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CDP Climate Change Questionnaire Preview and Reporting Guidance 2019 - Version Control

Version number	Release/Revision date	Revision summary
0.1	Released: Dec 17, 2018	The 2019 climate change questionnaire preview and the general preliminary version of the reporting guidance was released.
0.2	Revised: March 14, 2019	The terms for submitting your response to CDP have been updated for 2019 General questions Question linkages to the TCFD were revised in ‘Connection to other frameworks’ for C2.2b, C2.2c, C2.3a, C2.4a, C3.1d, C3.1f, C3.1g, C4.1c, C4.2, C6.2, and C9.1 C1.1a: Modifications to ‘Requested content’: the requirement to “Provide a rationale…” removed and replaced with “Explain how the responsibilities…” C2.2c: Clarifications to ‘Requested content’ for “Please explain” column C2.2d: Modifications to ‘Rationale’ and ‘Requested content’, and new ‘Explanation of terms’ C2.3a: Modifications to ‘Requested content’ for “Management method” column C2.4a: Modifications to ‘Requested content’ for “Strategy to realize opportunity” column C2.5: Modifications to ‘Rationale’ and ‘Requested content’ C2.6: Modifications to ‘Rationale’ and ‘Requested content’, and new ‘Explanation of terms’ C4.1a: Modifications to column headers (columns 4 and 10) C4.1b: Modifications to column headers (columns 4, 8 and 11) C6.1: Clarifications to the “Note on biogas” C7.3b: Modifications to ‘Requested content’ Agricultural commodities, Food, beverage & tobacco and Paper & forestry sectors C-AC6.6a/C-FB6.6a/CPF6.6a: Clarifications to text in column 1 Cement, Chemicals, Coal, Electric Utilities, Metals & Mining, Oil & Gas, Steel, Transport OEMs and Transport Services sectors 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: Clarifications to ‘Additional Information’ regarding biogas. General questions and all sectors Numeric limits and/or decimal places modified in C2.3a, C2.4a, C4.1b, C4.2, C4.3b, C6.3, C6.10, C-TS6.15, C-OG7.1b, C-TO7.8, C-TO8.4, C-OG9.3b, C-CE9.6, C-CH9.6, C-CO9.6/C-EU9.6/C-OG9.6, C-MM9.6, C-TO9.6/C-TS9.6, C-ST9.6, SC0.1
0.3	Revised: June 5, 2019	General questions C2.1: Modifications to ‘Requested content’ for long-term time horizon C4.3b: Modifications to ‘Requested content’ for columns ‘Description of initiative’, ‘Estimated annual CO2e savings (metric tons CO2e)’ and ‘Scope’
0.4	Revised: July 10, 2019	General question C4.3b: Modification to 'Requested content' for 'Payback period' column.

CDP disclosure cycle 2019

Accessing questionnaire previews, reporting guidance, and scoring methodologies

CDP’s corporate questionnaire previews, reporting guidance, and scoring methodologies can be accessed by program (climate change, forests, and water security) from the guidance for companies page of CDP's website. You will be presented with three prompt screens that allow you to select the sectors and other details relevant to your organization. Questionnaires are valid for information requests from investors, as well as from customers that are members of CDP’s supply chain program. As there are sector-specific questions throughout the questionnaires, you might find that question numbers skip since not all questions will be applicable to your organization.

Responses to questionnaires are submitted via CDP's online response system (ORS), which is part of CDP's online disclosure platform. Please refer to Using CDP's Online Disclosure Platform for more detail. Note that while the questions themselves are the same in the questionnaire preview as they are in the ORS, the format may differ, particularly for drop-down options and tables.

Full and Minimum versions of the questionnaire

For all CDP questionnaires, there are two versions: minimum and full. The minimum version contains identical but fewer questions, and no sector-specific questions or data points.

• The minimum version of a questionnaire can by completed by:

- Organizations disclosing to that questionnaire for the first time; OR
- Organizations not disclosing to that questionnaire for the first time, but with an annual revenue of less than EUR/US$250 million

Although any organizations meeting the above criteria may opt to complete a minimum version, they may not be eligible for scoring.

For more information on scoring eligibility and implications, please see Scoring Introduction.

For previous responders with an annual revenue of less than EUR/US$250 million, CDP reserves the right to remove the option of a minimum version questionnaire due to the organization’s potential or existing environmental impact.

Note that companies eligible to complete the minimum version of a questionnaire can choose to answer the full version if they consider this to provide greater benefit to their organization or stakeholders.

Timeline:

December 2018	Preview of questionnaires and preliminary version of reporting guidance released on CDP website.
March 2019	Final version of reporting guidance and scoring methodologies released on CDP website.
April 2019	Access will be provided to CDP's online response system (ORS).
July 2019	Responses to investor and supply chain requests must be submitted by 31st July 2019 to be automatically eligible for scoring and inclusion in CDP reports (where applicable).

For any disclosure-related enquiries, please contact [email protected].

CDP climate change questionnaire

Introduction to CDP's climate change program and questionnaire

CDP works to reduce companies’ greenhouse gas emissions and mitigate climate change risk.

The 2015 Paris Agreement was a tipping point in the global approach to climate change. By agreeing to limit global temperature rises to well below 2°C, governments have committed to transforming to a low-carbon economy. This transition will create winners and losers within and across business sectors, as the manifestation of climate-related opportunities and risks accelerates in both size and scope. Business as usual will not be a good indicator of how companies will perform.

We believe that improving corporate awareness through measurement and disclosure is essential to the effective management of carbon and climate change risk. We request information on climate risks and low-carbon opportunities from the world’s largest companies on behalf of over 525 institutional investor signatories with a combined US$96 trillion in assets.

Regulators have begun to respond to the risks, notably with the Task Force on Climate-related Financial Disclosures (TCFD). Established by the Financial Stability Board, the TCFD has moved the climate disclosure agenda forward by emphasizing the link between climate-related risk and financial stability. The Task Force has recommended that both companies and investors disclose climate change information. This includes whether they are conducting scenario analysis in line with a 2-degree pathway and then setting out how climate-related issues impact their strategy and financial planning. This amplifies the longstanding call from CDP’s investor signatories for companies to disclose comprehensive, comparable environmental data in their mainstream reports, driving climate-related risk management further into the boardroom.

Commit to Action

CDP and its partners in the We Mean Business coalition have created a central platform for companies to take action on key climate issues, with hundreds of companies from every economic sector and geography taking action to date.The We Mean Business “Take Action” platform gives companies a clear pathway for building the Paris Agreement into their business strategies and to future-proof growth, giving policy makers the confidence in raising their ambitions as governments prepare to ratchet up their national pledges in 2020.

Companies who have made commitments through We Mean Business can track progress against them via CDP’s annual disclosure requests.

For example – Report on your commitment to adopt a science-based emissions reduction target by answering to C4.1 and C4.2 sub-questions in detail.

For more specific information on each commitment and how companies can report on their progress in the relevant sections of the CDP’s questionnaires, please refer to the ‘Commit to Action Technical note’.

Climate change questionnaire developments

The CDP climate change questionnaire was redesigned in 2018 in response to market needs and the following developments were included:

• Integration of sector-specific questions
• Inclusion of the TCFD recommendations
• Increased emphasis on forward-looking metrics and improved alignment with other reporting frameworks

Sector approach

For climate change, CDP has incorporated sector-specific questions for 12 high-impact sectors. The rationale for developing a refined questionnaire for each of these sectors is outlined in the relevant sector introduction. Companies with business activities outside of these sectors will receive a general questionnaire, as in previous years.

Each question number in the climate change questionnaire begins with the letter C. Questions that are unique to companies in a particular sector are labelled using a two-letter abbreviation within the question number. These abbreviations are noted below.

2019 climate change sectors:

• Agriculture: Agriculture commodities (AC); Food, beverage & tobacco (FB); Paper & forestry (PF)
• Energy: Coal (CO); Electric utilities (EU); Oil & gas (OG)
• Materials: Cement (CE); Chemicals (CH); Metals & mining (MM); Steel (ST)
• Transport: Transport services (TS); Transport OEMs (TO)

Note for financial services sector companies:

Financial institutions can play a pivotal role in accelerating the transition to a low-carbon future. The TCFD recommendations highlight the importance of climate-related financial disclosures by this sector to 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. The supplemental guidance provided by the Task Force focuses on the importance of considering the impacts of climate-related issues in the context of their financial activities such as lending, financial intermediary, investment and/or insurance underwriting activities.

Financial services sector companies should respond to the CDP climate change questionnaire in the context of these activities, in addition to operational activities. Where necessary, specific guidance has been included to clarify the type of information banks, insurance companies and asset managers should consider in their response. For further information, a Technical Note on Financial Services will be made available.

Questionnaire changes in 2019

The questionnaire is stabilized for 2019 so there are no major changes. There are some minor revisions to reflect feedback and a correction of errors. There are no new sectors questions. Revisions and changes are indicated within the questionnaire as: "no change", "minor change" or "modified question". "Minor change" indicates wording edits and revisions to drop-down options or a simple clarification, while a "modified question" indicates that a data request has been revised.

A detailed document on climate change question changes from 2018 to 2019 is available on the CDP website.

Preparing and submitting your CDP response

CDP disclosure support

Reporting guidance

CDP reporting guidance includes the following sections. Please be sure to review the guidance for all questions to which you are submitting a response, even if you have previously disclosed to CDP.

• Module-level guidance: for select modules this guidance provides an overview, 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 linkages to the SDGs, RobecoSAM Corporate Sustainability Assessment (DJSI), and TCFD for each relevant question in the climate change questionnaire;
- 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, or the additional guidance noted below, please contact your local CDP office or [email protected].

Additional CDP guidance

Links to CDP questionnaires, guidance, scoring methodologies, and select technical notes can be found on the guidance for companies page of CDP's website. The full suite of these materials will also be accessible from the guidance tool, after signing in.

The technical notes for the 2019 disclosure cycle will be published in the first quarter of 2019 and will include some minor updates from the technical notes for the 2018 disclosure cycle. The 2018 technical notes are currently linked in the 2019 guidance and can be used to support your disclosure, given that the updates for 2019 are minor.

Webinars and workshops

CDP is hosting a series of events, online and in person, to help companies with their disclosure. Visit the workshops and webinars and climate change pages of CDP's website for more details.

CDP reporter services

CDP reporter services 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, water security and forests management into your wider business strategy. For year-round, personalized disclosure support from a CDP account manager, a gap analysis of your previous response,a final review of your draft response before submission, and analytics tools to benchmark yourself against peers and understand best practice, contact [email protected] and visit the reporter services page of CDP's website for more information.

CDP accredited solutions providers

CDP partners with leading service and software providers that can support companies throughout all stages of the measurement, reporting and management of their climate and sustainability data. All CDP solution providers have met specific accreditation criteria. Learn more about the areas they can help you with below:

• Carbon reduction: These solution providers offer technology and services that help reduce carbon emissions and improve en energy efficiency.
• Consultancy services: CDP-accredited consultancies have a wide range of technical expertise to support companies with establishing and implementing climate change and sustainability strategies.
• Science-based targets: the services provided by these organizations can help companies looking to set and implement science-based targets.
• Education & training: Carbon management training can improve employee awareness and understanding of how climate change affects their organization.
• Renewable energy: CDP works with renewable energy solution providers to provide corporations that want to be leaders in sustainable energy the opportunity to procure, track, and generate renewable power.
• Software solutions: The tools and services provided by these organizations can help companies switch from complex, Excel spreadsheets to accurately collecting, monitoring and reporting their data using integrated management systems.
• Verification: CDP encourages the verification / assurance of information disclosed to us. CDP-accredited third-party verification and assurance providers can help companies to disclose accurate data and improve internal processes.

As well as clicking on the links above, you can also contact [email protected] to find out more.

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' or 'Please explain'). If there is no open text field for the question, you may provide an explanation in the 'Further information' field in the online response system (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

Limits noted in the guidance and the online response system (ORS) include spaces.

Company-specific information

Some questions request company-specific information. 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. 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. This level of detail gives data users confidence that the issue at hand has been thoroughly considered in the context of the responder’s own business and not simply assessed in general terms.

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 from last year

The 'copy from last year' functionality will be available in the ORS for 2019 disclosure.

Note that it may be disabled for modified data points. The reporting guidance will indicate which questions have been revised, and your responses should always be checked before submitting.

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

Please select from the categories provided whenever possible, and only select 'Other, please specify' when none of the listed options is appropriate. This greatly assists data analysis.

'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 periods 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 changes underway following the acquisitions. 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.

Submitting your response through CDP's online response system (ORS)

Please refer to Using CDP's Online Disclosure Platform for more details.

How do I provide feedback to CDP?

The opportunity to provide feedback to CDP on the content of our questionnaire and supporting documents is available through our online Technical Feedback Form. You will not receive a reply to your feedback unless required. If you represent a responding organization and would like an immediate response, please email [email protected]

Sector introduction: Oil & gas (Climate)

The oil & gas sector is part of CDP’s energy cluster. For the climate change program, this cluster includes companies operating in the coal, electric utilities, and oil & gas industries.

Climate change is a strategic risk for the oil & gas sector[1], whose operational and use phase emissions collectively account for half of global CO₂ emissions.

The climate change oil & gas sector questionnaire is based on questions from CDP’s previous climate change oil and gas module. Questions are also based on other frameworks and research relevant to this sector, including CDP’s investor reports. Many questions across the energy sector overlap, and where possible, align with external frameworks.

CDP’s oil & gas questionnaire has sector-specific questions on the following topics:

• Low-carbon transition plan;
• Specific targets and performance indicators for the sector. Included in these questions are specific methane targets and several questions on flaring and methane leak detection and reduction;
• Emissions breakdowns by oil and gas business divisions, associated activities, emissions categories, and methane emissions;
• Hydrocarbon reserves, production, refining, and transportation figures;
• Low-carbon investments and capital flexibility; and
• Transfers & sequestration of CO₂ emissions.

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[1] IIGCC (2016) Investor Expectations of Oil and Gas Companies: Transition to a lower carbon future

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 and save your response before accessing the rest of the questionnaire.

Key changes

None.

Sector-specific content

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

• Agricultural commodities
• Food, beverage and tobacco
• Paper & forestry
• Coal
• Electric utilities
• Oil & gas
• Cement
• Chemicals
• Metals & mining
• 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.

Introduction

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

Change from 2018

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 disclosure platform, 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. If you chose not to answer questions C7.3a/c and C7.6a/c regarding emissions breakdowns by business activity, please describe the business divisions and activities included in your GHG inventory and how they contribute to your company’s total Scope 1, 2 and/or 3 emissions.
• This information helps data users understand your company’s emissions profile and differences in emissions figures between peer companies.
• Note and explain any changes in your reporting year (C0.2) from previous CDP disclosures (e.g. from reporting calendar year to financial year, or vice versa).

(C0.2) State the start and end date of the year for which you are reporting data.

Change from 2018

No change

Rationale

This will help data users interpret your responses.

Response options

Please complete the following table.

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 emissions data for
From: [DD/MM/YYYY]	To: [DD/MM/YYYY]	Select from: Yes No	Select from: 1 year 2 years 3 years

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 Scope 1 and Scope 2 emissions data for the three years prior to the current reporting year in the emissions accounting questions (C6.1 and C6.3).
• 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.
• This will enable you to enter multiple years of data when you reach questions C6.1 and C6.3.

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.
• This will enable you to enter multiple years of data when you reach questions C6.1 and C6.3.
• When you arrive at the relevant questions that need to be restated (C6.1 and C6.3), use the comment column to identify the reason for the restatement.
• For more information on restatements see CDP's technical note on restatements here.

(C0.3) Select the countries/regions for which you will be supplying data.

Change from 2018

Minor change

Rationale

This will help data users interpret your responses.

Response options

Please complete the following table:

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

Requested content

General

• Select all countries/regions 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 2018

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]

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 consolidation approach to your Scope 1 and Scope 2 greenhouse gas inventory.

Change from 2018

No change

Rationale

This will help data users interpret your responses.

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.

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.
• 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.

Explanation of terms

• Company: Throughout this information request, “your company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
• 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.
• Organization: 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”.
• 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: Oil and Gas

(C-OG0.7) Which part of the oil and gas value chain and other areas does your organization operate in?

Change from 2018

Minor change

Rationale

CDP aims to deliver a more focused questionnaire for organizations that operate in the oil and gas value chain. Based on your response to this question, you will receive questions that are most relevant to your organization. Answers provided here will allow investors and data users to more accurately compare responses across organizations and industries.

Response Options

Select all that apply from the following options:

Oil and gas value chain

• Upstream
• Midstream
• Downstream
• Chemicals

Other divisions

• Biofuels
• Grid electricity supply from gas
• Grid electricity supply from coal
• Grid electricity supply from renewables
• Carbon capture and storage/utilization
• Coal mining

Requested content

General

• Select all aspects of the oil and gas value chain that your organization operates in.
• Based on your response to this question you will receive questions that are most relevant for your organization, e.g. only organizations that have activities in carbon capture and storage/utilization, (CCS/U) and therefore select this division, will be presented questions regarding CCS/U.
• The oil and gas industry encompasses a wide variety of activities, ranging from the discovery and production of oil and gas to the delivery of petroleum products to consumers. IPIECA, the global oil and gas industry association for environmental and social issues, divides oil and gas companies’ activities into three areas:

- Upstream: The exploration, development, and production of oil and gas.
- Midstream: The transportation and distribution of crude oil and natural gas.
- Downstream: The refining, processing and marketing of products derived from oil and gas, including service stations operations.
- Chemicals: The manufacture, distribution and marketing of chemical products derived from oil and gas (petrochemicals).
- (Adapted from the IPIECA Petroleum industry guidelines for reporting greenhouse gas emissions).

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 below board-level.

Key changes

• Question 1.2 has been added to the minimum version of the questionnaire.
• Additional guidance for financial services sector companies has been added for question C1.1.

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.

Board oversight

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

Change from 2018

No change

Rationale

This question provides an indication of the importance of climate-related issues to your business. Investors and data users are interested in organizations’ understanding and approach to climate-related risks at the board level; how aligned this is with organizational strategy, plans of action, management policies, and performance objectives; and how the board monitors progress against targets and goals. This question supports TCFD’s Governance recommendation a) Describe the board’s oversight of climate-related risks and opportunities.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Response options

Select one of the following options:

• Yes
• No

Requested content

General

• In answering this question, consider whether the board and/or board committees consider climate-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.
• If any of these options is true, please select ‘Yes.'
• If your organization has board-level oversight of an integrated environmental risk assessment that considers any climate-related risks and opportunities among other environmental aspects, select ‘Yes.' You'll be able to provide details in subsequent questions.

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 use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board".

Additional information

Board oversight of climate-related issues: The board has responsibilities across the organization in areas such as business and risk strategy, financial stability and regulatory compliance. When disclosing board oversight of climate-related issues, consider:

• The processes and frequency by which the board and/or board committees (e.g., audit, risk, or other committees) are informed about climate-related issues,
• Whether a specific board member or committee has responsibility for climate-related policies, strategy and information;
• How responsibility for climate-related policies, strategy, and information is delegated and how management is held accountable and/ or incentivized for implementation of the organization’s policies;
• The nature and reliability of the underlying information and control systems used by the board to prepare climate-related information and provide related disclosures;
• Whether the organization’s climate-related policies and strategies are subject to the same governance processes and disclosure controls and procedures that are used for financial management;
• Who approves the release of climate-related information; and,
• How the board monitors and oversees progress against goals and targets for addressing climate-related issues.

For further information on board-level oversight in governance, see TCFD’s recommendations and CDP’s technical note on the TCFD’s recommendations.

(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 2018

Minor change, Modified guidance

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. This question supports TCFD’s Governance recommendation a) Describe the board’s oversight of climate-related risks and opportunities.

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.

Position of individual(s)	Please explain
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) Other C-Suite Officer President Board-level committee Other, please specify	Text field [maximum 1,000 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.

Position of individual(s) (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 (“Please explain”).
• 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 (“Please explain”).
• 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.
• If there is more than one position, please add a row.

Please explain (column 2)

• Provide a description of the position(s)/committee(s) in the corporate structure and the level of responsibility they have towards climate-related issues; and
• Explain how the responsibilities of the position(s)/committee(s) are related to climate 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.
• You can use this text field to enter any relevant information.

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 2018

No change

Rationale

This question provides an indication of the importance of climate-related issues to your business. Investors are interested in organizations’ understanding and approach to climate-related risks at the board level; how aligned this is with organizational strategy, plans of action, management policies, and performance objectives; and how the board monitors progress against targets and goals. This question supports TCFD's Governance recommendation a) Describe the board's oversight of climate-related risks and opportunities.

Connection to other frameworks

TCFD

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

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.

Frequency with which climate-related issues are a scheduled agenda item	Governance mechanisms into which climate-related issues are integrated	Please explain
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 major plans of action Reviewing and guiding risk management policies Reviewing and guiding annual budgets Reviewing and guiding business plans Setting performance objectives Monitoring implementation and performance of objectives Overseeing major capital expenditures, acquisitions and divestitures Monitoring and overseeing progress against goals and targets for addressing climate-related issues Other, please specify	Text field [maximum 3,000 characters]

[Add Row]

Requested content

General

• 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 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.

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

• Select from the drop-down all of the governance mechanisms in which climate-related issues are included as a scheduled agenda item and presented to the board.

Please explain (column 3)

• Describe the governance mechanisms selected in column 2 and how, given the frequency reported in column 1, these mechanisms contribute to the board's overall oversight of climate-related issues.
• You may also include such details as who briefs the board and on which matters (e.g. "a report from each Business Head regarding performance against climate targets is reviewed quarterly.")
• As much as possible, please 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 2018

No change

Rationale

As board-level oversight of climate-related issues is considered best practice, CDP and its data users are interested in understanding why companies do not follow this practice. This information sheds light on a company’s management and prioritization of climate-related issues and is useful for data users to analyze climate management practices across companies.

Response options

Please complete the following table:

Primary reason	Board-level oversight of climate-related issues will be introduced in 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 rationale for not currently having board-level oversight of climate-related issues.
• While there may be multiple reasons for this, please describe the overarching primary justification.

Please explain (column 3)

• Use this column to provide any explanation of what you plan to implement in the next two years, or why you do not currently plan to do so.

Management responsibility

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

Change from 2018

Minor change

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 a climate-related strategy.

Connections to other frameworks

TCFD

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

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.

Name of the position(s) and/or committee(s)	Responsibility	Frequency of reporting to the board on climate-related issues
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) Other C-Suite Officer, please specify President Risk committee Sustainability committee Safety, Health, Environment and Quality committee Corporate responsibility 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 There is no management level responsibility for climate-related issues Other, please specify	Select from: Assessing climate-related risks and opportunities Managing climate-related risks and opportunities Both assessing and managing climate-related risks and opportunities 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

[Add Row]

Requested content

General

• Please provide details of the highest management-level position or committee with a responsibility for climate-related issues.
• The responsibility may be for assessing and/or managing climate-related risks and opportunities, among others.

