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CDP Climate Change Questionnaire Preview and Reporting Guidance 2021 - Version Control
Version number
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Release/Revision date
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Revision summary
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1.0 |
Released: January 7, 2021 |
Publication of the 2021 questionnaire preview and reporting guidance.
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1.1 |
Revised: April 9, 2021 |
- Terms added for the 2021 Investor and Supply Chain questionnaires.
- Preparing Your CDP Response: Updated case study definition.
- About CDP: Updated investor assets figure.
- C7.9a: Removed reference to C4.3b example response.
- C4.1a: Updated deadline for 2021 SBT submission to SBTi as 23:59 UTC-12 on May 15, 2021
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1.2 |
Revised: May 18, 2021 |
- C4.2c column "Is this a science-based target": Clarification of requested content to indicate that the following response option does not apply in 2021: "Yes, and this target has been approved by the Science-Based Targets initiative".
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1.3 |
Revised: June 3, 2021 |
- Terms - (2021 Climate): Updated information for On-Demand scoring (see Scoring of responses to the Full Version in section 4)
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You have selected to view sector-specific content for the following sectors:
Note that you have selected to view the Climate Change - Full version.
CDP disclosure cycle 2021
Accessing questionnaire previews, reporting guidance, and scoring methodologies
CDP’s corporate questionnaire previews, reporting guidance, and scoring methodologies for climate change, forests and water security can be accessed from the guidance for companies page of CDP's website.
Submitting a response to the questionnaire(s)
Responses to questionnaires must be 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 details. Please note that while the questions themselves are the same in the questionnaire preview as they are in the ORS, the display format of some questions may differ, particularly for drop-down options and tables.
Sector-specific questions
Companies in high-impact sectors, in addition to the general questions, will be presented with questions specific to that sector. The rationale for developing a refined questionnaire for each of these sectors is outlined in the relevant sector introduction.
The sector-specific questions allocated to companies are defined by CDP's Activity Classification System (CDP-ACS). This system categorizes companies by focusing on the activities from which they derive revenue and associating these with the impacts to their business from climate change, water security and deforestation.
Please note that since each questionnaire includes sector-specific questions throughout, as not all questions will be applicable to your organization, some question numbers may skip.
Full and Minimum versions of the questionnaire
All organizations completing the climate change, forests and water security questionnaires are eligible to complete the full questionnaire.
In some cases, organizations may be eligible to complete a minimum version which contains fewer questions, and no sector-specific questions or data points. Organizations are eligible to complete the minimum version in the following circumstances:
- They are disclosing to that questionnaire for the first time; OR
- They are not disclosing to that questionnaire for the first time, but have an annual revenue of less than EUR/US $250 million*
Organizations opting to complete a minimum version will only be eligible for scoring if they are submitting a response to customers (CDP Supply chain members). For more information on scoring eligibility and implications, please see our Scoring Introduction.
* CDP reserves the right to remove the option of completing a minimum version questionnaire for previous responders to a questionnaire with an annual revenue of less than EUR/US$250 million, on the basis of the organization’s potential or existing environmental impact.
Timeline:
For the latest information on the timeline, please refer to our website.
Jan 2021
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- Preview of 2021 questionnaires and reporting guidance released on CDP website (English versions).
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March 2021 |
- Preview of 2021 questionnaires and reporting guidance released on CDP website (translated versions).
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April 2021 |
- Online Response System (ORS) opens.
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July 2021 |
- Companies must submit their responses to investors and/or customers using the ORS to be eligible for scoring and inclusion in reports (where applicable).
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For any disclosure-related enquiries, please contact your regional CDP contact, or [email protected].
CDP climate change questionnaire
This questionnaire is the property of CDP Worldwide, reproduction of all or part (including within software platforms) without permission of CDP Worldwide is prohibited. Please contact [email protected] for more information on this.
Introduction to CDP's climate change program and questionnaire
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 a transition 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.
CDP believes 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 investors, customers, and policy makers.
Regulators have begun to respond to the risks, notably with the recommendations by 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 long-standing 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
The CDP Commit to Action program is the accelerator of corporate ambition and action in CDP. It adopts a systemic approach to transition high-impact companies to a net-zero climate impact through initiatives like the Science Based Targets initiative and RE100. These and other leadership initiatives are included in the "Take Action" platform through which leading companies commit to bold climate action.
Companies that have joined the Science Based Targets initiative (SBTi), either through the standard commitment pathway or by joining the Business Ambition for 1.5°C campaign can report on that in the “Targets and performance” module of the CDP climate change questionnaire. Companies can report their commitment to adopt a science-based emissions reduction target and track their progress against already validated targets by answering 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 CDP’s questionnaires, please refer to the ‘Commit to Action Technical Note’.
Climate change questionnaire structure
There are 14 modules in the general climate change questionnaire, including the Introduction and Signoff modules, plus a module presented only to organizations that are responding to a customer request from one or more CDP Supply Chain Members. The journey through CDP’s general climate change questionnaire includes the following:
- Governance
- Risks and opportunities
- Business strategy
- Targets and performance
- Emissions methodology
- Emissions data
- Energy
- Additional metrics
- Verification
- Carbon pricing
- Engagement
Sector approach
The structure of the CDP climate change questionnaire was redesigned in 2018 in response to market needs and trends in corporate climate change reporting. Revisions included the inclusion of the TCFD recommendations, an increased emphasis on forward-looking metrics, improved alignment with other reporting frameworks, and the integration of sector-specific questions.
For climate change, CDP has incorporated sector-specific questions for 16 high-impact sectors.
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.
2021 climate change sectors:
- Agriculture: Agriculture commodities (AC); Food, beverage & tobacco (FB); Paper & forestry (PF)
- Energy: Coal (CO); Electric utilities (EU); Oil & gas (OG)
- Financial: Financial services (FS)
- Materials: Cement (CE); Capital goods (CG); Chemicals (CH); Construction (CN); Metals & mining (MM); Real estate (RE); Steel (ST)
- Transport: Transport services (TS); Transport OEMs (TO)
Climate change questionnaire changes in 2021
The questionnaire is stabilized for 2021 so there are only minimal changes reflecting feedback or error correction.
Revisions and changes are indicated for every question as: “no change”, “minor change”, “modified question”, “new question”, “modified guidance”, or “additional guidance”. “Minor change” indicates wording edits and revisions to drop-down options or a simple clarification, while a “modified question” indicates that the data requested has been revised.
Key changes include:
- Two new questions C3.1a and C3.1b on low-carbon transition plans.
- A new question C4.2c on net-zero targets.
- Removed questions SC3.1 - SC3.2a on the CDP Action Exchange.
- Modified questions: C4.1a and C4.1b on emissions targets; C8.2e on low-carbon energy sourcing.
- 10 questions with modified guidance and 2 questions with additional guidance.
A detailed document on climate change question changes from 2020 to 2021 can be found on the Guidance page of the website.
Preparing your CDP response
Please find below information on the support materials and options available to companies, and important notes for completing your disclosure. Please review these notes carefully as you prepare your response, even if you have responded to the questionnaire in previous years.
CDP disclosure support materials
CDP provides a variety of support materials to help organizations disclosing to our questionnaires. Before completing the corporate questionnaires, we strongly recommend you read this Reporting Guidance, the Scoring introduction, and relevant Scoring Methodology. Please also refer to the CDP Technical Notes and other guidance materials accessible from the guidance tool after signing in to the website, and see the Frequently Asked Questions on the website.
Reporting guidance
The reporting guidance in this document includes the following:
- Module-level guidance: for select modules this guidance provides an overview, 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: connections to the Sustainable Development Goals (SDGs), RobecoSAM Corporate Sustainability Assessment (DJSI), and Task Force on Climate-related Financial Disclosures (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, the additional guidance noted below, or our Frequently Asked Questions, please contact your local CDP office or [email protected].
Webinars and workshops
CDP hosts live webinars and workshops designed to aid you with environmental reporting.
Please visit the workshops and webinars and climate change pages of CDP's website for more details.
CDP Reporter Services
CDP Reporter Services program offers tailored support, enhanced data access and thought leadership on managing and reporting environmental risk to your business. Access the tools you need to move from disclosure to leadership on integrating climate, forests management, and water security into your wider business strategy. For year-round, personalized disclosure support from a dedicated CDP account manager, a gap analysis of your previous response, final review before submission and analytics tools to benchmark yourself against peers and understand best practice contact [email protected]. Visit the Reporter Services page of CDP's website for more information.
CDP accredited solutions providers
CDP partners with leading environmental service providers that can support companies throughout all stages of the measurement, reporting and management of their climate and sustainability data and impacts. All CDP solutions providers have met specific accreditation criteria. See provider areas of expertise below, and visit the accredited solutions provider directory to search for the provider best able to support you:
- Carbon reduction solutions providers offer technology and services that can help your organization reduce carbon emissions and improve energy efficiency.
- Climate change consultancy solutions providers have a wide range of technical expertise to support companies with establishing and implementing climate change and sustainability strategies.
- Science-based target (SBT) solutions providers have expertise in helping companies to set and implement targets in line with what the latest climate science says is necessary.
- Education & training solutions providers improve employee awareness and understanding of how climate change affects their organization through carbon management training programs.
- Renewable energy solutions providers provide expertise in procuring, tracking, and generating renewable power.
- Software solutions providers simplify the collection, monitoring, and reporting of sustainability, CSR, and environmental data through integrated sustainability software applications.
- Verification solutions providers help organizations disclose accurate data and improve internal processes by providing third-party verification and assurance of emissions data, a practice recommended by CDP.
As well as visiting our accredited solutions provider webpage, you can also contact [email protected] to find out more.
Important notes for completing your disclosure
Acronyms
Avoid using bespoke internal acronyms unless required for your organization’s response, in which case please provide their meaning to enable correct analysis and scoring.
Blank responses
Leaving a response blank is interpreted as non-disclosure. For numeric fields, values of zero (0) imply a measurement has been made, and the value is zero (0). For numeric fields where no measurement has been made, please leave the field blank and provide an explanation in an open text field for that same question (e.g. 'Comment' (optional) or 'Please explain' (scored)). If there is no open text field for the question, you may provide an explanation in the Further information field in the ORS at the end of your disclosure. Leaving a response blank and entering a value of zero (0) have different scoring implications. Please see the scoring methodology for more details.
Character limits
The character limits noted in the reporting guidance and in the ORS include spaces.
'Comment' columns
Some questions include a column labelled as 'Comment'. Note that providing information in these columns is optional.
Company-specific information
Some questions request company-specific information, rationales, case studies and/or examples. This level of detail gives data users confidence that the issue at hand has been thoroughly considered in the context of the responding organization's own business and not simply assessed in general terms.
- Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations unique to your company’s business or operations. A company-specific explanation should include details that make the answer true for the responding company and are distinct from other companies in the same industry and/or geography.
- Clear rationales are those which provide logical reasoning for methodologies, descriptions, decision, and actions.
- Case studies are defined as a detailed description of the implementation of a process, strategy or decision to a specific situation and/or task. When formulating case studies, responders may find it helpful to consider a “Situation-Task-Action-Result” (STAR) approach :1) Situation: what was the context or background? 2) Task: what needed to be done or what was the problem to be solved? 3) Action: what was the course of action taken? 4) Result: what was the final outcome of the course of action?
- An example does not need to follow the STAR approach. It can be shorter than a case study but should include some company-specific detail.
For more details, refer to the Scoring Introduction on the CDP website.
Consistency
CDP encourages a comprehensive and consistent response. Please ensure there is no conflicting information in your responses, both within a question and across the questionnaire.
Copy from last year
The 'copy from last year' functionality will be available in the ORS for companies that disclosed to CDP in previous reporting years. This functionality auto-populates your most recent answers into your questionnaire where applicable.
Note that this functionality may have been disabled for modified data points. The reporting guidance will indicate which questions have been modified. The Questionnaire Changes document on the guidance section of the CDP website lists all revisions from the previous year.
Please review the auto-populated answers carefully. It is your responsibility to ensure your answers are updated for the accuracy and completeness of your response.
Data accuracy
CDP recognizes that there may be uncertainty linked to data – this can arise from data gaps, assumptions, metering/measurement constraints including equipment accuracy etc. CDP allows estimated data to be submitted. However, an emphasis is placed on reporting transparently and this means that a company should always provide an explanation when its reported data is not accurate and detail the uncertainty (use the 'Please explain' or 'Comment' columns provided in the question).
Drop-down options ('Other, please specify')
Please select from the options provided whenever possible, and only select 'Other, please specify' when none of the listed options is appropriate. This greatly assists data analysis. If selecting 'Other, please specify', you must add a label that describes the option you are providing data for.
'Further information' field
At the end of the questionnaire, there is an opportunity to provide additional information or context that you feel is relevant to your organization’s response. This field is optional and not scored.
Mergers and acquisitions (M&As)
All disclosure should be defined by the organizational boundary applicable at the time of the stated reporting period. (Note that for CDP disclosure, organizations are encouraged to align their reporting period and organizational boundaries with their financial reporting).
Regarding forward-looking disclosure, organizations should include information that was correct at the time of the stated reporting period (for example, for data points referring to the future or "the next two years"). Organizations undergoing (or that have undergone) M&As need to consider the timing of the M&As and reporting period as follows:
- Organizations that were acquired after the end of the current reporting period: these should respond with what was planned (strategy, targets, etc.) before being acquired (i.e., during the reporting period). For transparency, where possible they may state where they consider that the forward-looking information may be subject to change due to the very recent acquisition.
- Organizations that were acquired during the reporting period: these should provide information that was applicable and correct to the best of their knowledge at the end of the reporting period. At the time of submitting their response to CDP, this information may not be the most up to date due changes underway following the acquisition. For transparency, the company may state this in their disclosure where possible.
Personal data
It is important that you do not include the name of any individual or any other personal data in your response. For questions that ask for the positions of staff, out of respect for personal data privacy we are asking only for the position and not for the individual’s name or any other information relating to them.
Providing feedback to CDP
You can provide feedback to CDP on the content of our questionnaires and supporting documents through our online technical feedback form.
We are unable to respond individually to all feedback, but please be assured that all form submissions are reviewed and contribute towards our continuous improvement.
However, if you represent a responding organization and would like to request a response, please get in touch with your local CDP contact.
C0 Introduction
Module Overview
This module requests information about your organization’s disclosure to CDP and will help data users to interpret your responses in the context of your business operations, timeframe and reporting boundary.
The information provided here should apply consistently to your responses throughout the questionnaire and be complete and accurate as it may determine response options presented in subsequent modules.
For this reason, you should respond to every question in this module before accessing the rest of the questionnaire.
Key changes
- For the financial services sector only:
Modified guidance: C-FS0.7 – threshold for including activities in the response is clarified and definition of "Insurance underwriting (Insurance company)" updated.
Sector-specific content
Additional questions on organizational activities for the following high-impact sectors:
- Agricultural commodities
- Capital goods
- Cement
- Chemicals
- Coal
- Construction
- Electric utilities
- Financial services
- Food, beverage and tobacco
- Metals & mining
- Oil & gas
- Paper & forestry
- Real estate
- Steel
- Transport original equipment manufacturers (OEMs)
- Transport services
Pathway diagram - questions
This diagram shows the general questions contained in module C0. To access question-level guidance, use the menu on the left to navigate to the question.
Introduction
(C0.1) Give a general description and introduction to your organization.
Change from 2020
No change
Rationale
This will help data users interpret your responses.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Provide information about your operations to help data users understand your greenhouse gas (GHG) emissions inventory and corporate climate change strategy. Include information on your business divisions and your emissions-generating activities (e.g. extraction and/or processing/refining of natural resources, electricity generation, transportation, manufacturing etc.).
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This information helps data users understand your company’s emissions profile and differences in emissions figures between peer companies.
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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).
Explanation of terms
- Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
(C0.2) State the start and end date of the year for which you are reporting data.
Change from 2020
No change
Rationale
This will help data users interpret your responses.
Response options
Please complete the following table.
Start date
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End date
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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]
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To: [DD/MM/YYYY]
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Select from: | Select from:
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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/areas for which you will be supplying data.
Change from 2020
No change
Rationale
This will help data users interpret your responses.
Response options
Please complete the following table:
Country/area
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Select all that apply:
[Country/area drop-down list]
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Requested content
General
- Select all countries/areas in which you operate from the drop-down menu provided.
(C0.4) Select the currency used for all financial information disclosed throughout your response.
Change from 2020
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
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Select from:
[Currency drop-down list]
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Requested content
General
- Select the currency to be applied to all financial information reported in this disclosure.
- For example, if you select USD($), provide metric tons CO2e per USD($) as the financial intensity metric in question C6.10.
(C0.5) Select the option that describes the reporting
boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.
Change from 2020
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 questionnaire, “your company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary. This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms. This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- GHG inventory: a quantified list of an organization’s greenhouse gas emissions and sources.
- Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Reporting boundary: This determines which organizational entities, such as groups, businesses and companies, are included in or excluded from your disclosure. These may be included according to your financial control, operational control, equity share or another measure. Please consistently apply this organizational boundary when responding to questions unless you are specifically asked for data about another category of activities.
C1 Governance
Module Overview
Board-level oversight of climate-related issues is considered best practice and provides an indication of the importance of climate-related issues to the organization.
This module is intended to capture the governance structure of your company with regard to climate change, and provides data users with an understanding of the organization's approach to climate-related issues at the board level and management level.
Key changes
Sector-specific content
Additional questions on retirement schemes for the following high-impact sectors:
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 2020
No change
Rationale
This question provides an indication of the importance of climate-related issues to your business. Investors and other data users are interested in an organization's understanding and approach to climate-related risks at the board level; how aligned this is with business strategy, policies, and performance objectives; and how the board monitors progress against targets and goals. 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:
Requested content
General
- Consider whether the board and/or board committees take account of 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 your organization has board-level oversight of risk assessment that includes climate-related risks, 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
For further information on board-level oversight in governance, see TCFD’s recommendations, CDP’s technical note on the TCFD’s recommendations and “How to Set Up Effective Climate Governance on Corporate Boards - Guiding principles and questions” (World Economic Forum, 2019).
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Question dependencies
This question only appears if you select “Yes” in response to C1.1.
Change from 2020
No change
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)
- Chief Investment Officer (CIO) [Financial services only]
- Chief Credit Officer (CCO) [Financial services only]
- Chief Underwriting Officer (CUO) [ Financial services only]
- Other C-Suite Officer
- President
- Board-level committee
- Other, please specify
|
Text field [maximum 2,400 characters]
|
[Add Row]
Requested content
General
- Report where in the board the responsibility for oversight of climate-related issues lies. This may be with an individual member of the board or a board-level committee, e.g. sustainability committee, risk committee, etc.
- Note that this question is asking about direct responsibility for oversight. In practical terms, this is the person or committee at the top of the chain of command specifically managing information on climate-related issues, making decisions about what the company will do and adapting those decisions based on climate-related information.
- The CEO is ultimately responsible for everything in the company; however this question is looking to identify board-level responsibility specifically on climate-related issues. While this may be the CEO, it is not necessarily always the case.
- Note that this question asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.
Position of individual(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”).
- 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, including at least one example of a climate-related decision made by the person(s)/committee(s).
- 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 2020
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
|
[FINANCIAL SERVICES ONLY] Scope of board-level oversight
|
Please explain
|
Select from:
- Scheduled - all meetings
- Scheduled - some meetings
- Sporadic - as important matters arise
- Other, please specify
|
Select all that apply:
- 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
|
Select all that apply:
- Climate-related risks and opportunities to our own operations
- Climate-related risks and opportunities to our bank lending activities
- Climate-related risks and opportunities to our investment activities
- Climate-related risks and opportunities to our insurance underwriting activities
- Climate-related risks and opportunities to other products and services we provide to our clients
- The impact of our own operations on the climate
- The impact of our bank lending activities on the climate
- The impact of our investing activities on the climate
- The impact of our insurance underwriting activities on the climate
- The impact of other products and services on the climate
|
Text field [maximum 3,000 characters]
|
[Add Row]
Requested content
General
- You should consider the frequency that climate-related issues are a scheduled agenda item for the principal board-level committee having oversight for climate-related issues. This may be a subcommittee of the board, or the full board itself.
- If you select “Other, please specify” provide a label for the Frequency with which climate-related issues are a scheduled agenda item.
- Note that your response to this question may refer to the position of employees relevant to board oversight mechanisms. In this case, do not include the name of any individual or any other personal data in your response.
Governance mechanisms into which climate-related issues are integrated (column 2)
- Select all of the governance mechanisms in which climate-related issues are included.
Scope of board-level oversight [FINANCIAL SERVICES ONLY]
- Activities of a business may be both affected by climate change or contribute to climate change. For financial institutions these impacts may materialize via the organization’s own operations, the financial products and services offered to its clients, and/or its investments. This column seeks insight on whether an organization’s board considers both.
- How the risks posed or opportunities presented by climate change impact its business; and conversely
- How its business activities contribute either positively or negatively to climate change.
Please explain (column 3)
- Describe the governance mechanisms selected in column 2 and how these mechanisms contribute to the board's overall oversight of climate-related issues.
- Include such details as what climate issues are scheduled agenda items, who briefs the board and on which matters (e.g. "a report from each Business Head regarding performance against climate targets is reviewed quarterly").
- As much as possible, please give examples from the reporting year.
Explanation of terms
Note for financial services sector companies:
- Other products and services: Also referred to as other financial
intermediary activities, this includes products and services that are not part of your core
lending, investment and insurance underwriting activities. Some examples of such products and services may be financial guarantees,
M&A, securities underwriting, bond issuance, etc.
(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 2020
No change
Rationale
As board-level oversight of climate-related issues is considered best practice, this question allows organizations to explain why there is no board-level oversight.
Response options
Please complete the following table:
Primary reason
|
Board-level oversight of climate-related issues will be introduced within the next two years.
|
Please explain
|
Text field [maximum 1,000 characters]
|
Select from:
- Yes, we plan to do so within the next two years
- No, we do not currently plan to do so
|
Text field [maximum 2,400 characters]
|
Requested content
Primary reason (column 1)
- Provide your organization's main rationale for not currently having board-level oversight of climate-related issues.
Please explain (column 3)
- Explain what you plan to implement in the next two years, or why you do not currently plan to do so.
Management responsibility
(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Change from 2020
No 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 its 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)
|
[FINANCIAL SERVICES ONLY] Reporting line
|
Responsibility
|
[FINANCIAL SERVICES ONLY] Coverage of 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)
- Chief Investment Officer (CIO) [Financial services only]
- Chief Credit Officer (CCO) [Financial services only]
- Chief Underwriting Officer (CUO) [Financial services only]
- Other C-Suite Officer, please specify
- President
- Risk committee
- Sustainability committee
- Safety, Health, Environment and Quality committee
- Corporate responsibility committee
- Credit committee [Financial services only]
- Investment committee [Financial services only]
- Responsible Investment committee [Financial services only]
- Audit committee [Financial services only]
- Other committee, please specify
- Business unit manager
- Energy manager
- Environmental, Health, and Safety manager
- Environment/Sustainability manager
- Facility manager
- Process operation manager
- Procurement manager
- Public affairs manager
- Risk manager
- Portfolio/Fund manager [Financial services only]
- ESG Portfolio/Fund manager [Financial services only]
- Investment/credit/insurance analyst [Financial services only]
- Dedicated responsible investment analyst [Financial services only]
- Investor relations manager [Financial services only]
- Risk analyst [Financial services only]
- There is no management level responsibility for climate-related issues
- Other, please specify
|
Select from:
- Reports to the board directly
- CEO reporting line
- Risk - CRO reporting line
- Finance - CFO reporting line
- Investment - CIO reporting line
- Operations - COO reporting line
- Corporate Sustainability/CSR reporting line
- 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 all that apply:
- Risks and opportunities related to our bank lending activities
- Risks and opportunities related to our investing activities
- Risks and opportunities related to our insurance underwriting activities
- Risks and opportunities related to our other products and services
- Risks and opportunities related to our own operations
|
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, or have another primary focus.
- 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.
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".
- The list includes senior positions that may sometimes but not always be at board level.
- Note that positions already listed in C1.1a are also listed here; select one of those positions only if the individual 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.
Reporting line [FINANCIAL SERVICES ONLY]
- Select the best match for the reporting line that is in charge of overseeing the positions with responsibility for climate-related issues.
Coverage of responsibility [FINANCIAL SERVICES ONLY]
- This column seeks to understand whether the highest management-level position or committee with responsibility for climate-related issues considers both climate-related risks and opportunities related to your own operations as well as core financing activities.
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 2020
No 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 ORS, formatting is not retained.
Requested content
General
- Use the text box to describe where the highest management-level position(s)/committee(s) with responsibility for climate-related issues sit in the organizational structure, their responsibilities, and how climate-related issues are monitored.
- Give a company-specific description including:
i. Where in the organizational structure this position(s)/committee(s) lie;
ii. A rationale of why responsibilities for climate-related issues have been assigned to this/these position(s) or committee(s).
- If you selected "There is no management level responsibility for climate-related issues" in C1.2 explain your selection here.
- 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.
Employee incentives
(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?
Change from 2020
No change
Rationale
CDP data users aim to understand the degree to which companies encourage their employees to address climate-related issues and impacts of the business, as well as the mechanisms by which companies are incentivizing certain behaviors and performances.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Please complete the following table:
Provide incentives for the management of climate-related issues
|
Comment
|
Select from:
- Yes
- No, not currently but we plan to introduce them in the next two years
- No, and we do not plan to introduce them in the next two years
|
Text field (maximum 1,000 characters)
|
Requested content
General
- Note that incentives can be positive (i.e. give people something) or negative (prevent access to something).
(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).
Question dependencies
This question only appears if you select “Yes” in response to C1.3.
Change from 2020
No change
Rationale
CDP data users aim to understand the degree to which companies encourage their employees to address climate-related issues and impacts of the business, as well as the mechanisms by which companies are incentivizing certain behaviors and performances.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
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.
Entitled to incentive | Type of incentive | 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)
- Chief Investment Officer (CIO) [Financial services only]
- Chief Underwriting Officer (CUO) [Financial services only]
- Chief Credit Officer (CCO) [Financial services only]
- Other C-Suite Officer
- President
- Executive officer
- Management group
- Business unit manager
- Energy manager
- Environmental, health, and safety manager
- Environment/Sustainability manager
- Facilities manager
- Process operation manager
- Procurement manager
- Public affairs manager
- Risk manager
- Portfolio/Fund manager [Financial services only]
- ESG Portfolio/Fund manager [Financial services only]
- Investment analyst [Financial services only]
- Dedicated Responsible Investment staff [Financial services only]
- Investor Relations staff [Financial services only]
- Risk management staff [Financial services only]
- Buyers/purchasers
- All employees
- Other, please specify
| Select from: - Monetary reward
- Non-monetary award
| Select all that apply: - 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
- Company performance against a climate-related sustainability index
- Portfolio/fund alignment to climate-related objectives [Financial services only]
- Other, please specify
| Text field [maximum 2,400 characters] |
[Add Row]
Requested content
General
- 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.
Entitled to incentives (column 1)
- If incentives are provided to specific lower-level employees, select "Other, please specify" (column 1) and specify the position.
Types of incentive (column 2)
- Monetary - a bonus or some form of financial remuneration;
- Non-monetary - employee awards (e.g. employee of the year) or career progression schemes not tied directly to any form of financial remuneration, increased holiday allowances, special assignments, parking allocations etc.
Activity incentivized (column 3)
- Performance indicators might include:
- Projects: The implementation of projects that are realizing savings in emissions, energy, and/or that are promoting efficiency;
- Targets: Activity resulting in progress towards your company's target(s);
- Behavior change: Contribution towards corporate global reputation improvement, rate of participation by employees in environmental activities, number of employees receiving training.
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 responding to climate-related issues as well as on the climate-related risks and opportunities identified by your organization. This information helps investors to assess the potential impacts to valuations and the adequacy of the company’s risk response.
Many of the challenges you face when reporting on climate-related issues are common to other aspects of corporate reporting, requiring you to provide statements about your prospective condition. Some organizations, particularly accounting firms and their governing bodies, have published guidance about how to prepare statements that contain forward-looking information.
You may wish to consult with your financial, legal, and/or compliance departments for advice on your company’s general approach to the provision of forward-looking statements and information concerning risks.
Note that the questions relate to “inherent” risk and not the “residual” risk that remains after management measures have been taken into account.
Note for financial services sector companies:
The TCFD recommendations highlight the importance of the financial sector considering the impacts of climate-related issues in the context of their financing activities. When evaluating exposure to climate-related risks and opportunities, financial services sector companies should primarily consider the impact on their lending, financial intermediary, investing and/or insurance underwriting activities, in addition to operational activities.
Key changes
Sector specific content
Additional questions for financial services sector companies.
Pathway diagram - questions
This diagram shows the general questions contained in module C2. To access question-level guidance, use the menu on the left to navigate to the question.
Management processes
(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?
Change from 2020
No change
Rationale
For many companies, climate change poses significant financial challenges and opportunities, now and in the future. CDP asks about a process for identifying, assessing, and responding to climate-related risks and opportunities so that data users may gauge the thoroughness of your company's understanding of its exposure to climate-related issues.
Connection to other frameworks
TCFD
Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.
Risk Management recommended disclosure b) Describe the organization’s processes for managing climate-related risks
Risk Management recommended disclosure c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.
Response options
Select one of the following options:
Requested content
General
- Select "Yes" if you have any process in place for identifying, assessing, and responding to climate-related risks and opportunities, regardless of how thorough it is. You will be able to provide further details in the subsequent questions.
- Only select "No" if you do not have any form of process for identifying, assessing, and responding to climate-related issues.
Explanation of terms
- Climate-related risk, in line with the TCFD, refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.
- Climate-related opportunity, in line with the TCFD, refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.
- Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).
(C2.1a) How does your organization define short-, medium- and long-term time horizons?
Change from 2020
No change
Rationale
CDP has added this question to understand the different timescales at which businesses consider climate-related issues in their risk assessment process and in strategy and financial planning. Subsequent questions on risk and opportunity disclosure, strategy and financial planning, relate to different time horizons, hence their definition is requested here.
Connection to other frameworks
TCFD
Strategy recommended disclosure a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.
Response options
Please complete the following table:
Time horizon | From (years) | To (years) | Comment |
Short-term | Numerical field [enter a number from 0-100 using no decimals or commas] | Numerical field [enter a number from 0-100 using no decimals or commas] | Text field [maximum 2,400 characters] |
Medium-term |
|
| |
Long-term |
|
|
|
Requested content
General
- This question is seeking a definition of what your organization considers to be short-, medium-, and long-term horizons in the context of climate-related risks and opportunities.
- If your long-term time horizon is open-ended, you may leave the column “To (years)” blank.
Comment (column 4) (optional)
- You may specify if this time horizon for assessing climate-related risks and opportunities is aligned with other business practices time horizons and provide any other relevant information.
Additional information
Time horizons of climate-related risks
- There is a common perception that all climate-related risks are “long-term”, arising in 10+ years; however, transitional risks such as policies, technology, and markets are emerging earlier than this, and physical risks including the frequency and intensity of storms, floods, and droughts are recognized risks today.
- Evaluating exposure to climate-related risks over a range of time horizons allows for a strategy for the transition to a low-carbon economy as recognized in the Paris Agreement and UN SDGs.
