentage of total Scope 1+2 emissions = 100% x 37,500/(37,500+150,000) = 20% Estimated percentage of total Scope 3 emissions = 100% x 13,700/80,000 = 17%

Additional information

Relevance in GHG reporting

The GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (page 24) provides the following definition of relevance for GHG reporting: “A relevant GHG report contains the information that users – both internal and external to the company – need for their decision making. Companies should use the principle of relevance when determining whether to exclude any activities from the inventory boundary. Companies should also use the principle of relevance as a guide when selecting data sources. Companies should collect data of sufficient quality to ensure that the inventory is relevant (i.e., that it appropriately reflects the GHG emissions of the company and serves the decision-making needs of users) (...) and should not exclude any activities from the inventory that would compromise the relevance of the reported inventory.”
A practical rule of thumb often applied to evaluate the relevance of an emissions’ source or activity is to consider the sources that contribute to 95% of the emissions inventory once sources are listed by the size of emissions. This rule is of practical value in particular when a low number of sources contribute to a large proportion of the total emissions while a large number of sources contribute to a small percentage of emissions. In order to utilize the 95% threshold, the emissions from all sources or activities need to be quantified or estimated to ensure they meet this threshold. Relevance should apply not only to the size of emissions, but also other criteria, such as the potential to drive emissions reductions, the cost-benefit of gathering the data, stakeholder expectations, and potential uses of the data.
Relevance of emissions should not be limited to sustainability topics that have a significant financial impact on your organization, or “materiality”.
Examples of circumstances where the reasons for excluding known emissions sources from the GHG statement may not be reasonable include:

- The entity has relevant Scope 1 emissions but only includes Scope 2 emissions in its CDP disclosure.
- The boundary has been defined, but particular geographies within the boundary are not being reported although they represent relevant emissions; and
- The emissions reported exclude business divisions/areas of business with relevant emissions which are only a small proportion of the total emissions included in the GHG statement (i.e., once emissions are quantified at a sufficient level of quality they should be included in the inventory, even if they represent only a small share of the total).

Methodologies for estimating emissions from excluded sources

Where verifiable data is not available, organizations may estimate emissions data by:

- Direct comparison: using data from another comparable time period to fill the gap for the excluded source e.g. emissions from the same time period in another year.
- Pro-rata extrapolation: using average data from one period of time to estimate data for another shorter period e.g. using average daily emissions from 1st January to 30th November to estimate emissions for 1st to 31st December.
- Benchmarking: using emissions or activity data for one asset or business activity as a proxy to estimate emissions or activity data for another asset or business activity e.g. using the annual emissions of one office to estimate emissions from another office of similar size, age or build.

Scope 3 emissions data

(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing and explaining any exclusions.

Change from last year

Modified guidance

Rationale

For most companies, the majority of emissions occur in the value chain. CDP asks this question to gauge the thoroughness of companies’ accounting processes and to understand how companies are analyzing their emissions footprints.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

S&P Global Corporate Sustainability Assessment

Scope 3 Financed Absolute Emissions

Scope 3 Financed Emission Intensity

Scope 3 GHG Emissions

TCFD Disclosure

Response options

Please complete the following table:

Scope 3 category	Evaluation status	Emissions in reporting year (metric tons CO₂e)	Emissions calculation methodology	Percentage of emissions calculated using data obtained from suppliers or value chain partners	Please explain
Purchased goods and services	Select from: Relevant, calculated Relevant, not yet calculated Not relevant, calculated Not relevant, explanation provided Not evaluated	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Select all that apply: Supplier-specific method Hybrid method Average data method Spend-based method Average product method Average spend-based method Fuel-based method Distance-based method Waste-type-specific method Asset-specific method Lessor-specific method Site-specific method Methodology for direct use phase emissions, please specify Methodology for indirect use phase emissions, please specify Franchise-specific method Investment-specific method Other, please specify	Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]	Text field [maximum 2,400 characters]
Capital goods
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Upstream transportation and distribution
Waste generated in operations
Business travel
Employee commuting
Upstream leased assets
Downstream transportation and distribution
Processing of sold products
Use of sold products
End of life treatment of sold products
Downstream leased assets
Franchises
Investments [row hidden for FS sector companies, data point requested in C-FS14.1a]
Other (upstream)
Other (downstream)

Requested content

General

According to the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (page 107): “Any estimates of avoided emissions must be reported separately from a company’s Scope 1, Scope 2, and Scope 3 emissions, rather than included or deducted from the Scope 3 inventory”. In the context of your CDP response, you can provide information on actions you take to reduce your Scope 3 emissions in question C4.3b on emissions reduction initiatives.
You should complete every row of the table (with the exception of the last two rows “Other (upstream)” and “Other (downstream)” which are optional), but not necessarily all columns.
The columns that you need to complete in response to question C6.5 will depend on your selection made in the “Evaluation status” column and are summarized in the guidance below for column 2 “Evaluation status”.

Scope 3 category (column 1)

This column is already completed in the ORS and all categories will appear. The categories of Scope 3 emissions have been taken from the Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard, published in September 2011. Companies should refer to the standard for information on the emissions sources that each category comprises and additional information on how to calculate these emissions.

Evaluation status (column 2)

This column should be completed for all Scope 3 categories, with the exception of “Other (upstream)” and “Other (downstream)” – these two rows should only be used if companies have a source of Scope 3 emissions that is not provided in the categories above. The evaluation status includes two components: whether a Scope 3 category is relevant to your business and whether you have calculated the emissions in that category. Relevance should be determined with reference to the GHG Protocol Scope 3 standard and CDP's Technical Note on the relevance of Scope 3 categories by sector – see Additional Information for the Scope 3 relevance criteria . Select from:

- Relevant, calculated - Select this option if the Scope 3 category is relevant to your business and you have calculated the emissions associated with at least part of it.
- Relevant, not yet calculated - Select this option if you are aware that the Scope 3 category is relevant to your business but you have not yet calculated the emissions associated with it.
- Not relevant, calculated - Select this option if you know that this Scope 3 category is not one of the most important for your business but as part of your Scope 3 work, you have been able to calculate the emissions associated with it.
- Not relevant, explanation provided - Select this option if you have investigated this Scope 3 category and have been able to determine that it is not relevant. This could be based on quantitative or qualitative investigations.
- Not evaluated - Select this option if you have not yet investigated this Scope 3 category and therefore do not know whether or not it is relevant for your business.

Emissions in reporting year (metric tons CO2e) (column 3)

This column is only presented if “Relevant, calculated” or “Not relevant, calculated” is selected in column 2 “Evaluation status”.
Enter the emissions appropriate to each Scope 3 category identified in metric tons CO2e, entering numbers only up to 99,999,999,999 without commas and up to three decimal places. Negative numbers are not allowed as reporting needs to be gross, not net figures. Emission figures should be for the reporting year only.
Entering 0 implies that you have calculated the emissions associated with this category and they are equal to zero.

Emissions calculation methodology (column 4)

This column is only presented if “Relevant, calculated” or “Not relevant, calculated” is selected in column 2 “Evaluation status”.
Select the calculation methodology(ies) used to calculate the emissions associated with this Scope 3 category.
You should consult the GHG Protocol’s Technical Guidance for Calculating Scope 3 Emissions for details of which emissions calculations methodologies are relevant to each Scope 3 category.

Percentage of emissions calculated using data obtained from suppliers or value chain partners (column 5)

This column is only presented if “Relevant, calculated” or “Not relevant, calculated” is selected in column 2 “Evaluation status”.
Such data obtained from suppliers or value chain partners may take the form of primary activity data, or emissions data calculated by suppliers that are specific to suppliers’ activities. More information on this can be found in Chapter 7, Collecting Data, of the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Please explain (column 6)

For all Scope 3 categories that you have identified as “Relevant, calculated” or “Not relevant, calculated” in the “Evaluation status” column, provide a short description of the types and sources of data used to calculate emissions (e.g. activity data, emission factors and GWP values), and any further details of the emissions calculation methodology(ies) selected in column 5 such the assumptions and allocation methods used.
State the extent of the boundary of your calculation – see pages 34-38 of the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard for information on the minimum and, where applicable, optional boundary of each Scope 3 category.
For all transport-related emissions (i.e., those in Scope 3 category 4: “Upstream transportation and distribution”, category 6: “Business travel”, category 7 “Employee commuting” and category 9: “Downstream transportation and distribution”), indicate the life cycle stages covered in your calculation (e.g., Well-to-Wheel etc.). See the Explanation of Terms for more information.
Note that any exclusions within a Scope 3 category should not be detailed here, but should be disclosed in question C6.4a.
For all Scope 3 categories that you have identified as “Not relevant, explanation provided” in the “Evaluation status” column, provide details of how you have reached the conclusion that the source is not relevant and include any qualitative or quantitative reasoning.
If you wish to provide additional context to any of the rows in the table, such as to explain why emissions have decreased or increased, you can also do that in this column.

Note for all high-impact sector companies:

Companies in one of CDP’s high impact sectors (see here for more information) should refer to CDP’s Technical Note on the relevance of Scope 3 categories by sector, which identifies the relevant and most significant Scope 3 categories for each sector based on a review of literature and analysis of CDP 2021 data.

Note for oil & gas and coal sector companies:

CDP has produced sector-specific guidance for estimating Scope 3 category 11 (use of sold products) emissions for the Oil & Gas and Coal sectors.

Note for financial services sector companies:

For financial services sector companies responding to the full version of the questionnaire, Scope 3 Category 15 “Investments” emissions has been pulled out of question C6.5 and is requested to be disclosed in C-FS14.1a. As the majority of emissions occur in relation to financial products and services and/or investments, financed emissions, or Scope 3 Category 15 “Investments” emissions as defined by the GHG Protocol is the most relevant category to financial services organizations.
Thus, Row 15 “Investments” is hidden in this question, please disclose this in C-FS14.1a.

Note for companies responsible for the transportation (including maritime), storage, transmission and distribution of fossil fuels:

Scope 3 emissions from the handling of fossil fuels can be significant, as highlighted by the IEEFA. Therefore, companies responsible for the transportation (including maritime), storage, transmission and distribution of fossil fuels should disclose emissions from the final use of these products as Scope 3 category 11 “Use of Sold Products”.
Scope 3 category 11 emissions from fossil fuels should be calculated based on the throughput of fossil fuel products in your operations during the reporting year.
As per the ACT initiative’s O&G Sector methodology, these emissions are a consequence of a companies’ activities even though the fossil fuels may not be owned by the company and thus are included in Scope 3.
Please refer to the CDP Technical Note “Guidance methodology for the estimation of Scope 3 category 11 emissions for oil and gas companies” for further guidance.

Explanation of terms

Well-to-Wheel (WTW): A Well-to-Wheel analysis considers both the emissions from the vehicle itself, but also the emissions from the process of extracting the fuel used to power the vehicle's engine. It can be subdivided into the Well-to-Tank (WTT) (energy provision) analysis and the Tank-to-Wheel (TTW) (vehicle efficiency) analysis. Compared to a full emissions Life Cycle Assessment (LCA), the production, maintenance, and disposal of the vehicle are not assessed.

Example Response

Example response for the selection of “Relevant, calculated” in column 2.

Scope 3 category	Evaluation status	Emissions in reporting year (metric tons CO₂e)	Emissions calculation methodology	Percentage of emissions calculated using data obtained from suppliers or value chain partners	Please explain
Downstream transportation and distribution	Relevant, calculated	486,000	Distance-based method	80	To calculate upstream product transportation and distribution we used shipping weight and distance data provided by our logistics division based on fiscal year 2021 shipment data, which provides resolution to final destinations at the UK county level. Emissions were calculated using UK Government GHG Conversion Factors for Company Reporting, using a kgCO2e per tonne.km emission factor for an average-laden HGV. Where data was not available, final truck shipment from distribution centers to final destinations was estimated as 200 kilometers.

Example response for the selection of “Not relevant, explanation provided” in column 2.

Scope 3 category	Evaluation status	Emissions in reporting year (metric tons CO₂e)	Emissions calculation methodology	Percentage of emissions calculated using data obtained from suppliers or value chain partners	Please explain
Franchises	Not relevant, explanation provided	N/A	N/A	N/A	We do not have any franchises, so this category is not relevant to our organization.

Additional information

Relevance criteria for Scope 3 emissions sources: Companies should not exclude any activity that would compromise the relevance of the reported inventory. The table below from the Corporate Value Chain (Scope 3) Accounting and Reporting Standard provides a list of criteria for determining relevance. Companies in one of CDP’s high-impact sectors should also refer to CDP’s Technical Note on the relevance of Scope 3 categories by sector, which identifies the relevant and most significant Scope 3 categories for each sector based on a review of literature and analysis of CDP 2021 data.

Scope 3 screening tool: To help facilitate the adoption of the Scope 3 Standard and assist companies in determining the relevance of Scope 3 emissions sources, the GHG Protocol, in collaboration with Quantis, have released a free Scope 3 screening tool. This tool asks a number of relatively simple questions to approximate your Scope 3 inventory, and can be used by companies of all sizes and all sectors. Please note that this tool is not a data collection tool and should only be used to make a first approximation of your Scope 3 emissions. Having used the tool to help determine the relevance of Scope 3 categories, companies should then develop more accurate approaches for categories shown to be a relevant source of emissions.

(C6.5a) Disclose or restate your Scope 3 emissions data for previous years.

Question dependencies

This question only appears if you select “1 year” or “2 years” or “3 years” or “4 years” or “5 years” in response to “Select the number of past reporting years you will be providing Scope 3 emissions data for” in C0.2.

Change from last year

Modified question

Rationale

A prerequisite for a meaningful emissions data comparison is a consistent data set over time. This question enables companies to restate Scope 3 emissions data previously supplied to CDP, for example to ensure that their historical data reflects their current organizational boundary. It also enables first-time responders to provide Scope 3 emissions data for the five years prior to the reporting year.

Ambition: Companies disclose Scope 3 emissions from previous years to enable tracking over time and to reflect changes that would otherwise compromise the consistency and relevance of the reported GHG emissions information.

Connection to other frameworks

TCFD

Metrics and Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

Response options

Please complete the following table:

Year	Start date	End date	Scope 3: Purchased goods and services (metric tons CO₂e)	Scope 3: Capital goods (metric tons CO₂e)	Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2) (metric tons CO₂e)	Scope 3: Upstream transportation and distribution (metric tons CO₂e)
1	2	3	4	5	6	7
Past year 1 [Only appears if “1 year”, “2 years”, “3 years”, “4 years” or “5 years" is selected in column 6 of C0.2]	[DD/MM/YYYY]	[DD/MM/YYYY]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
Past year 2 [Only appears if “2 years”, “3 years”, “4 years” or “5 years" is selected in column 6 of C0.2]
Past year 3 [Only appears if “3 years”, “4 years” or “5 years" is selected in column 6 of C0.2]
Past year 4 [Only appears if “4 years” or “5 years” is selected in column 6 of C0.2]
Past year 5 [Only appears if “5 years” is selected in column 6 of C0.2]

Scope 3: Waste generated in operations (metric tons CO₂e)	Scope 3: Business travel (metric tons CO₂e)	Scope 3: Employee commuting (metric tons CO₂e)	Scope 3: Upstream leased assets (metric tons CO₂e)	Scope 3: Downstream transportation and distribution (metric tons CO₂e)	Scope 3: Processing of sold products (metric tons CO₂e)	Scope 3: Use of sold products (metric tons CO₂e)
8	9	10	11	12	13	14
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]

Scope 3: End of life treatment of sold products (metric tons CO₂e)	Scope 3: Downstream leased assets (metric tons CO₂e)	Scope 3: Franchises (metric tons CO₂e)	Scope 3: Investments (metric tons CO₂e) [column hidden for FS sector companies]	Scope 3: Other (upstream) (metric tons CO₂e)	Scope 3: Other (downstream) (metric tons CO₂e)	Comment
15	16	17	18	19	20	21
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Text field [maximum 5,000 characters]

Requested content

General

Emissions must be reported in gross, not net figures. Therefore, negative numbers are not allowed.
Entering zero suggests that you have measured your emissions and that they are equal to zero.
You should enter data for all Scope 3 categories for which emissions have been calculated for the reporting period specified in columns 2 and 3. If you have not calculated emissions for a Scope 3 category for that reporting period, leave the corresponding column blank.
Ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
Emissions estimates are acceptable, as long as there is transparency with regard to the estimation approach (what is estimated and how) and the data used for the analysis is adequate to support the objectives of the inventory. If applicable to your organization's reporting of Scope 3 emissions, please outline this in the comment column.

Note for first time responders

If you are a first-time responder, please provide gross global Scope 3 emissions data for up to five years prior to the current reporting year.
The number of past year rows that will appear is dependent on your selection in column 6 of C0.2.
Input Scope 3 emissions data for the year prior to the current reporting year in the first row and work backwards.
Use the comment column to report relevant information regarding your organization's past Scope 3 emissions data, such as the emissions calculation methodologies used, and an indication of the proportion of emissions calculated using data obtained from suppliers or value chain partners.

Note for restatements

If you have chosen to restate your organization's gross global Scope 3 emissions data previously supplied to CDP (as indicated in column 6 of C0.2), you may do so here.
The number of past year rows that will appear is dependent on your selection in column 6 of C0.2.
Reporting recalculated figures for these years is optional.
Restated Scope 3 emissions data needs to be entered in reverse order i.e. you should work backwards from the most recent reporting year.
Use the comment column to identify that this is restated data and the reason for the restatement.
For more information on restatements see the CDP technical note on restatements here.

Note for financial services sector companies:

Column 18 “Scope 3 Category 15 “Investments” emissions” is not shown to financial services sector companies completing the full version of the questionnaire.

Questions C6.8 and C6.9 only apply to organizations with activities in the following sectors:

Agricultural commodities
Food, beverage & tobacco
Paper & forestry

Emissions intensities

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO₂e per unit currency total revenue and provide any additional intensity metrics that are appropriate to your business operations.

Change from last year

Modified question

Rationale

Intensity measures describe an organization’s CO₂e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth etc. Many companies and investors have historically tracked environmental performance with intensity ratios.

Ambition: Companies disclose that intensity metrics covering their gross global Scope 1 and 2 emissions have decreased in the reporting year.

Connection to other frameworks

SDG

Goal 13: Climate action

S&P Global Corporate Sustainability Assessment

TCFD Disclosure

Response options

Please complete the following table. It is requested that you first report your emissions intensity figure per unit of currency total revenue. You are able to add rows by using the “Add Row” button at the bottom of the table.

Intensity figure

Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO₂e)

Metric denominator

Metric denominator: Unit total

Scope 2 figure used

% change from previous year

Direction of change

Reason(s) for change

Please explain

Numerical field [enter a number from 0- 999,999,999,999,999 using a maximum of 10 decimal places and no commas]

Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places and no commas]

Select from:

unit total revenue
barrel of oil equivalent (BOE)
billion (currency) funds under management
full time equivalent (FTE) employee
kilometer
liter of product
megawatt hour generated (MWh)
megawatt hour transmitted (MWh)
metric ton of product
ounce of gold
ounce of platinum
passenger kilometer
room night produced
square foot
square meter
metric ton of aggregate
metric ton of aluminum
metric ton of coal
metric ton of ore processed
metric ton of steel
unit hour worked
unit of production
unit of service provided
vehicle produced
Other, please specify

Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places and no commas]

Select from:

Location-based
Market-based

Numerical field [enter a number from 0-999 using a maximum of 2 decimal places]

Select from:

Increased
Decreased
No change

Select all that apply:

Change in renewable energy consumption
Other emissions reduction activities
Divestment
Acquisitions
Mergers
Change in output
Change in revenue
Change in methodology
Change in boundary
Change in physical operating conditions
Unidentified
Other, please specify

Text field [maximum 2,400 characters]

[Add Row]

Requested content

General

It is requested that you first report your emissions intensity figure per unit of currency total revenue and if applicable provide any additional intensity metrics that are appropriate to your business operations. The currency reported here should be the same one selected in C0.4. Emissions intensity per unit of revenue is one the most common and easy means to calculate emissions intensity, which is why it is requested that you provide this figure. However, this is not necessarily always the most appropriate to individual businesses and therefore you can also report an additional intensity or normalized metric that is most appropriate to your organization’s own operations.
If you are a privately held organization, you may report whichever intensity is relevant for you. Please note that per unit of revenue is the preferred disclosure.
If you did not disclose to CDP last year, or did not use this data point, please use last year’s inventory and financial data to provide a calculation of percentage change. If you did not measure your emissions last year, complete column 1 and explain why you do not have the data available in column 9.
If your change in emissions intensity is attributed to a decline or an increase in your business output (products or services) due to the COVID-19 pandemic, please select "Change in output" in column 8 "Reason for change" and provide further details of how your output was affected in the "Please explain" column.

Intensity figure (column 1)

Intensity ratios express GHG impact per unit of physical activity or unit of economic output.
Your intensity figure per unit of currency total revenue is calculated by dividing total Scope 1 and 2 emissions by unit revenue, making sure that the revenue figure used applies to the same organizational boundary as your emissions data.
Important points to remember when calculating intensity are:

- Intensity = Emissions (metric tons CO₂e) (Numerator) / Business metric (e.g. revenue) (Denominator)
- Numerator units: the intensity metrics requested in question C6.10 should have emissions in metric tons CO₂e as the numerator. They should include Scope 1 and Scope 2 emissions combined. This figure can be obtained by summing the figures given in answer to questions C6.1 and C6.3.
- Denominator units: When calculating your intensity, you should ensure that the units of your data match those specified in the intensity metric. For example, question C6.10 requests for intensity in metric tons CO₂e per unit currency revenue. This means that your revenue figure (the denominator) should be in the currency you specified in C0.4 and in single units, i.e. if your revenue is 5 Million US$ your unit revenue is 5000000. Another example would be metric tons CO₂e per MWh – if your data is in kWh you must convert it to MWh before using it in the calculation.
- Boundary and Exclusions: You should ensure that the organizational boundary and any exclusions specified for your numerator is the same as for your denominator. For example, when entering your emissions per FTE employee you should ensure that you only include those FTE employees that are within the sections of the organization covered by the organizational boundary of your emissions and take into account any exclusions (as specified in question C6.4a).

Metric numerator (column 2)

This column is fixed and specifies that the emissions should be in metric tons CO₂e, derived from your gross global Scope 1 emissions figure (question C6.1) plus your gross global Scope 2 emissions figure (question C6.3).

Metric denominator (column 3)

To report your organization’s emissions intensity per unit currency total revenue, select "unit total revenue" in column 3 (metric denominator) for this figure.
Please note that the denominator in the selection “unit total revenue” is per single unit (1) of the currency specified in question C0.4. Please do not report your revenue emissions intensity based on multiples of your selected currency (e.g. do not report in multiples of Yen). It is understood that this will likely result in your intensity figure being quite small (less than 0.01).
If you select “Other, please specify”, provide a label for the Metric denominator.

Metric denominator: Unit total (column 4)

Ensure that the metric denominator figure provided in this column is the same unit that was chosen in column 3.
For example, if your chosen metric in the previous column was FTE, you should input here how many FTE you had during the reporting year.

Scope 2 figure used (column 5)

Indicate which Scope 2 figure has been used in your metric numerator.

% change from previous year (column 6)

If you have experienced no change, please enter 0 (zero) in this column.
If the previous year’s figure has been reported but recalculated since, please use the recalculated figure for the calculation of percentage change and note this in the last column (8). The previous year compared should apply to the 12-month period directly prior to the reporting period, even if it does not completely overlap with the period previously reported to CDP.

Direction of change (column 7)

A declining intensity ratio reflects a positive performance (improvement), while an increasing intensity ratio reflects a negative performance (decline).
If the percentage change from last year is 0 (zero) select "No change".

Reason(s) for change (column 8).

Further details on each of the options are provided below:
- Change in renewable energy consumption – a change in your organization's emissions intensity due to any consumption of self-generated or purchased renewable energy that was additional in the reporting year. Note that if your emissions intensity has changed due to changing Scope 2 accounting method (i.e., from Scope 2 location-based to Scope 2 market-based or vice versa), you should not select this option, but select “Change in methodology” (see below).
- Other emissions reduction activities – a change in your organization’s emissions intensity because of proactive emissions reduction initiatives or activities, for example those listed in question C4.3b, other than those caused by a change in renewable energy consumption.
- Divestment – a change that occurred due to selling off certain aspects of the businesses.
- Acquisitions – a change that occurred due to purchasing or obtaining another company/subsidiary/facility.
- Mergers – a change that occurred due to business mergers.
- Change in output – a change that occurred as a result of changes (increases or decreases) in your business output (i.e. a product or service); this could be, for example, organic growth, purchase of additional facilities due to business expansion, declines in sales due to a global recession, or release of a new product.
- Change in revenue – a change that occurred due to changes (increases or decreases) in your organization’s revenue (irrespective of business output); this could be, for example, due to an increase in price of products or services sold.
- Change in methodology – a change that occurred due to modifications in the way that the inventory is calculated, for example, changes in emissions factors used or changes in methodology protocol followed. If your Scope 1+2 emissions intensity has changed as a result a change in Scope 2 accounting practices for low-carbon energy, you should select this option.
- Change in boundary – a change in your organization’s emissions intensity due to a change in the boundary used for your inventory calculation, i.e. changing from financial control to operational control. This option could also apply if you have incorporated facilities into your inventory that were excluded in previous years.
- Change in physical operating conditions – a change that occurred due to changes in the weather that cannot be accounted for under the other options available, e.g. increased production of hydroelectricity because of increased rainfall.
- Unidentified – select this option if you are not able to identify the reason for the change in your Scope 1+2 emissions intensity from the previous year.

Please explain (column 9)

Expand on the reason(s) selected in column 8, providing regional, sectoral and/or operational context.
Explain the degree to which different factors influenced the change in your intensity figure.
If you selected “Other emissions reduction initiatives” in column 8, specify the initiatives that contributed to the change, including those reported in C4.3b.
You may also use this column to provide any additional explanation that is relevant to capture the full complexity of the emissions intensity change.

Note for coal sector companies:

Coal sector companies are requested to provide an emissions intensity figure per unit of currency total revenue and in addition, per metric ton of coal.

Note for electric utility sector companies:

Electric utility sector organizations are requested to provide an emissions intensity figure per unit of currency total revenue and in addition, report your organization’s gross global combined Scope 1 and 2 emissions intensity per MWh of gross power generated and/or per MWh of power transmitted – make sure to select megawatt hour generated (MWh) and/or megawatt hour transmitted (MWh).

Note for oil and gas sector companies:

Oil and gas sector organizations are requested to provide an emissions intensity figure per unit of currency total revenue.
Please note that question C-OG6.12 asks oil and gas organizations to provide the intensity figures for Scope 1 emissions (metric tons CO₂e) per unit of hydrocarbon category.

Note for transport OEMs and transport services sector companies:

Transport OEMs and transport services sector organizations are requested to provide an emissions intensity figure per unit of currency total revenue.
Please note that, dependent on the extent you are able to disaggregate your emissions intensity for each transport mode between Scopes 1, 2, and 3: Category 4 upstream transportation and distribution, transport services organizations are asked to provide primary intensity (activity-based) metrics that are appropriate to emissions from transport activities in Scope 1, 2, and 3 in question C-TS6.15.

Note for real estate sector companies:

In addition to reporting emissions intensity figure per unit of currency total revenue, real estate companies should consider reporting emissions intensity by occupants or square area.

Note for capital goods sector companies:

In addition to reporting an emissions intensity figure per unit of currency total revenue, capital goods companies should consider reporting emissions intensity by unit of production or unit of service provided.
If you measure the emissions intensity of specific products or product ranges, you will have the opportunity to provide this information in questions C-CG8.5 and C-CG8.5a.

Explanation of terms

Intensity metrics: Intensity metrics describe an organization’s CO₂e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth. Intensity is calculated by dividing the CO₂e emissions figure (the numerator) by an alternative business metric (the denominator), such as the number of full-time equivalent employees, the revenue or tons of aggregate produced.
Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard).

Example response

Worked example of calculating emissions intensities figures

A reporting organization has gross total combined Scope 1 and 2 emissions of 300,000 metric tons CO2e, revenue of 5 Million US$ and 3,000 FTE employees. In this case, the company could calculate and report its emission intensity figures by revenue and by FTE as follows:

1. Emissions intensity in metric tons CO₂e per unit currency total revenue

Intensity = 300,000 (metric tons CO₂e)/5,000,000 (US$)= 0.06

2. Emissions intensity in metric tons CO₂e per FTE employee

Intensity = 300,000 (metric tons CO₂e)/3,000 (FTE employee)= 100

Intensity figure	Metric numerator (Gross global combined Scope 1 and 2 emissions)	Metric denominator	Metric denominator: Unit total	Scope 2 figure used	% change from previous year	Direction of change	Reason(s) for change	Please explain
0.06	300,000	unit total revenue	5,000,000	Market-based	3	Decreased	Change in renewable energy consumption	We have been making progress on our initiative to increase our renewable energy consumption. Our additional renewable electricity procurement directly from an off-site wind farm has increased our share of RE by 10% this year, leading to a decrease in emissions intensity. We have reported details of this initiative in C4.3b.
100	300,000	full time equivalent (FTE)	3,000	Market-based	4	Decreased	Other emissions reduction activities	In addition to reducing our emissions by shifting to electric vehicles we have hired more full time employees in the reporting year. We have an ongoing initiative to shift our company fleet to electric vehicles which we have detailed in C4.3b.

C7 Emissions breakdown

Module Overview

This module enables respondents to break down Scope 1 and Scope 2 emissions by country, business division, facility and sector.

By breaking down emissions by country or region, this data can be made available to regions, states and sub-national bodies to help guide the development of emissions-related legislation.

Breaking down emissions by business division, facility and activity grants data users and investors transparency into the sources of a company's Scope 1 and 2 emissions and allows tracking the performance of divisions and individual facilities over time.

The module also requests data on emissions other than carbon dioxide. These gases are often only reported in CO₂-equivalents (CO₂e), and so their contribution to overall emissions is sometimes masked.

Key changes

New questions:
- C7.7 asks whether you include emissions data for subsidiaries in your CDP response.
- C7.7a requests a breakdown of Scope 1 and 2 emissions by subsidiary.

For the agricultural commodities, food/beverage/tobacco and paper/forestry sectors only:

Modified guidance:
- C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4 – additional information on the use of biogas certificates for scope 1 reporting has been updated.
- C-AC7.4a/C-FB7.4a/C-PF7.4a – clarification that companies should not be using the draft GHG Protocol land sector and removals guidance for their 2023 CDP response.
- C-AC7.4b/C-FB7.4b/C-PF7.4b – clarification that companies should not be using the draft GHG Protocol land sector and removals guidance for their 2023 CDP response.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on emission breakdowns for the following high-impact sectors:

Agricultural commodities
Capital goods
Cement
Chemicals
Coal
Electric utilities
Food, beverage & tobacco
Metals & mining
Oil & gas
Paper and forestry
Steel
Transport original equipment manufacturers (OEMs)
Transport services

Pathway diagram - questions

This diagram shows the general questions contained in module C7. To access question-level guidance, use the menu on the left to navigate to the question.

Scope 1 breakdown: GHGs

Question C7.4 only applies to organizations with activities in the following sectors:

Agricultural commodities
Food, beverage & tobacco
Paper & forestry
Coal
Electric utilities
Oil and gas
Cement
Chemical
Metals and mining
Steel
Transport OEMs
Transport services

Emissions breakdown by subsidiary

(C7.7) Is your organization able to break down your emissions data for any of the subsidiaries included in your CDP response?

Change from last year

New question

Rationale

Awareness of subsidiary-level emission figures enables a parent company to better target action to reduce emissions. The breakdown also provides investors and other data users with the opportunity of better understanding the emissions sources and therefore the risks and opportunities throughout the business.

Ambition: Companies are transparent about their emissions inventories, including their subsidiaries.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

Response options

Select from:

Yes
No
Not relevant as we do not have any subsidiaries

Requested content

General

The “consolidation approach” identifies which entities are included within the reporting boundary. Unless stated otherwise, the information you provide in response to the CDP climate change questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses, etc., within your reporting boundary.
Select “Yes” if, based on your chosen consolidation approach (provided in C0.5), your responses to questions C6.1, C6.3, and C6.5 include emissions data from subsidiaries that fall within your reporting boundary, and you are able to provide a breakdown of these emissions by subsidiary. If you select “Yes” you will be asked to break down your Scope 1 and Scope 2 emissions by subsidiary in the subsequent question.
Select “No” if your organization does have subsidiaries which fall within your reporting boundary, but you are not able to breakdown emissions data from the subsidiaries included in your CDP response. Note that if the subsidiaries fall within your organization’s reporting boundary and you are not including emissions data from the subsidiaries in your responses to C6.1, C6.3, and C6.5, you should disclose the subsidiaries as exclusions in C6.4a.
Select “Not relevant as we do not have subsidiaries” if based on your chosen consolidation approach (provided in C0.5) you do not have any subsidiaries which fall within your organization’s reporting boundary.

Explanation of terms

Subsidiary: a company owned or controlled by a parent company or holding company.
Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization is known as the “consolidation approach”. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms.

(C7.7a) Break down your gross Scope 1 and Scope 2 emissions by subsidiary.

Question dependencies

This question only appears if you select “Yes” in response to C7.7.

Change from last year

New question

Rationale

Awareness of subsidiary-level emissions enables a parent company to target actions to reduce emissions. The breakdown also provides investors and other data users with the opportunity to better understand the emissions sources and therefore risks and opportunities throughout the business.

Ambition: Companies are transparent about their emissions inventories, including their subsidiaries

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

Response options

Please complete the following table. You are able to add rows by using the "Add row" button at the bottom of the table.

*Column/row appearance is dependent on selections in this or other questions.

Subsidiary name	Primary activity	Select the unique identifier(s) you are able to provide for this subsidiary	ISIN code – bond*	ISIN code – equity*	CUSIP number*	Ticker symbol*
1	2	3	4	5	6	7
Text field [maximum 200 characters]	Select from [Drop-down list of CDP-ACS activities]	Select all that apply: ISIN code – bond ISIN code - equity CUSIP number Ticker symbol SEDOL code LEI number Another unique identifier, please specify No unique identifier	Text field [maximum 12 characters]	Text field [maximum 12 characters]	Text field [maximum 9 characters]	Text field [maximum 5 characters]

SEDOL code*	LEI number*	Other unique identifier*	Scope 1 emissions (metric tons CO₂e)	Scope 2, location-based emissions (metric tons CO₂e)	Scope 2, market-based emissions (metric tons CO₂e)	Comment
8	9	10	11	12	13	14
Text field [maximum 7 characters]	Text field [maximum 20 characters]	Text field [maximum 50 characters]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 3 decimal places and no commas]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 3 decimal places and no commas]	Text field [maximum 2,500 characters]

[Add row]

Requested content

General

Add a new row for each subsidiary you are providing emissions data for. You should aim to break down your Scope 1 and Scope 2 emissions by all subsidiaries that fall within your organization’s reporting boundary (as defined by your chosen consolidation approach in C0.5) but note that the total emissions entered will not be cross-checked by CDP for consistency with your total emissions reported in C6.1 and C6.3. If you are not able to provide a breakdown for all subsidiaries, please ensure that you have included at a minimum any subsidiaries who were requested to disclose to investors for the reporting year.
Emissions must be reported in gross, not net figures. Therefore, negative numbers are not allowed.
Emissions figures should be for the reporting year only (as defined by your answer to C0.2).
If you are unable to provide either a Scope 1 or Scope 2 emissions figure for a subsidiary, leave the relevant column blank and do not enter zero. Entering zero indicates that you have measured the emissions and that they are equal to zero.

Subsidiary name (column 1)

Provide the full legal entity name of the subsidiary you are entering data for.

Primary activity (column 2)

Select the option that best describes the primary activity from which the subsidiary derives revenue. If the subsidiary engages in multiple activities, select the activity from which it derives the greatest share of its revenue.
For a full list of classifications including descriptions of each activity, see CDP’s Activity Classification System.

Select the unique identifier(s) you are able to provide for this subsidiary (column 3)

If your subsidiary organization has multiple unique identifiers, select all the unique identifiers you are able to provide.
For each unique identifier selected, columns 4-10 will appear for you to enter the unique identifier.
Ensure that you enter the correct format for the unique identifier(s) you are providing. For example, ISIN codes include a two-letter country code, followed by a nine-character alphanumeric identifier and a single check digit.

Scope 1 emissions (metric tons CO₂e) (column 11)

Report in metric tons CO₂e the proportion of organization’s Scope 1 emissions attributed to the subsidiary identified in column 1.

Scope 2 location-based emissions (metric tons CO₂e) (column 12)

Report in metric tons CO₂e the proportion of organization’s Scope 2, location-based emissions attributed to the subsidiary identified in column 1.

Scope 2 market-based emissions (metric tons CO₂e) (column 13)

Report in metric tons CO₂e the proportion of organization’s Scope 2, market-based emissions attributed to the subsidiary identified in column 1.

Comment (column 14)

You can use this text field to enter any additional relevant information. For example, you may wish to provide context to the subsidiaries you have included within your response to this question, based on your chosen consolidation approach.

Explanation of terms

Subsidiary: a company owned or controlled by a parent company or holding company.
Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization is known as the “consolidation approach”. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms.
ISIN: International Securities Identification Number, a 12-character alphanumeric code used to identify a security, such as a stock or bond. It is structured with the first two letters referencing the country of origin of the issuer for the security, in accordance with ISO 3166. The second grouping consists of nine characters made up of digits and letters, which is the unique identifying code for the security. In the U.S. and Canada this is known as the CUSIP number (see below). The final digit is the check digit, which ensures the authenticity of the code.
CUSIP number: Committee on Uniform Security Identification Procedures number, a 9-character alphanumeric code that identifies a security for the purposes of facilitating clearing and settlement of trades. CUSIPs are used to distinguish, among other reasons, between multiple share classes or bond tranches. CUSIPs are mostly used in the United States and Canada.
Ticker symbol: A ticker symbol, also known as a stock symbol, is a unique series of letters assigned to a security for trading purposes. Ticker symbols are usually related to the organization’s name, and additional letters denote additional characteristics such as share class or trading restrictions.
LEI number: The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions.
SEDOL code: Stock Exchange Daily Official List code, a 7-character identification code consisting of two parts: a 6-character alphanumeric code and a trailing check digit. SEDOLs issued prior to January 26, 2004 were composed only of numbers. SEDOLs serve as the National Securities Identifying Number for all securities issued in the United Kingdom.

Question C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7 only applies to organizations with activities in the following sectors:

Cement
Chemicals
Coal
Metals & mining
Oil & gas
Steel
Transport OEMS
Transport services

Question C7.8 only applies to organizations with activities in the following sectors:

Chemicals
Transport manufacturers

Emissions performance

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?

Change from last year

No change

Rationale

Investors and data users are interested in understanding whether companies are successfully reducing their emissions year over year.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

Response options

Select one of the following options:

Increased
Decreased
Remained the same overall
This is our first year of reporting, so we cannot compare to last year
We don’t have any emissions data

Requested content

General

This question requires you to select the option from the drop-down menu that best describes how your combined Scope 1 and 2 emissions have changed compared with the previous year.
The change in emissions can be calculated using the following formula:

Total gross Scope 1+2 emissions for the current reporting year – previous year’s total gross Scope 1+2 emissions = total change in emissions

If the resulting figure is negative, then your company’s overall emissions decreased compared to the previous year. If the resulting figure is positive, overall emissions have increased compared to the previous year. If the resulting figure is equal to zero, overall emissions have not changed compared to the previous year.
In this context your Scope 1 emissions are the figure supplied in response to question C6.1, and your Scope 2 emissions are the figure supplied in response to question C6.3.
If the previous year’s figures have been restated, please refer to CDP’s Technical Note on “Restatements” on whether to use the emissions figures originally reported to CDP or the restated figures for the calculation. The previous year compared should apply to the 12-month period directly prior to the reporting period, even if it does not completely overlap with the period previously reported to CDP.

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined), and for each of them specify how your emissions compare to the previous year.

Question dependencies

This question only appears if you select “Increased”, “Decreased” or “Remained the same overall” in response to C7.9.

Change from last year

Minor change

Rationale

When investigating how year-on-year gross global emissions (Scope 1 + 2 combined) have changed, CDP and its investors are interested in changes at a granular level; thus allowing CDP’s data users to gain an insight into factors than have contributed to these changes.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Response options

Please complete the following table:

Reason	Change in emissions (metric tons CO₂e)	Direction of change in emissions	Emissions value (percentage)	Please explain calculation
Change in renewable energy consumption	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Select from: Increased Decreased No change	Numerical field [enter a number from 0-999 using a maximum of 4 decimal places and no commas]	Text field [maximum 2,400 characters]
Other emissions reduction activities
Divestment
Acquisitions
Mergers
Change in output
Change in methodology
Change in boundary
Change in physical operating conditions
Unidentified
Other

Requested content

General

Categorize the changes that have occurred in your gross global emissions. You are asked to break down all the different factors that have influenced any overall change in Scope 1+2 emissions; whether increasing or decreasing factors.
Break down each applicable factor, describe each in a separate row, and provide the value for the change in overall emissions that is attributed to each of the factors.
Even if companies have experienced no change overall or an increase in absolute emissions for Scopes 1 and 2, companies should still disclose reduction activities.
In the unlikely event that companies have genuinely not experienced any change in any of the categories, they should complete the row “Other”, specifying “No change” in the text box provided and then enter 0 in column 2 ‘Emissions value (percentage)’.
Emissions reduction activities could arise from a number of different sources, including reductions in energy consumption or lower emission equipment/processes. If your emissions have changed compared to the previous reporting year due to several emissions reduction activities, you should aggregate the emissions change that occurred due to these activities and provide this information in row 2 in C7.9a.
Any changes in emissions that are attributed to a decline or an increase in your business output (products or services) due to the COVID-19 pandemic should be reported using row “Change in output”. Please state how your output was affected in “Please explain calculation”.

Reason (column 1)

This column is fixed; however, if a row does not apply to you, for example, your company did not experience any mergers or acquisitions during the reporting year, leave that row blank.
Further details on each of the options are provided below:

- Change in renewable energy consumption (row 2)

- Report the change in your organization's emissions because of the consumption of self-generated or purchased renewable energy.
- In cases where you have renewable energy, you may include this on the provision that you have accounted for those renewable energy purchases in your market-based Scope 2 figure reported in C6.3 and the purchases reported here were additional purchases in the reporting year.
- Due to the change in accounting practices around Scope 2 with the addition of Scope 2 market-based emissions and low-carbon energy, companies may see their Scope 2 emissions decrease. Any change in Scope 2 emissions due to the change in accounting method from Scope 2 location-based to Scope 2 market-based should not be reported here, but rather under “Change in methodology” (see below).
- CDP requires disclosure of gross emissions. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions from the use of goods and services, and/or reductions attributable to the sequestration or transfer of GHGs.

- Other emissions reduction activities (row 3)

- This refers to changes in emissions that have occurred because of proactive emissions reduction initiatives or activities, for example those listed in question C4.3b, other than those caused by a change in renewable energy consumption (which should be reported in the row ‘Change in renewable energy consumption’).

- Divestment (row 4)

- This refers to changes that occur as a result of selling off certain aspects of the businesses.

- Acquisitions (row 5)

- This refers to changes that occur as a result of purchasing or obtaining another company/subsidiary/facility.

- Mergers (row 6)

- This refers to changes that occur as a result of business mergers.

- Change in output (row 7)

- This refers to changes that occur as a result of changes (increases or decreases) in your business output (i.e. a product or service); this could be, for example, organic growth, purchase of additional facilities due to business expansion, declines in sales due to a global recession, or release of a new product.

- Change in methodology (row 8)

- This refers to changes that occur due to modifications in the way that the inventory is calculated, for example, changes in emissions factors used or changes in methodology protocol followed.
- Companies that have amended their Scope 2 emissions figure as a result of the changes in Scope 2 accounting practices for low carbon energy should report this here.

- Change in boundary (row 9)

- This refers to changes in the boundary used for your inventory calculation, i.e. changing from financial control to operational control. This option could also apply if you have incorporated facilities into your inventory that were excluded in previous years.

- Change in physical operating conditions (row 10)

- This refers to changes in weather that have a significant influence on how the company operates, but that cannot be accounted for under the other options available, e.g. increase production of hydroelectricity because of increased rainfall.

- Unidentified (row 11)

- Complete this row if you are not able to identify the reason for the change in emissions from year to year.

- Other (row 12)

- Complete this row if there is an alternative reason(s) for the change. Where you have used this option, please provide details of the reason(s) for the change in the ‘Please explain’ column.

Direction of change in emissions (column 3)

Enter the direction of change of gross global (Scope 1 + Scope 2) emissions due to the reason specified, i.e. increased; decreased, or; No change.
You should only select “No change” if the percentage change is exactly zero, or zero to four decimal places (e.g. 0.00003).

Emissions value (percentage) (column 4)

Enter the change in emissions attributed to the reason (factor) provided in column 1 as a percentage of the Scope 1 and 2 combined emissions. This value should not be greater than 999 and should not have more than four decimal places. If the value rounds to less than zero to four decimal places (e.g. 0.00003), you should enter 0.0000. There is no need to enter the % symbol, and direction of change will be indicated in column 3. This value should be calculated as follows:

Please explain calculation (column 5)

Report the figures used in the calculation for the figure in the ‘emissions value %’ column. Refer to Example responses for further guidance.
Using no more than 2,400 characters you may also use this text box to provide any additional explanation that is relevant to capture the full complexity of the emissions changes.

Note for electric utility sectors

Variations in emissions may be attributable to changes in capacity (that translated into changes in output), plant outages (which can also translate into changes in output) and weather events (changes in physical operating conditions). If so, this should be included in your answer to C7.9a.
You can specify the specific drivers (e.g. changes in output due to the utilization of additional capacity coming in operation) in the comment box.

Example response

Worked example of reporting change in emissions

Example 1: The gross global emissions (Scope 1 + 2) of company X for this reporting year are 208 metric tons of CO₂e. Its gross global emissions for the previous reporting year were 200 metric tons of CO₂e. This means that the total change in emissions is 8 metric tons of CO₂e, equal to a 4% increase, according to the formula in the explanation of terms, above: (8/200) * 100 = 4%.

The change from 200 to 208 metric tons is attributed to two reasons: 1) an increase in 12 metric tons of CO₂e emissions due to increased production (i.e. a change in output); and 2) an estimated reduction of 4 metric tons of CO₂e achieved due to emissions reduction activities.

The emissions value (percentage) for each of these two individual factors can also be calculated using the same formula described in the guidance, above. In this example, the percentage change in emissions due to increased production is: (12/200) * 100 = 6%. This represents a 6% increase in emissions due to increased production.

The percentage change in emissions due to emissions reduction activities: (-4/200) * 100 = -2%. This represents a 2% decrease in emissions due to emissions reduction activities.

This company should respond in the following way to questions C7.9 and C7.9a:

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?

Increased

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year.

Reason	Change in emissions (metric tons CO₂e)	Direction of change in emissions	Emissions value (percentage)	Please explain calculation
Other emissions reduction activities	4	Decreased	2	Due to ‘other emissions reduction activities’ implemented during the year, despite an increase in production, emissions have not grown as high as could be expected. Last year 4 tons of CO ₂e were reduced by our emissions reduction projects, and our total Scope 1 and Scope 2 emissions in the previous year was 200 tCO ₂e, therefore we arrived at -2% through (-4/200) * 100= -2% (i.e. a 2% decrease in emissions).
Change in output	12	Increased	6	If no measures had been introduced, increased demand leading to increase output would have generated an extra 6% more of emissions.

Example 2: Companies may be used to seeing emissions information presented graphically where reductions appear below the horizontal axis. The tables below the graph shows how this data can be used to complete question C7.9a.

	2016 gross global emissions	What happened during the reporting year				2017 gross global emissions
	2016 gross global emissions	Other emissions reduction activities	Acquisitions	Change in boundary	Other	2017 gross global emissions
Emissions value (percentage)		-11	10	2	-5	-4
Tons CO₂e	210573	-23163	21057.3	4211.5	-10542.8	202136

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year.

Reason	Change in emissions (metric tons CO₂e)	Direction of change in emissions	Emissions value (percentage)	Please explain calculation
Other emissions reduction activities	23163	Decreased	11	Gross Scope 1+2 emissions decreased by 11%, due to energy efficiency activities undertaken. We have achieved energy consumption reductions of 14% in New Zealand, 9% in Australia and 8% in USA. These are due to energy efficiency measurements in all our main buildings, which have obtained maximum GreenStar certification, a tri-generation plant which increased the efficiency of our largest data center, and improved metering and monitoring of energy consumption. All have led to an overall reduction of energy consumption across our offices. Changes due to variation of emission factors associated with the grid mix have also contributed to a decrease of emissions, although that is not considered here. Through these activities we reduced our emissions by 23163 tons CO ₂e, and our total S1 and S2 emissions in the previous year was 210573 tons CO ₂e, therefore we arrived at -11% through (-23163/210573) * 100 = -11% (i.e. an 11% decrease in emissions).
Acquisitions	21057.3	Increased	10	In the United States, the acquisition of a major business competitor resulted in a circa 36% increase of the emissions in the USA and a 10% increase of our gross global emissions. This is mainly the result of additional buildings being included as new sources of GHG emissions.
Change in boundary	4211.5	Increased	2	Emissions increased by 2% due to the inclusion of additional inventory items for our minority positions in Asia. As an example the Hong Kong office reported for the first time the emissions due to vehicle fleet and business travel.
Other	10542.8	Decreased	5	Scope 1 emissions for our USA operations decreased 25% compared to previous year inventory. This is equivalent to a decrease of 3100 tons CO ₂e. This decrease is due to the new gas powered tri-generation plant, substituting previous fuel oil boiler. This and other changes cumulated in a decrease of 10542.8 tons CO ₂e, therefore we arrived at -5% through (-10542.8/210573) * 100 = -5% (i.e. an 5% decrease in emissions).

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Question dependencies

This question only appears if you select “Increased”, “Decreased” or “Remained the same overall” in response to C7.9.

Change from last year

No change

Rationale

This question provides more transparency on how your organization’s emissions performance figures are derived.

Response options

Select one of the following options:

Location-based
Market-based
Don’t know

Requested content

General

In alignment with the GHG Protocol Scope 2 Guidance, companies are only required to compare their Scope 2 emissions for either their location-based or market-based figure, but are required to be transparent about which figure they use.
You should only select one option, as your market-based figure may inherently be a combination of location-based and market-based calculations if you have operations in regions where there are contractual instruments, and other operations in regions where there are not contractual instruments.

C8 Energy

Module Overview

Energy related activities represent, for many sectors, the most significant GHG emission sources. This module provides transparency on the consumption and generation of energy by organizations.

Accurate emissions accounting depends on a comprehensive account of energy. It is expected that organizations have already collected the necessary energy data for the disclosure of emissions in previous modules. Unless otherwise stated in the question-specific guidance, energy generation data requested in this module is in alignment with Scope 1 emissions sources i.e. from generating units owned or controlled by the organization. The requested data on purchased or acquired energy is in alignment with Scope 2 emissions reporting.

Key changes

Modified questions:
- C8.2e – updated sourcing method options and question structure updated for clarity.
- C8.2g – has revision to text to specify the reporting year with two new columns to capture the breakdown of consumption of purchased and self-generated energy.

For RE100 members only:

Modified question:
- C8.2h – has been modified for clarity, with revised sourcing method options, and to request additional details of companies’ renewable electricity purchases.
- C8.2i – has reordered columns for clarity.
- C8.2j – has five columns removed and one new column asking if energy attribute certificates have been issued for the renewable electricity generation being reported.

For the cement sector only:

Modified question:
- C-CE8.2c – has a new comment column to provide the criteria used to classify biomass as sustainable.

For the electric utilities sector only

Modified guidance:
- C-EU8.2d – has modified guidance on reporting bioenergy with carbon capture and storage (BECCS.)

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on energy-related activities for the following high-impact sectors:

Capital goods
Cement
Chemicals
Electric utilities
Metals & mining
Steel
Transport original equipment manufacturers (OEMs)
Transport services

Pathway diagram - questions

This diagram shows the general questions contained in module C8. To access question-level guidance, use the menu on the left to navigate to the question.

(C8.1) What percentage of your total operational spend in the reporting year was on energy?

Change from last year

No change

Rationale

The aim of this question is to identify the degree to which your organization’s activities are sensitive to energy costs and energy supply.

Response options

Select one of the following options:

0%
More than 0% but less than or equal to 5%
More than 5% but less than or equal to 10%
More than 10% but less than or equal to 15%
More than 15% but less than or equal to 20%
More than 20% but less than or equal to 25%
More than 25% but less than or equal to 30%
More than 30% but less than or equal to 35%
More than 35% but less than or equal to 40%
More than 40% but less than or equal to 45%
More than 45% but less than or equal to 50%
More than 50% but less than or equal to 55%
More than 55% but less than or equal to 60%
More than 60% but less than or equal to 65%
More than 65% but less than or equal to 70%
More than 70% but less than or equal to 75%
More than 75% but less than or equal to 80%
More than 80% but less than or equal to 85%
More than 85% but less than or equal to 90%
More than 90% but less than or equal to 95%
More than 95% but less than or equal to 100%
Don’t know

Requested content

General

Ensure that the boundary used for calculating your operational spend is the same as that for your energy spend (i.e. it includes the same facilities, geographies, etc.).
“Operational spend” should exclude extraordinary expenses such as gains or losses on the sale of assets. The calculation should also exclude the cost of interest or taxes on profits.

Explanation of terms

Operational spend: Operational spend should be the sum of the costs for the following two types of costs to the business:

- Cost of goods sold (also known as 'direct costs'): This generally refers to the raw material, energy and labor costs directly identified in the cost of the end product. These costs fluctuate and vary depending on the number or volume of goods sold.
- Operating costs (also known as 'indirect costs' or 'overheads'): This generally refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular job or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.

Energy-related activities

(C8.2) Select which energy-related activities your organization has undertaken.

Question dependencies

The energy-related activities that you select in response to C8.2 determine which energy breakdowns you will be prompted to respond to in the proceeding questions. Please note, if your response to C8.2 is amended, data in dependent questions may be erased.

Change from last year

No change

Rationale

This question provides data users with information on the organization’s consumption of energy forms relating to Scope 1 and Scope 2 emissions, and transparency on the generation of energy.

Response options

Please complete the following table:

Activity	Indicate whether your organization undertook this energy-related activity in the reporting year
Consumption of fuel (excluding feedstocks)	Select from: Yes No
Consumption of purchased or acquired electricity
Consumption of purchased or acquired heat
Consumption of purchased or acquired steam
Consumption of purchased or acquired cooling
Generation of electricity, heat, steam, or cooling

Requested content

Consumption of fuel (excluding feedstocks) (Row 1)

You should select ‘Yes’ in row 1 ‘Consumption of fuel (excluding feedstocks)’ if fuel was consumed inside your organizational boundary in the reporting year. All fuels accounted for in the calculation of Scope 1 emissions (C6.1) and fuels accounted for in the calculation of emissions from biogenic carbon (C6.7a) are included. Consumption of nuclear fuel is not included.

Consumption of purchased or acquired electricity heat, steam and/or cooling (Rows 2-5)

You should select ‘Yes’ in rows 2-5 according to whether your organization has consumed electricity, heat, steam, and/or cooling that was purchased or acquired, i.e. brought into the organizational boundary. This excludes consumption of electricity, heat, steam or cooling that was produced by the organization, i.e. from inside the organizational boundary. It also excludes purchased or acquired electricity, heat, steam or cooling that is not consumed inside the organizational boundary.
Purchased or acquired electricity, heat, steam or cooling that is wasted should still be counted as consumption.
The activities of rows 2-5 are aligned with the boundary for Scope 2 emissions.

Generation of electricity, heat, steam, or cooling (Row 6)

You should select ‘Yes’ in row 6 if your organization generated electricity, heat, steam, or cooling in the reporting year, regardless of whether this generation was consumed, exported, or wasted.

Explanation of terms

Excluding feedstocks: Fuels consumed as feedstocks are fuels that are not combusted for energy purposes. For example, naphtha and ethane are feedstocks that may be converted into petrochemical products such as ethylene, and should not be included. The steel industry is a special case because coke and fuel injectants consumed at the blast furnace serve as feedstocks and a source of energy. These fuels are considered feedstocks and should not be counted. However, all fuels consumed that are derived from fuel feedstocks, e.g. blast furnace gas, coke oven gas, and smelting reduction gas, should be counted. Companies that consume fuel as feedstocks will have the opportunity to disclose these fuels in sector specific questions.
Purchased or acquired electricity, steam, heat, cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational/sector boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from an industrial process, should still be accounted for if it is consumed.

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

Question dependencies

This question only appears if you select “Yes” to any of the activities listed in C8.2. A row will appear in this table for each energy-related activity selected in C8.2. The "Total energy consumption" row will always appear.