Name of the position(s) and/or committee(s) (column 1)

• Select the best match for the position/committee in your organization, or select ‘Other, please specify’ and a text box will appear for you to complete.
• The list includes senior positions that may sometimes but not always be at board level.
• 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.
• Note that positions already listed in C1.1a are also listed here, select one of those only if the individual in the position has effective management responsibility for climate-related issues.
• If there is more than one position/committee with high management-level responsibility and you would like to describe this, you may use the Add row button. This is optional.
• If you are selecting more than one position or committee by adding rows, make sure that the position/committee with the highest level of responsibility is in the top row of the table.

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.

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate-related issues are monitored (do not include the names of individuals).

Change from 2018

Minor change

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 a climate-related strategy.

Connection to other frameworks

TCFD

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

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 disclosure platform, formatting is not retained.

Requested content

General

• Use the text box to describe where the highest management-level position(s) or committee(s) with responsibility for climate-related issues sit in the organizational structure, their responsibilities, and how climate-related issues are monitored.
• Your answer should be company-specific and cover the following:

i. Where in the organizational structure this position(s) and/or committee(s) lie;
ii. A rationale of why responsibilities for climate-related issues have been assigned to this/these position(s) or committee(s); and
iii. Specific responsibilities of every position and/or committee with regard to assessment and management of 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.
• If there is no management level responsibility for climate-related issues below the board-level, please state so here.

Employee incentives

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

Change from 2018

Minor 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

Response options

Select one of the following options:

• Yes
• No

Requested content

General

• Note that incentives can be positive (i.e. give people something) or negative (prevent access to something).
• If you wish to comment on your selection, you may click on the “speech bubble” icon. This is optional.

(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 2018

Minor 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

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Strategy

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.

Who is entitled to benefit from these incentives?	Types of incentives	Activity incentivized	Comment
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) Other C-Suite Officer President 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 Buyers/purchasers All employees Other, please specify	Select from: Monetary reward Recognition (non-monetary) Other non-monetary reward	Select from: Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency project Efficiency target Behavior change related indicator Environmental criteria included in purchases Supply chain engagement Other, please specify	Text field[maximum 2,400 characters]

[Add Row]

Requested content

General

• The employee (selected in column 1) should be matched to the incentive type (column 2) and activity incentivized (column 3). Entries in columns 1, 2 and 3 should be selected from the lists shown in the table.

Who is entitled to benefit from these incentives? (column 1)

• Corporate executive team - the team running the company rather than a team of individuals at the corporate executive level.
• If incentives are provided to specific lower-level employees, select "Other, please specify" (column 1) and explain in the "Comment" column (column 4).
• If "There are no incentives..." is selected, please explain why not in the "Comment" column (column 4) and any plans to incorporate these in the future.
• Note that this question asks about the position of employees receiving incentives. Do not include the name of any individual or any other personal data in your response.

Types of incentives (column 2)

• Select one of the following. Incentive types include:

- Monetary - a bonus or some form of financial remuneration;
- Recognition (non-monetary) - employee award (e.g. employee of the year) or career progression scheme, but not tied directly to any form of financial remuneration;
- Other non-monetary reward - including increased holiday allowances, special assignment, parking allocations etc.

Activity incentivized (column 3)

• Select one of the provided options. Incentives performance indicators include:

- The implementation of projects that are actively realizing savings in emissions, energy, and/or that are promoting efficiency;
- Targets: Performance that is resulting in progress towards your company's target(s);
- Behavior change: including indicators such as contribution towards corporate global reputation improvement, rate of participation of employees to environmental activities, educating employees.

• If you select “Other, please specify”, provide a label for the Activity incentivized.

Comment (column 4)

• You can use this text field to enter any additional relevant information.
• Note that this question asks about the position of employees receiving incentives. Do not include the name of any individual or any other personal data in your response.

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 low-carbon economy recognized in the Paris Agreement and UN SDGs. This module focuses on processes for identifying, assessing, and managing climate-related issues as well as on the climate-related risks and opportunities identified by your organization. This information helps investors 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 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 financial activities. When evaluating exposure to climate-related risks and opportunities, financial services sector companies should primarily consider the impact on their lending, financial intermediary, investment and/or insurance underwriting activities, in addition to operational activities.
• For further information please see CDP's Technical Note on Financial Services.

Key changes

• Questions C2.3a and C2.4a now allow companies to report financial impact figures associated with risks and opportunities as either a single figure or range.
• Questions C2.5 and C2.6 now only appear if you select "Yes" in response C2.3 and/or C2.4.
• Additional guidance for financial services sector companies has been added for questions C2.2, C2.2c and C2.3a.

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.

Time horizons

(C2.1) Describe what your organization considers to be short-, medium- and long-term horizons.

Change from 2018

No change

Rationale

CDP has added this question to understand the different timescales at which businesses consider climate-related issues in their strategy and financial planning. Subsequent questions on risk and opportunity disclosure as well as transition planning, relate to different time horizons, hence their definition is requested here. This question supports TCFD Strategy recommendation a): Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

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.

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 horizon is open-ended you may leave the column "To (years)" blank.

Comment (column 4)

• Please specify if this time horizon for assessing climate-related risks and opportunities is aligned with other business practice time horizons.
• 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 likely to adjust and shift 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 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 assessnig climate-related risks.

Management processes

(C2.2) Select the option that best describes how your organization's processes for identifying, assessing, and managing climate-related issues are integrated into your overall risk management.

Change from 2018

No change

Rationale

This question aims to understand how climate-related issues are identified, assessed and managed, particularly in relation to other issues (risks and opportunities) that your company faces.

Connection to other frameworks

TCFD

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.

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Governance and management incentives

Response options

Select one of the following options:

• Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes
• A specific climate change risk identification, assessment, and management process
• There are no documented processes for identifying, assessing, and managing climate-related issues

Requested content

General

• If your organization has more than one procedure in place, select the one that is most commonly employed. You will have the opportunity to expand further in subsequent questions.

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

Note for financial services sector companies:

• The climate-related issues to be considered should relate to the lending, financial intermediary, investment and/or insurance underwriting activities of your organization, in addition to your operational activities. Further details can be provided in subsequent questions in this module.
• For further information please see CDP's Technical Note on Financial Services.

(C2.2a) Select the options that best describe your organization's frequency and time horizon for identifying, and assessing climate-related risks.

Question dependencies

This question only appears if you select “Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes” or “A specific climate change risk identification, assessment, and management process” in response to C2.2.

Change from 2018

No change

Rationale

Understanding a company's timeframe for risk analyses provides insight into the thoroughness of the assessment procedures employed by organizations. Companies that frequently assess risk and examine risks far into the future may be better equipped to handle longer-term uncertainties and liabilities.

Response options

Please complete the following table:

Frequency of monitoring	How far into the future are risks considered?	Comment
Select from: Six-monthly or more frequently Annually Every two years Not defined Never	Select from: Up to 1 year 1 to 3 years 3 to 6 years > 6 years Unknown	Text field [maximum 1,000 characters]

Requested content

Frequency of monitoring (column 1)

• Select the option that describes how often climate-related risks are examined. If climate-related risk management is integrated into company-wide risk identification and assessment policies then the frequency of monitoring will be the same throughout the enterprise risk management process.

How far into the future are risks considered? (column 2)

• Choose the timeframe that best describes the furthest into the future your company assesses risk. For example, if you only consider risks that may impact your business in the next 5 years, you should select “3 to 6 years.” If you analyze risks that may arise up to 10 years in the future, you should select “> 6 years.”

(C2.2b) Provide further details on your organization’s process(es) for identifying and assessing climate-related risks.

Question dependencies

This question only appears if you select “Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes” or “A specific climate change risk identification, assessment, and management process” in response to C2.2.

Change from 2018

No change

Rationale

Identifying and assessing risk are the first steps in managing them. Investors and data users are interested in understanding how thoroughly companies are identifying and assessing risks.

Connection to other frameworks

TCFD

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

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 disclosure platform, formatting is not retained.

Requested content

General

• This question is asking about the process of identifying risks related to climate change, and not about the specific inherent risks that your organization may face - these are disclosed in question C2.3a.
• Include in your answer:

- How climate-related risks are identified and assessed at a company level (e.g. reputational risk can impact the full corporation);
- How climate-related risks are identified and assessed at an asset level (e.g. physical impacts can affect individual facilities). Please note that asset level is defined as anything below company level, such as individual sites and subsidiaries;
- The process you have in place for assessing the potential size and scope of identified risks;
- The process by which your organization determines the relative significance of climate-related risks in relation to other risks;
- The definitions of risk terminologies used (or references to existing risk classification frameworks utilized by your company);
- How your organization defines substantive financial or strategic impact on your business:

- 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 provide details as to how they recognize an impact to be substantive at the corporate level and to include details of any qualitative or quantitative metrics. Factors to consider may include: (a) The proportion of business units affected; (b) The size of the impact on those business units, and (c) The potential for shareholder or customer concern. A substantive financial impact of relatively high magnitude could occur because of a large change in one of these aspects, or small changes in all three combining to create a larger impact.

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

Question dependencies

This question only appears if you select “Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes” or “A specific climate change risk identification, assessment, and management process” in response to C2.2.

Change from 2018

Modified guidance

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.

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 2,400 characters]
Emerging regulation
Technology
Legal
Market
Reputation
Acute physical
Chronic physical
Upstream
Downstream

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, in line with your organization process(es) described in C2.2b.
- For every risk type deemed relevant, an example of a specific risk considered in your assessment, and an explanation of how it is included.
- If you choose ‘Not relevant, explanation provided’: why this risk type is not deemed relevant.

Note for financial services sector companies:

• Consider how climate-related risks apply to your lending, financial intermediary, investment and/or insurance underwriting activities, in addition to your operational risks.
• For further information please see CDP's Technical Note on Financial Services.

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.

(C2.2d) Describe your process(es) for managing climate-related risks and opportunities.

Question dependencies

This question only appears if you select “Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes” or “A specific climate change risk identification, assessment, and management process” in response to C2.2.

Change from 2018

Modified guidance

Rationale

Investors and data users are interested in understanding how thoroughly companies are addressing climate-related risks and opportunities.

Connection to other frameworks

TCFD

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

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 disclosure platform, formatting is not retained.

Requested content

General

• Please discuss your company’s approach to managing climate-related risks and opportunities including how your organization makes decisions to mitigate, transfer, accept or control the identified climate-related risks and to capitalize on opportunities.

- Include in your response a case study or example of how the process has been applied to at least one transition risk and/or opportunity and at least one physical risk and/or opportunity. If you have not identified any relevant risks or opportunities in either of these categories, please state so.

• Note that your response to this question may refer to the position of employees relevant to your risk management processes. In this case, do not include the name of any individual or any other personal data in your response.

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.

• Risk management: refers to a set of processes that are carried out by an organization's board and management to support the achievement of the organization's objectives by addressing its risks and managing the combined potential impact of those risks.

(C2.2e) Why does your organization not have a process in place for identifying, assessing, and managing 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 “There are no documented processes for identifying, assessing, and managing climate-related issues” in response to C2.2.

Change from 2018

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 risk identification, assessment, and 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 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 manage 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.

Risk disclosure

(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 2018

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:

• Yes
• No

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; 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).

• 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. Factors to consider may include: (a) The proportion of business units affected; (b) The size of the impact on those business units,a and (c) The potential for shareholder or customer concern. A substantive financial impacts of relatively high magnitude could occur because of a large change in one of these impacts, or small changes in all three combining to create a larger impact.

(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 2018

Modified question

Rationale

Your response to this question will allow CDP 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.

This question supports TCFD Strategy recommendations a): Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term; and b): Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning.

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.

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.

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

Response options

Please complete the following table. For clarity, the table is displayed over several rows. You are able to add rows by using the “Add Row” function at the bottom of the table.

Identifier	Where in the value chain does the risk driver occur?	Risk type	Primary climate-related risk driver	Type of financial impact	Company- specific description	Time horizon
Select from: Risk1 - Risk100	Select from: Direct operations Supply chain Customer Investment chain	Select from: Transition risk Physical risk	See drop-down options below	See drop-down options below	Text field [maximum 2,400 characters]	Select from: Current 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)
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	Management method	Cost of management	Comment
Text field [maximum 1,000 characters]	Text field [maximum 1,500 characters]	Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]	Text field [maximum 1,000 characters]

[Add Row]

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

Select one of the following options:

Transition risks Policy and legal: Increased pricing of GHG emissions Policy and legal: Enhanced emissions-reporting obligations Policy and legal: Mandates on and regulation of existing products and services Policy and legal: Exposure to litigation Policy and legal: Other Technology: Substitution of existing products and services with lower emissions options Technology: Unsuccessful investment in new technologies Technology: Costs to transition to lower emissions technology Technology: Other Market: Changing customer behavior Market: Uncertainty in market signals Market: Increased cost of raw materials Market: Other Reputation: Shifts in consumer preferences Reputation: Stigmatization of sector Reputation: Increased stakeholder concern or negative stakeholder feedback Reputation: Other

Physical risks Acute: Increased severity of extreme weather events such as cyclones and floods Acute: Other Chronic: Changes in precipitation patterns and extreme variability in weather patterns Chronic: Rising mean temperatures Chronic: Rising sea levels Chronic: Other

Type of financial impact drop-down options (column 5)

Select one of the following options:

Transition risks If primary climate-related risk driver is Policy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums) Write-offs, asset impairment, and early retirement of existing assets due to policy changes Increased costs and/or reduced demand for products and services resulting from fines and judgements Increased credit risk (e.g., increased probability of default and/or loss given default) Increased insurance claims liability arising from climate-related impacts Other, please specify If primary climate-related risk driver is Technology: Write-offs and early retirement of existing assets due to technology changes Reduced demand for products and services Research and development (R&D) expenditures in new and alternative technologies Capital investments in technology development Costs to adopt/deploy new practices and processes Increased credit risk (e.g., increased probability of default and/or loss given default) Increased insurance claims liability arising from climate-related impacts Other, please specify If primary climate-related risk driver is Market: Reduced demand for goods and/or services due to shift in consumer preferences Increased production costs due to changing input prices (e.g., energy, water) and output requirements (e.g., waste treatment) Abrupt and unexpected shifts in energy costs Change in revenue mix and sources resulting in decreased revenues Re-pricing of assets (e.g., fossil fuel reserves, land valuations, securities valuations) Increased credit risk (e.g., increased probability of default and/or loss given default) Increased insurance claims liability arising from climate-related impacts Other, please specify If primary climate-related risk driver is Reputation: Reduced revenue from decreased demand for goods/services Reduced revenue from decreased production capacity (e.g., delayed planning approvals, supply chain interruptions) Reduced revenue from negative impacts on workforce management and planning (e.g., employee attraction and retention) Reduction in capital availability Increased credit risk (e.g., increased probability of default and/or loss given default) Increased insurance claims liability arising from climate-related impacts Other, please specify

Physical risks Reduced revenue from decreased production capacity (e.g., transport difficulties, supply chain interruptions) Reduced revenue and higher costs from negative impacts on workforce (e.g., health, safety, absenteeism) Write-offs and early retirement of existing assets (e.g., damage to property and assets in "high-risk" locations) Increased operating costs (e.g., inadequate water supply for hydroelectric plants or to cool nuclear and fossil fuel plants) Increased capital costs (e.g., damage to facilities) Reduced revenues from lower sales/output Increased insurance premiums and potential for reduced availability of insurance on assets in "high-risk" locations Increased credit risk (e.g., increased probability of default and/or loss given default) Increased insurance claims liability arising from climate-related impacts 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.

Risk type (column 3)

• See C2.2c for the explanation of terms.

Primary climate-related risk driver (column 4)

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

Type of financial impact (column 5)

• This column refers to the potential financial impact that the risk could have on your organization and will depend on the risk driver chosen in column 4. 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). If you select “Other, please specify”, provide a label for the Type of financial impact.

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 column 11 or columns 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 10, 11, 12);
• 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 5), and provide more details on the nature of the impact in case you selected “Other, please specify” in column 5.

Management method (column 15)

• Use this text field to provide information on the methods you are using to manage the risks. Make sure to include an example of company-specific activities, projects, products and/or services which are aiming to manage the risk. Make sure to include:

- An example of company-specific activities, projects, products, and/or services which are aiming to manage the risk; and
- An explanation of how the figure for the cost of your risk management actions (in columns 16) was calculated.

Cost of management (column 16)

• Provide a quantitative figure for the cost of your risk management actions. If there are no costs to managing the risk, enter 0.
• If you cannot provide absolute values, you may provide a percentage value in the “Comment” column (column 17).
• This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.

Comment (column 17)

• 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 here 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 mitigate the risk(s).
• 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.
• For further information please see CDP's Technical Note on Financial Services.

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%.

(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 2018

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 2,400 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 C2.2b.
• If none of the reasons listed are applicable, select "Other, please specify". If you select “Other, please specify”, provide a label for the Primary reason.

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 2018

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

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:

• 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

(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 2018

Modified question

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

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.

SDG

Goal 7: Affordable and clean energy

Goal 12: Responsible consumption and production

Goal 13: Climate action

Response options

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

Identifier	Where in the value chain does the opportunity occur?	Opportunity type	Primary climate-related opportunity driver	Type of financial impact	Company-specific description	Time horizon
Select from: Opp1 - Opp100	Select from: Direct operations Supply Chain Customer Investment chain	Select from: Resource efficiency Energy source Products and services Markets Resilience	See drop-down options below	See drop-down options below	Text field [maximum 2,400 characters]	Select from: Current Short-term Medium-term Long-term

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]	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	Strategy to realize opportunity	Cost to realize opportunity	Comment
Text field [maximum 1,000 characters]	Text field [maximum 1,500 characters]	Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]	Text field [maximum 1,000 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 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

Products and services Development and/or expansion of low emission goods and services Development of climate adaptation and insurance risk solutions Development of new products or services through R&D and innovation Ability to diversify business activities Shift in consumer preferences Other Markets Access to new markets Use of public-sector incentives Access to new assets and locations needing insurance coverage Other Resilience Participation in renewable energy programs and adoption of energy-efficiency measures Resource substitutes/diversification Other

Type of financial impact drop-down options (column 5)

Select one of the following options:

Resource efficiency Reduced operating costs (e.g., through efficiency gains and cost reductions) Increased production capacity, resulting in increased revenues Increased value of fixed assets (e.g., highly rated energy-efficient buildings) Benefits to workforce management and planning (e.g., improved health and safety, employee satisfaction resulting in lower costs) Other, please specify Energy source Reduced operational costs (e.g., through use of lowest cost abatement) Reduced exposure to future fossil fuel price increases Reduced exposure to GHG emissions and therefore less sensitivity to changes in cost of carbon Returns on investment in low-emission technology Increased capital availability (e.g., as more investors favor lower-emissions producers) Reputational benefits resulting in increased demand for goods/services Other, please specify

Products and services Increased revenue through demand for lower emissions products and services Increased revenue through new solutions to adaptation needs (e.g., insurance risk transfer products and services) Better competitive position to reflect shifting consumer preferences, resulting in increased revenues Other, please specify Markets Increased revenues through access to new and emerging markets (e.g., partnerships with governments, development banks) Increased diversification of financial assets (e.g., green bonds and infrastructure) Other, please specify Resilience Increased market valuation through resilience planning (e.g., infrastructure, land, buildings) Increased reliability of supply chain and ability to operate under various conditions Increased revenue through new products and services related to ensuring resiliency 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.

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).

Type of 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);
• If you select “Other, please specify”, provide a label for the Type of financial impact driver.

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 of impact (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 10, 11, 12).
• 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.

Strategy to realize opportunity (column 15)

• 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 16) was calculated.

Cost to realize opportunity (column 16)

• Provide numerical data on the cost to realize opportunity. If there are no costs to this, enter 0.
• If you cannot provide absolute values you may provide a value in the “Comment” column (column 17).

Comment (column 17)

• 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.

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%.

(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 2018

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, 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 2,400 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.
• If you select “Other, please specify”, provide a label for the Primary reason. Explain the reason in more detail in column 2.

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 C2.2b 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.

Business impact assessment

(C2.5) Describe where and how the identified risks and opportunities have impacted your business.

Question dependencies

This question only appears if you select “Yes" in response to C2.3 and/or C2.4.

Change from 2018

Modified guidance

Rationale

This question is seeking to understand in which areas of your business the identified risks and opportunities have or are expected to materialize.

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.

SDG

Goal 12: Responsible consumption and production

Response options

Please complete the following table:

Area	Impact	Description
Products and services	Select from: Impacted Impacted for some suppliers, facilities, or product lines Not yet impacted Not impacted Not evaluated We have not identified any risks or opportunities	Text field [maximum 2,400 characters]
Supply chain and/or value chain
Adaptation and mitigation activities
Investment in R&D
Operations
Other, please specify

General

• Each row in the table corresponds to a particular area of a company’s business. For each row, select how the identified climate-related risks and opportunities have impacted or are expected to impact each particular area of your business (column 2).
• For example, you may identify in C2.4a that climate change poses an opportunity for your company to develop more low-emissions products and services. You should report that in row 1 here, and likely in row 4, if you anticipate a change in your investment in R&D.
• If you are reporting in the “Other, please specify” row, please specify what area this applies to in the ‘Description’ column (column 3).

Description (column 3)

• Include a company-specific description of how each business area has been or will be impacted by the risks and opportunities identified in C2.3a and C2.4a. For example, if in C2.3a you identified that extreme weather events may pose a risk to your supply chain, explain in column 3 how you have integrated this risk into your business strategy and planning when evaluating your supply chain. If the business area is not impacted, explain why not.
• If you are reporting in the “Other, please specify” row, please specify what area this applies to here.
• When ‘Impacted’ OR ‘Impacted for some suppliers, facilities or product lines’ is selected, include:

- Reference the specific risk(s) and/or opportunity(ies) that relate to this area of the business and state the aggregate magnitude of that impact.

• When ‘Not yet impacted’ is selected, include:

- Reference the specific risk(s) and/or opportunity(ies) that relate to this area of the business and state the aggregate potential magnitude and time horizon of that impact.

• When ‘Not impacted’ is selected, include:

- A company-specific description of why this area of your business has not been impacted.

• The magnitude describes the extent to which the impact(s) affect the business area. 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 (e.g high, medium, low).
• If you are reporting in the “Other, please specify” row, please specify what area this applies to here.

Financial planning assessment

(C2.6) Describe where and how the identified risks and opportunities have been factored into your financial planning process.

Question dependencies

This question only appears if you select “Yes" in response to C2.3 and/or C2.4.

Change from 2018

Modified guidance

Rationale

This question is seeking to understand where the identified risks and opportunities have affected or may affect your financial statements.

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.