TCFD position on time horizons
- Because the timing of climate-related impacts on organizations will vary, TCFD believes specifying timeframes across sectors could hinder organizations’ consideration of the climate-related risks and opportunities specific to their businesses. TCFD is therefore not defining timeframes and encourages respondents to decide how to define their own timeframes according to the life of their assets, the profile of the climate-related risks they face, and the sectors and geographies in which they operate.
- In assessing climate-related issues, organizations should be sensitive to the timeframes used to conduct their assessments. While many organizations conduct operational and financial planning over a 1-2 year timeframe, and strategic and capital planning over a 2-5 year timeframe, climate-related risks may have implications over a longer period. It is therefore important for organizations to consider the appropriate timeframes when assessing climate-related risks.
(C2.1b) How does your organization define substantive financial or strategic impact on your business?
Change from 2020
No change
Rationale
The subsequent questions will ask you to disclose risks and opportunities with the potential to have a substantive financial or strategic impact on your business. What is considered a substantive impact for a business will be different for each responding company, therefore explaining your threshold for classifying potential impacts as substantive is critical context for CDP data users.
Response options
This is an open text question with a limit of 5,000 characters. Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Describe and quantify, in detail, how your organization defines a ‘substantive impact’ on your business at the corporate level, in the context of a climate-related risk.
- What constitutes a substantive impact will vary between companies. For example, a 1% reduction in profits will have different effects on different companies depending on their respective profit margins. Companies are therefore asked to determine ‘substantive’ in the way that they would do for their business decision-making. For example, a substantive impact of relatively high magnitude could occur because of a large number for any one of the following aspects, or because of a small number for all three combines to create a larger impact:
- the proportion of business units affected
- the size of the impact on those business units
- the dependency of the organization on that unit
- the potential for shareholder or customer concern.
Explanation of terms
- Substantive impact: an impact that has a considerable or relatively significant effect on an organization at the corporate level. This could include operational, financial or strategic effects that undermine the entire business or part of the business.
(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities.
Question dependencies
This question only appears if you select ”Yes” in response to C2.1.
Change from 2020
No change
Rationale
Understanding how a company integrates the consideration of climate-related issues into its overall risk management framework provides insight into the thoroughness of the risk management processes employed by organizations. Companies that fully integrate and frequently assess climate-related risks and opportunities across their value chain and over a range of time-horizons may be better equipped to handle longer-term uncertainties and liabilities.
Connection to other frameworks
TCFD
Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.
Risk Management recommended disclosure b) Describe the organization’s processes for managing climate-related risks
Risk Management recommended disclosure c) Describe how processes for identifying, assessing, and managing climate related risks are integrated into the organization’s overall risk management.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Value chain stage(s) covered
|
Risk management process
|
Frequency of assessment |
Time horizon(s) covered
|
Description of process |
Select all that apply:
- Direct operations
- Upstream
- Downstream
|
Select from:
- Integrated into multi-disciplinary company-wide risk management process
- A specific climate-related risk management process
|
Select from:
- More than once a year
- Annually
- Every two years
- Every three years or more
- Not defined
|
Select all that apply:
- Short-term
- Medium-term
- Long-term
- None of the above/Not defined
|
Text field [maximum 7,000 characters]
|
[Add Row]
Requested content
General
- You are requested to provide information on the risk management processes at all the stages of the value chain applicable to your organization.
- Upstream value chain refers to activities, products and services that are inputs to the activities of your business, sourced from third parties. This may include the regulations and policies applied by governments, or the products and services provided by your suppliers (i.e. the supply chain).
- Downstream value chain refers to the third parties benefiting from the outputs, products and services of your business activities. This may be your customers and clients, or the organizations and projects your business invests in.
- Note that if your response to this question refers to the position of employees relevant to your risk management processes, do not include the name of any individual or any other personal data in your response.
Value chain stage (column 1)
- Select all the stages of the value chain that your risk management process covers.
- If you have separate processes for different value chain stages, you may add rows to describe those processes separately.
Risk management process (column 2)
- Select the option that best describes how your process for identifying, assessing, and responding to climate-related risks and opportunities is integrated into your overall risk management framework. If your organization has more than one process in place, select the one that is most commonly employed. You will have the opportunity to expand further in column 5 “Description”.
- Integrated into multi-disciplinary company-wide risk management processes: a documented process where climate-related risks and opportunities are identified and assessed in an integrated way in the company’s centralized enterprise risk management program covering all possible types/sources of risks and opportunities
- A specific climate-related risk management process: a documented process that identifies, assesses and responds to climate change risks and opportunities separate from other business risks and opportunities.
Frequency of assessment (column 3)
- Select the option that describes how often climate-related risks are assessed. If climate-related risk management is integrated into company-wide risk management processes then the frequency of assessment will be the same throughout the enterprise risk management process.
Time horizons covered (column 4)
- Choose all the time horizons that are considered in your climate-related risk assessment. For example, if you only consider risks that may impact your business in the short term, in line with your definition of time horizons provided in C2.1a, you should select “short-term” here. Or, if you consider, short-term, medium-term and long-term horizons, select all three.
- In case none of the time horizons provided in C2.1a are covered by this risk management process, select “None of the above/ Not defined” and explain the applicable time horizon or why it is not defined in the column “Description”
Description (column 5)
- Describe your process for identifying, assessing and responding to climate-related risks and opportunities, including:
- The process used to determine which risks and opportunities could have a substantive financial or strategic impact on the organization;
- How your organization makes decisions to mitigate, transfer, accept or control the identified climate-related risks and to capitalize on opportunities.
Note for financial services sector companies:
- This question is asking about the processes used to identify, assess and respond to climate-related risks and opportunities within your lending, financial intermediary, investment and/or insurance underwriting activities, in addition to your operational risks. Organizations should consider providing a description of their risks and opportunities by sector and/or geography, as appropriate.
- Upstream and downstream risks should reflect the risks in your client and/or investment value chain, in addition to your operations. The downstream risks of your value chain relate to the risks for your clients and investee companies, while upstream risks include other transition risks that provide value to your products, services and/or investments e.g. policy and legal, market or technology.
- In the column “Description”, state what tools you use to identify, assess and/or respond to climate-related risks and opportunities.
- Banks:
- Include descriptions of how you manage any significant concentrations of credit exposure to carbon-related assets and other climate-related risks (transition and physical) in lending and other financial intermediary business activities.
- Include a description of the processes used for managing climate-related physical, transition and liability risks on re-/insurance portfolios by geography, business division, or product segments.
- Describe key tools or instruments, such as risk models, used to manage climate-related risks in relation to product development and pricing.
- Describe the range of climate-related events considered and how the risks generated by the rising propensity and severity of such events are managed.
- Additionally, as an asset owner, please describe how you consider the positioning of your total investment portfolio with respect to the transition to a lower-carbon energy supply, production, and use. This could include explaining how you are actively managing your portfolios’ positioning in relation to this transition.
- Describe how you manage material climate-related risks for each product or investment strategy. If appropriate, describe how climate-related risks are integrated into your overall risk management.
Explanation of Terms
- Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).
(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?
Question dependencies
This question only appears if you select "Yes" in C2.1.
Change from 2020
No change
Rationale
Data users need to know which risk types are considered in climate-related risk assessments. Not all risk types are relevant to each organization. The aim of this question is to ascertain how thoroughly companies examine multiple risk types as an indication of the comprehensiveness of the risk assessment.
Connection to other frameworks
TCFD
Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.
Response options
Please complete the following table:
Risk type
|
Relevance & inclusion
|
Please explain
|
Current regulation
|
Select from:
- Relevant, always included
- Relevant, sometimes included
- Relevant, not included
- Not relevant, included
- Not relevant, explanation provided
- Not evaluated
|
Text field [maximum 2,500 characters]
|
Emerging regulation
|
|
|
Technology
|
|
|
Legal
|
|
|
Market
|
|
|
Reputation
|
|
|
Acute physical
|
|
|
Chronic physical
|
|
|
Requested content
Please explain (column 3)
- Your response should explain:
- Your decision on the relevance and inclusion of this risk type in your risk assessment.
- For every risk type deemed relevant, an example of a specific risk considered in your assessment.
- If you choose ‘Not relevant, explanation provided’: why this risk type is not deemed relevant.
Note for financial services sector companies:
- Consider which climate-related risks are relevant to your lending, investment, insurance underwriting and/or financial intermediary activities, in addition to your operational risks.
- Consider characterizing your climate-related risks in the context of traditional industry risk categories such as credit risk, market risk, liquidity risk, and operational risk.
- Banks:
- Describe climate-related risks (transition and physical) in lending and other financial intermediary business activities by geography, industry, credit quality or average tenor.
- Describe climate-related risks on re-/insurance portfolios by geography, business division, or product segments, including the following risks:
- Physical risks from changing frequencies and intensities of weather-related perils;
- Transition risks resulting from a reduction in insurable interest due to a decline in value, changing energy costs, or implementation of carbon regulation; and
- Liability risks that could intensify due to a possible increase in litigation. For example, the risk of an increase in claims for defense costs in relation to directors and officers (D&O) liability.
- Additionally, as an asset owner, please also describe the climate-related risks relevant to your investment portfolio.
- Describe the climate-related risks relevant to your product or investment strategy by geography, industry, or product segment.
Explanation of terms
- Climate-related risks: TCFD divides climate-related risks into two major categories: risks related to the transition to a lower-carbon economy and risks related to the physical impacts of climate change.
- Transition risks
- Current and emerging regulation: policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change;
- Technology: all risks associated with technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic system;
- Legal: all climate-related litigation claims;
- Market: all shifts in supply and demand for certain commodities, products, and services;
- Reputation: all risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy.
- 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.
Questions C-FS2.2b to C-FS2.2f only apply to organizations with activities in the Financial Services sector.
(C2.2g) Why does your organization not have a process in place for identifying, assessing, and responding to climate-related risks and opportunities, and do you plan to introduce such a process in the future?
Question dependencies
This question only appears if you select “No” in response to C2.1.
Change from 2020
No change
Rationale
A thorough risk and opportunity assessment is integral to addressing climate-related issues. Therefore data users want to understand why your company does not carry out such assessments, as well as any plans to do so in the future. Without a process for managing risks and opportunities, companies may be unable to determine the best ways to prepare for future uncertainties and liabilities, or to capitalize on available opportunities.
Response options
Please complete the following table:
Primary reason | Please explain |
Select from: - We are planning to introduce a climate-related risk management process in the next two years
- Important but not an immediate business priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- Insufficient data on operations
- No instruction from management
- Other, please specify
| Text field [maximum 1,500 characters] |
Requested content
Primary reason (column 1)
- Select the primary reason why your company does not have a process in place to identify, assess, and respond to climate-related issues.
- Select only one option from the drop-down menu. If multiple options reasonably apply to your company, explain any additional reasons in column 2.
- If you select “Other, please specify”, provide a label for the primary reason.
Please explain (column 2)
- Ensure your explanation is company-specific and provides additional details as to why you do not have a process in place, including any specific plans to create a process and the anticipated timeline for its creation. For instance, you may include details on how you are exploring creating a process, using concrete examples from your company’s experience.
- Please also include details of how climate-related risks are addressed as they do arise (such as environmental legislation, weather-related events, or reputational risks related to climate change). Include company-specific examples in your description.
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 2020
No change
Rationale
Investors and data users are interested in learning whether your organization has knowledge at the corporate level of any substantive climate-related risks, across any part of your value chain.
Connection to other frameworks
TCFD
Strategy recommended disclosure a) Describe the climate related risks and opportunities the organization has identified over the short, medium, and long term.
SDG
Goal 13: Climate action
Response options
Select one of the following options:
Requested content
General
- Please indicate if you have identified any inherent climate-related risks.
- For the purposes of this response, the risks reported should only be those which:
- May pose substantive financial or strategic impacts, in line with your definition of substantive impact provided in C2.1b; and
- Are inherent (risks that exist in the absence of controls, i.e. not taking into account any potential mitigation or management measures that have been or could be implemented).
Note for financial services sector companies:
- For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities. Further details can be provided in subsequent questions.
(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.
Question dependencies
This question only appears if you select “Yes” in response to C2.3.
Change from 2020
No change
Rationale
Your response to this question will allow data users to see, in one place, details of the risks posed to your organization by climate-related issues, and also the estimated potential financial impact of these risks at the corporate level and your response strategy to manage these risks.
Connection to other frameworks
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. 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.
Identifier
|
Where in the value chain does the risk driver occur?
|
Risk type
|
Primary climate-related risk driver
|
Primary potential financial impact
|
[Financial services only]
Climate risk type mapped to traditional financial services industry risk classification
|
Company- specific description
|
Time horizon
|
Select from:
|
Select from:
- Direct operations
- Upstream
- Downstream
|
Select from:
- Current regulation
- Emerging regulation
- Legal
- Technology
- Market
- Reputation
- Acute physical
- Chronic physical
|
See drop-down options below
|
See drop-down options below
|
Select from:
- Capital adequacy and risk-weighted assets
- Liquidity risk
- Funding risk
- Market risk
- Credit risk
- Reputational risk
- Policy and legal risk
- Systemic risk
- Operational risk
- Strategic risk
- Other non-financial risk
- None
|
Text field [maximum 2,500 characters]
|
Select from:
- Short-term
- Medium-term
- Long-term
- Unknown
|
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
|
Cost of response to risk
|
Description of response and explanation of cost calculation
|
Comment
|
Text field [maximum 2,500 characters]
|
Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2.500 characters]
|
[Add Row]
Primary climate-related risk driver drop-down options (column 4)
Select one of the following options:
Current regulation
- Carbon pricing mechanisms
- Enhanced emissions-reporting obligations
- Mandates on and regulation of existing products and services
- Regulation and supervision of climate-related risk in the financial sector [Financial services only]
- Other, please specify
Emerging regulation
- Carbon pricing mechanisms
- Enhanced emissions-reporting obligations
- Mandates on and regulation of existing products and services
- Regulation and supervision of climate-related risk in the financial sector [Financial services only]
- Other, please specify
Legal
- Exposure to litigation
- Regulation and supervision of climate-related risk in the financial sector [Financial services only]
- Lending that could create or contribute to systemic risk for the economy [Financial services only]
- Investing that could create or contribute to systemic risk for the economy [Financial services only]
- Insurance underwriting that could create or contribute to systemic risk for the economy [Financial services only]
- Other, please specify
Technology
- Substitution of existing products and services with lower emissions options
- Unsuccessful investment in new technologies
- Transitioning to lower emissions technology
- Other, please specify
|
Market
- Changing customer behavior
- Uncertainty in market signals
- Increased cost of raw materials
- Inability to attract co-financiers and/or investors due to uncertain risks related to the climate [Financial services only]
- Loss of clients due to a fund’s poor environmental performance outcomes (e.g. if a fund has suffered climate-related write-downs) [Financial services only]
- Contraction of insurance markets, leaving clients exposed and changing the risk parameters of the credit [Financial services only]
- Rise in risk-based pricing of insurance policies (beyond demand elasticity) [Financial services only]
- Other, please specify
Reputation
- Shifts in consumer preferences
- Stigmatization of sector
- Increased stakeholder concern or negative stakeholder feedback
- Lending that could create or contribute to systemic risk for the economy [Financial services only]
- Investing that could create or contribute to systemic risk for the economy [Financial services only]
- Insurance underwriting that could create or contribute to systemic risk for the economy [Financial services only]
- Negative press coverage related to support of projects or activities with negative impacts on the climate (e.g. GHG emissions, deforestation, water stress) [Financial services only]
- Other, please specify
Acute physical
- Increased severity and frequency of extreme weather events such as cyclones and floods
- Increased likelihood and severity of wildfires
- Other, please specify
Chronic physical
- Changes in precipitation patterns and extreme variability in weather patterns
- Rising mean temperatures
- Rising sea levels
- Deforestation [Financial services only]
- Water stress [Financial services only]
- Other, please specify
|
Primary potential financial impact drop-down options (column 5)
Select one of the following options:
- Increased direct costs
- Increased indirect (operating) costs
- Increased capital expenditures
- Increased credit risk
- Increased insurance claims liability
- Decreased revenues due to reduced demand for products and services
- Decreased revenues due to reduced production capacity
- Decreased access to capital
- Decreased asset value or asset useful life leading to write-offs, asset impairment or early retirement of existing assets
- Reduced profitability of investment portfolios [Financial services only]
- Devaluation of collateral and potential for stranded, illiquid assets [Financial services only]
- Other, please specify
Requested content
General
- For the purposes of this response, the risks reported should only be those which may pose inherently substantive impacts in your business operations, revenue, or expenditure, regardless of whether or not the company has taken action to mitigate the risk(s).
Identifier (column 1)
- Select a unique identifier from the drop down menu provided to identify the risk in subsequent questions, if required, and to track the status of the risk in subsequent reporting years. Please select from Risk1-Risk100 and use the same identifier in subsequent years for the same risk. For any new risks you are adding, always use a new identifier that you have not used previously.
Where in the value chain does the risk driver occur? (column 2)
- Upstream value chain refers to activities, products and services that are inputs to the activities of your business, sourced from third parties. This may include the regulations and policies applied by governments; the products and services provided by your suppliers (i.e. the supply chain).
- Downstream value chain refers to the third parties benefiting from the outputs, products and services of your business activities. This may be your customers and clients, or the organizations and projects your business invests in.
Note for financial services sector companies:
- Value chain: Upstream and downstream risks should reflect the risks in your customer and/or investment value chain, in addition to your operations. The downstream risks of your value chain relate to the risks for your clients/investee companies, while upstream risks include other transition risks that provide value to your products, services and/or investments e.g. policy and legal, market or technology.
Risk type (column 3)
- See explanation of terms for definitions of risk types.
- Note that a selection must be made for both column 3 and column 4. Your data will not be saved if either column is left blank.
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.
- Note that a selection must be made for both column 3 and column 4. Your data will not be saved if either column is left blank.
Primary potential financial impact (column 5)
- This column refers to the potential financial impact that the risk could have on your organization. The financial impacts of climate-related issues on organizations are not always clear or direct, and for many organizations there might be more than one financial impact associated with a climate-related risk. Select the option from the drop-down menu that you evaluate as having the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 14).
Climate risk type mapped to traditional financial services industry risk classification [Financial services only]
- In this column consider how climate-related risks fit into your already existing organizational framework. Consider where in your traditional industry risk framework you classify the potential financial impact of the climate risk. As per the TCFD supplemental guidance to financial institutions, “Banks should consider characterizing their climate-related risks in the context of traditional banking industry risk categories such as credit risk, market risk, liquidity risk, and operational risk.” If an identified risk maps to multiple risk categories, choose the primary risk category.
Company-specific description (column 6)
- Provide further contextual information on the risk driver, including more detail on the exact nature, location and/or regulation of the effect concerned, as well as any notable geographic/regional examples.
- Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations specific to your company’s business or operations.
Likelihood (column 8)
- The likelihood of the impact occurring along with the magnitude of the impact are the building blocks of a risk/opportunity matrix – a common method of identifying and prioritizing risk and opportunities.
- The likelihood refers to the probability of the impact to your business occurring within the time horizon provided, which in the case of an inherent risk might be similar to the probability of the climate event itself.
- For example, if the risk relates to a piece of new legislation which has already been prepared in draft form, the likelihood of the impact associated with that risk occurring will be relatively high.
Magnitude of impact (column 9)
- The magnitude describes the extent to which the impact, if it occurred, would affect your business. You should consider the business as a whole and therefore the magnitude can reflect both the damage that may be caused and the exposure to that potential damage.
- For example, two companies may have identical facilities located on a coast in an area which is vulnerable to sea level rise. However, if company A relies on that facility for 90% of its production capacity and company B relies on it for only 40% of its production capacity, the magnitude of a sea level rise impact on company A will be comparatively higher than that on company B.
- It is not possible for CDP to accurately define terms for magnitude as they will vary from company to company. For example, a 1% reduction in profits will have different effects on different companies depending on the profit margins on which they work. Therefore, companies are asked to determine magnitude on a qualitative scale. Factors to consider include:
- The proportion of business units affected;
- The size of the impact on those business units; and
- The potential for shareholder or customer concern.
Are you able to provide a potential financial impact figure? (column 10)
- Your selection will determine whether columns 11,12, and 13 will be presented.
- It is acknowledged that these figures will be estimates.
- If you are unable to provide a figure for a financial impact, you may use column 14 "Explanation of financial impact" to provide a description of the impact in relative terms; for example, as a percentage relative to a stated or publicly available figure, or give a qualitative estimate of the financial impact.
Potential financial impact figure (currency) (column 11)
- Provide a single figure for the inherent financial impact of the risks (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
- An example would be the cost of destruction of facilities from extreme weather (before taking into consideration how much insurance coverage you have).
Potential financial impact figure - minimum/maximum (currency) (columns 12, 13)
- Provide the estimated range for the inherent financial impact (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
- Potential financial impact figure – minimum (currency): Use this field to report the lower point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘5,000’ should be reported here.
- Potential financial impact figure – maximum (currency): Use this field to report the upper point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘50,000’ should be reported here.
Explanation of financial impact figure (column 14)
- Use this open text field to explain the figure provided in the “Potential financial impact” (columns 10, 11, 12);
- Describe how you arrived at this figure (or range), including:
- What approach was employed to calculate the figure;
- The figures used in your calculation;
- Any assumption the figure is dependent on.
- If "We do not have this figure" was selected in column 10, use this column to provide a description of the financial impact in relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.
- You can also describe here other financial impacts of the selected climate-related risk (other than the main impact identified in column 5), and provide more details on the nature of the impact in case you selected “Other, please specify” in column 5.
Cost of response to risk (column 15)
- Provide a quantitative figure for the cost of your risk response actions. If there are no costs to responding to the risk, enter 0.
- If you cannot provide 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.
Description of response and explanation of cost calculation (column 16)
- Provide details of your organization’s response to mitigate, control, transfer or accept the risk.
- Include an example of company-specific risk responses actions (activities, projects, products and/or services).
- Provide an explanation of how the figure for the cost of managing the risk (in column 15) was calculated, including the figures used in your calculation.
Comment (column 17) (optional)
- You can use this text field to enter any additional relevant information.
Note for oil and gas sector companies:
- In answering the questions above, please consider the impact of national and international emissions targets and how those could affect demand for oil and gas products. Will they lead to your company having a less carbon-intensive fuel mix? Will fuel efficiency standards affect the demand for fuel? Are there other instances where demand is likely to reduce due to regulation?
- Is your company affected by other types of regulation such as restrictions on flaring, or by requirements for a certain level of climate-related performance in order to receive permission to operate and/or as a condition of accessing new oil & gas resources? (e.g. a requirement for carbon sequestration).
- Companies are encouraged to include these drivers in the response to this question and explain how their portfolio of reserves is evolving in response to these drivers (in the Comment column).
Note for electric utility sector companies:
- Electric utilities are asked to consider, among other issues:
- How national and international targets on demand management might affect demand for electricity;
- The impacts of related policies such as building regulations specifying more energy-efficient buildings;
- Policies to increase renewable electricity supply or to support developments that may result in GHG emissions reductions, e.g. CO2 capture and storage, clean coal technologies and energy storage;
- The impacts of any emissions trading schemes and any emissions reduction targets you have set or with which you have to comply, including the analysis of possible scenarios and their effect on the company;
- The effects on wholesale and retail power prices of carbon prices in the different markets in which you operate and the extent to which carbon prices are passed through, or may in the future be passed through, into electricity prices in the markets, based on current and anticipated regulatory requirements.
Note for auto and auto component manufacturing companies:
- Please consider the financial and strategic implications of current and planned national, regional, and international policies for increasing automobile fuel efficiency and developing “clean” engines for each of the markets in which you operate. You should also consider how other related environmental policies, such as regulations and standards regarding air quality, use of alternative fuels, and sustainable mobility could further impact your business.
- Specifically, you should take into account how climate change policy could impact you in terms of sales, the financial cost of any loss or potential loss of market share, additional costs of complying with regulation and, if applicable, how you have or will pass increased costs down the value chain.
Note for agricultural sector companies:
- Agricultural companies should report on risks that may affect the revenue associated with the agricultural/forestry, processing/manufacturing and/or distribution. These risk are often driven by:
- Physical factors, e.g. extreme weather events that disrupt production/supply of raw materials.
- Changes in regulation pertaining to agricultural, processing, manufacturing, distribution and/or consumption activities.
- Changes in consumer demands and new market trends
Note for companies with coal reserves:
Note for financial services sector companies:
- For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities, regardless of whether any action has been taken to respond to the risk(s).
- Consider providing a description of risks by sector and/or geography, as appropriate. This can be provided in the "Company-specific description" (column 6).
- Both physical and transition risks in your investing, financing, underwriting, and/or operational activities should be considered, including the risk of stranded assets. These are assets that are no longer economically viable as a result of climate-related transition or physical risks.
- Banks:
- Banks should describe significant concentrations of credit exposure to carbon-related assets.
- Additionally, banks should consider disclosing their climate-related risks (transition and physical) in their lending and other financial intermediary business activities.
- Insurance companies should consider climate-related risks on re-/insurance portfolios by geography, business division, or product segments, including the following risks:
- Physical risks from changing frequencies and intensities of weather-related perils;
- Transition risks resulting from a reduction in insurable interest due to a decline in value, changing energy costs, or implementation of carbon regulation; and
- Liability risks that could intensify due to a possible increase in litigation. For example, the risk of an increase in claims for defense costs in relation to directors and officers (D&O) liability.
- Additionally, as an asset owner, please also describe the climate-related risks relevant to your investment portfolio.
- Asset managers should consider climate-related risks for each product or investment strategy.
Note for real estate companies:
- Since real estate is a location-bound and a long-term investment, it is highly exposed to climate-related risks. Commercial real
estate companies should consider stranding risks - the devaluation or
non-performance of assets, thus making them ‘stranded’.
- Stranded assets may be subject to write-downs due to:
- Demand shifts towards sustainable properties, putting pressure on ‘non-green’ assets;
- Higher exposure to acute physical risks (storms, flooding, wildfires, etc.);
Notes for capital goods sector companies:
- All the end markets supplied to by the capital goods sector face increasing regulation and decarbonization targets; from building standards to mandated technologies for power generation. Companies in this sector are therefore indirectly exposed to risks in their value chain, and should consider, among other issues, risks associated with:
- Carbon pricing regulation and stricter emissions constraints on products and services;
- Shifts in end-market demand away from fossil fuel dependent technologies.
Explanation of terms
- Climate-related risks: TCFD divides climate-related risks into two major categories: risks related to the transition to a lower-carbon economy and risks related to the physical impacts of climate change.
- Transition risks
- Current and emerging regulation – policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change;
- Technology – all risks associated with technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic system;
- Legal – all climate-related litigation claims;
- Market – all shifts in supply and demand for certain commodities, products, and services;
- Reputation – all risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy.
- Acute – risks that are event-driven, including increased severity of extreme weather events, such as cyclones, hurricanes, or floods;
- Chronic – longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves.
- Likelihood: The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 reports. They are associated with probabilities, indicating the percentage likelihood of the event occurring. It is not necessary for respondents to have calculated probabilities for the risks they are considering, however they can give an indication as to the meaning of the terms:
- Virtually certain: 99–100% probability
- Very likely: 90–100%;
- Likely: 66–100%;
- More likely than not: 50–100%;
- About as likely as not: 33–66%;
- Unlikely: 0–33%;
- Very unlikely: 0-10%;
- Exceptionally unlikely: 0–1%.
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Capital expenditure: A measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
- Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
- Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.
(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 2020
No change
Rationale
A risk assessment may identify no substantive climate-related risks. This conclusion is important to disclose and explain. Knowing why your organization has concluded that it is not exposed to risks is crucial for data users to understand your business.
Response options
Please complete the following table:
Primary reason
|
Please explain
|
Select from:
- Risks exist, but none with potential to have a substantive financial or strategic impact on business
- Evaluation in process
- Not yet evaluated
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
Primary reason (column 1)
- Select the reason that best describes why you consider your organization to not be exposed to climate-related risks with the potential to have a substantive financial or strategic impact on your business, given your definition of substantive as reported in C2.1b.
Please explain (column 2)
- Your explanation should include company-specific details such as your evaluation process or specific reasons why you have not yet conducted a risk assessment or why there are no climate-related risks to your organization.
Opportunity disclosure
(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?
Change from 2020
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
Note for financial services sector companies:
- For the purposes of this response, the opportunities reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities. Further details can be provided in subsequent questions.
(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business.
Question dependencies
This question only appears if you select “Yes” in response to C2.4.
Change from 2020
No change
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. 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.
Identifier
|
Where in the value chain does the opportunity occur?
|
Opportunity type
|
Primary climate-related opportunity driver
|
Primary potential financial impact
|
Company-specific description
|
Time horizon
|
Select from:
|
Select from:
- Direct operations
- Upstream
- Downstream
|
Select from:
- Resource efficiency
- Energy source
- Products and services
- Markets
- Resilience
|
See drop-down options below
|
See drop-down options below
|
Text field [maximum 2,500 characters]
|
Select from:
- Short-term
- Medium-term
- Long-term
- Unknown
|
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
|
Cost to realize opportunity
|
Strategy to realize opportunity and explanation of cost calculation
|
Comment
|
Text field [maximum 2,500 characters]
|
Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
[Add Row]
Primary climate-related opportunity driver drop-down options (column 4)
Select one of the following options:
Resource efficiency
- Use of more efficient modes of transport
- Use of more efficient production and distribution processes
- Use of recycling
- Move to more efficient buildings
- Reduced water usage and consumption
- Other, please specify
Energy source
- Use of lower-emission sources of energy
- Use of supportive policy incentives
- Use of new technologies
- Participation in carbon market
- Shift toward decentralized energy generation
- Other, please specify
|
Products and services
- Development and/or expansion of low emission goods and services
- Development of climate adaptation, resilience and insurance risk solutions
- Development of new products or services through R&D and innovation
- Ability to diversify business activities
- Shift in consumer preferences
- Reputational benefits resulting in increased demand for goods/services [Financial services only]
- Other, please specify
Markets
- Access to new markets
- Use of public-sector incentives
- Access to new assets and locations needing insurance coverage
- Increased diversification of financial assets (e.g., green bonds and infrastructure) [Financial services only]
- Increased sales of liability and other insurance to cover climate-related risks [Financial services only]
- Reduced risk of asset stranding considered in investment decision making [Financial services only]
- More timely preparation for investors in adhering to current and potentially stricter future regulation in relation to fiduciary duty [Financial services only]
- Increased demand for funds that invest in companies that have positive environmental credentials [Financial services only]
- Enhanced financial performance of investee companies as a result of being able to access new markets and develop new products to meet green consumer demand [Financial services only]
- The development of new revenue streams from new/emerging environmental markets and products [Financial services only]
- Improved ratings by sustainability/ESG indexes [Financial services only]
- Other, please specify
Resilience
- Participation in renewable energy programs and adoption of energy-efficiency measures
- Resource substitutes/diversification
- New products and services related to ensuring resiliency [Financial services only]
- Increased reliability, climate- resilience of investment chain [Financial services only]
- Other, please specify
|
Primary potential financial impact drop-down options (column 5)
Select from the following options:
- Reduced direct costs
- Reduced indirect (operating) costs
- Increased revenues resulting from increased demand for products and services
- Increased revenues through access to new and emerging markets
- Increased revenues resulting from increased production capacity
- Increased access to capital
- Increased value of fixed assets
- Increased diversification of financial assets
- Increased portfolio value due to upward revaluation of assets [Financial services only]
- Returns on investment in low-emission technology
- Other, please specify
Requested content
General
- For the purposes of this response, the opportunities identified should only be those which may pose substantive impacts in your business operations, revenue, or expenditure.