Change from last year

No change

Rationale

Given the importance of energy consumption in emissions accounting, this question attempts to provide transparency to data users on the consumption of energy by the organization. The question provides the opportunity for organizations to disclose their total energy consumption and distinguish renewable and non-renewable forms of energy.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

S&P Global Corporate Sustainability Assessment

Energy Consumption

Renewable Energy Consumption

Response options

Please complete the following table:

Activity	Heating value	MWh from renewable sources	MWh from non-renewable sources	Total (renewable + non-renewable) MWh
Consumption of fuel (excluding feedstock)	Select from: LHV (lower heating value) HHV (higher heating value) Unable to confirm heating value	Numerical field [enter a number from 0 to 9,999,999,999 using up to 2 decimal places and no commas]	Numerical field [enter a number from 0 to 9,999,999,999 using up to 2 decimal places and no commas]	Numerical field [enter a number from 0 to 9,999,999,999 using up to 2 decimal places and no commas]
Consumption of purchased or acquired electricity	N/A
Consumption of purchased or acquired heat	N/A
Consumption of purchased or acquired steam	N/A
Consumption of purchased or acquired cooling	N/A
Consumption of self-generated non-fuel renewable energy	N/A		N/A
Total energy consumption	N/A

Requested content

General

Figures you provide should be for the reporting year only (as defined by your answer to C0.2).
If you have reported a market-based Scope 2 figure in question C6.3, you should use the market-based approach to calculate the share of renewable energy consumed in this question. This should be based on the same data sources as your applied emission factors and should be consistent with the market-based Scope 2 emission factor hierarchy. For example, if you purchased Energy Attribute Certificates (EACs) to claim half of your electricity consumption as renewable, you will need to use the relevant data source(s) from the emission factor hierarchy (e.g. residual mix data) to work out the share of renewables in the remaining half.
If you have only reported a location-based Scope 2 figure in question C6.3, you should use the location-based approach to calculate the share of renewable energy consumed in this question using the location-based Scope 2 emission factor hierarchy.
If you do not consume an energy carrier, then you should enter zero (0) in the relevant field.
This table is for gross energy consumption data only. You should not provide net consumption nor deduct for energy produced or exported from the organizational boundary. Because feedstock fuels are excluded from this question, this approach should not lead to double counting.
You should enter all energy data in Mega-Watt-hours (MWh). If your raw data is in energy units other than MWh, such as Giga-Joules (GJ) or British Thermal Units (Btu), then you should convert to MWh. For e.g., 1 Giga-Joule (GJ) = 0.277778 MWh, so if your data is in GJ then should multiply your data by 0.277778. If your data is in million Btu, then you need to multiply your data by 0.29307.
Conversion factors from other energy units are available from a variety of online calculation tools, including from IEA and OnlineConversion.com, or from conversion tables such as those in EPA AP-42 (Annex A).
If your raw data is in volume units, e.g. cubic feet or gallons, or in mass units, e.g. kilograms (kg) or pounds (lb), then you should convert to energy units using factors for fuel heating/calorific values. These are available from numerous sources, some of which are listed below:

- IPCC Guidelines for National GHG Inventories (Volume 2, Table 1.2, p1.18-1.19)
- EPA AP-42 (Annex A)
- IEA Statistics Manual (Annex 3, p180-183)
- API Compendium (Table 3-8, p3.20-3.21)

Further guidance on unit conversion is available in the following Technical Note: “Conversion of fuel data to MWh”.
Leaving a response blank is interpreted as non-disclosure. For numerical fields, values of zero imply a measurement has been made, and the value is zero. For numerical fields where no measurement has been made, please leave the field blank.

Activity (column 1)

This column is driven by the activities for which you selected ‘Yes’ in response to C8.2.

Consumption of fuel (excluding feedstock)

All fuel consumed for energy purposes inside the organizational boundary should be included, regardless of whether the fuel was purchased or produced by the organization. If a fuel is consumed as a feedstock for the production of another fuel, then the feedstock should not be included, but combustion of the produced fuel should be included. Ultimately, if a fuel is combusted, i.e. consumed for energy purposes and not as a feedstock, then it should be included (see ‘Explanation of terms’ for more detail).
Consumption of renewable fuels should be accounted for here. This includes biomass (solid and liquid biofuels and biogas), biomass-derived wastes and renewably derived hydrogen.
If you do not have exact consumption data, you may alternatively estimate your company’s consumption by reviewing fuel and energy purchasing orders.

Consumption of purchased or acquired electricity, heat, steam, cooling

If your raw data for steam is in physical units, e.g. pounds (lb) or kilograms (kg), then you should convert to energy units. The energy content of steam varies with temperature and pressure. Organizations can refer to The Climate Registry’s General Reporting Protocol, Chapter 15, section 15.2, step 1, which explains how to calculate the energy content of steam.
Cooling is frequently purchased in refrigeration-ton hours; 1 ton-hour is equal to 12,000 Btu, which is equal to 0.003516 MWh.

Consumption of self-generated non-fuel renewable energy

If your organization produces renewable energy that is not based on fuel (such as solar, wind, hydro, geothermal, marine), then any consumption of this energy should be entered here.
Consumption of renewable fuels (such as solid and liquid biofuels and biogas) should be excluded because these should be accounted for in the row “Consumption of fuel (excluding feedstock)”.
All forms of non-fuel renewable energy - electricity, heat, steam, or cooling – shall be included.

Total energy consumption

Enter the total energy consumption by your organization in this row, alongside total energy from renewable sources and non-renewable sources.
The sum of renewable and non-renewable energy consumption should equal the total MWh entered in the last column.
The data entered in each column of this row should also equal the sum of all the above rows (if the above rows have been fully disclosed for).
If you do not disclose data for specific energy carriers in the rows above, but you are able to enter the total energy consumed by your organization, then you should do so.

Heating value (column 2)

This column is only applicable to the consumption of fuels because it is a measure of combustion energy.
Energy from fuel combustion can be measured by the higher heating value (HHV) or lower heating value (LHV) of the combusted fuel.
Higher heating value (HHV) is also known as gross calorific value (GCV), and lower heating value (LHV) is also known as net calorific value (NCV). Typically, LHV/HHV ratio is 0.95 for solid and liquid hydrocarbon fuels, such as coal and oil, and 0.9 for gaseous hydrocarbon fuels, such as natural gas.
Fuel energy data in HHV is typically used in the United States and Canada, whereas LHV is more commonly the unit used in other countries/areas and by international bodies. If you do not know the unit applicable to your raw data, you may wish to infer it based on the location from which the data is sourced, i.e. if the fuel related data is sourced from outside of the United States and Canada, then it is likely that LHV is applicable.

MWh from renewable sources (column 3)

Renewable energy is energy taken from sources that are inexhaustible such as wind, solar, hydropower, geothermal, biomass and marine (tidal and wave energy).
Waste energy should not be included if it is derived from fossil fuels.
Hydrogen should not be included if it is derived from fossil fuels.
Blended fuels deriving from both renewable and non-renewable sources should be split by the proportion contained from each source. For municipal waste and refuse-derived fuel, only the fraction of the fuel that is derived from biomass can be included as renewable energy, when calculating renewable energy consumption totals. Further explanations of municipal waste and a glossary of fuel definitions is provided in the CDP Technical Note: “Fuel Definitions”.

MWh from non-renewable sources (column 4)

All energy not identified as deriving from renewable sources should be entered, e.g. coal, oil, natural gas, etc.
Direct consumption of nuclear fuel should not be included, as this is covered in more detail in questions for electric utilities. Consumption of purchased or acquired electricity, steam, heat and/or cooling from nuclear sources, however, should be included.

Total (renewable + non-renewable) MWh (column 5)

Total MWh is equal to the sum of MWh from renewable sources (column 3) and MWh from non-renewable sources (column 4).If you have entered data in column 3 and column 4, then you should ensure that the sum of this data is equal to the data in column 5.

Explanation of terms

Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
Excluding feedstocks: Fuels consumed as feedstocks are fuels that are not combusted for energy purposes. For example, naphtha and ethane are feedstocks that may be converted into petrochemical products such as ethylene, and should not be included. The steel industry is a special case because coke and fuel injectants consumed at the blast furnace serve as feedstocks and a source of energy. These fuels are considered feedstocks and should not be counted. However, all fuels consumed for energy, i.e. combusted, that are derived from fuel feedstocks, e.g. blast furnace gas, coke oven gas, and smelting reduction gas, should be counted. Companies that consume fuel as feedstocks will have the opportunity to disclose these fuels in sector specific questions.
Heating Value: Lower heating value (LHV) and Higher heating value (HHV), also known as net calorific value (NCV) and gross calorific value (GCV) respectively, are different measures of heat energy released from fuel combustion. Figures measured in HHV are larger because HHV includes the latent heat of water vaporization from combustion, whereas LHV does not. The difference between LHV and HHV is related to the fuel’s hydrogen content.
Purchased or acquired electricity, steam, heat, cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from a third party’s industrial processes, should still be accounted for if it is consumed.

(C8.2g) Provide a breakdown by country/area of your non-fuel energy consumption in the reporting year.

Change from last year

Modified question

Rationale

Breaking down energy consumption to the country/area level is useful to data users as this is often the level at which energy-related legislation is introduced. Data from this question can help state, region and sub-national bodies guide the development of energy-related legislation.

Ambition: Companies provide a comprehensive account of their energy consumption, including a breakdown by country/area for transparency.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 13: Climate action

RE100

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

*Column presented to RE100 members only.

Country/area	Consumption of purchased electricity (MWh)	Consumption of self-generated electricity (MWh)	Is this electricity consumption excluded from your RE100 commitment?*	Consumption of purchased heat, steam, and cooling (MWh)	Consumption of self-generated heat, steam, and cooling (MWh)	Total non-fuel energy consumption (MWh) [Auto-calculated]
Select from: [Country/area drop-down list]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places]	Select from: Yes No	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places]	Numerical field [0-999,999,999,999]

[Add row]

Requested content

General

You should include consumption from both purchased/acquired energy and self-generated energy in this question. Energy that is purchased but not physically consumed (e.g. traded power, financial instruments), or energy that is self-generated but not physically consumed, should not be included here.
Energy consumption figures should be for the reporting year only (as defined by your answer to C0.2).
If you are a member of the RE100 initiative, the loads that your organization may have chosen to exclude from the boundary of its RE100 target under the RE100 materiality threshold provisions (see Section Six: Additional provisions in the RE100 technical criteria) must still be reported in this question, using column 4 to identify where the materiality threshold provisions have been applied.

Country/area (column 1)

Select a country/area in accordance with CDP's Technical Note on “Countries, Areas and Regions”.
For countries such as the USA, Canada, or Brazil where several grids can exist within a country/area, companies are welcome to provide further breakdown details at state/sub-national level using “Other, please specify”.

Consumption of purchased electricity (MWh) (column 2)

Enter in megawatt hours (MWh) the total amount of purchased electricity consumed by your organization in the selected country/area in the reporting year.

Consumption of self-generated electricity (MWh) (column 3)

Enter in megawatt hours (MWh) the total amount of self-generated electricity consumed by your organization in the selected country/area in the reporting year.
If your organization has self-generated and consumed electricity using Combined Heat and Power (CHP), this electricity consumption should be included here.

Is this consumption excluded from your RE100 commitment? (column 4)

This column only appears to RE100 companies.
Select “Yes” if you are excluding the electricity consumption reported in both column 2 and column 3.
This column must only be used to describe where your organization is exempting consumption in particular countries or areas from the boundary of its RE100 target as allowed under the RE100 materiality threshold provisions (see Section Six: Additional provisions in the RE100 technical criteria).

Consumption of purchased heat, steam, and cooling (MWh) (column 5)

Enter in megawatt hours (MWh) the total amount of purchased heat, steam, and cooling consumed by your company in the selected country/area in the reporting year.

Consumption of self-generated heat, steam, and cooling (MWh) (column 6)

Enter in megawatt hours (MWh) the total amount of heat, steam, and cooling self-generated and consumed by your company in the selected country/area in the reporting year.

Total non-fuel energy consumption (MWh) (column 7)

This column will be auto-calculated in the ORS from columns 2, 3, 5 and 6. Ensure you have entered data into these columns.

C9 Additional metrics

Module Overview

This module requests reporting organizations to present relevant climate-related metrics that may indirectly or directly impact their emissions or energy use.

This module includes one general question on additional climate-related metrics and a number of sector-specific questions on metrics such as production outputs, low-carbon technology implementation, transfers & sequestration of CO₂ emissions and low-carbon investments.

Key changes

For the oil and gas and coal sectors only:

New question:
- C-OG9.5a/C-CO9.5a – requests details of investment in exploration/expansion of new fossil fuel resources.

For the electrical utilities sector only:

Modified question:
- C-EU9.5a – has a new column requesting the most recent year in which a new power plant was approved for development for each primary power generation source.

For multiple sectors:

Modified question:
- C-CE9.6a/C-CG9.6a/C-CH9.6a/C-CN9.6a/C-CO9.6a/C-EU9.6a/C-MM9.6a/C-OG9.6a/C-RE9.6a/C-ST9.6a/C-TO9.6a/C-TS9.6a – has a new column for planned R&D investment, and requests details of how R&D investment is aligned with companies’ climate commitments and/or climate transition plan.

For the oil and gas sector only:

Modified question:
- C-OG9.8a – has an additional column requesting the type of CO2 transfer.
- C-OG9.8b – now requests additional data on CO2 leakage and long-term storage.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on climate-related metrics for the following high-impact sectors:

Capital goods
Cement
Chemicals
Coal
Construction
Electric utilities
Metals & mining
Oil & gas
Real estate
Steel
Transport original equipment manufacturers (OEMs)
Transport services

Pathway diagram - questions

This diagram shows the general questions contained in module C9. To access question-level guidance, use the menu on the left to navigate to the question.

Other climate-related metrics

(C9.1) Provide any additional climate-related metrics relevant to your business.

Change from last year

No change

Rationale

CDP data users seek to understand in which areas, beyond GHG emissions, companies are trying to reduce their environmental impacts.

Connection to other frameworks

TCFD

Metrics & Targets recommended disclosure a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Description

Metric value

Metric numerator

Metric denominator (intensity metric only)

% change from previous year

Direction of change

Please explain

Select from:

Waste
Energy usage
Land use
Other, please specify

Numerical field [enter a number from 0 to 99,999,999,999 using up to 2 decimal places]

Text field [maximum 50 characters]

Numerical field [enter a number from 0 to 999 using up to 2 decimal places]

Select from:

Increased
Decreased
No change

Text field [maximum 2,400 characters]

[Add Row]

Requested content

General

Complete the table to report any additional climate-related metrics your business tracks beyond emissions reductions and renewable energy-related activities.
If you track more than one additional climate-related metric, describe them each in a separate row.

Description (column 1)

Select the type of metric applicable to your business. If none of the listed drop-downs apply, select “Other, please specify” and provide a label for the “Description”.

Metric value (column 2)

Enter the quantity of the unit tracked and reported in column 3. E.g. if your company tracks kilograms of waste, enter the kilograms measured during the reporting year.
When providing an intensity metric, provide the value of the intensity. E.g. if your companies tracks kilograms of waste per FTE, enter the kilograms measured during the reporting year normalized to the number of FTE in the reporting year.

Metric numerator (column 3)

Enter the unit of the metric that your company tracks. This unit corresponds to the value entered in column 2.

Metric denominator (column 4)

This column is only applicable for companies tracking an intensity metric (e.g., kilograms of waste per FTE). If you do not track an intensity metric, leave this column blank.

% Change from previous year (column 5)

If you have experienced no change, please enter 0 (zero) in this column.
The previous year compared should apply to the 12-month period directly prior to the reporting period, even if it does not completely overlap with the period previously reported to CDP. It is understood that this metric has not been reported to CDP before and thus the reporting year for this metric may not directly overlap with other metrics reported to CDP.
Leave the column blank if this is the first year you have tracked this metric.

Direction of change (column 6)

Use this column to outline the direction of change from the previous year.
A declining intensity ratio reflects a positive direction of change. E.g. your waste last reporting year was 10 metric tons/FTE and this year is 5 metric tons/FTE. This indicates a 50% decrease compared to the previous year.
If the percentage change from last year is 0 (zero) then select “no change”.

Please explain (column 7)

Use this column to provide any additional context relevant to the metric you are reporting and to the direction of change. Additional information could include projects or initiatives implemented to achieve progress on this metric, or any timeframes included in these goals.

Note for agricultural sectors:

You should report data associated with the business activity areas that are relevant to your organization, as indicated in C-AC0.6/C-FB0.6/C-PF0.6. Note that these metrics should be in addition to what you have reported in modules 6 (Emissions data) and 7 (Emissions breakdown). For example, if agricultural/forestry activities are relevant to your disclosure, you could report here the area of land use change associated with your own farm or production unit. Other examples of relevant metrics are: the volume of fertilizers used for production; the consumption of water per unit of product during production, processing and/or manufacturing; the waste volume associated with the production of raw materials or the manufacture of goods; and the volume of biofuels used in the fleet.

Explanation of terms

Land use: Land use is based on the functional dimension of land for different human purposes or economic activities. Typical categories for land use are dwellings, industrial use, transport, recreational use or nature protection areas. Additional land use metrics can relate to the climate-related arrangements, activities, and inputs regarding these categories that organizations engage in, and can include land use change and land use management metrics.

C10 Verification

Module Overview

Verification and assurance is good practice in environmental reporting as it ensures the quality of data and processes disclosed.

This module requests details on the verification status that applies to organizations’ reported Scope 1, 2 and 3 emissions, as well as on the verification of other climate-related information reported in the CDP disclosure.

Key changes

Modified guidance:
- C10.1c – clarification on how the proportion of reported emissions verified should be calculated.

Click here for a list of all changes made this year.

Pathway diagram - questions

This diagram shows the general questions contained in module C10. To access question-level guidance, use the menu on the left to navigate to the question.

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Change from last year

New question for minimum version only

Rationale

CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.

Response options

Please complete the following table:

Scope

Verification/assurance status

Scope 1

Select from:

No emissions data provided
No third-party verification or assurance
Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Select from:

No emissions data provided
No third-party verification or assurance
Third-party verification or assurance process in place

Scope 3

Select from:

No emissions data provided
No third-party verification or assurance
Third-party verification or assurance process in place

Requested content

General

Please provide the verification/assurance status that applies to your Scope 1, Scope 2, and Scope 3 emissions. If you have had a proportion of your Scope 1, 2, and/or 3 emissions verified, please select the option that applies to these emissions. If you are responding to the full version of the questionnaire, you will be given an opportunity to provide further details in the following questions.
If verification/assurance is underway, or part of a biennial or triennial process: It is recognized that for some companies, the verification/assurance schedule is out of synchronization with the CDP disclosure process and therefore it is difficult to complete the verification/assurance process before the CDP deadline. In addition, verification/assurance processes may occur every two years (biennial verification) or every three years (triennial verification). Where this is the case, you should select “Verification or assurance process in place”. Full version respondents should then provide further information in the following questions.
Organizations responding to the full version of the questionnaire will be asked to provide evidence of any third-party verification that they have reported here in subsequent questions. Companies are advised to verify that their evidence can demonstrate all of the requirements set by CDP before answering this question (e.g. by consulting with their verifier/assurer). Full details are provided in the guidance for questions C10.1a, C10.1b and C10.1c. If certain information requirements set by CDP are not met in the standard assurance statement provided by your verifier, CDP has produced a template that can be used in conjunction with the original assurance statement.

Scope 2

If you operate in a region where you need to calculate both a location-based and a market-based figure to meet Scope 2 requirements, at this stage CDP only requires for you to verify one of these figures. However, in the interest of transparency, full version responders will be asked to disclose which of the two figures you have verified.

Additional information

Annual, biennial and triennial processes: If in the year the verification is completed (for example, Year 3), the data for all sources during the full cycle is verified (for example year 1, 2, and 3) the company can report 100% verification and should attach the verification statements that cover the emissions for all three years. This would be considered a triennial process. Graph of this situation is provided for clarity below (Figure 1).

Annual processes: Not all processes taking place over three years will be considered a triennial process. The graphs below illustrate annual processes, which should not be confused with triennial.

Figure 2 shows an annual process, where in the year the verification is completed (for example, Year 3) only the data for that year is verified.

Another example of a yearly process is when one third of the sources is verified every year (Figure 3). Under this scenario, in Year 3 only 1/3 of the sources are verified, with the second third verified in Year 2, and the remaining third in Year 1. The company should report this as a yearly process where 33% of the sources are verified.

Likewise, where a company has 1/3 of their emissions verified every year this is an annual process (Figure 4):

CDP regards verification/assurance as a process undertaken by an independent third party accredited to perform verification/assurance of the GHG emissions data. Please only state that you have had or are having verification/assurance carried out if it is by an independent third party accredited to perform verification/assurance of GHG data. CDP does not prescribe companies’ choice of specific verification/assurance providers. However, companies searching for a provider may want to consult our list of accredited verification partners: Learn more about CDP solution providers offering third party verification services here.

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 emissions and attach the relevant statements.

Question dependencies

This question only appears if you select “Third-party verification or assurance process in place” for Scope 1 emissions in response to C10.1.

Change from last year

Minor Change

Rationale

CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

EMS: Certification/ Audit/ Verification

RE100

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Verification or assurance cycle in place

Status in the current reporting year

Type of verification or assurance

Attach the statement

Page/section reference

Relevant standard

Proportion of reported emissions verified (%)

Select from:

Annual process
Biennial process
Triennial process

Select from:

No verification or assurance of current reporting year
Underway but not complete for current reporting year – first year it has taken place
Underway but not complete for reporting year – previous statement of process attached
Complete

Select from:

Not applicable
Limited assurance
Moderate assurance
Reasonable assurance
High assurance
Third party verification/assurance underway

Attach your document here

Text field [maximum 500 characters]

Select from drop-down options below

Numerical field [enter a number from 0-100 using no decimals or commas]

[Add Row]

Relevant standard drop-down options:

AA1000AS
ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)
Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
Airport Carbon Accreditation (ACA) des Airports Council International Europe
Alberta Technology Innovation and Emissions Reduction (TIER)
ASAE3000
Attestation standards established by AICPA (AT105)
Australian National GHG emission regulation (NGER)
California Mandatory GHG Reporting Regulations (CARB)
Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
Carbon Trust Standard
Chicago Climate Exchange (CCX) verification standard
The Climate Registry's General Verification Protocol (also known as California Climate Action Registry (CCAR))
Compagnie Nationale des Commissaires aux Comptes (CNCC)
Corporate GHG verification guidelines from ERT
DNV VeriSustain Protocol/ Verification Protocol for Sustainability Reporting
Dutch Standard 3000A
Earthcheck Certification
ERM GHG Performance Data Assurance Methodology
European Union Emissions Trading System (EU ETS)
IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
ISAE3000
ISAE 3410
ISO14064-1
ISO14064-3
Japan voluntary emissions trading scheme (JVETS) guideline for verification
Korean GHG and energy target management system
NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
RevR6 procedure for assurance of sustainability report
Saitama Prefecture Target-Setting Emissions Trading Program
SGS Sustainability Report Assurance
Spanish Institute of Registered Auditors (ICJCE)
SSAE 3000
Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
Swiss Climate CO₂ Label for Businesses
Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
Toitū Envirocare’s carbonreduce certification standard
Tokyo Emissions Trading Scheme
Other, please specify

Requested content

General

If you are reporting third party verification or assurance underway, your entries into the table should reflect the emissions that are being subject to verification/assurance for the current reporting year, with the exception of the attached statement, which will relate to a previous year.
CDP understands that you may seek verification for reasons other than reporting to CDP and that confidential information may be included within your detailed verification statement. In this case, it is sufficient for your verifier/assurer to attest to the Scope and level of assurance/verification through correspondence such as an abbreviated statement as long as this covers the data points outlined below (see guidance for column 4 ‘Attach your statement here’).
Note that this question refers to the proportion of your total reported gross global Scope 1 emissions over which you have sought verification, not the sampling regime that the verifier employed. For example, if you have only sought verification over your US operations then you should report the percentage of your total reported gross global Scope 1 emissions that these US facilities represent. Alternatively, if you have sought organization-wide verification, then you should enter 100%. If you have reported your full GHG inventory in your corporate communications material which has been verified, please enter 100%. If you are reporting third party verification or assurance underway, your answer should reflect the proportion of emissions that are being subject to verification/assurance for the current reporting year.
If you are reporting that all of your reported scope 1 emissions have been verified/assured, then the total of the figures entered into column “Proportion of reported emissions verified” (column 7) across all rows should equal 100%. The total of all rows entered into this table should not exceed 100%. Where a portion of your reported scope 1 emissions has been subject to multiple verification/assurance processes, you do not need to report the verification of these emissions more than once, and should only add one row for the highest level of assurance awarded for the emissions.

Verification or assurance cycle in place (column 1)

A biennial verification/assurance process is where emissions are verified once every two years and a triennial verification/assurance process is where emissions are verified once every three years.
You may refer to the additional information provided on annual, biennial and triennial processes in C10.1 for further information.

Status in the current reporting year (column 2)

Please select the option that is most appropriate to your company.

Type of verification or assurance (column 3)

This column relates to the type of verification or assurance that has been awarded.
The option that is relevant will depend on the verification standard to which the verification process has been completed and the level of assurance agreed between the verifier and the company.
Companies can select from the following options:

- Not applicable - In very few cases, usually in program based compliance, the verification standard does not include a level of assurance; in this case select this option.
- Limited assurance - This is one of the most common levels of assurance and, for e.g., is appropriate to verification undertaken in accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance - For example, this level of assurance is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance - For example, this is appropriate to verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry; all verification undertaken for EU ETS compliance is to a level of “reasonable assurance” (according to the requirements of EA-6/03).
- High assurance - For example, this is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway - Select this option if verification/assurance is underway and you do not yet know the level of assurance that you are intending to achieve.

Attach the statement (column 4)

Note the requirements for the statement detailed below and the option to use the CDP template.
All companies should attach a verification statement here unless they have selected “No verification or assurance of current reporting year” or “Underway but not complete for current reporting year – first year it has taken place” in column 2 ‘Status in the current reporting year’. The statement should:

- Clearly state that GHG emissions have been verified or assured as part of the process. If the statement refers to other documents that have been verified (such as Sustainability Report, Financial Report, GRI etc.) where items verified are specified, please attach those to the question as well;
- Relate to the relevant Scope;
- Clearly state the opinion and type of verification/assurance that has been given and the verification standard used. Assurers/verifiers must define the finding in their opinion, simply stating “limited assurance” is not sufficient to fulfill this criterion. These should match the selections made in columns 1 and 3; and
- Covers the current reporting year, or covers the 12-months prior for annual processes, 12-24 months prior for biennial processes, or 12-36 months prior for triennial processes if “Underway but not complete for reporting year – previous statement of process attached” is selected in “Status in the current reporting year” column.

Page/section reference (column 5)

Please identify the page and the section that contains details of your verification/assurance of Scope 1 emissions.

Relevant standard (column 6)

This column captures the verification standard against which the verification process has been undertaken.
It does not refer to the reporting or calculation standard. CDP has produced criteria for what constitutes an acceptable verification standard. All accepted verification standards, and exceptions to their use, are listed here. If you are using a verification standard that is not listed in the “accepted standards” nor the “non-verification standards,” please contact your regional CDP office in order to have your verification standard reviewed. If you do not have your standard reviewed by contacting us and your response is submitted before the official CDP deadline, CDP will then review the standard used and add it to the website under “accepted” or “not accepted” depending on the outcome of the standard review. If the response is submitted after the official deadline, CDP cannot commit to review the standard used in time for scoring.
Select from the accepted standards listed or use “Other, please specify” if the standard you are using is not included.
If you select “Other, please specify”, provide a label for the Relevant standard.
The verification standard should be stated on the verification statement.

Proportion of reported emissions verified (%) (column 7)

It may be the case that only a sub-section of your emissions has been verified/assured due to, for e.g., regulatory requirements.
Please identify what proportion of your total reported emissions for Scope 1 has been subject to the verification/assurance process described.
If you are reporting that all of your reported scope 1 emissions have been verified/assured, then the total of the figures entered into this column across all rows should equal 100%. The total of all rows entered into this table should not exceed 100%.

Additional information

Verification processes: If you have attained verification covering all your reported Scope 1 emissions (for example GHG emissions reported in your sustainability report) and also other verification covering smaller proportion of your business (for example only Californian operations or facilities under EU ETS regulation), you only should report the verification in place covering all reported Scope 1 emissions. If you have multiple verification practices covering different business divisions (for example Californian operations and facilities under EU ETS), you should report all of them by adding rows to the table, completing all columns, and attaching the appropriate documents for each verification practice.

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 2 emissions and attach the relevant statements.

Question dependencies

This question only appears if you select “Third-party verification or assurance process in place” for Scope 2 emissions in response to C10.1.

Change from last year

Minor change

Rationale

CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

EMS: Certification/ Audit/ Verification

RE100

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Scope 2 approach

Verification or assurance cycle in place

Status in the current reporting year

Type of verification or assurance

Attach the statement

Page/ section reference

Relevant standard

Proportion of reported emissions verified (%)

Select from:

Scope 2 location-based
Scope 2 market-based

Select from:

Annual process
Biennial process
Triennial process

Select from:

No verification or assurance of current reporting year
Underway but not complete for current reporting year – first year it has taken place
Underway but not complete for reporting year – previous statement of process attached
Complete

Select from:

Not applicable
Limited assurance
Moderate assurance
Reasonable assurance
High assurance
Third party verification/assurance underway

Attach your document here

Text field [maximum 500 characters]

Select from drop-down options below

Numerical field [enter a number from 0-100 using no decimals or commas]

[Add Row]

Relevant standard drop-down options:

AA1000AS
ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)
Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
Airport Carbon Accreditation (ACA) des Airports Council International Europe
Alberta Technology Innovation and Emissions Reduction (TIER)
ASAE3000
Attestation standards established by AICPA (AT105)
Australian National GHG emission regulation (NGER)
California Mandatory GHG Reporting Regulations (CARB)
Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
Carbon Trust Standard
Chicago Climate Exchange (CCX) verification standard
The Climate Registry's General Verification Protocol (also known as California Climate Action Registry (CCAR))
Compagnie Nationale des Commissaires aux Comptes (CNCC)
Corporate GHG verification guidelines from ERT
DNV VeriSustain Protocol/ Verification Protocol for Sustainability Reporting
Dutch Standard 3000A
Earthcheck Certification
ERM GHG Performance Data Assurance Methodology
European Union Emissions Trading System (EU ETS)
IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
ISAE3000
ISAE 3410
ISO14064-1
ISO14064-3
Japan voluntary emissions trading scheme (JVETS) guideline for verification
Korean GHG and energy target management system
NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
RevR6 procedure for assurance of sustainability report
Saitama Prefecture Target-Setting Emissions Trading Program
SGS Sustainability Report Assurance
Spanish Institute of Registered Auditors (ICJCE)
SSAE 3000
Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
Swiss Climate CO2 Label for Businesses
Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
Toitū Envirocare’s carbonreduce certification standard
Tokyo Emissions Trading Scheme
Other, please specify

Requested content

General

If you are reporting third party verification or assurance underway, your entries into the table should reflect the emissions that are being subject to verification/assurance for the current reporting year, with the exception of the attached statement, which will relate to a previous year.
CDP understands that you may seek verification for reasons other than reporting to CDP and that confidential information may be included within your detailed verification statement. In this case, it is sufficient for your verifier/assurer to attest to the Scope and level of assurance/verification through correspondence such as an abbreviated statement as long as this covers the data points outlined below (see guidance for column 5 "Attach your statement here")

Scope 2 approach (column 1)

Select the Scope 2 calculation approach to which your verification/assurance statement applies.
If you operate in a region where you need to calculate both a location-based and a market-based figure to meet Scope 2 requirements, at this stage CDP only requires for you to verify one of these figures.
However, in the interest of transparency, you are asked to disclose which of the two figures you have verified.

Verification or assurance cycle in place (column 2)

A biennial verification/assurance process is where emissions are verified once every two years and a triennial verification/assurance process is where emissions are verified once every three years.
You may refer to the further information in C10.1 on annual, biennial and triennial processes for further information on annual, biennial and triennial processes.

Status in the current reporting year (column 3)

Please select the option most appropriate to your company.

Type of verification or assurance (column 4)

This column relates to the type of verification or assurance that has been awarded.
The option that is relevant will depend on the verification standard to which the verification process has been completed and the level of assurance agreed between the verifier and the company.
Companies can select from the following options:

- Not applicable - In very few cases, usually in program based compliance, the verification standard does not include a level of assurance; in this case select this option.
- Limited assurance -This is one of the most common levels of assurance and, for e.g., is appropriate to verification undertaken in accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance - For example, this level of assurance is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance - For example, this is appropriate to verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry; all verification undertaken for EU ETS compliance is to a level of “reasonable assurance” (according to the requirements of EA-6/03).
- High assurance – For example, this is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway – Select this option if verification/assurance is underway and you do not yet know the level of assurance that you are intending to achieve.

Attach the statement (column 5)

Note the requirements for the statement detailed below and the option to use the CDP template.
All companies should attach a verification statement here unless they have selected “No verification or assurance of current reporting year” or “Underway but not complete for current reporting year – first year it has taken place” in column 3 "Status in the current reporting year". The statement should:

Page/section reference (column 6)

Please identify the page and the section that contains details of your verification/assurance of Scope 2 emissions.

Relevant standard (column 7)

This column captures the verification standard against which the verification process has been undertaken. It does not refer to the reporting or calculation standard.
CDP has produced criteria for what constitutes an acceptable verification standard. All accepted verification standards, and exceptions to their use, are listed here.
The verification standard should be stated on the verification statement. If the response is submitted before the official CDP deadline, CDP will then review the standard used and add it to the website under “accepted” or “not accepted” depending on the outcome of the standard review.
If the response is submitted after the official deadline, CDP cannot commit to review the standard used in time for scoring.
Select from the accepted standards listed or use “Other, please specify” if the standard you are using is not included.
If you select “Other, please specify”, provide a label for the Relevant standard.

Proportion of reported emissions verified (%) (column 8)

It may be the case that only a sub-section of your emissions has been verified/assured due to, for e.g., regulatory requirements.
Please identify what proportion of your total reported emissions for Scope 2 has been subject to the verification/assurance process described.

(C10.1c) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevant statements.

Question dependencies

This question only appears if you select “Third-party verification or assurance process in place” for Scope 3 emissions in response to C10.1.

Change from last year

Minor change

Rationale

CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

EMS: Certification/ Audit/ Verification

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Scope 3 category	Verification or assurance cycle in place	Status in the current reporting year	Type of verification or assurance	Attach the statement	Page/ section reference	Relevant standard	Proportion of reported emissions verified (%)
Select all that apply: Scope 3: Purchased goods and services Scope 3: Capital goods Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2) Scope 3: Upstream transportation and distribution Scope 3: Waste generated in operations Scope 3: Business travel Scope 3: Employee commuting Scope 3: Upstream leased assets Scope 3: Investments Scope 3: Downstream transportation and distribution Scope 3: Processing of sold products Scope 3: Use of sold products Scope 3: End-of-life treatment of sold products Scope 3: Downstream leased assets Scope 3: Franchises	Select from: Annual process Biennial process Triennial process	Select from: No verification or assurance of current reporting year Underway but not complete for current reporting year – first year it has taken place Underway but not complete for reporting year – previous statement of process attached Complete	Select from: Not applicable Limited assurance Moderate assurance Reasonable assurance High assurance Third party verification/assurance underway	Attach your document here	Text field [maximum 500 characters]	Select from drop-down options below	Numerical field [enter a number from 0-100 using no decimals or commas]

[Add Row]

Relevant standard drop-down options:

AA1000AS
ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)
Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
Airport Carbon Accreditation (ACA) des Airports Council International Europe
Alberta Technology Innovation and Emissions Reduction (TIER)
ASAE3000
Attestation standards established by AICPA (AT105)
Australian National GHG emission regulation (NGER)
California Mandatory GHG Reporting Regulations (CARB)
Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
Carbon Trust Standard
Chicago Climate Exchange (CCX) verification standard
The Climate Registry's General Verification Protocol (also known as California Climate Action Registry (CCAR))
Compagnie Nationale des Commissaires aux Comptes (CNCC)
Corporate GHG verification guidelines from ERT
DNV VeriSustain Protocol/ Verification Protocol for Sustainability Reporting
Dutch Standard 3000A
Earthcheck Certification
ERM GHG Performance Data Assurance Methodology
European Union Emissions Trading System (EU ETS)
IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
ISAE3000
ISAE 3410
ISO14064-1
ISO14064-3
Japan voluntary emissions trading scheme (JVETS) guideline for verification
Korean GHG and energy target management system
NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
RevR6 procedure for assurance of sustainability report
Saitama Prefecture Target-Setting Emissions Trading Program
SGS Sustainability Report Assurance
Spanish Institute of Registered Auditors (ICJCE)
SSAE 3000
Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
Swiss Climate CO2 Label for Businesses
Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
Toitū Envirocare’s carbonreduce certification standard
Tokyo Emissions Trading Scheme
Other, please specify

Requested content

General

If you are reporting third party verification or assurance underway, your entries into the table should reflect the emissions that are being subject to verification/assurance for the current reporting year, with the exception of the attached statement, which will relate to a previous year.
CDP understands that you may seek verification for reasons other than reporting to CDP and that confidential information may be included within your detailed verification statement. In this case, it is sufficient for your verifier/assurer to attest to the Scope and level of assurance/verification through correspondence such as an abbreviated statement as long as this covers the data points outlined below (see guidance for column 4 ‘Attach your statement here’).

Scope 3 category (column 1)

Select the Scope 3 categories your verification/assurance statement covers.
For more information on Scope 3 categories, refer to the Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Verification or assurance cycle in place (column 2)

A biennial verification/assurance process is where Scope 3 emissions are verified once every two years and triennial verification/assurance process where Scope 3 emissions are verified once every three years.
You may refer to the further information in C10.1 on annual, biennial and triennial processes for further information on annual, biennial and triennial processes.

Status in the current reporting year (column 3)

Please select the option most appropriate to your company

Type of verification or assurance (column 4)

This column relates to the type of verification or assurance that has been awarded.
The option that is relevant will depend on the verification standard to which the verification process has been completed and the level of assurance agreed between the verifier and the company.
Companies can select from the following options:

- Not applicable -In very few cases, usually in program based compliance, the verification standard does not include a level of assurance; in this case select this option.
- Limited assurance -This is one of the most common levels of assurance and, for e.g., is appropriate to verification undertaken in accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance -For example, this level of assurance is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance -For example, this is appropriate to verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry; all verification undertaken for EU ETS compliance is to a level of “reasonable assurance” (according to the requirements of EA-6/03).
- High assurance - For example, this is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway - Select this option if verification/assurance is underway and you do not yet know the level of assurance that you are intending to achieve

Attach the statement (column 5)

Note the requirements for the statement detailed below and the option to use the CDP template.
All companies should attach a verification statement here unless they have selected “No verification or assurance of current reporting year” or “Underway but not complete for current reporting year – first year it has taken place” in column 3 ‘Status in the current reporting year’. The statement should:

Page/section reference (column 6)

Please identify the page and the section that contains details of your verification/assurance of Scope 3 emissions.

Relevant standard (column 7)

This column captures the verification standard against which the verification process has been undertaken. It does not refer to the reporting or calculation standard.
CDP has produced criteria for what constitutes an acceptable verification standard. All accepted verification standards, and exceptions to their use, are listed here.
The verification standard should be stated on the verification statement. If the response is submitted before the official CDP deadline, CDP will then review the standard used and add it to the website under “accepted” or “not accepted” depending on the outcome of the standard review.
If the response is submitted after the official deadline, CDP cannot commit to review the standard used in time for scoring.
Select from the accepted standards listed or use “Other, please specify” if the standard you are using is not included.
If you select “Other, please specify”, provide a label for the Relevant standard.

Proportion of reported emissions verified (%) (column 8)

It may be the case that only a sub-section of your emissions has been verified/assured due to, for e.g., regulatory requirements.
Please identify what proportion of your total reported emissions for the selected Scope 3 categories has been subject to the verification/assurance process described.
The percentage of reported emissions verified can be calculated using the following equation:

Note for financial services companies:

Financial services companies are requested to verify figures reported in C-FS14.1a and/or C-FS14.1b in row “Scope 3 Investments”.
Financial services companies disclosing data for multiple portfolios in C-FS14.1a and/or C-FS14.1b are requested to clarify which portfolios the verification relates to in column 6 “Page/section reference”.
If the verification process is different for different portfolios, use “add row” to disclose them separately.
The verification of data in module C14 Portfolio impact, other than data disclosed in C-FS14.1a and/or C-FS14.1b, should be disclosed in C10.2a.

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5?

Change from last year

Modified guidance for financial services companies

Rationale

This information gives data users further confidence in the information provided in your organization’s response. Data users often ask about the credibility/ quality of the data and other information disclosed. CDP supports verification and assurance as good practice in environmental reporting as it ensures the quality of data and processes disclosed. This question allows leading companies to report their efforts on this, and to highlight trends that CDP data users might anticipate being good practice among companies in the future.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

EMS: Certification/ Audit/ Verification

Response options

Select one of the following options:

Yes
In progress
No, but we are actively considering verifying within the next two years
No, we are waiting for more mature verification standards and/or processes
No, we do not verify any other climate-related information reported in our CDP disclosure

Requested content

Note for financial services companies:

For financial services companies this question relates to any climate-related information reported in their CDP disclosure other than the emissions figures reported in C6.1, C6.3, C6.5, but also C-FS14.1a and C-FS14.1b.

(C10.2a) Which data points within your CDP disclosure have been verified, and which verification standards were used?

Question dependencies

This question only appears if you select “Yes” in response to C10.2.

Change from last year

Minor change

Rationale

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

S&P Global Corporate Sustainability Assessment

EMS: Certification/ Audit/ Verification

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Disclosure module verification relates to

Data verified

Verification standard

Please explain

Select from:

C0. Introduction
C1. Governance
C2. Risks and opportunities
C3. Business Strategy
C4. Targets and performance
C5. Emissions performance
C6. Emissions data
C7. Emissions breakdown
C8. Energy
C9. Additional metrics
C11. Carbon pricing
C12. Engagement
C13. Other land management impacts
C14. Portfolio impact
C16. Signoff
SC. Supply chain module

Select from:

Year on year change in emissions (Scope 1)
Year on year change in emissions (Scope 2)
Year on year change in emissions (Scope 1 and 2)
Year on year change in emissions (Scope 3)
Year on year emissions intensity figure
Financial or other base year data points used to set a science-based target
Progress against emissions reduction target
Change in Scope 1 emissions against a base year (not target related)
Change in Scope 2 emissions against a base year (not target related)
Change in Scope 3 emissions against a base year (not target related)
Product footprint verification
Emissions reduction activities
Renewable energy products
Energy consumption
Alignment with a sustainable finance taxonomy
Waste data
Allocation of emissions to customers
Don’t know
Other, please specify

Text field [maximum 1,500 characters]

[Add Row]

Requested content

Disclosure module verification relates to (column 1)

Select the questionnaire module that the verification standard applies to.

Data verified (column 2)

Select from the data points provided or use “Other, please specify” if the data you have verified is not included.

Verification standard (column 3)

This column captures the verification standard against which the verification process has been undertaken. It does not refer to the reporting or calculation standard.
Clearly state the type of verification/assurance that has been given and the name of the verification standard used.
CDP has produced criteria for what constitutes an acceptable verification standard. All accepted verification standards, and exceptions to their use, are listed here.

Please explain (column 4)

Explain here why your company has chosen to verify the selected data points with each given standard.
Where possible, reference specific question numbers.
You can also describe here the frequency with which you complete this verification and the scope it encompasses.
Outline if you have sought organization wide verification or if you have only sought verification over a certain proportion of your operations.

Note for financial services companies:

Disclose the verification of data in module C14 Portfolio impact, other than data disclosed in C-FS14.1a and/or C-FS14.1b.
The verification of financed emissions as per C-FS14.1a and/or C-FS14.1b should be disclosed in C10.1c.

C11 Carbon pricing

Module Overview

Carbon pricing has emerged as a key policy mechanism to drive greenhouse gas emissions reductions and mitigate the dangerous impacts of climate change. As the number of jurisdictions with carbon pricing policies increases, CDP data users are interested in understanding how companies are affected by these schemes.

This module examines details on the operations or activities regulated by carbon pricing systems, carbon credits and internal prices on carbon.

For further guidance on reporting to the questions in this module see CDP’s Technical Note Carbon Pricing: CDP Disclosure Best Practice.

Key changes

Modified questions:
- C11.2 – question text revised to ask if your organization has cancelled any project-based carbon credits.
- C11.2a – updated to request details of cancelled project-based carbon credits, including the standards used to verify the credits.
- C11.3a – updated to request further details of how your organization uses an internal price on carbon, including how the price is determined and how it is used in business decision-making processes.

Click here for a list of all changes made this year.

Pathway diagram - questions

This diagram shows the general questions contained in module C11. To access question-level guidance, use the menu on the left to navigate to the question.

Project-based carbon credits

(C11.2) Has your organization canceled any project-based carbon credits within the reporting year?

Change from last year

Modified question

Rationale

Carbon credits are used by organizations for the purposes of compliance or as voluntary carbon offsets and can support the transition to a low carbon future. Information about carbon credits helps data users understand the extent to which companies are meeting their climate commitments through emission reductions or offsets.

Ambition: Companies prioritize emissions reductions in their value chain, and only use high-quality carbon credits to neutralize the impact of sources of residual emissions that cannot be eliminated through value-chain emissions reductions.

Connection to other frameworks

SDG

Goal 13: Climate action

NZAM (FS Only)

Commitment 4

Response options

Select one of the following options:

Requested content

General

“Canceling” a credit means that the credit cannot be used again, and the exact term used may vary, e.g. retired, surrendered, claimed or used. For further information, please check the Technical Note “Retirement vs. cancellation of instruments."
Select “Yes” if you have canceled credits during the reporting period, regardless of when you have acquired them.
Select “No” if you have not canceled credits during the reporting period, regardless of whether you have acquired credits during the reporting period.
Examples of project-based carbon credits include:
- Verified Carbon Units (VCUs) generated by projects under the VCS program.
- Gold Standard Verified Emission Reductions (GSVERs) generated by projects under the Gold Standard.
- Certified Emission Reductions (CERs) generated by activities under the Clean Development Mechanism (CDM).

(C11.2a) Provide details of the project-based carbon credits canceled by your organization in the reporting year.

Question dependencies

This question only appears if you select “Yes” in response to C11.2.

Change from last year

Modified question

Rationale

Carbon credits can be originated from a variety of projects and are verified to a number of standards. Data users are interested in learning about the quality of projects, scope of project types, and the objectives of organizations who have canceled carbon credits and the extent to which the credits are used to achieve these objectives.

Ambition: Carbon credits are issued by a program which adheres to best practice and addresses issues such as additionality, leakage, and reversal.

Connection to other frameworks

SDG

Goal 13: Climate action

NZAM (FS only)

Commitment 4

Response options

Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table. *Column/row appearance is dependent on selections in this or other questions.”

Project type	Type of mitigation activity	Project description	Credits canceled by your organization from this project in the reporting year (metric tons CO2e)	Purpose of cancellation	Are you able to report the vintage of the credits at cancellation?	Vintage of credits at cancellation*
1	2	3	4	5	6	7
Select from: Afforestation Agriculture Agroforestry Biochar Bioenergy with carbon capture and storage (BECCS) Biomass energy Cement Coal mine/bed methane Clean cookstove distribution Community projects Direct air capture (DAC) Energy distribution Energy efficiency: households Energy efficiency: industry Energy efficiency: own generation Energy efficiency: service Energy efficiency: supply side Enhanced weathering and ocean alkalization Forest ecosystem restoration Fossil fuel switch Fugitive Geothermal HFCs Hydro Landfill gas Landscape projects Natural regeneration Mangrove protection and restoration Methane avoidance Mixed renewables N2O Ocean fertilization Peatland protection and restoration PFCs and SF6 Reforestation Soil carbon sequestration Solar Tidal Transport Waste management Wind Other, please specify	Select from: Emissions reduction Carbon removal	Text field [maximum 2,500 characters]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]	Select from: Compliance with a carbon pricing system Voluntary offsetting Other, please specify	Select from: Yes No	Numerical field [enter a number between 1900-2023]

Were these credits issued to or purchased by your organization?	Credits issued by which carbon-crediting program	Method(s) the program uses to assess additionality for this project*	Approach(es) by which the selected program requires this project to address reversal risk*	Potential sources of leakage the selected program requires this project to have assessed*	Provide details of other issues the selected program requires projects to address*	Comment
8	9	10	11	12	13	14
Select from: Issued Purchased	Select from: Alberta TIER Emission Offset system ACR (American Carbon Registry) California Air Resources Board Compliance Offset Program CAR (The Climate Action Reserve) CCBS (developed by the Climate, Community and Biodiversity Alliance, CCBA) CDM (Clean Development Mechanism) Emissions Reduction Fund of the Australian Government Gold Standard Integrity Council for Voluntary Carbon Markets – Approved carbon crediting program JCM (Joint Crediting Mechanism) JI (Joint Implementation) Plan Vivo REDD+ TREES (The REDD+ Environmental Excellence Standard) T-COP (Thailand Carbon Offsetting Program) VCS (Verified Carbon Standard) VER+ (TÜV SÜD standard) Not issued by a program Other private carbon crediting program, please specify Other regulatory carbon crediting program, please specify	Select all that apply: Consideration of legal requirements Investment analysis Barrier analysis Market penetration assessment Positive lists Other, please specify Not assessed	Select all that apply: Monitoring and compensation Temporary crediting Other, please specify No requirements No risk of reversal	Select all that apply: Upstream/downstream emissions Activity-shifting Market leakage Ecological leakage Other, please specify Not assessed	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add Row]

Requested content

Project types (column 1)

Select the best match for the project from which the credits canceled in the reporting year originated, or select “Other, please specify”.
You will have the opportunity to provide more details of the project in column 3 “Project description”.

Type of mitigation activity (column 2)

Select whether the project leads to an:
- Emissions reduction i.e., an activity that reduces anthropogenic emissions of a greenhouse gas relative to its emissions in the activity’s baseline scenario (adapted from ICVCM); or
- Carbon removal i.e., an anthropogenic activity that removes carbon dioxide (CO₂) from the atmosphere and ensures its long-term storage in terrestrial, geological, or ocean reservoirs, or in long-lasting products (adapted from UNFCCC).

Project description (column 3)

Briefly describe the project from which the credits canceled in the reporting year originated, including:
- the geographic location of the project; and
- an explanation of how the project leads to GHG emissions reductions or removals (as relevant to your response in column 2).

Credits canceled by your organization from this project in the reporting year (metric tons CO₂e) (column 4)

Enter, in metric tons CO₂e, the number of credits from this project that were canceled by your organization in the reporting year.
The figure reported should be the credits canceled by your organization during the reporting year from the project described in column 3, irrespective of whether the credits were issued to or purchased by your organization.
“Canceled” means that the certificate cannot be used again. For further information, please check the Technical Note “Retirement vs. cancellation of instruments.”

Purpose of cancellation (column 5)

Indicate whether the credits were canceled in the reporting year to comply with a carbon pricing system (e.g. an Emissions Trading Scheme as reported in C11.1a-b), or whether the credits were canceled as part of your organization’s strategy for voluntary offsetting.
[Financial services only] “Other, please specify” can be used by banks and asset managers to solicit information on the approach to offsets to meet commitments under the Net-Zero Banking Alliance and the Net Zero Asset Managers initiative respectively, e.g. if the offsets are used to balance residuals, long-term, additional and certified, and only used where no alternatives to eliminate emissions exist.

Are you able to report the vintage of the credits at cancellation? (column 6)

Indicate whether you can provide a vintage for the canceled credits. Refer to the Explanation of Terms for more information.
Select “Yes” even if you can only provide a vintage for a proportion of the credits.

Vintage of credits at cancellation (column 7)

This column is only presented if you select “Yes” in column 6 “Are you able to report the vintage of the credits at cancellation?”.
If there is more than one vintage for the credits you have canceled from this project, enter the oldest year.

Were these credits issued to or purchased by your organization (column 8)

Issued - Select this option if you are the company to which the credits were originally issued as a project participant.
Purchased - Select this option if you bought the credits from another company.

Credits issued by which carbon crediting program (column 9)

Select “Integrity Council for Voluntary Carbon Markets – Approved carbon crediting program” if your credits have been issued by a carbon crediting program that is not listed but that has been evaluated and approved by the Integrity Council for Voluntary Carbon Markets.
When selecting one of the “Other…” options, please refer to the following definitions:
- Private carbon crediting program: A carbon crediting program which has been created by any private entity, such as an NGO, private company, or university.
- Regulatory carbon crediting program: A carbon crediting program which has been created by a government, regulatory agency, or international governmental organization.
If you select “Not issued by a program”, explain in column 14 “Comment” who has issued the credits.

Method(s) the program uses to assess additionality for this project (column 10)

This column is only presented if you select any option other than “Not issued by a program” in column 9 “Credits issued by which carbon crediting program”.
Additionality is demonstrated if the mitigation activity would not have occurred in the absence of a market for offset credits and associated revenues.
The Integrity Council for the Voluntary Carbon Market (ICVCM) outlines several methods by which a carbon credit verification standard can assess the additionality of a project:
- Consideration of legal requirements – can be used to demonstrate that the project would not have been implemented due to existing legal requirements.
- Investment analysis – can be used to demonstrate that the project would not have been economically attractive without carbon credit revenues.
- Barrier analysis – can be used to demonstrate that the project faced barriers (e.g., financial barriers, institutional barriers, information barriers, or other barriers specific to the project) not faced by alternatives to the project, and that the expectation of carbon credit revenues was decisive for overcoming these barriers.
- Market penetration assessment (also referred to as common practice analysis) – can be used to demonstrate that the project activity was not already common practice in the relevant geographical area.
- Positive lists – can deem the project automatically additional if it meets certain conditions. Companies selecting this option should state in column 13 the eligibility criteria and/or performance benchmarks the standard requires the project to meet to be considered additional.
If you select “Other, please specify”, provide further details in column 13.
Select “Not assessed” if the standard does not assess whether the project demonstrates additionality.

Approach(es) by which the selected program requires this project to address reversal risk (column 11)

This column is only presented if you select any option other than “Not issued by a program” in column 9 “Credits issued by which carbon crediting program”.
Reversal risk refers to the risk of non-permanence of the mitigation activity.
The ICVCM outlines two approaches by which a carbon credit verification standard can address, or require the project to address, reversal risk:
- Monitoring and compensation – where the project aims to guarantee carbon storage for a finite period through long-term monitoring and compensation conditions on potential reversals. For example, unavoidable reversals could be compensated for if the project contributes to a pooled buffer reserve of credits which are retired in the case of an unavoidable reversal event.
- Temporary crediting – where the standard issues temporarily valid credits to the project in relation to verified ex-post emission reductions or removals. When a credit expires at the end of its validity period and has been retired by a purchaser, the credit purchaser is obligated to replace it with a permanent credit. Temporary crediting aims to guarantee compensation for reversals indefinitely, because credit purchasers need to cover their obligations once a carbon credit expires.
- No risk of reversal – this option should only be selected for projects where there is no carbon storage and thus no risk of reversal (e.g., renewable energy projects), or where there is no conceivable way for the stored GHGs to be released into the atmosphere. Companies selecting this option should provide a justification of why the project is considered to have no risk of reversal in column 13.
If you select “Other, please specify”, provide further details in column 13.

Potential sources of leakage the selected program requires this project to have assessed (column 12)

This column is only presented if you select any option other than “Not issued by a program” in column 9 “Credits issued by which carbon crediting program”.
Leakage refers to any impact of the project on emissions outside of the project activity – see Explanation of Terms for more information.
Select the potential sources of leakage emissions the standard selected in column 9 requires the project to assess (sources and examples adapted from the ICVCM):
- Upstream/downstream emissions – direct impacts of the project on upstream or downstream emissions or removals. E.g., emissions associated with the upstream production of fuel used by the project.
- Activity-shifting – emissions shifting to locations not targeted or to emissions not monitored by the project. E.g., the displacement of agricultural activity from land that is afforested.
- Market leakage – emissions occurring elsewhere through an impact on the supply or demand for an emissions-intensive product or service. E.g., rebound effects from energy efficiency measures, where the expected benefit of improved efficiency is reduced due to behavioral or other responses.
- Ecological leakage – emissions occurring indirectly in areas which are hydrologically connected to the project area. E.g., emissions from wetland soils if water levels are lowered due to the project.
If you select “Other, please specify” provide further details in column 13.
Select “Not assessed” if the standard does not require the project to assess leakage emissions.

Provide details of other issues the selected program requires projects to address (column 13)

This column is only presented if you select any option other than “Not issued by a program” in column 9 “Credits issued by which carbon crediting program”.
Provide details of how the standard requires the project to minimize and, where possible, avoid negative environmental, economic, and social impacts.
Provide any other relevant details of the standard selected in column 9.
If you selected “Other, please specify” in columns 10-12, provide further details here.

Comment (column 14) (optional)

You can use this text field to enter any additional relevant information.

Explanation of terms

Vintage: The year in which the mitigation activity took place. For emissions reductions or removals, this should be the year in which the emissions reduction/removal took place. Because the verification process can take two to three years from project inception, projects/programs may generate credits for already-reduced emissions (adapted from the ICVCM).
Additionality (carbon credits): a project is additional if it would not have occurred in the absence of the incentives from the carbon credit mechanism, taking into account all relevant national policies, including legislation, and representing mitigation that exceeds any mitigation that is required by law or regulation, and taking a conservative approach that avoids locking in levels of emissions, technologies or carbon-intensive practices incompatible with the Paris Agreement goals (adapted from the UNFCCC).
Reversal risk: refers to the risk of non-permanence of the mitigation activity.
Emissions leakage: also known as “carbon leakage”, refers to the phenomenon through which efforts to reduce emissions in one jurisdiction or sector simply shift emissions to another jurisdiction or sector where they remain uncontrolled or uncounted (Jenkins et al, 2009).

Additional information

The Integrity Council for the Voluntary Carbon Market (ICVCM)

The Integrity Council for the Voluntary Carbon Market (ICVCM) is an independent governance body aiming to ensure the voluntary carbon market accelerates a just transition to 1.5ºC. Their Core Carbon Principles (CCPs) and Assessment Framework (AF) will set new threshold standards for high-quality carbon credits and define which carbon-crediting programs and methodology types are CCP-eligible. Draft versions of both the CCPs and AF have been published and have undergone a period of public consultation in advance of final versions being released.

Paris Agreement Article 6.4 Mechanism

Article 4 of Paragraph 6 of the Paris Agreement establishes “a mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development”. This mechanism will take the form a new international carbon market, which will replace the Clean Development Mechanism (CDM). Once the mechanism is operational, it is expected to be the best-practice standard for carbon markets.

Internal price on carbon

(C11.3) Does your organization use an internal price on carbon?

Change from last year

No change

Rationale

Internal carbon pricing has emerged as a multifaceted tool that supports companies in assessing climate-related risks and opportunities. Investors want to know more about organizations who attribute a monetary value to these risks and translate them into a uniform metric.

Response options

Select one of the following options:

Yes
No, but we anticipate doing so in the next two years
No, and we don’t anticipate doing so in the next two years

Additional information

Internal carbon price: The number of companies embedding an internal carbon price into their business strategies continues to grow. This growth is steady across all sectors and regions; largely driven by the parallel development of regulations that directly or indirectly price carbon and the increasing pressure from shareholders and customers for companies to adequately manage their climate-related risks.