Response options

Please complete the following table:

Area	Relevance	Description
Revenues	Select from: Impacted Impacted for some suppliers, facilities, or product lines Not impacted Not yet impacted Not evaluated We have not identified any risks or opportunities	Text field [maximum 2,400 characters]
Operating costs
Capital expenditures/capital allocation
Acquisitions and divestments
Access to capital
Assets
Liabilities
Other

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 and if not, whether you expect this to happen in the future.
• Each row in the table corresponds to a particular area of a company’s financial statements. For each row, select how climate-related risks and opportunities have, in aggregate, impacted each element of the financial statement (identified in column 1).
• For example, you may identify in C2.3a that a number of risks may result in decreased demand for your existing products, and in C2.4a that there is an opportunity to diversify your portfolio with low-carbon products. This may impact your long-term capital allocation by increasing investment into research and development. This should be reflected in “Capital expenditures/capital allocation” row of the table. The reduced demand for existing products may also affect revenues which can be reflected in the “Revenues” row.
• If you are reporting in the “Other” row, please specify what area this applies to in the ‘Description’ column (column 3).

Description

• Please reference the specific risk(s) and/or opportunity(ies) that relate to this financial statement element and state the aggregate magnitude of that impact(s). The magnitude describes the extent to which the impact(s) affect a particular area of a company’s financial statements. It is not possible for CDP 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 (e.g high, medium, low).
• If a certain financial statement element is not expected to be impacted, explain why not.
• If you are reporting in the “Other, please specify” row, please specify what area this applies to here.

Explanation of terms

• Acquisition: Acquisition refers to obtaining ownership and control by one firm, in whole or in part, of another firm or business entity.
• Assets: Assets are 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: A key process in positioning capital to increase value. There are five types of capital from where goods and services are derived:

1. Natural capital – resources, sinks, processes
2. Human capital – health, knowledge, skills
3. Social capital – maintaining and developing human capital through partnerships
4. Manufactured capital – material goods or fixed assets that contribute to production processes
5. Financial capital – monetary value of other types of capital

• Divestment: A process for managing a portfolio of assets, commonly based on the selling of 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).
• Expenditure: Capital expenditure measures the value of purchases of fixed assets i.e. those assets that are used repeatedly in production processes for more than a year. The value is at full cost price. Sales of fixed assets are not deducted.
• Financial planning: In line with TCFD recommendations, financial planning refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. The process of 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).
• Liabilities: A liability is 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.
• 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.
• Revenue (also recognized as “top line” or “turnover”): the total monetary income received over a specific period.

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 in to 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 low-carbon 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 CDP Technical Note on Scenario Analysis.

Responses given in this module should be relevant to the reporting period, even if revisions have been made to the 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 the investors 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.
• For further information please see CDP's Technical Note on Financial Services.

Key changes

• Additional guidance for financial services sector companies has been added for question C3.1.

Sector-specific content

Additional questions on low-carbon transition plan for the following high-impact sectors:

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

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.

Business strategy

(C3.1) Are climate-related issues integrated into your business strategy?

Change from 2018

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 acted upon integrating climate-related issues in to their 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.

SDG

Goal 13: Climate action

Response options

Select one of the following options:

• Yes
• No

Requested content

General

• You should answer “Yes” when one of the following is integrated in to your overall business strategy:

- The need to reduce carbon or other greenhouse gas emissions;
- The need to adapt to climate change, the Paris Agreement, and related energy impacts (positive or negative);
- The need to capitalize on opportunities presented by climate change, and/or;
- The need to communicate on/learn more about climate change.

• As such, climate-related issues are part of the 'top line growth' strategy of the company, rather than being dealt with solely at the operational level. Note that the above named aspects of climate change and their related issues do not constitute an exhaustive list of climate-related issues that may be integrated into business strategies. If your business strategy incorporates and addresses additional climate-related issues, please discuss those in C3.1c.
• You should answer “No” if climate change impacts/opportunities or carbon or other greenhouse emissions reductions have no influence on your company’s overall strategy for developing your business. You will have the opportunity to explain further in C3.1f.

Note for financial services sector companies:

• You should answer "Yes" when one of the following is integrated into your overall business strategy:

- The need to understand how climate-related issues will impact your client relationships, financial products and services, investments and/or operations; and/or
- The need to provide financial flows to capitalize on opportunities presented by the transition to a low-carbon, climate-resilient future.

• For further information please see CDP's Technical Note on Financial Services

(C3.1a) Does your organization use climate-related scenario analysis to inform your business strategy?

Question dependencies

This question only appears if you select “Yes” in response to C3.1.

Change from 2018

No change

Rationale

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

Connection to other networks

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.

SDG

Goal 13: Climate action

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Scenario Analysis

Response options

Select one of the following options:

• Yes, qualitative
• Yes, quantitative
• Yes, qualitative and quantitative
• No, but we anticipate doing so in the next two years
• No, and we do not anticipate doing so in the next two years

Requested content

General

• Please state if your organization uses climate-related scenario analysis to inform your business strategy.
• If yes, what type of scenario analysis, and if no, please clarify if you anticipate using it as a tool in the future.

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.
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”. A 2°C scenario provides a reference point that is generally aligned with the objectives of the Paris Agreement. There are publicly available scenarios (such as IEA 2DS, IEA 450, Deep Decarbonization Pathways Project, and International Renewable Energy Agency) organizations can use, as a direct tool, or a reference point for tailored scenarios.
Publicly available 2°C scenarios: Taken from TCFD recommendations, “Publicly available 2°C scenarios” refer to 2°C 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.

Additional information

Rationale from the TCFD on importance of scenario analysis

• “The TCFD believes all organizations exposed to climate-related risks should consider (1) using scenario analysis to help inform their strategic and financial planning processes and (2) disclosing how resilient their strategies are to a range of plausible climate-related scenarios. The Task Force recognizes that, for many organizations, scenario analysis is or would be a largely qualitative exercise. However, organizations with more significant exposure to transition risk and/or physical risk should undertake more rigorous qualitative and, if relevant, quantitative scenario analysis with respect to key drivers and trends that affect their operations.
• A critical aspect of scenario analysis is the selection of a set of scenarios (not just one) that covers a reasonable variety of future outcomes, both favorable and unfavorable. In this regard, the Task Force recommends organizations use a 2°C or lower scenario in addition to two or three other scenarios most relevant to their circumstances, such as scenarios related to Nationally Determined Contributions (NDCs), physical climate-related scenarios, or other challenging scenarios. In jurisdictions where NDCs are a commonly accepted guide for an energy and/or emissions pathway, NDCs may constitute particularly useful scenarios to include in an organization’s suite of scenarios for conducting climate-related scenario analysis.
• For an organization in the initial stages of implementing scenario analysis or with limited exposure to climate-related issues, the Task Force recommends disclosing how resilient, qualitatively or directionally, the organization’s strategy and financial plans may be to a range of relevant climate change scenarios. This information helps investors, lenders, insurance underwriters, and other stakeholders understand the robustness of an organization’s forward-looking strategy and financial plans across a range of possible future states.
• Organizations with more significant exposure to climate-related issues should consider disclosing key assumptions and pathways related to the scenarios they use to allow users to understand the analytical process and its limitations. In particular, it is important to understand the critical parameters and assumptions that materially affect the conclusions drawn”.

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.

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

Analytical choices for consideration in scenario analysis: In constructing scenarios there are three major categories of choices and considerations that affect consistency and comparability between scenarios:

• Parameters – e.g. discount rate, GDP
• Assumptions made – e.g. assumptions related to changes in policy, technology, energy mix, commodity price, physical and transitional impacts
• Analytical choices – e.g. choice of scenarios, time horizons, supporting data and models

(C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b) Indicate whether your organization has developed a low-carbon transition plan to support the long-term business strategy.

Question dependencies

This question only appears if you select “Yes” in response to C3.1.

Change from 2018

No change

Rationale

Transition planning is an essential tool to ensure implementation of a low-carbon strategy. Data users are interested in understanding whether you have developed a low-carbon transition plan or if you intend to do so in the future.

Response options

Select one of the following options:

• Yes
• No, we do not have a low-carbon transition plan
• In development, we plan to complete it within the next two years

Requested content

General

• Select the most appropriate response in relation to your organization’s current stance/level of development of a low-carbon transition plan to support a long-term business strategy.

Explanation of terms

• Transition plan: The transition plan is an implementation plan for a company-specific low-carbon trajectory and goes beyond detailing emissions reductions. The plan defines how the business model, its associated products and production methods, growth strategy and capital investments need to develop over time to ensure implementation of a low-carbon strategy.

(C3.1c) Explain how climate-related issues are integrated into your business objectives and strategy.

Question dependencies

This question only appears if you select “Yes” in response to C3.1.

Change from 2018

No change

Rationale

Investors and data users are interested to know how companies are approaching climate change from a strategic perspective. Companies following best practice guidelines will have fully and thoroughly integrated climate-related issues into their overall business strategies. Answers to this question provide transparency into companies’ strategy development processes and shed light on the comprehensiveness of companies’ approach to climate-related issues.

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.

SDG

Goal 13: Climate action

Response options

This is an open text question with a limit of 7,000 characters.

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

Requested content

General

• This question asks about the process by which your strategy was influenced, and the outcomes of that process. If you wish, you may provide a description of your business strategy for additional context.
• 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.
• Your response should cover the following points:

i. A company-specific explanation of how business objectives and strategy have been influenced by climate-related issues;
ii. Explanation of whether your business strategy is linked to an emissions reductions target or energy reduction target;
iii. What have been the most substantial business decisions made during the reporting year that have been influenced by the climate change driven aspects of the strategy (e.g. investment, location, procurement, mergers and acquisitions (M&A), research and development (R&D). Both the business decision and the aspect of climate change that has influenced the business decision must be made clear in the answer. If there are none to report, this should be stated;

• You may also wish to include in your response (optional):

iv. What aspects of climate change have influenced the strategy (e.g. need for adaptation, regulatory changes, or opportunities to develop green business);
v. How the short-term strategy has been influenced by climate change;
vi. How the long-term strategy has been influenced by climate change;
vii. How this is gaining a strategic advantage over your competitors;
viii. How the Paris Agreement has influenced the business strategy (e.g. the process of transition planning alongside the ratcheting of Intended Nationally Determined Contributions (INDCs)).

In case you chose to cover points v. and vi., indicate whether the short- and long-term time horizons referenced there, are consistent with the time horizons used in C2.1.

It is preferable, although not essential, that your response is formatted to distinguish between the points set out above, numbering your paragraphs to coincide with the relevant points.

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

• Companies in these sectors should read the sector specific guidance for the risks and opportunities questions before answering this question.
• The guidance contains a number of issues that investor groups 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.
• Do not cross-refer to the risks and opportunities answers in your response to the questions above.
• Please provide a complete answer to these questions on business strategy in the input fields provided. Additional issues are also covered below.

Note for oil & gas sector companies:

• Companies should 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:

• Please discuss any work to incorporate renewable energy, carbon capture & sequestration, cleaner coal technologies and energy storage into their strategy.

Note for automotive and automotive component manufacturers:

• Companies should discuss links between risks and your targets for your products at group level and, where relevant, for specific markets on fuel economy or GHG emissions reductions per unit distance (expressed as gCO₂e/unit distance) and include a reference to any regulatory drivers and the baseline against which performance is measured; expansion into hybrid/fully electric vehicles and fuel cell technology.

Note for companies with coal reserves:

• Companies with coal reserves can refer here on how to disclose demand and stranded asset risk.

Additional information

• There is a wide range of forward-looking scenarios your company can choose from to inform your businesses, strategy, and/or financial planning. Many of these are 2°C scenarios, although there are of course scenarios which look at 4°C or higher. Despite the Paris Agreement and intention to limit warming to 1.5°C, there remains limited material on such scenarios.
• Since the ratification of the Paris Agreement and the ratcheting mechanisms it contains, investors are urging companies not to select 4°C scenarios but ensure they use appropriate 2°C scenarios. These include IEA 2DS, IEA 450, DDPP, and IRENA. For more information about why CDP and investors are asking for this information and why companies are required to select 2°C scenarios, please see Box 1.

(C3.1d) 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” or “Yes, qualitative and quantitative” in response to C3.1a.

Change from 2018

Minor change

Rationale

Scenario analysis as a planning tool has emerged as 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

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.

SDG

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.

Climate-related scenarios	Details
Select all that apply: 2DS IEA 450 Greenpeace DDPP IRENA RCP 2.6 RCP 4.5 RCP 6 RCP 8.5 IEA B2DS IEA Sustainable development scenario IEA NPS IEA CPS BNEF NEO REMIND MESSAGE-GLOBIOM Nationally determined contributions (NDCs) Other, please specify	Organizations should disclose their inputs, assumptions and analytical methods used for this scenario. For existing scenarios (e.g. IEA 450 etc.), organizations should disclose how they have altered/changed the inputs, assumptions or analytical methods to cater to their needs. Text field [maximum 4,000 characters]

[Add Row]

Requested content

Climate-related scenarios (column 1)

• Select the drop-down options for the climate-related scenarios that are used when undertaking climate-related scenario analysis.
• If you conducted climate-related scenario analysis using different scenarios simultaneously or collectively then select all the applicable scenarios that were used when undertaking scenario analysis.

Details (column 2)

• The details provided should be company-specific and include:

- What boundaries and time horizons were used in the organizations scenario analysis?
- Provide details of the methodology used including:

- Inputs;
- Assumptions;
- Analytical methods, and;
- Changes from the reference scenario which were considered.

- Summarize results and outcomes from scenario analysis, how they are used within the organization, and indicate how they were reported.
- Were there any changes to the organization’s strategy or business model resulting from the climate change scenario analysis? If yes, describe any major changes.
- Provide a case study/example of how the results of scenario analysis have directly influenced your business objectives and strategy.
- Have any monitoring procedures been implemented as a result?
- To whom are the results reported to within the organization, and are the results made public?
- Provide any other relevant information.

Note for energy sectors

Focus in particular on why current investments in new reserves and/or assets are not particularly exposed to the risk of lower demand and stranded assets, how current capital expenditure is affected by any considerations you make with regards to future short-to-long term risk of stranded assets, and what probability/likelihood you assign to that risk. Please make reference to your organization’s energy outlook, how it is reflected in your business strategy, and the flexibility of that strategy to adjust to significant changes in the demand for your products.

Explanation of terms

• 2DS: IEA’s WEO (World Energy Outlook) 2DS scenario is built on a projected warming limit of 2°C and is part of a separate annual publication, the “Energy Technology Perspectives”, providing scenario analysis based on the development of lower carbon technology and 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. The IEA ETP 2DS 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. The IEA ETP 2DS 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 WEO 450 scenario has been updated and now is expressed as realising 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. The IEA 450 scenario 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.
• 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 decarbonised 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 WEO 2014 Current Policies Scenario serves as the reference point in the development of Greenpeace’s Advanced Energy Revolution scenario.
• DDPP: Deep Decarbonization Pathways Project (DDPP) framework is a collaboration between scientific research teams from leading research institutions in 16 of the world’s largest GHG emitting countries; and represents a clear and tangible understanding of what will be required for countries to reduce emissions, in alignment with the 2°C limit. The framework was developed sector by sector and over time, tailored for the physical infrastructure of the 16 countries, to provide decision makers with the technological and cost requirements of different options for meeting the country’s emissions reduction goal. Deep decarbonization pathways begin with a 2050 emissions target to determine the steps on how to get there.
• 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 analyses – in collaboration with country 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 driven results, REmap provides insights to policy and decision makers for areas in which action is needed.
• RCP 2.6: Representative Concentration Pathway (RCP) 2.6 is the IPCC’s low emissions scenario pathway. The RCP’s are time and space dependant trajectories of concentrations of GHGs and pollutants from human activities (including changes in land use). RCPs provide a quantitative description of atmospheric pollutants over time, as well as radiative forces in 2100. 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.
• 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. 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 NPS: IEA’s New Policies Scenario (NPS) incorporates existing energy policies as well as an assessment of the results likely to stem from the implementation of announced policy intentions.
• 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.
• 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. BNEF NEO places focus on technology that is driving change in markets and business models across the sector, such as solar, wind and battery technology. NEO includes price forecasts for coal, oil and gas around the world, and assesses the impact of the energy transition on fossil fuel demand and materials.
• REMIND: REMIND is a global multi-regional model incorporating the economy, the climate system and a detailed representation of the energy sector. It solves for an inter-temporal Pareto optimum in economic and energy investments in the model regions, fully accounting for interregional trade in goods, energy carriers and emissions allowances. REMIND allows for the analysis of technology options and policy proposals for climate mitigation.
• MESSAGE-GLOBIOM: The International Institute for Applied Systems Analysis (IIASA) integrated assessment models (IAMs) framework consists of a combination of five different models or modules - the energy model MESSAGE, the land use model GLOBIOM, the air pollution and GHG model GAINS, the aggregated macro-economic model MACRO and the simple climate model MAGICC - which complement each other and are specialized in different areas. All models and modules together build the IIASA IAM framework, also referred to as MESSAGE-GLOBIOM owing to the fact that the energy model MESSAGE and the land use model GLOBIOM are its most important components.

Additional information

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.

(C-AC3.1e/C-CE3.1e/C-CH3.1e/C-CO3.1e/C-EU3.1e/C-FB3.1e/C-MM3.1e/C-OG3.1e/C-PF3.1e/C-ST3.1e/C-TO3.1e/C-TS3.1e) Disclose details of your organization’s low-carbon transition plan.

Question dependencies

This question only appears if you select “Yes” in response to C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b.

Change from 2018

No change

Rationale

Transition planning is an essential tool to ensure implementation of a low-carbon strategy. Data users are interested in understanding the details of your low-carbon transition plan and steps being taken to implement your climate-related commitments.

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 disclosure platform, formatting is not retained.

Requested content

General

• Report on the details of your transition plan including the details on how you plan to implement your climate-related commitments, for example:

- Implementation targets/pathways and their timeframes, related to (among others) changes and evolutions of products, production methods, the growth strategy and capital investments. Examples of this are efficiency targets, strategies for the rollout of new low-carbon products, plans to increase the organization’s competitive efficiency, and the role of the company’s supply chain and/or clients.
- What intermediate targets and/or milestones the company has established to track and monitor progress to climate-related targets and their implementation targets.
- Challenges that you have identified that could inhibit the successful implementation of your transition plan and its implementation targets/pathways.
- Steps presently being taken to implement a low-carbon transition plan, to increase your organization’s ability to meet ambitious climate-related commitments. State if and how the low-carbon transition plan affects strategic business choices in the present.

• For more information, a description and requirements of low-carbon transition plans refer to the “ACT – Assessing low-Carbon Transition Automotive Manufacturing Sector methodology” report.

Additional information

Intermediate targets and/or milestones

• It is important that short-term actions are taken to reach long-term goals. It is therefore important to establish intermediate emissions and energy targets to link the short-term strategy with the long-term ambitions of the company.

- For example, a company with an ambitious decarbonization target for the year 2035 may choose to set intermediate targets in 2025 and 2030 to specify the pathway it is going to take to get there.
- Milestones are defined as achievements in business dimensions that are not traditionally captured in climate and energy targets. For example, for an auto manufacturing company, this could equate to electric vehicles making up 20%, 40%, 60% of total output on a fixed timeline.
- Many companies may set long-term visions for 2050 and beyond on emissions as well as their business model. Adding intermediate targets and/or milestones increases the credibility of these long-term commitments by giving investors more clarity on how this vision is going to impact the short-term.

(C3.1f) Why are climate-related issues not integrated into your business objectives and strategy?

Question dependencies

This question only appears if you select “No” in response to C3.1.

Change from 2018

No change

Rationale

As a comprehensive business strategy which incorporates climate-related issues is best practice and key to successfully managing these issues, investors are keen to learn why some companies do not integrate climate change and its related effects/components into the overarching business strategy. Understanding why organizations are not in line with best practice will enable investors to evaluate those organizations’ overall approach and potential resilience to climate change.

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 disclosure platform, formatting is not retained.

Requested content

General

• Your answer should be company-specific and include:

i. Why climate-related issues are not integrated into your business strategy, and;
ii. Whether you expect them to be in the future. For example, climate change may have little effect on your business because of the nature of your goods/services. Please give as complete an explanation as possible.

Note for oil and gas sector companies:

• Companies should 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:

• Please discuss any work to incorporate renewable energy, carbon capture & sequestration, cleaner coal technologies and energy storage into their strategy.

Note for transport OEMs sector companies:

• Companies should discuss links between risks and your targets for your products at group level and, where relevant, for specific markets on fuel economy or GHG emissions reductions per unit distance (expressed as gCO2e/unit distance) and include a reference to any regulatory drivers and the baseline against which performance is measured; expansion into hybrid/fully electric vehicles and fuel cell technology.

(C3.1g) Why does your organization not use climate-related scenario analysis to inform your business strategy?

Question dependencies

This question only appears if you select “No, but we anticipate doing so in the next two years” or “No, and we do not anticipate doing so in the next two years” in response to C3.1a.

Change from 2018

No change

Rationale

Companies not using climate-related scenario analysis to inform their business strategies are not in line with recommended practices in corporate climate governance. Answers to this question will provide investors with more transparency into companies’ decision-making processes regarding climate planning and strategy setting.

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 disclosure platform, formatting is not retained.

Requested content

General

• Your answer should be company-specific and include:

i. Why climate-related scenario analysis is not used to inform your business strategy, and;
ii. Whether you expect it to be in the future.

C4 Targets and performance

Module Overview

Questions in this module focus on emission targets, additional climate-related targets, 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 adaption 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

• Additional guidance for financial services sector companies has been added for question C4.1.
• Question C-EU4.6 now only appears if you select "Electricity generation", "Gas storage transmission and distribution", "Coal mining and/or Gas extraction and production" in response to C-EU0.7.

Sector-specific content

Additional questions on targets, initiatives, and best available techniques for the following high-impact sectors:

• Agricultural commodities
• Food, beverage & tobacco
• Paper and forestry
• Coal
• Electric utilities
• Oil & gas
• Cement
• 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.

Targets

(C4.1) Did you have an emissions target that was active in the reporting year?

Change from 2018

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

TCFD

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

Response options

Select one of the following options:

• Absolute target
• Intensity target
• Both absolute and intensity targets
• 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.

Note for oil and gas

• Investors request that companies disclose targets at the group and subsidiary/divisional levels.

Note for electric utility sector companies:

• Investors request that companies disclose targets at the group level and where applicable at subsidiary/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, you should disclose your CO₂ and/or fuel economy targets for products at group level and, where relevant, for specific markets. Targets should be expressed in grams of CO₂ per kilometer.

Note for financial services sector companies:

• Consider any absolute or intensity targets related to your lending and investment portfolio (Scope 3 Investments), in addition to targets related to Scope 1, Scope 2, and other Scope 3 emissions.
• For further information please see CDP's Technical Note on Financial Services.

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” or “Both absolute and intensity targets” in response to C4.1.

Change from 2018

Minor change

Rationale

The question is aimed at encouraging best practice in target setting, such as the use of science-based targets where available.