Identifier (column 1)
- Select a unique identifier from the drop down menu provided to identify the opportunity in subsequent questions, if required, and to track the status of the opportunity in subsequent reporting years. Please select from Opp1-Opp100 and use the same identifier in subsequent years for the same opportunity. For any new opportunities you are adding, always use a new identifier that you have not used previously.
Where in the value chain does the opportunity occur? (column 2)
- Upstream value chain refers to activities, products and services that are inputs to the activities of your business, sourced from third parties. This may include the regulations and policies applied by governments; the products and services provided by your suppliers (i.e. the supply chain).
- Downstream value chain refers to the third parties benefiting from the outputs, products and services of your business activities. This may be your customers and clients, or the organizations and projects your business invests in.
Opportunity type (column 3)
- Select an option from the drop-down menu that best describes the type of the identified opportunity:
- Resource efficiency – opportunities related to improving resource efficiency across production and distribution processes, buildings, machinery/appliances, and transport/mobility.
- Energy source - opportunities related to shifting energy usage toward low emission energy sources.
- Products and services - opportunities related to innovation and development of new low-emission and climate adaptation products and services.
- Markets – opportunities in new markets or types of assets that may help organizations to diversify their activities and better position themselves for the transition to a lower-carbon economy.
- Resilience – opportunities related to the development of adaptive capacity to respond to climate change. They may be especially relevant for organizations with long-lived fixed assets or extensive supply or distribution networks; those that depend critically on utility and infrastructure networks or natural resources in their value chain; and those that may require longer-term financing and investment.
Primary climate-related opportunity driver (column 4)
- Opportunity driver describes the source of the opportunity and will depend on the opportunity type selected in column 3. Select an option from the drop-down menu that best describes the identified opportunity. If you select “Other”, please provide further details in column Company-specific description (6).
Primary potential financial impact (column 5)
- This column refers to the potential financial impact that the opportunity could have on your organization. The financial impacts of climate-related opportunities on organizations are not always clear or direct, and for many organizations there might be more than one financial impact associated with a climate-related opportunity;
- Select the option that you deem to have the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 14);
Company-specific description (column 6)
- Provide further context on the opportunity driver, including more detail on the exact nature, location, and/or regulation of the effect concerned, as well as any notable geographic/regional examples.
- Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations specific to your company’s business or operations.
Likelihood 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).
- Describe how you arrived at this figure (or range), including:
- What approach was employed to calculate the figure;
- The figures used in your calculations;
- Any assumptions the figure is dependent on.
- If ‘We do not have this figure’ was selected in column 10, use this column to provide a description of the financial impact in relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.
- You can also describe here other financial impacts of the selected climate-related opportunity (other than the main impact identified in column 5), and provide more details on the nature of the impact in case you selected “Other, please specify” in column 5.
Cost to realize opportunity (column 15)
- Provide numerical data on the cost to realize opportunity. If there are no costs to this, enter 0.
- If you cannot provide absolute values you may provide a value in the “Comment” column (column 17).
Strategy to realize opportunity and explanation of cost calculation (column 16)
- Use this text field to provide information on methods you are using or plan to use to exploit the opportunity and maximize its potential realization. Make sure to include an example of company specific activities, projects, products and/or services which are aiming to realize the opportunity. Make sure to include:
- An example of company-specific activities, projects, products and/or services which are aiming to realize the opportunity; and
- An explanation of how the figure for the cost to realize opportunity (in column 15) was calculated, including the figures used in your calculation.
Comment (column 17) (optional)
- You can use this text field to enter any additional relevant information.
Note for electric utility sector companies:
- In answering the questions above, please consider:
- Opportunities that may arise from emissions trading;
- The opportunities that national or international targets on energy efficiency and demand management might present for your company e.g. revenue implications from energy services business units;
- Your company’s views on any opportunities that may result from policies on renewable energy or low emissions technologies e.g. current or planned investments in these areas; and
- The extent to which you receive financial incentives to reduce the electricity use of customers.
Note for agricultural sector companies:
- Agricultural companies should report on opportunities that the revenue associated with the agricultural/forestry, processing/manufacturing and/or distribution of raw materials and goods. For example, opportunities might arise from:
- Increased efficient by reducing energy use during the production of raw materials and/or the manufacture of food, beverage and other goods;
- Reduced costs due to carbon payments by adopting practices or technology to reduce carbon footprint;
- Government of private financial incentives for adoption low impact agriculture/forestry.
Note for financial services sector companies:
- Consider opportunities associated with products and services such as green bonds, green infrastructure, green loans/mortgages, green insurance products, products and services ensuring resiliency, specialty climate-related risk advisory services and others.
- You should consider providing a description of your opportunities by sector and/or geography, as appropriate.
Note for capital goods sector companies:
- In line with the TCFD’s recommendations, companies in this sector should consider opportunities for products or services that improve efficiency, reduce energy use and support closed-loop product solutions.
Explanation of terms
- Likelihood: The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 reports. They are associated with probabilities, indicating the percentage likelihood of the event occurring. It is not necessary for respondents to have calculated probabilities for the risks they are considering, however they can give an indication as to the meaning of the terms:
- Virtually certain: 99–100% probability;
- Very likely: 90–100%;
- Likely: 66–100%;
- More likely than not: >50–100%;
- About as likely as not: 33–66%;
- Unlikely: 0–33%;
- Very unlikely: 0-10%;
- Exceptionally unlikely: 0–1%.
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
- Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.
(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 2020
No change
Rationale
Investors and other data users are interested to know whether you are aware of climate-related opportunities. An explanation of why your organization has concluded that it is not exposed to opportunities is crucial for understanding your business strategy.
Response options
Please complete the following table:
Primary reason
|
Please explain
|
Select from:
- Opportunities exist, but we are unable to realize them
- Opportunities exist, but none with potential to have a substantive financial or strategic impact on business
- Evaluation in progress
- Judged to be unimportant
- No instruction from management to seek out opportunities
- Not yet evaluated
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
Primary reason (column 1)
- Select the reason that best describes why you consider your organization to not be exposed to climate-related opportunities with the potential to have a substantive financial or strategic impact on your business.
Please explain (column 2)
- Please explain further why there are no climate-related opportunities for your company or, if they exist, why you are unable to realize them;
- If relevant to your selection in column 1, please:
- Make reference to how you identified opportunities;
- Include how you have defined ‘substantive’ impact in the context of an opportunity, and reference the definition of substantive impact you gave in C2.1b if applicable;
- Describe when you will next repeat an assessment of opportunities;
- Include specific reasons why you have not yet conducted an opportunity assessment/why it is considered unimportant for your business;
- Provide any other company-specific details such as your evaluation process.
C3 Business strategy
Module Overview
CDP data users are interested in organizations’ forward-looking strategies and financial decisions that are driven by climate-related future market opportunities, public policy objectives, and corporate responsibilities. This module allows organizations to disclose whether they have acted upon integrating climate-related issues into their business strategy. The module includes questions on scenario analysis and transition planning which are important evolutions in strategic environmental planning.
Given the importance of forward-looking assessments of climate-related risks and opportunities, scenario analysis is an important and useful tool for an organization to use, both for understanding strategic implications of climate-related risks and opportunities, and for informing stakeholders of how the organization is positioning itself in recognition of these issues. It also can aid investors, lenders, and insurance underwriters in informing their own financial decision making.
Transition planning is also an important evolution of strategic environmental planning, and includes all the relevant changes that need to be made to the company’s business model before the company can adjust to a 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 your strategy between the reporting period and the time of submission of your CDP response. Where this is the case, you can include more up to date information in C-FI field at the end of the questionnaire. This will not be scored but will be available to 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.
Key changes
- New questions: C3.1a and C3.1b on low-carbon transition plans
- Modified guidance:
- C3.2a (2020 C3.1b) on details requested in column 2;
- C-FS3.6a (2020 C-FS3.2a) on portfolio coverage of policy (column 3).
Sector-specific content
Additional questions on low-carbon transition plan for the following high-impact sectors:
- Additional questions for FS sector companies.
Pathway diagram - questions
This diagram shows the general questions contained in module C3. To access question-level guidance, use the menu on the left to navigate to the question.
Business strategy
(C3.1) Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning?
Change from 2020
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 and the following questions allow organizations to disclose whether they have acted upon integrating climate-related risks and opportunities into their business strategy. Developing a low-carbon transition plan could provide certainty to investors, and other stakeholders, that a company is aligning to the long-term climate goals and that its business model will continue to be relevant in a net-zero carbon economy.
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, and we have developed a low-carbon transition plan
- Yes
- No
Requested content
General
- You should answer “Yes, and we have developed a low-carbon transition plan” if you have developed a low-carbon transition plan - a plan on how to transition the company to a business model compatible with a net-zero carbon economy. See “Explanation of Terms” below for more details.
- You should answer “Yes” if climate-related risks and opportunities have already impacted your strategy or financial planning. 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.
- You should answer “No” if climate-related risks and opportunities have had no influence on your company’s overall strategy for developing your business or your financial planning. You will have the opportunity to explain further in C3.1g.
Note for financial services sector companies:
- You should answer “Yes” when one of the following considerations have influenced your strategy and/or financial planning:
- The need to understand how climate-related risks and opportunities 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.
Explanation of terms
- Strategy: In line with the TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.
- Financial planning: In line with the TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
- Low-carbon transition plan: A plan on how to transition the company to a business model compatible with a net-zero carbon economy. The Oxford Martin Net Zero Carbon Investment Initiative proposes a set of principles to facilitate engagement between investors and companies on long-term climate strategies. According to these principles, companies should: (1) Commit to a timeframe to reach net-zero emissions in line with the Paris goals; (2) Demonstrate that they will be able to continue to be profitable once they reach net-zero emissions; and (3) Set quantitative mid-term targets to be able to demonstrate progress against their long-term goals.
The transition plan defines how the business model, its associated products and production methods, growth strategy and capital investments need to develop over time to respond to climate-related risks and to capitalize on opportunities. A transition plan is therefore a plan that outlines how a company will transition from where it is now to where it needs to get to in order to thrive in a net-zero carbon world in the future.
(C3.1a) Is your organization’s low-carbon transition plan a scheduled resolution item at Annual General Meetings (AGMs)?
Question dependencies
This question only appears if you select “Yes, and we have developed a low-carbon transition plan” in response to C3.1.
Change from 2020
New question
Rationale
Including the company’s low-carbon transition plan as a scheduled AGM agenda item allows shareholders to review and raise resolutions related to progress. This question allows companies to demonstrate transparency over their transition plans and helps investors, and other stakeholders, to assess the extent to which a company is committed to aligning its business model for success in a net-zero carbon economy.
Response options
Please complete the following table:
Is your low-carbon transition plan a scheduled resolution item at AGMs?
|
Comment
|
Select from:
- Yes
- No, and we do not intend it to become a scheduled resolution item within the next two years
- No, but we intend it to become a scheduled resolution item within the next two years
- No, we do not hold AGMs
|
Text field [maximum 2,400 characters]
|
Requested content
Comment (column 2) (optional)
- You may provide any additional information to clarify your selection in Column 1, for example, why you do not hold AGMs.
Explanation of terms
- Low-carbon transition plan: A plan on how to transition the company to a business model compatible with a net-zero carbon economy. The Oxford Martin Net Zero Carbon Investment Initiative proposes a set of principles to facilitate engagement between investors and companies on long-term climate strategies. According to these principles, companies should: (1) Commit to a timeframe to reach net-zero emissions in line with the Paris goals; (2) Demonstrate that they will be able to continue to be profitable once they reach net-zero emissions; and (3) Set quantitative mid-term targets to be able to demonstrate progress against their long-term goals.
The transition plan defines how the business model, its associated products and production methods, growth strategy and capital investments need to develop over time to respond to climate-related risks and to capitalize on opportunities. A transition plan is therefore a plan that outlines how a company will transition from where it is now to where it needs to get to in order to thrive in a net-zero carbon world in the future.
- Annual General Meeting (AGM): (or annual shareholder meeting) is a yearly gathering between the shareholders of a company and its board of directors. It is primarily held to enable shareholders to vote on company issues, including the selection of the company's board of directors.
(C3.1b) Does your organization intend to publish a low-carbon transition plan in the next two years?
Question dependencies
This question only appears if you select “Yes” in response to C3.1.
Change from 2020
New question
Rationale
Publishing a low-carbon transition plan helps investors, and other stakeholders, to assess whether a company is aligning its business model for success in a net-zero carbon economy. This question allows companies to demonstrate transparency over their transition plans.
Response options
Please complete the following table:
Intention to publish a low-carbon transition plan
|
Intention to include the transition plan as a scheduled resolution item at Annual General Meetings (AGMs)*
|
Comment
|
Select from:
- Yes, in the next two years
- No, we do not intend to publish a low-carbon transition plan in the next two years
|
Select from:
- Yes, we intend to include it as a scheduled AGM resolution item
- No, we do not intend to include it as a scheduled AGM resolution item
- No, we do not hold AGMs
|
Text field [maximum 2,400 characters]
|
*This column only appears if you select “Yes, in the next two years” in Column 1.
Requested content
Comment (column 2) (optional)
- You may provide any additional information to clarify your response; for example, why you do not intend to publish a low-carbon transition plan.
Explanation of terms
- Low-carbon transition plan: A plan on how to transition the company to a business model compatible with a net-zero carbon economy. The Oxford Martin Net Zero Carbon Investment Initiative proposes a set of principles to facilitate engagement between investors and companies on long-term climate strategies. According to these principles, companies should: (1) Commit to a timeframe to reach net-zero emissions in line with the Paris goals; (2) Demonstrate that they will be able to continue to be profitable once they reach net-zero emissions; and (3) Set quantitative mid-term targets to be able to demonstrate progress against their long-term goals.
The transition plan defines how the business model, its associated products and production methods, growth strategy and capital investments need to develop over time to respond to climate-related risks and to capitalize on opportunities. A transition plan is therefore a plan that outlines how a company will transition from where it is now to where it needs to get to in order to thrive in a net-zero carbon world in the future.
- Annual General Meeting (AGM): (or annual shareholder meeting) is a yearly gathering between the shareholders of a company and its board of directors. It is primarily held to enable shareholders to vote on company issues, including the selection of the company's board of directors.
(C3.2) Does your organization use climate-related scenario analysis to inform its strategy?
Question dependencies
This question only appears if you select “Yes, and we have developed a low-carbon transition plan” or "Yes" in response to C3.1.
Change from 2020
No change (2020 C3.1a)
Rationale
Your disclosure provides 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 frameworks
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
- Yes, qualitative, but we plan to add quantitative in the next two years
- No, but we anticipate using qualitative and/or quantitative analysis in the next two years
- No, and we do not anticipate doing so in the next two years
Requested content
General
- Please state if your organization uses climate-related scenario analysis to inform its 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 the 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
Industry examples of scenario analysis - Shell, BP, Mercer, BHP Billiton, BIER’s Future Scenarios Toolkit
(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Question dependencies
This question only appears if you select “Yes, qualitative”, “Yes, quantitative”, “Yes, qualitative and quantitative” or “Yes, qualitative, but we plan to add quantitative in the next two years” in response to C3.2.
Change from 2020
Modified guidance (2020 C3.1b)
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 and models applied |
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
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Text field [maximum 4,000 characters]
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[Add Row]
Requested content
Climate-related scenarios and models applied (column 1)
- Select all the scenarios and models applied in your scenario analysis.
- Using a 2°C or lower scenario in addition to two or three other scenarios most relevant to your organization’s circumstances is recommended.
Details (column 2)
Include in your response:
- How the selected scenario(s) were identified, with reference to the inputs, assumptions and analytical methods used;
- Time horizon(s) considered and why they are relevant to your organization;
- The areas of your organization considered as part of the scenario analysis;
- A company-specific summary of the results of the scenario analysis conducted, and how these results have informed your business objectives and strategy;
- A case study of how the results of scenario analysis have directly influenced your business objectives and strategy.
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.
Note for financial services sector companies:
- State if your organization uses climate-related scenario analysis to understand the impact of climate-related issues on lending, financial intermediary, investment and/or insurance underwriting activities, in addition to operational activities.
- Both physical and transition pathway risks should be considered in your scenario analysis.
- Banks:
- Banks are encouraged to select the “REMIND” and “MESSAGE-GLOBIOM” scenarios to describe their assessment of credit risk and opportunity, as performed by 16 banks of the UNEP FI working group to pilot the TCFD recommendations.
- Asset managers should consider describing how they use climate-related scenarios, for example to better understand how climate-related issues inform relevant products or investment strategies.
- Insurance companies that perform climate-related scenario analysis on their underwriting activities should provide the following information:
- Description of the climate-related scenarios used, including the critical input parameters, assumptions and considerations, and analytical choices;
- Information on the time frames used for the climate-related scenarios, including short-, medium-, and long-term milestone; and
- Companies with substantial exposure to weather-related perils should consider a greater than 2°C scenario to account for physical effects of climate change.
- As asset owners, insurance companies that perform scenario analysis should consider providing a discussion of how climate-related scenarios are used, such as to inform investments in specific assets.
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 “Energy Technology Perspectives”, providing scenario analysis based on the development of lower carbon technology and its deployment in various sectors. The IEA ETP 2DS sets out an energy system development pathway and an emissions trajectory consistent with at least a 50% chance of limiting the average global temperature rise to 2°C. 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 realizing a 50% chance of limiting warming to a 2°C rise by 2100 (originally based upon a projected warming limit of 2°C through limiting the concentration of GHG’s to around 450ppm of CO2 equivalent), and offers steps by which that goal might be achieved. 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 decarbonized energy system by 2050 through much stronger efforts to move energy towards a 100% renewable energy supply. Consumption pathways remain similar to the basic scenario, but faster introduction of technologies leads to complete decarbonization. The IEA’s 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 dependent 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
Choice of scenarios
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.
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.
IEA Energy Technology Perspectives (ETP)
International Energy Agency (IEA)’s comprehensive publication on energy technology focuses on the opportunities and challenges of scaling and accelerating the deployment of clean energy technologies. Additional information on this publication can be found here.
Critical uncertainties
Identified using a process of scaling potential impacts and uncertainties, those meeting high for both impact and uncertainty should be considered ‘critical uncertainties’ and the basis for the development of scenarios. A common process for identifying critical uncertainties is the development of an impact/uncertainty grid. Further information on critical uncertainties can be found in CDP’s technical note on Scenario Analysis.
(C3.2b) Why does your organization not use climate-related scenario analysis to inform its strategy?
Question dependencies
This question only appears if you select “No, but we anticipate using qualitative and/or quantitative analysis in the next two years” or “No, and we do not anticipate doing so in the next two years” in response to C3.2.
Change from 2020
No change (2020 C3.1c)
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 ORS, formatting is not retained.
Requested content
General
- Your answer should be company-specific and include:
- Why climate-related scenario analysis is not used to inform your business strategy, and;
- Whether you expect it to be used in the future.
(C3.3) Describe where and how climate-related risks and opportunities have influenced your strategy.
Question dependencies
This question only appears if you select “Yes, and we have developed a low-carbon transition plan” or “Yes” in response to C3.1
Change from 2020
No change (2020 C3.1d)
Rationale
Investors and data users are interested to know how climate-related risks and opportunities may have affected organizations’ strategies. Answers to this question may be used to inform expectations about the future performance of an organization and on how resilient its strategy is to climate-related risks and opportunities.
Connection to other frameworks
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
Goal 13: Climate action
Response options
Please complete the following table:
Business area
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Have climate-related risks and opportunities influenced your strategy in this area?
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Description of influence
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Products and services
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Select from:
- Yes
- No
- Evaluation in progress
- Not evaluated
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Text field [maximum 2,400 characters]
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Supply chain and/or value chain
|
|
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Investment in R&D
|
|
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Operations
|
|
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Requested content
General
- Each row in the table corresponds to a possible area of impact in a company’s business. For each row, select how climate-related risks and opportunities have affected your strategy in this area.
- This question is intended to focus on the group business strategy – meaning the full corporate body on which you are reporting. However, if it is more appropriate, you may wish to comment on divisional (business unit) strategies. If you are responding to the request from a supply chain member, please also include information specific to your requesting member, i.e. relevant business units.
Description of influence (column 3)
- Describe how your strategy in this area has been influenced by climate-related risks and opportunities and the time horizon(s) it covers;
- Specify if this includes any climate change adaptation and mitigation activities.
- Include the most substantial strategic decision(s) in this area to date that have been influenced by the climate-related risks and opportunities;
- If a certain strategic decision was informed by the climate-related scenario analysis, please specify that.
- If your strategy in this area has not been influenced by climate-related risks and opportunities, explain why not.
- If the evaluation of influence is still in progress, include a company-specific description of the evaluation process used, and when it is expected to be completed.
Note for oil & gas companies, electric utilities, automotive and automotive component manufacturers, and companies with coal reserves:
- Please refer to the sector specific guidance for the risks and opportunities questions before answering this question.
- The guidance contains a number of issues that investors want these sectors to consider in answering the risks and opportunities questions and you may wish to draw together some of these issues in your answers to questions on the integration of climate change into business strategy.
- Please provide a complete answer to these questions on business strategy in the input fields provided. Do not cross-refer to the risks and opportunities answers in your response to this question.
Note for oil & gas sector companies:
- Discuss, if relevant, your methodology for the integration of regulatory and physical climate change risks into the company strategy, investment decisions and risk management, including the assumptions used.
- Where possible, provide illustrative examples of the assumptions made in specific investment decisions.
- You should also discuss - again if relevant - the diversification of your portfolio into lower-carbon and non-fossil fuel products (e.g. natural gas, biofuels, renewable energy) and strategy for development of carbon capture and sequestration technology, including technology areas of focus, and distinctive areas of strength your company believes it holds.
- Please give the methodology used for the integration of future carbon prices into your hydrocarbon exploration strategy and investment decisions, with the assumptions used. Where possible, provide illustrative examples of the assumptions made in specific investment decisions.
Note for electric utility sector companies:
- Discuss any work to incorporate renewable energy, carbon capture & sequestration, cleaner coal technologies and energy storage into your strategy.
Note for transport OEMs sector companies:
- Discuss the impact on your strategy for your products at group level and, where relevant, for specific markets, including any related targets for GHG emissions performance (expressed as gCO2e/unit distance) and include a reference to any regulatory drivers and the baseline against which performance is measured.
- Discuss expansion into hybrid/fully electric vehicles and fuel cell technology, if relevant.
Note for companies with coal reserves:
Note for financial services companies:
- The climate-related risks and opportunities to be considered in this question refer to lending, financial intermediary, investment and/or insurance underwriting activities of your organization, in addition to your operational activities.
- Banks:
- Describe the potential impacts of climate-related risks and opportunities on your core businesses, products and services, including:
- Information at the business division, sector or geography, credit quality and average tenor levels;
- Describe the potential impacts of climate-related risks and opportunities on your core businesses, products and services, including:
- Information at the business division, sector or geography levels;
- As asset owners, insurance companies should describe how climate-related risks and opportunities are factored into relevant investment strategies – in the business’ value chain. This could be described from the perspective of the total fund or investment strategy or individual investment strategies for various asset classes.
- Under” Supply chain and/or value chain” describe how climate-related risks and opportunities are factored into your investment strategies and investee selection.
- Also describe how each product or investment strategy may be affected by the transition to a lower-carbon economy.
Example response
Business area
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Have climate-related risks and opportunities influenced your strategy in this area?
|
Description of influence
|
Products and services
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Yes
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Risks and opportunities related to the growing demand from customers for transparency, naturality, and food and drinks with low carbon footprint, (as reported in C2.3a Risk 6 and C2.4a Opportunity 8) have influenced our product-related strategy and product portfolio. In June 2019, our Board of Directors made a Global Transparency and Sustainability Pledge, committing to increasing the share of plant-based products in the portfolio, using more natural ingredients in our flagship brands such as Pantheon Peanut Butter, Red Rose Beetroot Paste, Gracious Hummus and increasing transparency on our packaging (e.g. disclosure of the presence of any synthetic or GMO ingredients on product labels). This gives consumers a greater variety of products and improved ability to choose them, while providing a high-quality product offering, benefiting the producers as well as preserving natural resources, promoting biodiversity, improving soil health and water quality, and reducing carbon emissions. We aim to have implemented changes to our products and packaging in line with the pledge by December 2020, prioritizing our consumer base in North America and Europe.
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Supply chain and/or value chain
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Evaluation in progress
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Since we source 80% of our raw materials from drought-prone India and severe water stress is increasing every year, we have started placing more emphasis on conducting risk assessments for extreme weather events. In December 2019, the Board decided to employ a team of external consultants to work on developing a supply chain transparency tool. This tool will allow us to gather important information about our supply network (including sub-tier suppliers), so that we can better assess our vulnerability to natural disasters and other risks across our global supply chain. The supply chain transparency tool is expected to be fully functional by September 2020 and will be central in informing our supply chain strategy going forward.
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Investment in R&D
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No
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Climate-related risks and opportunities have not yet influenced our R&D investment strategy, as we are initially focused on evaluating the risks and opportunities relating to our operations, supply chain and existing products and services, ensuring our business strategy is aligned in accordance with these. We expect to begin evaluating the impact of risks and opportunities on our R&D expenditures in 2020.
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Operations
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Yes
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National and sub-national jurisdictions that account for about half of the global economy now have carbon pricing systems (as disclosed in C2.3a Risk 2). This trend is on the rise and could result in increased operational costs for our company. For example, a carbon price of €32/ton would increase our operational costs to €25.1m in Europe. This has led to our Board's strategic decision to join RE100 and commit to transition to 100% renewable electricity by 2030, with an intermediary step of 40% by 2022. In 2019, 38 of our production sites in Europe ran on 100% renewable energy and we purchased 37% of our total electricity from renewable sources such as wind farms and hydropower plants (compared with 22% in 2018). As part of this strategy, all our new plants will have renewable power generation facilities on site.
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(C3.4) Describe where and how climate-related risks and opportunities have influenced your financial planning.
Question dependencies
This question only appears if you select “Yes, and we have developed a low-carbon transition plan” or “Yes” in response to C3.1.
Change from 2020
No change (2020 C3.1e)
Rationale
This question is seeking to understand where the identified risks and opportunities may have influenced your financial statements, and how this has been incorporated into your financial planning process.
Connection to other frameworks
TCFD
Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
Response options
Please complete the following table:
Financial planning elements that have been influenced
|
Description of influence |
Select all that apply:
- Revenues
- Direct costs
- Indirect costs
- Capital expenditures
- Capital allocation
- Acquisitions and divestments
- Access to capital
- Assets
- Liabilities
- Provisions or general reserves [Financial services only]
- Claims reserves [Financial services only]
- None of the above
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Text field [maximum 7,000 characters]
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Requested content
General
- Climate-related issues can affect several important aspects of an organization’s financial position, both now and in the future. For example, climate-related issues may have implications for an organization’s capital expenditures. In turn, capital expenditures will determine the nature and amount of fixed assets, how these depreciate over time and the proportion of debt and equity to be funded on an organization’s balance sheet. Climate-related issues may also carry implications for future cash flows (operating, investing, and financing activities). This question seeks to establish whether climate-related issues have already had implications on your financial planning.
Description of influence (column 2)
- Provide details on how climate-related risks and opportunities have influenced the selected elements of your financial planning. Including a case study for at least one of the elements selected.
- Specify the time horizons this planning covers.
- If you selected “None of the above”, explain if there is another element of financial planning that has been influenced; or why climate-related risks and opportunities have not yet influenced your financial planning.
Note for financial services sector companies:
The climate-related risks and opportunities to be considered in this question refer to lending, financial intermediary, investment and/or insurance underwriting activities of your organization, in addition to your operational activities.
- Describe the potential financial impacts of the identified climate-related risks and opportunities on your core businesses, products and services. For example, you may do this by translating climate risk data into probability of default, total committed exposure and/or exposure at default.
- Describe the potential financial impacts of climate-related risks and opportunities on your core businesses, products and services. For example, you may do this by translating climate risk data into probability of default and/or exposure at default.
- As asset owners, insurance companies should describe how climate-related risks and opportunities may affect the financial returns of investment strategies. This could be described from the perspective of the total fund or investment strategy or individual investment strategies for various asset classes.
- Where appropriate, describe how climate-related risks and opportunities may affect the financial returns of relevant products or investment strategies.
- Asset managers should also describe how each product or investment strategy might be affected by the transition to a lower-carbon economy.
Explanation of terms
- Financial planning: in line with the TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
- Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Indirect costs: Also known as 'operating cost' or 'overheads'. This generally refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Capital allocation: refers to distributing and investing a company's financial resources in ways that will increase its efficiency, and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.
- Capital expenditure: Capital expenditure is a measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
- Acquisition: Obtaining ownership and control by one firm, in whole or in part, of another firm or business entity.
- Divestment: A process for selling assets for financial, environmental, political or social goals. In the progression to a low-carbon economy, organizations are recognizing climate-related transition and physical risks posed to minimize exposure to stranded assets (assets that have suffered unanticipated or premature write-downs, devaluations or conversion to liabilities).
- Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.
- Assets: Entities functioning as stores of value and over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them, over a period of time (the economic benefits consist of primary incomes derived from the use of the asset and the value, including possible holding gains/losses, that could be realized by disposing of the asset or terminating it).
- Liabilities: An obligation which requires one unit (the debtor) to make a payment or a series of payments to the other unit (the creditor) in certain circumstances specified in a contract between them.
- Provisions or general reserves [Financial services only]: Balance sheet items representing funds set aside by the organization as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord.
- Claims reserves [Financial services only]: Balance sheet reserve specifically set aside by insurance companies to pay policyholders who have filed or are expected to file legitimate claims on their policies. Consider both reported but not settles (RBNS) and incurred but not reported (IBNR) reserves.
Example Response
Financial planning elements that have been influenced
|
Description of influence
|
Capital expenditures
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In 2017 our organization introduced an internal price on carbon into our capital expenditures approval process, with the aim to redirect investments towards clean technologies, lower-carbon solutions, and renewable energy projects across our operations and supply chain. We conducted a benchmark study and decided to set the price at a relatively high level, 36€/tCO2e, to internalize the potential future cost of carbon in the long term. Returns on investments are assessed with the impact of the carbon implication. This enables management to arbitrate between different options and to choose the most virtuous and efficient ones in order to achieve our organization’s strategic goals. This is a long-term measure, and the price will be periodically reviewed and updated. As a direct result of this implemented internal price on carbon we have approved a project of installing solar panels in our factories in Spain that will reduce our demand for purchased energy by 30% in the next 5 years.
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(C3.4a) Provide any additional information on how climate-related risks and opportunities have influenced your strategy and financial planning (optional).
Question dependencies
This question only appears if you select “Yes, and we have developed a low-carbon transition plan” or ”Yes” in response to C3.1.
Change from 2020
No change (2020 C3.1f)
Rationale
Investors and data users are interested to know how climate-related risks and opportunities may have affected organizations’ strategies and financial planning.
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
This is an open text question with a limit of 7,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- If you wish, you may provide a description of your business strategy for additional context.
- You may wish to supplement your responses to previous questions with a holistic picture of the interdependencies among the climate-related risks and opportunities that affect your organization’s ability to create value over time.
(C3.5) Why have climate-related risks and opportunities not influenced your strategy and/or financial planning?
Question dependencies
This question only appears if you select “No” in response to C3.1.