Some common reasons for implementing an internal carbon price are outlined below:

Managing climate-related risks: Companies internalize the existing, expected or potential price of carbon – from an ETS, carbon tax, or implicit carbon pricing policy – to assess its risk exposure to regulations that affect the cost of emitting CO₂e.
Identifying climate-related opportunities: Companies also use an internal carbon price as a tool to reveal potential opportunities that may emerge in the transition to the low-carbon economy. As policy and legal, market, technological and reputational factors shift, they also present opportunities for companies to seize. When used as a generic proxy in this way, an internal carbon price can help guide strategic decisions, such as low-carbon R&D to create the products and services of the future.
Transitioning to low-carbon activities: Companies also deliberately use an internal carbon price to drive emissions reductions and incentivize low-carbon activities – such as energy efficiency investments, clean energy, development of green products/services – in order to facilitate a company-wide low-carbon transition.
Changing internal behavior: Companies may also use an internal carbon price to improve employee awareness of climate-related issues and the financial cost of carbon, energy, or fuel. An internal carbon price can motivate staff to support sustainability initiatives and achieve climate-related commitments and targets.

For more information, please read the following documents:

How-To Guide to Corporate Internal Carbon Pricing: Four dimensions to best practice approaches. Ecofys, The Generation Foundation and CDP, 2017.
Putting a price on carbon: The state of internal carbon pricing by corporates globally. CDP, 2021.
CDP’s Carbon Pricing web page

(C11.3a) Provide details of how your organization uses an internal price on carbon.

Question dependencies

This question only appears if you select “Yes” in response to C11.3.

Change from last year

Modified question

Rationale

Investors have requested data on why and how internal carbon pricing is used as a tool to assess and manage carbon-related risks and opportunities within a business’ operations, supply chain, and investments. This information can help an investor gauge the efficacy of a company’s application of the carbon price in terms of meeting its objectives.

Ambition: Internal carbon prices are applied strategically, enforced across all business decision making processes, and are aligned with the carbon price levels needed to meet the Paris Agreement goals.

Connection to other frameworks

S&P Global Corporate Sustainability Assessment

Internal Carbon Pricing

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Type of internal carbon price	How the price is determined	Objective(s) for implementing this internal carbon price	Scope(s) covered	Pricing approach used – spatial variance	Pricing approach used – temporal variance	Indicate how you expect the price to change over time*
1	2	3	4	5	6	7
Select from: Shadow price Internal fee Internal trading Implicit price Other, please specify	Select all that apply: Alignment with the price of allowances under an Emissions Trading Scheme Alignment with the price of a carbon tax Social cost of carbon Price/cost of voluntary carbon offset credits Cost of required measures to achieve emissions reduction targets Benchmarking against peers Price with material impact on business decisions Other, please specify	Select all that apply: Change internal behavior Drive energy efficiency Drive low-carbon investment Identify and seize low-carbon opportunities Navigate GHG regulations Stakeholder expectations Stress test investments Reduce supply chain emissions Set a carbon offset budget Other, please specify	Select all that apply: Scope 1 Scope 2 Scope 3 (upstream) Scope 3 (downstream	Select from: Uniform Differentiated Other, please specify	Select from: Static Evolutionary Other, please specify	Text field [maximum 1,000 characters]

Actual price(s) used – minimum (currency as specified in C0.4 per metric ton CO₂e)	Actual price(s) used – maximum (currency as specified in C0.4 per metric ton CO₂e)	Business decision-making processes this internal carbon price is applied to	Mandatory enforcement of this internal carbon price within these business decision-making processes	Explain how this internal carbon price has contributed to the implementation of your organization’s climate commitments and/or climate transition plan
8	9	10	11	12
Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places and no commas]	Select all that apply: Capital expenditure Operations Procurement Product and R&D Remuneration Risk management Opportunity management Value chain engagement Public policy engagement Other, please specify	Select from: Yes, for all decision-making processes Yes, for some decision-making processes, please specify No	Text field [maximum 2,500 characters]

[Add Row]

Requested content

Type of internal carbon price (column 1)

Select the type of internal carbon pricing mechanism your company utilizes, or use “Other, please specify”. Common types of internal carbon prices are outlined below:
- Shadow price – where a hypothetical cost of carbon is attached to each ton of CO₂e – as a tool to reveal hidden risks and opportunities throughout its operations and supply chain and to support strategic decision-making related to future capital investments. A shadow price can be used in investment decisions or to set budgets, but no actual financial flows are generated.
- Implicit price: where the cost of emissions abatement is divided by the tons of CO₂e abated. An implicit price is calculated retroactively, after a company achieves its desired emissions reductions. This calculation helps quantify the capital investments required to meet climate-related targets and is frequently used as a benchmark for implementing a more strategic internal carbon price. Some companies may also internalize the cost of purchasing carbon credits to set an implicit carbon price.
- Internal fee – mechanisms which charge responsible internal business units for their GHG emissions. An internal fee mechanism approach results in actual financial flows as the collected revenue is reinvested back into clean technologies and other activities that help transition the entire company towards lower-carbon operations and investments.
- Internal trading – mechanisms which allow internal business units to trade allocated carbon credits.
If your organization utilizes more than one type of internal carbon price, add a row to provide details of each type

How the price is determined (column 2)

Select the approach(es) you have used to determine the actual price (i.e., the level or height) of the internal carbon price.
For example, you may use the current or future projected price of allowances under an Emissions Trading Scheme (ETS) to determine the level of your shadow price or internal fee.

Objective(s) for implementing this internal carbon price (column 3)

Select your company’s objective(s) for implementing the internal carbon price. In many cases, companies report multiple objectives – particularly as developments occur that require a readjustment of their pricing approach to maximize its effectiveness.
The available options reflect the most common objectives that companies disclose to CDP; this list is not exhaustive, and you can specify other objectives by selecting “Other, please specify.”

Scope(s) covered (column 4)

Identify the Scope(s) of emissions covered by the internal carbon pricing mechanism. An effective internal carbon price is one that incentivizes a company to reduce greenhouse gas emissions throughout their value chain and to integrate low-carbon activities into their operations.
It is best practice for companies to consider their impact beyond just Scope 1 and 2 emissions to address risks and opportunities associated with their Scope 3 emissions as well, such as in-sourcing and procurement decisions (upstream) and R&D decisions regarding innovation in the market (downstream).

Pricing approach used – spatial variance (column 5)

Select the pricing approach which reflects how the actual price varies across the organization
- Uniform pricing: a single price that is applied throughout the company independent of geography, business unit, or type of decision
- Differentiated pricing: a price that varies by region, business unit or type of decision

Pricing approach used – temporal variance (column 6)

Select the pricing approach which reflects how the actual price will develop over time:
- Static pricing: a price that is constant over time
- Evolutionary pricing: a price that develops over time

Indicate how you expect the price to change over time (column 7)

This column only appears if you select “Evolutionary” in column 6.
Indicate how you expect the actual price of your evolutionary carbon price to change over time. Aim to be specific and quantitative in your response by disclosing the expected percent increase over a specified timeframe.
State whether you are aligning the price with a specific climate-related regulation, commitment, or global goal.

Actual price(s) used – minimum/maximum (currency as specified in C0.4 per metric ton CO₂e) (columns 8 and 9)

If you are reporting a uniform carbon price, you should enter the same figure in columns 8 and 9.
If you are reporting a differentiated carbon price, you should enter the minimum actual price applied within your organization in column 8, and the maximum price applied within your organization in column 9.
These figures should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.

Business decision-making processes this internal carbon price is applied to (column 10)

Disclose all of the business decision-making processes that the internal carbon pricing mechanism applies to. For example, if your organization has set an internal carbon price to drive low-carbon investments, the internal carbon price may be used to inform decision-making processes around research and development of new products/services, procurement, and/or capital expenditure.

Mandatory enforcement of this internal carbon price within these business decision-making processes (column 11)

The degree to which an internal carbon price is enforced in the business decision-making process will vary by company.
Indicate whether your organization enforces the use of the price within the business decision making processes as a mandatory measure.
If you select “Yes, for some decision-making processes, please specify”, specify the business decision making processes selected in column 10 to which the internal carbon price is enforced as mandatory.

Explain how this internal carbon price has contributed to the implementation of your organization’s climate commitments and/or climate transition plan (column 12)

Explain how the internal carbon price has contributed to the implementation of your organization’s climate commitments and/or, if relevant, climate transition plan, through its application in key business decision-making processes (as selected in column 10) and/or the achievement of the original objectives (as selected in column 3).
Provide regional, sectoral, and/or operational context to your response.
If the internal carbon price has not impacted your business in any way, explain why – are there specific challenges associated with your current mechanism?

C12 Engagement

Module Overview

In order to truly reduce global emissions, companies must engage with their value chain on climate-related issues. Questions in this module examine how organizations are working with their suppliers, customers and other partners.

This module provides data users with insight into the different types of activities in which organizations engage to influence public policy on climate-related issues.

The module also investigates whether organizations integrate non-financial metrics and data into mainstream financial reports, which is aligned with the TCFD’s primary aim to have climate-related information disclosed in financial filings.

Key changes

New question:
- C12.5 asks about collaborative industry initiatives related to environmental issues.

Modified questions:
- C12.3 – has revised wording and dropdown options to focus on whether a company assesses if its activities could directly or indirectly influence policy, law, or regulation that may impact the climate.
- C12.3a – has two new columns on the category of the policy, law or regulation that may impact the climate a company is engaging on, and how it relates to their climate transition plan.
- C12.3b – has revised drop-down options and minor changes to wording for clarity.

Click here for a list of all changes made this year.

Sector-specific content

Additional questions on supplier engagement for the following high-impact sectors:

Agricultural commodities
Financial services
Food, beverage & tobacco
Paper & forestry

Pathway diagram - questions

This diagram shows the general questions contained in module C12. To access question-level guidance, use the menu on the left to navigate to the question.

Value chain engagement

(C12.1) Do you engage with your value chain on climate-related issues?

Change from last year

Modified guidance

Rationale

The majority of most companies' emissions occur outside their direct operations. In order to truly reduce global emissions, companies must engage with their value chain on climate-related issues. This question seeks to ascertain which companies are engaging in the best practice of working with upstream and downstream partners to reduce negative environmental impacts.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Response options

Select all that apply from the following options:

Yes, our suppliers
Yes, our customers/clients
Yes, our investees [Financial services only]
Yes, other partners in the value chain
No, we do not engage

Requested content

General

Select all that apply for the reporting year, however if you select “No, we do not engage” do not select any of the other options.
Select yes, only if you have engagements that cover GHG emissions and/or climate-related strategies (i.e. target setting, renewable energy procurement, etc.).
Other partners in the value chain are any companies that you work with in your up- or downstream activities that are not your suppliers or customers. For example, you could select this option if you engage with your franchisees on GHG emissions and climate change strategies.

- Note that employees can be treated as value chain partners if they are making their own decisions on, for example, how they commute to work. However, if employees are under direction of their manager for business travel then they should not be treated as external to the organization; in this instance, the value chain partner is the provider of the business travel, not the employee.

Note for financial services sector companies:

Consider your engagement activity with customers/clients and investees to encourage better disclosure and practices around climate-related risks.
Select “Yes, other partners in the value chain” if your organization engages with other financial system actors e.g. credit rating agencies, auditors, or stock exchanges.
Further details can be provided in subsequent questions C-FS12.1b and C-FS12.1c.

(C12.1a) Provide details of your climate-related supplier engagement strategy.

Question dependencies

This question only appears if you select “Yes, our suppliers” in response to C12.1.

Change from last year

Minor change

Rationale

Answers to this question provide investors and data users with more transparency regarding companies' supplier engagement processes. As the majority of most companies’ emissions occur outside their direct operations, data users are interested in understanding how organizations are working with their suppliers to drive best practice and ameliorate climate-related issues.

Ambition: Companies facilitate and incentivize their suppliers to develop and progress climate transition plans.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

RE100

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Type of engagement

Details of engagement

% of suppliers by number

% total procurement spend (direct and indirect)

% of supplier-related Scope 3 emissions as reported in C6.5

Rationale for the coverage of your engagement

Impact of engagement, including measures of success

Comment

Select from:

Information collection (understanding supplier behavior)
Engagement & incentivization (changing supplier behavior)
Innovation & collaboration (changing markets)
Other, please specify

Select all that apply:

Information collection (understanding supplier behavior)

Collect GHG emissions data at least annually from suppliers
Collect targets information at least annually from suppliers
Collect climate-related risk and opportunity information at least annually from suppliers
Collect climate transition plan information at least annually from suppliers
Collect other climate related information at least annually from suppliers
Other, please specify

Engagement & incentivization (changing supplier behavior)

Run an engagement campaign to educate suppliers about climate change
Provide training, support, and best practices on how to make credible renewable energy usage claims
Provide training, support, and best practices on how to set science-based targets
Directly work with suppliers on exploring corporate renewable energy sourcing mechanisms
Climate change performance is featured in supplier awards scheme
Offer financial incentives for suppliers who reduce your operational emissions (Scopes 1 & 2)
Offer financial incentives for suppliers who reduce your downstream emissions (Scopes 3)
Offer financial incentives for suppliers who reduce your upstream emissions (Scopes 3)
Offer financial incentives for suppliers who increase the share of renewable energy in their total energy mix
Offer financial incentives for suppliers who develop/adopt a climate transition plan
Facilitate adoption of a unified climate transition approach with suppliers
Other, please specify

Innovation & collaboration (changing markets)

Run a campaign to encourage innovation to reduce climate impacts on products and services
Collaborate with suppliers on innovative business models to source renewable energy
Invest jointly with suppliers in R&D of relevant low-carbon technologies
Other, please specify

Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]

Text field [maximum 2,400 characters]

[Add Row]

Requested content

General

If you select “Other, please specify,” provide a label for the “Type of engagement” or “Details of engagement.”

Type of engagement (column 1)

Select the type of engagement activity your organization participates in from the drop-down.
- Information collection (understanding supplier behavior) - Select this option if the purpose of your engagement with suppliers is to gather data outside of specific initiatives.
- Engagement & incentivization (changing supplier behavior) - Choose this option if you offer specific incentives for your suppliers or engage with them to meet climate-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial. Engagement can be training, support, or collaboration with suppliers.
- Innovation & collaboration (changing markets) - Select this option if you specifically encourage your suppliers to develop new ways to reduce climate change impacts of the products/services that they offer. This can include formal campaigns and calls for partnerships as well as informal collaboration opportunities.

Details of engagement (column 2)

Expand on the engagement activity (selected in column 1) your organization participates in by selecting all the relevant engagement methods from the drop-down options.
Your selection in column 1 determines which options you will see here. E.g. If you select “Innovation & collaboration (changing markets)”, you will only see the associated drop-down options here.
Note that “Climate transition plan information” refers to any information collected from suppliers to help your organization develop or implement its climate transition plan, and also to disclosures (e.g. to CDP) of whether your suppliers have a climate transition plan in place.
You should select “Facilitate adoption of a unified climate transition approach with suppliers” if your organization is ensuring that your transition approach, as set out through your climate commitments or climate transition plan, is adopted by your suppliers, where possible.

% of suppliers by number (column 3)

Include the percentage of the total number of suppliers within your value chain that the suppliers participating in the engagement activity detailed in this row represents. For example, if there are 2000 suppliers within your value chain, and for a specific engagement activity you engaged with 500 suppliers, enter a value of 25%.

% total procurement spend (column 4)

Include the percentage of total procurement spend (for the reporting year) that the group of suppliers participating in the engagement activity detailed in this row represent. Note that total (direct and indirect) procurement spend includes all operational expenses on raw materials, goods, and services procured.
Do not include new or potential suppliers for whom you do not have spend data.

% of supplier-related Scope 3 emissions as reported in C6.5 (column 5)

Provide the percentage of supplier-related scope 3 emissions reported in C6.5 that are attributable to suppliers participating in the engagement activity selected in this row.
Include any upstream Scope 3 categories that you have reported in C6.5 in your calculation (i.e. Categories 1-8 and “Other (Upstream)”). You may exclude Category 7 “Employee Commuting” if you do not engage with the suppliers of your employees’ commuting activities (e.g. transport providers).
If, for example, the company reports supplier-related emissions in C6.5 in two Scope 3 categories, “Purchased goods and services” (category 1) and “Upstream transportation and distribution” (category 4), they may calculate the % in this column using the formula:

Rationale for coverage of your engagement (column 6)

Explain how and why this group of suppliers was chosen for the engagement selected in column 1 (e.g. proportion of spend, geographic location, etc.). The description should be company-specific and include details on what the engagement activity entails.
Use this column to specify which tier(s) of suppliers are included in the calculation of the figure reported in column 3.

Impact of engagement, including measures of success (column 7)

Use this column to discuss the impact of this engagement and how you measure its success.
Include a threshold at which you consider your impact to be successful with regard to the measure of success. For example, if you selected “Offer financial incentives for suppliers who increase the share of renewable energy in their total energy mix” in column 2, the measure of success could be an increase in the share of renewable energy in the engaged suppliers’ total energy mix of 5% per year.
Provide a company-specific description of the impact of your climate-related supplier engagement strategy, including examples of positive outcomes achieved. For example, this could include supplier GHG emissions reductions and/or improved climate change strategies including target setting.

Comment (column 8) (optional)

Use this column to provide any additional explanation that is relevant to capture the full complexity of the emissions changes, using no more than 2400 characters.

Example response

See table below:

Type of engagment	Details of engagement	% of suppliers by number	% total procurement spend (direct and indirect)	% of supplier-related Scope 3 emissions as reported in C6.5	Rationale for the coverage of your engagement	Impact of engagement, including measures of success	Comment
Engagement & incentivization (changing supplier behavior)	Run an engagement campaign to educate suppliers about climate change	0.6	27.4	42	Our supplier engagement strategy is based around the Scope 3 component of our SBTi-approved science-based target, which committed to working with our suppliers (representing 70% of its supply chain emissions) so that they set their own science-based reduction targets and report annual emissions by 2025. The coverage of this target prioritizes Company A’s engagement not on a vaguely defined list of “key suppliers” but rather on the absolute emissions of all suppliers, which will maximize the science-based target’s impact. The target’s requirement of suppliers to report emission reduction progress will not only encourage progress on GHG emissions management but also allow measurement of absolute emissions reductions. At this point this coverage is only of legacy Company A suppliers as we continue to integrate Subsidiary X’s supply chain into all of our goals and targets.	Company A’s science-based target was recently approved by SBTi. As we move toward our target, the impact of engagement will include supplier GHG emissions reductions and/or improved climate change strategies including target setting. Based on an estimated average absolute emissions reduction of 15% per supplier involved in achieving the goal, we anticipate the absolute emissions impact will be 100,000 tCO2e per year (a 10.5% reduction in Company A’s total scope 3 emissions). Success will be measured by percent of suppliers engaged, with a target to have 70% of supply chain emissions set their own science-based reduction targets and report annual emissions by 2025. In 2019, we measured the success of this strategy versus our targets for the first time as we have engaged suppliers representing 33% of Company A’s legacy supply chain emissions through the CDP Supply Chain platform. Of this, suppliers representing 26% of Company A’s legacy supply chain emissions have an approved, committed to or plan to set an SBT.	Our engagement of suppliers for our approved science-based target will primarily be through CDP Supply Chain and in the future, we will strive to report on legacy Subsidiary X’s supply chain emissions progress.

Explanation of terms

Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5 degrees Celsius. Please refer to the CDP Climate Transition Plan technical note for more details.

(C-FS12.1b) Give details of your climate-related engagement strategy with your clients.

Question dependencies

This question only appears if you have selected either “Banking”, “Investor (Asset Manager)” and/or “Insurance underwriting” as an activity in response to C-FS0.7 in Module 0. It will not appear if you have only selected "Investing (Asset Owner)".

This question only appears to FS companies that select “Yes, our customers/clients” in response to C12.1.

Change from last year

Minor change

Rationale

This question provides investors and data users with more transparency regarding organization’s client engagement processes. Data users are interested in understanding how financial services companies are working with their clients to drive best practice in mitigating climate change. For example, data users are interested in knowing whether your organization encourages coporate clients to set science-based targets.

Ambition: Financial services companies engage with their corporate clients to support their transition to net-zero by 2050 or sooner.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

NZAM (FS only)

Commitment A

Commitment 6

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Type of clients	Type of engagement	Details of engagement	% client-related Scope 3 emissions as reported in C-FS14.1a	Portfolio coverage (total or outstanding)	Rationale for the coverage of your engagement	Impact of engagement, including measures of success
Select from: Customers/clients of Banks Clients of Asset Managers (Asset owners) Customers/clients of Insurers	Select from: Education/information sharing Collaboration & innovation Compliance & onboarding Information collection (understanding client behavior) Engagement & incentivization (changing client behavior) Other, please specify	Select all that apply: (drop-down options below)	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Percentage field [enter a percentage from 0-100]	Select from: Non-targeted engagement Engagement targeted at clients with increased climate-related risks Engagement targeted at clients with increased climate-related opportunities Engagement targeted at clients currently not meeting climate-related policy requirements Engagement targeted at clients with the highest potential impact on the climate Other, please specify	Text field [maximum 2,500 characters]

[Add row]

Details of engagement drop-down options (column 3)

Education/information sharing

Run an engagement campaign to educate clients about your climate change performance and strategy
Run an engagement campaign to educate clients about the climate change impacts of (using) your products, goods, and/or services
Run an engagement campaign to educate clients about climate change
Share information about your products and relevant certification schemes (i.e. Energy STAR)
Provide asset owner clients with information and analytics on net zero investing and climate risk and opportunity

Collaboration & innovation

Run a campaign to encourage innovation to reduce climate change impacts
Work in partnership with asset owner clients on decarbonization goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management
Other, please specify

Compliance & onboarding

Included climate change considerations in client management mechanism
Other, please specify

Information collection (understanding client behavior)

Collect climate change and carbon information at least annually from long-term clients
Other, please specify

Engagement & incentivization (changing client behavior)

Engage with clients on measuring exposure to climate-related risk
Engage with clients and potential clients, particularly those with the most GHG-intensive and GHG-emitting activities, on their decarbonization strategies and net-zero transition pathways
Encourage better climate-related disclosure practices
Encourage clients to set a science-based emissions reduction target
Offer financial incentives for clients who reduce your downstream emissions (Scope 3) and/or exposure to carbon-related assets
Other, please specify

Requested content

General

Add a row for each type of client and each type of engagement you are disclosing.
For the purpose of this question, focus on your corporate clients.
Add a row also in case you wish to provide information about different details of engagement within the same type.

Type of engagement (column 2)

Select the type of engagement activity your organization participates in from the drop-down.
If you select “Other, please specify,” provide a label for the “Type of engagement”.

Details of engagement (column 3)

Expand on the “Type of engagement” (selected in column 2) your organization participates in by selecting the relevant details of engagement from the drop-down.

- Education/information sharing - Select this option if the aim of engagement is to educate and inform clients about climate change and GHG emissions but not necessarily instigate any specific action.
- Collaboration & innovation - Select this option if you specifically encourage your clients to develop new ways to reduce the climate change impacts of the products/services that they procure from you. This can include formal campaigns and calls for partnerships as well as informal opportunities to reduce negative impacts.
- Compliance & onboarding - Select this option if you require your clients to adhere to specific climate-related policies and/or if you provide onboarding, either with or without training, for those clients to understand and meet your expectations. Compliance requirements can be either pre-requisites to establishing a financing relationship, or be specified as metrics to achieve once onboarding is completed. Select this option if adherence to certain climate-related guidelines is included in customer evaluations and/or financing contracts.
- Information collection (understanding client behavior) - Select this option if the purpose of your engagement with customers is to gather climate-related data outside of specific initiatives.
- Engagement & incentivization (changing client behavior) - Choose this option if the purpose of your engagement is to change client behavior to mitigate climate change. This can include offering specific incentives for your clients to meet climate-related goals or strategies or to set a science-based target. Incentives can be recognition (i.e., award schemes or special acknowledgements) or financial.

% of client-related Scope 3 emissions as reported in C-FS14.1a (column 4)

Only include the percentage of customer-related Scope 3 emissions reported in C-FS14.1a that are attributable to clients participating in the activity selected in this row.

Portfolio coverage (total or outstanding) (column 5)

Base the coverage of your portfolio on the portfolio value customers participating in this engagement activity represent. Coverage can be based on either total or outstanding commitments, premiums, and/or committed capital, please define this in the next column. For example, total commitments include total revolving credit lines while outstanding commitments include only outstanding amounts drawn on revolving credit lines.

Rationale for the coverage of your engagement (column 6)

Select the option which best describes how and why clients were chosen for the engagement selected in column 2 (e.g. exposure to climate-related risks and/or opportunities, potential impact on the climate, proportion of revenue generated, geographic location, etc.).

Impact of engagement, including measures of success (column 7)

Discuss the impact of this engagement and how you measure its success.
Include a threshold at which you consider your impact to be successful with regard to the measure of success. For example, if you selected “Encourage clients to set a science-based emissions reduction target”, the measure of success could be a 10% increase in clients getting official validation by the Science Based Targets initiative (SBTi) for their emissions reduction targets.
Define the coverage of your portfolio based on the portfolio value represented by clients participating in this engagement activity.
Include a description of any engagement activity you undertake with clients to manage these climate-related risks in your portfolio.
Provide examples of positive outcomes achieved. For example, this could include clients reducing GHG emissions in their direct operations or increasing renewable energy procurement.
The description should be company-specific and include details on the impact of the climate-related client engagement strategy.

(C-FS12.1c) Give details of your climate-related engagement strategy with your investees.

Question dependencies

This question only appears if you select “Yes” in C2 for rows “Investing (Asset manager)” and/or “Investing (Asset owner)” in response to C-FS0.7 and ‘Yes, our investees’ in response to C12.1.

Change from last year

Revised question dependency; Modified guidance

Rationale

This question provides investors and data users with more transparency regarding investee engagement processes. As the majority of financial sector organizations’ emissions occur outside their direct operations, data users are interested in understanding how organizations are working with their investees to drive best practice in mitigating climate change. For example, data users are interested in knowing whether you are encouraging your investees to set science-based targets.

Ambition: Financial services companies engage with their investees to support their transition to net-zero by 2050 or sooner.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

NZAM (FS only)

Commitment 3

Commitment 7

Response options

Please complete the following table. You are able to add rows by using the "Add Row" button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Type of engagement

Details of engagement

% scope 3 emissions as reported in C-FS14.1a/C-FS14.1b

Investing (Asset managers) portfolio coverage*

Investing (Asset owners) portfolio coverage*

Rationale for the coverage of your engagement

Impact of engagement, including measures of success

Select from:

Information collection (understanding investee behavior)
Engagement & incentivization (changing investee behavior)
Innovation & collaboration (changing markets)
Other, please specify

Select all that apply:

Information collection (understanding investee behavior)

Included climate-related criteria in investee selection/management mechanism
Climate-related criteria is integrated into investee evaluation processes
Collect climate-related and carbon emissions information from new investee companies as part of due diligence
Collect climate-related and carbon emissions information at least annually from long-term investees
Other, please specify

Engagement & incentivization (changing investee behavior)

Exercise active ownership
Support climate-related shareholder resolutions
Support climate-related issues in proxy voting
Implement a stewardship and engagement strategy, with a clear escalation and voting policy, that is consistent with our ambition for all assets under management to achieve net zero emissions by 2050 or sooner
Engagement with 20 investees with a focus on highest emitters or those responsible for 65% of emission in portfolio (either Direct, Collective, or via Asset Manager)
Initiate and support dialogue with investee boards to set Paris-aligned strategies
Encourage better climate-related disclosure practices among investees
Encourage investees to set a science-based emissions reduction target
Offer financial incentives for investees who reduce your emissions (Scope 3)
Other, please specify

Innovation & collaboration (changing markets)

Carry out collaborative engagements with other investors or institutions
Run a campaign to encourage innovation to reduce climate change impacts
Other, please specify

Other, please specify

Other, please specify

Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]

Percentage field [enter a percentage from 0-100]

Select from:

Non-targeted engagement
Engagement targeted at investees with increased climate-related risks
Engagement targeted at investees with increased climate-related opportunities
Engagement targeted at investees currently not meeting climate-related policy requirements
Engagement targeted at investees with the highest potential impact on the climate
Other, please specify

Text field [maximum 2,500 characters]

[Add Row]

Requested content

General

Add a row for each type and/or detail of engagement.
Add a row also in case you wish to provide information about different details of engagement within the same type.

Type of engagement (column 1)

If you select “Other, please specify,” provide a label for the “Type of engagement”.

Details of engagement (column 2)

The drop-down options presented are linked to the type of engagement you selected in column 1

- Information collection (understanding investee behavior) - Select this option if the purpose of your engagement with investees is to gather data outside of specific initiatives.
- Engagement & incentivization (changing investee behavior) - Select this option if you engage on climate-related issues in shareholder resolutions, proxy votes, in the form of active ownership, or in encouraging investees to set a science-based target. Also, choose this option if you offer specific incentives for your investees to meet climate-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial.
- Innovation & collaboration - Select this option if you specifically encourage your investees to develop new ways to reduce the climate change impacts of the products/services that you are financing. This can include formal innovative collaboration projects, campaigns and calls for partnerships as well as informal opportunities to reduce negative impacts.

% Scope 3 emissions as reported in C-FS14.1a/C-FS14.1b (column 3)

Only include the percentage of investee-related Scope 3 emissions that you report in C-FS14.1a/C-FS14.1b that are attributable to investees participating in the activity selected in this row.

Investing (Asset managers) Portfolio coverage (column 4)

Select the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity. Coverage can be based on either total assets under management (AUM) or outstanding commitments, premiums, committed capital and/or other. Please define this in column 7.

Investing (Asset owners) Portfolio coverage (column 5)

Select the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity. Coverage can be based on either total assets under management (AUM) or outstanding commitments, premiums, committed capital and/or other. Please define this in column 7.

Rationale for the coverage of your engagement (column 6)

Select the option which best describes how and why investees were chosen for the engagement selected in column 1 (e.g. proportion of revenue generated, geographic location, etc.).

Impact of engagement, including measures of success (column 7)

Discuss the impact of this engagement and how you measure its success.
Define the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity
Include a description of any engagement activity you undertake with investee companies to manage these climate-related risks in your investment portfolio.
Provide examples of positive outcomes achieved. For example, this could include investees reducing product use-phase GHG emissions or increasing renewable energy procurement.
The description should be company-specific and include details on the impact of the climate-related investee engagement strategy.

(C12.1d) Give details of your climate-related engagement strategy with other partners in the value chain.

Question dependencies

This question only appears if you select “Yes, other partners in the value chain” in response to C12.1.

Change from last year

Modified guidance

Rationale

While engaging with suppliers is considered best practice, some companies may find it appropriate to work with other aspects of their value chain beyond customers and suppliers. This question provides investors and data users with more transparency into companies' engagement strategies beyond the standard or expected parties.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

NZAM (FS only)

Commitment 8

Response options

This is an open text question with a limit of 5,000 characters.

Please note that when copying from another document into the ORS, formatting is not retained.

Requested content

General

Note that your answer to this question should only include information not captured in C12.1a or C12.1b, and therefore only be pertinent to elements of your value chain that are not suppliers or customers, such as any franchisees. Please ensure that you explicitly identify which value chain partners you are referring to in your response.
[Financial services only] These partners could include other financial system actors such as credit rating agencies, auditors, or stock exchanges.
Provide a company-specific description of your climate-related engagement strategy, including methods of engagement, how you prioritize engagements with other elements of your value chain, and how you measure the success of these engagements.
Methods of engagement could include, but are not limited to:

- one to one meetings or written correspondence
- collaborative projects
- holding training events
- advertising, etc.

Your strategy for prioritizing engagements should detail how you have chosen the parts of the value chain as well as the individual partners to focus your engagement on.
Detail how you have, or propose to, measure success and any positive outcomes achieved in the reporting year.
Provide an example or case study of your engagement with other partners in the value chain.

(C12.1e) Why do you not engage with any elements of your value chain on climate-related issues, and what are your plans to do so in the future?

Question dependencies

This question only appears if you select “No, we do not engage” in response to C12.1.

Change from last year

No change

Rationale

As engaging with at least some part of the value chain is considered best practice, investors and data users need to know why companies are not yet working to affect positive environmental change beyond their direct operations.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Response options

This is an open text question with a limit of 5,000 characters.

Please note that when copying from another document into the ORS, formatting is not retained.

Requested content

General

Provide a company-specific explanation of why you do not engage with any elements of your value chain on climate-related issues, and outline your plans to do so in the future. Please clearly separate the two elements of the question in your response.

(C-FS12.2) Does your organization exercise voting rights as a shareholder on climate-related issues?

Question dependencies

This question only appears if you select “Investing (Asset Manager)” and/or “Investing (Asset Owner)” in response to C-FS0.7.

Change from last year

No change

Rationale

Active ownership is a key tool for positively impacting the real economy because divestment alone leaves investors without a voice to promote sustainable practices. Alongside their investee engagement activities, investors can influence their investees on environmental issues by exercising their voting rights. Data users are interested in understanding how aligned shareholders’ voting decisions across the investment portfolio are with the overall environmental strategy and how they support climate-related shareholder resolutions.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

NZAM (FS only)

Commitment 7

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Exercise voting rights as a shareholder on climate-related issues

Primary reason for not exercising voting rights as a shareholder on climate-related issues*

Explain why you do not exercise voting rights on climate-related issues*

Select from:

Yes
No, but we plan to in the next two years
No, and we do not plan to in the next two years

Select from:

Important but not an immediate priority
Judged to be unimportant, explanation provided
Lack of internal resources
No instruction from management
Other, please specify

Text field [maximum 2,500 characters]

Requested content

General

Organizations with activities in more than one sector may also be presented with C12.2 and C12.2a.

Exercise voting rights as a shareholder on climate-related issues (column 1)

Select “Yes” if you exercise your voting rights as a shareholder, including indirectly.
You can give further details on how you have exercised your voting rights in the following question.

Primary reason for not exercising voting rights as a shareholder on climate-related issues (column 2)

Select the primary reason why your company does not exercise its voting rights as a shareholder on climate-related issues.
Select only one option from the drop-down menu. If multiple options reasonably apply to your company, explain any additional reasons in column 3.

Explain why you do not exercise voting rights on climate-related issues (column 3)

Provide a company-specific explanation of why you do not exercise voting rights on climate-related issues and outline any plans to do so in the future.

(C-FS12.2a) Provide details of your shareholder voting record on climate-related issues.

Question dependencies

This question only appears if you select “Yes” in column 1 in C-FS12.2.

Change from last year

Minor change

Rationale

Ambition: Investors use their voting right as a shareholder to drive climate action across their value chain.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

NZAM (FS only)

Commitment 7

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Method used to exercise your voting rights as a shareholder

How do you ensure your shareholder voting rights are exercised in line with your overall strategy or transition plan?*

Percentage of voting disclosed across portfolio*

Climate-related issues supported in shareholder resolutions*

Do you publicly disclose the rationale behind your voting on climate-related issues?*

Select from:

Exercise voting rights directly
Exercise voting rights through an external service provider

Select all that apply:

Vote tracking
Publish requirements of external service providers in relation to climate-related issues
Review external service provider’s climate-related policies
Review external service provider’s climate-related performance (e.g. active ownership, proxy voting records)
Include climate-related requirements in requests for proposals
Include climate-related requirements in service provider mandates
Include climate-related requirements in performance indicators and incentive structures
Other, please specify
None of the above

Percentage field [enter a percentage from 0-100]

Select all that apply:

Climate transition plans
Climate-related disclosures
Aligning public policy position (lobbying)
Emissions reduction targets
Board oversight of climate-related issues
Other, please specify
None of the above

Select from:

Yes, for all
Yes, for some
No

[Add row]

Requested content

General

Organizations with activities in more than one sector may also be presented with C12.2 and C12.2a.
Use “add row” if you exercise your voting rights as a shareholder both directly and indirectly.

Method used to exercise your voting rights as a shareholder (column 1)

Select whether you exercise your voting rights either directly or through an external service provider.

How do you ensure your shareholder voting rights are exercised in line with your overall strategy or transition plan? (column 2)

This column appears if “Exercise voting rights through an external service provider” is selected in column 1.
If you exercise your voting rights through an external service provider, select which processes you use to ensure that your voting rights are exercised in line with your overall climate strategy.

Percentage of voting disclosed across portfolio (column 3)

This column appears if “Exercise voting rights directly” is selected in column 1 or if “Vote tracking” is selected in column 2.
Indicate the proportion of voting publicly disclosed across portfolio.

Climate-related issues supported in shareholder resolutions (column 4)

This column appears if “Exercise voting rights directly” is selected in column 1 or if “Vote tracking” is selected in column 2.
Select which climate-related issues you supported in shareholder resolutions during the reporting year.

Do you publicly disclose the rationale behind your voting on climate-related issues? (column 5)

This column appears if “Exercise voting rights directly” is selected in column 1.
Indicate if you publicly disclose the rationale behind your votes in favor/against or abstentions on climate-related shareholder resolutions.

Explanation of terms

Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5 degrees Celsius. Please refer to the CDP Climate Transition Plan technical note for more details.

Additional information

The process and language around resolutions vary by region. At this time, CDP cannot advise on the resolution process, but companies can refer to the Say on Climate campaign website or engage with its other supporting partners As You Sow (US), Share Action (UK/EU), or ACCR (AsiaPac/Australasia) that are focused on this work.

Question Question C-AC12.2/C-FB12.2/C-PF12.2 only applies to organizations with activities in the following sectors:

Agricultural commodities
Food, beverage & tobacco
Paper & forestry

Public policy engagement

(C12.3) Does your organization engage in activities that could either directly or indirectly influence policy, law, or regulation that may impact the climate?

Change from last year

Modified question

Rationale

Data users wish to understand how companies’ policy engagement on climate change relate to other stances taken. It is important that companies maintain a consistent approach to issues -engaging in some activities whose purpose is to discredit climate science, for instance, while also working with other groups to advance solutions and adaptations to climate change sends conflicting messages to data users about that company’s priorities and stance. This question provides data users with insight into the different types of activities that organizations engage in, and enables companies to disclose the processes they use to make sure that their position on climate change is compatible with both the activities in which they partake, and the global temperature goals of the Paris Agreement.

Ambition: Companies assess whether their external engagement activities could directly or indirectly influence policy, law, or regulation that could support, or undermine, a 1.5°C world.

Connection other frameworks

S&P Global Corporate Sustainability Assessment

Environmental Policy & Commitments

NZAM (FS only)

Commitment 9

Response options

Please complete the following table.

External engagement activities that could directly or indirectly influence policy, law, or regulation that may impact the climate

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?

Attach commitment or position statement(s)

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan

Primary reason for not engaging in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate

Explain why your organization does not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate

Select all that apply:

Yes, we engage directly with policy makers
Yes, our membership of/engagement with trade associations could influence policy, law, or regulation that may impact the climate
Yes, we fund organizations or individuals whose activities could influence policy, law, or regulation that may impact the climate
No, we have assessed our activities, and none could either directly or indirectly influence policy, law, or regulation that may impact the climate
Not assessed

Select from:

Yes
No, but we plan to have one in the next two years
No, and we do not plan to have one in the next two years

[Attachment(s)]

Text field [maximum 2,500 characters]

Select from:

Important but not an immediate priority
Judged to be unimportant
Lack of internal resources
No instruction from management
Other, please specify

Text field [maximum 2,500 characters]

Requested content

General

This question is focused on external engagement with policy makers, government departments, or regulatory bodies on a regional, local, national, or international level.
Responses should be relevant to the reporting year only (as defined by your answer to C0.2).
There will be a wide range of activities that could be considered as each of these options. In response to this question, please select all that apply regardless of your role and how significant those activities are for your company or a third party.
For trade associations and funding other organizations or individuals, you should identify any relationships where the other party takes an active role in climate change, even if your own relationship with them is not climate change-focused. You will be given an opportunity to describe the engagement in subsequent questions.
If you fund political candidates or parties you should select “Yes, we fund organizations or individuals whose activities could influence policy, law, or regulation that may impact the climate” even if you do not engage with them directly on specific legislation.
Do not select "No, we have assessed our activities, and none could either directly or indirectly influence policy, law, or regulation that may impact the climate” or “Not assessed” as well as one of the other options, as this would be a non-logical response.
Your selections for this question will determine which other questions will appear in this section.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement? (column 2)

This should take the form of a clear, public statement that your organization will ensure its direct and indirect engagement activities are aligned with the goals of the Paris Agreement.
Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
The statement should specifically refer to the Paris Agreement, rather than e.g. your organizations climate change policy or targets.

Attach commitment or position statement(s) (column 3)

This column only appears if “Yes” is selected in “Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris agreement?” (column 2).
Even where the relevant information is web-based (e.g. an item on your website), you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfill this requirement.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan (column 4)

The intention of this column is to understand how your organization manages the multiple engagement activities around climate change across business divisions and geographies to ensure that you have a common approach that is also consistent with your strategy on climate change.
Explain the processes that you have in place, or if you do not have any in place, how you plan to address this potential for conflict in the future.

Primary reason for not engaging in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate (column 5)

This column only appears if “No, we have assessed and none of our activities could directly or indirectly influence policy, law, or regulation that may impact the climate” is selected in “Engagement in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate” (column 1).
If more than one reason applies to your organization, select the reason which is most relevant and elaborate on the other reason(s) in column 6.

Explain why your organization does not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate (column 6)

This column only appears if “No, we have assessed and none of our activities could directly or indirectly influence policy, law, or regulation that may impact the climate" is selected in “Engagement in activities that could directly or indirectly Direct or indirect engagement that could influence policy, law, or regulation that may impact the climate” (column 1).
Provide a company-specific explanation as to why your organization does not engage in activities which could directly or indirectly influence policy, law, or regulation that may impact the climate, and outline any plans to engage in such activities in the future.

Additional information

Examples of engagement activity

Direct engagement - This includes all activity where companies (or their representatives such as law firms or public affairs agencies engaged directly by the company) engage with policy makers or regulators on the development of law or regulation. Examples of such activities include responding to a consultation, sitting on a working group or lobbying activities directed at individuals or groups that are part of the process of developing, reviewing or amending a law or regulation. Direct engagement can include any stage in the policy or regulation development process, from the selection of options to final consultation comments, but does not include compliance with a new or updated requirement once it has come into force.
Trade associations - Trade associations (sometimes also referred to as industry associations, trade groups, trade bodies, or industry trade groups) are an association of people or companies in a particular business or trade, organized to promote their common interests. Trade associations are relevant here as they present an “industry voice” to governments to influence their policy development. The majority of organizations are members of multiple trade associations, many of which take a position on climate change and actively engage with policy makers on the development of policy and legislation on behalf of their members. If you are a member of a trade association that engages on climate change, regardless of your own involvement, you should select “trade associations” in question C12.3.
Funding other organizations - In this context, other organizations can include research institutions, Non-Governmental Organizations (NGOs), trusts, universities, and other organizations whose activities could influence policy, law, or regulation that may impact the climate. Funding may take the form of membership fees, sponsorship, donations etc. offered to organizations. The financial support that you give them may or may not be climate change-related, however if they do engage in work that may impact climate change then you should select this option.
For more information please see the 'Guide for Responsible Corporate Engagement in Climate Policy' produced in 2013 by CDP alongside UN Global Compact, Ceres, The Climate Group, WWF and the World Resources Institute.

(C12.3a) On what policy, law, or regulation that may impact the climate has your organization been engaging directly with policy makers in the reporting year?

Question dependencies

This question only appears if you select “Direct engagement with policy makers” in response to C12.3.

Change from last year

Modified question

Rationale

Data users wish to understand how companies’ policy engagement on climate change relate to other stances taken. This question provides increased transparency regarding organizations’ direct engagement with policy makers, and whether the engagement is aligned with the global temperature goals of the Paris Agreement.

Ambition: Companies align their engagement with policy makers with the goals of the Paris Agreement, and engage on policies which are central to the achievement of their climate transition plan.

Connection to other frameworks

NZAM (FS only)

Commitment 9

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Specify the policy, law, or regulation on which your organization is engaging with policy makers	Category of policy, law, or regulation that may impact the climate	Focus area of policy, law, or regulation that may impact the climate	Policy, law, or regulation geographic coverage	Country/area/region the policy, law, or regulation applies to	Your organization’s position on the policy, law, or regulation	Description of engagement with policy makers
1	2	3	4	5	6	7
Text field [maximum 1,500 characters]	Climate change mitigation Climate change adaptation Low-carbon products and services Carbon pricing, taxes, and subsidies	Select all that apply from the drop-down below	Select from: Global Regional National Sub-national Unknown	Select all that apply:[Country/area/region drop-down list] Other, please specify	Select from: Oppose Neutral Support with no exceptions Support with minor exceptions Support with major exceptions Undecided	Text field [maximum 2,500 characters]

Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation

Have you evaluated whether your organization’s engagement on this policy, law, or regulation is aligned with the goals of the Paris Agreement?

Please explain whether this policy, law or regulation is central to the achievement of your climate transition plan and, if so, how?

Text field [maximum 2,500 characters]

Select from:

Yes, we have evaluated, and it is aligned
Yes, we have evaluated, and it is not aligned
No, we have not evaluated

Text field [maximum 2,500 characters]

[Add Row]

Focus of policy, law or regulation that may impact the climate drop-down options (column 3)

Climate change mitigation

Climate-related reporting
Climate-related targets
Climate transition plans
Emissions – CO2
Emissions – methane
Emissions – other GHGs
International agreement related to climate change mitigation
Low-carbon, non-renewable energy generation
New fossil fuel energy generation capacity
Renewable energy generation
Traceability requirements
Transparency requirements
Verification and audits
Other, please specify

Climate change adaptation

International agreement related to climate change adaptation
Construction and housing
Food security
Planning
Public health
Transport infrastructure
Other, please specify

Low-carbon products and services

Alternative fuels
Circular economy
Electricity grid access for renewables
Energy attribute certificate systems
Energy efficiency requirements
Extended Producer Responsibility (EPR)
Green electricity tariffs/renewable energy PPAs
Low-carbon innovation and R&D
Technology requirements
Sustainable finance
Other, please specify

Carbon pricing, taxes, and subsidies

Carbon taxes
Emissions trading schemes
Carbon offsets
Subsidies for renewable energy projects
Subsidies for low-carbon, non-renewable energy projects
Subsidies for fossil fuel exploration and/or extraction
Subsidies on products or services
Subsidies on infrastructure
Taxes on products or services
Other, please specify

Requested content

Specify the policy, law, or regulation on which your organization is engaging with policy makers (column 1)

Provide the name of the legislation and the key actions it proposes.
If you are engaging with multiple policies as part of a policy package, you may group this into a single row. If you are only engaging on part of a policy package, specify which parts you are engaging with and respond to the question based only on the parts you engage with rather than the whole policy package (e.g. If you are engaging with policymakers on the EU Fit for 55 package, you may report this in a single row).
If you are engaging with multiple policies related to a single topic as part of a focus area or engagement strategy (e.g. if you have a plastics policy strategy engaging with multiple policies related to plastic), you may group these into a single row.
If you are engaging on the same policies in multiple jurisdictions (e.g. if you are engaging with emissions trading schemes in multiple countries), you may group these into a single row.
There is no need to provide details on all legislation that your organization has engaged with policy makers on – only those on which you have been actively engaging in the reporting year.

Category of policy, law, or regulation that may impact the climate (column 2)

This column relates to the general type of legislation that your organization is engaging with.
- Climate change mitigation – policies related to reducing greenhouse gas emissions.
- Climate change adaptation – policies related to adjusting natural or human systems to a changing climate.
- Low-carbon products and services – policies related to products, services and business models with lower GHG emissions.
- Carbon pricing, taxes, and subsidies – policies related to using market signals to put a cost on emitting greenhouse gases.

Focus area of policy, law or regulation that may impact the climate (column 3)

This column relates to the specific area in which the legislation that your organization is engaging on falls.
The data from this column allows data users to assess comparable legislative developments across multiple geographies.
Select “Emissions – other GHGs” if the legislation aims to reduce GHGs other than CO₂ or methane, such as the gases regulated under the Kyoto and Montreal protocols.

Country/area/region the policy, law or regulation applies to (column 5)

This column only appears if “Regional”, “National”, “Sub-national” is selected in “Policy, law or regulation geographic coverage” (column 3)
If the policy, law, or regulation is at the sub-national level, select “Other, please specify” and specify the region(s) within a nation to which it applies.

Your organization’s position on the policy, law or regulation (column 6)

This should reflect your organization’s overall position on this particular legislation. For example:
- “Support” – select this option if you are engaging in full support of this legislation across all the geographies in which you are engaging on it.
- “Support with minor exceptions” – select this option if you are engaging in support of this legislation with either minor exceptions to the approach or with minor exceptions to geographies for whom it is proposed and where you are actively engaging. For example, if you support the principle of a carbon tax but oppose certain ways in which it is being applied, select this option. You will be given the chance to explain any exceptions in column 7.
- “Support with major exceptions” – select this option if you are engaging in support of this legislation with either major exceptions to the approach or with major exceptions to geographies for whom it is proposed and where you are actively engaging.
- “Neutral” – select this option if you have taken part in engagement activities for this legislation but have not put forward a view.
- "Oppose” – select this option if you have been engaging against this legislation across all relevant geographies.
- “Undecided” – select this option if you have been engaging on this legislation at an early stage in the development process and have yet to give an opinion or attempt to influence the policy development process in any direction.

Description of engagement with policy makers (column 7)

Use the text field to provide details of how your organization is engaging (e.g., responding to a consultation, meeting directly with policy makers, etc.) on the legislation.

Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation (column 8)

This column only appears if “Support with minor exceptions”, “Support with major exceptions”, or “Oppose” is selected in “Your organization’s position on the policy, law or regulation” (column 5)
If your organization supports the legislation with exceptions, provide details of the exceptions and what you would propose in their place.
If your organization opposes the legislation, provide details of an alternative legislative approach that you feel would more effectively reduce carbon emissions in the corporate sector. For example, if you support mandatory climate-related reporting but oppose its schedule for implementation, you should propose an alternative legislative timeframe for the implementation of mandatory climate-related reporting.

Have you evaluated whether your organization’s engagement is aligned with the goals of the Paris Agreement? (column 9)

Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
Engagement that is aligned with the Paris Agreement could include, for example:
- Support of legislation that aims to reduce emissions in line with the Paris Agreement e.g. government subsidies on electric vehicles and associated implementation technology.
- Opposition of legislation that risk to detail Paris Agreement e.g. legislative approval of new fossil fuel extraction or generation facilities in a particular jurisdiction.

Please explain whether this policy, law or regulation is central to the achievement of your climate transition plan and, if so, how (column 10)

Engagement on policies which are central to the achievement of your transition plan could include e.g., support for policies which enable the development of markets and/or provide incentives to manufacture the low-carbon products and services needed for your sector to meet its 1.5°C goal, or opposition to policies that would present a barrier to your organization’s transition.
Explain how this policy, law, or regulation contributes to the achievement of your climate transition plan and describe if and how your organization is relying on this change to achieve your climate transition plan.

Example response

Specify the policy, law, or regulation on which your organization is engaging with policy makers	Category of policy, law, or regulation that may impact the climate	Focus area of policy, law, or regulation that may impact the climate	Policy, law, or regulation geographic coverage	Country/area/region the policy, law, or regulation applies to
The UK Department for Business, Energy & Industrial Strategy (BEIS) consultation on Business Energy Efficiency	Climate change mitigation	Climate-related reporting	National	United Kingdom
EU ETS	Carbon pricing, taxes, and subsidies	Emissions trading schemes	Regional	EU27 Iceland Norway Liechtenstein United Kingdom

Your organization’s position on the policy, law, or regulation	Description of engagement with policy makers	Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation	Have you evaluated whether your organization’s engagement is aligned with the goals of the Paris Agreement?	Please explain whether this policy, law or regulation is central to the achievement of your climate transition plan and, if so, how
Support with no exceptions	Attended the BEIS public webinar and responded to the consultation on Mandatory climate-related financial disclosures by publicly quoted companies, large private companies and LLPs	N/A	Yes, we have evaluated, and it is aligned	N/A
Support with minor exceptions	Met directly with policymakers from the European Commission’s Directorate-General for Climate Action, to communicate the commercial benefits and risks of phase IV proposals for the EU ETS.	We broadly support the phase IV proposals, however we advocate for a more ambitious 3% annual reduction in the overall number of emission allowances, as opposed to the current rate of 2.2%.	Yes, we have evaluated, and it is aligned	N/A

(C12.3b) Provide details of the trade associations your organization is a member of, or engages with, which are likely to take a position on any policy, law or regulation that may impact the climate

Question dependencies

This question only appears if you select “Yes, our membership of/engagement with trade associations could influence policy, law, or regulation that may impact the climate” in response to column 1 in C12.3.

Change from last year

Modified question

Rationale

Trade associations are a crucial tool through which companies can shape policy and interact with legislators and industry peers. These trade associations can potentially play a significant role in the development and adoption of climate policy. As such, investors and data users expect companies to be transparent about their relationships and responsibilities with the groups which are likely to take a position on legislation related to climate change.

Ambition: Companies align their engagement with, or membership of, trade associations with the goals of the Paris Agreement, and seek to influence the position of the associations with regards to these goals.  

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Trade association

Is your organization's position on climate change policy consistent with theirs?

Has your organization attempted to influence their position in the reporting year?

Describe how your organization’s position is consistent with or differs from the trade association’s position, and any actions taken to influence their position

Funding figure your organization provided to this trade association in the reporting year, (currency as selected in C0.4)

Describe the aim of your organization’s funding

Have you evaluated whether your organization’s engagement with this trade association is aligned with the goals of the Paris Agreement?

Select from drop-down options in table below

Select from:

Consistent
Inconsistent
Mixed
Unknown

Select from:

Yes, and they have changed their position
Yes we attempted to influence them but they did not change their position
Yes, we publicly promoted their current position
Yes, we publicly opposed their current position
Yes, we decided to terminate our membership within the next two years
Yes, we terminated our membership in the reporting year
No, we did not attempt to influence their position
No, we do not know their position

Text field [maximum 2,500 characters]

Numerical field [enter a number from 0 to 999,999,999,999,999, using up to 2 decimal places]

Text field [maximum 2,500 characters]

Select from:

Yes, we have evaluated, and it is aligned
Yes, we have evaluated, and it is not aligned
No, we have not evaluated

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Trade association drop-down options (column 1)

Advanced Energy Economy (AEE)
Alliance for Automotive Innovation
Alliance of Automobile Manufacturers
American Chemistry Council
American Fuel & Petrochemical Manufacturers
American Gas Association
American Legislative Exchange Council
American Petroleum Institute
American Wind Energy Association (AWEA)
Business Council of Australia
Business Roundtable
BusinessEurope
California Chamber of Commerce
Canadian Association of Petroleum Producers
CEMBUREAU: The European Cement Association
Confederation of British Industry (CBI)
Confederation of Indian Industries (CII)
Consumer Goods Forum (CGF)
Cross Sector Biodiversity Initiative (CSBI)
Edison Electric Institute (EII)
Eurelectric
Eurometaux
European Automobile Manufacturers Association
European Chemical Industry Council (CEFIC)
European Roundtable of Industrialists (ERT)
European Steel Association (Eurofer)
Federation of French Industry (MEDEF)
Federation of German Industries (BDI)
Federation of Indian Chambers of Commerce & Industry (FICCI)
FuelsEurope
German Automotive Association (VDA)
German Chemical Industry Association (VCI)
Global Off-Grid Lighting Association (GOGLA)
Global Wind Energy Council (GWEC)
International Air Transport Association
International Association of Oil and Gas Producers (IOGP)
International Chamber of Commerce (ICC)
International Chamber of Shipping
International Council on Mining & Metals (ICMM)
Japan Business Federation (Keidanren)
Japan Chemical Industry Association/日本化学工業協会
Japan Iron and Steel Federation
Minerals Council of Australia
National Association of Manufacturers
National Mining Association
Portland Cement Association
Solar Energy Industries Association (SEIA)
SolarPower Europe
Sustainable Agriculture Initiative Platform (SAIP)
The Japan Electrical Manufacturers’ Association (JEMA)
Tropical Forest Alliance
US Chamber of Commerce
WindEurope
World Coal Association
World Steel Association
Other, please specify

Requested content

Trade association (column 1)

If none of the listed options apply, select “Other, please specify” and enter the name of the trade association.
Note that this question asks you to provide details of all trade associations you are a member of that take a position on climate change, not only (but including) those for which you have a formal representation on or provide funding beyond membership.

Is your organization's position on climate change policy consistent with theirs? (column 2)

Select the option which best describes the consistency of your organization’s position on climate change policy with the trade association’s. Refer to the “Additional information” for resources on the climate change policy positions of trade associations.
You will have the opportunity to provide more details in column 4.

Has your organization attempted to influence their position in the reporting year? (column 3)

Select the option which best describes the actions your organization has taken, or is in the process of taking, to influence the trade association’s position on climate change.
If you selected in column 2 that your position is “Consistent” with the trade association’s and you therefore did not attempt to influence their position, you should select “No, we did not attempt to influence their position” in this column.
If you select any option other than ‘Unknown’, you will have the opportunity to provide more details on how your position is consistent with or differs from the trade association’s in column 4.

Describe how your organization’s position is consistent with or differs from the trade association’s position, and any actions taken to influence their position (column 4)

This column only appears if you select any option other than ‘Unknown’ in column “Is your organization’s position on...” (column 2)
Provide details of the trade association’s position on climate change and give examples of any activities the trade association has undertaken in the reporting year to influence climate change policy.
Elaborate on your selections in columns 2 and 3. For example:

- If your organization’s position is “Inconsistent” or “Mixed”, explain how your organization’s position on climate change differs from the trade association’s position and any actions the trade association has taken in support of their position.
- If you have attempted to change the trade association’s position on climate change in the reporting year, describe the actions you took to achieve this and the associated timeframe. If you did not attempt to change the trade association’s position on climate change in the reporting year, explain why not.