Connection to other frameworks

TCFD

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

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Climate-related targets

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	Scope	% emissions in Scope	Targeted % reduction from base year	Base year	Start year	Base year emissions covered by target (metric tons CO2e)
Select from: Abs1-Abs100	Select from 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 using a maximum of 2 decimal places]	Numerical field [enter a number between 1900- 2019]	Numerical field [enter a number between 1900- 2019]	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

Target year	Is this a science-based target?	% of target achieved	Target status	Please explain
Numerical field [enter a whole number between 2000- 2100]	Select from drop-down options below	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Select from: New Underway Achieved Expired Revised Replaced Retired	Text field [maximum 2,400 characters]

[Add Row]

Scope drop-down options:

Select one of the following options:

• Scope 1
• Scope 2 (location-based)
• Scope 2 (market-based)
• Scope 1+2 (location-based)
• Scope 1+2 (market-based)
• Scope 1+2 (location-based) +3 (upstream)
• Scope 1+2 (location-based) +3 (downstream)
• Scope 1+2 (location-based) +3 (upstream & downstream)
• Scope 1+2 (market-based) +3 (upstream)
• Scope 1+2 (market-based) +3 (downstream)
• Scope 1+2 (market-based) +3 (upstream & downstream)
• Scope 3 (upstream)
• Scope 3 (downstream)
• Scope 3 (upstream & downstream)
• 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
• Other, please specify

Is this a science-based target? drop-down options:

Select one of the following options:

• Yes, this target has been approved as science-based by the Science-Based Targets initiative
• Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science-Based Targets initiative
• 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

Requested content

General

• 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. 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.
• 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.

Target reference number (column 1)

• Select a unique target reference from the drop-down menu provided to identify that target in subsequent questions and to track progress against this target in subsequent reporting years. For absolute targets please select from Abs1-Abs100.
• If you reported a target to CDP in 2018 and will be reporting progress against the same target in 2019, ensure you use the same Reference number from 2018 in 2019 and outline this is in the Please explain column (column 12).

Scope (column 2)

• This refers to the Scope(s) of emissions to which the target relates. Note that this does not have to comprise all emissions within a particular Scope – see % of emissions in Scope column for further information.
• If you select “Other, please specify,” provide a label for the Scope.

% emissions in Scope (column 3)

• Identify the percentage of the total measured emissions in the base year of the Scope your target applies to. When a target encompasses multiple Scopes, the percentage should be based upon the total emissions in all Scopes identified.
• E.g. if your target is to reduce Scope 1 emissions arising from your European operations, and these European operations accounted for 80% of your total Scope 1 emissions in the base year, then you should enter 80 into this column.
• E.g. your target relates to a particular business activity (e.g. production facility, office-based operations, etc.). If you have selected a Scope sub-category in the previous column (e.g. Scope 3: Business travel) you should specify the percentage of emissions in that sub-category rather than the Scope 3 as a whole.
• Note that entering a value of 100% of emissions in Scope indicates that the target covers your company’s total, global gross emissions in the base year for the Scope selected in column 2. If the target covers less than 100% of emissions in Scope, please explain what areas of your business this target applies to (e.g. geographies, business units, products, etc.) and what is not covered by this target in the space provided in the Please explain column.

Targeted % reduction from base year (column 4)

• Enter your emissions reduction targets as a percentage reduction of emissions to be achieved in the target year when compared to the base year.
• E.g. if your target is to reduce your Scope 1 emissions by 3000 metric tons CO₂e and your base year emissions were 150,000 metric tons CO₂e, you should enter 2 into this column. If your target is to cap emissions at the baseline level, you should enter 0 in this column.
• Note that this field 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.

Base year (column 5)

• The base year is the year against which you are comparing your reduction target.
• If you have a year-on-year rolling target, your base year will be the previous reporting year.
• If you have a target based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.
• If you have a target based on average emissions over a period of time (e.g. 5-year average), please enter the year that applies to the end of the average period and specify in the Please explain column.
• You cannot have a base year that is in the future.

Start year (column 6)

• The start year is the year in which your company has set the target.
• It is not possible to have a start year that is before your base year.
• It is not possible to have a start year after your target year.
• The start year must be either before or during the reporting year, but cannot be after the reporting year.
• If you have a start year based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.

Base year emissions covered by target (metric tons CO₂e) (column 7)

• Enter the base year emissions relevant to the target in this column.
• E.g. if your target is to reduce Scope 1 emissions arising from your European operations, enter the base year Scope 1 emissions for the European operations only.

Target year (column 8)

• If you have a year-on-year rolling target, your target year will be the reporting year.
• If you have a target based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.
• If you have a target based on average emissions over a period of time (e.g. 5-year average), please enter the year that applies to the end of the average period and specify in the Please explain column.

Is this a science-based target? (column 9)

• 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, see the 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, this target has been approved as science-based 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, but this target has not been approved as science-based by the Science Based Targets initiative: 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 had it approved by the SBTi, or it is currently being reviewed by the SBTi, please select this option. You should use the Please explain column to explain why you believe your target to be science-based. Do not select this option if your target has been rejected by the SBTi. 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.”
- 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 C4.2.
- No, but we anticipate setting one in the next 2 years: While not necessary, it is recommended that the company publicly state this through the Call to Action commitment to set a science-based target.
- 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.

% of target achieved (column 10)

• State the target’s percentage completion (in terms of emissions) against the base year emissions.
• For example, if your target is to reduce your Scope 1 emissions by 10% by 2017 compared with a 2010 base year, and in your reporting year your Scope 1 emissions had reduced by 3% compared to that target base year, your target is 30% complete ((3/10)*100).
• If you have met your target in the reporting year, indicate 100% complete.
• It is not possible to put values greater than 100% in this field; however if you have exceeded your target, explain in the Please explain column.
• If you set an absolute target to stabilize your greenhouse gas emissions against a base year, enter 0 (zero) until the target year. For example, a company sets an absolute target to cap emissions using a 2008 base year and a 2019 target year. For reporting years until 2019, they would enter 0 (zero) in this column, before entering 100% in 2019 if they have achieved their target. A worked example of a stabilization target is provided as an example response.

Target status (column 11)

• New - Select this 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 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 expired in the reporting year.
• Revised - Select this for the targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 8 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 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 column.

Please explain (column 12)

• If 100% of emissions in Scope are not covered in this target, explain what areas of your business this targets applies to (e.g. geographies, business units, products, etc.) and what is not covered by this target.
• If you reported a target to CDP in 2018 and are reporting progress against the same target in 2019, you can outline it in this column. If you have access to the reference number used to report the target in 2018 then outline this here.
• You can use this column to identify where you have a financial year or average year based target (see above, "Base year emissions covered by target").
• If your target was originally in a different format, you may a wish to give the original target before it was converted into a % reduction format 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.

Example response

Worked example of absolute target table

The following table shows three absolute target examples:

• A target to reduce total Scope 1 emissions by 80% in 2050 compared with the base year’s Scope 1 emissions of 830,000 metric tons CO2e (ID=Abs1);
• A target to stabilize emissions from European operations at 2007 levels by 2019 (ID Abs2);
• A target to reduce total Scope 2 emissions by 15% by 2017 compared with the base year’s Scope 2 emissions of 55,000 metric tons (ID=Abs3);

Target reference number	Scope	% of emissions in Scope	Targeted % reduction from base year	Base year	Start year
Abs 1	1	100	80	2007	2016
Abs 2	1	80	0	2007	2015
Abs 3	2 (market-based)	100	15	2010	2014

Base year emissions	Target year	Is this a science-based target?	% of target achieved	Target status	Please explain
830000	2050	Yes, and this target has been approved as science-based by the Science Based Targets initiative	5	Underway	Our organization submitted this target in April 2016. It has been successfully approved by the SBTi. By the reporting year we have achieved a reduction of 33,200 CO 2e
315000	2019	No, but we are reporting another target which is science-based	0	Underway	This is a stabilization target for our domestic vehicle fleet, which covers 80% of our total Scope 1 emissions; we aim to stabilize our emissions at 2007 levels by 2019
55000	2017	No, but we are reporting another target which is science-based	100	Expired	This was achieved through reductions in electricity consumption

Worked examples on how to convert a target to reduce energy consumption to an emissions reduction target

• Companies may have targets to reduce their energy consumption. Reducing energy consumption is likely to lead to reduced emissions and therefore this target can be converted into an emissions reduction target.
• The equivalent reductions of an energy target are set based on a consequential approach to accounting. Thus, the principles to be followed are the ones set in the GHG Project Protocol, although the rigor required is not the same.

Target for reduction of electricity consumption

• A company has an electricity consumption in the base year of the target equal to 1,205,789 MWh. In the base year the company is being supplied by the grid and is using an average grid emission factor, which we will assume equals to 0.55 metric tons CO2e per MWh.
• Therefore, the emissions in the base year from electricity consumption are (1,205,789 x 0.55) = 663,184 metric tons CO2e.
• The company has set a target of 20% reduction in electricity consumption for the next 10 years.
• Assuming that the emissions factor remains the same in the target year, a 20% reduction in electricity consumption will result in a 20% reduction in emissions.
• Therefore, electricity consumption emissions in the target year are (663,184-(663,184*(20/100))) =530,547 metric tons CO2e.
• Please note that the fundamental assumption here is that the grid emissions factor remains the same. In most cases this is very unlikely to happen, however, for the purposes of responding to this question and the rigor involved, it can be an acceptable assumption. This would be more related to a location-based Scope 2 figure.
• From a market-based Scope 2 perspective this target could also be achieved not by reducing consumption of electricity but by purchasing renewable energy. The target would be the same even though the ways to achieve it would be different, although would be reported differently. Because each option has its own consequences, it is important to distinguish how it is proposed to achieve the target.
• Please also note that if in the base year the company is already accounting for a certain amount of its electricity consumption as low emission electricity, then following the same principle of using the conditions of the base year of the target, that amount also needs to be reflected for the purpose of the calculation of the emissions reductions.
• Thus, if 50% of the electricity was renewable electricity with a 0 t/CO2e emission factor, the emissions in the base year would be:
• There are two ways of calculating the emissions reductions in the target year then. One assuming that the % of RE will stay the same; another assuming that the amount of RE purchased will stay the same.
• In the first case, the corresponding expected emissions in the target year would be:
• As in the past example, the assumption is that the “average grid factor” of the electricity contracted by the company stays the same.
• In the second case, the corresponding expected emissions in the target year would be:
• Please be aware that in this example a commitment is made to maintain the same purchase amounts of RE power through the entire period of the target.

Additional information

Science-based targets

• The world is on a trajectory leading to a 4°C temperature increase above pre-industrial levels, which will have adverse effects on the planet. Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and even pursue efforts to limit warming to under 1.5°C. However, there is a yawning gap between the level of ambition of the country 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 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 disaggregate the remaining global carbon budget and assign companies their fair share of emissions reductions. 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 2019 climate change scoring methodology for information on best practices in target setting 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. Targets submitted to the SBTi for an official evaluation by the April 15 2019 deadline (to be confirmed), with all information needed to assess the target, will be used for scoring in CDP’s 2019 climate 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.

(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” or “Both absolute and intensity target” in response to C4.1.

Change from 2018

Minor change

Rationale

The question is aimed at encouraging best practice in target setting, such as the use of science-based targets where available.

Connection to other frameworks

TCFD

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

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Climate-related targets

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	Scope	% emissions in Scope	Targeted % reduction from base year	Metric	Base year	Start year
Select from: Int1-Int100	Select from 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 using a maximum of 2 decimal places]	Select from drop-down options below	Numerical field [enter a whole number between 1900- 2019]	Numerical field [enter a whole number between 1900- 2019]

Normalized base year emissions covered by target (metric tons CO2e)	Target year	Is this a science-based target?	% of target achieved	Target status	Please explain	% change anticipated in absolute Scope 1+2 emissions	% change anticipated in absolute Scope 3 emissions
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 whole number between 2000- 2100]	Select from drop-down options below	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Select from: New Underway Achieved Expired Revised Replaced Retired	Text field [maximum 2,400 characters]	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]

[Add Row]

Scope drop-down (column 2)

Select one of the following options:

Scope 1 Scope 2 (location-based) Scope 2 (market-based) Scope 1+2 (location-based) Scope 1+2 (market-based) Scope 1+2 (location-based) +3 (upstream) Scope 1+2 (location-based) +3 (downstream) Scope 1+2 (location-based) +3 (upstream & downstream) Scope 1+2 (market-based) +3 (upstream) Scope 1+2 (market-based) +3 (downstream) Scope 1+2 (market-based) +3 (upstream & downstream) Scope 3 (upstream) Scope 3 (downstream) Scope 3 (upstream & downstream) 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 Other, please specify

Metric drop-down options (column 5)

Select one of the following options from the drop-down menu below. Those with an asterisk (*) are the metrics that can be evaluated against science-based target setting methods (see Technical Note on Science-Based Targets):

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 (column 10)

Select one of the following options:

Yes, this target has been approved as science-based by the Science Based Targets initiative Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science Based Targets initiative

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

Requested content

General

• 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. 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.
• 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 make clear whether it is an upstream or downstream source.

Target reference number (column 1)

• Select a unique ID in this field from the drop-down menu provided to identify that target in subsequent questions. For intensity targets please select from Int1-Int100.

Scope (column 2)

• This refers to the Scope(s) of emissions to which the target relates. Note that this does not have to comprise all emissions within a particular Scope – see % of emissions in Scope column for further information.
• If you select “Other, please specify,” provide a label for the Scope.

% emissions in Scope (column 3)

• Identify the percentage of the total measured emissions in the base year of the Scope your target applies to. When a target encompasses multiple Scopes, the percentage should be based upon the total emissions in all Scopes identified.
• E.g. if your target is to reduce Scope 1 emissions arising from your European operations, and these European operations accounted for 80% of your total Scope 1 emissions in the base year, then you should enter 80 into this column.
• E.g. your target relates to a particular business activity (e.g. production facility, office-based operations, etc.). If you have selected a Scope sub-category in the previous column (e.g. Scope 3: Business travel) you should specify the percentage of emissions in that sub-category rather than the Scope 3 as a whole.
• Note that entering a value of 100% of emissions in Scope indicates that the target covers your company’s total, global gross emissions in the base year for the Scope selected in column 2. If the target covers less than 100% of emissions in Scope, please explain what areas of your business this target applies to (e.g. geographies, business units, products, etc.) and what is not covered by this target in the space provided in the Please explain column.

Targeted % reduction from base year (column 4)

• Enter your emissions reduction targets as a percentage reduction of the intensity (normalized) emissions to be achieved in the target year compared with the base year.
• For example, if your target is to reduce your Scope 1 emissions per full time equivalent (FTE) employee to 7 metric tons CO₂e per FTE employee and your base year emissions were 9 metric tons per FTE employee, you should enter 22 into this column (i.e. ((9-7)/9)=0.22; then multiply by 100 for percentage value).

Metric (column 5)

• 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 options above.

Base year (column 6)

• The base year is the year against which you are comparing your reduction target.
• If you have a year-on-year rolling target, your base year will be the previous reporting year.
• If you have a target based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.
• If you have a target based on average emissions over a period of time (e.g. 5-year average), please enter the year that applies to the end of the average period and specify in the Please explain column.
• You cannot have a base year that is in the future.

Start year (column 7)

• The start year is the year in which your company has set the target.
• It is not possible to have a start year that is before your base year.
• It is not possible to have a start year after your target year.
• The start year must be either before or during the reporting year, but cannot be after the reporting year.
• If you have a start year based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.

Normalized base year emissions covered by target (metric tons CO₂e) (column 8)

• Enter the intensity (normalized) base year emissions relevant to the target in this column.
• Note that you should enter the intensity (normalized) base year emissions relevant to the target (i.e. total emissions divided by the intensity denominator), not the total Scope emissions.
• For example, if your target is to reduce emissions per FTE employee by 30%, using 2010 as your base year and 2016 as your target year, first calculate what your emissions were per FTE in 2010 (in this example 10 metric tons CO₂e) and enter this figure in the field. Your target in 2016 would be 7 metric tons CO₂e.

Target year (column 9)

• If you have a year-on-year rolling target, your target year will be the reporting year.
• If you have a target based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.
• If you have a target based on average emissions over a period of time (e.g. 5-year average), please enter the year that applies to the end of the average period and specify in the Please explain column.

Is this a science-based target (column 10)

• 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, see the 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, this target has been approved as science-based 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, but this target has not been approved as science-based by the Science Based Targets initiative: 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 had it approved by the SBTi, or it is currently being reviewed by the SBTi, please select this option. You should use the Please explain column to explain why you believe your target to be science-based. Do not select this option if your target has been rejected by the SBTi. 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.”
- 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 C4.2.
- No, but we anticipate setting one in the next 2 years: While not necessary, it is recommended that the company publicly state this through the Call to Action commitment to set a science-based target.
- 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.

% of target achieved (column 11)

• State the target’s percentage completion (in terms of emissions) against the base year emissions.
• For example, if your target is to reduce your Scope 1 emissions by 10% by 2017 compared with a 2010 base year, and in your reporting year your Scope 1 emissions had reduced by 3% compared to that target base year, your target is 30% complete ((3/10)*100).
• If you have met your target in the reporting year, indicate 100% complete.
• It is not possible to put values greater than 100% in this field; however if you have exceeded your target, explain in the Please explain column.
• If you set an intensity target to stabilize your greenhouse gas emissions against a base year, enter 0 (zero) until the target year. For example, a company sets an intensity target to cap emissions per unit of production using a 2008 base year and a 2020 target year. For reporting years until 2020, they would enter 0 (zero) in this column, before entering 100% in 2020 if they have achieved their target.

Target status (column 12)

• New - Select this 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 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 expired in the reporting year.
• Revised - Select this for the targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 9 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 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 column.

Please explain (column 13)

• If 100% of emissions in Scope are not covered in this target, explain what areas of your business this targets applies to (e.g. geographies, business units, products, etc.) and what is not covered by this target.
• If you reported a target to CDP in 2018 and are reporting progress against the same target in 2019, you can outline it in this column. If you have access to the reference number used to report the target in 2018 then outline this here.
• You can use this column to identify where you have a financial year or average year based target (see above, "Base year emissions covered by target").
• If your target was originally in a different format, you may a wish to give the original target before it was converted into a % reduction format 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.

% change anticipated in absolute Scope 1+2 emissions (column 14)

• Complete this column if your target relates to Scope 1 and/or 2 emissions. If your target does not include Scope 1+2 emissions, enter 0 (zero) in this column.
• This column asks for the percentage change in absolute emissions expected, based on the calculations described in the previous column. This column accepts numeric values up to 999, allowing up to two decimal places. This should reflect the percentage change of the total measured emissions within the Scope category chosen for the target (i.e. column 2 of table C4.1b).

% change anticipated in absolute Scope 3 emissions (column 15)

• 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.
• This column asks for the percentage change in absolute emissions expected, based on the calculations described in column 13 'Please explain'. This column accepts numeric values up to 999, allowing up to two decimal places. This should reflect the percentage change of the total measured emissions within the scope category chosen for the target (i.e. column 2 of table C4.1b).

Additional information

Science-based targets

• The world is on a trajectory leading to a 4°C temperature increase above pre-industrial levels, which will have adverse effects on the planet. Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and even pursue efforts to limit warming to under 1.5°C. However, there is a yawning gap between the level of ambition of the country 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 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 disaggregate the remaining global carbon budget and assign companies their fair share of emissions reductions. 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 2019 climate change scoring methodology for information on best practices in target setting 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. Targets submitted to the SBTi for an official evaluation by the April 15 2019 deadline (to be confirmed), with all information needed to assess the target, will be used for scoring in CDP’s 2019 climate 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.

(C4.1c) Explain why you do 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 2018

Modified guidance

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]	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%).
- 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.

Other climate-related targets

(C4.2) Provide details of other key climate-related targets not already reported in question C4.1/a/b.

Change from 2018

Minor 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. This question increases transparency of corporate environmental commitments.

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

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Climate-related targets

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	KPI – Metric numerator	KPI – Metric denominator (intensity targets only)	Base year	Start year	Target year
Select from: Energy productivity Renewable electricity consumption Renewable electricity production Renewable energy target including electricity, heat, steam and cooling Renewable fuel Waste Zero/low-carbon vehicle Energy usage Land use Methane reduction target Engagement with suppliers R&D investments Other, please specify	Text field [maximum 200 characters]	Text field [maximum 200 characters]	Numerical field [enter a number between 1900- 2019]	Numerical field [enter a number between 1900- 2019]	Numerical field [enter a whole number between 2000- 2100]

KPI in baseline year	KPI in target year	% achieved in reporting year	Target Status	Please explain	Part of emissions target	Is this target part of an overarching initiative?
Numerical field [enter a number from 0 to 999,999,999,999 using up to 10 decimal places and no commas	Numerical field [enter a number from 0 to 999,999,999,999 using up to 10 decimal places and no commas	Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]	Select from: New Underway Achieved Expired Revised Replaced Retired	Text field [maximum 2,400 characters]	Text field [maximum 2,400 characters] [emissions reduction target ID]	Select from: RE100 EP100 EV100 Below50 – sustainable fuels Science-based targets initiative Reduce short-lived climate pollutants Remove deforestation Low-Carbon Technology Partnerships initiative No, it's not part of an overarching initiative Other, please specify

[Add Row]

Requested content

KPI – Metric numerator (column 2)

• Specify the metric numerator of your climate-related target

KPI – Metric denominator (intensity targets only) (column 3)

• Specify the metric denomiator of your climate-related intensity target. If this is not an intensity target, leave blank. Common examples include:

- per revenue passenger kilometer
- per USD($) value-added
- per square meter
- per metric ton of aluminum
- per metric ton of steel
- per metric ton of cement
- per metric ton of cardboard
- per kilometer
- per unit revenue
- per unit FTE employee
- per unit hour worked
- per metric ton of product
- per liter of product
- per unit of production
- per unit of service provided
- per square foot
- per kilometer
- per passenger kilometer
- per megawatt hour (MWh)
- per barrel of oil equivalent (BOE)
- per vehicle produced
- per metric ton of ore processed
- per ounce of gold
- per ounce of platinum
- per metric ton of aggregate
- per billion (currency) funds under management

Base year (column 4)

• The base year is the year against which you are comparing your reduction target.
• If you have a year-on-year rolling target, your base year will be the previous reporting year.
• If you have a target based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.
• If you have a target based on average emissions over a period of time (e.g. 5-year average), please enter the year that applies to the end of the average period and specify in the Please explain column.
• You cannot have a base year that is in the future.

Start year (column 5)

• The start year is the year in which your company has set the target.
• It is not possible to have a start year that is before your base year.
• It is not possible to have a start year after your target year.
• The start year must be either before or during the reporting year, but cannot be after the reporting year.

Target year (column 6)

• If you have a year-on-year rolling target, your target year will be the reporting year.
• If you have a target based on financial years, please enter the year that applies to the end of your financial year and specify in the Please explain column.
• If you have a target based on average emissions over a period of time (e.g. 5-year average), please enter the year that applies to the end of the average period and specify in the Please explain column.