Change from 2020
No change (2020 C3.1g)
Rationale
As a comprehensive business strategy which incorporates climate-related risks and opportunities 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 ORS, formatting is not retained.
Requested content
General
- Your answer should be company-specific and include:
- Why climate-related risks and opportunities have not influenced your business strategy and/or financial planning, and;
- Whether you expect them to in the future. For example, climate change may have little effect on your business because of the nature of your goods/services. In that case, please give as complete an explanation as possible.
Note for oil and gas sector companies:
- Discuss, if relevant, your methodology for the integration of regulatory and physical climate change risks into the company strategy, investment decisions and risk management, including the assumptions used.
- Where possible, provide illustrative examples of the assumptions made in specific investment decisions. You should also discuss - again if relevant - the diversification of your portfolio into lower-carbon and non-fossil fuel products (e.g. natural gas, biofuels, renewable energy) and strategy for development of carbon capture and sequestration technology, including technology areas of focus, and distinctive areas of strength your company believes it holds.
- Please give the methodology used for the integration of future carbon prices into your hydrocarbon exploration strategy and investment decisions, with the assumptions used. Where possible, provide illustrative examples of the assumptions made in specific investment decisions.
Note for electric utility sector companies:
- 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:
- Discuss the impact on your strategy for your products at group level and, where relevant, for specific markets, including any related targets for GHG emissions performance (expressed as gCO2e/unit distance) and include a reference to any regulatory drivers and the baseline against which performance is measured.
- Discuss expansion into hybrid/fully electric vehicles and fuel cell technology, if relevant.
C4 Targets and performance
Module Overview
Questions in this module focus on emissions and low-carbon energy 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 adaptation and mitigation mechanisms adopted by companies to address climate change. This information demonstrates that organizations are committed to using practices that help reducing emissions and improve their resilience. Organizations can report up to 20 practices adopted on their land. Those practices that have brought or are expected to bring the largest benefits should be prioritized.
Key changes
- New question: C4.2c on net-zero targets.
- Modified questions: C4.1a and C4.1b – column ‘Target ambition’ added.
- Modified guidance:
- C4.2a - on how to report the correct target type - absolute or intensity (column 4), metric (column 8) and target denominator for intensity targets (column 9);
- C4.2b – on reporting of stabilization targets.
- Click here for a list of all changes made this year.
Sector-specific content
Additional questions on targets, initiatives, and best available techniques for the following high-impact sectors:
- Agricultural commodities
- Cement
- Coal
- Electric utilities
- Food, beverage & tobacco
- Oil & gas
- Paper and forestry
- Steel
Pathway diagram - questions
This diagram shows the general questions contained in module C4. To access question-level guidance, use the menu on the left to navigate to the question.
Emissions targets
(C4.1) Did you have an emissions target that was active in the reporting year?
Change from 2020
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 sector companies:
- Investors request that companies disclose both company-wide targets and targets at the divisional level.
Note for electric utility sector companies:
- Investors request that companies disclose company-wide targets and, where applicable, at divisional level, and that intensity targets are also expressed as absolute targets where possible.
Note for transport OEMs sector companies:
- In addition to any absolute targets, companies should disclose company-wide CO2 and/or fuel economy targets for products and, where relevant, for specific markets. Targets should be expressed in grams of CO2 per kilometer.
Note for financial services sector companies:
- Consider any 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.
Note for capital goods sector companies:
- Companies should consider reporting company-wide and/or product-level Scope 3 targets, and in particular, Scope 3 targets relating to the use of sold products.
Additional information
Examples of emissions reduction targets
The following are examples of absolute targets:
- Metric tons CO2e or % reduction from base year
- Metric tons CO2e or % reduction in product use phase relative to base year
- Metric tons CO2e or % reduction in supply chain relative to base year
- Metric tons CO2e or % reduction per year
- Metric tons CO2e or % reduction relative to 5 year rolling average of emissions
- Cap on emissions in metric CO2e
The following are examples of intensity targets:
- Metric tons CO2e or % reduction per unit revenue (also per unit turnover; per unit gross sales) relative to base year
- Metric tons CO2e or % reduction per full-time employee equivalent (also per hours worked; per operating hour; per guest night; per capita; per patient days) relative to base year
- Metric tons CO2e or % reduction per unit of product (e.g. metric ton of paper; metric ton of aluminum) relative to base year
- Metric tons CO2e or % reduction per passenger kilometer (also per km; per nautical mile) relative to base year
- Metric tons CO2e or % reduction per square foot relative to base year
- Cap on emissions relative to an activity (e.g. stabilizing emissions at x metric tons CO2e per metric to of steel produced)
- Metric tons CO2e or % reduction per MWh
- Metric tons CO2e or % reduction in emissions from business flights per employee
(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.
Question dependencies
This question only appears if you select “Absolute target” or “Both absolute and intensity targets” in response to C4.1.
Change from 2020
Modified question
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
|
Year target was set
|
Target coverage
|
Scope(s) (or Scope 3 category)
|
Base year
|
Covered emissions in base year (metric tons CO2e)
|
Covered emissions in base year as % of total base year emissions in selected Scope(s) (or Scope 3 category)
|
Abs1-Abs100
|
Numerical field [enter a number between 1900- 2021]
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product-level
- Other, please specify
|
Select from drop-down options below
|
Numerical field [enter a number between 1900- 2021]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Target year | Targeted reduction from base year (%) | Covered emissions in target year (metric tons CO2e)
[auto-calculated]
| Covered emissions in reporting year (metric tons CO2e) | % of target achieved [auto-calculated]
|
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Numerical field
[enter a whole number between 2000- 2100]
| Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
| Numerical field
| Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
| Percentage field
|
Target status in reporting year
|
Is this a science-based target?
|
Target ambition*
|
Please explain (including target coverage)
|
Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
|
Select from drop-down options below
|
Select from:
- 1.5°C aligned
- Well-below 2°C aligned
- 2°C aligned
- Other, please specify
|
Text field [maximum 2,400 characters]
|
[Add Row]
*This column only appears if you select one of the “Yes…” options in column “Is this a science-based target?”
Scope(s) (or Scope 3 category) 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, and this target has been approved by the Science-Based Targets initiative
- Yes, we consider this a science-based target, but it has not been approved 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 the target in subsequent questions and to track progress against the target in subsequent reporting years.
- If you reported a target to CDP last year and will be reporting progress against the same target this year, ensure you use the same target reference number as last year. For any new targets you are adding, always use a new reference number that you have not used previously.
Year target was set (column 2)
- Enter the year in which your company set the target.
- This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
- If you have a year-on-year rolling target, enter the year your first set the target. This can be before the base year.
- If you set the target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
Target coverage (column 3)
- If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain (including target coverage)” column. E.g. if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the “Please explain (including target coverage)” column.
Scope(s) (or Scope 3 category) (column 4)
- This refers to the Scope(s) (or Scope 3 category) of emissions to which the target relates. Note that the target does not have to comprise all emissions within a particular Scope.
Base year (column 5)
- The base year is the year against which you are comparing your emissions reduction target
- If you have a year-on-year rolling target, the base year will be the previous reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
- You cannot have a base year that is in the future.
Covered emissions in base year (metric tons CO2e) (column 6)
- Enter the base year emissions covered by 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 your European operations only.
- E.g. if your target relates to Scope 2 emissions of a particular business activity (e.g. office-based operations, etc.), enter the base year Scope 2 emissions relating to that business activity only.
Covered emissions in base year as % of total base year emissions in selected Scope(s) (or Scope 3 category) (column 7)
- Enter the covered emissions in base year (reported in the previous column) as a percentage of your total company-wide base year emissions in the Scope(s) (or Scope 3 category) your target relates to.
- If the target encompasses multiple Scopes, the percentage should be based upon the total company-wide emissions in all Scopes identified.
- E.g. if your target is to reduce Scope 1 emissions arising from your European operations, and your 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. If you have selected a Scope 3 category (e.g. Scope 3: Business travel) you should specify the percentage of emissions in that category rather than in Scope 3 as a whole.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for the Scope(s) (or Scope 3 category) selected in column 3.
Target year (column 8)
- If you have a year-on-year rolling target, the target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain (including target coverage)” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
Targeted reduction from base year (%) (column 9)
- Enter your targeted emissions reduction as a percentage reduction in 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 (i.e. (3000/150000) =0.02; then multiply by 100 for percentage value).
- If your target is to stabilize emissions at the base year level, you should enter 0 in this column.
- Note that this column is intended to describe the targeted percentage reduction from the base year that is to be achieved in the target year, and not the percentage reduction from the base year observed in the reporting year.
Covered emissions in target year (metric tons CO2e) [auto-calculated] (column 10)
- This column will be auto-calculated in the ORS.
- The emissions covered by the target in your target year will be calculated from the “Covered emissions in base year” (column 6) and the “Targeted reduction from base year” (column 9) columns. Ensure that you have entered data into these columns.
- E.g. if your base year emissions were 150,000 metric tons CO2e, and your targeted reduction is 2%, this column will display 147,000.
Covered emissions in reporting year (metric tons CO2e) (column 11)
- Enter the emissions in the reporting year covered by the target in this column.
- E.g. if your target is to reduce Scope 1 emissions arising from your European operations, enter the Scope 1 emissions in the reporting year for your European operations only.
- E.g. if your target relates to Scope 2 emissions of a particular business activity (e.g. office-based operations, etc.), enter the Scope 2 emissions in the reporting year relating to that business activity only.
% of target achieved [auto-calculated] (column 12)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion (in terms of emissions) compared with the base year will be calculated from the “Covered emissions in base year” (column 6), “Targeted reduction from base year” (column 9) and the “Covered emissions in reporting year” (column 11) columns. Ensure that you have entered data into these columns.
- E.g. if your target is to reduce your Scope 1 emissions by 10% and in the reporting year your Scope 1 emissions had reduced by 3% compared to the base year, this column will display 30 as your target is 30% complete.
- Negative values indicate an increase in emissions compared to the base year.
- Values greater than 100 indicate that you have exceeded your target.
- This column will not appear if you set a target to stabilize your greenhouse gas emissions at the base year level, i.e. if you have entered 0 (zero) in column “Targeted reduction from base year (%)” (column 9).
Target status in reporting year (column 13)
- New - Select this option for targets that have been set in the reporting year and are still in progress.
- Underway - Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
- Achieved - Select this option for targets that have been achieved or exceeded in the reporting year.
- Expired - Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
- Revised - Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 11 in the reporting year, for example due to a recalculation of the base year emissions or a change to the target year.
- Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
- Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain (including target coverage)” column.
Is this a science-based target? (column 14)
- A brief description of science-based targets and why CDP is asking companies to set them is provided as additional information to this question.
- In addition, refer to the CDP Technical Note on Science-Based Targets for what qualifies as a science-based target and how to assess your target against the Science Based Targets initiative’s criteria.
- Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practice in science-based target setting. Select this option only if the target has been approved by the SBTi.
- Yes, we consider this a science-based target, but it has not been approved 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 (including target coverage)” 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 C4.1b.
- 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.
Target ambition (column 15)
- Select the level of ambition of your science-based target. Note that the SBTi currently requires scope 1 and 2 targets to be consistent with the level of decarbonization required to keep global temperature increase to well-below 2°C compared to preindustrial temperatures, but encourages companies to pursue greater efforts towards a 1.5°C trajectory.
Please explain (including target coverage) (column 16)
- If the target is not company-wide (i.e. it does not apply to the whole company in line with your definition of the reporting boundary), provide further details of your target coverage in this column. E.g. if you have selected “Country/region” in column 3, please specify which countries/regions your target covers.
- You can use this column to identify where you have a financial year or average year based target.
- If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
- If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.
Additional information
Science-based targets
- Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and pursue efforts to limit warming to under 1.5°C. However, there is a 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 enable companies to set emissions targets that are consistent with conserving the remaining global emissions budget. A number of factors are taken into consideration in order to determine what is most appropriate for a given company. Please see the Technical Note on Science Based Targets and the 2021 climate change scoring methodology for information on best practices in target setting and what CDP considers a science-based target.
- Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practices in science-based target setting. Targets submitted to the SBTi for an official evaluation by 23:59 UTC-12 on May 15, 2021, with all information needed to assess the target, will be used for scoring in CDP’s 2021 climate change questionnaire.
- Regardless of submission to SBTi, companies are expected to report emissions reductions targets in their CDP response. Targets that did not pass the SBTi’s review process or that have not been submitted for review prior to the deadline will still be evaluated using the information disclosed by each company in their CDP response. See the Technical Note for more details.
(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 2020
Modified question
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
|
Year target was set
|
Target coverage
|
Scope(s) (or Scope 3 category)
|
Intensity metric
|
Base year
|
Intensity figure in base year (metric tons CO2e per unit of activity)
|
% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
|
Int1- Int100
|
Numerical field [enter a number between 1900- 2021]
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product-level
- Other, please specify
|
Select from drop-down options below
|
Select from drop-down options below
|
Numerical field [enter a number between 1900- 2021]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Target year
|
Targeted reduction from base year (%)
|
Intensity figure in target year (metric tons CO2e per unit of activity)
[auto-calculated]
|
% change anticipated in absolute Scope 1+2 emissions
|
% change anticipated in absolute Scope 3 emissions
|
Intensity figure in reporting year (metric tons CO2e per unit of activity)
|
Numerical field [enter a number between 2000- 2100]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Numerical field
|
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]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
% of target achieved [auto-calculated]
| Target status in reporting year | Is this a science-based target? | Target ambition* | Please explain (including target coverage) |
---|
Percentage field | Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
| Select from drop-down options below | Select from:
- 1.5°C aligned
- Well-below 2°C aligned
- 2°C aligned
- Other, please specify
| Text field [maximum 2,400 characters] |
[Add Row]
*This column only appears if you select one of the “Yes…” options in column “Is this a science-based target?”
Scope(s) (or Scope 3 category) 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 & services
- Scope 3: Capital goods
- Scope 3: Fuel- and energy-related activities (not included in Scopes 1 or 2)
- Scope 3: Upstream transportation & 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
Intensity metric drop-down options:
Select one of the following options:
- Grams CO2e per revenue passenger kilometer
- Metric tons CO2e per USD($) value-added
- Metric tons CO2e per square meter
- Metric tons CO2e per metric ton of aluminum
- Metric tons CO2e per metric ton of steel
- Metric tons CO2e per metric ton of cement
- Metric tons CO2e per metric ton of cardboard
- Grams CO2e per kilometer
- Metric tons CO2e per unit revenue
- Metric tons CO2e per unit FTE employee
- Metric tons CO2e per unit hour worked
- Metric tons CO2e per metric ton of product
- Metric tons of CO2e per liter of product
- Metric tons CO2e per unit of production
- Metric tons CO2e per unit of service provided
- Metric tons CO2e per square foot
- Metric tons CO2e per kilometer
- Metric tons CO2e per passenger kilometer
- Metric tons CO2e per megawatt hour (MWh)
- Metric tons CO2e per barrel of oil equivalent (BOE)
- Metric tons CO2e per vehicle produced
- Metric tons CO2e per metric ton of ore processed
- Metric tons CO2e per ounce of gold
- Metric tons CO2e per ounce of platinum
- Metric tons of CO2e per metric ton of aggregate
- Metric tons of CO2e per billion (currency) funds under management
- Other, please specify
Is
this a science-based target? drop-down options:
Select one of the following options:
- Yes, and this target has been approved by the Science Based Targets
initiative
- Yes,
we consider this a science-based target, but it has not been approved
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 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 the target in subsequent questions and to track progress against the target in subsequent reporting years.
- If you reported a target to CDP last year and will be reporting progress against the same target this year, ensure you use the same target reference number as last year. For any new targets you are adding, always use a new reference number that you have not used previously.
Year target was set (column 2)
- Enter the year in which your company set the target.
- This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
- If you have a year-on-year rolling target, enter the year you first set the target. This can be before the base year.
- If you set the target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
Target coverage (column 3)
- If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain (including target coverage)” column. E.g. if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the “Please explain (including target coverage)” column.
Scope(s) (or Scope 3 category) (column 4)
- This refers to the Scope(s) (or Scope 3 category) of emissions to which the target relates. Note that this does not have to comprise all emissions within a particular Scope.
Intensity 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 drop-down options above.
Base year (column 6)
- The base year is the year against which you are comparing your emissions reduction target
- If you have a year-on-year rolling target, the base year will be the previous reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
- You cannot have a base year that is in the future.
Intensity figure in base year (metric tons CO2e per unit of activity) (column 7)
- Enter the emissions intensity figure in the base year covered by the target in this column.
- Note that the base year emissions intensity figure should be calculated by dividing the base year emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your Scope 1 emissions per full time equivalent (FTE) employee by 22%, using 2010 as the base year and 2020 as the target year, first calculate what your Scope 1 emissions were per FTE in 2010 (in this example 9 metric tons CO2e) and enter this figure in the field.
% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure (column 8)
- Enter the base year emissions covered by the target as a percentage of your total company-wide base year emissions in the Scope(s) (or Scope 3 category) your intensity target relates to.
- If the target encompasses multiple Scopes, the percentage should be based upon the total company-wide emissions in all Scopes identified.
- Note that for this calculation you should use the absolute base year emissions covered by the target (i.e. metric tons CO2e), not the intensity figure you reported in the previous column (i.e. metric tons CO2e per unit activity).
- E.g. if your target is to reduce your Scope 1 emissions per FTE employee in your European operations only, and your 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. if you have selected a Scope 3 category (e.g. Scope 3: Business travel) you should specify the percentage of emissions in that category rather than in Scope 3 as a whole.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for the Scope(s) (or Scope 3 category) selected in column 4.
Target year (column 9)
- If you have a year-on-year rolling target, the target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
Targeted reduction from base year (%) (column 10)
- Enter your targeted emissions intensity reduction as a percentage reduction of the emissions intensity figure 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 per FTE employee to 7 metric tons CO2e per FTE employee and your base year emissions were 9 metric tons CO2e per FTE employee, you should enter 22 into this column (i.e. ((9-7)/9)=0.22; then multiply by 100 for percentage value).
- If your target is to stabilize your emissions intensity at the base year level, you should enter 0 in this column.
- Note that this column is intended to describe the targeted percentage reduction from the base year that is to be achieved in the target year, not the percentage reduction from the base year observed in the reporting year.
Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated] (column 11)
- This column will be auto-calculated in the ORS.
- The intensity figure covered by the target in your target year will be calculated from the “Intensity figure in base year” (column 7) and the “Targeted reduction from base year” (column 10) columns. Ensure that you have entered data into these columns.
- E.g. if your base year intensity figure was 9 metric tons CO2e per FTE employee, and your targeted reduction is 22%, this column will display 7.
% change anticipated in absolute Scope 1+2 emissions (column 12)
- Complete this column if your target relates to Scope 1 and/or Scope 2 emissions. If your target does not relate to Scope 1 and/or Scope 2 emissions, enter 0 (zero) in this column.
- Enter the percentage change in your total absolute gross global Scope 1+2 emissions anticipated, based on the information provided in the previous columns. A positive figure indicates that you anticipate an increase in emissions.
- Note that even if your target only relates to one Scope (i.e. Scope 1 or 2), enter the change anticipated in your Scope 1+2 emissions.
% change anticipated in absolute Scope 3 emissions (column 13)
- Complete this column if your target relates to Scope 3 emissions. If your target does not include Scope 3 emissions, enter 0 (zero) in this column.
- Enter the percentage change in your total absolute global Scope 3 emissions expected, based on the information provided in the previous columns. A positive figure indicates that you anticipate an increase in emissions.
Intensity figure in reporting year (metric tons CO2e per unit of activity) (column 14)
- Enter the emissions intensity figure in the reporting year covered by the target in this column.
- Note that the intensity figure in the reporting year should be calculated by dividing your reporting year emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your Scope 1 emissions per full time equivalent (FTE) employee from 9 metric tons CO2e to 7 metric tons CO2e and in the reporting year your Scope 1 emissions per FTE employee were 8 metric tons CO2e, enter 8 in this field.
% of target achieved [auto-calculated] (column 15)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion (in terms of emissions) compared with the base year will be calculated from the “Intensity figure in base year” (column 7), “Targeted reduction from base year” (column 10), and the “Intensity figure in reporting year” (column 14) columns. Ensure you have entered data into these columns.
- E.g. if your target is to reduce your Scope 1 emissions per FTE employee by 22% and in the reporting year your Scope 1 emissions per FTE employee had reduced by 11% compared to the base year, this column will display 50 as your target is 50% complete.
- Negative values indicate an increase in the emissions intensity figure compared to the base year.
- Values greater than 100 indicate that you have exceeded your target.
- This column will not appear if you set a target to stabilize your emissions intensity at the base year level, i.e. if you have entered 0 (zero) in column “Targeted reduction from base year (%)” (column 10).
Target status (column 16)
- New - Select this option for targets that have been set in the reporting year and are still in progress.
- Underway - Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
- Achieved - Select this option for targets that have been achieved or exceeded in the reporting year.
- Expired - Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
- Revised - Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 14 in the reporting year, for example due to a recalculation of the base year emissions intensity or a change to the target year.
- Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
- Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain (including target coverage)” column.
Is this a science-based target? (column 17)
- 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, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practice in science-based target setting. Select this option only if the target has been approved by the SBTi.
- Yes, we consider this a science-based target, but it has not been approved 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 C4.1a.
- 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.
Target ambition (column 18)
- Select the level of ambition of your science-based target. Note that the SBTi currently requires scope 1 and 2 targets to be aligned with a global temperature increase well-below 2°C compared to preindustrial temperatures, but encourages companies to pursue greater efforts towards a 1.5°C trajectory
Please explain (including target coverage) (column 19)
- If the target is not company-wide (i.e. it does not apply to the whole company in line with your definition of the reporting boundary) provide further details of your target coverage in this column. E.g. if you have selected “Country/region” in column 3, please specify which countries/regions your target covers.
- You can use this column to identify where you have a financial year or average year based target.
- If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
- If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.
Additional information
Science-based targets
- Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and pursue efforts to limit warming to under 1.5°C. However, there is a 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 enable companies to set emissions targets that are consistent with conserving the remaining global emissions budget. A number of factors are taken into consideration in order to determine what is most appropriate for a given company. Please see the Technical Note on Science Based Targets and the 2021 climate change scoring methodology for information on best practices in target setting and what CDP considers a science-based target.
- Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practices in science-based target setting. Targets submitted to the SBTi for an official evaluation by the deadline (tbc), with all information needed to assess the target, will be used for scoring in CDP’s 2021 climate change questionnaire.
- Regardless of submission to SBTi, companies are expected to report emissions reductions targets in their CDP response. Targets that did not pass the SBTi’s review process or that have not been submitted for review prior to the deadline will still be evaluated using the information disclosed by each company in their CDP response. See the Technical Note for more details.
(C4.1c) Explain why you did not have an emissions target, and forecast how your emissions will change over the next five years.
Question dependencies
This question only appears if you select “No target” in response to C4.1.
Change from 2020
No change
Rationale
As setting a target is a pre-requisite for leadership in environmental practice, data users need to understand why companies do not have active targets guiding environmental strategy.
Response options
Please complete the following table:
Primary reason | Five-year forecast | Please explain |
Select from: - We are planning to introduce a target in the next two years
- Important but not an immediate business priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- Insufficient data on operations
- No instruction from management
- Other, please specify
| Text field [maximum 2,400 characters] | 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) Did you have any other climate-related targets that were active in the reporting year?
Change from 2020
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.
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
Select all that apply from the following options:
- Target(s) to increase low-carbon energy consumption or production
- Target(s) to reduce methane emissions
- Net-zero target(s)
- Other climate-related target(s)
- No other climate-related targets
Requested content
Note for oil and gas and coal sectors:
- If you have a methane-specific emissions reduction target that was not reported in C4.1a/b, select “Target(s) to reduce methane emissions”. You will then receive a follow up question C4.2b where you can provide details of your methane-specific emissions reduction target.
- If you engage in oil and gas or coal mining activities and have not selected “Target(s) to reduce methane emissions” in this question, you will receive a follow up question C-CO4.2c/C-OG4.2c requesting information on why you do not have a methane-specific emissions reduction target and will be asked to forecast how your methane emissions will change.
- If methane emissions are not applicable to your organization, you will be given the opportunity to explain this in C-CO4.2c/C-OG4.1c.
Explanation of terms
- Target to reduce methane emissions, or “methane-specific target” is any target to reduce specifically methane (CH4) emissions e.g. reduction of leakage, venting or flaring of methane.
- Net-zero target: in line with SBTi’s Foundations for Science-based Net-zero Target Setting in the Corporate Sector, a net-zero target comprises two main elements:
- a target to reduce value chain emissions by an amount consistent with net-zero in global scenarios that limit warming to 1.5C with no or limited overshoot;
- a target to neutralize the impact of residual emissions (i.e. emissions that are unfeasible for society to abate in 1.5C scenarios) by permanently removing an equivalent amount of CO2 from the atmosphere
Companies are also encouraged to participate in compensation activities (e.g. purchasing carbon credits and contributing to emissions reductions outside their value chains) during the transition to net-zero.
(C4.2a) Provide details of your target(s) to increase low-carbon energy consumption or production.
Question dependencies
This question only appears if you select “Target(s) to increase low-carbon energy consumption or production” in response to C4.2.
Change from 2020
Modified guidance
Rationale
Targets related to increasing low-carbon energy consumption or production can be an important element of organizations’ strategy to reduce their emissions.
Connection to 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 reference number
|
Year target was set
|
Target coverage
|
Target type: absolute or intensity
|
Target type: energy carrier
|
Target type: activity
|
Target type: energy source
|
Low1 – Low100
|
Numerical field [enter a number between 1900- 2021]
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product level
- Other, please specify
|
Select from:
|
Select from:
- Electricity
- Heat
- Steam
- Cooling
- All energy carriers
- Other, please specify
|
Select from:
|
Select from:
- Low-carbon energy source(s)
- Renewable energy source(s) only
|
Metric (target numerator if reporting an intensity target)
|
Target denominator (intensity targets only)
|
Base year
|
Figure or percentage in base year
|
Target year
|
Figure or percentage in target year
|
Figure or percentage in reporting year
|
% of target achieved
[auto-calculated]
|
Select from:
|
Select from drop-down options below
|
Numerical field [enter a number between 1900- 2021]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number between 2000- 2100]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Percentage field |
Target status in reporting year
|
Is this target part of an emissions target?
|
Is this target part of an overarching initiative?
|
Please explain (including target coverage)
|
Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
|
Text field [maximum 2,400 characters]
[Emissions reduction target ID]
|
Select from:
- RE100
- Science Based Targets initiative
- No, it's not part of an overarching initiative
- Other, please specify
|
Text field [maximum 2,400 characters]
|
[Add Row}
Target denominator (intensity targets only) drop-down options:
Select one of the following options:
- revenue passenger kilometer
- USD($) value-added
- square meter
- metric ton of aluminum
- metric ton of steel
- metric ton of cement
- metric ton of cardboard
- unit revenue
- unit FTE employee
- unit hour worked
- metric ton of product
- liter of product
- unit of production
- unit of service provided
- square foot
- kilometer
- passenger kilometer
- megawatt hour (MWh)
- barrel of oil equivalent (BOE)
- vehicle produced
- metric ton of ore processed
- ounce of gold
- ounce of platinum
- metric ton of aggregate
- billion (currency) funds under management
- Other, please specify
Requested content
General
- If you are a member of the RE100 initiative, you can use this question to report on your progress towards achieving your target.
Target reference number (column 1)
- Select a unique target reference from the drop-down menu provided to track progress against this target in subsequent reporting years.
Year target was set (column 2)
- Enter the year in which your company set the target.
- This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
- For year-on-year rolling targets, enter the year that you first set the target. This can be before the base year.
- If the target was set based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
Target coverage (column 3)
- If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain (including target coverage)” column. E.g. if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the column “Please explain (including target coverage)”.
Target type: absolute or intensity (column 4)
- Select whether the target is an absolute or an intensity target, regardless of whether you measure it in absolute (e.g. MWh) or relative (%) values.
- If your target is to increase the percentage of renewable energy or MWh of renewable energy in your electricity mix, select “absolute”.
- If your target is to increase the percentage of renewable energy or MWh of renewable energy consumption per unit of output (e.g. per metric ton of product), select “intensity”.
Target type: energy source (column 7)
- Select whether the target relates to increasing consumption or production of low-carbon energy, or of renewable energy specifically. Definitions are provided in the explanation of terms below
Metric (target numerator if reporting an intensity target) (column 8)
- Select the metric relevant to the target. For intensity targets this will be the target numerator.
- If your target is to increase the percentage of renewable energy in your electricity mix, select “percentage”.
- If you measure your target in energy units, select either MWh or kWh. 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”.
Target denominator (intensity targets only) (column 9)
- Select the denominator of your intensity target. This column will only appear if you selected “Intensity” in column 4. E.g. if your target is to increase the percentage of renewable energy consumption per metric ton of product, select “metric ton of product”.
Base year (column 10)
- The base year is the year against which you are comparing your target.
- If you have a year-on-year rolling target, the base year will be the previous reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
- If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
- You cannot have a base year that is in the future.
Figure or percentage in base year (column 11)
- Enter the base year value for your target. Note that this will be a percentage if you have selected “Percentage” as your metric in column 8.
- E.g. if your target is to achieve 100% renewable energy consumption by a target year of 2025 compared with a base year of 2015, and in 2015 your renewable energy consumption was 40%, enter 40 in this column.
Target year (column 12)
- If you have a year-on-year rolling target, the target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain (including target coverage)” column.
- If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
Figure or percentage in target year (column 13)
- Enter the target year value for your target.
- E.g. if your target is to achieve 100% renewable energy consumption by a target year of 2025 compared with a base year of 2015, enter 100 in this column.
Figure or percentage in reporting year (column 14)
- Enter the reporting year value for your target.
- E.g. if your target is to achieve 100% renewable energy consumption by a target year of 2025 compared with a base year of 2015, and in the reporting year you achieved 80% renewable energy, enter 80 in this column.
% of target achieved [auto-calculated] (column 15)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion compared with the base year will be calculated from the “Figure or percentage in base year” (column 11), “Figure or percentage in target year” (column 13), and the “Figure or percentage in reporting year” (column 14) columns. Ensure you have entered data into these columns.
- E.g. if your target is to achieve 100% renewable energy consumption by 2025 compared with 40% renewable energy consumption in a base year of 2015, and in the reporting year you achieved 80% renewable energy, this column will display 66 as you have achieved 66% of your targeted increase in renewable energy compared with the base year.
- Negative values indicate a decrease in low carbon or renewable energy consumption or production compared to the base year.
- Values greater than 100 indicate that you have exceeded your target.
Target status in reporting year (column 16)
- New - Select this option for targets that have been set in the reporting year and are still in progress.
- Underway - Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
- Achieved - Select this option for targets that have been achieved or exceeded in the reporting year.
- Expired - Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
- Revised - Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 14 in the reporting year, for example due to a recalculation or a change to the target year.
- Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
- Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain (including target coverage)” column.
Is this target part of an emissions target? (column 17)
- If the target is part of an emissions reduction target reported in C4.1a or C4.1b, enter the emissions reduction target reference number here.
Is this target part of an overarching initiative? (column 18)
- If the target is part of an overarching initiative, select the initiative or select “Other, please specify” to outline the initiative.
Please explain (including target coverage) (column 19)
- If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”), provide further details of your target coverage in this column. E.g. if you have selected “Country/region” in column 3, please specify which countries/regions your target covers.