Funding figure your organization provided to this trade association in the reporting year, (currency as selected in C0.4) (column 5)

Enter the total amount of funding you have provided to this trade association in the reporting year, including any membership or other fees.
You should include in this figure the estimated value of other, non-financial support you have provided to this trade association in the reporting year (e.g. benefits, etc.).

Describe the aim of your organization’s funding (column 6)

This column only appears if the value for column 5 is greater than 0.
Give an overview of what you aim to achieve through your funding, including any specific outcomes in relation to the trade association’s position on climate change and its activities to influence climate change policy.

Have you evaluated whether your organization’s engagement with this trade association is aligned with the goals of the Paris Agreement? (column 7)

Indicate whether your organization has evaluated the position of the trade association and its activities to influence climate change policy for alignment with the goals of the Paris Agreement.
Any actions you took as a result of this evaluation should be detailed in columns 3 and 4.
Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
Engagement that is aligned with the Paris Agreement could include, for example:

- Influencing a trade association that supports climate denial to change its position or terminating your membership with this trade association.
- Publicly supporting a trade association which aims to influence ambitious climate policy.

Explanation of terms

Trade associations: Trade associations (sometimes also referred to as industry associations, trade groups, trade bodies, or industry trade groups) are an association of people or companies in a particular business or trade, organized to promote their common interests. Trade associations are relevant here as they present an “industry voice” to governments to influence their policy development. The majority of organizations are members of multiple trade associations, many of which take a position on climate change and actively engage with policy makers on the development of policy and legislation on behalf of their members.

Additional information

Climate change position of trade associations

To aid companies in sorting through the climate-related action of trade associations and determining where the groups in which they belong actually stand on climate change, InfluenceMap has launched a corporate climate lobbying platform which uses data-driven analysis to provide detailed measurement of how trade associations influence policy needed to address climate change.

(C12.3c) Provide details of the funding you provided to other organizations or individuals in the reporting year whose activities could influence policy, law, or regulation that may impact the climate.

Question dependencies

This question only appears if you select “Yes, we fund organizations or individuals whose activities could influence policy, law, or regulation that may impact the climate” in response to C12.3.

Change from last year

Minor change

Rationale

Companies have many potential avenues for engagement activities. Funding organizations other than trade associations can play an important role in the development and adoption of climate policy. As such, data users expect companies to be transparent about the full range of their funding activities which could influence policy, law, or regulation that may impact the climate.

Ambition: Companies’ funding of organizations or individuals, whose activities could influence policy, law, or regulation that may impact the climate, is aligned with the goals of the Paris Agreement. 

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Type of organization or individual	State the organization or individual to which you provided funding	Funding figure your organization provided to this organization or individual in the reporting year (currency as selected in C0.4)	Describe the aim of this funding and how it could influence policy, law or regulation that may impact the climate	Have you evaluated whether this funding is aligned with the goals of the Paris Agreement?
Select from: Governmental institution Independent consultant International Governmental Organization (IGO) Non-Governmental Organization (NGO) or charitable organization Political party or political candidate Political committee Private company Publicly-listed company Research organization Start-up company State-Owned Enterprise (SOE)/Government-Owned Corporation (GOC) Trust or foundation University or other educational institution Other, please specify	Text field [maximum 500 characters]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Text field [maximum 2,500 characters]	Select from: Yes, we have evaluated, and it is aligned Yes, we have evaluated, and it is not aligned No, we have not evaluated

[Add row]

Requested content

General

You should also disclose in this question other, non-financial support you have provided to other organizations or individuals in the reporting year (e.g. benefits, etc.). In this case, you should estimate the monetary value of your non-financial support and provide this in column 3.

Type of organization or individual (column 1)

If you fund multiple organizations or individuals whose activities may influence climate policy, you should add a row for each.
See the “Explanation of Terms” for a definition of each organization/individual type.

State the organization or individual to which you provided funding (column 2)

Provide the full name and a short description of the organization or individual to whom you are providing funding. If you have selected an organization, provide also the full name of the organization.

Funding figure your organization or individual provided to this organization in the reporting year (currency as selected in C0.4) (column 3)

Enter the total amount of funding you have provided to this organization, including any membership or other fees.

Describe the aim of this funding and how it could influence policy, law or regulation that may impact the climate (column 4)

Describe the type of funding or non-financial support (e.g. membership fees, sponsorship, grant, benefits, etc), and provide an overview of the objectives of your support, including any expected concrete outcomes (e.g. research papers or reports).
Explain how the outcomes of your funding could influence policy, law or regulation that may impact the climate.
If you have estimated the monetary value of any non-financial support, you should also explain how you estimated the figure reported in column 3.

Have you evaluated whether this funding is aligned with the goals of the Paris Agreement? (column 5)

Indicate whether your organization has evaluated the aims and expected outcomes of your funding for alignment with the goals of the Paris Agreement.
Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
Funding that is aligned with the Paris Agreement could include, for example, funding a research project into new alternative fuels, the report from which may be used to inform future transport policy.

Explanation of terms

Governmental institution: An organization that is connected to or led by a national government (e.g., the UK Committee on Climate Change).
Independent consultant – An organization or individual contracted to perform work for one party with whom the party does not have direct affiliation.
International Governmental Organization (IGO): An organization that is comprised of national governments. For the purposes of this question, IGOs can refer both to organizations created through treaties (e.g., the UN), and to more informal coalitions of national governments (e.g., the G20).
Non-Governmental Organization (NGO) or charitable organization: Any non-profit, voluntary citizens’ group which is organized on a local, national or international level. A charitable organization is typically an NGO with a special legal status, varying by jurisdiction.
Political party or political candidate: An organization or individual who participates in the electoral systems of countries/areas.
Political committee – A group or organization engaging in political financing activity (e.g. 527 Groups, SuperPACs)
Private company: A company which does not offer or trade company stock to the general public.
Publicly-listed company: A company which offers and trades shares of stock freely.
Research organization: An organization which performs research as their primary activity.
Start-up company: A company in the very initial stages of business, often without a fully developed business model.
State-Owned Enterprise (SOE)/Government-Owned Corporation (GOC): A company formed by governments in order to take part in commercial activities.
Trust or foundation: An organization which has been given the right by one party to manage their property or assets for the benefit of some third party.
University or other educational institution: An entity that provides instructional services to individuals or education-related services to individuals and other educational institutions.

(C12.4) Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

Change from last year

No change

Rationale

Best practice in corporate environmental reporting is to integrate non-financial metrics and data into mainstream financial reports. Investors want to understand where and how companies communicate their climate change strategies and emissions figures, and whether these communications are in line with best practice.

Connection to other frameworks

Goal 12: Responsible consumption and production

NZAM (FS Only)

Commitment 10

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Publication

Status

Attach the document

Page/Section reference

Content elements

Comment

Select from:

In mainstream reports
In mainstream reports, in line with the CDSB framework (as amended to incorporate the TCFD recommendations)
In mainstream reports, incorporating the TCFD recommendations
In other regulatory filings
In voluntary communications
In voluntary sustainability report
No publications with information about our response to climate-related issues and GHG emissions performance
Other, please specify

Select from:

Complete
Underway – previous year attached
Underway – this is our first year

Attach your document here.

Text field [maximum 500 characters]

Select all that apply:

Governance
Strategy
Risks & Opportunities
Emissions figures
Emission targets
Other metrics
Other, please specify

Text field [maximum 2,400 characters]

[Add Row]

Requested content

General

This question asks about communication of your position on climate change and carbon emissions outside of your CDP response.
Privately held companies that do not have a legal obligation to produce annual reporting should still select “In mainstream reports” if they publish any annual sustainability reporting.
Even where the relevant information is web-based, you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfill this requirement.

Publication (column 1)

Select from the drop-down options the type of publication your organization has published in response to climate change and its GHG emissions performance for the reporting year in places other than its CDP response.
CDP uses the CDSB Framework definition of mainstream reports, i.e. annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country/area in which they operate and are normally publicly available. It is acknowledged that, in some jurisdictions, multiple documents may meet this definition. Please attach only those which reference your organization’s response to climate change and GHG emissions performance.
Other regulatory filings are reports which are required through regional or national legislation, but which do not fall under the definition of mainstream reports stated above.
Voluntary communications include optional sustainability/CSR reports or any other voluntary consumer facing publications, advertising, company websites, executive speeches and/or presentations.
If you do not publish any content regarding your organization's response to climate change and GHG emissions performance, please select "No publications with information about our response to climate-related issues and GHG emissions performance".
If you select “Other, please specify,” provide a label for the publication.

Status (column 2)

Select from the drop-down options the status of the publication type selected in column 1.
The report should relate to the reporting year although it is acknowledged that it may not be published in the reporting year.
Where reports are not ready for publication at the time of submission of your CDP response, select one of the options that indicate the report is underway.
Where you can attach the previous year’s report to demonstrate that the information is routinely published in this way, select “Underway – previous year attached” and complete columns “Page/Section reference” and “Content elements" with regard to this report.
Where this is the first year that you will have published information in this way, select “Underway – this is our first year” and leave columns “Page/Section reference” and “Content elements" blank.
Where the publication is already available, select “Complete.”

Page/Section reference (column 4)

Identify the page(s) and section(s) of the report attached that refers to climate change and GHG emissions performance. If the whole document relates to climate change and GHG, please state this. If your document is only 1 page long, please still state this.

Content elements (column 5)

Select all content elements that apply from the drop-down that relate to the publication type selected in column 1.

Explanation of terms

Mainstream reports: in line with CDSB, this refers to the annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country/area in which they are incorporated or, if relevant, operate. Mainstream reports are traditionally publicly available. They provide information to existing and prospective investors about the financial position and financial performance of the organisation. The exact provisions under which companies are required to deliver mainstream financial reports differ internationally, but will generally contain financial statements and other financial reporting, including governance statements and management commentary.

Additional information

The Climate Disclosure Standards Board

About

The Climate Disclosure Standards Board (CDSB) is a consortium of business and environmental organizations. CDSB is committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital.
CDSB does this by offering companies a framework for reporting climate change and natural capital information with the same rigor as financial information. In turn this helps them to provide investors with decision-useful environmental information via the mainstream corporate report, enhancing the efficient allocation of capital. Regulators also benefit from compliance-ready materials. 
Recognising that information about natural capital and financial capital is equally essential for an understanding of corporate performance, CDSB’s work builds trust and transparency needed to foster resilient capital markets. Collectively, CDSB aims to contribute to more sustainable economic, social and environmental systems.
CDSB’s Mission is to create the enabling conditions for material climate change and natural capital information to be integrated into mainstream reporting. In effect, this helps create the landscape for companies to translate their sustainability information into business impacts and long-term value.
To fulfil its mission and vision, CDSB seeks to standardize environmental information reporting through collaborating, identifying and coalescing around the most widely shared and tested reporting approaches that are emerging around the world.
CDSB advances its mission by: - Helping companies interpret and better understand their data: CDSB will drive the corporate uptake in current – and future – initiatives such as the TCFD recommendations by providing technical and educational support to corporates and regulators;
- Creating a technical architecture: CDSB will develop and provide a common language and reporting frameworks and develop technical material supporting contentious issues or market needs, spearheaded by the CDSB Framework;
- Making connections: CDSB will engage with corporate, regulators, investors, standard-setters and non-profits to develop industry-driven reporting tools, practices and regulations, and shape regulatory developments.
In April 2018 CDSB released an updated version of its Framework, the CDSB Framework for reporting environmental information, natural capital and associated business impacts, which is now aligned with the TCFD recommendations and other major reporting requirements. Further information on the CDSB Framework can be found on its website.

Why does CDP support the CDSB Framework?

CDP works to transform the way the world does business to prevent dangerous climate change and protect our natural resources, particularly by providing relevant environmental information to investors. Given that an essential way that investors utilize data is through mainstream financial reports, it is integral to CDP’s mission that companies use the CDSB Framework to provide natural capital information to investors through their mainstream financial report.
Therefore, the CDSB Framework provides an important tool for formalizing and advancing the significant progress CDP has made in developing climate change-related and natural capital reporting by bringing it into mainstream financial reporting.
CDP acts as secretariat to CDSB, managing its work program on behalf of the Board members.

Integrated reporting

The primary purpose of an integrated report is to explain to providers of financial capital how an organization creates value over the short, medium and long term. An integrated report aims to communicate a clear, concise, integrated story that explains how all of an organization’s resources are creating value.
The International <IR> Framework takes a principles-based approach. The intent is to strike an appropriate balance between flexibility and prescription that recognizes the wide variation in individual circumstances of different organizations while enabling a sufficient degree of comparability across organizations to meet relevant information needs. It does not prescribe specific key performance indicators, measurement methods, or the disclosure of individual matters, but it does include a small number of requirements that are to be applied before an integrated report can be said to be in accordance with the Framework.

The Task Force on Climate-related Financial Disclosures (TCFD)

About

Launched in December 2015, the Financial Stability Board’s (FSB) industry-led Task Force on Climate-related Financial Disclosure (TCFD) aims to develop voluntary and consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

The TCFD strives to:

Promote more informed investment, credit (or lending), and insurance underwriting decisions;
Enable stakeholders to better understand the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks;
Foster an early assessment of these risks, and facilitate market discipline;
Thus providing a source of data that can be analyzed at a systemic level to facilitate authorities’ assessments of the materiality of any risks posed by climate change.

TCFD’s mission

The TCFD was tasked with developing a set of voluntary, financially relevant, climate disclosure recommendations that could promote informed investment, credit, and insurance underwriting decisions that could in turn enable stakeholders to better understand assets exposed to climate-related risks.
Its aim is to enable stakeholders to allocate capital efficiently through the transition to a low-carbon economy without a potential dislocation of capital in the financial markets.
The TCFD’s final report presents a principle-based set of recommendations for voluntary disclosure that aims to balance the needs of data users with the challenges faced by preparers. The report provides the overarching core recommendations with supporting information on climate-related risks, opportunities, financial impacts, and scenario analysis.
Further information on TCFD can be found in CDP's technical note on the TCFD's recommendations.

Industry collaboration

(C12.5) Indicate the collaborative frameworks, initiatives and/or commitments related to environmental issues for which you are a signatory/member.

Change from last year

New question for all sectors except FS

Rationale

By becoming a signatory of environmental collaborative industry initiatives, companies contribute to the development of environmental disclosure frameworks, metrics and commitments that will help meet the goals of the Paris agreement. Supporting environmental industry initiatives sends a signal to investors about the company’s commitment to taking steps to align its business to a 1.5°C world.

Ambition: Companies sign up to transition-related collaborative initiatives to signal to investors their commitment to aligning with a 1.5°C world.

Connection to other frameworks

NZAM (FS only)

General commitment

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Environmental collaborative framework, initiative and/or commitment	Describe your organization’s role within each framework, initiative and/or commitment*
Select all that apply: [dropdown list below]	Text field [maximum 5,000 characters]

Environmental collaborative framework, initiative and/or commitment options (column 1)

We are not a signatory/member of any collaborative framework, initiative and/or commitment related to environmental issues
Alliance for Climate Action (ACA)
Alliance for Water Stewardship (AWS) [FS Only]
Asia Investor Group on Climate Change (AIGCC)
Asia Sustainable Finance Initiative (ASFI) [FS Only]
Banking Environment Initiative [FS Only]
Business Ambition for 1.5C
Business Declares
CDP Signatory [FS only]
CBN Expert SME Community
Ceres Valuing Water Initiative [FS only]
Cerrado Manifesto [FS only]
CEO Water Mandate [FS only]
Certified B Corporation
Chambers Climate Coalition
Climate Action 100+
Climate Bonds Initiative Partner Programme [FS only]
Climate Disclosure Standards Board (CDSB)
ClimateWise Principles
Collective Commitment of Climate Action
European Climate Pact
Equator Principles [FS only]
Exponential Roadmap Initiative
Fashion Charter for Climate Action
Forest Stewardship Council (FSC) [FS only]
Future Net Zero with CBN
G7 Investors Global Initiative [FS only]
Glasgow Financial Alliance for Net Zero (GFANZ) [FS only]
Global Alliance for Banking on Values (GABV) [FS only]
Global e-Sustainability Initiative
Global Reporting Initiative (GRI) Community Member
Global Roundtable for Sustainable Beef (GRSB) [FS only]
Health Care Without Harm
IIF Forum on Implementation of TCFD Recommendations
Institutional Investors Group on Climate Change (IIGCC) [FS only]

International Corporate Governance Network (ICGN)
International Sustainability & Carbon Certification (ISCC)
International Wineries for Climate Action
Investor Group on Climate Change (IGCC) [FS only]
Investor Network on Climate Risk (INCR) [FS only]
Japan Climate Leaders’ Partnership (JCLP)
Mission Possible Partnership
Montreal Pledge [FS only]
Natural Capital Finance Alliance [FS only]
Net Zero Banking Alliance [FS only]
Net Zero Insurance Alliance [FS only]
Net Zero Asset Managers initiative [FS only]
Net Zero Asset Owner Alliance [FS only]
Net Zero Financial Service Providers Alliance [FS only]
Net Zero Investment Consultants Initiative [FS only]
New York Declaration on Forests [FS only]
Paris Agreement Capital Transition Assessment (PACTA) [FS only]
Paris Aligned Investment Initiative [FS only]
Partnership for Biodiversity Accounting Financials (PBAF) [FS only]
Partnership for Carbon Accounting Financials (PCAF) [FS only]
Planet Mark
Pledge to Net Zero
PRI Investor Working Group on Sustainable Palm Oil [FS only]
Principle for Responsible Investment (PRI) [FS only]
Programme for the Endorsement of Forest Certification (PEFC) [FS only]
Positive Impact Initiative
RE100
Race to Zero Campaign
Roundtable on Responsible Soy (RTRS) [FS only]
Roundtable on Sustainable Palm Oil (RSPO) [FS only]

Science Based Targets Network (SBTN)
Science-Based Targets Initiative for Financial Institutions (SBTi-FI) [FS only]
SME Climate Hub
Soft Commodities Compact [FS only]
Sports for Climate Action
Sustainable Agriculture Initiative (SAI)
Task Force on Climate-related Financial Disclosures (TCFD)
Task Force on Nature-related Financial Disclosures (TNFD)
The B Team
The Climate Pledge
The Investor Agenda [FS only]
Transition Pathway Initiative
The Water Council [FS only]
Tropical Forest Alliance 2020 [FS only]
UN Global Compact
UNEP FI [FS only]
UNEP FI Portfolio Decarbonization Coalition
UNEP FI Principles for Responsible Banking [FS only]
UNEP FI Principles for Sustainable Insurance [FS only]
UNEP FI TCFD Pilot [FS only]
We Are Still In
We Mean Business
World Business Council for Sustainable Development (WBCSD)
Other, please specify

Requested content

General

This question asks about your involvement and role in wider environmental collaborative industry initiatives.
The option “We are not a signatory/member of any collaborative framework, initiative and/or commitment related to environmental issues” should only be selected on its own.

Environmental collaborative framework, initiative and/or commitment (column 1)

If you select ‘Race to Zero Campaign’, you must also select the individual partner initiatives under the Race to Zero umbrella you are affiliated with.

Describe your organization’s role within each framework, initiative and/or commitment (column 2)

This column appears if any option other than “We are not a signatory/member of any collaborative framework, initiative and/or commitment related to environmental issues” is selected in column 1.

C13 Module Dependencies

Module C13 only applies to organizations with activities in the following sectors:

Agricultural commodities
Food, beverage & tobacco
Paper & forestry

C14 Portfolio Impact

Module Overview

This module provides the opportunity to disclose the impacts your financial portfolio(s) has on the climate, and to break down your portfolio emissions and/or other carbon footprinting and exposure metrics by asset class, industry, country/region and/or scope.

This module also requests data on portfolio alignment to a 1.5-degree world.

Key changes

New question:
- [Financial services only] C-FS14.1c – requests portfolio emissions data for previous reporting years.

Modified question:
- [Financial services only] C-FS14.0 – has a new column for providing details about the calculation of carbon-related assets, and has increased digit limits for revenue related columns.
- [Financial services only] C-FS14.3 – has a new column for your organization to explain the actions taken to align your portfolio with a 1.5-degree world.
- [Financial services only] C-FS14.3a – has a new drop-down option for companies to indicate if they do not have commercial/corporate/SME clients to report on in this question.

Click here for a list of all changes made this year.

Pathway diagram - questions

This diagram shows the questions contained in module C14. To access question-level guidance, use the menu on the left to navigate to the question.

(C-FS14.0) For each portfolio activity, state the value of your financing and insurance of carbon-related assets in the reporting year.

Question Dependency

Rows in this question will be presented according to the organizational activities reported in C-FS0.7.

Change from last year

Modified question

Rationale

The majority of financial institutions’ emissions are driven by the activities they finance in the wider economy (financed emissions) and their exposure to climate-related risks and opportunities are determined by their portfolios; that is by their lending, investment and insurance underwriting activities. Therefore, investors and data users want to understand the concentrations of carbon-related assets in financial institutions’ portfolio. Without an analysis of how financial portfolios impact the climate, organizations may not be able to identify their own exposure to climate-related risks, and they may be unprepared for future uncertainties and liabilities related to climate change.

Ambition: Financial services companies measure their financing and insurance of carbon-related assets to understand the impact on the climate.

Connection to other frameworks

TCFD

Metrics & Targets recommended b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio activity	Are you able to report a value for the carbon-related assets?	Value of the carbon-related assets in your portfolio (unit currency - as specified in C0.4)*	New loans advanced in reporting year (unit currency - as specified in C0.4)*	Total premium written in reporting year (unit currency - as specified in C0.4)*	Percentage of portfolio value comprised of carbon-related assets in reporting year*	Primary reason for not providing a value for the financing and/or insurance to carbon-related assets*	Please explain why you are not providing a value for the financing and/or insurance to carbon-related assets and your plans for the future*	Details of calculation*
Lending to all carbon-related assets*	Select from: Yes No, but we plan to assess our portfolio's exposure in the next two years No, and we do not plan to assess our portfolio's exposure in the next two years	Numeric field [enter a number from 0-999,999,999,999,999 using a maximum of 3 decimal places and no commas]	Numeric field [enter a number from 0-999,999,999,999,999 using a maximum of 3 decimal places and no commas]	Numeric field [enter a number from 0-999,999,999,999,999 using a maximum of 3 decimal places and no commas]	Percentage field [enter a percentage from 0-100]	Select from: Important, but not immediate priority Judged to be unimportant, explanation provided Lack of internal resources No instruction from management No relevant exposure in portfolio Other, please specify	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]
Lending to coal*
Lending to oil and gas*
Investing in all carbon-related assets (Asset manager)*
Investing in coal (Asset manager)*
Investing in oil and gas (Asset manager)*
Investing all carbon-related assets (Asset owner)*
Investing in coal (Asset owner)*
Investing in oil and gas (Asset owner)*
Insuring all carbon-related assets*
Insuring coal*
Insuring oil and gas*

Requested content

General 

For details on methodologies to calculate your portfolio’s value (exposure) please consult section “Exposure to carbon-related assets” in the CDP Technical Note on Portfolio Impact Metrics for Financial Services Sector Companies.

Portfolio activity (column 1)

The options which appear are driven by the activities you selected in C-FS0.7.

Value of the carbon-related assets in your portfolio (unit currency – as specified in C0.4) (column 3) 

This column only appears if “Yes” is selected in column 2.
For lending and investing rows, report the total value of loans/investments outstanding in your portfolio at the end of the reporting year. For insurance rows, report the total sums insured in your portfolio for the reporting year.

New loans advanced in reporting year (unit currency – as specified in C0.4) (column 4) 

This column only appears for “Lending...” rows where “Yes” is selected in column 2.
The refinancing of an existing loan is considered a new loan.
Include new loans advanced even if the loan has subsequently been removed from your portfolio. This module is asking about portfolio impact – impact on climate cannot be transferred in the same way that risk to your portfolio can.

Total premium written in reporting year (unit currency – as specified in C0.4) (column 5) 

This column only appears for “Insuring…” rows where “Yes” is selected in column 2.
Report the Gross Written Premium (GWP) including direct and assumed that is written (before deductions for reinsurance and ceding commission) in the reporting year.

Percentage of portfolio value comprised of carbon-related assets in reporting year (column 6) 

Provide a percentage value for the amount reported in column 3 in relation to your total portfolio value.

Primary reason for not providing a value for the financing and/or insurance to carbon-related assets (column 7)

This column only appears if any “No” option is selected in column 2.
If, for example, your organization provides strictly retail banking only (no commercial, institutional or business lending), select “Other, please specify”.

Please explain why you are not providing a value for the financing and/or insurance to carbon-related assets and your plans for the future (column 8)

This column only appears if any “No” option is selected in column 2.
Ensure your explanation is company-specific and provides details as to why you do not provide a value for the financing and/or insurance to carbon-related assets.
For example, if your organization provides strictly retail banking only (no commercial, institutional or business lending), provide details here.
If you plan to assess your exposure within the next 2 years provide details of how you plan to do this. 
If you wish to provide any additional context to your disclosure, including any plans or timelines your organization has for completely phasing out financing and/or insurance of carbon-related assets, you can also do that in this column.

Details of calculation (column 9)

This column only appears if "Yes" is selected in column 2.
Describe which industries you include in the calculation of the value you are reporting for the carbon-related assets.
Provide any other relevant details of your calculation.

Explanation of terms

Value of carbon-related assets: The amount of carbon-related assets in the portfolio expressed in unit currency – as specified in C0.4.

- Carbon-related assets: The TCFD Annex suggests defining carbon-related assets as those assets tied to the four non-financial groups (1. Energy, 2. Transportation, 3. Materials and Buildings, and 4. Agriculture, Food, and Forest Products) identified by the TCFD.

- Coal includes coal mining, thermal coal production and thermal energy generation from coal. It can be linked to any of the above mentioned non-financial groups. For example, it can be linked to the ‘energy’ group through energy production or the ‘Materials and buildings’ group through coal mining.

- There may be industries or sub-industries that are appropriate to exclude, such as water utilities and independent power and renewable electricity producer industries.

(C-FS14.1) Does your organization measure its portfolio impact on the climate?

Question dependencies

Rows in this question will be presented according to the organizational activities reported in C-FS0.7.

Change from last year

No change

Rationale

The majority of emissions associated with the financial services sector occur in the investment chain - within the financial products and services they provide and/or in their investments (financed emissions). Organizations in this sector may measure their portfolio impact using specific metrics to understand how concentrations of climate-related risks and opportunities potentially impact their financial activities and the impact their financial activities have on the climate. This question informs investors and other data users about the extent to which you understand your portfolio’s climate-related impact.

Connection to other frameworks

TCFD

Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

NZAM (FS Only)

Commitment 2

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Portfolio	We conduct analysis on our portfolio's impact on the climate.	Disclosure metric*	Please explain why you do not measure the impact of your portfolio on the climate*
Banking (Bank)*	Select from: Yes No, but we plan to do so in the next two years No, and we do not plan to do so in the next two years	Select all that apply: Portfolio emissions Other carbon footprinting and/or exposure metrics (as defined by TCFD) Other, please specify	Text field [maximum 2,400 characters]
Investing (Asset manager)*
Investing (Asset owner)*
Insurance underwriting (Insurance company)*

Requested content

General

This question is seeking to understand whether you evaluate your organization’s portfolio impact or financed emissions (Portfolio emissions or other metric). Portfolio impact can be expressed in a number of carbon footprinting and exposure metrics, as identified by the TCFD:

- Total carbon absolute emissions (GHG emissions accounting)
- Weighted average carbon intensity
- Portfolio carbon footprint
- Carbon intensity
- Exposure to carbon-related assets

For details on methodologies to calculate carbon footprinting and exposure metrics please consult the CDP Technical Note on Portfolio Impact Metrics for Financial Services Sector Companies.

Portfolio (column 1)

The options which appear are driven by the activities you selected in C-FS0.7.
You are requested to complete all rows in this table.

We conduct analysis on our portfolio's impact on the climate (column 2)

Select “Yes” if you measure how your portfolio impacts the climate. In subsequent questions you can provide more details and disclose the portfolio emissions or other metrics, as listed above.

Disclosure metric (column 3)

This column only appears if "Yes" is selected in column 2
Indicate which metric(s) you are using to measure the impact of your portfolio on the climate

Please explain why you do not measure the impact of your portfolio on the climate (column 4)

This column only appears if any "No" option is selected in column 2
Ensure your explanation is company-specific and provides details as to why you do not conduct analysis to understand how your portfolio impacts the climate. You may also include details on whether you are exploring ways to measure your portfolio impact in the future and what metrics you are looking at using.

Explanation of terms

Other carbon footprinting and/or exposure metrics: Metrics organizations in the financial sector can use to understand how their financial portfolio impacts the climate, as identified by the TCFD and to be used alongside portfolio emission metrics:

- Carbon intensity: Volume of carbon emissions per million dollars of revenue (carbon efficiency of a portfolio), expressed in tons CO2e/Million revenue (in unit currency).
- Weighted average carbon intensity: Portfolio’s exposure to carbon-intensive companies, expressed in tons CO2e/Million revenue. This is the metric recommended by the TCFD.
- Portfolio carbon footprint: Total carbon emissions for a portfolio normalized by the market value of the portfolio, expressed in tons CO2e/Million invested.

Portfolio emissions: The absolute greenhouse gas emissions associated with a portfolio, expressed in tons CO2e. For financial institutions, the indirect emissions caused by their financing activities are relevant and their emissions inventory would be incomplete without accounting for them. The GHG Protocol classifies these emissions in Scope 3 Category 15 Investments. They are also known as portfolio emissions or financed emissions. Put simply, they are emissions that occur at sources owned or controlled by other companies, but which are made possible because those companies are financed by the investment and lending (and insurance underwriting) of financial institutions; therefore, they can be thought of as caused indirectly by the financial institution and should be included in the financial institutions Scope 3 inventory.
Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financial activities and insurance policies that you offer.

- Banking portfolio: For banking, this is the entire collection of products and loans held on your balance sheet for which you own the receivable stream.
- Investing (Asset owner) portfolio: For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company.
- Investing (Asset manager) portfolio: For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. Asset managers should consider discretionary investments, those where the company has discretion over investment decision.
- Insurance portfolio: For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(C-FS14.1a) Provide details of your organization's portfolio emissions in the reporting year.

Question dependencies

This question only appears if you select "Yes" in column 2 and "Portfolio emissions" in column 3 of question C-FS14.1.

Change from last year

No change

Rationale

GHG emissions accounting is one of the primary metrics organizations in the financial sector can use to understand how their portfolio impacts the climate. In addition to highlighting risks and opportunities, portfolio emissions disclosure is a pre-requisite for financial institutions to measure improvements in the climate performance of their portfolios, and measure progress towards the net zero commitments that are increasingly being made.

IMPORTANT NOTE:

This question asks you to disclose your portfolio emissions (also known as Scope 3 Category 15 “Investments” total absolute emissions). For organizations in the financial sector, Scope 3 Category 15 “Investments” total absolute emissions has been pulled out of question C6.5 as the majority of emissions occur in the investment chain, in relation to financial products and services and/or investments. Portfolio emissions (or Scope 3 Category 15 “Investments” total absolute emissions as defined by the GHG Protocol) is the most relevant category to financial services organizations.

In this question, organizations in the financial sector are only requested to disclose their Scope 3 Category 15 “Investments” total absolute emissions, Categories 1-14 and if applicable Categories 16 and 17 should be disclosed in C6.5.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

TCFD

Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

S&P Global Corporate Sustainability Assessment

Scope 3 Financed Absolute Emissions

NZAM (FS only)

Commitment 2

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Portfolio	Portfolio emissions (metric unit tons CO₂e) in the reporting year	Portfolio coverage	Percentage calculated using data obtained from clients/investees	Emissions calculation methodology	Please explain the details and assumptions used in your calculation
Banking (Bank)*	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Percentage field [enter a percentage from 0-100]	Percentage field [enter a percentage from 0-100]	Select from: The Global GHG Accounting and Reporting Standard for the Financial Industry Other, please specify	Text field [maximum 2,500 characters]
Investing (Asset manager)*
Investing (Asset owner)*
Insurance underwriting (Insurance)*

Requested content

General

Metrics other than absolute emissions (in tCO₂e) should not be reported in this question, and should be reported in C-FS14.1b.
For example, weighted average carbon intensities (WACI) should be reported in C-FS14.1b.

Portfolio (column 1)

The options which appear are driven by the activities you selected in C-FS0.7.
You are requested to complete all rows in this table.

Portfolio emissions (metric unit tons CO₂e) in the reporting year (column 2)

Enter the emissions in metric unit tons CO₂e, entering numbers only up to 99,999,999,999 without commas and up to three decimal places.
Negative numbers are not allowed as reporting needs to be gross, not net figures. Emission figures should be for the reporting year only.
Entering 0 implies that you have measured and calculated emissions from this source and they are equal to zero.

Portfolio coverage (column 3)

Enter the percentage of your total portfolio that has been measured based on the portfolio value. Coverage by portfolio value can be based on either total or outstanding commitments, premiums, committed capital, and/or other.

Percentage calculated using data obtained from clients/investees (column 4)

This column is optional.
Such data obtained from value chain partners (clients or investees) may take the form of primary activity data or emissions data calculated by value chain partners. More information on this can be found in Chapter 7, Collecting Data, of the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Please explain the details and assumptions used in your calculation (column 6)

The portfolios and asset classes included in the calculation, explaining why portfolios or asset classes have been excluded from the calculation;
The Scopes considered when measuring emissions associated with assets in your portfolio;
The approach taken to attributing emissions associated with assets in your portfolio;
The sources of data if primary data was used in calculating portfolio emissions;
The approach taken to modelling or estimating emissions when primary data was not used; and,
Any assumptions used in the calculation.
See CDP Technical Note: Portfolio Impact Metrics for Financial Services Sector Companies

Explanation of terms

Portfolio emissions: The absolute greenhouse gas emissions associated with a portfolio, expressed in tons CO2e. For financial institutions, the indirect emissions caused by their financing activities are relevant and their emissions inventory would be incomplete without accounting for them. The GHG Protocol classifies these emissions in Scope 3 Category 15 Investments. They are also known as portfolio emissions or financed emissions. Put simply, they are emissions that occur at sources owned or controlled by other companies, but which are made possible because those companies are financed by the lending and investment (and insurance underwriting) of financial institutions; therefore, they can be thought of as caused indirectly by the financial institution and should be included in the financial institutions Scope 3 inventory.

Additional information

Relevance criteria for portfolio or Scope 3 emissions sources: Companies should not exclude any activity that would compromise the relevance of the reported inventory. The table below from the Corporate Value Chain (Scope 3) Accounting and Reporting Standard provides a list of criteria for determining relevance.

Scope 3 screening tool: To help facilitate the adoption of the Scope 3 Standard and assist companies in determining the relevance of Scope 3 emissions sources, the GHG Protocol, in collaboration with Quantis, have released a free Scope 3 screening tool. This tool asks a number of relatively simple questions to approximate your Scope 3 inventory, and can be used by companies of all sizes and all sectors. Please note that this tool is not a data collection tool and should only be used to make a first approximation of your Scope 3 emissions. Having used the tool to help determine the relevance of Scope 3 categories, companies should then develop more accurate approaches for categories shown to be a relevant source of emissions.

(C-FS14.1b) Provide details of the other carbon footprinting and/or exposure metrics used to track the impact of your portfolio on the climate.

Question dependencies

This question only appears if you select “Yes” in column 2 and "Other carbon footprinting and/or exposure metrics (as defined by TCFD)" or “Other, please specify” in column 3 in question C-FS14.1.

Change from last year

Minor change

Rationale

In addition to disclosing a Scope 3 category 15 total emissions figure in C-FS14.1a and your portfolio's exposure to carbon-related assets in C-FS14.0, disclose any other common carbon footprinting and/or exposure metrics you may have calculated for your portfolio.

This question acknowledges that in addition to GHG emissions accounting, there are a number of other metrics organizations in the financial sector can use to understand how their portfolio impacts the climate. As currently there is no single, globally approved methodology or metric, this question allows you to express your portfolio impact using other metrics identified by the TCFD.

Ambition: Financial services companies measure and disclose the impact of their portfolios on the climate.

Connection to other frameworks

TCFD

Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

S&P Global Corporate Sustainability Assessment

Scope 3 Financed Emission Intensity

NZAM (FS only)

Commitment 2

Response options

Please complete the following table. You are able to add rows by using the "Add Row" button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio

Portfolio metric

Metric value in the reporting year

Portfolio coverage

Percentage calculated using data obtained from clients/investees

Calculation methodology

Select from:

Banking (Bank)*
Investing (asset manager)*
Investing (asset owner)*
Insurance underwriting (insurance company)*

Select from:

Weighted average carbon intensity (tCO₂e/Million revenue)
Portfolio carbon footprint (tCO₂e/Million invested)
Carbon intensity (tCO₂e/Million revenue)
Avoided emissions financed (tCO₂e)
Carbon removals financed (tCO₂e)
Insurance-associated emissions (tCO₂e)*
Other, please specify

Numeric field [enter a range of 0-999,999,999 using a maximum of 3 decimal places and no commas]

Percentage field [enter a percentage from 0-100]

Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]

Text field [maximum of 3,000 characters]

[Add Row]

Requested content

Portfolio (column 1)

You are requested to complete all rows in this table.
Weighted average carbon intensities (WACI) should be reported here.
The options presented in the table are driven by the portfolios you select as having any “Other” metric in column 3 in C-FS14.1.

Portfolio metric (column 2)

Select the carbon footprinting and/or exposure metric(s) and the corresponding metric unit that you use to track and report your portfolio impact, as defined in the TCFD Supplemental Guidance for the Financial Sector and/or the Global GHG Accounting and Reporting Standard.
Option “Insurance-associated emissions” only appears if “Insurance underwriting (insurance company)” is selected in column 1 “Portfolio”.
If you use any alternative climate-related portfolio impact metric not included in the options, select “Other, please specify” and give the metric a label. If you select, “Other, please specify”, explain your approach and outline the calculation methodology in column 6 "Calculation methodology".

Portfolio coverage (column 4)

Select the percentage of your total portfolio assessed based on the portfolio value. Coverage by portfolio value can be based on either total or outstanding commitments, premiums, committed capital and/or other. Please define this in column 6 “Calculation methodology”.

Percentage of emissions calculated using data obtained from clients/investees (column 5)

Such data obtained from value chain partners (clients or investees) may take the form of primary activity data or emissions data calculated by value chain partners. More information on this can be found in Chapter 7, Collecting Data, of the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Calculation methodology (column 6)

Your response should include a short description of the types and sources of data used to calculate emissions (e.g. activity data, emission factors or GWP values), and a short description of the methodologies, assumptions and allocation methods used to calculate emissions.
For details on methodologies to calculate carbon footprinting and exposure metrics please consult TCFD’s Supplemental Guidance for the Financial Sector and/or the Global GHG Accounting and Reporting Standard. Explain why the metric was chosen and how the coverage has been determined and whether you consider it to be substantive to your organization.
If you wish to provide any additional context to your calculation, including any exclusions within your portfolio, you can also do that in this column.

Explanation of terms

Other carbon footprinting and/or exposure metrics: Metrics organizations in the financial sector can use to understand how their financial portfolio impacts the climate, as identified by the TCFD and to be used alongside portfolio emission metrics.

Carbon intensity: Volume of carbon emissions per million dollars of revenue (carbon efficiency of a portfolio), expressed in tons CO₂e/$M revenue.
Weighted average carbon intensity: Portfolio’s exposure to carbon-intensive companies, expressed in tons CO₂e/$M revenue. This is the metric recommended by the TCFD.
(Portfolio) carbon footprint: Total carbon emissions for a portfolio normalized by the market value of the portfolio, expressed in tons CO₂e/$M invested.
Exposure to carbon-related assets: The amount or percentage of carbon-related assets in the portfolio expressed in $M or percentage of the current portfolio value.

- Carbon-related assets: the TCFD suggest defining carbon-related assets as those assets tied to the energy and utilities sectors under the Global Industry Classification Standard (GICS), excluding water utilities and independent power and renewable electricity producer industries.

Avoided emissions: the reduction in emissions achieved by a project compared to a baseline of what would have been emitted in the absence of the project. Project financing for renewable energy projects such as wind or solar energy generation are common, and achieve avoided emissions compared to energy generation using fossil fuels.
Carbon removals: CO₂ sequestered or removed from the atmosphere and stored, preventing its harmful global warming effect.
Insurance-associated emissions: Absolute insurance-associated emissions (tCO2e) are a supplementary accounting note to the GHG Protocol Scope 3 Category 15 ‘Investments’. The Partnership for Carbon Accounting Financials (PCAF) describes insurance associated emissions here.

(C-FS14.1c) Disclose or restate your portfolio emissions for previous years.

Question dependencies

This question only appears if you select any number of past reporting years in column 6 “Select the number of past reporting years you will be providing Scope 3 emissions data for” in C0.2 and in any row of C-FS14.1 you select both "Yes" in column 2 and "Portfolio emissions" in column 3.

Change from last year

New Question

Rationale

A prerequisite for a meaningful emissions data comparison is a consistent data set over time. This question enables companies to restate portfolio emissions data previously supplied to CDP, for example to ensure that their historical data reflects their current organizational boundary. It also enables first-time responders to provide portfolio emissions data for the five years prior to the reporting year.

Ambition: Financial services companies disclose portfolio emissions from previous years to enable tracking over time and to reflect changes that would otherwise compromise the consistency and relevance of the reported portfolio emissions information.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

NZAM (FS Only)

Commitment 2

Year	Start date	End date	Portfolio emissions (metric unit tons CO₂e) in the reporting year	Portfolio coverage	Percentage calculated using data obtained from clients/investees	Emissions calculation methodology	Please explain the details and assumptions used in your calculation
0	1	2	3	4	5	6	7
Past year 1 for Banking (Bank) [Only appears if “1 year” is selected in column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Banking (Bank)” in column 3 of C-FS14.1]	[DD/MM/YYYY]	[DD/MM/YYYY]	Numeric field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]	Percentage field [enter a percentage from 0-100]	Percentage field [enter a percentage from 0-100]	Select from: The Global GHG Accounting and Reporting Standard for the Financial Industry Other, please specify	Text field [maximum 2,500 characters]
Past year 1 for Investing (Asset manager) [Only appears if “1 year” is selected in column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Investing (Asset manager)” in column 3 of C-FS14.1]
Past year 1 for Investing (Asset owner) [Only appears if “1 year” is selected in column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Investing (Asset owner)” in column 3 of C-FS14.1]
Past year 1 for Insurance underwriting (Insurance company) [Only appears if “1 year” is selected in column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Insurance underwriting (Insurance company)” in column 3 of C-FS14.1]
[Further rows for past years 2 to 4]
Past year 5 for Banking (Bank) [Only appears if “5 years” is selected column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Banking (Bank)” in column 3 of C-FS14.1]
Past year 5 for Investing (Asset manager) [Only appears if “5 years” is selected in column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Investing (Asset manager)” in column 3 of C-FS14.1]
Past year 5 for Investing (Asset owner) [Only appears if “5 years” is selected in column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Investing (Asset owner)” in column 3 of C-FS14.1]
Past year 5 for Insurance underwriting (Insurance company) [Only appears if “5 years” is selected in column 6 of C0.2 AND “Yes" in column 2 and "Portfolio emissions" of row “Insurance underwriting (Insurance company)” in column 3 of C-FS14.1]

Requested content

General

Rows appear depending on your selection in column 6 of C0.2 and in columns 2 and 3 of C-FS14.1.
Entering zero suggests that you have measured your emissions and that they are equal to zero.
Ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
Emissions estimates are acceptable, as long as there is transparency with regard to the estimation approach (what is estimated and how) and the data used for the analysis is adequate to support the objectives of the inventory.

Note for first time responders:

If you are a first-time responder, please provide your portfolio emissions data for the five years prior to the current reporting year.
Input portfolio emissions data for the year prior to the current reporting year in the first row and work backwards.

Note for restatements:

If you have chosen to restate your organization's gross global Scope 3 emissions data previously supplied to CDP by adding additional reporting years to C0.2, you may restate your Scope 3 Category 15 “Investments” emissions, or portfolio emissions, here.
Reporting recalculated figures for these years is optional.
Restated portfolio emissions data needs to be entered in reverse order i.e. you should work backwards from the most recent reporting year.

Portfolio emissions (metric unit tons CO₂e) in the reporting year (column 3)

Enter the emissions in metric unit tons CO₂e, entering numbers only up to 99,999,999,999 without commas and up to three decimal places.
Negative numbers are not allowed as reporting needs to be gross, not net figures. Emission figures should be for the reporting year only.
Entering 0 implies that you have measured and calculated emissions from this source and they are equal to zero.

Portfolio coverage (column 4)

Enter the percentage of your total portfolio that has been measured based on the portfolio value. Coverage by portfolio value can be based on either total or outstanding commitments, premiums, committed capital, and/or other.

Percentage calculated using data obtained from clients/investees (column 5)

This column is optional.
Such data obtained from value chain partners (clients or investees) may take the form of primary activity data or emissions data calculated by value chain partners. More information on this can be found in Chapter 7, Collecting Data, of the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Emissions calculation methodology (column 6)

If you have used a methodology other than the “The Global GHG Accounting and Reporting Standard for the Financial Industry”, select “Other, please specify” to provide the methodology used.

Please explain the details and assumptions used in your calculation (column 7)

The portfolios and asset classes included in the calculation, explaining why portfolios or asset classes have been excluded from the calculation;
The Scopes considered when measuring emissions associated with assets in your portfolio;
The approach taken to attributing emissions associated with assets in your portfolio;
The sources of data if primary data was used in calculating portfolio emissions;
The approach taken to modelling or estimating emissions when primary data was not used; and,
Any assumptions used in the calculation.
See the CDP Technical Note: Portfolio Impact Metrics for Financial Services Sector Companies for further information.

Explanation of terms

Portfolio emissions: The absolute greenhouse gas emissions associated with a portfolio, expressed in tons CO₂e. For financial institutions, the indirect emissions caused by their financing activities are relevant and their emissions inventory would be incomplete without accounting for them. The GHG Protocol classifies these emissions in Scope 3 Category 15 Investments. They are also known as portfolio emissions or financed emissions. Put simply, they are emissions that occur at sources owned or controlled by other companies, but which are made possible because those companies are financed by the lending and investment (and insurance underwriting) of financial institutions; therefore, they can be thought of as caused indirectly by the financial institution and should be included in the financial institutions Scope 3 inventory.

Additional information

Relevance criteria for portfolio or Scope 3 emissions sources: Companies should not exclude any activity that would compromise the relevance of the reported inventory. The table below from the Corporate Value Chain (Scope 3) Accounting and Reporting Standard provides a list of criteria for determining relevance.

Scope 3 screening tool: To help facilitate the adoption of the Scope 3 Standard and assist companies in determining the relevance of Scope 3 emissions sources, the GHG Protocol, in collaboration with Quantis, have released a free Scope 3 screening tool. This tool asks a number of relatively simple questions to approximate your Scope 3 inventory, and can be used by companies of all sizes and all sectors. Please note that this tool is not a data collection tool and should only be used to make a first approximation of your Scope 3 emissions. Having used the tool to help determine the relevance of Scope 3 categories, companies should then develop more accurate approaches for categories shown to be a relevant source of emissions.

Portfolio Impact breakdown

(C-FS14.2) Are you able to provide a breakdown of your organization's portfolio impact?

Question dependencies

This question only appears if you select "Yes" in column 2 of any row in C-FS14.1.

Change from last year

Minor change

Rationale

By breaking down emissions and other carbon footprinting and/or exposure metrics by asset class, industry, country/area/regional level and scope, information and data can be made available to investors and other stakeholders to help guide the development of portfolio footprinting methodologies, global decarbonization efforts and regional legislation.

Response options

Select all that apply from the following options:

Portfolio breakdown

Please explain why you do not provide a breakdown of your portfolio impact*

Select all that apply:

Yes, by asset class
Yes, by industry
Yes, by country/area/region
Yes, by scope
None of the above, but we plan to do this in the next two years
None of the above and we don't plan to do this

Text field [maximum 2,400 characters]

Requested content

General

Select all breakdowns that are relevant to your organization.

Please explain why you do not provide a breakdown of your portfolio impact (column 2)

This column only appears if you select any “None…” option in column 1.
If you selected “None of the above, but we plan to do this in the next two years” explain why you don’t do this yet, how you plan to do this and what actions you are currently taking to achieve this.
If you selected “None of the above and we don’t plan to do this”, explain why you don’t do this and why you don’t plan on doing so in the future.

Explanation of terms

Portfolio impact: The primary types of metrics organizations in the financial sector can use to understand how their financing portfolio (banking, investing, insurance underwriting) impacts the climate include GHG emissions accounting (GHG Protocol Scope 3 Category 15 “Investments”) and other carbon footprinting and/or exposure metrics as identified by the TCFD.
By asset class: Most existing methodologies to quantify portfolio impact are determined and calculated on an asset class level. Breaking down emissions and other carbon footprinting and/or exposure metrics by asset class can give an indication of the relative GHG emissions performance and/or exposure to climate-related risks of your company’s assets. When reported over time, your organization and investors will be able to review improvements or declines in asset performance with considerations for your portfolio’s impact on the climate. This breakdown can be used alongside the financial performance of a company’s assets to understand the financial exposure and illustrate the scale of contributions to climate change. Because methodologies are more robust for some asset classes than others, providing this level of data will enable data users to identify gaps in the methodologies and lead to the expansion of coverage.
By industry: As sectoral decarbonization is at the center of some carbon footprinting methodologies, breaking down emissions, other carbon footprinting and/or exposure metrics on an industry level is key to identify concentrations of carbon-related assets in the financial sector and the financial system’s exposure to climate-related risks. Reporting at this level can provide a useful indicator for making comparisons between your financial activities in different industries. In some cases, particular industries may come within the scope of particular legislation, therefore, providing industry-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this industry.
By country/area/region: Breaking down emissions and other carbon footprinting and/or exposure metrics to the country/area/regional level can provide a useful indicator for making comparisons between your financial activities in different countries/areas and regions. In some cases, particular countries/areas/regions may fall within the scope of particular legislation, therefore, providing country/area/region-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this country/area/region.
By Scope: Current methodologies for calculating portfolio emissions can lead to double counting across scopes. For example, what are counted as Scope 1 emissions for an electricity generation company could be the same emissions for a retailer but counted as Scope 2. There is currently no way for financial institutions to overcome this in their portfolio emission calculations, but this question allows you to report emissions by scope separately. Breaking down absolute emissions of their portfolio by scope can help financial institution identify emissions throughout the value chain of companies in their portfolio. PCAF recommends that emissions associated with loans and investments should be reported separately by Scope if it serves financial institutions’ business goals (e.g. Scope 1 emissions of investees or Scope 2 emissions of investees).

(C-FS14.2a) Break down your organization's portfolio impact by asset class.

Question dependencies

This question only appears if you select “Yes, by asset class” in C-FS14.2.

Change from last year

Minor change

Rationale

Most existing methodologies to quantify Scope 3 portfolio impact are determined and calculated on an asset class level. Breaking down emissions and other carbon footprinting and/or exposure metrics by asset class can give an indication of the relative GHG emissions performance and/or exposure to climate-related risks of your company’s assets. When reported over time, your organization and investors will be able to review improvements or declines in asset performance with considerations for your portfolio’s impact on the climate. This breakdown can be used alongside the financial performance of a company’s assets to understand the financial exposure and illustrate the scale of contributions to climate change. Because methodologies are more robust for some asset classes than others, providing this level of data will enable data users to identify gaps in the methodologies and lead to the expansion of coverage.

Response options

Please complete the following table. You are able to add rows by using the "Add Row" button at the bottom of the table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Asset class*

Portfolio metric

Portfolio emissions or alternative metric

Select from:

Banking

Corporate loans
Retail loans
Corporate real estate
Retail mortgages
Trade finance
Asset finance
Project finance
Other, please specify

Investing

Corporate Bonds
Sovereign Bonds
Sub-sovereign Bonds
Other Fixed Income
Listed Equity
Private Equity
Real estate/Property
Infrastructure
Commodities
Forestry
Hedge funds
Mutual funds
Fund of funds
Derivatives
Other, please specify

Insurance

Property & Casualty
Construction & Engineering
Agribusiness
Motor
Marine
Life
Health
Other, please specify

Select from:

Absolute portfolio emissions (tCO2e)
Weighted average carbon intensity (tCO2e/Million revenue)
Portfolio carbon footprint (tCO2e/Million invested)
Carbon intensity (tCO2e/Million revenue)
Exposure to carbon-related assets (Million portfolio value)
Avoided emissions financed (tCO2e)
Carbon removals financed (tCO2e)
Other, please specify

Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

Asset class (column 1)

Select from the drop-down list the asset classes that you are able to disclose a figure for.
The options which appear are driven by the activities you selected in C-FS0.7.
Add a row for each asset class for which you can disclose a figure by using the "Add Row" button at the bottom of the table.
If there are other asset classes for which you are able to disclose a figure for but are not listed in the drop-down list, select “Other, please specify” and disclose the asset class.

Portfolio metric (column 2)

For details on methodologies to calculate portfolio metrics please consult the CDP Technical Note on Portfolio Impact Metrics for Financial Services Sector Companies.

Portfolio emissions or alternative metric (column 3)

If you are reporting absolute emissions or emissions intensity, use gross, not net figures.

Explanation of terms

Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.
Commodities: involves buying, selling, or trading a raw product, such as oil, gold, or coffee
Derivatives: refers to securities that derive their value from an underlying asset or benchmark.
Corporate bonds: A corporate bond is a fixed income security that is issued by a firm (see Fixed Income below).
Sovereign bonds: A sovereign bond is a fixed income security that is issued by a national government (see Fixed Income below).
Sub-sovereign bonds: A sub-sovereign bond is a fixed income security that is issued by a hierarchical tiers below the ultimate governing body of a nation, country, or territory, such as states, provinces, cities, or towns (see Fixed Income below).
Fixed Income: refers to a type of investment security that pay investors fixed interest or dividend payments until its maturity date.
Forestry: investment in forest lands, either directly (direct ownership of forest land) or indirectly (through e.g. a timber fund).
Fund of funds: investment fund that invests in other types of funds.
Hedge funds: alternative investments using pooled funds that employ different strategies to earn active returns, or alpha, for their investors.
Infrastructure: a form of “real assets,” which contain physical assets we see in everyday life like bridges, roads, highways, sewage systems, or energy.
Listed Equity: refers to shares of ownership issued by publicly-traded companies.
Mutual funds: investment using pooled funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Private Equity: alternative form of private financing in which funds and investors invest directly in companies.
Real estate/Property: refers to the purchase, purchase, ownership, management, rental and/or sale of real estate (e.g. land, buildings, infrastructure).
Agribusiness: insurance protection designed to protect businesses that earn all or most of their revenue from agriculture.
Construction & Engineering: insurance protection that provides financial compensation for covered losses to a building or structure.
Health: insurance that covers the whole or a part of the risk of a person incurring medical expenses.
Life: insurance which guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
Marine: insurance protection that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination.
Motor: insurance protection for cars, trucks, motorcycles, and other road vehicles.
Property & Casualty: insurance protection that provides either property protection coverage or liability coverage for property owners

(C-FS14.2b) Break down your organization's portfolio impact by industry.

Question dependencies

This question only appears if you select “Yes, by industry” in C-FS14.2.

Change from last year

No change

Rationale

As sectoral decarbonization is at the center of some carbon footprinting methodologies, breaking down emissions, other carbon footprinting and/or exposure metrics on an industry level is key to identify concentrations of carbon-related assets in the financial sector and the financial system’s exposure to climate-related risks. Reporting at this level can provide a useful indicator for making comparisons between your financial activities in different industries. In some cases, particular industries may come within the scope of particular legislation, therefore, providing industry-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this industry.

Response options

Please complete the following table. You can add rows by using the "Add Row" button at the bottom of the table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Portfolio*

Industry

Portfolio metric

Portfolio emissions or alternative metric

Select from:

Banking (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Select from:

Energy
Materials
Capital Goods
Commercial & Professional Services
Transportation
Automobiles & Components
Consumer Durables & Apparel
Consumer Services
Retailing
Food & Staples Retailing
Food, Beverage & Tobacco
Household & Personal Products
Health Care Equipment & Services
Pharmaceuticals, Biotechnology & Life Sciences
Banks
Diversified Financials
Insurance
Software & Services
Technology Hardware & Equipment
Semiconductors & Semiconductor Equipment
Telecommunication Services
Media & Entertainment
Utilities
Real Estate
Other, please specify

Select from:

Absolute portfolio emissions (tCO2e)
Weighted average carbon intensity (tCO2e/Million revenue)
Portfolio carbon footprint (tCO2e/Million invested)
Carbon intensity (tCO2e/Million revenue)
Exposure to carbon-related assets (Million portfolio value)
Avoided emissions financed (tCO2e)
Carbon removals financed (tCO2e)
Other, please specify

Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

Portfolio (column 1)

The options which appear are driven by the activities you selected in C-FS0.7.
Add a row for each portfolio

Industry (column 2)

Select from the drop-down list the industries that you are able to disclose a figure for, adding one row for each industry. 
You should match the industries reported here with those found in company filings and financial statements if such a calculation methodology exists. (The drop-down options available are based on the Global Industry Classification Standard).

Portfolio metric (column 3)

For details on methodologies to calculate portfolio metrics please consult the CDP Technical Note on Portfolio Impact Metrics for Financial Services Sector Companies.

Portfolio emissions or alternative metric (column 4)

If you are reporting absolute emissions or emissions intensity, use gross, not net figures.

Additional information

Definitions of the various industries as per the Global Industry Classification Standard are available here.

(C-FS14.2c) Break down your organization's portfolio impact by country/area/region.

Question dependencies

This question only appears if you select “Yes, by country/area/region” in C-FS14.2.

Change from last year

Minor change

Rationale

Breaking down emissions and other carbon footprinting and/or exposure metrics to the country/area/regional level can provide a useful indicator for making comparisons between your financial activities in different countries/areas and regions. In some cases, particular countries/areas/regions may fall within the scope of particular legislation, therefore, providing country/region-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this country/area/region.