KPI in baseline year (column 7)

• Enter the base year value of your climate-related target.

KPI in target year (column 8)

• Enter the target year value of your climate-related target.

% achieved in reporting year (column 9)

• State the target’s percentage completion against the base year.
• E.g. if your target is to reduce your Scope 1 emissions by 10% by 2017 compared with a 2010 base year, and in your reporting year your Scope 1 emissions had reduced by 3% compared to that target base year, your target is 30% complete ((3/10)*100).
• If you have met your target in the reporting year, indicate 100% complete.
• It is not possible to put values greater than 100% in this field; however if you have exceeded your target, explain in the Please explain column.

Target status (column 10)

• New - Select this 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 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 expired in the reporting year.
• Revised - Select this for the targets that were set before the reporting year but a revision has been made in the reporting year, for example due to a change to the target year.
• Replaced - Select this 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 column.

Please explain (column 11)

• Explain what areas of your business this target applies to (e.g. geographies, business units, products, etc.) and what is not covered by this target.
• 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.

Part of emissions target (column 12)

• If the climate-related target is part of an emissions reduction target, please enter the emissions reduction target reference number here.

Is this target part of an overarching initiative? (column 13)

• If the climate-related target is part of an overarching initaive please select the initative or select "Other, please specify" to outline the overarching initiative.
• If you select “Other, please specify,” provide a label for the "Is this target part of an overarching initiative?"

Note for oil and gas and coal sector:

• If you have a methane-specific emissions reduction target that is not detailed as a separate target in C4.1/a/b, please provide those details here by selecting "Methane reduction target" (column 1).
• If methane emissions were incorporated into targets reported in C4.1/a/b (but not detailed as a separate target), please select "Methane reduction target" (column 1) and indicate which target reference number(s) (from column 1 in C4.1/a/b) incorporate methane emissions (column 10) and specify the portion of those targets that is comprised of methane in the "Please explain" field (column 9).
• If you engage in oil and gas or coal mining activities and do not provide a methane-specific emissions reduction target in this question you will receive a follow up question (C-CO4.2a/ C-OG4.2a) requesting information on why you do not have a methane-specific emissions reduction target or incorporate methane into your target(s) reported in C4.2, 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 the follow up question.

Explanation of terms

• KPI: Key Performance Indicator (KPI) is a quantifiable measure used to evaluate success.

(C-OG4.2a) If you do not have a methane-specific emissions reduction target for your oil and gas activities or do not incorporate methane into your target(s) reported in C4.2 please explain why not and forecast how your methane emissions will change over the next five years.

Question dependencies

This question only requires a response if no methane emissions reduction targets are reported in C4.2

Change from 2018

Minor change

Rationale

Methane emissions from the oil and gas sector are increasingly viewed as a financial, regulatory, and reputational issue for companies. Investors are therefore interested in increasing the transparency of methane reduction efforts. This can be achieved by organizations reporting the methane targets they have in place and how they forecast that their methane emissions will change.

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 disclosure platform, formatting is not retained.

Requested content

General

• If your organization does not have a methane-specific emissions reduction target for oil and gas activities, you are requested to provide a company specific description regarding why not here. If you have reported a methane-specific emissions reduction target for oil and gas activities in question C4.2, then you can leave this question blank.
• Provide information on how you forecast your methane emissions will change over the next five years.

Note for methane targets already reported in C4.1a/C4.1b

• If you have incorporated methane emissions into emissions reduction targets reported in question C4.1a/C4.1b you are requested to provide details regarding this here.
• If methane emissions were incorporated into absolute or intensity targets reported in C4.1a/C4.1b (but not detailed as a separate target,) please indicate which target reference number (i.e. Abs1, Int1 etc.) incorporate methane emissions, and specify the percentage or total metric tons CO₂e that methane emissions comprise.

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 2018

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:

• Yes
• No

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 question C4.1.

(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 2018

Minor 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 2018

Minor change

Rationale

CDP data users are interested in understanding how you are making progress towards your emissions reductions 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

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 type	Description of initiative	Estimated annual CO2e savings (metric tons CO2e)	Scope	Voluntary/ Mandatory
Select from: Energy efficiency: Building fabric Energy efficiency: Building services Energy efficiency: Processes Fugitive emissions reductions Low-carbon energy purchase Low-carbon energy installation Process emissions reductions Other, please specify	Select from drop-down options below	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	Select from: Scope 1 Scope 2 (location-based) Scope 2 (market-based) Scope 3	Select from: 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
Numerical field [enter a number from 0-999,999,999,999,999 using no decimal places, and no commas]	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]

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Description of initiative drop-down options (column 2)

Select one of the following options:

Energy efficiency:Building fabric Insulation Maintenance program Other, please specify Energy efficiency:Building services Building controls HVAC Lighting Motors and drives Combined heat and power Other, please specify Energy efficiency:Processes Heat recovery Cooling technology Refrigeration Process optimization Fuel switch Compressed air Combined heat and power Waste water treatment Water reuse Reuse of steam Machine replacement Waste recovery Other, please specify Fugitive emissions reductions Agriculture methane capture Agriculture N2O reductions, Landfill methane capture, Oil/natural gas methane leak capture/prevention Refrigerant leakage reduction Other, please specify

Low-carbon energy purchase Biomass Biogas Fuel Cells Geothermal Hydro Solar Hot Water Solar PV Solar CPV Nuclear Wind Other, please specify Low-carbon energy installation Biomass Biogas Carbon Capture & Storage Fuel Cells Geothermal Hydro Solar Hot Water Solar PV Solar CPV Natural Gas Wind Other, please specify Process emissions reductions New equipment Product design Changes in operations Behavioral change Process materials selection Process water 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 activities, 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 type (column 1)

• Select from one of the following options. Please note that these are broad categories only, with more detailed options provided in the "Description of initiative" column.

- Energy efficiency: Building fabric - Also referred to as building shell or building envelope, e.g. insulation, maintenance program.
- Energy efficiency: Building services - E.g. building controls, HVAC, lighting, motors and drives, combined heat and power, etc.
- Energy efficiency: Processes - E.g. heat recovery, refrigeration, process optimization, fuel switch, compressed air, combined heat and power, waste water treatment, process water, machine replacement etc.
- Fugitive emissions reductions - E.g. agriculture methane capture, agriculture N₂O reductions, landfill methane capture, oil/natural gas methane leak capture/prevention, refrigerant leakage reduction, etc.
- Low-carbon energy purchase - E.g. biomass, fuel cells, geothermal, hydro, solar, solar hot water, biogas, etc. If low carbon energy purchases have been a component of your emissions reduction activities please also report the other accompanying information in C6.2,C6.3, C7.5 and C8.2f and read the information provided in the worked example of green power accounting.
- Low-carbon energy installation - This includes installation of clean energy generating facilities at your own site or at others on behalf of your clients.
- Process emissions reductions - Initiatives to reduce process emissions from manufacturing, e.g. new equipment, changes in operations, process materials selection, etc. Process emissions are emissions from physical or chemical processes such as CO₂ from the calcinations step in cement manufacturing, CO₂ from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.
- Other, please specify – If you select “Other, please specify,” provide a label for the Activity type.

Description of initiative (column 2)

• Use this column to select from the drop-down options provided the initiative you have undertaken.
• If you select “Other, please specify,” provide a label for the Description of initiative type.

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. Please enter a number of no more than 99999999999 and up to 2 decimal places.
• Where savings occur on a non-annual basis, please average them out so that an annual figure can be provided.
• Where the initiative has not been in place for the entire reporting period, please estimate and report the emissions that would be saved in a 12 month period, so that an annual figure is provided.

Scope (column 4)

• Select the Scope where the largest share of estimated emission savings occurs. If the initiative covers multiple Scopes, state the additional Scopes in the “Comment” column.
• If you select Scope 3, specify the Scope 3 category(-ies) in the “Comment” column.

Voluntary/Mandatory (column 5)

• Select one of the following options:

- Voluntary
- Mandatory

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 question C0.4 in the Introduction page and should be entered in full and without commas (e.g. one million should be entered as 1000000). Where savings occur on a non-annual basis, please average out so that an annual figure can be provided. Values can be entered up to 999999999999999 with no decimal places.

Investment required (unit currency, as specified in CC0.4) (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 in the Introduction page and should be entered in full and without commas (e.g. one million should be entered as 1000000). Values can be entered up to 999999999999999 with no decimal places.

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 activities for each activity type, please select the median to answer this column.

Note for electric utility sector companies:

• For electric utilities, activities to reduce emissions/energy use 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, e.g.:

- Adoption of low impact agriculture/forestry practices
- Increased efficiency of water and energy use during manufacturing
- Reduced fleet use of fossil fuels or increased use of renewable fuels in transportation

Example response

Worked examples of emissions reduction activities

Example 1: Reporting an emissions reduction activity that was implemented in the reporting year

Example 1

Activity type	Description of activity	Estimated annual CO2e savings (metric tons CO2e)	Scope	Voluntary/ Mandatory
Energy efficiency: Building services	Compressed air	10,000	Scope 2 (location-based)	Voluntary

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
1,000,000	5,000,000	4-10 years	11-15 years	Implemented 35 individual projects focused on improving energy efficiency across production locations in Europe and North America and Asia Pacific. The individual project lifetimes range from a couple of years, through to more than 30 years. Therefore, the median was used to calculate this column.

Example 2

Activity type	Description of activity	Estimated annual CO2e savings (metric tons CO2e)	Scope	Voluntary/ Mandatory
Low-carbon energy installation	Solar PV	262	Scope 2 (location-based)	Voluntary

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
40,000	700,000	16-20 years	>30 years	Installation of photovoltaic power generation in our facilities in Eastern Africa. This installation is part of a wider project to implement low carbon installation across 80% of our facilities. There are pre-existing low carbon installations in our European facilities.

Example 3

Activity type	Description of activity	Estimated annual CO2e savings (metric tons CO2e)	Scope	Voluntary/Mandatory
Low-carbon energy purchase	Hydro	1,100	Scope 2 (market-based)	Voluntary

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
No payback	4,000	[blank]	<1 year	Our company has purchased RECs since 2014. RECs purchases now represent two thirds of our annual energy consumption.

(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 2018

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

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 activities 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 activities.

Comment (column 2)

• 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, 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 9.5MtCO2 can 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 2018

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 disclosure platform, 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 pursue emissions reduction initiatives in the future, estimate a timeframe of when you will begin to implement them.
• If you do not have active emissions reduction initiatives in the reporting year because you have not identified any, provide more information regarding your process for identifying potential initiatives and a specific example of an area of activities that were investigated but did not result in potential initiatives and why these investigated activities 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

Low-carbon products

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party to avoid GHG emissions?

Change from 2018

No change

Rationale

This question provides valuable information to investors who are seeking to increase their investment in companies providing low-carbon and climate resilient goods and services.

Connection to other frameworks

SDG

Goal 13: Climate action

Response options

Select one of the following options:

• Yes
• No

Requested content

General

• There are various circumstances in which a company might consider that the use of its goods and services by others has the potential to reduce GHG emissions.
• For example, an insulation company might consider that the installation of its insulation in another organization’s premises might reduce the consumption of gas to heat the building, with the consequent reduction of GHG emissions from the property. Similarly, a consultancy providing advice services on energy efficiency/emissions reductions or a manufacturer producing a product with lower energy use requirements compared with equivalent products on the market could also consider themselves to reduce the GHG emissions of others.
• Note that a company generating renewable electricity and selling it to a third party would be an example of this. In this case, the third party would calculate their Scope 2 market-based emissions with a zero emissions factor and, providing that the grid average factor is not zero, this would enable that third party to avoid emissions.

Additional information

Low-carbon products

Why is CDP asking about low-carbon products?

• As the pressing need for reducing greenhouse gas emissions continues, investors are looking at different mechanisms to reduce the carbon intensity of their investments. In response to this, investors are signing up to the “Global Investor Statement on Climate Change”, which sets out the contribution that investors can make to increasing low-carbon and climate resilient investments. One way in which investors can take action is through the Low Carbon Investment (LCI) Registry, which is a publicly accessed online database of low-carbon and clean energy investments globally. In addition, legislative developments in certain jurisdictions are also accelerating the need for investors to show evidence that they are driving a transition towards a low-carbon economy.
• One of the challenges facing investors calculating their investments in companies which have low-carbon products is that there is no singular database in which companies can register their low carbon products or the percentage of their revenue generated through low carbon products. CDP has expanded its focus of C4.5 beyond avoided emissions to include low carbon products to address this vacuum, providing valuable information to investors who are seeking to increase the proportion of their portfolio invested in low carbon products.

How do you define a low-carbon product?

• Despite the increasing focus from investors on low-carbon products, there remains a level of ambiguity over the definition of what constitutes a ‘low-carbon product’. Instead there has been a greater focus on the benefits of their creation and use, one of which is aiding in the transition towards a low-carbon economy operating within the limits set out by leading climate scientists to ensure that global average temperature increase above pre-industrial level stays below 2°C.
• Taxonomies, such as the Climate Bonds Taxonomy, similarly function within this scientific parameter. At this stage, CDP encourages companies to use this parameter when evaluating whether a product is low carbon or not. Therefore, while CDP encourages the development of common definitions across global markets about what constitutes a ‘low-carbon product’, companies should evaluate their low-carbon products in relation to their contribution to a low-carbon economy. Different goods and services will have pertinent characteristics in which they can do this. This can include improving the energy efficiency of certain technologies so that they are consistent with avoiding dangerous climate change or contribute to the adaptation side of dangerous climate change, among others.
• While CDP does not want to constrict the definition of low-carbon products, they can be loosely defined as a product with low embedded emissions, while avoided emissions refers to a product/service that allows a third party to avoid emissions.

More information

• Low Carbon Investment Registry: This is a database of low carbon and emissions reducing investments made by institutional investors.
• Low Carbon Registry Climate Bonds Initiative (CBI): This is a taxonomy of eligible goods and services have been defined as meeting the requirements of low carbon.
• Investor Statement on Climate Change: Initiative by institutional investors to accelerate action on climate change.

(C4.5a) Provide details of your products and/or services that you classify as low-carbon products or that enable a third party to avoid GHG emissions.

Question dependencies

This question only appears if you select “Yes” in response to C4.5.

Change from 2018

No change

Rationale

This question provides valuable information to investors who are seeking to increase their investment in companies providing low-carbon and climate resilient goods and services.

Connection to other frameworks

SDG

Goal 12: Responsible consumption and production

Goal 13: Climate action

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Products

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.

Level of aggregation	Description of product/ Group of products	Are these low-carbon product(s) or do they enable avoided emissions?	Taxonomy, project, or methodology used to classify product(s) as low-carbon or to calculate avoided emissions	% revenue from low-carbon product(s) in the reporting year	Comment
Select from: Product Group of products Company-wide	Text field [maximum 2,400 characters]	Select from: Low-carbon product Avoided emissions Low-carbon product and avoided emissions	Select from: Low-Carbon Investment (LCI) Registry Taxonomy Climate Bonds Taxonomy Addressing the Avoided Emissions Challenge- Chemicals sector Evaluating the carbon reducing impacts of ICT 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]

[Add Row]

Requested content

Level of aggregation (column 1)

• Select from the drop-down menu what level of aggregation you wish to report on in this row. For example, you may only produce one product that can be classified as ‘low carbon.’ In this case you may want to report at the product level of aggregation. Alternatively, if your company produces hundreds of low carbon products, you may wish to report at a company-wide level. Please note that you can add multiple rows to this table and report different levels of aggregation. For each row, please select the level of aggregation that is most appropriate to your stakeholders.

Description of product/ Group of products (column 2)

• Use this column to describe the product/s that you are disclosing in this row.

Are these low-carbon product(s) or do they enable avoided emissions? (column 3)

• Select from the drop-down options whether you are reporting on low carbon products and/or avoided emissions in this row. Often a product is either a low carbon product or allows a third party to avoid emissions. However, in some cases a product has the potential to be both a low carbon product and allow a third party to avoid emissions. In this case, please select the option ‘Low carbon product and avoided emissions.’ Please note that you should only select this option if the product/service fits into both classifications.

Taxonomy, project or methodology used to classify product/s as low carbon or to calculate avoided emissions (column 4)

• As investors seek to increase the proportion of their portfolio invested in low carbon products there is an effort to establish standardized methodologies. As for avoided emissions, methodologies to calculate avoided emissions are still in the infancy of their development. In the future CDP will refine the list of methodologies to best reflect those that are considered best practice.
• If you select “Other, please specify,” provide a label for the “Taxonomy, project or methodology used to classify product/s as low carbon or to calculate avoided emissions”.

% revenue from low carbon product(s) in the reporting year (column 5)

• State the proportion of your revenue during the reporting year from your products that you classify as low-carbon products or that enable a third party to avoid GHG emissions. Revenue is defined as sales, net of taxes.

Comment (column 6)

• You can use this text field to enter any other information that you consider relevant. This could include how you expect to change your investments in low carbon products, the estimated emissions savings from avoided emissions, or how you expect to meet stakeholder expectations.

Example response

Worked example of low-carbon products and products that allow third parties to avoid GHG emissions

There is a distinction between products that are low-carbon and products that allow third parties to avoid GHG emissions. While a product/service is often classified as either a low-carbon product or avoided emissions, they are not mutually exclusive concepts and, in some cases, maybe classified in both, although this is far more uncommon and it is most likely that your product/service will fall into one category. Please use the following examples to determine which category your products/services would fall into.

Example 1: Reporting a product that can be classified as a low-carbon product. Company A is a paper production company. It has a range of products that can be classified as low-carbon as these products have less carbon embedded in them.

Level of aggregation	Description of product/Group of products	Are these low-carbon product(s) or do they enable avoided emissions?	Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions	% revenue from low-carbon product(s) in the reporting year	Comment
Group of products	We have manufactured/sold printing paper and packaging materials that consist of 50% recycled material. These products can be classified as low-carbon products because manufacturing of them requires less raw materials and therefore very little emissions are embedded in the products.	Low-carbon product	Climate Bonds Taxonomy	30	30% of revenue is an estimate based on the ratio of recycled materials to raw materials used in our products.

Example 2: Reporting a product that can be classified as a product that allows a third party to avoid GHG emissions. Company B is an automotive manufacturer. Its innovative energy-saving technologies, such as hybrid vehicles, are available throughout its product portfolio, allowing customers to select energy efficient models.

Level of aggregation	Description of product/ Group of products	Are these low-carbon product(s) or do they enable avoided emissions?	Taxonomy, project or methodology used to classify product/s as low-carbon or to calculate avoided emissions	% revenue from low-carbon product/s in the reporting year	Comment
Company-wide	Our company has a wide range of eco-efficient automobiles available. We also have a wide variety of energy-saving technologies, such as light-weight construction and low-rolling resistance tires. We also offer a range of products that run on alternative-energy.	Avoided Emissions	Other: ISO 14040, life cycle assessment	80	Since 2009, our company has been calculating the carbon footprint of new vehicles associated with their production, use and disposal/ recycling, expressed in CO2-equivalent. The data is then used to achieve further reductions in the carbon footprint in all relevant vehicle models. We invested $50 million in 2017 into research and development of energy-saving technologies.

Methane reduction efforts

(C-OG4.6) Describe your organization’s efforts to reduce methane emissions from your activities.

Change from 2018

Minor change

Rationale

Methane emissions represent significant direct emissions from oil and gas activities. Disclosing relevant information relating to your organization’s efforts to reduce methane emissions from your oil and gas activities can reduce the financial and reputational risk facing investors. Investors and other data users are interested in learning about methane reduction projects and collaborative initiatives.

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 disclosure platform, formatting is not retained.

Requested content

General

• If methane emissions are relevant to your organization’s operations, then provide a company specific description of your organizations efforts to reduce methane emissions from your oil and gas activities, including:

Methane reduction projects

• Describe examples of the efforts your organization is taking to reduce its methane emissions, referring to any relevant emissions reduction activities you may have reported elsewhere in your CDP response.

Collaborative initiatives to reduce methane emissions through mandatory and voluntary reduction programs

• Please name any methane emissions reduction program(s) your organization participates in, and describe any focus areas or objectives, as well as any outcomes and achievements of your organization's participation.
• Please also describe how the program relates to your organization's overall strategy for managing methane. Examples of voluntary methane emissions reduction programs include:

- The Climate & Clean Air Coalition (CCAC) Oil & Gas Methane Partnership.
- The Global Methane Initiative (GMI).
- US EPA Natural Gas STAR Program.
- US EPA Coalbed Methane Outreach Program.
- Our Nation’s Energy (One) Future Coalition.

• Please indicate where more information on your participation is available for interested parties to access.
• You will be able to provide information on your specific maintenance activities, e.g. leak detection and repair, in question C-OG4.7.
• If methane emissions are not relevant to your operations, please describe why not.

Leak detection and repair

(C-OG4.7) Does your organization conduct leak detection and repair (LDAR) or use other methods to find and fix fugitive methane emissions from oil and gas production activities?

Change from 2018

No change

Rationale

Investors are interested to understand how companies approach methane leak detection and repair (LDAR) or other methane leak detection methods, in order to gauge how effectively methane emissions are being reduced.

Response option

Select one of the following options:

• Yes
• No, we do not have a program in place
• No, this is not relevant to our operations

(C-OG4.7a) Describe the protocol through which methane leak detection and repair or other leak detection methods, are conducted for oil and gas production activities, including predominant frequency of inspections, estimates of assets covered, and methodologies employed.

Question dependencies

This question only appears if you select “Yes” in response to C-OG4.7.

Change from 2018

No change

Rationale

Investors are interested to understand how companies approach methane leak detection and repair (LDAR) or other methane leak detection methods, in order to gauge how effectively methane emissions are being reduced.

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 disclosure platform, formatting is not retained.

Requested content

General

• Please describe, providing a company specific description and using examples, the frequency, the methodology, and the scope of your LDAR programs or other methane leak detection methods you employ:

- Frequency refers to how often a company observes its assets for leaks (e.g. monthly, quarterly, annually).
- Methodology is the process that the company uses to detect methane leaks, for example:

- Optimal gas imaging (OGI) cameras
- Handheld “sniffer” gas detectors
- Infrared thermal imaging (FLIR) camera
- Drone-based monitors
- Predictive analytics
- Audio, Visual, Olfactory (AVO) inspections
- US EPA’s Method 21
- Colorado Regulation 7
- Canadian Council of Ministers of Environment (CCME) Environmental Code of Practice for Measurement and Control of Fugitive VOC Emissions from Equipment Leaks (Oct 1993)
- Canadian Association of Petroleum Producers (CAPP) Best Management Practice:
- Management of Fugitive Emissions at Upstream Oil and Gas Facilities
- EU Commission IPPC Directive (2008/1/EC) and Industrial Emissions Directive (IED, 2010/75/EU)

- Scope is the percentage of the company’s assets that are inspected under an LDAR or other methane leak detection program.

• If your organization can, then please explain:

- What is the incidence rate of leaks?
- What are the main causes of leaks?
- How quickly are the leaks fixed?