- If you reported a renewable energy consumption or production target in C4.2 last year and are reporting progress against the same target this year, indicate this in this column.
- You can use this column to identify where you have a financial year or average year based target.
- If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
- If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.
Explanation of terms
- Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels”.
Example response
The table below shows four low-carbon energy target examples:
- Low 1: a company-wide RE100 target to increase the proportion of electricity consumed from renewable sources from 30% to 100% within 10 years. This target is part of the company's absolute Scope 2 emissions reduction target reported in C4.1a.
- Low 2: a company-wide target to increase the proportion of heat consumed from low-carbon sources by 2% per year. This is a year-on-year rolling target that was set in 2010, therefore the target year is the current reporting year (2019), and the base year is the previous reporting year (2018).
- Low 3: a renewable electricity production target covering specifically the solar PV energy generation division of the business. The target status is revised in the reporting year due to an adjustment of the target year.
- Low 4: a business division-level intensity target covering only the square meter consumption of cooling at the company's data centers. This target is part of the company's Scope 2 emissions intensity target reported in C4.1b.
Target reference number
|
Year target was set
|
Target coverage
|
Target type: absolute or intensity
|
Target type: energy carrier
|
Target type: activity
|
Target type: energy source
|
Low 1
|
2015
|
Company-wide
|
Absolute
|
Electricity
|
Consumption
|
Renewable energy source(s) only
|
Low 2
|
2010
|
Company-wide
|
Absolute
|
Heat
|
Consumption
|
Low-carbon energy source(s)
|
Low 3
|
2015
|
Business division
|
Absolute
|
Electricity
|
Production
|
Renewable energy source(s) only
|
Low 4
|
2019
|
Business division
|
Intensity
|
Cooling
|
Consumption
|
Low-carbon energy source(s)
|
Metric (target numerator if reporting an intensity target)
|
Target denominator (intensity targets only)
|
Base year
|
Figure or percentage in base year
|
Target year
|
Figure or percentage in target year
|
Figure or percentage in reporting year
|
% of target achieved [auto-calculated]
|
Percentage
|
N/A
|
2015
|
30
|
2025
|
100
|
70
|
57
|
Percentage
|
N/A
|
2018
|
19
|
2019
|
21
|
21.5
|
125
|
MWh
|
N/A
|
2015
|
9,200
|
2025
|
18,400
|
15,640
|
70
|
kWh
|
square meter
|
2018
|
85
|
2030
|
500
|
85
|
0
|
Target status in the reporting year
|
Is this target part of an emissions target?
|
Is this target part of an overarching initiative?
|
Please explain (including target coverage)
|
Underway
|
Abs 2
|
RE100
|
In 2015 we joined the RE100 initiative and set a company-wide target to achieve 100% renewable electricity consumption within 10 years, from a base year of 30% renewable electricity consumption. By the reporting year, we had achieved 70% renewable electricity consumption, thus achieved 57% of our targeted increase in renewable electricity compared with the base year. The target is still underway. This target is part of our absolute Scope 2 emissions reduction target Abs 2.
|
Achieved
|
No
|
No, it’s not part of an overarching initiative
|
In 2010 we set a company-wide year-on-year target to increase the proportion of heat consumed from low-carbon sources by 2% per year. This was achieved in the 2019 reporting period, as by installing ground source heat pumps under 3 more of our farm houses, our low-carbon consumption increased by 2.5% compared with 2018.
|
Revised
|
No
|
No, it’s not part of an overarching initiative
|
In 2015 we set a 15-year target for our solar PV generation facilities to double their per annum electricity production (in MWh) by 2030, compared to 2015 levels. In the reporting year we revised this target to bring the target year forwards to 2025, as due to the decreased costs of solar PV equipment, we are already 70% of the way to achieving this target and should now achieve it before 2025.
|
New
|
Int 5
|
No, it’s not part of an overarching initiative
|
Our data centers require a significant amount of cooling. We have set a new target for the Data Centers Division to increase the average consumption of low-carbon cooling from 85 kWh per square meter to 500 kWh by 2030. On average, the annual energy consumption for our data centers is 2000kWh/m2, of which half is from cooling, therefore achievement of this target will allow them to run on around 50% low-carbon cooling. This is part of our company-wide Scope 2 energy intensity target, Int 5.
|
(C4.2b) Provide details of any other climate-related targets, including methane reduction targets.
Question dependencies
This question only appears if you select “Other climate-related target(s)” or “Target(s) to reduce methane emissions” in response to C4.2.
Change from 2020
Modified guidance
Rationale
Other climate-related targets can be an
important element of organizations’ strategy to reduce their emissions. This
question increases transparency of corporate environmental commitments.
Connection to frameworks
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 reference number
|
Year target was set
|
Target coverage
|
Target type: absolute or intensity
|
Target type: category
|
Metric (target numerator if reporting an intensity target)
|
Target denominator (intensity targets only)
|
Oth1 – Oth100
|
Numerical field [enter a number between 1900- 2021]
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product level
- Other, please specify
|
Select from:
|
Select from:
- Energy productivity
- Energy consumption or efficiency
- Renewable fuel production
- Renewable fuel consumption
- Waste management
- Resource consumption or efficiency
- Low-carbon vehicles
- Low-carbon buildings
- Land use change
- Methane reduction target
- Fossil fuel reduction target
- Engagement with suppliers
- Engagement with customers
- R&D investments
- Green finance
- Other, please specify
|
Select from drop-down options below
|
Select from drop-down options below
|
Base year
|
Figure or percentage in base year
|
Target year
|
Figure or percentage in target year
|
Figure or percentage in reporting year
|
% of target achieved
[auto-calculated]
|
Numerical field [enter a number between 1900- 2021]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number between 2000- 2100]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Percentage field |
Target status in reporting year
|
Is this target part of an emissions target?
|
Is this target part of an overarching initiative?
|
Please explain (including target coverage)
|
Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
|
Text field [maximum 2,400 characters [Emissions reduction target ID]
|
Select from:
- 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
|
Text field [maximum 2,400 characters]
|
[Add Row]
Metric (target numerator if reporting an intensity target) drop-down options:
Select one of the following options:
Energy productivity
- GDP
- USD ($) value-added
- units of revenue
- ounces of gold
- ounces of platinum
- metric tons of aggregate
- metric tons of aluminum
- metric tons of steel
- metric tons of cement
- metric tons of cardboard
- metric tons of product
- metric tons of ore processed
- square meters
- kilometers
- passenger kilometers
- revenue passenger kilometers
- liters of product
- units of production
- units of service provided
- square feet
- megawatt hours (MWh)
- barrel of oil equivalents (BOE)
- ton of oil equivalents (TOE)
- ton of coal equivalents (TCE)
- Other, please specify
Energy consumption or efficiency
- kWh
- MWh
- GJ
- million Btu
- boe
- toe
- tce
- Gcal
- Other, please specify
Renewable fuel production
- metric tons of solid biomass
- liters of liquid biofuel
- cubic meters of biogas
- cubic meters of hydrogen
- Other, please specify
Renewable fuel consumption
- metric tons of solid biomass
- liters of liquid biofuel
- cubic meters of biogas
- cubic meters of hydrogen
- Percentage of total fuel consumption that is from renewable sources
- Other, please specify
Waste management
- metric tons of waste diverted from landfill
- metric tons of waste recycled
- metric tons of waste reused
- metric tons of waste generated
- Percentage of total waste generated that is recycled
- Percentage of sites operating at zero-waste to landfill
- Other, please specify
Resource consumption or efficiency
- Percentage of paper from recycled or certified sustainable sources
- metric tons of paper consumed
- Percentage of plastic form recycled sources
- metric tons of plastic consumed
- Percentage of packaging from recycled or certified sustainable sources
- metric tons of packaging consumed
- Other, please specify
Low-carbon vehicles
- Percentage of low-carbon vehicles in company fleet
- Percentage of low-carbon vehicles sold
- Percentage of company fleet using biofuel
- Percentage of battery electric vehicles in company fleet
- Percentage of conventional hybrids in company fleet
- Percentage of plug-in hybrids in company fleet
- Percentage of fuel cell electric vehicles in company fleet
- Percentage of company facilities with electric vehicle infrastructure
- Other, please specify
|
Low-carbon buildings
- Percentage of net zero carbon buildings
- Percentage of net zero energy buildings
- Percentage of buildings with a green building certificate
- Other, please specify
Land use change
- hectares reforested
- hectares afforested
- hectares restored
- Percent of supply chain compliant with zero gross deforestation
- Other, please specify
Methane reduction target
- cubic meters of methane vented
- cubic meters of methane leaked
- cubic meters of methane flared
- Total methane emissions in m3
- Total methane emissions in CO2e
- Methane leakage rate (%)
- Other, please specify
Fossil fuel reduction target
- cubic meters of natural gas consumed
- metric tons of coal consumed
- barrels of oil consumed
- Percentage of fossil fuels in the fuel mix
- Other, please specify
Engagement with suppliers
- Percentage of suppliers disclosing their GHG emissions
- Percentage of suppliers setting emissions reduction targets
- Percentage of suppliers with a science-based target
- Percentage of suppliers actively engaged on climate-related issues
- Other, please specify
Engagement with customers
- Percentage of customers disclosing their GHG emissions
- Percentage of customers setting emissions reduction targets
- Percentage of customers with a science-based target
- Percentage of customers actively engaged on climate-related issues
- Other, please specify
R&D investments
- Percentage of annual revenue invested in R&D of low-carbon products/services
- US$ invested in R&D of low-carbon products/services
- Percentage of R&D budget/portfolio dedicated to low-carbon products/services
- Other, please specify
Green finance
- Total amount of green bonds outstanding (green bond ratio)
- Percentage of green bonds
- Total amount of green debt instruments outstanding (green debt ratio)
- Percentage of green debt instruments
- Green finance raised and facilitated (denominated in currency)
- Green investments (denominated in currency)
- Percentage of green investments
- Other, please specify
|
Target denominator (intensity targets only) drop-down options:
Select one of the following options:
- KWh
- MWh
- GJ
- Btu
- boe
- toe
- tce
- Gcal
- revenue passenger kilometer
- USD($) value-added
- square meter
- metric ton of aluminum
- metric ton of steel
- metric ton of cement
- metric ton of cardboard
- unit revenue
- unit FTE employee
- unit hour worked
- metric ton of product
- liter of product
- unit of production
- unit of service provided
- square foot
- kilometer
- passenger kilometer
- megawatt hour (MWh)
- barrel of oil equivalent (BOE)
- vehicle produced
- metric ton of ore processed
- ounce of gold
- ounce of platinum
- metric ton of aggregate
- billion (currency) funds under management
- hectare
- metric ton of waste
- liter of fuel
- year
- total amount of bonds outstanding at the end of the reporting period
- total amount of debt outstanding at the end of the reporting period
- Other, please specify
Requested content
General
- If you are a member of the EP100 and/or EV100 initiative, you can use this question to report on your progress towards achieving your target.
- To correctly report the progress against a stabilization target, i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), you should treat it as a target that is reset every year. In this case, “base year” corresponds to the beginning of the reporting year where your indicator is reset to zero for that year, and “target year” corresponds to the end of the reporting year where you report the performance achieved in the reporting year.
Target reference number (column 1)
- Select a unique target reference from the drop-down menu provided to identify this target in subsequent questions and to track progress against this target in subsequent reporting years.
Year target was set (column 2)
- Enter the year in which your company has set the target.
- This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
- For year-on-year rolling targets, enter the year that you first set the target. This can be before the base year.
- If the target was set based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
Target coverage (column 3)
- If your target applies to the whole organization, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If your target does not relate to the whole organization, select the option that best describes the coverage of the target, and provide further details in the “Please explain (including target coverage)” column.
- E.g. if your target relates applies only to your office-based operations, select “Business activity”.
Target type: absolute or intensity (column 4)
- Select whether the target is an absolute or an intensity target, regardless of whether you measure it in absolute (e.g. MWh) or relative (%) values. E.g. if your target is to increase the percentage of low-carbon vehicles in the company fleet, select “absolute”.
Target type: category (column 5)
- Note that a selection must be made for both column 5 and column 6. Your data will not be saved if either column is left blank.
Metric (target numerator if reporting an intensity target) (column 6)
- Select the metric relevant to the target – for intensity targets this will be the target numerator.
- Note that only the options relative to the target category selected in column 5 will be displayed in the ORS.
- Note that a selection must be made for both column 5 and column 6. Your data will not be saved if either column is left blank.
Target denominator (intensity targets only) (column 7)
- Select the metric denominator of your climate-related intensity target. This column will only appear if you selected “Intensity” in column 4.
Base year (column 8)
- The base year is the year against which you are comparing your target
- If you have a year-on-year rolling target, your base year will be the previous reporting year.
- If you have a stabilization target, i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), your base year will be the current reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
- You cannot have a base year that is in the future.
Figure or percentage in base year (column 9)
- Enter the base year value for your target. Note that this will be a percentage if you have selected any percentage option as your metric in column 6.
- E.g. if your target is to increase the percentage of low-carbon vehicles in the company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet in a base year of 2016, enter 40 in this column.
- If you have a stabilization target i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), enter 0 (or 0%), as your performance for this target is reset at the beginning of every reporting year.
Target year (column 10)
- If you have a year-on-year rolling target or stabilization target, your target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain (including target coverage)” column.
- If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify in the Please explain column.
Figure or percentage in target year (column 11)
- Enter the target year value for your target.
- E.g. if your target is to increase the percentage of low-carbon vehicles in your company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet in a base year of 2016, enter 60 in this column.
Figure or percentage in reporting year (column 12)
- Enter the reporting year value for your target.
- E.g. if your target is to increase the percentage of low-carbon vehicles in your company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet a base year of 2016, and in the reporting year you have achieved 55% low-carbon vehicles in the company fleet, enter 55 in this column.
- If you are reporting a stabilization target i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), enter the value achieved at the end of the reporting year (e.g. 100% if you managed to maintain your target for the share of zero waste to landfill sites).
% of target achieved [auto-calculated] (column 13)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion compared with the base year will be calculated from the “Figure or percentage in base year” (column 9), “Figure or percentage in target year” (column 11), and the “Figure or percentage in reporting year” (column 12) columns. Ensure you have entered data into these columns.
- E.g. if your target is to increase the percentage of low-carbon vehicles in your company fleet to 60% by a target year of 2021, compared with 40% low-carbon vehicles in the company fleet in a base year of 2016, and in the reporting year you have achieved 55% low-carbon vehicles in the company fleet, this column will display 75, as you have achieved 75% of your targeted % increase in low-carbon vehicles compared with the base year
- Negative values indicate that you have made negative progress towards your target. E.g. in the above example, that you have reduced the percentage of low-carbon vehicles in the company fleet, when compared with the base year.
- Values greater than 100% indicate that you have exceeded your target.
Target status in reporting year (column 14)
- New - Select this option for targets that have been set in the reporting year and are still in progress.
- Underway - Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
- Achieved - Select this option for targets which have been achieved or exceeded in the reporting year.
- Expired - Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
- Revised - Select this option for targets that were set before the reporting year but a revision has been made in the reporting year, for example due to a recalculation or a change to the target year.
- Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
- Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the Please explain column.
Is this part of emissions target? (column 14)
- If the target is part of an emissions reduction target reported in C4.1a or C4.1b, please enter the emissions reduction target reference number here.
Is this target part of an overarching initiative? (column 15)
- If the climate-related target is part of an overarching initiative, select the initiative or select “Other, please specify” to outline the initiative.
Please explain (column 17)
- If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”, provide further details of your target coverage in this column. E.g. if you have selected “Country/region” in column 3, please specify which countries/regions your target covers.
- You can use this column to identify where you have a financial year or average year based target.
- If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.
Note for oil and gas and coal sector:
- If you have a methane-specific emissions reduction target that was not reported in C4.1a/b, provide details of your methane-specific emissions reduction target in this question by selecting “Methane reduction target” in column 5.
(C4.2c) Provide details of your net-zero target(s).
Question dependencies
This question only appears if you select “Net-zero target(s)” in response to C4.2.
Change from 2020
New question
Rationale
Reaching net-zero emissions at the global level is a central goal of the climate action movement. Corporate net-zero targets are a powerful opportunity for companies to go beyond science-based emissions reductions by also contributing to CO2 removal from the atmosphere and accelerating climate action outside their value chains. This question provides investors and other data users with transparency on your organization’s commitment to achieving net-zero emissions.
Response options
Please complete the following table:
Target reference number |
Target coverage |
Absolute/intensity emission target(s) linked to this net-zero target |
Target year for achieving net zero |
Is this a science-based target? |
Please explain (including target coverage) |
Select from: NZ1- NZ100
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product-level
- Other, please specify
|
Select all that apply:
- Abs1-Abs100
- Int1-Int100
- Not applicable
|
Numerical field [enter a number between 2000- 2100]
|
Select from drop-down options below
|
Text field [maximum 2,400 characters]
|
[Add Row]
Is this a science-based target? drop-down options:
- Yes, and this target has been approved by the Science-Based Targets initiative
- Yes, and we have committed to seek validation of this target by the Science Based Targets initiative in the next 2 years
- Yes, but we have not committed to seek validation of this target by the Science Based Targets initiative in the next 2 years
- No, but we are reporting another target that is science-based
- No, but we anticipate setting one in the next 2 years
- No, and we do not anticipate setting one in the next 2 years
Requested content
Target reference number (column 1)
- Select a unique target reference from the drop-down menu provided to track progress against this target in subsequent reporting years.
Target coverage (column 2)
- If the target applies to the whole company, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain (including target coverage)” column; for example, if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the column “Please explain (including target coverage)”
Absolute/intensity emission target(s) linked to this net-zero target (column 3)
- If the target is linked to emission reduction target(s) reported in C4.1a or C4.1b, select the relevant target reference number(s) here.
- If you have not reported any emission reduction targets in C4.1a or C4.1b that are linked to this net-zero target, please select “Not applicable” and explain why you are not reporting any linked emission targets in the column “Please explain (including target coverage)”.
Is this a science-based target? (column 5)
- The SBTi has yet to develop net-zero criteria. No corporate net-zero targets have been approved by the SBTi. For 2021 disclosure, companies should not select the option “Yes, and this target has been approved by the Science-Based Targets initiative”. For further information see CDP’s Technical Note on Science-Based Targets.
- If you self-assessed your target to be science-based but have not committed to seek validation by the SBTi, please select the option “Yes, but we have not committed to seek validation of this target by the Science Based Targets initiative in the next 2 years”. You should use the “Please explain (including target coverage)” column to explain why you believe your target to be science-based.
Please explain (including target coverage) (column 6)
- If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”), provide further details of your target coverage in this column; for example, if you have selected “Country/region” in column 2, please specify which countries/regions your target covers.
- Indicate the magnitude of emissions that you plan to compensate or neutralize.
- Briefly explain your planned compensation and neutralization activities.
Explanation of terms
- Net-zero target: in line with SBTi’s Foundations for Science-based Net-zero Target Setting in the Corporate Sector, a net-zero target comprises two main elements:
- a target to reduce value chain emissions by an amount consistent with net-zero in global scenarios that limit warming to 1.5C with no or limited overshoot;
- a target to neutralize the impact of residual emissions (i.e. emissions that are unfeasible for society to abate in 1.5C scenarios) by permanently removing an equivalent amount of CO2 from the atmosphere
Companies are also encouraged to participate in compensation activities (e.g. purchasing carbon credits and contributing to emissions reductions outside their value chains) during the transition to net-zero.
- Neutralization of emissions: neutralization of a company’s residual GHG emissions with an equivalent amount of carbon removals. An effective neutralization strategy involves removing carbon from the atmosphere and storing it for a long-enough period to fully neutralize the impact of any GHG that continues to be released into the atmosphere (Adapted from Foundations for Science-based Net-zero Target Setting in the Corporate Sector).
- Compensation of emissions: measurable climate mitigation outcomes, resulting from actions outside of the value-chain of a company, that compensate for emissions that remain unabated within the value-chain of a company (Ekstrom et al. 2015). While reaching a balance between emissions and removals is the end goal of a net-zero journey, companies should consider undertaking efforts to compensate unabated emissions in the transition to net-zero as a way to contribute to the global transition to net-zero. (Foundations for Science-based Net-zero Target Setting in the Corporate Sector).
Additional information
The Science Based Targets initiative has launched a process to develop the first science-based global standard for corporate net-zero targets, to ensure that companies’ net-zero targets translate into action that is consistent with achieving a net-zero world by no later than 2050.
Emissions reduction initiatives
(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or implementation phases.
Change from 2020
No change
Rationale
The answer to this question enables CDP data users to understand your organization’s commitment to reducing emissions beyond business-as-usual scenario (beyond standard maintenance/replacement activities).
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 13: Climate action
Response options
Select one of the following options:
Requested content
General
- It is acknowledged that maintenance activities can have a beneficial impact on carbon emissions. Only activities that have either been part of a defined program of emissions reduction activities or where additional investment beyond standard maintenance/replacement has been made for the purposes of reducing emissions should be reported here.
- It is acknowledged that diverse companies often have large number of emissions reduction initiatives operating over varying time periods and scales. You should answer this question in the context of the reporting year. This could include initiatives that have become operational within the reporting year (e.g. installation of new equipment, or instigation of new operational practices) or commitments that have been made in the reporting year (e.g. investments made which are yet to become fully operational).
- If you are reporting a market-based Scope 2 figure, you can reflect any renewable energy purchasing policies as a component of emissions reduction activities. Please bear in mind, however, that if you are already buying renewable energy instruments and accounting for them at a zero emissions factor, then emissions reduction activities can only be achieved as “additional purchases” to what you are already doing. Therefore, emissions reduction activities are established by comparing what you have done in the previous year and what you are proposing to do in the future.
- Measures taken to reduce Scope 3 emissions may be reported here.
- Initiatives do not need to relate to specific targets reported in C4.1a/b.
(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO2e savings.
Question dependencies
This question only appears if you select “Yes” in response to C4.3.
Change from 2020
No change
Rationale
This question demonstrates to CDP data users your organization’s progress towards reducing emissions through implementing emissions reduction initiatives.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 13: Climate action
Response options
Please complete the following table:
Stage of development
|
Number of initiatives
|
Total estimated annual CO2e savings in metric tons CO2e (only for rows marked *)
|
Under investigation
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
To be implemented*
|
|
|
Implementation commenced*
|
|
|
Implemented*
|
|
|
Not to be implemented
|
|
|
Requested content
Stage of development (column 1)
- Report the initiatives in the following stages of development:
- Under investigation: A potential initiative to reduce emissions that is being evaluated but not yet approved by your company during the reporting year.
- To be implemented: An initiative to reduce emissions that has been approved for implementation by your company but its implementation has not yet commenced during the reporting year.
- Implementation commenced: An initiative to reduce emissions was started/activated in the reporting year, but by the end of the reporting period it was not yet fully active/functional in realizing emissions reductions.
- Implemented: An initiative that has fully come into effect in the reporting year e.g. it has become fully operational/functional in realizing CO2e savings.
- Not to be implemented: A potential initiative to reduce emissions that was evaluated but not pursued by your company during the reporting year.
- Companies should report on these stages of development in the context of the reporting year. Unless the project was new to one of the stages of development in the reporting year, it should not be reported.
Number of initiatives (column 2)
- Where there are no projects in a stage of development, state 0 (zero). This column should be completed for all rows.
Total estimated annual CO2e savings in metric tons CO2e (column 3)
- Enter the aggregated estimated annual emissions savings in metric tons CO2e in column 3 for all initiatives in those stages marked with an * (to be implemented, implementation commenced, and implemented).
- It is acknowledged that the CO2e savings will be an estimate. More detail is requested on individual initiatives (or programs of activity) that have been implemented in the reporting year in C4.3b. Initiatives do not need to relate to specific targets disclosed in the questionnaire.
(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.
Question dependencies
This question only appears if you select “Yes” in response to C4.3.
Change from 2020
No change
Rationale
CDP data users are interested in understanding how you are making progress towards your emissions reduction targets, as well as other emissions-reducing actions undertaken in the reporting year.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 13: Climate action
Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.
Initiative category
|
Initiative type
|
Estimated annual CO2e savings (metric tons CO2e)
|
Scope(s)
|
Voluntary/ Mandatory
|
Annual monetary savings (unit currency – as specified in C0.4)
|
Investment required (unit currency – as specified in C0.4)
|
Payback period
|
Estimated lifetime of the initiative
|
Comment
|
Select from:
- Energy efficiency in buildings
- Energy efficiency in production processes
- Waste reduction and material circularity
- Fugitive emissions reductions
- Low-carbon energy consumption
- Low-carbon energy generation
- Non-energy industrial process emissions reductions
- Company policy or behavioral change
- Transportation
- Other, please specify
|
Select from drop-down options below
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
Select all that apply:
- Scope 1
- Scope 2 (location-based)
- Scope 2 (market-based)
- Scope 3
|
Select from:
|
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]
|
[Add Row]
Initiative type drop-down options:
Select one of the following options
Energy efficiency in buildings
- Insulation
- Maintenance program
- Draught proofing
- Solar shading
- Building Energy Management Systems (BEMS)
- Heating, Ventilation and Air Conditioning (HVAC)
- Lighting
- Motors and drives
- Combined heat and power (cogeneration)
- Other, please specify
Energy efficiency in production processes
- Waste heat recovery
- Cooling technology
- Process optimization
- Fuel switch
- Compressed air
- Combined heat and power (cogeneration)
- Wastewater treatment
- Reuse of water
- Reuse of steam
- Machine/equipment replacement
- Automation
- Electrification
- Smart control system
- Motors and drives
- Product or service design
- Other, please specify
Waste reduction and material circularity
- Waste reduction
- Product or service design
- Product/component/material reuse
- Product/component/material recycling
- Remanufacturing
- Other, please specify
Fugitive emissions reductions
- Agricultural methane capture
- Agricultural nitrous oxide reduction
- Landfill methane capture
- Oil/natural gas methane leak capture/prevention
- Refrigerant leakage reduction
- Carbon capture and storage/utilization (CCS/U)
- Other, please specify
|
Low-carbon energy consumption
- Solid biofuels
- Liquid biofuels
- Biogas
- Geothermal
- Hydropower
- Solar heating and cooling
- Solar PV
- Solar CSP
- Nuclear
- Wind
- Tidal
- Wave
- Fossil fuel plant fitted with CCS
- Low-carbon electricity mix
- Other, please specify
Low-carbon energy generation
- Solid biofuels
- Liquid biofuels
- Biogas
- Geothermal
- Hydropower
- Nuclear
- Solar heating and cooling
- Solar PV
- Solar CSP
- Wind
- Tidal
- Wave
- Fossil fuel plant fitted with CCS
- Other, please specify
Non-energy industrial process emissions reductions
- Process equipment replacement
- Process material substitution
- Process material efficiency
- Carbon capture and storage/utilization (CCS/U)
- Other, please specify
Company policy or behavioral change
- Supplier engagement
- Customer engagement
- Site consolidation/closure
- Change in procurement practices
- Resource efficiency
- Waste management
- Other, please specify
Transportation
- Business travel policy
- Teleworking
- Employee commuting
- Company fleet vehicle replacement
- Company fleet vehicle efficiency
- Other, please specify
|
Requested content
General
- Companies are asked to provide information on any emissions reduction initiatives made.
- There is no need to record every action – initiatives can be recorded on a programmatic level. Companies with large numbers of initiatives should prioritize those that have the potential to provide a meaningful contribution to emissions reductions.
- It is acknowledged that maintenance activities can have a beneficial impact on carbon emissions. Only those activities that have either been part of a defined program of emissions reduction initiatives or where additional investment beyond standard maintenance/replacement has been made for the purposes of reducing emissions should be reported here.
- Where initiatives are part of routine maintenance or necessary equipment replacement (e.g. necessary replacement of equipment that has an additional benefit in emissions reduction), enter the additional (premium) costs and additional monetary savings associated with the lower emissions model (if applicable).
- It should be noted that not all emissions reduction initiatives carry with them a significant cost – many initiatives, such as resource efficiency, have fairly negligible investment costs yet offer potentially high monetary savings. These initiatives should be included in the table, with the minimal investment required reflected in the “Investment required” column, and by selecting the payback of less than a year option (if this is the case).
Initiative category (column 1)
- Select the option from the drop-down list that best describes the initiative. Note that these are broad categories only, with more detailed options provided in the “Initiative type” column.
- Energy efficiency in buildings – Select this option for all energy efficiency initiatives relating to buildings, including those relating to the building fabric (e.g. insulation, draught-proofing, etc.) and those relating to building services (e.g. HVAC, BEMS etc.)
- Energy efficiency in production processes – Select this option for all energy efficiency initiatives relating to processes (e.g. waste heat recovery, process optimization, compressed air, combined heat and power, automation, smart control systems, product/service design to improve energy efficiency etc.)
- Waste reduction and material circularity – Select this option for circular economy and waste reduction initiatives (e.g. reuse, recycling, remanufacturing, product/service design to reduce waste etc.).
- Fugitive emissions reductions – Select this option for initiatives to reduce fugitive emissions (e.g. methane capture, agricultural nitrous oxide reductions, refrigerant leakage reduction etc.)
- Low-carbon energy consumption – Select this option for emissions reduction initiatives relating to increasing low-carbon energy consumption i.e. energy from renewable sources, nuclear plants and fossil-fuel plants fitted with carbon capture and storage. Note that if increasing low carbon energy consumption has been a component of your emissions reduction initiatives please also report the other accompanying information in C6.2,C6.3, C7.5 and C8.2e and read the information provided in the worked example of green power accounting.
- Low-carbon energy generation – Select this option for initiatives relating to the installation of low-carbon energy generating facilities (renewable, nuclear or fossil-fuel plants fitted with carbon capture and storage) at your own site or at others on behalf of your clients.
- Non-energy industrial process emissions reductions – Select this option only for initiatives to reduce emissions from industrial production processes which chemically or physically transform materials (e.g. CO2 from the calcinations step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting etc.)
- Company policy or behavioral change – Select this option for initiatives relating to a change in company policy (e.g. value chain engagement, a new procurement policy) or an organizational behavioral change (e.g. resource efficiency improvements such as reducing paper use, waste management improvements such as reducing food waste etc.). Note that changes in company transportation policies should not be reported here but under the initiative category “Transportation”
- Transportation – Select this option for initiatives relating to employee travel and commuting and the company fleet.
- Other, please specify – If none of the listed categories are applicable to your initiative, select this option and specify the initiative.
- Note that a selection must be made for both column 1 and column 2. Your data will not be saved if either column is left blank.
Initiative type (column 2)
- Select the type of initiative you have undertaken from the drop-down options provided. Note that only initiative types relative to the initiative category selected in the previous column will be displayed in the ORS.
- If none of the provided options are applicable to your initiative, select “Other, please specify” and provide details of the initiative type.
- Note that a selection must be made for both column 1 and column 2. Your data will not be saved if either column is left blank.
Estimated annual CO2e savings (metric tons CO2e) (column 3)
- Enter the expected annual CO2e savings in all emission Scopes, in metric tons, occurring with the initiative in place. It is acknowledged that this figure is likely to be an estimate.
- Where savings occur on a non-annual basis, average the savings so that an annual figure can be provided.
- Where the initiative has not been in place for the entire reporting period, estimate and report the emissions that would be saved in a 12-month period, so that an annual figure can be provided.
Scope(s) (column 4)
- Select the Scope(s) where the emission reductions are expected to occur.
- If the initiative covers multiple Scopes, select all Scopes where emissions reductions are expected to occur.