Response options

Please complete the following table. You can add rows by using the "Add Row" button at the bottom of the table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Portfolio*

Country/area/region

Portfolio metric

Portfolio emissions or alternative metric

Select from:

Banking (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Select from:

[Country/area/region drop-down list]

Select from:

Absolute portfolio emissions (tCO2e)
Weighted average carbon intensity (tCO2e/Million revenue)
Portfolio carbon footprint (tCO2e/Million invested)
Carbon intensity (tCO2e/Million revenue)
Exposure to carbon-related assets (Million portfolio value)
Avoided emissions financed (tCO2e)
Carbon removals financed (tCO2e)
Other, please specify

Numeric field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

Portfolio (column 1)

The options which appear are driven by the activities you selected in C-FS0.7.
Add a row for each portfolio.

Country/area/region (column 2)

Select country/area/region from the drop-down list, adding one row for each country/area/region.

Portfolio metric (column 3)

For details on methodologies to calculate portfolio metrics please consult the CDP Technical Note on Portfolio Impact Metrics for Financial Services Sector Companies.

Portfolio emissions or alternative metric (column 4)

If you are reporting absolute emissions or emissions intensity, use gross, not net figures.

(C-FS14.2d) Break down your organization's portfolio impact by scope.

Question dependencies

This question only appears if you select "Yes, by scope" in response to C-FS14.2.

Change from last year

No change

Rationale

Current methodologies for calculating portfolio emissions can lead to double counting across scopes. For example, what are counted as Scope 1 emissions for an electricity generation company could be the same emissions for a retailer but counted as Scope 2. There is currently no way for financial institutions to overcome this in their portfolio emission calculations, but this question allows you to report emissions by scope separately. Breaking down absolute emissions of their portfolio by scope can help financial institution identify emissions throughout the value chain of companies in their portfolio.

Response options

Please complete the following table. You can add rows by using the "Add Row" function at the bottom of the table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Portfolio*

Clients'/investees' scope

Portfolio emissions (metric tons CO2e)

Select from:

Bank lending (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance underwriting (Insurance company)

Select from:

Scope 1
Scope 2 (location-based)
Scope 2 (market-based)
Scope 3

Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

General

Add a row for each portfolio for which you are able to provide a breakdown of your organization's portfolio impact.
If you are able to provide a breakdown of multiple scopes for a single portfolio, add a separate row for each scope in that portfolio.

Portfolio (column 1)

The options presented will be driven by the activities you selected in C-FS0.7.

Portfolio emissions (metric tons CO2e) (column 3)

Disclose the quantitative portfolio emissions associated with the respective scope.
Use gross emissions figures.

(C-FS14.3) Did your organization take any actions in the reporting year to align your portfolio with a 1.5°C world?

Question dependencies

Rows in this question will be presented according to the activities reported in C-FS0.7.

Change from last year

Modified question

Rationale

Organizations in the financial sector are encouraged to align their financial portfolios with real economy emissions reductions required to achieve the 2015 Paris Agreement. Steering financial portfolios in line with a 1.5°C world, will make financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. Since financial services sector organizations are at the core of enabling economic activities, their commitments and targets have a trickle-down effect on the real economy.

Ambition: Financial services companies align their portfolios with a 1.5-degree world.

Connection to other frameworks

NZAM (FS only)

Commitment 3

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Portfolio	Actions taken to align our portfolio with a 1.5°C world	Briefly explain the actions you have taken to align your portfolio with a 1.5-degree world	Please explain why you have not taken any action to align your portfolio with a 1.5°C world*
Banking (Bank)*	Select from: Yes No, but we plan to in the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]
Investing (Asset manager)*
Investing (Asset owner)*
Insurance underwriting (Insurance company)*

Requested content

Portfolio (column 1)

The options presented are driven by the activities you selected in C-FS0.7.

Briefly explain the actions you have taken to align your portfolio with a 1.5-degree world (column 3)

This column appears if “Yes” is selected in column 2.
Describe what actions you have taken during the reporting year to align your portfolio with a 1.5-degree world.

Please explain why you have not taken any action to align your portfolio with a 1.5°C world (column 4)

This column only appears if you select any “No…” option in column 2.
Ensure your explanation is company-specific and provides details as to why you do not take any action to align your portfolio with a 1.5°C world. You may also include details on whether you are exploring ways to do this in the future and what actions you are planning on taking.

Explanation of terms

Alignment with a 1.5°C world refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
Portfolio alignment: Refer to e.g. Measuring Portfolio Alignment.

(C-FS14.3a) Does your organization assess if your clients/investees' business strategies are aligned with a 1.5°C world?

Question dependencies

This question only appears if you select “Yes” in C-FS14.3.
Rows will appear for each portfolio that you selected 'Yes' for in C-S14.3.

Change from last year

Modified question

Rationale

While the commitments and targets of financial institutions are a critical step, it is changes in business strategies amongst their clients/investees where emissions actually take place which will decarbonize the real economy. Aligning financial portfolios with a 1.5°C world does not necessarily equate to reducing emissions in the real economy. Organizations in the financial sector are encouraged to assess whether their clients/investees’ business strategies are aligned to a 1.5°C world in order to drive change and decarbonize the real economy.

Connection to other frameworks

NZAM (FS only)

Commitment 3

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio	Assessment of alignment of clients/investees' strategies with a 1.5°C world	Please explain why you are not assessing if your clients/investees’ business strategies are aligned with a 1.5°C world*
Banking (Bank)*	Select from: Yes, for all Yes, for some No, we do not have any commercial/corporate/SME clients No, but we plan to in the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]
Investing (Asset manager)*
Investing (Asset owner)*
Insurance underwriting (Insurance company)*

Requested content

General:

For the purpose of this question focus on your commercial/corporate/SME clients (commercial/corporate financing and insurance).

Portfolio (column 1)

Rows will appear for each portfolio that you selected 'Yes' for in C-FS14.3.

Assessment of alignment of clients/investees' strategies with a 1.5°C world (column 2)

If you are a financial services company having only individual clients as opposed to having corporate clients, select option “No, we do not have any commercial/corporate/SME clients”.

Please explain why you are not assessing if your clients/investees’ business strategies are aligned with a 1.5°C world (column 3)

Column 3 only appears if “Yes, for some”, “No, but…”, or "No, and..." is selected in column 2.
Ensure your explanation is company-specific and provides details as to why you are not assessing if your clients/investees’ business strategies are aligned with a 1.5°C world. You may also include details on whether you are exploring ways to do this in the future and what actions you are planning on taking.
If you selected “Yes, for some” in column 2, indicate the proportion of clients/investees’ business strategies that are aligned with a 1.5°C world, and your plans to assess all of your clients/investees’ business strategies in the future.

Explanation of terms

Alignment with a 1.5°C world refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5)

C15 Biodiversity

Module Overview

Disclosure on actions to preserve or improve biodiversity will help organizations to evaluate the relevancy and efficacy of their commitments and consider the biodiversity-related risks and impacts of their business practices.

The data will help with the understanding of the interdependence between biodiversity and business resilience. Demand is increasing for biodiversity-related data that will enable financial institutions to develop investment strategies, and to engage effectively with companies to address the loss of forests and biodiversity that is exposing them to risk throughout their value chains.

This module takes a staged, circular approach, aligned with the International Union for the Conservation of Nature (IUCN’s) guidelines for the planning and monitoring biodiversity performance by companies:

Develop a set of linked corporate level biodiversity performance indicators
Implement systems to use the indicators and the data they produce
Evaluate progress with a periodic review of priorities, ambitions and indicators.

In addition, companies will report on their approach to the governance of biodiversity–related issues.

The questions in this module were influenced by the 4 stage structure as outlined in the IUCN: Guidelines for planning and monitoring corporate biodiversity performance.

Key changes

New questions:
- C15.4 asks whether your organization has activities in or near biodiversity sensitive areas.
- C15.4a requests details of activities in or near biodiversity sensitive areas.

Modified question:
- C15.3 – question updated to also address dependencies on biodiversity, the value chain stages covered by assessments, and the tools and methods used.

Click here for a list of all changes made this year.

Pathway diagram - questions

This diagram shows the general questions contained in module C15. To access question-level guidance, use the menu on the left to navigate to the question.

(C15.1) Is there board-level oversight and/or executive management-level responsibility for biodiversity-related matters within your organization?

Change from last year

No change

Rationale

This question indicates to investors and other data users the level of commitment and strategic importance organizations give to addressing biodiversity-related issues.

Connection to other frameworks

SDG

Goal 15: Life on land

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Board-level oversight and/or executive management-level responsibility for biodiversity-related issues	Description of oversight and objectives relating to biodiversity*	Scope of board-level oversight [FS Only]*
Select from: Yes, both board-level oversight and executive management-level responsibility Yes, board-level oversight Yes, executive management-level responsibility No, but we plan to have both within the next two years No, and we do not plan to have both within the next two years	Text field [maximum 2,500 characters]	Select all that apply: Risks and opportunities to our own operations Risks and opportunities to our bank lending activities Risks and opportunities to our investment activities Risks and opportunities to our insurance underwriting activities The impact of our own operations on biodiversity The impact of our bank lending activities on biodiversity The impact of our investing activities on biodiversity The impact of our insurance underwriting activities on biodiversity

Requested content

General

Consider whether the board, board committees and/or executive management consider biodiversity-related issues when reviewing and guiding the business strategy, major plans of action, risk management policies, annual budgets, and future financial planning, or when setting the organization’s performance objectives, monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures.

Description of board level oversight and objectives (column 2)

This column is presented only if “Yes” is selected in column 1 (Board-level oversight…)
Describe how your organization addresses biodiversity at the board/ executive management level. This can include targets and responsibilities related to biodiversity. This is an opportunity to demonstrate thinking beyond climate change at the board level.
Provide a description of the position(s)/committee(s) in the corporate structure and the level of responsibility they have towards biodiversity-related issues; and
Explain how the responsibilities of the position(s)/committee(s) are related to biodiversity.
Note that this column asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.
You can use this field to enter any relevant information.

Scope of board-level oversight [FS only]

This column is presented only if “Yes” is selected in column 1 (Board-level oversight…)
Select the aspects of your activity for which the board oversees biodiversity-related issues.

Explanation of terms

Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries/areas use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board" (TCFD, 2017).

(C15.2) Has your organization made a public commitment and/or endorsed any initiatives related to biodiversity?

Change from last year

No change

Rationale

An organization that commits publicly to implementing a biodiversity policy sends investors and other data users a strong signal that it wishes to be held to account for its biodiversity stewardship. Organizations disclosing this information can benchmark their commitments against their peers and so drive change within their industries.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate Action

Goal 15: Life on land

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Indicate whether your organization made a public commitment or endorsed any initiatives related to biodiversity	Biodiversity-related public commitments*	Initiatives endorsed*
Select from: Yes, we have made public commitments and publicly endorsed initiatives related to biodiversity Yes, we have made public commitments only Yes, we have endorsed initiatives only No, but we plan to do so within the next 2 years No, and we do not plan to do so within the next 2 years	Select all that apply: Commitment to Net Positive Gain Commitment to No Net Loss Adoption of the mitigation hierarchy approach Commitment to not explore or develop in legally designated protected areas Commitment to respect legally designated protected areas Commitment to avoidance of negative impacts on threatened and protected species Commitment to no conversion of High Conservation Value areas Commitment to secure Free, Prior and Informed Consent (FPIC) of Indigenous Peoples Commitment to no trade of CITES listed species Other, please specify	Select all that apply: CBD - Global Biodiversity Framework SDG CITES F4B - Finance for Biodiversity PBAF - Partnership for Biodiversity Accounting Financials [FS only] Other, please specify

Requested content

General

A commitment is public when it is accessible to stakeholders (e.g., available on the organization’s website or on any other unrestricted site).
Select a ‘Yes’ option if your organization has made any public commitment related to biodiversity.
Do not select a ‘Yes’ option if your commitments are internal or private only.

Biodiversity-related public commitments (column 2)

This column is presented only if either “Yes, we have made public commitments and publicly endorsed initiatives related to biodiversity” or “Yes, we have made public commitments only” is selected in column 1 (Indicate whether…).

Initiatives endorsed (column 3)

This column is presented only if either “Yes, we have made public commitments and publicly endorsed initiatives related to biodiversity” or “Yes, we endorse initiatives only” is selected in column 1 (Indicate whether…).
This list includes examples of leading global initiatives that promote adoption of corporate commitments related to biodiversity.
Only select CBD – Global Biodiversity Framework if your organization has signed up to the commits and associated actions.
Only select F4B if you are listed on the initiative's website as a pledge signatory.
Only select PBAF if you are listed on the initiative’s website as a partner or supporter.
If you select ‘Other, please specify’, provide a label for the initiative. Initiatives reported here should be voluntary and relate clearly to public biodiversity commitments.

Explanation of terms

CITES species: species listed in any of the annexes of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Free, Prior and Informed Consent (FPIC): a community right to give or withhold its consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use, as recognized by several international instruments including the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), International Labour Organization’s Convention 169, and Convention on Biological Diversity (CBD).
Internationally recognized areas: UNESCO Natural World Heritage Sites, UNESCO Man and the Biosphere Reserves, Key Biodiversity Areas, and wetlands designated under the Convention on Wetlands of International Importance (the Ramsar Convention) (IFC, 2012).
Protected area: a protected area is a clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long-term conservation of nature with associated ecosystem services and cultural values (IUCN, 2008). For the purposes of this CDP disclosure, only legally designated areas (i.e., designated by governments) are expected to be disclosed.
Net Positive Impact: The point at which project-related impacts on biodiversity and ecosystem services are outweighed by measures taken according to the mitigation hierarchy, so that a net gain results. May also be referred to as net gain (CSBI, 2015).
No Net Loss: The point at which project-related impacts are balanced by measures taken through application of the mitigation hierarchy, so that no loss remains (CSBI, 2015).
Threatened and protected habitats: All habitats considered threatened or otherwise protected by national or subnational laws and regulation, as well as international multilateral agreements, including protected areas, World Natural Heritage Sites, Natura 2000 sites and other similar areas.

Additional information

CBD - Global Biodiversity Framework: the post-2020 global biodiversity framework builds on the Strategic Plan for Biodiversity 2011-2020 and sets out an ambitious plan to implement broad-based action to bring about a transformation in society’s relationship with biodiversity and to ensure that, by 2050, the shared vision of living in harmony with nature is fulfilled. The framework aims to galvanize urgent and transformative action by governments and all of society, including indigenous peoples and local communities, civil society and businesses, to achieve the outcomes it sets out in its vision, mission, goals and targets, and thereby contribute to the objectives of the Convention on Biological Diversity and other biodiversity related multilateral agreements, processes and instruments.
Sustainable Development Goals (SDGs): the UN Sustainable Development Goals (SDGs) are a set of 17 goals for 2030 that look to balance the three dimensions of sustainable development: the economic, social and environmental (Sustainable Development Knowledge Platform, 2015).
F4B Pledge - Finance for biodiversity pledge: signatories call on global leaders and commit to protecting and restoring biodiversity through their finance activities and investments.
The Partnership for Biodiversity Accounting Financials (PBAF) is a partnership of financial institutions that work together to explore the opportunities and challenges surrounding the assessment and disclosure of the impact on biodiversity associated with their loans and investments.
CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten the survival of the species.

(C15.3) Does your organization assess the impacts and dependencies of its value chain on biodiversity?

Change from last year

Modified question

Rationale

An organization’s assessment of its impacts and dependencies on biodiversity facilitates and sets its approach to monitoring and addressing biodiversity issues. It identifies not only the activities and operations that could impact and/or are dependent on biodiversity, but also generates specific information on the species, habitats and ecosystem services affected. Your response to this question aligns with requirements of “Stage 1: Priorities” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies understand their impacts and dependencies on biodiversity.

Ambition: Companies asses the impacts and dependencies of their value chain on biodiversity using recognized methods.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 15: Life on Land

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Type of assessment	Indicate whether your organization undertakes this type of assessment	Value chain stage(s) covered*	Portfolio activity [FS only]*	Tools and methods to assess impacts and/or dependencies on biodiversity*	Please explain how the tools and methods are implemented and provide an indication of the associated outcome(s)*
0	1	2	3	4	5
Impacts on biodiversity	Select from: Yes No, but we plan to within the next two years No and we don’t plan to within the next two years	Select all that apply: Direct operations Upstream Downstream [not shown to FS] Portfolio activity [FS only]	Select all that apply: Bank lending portfolio (Bank) Investing portfolio (Asset manager) Investing portfolio (Asset owner) Insurance underwriting portfolio (Insurance company)	Select all that apply from drop-down options below	Text field [maximum 2,500 characters]
Dependencies on biodiversity

Tools and methods to assess impacts and/or dependencies on biodiversity (column 4)

BFC – Biodiversity Footprint Calculator
BFM – Biodiversity Footprint Methodology
BIM – Biodiversity Impact Metric
Biodiversity indicators for site-based impacts
Biological Diversity Protocol
Bioscope
BISI – Biodiversity Indicators for Site-based impacts
BNGC – Biodiversity Net Gain Calculator
CBD – Global Biodiversity Framework
CBF – Corporate Biodiversity Footprint
CISL Biodiversity Impact Metric
ENCORE tool
F4B - Finance for Biodiversity [FS only]

GBS – Global Biodiversity Score
IBAT – Integrated Biodiversity Assessment Tool
LafargeHolcim
LIFE Key
Natural Capital Protocol
PBAF – Partnership for Biodiversity Accounting Financials [FS only]
PBF – Product Biodiversity Footprint
ReCiPe
SBTN materiality tool
STAR – Species Threat Abatement and Restoration metric
TNFD – Taskforce on Nature-related Financial Disclosures
WBCSD Corporate Ecosystem Services Review
No biodiversity assessment tools/methods used
Other, please specify

Requested content

General

When responding to this question organizations should consider how they assess whether their actions cause impacts and/or are dependent on biodiversity.

Value chain stage(s) covered (column 2)

This column is presented only if “Yes” is selected in column 1 (Indicate whether your organization…).
Select all the stages of your value chain that are covered by your assessment.

Tools and methods to assess impacts and/or dependencies on biodiversity (column 4)

This column is presented only if “Yes” is selected in column 1 (Indicate whether your organization…).
Select all the tools and/or methods used to assess your impacts (row 1) or dependencies (row 2) on biodiversity.
If any biodiversity-specific tools and/or methods that you use are not listed, select “Other, please specify” and provide a label for the tool(s)/method(s).
If you do not use biodiversity-specific tools or methods for your assessment, select “No biodiversity assessment tools/methods used”.

Please explain how the tools and methods are implemented and provide an indication of the associated outcome(s) (column 5)

This column is presented if anything other than “No biodiversity assessment tools/methods used” is selected in column 4.
Explain why you have chosen to use the tools/methods selected in column 4 (Tools and methods…), and how you implement them.
Indicate how the tools provided insight into your impacts/dependencies on biodiversity, and how this has informed decision-making and/or actions taken.

Portfolio activity [FS only] (column 3)

This column is presented only if "Portfolio activity” is selected in column 2.
Select all the portfolios for which you assess impacts (row 1) or dependencies (row 2) on biodiversity.

Explanation of terms

Biodiversity performance: the measurement of success of an organization’s interventions towards mitigation of their negative biodiversity impacts.
Dependency on biodiversity: organizations may be dependent on the services ecosystems provide if they function as an input or if they enable, enhance or influence environmental conditions required for successful corporate performance (IUCN, 2021).

Additional information

For information on standards, guidelines and tools that can be used to set company priorities for planning and monitoring biodiversity performance, see IUCN’s Guideline for planning and monitoring corporate biodiversity performance.

(C15.4) Does your organization have activities located in or near to biodiversity- sensitive areas in the reporting year?

Change from last year

New question

Rationale

Awareness of the proximity of your organization’s activities to biodiversity-sensitive areas demonstrates an understanding of the relationship between the two.

Ambition: Companies indicate whether they have activities located in or near to biodiversity-sensitive areas.

Connection to other frameworks

SDG

Goal 15: Life on Land

Response options

Select one of the following options:

Yes
No
Not assessed

Requested content

General

Indicate whether any of your organization’s activities (i.e., sites and/or operations) are located within or near to biodiversity -sensitive areas.
A ‘biodiversity- sensitive area’ refers to any area within the Natura 2000 network of protected areas, UNESCO World Heritage sites, and Key Biodiversity Areas (‘KBAs’), as well as any other protected area.
Activities are considered to be located within a biodiversity- sensitive area if there is total or partial overlap of the activities with the biodiversity- sensitive area.
Activities are considered to be located near to biodiversity- sensitive areas if the biodiversity- sensitive area is within the site/operation’s area of influence i.e., the area within which the activities may directly and/or indirectly cause impacts. For some sectors, such as Metals & mining, it is possible for impacts to be felt as far as 70km away (Sonter, L.J., Herrera, D., Barrett, D.J. et al., 2017).

(C15.4a) Provide details of your organization’s activities in the reporting year located in or near to biodiversity -sensitive areas.

Question dependencies

This question only appears if you select “Yes” in C15.4.

Change from last year

New question

Rationale

Awareness of the proximity of your organization’s activities to biodiversity -sensitive areas demonstrates an understanding of the relationship between the two. This awareness allows companies to mitigate potential negative effects of their activities on biodiversity -sensitive areas

Ambition: Companies implement mitigation measures to ensure their activities do not have negative impacts on biodiversity-sensitive areas.

Connection to other frameworks

SDG

Goal 15: Life on Land

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

*Column/row appearance is dependent on selections in this or other questions.

Classification of biodiversity -sensitive area	Country/area	Name of the biodiversity-sensitive area	Proximity	Briefly describe your organization’s activities in the reporting year located in or near to the selected area
1	2	3	4	5
Select from: Natura 2000 network of protected areas UNESCO World Heritage site Key Biodiversity Area (KBAs) Other biodiversity sensitive area, please specify	Select from: [List of countries/areas]	Text field [maximum 500 characters]	Select from: Overlap Adjacent Up to 5 km Up to 10 km Up to 25 km Up to 50 km Up to 70 km Data not available	Text field [maximum 2,500 characters]

Indicate whether any of your organization’s activities located in or near to the selected area could negatively affect biodiversity	Mitigation measures implemented within the selected area*	Explain how your organization’s activities located in or near to the selected area could negatively affect biodiversity, how this was assessed, and describe any mitigation measures implemented*
6	7	8
Select from: Yes, but mitigation measures have been implemented Yes, and no mitigation measures have been implemented No Not assessed	Select all that apply: Site selection Project design Scheduling Physical controls Operational controls Abatement controls Restoration Biodiversity offsets Other, please specify	Text field [maximum 3,000 characters]

[Add Row]

Requested content

General

Add a row to provide information for each biodiversity -sensitive area that your activities (i.e., sites and/or operations) are located within or near to.
If you have activities located in or near to multiple biodiversity -sensitive areas within a classification system listed in column 1, add a separate row to report information for each area within that classification.

Country/Area (column 2)

Select the country/area that the biodiversity -sensitive area is located within.
If the biodiversity- sensitive area spans across more than one country/area, select the country/area that the biodiversity- sensitive area falls primarily within.

Name of the biodiversity-sensitive area (column 3)

Enter the name of the area/site, as specified in the classification system selected in column 1.

Proximity (column 4)

Select the option that best describes the distance from your organization’s sites/operations to the biodiversity- sensitive area specified in column 3.
If selecting one of the “Up to […] km” options, the specified distance represents the maximum distance from the biodiversity- sensitive area that impacts may be detected.
Select “Adjacent” if your organization’s sites/operations are located side-by-side (i.e., share borders) with the biodiversity- sensitive area.
Select “Data not available” if you are unable to determine the proximity.

Briefly describe your organization’s activities in the reporting year located in or near to the selected area (column 5)

Provide details that contextualize the interaction between your organization’s sites/operations and the biodiversity sensitive area.
Include details of how the proximity selected in column 4 was determined.

Indicate whether any of your organization’s activities located in or near to the selected area could negatively affect biodiversity (column 6)

Activities negatively affecting biodiversity- sensitive areas refers to activities:
- Leading to the deterioration of natural habitats and the habitats of species, and to disturbance of the species for which the protected area has been designated; and
- where mitigation measures have not been implemented accordingly.
When assessing whether your activities could negatively affect biodiversity, you should consider both:
- the direct impacts of physical sites, power transmission corridors, pipelines, disposal areas, and associated facilities that would not have been constructed in the absence of the sites/operations; and
- the indirect impacts of any other activities associated with the sites/operations and of emissions/effluents released by the sites/operations.

Mitigation measures implemented within the selected area (column 7)

This column is presented only if “Yes, but mitigation measures have been implemented” is selected in column 6 (Indicate whether any of your organization’s…).
The drop-down options are based on the mitigation hierarchy referred to in the guide prepared by The Biodiversity Consultancy to the Cross-Sector Biodiversity Initiative – CSBI (CSBI, 2015):
- Site selection – relocation of the site or site components away from an area recognized for its high biodiversity and ecosystem services value.
- Project design – selection of the type of infrastructure, and its placing and mode of operation on the site.
- Scheduling – changes in the timing of operational activities.
- Physical controls – adaptation of the physical design of the infrastructure to reduce potential impacts, such as installing culverts on roads, or bird flight diverters on transmission lines.
- Operational controls – management and regulation of the actions of people associated with the site/operations — including staff, contractors or (where feasible) project affected people and migrants.
- Abatement controls – reduction of the levels of pollutants (e.g. emissions of dust, light, noise, gases or liquids) that could have negative impacts on biodiversity and ecosystem services.
- Restoration – in the context of the mitigation hierarchy, restoration refers to measures taken to repair degradation or damage to specific biodiversity features and ecosystem services of concern (which might be species, ecosystems/habitats or particular ecosystem services) following impacts that cannot be completely avoided and/or minimized.
- Biodiversity offsets – measures taken to compensate for any residual significant, adverse impacts that cannot be avoided, minimized and / or rehabilitated or restored, in order to achieve no net loss or a net gain of biodiversity. Offsets can take the form of positive management interventions such as restoration of degraded habitat, arrested degradation or averted risk, protecting areas where there is imminent or projected loss of biodiversity (BBOP, 2012).

Explain how your organization’s activities located in or near to the selected area could negatively affect biodiversity, how this was assessed, and describe any mitigation measures implemented (column 8)

This column is presented if anything other than “Not assessed” is selected in column 6.
Provide further details and context regarding your selection in column 6:
- If you selected “No”, indicate the types of impacts included in your assessment and how you reached the conclusion that none of your sites/operations within this biodiversity -sensitive area could negatively affect biodiversity.
- If you selected “Yes, but mitigation measures have been implemented”, describe the mitigation measures implemented and how they mitigate negative direct and indirect impacts of your activities on biodiversity.
- If you selected “Yes, and no mitigation measures have been implemented”, describe the potential negative impacts of your activities and explain why mitigation measures have not been implemented.
Where possible, provide sector-specific details of the nature of the potential negative impacts and how this has informed the scope of your assessment and chosen mitigation measures. For example, you may wish to indicate if the nature of your sector activities impacts your organization’s ability to avoid biodiversity -sensitive areas (e.g., a utility company that provides services to communities within a biodiversity -sensitive area would need to consider mitigation methods that allow the organization to continue to provide their services).

Explanation of terms

Biodiversity--sensitive area: refers to any area within the Natura 2000 network of protected areas, UNESCO World Heritage sites, and Key Biodiversity Areas (‘KBAs’), as well as any other protected area.

(C15.5) What actions has your organization taken in the reporting year to progress your biodiversity-related commitments?

Change from last year

No change (2022 C15.4)

Rationale

This question enables organisations to demonstrate how they are achieving their vision and ambition for biodiversity through addressing the issues they have identified and committed to addressing. Your response to this question aligns with requirements of “Stage 2: Ambitions” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies develop and deliver biodiversity goals and objectives.

Connection to other frameworks

SDG

Goal 15: Life on Land

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Have you taken any actions in the reporting period to progress your biodiversity-related commitments?	Type of action taken to progress biodiversity- related commitments*
Select from: Yes, we are taking actions to progress our biodiversity-related commitments No, we are not taking any actions to progress our biodiversity-related commitments No, we are not taking any actions to progress our biodiversity-related commitments, but we plan to within the next two years No, and we do not plan to undertake any biodiversity-related actions	Select all that apply: Land/water protection Land/water management Species management Education & awareness Law & policy Livelihood, economic & other incentives Other, please specify

Requested content

General

Select the options that best describe the actions your organization is taking to progress your biodiversity-related commitments.

Type of actions taken to progress biodiversity-related commitments (column 2)

This column is presented only if “Yes, we are taking actions to progress biodiversity-related commitments” is selected in column 1 (Have you taken any action…).
Select:
- Land/Water protection: for actions taken to identify, establish or expand parks and other legally protected areas. For example, expanding national parks or identifying and establishing a nature reserve.
- Land/Water Management: for actions directed at conserving or restoring sites, habitats and the wider environment e.g. controlling poacher activity within protected areas.
- Species management: for actions directed at managing or restoring species, focused on the species itself. E.g. setting harvest quotas or selective culling to manage population size within a protected area.
- Education and Awareness: for actions directed at people to improve understanding and skills, and influence behavior. E.g. engaging with park managers to exchange knowledge on species identification or raising environmental awareness through company social media.
- Law and Policy: for actions to develop, change, influence and help implement formal legislation, regulations, and voluntary standards. This could include the promotion of conventions on biodiversity.
- Livelihood, Economic and other incentives: for actions to use economic and other incentives to influence behavior such as the use of certification, or positive incentives.

Additional information

For guidelines on setting company ambitions on biodiversity performance, see IUCN’s Guideline for planning and monitoring corporate biodiversity performance.
For further information on different conservation actions, see IUCN’s Conservation Actions Classification Scheme (Version 2.0).

(C15.6) Does your organization use biodiversity indicators to monitor performance across its activities?

Change from last year

No change (2022 C15.5)

Rationale

Robust indicators are critical for a corporate-level assessment of biodiversity impact, by allowing the aggregation of data from different activities and geographies. This question allows an organisation to demonstrate its use of indicators to track progress against its biodiversity goals and objectives and evaluate the success of its intervention/s. Your response to this question aligns with requirements of “Stage 3: Indicators” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies collect, share and analyse biodiversity data that encourages learning and improvement.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Response options

Please complete the following table:

Does your organization use indicators to monitor biodiversity performance?	Indicators used to monitor biodiversity performance
Select from: Yes, we use indicators No, we do not use indicators, but plan to within the next two years No	Select all that apply: State and benefit indicators Pressure indicators Response indicators Other, please specify

Requested content

Indicators used to monitor biodiversity performance (column 2)

Select:
- State and Benefit indicators: for state indicators focusing on improving habitats and species and benefit indicators that monitor ecosystem services goals.
- Pressure indicators: for pressure indicators that are effective for tracking objectives. For example, a focus of a company objective on loss of habitats could have the indicator ‘habitat cover change’ with data collected on trends in habitat cover loss.
- Response indicators: for response indicators that are informed by the company strategy. For example, to establish the coverage of protected areas.

Explanation of terms

Biodiversity indicators: biodiversity indicators are communication tools that summarize data on complex environmental issues. They can be used to signal key issues to be addressed through policy or management interventions. Indicators, therefore, are important for monitoring the status and trends of biological diversity and, in turn, feeding back information on ways to continually improve the effectiveness of biodiversity policies and management programmes (GreenFacts, 2006).

Additional information

For information on using indicators to assess biodiversity performance across company activities, see IUCN’s Guideline for planning and monitoring corporate biodiversity performance.
For indicator(s) to be useful in a business application, they will need to take into consideration an understanding of the natural system, and an idea of how the system will respond to management (i.e., the indicator will provide a signal that can be attributed to a business).
Biodiversity indicators help us measure and monitor a) pressures or threats, such as trends in land and water use, habitat loss or invasive species, b) the state of species and ecosystems, such as the health of species or integrity of ecosystems, c) the conservation response, such as the protection of important biodiversity areas, and/or d) benefits to people, such as the ecosystem services that freshwater provides. Fine scale indicators may be developed to inform local decisions on the ground, such as determining the degree to which restoration or management practices are working. Broad scale indicators that aggregate information may be developed to report on the benefits of national environmental policy and conservation investments (IUCN, 2021).
Note: Companies do not need to develop new indicators. There are several existing indicators used by conservationists. Examples of good biodiversity indicators include those developed for monitoring Aichi targets and the SDGs. Existing indicators can be reviewed and appropriate ones selected.

(C15.7) Have you published information about your organization’s response to biodiversity-related issues for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

Change from last year

No change (2022 C15.6)

Rationale

Investors want to understand how biodiversity issues, as a non-financial metric, have been integrated into mainstream financial reports. They will look to see how it is considered as part of business performance, where this is communicated, and whether these communications are in line with best practice. Your response to this question aligns with requirements of “Stage 4: Implementation” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies share the data that they collect.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Report type	Content elements*	Attach the document and indicate where in the document the relevant biodiversity information is located*
Select from: In mainstream financial reports In other regulatory filings In voluntary sustainability report or other voluntary communications No publications Other, please specify	Select all that apply: Content of biodiversity-related policies or commitments Governance Impacts on biodiversity Details on biodiversity indicators Influence on public policy and lobbying Risks and opportunities Biodiversity strategy Other, please specify	Text field [250 characters] Attach your document here

[Add row]

Requested content

General

This question asks about communication of your position on biodiversity outside of your CDP response. Even where the relevant information is web-based, you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfill this requirement.

Explanation of terms

Biodiversity performance: The measurement of success of an organization's interventions towards the mitigation of their negative biodiversity impacts.

Additional information

For information on collecting, sharing and analyzing biodiversity performance data, see IUCN’s Guideline for planning and monitoring corporate biodiversity performance.

C16 Signoff

Pathway diagram - questions

This diagram shows the general questions contained in module C16. To access question-level guidance, use the menu on the left to navigate to the question.

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optional and is not scored.

Change from last year

No change

Response options

This is an open text question with a limit of 9,999 characters.

Please note that when copying from another document into the ORS, formatting is not retained.

(C16.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Change from last year

No change

Rationale

CDP asks companies to identify the job title and corresponding job category of the person signing off (approving) the CDP response. This information signals to investors where in the corporate structure direct responsibility is being taken for the response and the information contained therein.

Response options

Please complete the following table:

Job title

Corresponding job category

Text field [maximum 200 characters]

Select from:

Board chair
Board/Executive board
Director on board
Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operating Officer (COO)
Chief Procurement Officer (CPO)
Chief Risk Officer (CRO)
Chief Sustainability Officer (CSO)
Other C-Suite Officer
President
Business unit manager
Energy manager
Environmental, health and safety manager
Environment/Sustainability manager
Facilities manager
Process operation manager
Procurement manager
Public affairs manager
Risk manager
Other, please specify

Requested content

General

Job title (column 1)

Enter the title of the person who has signed off on this CDP response.
Note that this question asks about the position and not about the name of the individual holding this position. Do not include names or any other personal data in your response.

Corresponding job category (column 2)

Select the job category that most closely corresponds with the job title provided in column 1 "Job title". The job category selected should clearly correspond with the title given in column 1 "Job title".
If you select “Other, please specify”, provide a label for the corresponding job category.

Explanation of terms

Board: Or "Board of Directors" refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries/areas use a two-tiered system where "board" refers to the "supervisory board" while "key executives" refers to the "management board".

FW-FS Forests and Water Security (FS only)

Module Overview

Financial institutions’ impact on nature, and their exposure to nature-related risks, come almost entirely from the activities they finance and/or insure in the wider economy. They are therefore requested to report information related to forests and water security only if they lend to, invest in or insure sectors of the economy with a critical impact or dependency on nature. Organizations should respond to this module in the context of these financing/insurance underwriting activities.

The questions and response options are driven by the response to C-FS0.7. If an industry sector which has a critical impact or dependency on forests is selected in column 4 of C-FS0.7, organizations will be requested to respond to forests-related datapoints, and likewise for water security (references to water relate to freshwater resources). Throughout the module, forest-related dropdown options are indicated by [F], water security-related dropdown options by [W], and dropdown options that relate to both forests and water security are indicated by [F,W]. If no selection is made in column 4 of C-FS0.7, the FW-FS module will not appear.

There are 6 sections in this module, and most questions are similar to those in the Climate Change modules (the comparable Climate Change questions will be noted in the guidance). The journey through the Forests & Water Security module for the Financial Sector includes the following:

Governance of forests- and/or water-related issues.
Portfolio exposure to forests- and/or water-related risks and opportunities.
How forests- and/or water-related issues are incorporated into the organizations business strategy, e.g. the policy framework and financial products to mitigate negative forests- and/or water-related impacts.
Engagement with clients and investee companies on forests and/or water security.
Measurement of the organization’s portfolio impact on forests and/or water security. This means the finance and insurance provided to companies in agricultural commodity supply chains, and proportion of this which is considered sustainable.
Communication of the organization’s response to forests and/or water security.

Company action that reduces deforestation will likely have a positive impact on climate change due to the crucial role of forests in addressing the climate crisis. However, impacts, risks or opportunities should be reported as forests-related if associated with deforestation in some way.

Likewise, many of the impacts of climate change are water-related, for example droughts, floods and storm surges. We ask that an issue be reported as water-related if the impact/benefit/risk is related to water, even if this means duplicating information reported in the Climate Change modules. Organizations should also consider issues related to water scarcity, water pollution, water stress, water access and other underlying basin risks.

Disclosure note

The following terms apply:

Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.

Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.

Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.

Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.

Key changes

Removed questions:
- FW-FS5.2b (2022) – asking whether the financing and/or insurance of companies operating in forests risk commodity supply chains is extended to clients/investees that meet your policy expectations on how to manage their impact on forests. These datapoints are captured in question FW-FS5.3.

New questions:
- FW-FS3.3 – asks if you have any targets for deforestation free and/or water secure lending, investing, or insuring.
- FW-FS3.3a – asks for details of targets for deforestation free and/or water secure lending, investing, or insuring.
- FW-FS5.3 – asks for data on compliance with forests and or water related requirements.

Modified questions:
- FW-FS1.1a – has new drop-down options to algin with modifications to C1.1a.
- FW-FS1.1b – has new drop-down options to align with modifications to C1.1b.
- FW-FS1.2 – has new drop-down options, an additional column to provide details, and changes to column headings.
- FW-FS2.1a – has been modified from add-row to a fixed-row table, and has new columns to disclose the proportion of clients/investees exposed to substantive risk.
- FW-FS2.2a – has been modified from add-row to a fixed-row table, and has a new column asking for the portfolio and issue area to improve the question format.
- FW-FS3.5a – has a new column to include commodities with a critical impact on water security and changes to column headings.
- FW-FS4.4 – has new and revised drop-down options and revised column dependencies to allow data users to better understand if activities that your organization engages in could directly or indirectly influence policy, law, or regulation that may impact forests and/or water security.
- FW-FS6.1 – has a new column to separate data based on theme, Forests or Water Security.
Click here for a list of all changes made this year.

Pathway diagram - questions

This diagram shows the questions contained in the FW-FS module. To access question-level guidance, use the menu on the left to navigate to the question.

FW-FS Board oversight

(FW-FS1.1) Is there board-level oversight of forests- and/or water-related issues within your organization?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

This question provides an indication of the importance of forests- and/or water-related issues to your business. Investors and other data users are interested in an organization's understanding of and approach to forests- and/or water-related risks at the board level; how aligned this is with business strategy and policies; and how the board monitors progress against targets and goals.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Issue area(s)	Board-level oversight of this issue area	Explain why your organization does not have board-level oversight of this issue area and any plans to address this in the future*
Forests*	Select from: Yes No, but we plan to within the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]
Water*

Requested content

General

For climate change, this data is reported in C1.1.
Consider whether the board and/or board committees take account of forests- and/or water-related issues when reviewing and guiding their business strategy, major plans of action, risk management policies, annual budgets, and budget plans as well as setting the organization’s performance objectives, monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures.
Consider whether the board and/or board committees have oversight of forests- and/or water-related issues in relation to the financial activities undertaken by your organization.

Explain why your organization does not have board-level oversight of this issue area and any plans to address this in the future (column 3)

This column is only presented if a “No” option is selected in column 2.
Provide the main rationale for not currently having board-level oversight of forests- and/or water-related issues.
If applicable, give details of your organization's plans to introduce board-level oversight.

Explanation of terms

Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries/areas use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board”.

(FW-FS1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for forests- and/or water-related issues.

Question dependencies

This question only appears if you select “Yes” to any of the issue areas in FW-FS1.1.

Change from last year

Modified question

Rationale

Being able to specify which board members have responsibility demonstrates the importance of forests- and/or water-related issues to your business.

Ambition: Financial services companies allocate responsibility for forests- and water-related issues to specific board level positions/committees.

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Issue area(s)*	Position of individual(s) or committee(s)	Responsibilities for forests- and/or water-related issues
Select all that apply: Forests Water	Select from: Board Chair Director on board Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operating Officer (COO) Chief Procurement Officer (CPO) Chief Risk Officer (CRO) Chief Sustainability Officer (CSO) Chief Credit Officer (CCO) Chief Investment Officer (CIO) Chief Underwriting Officer (CUO) Chief Government Relations Officer (CGRO) Chief Technology Officer (CTO) General Counsel Other C-Suite Officer President Board-level committee Other, please specify	Text field [maximum 2,500 characters]

[Add row]

Requested content

General

For climate change, this data is reported in C1.1a.
Report where on the board the responsibility for oversight of forests- and/or water-related issues lies. This may be with an individual member of the board or a board-level committee, e.g. sustainability committee, risk committee, etc.
If you have different board-level positions with responsibility for forests- and water-related issues, you may add rows to select the positions and describe responsibility separately.
Note that this question is asking about direct responsibility for oversight. In practical terms, this is the person or committee at the top of the chain of command specifically managing information on forests- and/or water-related issues, making decisions about what the company will do and adapting those decisions based on forests- and/or water-related-related information.
The CEO is ultimately responsible for everything in the company; however, this question is looking to identify board-level responsibility specifically on forests- and/or water-related issues. While this may be the CEO, it is not necessarily always the case.
Note that this question asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.

Position of individual(s) or committee(s) (column 2)

Select the position(s) of the individual(s) on the board responsible for forests- and/or water-related issues. If the position is not listed here, please select the closest match for your organization and provide the position title in column 3.
If oversight falls jointly to the members of a board-level committee, rather than an individual position, you should select “Board-level committee” and provide the name of the committee in column 3.

Responsibilities for forests- and/or water-related issues (column 3)

Indicate the forests- and/or water-related responsibilities of the individual or committee(s).
Provide an example of forests- and/or water-related decisions that the position/committee made or contributed to.
You can use this text field to enter any other relevant information.

Explanation of terms

C-suite: A term used to collectively refer to the most senior executive team.

(FW-FS1.1b) Provide further details on the board’s oversight of forests- and/or water-related issues.

Question dependencies

This question only appears if you select “Yes” to any of the issue areas in FW-FS1.1.

Change from last year

Modified question

Rationale

This question provides an indication of the importance of forests- and/or water-related issues to your business. Investors are interested in organizations’ understanding and approach to forests- and/or water-related risks at the board level; how aligned this is with organizational strategy, plans of action, and management policies; and how the board monitors progress against targets and goals.

Ambition: Forests- and water-related issues are integrated into the mechanisms used by the board to oversee the company.

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

(*dropdown appearance in these columns is dependent on selections in this or other questions)

Issue area(s)*

Frequency with which the issue area(s) is a scheduled agenda item

Governance mechanisms into which this issue area(s) is integrated

Scope of board-level oversight*

Please explain

Select from:

Forests
Water

Select from:

Scheduled – all meetings
Scheduled – some meetings
Sporadic - as important matters arise
Other, please specify

Select all that apply:

Reviewing and guiding strategy
Reviewing and guiding the risk management process
Reviewing and guiding annual budgets
Overseeing major capital expenditures
Overseeing acquisitions, mergers, and divestitures
Reviewing innovation/R&D priorities
Overseeing and guiding employee incentives
Overseeing the setting of corporate targets
Monitoring progress towards corporate targets
Overseeing and guiding public policy engagement
Overseeing value chain engagement
Overseeing and guiding the development of a transition plan
Monitoring the implementation of a transition plan
Overseeing and guiding scenario analysis
Other, please specify

Select all that apply:

Risks and opportunities to our banking activities
Risks and opportunities to our investment (asset management) activities
Risks and opportunities to our investment (asset ownership) activities
Risks and opportunities to our insurance underwriting activities
The impact of our banking activities on forests and/or water security
The impact of our investing (asset management) activities on forests and/or water security
The impact of our investing (asset ownership) activities on forests and/or water security
The impact of our insurance underwriting activities on forests and/or water security

Text field [maximum 3,000 characters]

[Add row]

Requested content

General

For climate change, this data is reported in C1.1b.
Note that your response to this question may refer to the position of employees relevant to board oversight mechanisms. In this case, do not include the name of any individual or any other personal data in your response.
You should add a row for each issue area presented in column 1.

Frequency with which the issue area(s) is a scheduled agenda item (column 2)

You should consider the frequency that forests- and/or water-related issues are a scheduled agenda item for the principal board-level committee having oversight for these issues. This may be a subcommittee of the board, or the full board itself.
If you select “Other, please specify,” provide a label for the frequency with which the issue area is a scheduled agenda item.

Governance mechanisms into which this issue area(s) is integrated (column 3)

Select the mechanisms that are relevant to the governance of this issue area in your organization.

Scope of board-level oversight (column 4)

Activities of a business may be affected by forests- and/or water-related risks and opportunities, as well as contribute to forests- and/or water-related impacts. For financial institutions, these impacts may materialize via the financial products and services offered to its clients, and/or its investments. This column seeks insight on whether an organization’s board considers both:

- How the risks or opportunities presented by forests- and/or water-related issues impact its business; and conversely.
- How its business activities contribute either positively or negatively to forests- and/or water-related impacts.

Please explain (column 5)

Include details such as what forests- and/or water-related issues are scheduled agenda items, who briefs the board and on which matters (e.g. "a report from each Business Head regarding performance against deforestation and/or water security targets is reviewed quarterly.")
Describe the governance mechanisms selected in column 3 and how these mechanisms contribute to the board's oversight of forests- and/or water-related issues. For example, how responsibility for forests- and/or water related policies, strategy and information is delegated and how management is held accountable and/or incentivized for implementation of the organization’s policies.
As much as possible, please give examples from the reporting year.

(FW-FS1.1c) Does your organization have at least one board member with competence on forests- and/or water-related issues?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

Transitioning a business for success in a sustainable future requires related expertise within its decision-making bodies. This capability at board level signals a company’s commitment to understanding and responding to risks, opportunities, and impacts.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions

Issue area(s)

Board member(s) have competence on this issue area

Criteria used to assess competence of board member(s) on this issue area*

Primary reason for no board-level competence on this issue area*

Explain why your organization does not have at least one board member with competence on this issue area and any plans to address this in the future*

Forests*

Select from:

Yes
No, but we plan to address this within the next two years
No, and we do not plan to address this within the next two years
Not assessed

Text field [maximum 2,500 characters]

Select from:

Important but not an immediate priority
Judged to be unimportant, explanation provided
Other, please specify

Text field [maximum 2,500 characters]

Water*

Requested content

General

For climate change, this data is reported in C1.1d.
Indicate whether your board has sufficient competence to assess and manage forests- and/or water-related risks and opportunities.
Note that your response to this question may refer to the position of employees relevant to board-level competence. In this case, do not include the name of any individual or any other personal data in your response.

Primary reason for no board-level competence on this issue area (column 4)

This column is only presented if a “No” option is selected in column 2.
Select the primary reason as to why there is no board-level competence on forests- and/or water-related issues in your organization.
If none of the reasons are applicable to your organization, select “Other, please specify” to provide the primary reason.

Explain why your organization does not have at least one board member with competence on this issue area and any plans to address this in the future (column 5)

This column is only presented if a “No” option is selected in column 2.
If you selected “Judged to be unimportant, explanation provided” in column 4, explain the criteria used to decide that board-level competence on forests- and/or water-related issues is not important for your organization.
Describe any plans to address board-level competence on forests- and/or water-related issues, such as any measures you have implemented to enhance relevant competence of the board.

FW-FS Management responsibility

(FW-FS1.2) Provide the highest management-level position(s) or committee(s) with responsibility for forests- and/or water-related issues.

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

Modified question

Rationale

While it is most important for a member of the board to have responsibility for forests- and/or water-related issues, assigning specific management-level responsibility indicates to CDP data users that the organization is committed to implementing its forests- and/or water-related strategy.

Ambition: Financial services companies allocate management responsibility for forests- and water-related issues to senior roles.

Select all that apply from drop-down options below

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

(*column/row/dropdown appearance is dependent on selections in this or other questions)

Position or committee	Issue area(s)*	Forests- and/or water-related responsibilities of this position*	Coverage of responsibilities*	Reporting line*	Frequency of reporting to the board on forests- and/or water-related issues via this reporting line*	Please explain
1	2	3	4	5	6	7
Select from: Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operating Officer (COO) Chief Procurement Officer (CPO) Chief Risks Officer (CRO) Chief Sustainability Officer (CSO) Chief Investment Officer (CIO) Chief Credit Officer (CCO) Chief Underwriting Officer (CUO) Chief Government Relations Officer (CGRO) Chief Technology Officer (CTO) Other C-Suite Officer, please specify President Risk committee Sustainability committee Safety, Health, Environment and Quality committee Corporate responsibility committee Credit committee General counsel Investment committee Responsible Investment committee Audit committee Other committee, please specify Business unit manager Energy manager Environmental, Health, and Safety manager Environment/Sustainability manager Facility manager Process operation manager Procurement manager Public affairs manager Risk manager Portfolio/Fund manager ESG Portfolio/Fund manager Investment/credit/insurance analyst Dedicated responsible investment analyst Investor relations manager Risk analyst There is no management level responsibility for forests- and/or water-related issues Other, please specify	Select all that apply: Forests Water	Select all that apply from drop-down options below	Select all that apply: Risks and opportunities related to our banking portfolio Risks and opportunities related to our investing (asset management) activities Risks and opportunities related to our investing (asset ownership) activities Risks and opportunities related to our insurance underwriting activities	Select from: Reports to the Board directly CEO reporting line Risk – CRO reporting line Finance – CFO reporting line Investment – CIO reporting line Operations – COO reporting line Corporate Sustainability/CSR – CSO reporting line Other, please specify	Select from: More frequently than quarterly Quarterly Half-yearly Annually Less frequently than annually As important matters arise Not reported to the board	Text field [maximum 3,000 characters]

[Add Row]

Forests- and/or water-related responsibilities of this position (column 3)

Managing annual budgets for forests and/or water security mitigation activities
Managing major capital and/or operational expenditures related to low-carbon products or services (including R&D)
Managing forests- and/or water-related acquisitions, mergers, and divestitures
Providing forests- and/or water-related employee incentives
Developing plans for transition to a deforestation free and/or water secure world
Implementing plans for transition to a deforestation free and/or water secure world
Integrating forests- and/or water-related issues into the strategy
Conducting forests- and/or water-related scenario analysis

Setting forests- and/or water-related corporate targets
Monitoring progress against forests- and/or water-related corporate targets
Managing public policy engagement that may impact the forests and/or water security
Managing value chain engagement on forests- and/or water--related issues
Assessing forests- and/or water-related risks and opportunities
Managing forests- and/or water-related risks and opportunities
Other, please specify

Requested content

General

For climate change, this data is reported in C1.2.
If you have different high management-level positions with responsibility for forests- and water-related issues, you may add rows to select the positions and describe responsibility separately.
Note that this question asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.

Position or committee (column 1)

Select the best match for the position/committee in your organization, or select “Other, please specify” and provide a label for the position/committee.
The list includes senior positions that may sometimes but not always be at board level.
Note that positions already listed in FW-FS1.1a are also listed here; select one of those positions only if the individual has management responsibility for forests- and/or water-related issues.
If there is more than one senior position/committee with management-level responsibility for forests- and/or water-related issues and you would like to describe this, you may use the "Add Row” button. This is optional. In this case, ensure that the position/committee with the highest level of responsibility is in the top row of the table.
If you select “There is no management level responsibility for forests- and/or water-related issues", provide your organization’s rationale for that in column 7 “Please explain”.

Coverage of responsibilities (column 4)

This column only appears if “Assessing forests- and/or water-related risks and opportunities” or “Managing forests- and/or water-related risks and opportunities” selected in column 3.
Select which activities are relevant to the responsibility reported in column 1.

Reporting line (column 5)

This column does not appear if “There is no management level responsibility for forests- and/or water-related issues” is selected in column 1.
Select the best match for the reporting line that oversees the position/committee with responsibility for forests- and/or water-related issues.

Please explain (column 7)

Provide a rationale as to why the forests- and/or water-related responsibilities selected in column 3 have been assigned to this position/committee.
State the processes by which the position/committee is informed of and monitors forests- and/or water-related issues.
Provide further context for the specific responsibilities, duties and actions of this individual/committee.
Indicate which forests- and/or water-related topics are reported to the board with the frequency selected in column 6 “Frequency of reporting to the board on forests- and/or water-related issues via this reporting line”.

Explanation of terms

Highest management-level position(s) or committee(s): The most senior individual or committee with operational responsibility for the implementation of decisions taken at the board level and day-to-day management.

FW-FS Risks and opportunities

FW-FS Risk management processes

(FW-FS2.1) Do you assess your portfolio's exposure to forests- and/or water-related risks and opportunities?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

For financial institutions, deforestation and water insecurity can pose significant challenges and opportunities, now and in the future, via the companies and activities they lend to, invest in and insure in the real economy. When evaluating exposure to forests- and/or water-related risks, organizations in the financial sector should consider the impact on their financial portfolios including banking, investment and/or insurance underwriting activities.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio exposure	We assess our portfolio’s exposure to this issue area	Explain why your portfolio's exposure is not assessed for this issue area and any plans to address this in the future*
Banking – Forests exposure*	Select from: Yes No, but we plan to within the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]
Banking – Water exposure*
Investing (Asset manager) – Forests exposure*
Investing (Asset manager) – Water exposure*
Investing (Asset owner) – Forests exposure*
Investing (Asset owner) – Water exposure*
Insurance underwriting – Forests exposure*
Insurance underwriting – Water exposure*

Requested content

General

For climate change, this data is reported in C-FS2.2b.

Portfolio exposure (column 1)

The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to a financial portfolio’s exposure to forest- or water-related risks and opportunities. Please respond to all rows.

We assess our portfolio’s exposure to this issue area (column 2)

Select "Yes" if you have any process in place for identifying, assessing, and responding to water- and/or forests-related risks and opportunities, regardless of how thorough it is. You will be able to provide further details in the subsequent questions.

Explanation of terms

Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.
Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim
Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.

(FW-FS2.1a) Describe how you assess your portfolio's exposure to forests- and/or water-related risks and opportunities.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS2.1 column 2.

Change from last year

Modified question

Rationale

CDP data users are interested in how much of your organization’s portfolio is assessed for forests- and/or water-related risks, and how thorough the assessment is.

Ambition: Financial services companies assess, quantitatively, their portfolio’s exposure to forests- and/or water-related risks and opportunities.

Response options

Please complete the following table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Portfolio exposure*	Type of risk management process	Proportion of portfolio covered by risk management process	Type of assessment	Time horizon(s) covered	Tools and methods used	% of clients/investees (by number) exposed to substantive risk	% of clients/investees (by portfolio exposure) exposed to substantive risk	Provide the rationale for implementing this process to assess your portfolio's exposure to forests- and/or water-related risks and opportunities
0	1	2	3	4	5	6	7	8
Banking – Forests exposure	Select from: Integrated into multi-disciplinary company-wide risk management process A specific ESG-related risk management process	Percentage field [enter a number from 0-100]	Select from: Qualitative only Quantitative only Qualitative and quantitative	Select all that apply: Short-term Medium-term Long-term None of the above/ Not defined	Select all that apply: Corporate Bond Water Credit Risk Analysis Tool Drought Stress Testing Tool ENCORE Environmental Justice Atlas External consultants Global Forests Watch Pro Internal tools/methods Investor Water Toolkit Risk models Scenario analysis Stress tests Sustainability Policy Transparency Toolkit (SPOTT) Trase Finance WRI Aqueduct WWF Water Risk Filter UNEP FI Portfolio Impact Analysis Tool for Banks UNEP FI Corporate Impact Analysis Tool Other, please specify	Percentage field [enter a number from 0-100]	Percentage field [enter a number from 0-100]	Text field [maximum 5,000 characters]
Banking – Water exposure
Investing (Asset manager) – Forests exposure
Investing (Asset manager) – Water exposure
Investing (Asset owner) – Forests exposure
Investing (Asset owner) – Water exposure
Insurance underwriting – Forests exposure
Insurance underwriting – Water exposure

[Fixed row]

Requested content

General

For climate change, this data is reported in C-FS2.2c.

Portfolio exposure (column 0)

The rows presented in this table depend on your response to FW-FS2.1.
Respond to all rows individually.

Proportion of portfolio covered by risk management process (column 2)

For each of your portfolios, disclose the proportion of the portfolio covered by a risk management process.
Coverage by portfolio value can be based on either total or outstanding commitments, premiums, and/or committed capital.

Type of assessment (column 3)

Disclose whether the assessment is qualitative, quantitative, or both.

- Qualitative assessment is descriptive and may include stakeholder involvement, meetings, interviews, and analysis of scenario impacts or descriptive risk matrices.
- Quantitative assessment is expressed in numbers and involves indicators, indices, variables and metrics such as probabilistic or stochastic risk modelling considering frequency and severity of events.

Time horizon(s) covered (column 4)

Choose all the time horizons that are considered in your forest- and/or water-related risk assessment. For example, if you only consider risks that may impact your business in the short term, in line with your definition of time horizons provided in C2.1a, you should select “short-term” here. Or, if you consider, short-term, medium-term and long-term horizons, select all three.
In case none of the time horizons provided in C2.1a are covered by this risk management process, select “None of the above/ Not defined”.

