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CDP Climate Change 2019 Scoring Methodology

(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.

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
LikelihoodMagnitude of impactAre 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

C2.3a - Scoring criteria

Disclosure scoring criteria

The column "Primary climate-related risk driver" must be completed for a row to be eligible for Disclosure points.

If three or more risks have been disclosed:

Points will be awarded per completed cell in proportion to the number of rows disclosed. Partially completed rows will not receive full points. A maximum of 12 points are available for this question.

If fewer than three risks have been disclosed:

Points will be awarded per completed cell in proportion to the number of rows disclosed. Partially completed rows will not receive full points. A maximum of 4 points are available per row.

Note, for the column “Are you able to provide a potential financial impact figure?” and its associated columns “Potential financial impact figure - (currency)”; “Potential financial impact figure - minimum (currency)” and “Potential financial impact figure - maximum (currency)”, the following combinations are considered equivalent to a single completed cell:

- “Yes, a single figure estimate” is selected in column “Are you able to provide a potential financial impact figure?” AND a figure is provided in column “Potential financial impact figure - (currency)”
- “Yes, an estimated range” is selected in column “Are you able to provide a potential financial impact figure?” AND a figure is provided in column “Potential financial impact figure - minimum (currency)” AND a figure is provided in column “Potential financial impact figure - maximum (currency)”
- “No, we do not have this figure” is selected in column “Are you able to provide a potential financial impact figure?”

Awareness scoring criteria

If three or more risks have been disclosed:

- Up to 12 points will be awarded in proportion to the number of complete rows (excluding column "Cost of Management" or “Management method”), with any option except "Unknown" selected in columns "Time horizon", "Likelihood" and "Magnitude of impact"

If fewer than three risks have been disclosed:

- For each complete row with any option except "Unknown" selected in columns "Time horizon", "Likelihood" and "Magnitude of impact" - 4 points

Note, for the column “Are you able to provide a potential financial impact figure?” and its associated columns “Potential financial impact figure - (currency)”; “Potential financial impact figure - minimum (currency)” and “Potential financial impact figure - maximum (currency)”, the following combinations are considered equivalent to a single completed cell:

- “Yes, a single figure estimate” is selected in column “Are you able to provide a potential financial impact figure?” AND a figure is provided in column “Potential financial impact figure - (currency)”
- “Yes, an estimated range” is selected in column “Are you able to provide a potential financial impact figure?” AND a figure is provided in column “Potential financial impact figure - minimum (currency)” AND a figure is provided in column “Potential financial impact figure - maximum (currency)”
- “No, we do not have this figure” is selected in column “Are you able to provide a potential financial impact figure?”

Management scoring criteria

Full Awareness points must have been achieved in C2.2, C2.2a, C2.2b and C2.2c to be eligible for Management points in this question. Management points are awarded for up to 3 complete rows.

For each complete row:

i) A company specific description in column "Company specific description" - 1 point

ii) Column "Potential financial impact.." is consistent and has clear rationale with the numerical figure in column(s) "Potential financial impact..." - 1 point

- If "No.." has been selected in column "Are you able to provide a potential financial impact figure" - 0 points

iii) "Explanation of financial impact" explains how the financial impact was calculated, and clearly describes the potential impact - 1 point

- If "No.." has been selected in column "Are you able to provide a potential financial impact figure" - 0 points

- If “Yes, a single figure estimate” is selected in column “Are you able to provide a potential financial impact figure?” AND no figure has been provided in column “Potential financial impact figure - (currency)” has been left blank – 0 points

- If “Yes, an estimated range” is selected in column “Are you able to provide a potential financial impact figure?” AND no figure has been provided in either column “Potential financial impact figure - minimum (currency)” OR column “Potential financial impact figure - maximum (currency)” – 0 points

iv) "Management method" describes an action that is being implemented - 1 point

v) "Management method" contains an example or case study - 1 point

vi) A figure has been reported in "Cost of Management" AND “Management method” explains how the figure in “Cost of Management” was calculated - 1 point

Leadership scoring criteria

To be eligible for Leadership points the risk drivers selected in column "Primary climate related risk driver" must be consistent with the risk types selected in CC2.2c column "Risk type".

1 Leadership point will be awarded for each row that is awarded full Management points (maximum of 3).

Point Allocation


Disclosure numerator
 Disclosure denominator
 Awareness numerator
 Awareness denominator
 Management numerator Management denominator Leadership numerator Leadership denominator
12 12 12 12 18 18 3 3