- If you select Scope 3, specify the Scope 3 category(-ies) in the “Comment” column.
Voluntary/Mandatory (column 5)
- Select whether the initiative is mandatory (i.e. to comply with regulation), or a voluntary initiative.
Annual monetary savings (unit currency – as specified in C0.4) (column 6)
- Enter the amount of monetary savings per year expected from the initiative (e.g. in reduced energy costs) once it is fully operational.
- The number entered should be appropriate to the currency selected in C0.4.
- Where savings occur on a non-annual basis, please average out so that an annual figure can be provided.
Investment required (unit currency – as specified in C0.4) (column 7)
- Enter the total investment required for the initiative over its lifetime.
- The number entered should be appropriate to the currency selected in question C0.4.
Payback period (column 8)
- The payback period reflects the time it takes for the investment made to be offset by the monetary savings from the initiative (Payback Period = Investment/Annual monetary savings).
- The payback period is not applicable (therefore select "No payback") if:
- the initiative does not require any investment and you have entered 0 (zero) in column 7 (Investment required (unit currency, as specified in C0.4)) AND/OR
- the initiative does not bring any monetary savings and you have entered 0 (zero) in column 6 (Annual monetary savings (unit currency – as specified in C0.4))
Estimated lifetime of the initiative (column 9)
- This column refers to the duration of cash flow savings from carbon mitigation investments. This data point, in years, allows data users to calculate the Internal Rate of Return of the project, also using the “Annual monetary savings,” “Investment required” and “Payback period” information.
- If you have multiple emissions reduction initiatives for each initiative type, select the median to answer this column.
Note for electric utility sector companies:
- For electric utilities, emissions reduction initiatives may include fuel switching at existing plants or investment in lower-emitting methods of generation. Please disclose this information if applicable.
Note for agricultural sector companies:
- Agricultural sector companies are specifically asked to report on initiatives implemented to reduce emissions from agricultural/forestry, processing/manufacturing activities. E.g.:
- Adoption of low impact agriculture/forestry practices
- Increased efficiency of energy use during manufacturing
- Reduced fleet use of fossil fuels or increased use of renewable fuels in transportation
Explanation of terms
- Building energy management system (BEMS): An integrated system comprising hardware, software, and services that leverage information and communication technology for monitoring, automating, and controlling energy consumption. Examples include smart meters and smart billing, data analytics, performance optimization and others.
- Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
- Process emissions: emissions from industrial production processes which chemically or physically transform materials (e.g. CO2 from the calcinations step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.)
(C4.3c) What methods do you use to drive investment in emissions reduction activities?
Question dependencies
This question only appears if you select “Yes” in response to C4.3.
Change from 2020
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 initiatives are identified. If your company uses an internal carbon price you are encouraged to report this here in addition to in C11.
Method (column 1)
- Select the types of methods that you employ to help to channel funds towards emissions reduction initiatives.
Comment (column 2) (optional)
- Provide additional details or examples as necessary.
Additional information
Marginal Abatement Cost Curves
- Marginal Abatement Cost Curves, or MACCs, provide a method of evaluating potential emissions reduction activities. They provide a visual comparison of the marginal abatement costs for different projects.
- MACCs can be generated to evaluate options at any level of organization – from individual business divisions, to the overall business and to sectors and countries, 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.
- Those projects/initiatives on the “left hand side” of the
MACC are those where there are cost savings to be made over the lifetime of the
project as a result of the emissions savings made, and therefore, even without
a commitment to carbon reduction investment, should be implemented from a cost
saving point of view. Where the bars extend above the line, positive costs are
associated with the proposals. Here the MACC curve can be used to suggest the
lowest cost options for achieving a particular target. Using the example above,
savings of 9.5MtCO
2 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 2020
No change
Rationale
Emissions reduction initiatives are crucial to meeting emissions targets and reducing negative environmental impacts. CDP data users need to know why you do not engage in the best practice of actively reducing your emissions.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Provide a company-specific explanation as to why you do not have any emissions reduction initiatives active in the reporting year, and if you have any plans to implement them in the future. If you plan to implement emissions reduction initiatives in the future, estimate a timeframe of when you will begin to implement them.
- If you do not have emissions reduction initiatives active in the reporting year because you have not identified any, provide more information regarding your process for identifying potential initiatives. E.g. if you investigated an area of organizational activities but the investigation did not result in potential initiatives, provide information on your investigations and explain why emissions reduction initiatives did not come to fruition.
Question C4.4 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
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 2020
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:
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 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 refer to a product/service that allows a third party to avoid emissions.
More information
Note for financial services sector companies:
- You should consider relevant low-carbon products such as green bonds, green infrastructure, green loans/mortgages, green insurance products, specialty climate-related risk advisory services and others.
(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 2020
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
|
[FINANCIAL SERVICES ONLY] % of total portfolio value
|
[FINANCIAL SERVICES ONLY] Asset classes/product types
|
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
- The EU Taxonomy for environmentally sustainable economic activities
- Addressing the Avoided Emissions Challenge- Chemicals sector
- Evaluating the carbon-reducing impacts of ICT
- Estimating and Reporting the Comparative Emissions Impacts of Products (WRI)
- Green Bond Principles (ICMA)
- ISO 14040/44 Standards [Financial services only]
- Other, please specify
|
Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]
|
Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]
|
Select from:
Investing
- Fixed Income
- Listed Equity
- Private Equity
- Real estate/Property
- Infrastructure
- Commodities
- Forestry
- Hedge funds
- Mutual funds
- Fund of hedge funds
- Derivatives
- Other, please specify
Bank lending
- Corporate Loans
- Commercial Loans
- Retail Loans
- Commercial Mortgages
- Residential Mortgages
- Corporate Real Estate
- Asset Financing
- Project Finance
- Other, please specify
Insurance underwriting
- Property & Casualty
- Life
- Health
- Marine
- Reinsurance
- Other, please specify
|
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. Enter the figure for ‘revenue’ as would be declared in your financial statement (sometimes referred to a ‘turnover’ or ‘sales’). Under the International Financial Reporting Standard this would be the inflow of income arising in the course of an entity’s ordinary activities, with deductions made (such as for sales returns, allowances and discounts). This figure is commonly used by investors to assess the income-generating ability of a business.
[FINANCIAL SERVICES ONLY] % of total portfolio value
- Provide a percentage value for the proportion of products and/or services that you classify as low-carbon products or that enable a third party to avoid GHG emissions in relation to your total portfolio value. Portfolio value can be based on assets under management, total or outstanding commitments, premiums, committed capital and/or other.
[FINANCIAL SERVICES ONLY] Asset classes/product types
- Select from the dropdown list the asset classes that the products/services fall under. If there are other asset classes that are relevant to your organization but are not listed in the drop-down list, select “Other, please specify” and disclose the asset class.
- Note that you will be required to make two selections for this column. One for the activity and one for the asset class. Your data will not be saved if one selection is left blank.
Comment (column 6) (optional)
- 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.
- [Financial services only] Provide a description of the basis of your calculation for the % of total portfolio value.
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.
|
C5 Emissions methodology
Module Overview
A meaningful and consistent comparison of emissions over time is essential for managing climate-related issues. This module allows companies to provide the base year and base year emissions figure and provide details of the standard, protocol, or methodology used to collect activity data and calculate emissions.
Key changes
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 2020
No change
Rationale
A meaningful and consistent comparison of emissions over time requires that companies set a performance datum with which to compare current emissions.
Response options
Please complete the following table:
Scope
|
Base year start
|
Base year end
|
Base year emissions (metric tons CO2e)
|
Comment
|
Scope 1
|
Use the calendar button or enter dates manually in the format DD/MM/YYYY
|
Use the calendar button or enter dates manually in the format DD/MM/YYYY
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Text field [maximum 2,400 characters]
|
Scope 2 (location-based)
|
|
|
|
|
Scope 2 (market-based)
|
|
|
|
|
Requested content
General
- This question requests a base year for your greenhouse gas inventory. This may be the same as the base year for your targets, but not necessarily. If your 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 emissions.
Change from 2020
No change
Rationale
CDP data users need to understand what methods have been used to calculate emissions.
Response options
Select all that apply from the following options:
- ABI Energia Linee Guida
- Act on the Rational Use of Energy
- American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009
- Australia - National Greenhouse and Energy Reporting Act
- Bilan Carbone
- Brazil GHG Protocol Programme
- Canadian Association of Petroleum Producers, Calculating Greenhouse Gas Emissions, 2003
- China Corporate Energy Conservation and GHG Management Programme
- Defra Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance, 2019
- ENCORD: Construction CO2e Measurement Protocol
- Energy Information Administration 1605(b)
- Environment Canada, Sulphur hexafluoride (SF6) Emission Estimation and Reporting Protocol for Electric Utilities
- Environment Canada, Aluminum Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Base Metals Smelting/Refining, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Cement Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Primary Iron and Steel Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Lime Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Primary Magnesium Production and Casting, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Metal Mining, Guidance Manual for Estimating Greenhouse Gas Emissions
- EPRA (European Public Real Estate Association) guidelines, 2011
- EPRA (European Public Real Estate Association) Sustainability Best Practice recommendations Guidelines, 2017
- European Union Emission Trading System (EU ETS): The Monitoring and Reporting Regulation (MMR) – General guidance for installations
- European Union Emissions Trading System (EU ETS): The Monitoring and Reporting Regulation (MMR) – General guidance for aircraft operators
- French methodology for greenhouse gas emissions assessments by companies V4 (ADEME 2016)
- Hong Kong Environmental Protection Department, Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings, 2010
- ICLEI Local Government GHG Protocol
- IEA CO2 Emissions from Fuel Combustion
- India GHG Inventory Programme
- International Wine Industry Greenhouse Gas Protocol and Accounting Tool
- IPCC Guidelines for National Greenhouse Gas Inventories, 2006
- IPIECA's Petroleum Industry Guidelines for reporting GHG emissions, 2003
- IPIECA’s Petroleum Industry Guidelines for reporting GHG emissions, 2nd edition, 2011
- ISO 14064-1
- Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act on Promotion of Global Warming Countermeasures (2005 Amendment)
- Korea GHG and Energy Target Management System Operating Guidelines
- New Zealand - Guidance for Voluntary, Corporate Greenhouse Gas Reporting
- Philippine Greenhouse Gas Accounting and Reporting Programme (PhilGARP)
- Programa GEI Mexico
- Recommendations for reporting significant indirect emissions under Article 173-IV (ADEME 2018)
- Regional Greenhouse Gas Initiative (RGGI) Model Rule
- Smart Freight Centre: GLEC Framework for Logistics Emissions Methodologies
- Taiwan - GHG Reduction Act
- Thailand Greenhouse Gas Management Organization: The National Guideline Carbon Footprint for organization
- The Climate Registry: Electric Power Sector (EPS) Protocol
- The Climate Registry: General Reporting Protocol
- The Climate Registry: Local Government Operations (LGO) Protocol
- The Climate Registry: Oil & Gas Protocol
- The Cool Farm Tool
- The GHG Indicator: UNEP Guidelines for Calculating Greenhouse Gas Emissions for Businesses and Non-Commercial Organizations
- The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
- The Greenhouse Gas Protocol Agricultural Guidance: Interpreting the Corporate Accounting and Reporting Standard for the Agricultural Sector
- The Greenhouse Gas Protocol: Public Sector Standard
- The Greenhouse Gas Protocol: Scope 2 Guidance
- The Tokyo Cap-and Trade Program
- Toitū carbonreduce programme
- Toitū carbonzero programme
- US EPA Center for Corporate Climate Leadership: Direct Fugitive Emissions from Refrigeration, Air Conditioning, Fire Suppression, and Industrial Gases
- US EPA Center for Corporate Climate Leadership: Indirect Emissions From Events and Conferences
- US EPA Center for Corporate Climate Leadership: Indirect Emissions From Purchased Electricity
- US EPA Center for Corporate Climate Leadership: Direct Emissions from Stationary Combustion Sources
- US EPA Center for Corporate Climate Leadership: Direct Emissions from Mobile Combustion Sources
- US EPA Mandatory Greenhouse Gas Reporting Rule
- US EPA Emissions & Generation Resource Integrated Database (eGRID)
- VfU (Verein fur Umweltmanagement) Indicators Standard
- WBCSD: The Cement CO2 and Energy Protocol
- World Steel Association CO2 emissions data collection guidelines
- Other, please specify
Requested content
General
- There are a variety of standards, methodologies, and protocols available for collecting and reporting GHG data, but the large majority of companies refer to the GHG Protocol.
- The appropriateness of an emissions calculation methodology should be determined on a case-by-case basis, and it is good practice for the methods used to estimate emissions and the underlying data to be externally verified.
- CDP makes no judgments on standards or methodologies applied by companies to produce their inventories. However, we expect that any tool used will follow the best practice and observe important aspects such as the accuracy and completeness principles of standards similar to the GHG Protocol. CDP encourages companies to use the GHG Protocol Corporate Standard when national standards are not specified.
- If the methodology you have used is not listed, or if you have used a combination of methodologies, select “Other, please specify;” and indicate the methodology/combination used.” You may provide more details C5.2a.
(C5.2a) Provide details of the standard, protocol, or methodology you have used to collect activity data and calculate emissions.
Question dependencies
This question only appears if you select “Other, please specify” in response to C5.2.
Change from 2020
No change
Rationale
CDP data users need to understand what methods have been used to calculate emissions.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Describe the methodology(ies) you used to collect activity data and calculate your emissions, including any not listed in C5.2.
C6 Emissions data
Module Overview
Reporting emissions is best practice and a prerequisite to understanding and reducing negative environmental impacts.
This module examines emissions data details and is aligned with TCFD Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
Key changes
- Modified guidance:
- C6.4a – on emissions excluded due to a recent acquisition;
- C6.10 – on reporting changes in emissions intensity due to COVID-19 pandemic.
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 2020
No change
Rationale
Reporting emissions is best practice and a prerequisite to understanding and reducing negative environmental impacts. CDP asks this question to ensure companies are measuring their carbon footprints from direct emissions.
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
Please complete the following table:
Year
|
Gross global Scope 1 emissions (metric tons CO2e)
|
Start date
|
End date
|
Comment
|
Reporting year
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
[This cell is not seen in ORS]
|
[This cell is not seen in ORS]
|
Text field [maximum 2,400 characters]
|
Past year 1 [Only ‘appears’ if 1 year or 2 years or 3 years is selected in column 4 of C0.2]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
From: [DD/MM/YYYY]
|
To: [DD/MM/YYYY]
|
Text field [maximum 2,400 characters]
|
Past year 2 [Only ‘appears’ if 2 years or 3 years is selected in column 4 of C0.2]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
From: [DD/MM/YYYY]
|
To: [DD/MM/YYYY]
|
Text field [maximum 2,400 characters]
|
Past year 3 [Only ‘appears’ if 3 years is selected in column 4 of C0.2]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
From: [DD/MM/YYYY]
|
To: [DD/MM/YYYY]
|
Text field [maximum 2,400 characters]
|
Requested content
General
- Emissions must be reported in gross, not net figures. Therefore, negative numbers are not allowed.
- Putting in zero suggests that you have measured your emissions and that they are equal to zero.
- Gross emissions are requested so that data users can account for GHG emissions from sources owned or controlled by your organization before any reductions for offsets are made, as per the GHG Protocol Corporate Standard. This transparency is meant to provide users with the most accurate portrayal of the emissions created within your company's boundary.
- Scope 1 emissions should be reported in metric tons of CO2e. Common conversion factors are included in the Technical Note "Units of Measure Conversions".
- Special requirements for carbon sequestration, captured & stored and transferred CO2, transfer in – transfer out, and enhanced oil recovery are explained in the Technical Note "Special conditions for reporting Scope 1 emissions".
- Emissions estimates are acceptable, as long as there is transparency with regards to the estimation approach (what is estimated and how) and the data used for the analysis is adequate to support the objectives of the inventory. If applicable to your organization's reporting of Scope 1 emissions, please outline this in the comment column.
Note for first-time responders
- If you are a first-time responder, please provide gross global Scope 1 emissions data for the current reporting year and 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 energy 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 2020
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 2020
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:
Year |
Scope 2, location-based
|
Scope 2, market-based (if applicable)
|
Start date
|
End date
|
Comment
|
Reporting year
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
[This cell is not seen in ORS] |
[This cell is not seen in ORS] |
Text field [maximum 2,400 characters]
|
Past year 1 [Only ‘appears’ if 1 year or 2 years or 3 years is selected in column 4 of C0.2]
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
From: [DD/MM/YYYY]
|
To: [DD/MM/YYYY]
|
Text field [maximum 2,400 characters]
|
Past year 2 [Only ‘appears’ if 2 years or 3 years is selected in column 4 of C0.2]
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
From: [DD/MM/YYYY]
|
To: [DD/MM/YYYY]
|
Text field [maximum 2,400 characters]
|
Past year 3 [Only ‘appears’ if 3 years is selected in column 4 of C0.2]
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
From: [DD/MM/YYYY]
|
To: [DD/MM/YYYY]
|
Text field [maximum 2,400 characters]
|
Requested content
General
- Negative numbers are not allowed as reporting needs to be gross, not net figures. If you answered in C6.2 that you are not reporting a Scope 2 location-based figure and/or you answered that you are unable to report a Scope 2 market-based figure, please leave the corresponding column(s) in C6.3 blank.
- Putting in zero would suggest that you have measured your emissions and that they are equal to zero.
- Emissions estimates are acceptable, as long as there is transparency with regards to the estimation approach (what is estimated and how) and the data used for the analysis is adequate to support the objectives of the inventory.
- For more information about CDP’s current recommendations on what emission factor to use for electricity accounting, where you can find emission factors and the different types there are, please check the Technical Note“Accounting of Scope 2 emissions.” Please also note that electricity produced by either CH4 or N2O is to be included in the emission factor.
- For further information, please also see GHG Protocol Scope 2 Guidance.
- For more detailed information beyond what is provided in this guidance and technical annexes, consult your electricity suppliers, carbon advisor, or verifier/assurer.
Note for first-time responders
- If you are a first-time responder, please provide gross global Scope 2 emissions data for the current reporting year and 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 2020
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:
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 2020
Modified guidance
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 during the reporting period.
- Emissions are not evaluated – select this option if you have excluded Scope 1 emissions from this source but have not evaluated the relevance of these emissions.
Relevance of Scope 2 (location-based or market-based) emissions from this source (column 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 during the reporting period.
- Emissions are not evaluated – select this option if you have excluded Scope 2 emissions from this source but have not evaluated the relevance of these emissions.
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
Worked example of excluded sources
In this instance presume that the company has selected ‘“Operational control’” in C0.5. Note that this example company response would be ineligible for the climate change A List due to excluded, relevant emissions and unevaluated, potentially relevant emissions.
Source
|
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
Relevance in GHG reporting
- The GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (page 24) provides the following definition of relevance for GHG reporting: “A relevant GHG report contains the information that users – both internal and external to the company – need for their decision making. Companies should use the principle of relevance when determining whether to exclude any activities from the inventory boundary. Companies should also use the principle of relevance as a guide when selecting data sources. Companies should collect data of sufficient quality to ensure that the inventory is relevant (i.e., that it appropriately reflects the GHG emissions of the company and serves the decision-making needs of users) (...) and should not exclude any activities from the inventory that would compromise the relevance of the reported inventory.”
- A practical rule of thumb often applied to evaluate the relevance of an emissions’ source or activity is to consider the sources that contribute to 95% of the emissions inventory once sources are listed by the size of emissions. This rule is of practical value in particular when a low number of sources contribute to a large proportion of the total emissions while a large number of sources contribute to a small percentage of emissions. In order to utilize the 95% threshold, the emissions from all sources or activities need to be quantified or estimated to ensure they meet this threshold. Relevance should apply not only to the size of emissions, but also other criteria, such as the potential to drive emissions reductions, the cost-benefit of gathering the data, stakeholder expectations, and potential uses of the data.
- Relevance of emissions should not be limited to sustainability topics that have a significant financial impact on your organization, or “materiality”.
- Examples of circumstances where the reasons for excluding known emissions sources from the GHG statement may not be reasonable include:
- The entity has relevant Scope 1 emissions but only includes Scope 2 emissions in its CDP disclosure.
- The boundary has been defined, but particular geographies within the boundary are not being reported although they represent relevant emissions; and
- The emissions reported exclude business divisions/areas of business with relevant emissions, 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 gross global Scope 3 emissions, disclosing and explaining any exclusions.
Change from 2020
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:
Scope 3 category |
Evaluation status
|
Metric tons CO2e
|
Emissions calculation methodology
|
Percentage of emissions calculated using data obtained from suppliers or value chain partners
|
Please explain |
Purchased goods and services
|
Select from:
- Relevant, calculated
- Relevant, not yet calculated
- Not relevant, calculated
- Not relevant, explanation provided
- Not evaluated
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
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 [row hidden for FS sector companies, data point requested in C-FS14.1a]
|
|
|
|
|
|
Other (upstream)
|
|
|
|
|
|
Other (downstream)
|
|
|
|
|
|
Requested content
General
- According to the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (page 107): “Any estimates of avoided
emissions must be reported separately from a company’s Scope 1, Scope 2, and
Scope 3 emissions, rather than included or deducted from the Scope 3
inventory”. In the context of your CDP response, you can provide information on
actions you take to reduce your Scope 3 emissions in question C4.3b on
emissions reduction initiatives.
- You should complete every row of the table (with the
exception of the last two rows “Other (upstream)” and “Other (downstream)”
which are optional), but not necessarily all columns.
- The columns that you need to complete in response to
question C6.5 will depend on your selection made in the “Evaluation status”
column and are summarized in the guidance below for column 2 “Evaluation
status”.
Scope 3 category (column 1)
- This column is already completed in the ORS and all
categories will appear. The categories of Scope 3 emissions have been taken
from the Greenhouse Gas Protocol’s
Corporate Value Chain (Scope 3) Accounting and Reporting Standard, published in September 2011. Companies should refer to
the standard for information on the emissions sources that each category
comprises and additional information on how to calculate these emissions.
Evaluation status (column 2)
This column should be completed for all Scope 3 categories,
with the exception of “Other (upstream)” and “Other (downstream)” – these two
rows should only be used if companies have a source of Scope 3 emissions that
is not provided in the categories above. The evaluation status includes two
components: whether a Scope 3 category is relevant to your business and whether
you have calculated the emissions in that category. Relevance should be determined
with reference to the GHG Protocol Scope 3 standard – 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 category is relevant to your business but you have not
yet calculated the emissions associated with it.
- Not relevant, calculated - Select this option if you know
that this 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 CO
2e, 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 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.
Please explain (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.
Note for agricultural sector companies:
- 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 companies:
- CDP has produced sector-specific guidance for estimating
Scope 3 category 11 (use of sold products) emissions for the Oil & Gas and
Coal sectors.
Note for financial services sector companies:
- For financial services sector companies, Scope 3 Category 15 “Investments” emissions has been pulled out of question C6.5 and is requested to be disclosed in C-FS14.1a. As the majority of emissions occur in relation to financial products and services and/or investments, financed emissions, or Scope 3 Category 15 “Investments” emissions as defined by the GHG Protocol is the most relevant category to financial services organizations.
- Thus, Row 15 “Investments” is hidden in this question,
please disclose this in C-FS14.1a.
Note for real estate sector companies:
- For real estate companies, the categories that are likely to
be highly relevant and should always be evaluated are:
- Capital goods
- Use of sold products
- End-of-life treatment of sold products
- Downstream leased assets
- You may wish to refer to “Guide to Scope 3 Reporting in Commercial Real Estate” (UK Green Building Council, 2019) that has been
specifically developed to build consensus and promote common approaches to
reporting Scope 3 emissions. It aims to provide clarity on interpreting the GHG
Protocol for commercial real estate companies and enable consistency in
reporting across the sector.
Note for capital goods sector companies:
- For capital goods companies, the categories that are likely to be highly relevant and should always be evaluated are:
- Purchased goods and services
- Use of sold products
- End-of-life treatment of sold products
Additional information
- 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.
Question C6.6 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Capital goods
- Construction
- Food, beverage & tobacco
- Paper & forestry
- Real Estate
Biogenic carbon data
(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to your organization?
Change from 2020
No change
Rationale
The GHG Protocol’s Corporate Accounting and Reporting Standard outlines that carbon dioxide emissions from biogenic carbon shall be reported separately from the Scopes.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Response options
Select one of the following options:
Requested content
General
- Carbon dioxide emissions from biogenic carbon occur during the combustion of biomass (e.g. in the form of biofuels such as biogas) or from certain land use management practices. If any of these are relevant to your organization, you should respond “Yes”. 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
- Biogenic carbon: Refers to carbon which is contained in biomass (both above-ground and below-ground), dead organic matter, soil organic matter, and harvested products.
(C6.7a) Provide the emissions from biogenic 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 2020
No change
Rationale
This question provides data users insight into the CO2 emissions from biogenic 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:
CO2 emissions from biogenic carbon (metric tons CO2)
|
Comment
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Text field [maximum 2,400 characters]
|
Requested content
CO2 emissions from biogenic carbon (metric tons CO2) (column 1)
- Please enter your total direct emissions of CO2 from biogenic carbon, for example, CO2 emissions from combustion of biofuels.
- This figure specifically requests information on direct CO2 emissions that occur from sources that are owned or controlled by the company. However, if you would like to report your indirect emissions from biogenic 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 biomass 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, 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 2020
Modified guidance
Rationale
Intensity measures describe an organization’s CO2e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth etc. Many companies and investors have historically tracked environmental performance with intensity ratios.
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 tons CO2e)
|
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]
|
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.
- If your change in emissions intensity is attributed to a decline or an increase in your business output (products or services) due to the COVID-19 pandemic please state this in the column “Reason for change” and state how your output was affected.
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.
- Specify if this change is due to emission reduction initiatives, including those reported in C4.3b.
Note for coal sector companies:
- Coal sector companies are requested to provide an emissions intensity figure per unit of currency total revenue and in addition, per metric ton of coal.
Note for electric utility sector companies:
- Electric utility sector organizations are requested to provide an emissions intensity figure per unit of currency total revenue and in addition, report your organization’s gross global combined Scope 1 and 2 emissions intensity per MWh of gross power generated and/or per MWh of power transmitted – make sure to select megawatt hour generated (MWh) and/or megawatt hour transmitted (MWh).
Note for oil and gas sector companies:
- Oil and gas sector organizations are requested to provide an emissions intensity figure per unit of currency total revenue.
- Please note that question C-OG6.12 asks oil and gas organizations to provide the intensity figures for Scope 1 emissions (metric tons CO2e) per unit of hydrocarbon category.
Note for transport OEMs and transport services sector companies:
- Transport OEMs and transport services sector organizations are requested to provide an emissions intensity figure per unit of currency total revenue.
- Please note that, dependent on the extent you are able to disaggregate your emissions intensity for each transport mode between Scopes 1, 2, and 3: Category 4 upstream transportation and distribution, transport services organizations are asked to provide primary intensity (activity-based) metrics that are appropriate to emissions from transport activities in Scope 1, 2, and 3 in question C-TS6.15.
Note for real estate sector companies:
- In addition to reporting emissions intensity figure per unit of currency total revenue, real estate companies should consider reporting emissions intensity by occupants or square area.
Note for capital goods sector companies:
- In addition to reporting an emissions intensity figure per unit of currency total revenue, capital goods companies should consider reporting emissions intensity by unit of production or unit of service provided.
- If you measure the emissions intensity of specific products or product ranges, you will have the opportunity to provide this information in questions C-CG8.5 and C-CG8.5a.
Explanation of terms
- Intensity metrics: Intensity metrics describe an organization’s CO2e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth. Intensity is calculated by dividing the CO2e emissions figure (the numerator) by an alternative business metric (the denominator), such as the number of full-time equivalent employees, the revenue or tons of aggregate produced.
- Revenue: Income arising in the
course of an entity’s ordinary activities (less returns, allowances and
discounts) - before deducting costs for the goods/services sold and operating
expenses to arrive at profit (based on the
International Financial Reporting Standard).
Example response
Worked example of calculating emissions intensities figures
A reporting organization has gross total combined Scope 1 and 2 emissions of 300,000 metric tons CO2e, revenue of 5 Million US$ and 3,000 FTE employees. In this case, the company could calculate and report its emission intensity figures by revenue and by FTE as follows:
1. Emissions intensity in metric tons CO2e per unit currency total revenue
Intensity = 300,000 (metric tons CO2e)/5,000,000 (US$)= 0.06
2. Emissions intensity in metric tons CO2e per FTE employee
Intensity = 300,000 (metric tons CO2e)/3,000 (FTE employee)= 100
Intensity figure
|
Metric numerator (Gross global combined Scope 1 and 2 emissions)
|
Metric denominator
|
Metric denominator: Unit total
|
Scope 2 figure used
|
% change from previous year
|
Direction of change
|
Reason 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
|
C7 Emissions breakdown
Module Overview
This module enables respondents to break down Scope 1 and Scope 2 emissions by country, business division, facility and sector.
By breaking down emissions by country or region, this data can be made available to regions, states and sub-national bodies to help guide the development of emissions-related legislation.
Breaking down emissions by business division, facility and activity grants data users and investors transparency into the sources of a company's Scope 1 and 2 emissions and allows tracking the performance of divisions and individual facilities over time.
The module also requests data on emissions other than carbon dioxide. Because these gases are often only reported in CO2-equivalents (CO2e), their contribution to overall emissions is sometimes masked.
Key changes
- Modified guidance: C7.9a - on reporting changes in emissions due to COVID-19 pandemic.
Sector-specific content
Additional questions on emission breakdowns for the following high-impact sectors:
- Agricultural commodities
- Capital goods
- Cement
- Chemicals
- Coal
- Electric utilities
- Food, beverage & tobacco
- Metals & mining
- Oil & gas
- Paper and forestry
- Steel
- Transport original equipment manufacturers (OEMs)
- Transport services
Pathway diagram - questions
This diagram shows the general questions contained in module C7. To access question-level guidance, use the menu on the left to navigate to the question.
Scope 1 breakdown: GHGs
(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?
Change from 2020
No change
Rationale
For many sectors and business activities, greenhouse gases other than carbon dioxide are significant and relevant. Since these gases are often only reported in CO2-equivalents (CO2e), their contribution to overall emissions is sometimes masked. CDP therefore requests companies to break down their gross Scope 1 emissions by GHG type.
Response options
Select one of the following options:
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
(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 2020
No change
Rationale
For many sectors and business activities, greenhouse gases other than carbon dioxide are significant and relevant. Since these gases are often only reported in CO2-equivalents (CO2e), their contribution to overall emissions is sometimes masked. CDP therefore requests companies to break down 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 3 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.”
Scope 1 breakdown: country
(C7.2) Break down your total gross global Scope 1 emissions by country/region.
Change from 2020
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 and 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 3 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 "Country 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)
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 2020
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 ORS 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.
- 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.
- 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 2020
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 3 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 2020
No change
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 3 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 2020
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 3 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 2 breakdown: country
(C7.5) Break down your total gross global Scope 2 emissions by country/region.
Change from 2020
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 for in Scope 2 market-based approach (MWh)
|
Select from a drop-down list of countries and regions. Please see the Technical Note “Country and 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 3 decimal places and no commas]
|
Numerical field [enter a number from 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a number 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 (C8.2e).
- 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).
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.
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).