Tools and methods used (column 5)

Select which tools and methodologies you use to assess your portfolio’s exposure to forests and/or water-related risks:

- Corporate Bond Water Credit Risk Analysis Tool: enables users to integrate financial risk exposure to water scarcity into standard financial models used to assess the credit strengths of corporates across water-intensive sectors including power utilities, beverages and mining.
- Drought Stress Testing Tool: allows financial institutions to see how incorporating drought scenarios changes the perception of risk in their own loan portfolios, based on the catastrophe modelling framework (UNEP).
- ENCORE: identifies business risks arising from economic dependencies on natural capital (NCFA, Global Canopy, UN).
- Environmental Justice Atlas: documents and catalogues social conflict around environmental issues.
- Global Forests Watch Pro: delivers critical decision-making analysis at the property, supply shed and portfolio levels.
- Investor Water Toolkit: supports the evaluation of water risks in investment portfolios, and includes links to other resources, data bases, case studies and tools (Ceres).
- Risk models: computerized systems, such as catastrophe models, used to assess and quantify the financial impact of a range of potential future disasters.
- Stress tests: process of evaluating a number of statistically defined possibilities to determine the most damaging combination of events, and the loss they would produce. The likelihood of such an event is then assessed.
- Sustainability Policy Transparency Toolkit (SPOTT): supports the finance sector and supply chain stakeholders to manage environmental, social and governance (ESG) risks by publishing transparency assessments of soft commodity producers and traders.
- Trase Finance: enables financial institutions to understand and mitigate their exposure to deforestation in their portfolios and allow civil society and governments to better hold to account those failing to act.
- UNEP FI Corporate Impact Analysis Tool: enables users to perform a holistic analysis of companies, based on the reality of those companies’ business activities and the needs of the countries/areas in which they operate, whether for sourcing, production or sales.
- UNEP FI Portfolio Impact Analysis Tool for Banks: helps banks analyze the impacts associated with their retail (consumer and business banking) and wholesale (corporate and investment banking) portfolios.
- WRI Aqueduct: is a customizable global atlas used to evaluate how water risk (and water stress) may affect operations (at watershed level). The global map can be tailored specifically for nine water-intense industry sectors including Oil & Gas, Agriculture and Chemicals.
- WWF Water Risk Filter: is an online tool for company-level mapping and evaluation of (basin) water risks, including water scarcity.

If you use a tool or methodology that is not in the list, select “Other, please specify” and provide a label.

% of clients/investees (by number) exposed to substantive risk (column 6)

For each of your portfolios with forests and/or water exposure, give the proportion of client/investees who are exposed to substantive risk, as a percentage of the total number of clients/investees within this portfolio.
Leave the field blank if you do not know the proportion.

% of clients/investees (by portfolio exposure) exposed to substantive risk (column 7)

For each of your portfolios with forests and/or water exposure, give the proportion of client/investees who are exposed to substantive risk, as a percentage of the total value of this portfolio.
Leave the field blank if you do not know the proportion.

Provide the rationale for implementing this process to assess your portfolio's exposure to forests- and/or water-related risks and opportunities (column 8)

Provide reasons for why you implemented this specific process to assess your portfolio’s exposure to forests- and/or water-related risks and opportunities.
You may also describe the advantages and disadvantages of the process chosen.
Explain how you defined and calculated the proportion of the portfolio covered by your risk management process.

(FW-FS2.2) Does your organization consider forests- and/or water-related information about clients/investees as part of its due diligence and/or risk assessment process?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

Considering forests- and/or water-related information about clients/investees in the initial phases of risk assessment, and/or as part of a due diligence processes is important for understanding risk exposure.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio and issue area the information relates to	We consider forests- and/or water-related information	Explain why information related to this issue area is not considered and any plans to address this in the future*
Banking – Forests-related information*	Select from: Yes No, but we plan to do so within the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]
Banking – Water-related information*
Investing (Asset manager) – Forests-related information*
Investing (Asset manager) – Water-related information*
Investing (Asset owner) – Forests-related information*
Investing (Asset owner) – Water-related information*
Insurance underwriting – Forests-related information*
Insurance underwriting – Water-related information*

Requested content

General

For climate change, this data is reported in C-FS2.2d.
For each of your financial portfolios, disclose whether you consider forests- and/or water-related information about your clients/investees as part of your screening, risk assessment and/or due diligence process.
Incorporating forests- and/or water-related information into business processes can take many forms. This assessment is dependent on the organization’s client/investees base and scale of business.
Banks:

- Incorporating clients’ forests- and/or water-related information in borrower and deal-level credit risk and other pre-lending assessments such as due diligence and “know your client” processes.
- For the purpose of this question focus on your commercial/corporate clients.

Asset managers:

- Incorporating investees’ forests- and/or water-related information in fund allocation and investment risk assessment processes.

Insurance companies:

- Incorporating policyholders’ forests- and/or water-related information in insurance underwriting due diligence processes.

Portfolio and issue area the information relates to (column 1)

The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to one area where forests- and/or water-related information about clients/investees are considered as part of your due diligence and/or risk assessment process. Please respond to all rows

We consider forests- and/or water-related information (column 2)

Select "Yes" if you have any process in place for considering forests- and/or water-related information about clients/investees as part of your due diligence and/or risk assessment process, regardless of how thorough it is. You will be able to provide further details in the subsequent questions.

Explanation of terms

Due diligence: Research or investigation performed by the financial services company before entering into an agreement or a financial transaction with another party.
Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(FW-FS2.2a) Indicate the forests- and/or water-related information your organization considers about clients/investees as part of your due diligence and/or risk assessment process, and how this influences decision making.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS2.2 Column 2.

Change from last year

Modified question

Rationale

Data users are interested in what information financial services companies consider, about which clients/investees, and whether that is enough for them to make informed lending, investment and/or insurance underwriting decisions and mitigate environment-related risks within their portfolio(s).

Ambition: Forests- and/or water-related information about clients/investees influences decision making.

Response options

Please complete the following table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Portfolio and issue area the information relates to*	Type of information considered*	Process through which information is obtained	Industry sector(s) covered by due diligence and/or risk assessment process	State how these forests- and/or water-related information influences your decision making
0	1	2	3	4
Banking – Forests-related information	Select all that apply: Scope and content of forests policy [F] Commitment to eliminate deforestation/conversion of other natural ecosystems [F] Forests risk commodity volumes [F] Certification of forests risk commodities [F] Proportion of forest risk commodity volumes in compliance with no deforestation/conversion [F] Traceability of forest risk commodities [F] Origin of forest risk commodities [F] Scope and content of water policy [W] Water withdrawal and/or consumption volumes [W] Water withdrawn from water stressed areas [W] Water discharge treatment data [W] Breaches to local water regulations [W] Impingements on the human right to water in communities [W] Access to WASH in the workplace [W] Other, please specify	Select all that apply: Directly from the client/investee From an intermediary or business partner Data provider Public data sources Other, please specify	Select all that apply: Energy Materials Capital Goods Commercial & Professional Services Transportation Automobiles & Components Consumer Durables & Apparel Consumer Services Retailing Food & Staples Retailing Food, Beverage & Tobacco Household & Personal Products Health Care Equipment & Services Pharmaceuticals, Biotechnology & Life Sciences Software & Services Technology Hardware & Equipment Semiconductors & Semiconductor Equipment Telecommunication Services Media & Entertainment Utilities Real Estate Other, please specify	Text field [maximum 2,500 characters]
Banking – Water-related information
Investing (Asset manager) – Forests-related information
Investing (Asset manager) – Water-related information
Investing (Asset owner) – Forests-related information
Investing (Asset owner) – Water-related information
Insurance underwriting – Forests-related information
Insurance underwriting – Water-related information

[Fixed row]

Requested content

General

For climate change, this data is reported in C-FS2.2e.

Portfolio and issue area the information relates to (column 0)

The rows presented in this table depend on your response to FW-FS2.2.
Respond to all rows individually.

Type of information considered (column 1)

Select which type of forest- and/or water-related information you consider as part of your screening, risk assessment and/or due diligence process.

- Scope and content of forests policy refers to a statement by a portfolio organization specifying the goals or targets that it intends to meet or the actions it intends to take in regards to its management of forest-related issues.
- Commitment to eliminate deforestation/conversion of other natural ecosystems refers to a company committing to no deforestation and no conversion of natural ecosystems

- Deforestation: loss of natural forest as a result of the following human activities: i) conversion to agriculture or other non-forest land use; ii) conversion to a tree plantation; or iii) severe and sustained degradation
- Conversion: human-induced change of a natural ecosystem to another land use or profound change in the natural ecosystem’s species composition, structure, and/or function.

- Forests risk commodity volumes are the total volumes of FRC’s produced or consumed by the portfolio company.
- Certification of forests risk commodities is when a certification process is carried out by an independent organization to ensure environmental and social criteria have been met.
- Proportion of forest risk commodity volumes in compliance with no deforestation/conversion refers to how much of the total forest risk commodity volume produced or consumed by the portfolio company can be verified as in compliance with no deforestation/conversion
- Traceability of forest risk commodities is the ability to follow a product or its components through stages of the supply chain (e.g., production, processing, manufacturing, and distribution).
- Origin of forest risk commodities considers the supply base of a given commodity and refers to information about where the forests risk commodity(ies) are grown, harvested or reared.
- Scope and content of water policy refers to a statement of an organization’s water-related commitments, and the actions that will achieve them.
- Water withdrawal and/or consumption volumes

- Water withdrawal: The sum of all water drawn into the boundaries of an organization from all sources for any use over the course of a reporting period.
- Water consumption: The amount of water that is drawn into the boundaries of an organization and not discharged back to the water environment or a third party over the course of a reporting year.

- Water withdrawn from water stressed areas refers to areas which do not meet human and ecological demands for fresh water. Compared to scarcity, “water stress” is more inclusive, considering physical scarcity, water quality, and the accessibility of water (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").
- Water discharge treatment data informs on the quality of effluents and other water leaving the boundaries of an organization and released to surface water, groundwater, or third parties.
- Breaches to local water regulations refers to failures in observing water regulations, which aim to prevent overuse, contamination and other detrimental activities.
- Impingements on the human right to water in communities refers water withdrawals, consumption or discharges which limit the water availability for local communities due to quantity or quality factors.
- Access to WASH in the workplace refers to water, sanitation, and hygiene services.

If you consider forests- and/or water-related information that is not in the list, select “Other, please specify” and provide a label

Process through which information is obtained (column 2)

Select how you obtain environment-related information about clients/investee companies. This information could either be requested from the client/investee directly or gathered from other data sources.

Industry sector(s) covered by due diligence and/or risk assessment process (column 3)

Select which industry sector(s) the clients/investees that you consider forests- and/or water-related information about operate in.

State how these forests- and/or water-related information influences your decision making (column 4)

Describe how you use the information you consider and if it has any bearing on the outcomes of due diligence or risk assessment processes.

Explanation of terms

Certification: the action or process of providing a product with an official document attesting to a status or level of achievement against a certain standard.
Due diligence: Research or investigation performed by the financial services company before transacting with another party.
No-conversion ("or conversion-free"): commodity production, sourcing, or financial investments in commodities that do not cause or contribute to the conversion of natural ecosystems (AFi, 2019).
No-deforestation ("or deforestation-free"): commodity production, sourcing, or financial investments that do not cause or contribute to deforestation (AFi, 2019).
Traceability: the ability to follow a product or its components through stages of the supply chain (e.g., production, processing, manufacturing, and distribution) (AFi, 2019).

FW-FS Risk disclosure

(FW-FS2.3) Have you identified any inherent forests- and/or water-related risks in your portfolio with the potential to have a substantive financial or strategic impact on your business?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

CDP data users are interested in learning whether your organization has knowledge at the corporate level of any substantive forests- and/or water-related risks in your portfolio(s).

Providing information about inherent risk exposure rather than residual risk allows data-users to consider the potential impact and the appropriateness of your organization’s response.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area(s)	Risks identified for this issue area	Primary reason why your organization has not identified any substantive risks for this issue area*	Explain why your organization has not identified any substantive risks for this issue area*
Forests*	Select from: Yes No	Select from: Risks exist, but none with the potential to have a substantive financial or strategic impact on business Evaluation in process Not yet evaluated Other, please specify	Text field [maximum 2,500 characters]
Water*

Requested content

General

For climate change, this data is reported in C2.3.
Please indicate if you have identified any inherent forest- and/or water-related risks.
For the purposes of this response, the risks reported should only be those which:

For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your banking, investing and/or insurance underwriting activities. Further details can be provided in subsequent questions.

Explanation of terms

Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.

(FW-FS2.3a) Provide details of forests- and/or water-related risks in your portfolio with the potential to have a substantive financial or strategic impact on your business.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS2.3 column 2.

Change from last year

Minor change

Rationale

Your response to this question provides data users with the details of the inherent risks posed to your organization by forests- and/or water-related issues within your portfolio, and also the estimated potential financial impact of these risks at the corporate level and your response to these risks.

Ambition: Financial services companies understand the forests- and/or water-related risks in their portfolio with the potential to have a substantive financial or strategic impact on their business.

Response options

Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Identifier	Portfolio where risk driver occurs*	Issue area risk relates to*	Risk type	Primary risk driver	Primary potential financial impact	Risk type mapped to traditional financial services industry risk classification
1	2	3	4a	4b	5	6
Select from: Risk1 - Risk100	Select from: Banking (Bank) portfolio Investing (Asset manager) portfolio Investing (Asset owner) portfolio Insurance underwriting (Insurance company) portfolio	Select from: Forests Water	Select from: Current regulation Emerging regulation Legal Technology Market Reputation Acute physical Chronic physical	Select from drop-down options below	Select from drop-down options below	Select from: Capital adequacy and risk-weighted assets Liquidity risk Funding risk Market risk Credit risk Insurance risk Reputational risk Policy and legal risk Systemic risk Operational risk Strategic risk Other non-financial risk None

Company-specific description	Time horizon	Likelihood	Magnitude of impact	Are you able to provide a potential financial impact figure?
7	8	9	10	11
Text field [maximum 2,500 characters]	Select from: Short-term Medium-term Long-term Unknown	Select from: Virtually certain Very likely Likely More likely than not About as likely as not Unlikely Very unlikely Exceptionally unlikely Unknown	Select from: High Medium-high Medium Medium-low Low Unknown	Select from: Yes, a single figure estimate Yes, an estimated range No, we do not have this figure

Potential financial impact figure (currency)	Potential financial impact figure - minimum (currency)	Potential financial impact figure - maximum (currency)	Explanation of financial impact figure	Cost of response to risk	Description of response and explanation of cost calculation	Comment
12	13	14	15	16	17	18
Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Text field [maximum 2,500 characters]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add row]

Primary risk driver (column 4b)

Select one of the following options:

Current regulation

Mandates on and regulation of existing products and services [F, W]
Lack of mature certification and sustainability standards for forest risk commodities [F]
Lack of enforcement of current regulation [F]
Land tenure regulations and uncertainty involving land ownership and occupancy rights [F]
Increased difficulty in obtaining withdrawals/operations permit [W]
Moratoria and voluntary agreements [F, W]
Higher water prices [W]
Other, please specify

Emerging regulation

Mandates on and regulation of existing products and services [F, W]
Lack of mature certification and sustainability standards for forest risk commodities [F]
Land tenure regulations and uncertainty involving land ownership and occupancy rights [F]
Increased difficulty in obtaining withdrawals/operations permit [W]
Moratoria and voluntary agreements [F, W]
Higher water prices [W]
Regulatory uncertainty (F,W)
Other, please specify

Legal

Exposure to litigation and/or sanctions [F, W]
Uncertainties around legality of forests risk commodities produced or consumed by clients [F]
Lending that could create or contribute to systemic risk for the economy [F, W]
Investing that could create or contribute to systemic risk for the economy [F, W]
Insurance underwriting that could create or contribute to systemic risk for the economy [F, W]
Other, please specify

Technology

Limited access to sustainable techniques of forest risk commodity production [F]
Substitution of existing products with lower water impact options [W]
Unsuccessful investment in new technologies [W]
Other, please specify

Market

Changing customer behavior [F, W]
Uncertainty in market signals [F, W]
Increased cost of raw materials, including forest risk commodities [F]
Availability of affordable certified sustainable forest risk commodities [F]
Inability to attract co-financiers and/or investors into deals due to forests- and/or water-related issues [F, W]
Loss of clients due to a fund’s poor environmental performance outcomes [F, W]
Contraction of insurance markets, leaving clients exposed and changing the risk parameters of the credit [F, W]
Rise in risk-based pricing of insurance policies (beyond demand elasticity) [F, W]
Other, please specify

Reputation

Shifts in consumer preferences [F, W]
Stigmatization of sector in which your clients/investees operate [F, W]
Increased stakeholder concern or negative stakeholder feedback [F, W]
Lending that could create or contribute to systemic risk for the economy [F, W]
Investing that could create or contribute to systemic risk for the economy [F, W]
Insurance underwriting that could create or contribute to systemic risk for the economy [F, W]
Negative media coverage related to financing/insuring of projects or activities with negative impacts on forests [F]
Negative media coverage related to financing/insuring of projects or activities with negative impacts on water [W]
Community opposition [F, W]
Inadequate access to water, sanitation, and hygiene services [W]
Other, please specify

Acute physical

Avalanche
Cold wave/frost
Cyclone, hurricane, typhoon
Drought
Flood (coastal, fluvial pluvial, groundwater)
Glacial lake outburst
Heat wave
Heavy precipitation (rain, hail, snow/ice)
Landslide
Pollution incident
Storm (including blizzards, dust and sandstorms)
Subsidence
Tornado
Wildfire
Other, please specify

Chronic physical

Changing precipitation patterns and types (rain, hail, snow/ice)
Changing temperature (air, freshwater, marine water)
Changing wind patterns
Change in land-use
Coastal erosion
Declining water quality
Deforestation
Ecosystem vulnerability
Groundwater depletion
Heat stress
Inadequate infrastructure
Increased levels of plastic in freshwater bodies
Leaching of pollutants into freshwater bodies
Ocean acidification
Permafrost thawing
Poorly managed sanitation
Precipitation and/or hydrological variability
Saline intrusion
Sea level rise
Soil degradation
Soil erosion
Solifluction
Temperature variability
Water scarcity
Water stress
Other, please specify

Primary potential financial impact (column 5)

Select one of the following options:

Increased direct costs
Increased indirect (operating) costs
Increased capital expenditures
Increased credit risk
Increased insurance claims liability
Requirement to hold increased amounts of regulatory capital
Decreased revenues due to reduced demand for products and services
Decreased revenues due to reduced production capacity
Decreased access to capital
Fewer client deposits resulting in reduced sources of funding
Decreased asset values or asset useful life leading to write-offs, asset impairment or early retirement of existing assets
Reduced profitability of investment portfolios
Devaluation of collateral and potential for stranded, illiquid assets
Other, please specify

Requested content

General

For climate change, this data is reported in C2.3a.
For the purposes of this response, the risks reported should only be those which potentially pose substantive impacts to your business operations, revenue, or expenditure, regardless of whether or not the company has taken action to mitigate the risk(s).
Both physical and transition risks in your lending, investing and/or insurance underwriting activities should be considered, including the risk of stranded assets. These are assets that are no longer economically viable as a result of forests- and/or water-related transition or physical risks.
Banks:

- should consider disclosing their forest- and/or water-related risks (transition and physical) in their lending and other financial intermediary activities.

Asset owners/Asset managers:

- should consider forest- and/or water-related risks for each product or investment strategy.

Insurance companies:

- should consider forest- and/or water-related risks on re-/insurance portfolios by geography, business division, or product segments, including the following risks:

- Physical risks from changing frequencies and intensities of weather-related perils;
- Transition risks resulting from a reduction in insurable interest due to a decline in value, changing costs, or implementation of regulation; and
- Liability risks that could intensify due to a possible increase in litigation. For example, the risk of an increase in claims for defense costs in relation to directors and officers (D&O) liability.

- Additionally, as an asset owner, please also describe the forest- and/or water-related risks relevant to your investment portfolio.

Portfolio where risk driver occurs (column 2)

The options shown will be driven by the organizational activities you selected in C-FS0.7
Select the portfolio where the forests- and/or water-related risk occurs.

Issue area risk related to (column 3)

Select whether the risk is related to forests or related to water. Some of the primary risk driver options are specific to one or the other; however, others could be either, therefore CDP requires you to indicate.
As an illustrative example, if you face an inherent reputational risk of negative media coverage related to your lending, investing or insurance underwriting:

- This would be forests-related if the risk is driven by the lending, investment, insurance you provide to companies responsible for deforestation.
- This would be water-related if the risk is driven by the lending, investment and/or insurance you provide to companies responsible for water pollution.

Risk type (column 4a)

See explanation of terms for definitions of risk types.
Note that a selection must be made for both column 4a and column 4b. Your data will not be saved if either column is left blank.

Primary risk driver (column 4b)

Risk driver describes the source of the risk and will depend on the risk type chosen in column 4. Select an option that best describes the primary risk driver of the identified risk from the drop-down menu.
Note that a selection must be made for both column 4a and column 4b. Your data will not be saved if either column is left blank.

Primary potential financial impact (column 5)

This column refers to the potential financial impact that the risk could have on your organization. The financial impacts of forests- and/or water-related issues on organizations are not always clear, and for many organizations there might be more than one financial impact associated with a forests- and/or water-related risk. Select the option from the drop-down menu that you evaluate as having the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 15).

Risk mapped to traditional financial services industry risk classification (column 6)

In this column consider how forests- and/or water-related risks fit into your already existing organizational risk framework.
If an identified risk maps to multiple industry risk classifications, you should select what you consider to be the primary classification.

Company specific description (column 7)

Provide further contextual information on the risk driver, including more detail on the exact nature, location and/or regulation of the effect concerned, as well as any notable examples.
Be sure to include company-specific detail, such as references to activities, portfolios, products or services specific to your company’s business.

Time horizon (column 8)

Select the time horizon the potential impact could materialize over.
Use the definitions of short-, medium- and long-term you provided in response to C2.1a.

Likelihood (column 9)

Likelihood refers to the probability of the inherent impact occurring within the time horizon reported in column 8. In the case of an inherent risk, the probability of the impact might be similar to the probability of the risk event (the risk driver) itself.
Likelihood of the impact occurring along with the magnitude of the impact are the building blocks for quantifying and prioritizing risk.
The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 report and are consistent across all CDP information requests.
As a guide to quantifying likelihood on a % basis, we suggest:

- Virtually certain (greater than 99% probability);
- Very likely (greater than 90% probability);
- Likely (greater than 66% probability);
- More likely than not (greater than 50% probability);
- About as likely as not (between 33% and 66% probability);
- Unlikely (less than 33% probability);
- Very unlikely (less than 10%);
- Exceptionally unlikely (less than 1% probability);
- Unknown.

Magnitude of impact (column 10)

The magnitude describes the extent to which the impact, if it occurred, would affect your business. You should consider the business as a whole. This means that the potential magnitude of the impact can be a combination of the scale of the damage and your organization’s state of resilience prior to responding to the risk.
As it is not possible for CDP to accurately define terms for magnitude of impact, companies are asked to determine and report magnitude using a qualitative 5 point scale from High to Low. Factors to consider when classifying the magnitude of the impact on your organization include:

- The proportion of business units affected;
- The size of the impact on those business units;
- The dependency of the company on those units;
- The potential for shareholder or customer concern.

An impact could have a relatively high magnitude for the company as a whole because of a large effect in one of these aspects or small effects in all four combining to create a larger impact.
If the financial impact has not been assessed by your organization, please select ‘Unknown’.

Are you able to provide a potential financial impact figure? (column 11)

Your selection will determine whether columns 12, 13 and 14 will be presented.
It is acknowledged that these figures will be estimates.
If you are unable to provide a figure or an estimated range for financial impact, you may use column 15 “Explanation of financial impact” to provide a description of the impact in relative terms; for example, as a percentage relative to a stated or publicly available figure, or give a qualitative estimate of the financial impact.

Potential financial impact figure (currency) (column 12)

This column is relevant if you selected “Yes, a single figure estimate” in column 11
Provide a single figure for the inherent financial impact of the risk (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4.

Potential financial impact figure – minimum/maximum (currency) (columns 13, 14)

These columns are relevant if you selected “Yes, an estimated range” in column 11
Provide the estimated range for the inherent financial impact (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4.
Potential financial impact figure – minimum (currency): Use this field to report the lower point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘5,000’ should be reported here.
Potential financial impact figure – maximum (currency): Use this field to report the upper point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘50,000’ should be reported here.

Explanation of financial impact (column 15)

Use this field to explain the figure(s) provided in 'Potential financial impact' (columns 12, 13, 14).
Describe how you arrived at this figure (or range), including:

- What approach was employed to calculate the figure;
- Any assumptions the figure is dependent on;
- The likely timescale for the financial impact.

If 'No, we do not have this figure' was selected in column 11, use this column to provide a description of the financial impact in the relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.

Cost of response to risk (column 16)

Provide a quantitative figure for the cost of your risk response actions. If there are no costs to responding to the risk, enter '0'. If the value you have reported is an estimate, please state this in column 17 (“Description of response and explanation of cost calculation”).
This figure should be in the same currency that you selected for all financial information disclosed throughout your response in C0.4.

Description of response and explanation of cost calculation (column 17)

Provide details of your organization’s response to mitigate, control, transfer or accept the risk.
Include an example of company-specific risk response actions (activities, projects, products and/or services).
Provide an explanation of how the figure for the cost of managing the risk (in column 16) was calculated, including the figures used in your calculation.

Explanation of terms

Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
Transition risks:

- Current and emerging regulation: Policy developments that attempt to constrain actions that contribute to the adverse effects of deforestation or degradation of water security. Alternatively, policy developments that seek to promote adaptation and resilience to forest- and/or water-related issues.
- Technology: All risks associated with technological improvements or innovations that support the transition to a deforestation-free, water secure economic system.
- Legal: All forests- and/or water-related litigation claims.
- Market: All shifts in supply and demand for certain commodities, products, and services.
- Reputation: All risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a deforestation-free, water secure future.

Physical risks:

- Acute: Risks that are event-driven, including increased severity of extreme weather events, such as hurricanes, wildfires or floods.
- Chronic: Risk driven by long-term changes, such as changing precipitation patterns, declining water quality, or land-use change.

Access to capital: Capital investments provide sources of funding other than those resulting from a bank’s products and services. This includes equity and debt capital from investors and capital raised in the money markets.
Capital expenditure: A measure of the value of purchases of fixed assets such as property, buildings, technology or equipment. Put differently, Capital expenditure is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
Regulatory capital: Capital requirements are standardized regulations in place for financial institutions that determine how much liquid capital (that is, easily sold securities) must be held vis-a-vis a certain level of their assets.
Revenue: Income arising in the course of an entity’s ordinary activities - before deducting costs for the goods/services sold and operating expenses to arrive at profit (adapted from the International Financial Reporting Standard).
Stranded assets: Assets which, at some point prior to the end of their economic life, are no longer able to earn an economic return as a result of changes associated with the transition to a deforestation-free, water secure economy.
Traditional financial services industry risk classification:

- Capital adequacy and risks weighted assets: refers to the minimum amount of capital that must be held by financial institutions in order to reduce the risk of insolvency.
- Liquidity risk: occurs when a financial institution cannot meet its short-term debt obligations.
- Funding risk: refers to the risk associated with the impact on a project's cash flow from higher funding costs or lack of availability of funds
- Market risk: refers to the possibility of loss resulting from an adverse movement in asset prices
- Credit risk: refers the possibility of a loss resulting from a counterparty’s failure to repay a loan or meet contractual obligations.
- Insurance risk: refers to the possibility of loss resulting from an event(s) that triggers the insurer to pay (a) claim(s)
- Reputational risk: refers to the risk for negative public perception or to the potential of uncontrollable events to have an impact on a company's reputation
- Policy and legal risk: refers to the possibility that legal action will be taken because of an individual's or corporation's actions, inaction, products, services, or other events
- Systemic risk: the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy
- Operational risk: refers to the possibility of loss resulting from failed processes, systems, human error or outside influences

FW-FS Opportunity disclosure

(FW-FS2.4) Have you identified any inherent forests- and/or water-related opportunities in your portfolio with the potential to have a substantive financial or strategic impact on your business?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

Modified guidance

Rationale

In addition to risk, the transition to a sustainable economy presents opportunities. Achieving a 1.5-degree, deforestation-free, water-secure world will require massive investment in low carbon technologies, sustainable agricultural and water management practices. Only the financial sector can provide this. CDP data users wish to know whether your organization has identified any substantive forests- and/or water-related opportunities in your portfolio(s).

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issues area(s)	Opportunities identified for this issue area	Primary reason why your organization has not identified any substantive opportunities for this issue area*	Explain why your organization has not identified any substantive opportunities for this issue area*
Forests*	Select from: Yes No	Select from: Opportunities exist, but we are unable to realize them Opportunities exist, but none with the potential to have a substantive financial or strategic impact on business Evaluation in process Judged to be unimportant Not yet evaluated Other, please specify	Text field [maximum 2,500 characters]
Water*

Requested content

General

For climate change, this data is reported in C2.4.
Indicate if you have identified any inherent forest- and/or water-related opportunities.
The opportunities may:

- be commercial or operational in nature
- bring direct financial benefits
- bring other kinds of benefits, such as policy influence, strengthening of reputation, or reduced environmental impact
- also be of benefit to others; for example through stewardship or collective action programs that address shared risks or aim for no deforestation/conversion or water security.

For the purposes of this response, the opportunities reported should be inherent and have the potential for substantive impacts on your banking, investing and/or insurance underwriting activities. Further details can be provided in subsequent questions.
Please note you may include opportunities which are:

- Currently being experienced or which you expect to arise in the future
- Being managed or newly identified
- Well understood or with high levels of uncertainty with regard to the likelihood of the opportunity materializing and the extent to which it will impact the business.

Explain why your organization has not identified any substantive opportunities for this issue area (column 4)

State your company-specific reasons for not identifying any such opportunities.

Explanation of terms

Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.
Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.

(FW-FS2.4a) Provide details of forests- and/or water-related opportunities in your portfolio with the potential to have a substantive financial or strategic impact on your business.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS2.4 column 2.

Change from last year

Minor change

Rationale

Your response to this question will provide CDP data users with details of the opportunities presented to your organization by forests- and/or water-related issues, and also the estimated potential scale of these opportunities at the corporate level and your response to realize these opportunities.

Ambition: Financial services companies understand the forests- and/or water-related opportunities in their portfolio with the potential to have a substantive financial or strategic impact on their business.

Response options

Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.

(*dropdown appearance in this column is dependent on selections in this or other questions)

Identifier	Portfolio where opportunity occurs*	Issue area opportunity relates to*	Opportunity type	Primary opportunity driver	Primary potential financial impact
1	2	3	4a	4b	5
Select from: Opp1 - Opp100	Select from: Banking (Bank) portfolio Investing (Asset manager) portfolio Investing (Asset owner) portfolio Insurance underwriting (Insurance company) portfolio	Select from: Forests Water	Select from: Products and services Markets Resilience Reputation	Select from drop-down options below	Select from drop-down options below

Company-specific description	Time horizon	Likelihood	Magnitude of impact	Are you able to provide a potential financial impact figure?
6	7	8	9	10
Text field [maximum 2,500 characters]	Select from: Short-term Medium-term Long-term Unknown	Select from: Virtually certain Very likely Likely More likely than not About as likely as not Unlikely Very unlikely Exceptionally unlikely Unknown	Select from: High Medium-high Medium Medium-low Low Unknown	Select from: Yes, a single figure estimate Yes, an estimated range No, we do not have this figure

Potential financial impact figure (currency)	Potential financial impact figure - minimum (currency)	Potential financial impact figure - maximum (currency)	Explanation of financial impact figure	Cost to realize opportunity	Strategy to realize opportunity and explanation of cost calculation	Comment
11	12	13	14	15	16	17
Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Text field [maximum 2,500 characters]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]

[Add row]

Primary opportunity driver (column 4b)

Select one of the following options:

Products and services

Development and/or expansion of financing products and solutions supporting sustainable forest risk commodity supply chains [F]
Development and/or expansion of financing products and solutions supporting landscape and jurisdictional approaches
Development and/or expansion of financing products and solutions supporting water security [W]
Ability to diversify business activities
Shift in consumer preferences
Reputational benefits resulting in increased demand for products and services
Other, please specify

Markets

Access to new markets
Use of public-sector incentives
Access to new assets and locations needing insurance coverage
Increased diversification of financial assets
Reduced risk of asset stranding considered in investment decision making
More timely preparation for investors in adhering to current and potentially stricter future regulation in relation to fiduciary duty
Increased demand for funds that invest in companies that have positive environmental credentials
Enhanced financial performance of investees as a result of being able to access new markets and develop new products to meet environmental consumer demand
The development of new revenue streams from new/emerging environmental markets and products
Improved ratings by sustainability/ESG indexes
Increased demand for certified forest risk commodities [F]
Increased demand for low water impact products and services [W]
Other, please specify

Resilience

Resource substitutes/diversification
New products and services related to ensuring resiliency
New significant infrastructure investments [W]
Other, please specify

Reputation

Reputational benefits of sector in which our clients/investees operate
Positive stakeholder feedback
Positive media coverage related to financing/insuring of projects or activities with positive impacts on forests [F]
Positive media coverage related to financing/insuring of projects or activities with positive impacts on water [W]
Other, please specify

Primary potential financial impact (column 5)

Select one of the following options:

Reduced direct costs
Reduced indirect (operating) costs
Reduced credit risk
Requirement to hold reduced amounts of regulatory capital
Increased revenues resulting from increased demand for products and services
Increased revenues through access to new and emerging markets
Increased revenues resulting from increased production capacity
Increased access to capital
More client deposits resulting in increased sources of funding
Increased value of fixed assets
Increased diversification of financial assets
Increased portfolio value due to upward revaluation of assets
Other, please specify

Requested content

General

For climate change, this data is reported in C2.4a.
For the purposes of this response, the opportunities identified should only be those which may pose substantive impacts in your business operations, revenue, or expenditure.
Consider opportunities associated with financial products and services such as green and blue bonds, sustainable infrastructure, sustainable loans/mortgages, sustainable insurance products, products and services ensuring resiliency, specialty forests- and/or water-related risk advisory services and others, or opportunities your clients/investees are exploiting that have a positive impact on your portfolio (e.g. clients reducing costs through water efficiency resulting in less credit risk).

Portfolio where opportunity occurs (column 2)

The options shown will be driven by the organizational activities you selected in C-FS0.7
Select the portfolio where the forests- and/or water-related opportunity occurs.

Issue area opportunity relates to (column 3)

Select whether the opportunity is related to forests or related to water. Some of the primary opportunity driver options are specific to one or the other; however, others could be either, therefore CDP requires you to indicate.
As an illustrative example, if you have an opportunity to develop new revenue streams from new/emerging environmental markets and products:

- This would be forests-related if the emerging market is a trade finance product specifically for trade flows in certified commodities.
- This would be water-related if the emerging market is products and services with low water impacts, such as water efficient appliances.

Primary opportunity driver (column 4a)

Opportunity driver describes the source of the opportunity. Select an option that best describes the primary driver of the identified opportunity from the drop-down menu.
The primary opportunity driver drop-down options are grouped into categories by opportunity type.
Select an option from the drop-down menu that best describes the identified opportunity. If you select “Other”, please provide further details in column Company-specific description (column 6).

Primary potential financial impact (column 5)

This column refers to the potential financial impact that the opportunity could have on your organization. The financial impacts of forests- and/or water-related opportunities on organizations are not always clear, and for many organizations there might be more than one financial impact associated with a forests- and/or water-related opportunity;
Select the option that you deem to have the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 14).

Company-specific description (column 6)

Provide further contextual information on the opportunity driver, including more detail on the exact nature, location and/or regulation of the effect concerned, as well as any notable examples.
Be sure to include company-specific detail, such as references to activities, portfolios, products or services specific to your company’s business.

Time horizon (column 7)

Select the time horizon the potential impact could materialize over.
Use the definitions of short-, medium- and long-term you provided in response to C2.1a.

Likelihood (column 8)

Likelihood refers to the probability of the impact occurring within the time frame reported in column 7.
Likelihood along with the magnitude are the building blocks for quantifying and prioritizing risk and opportunities.
The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 report and are consistent across all CDP information requests.
As a guide to quantifying likelihood on a % basis, we suggest:

Magnitude of impact (column 9)

The magnitude describes the extent to which the impact, if it occurred, would affect your business. You should consider the business as a whole. This means that the potential magnitude of the impact can be a combination of the opportunity and the extent to which it applies throughout the organization.
The ‘magnitude’ of the potential benefit arising from a financial value will vary in scale and metric from company to company, so it is not possible for CDP to accurately define the listed terms for magnitude. For example, two financial institutions may report a potential financial impact figure of $10m. For financial institution A this could represent a 0.2% increase in income, but a 2% increase in income for financial institution B.
As it is not possible for CDP to accurately define terms for magnitude of impact, companies are asked to determine and report magnitude using a qualitative 5 point scale from High to Low. Factors to consider when classifying the magnitude of the impact on your organization include:

- The proportion of business units affected;
- The size of the impact on those business units;
- The dependency of the company on those units;
- The potential for shareholder or customer concern.

An impact could have a relatively high magnitude for the company as a whole because of a large effect in one of these aspects or small effects in all four combining to create a larger impact.
If the financial impact has not been assessed by your organization, please select ‘Unknown’.

Are you able to provide a potential financial impact figure? (column 10)

If you are unable to provide a figure or an estimated range for financial impact, you may use column 14 “Explanation of financial impact” to provide a description of the impact in relative terms; for example, as a percentage relative to a stated or publicly available figure, or give a qualitative estimate of the financial impact.

Potential financial impact figure (currency) (column 11)

This column is relevant if you selected “Yes, a single figure estimate”.
Provide a single figure for the financial impact of the opportunity. This figure should be in the same currency that you selected in question C0.4.

Potential financial impact figure – minimum/maximum (currency) (columns 12, 13)

These columns are relevant if you selected “Yes, an estimated range”.
Provide the estimated range for the financial impact. This figure should be in the same currency that you selected in question C0.4.
Potential financial impact figure – minimum (currency): Use this field to report the lower point of your estimated financial impact associated with the opportunity. For example, if the range is from US $5,000 to $50,000, ‘5,000’ should be reported here.
Potential financial impact figure – maximum (currency): Use this field to report the upper point of your estimated financial impact associated with the opportunity. For example, if the range is from US $5,000 to $50,000, ‘50,000’ should be reported here.

Explanation of financial impact (column 14)

Use this field to explain the figure(s) provided in 'Potential financial impact' (columns, 11, 12, 13).
Describe how you arrived at this figure (or range), including:

- What approach was employed to calculate the figure;
- Any assumptions the figure is dependent on;
- The likely timescale for the financial impact.

If 'No, we do not have this figure' was selected in column 10, use this column to provide a description of the financial impact in the relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.

Cost to realize opportunity (column 15)

Provide a quantitative figure for the cost of your strategy to realize the opportunity. If there are no costs to realizing the opportunity, enter '0'. If the value you have reported is an estimate, please state this in column 16 (“Strategy to realize opportunity and explanation of cost calculation”).
This figure should be in the same currency that you selected for all financial information disclosed throughout your response in C0.4.

Strategy to realize opportunity and explanation of cost calculation (column 16)

Provide details of your organization’s response to the opportunity.
Include an example of company-specific response actions (activities, projects, products and/or services).
Provide an explanation of how the figure for the cost to realize the opportunity (in column 15) was calculated, including the figures used in your calculation.

Explanation of terms

Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.
Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.
Opportunity type:

- Products and services: opportunities related to innovation and development of new products and services that support the transition to a deforestation-free, water secure future.
- Markets: opportunities in new markets or types of assets that may help organizations to diversify their activities and better position themselves for the transition to a deforestation-free, water secure economy.
- Resilience: opportunities related to the development of adaptive capacity to respond to forests- and/or water-related challenges.
- Reputation: opportunities related to the potential of a positive public perception a positive impact on a company's reputation

Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
Landscape approach: A place-based management approach that involves the collaboration of stakeholders in a landscape to advance shared sustainability goals and build resilience. It aims to reconcile and optimize multiple social, economic, and environmental objectives across multiple economic sectors and land uses. Such approaches are implemented through land-use plans, policies, long-term investments, and other interventions.
Jurisdictional approach: A type of landscape approach to advance shared sustainability goals where the landscape is defined by administrative boundaries of subnational or national governments and the approach is implemented with a high level of government involvement.

FW-FS Business strategy

FW-FS Strategy and financial planning

(FW-FS3.1) Do you take forests- and/or water-related risks and opportunities into consideration in your organization’s strategy and/or financial planning?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

Investors and data users are interested in forward-looking strategies and financial decisions that are driven by future market opportunities, public policy objectives, and corporate responsibilities. This question allows organizations to disclose whether they have considered and then acted to integrate forests- and/or water-related risks and opportunities into their business strategy.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area	Risks and opportunities related to this issue area taken into consideration in strategy and/or financial planning	Description of influence on organization’s strategy including own commitments*	Financial planning elements that have been influenced*	Description of influence on financial planning*	Explain why forests- and/or water-related risks and opportunities have not influenced your strategy and/or financial planning*
1	2	3	4	5	6
Forests*	Select from: Yes, we take these risks and opportunities into consideration in the organization’s strategy and financial planning Yes, we take these risks and opportunities into consideration in the organization’s strategy Yes, we take these risks and opportunities into consideration in our financial planning No, we do not take risks and opportunities into consideration	Text field [maximum 2,500 characters]	Select all that apply: Revenues Indirect costs Capital allocation Access to capital Assets Liabilities Provisions or general reserves Claims reserves None of the above	Text field [maximum 2,500 characters]	Text field [maximum 2,500 characters]
Water*

Requested content

General

The comparable climate change questions are C3.3 and C3.4.

Risk and opportunities taken into consideration in strategy and/or financial planning (column 2)

You should answer “Yes…” if forest- and/or water-related risks and opportunities have been considered and have already impacted your strategy or financial planning. As such, forest- and/or water-related issues are part of the “top line growth” strategy of the company.
You should answer “Yes…” when one of the following considerations have influenced your strategy and/or financial planning:

-The need to understand how forest- and water-related risks and opportunities will impact your client/investee relationships, financial products and/or services; and/or
-The need to provide financial flows to capitalize on opportunities presented by the transition to a deforestation- free, water secure future.

When reporting on the influence of forests-related risks and opportunities, financial services companies should take account of potential changes to their portfolios’ exposure to forests-related risks such as changing regulation and changing consumer tastes.
When reporting on the influence of water-related risks and opportunities, financial services companies should take account of potential changes to their portfolios’ exposure to water-related risks such as drought, flood, water pollution, and increasing water prices.
You should answer “No” if forest- and/or water-related risks and opportunities have had no influence on your company’s overall strategy for developing your business or your financial planning.

Description of influence on organization’s strategy, including own commitments (column 3)

Describe how your strategy in this area has been influenced by forest- and/or water-related risks and opportunities and the time horizon(s) it covers.
Specify if this includes making any public commitments, such as ensuring that all portfolios are free from commodity driven deforestation/conversion and any associated human rights risks, contributing to water security, or improving resilience to water-related events. Please also specify target dates and which of your portfolios are covered by these commitments.
Include the most substantial strategic decision(s) in this area to date that have been influenced by the forest- and/or water-related risks and opportunities.

Description of influence on financial planning (column 5)

Provide details on how forest- and/or water-related risks and opportunities have influenced the selected elements of your financial planning. Include a case study for at least one of the elements selected.
Specify the time horizons this planning covers.
If you selected “None of the above” in column 4, explain if there is another element of financial planning that has been influenced; or why forest- and/or water-related risks and opportunities have not yet influenced your financial planning.

Explanation of terms

Strategy: In line with TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.
Financial planning: in line with TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
Access to capital: Capital investments provide sources of funding other than those resulting from a bank’s products and services. This includes equity and debt capital from investors and capital raised in the money markets.
Assets: Entities functioning as stores of value and over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them, over a period of time (the economic benefits consist of primary incomes derived from the use of the asset and the value, including possible holding gains/losses, that could be realized by disposing of the asset or terminating it).
Capital Allocation: refers to distributing and investing a company's financial resources in ways that will increase its efficiency, and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.
Claims reserves: Balance sheet reserve specifically set aside by insurance companies to pay policyholders who have filed or are expected to file legitimate claims on their policies. Consider both reported but not settles (RBNS) and incurred but not reported (IBNR) reserves.
Indirect costs: Also known as 'operating cost' or 'overheads'. This generally refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
Liabilities: An obligation which requires one unit (the debtor) to make a payment or a series of payments to the other unit (the creditor) in certain circumstances specified in a contract between them.
Provisions or general reserves: Balance sheet items representing funds set aside by the organization as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord.
Revenue: Income arising in the course of an entity’s ordinary activities - before deducting costs for the goods/services sold and operating expenses to arrive at profit (adapted from the International Financial Reporting Standard).

FW-FS Scenario analysis

(FW-FS3.2) Has your organization conducted any scenario analysis to identify forests- and/or water-related outcomes?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

Scenario analysis to inform business strategy is considered a valuable tool in transitioning to a deforestation-free, water-secure future. This question allows CDP data users to understand how scenario analysis has identified forests- and/or water-related outcomes for different possible or probable futures and how this has influenced business strategies.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area(s)	Scenario analysis conducted to identify outcomes for this issue area	Type of scenario analysis used*	Parameters, assumptions, analytical choices*	Description of outcomes for this issue area*	Explain how the outcomes identified using scenario analysis have influenced your strategy*	Explain why your organization has not conducted scenario analysis for this issue area and any plans to address this in the future*
1	2	3	4	5	6	7
Forests*	Select from: Yes, we have conducted scenario analysis and we have identified outcomes for this issue area Yes, we have conducted scenario analysis, but we have not identified any outcomes for this issue area No, we have not conducted any scenario analysis to identify outcomes for this issue area, but we plan to in the next two years No, we have not conducted any scenario analysis to identify outcomes for this issue area, and we don’t plan to in the next two years	Select all that apply: Climate-related Land-use change Water-related Socioeconomic Other, please specify	Text field [maximum 2,500 characters]	Text field [maximum 1,500 characters]	Text field [maximum 1,500 characters]	Text field [maximum 2,500 characters]
Water*

Requested content

General

For climate change, this data is reported in C3.2.

Scenario analysis conducted to identify outcomes for this issue area (column 2)

If you select “Yes, we have conducted scenario analysis and we have identified outcomes for this issue area”, you will be presented with columns 2-5, requesting further information regarding the scenario analysis and the identified forests and/or water-related outcomes.

Parameters, assumptions, analytical choices (column 4)

Briefly describe key parameters, assumptions, and important analytical choices.
The parameters should include measurable factors which develop over time in the scenario such as GDP or demographic variables.
Assumptions should include the key drivers of the scenario pathway, such as policy changes over the scenario time horizon or assumptions about changing precipitation patterns.
Analytical choices should include the overarching approach to scenario-building. Crucially, this should cover the time horizons used, the models used, and the data sources. This could also detail whether the scenario(s) are quantitative, qualitative, or a mix.

Description of outcomes for this issue area (column 5)

Describe possible or probable forests- and/or water-related outcomes associated with the scenario analysis.
These may be possible or probable challenges or opportunities arising from, for example, land loss to desertification and soil degradation, land use change due to forest fires, policy-based water restrictions due to drought, disruption to operations due to changing precipitation patterns, or water stress due to population change.

Explain how the outcomes identified using scenario analysis have influenced your strategy (column 6)

Describe your company’s response to the forests- and/or water-related outcomes described in column 5 and include the anticipated timescale for your responses.
These should be strategic actions taken or already planned in response to the identification of possible or probable future scenarios and their implications on banking, investment and/or insurance underwriting activities.

Explanation of terms

Scenario analysis: The process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.
Outcomes: Scenario analysis enables decision makers to identify and evaluate potential outcomes for different scenarios and their effects on their organization, based on a variety of assumptions/input variables. The consequences may be forests and/or water-related themselves, or have implications for the governance of the organization, or for its wider business strategy.

Additional information

Credible, publicly available scenario analysis tools for assessing future water risks are WRI Aqueduct and WWF Water Risk Filter. Both tools combine different climate scenarios (IPCC Representative Concentration Pathways – RCP and IIASA Shared Socio-economic Pathways - SSP) to explore future water risks. In WRI Aqueduct, users can assess future risks of water stress (in terms of quantity only). The WWF Water Risk Filter scenarios cover physical risks such as scarcity, flooding, water quality, water-related ecosystem services, as well as regulatory and reputational risks.

FW-FS Target Setting

(FW-FS3.3) Has your organization set targets for deforestation free and/or water secure lending, investing and/or insuring?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

New question

Rationale

Your response to this question will provide CDP data users with details of your targets for deforestation free and/or water secure lending, investing and/or insuring.

Ambition: Financial services companies set and progress targets for deforestation free and/or water secure lending, investing and/or insuring.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area*	Targets set	Explain why your organization has not set targets for deforestation free and/or water secure lending, investing and/or insuring and any plans to address this in the future*
0	1	2
Forests	Select from: Yes No, but we plan to set targets within the next two years No, and we do not plan to set targets in the next two years	Text field [maximum 2,500 characters]
Water security

Requested content

General

For climate change, this data is reported in C4.1.

Targets set (column 1):

For each issue area, indicate if you have set targets.

Explain why your organization has not set targets for deforestation free and/or water secure lending, investing and/or insuring and any plans to address this in the future (column 2):

If you have not set any targets, explain why.
If you plan to set targets within the next two years, indicate the nature of the target you intend to set (e.g., which portfolios and sectors would be covered), the anticipated timeline, and any other relevant plans.
If you do not plan to set targets in the next two years, explain why you do not plan to.
Explain other ways you are addressing or planning to address this issue.

Explanation of terms

Deforestation free lending, investing and/or insuring: Lending/investing/insuring that is in line with global plans for transitioning to a deforestation free world; Not financing unsustainable production of commodities contributing to deforestation or other activities having a negative impact on forests; Financing the production of commodities in a way that supports sustainable economic development and the global transition towards sustainable production.
Water secure lending, investing and/or insuring: Lending/investing/insuring that is in line with global plans for transitioning to a water secure world; Not financing activities contributing to water pollution or depletion, or otherwise having a negative impact on water; Financing activities contributing to water security including water and sanitation services, water resources management and agricultural water.

(FW-FS3.3a) Provide details of your targets for deforestation free and/or water secure lending, investing and/or insuring.

Question dependencies

This question only appears if you select any “Yes” in response to FW-FS3.3 column 2.

Change from last year

New question

Rationale

Your response to this question will provide CDP data users with details of your targets for deforestation free and/or water secure lending, investing and/or insuring.

Ambition: Financial services companies have timebound, quantitative and tracked targets for deforestation free and/or water secure lending, investing and/or insuring.

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Portfolio*	Issue area(s) the target covers*	Targets set	Sectors covered by the target	Target metric
1	2	3	4	5
Select from: Banking (Bank Investing (Asset manager) Investing (Asset owner) Insurance (Insurance company)	Select from: Forests Water Security	Select from: Targets for deforestation free/water secure lending Targets for deforestation free/water secure investments Targets for deforestation free/water secure insurance provided Targets for providing products and services that enable clients to mitigate deforestation and/or water insecurity Targets for proportion of your clients/investees being compliant with your forests- and/or water-related requirements Other, please specify	Select all that apply: All sectors Energy Materials Capital goods Commercial and professional services Transportation Automobiles and components Consumer durables and apparel Consumer services Retailing Food and staples retailing Food, beverage and tobacco Household and personal products Health care equipment and services Pharmaceuticals, biotechnology and life sciences Banks Diversified financials Insurance Software and services Technology hardware and equipment Semiconductors and semiconductor equipment Telecommunication services Utilities Real estate Other, please specify	Select from: Total value (unit currency – as specified in C0.4) % of total lending/investment/ insurance Number of products and services % of all products and services Resources allocated to products and services (unit currency – as specified in C0.4) % of your clients/investees % of your portfolio value Other, please specify

Target value (as %)	Target value	Target year	% of target achieved	Provide details of the target
6	7	8	9	10
Percentage field [enter a percentage from 0-100]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Numerical field [enter a number between 2023- 2100]	Percentage field [enter a percentage from 0-100]	Text field [maximum 2,500 characters]

[Add row]

Requested content

General

For climate change, this data is reported in C-FS4.1d.
Add a row for each forests- and/or water-related target that you have.

Issue area(s) the target covers (column 2)

Options are dependent on your selections in FW-FS3.3.

Targets set (column 3)

For each row, select the type of a target you are describing.
The options in this column are according to the portfolio the target relates to
- Targets for deforestation free/water secure lending/investments/insurance providing refers to targets for having a certain proportion of your portfolio activity dedicated to sustainable purposes, contributing to the transition to a deforestation free and water secure world.
- Targets for proportion of your clients/investees being compliant with your forests- and/or water-related requirements refers to targeted percentage of your total number of client/investees or percentage of your total portfolio exposure/value to be compliant with your forests- and/or water related requirements.
- Select “Other, please specify” if your target doesn’t fit within the other options and describe what kind of a target it is.

Sectors covered by the target (column 4)

If your target applies to all sectors rather than specific ones, select option “All sectors”.
If your target covers sectors not in this list, select “Other, please specify” and specify the sector.

Target metric (column 5)

For each row, select the measurement of the target, i.e. what does the targeted number stand for.
- Total value: the target is set as a monetary value.
- % of total lending/investment/insurance: the target is set as a specific proportion of your portfolio activity.
- Number of products and services: targeted number of offering such products and/or services.
- % of all products and services: target set as a certain proportion of your products and/or services related to forests and/or water security.
- Resources allocated to products and services: targeted amount of finances to related to forests- and/or water-related products and/or services.
- % of your clients/investees: proportion of the total number of clients/investees covered by the target.
- % of your portfolio value: proportion of your total portfolio value/exposure covered by the target.
- Other, please specify: state the measurement used for the target.

Target value (as %) (column 6)

If your target metric refers to percentages, based on your selection in column 5, give the target value as a % from 0-100.

Target value (column 7)

If your target metric refers to monetary values or specific numbers and not proportions, based on your selection in column 5, give the target value as a number. If the value refers to monetary values, use the unit currency as specified in C0.4.

Target year (column 8)

Provide the year by which you aim to achieve the target.

% of target achieved (column 9)

If you measure your progress towards meeting the target, provide the percentage that has been achieved at the end of the reporting year.
If you do not measure progress, leave this field blank.

Provide details of your target (column 10)

If the target is not portfolio-wide provide further details of your target coverage in this column (e.g., if the target applies to specific business activities or geographic regions).
You can use this column to identify where you have a financial year or average year based target.
If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
If your target is part of a wider environmental goal, a regulatory requirement, or a longer term target, you can also explain this here.

FW-FS Products and services

(FW-FS3.4) Do any of your existing products and services enable clients to mitigate deforestation and/or water insecurity?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change (2022 FW-FS3.3)

Rationale

Achieving a 1.5-degree, deforestation-free, water-secure world will require massive investment in low carbon technologies, sustainable agricultural and water management practices. Only the financial sector can provide this. Investors and data users are interested in whether financial institutions are providing financial products and services to meet this investment challenge.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area(s)	Existing products and services that enable clients to mitigate deforestation and/or water insecurity	Explain why your organization does not offer products and services which enable clients to mitigate deforestation and/or water insecurity and any plans to address this in the future*
Forests*	Select from: Yes No, but we plan to address this within the next two years No, and we do not plan to address this in the next two years	Text field [maximum 2,500 characters]
Water*

Requested content

General

For climate change, this data is reported in C-FS4.5.
There are various circumstances in which a financial services company might consider that the use of its products and services by others has the potential to reduce deforestation and/or water insecurity. For instance, you should consider products such as green and blue bonds, impact investments, green loans, sustainability-linked loans, sustainable insurance products, specialty forests- and/or water-related risk advisory services and others.

(FW-FS3.4a) Provide details of your existing products and services that enable clients to mitigate deforestation and/or water insecurity.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS3.4 column 2.

Change from last year

Minor change (2022 FW-FS3.3a)

Rationale

Achieving a 1.5-degree, deforestation-free, water-secure world will require massive investment in low carbon technologies, sustainable agricultural and water management practices. Your response to this question will allow data users to see which products and services that mitigate deforestation and/or water insecurity financial services companies are providing to meet this investment challenge.

Response options

Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.

(*dropdown appearance in these columns is dependent on selections in this or other questions)

Product type*

Taxonomy or methodology used to classify product(s)

Product enables clients to mitigate*

Description of product(s)

Type of activity financed, invested in or insured*

Portfolio value (unit currency – as specified in C0.4)

% of total portfolio value

Select from:

Banking

Corporate loans
Retail loans
Corporate real estate
Retail mortgages
Trade finance
Asset finance
Project finance
Debt and equity underwriting
Other, please specify

Investing

Fixed Income
Listed Equity
Private Equity
Real estate/Property
Infrastructure
Commodities
Forestry
Hedge funds
Mutual funds
Fund of funds
Derivatives
Other, please specify

Insurance

Property & Casualty
Construction & Engineering
Agribusiness
Motor
Marine
Life
Health
Reinsurance
Other, please specify

Select from:

Low-carbon Investment (LCI) Taxonomy
Climate Bonds Taxonomy
The EU Taxonomy for environmentally sustainable economic activities
Evaluating the carbon-reducing impacts of ICT
Green Bond Principles (ICMA)
ISO 14040/44 Standards
LMA Green Loan Principles
LMA Sustainability Link Loans Principles
Externally classified using other taxonomy or methodology, please specify
Internally classified

Select all that apply:

Deforestation
Water insecurity

Text field [maximum 2,500 characters]

Select all that apply:

Sustainable forest management [F]
Forest protection [F]
Forests restoration [F]
Afforestation [F]
Landscape and/or jurisdictional approaches [F, W]
Sustainable agriculture [F, W]
Water supply and sewer networks infrastructure [W]
Water treatment infrastructure [W]
Wastewater treatment infrastructure [W]
WASH services [W]
Water resources and ecosystem protection [W]
Flood/drought resilience [W]
Other, please specify

Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]

Percentage field [enter a percentage from 0-100]

[Add row]

Requested content

General

For climate change, this data is reported in C-FS4.5a.

Product type (column 1)

The options shown will be driven by the organizational activities you selected in C-FS0.7.
Select from the dropdown list the asset classes that the products/services fall under.