• For more information and recommendations for oil and gas operators on how they can improve the state of methane disclosure please see the Environmental Defense Fund’s report Rising Risk: Improving Methane Disclosure in the Oil and Gas Industry, and the follow-up report Disclosure Divide.

(C-OG4.7b) Explain why you do not conduct LDAR or use other methods to find and fix fugitive methane emissions, and whether you have a plan to do so from your oil and gas production activities.

Question dependencies

This question only appears if you select “No, we do not have a program in place” or “No, this is not relevant to our operations” in response to C-OG4.7.

Change from 2018

No change

Rationale

It may be the case that an organization with oil and gas production activities does not have a program in place to reduce methane emissions using LDAR. This question is developed to provide investors with information on why organizations with oil and gas activities do not have an LDAR program in place.

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 disclosure platform, formatting is not retained.

Requested content

General

• If methane emissions are not relevant to your organization’s operations, please explain why not here.
• If methane emissions are relevant, please provide a company specific description of why you do not conduct LDAR (or other methods) to find and fix fugitive methane emissions.
• Explain whether you plan to implement LDAR or other methods to fix and find methane emissions.
• If you are planning to implement LDAR or other methods to fix and find methane emissions, then describe these plans and provide implementation timelines.

Flaring reduction efforts

(C-OG4.8) If flaring is relevant to your oil and gas production activities, describe your organization’s efforts to reduce flaring, including any flaring reduction targets.

Change from 2018

No change

Rationale

Flaring of gas contributes to climate change and impacts the environment through emissions of CO₂ and other pollutants while wasting a valuable energy resource, hence investors are interested in learning about organization’s efforts to reduce flaring.

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 disclosure platform, formatting is not retained.

Requested content

General

• Flaring can occur in the oil and gas industry for many reasons, ranging from initial start-up testing of a facility to unplanned equipment malfunctions.
• Flaring includes emissions of CO₂, CH₄, and N₂O from elevated flares, ground flares, emergency flares, well-testing and well work-over.
• If flaring of natural gas is relevant to your organization’s operations, please describe, using company-specific examples, any efforts to reduce flaring, including:

- Flaring reduction targets;
- Flaring reduction projects; and
- Involvement in voluntary programs, for example the World Bank’s Global Gas Flaring Reduction Partnership (GGFR) and “Zero Routine Flaring by 2030” initiative.

• If flaring is not relevant to your operations, please explain why it is not.

C5 Emissions methodology

Module Overview

A meaningful and consistent comparison of emissions over time is an essential step in environmental reporting. This module allows companies to provide the base year and base year emissions and provide details of the standard, protocol, or methodology used to collect activity data and calculate Scope 1 and Scope 2 emissions.

Key changes

None.

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.

Base year emissions

(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).

Change from 2018

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 2 decimal places and no commas]	Text field [maximum 2,400 characters]
Scope 2 (location-based)
Scope 2 (market-based)

Requested content

General

• This question asks about the base year for your greenhouse gas inventory. This may be the same as the base year for your targets, but not necessarily. 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, you should recalculate your base year emissions so that they can be directly compared with your current/reporting year emissions.
• 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.
• The GHG Protocol Corporate Standard suggests that structural changes in an organization should trigger a recalculation of base year emissions. A company may, however, decide not to do this if the new emissions are not material or significant. It is up to each company to determine the threshold for what is considered significant or material.
• 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.
• 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.

Emissions methodology

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions.

Change from 2018

No change

Rationale

This will provide CDP data users with transparency with regards to the methods used to calculate your 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 Voluntary 2017 Reporting Guidelines
• ENCORD: Construction CO₂e Measurement Protocol
• Energy Information Administration 1605B
• 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
• 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
• 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
• 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, Superceded by Revision of the Act on Promotion of Global Warming Countermeasures (2005 Amendment)
• Korea GHG and Energy Target Management System Operating Guidelines
• New Zealand - Guidance for Voluntary, Corporate Greenhouse Gas Reporting
• Philippine Greenhouse Gas Accounting and Reporting Programme (PhilGARP)
• Programa GEI Mexico
• 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 Tokyo Cap-and Trade Program
• US EPA Climate Leaders: Direct Emissions from Iron and Steel Production
• US EPA Climate Leaders: Direct Emissions from Municipal Solid Waste Landfilling
• US EPA Climate Leaders: Direct HFC and PFC Emissions from Manufacturing Refrigeration and Air Conditioning Equipment
• US EPA Climate Leaders: Direct HFC and PFC Emissions from Use of Refrigeration and Air Conditioning Equipment
• US EPA Climate Leaders: Indirect Emissions from Purchases/ Sales of Electricity and Steam
• US EPA Climate Leaders: Direct Emissions from Stationary Combustion
• US EPA Climate Leaders: Direct Emissions from Mobile Combustion Sources
• US EPA Mandatory Greenhouse Gas Reporting Rule
• 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 which you may use to aid in the collection and reporting of GHG data, but the large majority of companies refer to the GHG Protocol as their basic reference.
• CDP encourages companies to use the GHG Protocol Corporate Standard when national standards are not specified.
• If the one you have used is not included in the drop down, or if you have used a combination of methodologies, select “Other, please specify;” you will be given an opportunity to provide more details in response to question C5.2a.
• If you select “Other, please specify,” provide a label for the standard, protocol, or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emission.

Best practice

• CDP makes no judgments on standards or methodologies applied by companies to produce their inventories.
• As such, it is impossible for CDP to explicitly accept/reject a specific calculation methodology.
• We expect that any tool used to calculate emissions for an inventory will follow the best practice and observe important aspects such as the accuracy and completeness principles of standards similar to the GHG Protocol.

Verifying methodology

• Appropriate application of an emissions calculation methodology should be determined on a case-by-case basis.
• Therefore, evaluating whether a certain practice is appropriate for a given purpose is best completed by verifiers/assurers. We expect companies that follow best practice to verify/assure their inventories, namely the methods used to estimate emissions and underlying data.

(C5.2a) Provide details of the standard, protocol, or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions.

Question dependencies

This question only appears if you select “Other, please specify” in response to C5.2.

Change from 2018

No change

Rationale

This will provide CDP data users with transparency with regards to the methods used to calculate 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 disclosure platform, formatting is not retained.

Requested content

General

• Use the text box provided to give a description of the methodology(ies) you used to collect activity data and calculate your Scope 1 and Scope 2 emissions.
• Please give the name of the published methodology you have used that is not on the list in question C5.2 or give a description of an in-house methodology or a combination of in-house and published methodologies.

C6 Emissions data

Module Overview

Reporting emissions is best practice and a pre-requisite 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.

Key changes

• Additional guidance for financial services sector companies has been added for question C6.5.

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

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 2018

No change

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 their carbon footprints from direct emissions.

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 13: Climate action

Response options

Complete the following table:

Gross global Scope 1 emissions (metric tons CO2e)	Comment
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]	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 the three years prior to the current reporting year.
• 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 by adding additional reporting years to C0.2, you may do so here.
• 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.
• 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”). To make a renewable electricity usage claim on electricity generated onsite from gas the following conditions need to be met:

- The company combusts gas sourced from a shared gas pipeline network to produce electricity;
- 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 electricity generation, including any electricity attribute certificates (e.g. RECs in the U.S.) for the electricity generated.

• 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 2018

No change

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.

Scope 2 emissions data

(C6.3) What were your organization's gross global Scope 2 emissions in metric tons CO₂e?

Change from 2018

No change

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.

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.

Response options

Please complete the following table:

Scope 2, location-based	Scope 2, market-based (if applicable)	Comment
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a range of 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	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 the three years prior to the current reporting year.
• 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 by adding additional reporting years to C0.2, you may do so here.
• 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.”

Exclusions

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Change from 2018

No change

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 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.

Response options

Select one of the following options:

• Yes
• No

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 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.”

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 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 2018

No change

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 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.

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	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 (if applicable)	Explain why this source is excluded
Text field [maximum 2,400 characters]	Select from: No emissions excluded No emissions from this source Emissions are not relevant Emissions are relevant but not yet calculated Emissions are relevant and calculated, but not disclosed Emissions excluded due to recent acquisition Emissions are not evaluated	Select from: No emissions excluded No emissions from this source 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 Emissions are not evaluated	Select from: No emissions excluded No emissions from this source 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 Emissions are not evaluated	Text field [maximum 2,400 characters]

[Add Row]

Requested content

Source (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.

Relevance of Scope 1 emissions from this source (column 2)

• No emissions excluded – select this option if you have excluded Scope 2 emissions from this source and reported this exclusion in the relevant column of this table (C3 or C4), but you have not excluded Scope 1 emissions from this source.
• No emissions from this source – select this option if you have excluded Scope 2 emissions from this source and reported this exclusion in the relevant column of this table (C2 or C3), but you do not have Scope 1 emissions from this source.
• 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 – select this option if you have excluded Scope 1 emissions from this source due to an acquisition that has taken place in the in the last 12 months prior to the submission date of your response to CDP.
• 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 3 and 4)

• No emissions excluded – select this option if you have excluded Scope 1 emissions from this source and reported this exclusion in column 2 of this table, but you have not excluded Scope 2 emissions from this source.
• No emissions from this source – select this option if you have excluded Scope 1 emissions from this source and reported this exclusion in column 2 of this table, but you do not have Scope 2 emissions from this source.
• 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 – select this option if you have excluded Scope 2 emissions from this source due to an acquisition that has taken place in the last
• 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.

Explain why this source is excluded (column 5)

• Use this text field to describe why the source is excluded and its significance. If possible, provide an estimate of the percentage of total emissions contained within the reported boundary that the exclusion represents. If a recent acquisition has taken place, please include the time of acquisition in this text field.
• Note that this question asks you to report only excluded sources of emissions. If you select 'No emissions excluded' or "No emissions from this source" for every column in every row indicating that there are no sources of emissions that have been excluded from your reported Scope 1 or Scope 2 figures in C6.1 and 6.3, you should review your answer to C6.4 and select "No".

Example response

Source	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 (if applicable)	Explain why this source is excluded
We are excluding emissions from our direct operations in Asia where we have four manufacturing facilities.	Emissions are not evaluated.	Emissions are relevant but not yet calculated.	Emissions are relevant but not yet calculated.	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 location-based figure for those operations.

Additional information

• 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, but are only a small proportion of the total emissions included in the GHG statement.

Scope 3 emissions data

(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions.

Change from 2018

No change

Rationale

For most companies, the majority of emissions occur in the supply 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

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

2018 RobecoSAM Corporate Sustainability Assessment (DJSI)

Scope 3

Response options

Please complete the following table:

Sources of Scope 3 emissions	Evaluation status	Metric tons CO2e	Emissions calculation methodology	Percentage of emissions calculated using data obtained from suppliers or value chain partners	Explanation
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 2 decimal places and no commas]	Text field [maximum 2,400 characters]	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
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’.

Sources of Scope 3 emissions (column 1)

• This column is already completed in the disclosure platform and all sources 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 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 sources, with the exception of Other (upstream) and Other (downstream) – these two categories should only be used if companies have a source of Scope 3 emissions that is not provided above. The evaluation status includes two components: whether a Scope 3 source is relevant to your business and what you have done to investigate that source. Relevance should be determined with reference to the GHG Protocol Scope 3 standard – 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 emissions from at least part of this source.
- Relevant, not yet calculated. Select this option if you are aware that the Scope 3 source 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 source 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 source of Scope 3 emissions 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 source and therefore do not know whether or not it is relevant for your business.

Metric tons CO₂e (column 3)

• Complete this column for all sources that you have identified as “Relevant, calculated” or “Not relevant, calculated” in the Evaluation status column. Enter the emissions appropriate to each source identified in metric tons CO₂e, entering numbers only up to 99,999,999,999 without commas and up to two 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.

Emissions calculation methodology (column 4)

• Complete this column for all sources that you have identified as “Relevant, calculated” or “Not relevant, calculated” in the Evaluation status column. Your response should include a short description of the types and sources of data used to calculate emissions (e.g. activity data, emission factors and GWP values), and a short description of the methodologies, assumptions and allocation methods used to calculate emissions. Please use no more than 2400 characters to complete this response.

Percentage of emissions calculated using data obtained from suppliers or value chain partners (column 5)

• This column is optional for all sources that you have identified as “Relevant, calculated” or “Not relevant, calculated” in the Evaluation status column.
• 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 .

Explanation (column 6)

• Complete this column for all sources that you have identified as “Not relevant, explanation provided” in the Evaluation status column. You should 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 other rows in the table, including any exclusions within a source, or to explain why emissions have decreased or increased, you can also do that in this column. Use no more than 2400 characters in your response.

Note for agricultural sectors

• Organizations reporting Scope 3 emissions data associated with the transportation of raw materials should do so in this question.

Note for oil & gas and coal sector

• 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 the majority of emissions occur in the investment chain, in relation to your financial products and services and/or investments. Scope 3 Investments is the most relevant category to financial services organizations.
• You should report your Scope 3 emissions data for the Investments category, at the group level if applicable. In addition, you are encouraged to provide emissions data for all other listed Scope 3 categories that are relevant to you.
• You may include the percentage of emissions calculated using data obtained from investment chain partners in column 5.
• The "Explanation" column can be used to provide a figure for the proportion of portfolio coverage (including all relevant asset classes), as well as the emissions intensity.
• Insurance companies:

-As asset owners, insurance companies are asked to provide in the "Explanation" column their weighted average carbon intensity, where data are available or can be reasonably estimated, for each fund or investment strategy.

• Asset managers:

-Asset managers are asked to provide in the "Explanation" column their weighted average carbon intensity, where data are available or can be reasonably estimated, for each product or investment strategy.

• For further information please see CDP's Technical Note on Financial Services.

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.

• 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.

Emissions from biologically sequestered carbon

(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

Change from 2018

No change

Rationale

The GHG Protocol’s Corporate Accounting and Reporting Standard outlines that emissions from the combustion of biomass shall be reported separately. Therefore organizations can identify here whether they have carbon dioxide emissions from biologically sequestered carbon that data users, both internal and external, may need for decision making.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Response options

Select one of the following options:

• Yes
• No

Requested content

General

• You should respond “Yes” to this question if carbon dioxide emissions from biologically sequestered carbon (i.e. carbon dioxide emission from burning biomass/biofuels) are relevant to your organization, regardless of whether you have the data available to provide a total emissions figure (this is the subject of question C6.7a below). In this context “relevant” is as defined in the GHG Protocol’s Corporate Accounting and Reporting Standard (page 8), meaning “that it contains the information that users—both internal and external to the company—need for their decision making”.

Explanation of terms

Biologically sequestered carbon: carbon removed from the atmosphere by biological sinks and stored in plant tissue. Biologically sequestered carbon does not include GHGs captured through carbon capture and storage.

(C6.7a) Provide the emissions from biologically sequestered carbon relevant to your organization in metric tons CO₂.

Question Dependencies

This question only appears if you select “Yes” in response to C6.7.

Change from 2018

Minor change

Rationale

This question provides data users insight into the CO₂ emissions from biologically sequestered carbon. Reporting these emissions separately aligns with best practice environmental reporting and the GHG Protocol’s Corporate Accounting and Reporting Standard.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Response options

Please complete the following table:

Emissions from biologically sequestered carbon (metric tons CO2)	Comment
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]	Text field [maximum 2,400 characters]

Requested content

General

• Please enter your total direct emissions of CO₂ from biologically sequestered carbon in the data field provided.
• This figure specifically requests information on direct CO₂ emissions that occur from sources that are owned or controlled by the company, for example, CO₂ emissions from combustion of biofuels. However if you have information on your indirect emissions from biologically sequestered carbon you can report this in the Comment column, outlining the quantity and source(s) of these emissions.
• Do not include other GHGs emitted from the combustion of biologically sequestered carbon or fermentation (e.g. nitrous oxide and methane are emitted from the combustion of biomass/biofuel). These should be reported within Scope 1, 2 or 3 (whichever is relevant to your company).

Additional information

Biogenic materials: Biogenic materials, including biomass, biofuels, and biogas, are increasingly used as a resource for energy generation. While biomass can produce fewer GHG emissions than fossil fuels and may be grown and used on a shorter time horizon, it still produces GHG emissions and should not be treated with a “zero” emission factor.

Based on the GHG Protocol Corporate Accounting and Reporting Standard, any emissions of CH4 or N2O from biologically sequestered carbon shall be reported in scope 1, 2 or 3, while the emissions of CO2 shall be reported outside the scopes. In practice, for Scope 2 emissions this means that any market-based method data that includes biofuels should report the CO2 portion of the biofuel combustion separately from the scope. Please refer to GHG Protocol Scope 2 Guidance for more details.

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 2018

Modified guidance

Rationale

Intensity measures describe an organization’s CO_2e 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.

Connection to other frameworks

SDG

Goal 13: Climate action

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 denominator	Metric denominator: Unit total	Scope 2 figure used	% change from previous year	Direction of change	Reason for change
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]	Metric tons CO2e Numerical field [enter a number from 0-999,999,999,999 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	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 8.

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 for change (column 8)

• Describe why your emissions intensity has changed. Explain the primary reasons behind the change and the degree to which different factors have influenced the figures.

Note for coal sector:

• 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:

• 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:

• 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:

• 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.

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: Also recognized as “top line” or “turnover”, the total monetary income received over a specific period.

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 for change
0.6	300,000	unit total revenue	5,000,000	Market-based	3	Decreased	Our organization has reduced our emissions as we transition our fleet to electric vehicles
100	300,000	full time equivalent (FTE)	3,000	Market-based	4	Decreased	In addition to reducing our emissions by shifting to electric vehicles we have hired more full time employees in the reporting year

Emissions intensities: Oil and gas

(C-OG6.12) Provide the intensity figures for Scope 1 emissions (metric tons CO₂e) per unit of hydrocarbon category.

Change from 2018

No change

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. Data users and investors often track environmental performance with intensity ratios.

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.

Unit of hydrocarbon category (denominator)	Metric tons CO2e from hydrocarbon category per unit specified	% change from previous year	Direction of change	Reason for change	Comment
Select all that apply: Thousand barrels of crude oil / condensate Thousand barrels of natural gas liquids Thousand barrels of oil sands (includes bitumen and synthetic crude) Million cubic feet of natural gas Thousand barrels of refinery throughput Thousand barrels of refinery net production Thousand metric tons of ‘high value chemicals’ (lower olefins) Other, please specify	Numerical field [enter a number from 0-999,999,999 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999 using a maximum of 2 decimal places]	Select from: Increased Decreased No change	Text field [maximum 2,400 characters]	Text field [maximum 2,400 characters]

[Add Row]

Requested content

General

• If you select “Other, please specify,” provide a label for the Unit of hydrocarbon.

Unit of hydrocarbon category (denominator) (column 1)

• High value chemicals (HVCs) include lower olefins such as ethylene, propylene from the pyrolysis gas of steam crackers, benzene (contained amounts, excluding extracted amounts,) butadiene (also contained,) acetylene and hydrogen sold (as fuel).

Metric tons CO₂e from hydrocarbon category per unit specified (column 2)

• Scope 1 emissions per unit of hydrocarbon category reported here should be entered in metric tons CO₂e per unit specified in column 1.

% change from previous year (column 3)

• 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 comment column (column 6). The previous year is 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 4)

• A declining intensity ratio reflects a positive emissions performance, while an increasing intensity ratio reflects a negative emissions performance.
• If the percentage change from last year is 0 (zero) select No change.

Reason for change (column 5)

• Describe why your emissions intensity has changed. Explain the primary reasons behind the change and the degree to which different factors have influenced the figures.

Explanation of terms

High value chemicals: High value chemicals (HVCs) produced via steam cracking include ethylene, propylene from the pyrolysis gas of steam crackers, benzene (contained amounts, excluding extracted amounts), butadiene (also contained), acetylene, and hydrogen sold (as fuel).

(C-OG6.13) Report your methane emissions as percentages of natural gas and hydrocarbon production or throughput.

Change from 2018

Minor change

Rationale

Emissions of methane, the main component of natural gas, represent a loss of resources that directly impact topline revenue for oil and gas organizations. Investors need rigorous, accurate, and comparable information to assess organizations’ emissions of methane. By reporting emissions as a percentage of production or throughput, the resulting data becomes comparable between companies, regardless of size, and over time, as a given company’s operations evolve.

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.

Oil and gas business division	Estimated total methane emitted expressed as % of natural gas production or throughput at given division	Estimated total methane emitted expressed as % of total hydrocarbon production or throughput at given division	Comment
Select all that apply: Upstream Midstream Downstream Chemicals Other, please specify	Numerical field [enter a number from 0-100 with a maximum of three decimal places]	Numerical field [enter a number from 0-100 with a maximum of three decimal places]	Text field [maximum 2,400 characters]

[Add Row]

Requested content

General

• The values to be reported are the total combined gross Scope 1 methane emissions determined for the given business division(s) (including vents, leaks, etc.,) expressed as a percentage of the aggregated production or throughput of natural gas and total hydrocarbons, respectively, at the given business division(s).
• If you select “Other, please specify,” provide a label for the oil and gas business division.

Estimated total methane emitted expressed as % of natural gas production or throughput at given division (column 2)

• Please report your total methane emissions rate as a percentage of natural gas production or throughput for the selected business division(s).

Estimated total methane emitted expressed as % of total hydrocarbon production or throughput at given division (column 3)

• Please report your total methane emissions rate as a percentage of total hydrocarbon production or throughput for the selected business division(s).

Additional information

• Methane emissions from the oil and gas sector: Methane metrics, which include emissions rates, will make data more actionable and aid in the assessment of methane performance. Emission rate refers to the percentage of total methane volume which is being lost as a function of production or throughput.
The latest scientific studies on methane emissions from the natural gas and oil industries suggest that, in order to maximize the climate benefits of a transition from both diesel and coal to natural gas on all time scales, methane emissions from the industry must be limited to an emissions rate of 0.8%. This means that each individual segment throughout the natural gas value chain, from well site to burner tip, must contribute much less than 0.8%.

(Adapted from EDF's report Rising Risk, January 2016)

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 regional level, information and 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. Because these gases are often only reported in CO2-equivalents (CO2e), their contribution to overall emissions is sometimes masked.

Key changes

• Questions C7.3b and C7.6b have additional guidance on reporting emissions breakdowns from non-stationary sources.
• Question C-OG7.1b has been modified to reduce the reporting effort and allow more flexibility in reporting emissions breakdowns.

Sector-specific content

Additional questions on emission breakdowns for the following high-impact sectors:

• Agricultural commodities
• Food, beverage & tobacco
• Paper and forestry
• Coal
• Electric utilities
• Oil & gas
• Cement
• Chemicals
• Metals & mining
• 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

(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?

Change from 2018

Minor change

Rationale

For many sectors and business activities, greenhouse gases other than carbon dioxide are significant and relevant. Within the emissions stream, because these gases are often only reported in CO ₂-equivalents (CO₂e), their contribution to overall emissions is sometimes masked. CDP therefore proposes this new question for companies to report their gross Scope 1 emissions by GHG type.