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 accounted for in Scope 2 market-based approach (MWh) (column 5)
- This column should be used to disclose the amounts of electricity, heat,
steam or cooling that was accounted at a zero emission factor (0 metric tonnes
CO2e/MWh) 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, heat, steam, or cooling that comes
from low carbon sources 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 the figure reported
in this column should be equal to or
lower than the figure reported in column “Purchased and consumed electricity,
heat, steam or cooling (MWh)” (column 4)
Explanation of terms
- Low-carbon energy: in line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
Scope 2 breakdown: business breakdowns
(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.
Change from 2020
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 ORS 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.
- 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.
- 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 2020
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 3 decimal places and no commas]
|
Numerical field [enter a number from 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
[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 2020
No change
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 3 decimal places and no commas]
|
Numerical field [enter a number from 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
[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 2020
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 3 decimal places and no commas]
|
Numerical field [enter a number from 0-99,999,999,999 using a maximum of 3 decimal places and no commas]
|
[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.
Question C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7 only applies to organizations with activities in the following sectors:
- Cement
- Chemicals
- Coal
- Metals & mining
- Oil & gas
- Steel
- Transport OEMS
- Transport services
Question C7.8 only applies to organizations with activities in the following sectors:
- Chemicals
- Transport manufacturers
Emissions performance
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?
Change from 2020
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 2020
Modified guidance
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 3 decimal places and no commas]
|
Select from:
- Increased
- Decreased
- No change
|
Numerical field [enter a number from 0-999 using a maximum of 4 decimal places and no commas]
|
Text field [maximum 2,400 characters]
|
Other emissions reduction activities
|
|
|
|
|
Divestment
|
|
|
|
|
Acquisitions
|
|
|
|
|
Mergers
|
|
|
|
|
Change in output
|
|
|
|
|
Change in methodology
|
|
|
|
|
Change in boundary
|
|
|
|
|
Change in physical operating conditions
|
|
|
|
|
Unidentified
|
|
|
|
|
Other
|
|
|
|
|
Requested content
General
- Categorize the changes that have occurred in your gross global emissions. You are asked to break down all the different factors that have influenced any overall change in Scope 1+2 emissions; whether increasing or decreasing factors.
- Break down each applicable factor, describe each in a separate row, and provide the value for the change in overall emissions that is attributed to each of the factors.
- Even if companies have experienced no change overall or an increase in absolute emissions for Scopes 1 and 2, companies should still disclose reduction activities.
- In the unlikely event that companies have genuinely not experienced any change in any of the categories, they should complete the row “Other”, specifying “No change” in the text box provided and then enter 0 in column 2 ‘Emissions value (percentage)’.
- Emissions reduction activities could arise from a number of different sources, including reductions in energy consumption or lower emission equipment/processes. If your emissions have changed compared to the previous reporting year due to several emissions reduction activities, you should aggregate the emissions change that occurred due to these activities and provide this information in row 2 in C7.9a.
- Any changes in emissions that are attributed to a decline or an increase in your business output (products or services) due to the COVID-19 pandemic should be reported using row “Change in output”. Please state how your output was affected in “Please explain calculation”.
Reason (column 1)
- This column is fixed; however, if a row does not apply to you, for example, your company did not experience any mergers or acquisitions during the reporting year, leave that row blank.
- Further details on each of the options are provided below:
- Change in renewable energy consumption (row 2)
- Report the change in your organization's emissions because of the consumption of self-generated or purchased renewable energy.
- In cases where you have renewable energy, you may include this on the provision that you have accounted for those renewable energy purchases in your market-based Scope 2 figure reported in C6.3 and the purchases reported here were additional purchases in the reporting year.
- Due to the change in accounting practices around Scope 2 with the addition of Scope 2 market-based emissions and low-carbon energy, companies may see their Scope 2 emissions decrease. Any change in Scope 2 emissions due to the change in accounting method from Scope 2 location-based to Scope 2 market-based should not be reported here, but rather under “Change in methodology” (see below).
- CDP requires disclosure of gross emissions. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions from the use of goods and services, and/or reductions attributable to the sequestration or transfer of GHGs.
- Other emissions reduction activities (row 3)
- This refers to changes in emissions that have occurred because of proactive emissions reduction initiatives or activities, for example those listed in question C4.3b, other than those caused by a change in renewable energy consumption (which should be reported in the row ‘Change in renewable energy consumption’).
- Divestment (row 4)
- This refers to changes that occur as a result of selling off certain aspects of the businesses.
- Acquisitions (row 5)
- This refers to changes that occur as a result of purchasing or obtaining another company/subsidiary/facility.
- Mergers (row 6)
- This refers to changes that occur as a result of business mergers.
- Change in output (row 7)
- This refers to changes that occur as a result of changes (increases or decreases) in your business output (i.e. a product or service); this could be, for example, organic growth, purchase of additional facilities due to business expansion, declines in sales due to a global recession, or release of a new product.
- Change in methodology (row 8)
- This refers to changes that occur due to modifications in the way that the inventory is calculated, for example, changes in emissions factors used or changes in methodology protocol followed.
- Companies that have amended their Scope 2 emissions figure as a result of the changes in Scope 2 accounting practices for low carbon energy should report this here.
- Change in boundary (row 9)
- This refers to changes in the boundary used for your inventory calculation, i.e. changing from financial control to operational control. This option could also apply if you have incorporated facilities into your inventory that were excluded in previous years.
- Change in physical operating conditions (row 10)
- This refers to changes in weather that have a significant influence on how the company operates, but that cannot be accounted for under the other options available, e.g. increase production of hydroelectricity because of increased rainfall.
- Unidentified (row 11)
- Complete this row if you are not able to identify the reason for the change in emissions from year to year.
- Other (row 12)
- Complete this row if there is an alternative reason(s) for the change. Where you have used this option, please provide details of the reason(s) for the change in the ‘Please explain’ column.
Direction of change (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 four 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 2020
No change
Rationale
This question provides more transparency on how your organization’s emissions performance figures are derived.
Response options
Select one of the following options:
- Location-based
- Market-based
- Don’t know
Requested content
General
- In alignment with the GHG Protocol Scope 2 Guidance, companies are only required to compare their Scope 2 emissions for either their location-based or market-based figure, but are required to be transparent about which figure they use.
- You should only select one option, as your market-based figure may inherently be a combination of location-based and market-based calculations if you have operations in regions where there are contractual instruments, and other operations in regions where there are not contractual instruments.
C8 Energy
Module Overview
Energy related activities represent, for many sectors, the most significant GHG emission sources. This module provides transparency on the consumption and generation of energy by organizations.
Accurate emissions accounting depends on a comprehensive account of energy. It is expected that organizations have already collected the necessary energy data for the disclosure of emissions in previous modules. Unless otherwise stated in the question-specific guidance, energy generation data requested in this module is in alignment with Scope 1 emissions sources i.e. from generating units owned or controlled by the organization. The requested data on purchased or acquired energy is in alignment with Scope 2 emissions reporting.
Key changes
- Modified question: C8.2e – if you disclosed to CDP in the previous reporting year, please review your auto-populated responses carefully:
- A new drop-down option added in column 1 “Sourcing method”;
- Regions removed from the drop-down options in column 3 “Country/area of consumption of low-carbon electricity, heat, steam or cooling”;
- Guidance added on the market boundary rule for accounting for purchased renewable electricity.
- Definition of biomass added.
- Modified guidance: C8.2c – for companies that conduct direct measurement of GHG emissions and emission factors are therefore not applicable.
- Additional guidance: C-EU8.2d – definition of biomass added.
- Click here for a list of all changes made this year.
Sector-specific content
Additional questions on energy-related activities for the following high-impact sectors:
- Capital goods
- Cement
- Chemicals
- Electric utilities
- Metals & mining
- Steel
- Transport original equipment manufacturers (OEMs)
- Transport services
Pathway diagram - questions
This diagram shows the general questions contained in module C8. To access question-level guidance, use the menu on the left to navigate to the question.
Energy spend
(C8.1) What percentage of your total operational spend in the reporting year was on energy?
Change from 2020
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 2020
No change
Rationale
This question provides data users with information on the organization’s consumption of energy forms relating to Scope 1 and Scope 2 emissions, and transparency on the generation of energy.
Response options
Please complete the following table:
Activity
|
Indicate whether your organization undertook this energy-related activity in the reporting year
|
Consumption of fuel (excluding feedstocks)
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Select from:
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Consumption of purchased or acquired electricity
|
|
Consumption of purchased or acquired heat
|
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Consumption of purchased or acquired steam
|
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Consumption of purchased or acquired cooling
|
|
Generation of electricity, heat, steam, or cooling
|
|
Requested content
Consumption of fuel (excluding feedstocks) (Row 1)
- You should select ‘Yes’ in row 1 ‘Consumption of fuel (excluding feedstocks)’ if fuel was consumed inside your organizational boundary in the reporting year. All fuels accounted for in the calculation of Scope 1 emissions (C6.1) and fuels accounted for in the calculation of emissions from biogenic carbon (C6.7a) are included. Consumption of nuclear fuel is not included.
Consumption of purchased or acquired electricity heat, steam and/or cooling (Rows 2-5)
- You should select ‘Yes’ in rows 2-5 according to whether your organization has consumed electricity, heat, steam, and/or cooling that was purchased or acquired, i.e. brought into the organizational boundary. This excludes consumption of electricity, heat, steam or cooling that was produced by the organization, i.e. from inside the organizational boundary. It also excludes purchased or acquired electricity, heat, steam or cooling that is not consumed inside the organizational boundary.
- Purchased or acquired electricity, heat, steam or cooling that is wasted should still be counted as consumption.
- The activities of rows 2-5 are aligned with the boundary for Scope 2 emissions.
Generation of electricity, heat, steam, or cooling (Row 6)
- You should select ‘Yes’ in row 6 if your organization generated electricity, heat, steam, or cooling in the reporting year, regardless of whether this generation was consumed, exported, or wasted.
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 2020
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
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MWh from renewable sources
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MWh from non-renewable sources
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Total (renewable + non-renewable) MWh
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Consumption of fuel (excluding feedstock)
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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]
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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
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N/A
|
|
|
|
Consumption of purchased or acquired heat
|
N/A
|
|
|
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Consumption of purchased or acquired steam
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N/A
|
|
|
|
Consumption of purchased or acquired cooling
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N/A
|
|
|
|
Consumption of self-generated non-fuel renewable energy
|
N/A
|
|
N/A
|
|
Total energy consumption
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N/A
|
|
|
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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). If your raw data is in energy units other than MWh, such as Giga-Joules (GJ) or British Thermal Units (Btu), then you should convert to MWh. For e.g., 1 Giga-Joule (GJ) = 0.277778 MWh, so if your data is in GJ then should multiply your data by 0.277778. If your data is in million Btu, then you need to multiply your data by 0.29307.
- Conversion factors from other energy units are available from a variety of online calculation tools, including from IEA and OnlineConversion.com, or from conversion tables such as those in EPA AP-42 (Annex A).
- If your raw data is in volume units, e.g. cubic feet or gallons, or in mass units, e.g. kilograms (kg) or pounds (lb), then you should convert to energy units using factors for fuel heating/calorific values. These are available from numerous sources, some of which are listed below:
- IPCC Guidelines for National GHG Inventories (Volume 2, Table 1.2, p1.18-1.19)
- EPA AP-42 (Annex A)
- IEA Statistics Manual (Annex 3, p180-183)
- API Compendium (Table 3-8, p3.20-3.21)
Activity (column 1)
- This column is driven by the activities for which you selected ‘Yes’ in response to C8.2.
Consumption of fuel (excluding feedstock)
- All fuel consumed for energy purposes inside the organizational boundary should be included, regardless of whether the fuel was purchased or produced by the organization. If a fuel is consumed as a feedstock for the production of another fuel, then the feedstock should not be included, but combustion of the produced fuel should be included. Ultimately, if a fuel is combusted, i.e. consumed for energy purposes and not as a feedstock, then it should be included (see ‘Explanation of terms’ for more detail).
- Consumption of renewable fuels should be accounted for here. This includes biomass (solid and liquid biofuels and biogas), biomass-derived wastes and renewably derived hydrogen.
- If you do not have exact consumption data, you may alternatively estimate your company’s consumption by reviewing fuel and energy purchasing orders.
Consumption of purchased or acquired electricity, heat, steam, cooling
- If your raw data for steam is in physical units, e.g. pounds (lb) or kilograms (kg), then you should convert to energy units. The energy content of steam varies with temperature and pressure. Organizations can refer to The Climate Registry’s General Reporting Protocol, Chapter 15, section 15.2, step 1, which explains how to calculate the energy content of steam.
- Cooling is frequently purchased in refrigeration-ton hours; 1 ton-hour is equal to 12,000 Btu, which is equal to 0.003516 MWh.
Consumption of self-generated non-fuel renewable energy
- If your organization produces renewable energy that is not based on fuel (such as solar, wind, hydro, geothermal, marine), then any consumption of this energy should be entered here.
- Consumption of renewable fuels (such as solid and liquid biofuels and biogas) should be excluded because these should be accounted for in the row “Consumption of fuel (excluding feedstock)”.
- All forms of non-fuel renewable energy - electricity, heat, steam, or cooling – shall be included.
Total energy consumption
- Enter the total energy consumption by your organization in this row, alongside total energy from renewable sources and non-renewable sources.
- The sum of renewable and non-renewable energy consumption should equal the total MWh entered in the last column.
- The data entered in each column of this row should also equal the sum of all the above rows (if the above rows have been fully disclosed for).
- If you do not disclose data for specific energy carriers in the rows above, but you are able to enter the total energy consumed by your organization, then you should do so.
Heating value (column 2)
- This column is only applicable to the consumption of fuels because it is a measure of combustion energy.
- Energy from fuel combustion can be measured by the higher heating value (HHV) or lower heating value (LHV) of the combusted fuel.
- Higher heating value (HHV) is also known as gross calorific value (GCV), and lower heating value (LHV) is also known as net calorific value (NCV). Typically, LHV/HHV ratio is 0.95 for solid and liquid hydrocarbon fuels, such as coal and oil, and 0.9 for gaseous hydrocarbon fuels, such as natural gas.
- Fuel energy data in HHV is typically used in the United States and Canada, whereas LHV is more commonly the unit used in other countries and by international bodies. If you do not know the unit applicable to your raw data, you may wish to infer it based on the location from which the data is sourced, i.e. if the fuel related data is sourced from outside of the United States and Canada, then it is likely that LHV is applicable.
MWh from renewable sources (column 3)
- Renewable energy is energy taken from sources that are inexhaustible such as wind, solar, hydropower, geothermal, biomass and marine (tidal and wave energy).
- Waste energy should not be included if it is derived from fossil fuels.
- Hydrogen should not be included if it is derived from fossil fuels.
- Blended fuels deriving from both renewable and non-renewable sources should be split by the proportion contained from each source. For municipal waste and refuse-derived fuel, only the fraction of the fuel that is derived from biomass can be included as renewable energy, when calculating renewable energy consumption totals. Further explanations of municipal waste and a glossary of fuel definitions is provided in the CDP Technical Note: “Fuel Definitions”.
MWh from non-renewable sources (column 4)
- All energy not identified as deriving from renewable sources should be entered, e.g. coal, oil, natural gas, etc.
- Direct consumption of nuclear fuel should not be included, as this is covered in more detail in questions for electric utilities. Consumption of purchased or acquired electricity, steam, heat and/or cooling from nuclear sources, however, should be included.
Total (renewable + non-renewable) MWh (column 5)
- Total MWh is equal to the sum of MWh from renewable sources (column 3) and MWh from non-renewable sources (column 4).If you have entered data in column 3 and column 4, then you should ensure that the sum of this data is equal to the data in column 5.
Explanation of terms
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
- Excluding feedstocks: Fuels consumed as feedstocks are fuels that are not combusted for energy purposes. For example, naphtha and ethane are feedstocks that may be converted into petrochemical products such as ethylene, and should not be included. The steel industry is a special case because coke and fuel injectants consumed at the blast furnace serve as feedstocks and a source of energy. These fuels are considered feedstocks and should not be counted. However, all fuels consumed for energy, i.e. combusted, that are derived from fuel feedstocks, e.g. blast furnace gas, should be counted. Companies that consume fuel as feedstocks will have the opportunity to disclose these fuels in sector specific questions.
- Heating Value: Lower heating value (LHV) and Higher heating value (HHV), also known as net calorific value (NCV) and gross calorific value (GCV) respectively, are different measures of heat energy released from fuel combustion. Figures measured in HHV are larger because HHV includes the latent heat of water vaporization from combustion, whereas LHV does not. The difference between LHV and HHV is related to the fuel’s hydrogen content.
- Purchased or acquired electricity, steam, heat, cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from a third party’s industrial processes, should still be accounted for if it is consumed.
(C8.2b) Select the applications of your organization’s consumption of fuel.
Question dependencies
This question only appears if you select "Yes" to “Consumption of fuel” in response to C8.2. Each option that you select in this table will appear as an additional column in C8.2c.
Change from 2020
No change
Rationale
Scope 1 greenhouse gas emissions are directly associated with the consumption of fuel. This question provides data users with more transparency regarding the application of an organization’s fuel consumption for the generation of secondary energy carriers.
Response options
Please complete the following table:
Fuel application
|
Indicate whether your organization undertakes this fuel application
|
Consumption of fuel for the generation of electricity
|
Select from:
|
Consumption of fuel for the generation of heat
|
|
Consumption of fuel for the generation of steam
|
|
Consumption of fuel for the generation of cooling
|
|
Consumption of fuel for co-generation or tri-generation
|
|
Requested content
General
- Information you provide should be for the reporting year only (as defined by your answer to C0.2).
- This question drives the columns presented in question C8.2c.
- Select the fuel applications for which your organization consumes fuel by selecting “Yes” in the relevant fields.
- If your organization does not undertake a particular fuel application, select “No” in that row. If no fuel application is selected in C8.2b then only the “Total MWh consumed by the organization” column will appear in C8.2c which is where you will state your total fuel consumption for each applicable fuel.
- Companies who consume fuel for other applications such as transportation, industrial process plant and equipment etc. should select ‘Consumption of fuel for the generation of heat’.
- It does not matter whether your organization consumes or exports the electricity, steam, or cooling generated; if your organization generates any electricity, steam, or cooling from fuel combustion (thermal generation), then you should select ‘Yes’ in the relevant field.
- Co-generation is also known as combined heat and power (CHP). Tri-generation is also known as combined cooling, heat and power (CCHP). Combined cooling and power (CCP) is another system in which energy carriers are generated together. If your organization generates from any single configuration of plant in which electricity, steam, heat, or cooling are generated as simultaneous useful outputs, then you should select ‘Yes’ for the consumption of fuel for co-generation or tri-generation.
(C8.2c) State how much fuel in MWh your
organization has consumed (excluding feedstocks) by fuel type.
Question dependencies
This question only appears if you select “Consumption of fuel” in C8.2. For each fuel application selected in C8.2b a column appears in the table in addition to the “MWh fuel consumed for self-generation of heat” and “Total MWh consumed by the organization” columns. If no fuel application is selected in C8.2b then only the “Total MWh consumed by the organization” column will appear.
Change from 2020
Modified guidance
Rationale
Scope 1 greenhouse gas emissions are directly associated with the consumption of fuel for energy purposes. This question provides data users with more transparency regarding the type of fuel an organization has consumed. Total consumption of fuels and their consumption for different energy applications also provides insight on the way in which fuels are used by the organization, which can allow for a fairer and more consistent understanding of corporate energy and emissions from data users.
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.
Fuels
|
Heating value
|
Total MWh consumed by the organization
|
MWh consumed for self-generation of electricity
|
Select from:
Acetylene; Agricultural
Waste; Alternative Kiln Fuel (Wastes); Animal Fat; Animal/Bone Meal; Anthracite
Coal; Asphalt; Aviation Gasoline; Bagasse; Bamboo; Basic Oxygen Furnace Gas (LD
Gas); Biodiesel; Biodiesel Tallow;
Biodiesel Waste Cooking Oil; Bioethanol; Biogas; Biogasoline; Biomass Municipal
Waste; Biomethane; Bitumen; Bituminous Coal; Black Liquor; Blast Furnace Gas;
Brown Coal Briquettes (BKB); Burning Oil; Butane; Butylene; Charcoal; Coal;
Coal Tar; Coke; Coke Oven Gas; Coking Coal; Compressed Natural Gas (CNG);
Condensate; Crude Oil; Crude Oil Extra Heavy; Crude Oil Heavy; Crude Oil Light;
Diesel; Distillate Oil; Dried Sewage Sludge; Ethane; Ethylene; Fuel Gas; Fuel
Oil Number 1; Fuel Oil Number 2; Fuel Oil Number 4; Fuel Oil Number 5; Fuel Oil
Number 6; Gas Coke; Gas Oil; Gas Works Gas; GCI Coal; General Municipal Waste;
Grass; Hardwood; Heavy Gas Oil; Hydrogen; Industrial Wastes; Isobutane;
Isobutylene; Jet Gasoline; Jet Kerosene; Kerosene; Landfill Gas; Light
Distillate; Lignite Coal; Liquefied Natural Gas (LNG); Liquefied Petroleum Gas
(LPG); Liquid Biofuel; Lubricants; Marine Fuel Oil; Marine Gas Oil;
Metallurgical Coal; Methane; Motor Gasoline; Naphtha; Natural Gas; Natural Gas
Liquids (NGL); Natural Gasoline; Non-Biomass Municipal Waste; Non-Biomass
Waste; Oil Sands; Oil Shale; Orimulsion; Other Petroleum Gas; Paraffin Waxes;
Patent Fuel; PCI Coal; Peat; Pentanes Plus; Petrochemical Feedstocks; Petrol;
Petroleum Coke; Petroleum Products; Pitch; Plastics; Primary Solid Biomass;
Propane Gas; Propane Liquid; Propylene; Refinery Feedstocks; Refinery Gas; Refinery
Oil; Residual Fuel Oil; Road Oil; SBP; Shale Oil; Sludge Gas; Softwood; Solid
Biomass Waste; Special Naphtha; Still Gas; Straw; Subbituminous Coal; Sulphite
Lyes; Tar; Tar Sands; Thermal Coal; Thermal Coal Commercial; Thermal Coal
Domestic; Thermal Coal Industrial; Tires; Town Gas; Unfinished Oils; Vegetable
Oil; Waste Oils; Waste Paper and Card; Waste Plastics; Waste Tires; White
Spirit; Wood; Wood Chips; Wood Logs; Wood Pellets; Wood Waste; Other, please
specify
|
Select from:
- LHV
- HHV
- 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]
|
MWh consumed for self-generation of heat
|
MWh consumed for self-generation of steam
|
MWh consumed for self-generation of cooling
|
MWh consumed self-cogeneration or self-trigeneration
|
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]
|
Numerical field [enter a number from 0 to 9,999,999,999 using up to 2 decimal places and no commas]
|
Emission factor
|
Unit
|
Emission factor source
|
Comment
|
Numerical field [enter a number from 0 to 999,999 using up to 5 decimal places and no commas]
|
Select from:
- metric tons CO2e per m3
- metric tons CO2 per m3
- metric tons CO2e per liter
- metric tons CO2 per liter
- metric tons CO2e per barrel
- metric tons CO2 per barrel
- metric tons CO2e per Mg
- metric tons CO2 per Mg
- metric tons CO2e per metric ton
- metric tons CO2 per metric ton
- metric tons CO2e per short ton
- metric tons CO2 per short ton
- metric tons CO2e per MWh
- metric tons CO2 per MWh
- metric tons CO2e per GJ
- metric tons CO2 per GJ
- metric tons CO2e per million Btu
- metric tons CO2 per million Btu
- metric tons CO2e per boe
- metric tons CO2 per boe
- metric tons CO2e per toe
- metric tons CO2 per toe
- metric tons CO2e per tce
- metric tons CO2 per tce
- metric tons CO2e per Gcal
- metric tons CO2 per Gcal
- kg CO2e per m3
- kg CO2 per m3
- kg CO2e per liter
- kg CO2 per liter
- kg CO2e per barrel
- kg CO2 per barrel
- kg CO2e per gallon
- kg CO2 per gallon
- kg CO2e per Mg
- kg CO2 per Mg
- kg CO2e per metric ton
- kg CO2 per metric ton
- kg CO2e per short ton
- kg CO2 per short ton
- kg CO2e per kWh
- kg CO2 per kWh
- kg CO2e per MWh
- kg CO2 per MWh
- kg CO2e per GJ
- kg CO2 per GJ
- kg CO2e per million Btu
- kg CO2 per million Btu
- kg CO2e per boe
- kg CO2 per boe
- kg CO2e per toe
- kg CO2 per toe
- kg CO2e per tce
- kg CO2 per tce
- kg CO2e per Gcal
- kg CO2 per Gcal
- lb CO2e per 1000 cubic ft3
- lb CO2 per 1000 cubic ft3
- lb CO2e per gallon
- lb CO2 per gallon
- lb CO2e per barrel
- lb CO2 per barrel
- lb CO2e per short ton
- lb CO2 per short ton
- lb CO2e per MWh
- lb CO2 per MWh
- lb CO2e per GJ
- lb CO2 per GJ
- lb CO2e per million Btu
- lb CO2 per million Btu
- lb CO2e per boe
- lb CO2 per boe
- lb CO2e per toe
- lb CO2 per toe
- lb CO2e per tce
- lb CO2 per tce
- lb CO2e per Gcal
- lb CO2 per Gcal
|
Text
field [maximum 2,400 characters]
|
Text field [maximum 2,400 characters]
|
[Add Row]
Requested content
General
- Figures you provide should be for the reporting year only (as defined by your answer to C0.2).
- You should enter all fuels (excluding feedstocks) consumed by your organization in the reporting year. Therefore, the sum of fuels entered in column 3 (total MWh consumed by the organization) should equal the total consumption of fuel (excluding feedstock) in MWh (from renewable and non-renewable sources) as reported in question C8.2a.
- Fuels consumed for generation are fuels consumed for ‘self-generation’. Self-generation means generation from inside the organizational boundary. This includes all generation plant owned or controlled by the organization. Do not enter fuel consumed by another organization for the generation of electricity, steam, heat, and cooling that your organization has purchased or acquired.
- This table is for gross fuel consumption data only. You should not provide net consumption nor deduct for energy produced and exported from the organizational boundary. Because feedstock fuels are excluded from this question, this approach should not lead to double counting.
- All fuel consumed 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, e.g. consumed for energy purposes and not as a feedstock, then it should be included (see ‘Explanation of terms’ for more detail).
- Companies who consume fuel for electricity, steam, and/ or cooling applications and who consume fuel for other applications (i.e. transportation, industrial process plant and equipment etc.) should report the MWh of fuel consumed for these other applications in column 5 ‘MWh fuel consumed for self-generation of heat’.
- If you consume a fuel that is not available in the selection list, please select a fuel from the list that most closely matches the fuel your organization does consume. However, if no option is applicable then please select ‘Other, please specify’ and specify the name of the fuel before entering your organization’s consumption of that 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 should 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 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” and a glossary of definitions on some fuels is provided in Technical Notes: “Fuel Definitions”.
- If you want to provide additional information on the methods or assumptions used to determine the breakdown of fuel consumed for the self-generation of electricity/heat/steam/cooling/self-cogeneration or self-trigeneration then please do so in the Comment column.
- Identifying the most appropriate and accurate emission factors to use is one of the most challenging issues in GHG accounting. Therefore, it is beyond the scope of CDP’s work to provide advice on specific factors and how they should be applied.
- Emission factors vary with the precise nature of the material involved. For example, an emission factor will vary with the type of coal combusted and the type of technology used to burn the coal.
- The GHG Protocol Corporate Standard encourages you to calculate your own emission factors based on specific materials used and processes adopted. When this is not possible, you should refer to emissions factors published by governmental and other bodies such as the EPA in the US, the BEIS Department in the UK, and the IPCC (e.g. Volume 2, Chapter 2, p2.16-2.23) or IEA for international coverage. National inventory reports submitted to the UNFCCC also contain emission factors.
- Fuels are typically consumed at nearly 100% combustion efficiency, or full oxidization. Unless better data is available, the IPCC guidelines recommend applying this simplifying assumption (oxidation factor = 1).
- The IPCC provides guidance on emissions accounting, including the application of emission factors, across multiple sectors.
Heating value (column 2)
- All fuels should be reported consistently in either LHV or HHV.
- Your choice of HHV or LHV should be consistent with your choice in question C8.2a.
- 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.
Total MWh fuel consumed by the organization (column 3)
- Enter the total fuel in MWh consumed by your organization in the reporting year. It should be equal to the sum of fuel consumed for the self-generation of electricity, heat, cooling, steam and/or cogeneration or trigeneration.
MWh fuel consumed for self-generation of electricity (column 4)
- Enter the total consumption of the selected fuel for the self-generation of electricity in MWh.
- Make sure that you do not enter data for the actual electricity generated from these fuels. This table is for the consumption of the fuels themselves and aims to capture the energy content of the initial fuel used, not the energy content of the electricity generated from these fuels.
MWh fuel consumed for self-generation of heat (column 5)
- Enter the total consumption of the selected fuel for the self-generation of heat in MWh.
- Fuel consumed for heat is fuel that is combusted for the direct use of the heat/thermal energy its combustion releases.
- This heat is used in applications such as direct heating for industrial process plant and equipment, engines, turbines, furnaces, heaters, stoves, incinerators, kilns, dryers, thermal oxidizers, space heating, open burning, flaring, or any other combustion that is not for the generation of secondary energy carriers (electricity, steam, and/or cooling).
- Do not enter the heat delivered for the application. This question asks for fuel energy, which is the total heat of fuel combustion and is equal to the heating value (or calorific value) of the fuel itself.
MWh fuel consumed for self-generation of steam (column 6)
- Enter the total consumption of the selected fuel for the self-generation of steam in MWh. This excludes fuel consumed for steam generated in cogeneration or trigeneration plant.
MWh fuel consumed for self-generation of cooling (column 7)
- Enter the total consumption of the selected fuel for the self-generation of cooling in MWh. This excludes fuel consumed for cooling generated in cogeneration or trigeneration plant.
MWh fuel consumed for self-cogeneration or self-trigeneration (column 8)
- Enter the total consumption of the selected fuel for self-cogeneration or self-trigeneration in MWh.
Emission factor (column 9)
- You are encouraged to enter emission factors linked to the fuels selected such that these factors may be combined with the fuel consumption data to calculate total fuel related Scope 1 emissions from your organization.
- If you selected a fuel that is actually the sum of multiple fuels of the same description but having different emission factors, then you should provide the weighted average emission factor. This average should be weighted according to the amount of each constituent fuel consumed. The weighted emissions factor can be calculated by dividing the aggregate emissions from the selected fuel (i.e. of its constituent fuels) by the aggregate consumption of that fuel (i.e. of its constituent fuels).
- You are not required to convert your emission factor units into tCO2e per MWh. You should select the relevant units from the dropdowns in Column 10 "Unit".
- The selection of LHV or HHV should be consistent with the emission factor provided. If the unit provided (column 10) is emissions per unit of energy (e.g. MWh, GJ, Btu, etc.), then you should check your source to ensure that the emission factor aligns with LHV or HHV selected for that fuel. Otherwise these emission factors will not calculate to your organization’s emissions if combined with your fuel consumption data.
- Emissions from fuel combustion are mostly of CO2, but with smaller amounts of greenhouse gasses CH4 (methane) and N2O (nitrous oxide) also being emitted. You should include all three of these gasses in your emission factors in units of CO2e. If only CO2 factors are reported, then the comment column is available for explanation.