Taxonomy or methodology used to classify product(s) (column 2)

As investors seek to increase the proportion of their portfolio invested in environment-friendly products there is an effort to establish standardized methodologies.
If you offer products enabling clients to have beneficial impacts on forests and/or water, which have been classified using an external taxonomy or methodology not listed, select “Externally classified using other taxonomy or methodology, please specify” and provide a label for the taxonomy or methodology.
If the products you offer have been classified internally as enabling clients to have beneficial impacts on forests and/or water, select “Internally classified” and describe your internal classification system in column 4.

Product enables clients to mitigate (column 3)

Select all issues the product(s) helps to mitigate.
If you have different products mitigating forests- and water-related issues, you may add rows to describe the products separately.

Description of product(s) (column 4):

For each row, describe the product/service and explain how you ensure that it supports mitigation of deforestation, and/or water security.

Type of activity financed, invested in or insured (column 5)

Indicate which type of sustainable activities or solutions your financing, investments and insurance products and services are covering

-Sustainable forest management is the process of managing a forest for achieving the continuous production of desired forest products and services without reducing its inherent values and future productivity, avoiding undesirable social-environmental effects.
-Forest protection refers to activities aimed at protecting the integrity of existing forest ecosystems.
-Forests restoration is the process of assisting the recovery of an ecosystem that has been degraded, damaged, or destroyed.
-Afforestation is the establishment of forest through planting and/or deliberate seeding on land that, until then, was not classified as forest, what implies a transformation of land use from non-forest to forest.
-Landscape and/or jurisdictional approaches refers to place-based and/or landscape approaches that involves the collaboration of stakeholders in a landscape to advance shared sustainability goals and build resilience, where the landscape can be defined by administrative boundaries and the approach is implemented with high level of government involvement (jurisdictional approach).
-Sustainable agriculture refers to agricultural practices which ensure the long-term supply of crops or livestock, with minimal negative environmental impact.
-Water supply and sewer networks infrastructure are important for water access and for the treatment of wastewater prior to its discharge to the environment. Improvements to water supply and sewer networks can reduce pipe leakage and water losses, improve the quality of water delivered to users, and reduce sewer overflows which lead to water pollution.
-Water treatment infrastructure allows water to be treated to a drinking standard or another appropriate treatment level for use.
-Wastewater treatment infrastructure is important for the removal of hazardous, toxic and otherwise harmful substances from wastewater prior to its discharge to the environment.
-WASH services refer to water, sanitation, and hygiene services.
-Water resources and ecosystem protection includes watershed remediation, habitat restoration, and ecosystem preservation.
-Flood/drought resilience is important for managing the impacts of climate change. Resilience can be built in a variety of ways, such as improving urban drainage systems, securing multiple/diverse water sources, or building monitoring capabilities.

% of total portfolio value (column 7)

Provide a percentage value for the proportion of products and/or services that you classify as sustainable, resilience-enhancing, or otherwise beneficial for forests and/or water systems in relation to your total portfolio value.

Explanation of terms

Mitigation: Actions that limit the magnitude or rate of deforestation and/or water security.
Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.
Commodities: Involves buying, selling, or trading a raw product, such as oil, gold, or coffee.
Derivatives: Securities that derive their value from an underlying asset or benchmark.
Fixed income: A type of investment security that pays investors fixed interest or dividend payments until its maturity date.
Forestry: investment in forest lands, either directly (direct ownership of forest land) or indirectly (through e.g. a timber fund).
Fund of funds: An investment fund that invests in other types of funds.
Hedge funds: Alternative investments using pooled funds that employ different strategies to earn active returns, or alpha, for their investors.
Infrastructure: A form of “real assets,” which contain physical assets we see in everyday life like bridges, roads, highways, sewage systems, or energy.
Listed equity: Shares of ownership issued by publicly-traded companies.
Mutual funds: Investment using pooled funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Private equity: Alternative form of private financing in which funds and investors invest directly in companies.
Real estate/property: The purchase, ownership, management, rental and/or sale of real estate (e.g. land, buildings, infrastructure).
Agribusiness insurance: Protection designed to protect businesses that earn all or most of their revenue from agriculture.
Construction & engineering insurance: Protection that provides financial compensation for covered losses to a building or structure.
Health insurance: Protection that covers the whole or a part of the risk of a person incurring medical expenses.
Life insurance: Protection which guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
Marine insurance: Protection that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination.
Motor insurance: Protection for cars, trucks, motorcycles, and other road vehicles.
Property & casualty insurance: Protection that provides either property protection coverage or liability coverage for property owners.

Additional information

The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. Further details on the guidelines for issuing green bonds are available here.
The Green Loan Principles (GLP) build on and refer to the Green Bond Principles (GBP) of the International Capital Market Association (ICMA), with a view of promoting consistency across financial markets. The green loan market aims to facilitate and support environmentally sustainable economic activity.

FW-FS Policy framework

(FW-FS3.5) Does the policy framework for the portfolio activities of your organization include forests- and/or water-related requirements that clients/investees need to meet?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change (2022 FW-FS3.4)

Rationale

Considering forests- and/or water-related issues in a policy framework is an important element of business strategy and a signal of how deeply forests- and/or water-related issues are embedded in an organization’s processes. For these reasons, data users are interested in understanding whether organizations in the financial sector have integrated forests- and/or water-related requirements for clients/investees into their existing policy frameworks for banking, investment and insurance underwriting activities.

Ambition: The policy framework for portfolio activities of financial services companies include forests- and/or water-related requirements for clients/investees.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area(s)	Policy framework includes this issue area	Explain why your organization does not include this issue area in the policy framework and any plans to address this in the future*
Forests*	Select from: Yes No, but we plan to include this issue area within the next two years No, and we do not plan to include this issue area in the next two years	Text field [maximum 2,500 characters]
Water*

Requested content

General

For climate change, this data is reported in C-FS3.6.
Indicate whether your organization considers forest and/or water-related issues in your policy framework that includes criteria that clients/investees should meet if they are to access financial services.

Explanation of terms

Policy framework: The collection of written policies setting out rules that guide an organization’s decision-making processes in relation to its financial activities. Examples of such policies could include credit policy, risk policy, investment, underwriting policy, etc.
Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(FW-FS3.5a) Provide details of the policies which include forests- and/or water-related requirements that clients/investees need to meet.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS3.5.

Change from last year

Modified question (2022 FW-FS3.4a)

Rationale

To help manage risks associated with forest risk commodities and water security, organizations should integrate forests- and water-related issues into their existing policy framework. These policies may apply across the organization and may be based on sectors, geographies, business lines, asset classes or other. Although the uptake of forests- and water-related policies is increasing, their implementation varies across organizations. This question helps data users understand how financial services companies integrate forests- and water-related issues into their policies and what criteria is required of their clients/investees.

Response options

Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.

(*column/row/dropdown appearance is dependent on selections in this or other questions)

Portfolio*

Issue area(s) the policy covers*

Type of policy*

Portfolio coverage of policy

Policy availability

Attach documents relevant to your policy

Requirements for clients/investees*

Value chain stages of client/investee covered by criteria

Select from:

Banking (Bank)
Investing (Asset manager)
Investing (Asset owner)
Insurance (Insurance company)

Select from:

Forests
Water

Select all that apply:

Banking:

Credit/lending policy
Risk policy
Underwriting policy
Policy related to other products and services
Engagement policy
Pricing policy
Other, please specify

Investing:

Credit policy
Risk policy
Sustainable/Responsible Investment Policy
Investment policy/strategy
Policy related to other products and services
Active ownership policy
Pricing policy
Other, please specify

Insurance:

Risk policy
Insurance underwriting policy
Policy related to other products and services
Engagement policy
Pricing policy
Other, please specify

Percentage field [enter a percentage from 0-100]

Select from:

Publicly available
Not publicly available

[Attachment functionality]

Select all that apply from drop-down options below

Select from:

Direct operations only
Direct operations and supply chain

Timeframe for compliance with policy criteria	Industry sectors covered by the policy	Forest risk commodities covered by the policy*	Commodities with critical impact on water security covered by the policy*	Forest risk commodity supply chain stage covered by the policy*	Exceptions to policy based on*	Explain how criteria coverage and/or exceptions have been determined
9	10	11	12	13	14	15
Select from: Complying with criteria is a pre-requisite for business Clients/investees must be compliant within the next year Clients/investees must be compliant within the next 2 years Clients/investees must be compliant within the next 5 years No timeframe	Select all that apply: Energy Materials Capital Goods Commercial & Professional Services Transportation Automobiles & Components Consumer Durables & Apparel Consumer Services Retailing Food & Staples Retailing Food, Beverage & Tobacco Household & Personal Products Health Care Equipment & Services Pharmaceuticals, Biotechnology & Life Sciences Software & Services Technology Hardware & Equipment Semiconductors & Semiconductor Equipment Telecommunication Services Media & Entertainment Utilities Real Estate Other, please specify	Select all that apply: All agricultural commodities Timber products Palm oil Cattle products Soy Rubber Cocoa Coffee	Select all that apply: Palm oil Soy Cocoa Coffee Cotton Sugar Tobacco Rice Maize/corn Fruit Grain Nuts Tea Vegetable Other oilseeds Dairy and egg products Fish and seafood from aquaculture Poultry and hog	Select all that apply: Production Processing Trading Manufacturing Retailing	Select all that apply: Geography Subsidiaries Industry sector Line of Business Products and services Transaction size Segment of the value chain Other, please specify	Text field [maximum 2,500 characters]

[Add row]

Requirements for clients/investees (column 7)

Select all that apply from the following options:

Forests-related criteria

Have a documented forests policy
Commit to no deforestation/conversion of other natural ecosystems
Commit to no development on peat regardless of depth
Restore and compensate to address past deforestation or conversion
Avoid negative impacts on threatened and protected species and habitats
Commit to no land clearance by burning or clearcutting
Commit to no conversion of High Conservation Value areas
Commit to no conversion of High Carbon Stock forests
Collaborate in landscapes/jurisdictions to progress shared sustainable land use goals
Commit to no activities in IUCN protected areas categories I – IV
Commit to no activities in Ramsar sites.
Commit to recognition of legal and customary land tenure rights
Secure Free, Prior and Informed Consent (FPIC) of indigenous peoples and local communities
Adopt the UN International Labour Organization principles
Have transparent and accessible mechanisms to resolve grievances and remediate any adverse impacts on indigenous people and local communities
Comply with all applicable local, national and international laws and regulations
Restricting sourcing of forest risk commodities to verified legal and known sources
Set a third-party certification target(s)
Use credible third-party certification schemes for forest risk commodities produced/sourced
Set a traceability target(s)
Trace forest risk commodities to a point at which deforestation-free status can be assessed
Disclose forests-related information publicly
Other, please specify

Water-related criteria

Have a documented water policy
Comply with all applicable local, national and international laws and water regulations
Meeting minimum, sector-specific discharge treatment processes
Commit to safely managed Water, Sanitation and Hygiene (WASH) in the workplace
Monitor water withdrawals, discharges and water quality parameters
Disclose water-related information publicly
Reduce water withdrawals and/or consumption
Reduce/eliminate water pollution
Improve water efficiency
Set a water withdrawal and/or consumption reduction target
Set a water pollution reduction target
Conduct a water-related risk assessment that includes water availability and water quality at a basin/catchment level
Engage/support their suppliers to minimize negative impacts on water
Collaborate with other stakeholders (companies, NGOs, communities, local governments) within a basin to manage water
Set a water-related science-based target
Other, please specify

Requested content

General

For climate change, this data is reported in C-FS3.6a.

Portfolio (column 1)

The options shown will be driven by the organizational activities you selected in C-FS0.7.
You should add a row for each portfolio in the dropdown list for which you have a policy for. You can add additional rows for the same portfolio to differentiate varying policy types if required.

Issue area(s) the policy covers (column 2)

Select which issue area is included in the policy.
You should add a row for each issue area that is included in the policy. The selection made in this column will determine which selections are available in subsequent columns.
If “Forests” is selected, you will be presented with columns 11 and 12, requesting further information.

Type of policy (column 3)

The options shown will be driven by the portfolio selected in column 1.
Select all the policies into which forests- or water-related issues are integrated.
If there are policies within your organization’s policy framework into which forests- and/or water-related issues are integrated, and which are not well represented by any of the drop-down options, select “Other, please specify” and provide a label.

Portfolio coverage of policy (column 4)

Specify the % coverage i.e. how much of your portfolio the policy applies to, based on either total or outstanding commitments, premiums, and/or committed capital.

Policy availability (column 5)

Indicate whether the selected policy is publicly available or not.

Requirements for clients/investees (column 7)

Select all the requirements which your clients/investees must meet. To ensure your response is accurate, refer to the "Explanation of terms" section for this question.
Requirements can refer to actions that must be taken, requirements that must be fulfilled, or to other possible criteria which clients/investees must fulfil.
Select “Other, please specify” for any requirements not listed and provide a label.
If different requirements apply to different specific subsets of clients/investees (for example, different requirements for companies in the Food, Beverage & Tobacco sector compared to companies in the Consumer Durables & Apparel sector) you are able to add rows for each subset of clients/investees and select the requirements in the relevant rows.

Value chain stages of client/investee covered by criteria (column 8)

Indicate whether the requirements listed in column 7 is applicable to clients/investees operational activities only, or whether the requirements must also be fulfilled in their supply chain.

Timeframe for compliance with policy criteria (column 9)

If your timeframe for compliance does not match any of the options exactly, select the closest option.

Industry sectors covered by the policy (column 10)

Indicate the industry sectors the requirements apply to, as stated in the written policy.
If it is stated in the written policy that the criteria should be applied to all industry sectors, indicate this by selecting “Other, please specify” and writing “all sectors”.

Forest risk commodities covered by the policy (column 11)

Indicate the forest risk commodities the requirements/criteria apply to, as stated in the written policy.
You are able to select “All agricultural commodities” if either this coverage is stated explicitly in the policy or if the commodities covered by the policy encompass all agricultural commodities you have exposure to within your portfolio.

Commodities with critical impact on water security covered by the policy (column 12)

Indicate the commodities that the criteria apply to, as stated in the written policy.

Forest risk commodity supply chain stage covered by the policy (column 13)

Indicate for which stages in the forest risk commodity supply chain the requirements/criteria apply to, as stated in the written policy.

Exceptions to policy based on (column 14)

This column appears if you enter any value lower that 100% in column 4.
If the policy does not apply to all of your portfolio, indicate the basis for the exceptions. For example, if the policy only applies on transactions above $10m, select “Transaction size”.
Give further details of the exception criteria you select in column 15.

Explanation of terms

Portfolio: In the context of this questionnaire your portfolio is your entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
Timber products: This includes all solid timber as well as products made from processed wood fiber such as paper, packaging, cardboard and specialty fibers (e.g., viscose). It also includes timber products used for biomass.
Palm oil: This includes crude palm oil, palm kernel oil, and all of its derivatives. Please note that palm oil used for biofuel production is also included in this category.
Cattle products: This includes all food products containing beef, all clothing, furniture and accessories that are made of leather, tallow, and all other products derived from cattle. Please note that tallow used for biofuel production is also included in this category. Dairy products are not included in this category.
Soy: This includes all meal or oil containing soy and any derivatives that are obtained from soy. Please note that soy used for biofuel production is also included in this category.
Rubber: This includes all rubber products deriving from natural rubber production. Please note that the tire industry is included in this category.
Cocoa: This includes all food or other products containing cocoa, cocoa derivatives such as cocoa butter or pectin, or any products derived from cocoa husks such as animal feed or potash.
Coffee: This includes all products from or derived from coffee plants, including the beans, cherries and husks.
Forest risk commodity supply chain stage: CDP’s forest program requests forests-related disclosures from companies with business activities corresponding to the following stages of forest risk commodity supply chains:

-Production: This is the first stage of the supply chain and generally refers to the production of raw agricultural and forests products by farm owners, smallholders, and communities. Vertically integrated companies are also involved in producing activities if they own or manage land used for the production of forests risk commodities.
-Processing: This encompasses the initial transformative activities that will add value to raw materials. For example, the production of crude palm oil from crushed fruit, the production of soybean oil and soybean meal from soybean, the initial processing of timber products in mills (i.e., sawmills, plywood and veneer mills, pulp and paper mills), the slaughtering of cattle and the processing of raw hide into leather. Further processing activities in the form of refining and fractionation should be considered in the manufacturing stage.
-Trading: Businesses that purchase and sell raw or primary processed agricultural or forestry materials to either domestic or export markets. This includes the shipment, transport and storage of the forest risk commodities.
-Manufacturing: This includes the production of final ingredients for the food, feed and fuel sectors from raw or processed materials.
-Retailing: Businesses that sell products directly to individual consumers.

Forests policy: A statement by a portfolio organization specifying the goals or targets that it intends to meet or the actions it intends to take in regards to its management of forest-related issues.
Natural ecosystem: An ecosystem that substantially resembles - in terms of species composition, structure, and ecological function - one that is or would be found in a given area in the absence of major human impacts. This includes human-managed ecosystems where much of the natural species composition, structure, and ecological function are present (AFi, 2019).
No-conversion ("or conversion-free"): Commodity production, sourcing, or financial investments in commodities that do not cause or contribute to the conversion of natural ecosystems (AFi, 2019).
No-deforestation ("or deforestation-free"): Commodity production, sourcing, or financial investments that do not cause or contribute to deforestation (AFi, 2019).
Peatland: An area with or without vegetation with a naturally accumulated peat layer at the surface, while peat is defined as accumulated material consisting of at least 30% (dry mass) of dead organic material (Joosten and Clarke, 2002).
High Carbon Stock forests: This is the High Carbon Stock Approach (HCSA) classification of forested areas that should be protected based on high carbon stock, importance to local communities or high biodiversity value. The HCSA distinguishes high carbon stock forests from degraded lands that may be developed.
High Conservation Value: Biological, ecological, social or cultural values which are considered outstandingly significant or critically important, at the national, regional or global level, as defined by the High Conservation Values (HCV) Resource Network.
IUCN protected areas categories I – IV: IUCN protected area management categories classify protected areas according to their management objectives. The categories are recognized by international bodies such as the United Nations and by many national governments as the global standard for defining and recording protected areas. Categories I to IV includes: Ia Strict Nature Reserve, Ib Wilderness Area, II National Park, III Natural Monument or Feature, IV Habitat/Species Management Area, and V Protected Landscape/ Seascape (IUCN, 2013).
Ramsar sites: Wetland sites designated to be of international importance under the Convention on wetlands, known as the Ramsar Convention.
Free, Prior and Informed Consent (FPIC): A community right to give or withhold its consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use, as recognized by several international instruments including the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), International Labour Organization's (ILO) Convention 169, and the Convention on Biological Diversity (CBD) (AFi, 2019).
Threatened and protected habitats: All habitats considered threatened or otherwise protected by national or subnational laws and regulation, as well as international multilateral agreements, including protected areas, World Natural Heritage Sites, Natura 2000 sites and other similar areas.
Threatened and protected species: All species listed on IUCN’s Red List of Threatened Species, as well as other species considered threatened or otherwise protected by national or subnational laws and regulation.
Third-party certification: When a certification process is carried out by an independent organization to ensure that environmental and social criteria have been met.
Traceability: The ability to follow a product or its components through stages of the supply chain (e.g., production, processing, manufacturing, and distribution) (AFi, 2019).
Safely managed WASH services: The universal provision of safely managed water, sanitation, and hygiene services has dedicated targets within the Sustainable Development Goals (SDG 6.1 and 6.2). As a minimum, this disclosure refers to a company’s tracking of its provision of drinking water for all workers, available when needed and from sources compliant with faecal and chemical standards, as well as sanitation facilities where excreta are safely disposed in situ or transported and treated offsite.
Science-based target: Measurable, actionable, and time-bound targets, based on the best available science, that allow actors to align with Earth’s limits and societal sustainability goals (adapted from the Science Based Targets Network).
Water availability: The natural runoff (through groundwater and rivers) minus the flow of water that is required to sustain freshwater and estuarine ecosystems and the human livelihoods and well-being that depend on these ecosystems. Water availability typically varies within the year and also from year to year. Water availability might be reduced by decreases in both the water quantity and quality of water resources (adapted from the CEO Water Mandate's "Corporate Water Disclosure Guidelines").
Water consumption: The amount of water that is drawn into the boundaries of an organization and not discharged back to the water environment or a third party over the course of a reporting year.
Water discharge: The sum of effluents and other water leaving the boundaries of the organization and released to surface water, groundwater, or third parties over the course of the reporting period (adapted from GRI Standard 306-1, 2016).
Water efficiency: A measure of economic value produced from water withdrawals. This is often calculated as revenue (or other financial metric) per water withdrawal or use volume.
Water policy: A statement of an organization’s water-related commitments, and the actions that will achieve them, that applies to all its activities.
Water quality: Refers to the physical, chemical, biological and organoleptic (taste-related) properties of water (see CDP’s definition for “Good quality freshwater”) (adapted from the CEO Water Mandate's "Corporate Water Disclosure Guidelines").
Water regulations: Regulations that aim to prevent overuse, contamination and other detrimental activities.
Water withdrawal: The sum of all water drawn into the boundaries of an organization from all sources for any use over the course of a reporting period.

Additional information

For further information on forests-related commitments types and guidelines, please refer to: Weber, K., WaltherThoß, J., & Fleckenstein, M. (2016). Deforestation-free supply chains. Concepts and implications. WWF Deutschland. Berlin.

For recommendations and information on setting a strong policy on deforestation, conversion, and associated human rights risks, please refer to Phase 2 of the Finance Sector Roadmap (Finance & Deforestation Advisory Group, 2021).

FW-FS Financing agreements

(FW-FS3.6) Does your organization include covenants in financing agreements to reflect and enforce your forests- and/or water-related policies?

Question dependencies

This question only appears if you select “Banking” in response to C-FS0.7 and you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of the same question.

Change from last year

No change (2022 FW-FS3.5)

Rationale

Banks are able to influence their clients through requirements within the terms of financing agreements, and with the option of a default being triggered should there be a failure to comply. Data users are interested in whether banks are using this method to promote action on forests- and/or water-related performance. The potential benefits include an improved credit profile accompanied by access to alternative pools of capital.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area(s)

Covenants included in financing agreements to reflect and enforce policies for this issue area

Explain how the covenants included in financing agreements relate to your policies for this issue area*

Explain why your organization does not include covenants for this issue area in financing agreements and any plans to address this in the future*

Forests*

Select from:

Yes
No, but we plan within the next two years
No, and we do not plan to in the next two years

Text field [maximum 2,500 characters]

Water*

Requested content

General

For climate change, this data is reported in C-FS3.8.

Explain how the covenants included in financing agreements relate to your policies for this issue area (column 3)

This column is only presented if “Yes” is selected in column 2
Provide a brief description of how the covenants and clauses you include in financing documents relate to your forests- and/or water-related policies.
Outline which types of clients you use covenants with, and why.
Provide an indication of the scale at which you are including these types of covenants, and whether the scale is substantive to your organization.

Explanation of terms

Financing agreements: Legal documents defining the terms and conditions of a financing product or service between your organization, for example as lender, and your client, for example as borrower.

FW-FS Engagement with clients/investees

(FW-FS4.1) Do you engage with your clients/investees on forests- and/or water-related issues?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

Most of financial institutions’ environmental impact occurs in their portfolio(s) – via the activities they finance and/or insure. In order to achieve a deforestation-free and water-secure future, financial institutions must engage with their clients/investees on forests- and water-related issues. This question seeks to ascertain which companies are engaging in the best practice of working with clients/investees to reduce negative environmental impacts.

Response options

Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.

(*column/row appearance is dependent on selections in this or other questions)

Clients/investees and issue area the engagement relates to	We engage with clients/investees on this issue area	Explain why you do not engage with your clients/investees on the issue area and any plans to address this in the future*
Clients – Forests*	Select from: Yes No, but we plan to within the next two years No, and we do not plan to in the next two years	Text field [maximum 2,500 characters]
Clients – Water*
Investees – Forests*
Investees – Water*

Requested content

General

For climate change, this data is reported in C12.1.
Consider your engagement activities with customers/clients and investee companies which encourage better disclosures and better practices around forests- and/or water-related issues.
You can provide further details in FW-FS4.1a and FW-FS4.1b.

Clients/investees and issue area the engagement relates to (column 1)

The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7.
Each row corresponds to engagement with clients or investees on forests- or water-related issues. Please respond to all rows.

(FW-FS4.1a) Give details of your forests- and/or water-related engagement strategy with your clients.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS4.1 in column 2 for any of the rows with “Clients” in column 1.

Change from last year

Minor change

Rationale

This question enables transparency regarding client engagement processes. As the majority of most financial services companies' environmental risks and impacts occur in their portfolio(s), data users are interested in understanding how financial services companies are working with their clients to drive best practice and ameliorate forests- and water-related issues.

Response options

Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.

(*dropdown appearance is dependent on selections in this or other questions)

Type of clients*

Issue area this engagement relates to*

Type of engagement

Details of engagement

Portfolio coverage of engagement

Rationale for the coverage of your engagement

Impact of engagement, including measures of success

Select from:

Clients of Banks
Clients of Asset Managers (Asset owners)
Clients of Insurers

Select from:

Forests
Water

Select from:

Education/information sharing
Collaboration & innovation
Information collection (understanding client behavior)
Engagement & incentivization (changing client behavior)
Other, please specify

Select all that apply:

See drop-down options below

Percentage field [enter a percentage from 0-100]

Select from:

Non-targeted engagement
Engagement targeted at clients with increased forest-related risks [F]
Engagement targeted at clients with increased forests-related opportunities [F]
Engagement targeted at clients with increased water-related risks [W]
Engagement targeted at clients with increased water-related opportunities [W]
Engagement targeted at clients currently not meeting forests-related policy requirements [F]
Engagement targeted at clients currently not meeting water-related policy requirements [W]
Engagement targeted at clients with the highest potential impact on forests [F]
Engagement targeted at clients with the highest potential impact on water security [W]
Engagement targeted at clients with the highest dependencies on forests [F]
Engagement targeted at clients with the highest dependencies on water security [W]
Other, please specify

Text field [maximum 2,500 characters]

[Add row]

Details of engagement (column 4)

Education/information sharing

Run an engagement campaign to educate clients about your expectations of them in relation to their impact on forests [F]
Run an engagement campaign to educate clients about your expectations of them in relation to their impact on water security [W]
Run an engagement campaign to educate clients about how your financing/insurance products can help them access opportunities related to reducing forests-related impacts [F]
Run an engagement campaign to educate clients about how your financing/insurance products can help them access opportunities related to reducing water security-related impacts [W]
Engage with clients on measuring exposure to forests-related risk [F]
Engage with clients on measuring exposure to water-related risk [W]
Other, please specify

Collaboration & innovation

Collaborate with clients to develop their certification/traceability targets [F]
Collaborate with clients in landscapes/jurisdictions to progress shared sustainability goals [F, W]
Collaborate with clients to develop their water consumption/withdrawal/pollution reduction targets [W]
Collaborate with clients to develop their water security-related strategy and implementation plan [W]
Collaborate with clients to encourage water recycling/re-use [W]
Run a campaign to encourage innovation to reduce forests-related impacts [F]
Run a campaign to encourage innovation to reduce water-related impacts [W]
Run a campaign to encourage clients to work collaboratively with other basin users towards sustainable water management [W]
Collaborate with clients to advocate for policy or regulatory change to address WASH provision challenges [W]
Collaborate with clients to advocate for policy or regulatory change to address water availability and pollution challenges [W]
Other, please specify

Information collection (understanding client behavior)

Collect forests-related information at least annually from long-term clients [F]
Collect water-related information at least annually from long-term clients [W]
Other, please specify

Engagement & incentivization (changing client behavior)

Offer financial incentives for clients managing forests-related issues [F]
Offer financial incentives for clients managing water-related issues [W]
Offer financial incentives to clients for demonstrable progress against forests-related targets [F]
Offer financial incentives to clients for demonstrable progress against water-related targets [W]
Encourage better forests-related disclosure practices [F]
Encourage better water-related disclosure practices [W]
Encourage clients to engage in landscape/jurisdictional approaches to progress shared sustainability goals [F, W]
Encourage customers to switch to less resource-intensive methods of accessing your services [F]
Encourage clients to obtain third-party certifications to verify positive impacts on forests [F]
Encourage clients to obtain third-party certifications to verify positive impacts on water security [W]
Encourage clients to engage with suppliers to improve their capacity to comply with the company’s forests-related polices [F]
Encourage clients to engage with suppliers to improve their capacity to comply with the company’s water-related polices [W]
Avoid or divest from companies continuing to fail to meet forests-related expectations [F]
Avoid or divest from companies continuing to fail to meet water-related expectations [W]
Avoid or divest from companies that pose an unacceptable level of forests-related risks [F]
Avoid or divest from companies that pose an unacceptable level of water-related risks [W]
Other, please specify

Requested content

General

For climate change, this data is reported in C-FS12.1b.
Add a row for each type of client, issue area and type of engagement.

Type of clients (column 1)

The options shown will be driven by the organizational activities you selected in C-FS0.7
You should add a new row for each type of client you engage with. You can add additional rows for the same type of client to differentiate varying types of engagement if required.

Type of engagement (column 3)

Select one type of engagement activity your organization participates in from the drop-down options.
If you select “Other, please specify”, provide a label for the “Type of engagement”
Add another row to provide information about additional types of engagement:

- Education/information sharing: Engagement activities where the aim of is to educate and inform clients but not necessarily instigate any specific action.
- Collaboration & innovation: Engagement activities where the aim is to encourage clients to take specific actions to improve their forests- and/or water-related impacts. This can include formal campaigns as well as informal opportunities to reduce detrimental impacts.
- Information collection (understanding client behavior): Select this option if the purpose of your engagement with customers is to gather forests- and/or water-related data outside of specific initiatives.
- Engagement & incentivization (changing client behavior): Engagement activities where the aim is to change client behaviour so that forests- and/or water-related issues are ameliorated. This can include offering specific incentives for your clients to meet forests- and/or water-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial.

Details of engagement (column 4)

Expand on the “Type of engagement” (selected in column 3) your organization participates in by selecting the relevant details of engagement from the drop-down.

Portfolio coverage of engagement (column 5)

Indicate the coverage i.e. how much of your banking, investing (asset manager) and/or insurance portfolio you have engaged with in this way, based on either total or outstanding commitments, premiums, and/or committed capital.

Rationale for the coverage of your engagement (column 6)

Client engagement can be either untargeted (undertaken generally with all clients or undertaken with a selection of clients without a basis for the selection) or targeted at specific clients, such as clients in a particular sector with increased forest- and/or water-related risks relative to other sectors. There is a place for both, but targeted engagement may be more effective at driving change in the real economy.
Select the option which reflects your rationale for undertaking this engagement activity with the clients you have engaged with in this way.

Impact of engagement, including measures of success (column 7)

Describe the impact of this engagement and your company-specific method for measuring its success.
Include a company-specific description of any engagement activity you undertake with clients to manage forests- and/or water-related issues.
Please provide company-specific examples of positive outcomes achieved. For example, this could include clients adopting targets in relation to third-party certification or water efficiency in response to your engagement with them.

Explanation of terms

Portfolio: In the context of this questionnaire your portfolio is your entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.

(FW-FS4.1b) Give details of your forests- and/or water-related engagement strategy with your investees.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS4.1 in column 2 for any of the rows with “Investees” in column 1.

Change from last year

Minor change

Rationale

This question enables transparency regarding investee engagement processes. As the majority of financial sector organizations’ environmental risks and impacts occur in their portfolio(s), data users are interested in understanding how organizations are working with their investees to drive best practice and ameliorate forests- and/or water-related issues.

Response options

Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.

(*column/dropdown appearance is dependent on selections in this or other questions)

Issue area this engagement relates to*

Type of engagement

Details of engagement

Investing (asset manager) portfolio coverage of engagement*

Investing (asset owner) portfolio coverage of engagement*

Rationale for the coverage of your engagement*

Impact of engagement, including measures of success

Select from:

Forests
Water

Select from:

Education/information sharing
Collaboration & innovation
Engagement & incentivization (changing investee behavior)
Other, please specify

Select all that apply:

See drop-down options below

Percentage field [enter a percentage from 0-100]

Select from:

Non-targeted engagement
Engagement targeted at investees with increased forest-related risks [F]
Engagement targeted at investees with increased forests-related opportunities [F]
Engagement targeted at investees with increased water-related risks [W]
Engagement targeted at investees with increased water-related opportunities [W]
Engagement targeted at investees currently not meeting forests-related policy requirements [F]
Engagement targeted at investees currently not meeting water-related policy requirements [W]
Engagement targeted at investees with the highest potential impact on forests [F]
Engagement targeted at investees with the highest potential impact on water security [W]
Other, please specify

Text field [maximum 2,500 characters]

[Add row]

Details of engagement (column 3)

Education/information sharing

Engage with investees on measuring exposure to forests-related risk [F]
Engage with investees on measuring exposure to water-related risk [W]
Run an engagement campaign to educate investees about your expectations of them in relation to their impact on forests [F]
Run an engagement campaign to educate investees about your expectations of them in relation to their impact on water security [W]
Run an engagement campaign to educate investees about how your financing/insurance products can help them access opportunities related to reducing forests-related impacts [F]
Run an engagement campaign to educate investees about how your financing/insurance products can help them access opportunities related to reducing water security-related impacts [W]
Other, please specify

Collaboration and innovation

Collaborate with investees to develop their certification/traceability targets [F]
Collaborate with investees in landscapes/jurisdictions to progress shared sustainability goals [F, W]
Collaborate with investees to develop their water consumption/withdrawal/pollution reduction targets [W]
Run a campaign to encourage investees to work collaboratively with other basin users towards sustainable water management [W]
Collaborate with investees to advocate for policy or regulatory change to address WASH provision challenges [W]
Collaborate with investees to advocate for policy or regulatory change to address water availability and pollution challenges [W]
Run a campaign to encourage innovation to reduce forests-related impacts [F]
Run a campaign to encourage innovation to reduce water-related impacts [W]
Carry out collaborative engagements with other investors or institutions [F, W]
Other, please specify

Engagement & incentivization (changing investee behavior)

Offer financial incentives for investees managing forests-related issues [F]
Offer financial incentives for investees managing water-related issues [W]
Encourage better forests-related disclosure practices [F]
Encourage better water-related disclosure practices [W]
Encourage investees to engage in landscape/jurisdictional approaches to progress shared sustainability goals [F, W]
Encourage investees to obtain third-party certifications to verify positive impacts on forests [F]
Encourage investees to obtain third-party certifications to verify positive impacts on water security [W]
Encourage investees to engage with suppliers to improve their capacity to comply with the company’s forests-related polices [F]
Encourage investees to engage with suppliers to improve their capacity to comply with the company’s water-related polices [W]
Avoid or divest from companies continuing to fail to meet forests-related expectations [F]
Avoid or divest from companies continuing to fail to meet water-related expectations [W]
Avoid or divest from companies that pose an unacceptable level of forests-related risks [F]
Avoid or divest from companies that pose an unacceptable level of water-related risks [W]
Offer financial incentives to investees for demonstrable progress against forests-related targets [F]
Offer financial incentives to investees for demonstrable progress against water-related targets [W]
Other, please specify

Requested content

General

For climate change, this data is reported in C-FS12.1c.
Add a row for each issue area and type of engagement.

Type of engagement (column 2)

Select one type of engagement activity your organization participates in from the drop-down options.
If you select “Other, please specify”, provide a label for the “Type of engagement”
Add another row to provide information about additional types of engagement:

- Education/information sharing: Engagement activities where the aim is to educate and inform investees but not necessarily instigate any specific action.
- Collaboration & innovation: Engagement activities where the aim is to encourage investees to develop new ways to reduce the negative forests- and/or water-related impacts of the products/services that you are financing. This can include formal innovative collaboration projects, campaigns and calls for partnerships as well as informal opportunities to reduce negative impacts.
- Engagement & incentivization (changing investee behavior): Engagement activities where the aim is to change investee behaviour so that forests- and/or water-related issues are ameliorated. This can include offering specific incentives for your investees to meet forests- and/or water-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial.

Details of engagement (column 3)

Expand on the “Type of engagement” (selected in column 2) your organization participates in by selecting the relevant details of engagement from the drop-down.

Investing (asset manager) portfolio coverage of engagement (column 4), Investing (asset manager) portfolio coverage of engagement (column 5)

The columns presented depend on your selection in C-FS0.7.
Indicate the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity. Coverage can be based on either total assets under management or outstanding commitments, premiums, committed capital and/or other.

Rationale for the coverage of your engagement (column 6)

Investee engagement can be either untargeted (undertaken generally with all investees or undertaken with a selection of investees without a basis for the selection) or targeted at specific investees, such as investees in a particular sector with increased forest- and/or water-related risks relative to other sectors. There is a place for both, but targeted engagement may be more effective at driving change in the real economy.
Select the option which reflects your rationale for undertaking this engagement activity with the investees you have engaged with in this way.

Impact of engagement, including measures of success (column 7)

Discuss the impact of this engagement and how you measure its success.
Include a company-specific description of any engagement activity you undertake with investees to manage forests- and/or water-related issues.
Please provide company-specific examples of positive outcomes achieved. For example, this could include investees publicly disclosing forests- and/or water related information in response to your engagement with them.

FW-FS Shareholder voting

(FW-FS4.2) Does your organization exercise its voting rights as a shareholder on forests- and/or water-related issues?

Question dependencies

This question only appears if you select “Investing (Asset Manager)” and/or “Investing (Asset Owner)” in response to C-FS0.7 and you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of the same question.

Change from last year

Minor change

Rationale

Active ownership is a key tool for positively impacting the real economy because divestment alone leaves investors without a voice to promote sustainable practices. Alongside their investee engagement activities, investors can influence their investee companies on several issues, including forests- and water-related issues, by exercising their voting rights. Data users are interested in understanding how aligned shareholders’ voting decisions across the investment portfolio are with the overall environmental strategy and how they support forests- and/or water-related shareholder resolutions.

Response options

Please complete the following table.

(*column/row appearance is dependent on selections in this or other questions)

Issue area

We exercise voting rights as a shareholder on this issue area

Issues supported in shareholder resolutions*

Give details of the impact your voting has had on this issue area*

Explain why your organization does not exercise voting rights on this issue area and any plans to address this in the future*

Forests*

Select from:

Yes
No, but we plan to within the next two years
No, and we do not plan to in the next two years

Select all that apply:

Halting deforestation [F]
Reduce water withdrawal and/or consumption [W]
Improve water efficiency [W]
Reduce water pollution [W]
Water, Sanitation and Hygiene (WASH) provision for all workers [W]
Elimination of hazardous substances [W]
Other, please specify

Text field [maximum 2,500 characters]

Water*

Requested content

General

For climate change, this data is reported in C-FS12.2.

We exercise voting rights as a shareholder on this issue area (column 2)

Select “Yes” if you exercise your voting rights as a shareholder, including directly and indirectly (e.g., through an external service provider).
Select “No, but we plan to within the next two years” if you currently do not exercise voting rights for the issue area(s) but have plans to do so within the next two years.
Only select "No" if you do not exercise voting rights for the issue area(s), and do not plan to do so.

Issues supported in shareholder resolutions (column 3)

This column is only shown if you select “Yes” option in column 2.
Select which forests- and/or water-related issues you have supported in shareholder resolutions during the reporting year.
If you have supported a forests- and/or water-related issue that is not in the list, select “Other, please specify” and provide a label.

Give details of the impact your voting has had on this issue area (column 4)

This column is only shown if you select “Yes” option in column 2.
Give details on the issues your organization has supported by using voting rights and indicate the outcomes this has had on forests- and/or water related issues.

Explanation of terms

Deforestation: loss of natural forest as a result of the following human activities: i) conversion to agriculture or other non-forest land use; ii) conversion to a tree plantation; or iii) severe and sustained degradation.

- Severe degradation constitutes deforestation even if the land is not subsequently used for non-forest land use.
- Loss of natural forest that meets this definition is considered to be deforestation regardless of whether or not it is legally permitted.
- Deforestation signifies “gross deforestation” of a natural forest where “gross” is used in the sense of “total; aggregate; without deduction for reforestation or other offsets” (AFi, 2019).

Water withdrawal: The sum of all water drawn into the boundaries of an organization from all sources for any use over the course of a reporting period.
Water consumption: The amount of water that is drawn into the boundaries of an organization and not discharged back to the water environment or a third party over the course of a reporting year.
Water efficiency: A measure of economic value produced from water withdrawals. This is often calculated as revenue (or other financial metric) per water withdrawal or use volume.

Additional information

The process and language around resolutions vary by region. At this time, CDP cannot advise on the resolution process, but companies can refer to the Say on Climate campaign website or engage with its other supporting partners As You Sow (US), Share Action (UK/EU), or ACCR (AsiaPac/Australasia) that are focused on this work.

FW-FS Engagement with smallholders

(FW-FS4.3) Does your organization provide financing and/or insurance to smallholders in the agricultural commodity supply chain?

Question dependencies

This question only appears if you select “Yes” in column 2 of either the “Banking (Bank)” row or “Insurance underwriting (Insurance company)” row in response to C-FS0.7 and you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of at least one of these rows.

Change from last year

Minor change

Rationale

Access to credit/insurance for smallholder producers is a pertinent issue. In some cases, a lack of access to credit is driving behaviors that result in deforestation, conversion of natural ecosystems and/or impacting watershed health. However, CDP recognizes that not all financial services companies' have the ability to finance/insure smallholders in agricultural commodity supply chains. For example, many banks and insurers lack the vast branch network in rural areas where agricultural commodities are produced required to service smallholder producers at scale.

This question seeks to collect data from banks and insurance companies on whether they provide financing/insurance to smallholders, and if not, what barriers exist, which could signpost governments and other stakeholders in their efforts to reduce barriers and promote sustainable development.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Provide financing and/or insurance to smallholders in the agricultural commodity supply chain

Agricultural commodity*

Primary reason for not providing finance and/or insurance to smallholders*

Explain why your organization does not provide finance/insurance to smallholders and any plans to change this in the future*

Select from:

Yes
No, but we plan to in the next two years
No, and we do not plan to in the next two years

Select all that apply:

Crops:

Timber products [F]
Palm oil [F, W]
Soy [F, W]
Rubber [F]
Cocoa [F, W]
Coffee [F, W]
Cotton [W]
Sugar [W]
Tobacco [W]
Rice [W]
Maize/corn [W]
Fruit [W]
Grain [W]
Nuts [W]
Tea [W]
Vegetable [W]
Other oilseeds [W]
Other, please specify [F, W]

Cattle and animal:

Cattle products [F, W]
Dairy and egg products [W]
Fish and seafood from aquaculture [W]
Poultry and hog [W]
Other, please specify [F, W]

Select all that apply:

High risk and volatile sector
Low yields
Lack of government subsidies
Not a strategic focus
Other, please specify

Text field [maximum 2,500 characters]

Requested Content

Agricultural commodity (column 2)

This column is only shown if you select “Yes” in column 1.
The commodities asked about in this question are forests risk commodities and/or commodities with critical impact on water, meaning their production poses risks to forests, natural ecosystems and/or watershed health.
Select all agricultural commodities you provide finance or insurance to.

Primary reason for not providing finance and/or insurance to smallholders (column 3)

This column is only shown if you select a “No” option in column 1.
If your organization does not currently finance or provide insurance to smallholders, select the main barriers preventing you from doing so, and provide further details in column 4.

Explanation of terms

The following forest risk commodities and/or commodities with critical impact on water are asked about in this questionnaire:

- Timber products: This includes all solid timber as well as products made from processed wood fiber such as paper, packaging, cardboard and specialty fibers (e.g., viscose). It also includes timber products used for biomass.
- Palm oil: This includes crude palm oil, palm kernel oil, and all of its derivatives. Please note that palm oil used for biofuel production is also included in this category.
- Cattle products: This includes all food products containing beef, all clothing, furniture and accessories that are made of leather, tallow, and all other products derived from cattle. Please note that tallow used for biofuel production is also included in this category. Dairy products are not included in this category.
- Soy: This includes all meal or oil containing soy and any derivatives that are obtained from soy. Please note that soy used for biofuel production is also included in this category.
- Rubber: This includes all rubber products deriving from natural rubber production. Please note that the tire industry is included in this category.
- Cocoa: This includes all food or other products containing cocoa, cocoa derivatives such as cocoa butter or pectin, or any products derived from cocoa husks such as animal feed or potash.
- Coffee: This includes all products from or derived from coffee plants, including the beans, cherries and husks.
- Sugar: This includes all products containing sugar from sugar cane, or products derived from sugar cane and sugar cane production.
- Tobacco: This includes all products derived from tobacco plants, including smoking tobacco, smokeless tobacco products, and insecticides.
- Rice: This includes all food or other products containing rice or rice derivatives. Please note that rice used for biofuel production is also included in this category.
- Maize: This includes all food or other products containing maize or maize derivatives. Please note that maize used for biofuel production is also included in this category.

Smallholders: Are small-scale agricultural producers with high dependence on family labor, generally having low levels of productivity, small land footprint, significant economic and information constraints and/or farmers profit being the primary source of income for the smallholder and their family (adapted from AFi, 2019).

(FW-FS4.3a) Describe how the financing/insurance your organization provides enables smallholders to improve agricultural practices and reduce deforestation and/or water insecurity.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS4.3.

Change from last year

No change

Rationale

Consistently low yields produced by agricultural smallholders are a common problem in developing countries/areas. They are explained mainly by a lack of access to quality inputs, limited technical knowledge and a lack of access to credit/insurance. While global demand rises, consistently low yields put increasing pressure on remaining forests and watershed health. This makes smallholder financing/insuring a pertinent issue.

Data users are interested in the financing and/or insurance approaches financial institutions are taking with smallholders and any other engagement they are undertaking with smallholders.

Response options

Please complete the following table:

(*column/row/dropdown appearance is dependent on selections in this or other questions)

Commodity*

Financial service provided*

Smallholder financing/insurance approach

Other smallholder engagement approaches

Number of smallholders supported

Explain how the financing/insurance your organization provides enables smallholders to improve agricultural practices and reduce deforestation and/or water insecurity

[List compiled from FW-FS4.3]

Select all that apply:

Banking
Insurance

Select all that apply:

Financial incentives for sustainable practices
Use of government subsidized schemes
Long term financing/insurance contracts
Other, please specify

Select all that apply:

Organizing capacity building events
Disseminating technical materials
Supporting smallholders to clarify and secure land tenure rights
Prioritizing support for smallholders in high-risk deforestation regions
Support for smallholders in high-risk water stress regions
Other, please specify
Other than financing/insuring, we do not engage in other support for smallholders

Numerical field [enter a range of 0-999,999,999,999 using a maximum of 0 decimal places and no commas]

Text field [maximum 2,500 characters]

Requested Content

Commodity (column 1)

A row will appear for each commodity selected in column 2 of FW-FS4.3. Please respond to all rows.

Smallholder financing/insurance approach (column 3)

For each commodity, specify the financing/insurance approach(es) that best reflect those adopted by your organization:

- Financial incentives refer to financing/insurance where the pricing is linked to sustainability-related outcomes or practices.
- Government schemes would include those such as KUR (Kredit Usaha Rakyat) in Indonesia.
- To be considered long-term, financing/insurance should have a sufficient tenor to support smallholders with replanting given the yield profile of the commodity over its productive life.

If you employ several approaches with smallholders for a selected commodity, select all that apply.
If you support smallholders through a financing/insurance approach that is not listed as an option, select “Other, please specify” and specify your approach.

Other smallholder engagement approaches (column 4)

Specify any other engagement approach(es) that reflect those adopted by your organization.
If you employ several approaches with smallholders for a selected commodity, select all that apply.
If you support smallholders through an engagement approach that is not listed as an option, select “Other, please specify” and specify your approach.

Number of smallholders supported (column 5)

Provide the estimated number of smallholders that are currently covered by your financing and/or insurance approach.

Explain how the financing/insurance your organization provides enables smallholders to improve agricultural practices and reduce deforestation and/or water insecurity (column 6)

Provide additional information on the details of your smallholder engagement approach, including whether you engage with individual smallholders or groups. If you are engaging with groups of smallholders, detail how those groups are chosen.
Include one or more examples of supplier engagement and impact achieved on the ground.

Additional information

A useful review of smallholder financing approaches (in the context of Indonesian palm oil) is available here.

An example of how leveraging financing for farmers can promote water security is available here: Innovative Funding and Financing for Watershed Health: Opportunities for Corporate Engagement - CEO Water Mandate (CEO Water Mandate, TNC and WRG2030)

FW-FS Engagement with regulators

(FW-FS4.4) Does your organization engage in activities that could directly or indirectly influence policy, law, or regulation that may impact forests and/or water security?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

Modified question

Rationale

Ambition: Companies assess whether both their active and passive associations/activities could directly or indirectly influence policy, law, or regulation that may impact forests and/or water security.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Issue area(s)

External engagement activities that could directly or indirectly influence policy, law, or regulation that may impact this issue area

Primary reason for not engaging in activities that could directly or indirectly influence policy, law, or regulation that may impact this issue area*

Explain why you do not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact this issue area*

Forests*

Select all that apply:

Yes, we engage directly with policy makers
Yes, our membership of/engagement with trade associations could influence policy, law, or regulation that may impact this issue area
Yes, we fund organizations or individuals whose activities could influence policy, law, or regulation that may impact this issue area
No, we have assessed our activities, and none could either directly or indirectly influence policy, law, or regulation that may impact this issue area
Not assessed

Select from:

Important but not an immediate priority
Judged to be unimportant
Lack of internal resources
No instruction from management
Other, please specify

Text field [maximum 2,500 characters]

Water*

Requested Content

General

For climate change, this data is reported in C12.3.
This question is focused on external engagement with policy makers, government departments, or regulatory bodies on a regional, local, national, or international level.
Responses should be relevant to the reporting year only.
There will be a wide range of activities that could be considered as engagement that influences public policy. In response to this question, please select all that apply regardless of your role and how significant those activities are for your company or a third party.
If you fund political candidates or parties you should select “Yes, we fund organizations or individuals whose activities could influence policy, law, or regulation that may impact deforestation and/or water security” even if you do not engage with them directly on specific legislation.
If you select “No…” or "Not assessed", do not select any other options.

Primary reason for not engaging in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate (column 3)

This column only appears if “No, we have assessed and none of our activities could directly or indirectly influence policy, law, or regulation that may impact this issue area” is selected in “Engagement in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate” (column 2).
If more than one reason applies to your organization, select the reason which is most relevant and elaborate on the other reason(s) in column 4.

Explain why you do not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact this issue area (column 4)

This column only appears if “No, we have assessed our activities, and none could either directly or indirectly influence policy, law, or regulation that may impact this issue area" is selected in column 2.
Please provide a company-specific explanation as to why you do not engage in activities which could directly or indirectly influence policy, law, or regulation that may impact the issue area(s) and any plans you have to change that in the future.

Explanation of terms

Direct engagement: This includes all activity where companies (or their representatives such as law firms or public affairs agencies engaged directly by the company) engage with policy makers or regulators on the development of law or regulation. Examples of such activities include responding to a consultation, sitting on a working group or lobbying activities directed at individuals or groups that are part of the process of developing, reviewing or amending a law or regulation. Direct engagement can include any stage in the policy or regulation development process, from the selection of options to final consultation comments, but does not include compliance with a new or updated requirement once it has come into force.
Trade associations: Trade associations (sometimes also referred to as industry associations, trade groups, trade bodies, or industry trade groups) are an association of people or companies in a particular business or trade, organized to promote their common interests. Trade associations are relevant here as they present an “industry voice” to governments to influence their policy development. The majority of organizations are members of multiple trade associations, many of which take a position on environmental matters and actively engage with policy makers on the development of policy and legislation on behalf of their members.
Funding other organizations: In this context, other organizations can include research institutions, Non-Governmental Organizations (NGOs), trusts, universities, and other organizations that operate in the deforestation or water security subject area on projects intended for public dissemination that aim to influence policy. Funding may take the form of membership fees, sponsorship, donations etc. offered to organizations. The financial support that you give them may or may not be forests- and/or water-related, however if they do engage in work on forests and/or water security then you should select this option.

(FW-FS4.4a) On what policy, law, or regulation that may impact forests and/or water security have you been engaging directly with policy makers in the reporting year?

Question dependencies

This question only appears if you select any “Yes, we engage directly with policy makers” in response to FW-FS4.4 in column 2.

Change from last year

Minor change

Rationale

Participating in engagement activities that can directly or indirectly influence public policy on forests- and/or water-related issues are of interest to CDP data users wishing to understand how this relates to other environmental stances taken. This question provides increased transparency regarding the public policy issues that organizations have been engaging on and the activities they use to influence public policy.

Ambition: Financial services companies engage with policy makers to ensure a deforestation free and water secure world.

Response options

Please complete the following table. You are able to add rows by using the "Add row" button at the bottom of the table.

Issue area(s)

Focus of policy, law or regulation that may impact this issue area

Specify the policy, law or regulation on which your organization is engaging with policymakers

Policy, law or regulation coverage

Country/area/region the policy, law or regulation applies to

Your organization’s position on the policy, law or regulation

Description of engagement with policymakers

Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation

Have you evaluated whether your engagement on this policy, law, or regulation is aligned with the Sustainable Development Goals?

Select from:

Forests
Water

Select all that apply from drop-down options below

Text field [maximum 1,500 characters]

Select from:

Global
Regional
National
Sub-national
Unknown

Select all that apply:

[Country/area/region drop-down list]

Select from:

Oppose
Neutral
Support with no exceptions
Support with minor exceptions
Support with major exception
Undecided

Text field [maximum 2,500 characters]

Select from:

Yes, we have evaluated, and it is aligned
Yes, we have evaluated, and it is not aligned
No, we have not evaluated

[Add row]

Focus of policy, law or regulation that may impact forests and/or water security (column 2)

Circular economy [F, W]
Environmental registry [F, W]
Extended Producer Responsibility (EPR) [F, W]
Flood/drought resilience [W]
Forests stewardship practices and standards [F]
Food security [F, W]
Hazardous substances control [W]
International law and bilateral agreements [F, W]
International trade agreement [F, W]
Land tenure regulations [F, W]
Mandatory forest private reserves [F]
Mandatory reporting [F, W]
Operations permits [F]
Responsible water withdrawal and/or consumption [W]
Subsidies on products [F]
Sustainable finance [F, W]
Taxes on products [F]
Taxonomies [F, W]
Traceability requirements [F]
Transparency requirements [F]
Verification and audits [F, W]
Water allocation/re-allocation [W]
Water pricing/tariffs [W]
Water quality and/or discharge treatment standards and requirements [W]
Water rights [W]
Water stewardship practices and standards [W]
Zero deforestation [F]
Other, please specify

Requested Content

General

For climate change, this data is reported in C12.3a.

Issue area (column 1)

The dropdowns presented in this column depend on your response to question FW-FS4.4.
You should add a row for each issue area and describe your engagement with policy makers in the subsequent columns.

Focus of policy, law or regulation that may impact this issue area (column 2)

This column relates to the general area in which the legislation that your organization is engaging on falls.
The data from this column allows CDP data users to assess comparable legislative developments across multiple geographies.
There is no need to provide details on all legislation types – only those on which you have been actively engaging in the reporting year.

Specify the policy, law or regulation on which your organization is engaging with policymakers (column 3)

Provide the name of the legislation and the key actions it proposes.

Country/area/region the policy, law or regulation applies to (column 5)

This column only appears if “Regional”, “National”, “Sub-national” is selected in “Policy, law or regulation coverage” (column 4)
If the policy, law, or regulation is at the sub-national level, select “Other, please specify” and specify the region(s) within a nation to which it applies.

Your organization’s position on the policy, law or regulation (column 6)

This should reflect your organization’s overall position on this particular legislation. For example:

- “Support with no exceptions” – select this option if you are engaging in full support of this legislation across all the geographies in which you are engaging on it
- “Support with minor exceptions” – select this option if you are engaging in support of this legislation with either minor exceptions to the approach or with minor exceptions to geographies for whom it is proposed and where you are actively engaging. For example, if you support the principle of a carbon tax but oppose certain ways in which it is being applied, select this option. You will be given the chance to explain any exceptions in column 8.
- “Support with major exceptions” – select this option if you are engaging in support of this legislation with either major exceptions to the approach or with major exceptions to geographies for whom it is proposed and where you are actively engaging.
- “Neutral” – select this option if you have taken part in engagement activities for this legislation but have not put forward a view.
- “Oppose” – select this option if you have been engaging against this legislation across all relevant geographies.
- “Undecided” – select this option if you have been engaging on this legislation at an early stage in the development process and have yet to give an opinion or attempt to influence the policy development process in any direction.

Description of engagement with policymakers (column 7)

Use the text field to provide details of how your organization is engaging (e.g., responding to a consultation, meeting directly with policy makers, etc.) on the legislation.

Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation (column 8)

This column only appears if “Support with minor exceptions”, “Support with major exceptions”, or “Oppose” is selected in “Your organization’s position on the policy, law or regulation” (column 6)
If your organization supports the legislation with exceptions, provide details of the exceptions and what you would propose in their place.
If your organization opposes the legislation, provide details of an alternative legislative approach that you feel would more effectively eliminate deforestation and improve water security.

Have you evaluated whether your engagement on this policy, law, or regulation is aligned with the Sustainable Development Goals? (column 9)

Please consider SDG 6, SDG 9, SDG 12 and SDG 15 during your evaluation.

FW-FS Portfolio impact

FW-FS Measurement of portfolio impact

(FW-FS5.1) Does your organization measure its portfolio impact on forests and/or water security?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

Most of financial institutions’ impact on forests and/or water security occurs in their portfolio(s) - within the financial products and services they provide and/or in their investments. Metrics for measuring portfolio impact on forests and water security are in their infancy, so this question allows financial institutions to explain if they are assessing their portfolio impact, and if they use any KPIs to measure impact on forests and/or water security.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Portfolio impact	We measure our portfolio impact on this issue area	Explain how your organization measures its portfolio impact on this issue area, including any metrics used to quantify impact*	Primary reason for not measuring portfolio impact on this issue area*	Explain why your organization does not measure its portfolio impact on this issue area and any plans to change this in the future*
Banking – Impact on Forests*	Select from: Yes No, but we plan to in the next two years No, and we don't plan to in the next two years	Text field [maximum 5,000 characters]	Select from: Important but not an immediate priority Judged to be unimportant Lack of tools or methodologies available Lack of internal resources No instruction from management Other, please specify	Text field [maximum 5,000 characters]
Banking – Impact on Water*
Investing (Asset manager) – Impact on Forests*
Investing (Asset manager) – Impact on Water*
Investing (Asset owner) – Impact on Forests*
Investing (Asset owner) – Impact on Water*
Insurance underwriting – Impact on Forests*
Insurance underwriting – Impact on Water*

Requested content

General

For climate change, this data is reported in C-FS14.1.