Response options

Select one of the following options:

• Yes
• No
• Don’t know

Requested content

General

• Select “Yes” if your organization’s gross Scope 1 emissions inventory contains greenhouse gases other than carbon dioxide; for example, any of the other five greenhouse gases covered by the Kyoto Protocol (methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride).

Additional information

• Preparing an emissions inventory: The GHG Protocol Corporate Accounting and Reporting Standard provides requirements and guidance for companies and other organizations preparing a corporate-level GHG emissions inventory.

(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of each used global warming potential (GWP).

Question Dependencies

This question only appears if you select “Yes” in response to C7.1.

Change from 2018

No change

Rationale

For many sectors and business activities, greenhouse gases other than carbon dioxide are significant and relevant. Within the emissions stream, because these gases are often only reported in CO₂-equivalents (CO_2e), their contribution to overall emissions is sometimes masked. CDP therefore proposes this new question for companies to report their gross Scope 1 emissions by GHG type.

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.

Greenhouse gas	Scope 1 emissions (metric tons in CO2e)	GWP Reference
Select from: CO2 CH4 N2O HFCs PFCs SF6 NF3 Other, please specify	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]	Select from: IPCC Fifth Assessment Report (AR5 – 100 year) IPCC Fourth Assessment Report (AR4 - 100 year) IPCC Third Assessment Report (TAR - 100 year) IPCC Second Assessment Report (SAR - 100 year) IPCC Fourth Assessment Report (AR4 - 50 year) IPCC Third Assessment Report (TAR - 50 year) IPCC Second Assessment Report (SAR - 50 year) IPCC Fifth Assessment Report (AR5 – 20 year) IPCC Fourth Assessment Report (AR4 - 20 year) IPCC Third Assessment Report (TAR - 20 year) IPCC Second Assessment Report (SAR - 20 year) Other, please specify

[Add Row]

Requested content

General

• Please report your organization’s emissions of the Kyoto greenhouse gases, which are:

- Carbon dioxide (CO₂);
- Methane (CH₄);
- Nitrous oxide (N₂O);
- Hydrofluorocarbon family of gases (HFCs);
- Perfluorocarbon family of gases (PFCs);
- Sulfur hexafluoride (SF₆).

• Nitrogen trifluoride (NF₃) has been included in the basket of mandated GHGs as it is now considered a potent contributor to climate change and is therefore mandated to be included in national inventories under the United Nations Framework Convention on Climate Change (UNFCCC). Similarly, following an amendment issued by the Greenhouse Gas Protocol on May 2013, NF₃ should also be included in GHG inventories under the Corporate Standard and the Corporate Value Chain (Scope 3) Standard.
• The total value for emissions reported in column 2, Scope 1 emissions (metric tons of CO2e), should equal the value for gross global Scope 1 emissions reported in C6.1.

Greenhouse gas (column 1)

• You can add rows for multiple greenhouse gas types and we request that you also add a row to report CO₂.

Scope 1 emissions (metric tons of CO₂e) (column 2)

• Report your organization’s emissions of the greenhouse gas selected in column 1, in CO₂-equivalents (CO₂e)

GWP Reference (column 3)

• Identify the global warming potential your organization has applied to the selected greenhouse gas in order to standardize it to a carbon dioxide equivalent (CO₂e). Your gross Scope 1 emissions are reported in carbon dioxide equivalents in C6.1. If you have used a calculation tool and do not know which GWPs have been applied to your data, consult the tool documentation or reference sources.
• If you select “Other, please specify”, provide a label for the GWP Reference.

Explanation of terms

• 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).

Additional information

• Changes in Global Warming Potentials (GWPs): Estimates of GWPs have changed over time as scientific understanding has developed. GWP factors are reassessed every few years in the IPCC Assessment Reports and accordingly, CDP recommends that companies use the latest GWPs given in the IPCC’s Fifth Assessment Report (AR5). This approach is aligned with the GHG Protocol Corporate and Accounting Reporting Standard, which states that the company “shall use 100-year GWP values from the IPCC and should use GWP values from the most recent Assessment Report, but may choose to use other IPCC Assessment Reports.”

(C-OG7.1b) Break down your total gross global Scope 1 emissions from oil and gas value chain production activities by greenhouse gas type.

Question dependencies

This question only appears if you select “Yes” in response to C7.1.

Change from 2018

Modified question

Rationale

Reporting gross global Scope 1 emissions by emission category allows for a more in-depth understanding of business risks, such as exposure to future regulation. The emissions categories are broken down to provide data users with a relevant and complete understanding of your organization’s oil and gas production activities and how these contribute to your emissions profile.

Response options

Please complete the following table:

Emissions category	Value Chain	Product	Gross Scope 1 CO2 emissions (metric tons CO2)	Gross Scope 1 methane emissions (metric tons CH4)	Total gross Scope 1 GHG emissions (metric tons CO2e)	Comment
Select all that apply: Combustion (excluding flaring) Flaring Venting Fugitives Process (feedstock) emissions Other (please specify)	Select all that apply: Upstream Midstream Downstream Other (please specify)	Select from: Oil Gas Unable to disaggregate	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 [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places]	Text field [maximum 2,400 characters]

[Add Row]

Requested content

Emissions category (column 1)

• Select the emissions category or categories which apply to the emissions breakdown being reported.
• If you are unable to disaggregate your emissions as requested then you have the option to provide other categories using the Other, please specify’ option. Equally, if you wish to disaggregate further (e.g. to include combustion emissions from captured streams) then you may do so here.

Value chain (column 2)

• Select the value chain or parts of the value chain which apply to the emissions breakdown being reported.
• If the breakdown of emissions does not apply to the value chains listed then select the option ‘Other, please specify’ and outline the part of the oil and gas value chain that the breakdown does apply to.

Product (column 3)

• Select the product that the emissions breakdown applies to, if you cannot disaggregate the figure by oil or gas then select the option “Unable to disaggregate”.

Gross Scope 1 CO₂ emissions (metric tons CO₂) (column 4)

• Report your organization’s Scope 1 CO₂ emissions in metric tons CH₄ for the emissions category in column 1.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Gross Scope 1 methane emissions (metric tons CH₄) (column 5)

• Report your organization’s Scope 1 methane emissions in metric tons CH₄ for the emissions category in column 1.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Gross Scope 1 emissions (metric tons CO₂e) (column 6)

• Total greenhouse gas emission should be aggregated and reported in units of CO₂e.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).
• Greenhouse gas emissions include all gasses identified in the Kyoto Protocol, therefore the figure provided in this column is expected to be marginally higher than the sum of CO₂ and CH4 (provided in columns 4 and 5 respectively).
• The total of GHG emissions (the sum of all rows in column 6) from this question’s table should be equal to the figures reported in question C-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 (oil and gas production activities upstream and oil and gas production activities downstream). Please refer to the note on oil and gas production activities at the end of this questions guidance.
• The Global Warming Potential (GWP) factors used here should be consisted with your disclosures throughout the questionnaire. CDP encourages the use of the most recent GWP factors published by IPCC, e.g. 28 for methane. More information can be found in GHG Protocol Guidance on GWPs.

Note on oil and gas production activities

• As a production sector, CDP describes the activities of the oil and gas sector as ‘oil and gas production activities’. These activities may be directly or indirectly related to the production process itself. Given the potential complexity of production sectors, CDP encourages you to identify and remove specific activities from your organizational boundary (or oil and gas business division’s organizational boundary) that are not necessarily a part of the oil and gas sector. Starting with your answer to question C6.1, emissions from the following sources should be deducted:

- External corporate entities, i.e. assets, business divisions, partnerships and subsidiaries operating outside of the oil and gas sector (or value chain).
- Non-industrial buildings, e.g. offices, accommodation, other property.
- Non-production related activities, e.g. management, services, R&D, marketing, retail.
- Transport*, e.g. distribution, business travel, shipping, freight, logistics.
- Projects**, e.g. construction, engineering and maintenance.

• Alternatively, you may consider constructing your sector boundary around activities that should be included. At a minimum, you should include in your sector boundary:

- The production processes.
- All activities, processes and equipment that are ancillary to said production processes.
- All other industrial installations, energy installations and other installations or activities contributing to or supplying said production processes and ancillary activities, e.g. boilers, power plant, raw material preparation and extraction, etc.
- All buildings that house said production processes and ancillary activities and said installations, as well as buildings used for inventory storage.
- Onsite mobile combustion, e.g. forklifts and excavators, and movement of materials between industrial sites within the sector.
- Any other industrial activities that typically occur on the production sites of the oil and gas sector.

*Transport activities considered a defining part of the oil and gas sector value chain, e.g. midstream activities, may be included for oil and gas production activities.

**Projects considered an essential part of the oil and gas sector, such as exploration and extraction projects, should be included for oil and gas production activities.

Explanation of terms

• Flaring: Includes emissions from elevated flares, ground flares, emergency flares, well-testing and well work-over.
• 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 excludes emission of CO₂ arising from the combustion and fermentation of biomass and biofuels; these emissions are reported as a separate category.
• Fugitives: This includes emissions from unintentional leaks (or system malfunctions) from sources such as 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.
• Process emissions: Process emissions include CH4 and CO₂ emissions from processes involving chemical or physical transformations other than fuel combustion. Sources include, among others, glycol dehydrators, acid gas treatment, hydrogen plants, catalyst regeneration, fluid cokers and flexi-cokers.
• Venting: Emissions from venting of associated gas and waste gas/vapor streams at oil and gas facilities. Vented emissions or intentional processing venting, arise from process, maintenance, turnarounds, non-routine activities and other activities, and include emissions of CH4 and CO₂ occurring from such sources as inoperative flares, flashing of gas in crude oil or condensate storage tanks, pneumatic devices driven by natural gas, starters, pressure relief valves, blowdowns (vessels, pipelines, and compressors), compressor seals, pumps, loading operations, shipping operations, venting and purging, exploration and well testing, venting of casinghead gas from oil wells, maintenance and turnaround, and non-routine releases.

Scope 1 breakdown: country

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

Change from 2018

No change

Rationale

By breaking down emissions to country or regional level, information and data can be made available to regions, states and sub-national bodies to help guide the development of emissions-related legislation.

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.

Country/Region	Scope 1 emissions (metric tons CO2e)
Select from a drop-down list of countries and regions. Please see the Technical Note “Country Regions” for details around the available regions and their constituent countries.	Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

General

• Breaking down emissions to the country level is useful to investors as this is often the level at which emissions-related legislation is introduced. Emissions should be attributed to individual countries wherever possible. CDP considers reporting emissions broken down by country best practice.
• Where states (or other sub-national entities) have the right to introduce emissions-related legislation, companies operating in these states (or other sub-national entities) may consider that breaking down emissions to a sub-national level is more informative. To provide this breakdown, select “Other: please specify” and provide a label for the sub-national entity.
• Where emissions are sufficiently low, or for parts of your business where your inventory does not allow for a country level of granularity, use the available region options. Please see CDP's Technical Note "Countries and Regions" for details around the available regions and their constituent countries.
• If you disclose the value for a region that overlaps with a country you are also disclosing, you should report the value for the region minus the emissions of that country. If all emissions breakdowns are added, they should add to your Scope 1 total.
• Due to the difficulties of delineating Asia, CDP has not provided a single ‘Asia’ category. Companies may choose either Asia Middle East (AME) or Asia Pacific (JAPA). Please see the Technical Note “Country and regions” for more information.

Country/Region (column 1)

• Select country/region in accordance with CDP’s Technical Note on “Country and regions”.

Scope 1 emissions (metric tons CO₂e) (column 2)

• Report your organization’s greenhouse gas emissions in CO₂-equivalent for the country/region selected in column 1.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Scope 1 breakdown: business breakdown

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.

Change from 2018

No change

Rationale

By requesting companies to break down emissions by business division, facility, and activity, CDP grants data users and investors transparency into the sources of a company's Scope 1 emissions.

Response options

Select all that apply from the following options:

• By business division
• By facility
• By activity

Requested content

General

• You should identify breakdowns that are relevant to your business/sector, and as such those that investors would find interesting.
• Identify the category of emissions that are relevant by ticking the boxes provided in the disclosure platform adjacent to each of the three options.
• By business division

- This breakdown can give an indication of the relative GHG performance of your company’s divisions. When reported over time, your company and information users will be able to review improvements or declines in division performance. This breakdown can be used alongside revenue segments found in company annual filings to understand companies’ emissions profiles in greater detail. To facilitate this process, it is recommended that companies match the divisions reported here with those found in company filings and financial statements.

• By facility

- The GHG Protocol stationary combustion tool document states that a “facility includes all buildings, equipment, structures and other stationary items which are located on a single site or on contiguous or adjacent sites and which are owned or operated by the same person or entity (or by any person or entity which controls, is controlled by or is under common control, with such person or entity)”.
- Facilities may also be referred to as installations. More than one business activity may take place at a facility and a facility may include more than one combustion unit, such as a boiler. It is preferable that the facility type is included. Some examples of facility type are: gas works, refinery, coal mine, integrated steelworks, cement plant, and office buildings.
- Reporting at this level can provide a useful indicator for making comparisons between facilities. In some cases, individual facilities may come within the scope of particular legislation, requiring baselining and subsequent reduction of GHG emissions through improvements in energy efficiency. This is particularly the case for industrial plants. Therefore, providing facility-level emission figures may give data users insight into your organization’s current/potential exposure to regulation in this area.

• By activity

- Relevant activities are defined by the reporting company and could include stationary combustion, mobile combustion (transport), fugitive emissions, process activities, office activities, etc. These activities can take place over multiple business divisions, countries, or facilities. Reporting by activity allows a more in-depth understanding of business risk related to future regulation. To facilitate comparability of data between companies, you are asked to report a breakdown of your activities using language that would be clear to someone outside of your organization and avoid using company-specific terminology. Furthermore, the level of aggregation of activities should be set so that it is meaningful to investors or customers viewing your response. Each activity should be broken down to a level granular enough to provide a data user with a relevant and complete understanding of your company’s activities and how these contribute to your emissions profile. Each activity should be broken down to a level sufficient for understanding the complete activity emissions profile and where further disaggregation would not add value for data users to understand the associated GHG emissions.
- Integrated companies should attempt, where possible, to provide a breakdown of emissions associated with each stage of their owned value chain.
- Companies that generate their own electricity should include it here as a separate activity, preferably with separation by fuel type.
- Companies involved in extracting and/or processing/refining natural resources should consider reporting these activities separately for each product type.

Note for organizations responding to high-impact sector requests

• If you select “By activity”, you will be presented with question 7.3c. If your company’s primary CDP sector is one of the twelve high-impact sectors, the response to 7.3c is not required. Organizations responding to these requests are presented with additional questions on this topic (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; C-AC7.4/C-FB7.4/C-PF7.4, C-MM9.3a, C-MM9.3b, C-CO7.1b, C-EU7.1b, C-OG7.1b) relating specifically to activities in the sector. Your primary CDP sector is displayed in your response dashboard.

(C7.3a) Break down your total gross global Scope 1 emissions by business division.

Question dependencies

This question only appears if you select “By business division” in response to C7.3.

Change from 2018

No change

Rationale

This question can give an indication of the relative GHG performance of your company’s divisions. When reported over time, your company and CDP’s data users will be able to review improvements or declines in division performance.

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.

Business division	Scope 1 emissions (metric tons CO2e)
Text field [maximum 500 characters]	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

Business division (column 1)

• Using no more than 500 characters, state the business division you are disclosing Scope 1 emissions for.
• For more details on reporting your business divisions, see guidance to C7.3.

Scope 1 emissions (metric tons CO₂e) (column 2)

• Report your organization’s greenhouse gas emissions in CO₂-equivalent for the business division stated in column 1.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

(C7.3b) Break down your total gross global Scope 1 emissions by business facility.

Question Dependencies

This question only appears if you select “By facility” in response to C7.3.

Change from 2018

Modified guidance

Rationale

Providing facility-level emission figures may give data users insight into your organization’s current/potential exposure to regulation in this area. Reporting at this level can provide a useful indicator for making comparisons between facilities.

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.

Facility	Scope 1 emissions (metric tons CO2e)	Latitude	Longitude
Text field [maximum 500 characters]	Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]	Enter the latitude of your facility here using numbers between 90.000000 and -90.000000, e.g. 51.524810	Enter the longitude of your facility using numbers between 180.000000 and -180.000000, e.g. -0.106958

[Add Row]

Requested content

General

• CDP provides a place for companies to provide basic data for the geo-location of their facilities. This information will be useful to link CDP data with other sources of information and can help investors assess physical risks of climate change and exposure of assets. It will also help CDP to link the information requested by investors to cities preparing their inventory for CDP.
• If using the Export/Import functionality, it is essential that you check that data has entered correctly into each field in a question.

Facility (column 1)

• Using no more than 500 characters, identify the facility you are disclosing Scope 1 emissions for.
• For more details on reporting your facilities, see guidance to C7.3.
• If your organization has Scope 1 emissions from non-stationary sources (i.e. transportation vehicles) that cannot be attributed to a specific facility then you can report the emissions from these sources collectively in one row. You can identify these emissions by inputting ‘Non-stationary sources’ in this column.

Scope 1 emissions (metric tons CO₂e) (column 2)

• Report your organization’s greenhouse gas emissions in CO₂-equivalent for the facility identified in column 1.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Latitude (column 3)

• Using standard geographic coordinates specify the north-south position (+90° to -90°) of the facility that you are reporting Scope 1 emissions for in column 2.

Longitude (column 4)

• Using standard geographic coordinates specify the east-west position (+180° to -180°) of the facility that you are reporting Scope 1 emissions for in column 2.

Additional information

• Latitude and longitude: Latitude and longitude are geographic coordinates that specify, respectively, the north-south and east-west position, of a point on the Earth's surface. They are expressed as angular measures and thus, latitude can vary from +90° to -90° and longitude from +180° to -180°.

- The geodetic system that should be used is the WGS 84, which is the system used by GPS (Global Positioning System), Google Maps, Google Earth, and all major web applications providing coordinates to users. If you want to report information to CDP but have the coordinates in another geodetic system (or datum) we ask you to please attach the information to this question.
- If you don’t have this information and want to locate your facilities using the internet, there are various web tools available to assist companies getting latitude and longitude coordinates according to WGS84. For example, iTouch Map allows you to enter an address or identify a location on a map and will return the latitude and longitude coordinates.
- Google Maps also allows you to find the latitude and longitude of any point. When you are in Google Maps, if you right-click anywhere, you will find an option “What’s here?”. If you click that option, the latitude and longitude will be displayed in the information that appears.

(C7.3c) Break down your total gross global Scope 1 emissions by business activity.

Question Dependencies

This question only appears if you select “By activity” in response to C7.3.

Change from 2018

No change

Rationale

Reporting emissions by activity allows a more in-depth understanding of business risks related to future regulation and climate-related issues, and allows organizations to identify potential opportunities to reduce emissions associated with operational activities.

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.

Activity	Scope 1 emissions (metric tons CO2e)
Text field [maximum 500 characters]	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

Activity (column 1)

• Using no more than 500 characters, state the activity you are disclosing Scope 1 emissions for.
• For more details on which activities to report, see guidance to C7.3.

Scope 1 emissions (metric tons CO₂e) (column 2)

• Report your organization’s greenhouse gas emissions in CO₂-equivalent for the activity stated in column 1.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Note for organizations responding to high-impact sector requests

• If your company’s primary CDP sector is one of the twelve high-impact sectors, the response to 7.3c is not required. Organizations responding to these requests are presented with additional questions on this topic (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; C-AC7.4/C-FB7.4/C-PF7.4, C-MM9.3a, C-MM9.3b, C-CO7.1b, C-EU7.1b, C-OG7.1b) relating specifically to activities in the sector. Your primary CDP sector is displayed in your response dashboard.

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

Scope 1 breakdown: sector production activities

(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) Break down your organization’s total gross global Scope 1 emissions by sector production activity in metric tons CO₂e.

Change from 2018

No change

Rationale

Reporting emissions by activity allows a more in-depth understanding of business risks related to future regulation and climate-related issues, and allows organizations to identify potential opportunities to reduce emissions associated with operational activities.

Response options

Please complete the following table:

Sector production activity	Gross Scope 1 emissions, metric tons CO2e	Net Scope 1 emissions, metric tons CO2e*	Comment
Cement production activities**	Numerical field [enter a number from 0-999,999,999 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-999,999,999 using a maximum of 2 decimal places]	Text field [maximum 2,400 characters]
Chemicals production activities**
Coal production activities**
Electric utility generation activities**
Metals and mining production activities**
Oil and gas production activities (upstream)**
Oil and gas production activities (downstream)**
Steel production activities**
Transport OEM activities**
Transport services activities**

*This column only appears for cement production activities

**This row only appears for the relevant sector

Requested content

General

• This question requests gross global Scope 1 emissions by sector production activity, i.e. aggregated across all business divisions and/or facilities for that sector.
• It is based on question C6.1 but is sector specific. Emissions occurring outside of the presented sector, should not be reported here. Therefore, the figure you report here should be lower than the figure you reported in C6.1.
• Sector production activities are activities conducted by your organization within the high-intensity sector that this sector-specific questionnaire relates to. These activities may be directly or indirectly related to the production process itself.
• Given the potential complexity of production sectors, CDP encourages you to identify and remove specific activities from your organizational boundary (or business division’s organizational boundary) that are not necessarily a part of the sector. Starting with your answer to question C6.1, emissions from the following sources should be deducted:

- External corporate entities, i.e. assets, business divisions, partnerships and subsidiaries operating outside of the high-intensity sector.
- Non-industrial buildings, e.g. offices, accommodation, other property.
- Non-production related activities, e.g. management, services, R&D, marketing, retail.
- Transport, e.g. distribution, business travel, shipping, freight, logistics.
- Projects, e.g. construction, engineering and maintenance.

• Alternatively, you may consider constructing your sector boundary around activities that should be included. At a minimum, you should include in your sector boundary:

- The production processes
- All activities, processes and equipment that are ancillary to the production processes.
- All other industrial installations, energy installations and other installations or activities contributing to or supplying the production processes and ancillary activities, e.g. boilers, power plant, raw material preparation and extraction, etc.
- All buildings that house the production processes and ancillary activities and said installations, as well as buildings used for inventory storage.
- Onsite mobile combustion, e.g. forklifts and excavators, and movement of materials between industrial sites within the sector.
- Any other industrial activities that typically occur on the production sites of the high-intensity sector.

• You should report direct emissions occurring inside the organizational boundary and the sector boundary.
• If your organization only operates within the presented high-intensity sector, then the emissions figure you report here is still likely to be lower than the figure you reported in C6.1. This is because for this question CDP encourages you to exclude activities that are not dependent on being in the presented sector. The purpose is to improve the consistency and accuracy of sector emissions reporting.
• If your organization is active across multiple high-intensity sectors, complete this table as it is presented, providing gross global Scope 1 emissions for each sector production activity listed.

Scope 1 emissions (metric tons CO₂e) (column 2)

• Emissions must be reported in gross, not net figures. Therefore, negative numbers are not allowed. Gross emissions are requested so that users of the information can account for the 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 boundary.
• Emission figures should be for the reporting year only (as defined by your answer to C0.2).
• Putting in zero would suggest that you have measured your emissions and that they are equal to zero (0).
• Scope 1 emissions should be reported in metric tons of CO₂e. Common conversion factors are included in the Technical Note on 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 on Special conditions for reporting Scope 1 emissions.

Comment (column 3/column 4 for cement sector)

• You are encouraged to comment on the activity boundary applied to your disclosure. Comment on any activities that may be part of your organization or, if you also operate in other sectors, the relevant division of your organization, but have not been included here because they are not dependent on being part of the sector. If your methodology employs sector-based guidelines for accounting, then you should also mention them here. Any other comments you deem relevant to your response may also be provided here.

Net Scope 1 emissions, metric tons CO₂e (column 3 – for cement sector only)

• Net emissions are gross emissions minus credits for indirect GHG savings. Credits may be awarded for the use of ‘alternative fuels and raw' materials (AFR). AFR come in the form of recovered wastes which displace the use of fossil fuels. Subtracting credits is in-effect applying a zero-emission factor to the combustion of these wastes. For more information, refer to the accounting standards set by the WBCSD's Cement Sustainability Initiative (CSI).
• Emission figures should be for the reporting year only (as defined by your answer to C0.2).
• Putting in zero would suggest that you have measured your emissions and that they are equal to zero (0).
• Scope 1 emissions should be reported in metric tons of CO₂e. Common conversion factors are included in the Technical Note on “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 on “Special conditions for reporting Scope 1 emissions”.

Note for cement sector

For ease of reporting, organizations already accounting direct emissions for the WBCSD's Cement Sustainability Initiative (CSI) may wish to utilize this work in answering this question. If so, you should update fuel emission factors to incorporate non-CO₂ GHG emissions relating to combustion.

Note for oil and gas sector

This question splits oil and gas activities into upstream and downstream. CDP advises the use of IPIECA’s definitions, where:

• Upstream includes exploration, development, and production of oil and gas.
• Downstream includes refining, processing, distribution, and marketing of products derived. For this question, CDP also includes Chemicals in this category, which includes the manufacture, distribution and marketing of chemical products derived from oil and gas (petrochemicals).

• Transport activities considered a defining part of the oil and gas sector value chain, e.g. midstream activities, may be included for oil and gas production activities.
• Projects considered an essential part of the oil and gas sector, such as exploration and extraction projects, should be included for oil and gas production activities.

Additional information

A 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.
• 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”). To make a renewable electricity usage claim on electricity generated onsite from gas the following conditions need to be met:

- The company combusts gas sourced from a shared gas pipeline network to produce electricity;
- 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 electricity generation, including any electricity attribute certificates (e.g. RECs in the U.S.) for the electricity generated.

• 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.

Scope 2 breakdown: country

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Change from 2018

No change

Rationale

By breaking down emissions to country or regional level, information and data can be made available to regions, states and sub-national bodies to help guide the development of emissions-related legislation.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

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.

Country/Region	Scope 2, location-based (metric tons CO2e)	Scope 2, market-based (metric tons CO2e)	Purchased and consumed electricity, heat, steam or cooling (MWh)	Purchased and consumed low-carbon electricity, heat, steam or cooling accounted in market-based approach (MWh)
Select from a drop-down list of countries and regions. Please see the Technical Note “Country Regions”, for details around the available regions and their constituent countries.	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number of 0- 999,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number of 0- 999,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

General

• Breaking down emissions to the country level is useful to investors as this is often the level at which emissions-related legislation is introduced. Please note that emissions should be attributed to individual countries wherever possible. CDP considers reporting emissions broken down by country best practice.
• Where emissions are sufficiently low, or for parts of your business where your inventory does not allow for a country level of granularity, use the available region options from the dropdown menu to group emissions from a number of countries. Please see CDP’s Technical Note on “Country and regions” for details around the available regions and their constituent countries.
• For countries like USA, Canada, or Brazil where several grids can exist within a country and emission factors are calculated at state/sub-regional level, companies are welcome to provide further breakdown details using “Other, please specify” option.
• Please note that further disclosure related to emissions accounted for at zero or low-carbon emissions factors is required in the energy section (C8.2f).

Country/Region (column 1)

• Select country/region in accordance with CDP’s Technical Note on “Country and regions”.
• If you wish to report your emissions at sub-national level, select “Other, please specify” and provide a label for the sub-national entity.

Scope 2, location-based (metric tons CO₂e) (column 2)

• Report your organization’s Scope 2 emissions in CO₂-e for the country/region selected in column 1, on a location-based method, i.e. reflecting the average emissions intensity of grids on which energy consumption occurs.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Scope 2, market-based (metric tons CO₂e) (column 3)

• Report your organization’s Scope 2 emissions in CO₂-e for the country/region selected in column 1, on a market-based method, i.e. reflecting emissions from electricity that companies have purposefully chosen (or their lack of choice).
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Purchased and consumed electricity, heat, steam, or cooling (MWh) (column 4)

• This column relates to the total amount of energy consumed and that constitutes the “activity data” for your Scope 2 figure.
• Electricity consumed is usually the largest portion of a company’s reported Scope 2 emissions. However, if your company has also included purchased and consumed steam, heating and cooling in its Scope 2 figure, that activity data should also be reported in here.

Purchased and consumed low carbon electricity, heat, steam or cooling (MWh) (column 5)

• This column should be used to disclose the amounts of electricity (and heat, steam, or cooling) that was accounted at a zero emission factor (0 metric tonnes CO₂e/MWh) or that can be considered “low carbon” (please see “Additional Information”) and that are supported by appropriate tracking instruments (please refer to CDP’s Technical Note on “Accounting of Scope 2 emissions” for criteria on what are considered “appropriate tracking instruments”).
• Any proportion of electricity (and heat, steam, or cooling) that comes from renewable/low carbon sources and is incorporated into a distribution grid average/residual mix and is not backed by some kind of instrument retired by the company, or by someone on their behalf should not be counted.
• Please note that it is logically expected that “Purchased and consumed low carbon electricity, heat, steam or cooling (MWh)” will be a subset of “Purchased and consumed electricity, heat, steam or cooling (MWh)”; i.e., the former figure should be equal to or lower than the latter.

Explanation of terms

Low-carbon energy: There is no precise, generally accepted definition of what “low-carbon energy” is. No definition is found in either the GHG Protocol standards or ISO. Nevertheless, it can be reasonably established that “low-carbon energy” will be any type of energy that will have no direct emissions and which the indirect emissions can usually be considered as negligible considering the life cycle of the given technology. Power technologies such as wind, solar, tidal, geothermal and most hydro power are generally accepted as low-carbon. Nuclear power is also usually considered low-carbon, although other considerations make it a more contentious technology. Natural gas, combined cycle gas turbine and Combined Heat and Power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.

Additional information

• Electricity tracking instruments: Certain jurisdictions might have electricity tracking instruments for all types of power, including technologies such as cogeneration, gas, or coal. In this case (which is expected to occur in exceptional cases) companies can also disclose the use of those instruments in question C8.2f, but should not consider that power as low carbon for purpose of question C7.5, in accordance with the explanation provided on “low-carbon energy.”

Scope 2 breakdown: business breakdowns

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.

Change from 2018

No change

Rationale

By requesting companies to break down emissions by business division, facility, and activity, CDP grants data users and investors transparency into the sources of a company's Scope 2 emissions.

Response options

Select all that apply from the following options:

• By business division
• By facility
• By activity

Requested content

General

• You should identify breakdowns that are relevant to your business/sector and as such, those that investors would find interesting.
• Identify those that are relevant by ticking the boxes provided in the disclosure platform adjacent to each of the three options.
• By business division

- This breakdown can give an indication of the relative GHG performance of your company’s divisions. When reported over time, your company and the information users will be able to review improvements or declines in division performance. This breakdown can be used alongside revenue segments found in company annual filings to understand companies’ emissions profiles in greater detail. It is recommended that companies match the divisions reported here with those found in company filings and financial statements to facilitate this process.

• By facility

- The GHG Protocol stationary combustion tool document states that a “facility includes all buildings, equipment, structures and other stationary items which are located on a single site or on contiguous or adjacent sites and which are owned or operated by the same person or entity (or by any person or entity which controls, is controlled by or is under common control, with such person or entity)”.
- Facilities may also be referred to as installations. More than one business activity may take place at a facility and a facility may include more than one combustion unit, such as a boiler.
- Reporting at this level can provide a useful indicator for making comparisons between facilities. In some cases, individual facilities may come within the scope of particular legislation, requiring baselining and subsequent reduction of GHG emissions through improvements in energy efficiency. This is particularly the case for industrial plants. Therefore, providing facility-level emission figures may give data-users insight into your organization’s current/potential exposure to regulation in this area.

• By activity

- Relevant activities should be defined by the reporting company but could include process activities, office activities etc. These activities can take place over multiple business divisions, countries or facilities. Reporting by activity allows a more in depth understanding of business risk to future regulation. To facilitate comparability of data between companies, you are asked to report a breakdown of your activities using language that would be clear to someone outside of your organization and avoid using company-specific terminology. Furthermore, the level of aggregation of activities should be set so it is meaningful to investors or customers viewing your response. Each activity should be broken down to a level granular enough to provide a data user with a relevant and complete understanding of your company’s activities and how these contribute to your emissions profile. Each activity should be broken down to a level sufficient for understanding the complete activity emissions profile and where further disaggregation would not add value for data users to understand the associated GHG emissions.

Note for agricultural sectors

• You should consider the business activity areas that are relevant to your organization, as indicated in C-AC0.6/C-FB0.6/C-PF0.6 (i.e., if you selected ‘Own land only/Direct operations only’ or ‘Both own land/direct operations and elsewhere in your value chain’ for the following activities: agriculture/forestry, processing/manufacturing, and/or distribution).

Note for organizations responding to high-impact sector requests

• If you select “By activity”, you will be presented with question 7.6c. If your company’s primary CDP sector is one of the following: OG, CO,TO, TS, MM, ST, CH or CE, the response to 7.6c is not required. Organizations responding to these requests are presented with additional questions on this topic (C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7, C-MM9.3a, MM9.3b) relating specifically to activities in the sector. Your primary CDP sector is displayed in your response dashboard.

(C7.6a) Break down your total gross global Scope 2 emissions by business division.

Question dependencies

This question only appears if you select “By business division” in response to C7.6.

Change from 2018

No change

Rationale

This question can give an indication of the relative GHG performance of your company’s divisions. When reported over time, your company and CDP’s data users will be able to review improvements or declines in division performance.

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.

Business division	Scope 2, location-based (metric tons CO2e)	Scope 2, market-based (metric tons CO2e)
Text field [500 maximum characters]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

Business division (column 1)

• Using no more than 500 characters, state the business division you are disclosing Scope 2 emissions for.

Scope 2, location-based (metric tons CO₂e) (column 2)

• Report your organization’s Scope 2 emissions in CO₂-e for the business division stated in column 1, on a location-based method, i.e. reflecting the average emissions intensity of grids on which energy consumption occurs.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Scope 2, market-based (metric tons CO₂e) (column 3)

• Report your organization’s Scope 2 emissions in CO₂-e for business division stated in column 1, on a market-based method, i.e. reflecting emissions from electricity that companies have purposefully chosen (or their lack of choice).
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

(C7.6b) Break down your total gross global Scope 2 emissions by business facility.

Question dependencies

This question only appears if you select “By facility” in response to C7.6.

Change from 2018

Modified guidance

Rationale

Providing facility-level emission figures may give data users insight into your organization’s current/potential exposure to regulation in this area. Reporting at this level can provide a useful indicator for making comparisons between facilities.

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.

Facility	Scope 2, location-based (metric tons CO2e)	Scope 2, market-based (metric tons CO2e)
Text field [maximum 500 characters]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

Facility (column 1)

• Using no more than 500 characters, identify the facility you are disclosing Scope 1 emissions for.
• If your organization has Scope 2 emissions from non-stationary sources that cannot be attributed to a specific facility then you can report the emissions from these sources collectively in one row. You can identify these emissions by inputting ‘Non-stationary sources’ in this column.

Scope 2, location-based (metric tons CO₂e) (column 2)

• Report your organization’s Scope 2 emissions in CO₂e for the facility identified in column 1, on a location-based method, i.e. reflecting the average emissions intensity of grids on which energy consumption occurs.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Scope 2, market-based (metric tons CO₂e) (column 3)

• Report your organization’s Scope 2 emissions in CO₂e for the facility identified in column 1, on a market-based method, i.e. reflecting emissions from electricity that companies have purposefully chosen (or their lack of choice).
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

(C7.6c) Break down your total gross global Scope 2 emissions by business activity.

Question dependencies

This question only appears if you select “By activity” in response to C7.6.

Change from 2018

No change

Rationale

Reporting emissions by activity allows a more in-depth understanding of business risks related to future regulation and climate-related issues, and allows organizations to identify potential opportunities to reduce emissions associated with operational activities.

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.

Activity	Scope 2, location-based (metric tons CO2e)	Scope 2, market-based (metric tons CO2e)
Text field [maximum 500 characters]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]	Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]

[Add Row]

Requested content

Activity (column 1)

• Using no more than 500 characters, disclose the activity you are disclosing Scope 2 emissions for.

Scope 2, location-based (metric tons CO₂e) (column 2)

• Report your organization’s Scope 2 emissions in CO₂efor the activity reported in column 1, on a location-based method, i.e. reflecting the average emissions intensity of grids on which energy consumption occurs.
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Scope 2, market-based (metric tons CO₂e) (column 3)

• Report your organization’s Scope 2 emissions in CO₂e for the activity reported in column 1, on a market-based method, i.e. reflecting emissions from electricity that companies have purposefully chosen (or their lack of choice).
• Negative numbers are not allowed as organizations are to report gross, not net figures.
• Emissions figures should be for the reporting year only (as defined by your answer to C0.2).

Note for agricultural sectors

• You should provide Scope 2 emissions data pertaining to all your relevant business activity areas (i.e., agriculture/forestry, processing/manufacturing, and/or distribution), as indicated in C-AC0.6/C-FB0.6/C-PF0.6.

Note for organizations responding to high-impact sector requests

• If your company’s primary CDP sector is one of the following: OG, CO,TO, TS, MM, ST, CH or CE, the response to 7.6c is not required. Organizations responding to these requests are presented with additional questions on this topic (C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7, C-MM9.3a, MM9.3b) relating specifically to activities in the sector. Your primary CDP sector is displayed in your response dashboard.

Scope 2 breakdown: sector production activities

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

(C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7) Break down your organization’s total gross global Scope 2 emissions by sector production activity in metric tons CO₂e.

Change from 2018

No change

Rationale

Reporting emissions by activity allows a more in-depth understanding of business risks related to future regulation and climate-related issues, and allows organizations to identify potential opportunities to reduce emissions associated with operational activities.

Response options

Please complete the following table:

Sector production activity	Scope 2, location-based, metric tons CO2e	Scope 2, market-based (if applicable), metric tons CO2e	Comment
Cement production activities*	Numerical field [enter a number from 0-99,999,999 using a maximum of 2 decimal places]	Numerical field [enter a number from 0-99,999,999 using a maximum of 2 decimal places]	Text field [maximum 2,400 characters]
Chemicals production activities*
Coal production activities*
Metals and mining production activities*
Oil and gas production activities (upstream)*
Oil and gas production activities (downstream)*
Steel production activities*
Transport OEM activities*
Transport services activities*

*This row only appears for the relevant sector

Requested content

General

• This question requests gross global Scope 2 emissions (location- and market-based) by sector production activity, i.e. aggregated across all business divisions and/or facilities. For an explanation of sector production activities refer to the guidance in 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.
• This question is based on question C6.3 but is sector specific. Emissions deriving from the generation of electricity, steam, heat, and cooling that is purchased or acquired for consumption outside of your presented sector, should not be reported here.
• Scope 2 emissions reported here are linked to the organizational boundary and the sector boundary. See the guidance in 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 for sector boundary definition.
• If your organization only operates within the presented sector, then the emissions figures you report here are still likely to be lower than the figures you reported in C6.3. This is because for this question CDP encourages you to exclude activities that are not dependent on being in the presented high-intensity sector. The purpose is to improve the consistency and accuracy of sector emissions reporting.
• If your organization operates in or owns assets across multiple sectors, then you should report emissions only for the presented sectors business division(s). Therefore, the figures you report here should be lower than the figures you reported in C6.3.
• If your organization is active across multiple high intensity sectors, complete this table as it is presented.
• Emissions must be reported in gross, not net figures. Therefore, negative numbers are not allowed.
• Emission figures should be for the reporting year only (as defined by your answer to C0.2).
• If your organization imports electricity, steam, heat or cooling from an entity which is outside the sector boundary, but is nonetheless owned by the wider organization, then you should count for this here as a Scope 2 emission. Because the emissions occur outside of your Scope 1 boundary, they are Scope 2 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.
• For more information on how to report Scope 2 emissions, see the Technical Note on “Accounting of Scope 2 emissions”, where you can find guidance on emission factors and the types that can be applied. Please also note that CH₄ and N₂O from electricity production should be included in the emissions factor calculation.
• For further information, see GHG Protocol Scope 2 Guidance.
• When accounting for your Scope 2 emissions, and should you need more information than provided in this guidance, you may want to consult your electricity suppliers, carbon advisor or verifier/assurer.

Scope 2, location-based (metric tons CO₂e) (column 2)

• Report your organization’s total gross global Scope 2 emissions in CO₂-equivalent for sector production activity listed in column 1, on a location-based method, i.e. reflecting the average emissions intensity of grids on which energy consumption occurs.

Scope 2, market-based (if applicable), metric tons CO₂e (column 3)

• Report your organization’s total gross global Scope 2 emissions in CO₂-equivalent for sector production activity listed in column 1, on a market-based method, i.e. reflecting emissions from electricity that companies have purposefully chosen (or their lack of choice).

Comment (column 4)

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

Note for oil and gas sector

This question splits oil and gas activities into upstream and downstream. CDP advises the use of IPIECA’s definitions, where:

• Upstream includes exploration, development, and production of oil and gas.
• Downstream includes refining, processing, distribution, and marketing of products derived. For this question, CDP also includes Chemicals in this category, which includes the manufacture, distribution and marketing of chemical products derived from oil and gas (petrochemicals).

• Transport activities considered a defining part of the oil and gas sector value chain, e.g. midstream activities, may be included for oil and gas production activities.
• Projects considered an essential part of the oil and gas sector, such as exploration and extraction projects, should be included for oil and gas production activities.

Note for cement sector

• For ease of reporting, organizations already accounting indirect emissions for the WBCSD's Cement Sustainability Initiative (CSI) may wish to utilize this work in answering this question. In this case, you should update external power generation emission factors to incorporate non-CO₂ GHG emissions. You should also add on emissions arising from the generation of heat, steam, or cooling that is purchased and consumed inside your sector boundary. You should ignore indirect emissions from the movement of clinker (49b and 49c). You should include inbound clinker (49b) as part of your response to question C6.5.

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 2018

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 2018

No 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	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 2 decimal places and no commas]	Select from: Increased Decreased No change	Numerical field [enter a number from 0-999 using a maximum of 2 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.

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. Please refer to the Example 3 in C4.3b for the clarification of how to account for low carbon purchases as an emissions reduction activity.
- 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, 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 (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.

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 two decimal places. 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 tonnes is attributed to two reasons: 1) an increase in 12 metric tonnes of CO₂e emissions due to increased production (i.e. a change in output); and 2) an estimated reduction of 4 metric tonnes 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	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
		Other emissions reduction activities	Acquisitions	Change in boundary	Other
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	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 2018

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 to enable greater insight into this emissions source.

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. Energy data requested in this module are in alignment with Scope 1 and Scope 2 emissions, as defined by the Greenhouse Gas Protocol. For further information, you should refer to the GHG Protocol Corporate Standard and the GHG Protocol Scope 2 Guidance.

Key changes

• A new drop-down option "Unable to confirm heating value" has been added to all questions requesting to specify the type of heating value used.
• Question C8.2f has a new column to facilitate tracking of the region of consumption of low-carbon energy.

Sector-specific content

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

• Electric utilities
• Cement
• Chemicals
• 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.

Energy spend

(C8.1) What percentage of your total operational spend in the reporting year was on energy?

Change from 2018

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 2018

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 undertakes this energy-related activity
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 biologically sequestered 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.

Note for RE100 members

• RE100 members have the option of uploading their completed RE100 Reporting Spreadsheet in the Further Information section of this questionnaire, which is presented prior to signing off in Module 14.

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, 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 2018

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

Response options

Please complete the following table:

Activity	Heating value	MWh from renewable sources	MWh from non-renewable sources	Total 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 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). 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)
• Further guidance on unit conversion is available in the following Technical Note: “Conversion of fuel data to MWh” .

Activity(column 1)

• This column is driven by the activities for which you selected ‘Yes’ in response to C8.2.

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 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 sources of energy can be naturally replenished on a human timescale, such as wind, solar, hydro, geothermal, biomass, etc. This definition excludes all fossil fuels (coal, oil, natural gas) and nuclear fuels.
• 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.

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 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.

Consumption of fuel (excluding feedstock) – if applicable

• 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 biofuels (biomass, biogas, bioliquids), biofuel derived wastes and renewably derived hydrogen because they are combusted as a fuel.
• If you do not have exact consumption data, you may alternatively estimate your company’s consumption by reviewing fuel and energy purchasing orders.
• 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 example, 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.
• 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".

Consumption of purchased or acquired electricity, heat, steam, cooling – if applicable

• The most common units for electricity are Watt-hours. 1 MWh is equal to 1,000,000 Watt-hours, which is equal to 1,000 kWh (kilo-Watt-hours).
• If your raw data is in energy units other than MWh, e.g. Giga-Joules (GJ) or British Thermal Units (Btu), then you should convert to MWh. For example, 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. Further guidance on unit conversion is available in the following Technical Note: “Conversion of fuel data to MWh”.
• 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 applicable

• If your organization produces renewable energy that is not fuel, then any consumption of this energy should be entered here.
• Consumption of renewable fuels are excluded for this row is because these should be accounted for as consumption of fuel (excluding feedstock).
• Non-fuel renewable energy includes forms such as solar, solar thermal, wind, hydro, geothermal, ocean, or any other form that is not combusted as a fuel. Biofuels (biomass, biogas, bioliquids), biofuel derived wastes and renewably derived hydrogen are not included here because they are combusted as a fuel.
• Non-fuel renewable energy may be consumed in the form of electricity, heat, steam, or cooling. This energy is entered here because it is also produced by your organization.

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.

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 for energy, i.e. combusted, that are derived from fuel feedstocks, e.g. blast furnace 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.