Portfolio exposure (column 1)

The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to a financial portfolio’s impact on forests and/or water security. Please respond to all rows.

Explain how your organization measures its portfolio impact on this issue area, including any metrics used to quantify impact (column 3)

This column will only appear if you select “Yes” in column 2
Please explain your organization’s approach to measuring its impact on forests and/or water security via the activities it lends to, invests in and/or insures in the real economy.
Indicate any tools or methodologies used in your assessment, as well as any metrics used to measure impact.
Subsequent questions will ask about forests-related portfolio impact metrics to allow CDP data users to understand what proportion of financing/insurance directed to companies in the forest risk commodity supply chains is sustainable
When explaining your organization’s approach to measuring its portfolio impact on water, please indicate which water-related contextual issues are considered (e.g., water availability, water quality, access to WASH services).
Questions will specifically ask about water-related portfolio impact metrics in future years.

Primary reason for not measuring portfolio impact on this issue area (column 4)

This column will only appear if you select a “No” option in column 2.
Select the reason that best describes why your organization does not measure any forest- and/or water-related portfolio impacts on the issue area in column 1, and provide an explanation in column 5

Explanation of terms

Portfolio: In the context of this questionnaire your portfolio is your entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
Portfolio impact: A variety of metrics exist to help financial institutions measure the impact of their lending, investment and insurance underwriting activities on the climate, such as portfolio emissions and exposure to carbon-related assets. There are no globally accepted equivalent metrics expressing portfolio impact on forests and/or water. Financial institutions should consider how to quantify the impact of their lending, investment and insurance underwriting activities on forests and/or water security.

(FW-FS5.2) Does your organization provide finance or insurance to companies operating in any stages of the following forest risk commodity supply chains, and are you able to report on the amount of finance/insurance provided?

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests in column 4 of question C-FS0.7.

Change from last year

No change

Rationale

A few key agricultural commodities cause more than 60% of forest loss in Latin America and Southeast Asia; and this is usually a permanent loss. While not all forest risk commodity production is necessarily harmful, understanding the concentrations of forest risk commodity related assets in portfolios will enable financial institutions to understand where there is the potential for deforestation impacts; and where enhanced policies are needed to prevent it.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Forest risk commodity	Finance or insurance provided to companies operating in the supply chain for this commodity	Amount of finance/insurance provided will be reported*	Explain why your organization is unable to report on the amount of finance/insurance provided for this commodity*
Lending to companies operating in the timber products supply chain*	Select from Yes No	Select from Yes No, but we plan to assess our portfolio’s exposure to this commodity in the next two years No, and we do not plan to assess our portfolio’s exposure in the next two years	Text field [maximum 2,500 characters]
Lending to companies operating in the palm oil products supply chain*
Lending to companies operating in the cattle products supply chain*
Lending to companies operating in the soy supply chain*
Lending to companies operating in the rubber supply chain*
Lending to companies operating in the cocoa supply chain*
Lending to companies operating in the coffee supply chain*
Investing (asset manager) to companies operating in the timber products supply chain*
Investing (asset manager) to companies operating in the palm oil products supply chain*
Investing (asset manager) to companies operating in the cattle products supply chain*
Investing (asset manager) to companies operating in the soy supply chain*
Investing (asset manager) to companies operating in the rubber supply chain*
Investing (asset manager) to companies operating in the cocoa supply chain*
Investing (asset manager) to companies operating in the coffee supply chain*
Investing (asset owner) to companies operating in the timber products supply chain*
Investing (asset owner) to companies operating in the palm oil products supply chain*
Investing (asset owner) to companies operating in the cattle products supply chain*
Investing (asset owner) to companies operating in the soy supply chain*
Investing (asset owner) to companies operating in the rubber supply chain*
Investing (asset owner) to companies operating in the cocoa supply chain*
Investing (asset owner) to companies operating in the coffee supply chain*
Insuring companies operating in the timber products supply chain*
Insuring companies operating in the palm oil products supply chain*
Insuring companies operating in the cattle products supply chain*
Insuring companies operating in the soy supply chain*
Insuring companies operating in the rubber supply chain*
Insuring companies operating in the cocoa supply chain*
Insuring companies operating in the coffee supply chain*

Requested content

Forest risk commodity (column 1)

The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to a portfolio activity, i.e., lending to, investing in or insuring companies operating in the forest risk commodity supply chain. There is a row for each forest risk commodity asked about in this questionnaire: timber products, palm oil products, cattle products, soy, rubber, cocoa, and coffee. Please respond to all rows.
CDP recognizes that financial institutions use their own classification systems for industries and economic activities, and so are likely have their approach to identifying which clients/investees operate in the value chains of various agricultural commodities. Therefore, you can use your own classification systems for which clients/investees operate in each commodity.

Finance or insurance provided to companies operating in the supply chain for this commodity (column 2)

For each forest risk commodity listed in column 1, indicate if you are providing financing (lending or investment) or insurance to companies operating in the supply chain for that commodity within the reporting year.

Amount of finance/insurance provided will be reported (column 3)

This column only appears if “Yes” is selected in column 2
State whether the amount of finance/insurance provided to companies operating in the supply chain for the commodity given in column 1 will be reported in the subsequent question.

Explain why your organization is unable to report on the amount of finance/insurance provided for this commodity (column 4)

This column is only presented if your organization responds “Yes” to providing financing/insurance to the commodity in column 2 but selects a “No” option in column 3.
Provide the main rationale for not reporting on the amount of financing/insurance provided to companies operating in the supply chain of the commodity.
If applicable, give details of your organization's plans to report on this.

Explanation of terms

Forest risk commodities: The following are asked about in this questionnaire:

Forest risk commodity supply chain stage: CDP’s forest program requests forests-related disclosures from companies with business activities corresponding to the following stages of forest risk commodity supply chains:

- Production: this is the first stage of the supply chain and generally refers to the production of raw agricultural and forests products by farm owners, smallholders, and communities. Vertically integrated companies are also involved in producing activities if they own or manage land used for the production of forests risk commodities.
- Processing: this encompasses the initial transformative activities that will add value to raw materials. For example, the production of crude palm oil from crushed fruit, the production of soybean oil and soybean meal from soybean, the initial processing of timber products in mills (i.e., sawmills, plywood and veneer mills, pulp and paper mills), the slaughtering of cattle and the processing of raw hide into leather. Further processing activities in the form of refining and fractionation should be considered in the manufacturing stage.
- Trading: businesses that purchase and sell raw or primary processed agricultural or forestry materials to either domestic or export markets. This includes the shipment, transport and storage of the forest risk commodities.
- Manufacturing: this includes the production of final ingredients for the food, feed and fuel sectors from raw or processed materials.
- Retailing: businesses that sell products directly to individual consumers.

(FW-FS5.2a) For each portfolio activity, state the value of your financing and/or insurance of companies operating in forests risk commodity supply chains in the reporting year.

Question dependencies

This question only appears if you select “Yes” in response to FW-FS5.2 in column 3 for any of the rows. Rows will be presented according to the forest risk commodities reported on in response to FW-FS5.2.

Change from last year

No change

Rationale

A few key agricultural commodities cause more than 60% of forest loss in Latin America and Southeast Asia; and this is usually a permanent loss. While not all forest risk commodity production is necessarily harmful, understanding the concentrations of forest risk commodity related assets in portfolios will enable financial services companies to understand where there is the potential for deforestation impacts; and where enhanced policies are needed to prevent it.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Forest risk commodity	Forest risk commodity supply chain stage coverage	Portfolio exposure (unit currency – as specified in C0.4)	New loans advanced in reporting year (unit currency – as specified in C0.4)*	Total premium written in reporting year (unit currency – as specified in C0.4)*	Percentage portfolio value
[List compiled from FW-FS5.2]*	Select all that apply: Production Processing Trading Manufacturing Retailing	Numeric field [enter a number from 0-999,999,999,999,999 using a maximum of 3 decimal places and no commas]	Numeric field [enter a number from 0-999,999,999,999,999 using a maximum of 3 decimal places and no commas]	Numeric field [enter a number from 0-999,999,999,999,999 using a maximum of 3 decimal places and no commas]	Percentage field [enter a percentage from 0-100]

Requested content

General

A row will appear for each forest risk commodity you select “Yes” for in column 3 of FW-FS5.2. Please respond to all rows.

Forest risk commodity supply chain stage coverage (column 2)

Indicate which stages in the forest risk commodity supply chain the companies you are providing a financing/insurance figure for operate in.

Portfolio exposure (unit currency as specified in C0.4) (Column 3)

This figure should be in the same currency that you selected in C0.4.
For lending and investing rows, report the total value of loans/investments to companies operating in the forest risk commodity supply chain outstanding in your portfolio at the end of the reporting year. For insurance rows, report the total sums insured for companies operating in the forest risk commodity supply chain in your portfolio for the reporting year.

New loans advanced in reporting year* (unit currency as reported in C0.4) (column 4)

This figure should be in the same currency selected in C0.4.
Include new loans advanced to companies operating in the forest risk commodity supply chain, even if the loan has subsequently been removed from your portfolio. This module is asking about portfolio impact – impact on forests cannot be transferred in the same way that risk to your portfolio can.

Total premium written** (unit currency as reported in C0.4) (column 5)

This figure should be in the same currency that you selected in C0.4.
Report the Gross Written Premium (GWP) including direct and assumed that is written (before deductions for reinsurance and ceding commission) for companies operating in the forest risk commodity supply chain in the reporting year.

Percentage portfolio value (column 6)

Provide a percentage value for the exposure reported in column 3 in relation to your total portfolio value.

Explanation of Terms

Forest risk commodities: The following are asked about in this questionnaire:

Forest risk commodity supply chain stage: CDP’s forest program requests forests-related disclosures from companies with business activities corresponding to the following stages of forest risk commodity supply chains:

(FW-FS5.3) Indicate whether you measure the percentage of clients/investees compliant with your forests- and/or water-related requirements stated in question FW-FS3.5, and provide details.

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7 and you select “Yes” in response to FW-FS3.5.

Change from last year

New question

Rationale

This question allows data users to understand how financial services companies enforce compliance with their policies and their forests- and/or water-related requirements.

Ambition: Financial services companies ensure that their clients and investees are compliant with all policies including forests- and/or water-related requirements.

Portfolio	Issue area(s) the requirements cover	Forests risk commodity covered by the requirements	Commodities with a critical impact on water security covered by the requirements	Measurement of proportion of clients/investees compliant with forests- or water-related requirements	Metric used for compliance with forests-related requirements
1	2	3	4	5	6
Select from: Banking (Bank) Investing (Asset manager) Investing (Asset owner) Insurance (Insurance company)	Select from: Forests Water Security	Select all that apply: All agricultural commodities Timber products Palm oil Cattle products Soy Rubber Cocoa Coffee	Select all that apply: Palm oil Soy Cocoa Coffee Cotton Sugar Tobacco Rice Maize/corn Fruit Grain Nuts Tea Vegetable Other oilseeds Dairy and egg products Fish and seafood from aquaculture Poultry and hog	Select from: Yes No, but we plan to measure this within the next two years No, and we do not plan to measure this in the next two years	Text field [maximum 2,500 characters]

Metric used for compliance with water-related requirements	% clients/investees compliant with forests- or water-related requirements	% portfolio value that is compliant with forest- or water-related requirements	Target year for 100% compliance	Explain why your organization does not measure the % of clients/investees compliant with forests- or water-related requirements, and any plans to address this in the future
7	8	9	10	11
Select from: Drop down options below	Percentage field [enter a percentage from 0-100 using a maximum of 0 decimal places and no commas]	Percentage field [enter a percentage from 0-100 using a maximum of 0 decimal places and no commas]	Select from: Already met Within the next year Within the next 2 years Within the next 5 years In more than 5 years No timeframe We have not set a target for 100% compliance	Text field [maximum 2,500 characters]

[Add row]

Metric used for compliance with water-related requirements (column 7)

Select from:

Percentage of portfolio companies/clients/investees that have pollution-related targets
Percentage of portfolio companies/clients/investees that have water withdrawal reduction targets
Percentage of portfolio companies/clients/investees that are reducing water withdrawals in high stressed basins
Percentage of portfolio companies/clients/investees that commit to ensuring access to fully functioning WASH services across their direct and indirect workforce
Percentage of portfolio companies/clients/investees that achieve a CDP Water Security A score
Other, please specify

Requested content

General

This question asks whether your clients/investees meet your policy requirements on how to manage impact on forests and/or water. You should refer to the forests- and/or water-related requirements which you reported in FW-FS3.5a.
For the purpose of this question, focus on your corporate clients rather than individual clients.
Provide information for each portfolio.

Issue area(s) the requirements cover (column 2)

To report on multiple requirements per issue area, add rows for the corresponding portfolio.

Forests risk commodity covered by the requirements (column 3)

If reporting forests- related requirements, select all the commodities covered by this requirement.

Commodities with a critical impact on water security covered by the requirements (column 4)

If reporting water- related requirements, select all the commodities covered by this requirement.

Measurement of proportion of clients/investees compliant with forests- or water-related requirements (column 5)

For each portfolio covered by forests- and/or water-related requirements, select if you are able to provide data on the clients/investees compliant with your requirements.
If you have forests- and/or water-related requirements for clients/investees but you do not record compliance against the requirements, but you plan to in the next 2 years, select “No, but we plan to measure this within the next two years”.
If you have forests- and/or water-related requirements for clients/investees but you do not record compliance against the requirements, and do not plan to in the next 2 years, select “No, and we do not plan to measure this in the next two years”.

Metric used for compliance with forests-related requirements (column 6)

Explain what measurement is used for calculating the proportion of clients/investees compliant with forests-related requirements.

Metric used for compliance with water-related requirements (column 7)

Select the measurement used for calculating the proportion of clients/investees compliant with water-related requirements.

% clients/investees compliant with forests- or water-related requirements (column 8)

Provide a percentage value for the number of clients/investees that meet all your requirements, in relation to the total number of clients/investees within the portfolio.

% portfolio value that is compliant with forest- or water-related requirements (column 9)

Provide a percentage value for the portfolio exposure to clients/investees that meet all your requirements, in relation to the total exposure to all clients/investees within the portfolio.

Target year for 100% compliance (column 10)

For each row, select the target timeframe for achieving 100% compliance of the portfolio with the reported requirement/s.
If you have set a target to achieve 100% compliance, but do not have a specific deadline, select “No timeframe”.
If you do not plan on achieving 100% compliance, select “We have not set a target for 100% compliance”.

Explain why your organization does not measure the % of clients/investees compliant with forests- or water-related requirements, and any plans to address this in the future (column 11)

If you have not provided percentages for clients/investees compliance with forests- and/or water-related requirements, explain why here.
If applicable, give details of your organization’s plans to measure compliance with forests- and/or water-related requirements.

Explanation of terms

Forests- and/or water-related requirements: This covers policy requirements clients/investees need to meet (i.e. requirements for which you are willing to decline participation in financing deals and exit existing relationships over a period of time, if not met by the client);
WASH services: Refers to water, sanitation, and hygiene services.

FW-FS Communications

(FW-FS6.1) Have you published information about your organization’s response to forests- and/or water-related issues for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

Question dependencies

This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.

Change from last year

Modified question

Rationale

Best practice in corporate environmental reporting is to integrate non-financial metrics and data into mainstream financial reports. Data users want to understand where and how companies communicate their forests- and water-related strategies, and whether these communications are in line with best practice.

Ambition: Financial services companies integrate forests- and/or water-related data and metrics into mainstream financial reports.

Response options

Please complete the following table:

(*column/row appearance is dependent on selections in this or other questions)

Focus of the Publication	Publication	Status*	Attach the document*	Page/Section reference*	Content elements*	Comment
Select from: Forests Water Security	Select from: In mainstream reports In other regulatory filings In voluntary communications In a voluntary sustainability report No publications, but reporting is underway to publish information about our response to forests- and/or water-related issues in the next two years No publications Other, please specify	Select from: Complete Underway – previous year attached Underway – this is our first year	[Attach the document]	Text field [maximum 500 characters]	Select all that apply: Governance Strategy Risks and opportunities Response to forests- and/or water-related risks and opportunities Financing and/or insurance of agricultrual commodities Other, please specify	Text field [maximum 2,500 characters]

[Add row]

Requested content

General

For climate change, this data is reported in C12.4.
This question asks about communication of your position on deforestation and water security outside of your CDP response.
Privately held companies that do not have a legal obligation to produce annual reporting should still select “In mainstream reports” if they publish any annual sustainability reporting.
Even where the relevant information is web-based, you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfil this requirement.

Focus of publication (column 1)

Indicate the focus of your publication(s).
Add a row for each separate publication and answer to the subsequent columns.

Publication (column 2)

CDP uses the CDSB Framework definition of mainstream reports, i.e. annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country/area in which they operate and are normally publicly available. It is acknowledged that, in some jurisdictions, multiple documents may meet this definition. Please attach only those which reference your organization’s response to forests- and/or water-related risks.
Other regulatory filings are reports required through regional or national legislation, but which do not fall under the definition of mainstream reports stated above.
Voluntary communications include optional sustainability/CSR reports or any other voluntary consumer facing publications, advertising, company websites, executive speeches and/or presentations.
If you do not publish any content regarding your organization's response to forests- and/or water-related issues, select "No publications, but reporting is underway to publish information about our response to forests- and/or water-related issues in the next two years " or “No publications”, as appropriate.
If you select “Other, please specify,” provide a label for the publication.

Status (column 3)

Select from the drop-down options the status of the publication type selected in Column 2.
The report should relate to the reporting year although it is acknowledged that it may not be published in the reporting year.
Where reports are not ready for publication at the time of submission of your CDP response, select one of the options that indicate the report is underway.
Where you can attach the previous year’s report to demonstrate that the information is routinely published in this way, select “Underway – previous year attached” and complete the remaining two columns of the table with regard to this report.
Where this is the first year that you will have published information in this way, select “Underway – this is our first year” and leave the other two columns in the table blank.
Where the publication is already available, select “Complete.”

Page/Section reference (column 5)

Identify the page(s) and section(s) of the report attached that refers to forests- and/or water-related issues. If the whole document relates to forests and/or water security, please state this. If your document is only 1 page long, please still state this.

Content elements (column 6)

Select all content elements that apply from the drop-down that relate to the publication type selected in column 2.

Comment (column 7)

This field is optional.
You can provide any additional description of your publication, topics covered, targeted audience, purpose, etc.
If you have selected “No publications, but reporting is underway to publish information about our response to forests- and/or water-related issues in the next two years” or “No publications” in column 2, you can explain what publications you are planning or why you are not going to publish anything on the topic.

Explanation of Terms

Mainstream reports: In line with CDSB, this refers to the annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country/area in which they are incorporated or, if relevant, operate. Mainstream reports are traditionally publicly available. They provide information to existing and prospective investors about the financial position and financial performance of the organization. The exact provisions under which companies are required to deliver mainstream financial reports differ internationally, but will generally contain financial statements and other financial reporting, including governance statements and management commentary.

Glossary - Climate Change

Acquisition: Obtaining ownership and control by one firm, in whole or in part, of another firm or business entity.

Adaptation: Adjustment to climate change current or expected effects so the consequences to the business and environment are alleviated and beneficial opportunities are realized.

Attribute: Descriptive or performance characteristics of a particular generation resource. For Scope 2 GHG accounting, the GHG emission rate attribute of the energy generation is required to be included in a contractual instrument in order to make a claim.

Best available technique (BAT): Best available technique (BAT) refers to the available techniques which are the best for preventing or minimizing emissions and impacts on the environment. BAT include both the technology used, and the way your installation is designed, built, maintained, operated and decommissioned.

Biogas: A mixture of methane (CH4) and carbon dioxide (CO2) used as fuel and produced by bacterial degradation of organic matter or through gasification of biomass. Included in this category are landfill gas and sludge gas (sewage gas and gas from animal slurries) and other biogas.

Biogenic carbon: This refers to carbon which is contained in biomass (both above-ground and below-ground), dead organic matter, soil organic matter, and harvested products.

Biomass: any organic matter, i.e. biological material, available on a renewable basis. Includes feedstock derived from animals or plants, such as wood and agricultural crops, and organic waste from municipal and industrial sources. Biomass fuels should be sustainably sourced and certified where possible, and include:

- Solid biofuels - solid fuels derived from biomass. Includes feedstock derived from animals or plants, such as wood and agricultural crops, and organic waste from municipal and industrial sources.
- Biogas - a mixture of methane (CH4) and carbon dioxide (CO2) used as fuel and produced by bacterial degradation of organic matter or through gasification of biomass.
- Liquid biofuels – liquid fuels derived from biomass such as ethanol and biodiesel.

Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board".

C-suite: A term used to collectively refer to the most senior executive team.

Capital allocation: Refers to distributing and investing a company's financial resources in ways that will increase its efficiency and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.

Capital expenditure: A measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.

Carbon capture and storage (CCS): As defined by the IEA, a family of technologies and techniques that enable the capture of carbon dioxide (CO₂) from fuel combustion or industrial processes, the transport of CO₂ via ships or pipelines, and its storage underground, in depleted oil and gas fields and deep saline formations.

Carbon capture, utilization and storage (CCUS): A family of technologies and techniques in which carbon dioxide (CO₂) is captured and utilized/used. Examples of direct utilization include CO₂ use in the food and drink industry and for enhanced oil recovery. CO₂ can also be converted into chemicals or fuels. If CO₂ is stored but not utilized, then the process should be classified as CCS.

Climate-related risk: In line with the TCFD, this refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.

Climate-related opportunity: In line with the TCFD, this refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.

Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5 degrees Celsius. Please refer to the CDP Climate Transition Plan technical note for more details.

Combustion: Combustion refers to combustion within the company’s boundary giving rise to emissions of CO₂, N₂O, and CH₄. Sources may include boilers, heaters, furnaces, incinerators, internal combustion engines, and turbines. Scope 1 GHG emissions exclude emissions of CO₂ arising from the combustion and fermentation of biomass and biofuels; these emissions are reported as a separate category.

Company: Throughout this questionnaire, “your company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.

Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization is known as the “consolidation approach”. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms.

Consumption: Consumption includes the use of goods, waste disposal and end of life treatment of products sold by the reporting organization.

Contractual instrument (or 'instrument'): Any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims. Markets differ as to what contractual instruments are commonly available or used by companies to purchase energy or claim specific attributes about it, but they can include energy attribute certificates (e.g. RECs, GOs), direct contracts (PPAs), green tariffs and other instruments.

Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.

Divestment: A process for selling assets for financial, environmental, political or social goals.

Electricity: In line with GHG Protocol, this term is used as shorthand for electricity, steam, and heating/cooling. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.

Energy attribute certificates: A category of contractual instruments used in the energy sector to convey information about energy generation to other entities involved in the sale, distribution, consumption, or regulation of electricity.

Feedstocks: Feedstocks are starting materials, ranging from fossil fuels to biomass-based resources. These materials are fed into a process, and converted into other commodities or resources, which are either used directly or further transformed . For example, in the steel industry, coking coal is converted to coke, which is used in the steel production. In the petrochemical industry, gaseous feedstocks (ethane, propane, or butane) are used to produce high value chemicals.

Financial planning: In line with the TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).

Fugitives: Fugitives comprises all intentional or unintentional releases of carbon dioxide (CO2) methane (CH4) and other greenhouse gases. The primary sources of these emissions may include fugitive equipment leaks, evaporation losses, venting, flaring and accidental releases. Further examples of leak sources include valves, fittings, flanges, compressor seals, other compressor related leaks, heaters, dehydrators, and pipelines. Accidental fugitive emissions can be individually found and fixed in order to make the emissions near zero. Emissions from non-point sources, such as wastewater treatment and surface impoundments, should be accounted for under fugitive emissions.

gCO₂/kWh: Grams of carbon dioxide (gCO₂) per kilowatt hour (kWh)of electricity consumed.

gCO₂e/kWh: Grams of carbon dioxide equivalents (CO₂e) emitted per kilowatt hour (kWh) of electricity consumed. CO₂-equivalents allow for other Greenhouse Gases (GHGs) to be expressed in relation to CO₂ based on their Global Warming Potentials (GWPs).

GHG inventory: A quantified list of an organization’s greenhouse gas emissions and sources.

Global warming potential (GWP): The Intergovernmental Panel on Climate Change (IPPC)’s Fifth Assessment Report (AR5) defines the Global Warming Potential (GWP) as “an index, based on radiative properties of greenhouse gases, measuring the radiative forcing following a pulse emission of a unit mass of a given greenhouse gas in the present day atmosphere integrated over a chosen time horizon, relative to that of carbon dioxide. The GWP represents the combined effect of the differing times these gases remain in the atmosphere and their relative effectiveness in causing radiative forcing. The Kyoto Protocol is based on GWPs from pulse emissions over a 100-year time frame.” By using GWPs, GHG emissions from multiple gases can be standardized to a carbon dioxide equivalent (CO₂e).

Greenhouse gases: In line with Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) and amendment issued by the Greenhouse Gas Protocol on May 2013 the basket of greenhouse gases (GHGs) consists of:

- Carbon dioxide (CO₂);
- Methane (CH₄);
- Nitrous oxide (N₂O);
- Hydrofluorocarbon family of gases (HFCs);
- Perfluorocarbon family of gases (PFCs);
- Sulfur hexafluoride (SF₆), and;
- Nitrogen trifluoride (NF₃).

Nitrogen trifluoride (NF₃) is now considered a potent contributor to climate change and is therefore mandated to be included in national inventories under the UNFCCC. NF₃ should also be included in GHG inventories under the GHG Protocol Corporate Standard, and the GHG Protocol Corporate Value Chain (Scope 3) Standard.

Heating Value: Lower heating value (LHV) and Higher heating value (HHV), also known as net calorific value (NCV) and gross calorific value (GCV) respectively, are different measures of heat energy released from fuel combustion. Figures measured in HHV are larger because HHV includes the latent heat of water vaporization from combustion, whereas LHV does not. The difference between LHV and HHV is related to the fuel’s hydrogen content.

Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.

Intensity metrics : Intensity metrics describe an organization’s CO₂e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth. Intensity is calculated by dividing the CO₂e emissions figure (the numerator) by an alternative business metric (the denominator), such as the number of full-time equivalent employees, the revenue or tons of aggregate produced.

Land use: Land use is based on the functional dimension of land for different human purposes or economic activities. Typical categories for land use are dwellings, industrial use, transport, recreational use or nature protection areas. Additional land use metrics can relate to the climate-related arrangements, activities, and inputs regarding these categories that organizations engage in, and can include land use change and land use management metrics.

Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.

Low-carbon product or service: CDP broadly defines a low-carbon product/service as a product or service which has comparatively lower emissions across its entire life cycle (i.e. from material acquisition through to product end-of-life) when compared to a baseline (business-as-usual) scenario or reference product of a similar function. Note that a product can only be considered low-carbon if its production and use does not prevent and/or contributes to reaching net-zero by 2050 or sooner. To define whether the product or service is low-carbon, CDP encourages the use of existing industry taxonomies and frameworks such as Climate Bonds Taxonomy, the IEA Energy Technology Perspectives (ETP) Clean Energy Technology Guide, and the EU Taxonomy for Environmentally Sustainable Economic Activities.

Mainstream reports: In line with CDSB, this refers to the annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country in which they are incorporated or, if relevant, operate. Mainstream reports are traditionally publicly available. They provide information to existing and prospective investors about the financial position and financial performance of the organisation. The exact provisions under which companies are required to deliver mainstream financial reports differ internationally, but will generally contain financial statements and other financial reporting, including governance statements and management commentary.

Metric tons of CO₂ (tCO₂): a metric ton of carbon dioxide (CO₂) has a mass of 1000 kg, equivalent to 2204.62 lbs. The “long ton”, a term generally used in Britain, is equivalent to 2,240lbs and the “short ton” is generally used in the USA and is equivalent to 2,000 lbs.

Metric tons of CO₂-equivalent (tCO₂e): a metric that allows for other Greenhouse Gases (GHGs) to be expressed in relation to CO₂ based on their Global Warming Potentials (GWPs). A metric ton is 1000 kg, equivalent to 2204.62 lbs.

Mitigation: or "climate change mitigation" refers to efforts to reduce or prevent emission of greenhouse gases.

Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”. CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.

Process emissions: emissions from industrial production processes which chemically or physically transform materials (e.g. CO2 from the calcinations step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.)

Purchased or acquired electricity, steam, heat, and/or cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational/sector boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from an industrial process, should still be accounted for if it is consumed.

Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol: “Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”

Reporting boundary: This determines which organizational entities, such as groups, businesses and companies, are included in or excluded from your disclosure. These may be included according to your financial control, operational control, equity share or another measure. Please consistently apply this organizational boundary when responding to questions unless you are specifically asked for data about another category of activities.

Research and development (R&D): Refers to the activities companies undertake to innovate and introduce new products and services. It is often the first stage in the development process. Investment in R&D is a type of expense associated with the research and development of a company's goods or services

Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)

Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).

Scenario analysis: A scenario describes a potential path of development that will lead to a particular outcome or goal. Scenario analysis is the process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.

- Qualitative scenarios: A high level, narrative approach to scenario analysis, suitable for organizations familiarizing themselves with the process. Qualitative scenario analysis explores relationships and trends for which little or no numerical data is available.
- Quantitative scenarios: A more detailed method for conducting scenario analysis, with greater rigor and sophistication in the use of data sets and quantitative models which may warrant further analysis. Quantitative scenario analysis can be used to assess measurable trends and relationships using models and other analytical techniques.
- 2°C or lower scenario: A core element of the TCFD’s Strategy recommendation c) “Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario”. As noted on page 26 of the TCFD Guidance on Scenario Analysis for Non-Financial Companies, the TCFD now recommends that in assessing transition risks, companies should consider using or developing a 1.5°C scenario for the “2°C or lower scenario”, stating that “a 1.5°C scenario would provide stronger diversity in assumptions about future policies and technologies. A 1.5°C scenario also aligns with the latest scientific research from the IPCC, the growing momentum of pledges to limit emissions to net-zero by 2050, and the spirit of the Paris Agreement, demonstrating a company’s alignment to recognized temperature targets.”
- Publicly available scenarios: Taken from TCFD recommendations, “Publicly available scenarios” refer to scenarios which are:

- used/referenced and issued by an independent body;
- wherever possible, supported by publicly available datasets;
- updated on a regular basis; and linked to functional tools (e.g., visualizers, calculators, and mapping tools) that can be applied by organizations.

Sequestration of CO₂: The fixation of atmospheric carbon dioxide in a carbon sink through biological or physical processes.

Strategy: In line with TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.

Substantive impact on the business: An impact that has a considerable or relatively significant effect on an organization at the corporate level. This could include operational, financial or strategic effects that undermine the entire business or part of the business.

Value chain: The entire sequence of activities or partners that provide value or receive value from an organization's products and services, either within, upstream or downstream of direct operations. For further details on reporting boundaries please consult the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Important Information

Companies should not consider their CDP response a means of complying with any regulatory requirement to share financially sensitive non-public information with the market. You may wish to consult with your financial, legal, and/or compliance departments for advice on your company’s general approach to the provision of forward-looking statements and information concerning risks.

CDP questionnaire copyright and licensed use

The copyright to CDP’s annual questionnaire/s is owned by CDP Worldwide, a registered charity number 1122330 and a company limited by guarantee, registered in England number 05013650. Any use of any part of the questionnaire, including the questions, must be licensed by CDP. Any unauthorized use is prohibited and CDP reserves the right to protect its copyright by all legal means necessary.

Terms for responding to the CDP Climate Change Questionnaire 2023

These terms apply if you are submitting a response to the CDP Climate Change Questionnaire 2023. If you are also submitting a response to the CDP Forests Questionnaire 2023 or the CDP Water Security Questionnaire 2023 the corresponding terms for responding to each questionnaire will also apply.

1. DEFINITIONS

Affiliate(s): means any entity that controls, is controlled by, or is under common control with a party. For the purposes of this definition, “control” of an entity means the ownership, directly or indirectly, of more than fifty percent of the outstanding voting securities or capital stock of such entity, or the legal power to direct or cause the direction of the general management and policies of such entity.

Amended Response: has the meaning given in Section 10.3.

Bank Program Member: means a banking institution or organization that has entered into a bank program member agreement with CDP, that is requesting disclosure from their clients.

Billing Company: means the organization determined in accordance with the table in Section 20 of these terms.

CDP: means CDP Worldwide, a charitable company registered with the Charity Commission of England and Wales (registered charity no. 1122330 and company number 05013650). References to “we”, “our” and “us” in these terms are references to CDP.

CDP Affiliate(s): means any Affiliate of CDP, and any organizations within CDP’s operational group to whom we license the CDP name and brand (which shall include CDP North America, and CDP Europe, and their Affiliates).

CDP Europe: means CDP Europe AISBL, a charity registered in Belgium whose registered address is Due Ducale 67, 1000 Brussels, Belgium.

CDP North America: means CDP North America, Inc., the Delaware incorporated non-profit 501(c)3 organization whose registered office is at 127 W 26th Street, Third Floor, New York, NY, 10001, United States.

CDP Response Dashboard: the area of our website where each Responding Company signs into its corporate user account, in order to view which Requesting Authorities have requested it to submit a Response, and other information to track submission of its Response.

Deadline: means 26 July 2023 (or any alternative date that is notified to Responding Companies during CDP’s disclosure cycle for 2023, via the notification methods outlined in Section 6.4 of these terms).

Disclosure API: means the application programming interface connected to the Online Response System that the Responding Company may use through any CDP accredited solutions provider to facilitate submission of its Response.

Fee: means the annual administrative fee to enable CDP to maintain its Online Response System.

Final Closure Date: 27 September 2023 (or any alternative date that is notified to Responding Companies during CDP’s disclosure cycle for 2023, via the notification methods outlined in Section 6.4 of these terms).

Financial Services Responding Company: means any Responding Company that is assigned the CDP ACS classification of ‘financial services’ and that responds to the ‘financial services’ questions contained in the Questionnaire.

Full Version: means the complete version of the Questionnaire which contains all questions that are applicable to you as a Responding Company.

Investor Signatory: means an organization that has entered into an investor signatory agreement with us, that is requesting disclosure from companies.

Minimum Version: means the version of the Questionnaire which contains a subset of the questions included in the Full Version.

Net Zero Asset Managers initiative: means the network partners of the Net Zero Asset Managers initiative, namely: CDP; PRI (Principles for Responsible Investing) PRI Association, of 25 Camperdown Street, London, E1 8DZ, UK; IIGCC (Institutional Investor Group on Climate Change) of Pennine Place 2a Charing Cross Road London, WC2H 0HF UK; AIGCC (Asian Investors Group on Climate Change) of PO Box Q937 Queen Victoria Building, Sydney NSW 1230 Australia; IGCC (Investors Group on Climate Change), of PO Box Q937, Queen Victoria Building, NSW 1230, Australia; and Ceres, of 99 Chauncy Street, 6th Floor, Boston, MA 02111 USA, that is requesting disclosure from its member companies.

Online Response System: means the CDP operated online disclosure system, where Responding Companies are required to complete and submit their Response.

Personal Data: means data which relates to an individual who can be identified from the data (such as a person’s name, email address, and job title).

Questionnaire: means the CDP Climate Change Questionnaire 2023.

RE100 initiative: means the global corporate renewable energy initiative bringing together businesses committed to 100% renewable electricity, led by The Climate Group (registered charity no. 1102909 and registered company no. 4964424) in its capacity as leader, in partnership with CDP, that is requesting disclosure from its member companies.

Reopened Response: has the meaning given in Section 10.1.

Requesting Authority: means the organization(s) requesting you to complete the Questionnaire as listed on your CDP Response Dashboard, categorised in accordance with the following types (which may be modified and subject to change, from time to time):

(1) Investor Signatories;

(2) Supply Chain Members;

(3) Bank Program Members;

(4) the Net Zero Asset Managers initiative; and

(5) the RE100 initiative.

Responding Company: means the company responding to the Questionnaire. References to “you” and “your” in these terms are references to you as the Responding Company.

Response: means your submitted response to the Questionnaire made via our Online Response System.

Supply Chain Member: means an organization, that has entered into a supply chain member agreement with CDP, that is requesting disclosure from companies that are in its supply chain.

2. PARTIES

2.1. The parties to these terms are:

(1) CDP;

(2) Responding Company

(and solely where the Billing Company is not CDP, and the Fee is payable); and

(3) Billing Company.

2.2. The Billing Company can be identified by referring to Section 20.

3. YOUR AGREEMENT TO THESE TERMS

3.1. These are the terms that apply when you submit a Response to the Questionnaire. Please read these terms carefully. Submission of your Response signifies your agreement to these terms. Further, you will not be able to submit a Response unless you agree to these terms.

3.2. If you do not agree to these terms, please contact us at our Help Center: https://help.cdp.net/

4. IMPORTANT REPRESENTATIONS

4.1. You confirm that:

(a) the person submitting the Response to us is authorised by the Responding Company to submit the Response;

(b) the Responding Company has obtained all necessary consents and permissions to submit a Response to us;

(d) the Response that you submit:

(i) does not infringe the rights of any third party (including privacy, publicity or intellectual property rights);

(ii) does not defame any third party; and

(iii) does not include any Personal Data.

5. ‘PUBLIC’ AND ‘NON-PUBLIC’ RESPONSES GENERALLY

5.1. Submitting your Response ‘publicly’ or ‘non-publicly’. When responding to our Questionnaire, you will be given a choice as to whether your Response can be made ‘public’ or whether your Response is ‘non-public’. We strongly encourage you to make your Response ‘public’.

6. SCORING ELIGIBILITY, DEADLINES, RELEVANT DATES, OUR SYSTEMS AND GENERAL INFORMATION

6.1. Eligibility for scoring. To be eligible for scoring you must submit your Response to us via our Online Response System by the Deadline. CDP may publish your score in accordance with Sections 11 to 13 of these terms. Please review those Sections carefully for further information relating to scoring your Response, and the criteria for publication of your score.

6.2. If submission of your Response misses the Deadline. Notwithstanding Section 10 below (in relation to amending your Response), we reserve the right:

(i) not to score your Response; and

(ii) not to include data contained in your Response in any report, data product or other analysis.

6.3. We may elect at our sole discretion to score your Response if you submit it after the Deadline and before the Final Closure Date but are under no obligation to do so.

6.4. CDP reserves the right to make changes to relevant dates. To the extent that any calendar date, or period of days is referred to in these terms and relates to the timetable for submission of your Response, or CDP’s timetable for scoring and/or publication of your score, such calendar date, or period of days, may be subject to change and modified by CDP at its sole discretion at any time, and notified to you via methods including: emails to the Responding Company and/or notifications within the CDP Response Dashboard. In addition, CDP may provide notice of any such relevant date change(s) on the CDP website.

6.5. CDP’s online systems. Our Online Response System and the CDP Response Dashboard are not the same. The CDP Response Dashboard allows you to track information related to submission of your Response and the identity of your Requesting Authorities, whereas our Online Response System is the online solution where you draft and submit your Response. You agree that CDP shall not be liable, shall be held fully harmless and accepts no responsibility for any delay to the time of submission of Response, failure to submit Responses by the Deadline, errors, omissions, corruption or loss of data or software, caused directly or indirectly by the Responding Company’s use of the Disclosure API to facilitate submission of its Response.

6.6. Requesting Authority list(s) on our website. From time to time, we may make a list of Requesting Authorities available on our website, but we are under no obligation to do so on an ongoing, or exhaustive basis.

7. PUBLIC RESPONSES AND CDP’S USAGE

7.1. You agree that CDP may use your ‘public’ Response for all purposes that we decide. If you submit your Response using the ‘public’ option, our uses of your Response may include (but not be limited to):

(i) making your Response publicly available on our website;

(ii) making your Response available to your Requesting Authorities (and their Affiliates);

(iii) making your Response available to other third parties; and

(iv) scoring your Response.

7.2. Where you are headquartered in the EU, and your Response is ‘public’, we may share your reported climate and environmental actions on the European Climate Pact website. The European Climate Pact is a European Commission initiative bringing citizens and organizations together to achieve a climate-neutral Europe, and more information can be found here: https://europa.eu/climate-pact/about/about-pact_en

8. NON-PUBLIC RESPONSES AND CDP’S USAGE

CDP general restrictions.

8.1. Subject to Section 8.7, if your Response is submitted using the ‘non-public’ option, CDP shall not publish the Response without the information in your Response first being anonymized (or aggregated in such manner that it has the effect of being anonymized).

How CDP may share your non-public Response.

8.2. Where your Response is ‘non-public’, dependant on the type(s) of Requesting Authorities that have requested your Response, you agree that CDP may share your non-public Response in accordance with Parts A to D below (where relevant, and as applicable).

Part A – Supply Chain Members, and Bank Program Members.

8.3. You agree that where one of your Requesting Authorities is a Supply Chain Member, or a Bank Program Member, as soon as your ‘non-public’ Response is received:

(i) CDP may make your Response available to each Supply Chain Member (that is a Requesting Authority specifically for you, and their Affiliates); and

(ii) CDP may make your Response available to each Bank Program Member (that is a Requesting Authority specifically for you, and their Affiliates).

8.4. Your Response may therefore be provided to multiple Supply Chain Members, or multiple Bank Program Members. This will depend on the number of Requesting Authorities that have requested a Response specifically from you, as a Responding Company. This information can be viewed and tracked in your corporate user account within the CDP Response Dashboard.

Part B – Investor Signatories.

8.5. You agree that where one of your Requesting Authorities is an Investor Signatory, as soon as your ‘non-public’ Response is received:

(i) CDP may make your Response available to Investor Signatories (and their Affiliates);

(ii) your Response may be made available via Bloomberg terminals to Investor Signatories (and their Affiliates);

(iii) your Response may be made available via other secure third party platforms to Investor Signatories (and their Affiliates); and

(iv) CDP may list the Responding Company on the CDP website or otherwise make it known that the Responding Company has responded to our Questionnaire.

Part C - Net Zero Asset Managers initiative and the RE100 initiative.

8.6. You agree that where one of your Requesting Authorities is the Net Zero Asset Managers initiative, and/or the RE100 initiative, as soon as your ‘non-public’ Response is received, CDP may make your Response available to the Net Zero Asset Managers initiative and/or the RE100 initiative.

8.7. You agree that where one of your Requesting Authorities is the RE100 initiative, as soon as your ‘non-public’ Response is received:

(i) CDP may use your Response to calculate the Responding Company’s reported and verified share of renewable electricity consumption, which you further agree may be made public by CDP and/or the RE100 initiative;

(ii) CDP may publish the name of the Responding Company, your location of headquarters, your RE100 targets, and any interim targets provided as part of your Response; and

(iii) CDP may publish in combination with renewable electricity consumption data contained in your Response, the historical percentage (%) of renewable electricity consumption of the Responding Company contained in any previous years’ CDP RE100 report, to the extent that said report contains renewable electricity consumption data of the Responding Company.

8.8. You agree that where one of your Requesting Authorities is the RE100 initiative, as soon as your ‘non-public’ Response is received we may make information you submit in Response to questions C0.2, C0.3, C0.5, C4.2a, C4.3b, C8.2a, C8.2d, C8.2g, C8.2h, C8.2j, C8.2k, C8.2l, C8.2m, C10.1a, C10.1b, C12.1a, and C12.2a (relating to the RE100 initiative), available to each of your Requesting Authorities for any use within their organization (including their Affiliates in the case of Investor Signatories, Supply Chain Members and Bank Program Members) but not for publication unless the data contained in your Response has been anonymized (or aggregated in such manner that it has the effect of being anonymized).

Part D - CDP Affiliates and other recipients.

8.9. You agree that as soon as your ‘non-public’ Response is received, CDP may make your Response available to:

(a) CDP Affiliates;

(b) country partners;

(d) report writers; and

(e) scoring partners,

for:

(i) scoring your Response; and

(ii) any other use within their organizations.

9.SUPPLY CHAIN MODULE (2023 CLIMATE CHANGE)

9.1. This Section 9 solely applies to the extent that your Response includes answers to the Supply Chain Module (2023 Climate Change).

9.2. Please note that all parts of your Response to Supply Chain Module (2023 Climate Change) will be treated as ‘non-public’ irrespective of whether you selected the ‘public’ or ‘non-public’ option for your Response. For the avoidance of doubt, you have the option to respond to the Supply Chain Module (2023 Climate Change) as part of either a ‘public’ or a ‘non-public’ Response, but the Supply Chain Module (2023 Climate Change) answers within your Response will be ‘non-public’ by default.

9.3. Notwithstanding Section 9.2 above, you acknowledge and agree that:

(a) some questions in the Supply Chain Module (2023 Climate Change) require you to select a Supply Chain Member using a drop-down menu. Only the Supply Chain Member (and its Affiliates) that you select for each row will have access to the information in that part of your Response; and

(b) all information you submit in the Supply Chain Module (2023 Climate Change) will be accessible to:

(i) CDP Affiliates;

(ii) country partners;

(iii) research partners;

(iv) report writers; and

(v) scoring partners,

all of which are obliged to keep such information confidential.

10. ‘REOPENING’ AND ‘AMENDING’ YOUR RESPONSE

10.1. You may ‘reopen’ a Response that you have submitted for correction by you (a “Reopened Response”), provided that you do so before the Deadline. When you reopen a Response any submission that is in progress, or that has already been submitted, will automatically become void. If you reopen a Response, you must ensure that a Reopened Response is submitted before the Deadline to be eligible for scoring. To reopen a Response, you must notify us that you wish to do so by 13 July 2023, and you must submit a Reopened Response by the Deadline to be eligible for scoring.

10.2. If you choose not to submit a Reopened Response before the Final Closure Date, your original Response will be stored within our Online Response System, but no further processing will be undertaken, CDP will not use it in any manner prescribed for valid on-time Responses pursuant to these terms, and your Response will no longer be made available to your Requesting Authorities (or any other third parties).

10.3. Our process for ‘amending’ your Response differs from our process for reopening your Response. Amending your Response may be actioned by CDP staff on your behalf, with the decision to do so being at CDP’s absolute discretion, and furthermore, we may charge a fee for making amendments to your Response (an “Amended Response”).

10.4. We are under no obligation to accept your request for, or to provide you with an option to submit an Amended Response, but in the event that we choose to do so:

(i) amendments to your Response will be made no earlier than 5 October 2023;

(ii) the final date for requesting that CDP make amendments to your Response is 30 November 2023; and

(iii) any amendments requested to be made to a submitted Response from 14 July 2023 may not be reflected in any score, report, data product or other analysis.

10.5. We cannot commit to consideration of amending your Response if the Scoring Special Provisions described in Section 11 apply to you. In the event that the Scoring Special Provisions apply to you, and you wish for us to amend your Response, please contact our Help Center: https://help.cdp.net/ for more information about amending your Response.

11. SCORING SPECIAL PROVISIONS

11.1. Where you are headquartered or operate in Ukraine and do not submit a Response, we will not attribute any score to your Response and will recognise a pause in reporting where appropriate. Where you are headquartered in Belarus or the Russian Federation, your Response will not be eligible for scoring.

12. SCORING THE MINIMUM AND THE FULL VERSION

12.1. Scoring your Response to the Minimum Version. Responses to the Minimum Version will only be scored in certain circumstances. Please contact your local CDP office for further information.

12.2. Scoring your Response to the Full Version. Save in the case where Scoring Special Provisions apply, if you submit your Response to the Full Version in English (or the applicable language for your location set out below):

(i) by the Deadline: CDP will score your Response;

(ii) after the Deadline but on or before 9 August 2023: you can request an ‘on-demand’ score for a fee. Only a limited number of on-demand scores are available in 2023, so your request may not be granted. Please contact your local CDP office for more information about on-demand scoring.

12.3. Scoring non-English language Responses. CDP recommends that wherever possible you respond in English. This is to facilitate the broadest applicability, usages, and utility of your Response. Please contact your local CDP office for information about scoring if you intend to submit your Response in any language other than English. The following languages may be used to submit your Response to the Full Version of the Questionnaire: Chinese (if you are located in China); Japanese (if you are located in Japan); Portuguese (if you are located in Brazil); or Spanish (if you are located in any country in Latin America except for Brazil).

13. PUBLICATION AND USE OF SCORES

13.1. If you are not responding to a CDP climate change questionnaire for the first time, CDP may publish your score, and use, and make it available for all purposes that we decide (whether for a fee or otherwise).

13.2. If your Response is the first CDP climate change questionnaire you are submitting, you may choose for your score to be ‘private,’ in which case CDP will not publish your score. If you do not actively elect for your score to be ‘private’, CDP shall be entitled to publish your score.

13.3. If you request the ‘private’ option in relation to your score (irrespective of whether your Response is submitted as ‘non-public’ or ‘public’), and you do not achieve an A grade, we may only make it available to:

(i) any Supply Chain Member or Bank Program Member that is a Requesting Authority for your Response;

(ii) CDP Affiliates;

(iii) country partners;

(iv) research partners;

(v) report writers and scoring partners,

in each case for any use within their organizations. We will not make it available to Investor Signatories.

13.4. If your Response is answered using the ‘private’ score option, and you achieve an A grade, we may only make it available to Investor Signatories, and the organizations listed above in Section 13.3.

13.5. If you are a Financial Services Responding Company responding to the forests and water security questions contained in the Questionnaire, your forests score will automatically be ‘private,’ but we reserve the right to make your forests score available to:

(i) CDP Affiliates;

(ii) country partners;

(iii) research partners;

(iv) report writers; and

(v) scoring partners,

in each case for any use within their organizations and not for external publication. We will not make your score for forests available to your Requesting Authorities. For clarity, the water security related questions will not be scored.

14. FUTURE QUESTIONNAIRES

14.1. Your submission of a Response for the current year also constitutes the grant of consent for CDP to invite you (and to remind you) to respond in future years but you acknowledge that any future responses will be made upon the then current version of these terms which you will need to accept at that time in order to submit a response.

15. FEE

15.1. Why we charge a Fee. We are a not-for-profit organization and charge certain companies an annual administrative fee to enable us to maintain our Online Response System. Unless the Responding Company is exempt from paying the Fee, as set out below, or the Responding Company is listed, incorporated or headquartered in a country/region that is listed in Section 15.2, the Fee (plus any applicable taxes) is payable to CDP (or the Billing Company, as applicable). The Fee is payable once, regardless of how many responses to questionnaires relating to forests and/or water security, and/or public authorities the Responding Company submits in 2023 in addition to the Questionnaire.

15.2. Countries/regions where the Fee applies. A Responding Company will be required to pay the Fee to the Billing Company unless it is listed, incorporated or headquartered in one of the following countries: Albania, Belarus, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, the Slovak Republic, Slovenia and Ukraine.

15.3. Exemptions from the Fee. A Responding Company may be eligible for exemption from paying the Fee if:

(a) the Responding Company is listed, incorporated, or headquartered outside of Europe and North America and the Responding Company has not submitted a Response to CDP in the last three years; or

(b) the Responding Company does not have any Investor Signatories as a Requesting Authority.

15.4. Payment of the Fee. You must pay the Fee to CDP or the Billing Company (as applicable) by credit or debit card, or request an invoice via the CDP Response Dashboard, which must be paid within such time as set out in the invoice. Please note that you will not be able to submit your Response unless you have paid the Fee, you have requested an invoice, or you are exempt from paying the Fee.

15.5. CDP’s discretion regarding Fees. Please note that CDP reserves the right to decide (at its sole discretion) whether the Fee is payable or not, and we will notify you before you submit your Response whether you are exempt (via communications made through the CDP Response Dashboard and/or email).

16. RIGHTS IN THE RESPONSES

16.1. Ownership. All intellectual property rights in your Response will be owned by you (and your licensors).

16.2. License. You grant to CDP, or shall procure the grant to us, of a perpetual, irrevocable, non-exclusive, assignable, sub-licensable, royalty-free and worldwide license to use your Response and any intellectual property rights including copyright and database rights in your Response for the uses set out in these terms.

17. LIABILITY

17.1. We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for death or personal injury caused by our negligence or the negligence of our employees, agents or subcontractors, or for fraud or fraudulent misrepresentation.

17.2. We are not liable for financial losses. Neither CDP nor the Billing Company have any liability to you in any circumstances whatsoever for any loss of revenue, loss of profit, loss of business, business interruption, loss of business opportunity, loss of goodwill, loss of reputation, loss of, damage to or corruption of data, or software.

17.3. We are not liable for consequential losses. Neither CDP nor the Billing Company have any liability to you in any circumstances whatsoever for any indirect or consequential loss or damage of any nature whatsoever.

17.4. Exclusion of liability. Neither CDP nor the Billing Company have liability to you in any circumstances howsoever arising from the content or submission of your Response to us, our use of your Response, or your score and/or the use of or any reliance placed upon your Response or your score by you or by any third parties (including any Requesting Authorities).

18. DATA PROTECTION

18.1. Each party acknowledges that CDP may process Personal Data provided to it by or on behalf of the Responding Company, including Personal Data of corporate users of the CDP Response Dashboard, and other contacts. CDP will only process such Personal Data for purposes related to its business relationship with the Responding Company (for example, sending communications to the Responding Company encouraging completion of the Questionnaire). CDP may also share Personal Data with Supply Chain Members and Bank Program Members to enable them to send communications to Responding Companies encouraging completion of the Questionnaire.

18.2. You shall ensure that any relevant data subjects receive a fair processing notice which includes the above information and includes a reference to CDP’s privacy notice available at https://www.cdp.net/en/info/privacy-policy and shall otherwise ensure that CDP is able to process all Personal Data provided to it by or on behalf of the Responding Company for the above purposes in compliance with applicable data protection legislation including the Data Protection Act 2018 as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019 which merge the previous requirements of that Act with the requirements of the General Data Protection Regulation ((EU) 2016/679) (“UK GDPR”).

19. GENERAL

19.1. We may assign our rights to someone else. We may transfer our rights and obligations under these terms to another organization.

19.2. Nobody else has any rights under these terms. These terms are between you and us (and the Billing Company, where the Billing Company is not CDP). The Billing Company may enforce these terms for its own benefit but otherwise no other person shall have any rights to enforce any of its terms.

19.3. Entire agreement. These terms constitute the entire agreement between you and us in relation to your Response to the CDP Climate Change Questionnaire 2023.

19.4. Variation. CDP reserves the right to change these terms at any time. The consent of the Billing Company is not needed, and any such changes shall be effective immediately or such other time as CDP elects. If you do not agree to the updated terms, you may request to withdraw your Response within 30 days of us notifying you of the update.

19.5. If a court finds part of these terms illegal, the remainder will continue in full force and effect. Each of the Sections of these terms operates separately. If any court or relevant authority decides that any of them are unlawful, the remaining Sections will remain in full force and effect.

19.6. Governing law and jurisdiction. These terms are governed by English law and both the Responding Company and CDP submit to the exclusive jurisdiction of the English courts to resolve any dispute or claim arising out of or in connection with these terms, their subject matter or formation.

19.7. Language. In the event of any inconsistency or ambiguity if these terms are translated into any language other than English, the English language version will prevail in relation to interpretation.

20.BILLING COMPANY

Billing Company	Location of Responding Company
CDP Worldwide	All countries/regions not listed elsewhere in this table
CDP Worldwide (Europe) gGmbH	Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland
CDP North America, Inc.	Canada, USA
Carbon Disclosure Project Latin America	Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay, Venezuela
Beijing Carbon Disclosure Project Environment Consulting Co., Ltd. (北京诚度普环境咨询有限公司）	China
CDP Operations India Private Limited	India
一般社団法人 CDP Worldwide-Japan	Japan

Jan 2023	Preview of 2023 questionnaires and reporting guidance released on CDP website (English versions).
March 2023	Preview of 2023 questionnaires and reporting guidance released on CDP website (translated versions).
April 2023	Online Response System (ORS) opens.
July 2023	Companies must submit their responses to investors and/or customers using the ORS to be eligible for scoring and inclusion in reports (where applicable).

CDP Climate Change 2023 Reporting Guidance

Copyright © 2023 CDP Worldwide. All rights reserved.

CDP Climate Change Questionnaire Preview and Reporting Guidance 2023 - Version Control

CDP disclosure cycle 2023

Accessing questionnaire previews, reporting guidance, and scoring methodologies

Submitting a response to the questionnaire(s)

Sector-specific questions

Full and Minimum versions of the questionnaire

Timeline:

CDP climate change questionnaire

Introduction to CDP's climate change program and questionnaire

Climate change questionnaire structure

Sector approach

2023 climate change sectors:

Climate change questionnaire changes in 2023

Core and supply chain questions

RE100 companies

Financial services sector

Other sector-specific changes

Preparing your CDP response

CDP disclosure support materials

Reporting guidance

Webinars and workshops

CDP Reporter Services

CDP's Accredited Solutions Providers

Important notes for completing your disclosure

Acronyms

Blank responses

Character limits

'Comment' columns

Company-specific information

Consistency

Copy forward

Data accuracy

Drop-down options ('Other, please specify')

'Further information' field

Mergers and acquisitions (M&As)

Personal data

Providing feedback to CDP

Sector introduction: Financial Services (FS)

C0 Introduction

Module Overview

Key changes

Sector-specific content

Pathway diagram - questions

Introduction

(C0.1) Give a general description and introduction to your organization.

Change from last year

Rationale

Response options

Requested content

General

Explanation of terms

(C0.2) State the start and end date of the year for which you are reporting data and indicate whether you will be providing emissions data for past reporting years.

Change from last year

Rationale

Connection to other frameworks

RE100

Response options

Requested content

General

Note for first-time responders:

Note for restating data:

Note for financial services companies:

(C0.3) Select the countries/areas in which you operate.

Change from last year

Rationale

Connection to other frameworks

RE100

Response options

Requested content

General

(C0.4) Select the currency used for all financial information disclosed throughout your response.

Change from last year

Rationale

Response options

Requested content

General

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Change from last year