- Methane, nitrous oxide and other greenhouse gasses are converted to CO2e using Global Warming Potential (GWP) values. These are updated periodically by the IPCC and are summarized for corporations in GHG Protocol GWP guidance.
- When converting, you should use the latest GWP values available (e.g. 28 for CH4). If you are not using the latest GWP values, then the comment column is available for explanation.
- If you have used emission factors purchased from IEA, then you may not have the permissions to share these publicly. In these instances, you should not provide the emission factor number and instead insert the number -99 (i.e. negative 99) as the emission factor in column 9. This is a specialized identifier and outlines to data users that you have used emission factors purchased from IEA. In column 11 “Emission factor source” please name IEA as the source if you have used this source.
- If you conduct direct measurement of GHG emissions and emission factors are therefore not applicable, insert the number -88 (i.e. negative 88) as the emission factor in column 9. This is a specialized identifier that outlines to data users that the emission factor is not applicable. In column 11 “Emission factor source” please state “Not applicable due to continuous emission monitoring”.
Emission factor source (column 11)
- Enter the reference you have used for the emission factor into this text field.
Comment (column 12) (optional)
- Any further information about the data provided may be entered here. For example, if an oxidation factor of less than 1 is applied, state the oxidization factor used.
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.
Additional information
Emission factors: As noted on page 44 of the GHG Protocol Corporate Standard, “direct measurement of GHG emissions by monitoring concentration and flow rate is not common.” Normally, direct measurement takes place only in facilities with Continuous Emission Monitoring Systems (CEMS), such as power plants. Instead of direct measurement, many companies calculate GHG emissions by applying documented emission factors to activity data (e.g. tons of coal consumed or cubic meters of natural gas burnt).
Emission factors are sometimes referred to as conversion factors. Activity data (e.g. cubic meters of natural gas) is multiplied by an emission factor to estimate the GHG emissions from the activity (e.g. combustion of natural gas). You may also find it useful to refer to emission factor databases compiled by organizations offering carbon calculation services. For additional advice on emissions factors, you may want to contact one of CDP’s partners. Emission factors may also be incorporated in the calculation tools that you use. Please note that emission factors should apply to the reporting year.
(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in the reporting year.
Question Dependencies
This question only appears if you select “Generation of electricity, heat, steam, or cooling” in response to C8.2.
Change from 2020
No change
Rationale
Many organizations generate their own electricity, steam, heat, and/or cooling. Bringing the generation of these secondary energy carriers inside the organizational boundary has the effect of reducing an organization’s Scope 2 emissions while increasing Scope 1 emissions. Because the scale of self-generation can be highly variable, this can create additional uncertainty for data users when comparing Scope 1 and 2 emissions across company samples or portfolios. CDP aims to alleviate this distorting factor by bringing transparency on the extent of self-generation by organizations.
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:
Energy Carrier
|
Total Gross generation (MWh)
|
Generation that is consumed by the organization (MWh)
|
Gross generation from renewable sources (MWh)
|
Generation from renewable sources that is consumed by the organization (MWh)
|
Electricity
|
Numerical field [enter a number from 0 to 999,999,999 using up to 2 decimal places and no commas]
|
Numerical field [enter a number from 0 to 999,999,999 using up to 2 decimal places and no commas]
|
Numerical field [enter a number from 0 to 999,999,999 using up to 2 decimal places and no commas]
|
Numerical field [enter a number from 0 to 999,999,999 using up to 2 decimal places and no commas]
|
Heat
|
|
|
|
|
Steam
|
|
|
|
|
Cooling
|
|
|
|
|
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 have any activity then you should enter zero (0) in the relevant field.
- 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”.
- Nuclear power generation is not to be included for this question, as nuclear power is covered in more detail in questions for electric utilities.
- Fuel consumption data provided in C8.2c is split by their use in the generation of energy carriers that are also listed in this question, e.g. ‘fuel consumed for the generation of electricity’, with the exception of heat. The heat referred to in this question includes heat only where it can be measured in the form of transferrable mediums, e.g. hot water. In reality, the proportion of fuel combustion heat made available for use in applications (after losses) may be difficult to measure or would require detailed process monitoring equipment readings. You should only account for heat generated in transferable mediums, i.e. the forms of heat that may also be purchased or acquired from third parties (as listed in question C8.2a).
Total Gross generation (MWh) (column 2)
- Enter the total gross generation of electricity, heat, steam and/or cooling in MWh produced by facilities or installations inside your organizational boundary during the reporting year.
- Gross generation should be reported, where "Gross" covers the total output from all generating installations or facilities without deducting for electricity, steam, heat, or cooling used by the generating plant or facility for the purpose of the generation.
- Include electricity, heat, steam and/or cooling you produced from both renewable sources and non-renewables sources.
- Include electricity, heat, steam and/or cooling that you produced and did not consume, as well as the amount you did consume.
Generation that is consumed by the organization (MWh) (column 3)
- Enter the amount of your organization’s generation of electricity, heat, steam, and/or cooling in MWh that your organization has consumed in the reporting year.
- This column is a subset of column 2; the amount entered cannot be higher than the amount entered in column 2. If the entered amount is equal to the amount in column 2, then your organization consumed (or wasted) all of the electricity, steam, heat, or cooling that your organization generated.
Gross generation from renewable sources (MWh) (column 4)
- Enter the total gross generation of electricity, heat, steam and/or cooling in MWh produced from renewable sources by facilities or installations inside your organizational boundary during the reporting year.
- Include electricity, heat, steam and/or cooling that you produced from renewable sources and did not consume, as well as the amount you did consume.
Generation from renewable sources that is consumed by the organization (MWh) (column 5)
- Enter the amount of your organization’s generation of electricity, heat, steam, and/or cooling in MWh from renewable sources that your organization has consumed in the reporting year.
- This column is a subset of column 4; the amount entered cannot be higher than the amount entered in column 4. If the entered amount is equal to the amount in column 4, then your organization consumed all of the electricity, steam, heat, or cooling that your organization generated from renewable sources.
- For reporting self-generated renewable electricity in markets where using electricity tracking systems or certificates are mandatory, a company shall generate Energy Attribute Certificates (such as REC) for all of the electricity generation and retain the certificates for all electricity that it wishes to report as consumed. To prove self-generation and consumption of renewable electricity from a facility that is entirely off-grid, and only connected by a direct line to consumer, certificates need not be produced. Meter readings shall constitute sufficient proof of consumption. However, any certificates produced shall be also retained or retired by the consumer.
Explanation of terms
- Gross generation: covers the total output from all generating installations or facilities without deducting for amount of generated electricity, steam, heat or cooling used by those installations or facilities for the purpose of generation. Deducting this self-consumption of output gives the net generation. To avoid double-counting, consumption of one energy carrier to produce another within the same installation should not be included. For example, the generation of steam which is consumed in a steam turbine for the generation of electricity should not be included.
- Renewable energy
sources:
CDP follows
the definition of renewable energy given in the GHG Protocol, i.e. “energy
taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal
energy and biofuels.”
(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts that were accounted for at a zero emission factor in the market-based Scope 2 figure reported in C6.3.
Question dependencies
This question only appears if you select “We are reporting a Scope 2, market-based figure” in response to C6.2.
Change from 2020
Modified question
Rationale
This question provides investors and data users with more transparency regarding organizations’ active sourcing of low-carbon 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. You are able to add rows by using the “Add Row” button at the bottom of the table.
Sourcing method
|
Low-carbon technology type
|
Country/area of consumption of low-carbon electricity, heat, steam or cooling
|
MWh consumed accounted for at a zero emission factor
|
Comment
|
Select from:
- None (no purchases of low-carbon electricity, heat, steam or cooling)
- Power purchase agreement (PPA) with on-site/off-site generator owned
by a third party with no grid transfers (direct line)
- Power purchase agreement (PPA) with a grid-connected generator with
energy attribute certificates
- Power purchase agreement (PPA) with a grid-connected generator without
energy attribute certificates
- Green electricity products (e.g. green tariffs) from an energy supplier,
supported by energy attribute certificates
- Green electricity products (e.g. green tariffs) from an energy supplier,
not supported by energy attribute certificates
- Standard product offering by an energy supplier supported by energy attribute certificates
- Unbundled energy attribute certificates, Guarantees of Origin
- Unbundled energy attribute certificates, Renewable Energy Certificates
(RECs)
- Unbundled energy attribute certificates, International REC Standard (I-RECs)
- Unbundled energy attribute certificates, other - please specify
- Heat/steam/cooling supply agreement
- Other, please specify
|
Select from:
- Solar
- Wind
- Hydropower
- Nuclear
- Biomass
- Marine
- Geothermal
- Fossil-fuel plants fitted with CCS
- Low-carbon energy mix
- Other, please specify
|
Select from: [Country/area drop-down list]
|
Numerical field [enter a number from 0 to 999,999,999,999 using up to 2 decimal places and no commas]
|
Text field [maximum 2,400 characters]
|
[Add Row]
Requested content
General
- Note that all purchases of low-carbon energy (as defined in the Explanation of terms) should be reported in this question, even if their associated emission factor is marginally above zero. Whereas most low-carbon technologies do not directly emit GHGs and are accounted for at a zero emission factor, some low-carbon technologies such as biomass and geothermal may have an emission factor that is low but above zero.
- To claim the use of renewable electricity, companies must source renewable electricity from within the boundary of the market in which they are consuming the electricity. The market boundary is defined for most of the countries as their geographical boundary, except the following: 1) European countries which are AIB members (excluding Iceland), and 2) United States of America and Canada. For more information on this rule, please refer to chapter 2.3 Claiming renewable electricity use: the market boundary criteria of the CDP Technical Note: Accounting of Scope 2 emissions.
- The data reported in this question should be consistent with your response in C7.5.
Sourcing method (column 1)
- Select the option that best describes the sourcing method that you use for low-carbon electricity, heat, steam and cooling:
- None (no purchases of low-carbon electricity, heat, steam or cooling). Select this option if your company doesn’t actively purchase low-carbon electricity, heat, steam or cooling i.e. you do not have any contractual instruments (e.g. power purchase agreement, heat/steam supply agreement, energy attribute certificates, etc.) to claim low-carbon energy consumption.
- Power purchase agreement (PPA) with on-site/off-site generator owned by a third party with no grid transfers (direct line). This option includes low-carbon electricity produced from on-site/off-site installations owned and operated by a third party and delivered to the company via a direct line, with no grid transfers. The low-carbon electricity consumption claimed by a company using this option must be backed by a power purchase agreement with the generator owner/operator.
- Power purchase agreement (PPA) with a grid-connected generator with energy attribute certificates. A contract signed directly between the company consuming the electricity and a power generator. The contract ensures the purchase of electricity from a specific generator that is delivered through the local grid. The purchasing company retains and retires energy attribute certificates produced by the generator to claim the low-carbon electricity consumption.
- Power purchase agreement (PPA) with a grid-connected generator without energy attribute certificates. A contract signed between the company consuming the electricity and a power generator. The contract ensures the purchase of electricity from a specific generator that is delivered through the local grid. In this case, energy attribute certificates do not exist, or they are not created or sold.
- Standard product offering by an energy supplier supported by energy attribute certificates. Applicable to the share of renewable energy in the grid mix of an energy supplier under a supplier quota - a regulation requiring electricity suppliers to source a percentage of their supply from specified energy sources, e.g. Renewable Portfolio Standards in the US. The supplier retires energy attribute certificates on behalf of all its customers.
- Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates. Products offered by an energy supplier distinct from the “standard” offering. The supplier matches the electricity consumed by the company and it is delivered through the grid with low-carbon electricity produced or purchased from a variety of sources and projects, or a specified project or set of projects. The supplier purchases and retires energy attribute certificates on behalf of the company consuming the electricity.
- Green electricity products (e.g. green tariffs) from an energy supplier, not supported by energy attribute certificates. Products offered by an energy supplier distinct from the “standard” offering. The supplier matches the electricity consumed by the company and it is delivered through the grid with low-carbon electricity produced or purchased from a variety of sources and projects, or a specified project or set of projects. In this case, where no tracking systems are available, transfer of attributes is specified in a contract or via an alternative system that ensures claims are unique and there is no double counting of attributes.
- Unbundled energy attribute certificates, Guarantees of Origin. Energy attribute certificates, also known as electricity tracking instruments, are purchased through an energy supplier or other intermediaries. They are purchased as a separate stream from the electricity and exist only as the attributes of that electricity. The instruments are generated in accordance with the European Guarantee of Origin system.
- Unbundled energy attribute certificates, Renewable Energy Certificates (RECs). Energy attribute certificates, also known as electricity tracking instruments, are purchased through an energy supplier or other intermediaries. They are purchased as a separate stream from the electricity and exist only as the attributes of that electricity. The instruments are generated in accordance with the USA Renewable Energy Certificate (REC) system.
- Unbundled energy attribute certificates, International REC Standard (I-REC). A company buys I-RECs through its energy supplier or other intermediaries, as a separate stream from the electricity. The instruments are generated and tracked in accordance with the International REC Standard (I-REC). I-REC is intended for countries without an existing or reliable energy attribute tracking certificates outside the US, EU/EEA, and Australia.
- Unbundled energy attribute certificates, other - please specify. Energy attribute certificates not mentioned above such as Australian Large-scale generation certificates (LGCs), Non-Fossil Certificate (NFC’s) in Japan, T-RECs (Taiwan), TIGRs (international), etc. The name of certificates should be specified in the comment box.
- Heat/steam/cooling supply agreement. A contract signed between the company consuming the heat/steam/cooling and a supplier who provides low-carbon heat/steam/cooling.
- Other, please specify. Other contractual instruments not mentioned above that have been used to account for electricity, heat, steam or cooling at a zero emission factor may be reported if the instruments comply with the Scope 2 Quality Criteria of the GHG Protocol Scope 2 guidance. For more information on this refer to CDP Technical Note: Accounting of Scope 2 emissions.
Low-carbon technology type (column 2)
- Select the low-carbon technology type specified in the contractual instrument.
- If you have sourced low-carbon electricity of multiple technology types, you are encouraged to report them in separate rows. If you are unable to disaggregate by technology type, select “Low-carbon energy mix”.
- If you are buying green electricity products or any other instruments for blended electricity from various low-carbon sources, select “Low-carbon energy mix”.
- Please note that natural gas and fossil fuel-based combined heat and power (CHP) are not considered low-carbon technologies and should not be included here. For more information on CDP’s definition of low-carbon, please refer to the Explanation of terms.
Country/area of consumption of low-carbon electricity, heat, steam or cooling (column 3)
- Select the country/area in which the sourced low-carbon energy is being consumed.
- To claim the use of renewable electricity, companies must source renewable electricity from within the boundary of the market in which they are consuming the electricity. The market boundary is defined for most of the countries as their geographical boundary, except the following: 1) European countries which are AIB members (excluding Iceland), and 2) United States of America and Canada. For more information on this rule, please refer to chapter 2.3 Claiming renewable electricity use: the market boundary criteria of the CDP Technical Note: Accounting of Scope 2 emissions.
MWh consumed accounted for at a zero emission factor (column 4)
- Note that all purchases of low-carbon energy (as defined in the Explanation of terms) should be reported in this question, even if their associated emission factor is marginally above zero.
- Quantify how much electricity, heat, steam or cooling (in MWh) has been consumed in the reporting year that corresponds to the sourcing method selected in column 1.
Comment (column 5) (optional)
- You may provide an accompanying narrative to your disclosure.
- If you selected “Other, please specify” in column “Sourcing method” you may provide more details on the instruments you are reporting and explain why they comply with the Scope 2 Quality Criteria of the GHG Protocol Scope 2 guidance .
Explanation of terms
- Attribute: Descriptive or performance characteristics of a particular generation resource. For Scope 2 GHG accounting, the GHG emission rate attribute of the energy generation is required to be included in a contractual instrument in order to make a claim.
- Contractual instrument (or ‘instrument’): Any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims. Markets differ as to what contractual instruments are commonly available or used by companies to purchase energy or claim specific attributes about it, but they can include energy attribute certificates (e.g. RECs, GOs), direct contracts (PPAs), green tariffs and other instruments.
- Energy attribute certificate: A category of contractual instruments used in the energy sector to convey information about energy generation to other entities involved in the sale, distribution, consumption, or regulation of electricity.
- Unbundled energy attribute certificate: An energy attribute certificate that is separate, and may be traded separately, from the underlying energy produced.
- Low-carbon energy: in line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Biomass:any organic matter, i.e. biological material, available on a renewable basis. Includes feedstock derived from animals or plants, such as wood and agricultural crops, and organic waste from municipal and industrial sources. Biomass fuels should be sustainably sourced and certified where possible, and include:
- Solid biofuels - solid fuels derived from
biomass. Includes feedstock derived from animals or plants, such as wood and
agricultural crops, and organic waste from municipal and industrial sources.
- Biogas - a mixture of methane (CH4) and
carbon dioxide (CO2) used as fuel and produced by bacterial degradation of
organic matter or through gasification of biomass.
- Liquid biofuels – liquid fuels derived from biomass such as ethanol and biodiesel.
C9 Additional metrics
Module Overview
This module requests reporting organizations to present relevant climate-related metrics that may indirectly or directly impact their emissions or energy use.
This module includes one general question on additional climate-related metrics and a number of sector-specific questions on metrics such as production outputs, low-carbon technology implementation, transfers & sequestration of CO2 emissions and low-carbon investments.
Key changes
Sector-specific content
Additional questions on climate-related metrics for the following high-impact sectors:
- Capital goods
- Cement
- Chemicals
- Coal
- Construction
- Electric utilities
- Metals & mining
- Oil & gas
- Real estate
- Steel
- Transport original equipment manufacturers (OEMs)
- Transport services
Pathway diagram - questions
This diagram shows the general questions contained in module C9. To access question-level guidance, use the menu on the left to navigate to the question.
Other climate-related metrics
(C9.1) Provide any additional climate-related metrics relevant to your business.
Change from 2020
No change
Rationale
CDP data users seek to understand in which areas, beyond GHG emissions, companies are trying to reduce their environmental impacts.
Connection to other frameworks
TCFD
Metrics & Targets recommended disclosure a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Description
|
Metric value
|
Metric numerator
|
Metric denominator (intensity metric only)
|
% change from previous year
|
Direction of change
|
Please explain
|
Select from:
- Waste
- Energy usage
- Land use
- Other, please specify
|
Numerical field [enter a number from 0 to 99,999,999,999 using up to 2 decimal places]
|
Text field [maximum 50 characters]
|
Text field [maximum 50 characters]
|
Numerical field [enter a number from 0 to 999 using up to 2 decimal places]
|
Select from:
- Increased
- Decreased
- No change
|
Text field [maximum 2,400 characters]
|
[Add Row]
Requested content
General
- Complete the table to report any additional climate-related metrics your business tracks beyond emissions reductions and renewable energy-related activities.
- If you track more than one additional climate-related metric, describe them each in a separate row.
Description (column 1)
- Select the type of metric applicable to your business. If none of the listed drop-downs apply, select “Other, please specify” and provide a label for the “Description”.
Metric value (column 2)
- Enter the quantity of the unit tracked and reported in column 3. E.g. if your company tracks kilograms of waste, enter the kilograms measured during the reporting year.
- When providing an intensity metric, provide the value of the intensity. E.g. if your companies tracks kilograms of waste per FTE, enter the kilograms measured during the reporting year normalized to the number of FTE in the reporting year.
Metric numerator (column 3)
- Enter the unit of the metric that your company tracks. This unit corresponds to the value entered in column 2.
Metric denominator (column 4)
- This column is only applicable for companies tracking an intensity metric (e.g., kilograms of waste per FTE). If you do not track an intensity metric, leave this column blank.
% Change from previous year (column 5)
- If you have experienced no change, please enter 0 (zero) in this column.
- The previous year compared should apply to the 12-month period directly prior to the reporting period, even if it does not completely overlap with the period previously reported to CDP. It is understood that this metric has not been reported to CDP before and thus the reporting year for this metric may not directly overlap with other metrics reported to CDP.
- Leave the column blank if this is the first year you have tracked this metric.
Direction of change (column 6)
- Use this column to outline the direction of change from the previous year.
- A declining intensity ratio reflects a positive direction of change. E.g. your waste last reporting year was 10 metric tons/FTE and this year is 5 metric tons/FTE. This indicates a 50% decrease compared to the previous year.
- If the percentage change from last year is 0 (zero) then select “no change”.
Please explain (column 7)
- Use this column to provide any additional context relevant to the metric you are reporting and to the direction of change. Additional information could include projects or initiatives implemented to achieve progress on this metric, or any timeframes included in these goals.
Note for agricultural sectors:
- You should report data associated with the business activity areas that are relevant to your organization, as indicated in C-AC0.6/C-FB0.6/C-PF0.6. Note that these metrics should be in addition to what you have reported in modules 6 (Emissions data) and 7 (Emissions breakdown). For example, if agricultural/forestry activities are relevant to your disclosure, you could report here the area of land use change associated with your own farm or production unit. Other examples of relevant metrics are: the volume of fertilizers used for production; the consumption of water per unit of product during production, processing and/or manufacturing; the waste volume associated with the production of raw materials or the manufacture of goods; and the volume of biofuels used in the fleet.
Explanation of terms
- Land use: Land use is based on the functional dimension of land for different human purposes or economic activities. Typical categories for land use are dwellings, industrial use, transport, recreational use or nature protection areas. Additional land use metrics can relate to the climate-related arrangements, activities, and inputs regarding these categories that organizations engage in, and can include land use change and land use management metrics.
C10 Verification
Module Overview
Verification and assurance is good practice in environmental reporting as it ensures the quality of data and processes disclosed.
This module requests details on the verification status that applies to organizations’ reported Scope 1, 2 and 3 emissions, as well as on the verification of other climate-related information reported in the CDP disclosure.
Key changes
Pathway diagram - questions
This diagram shows the general questions contained in module C10. To access question-level guidance, use the menu on the left to navigate to the question.
Verification
(C10.1) Indicate the verification/assurance status that applies to your reported emissions.
Change from 2020
No change
Rationale
CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.
Response options
Please complete the following table:
Scope
|
Verification/assurance status
|
Scope 1
|
Select from:
- No emissions data provided
- No third-party verification or assurance
- Third-party verification or assurance process in place
|
Scope 2 (location-based or market-based)
|
Select from:
- No emissions data provided
- No third-party verification or assurance
- Third-party verification or assurance process in place
|
Scope 3
|
Select from:
- No emissions data provided
- No third-party verification or assurance
- Third-party verification or assurance process in place
|
Requested content
General
- Please provide the verification/assurance
status that applies to your Scope 1, Scope 2, and Scope 3 emissions. If you
have had a proportion of your Scope 1, 2, and/or 3 emissions verified, please
select the option that applies to these emissions; you will be given an
opportunity to provide further details in the following questions.
- If verification/assurance is underway, or
part of a biennial or triennial process: It is recognized that for some
companies, the verification/assurance schedule is out of synchronization with
the CDP disclosure process and therefore it is difficult to complete the verification/assurance
process before the CDP deadline. In addition, verification/assurance processes
may occur every two years (biennial verification) or every three years
(triennial verification). Where this is the case, you should select
“Verification or assurance process in place” and provide further information in
the following questions.
- In the following questions you will be
asked to provide evidence of any third-party verification that you have reported
in this question. Companies are advised to verify that their evidence can
demonstrate all of the requirements set by CDP before answering this question (e.g.
by consulting with their verifier/assurer). Full details are provided in the
guidance for questions C10.1a, C10.1b and C10.1c. If certain information
requirements set by CDP are not met in the standard assurance statement
provided by your verifier, CDP has produced a
template
that can be used in conjunction with the original assurance statement.
Scope 2
- If you operate in a region where you need
to calculate both a location-based and a market-based figure to meet Scope 2
requirements, at this stage
CDP only requires for you to verify one of these
figures
. However, in the interest of transparency, you are asked to disclose
which of the two figures you have verified. If you are verifying your
market-based Scope 2 emissions figure, and your verification engagements cover
>70% of your Scope 2
activity (energy purchased or acquired and consumed by
the reporting company (MWh)), but less than 70% of your Scope 2
emissions, this
will be acceptable for full points provided you attach the relevant statement.
Additional information
Annual, biennial and triennial processes: If in the year the verification is completed (for example, Year 3), the data for all sources during the full cycle is verified (for example year 1, 2, and 3) the company can report 100% verification and should attach the verification statements that cover the emissions for all three years. This would be considered a triennial process. Graph of this situation is provided for clarity below (Figure 1).
Annual processes: Not all processes taking place over three years will be considered a triennial process. The graphs below illustrate annual processes, which should not be confused with triennial.
Figure 2 shows an annual process, where in the year the verification is completed (for example, Year 3) only the data for that year is verified.
Another example of a yearly process is when one third of the sources is verified every year (Figure 3). Under this scenario, in Year 3 only 1/3 of the sources are verified, with the second third verified in Year 2, and the remaining third in Year 1. The company should report this as a yearly process where 33% of the sources are verified.
Likewise, where a company has 1/3 of their emissions verified every year this is an annual process (Figure 4):
CDP regards verification/assurance as a process undertaken by an independent third party accredited to perform verification/assurance of the GHG emissions data. Please only state that you have had or are having verification/assurance carried out if it is by an independent third party accredited to perform verification/assurance of GHG data. CDP does not prescribe companies’ choice of specific verification/assurance providers. However, companies searching for a provider may want to consult our list of accredited verification partners: Learn more about CDP solution providers offering third party verification services here.
(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 emissions and attach the relevant statements.
Question dependencies
This question only appears if you select “Third-party verification or assurance process in place” for Scope 1 emissions in response to C10.1.
Change from 2020
No change
Rationale
CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Verification or assurance cycle in place
|
Status in the current reporting year
|
Type of verification or assurance
|
Attach the statement
|
Page/section reference
|
Relevant standard
|
Proportion of reported emissions verified (%)
|
Select from:
- Annual process
- Biennial process
- Triennial process
|
Select from:
- No verification or assurance of current reporting year
- Underway but not complete for current reporting year – first year it has taken place
- Underway but not complete for reporting year – previous statement of process attached
- Complete
|
Select from:
- Not applicable
- Limited assurance
- Moderate assurance
- Reasonable assurance
- High assurance
- Third party verification/assurance underway
|
Attach your document here
|
Text field [maximum 500 characters]
|
Select from drop-down options below
|
Numerical field [enter a number from 0-100 using no decimals or commas]
|
[Add Row]
Relevant standard drop-down options:
- AA1000AS
- Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
- Airport Carbon Accreditation (ACA) des Airports Council International Europe
- Alberta Carbon Competitiveness Incentive Regulation (CCIR)
- ASAE3000
- Attestation standards established by AICPA (AT105)
- Australian National GHG emission regulation (NGER)
- California Mandatory GHG Reporting Regulations (CARB)
- Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
- Certified emissions measurement and reduction scheme (CEMARS)
- Chicago Climate Exchange (CCX) verification standard
- Compagnie Nationale des Commissaires aux Comptes (CNCC)
- Corporate GHG verification guidelines from ERT
- DNV Verisustain Protocol/ Verification Protocol for Sustainability Reporting
- Earthcheck Certification
- ERM GHG Performance Data Assurance Methodology
- European Union Emissions Trading System (EU ETS)
- IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
- IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
- ISAE3000
- ISAE 3410
- ISO14064-3
- Japan voluntary emissions trading scheme (JVETS) guideline for verification
- Korean GHG and energy target management system
- NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
- RevR6 procedure for assurance of sustainability report
- Saitama Prefecture Target-Setting Emissions Trading Program
- SGS Sustainability Report Assurance
- Spanish Institute of Registered Auditors (ICJCE)
- Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
- State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
- Swiss Climate CO2 Label for Businesses
- Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
- The Climate Registry's General Verification Protocol
- Tokyo cap-and-trade guideline for verification
- Verification as part of Carbon Trust standard certification
- Other, please specify
Requested content
General
- If you are reporting third party
verification or assurance underway, your entries into the table should reflect
the emissions that are being subject to verification/assurance for the current
reporting year, with the exception of the attached statement, which will relate
to a previous year.
- CDP understands that you may seek
verification for reasons other than reporting to CDP and that confidential
information may be included within your detailed verification statement. In
this case, it is sufficient for your verifier/assurer to attest to the Scope
and level of assurance/verification through correspondence such as an
abbreviated statement as long as this covers the data points outlined below
(see guidance for column 4 ‘Attach your statement here’).
Verification or assurance cycle in place
(column 1)
- A biennial verification/assurance process
is where emissions are verified once every two years and a triennial
verification/assurance process is where emissions are verified once every three
years.
- You may refer to the additional information
provided on annual, biennial and triennial processes in C10.1 for further
information.
Status in the current reporting year
(column 2)
- Please select the option that is most
appropriate to your company.
Type of verification or assurance (column 3)
- This column relates to the type of
verification or assurance that has been awarded.
- The option that is relevant will depend on
the verification standard to which the verification process has been completed
and the level of assurance agreed between the verifier and the company.
- Companies can select from the following
options:
- Not applicable - In very few cases, usually in program based
compliance, the verification standard does not include a level of assurance; in
this case select this option.
- Limited assurance - This is one of the most common levels of
assurance and, for e.g., is appropriate to verification undertaken in
accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance - For example, this level of assurance is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance - For example, this is appropriate to
verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate
Registry; all verification undertaken for EU ETS compliance is to a level of
“reasonable assurance” (according to the requirements of EA-6/03).
- High assurance - For example, this is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway
- Select this option if verification/assurance is underway and you do not yet
know the level of assurance that you are intending to achieve.
Attach the statement (column 4)
- Note the requirements for the statement
detailed below and the option to use the
CDP template.
- All companies should attach a verification
statement here unless they have selected “No verification or assurance of
current reporting year” or “Underway but not complete for current reporting
year – first year it has taken place” in column 2 ‘Status in the current
reporting year’. The statement should:
- Clearly state that GHG emissions have been
verified or assured as part of the process. If the statement refers to other
documents that have been verified (such as Sustainability Report, Financial
Report, GRI etc.) where items verified are specified, please attach those to
the question as well;
- Relate to the relevant Scope;
- Clearly state the opinion and type of
verification/assurance that has been given and the verification standard used. Assurers/verifiers
must define the finding in their opinion, simply stating “limited assurance” is
not sufficient to fulfill this criterion. These should match the selections
made in columns 1 and 3; and
- Covers the current reporting year, or
covers the 12-months prior for annual processes, 12-24 months prior for biennial
processes, or 12-36 months prior for triennial processes if “Underway but not complete for reporting
year – previous statement of process attached” is selected in “Status in the
current reporting year” column.
Page/section reference (column 5)
- Please identify the page and the section
that contains details of your verification/assurance of Scope 1 emissions.
Relevant standard (column 6)
- This column captures the verification
standard against which the verification process has been undertaken.
- It does not refer to the reporting or
calculation standard. CDP has produced criteria for what constitutes an
acceptable verification standard. All accepted verification standards, and
exceptions to their use, are
listed here. If you are using a
verification standard that is not listed in the “accepted standards” nor the “non-verification
standards,” please email
[email protected]
in order to have your verification standard reviewed. If you do not have your standard
reviewed by contacting us and your response is submitted before the official
CDP deadline, CDP will then review the standard used and add it to the website
under “accepted” or “not accepted” depending on the outcome of the standard
review. If the response is submitted after the official deadline, CDP cannot
commit to review the standard used in time for scoring.
- Select from the accepted standards listed
or use “Other, please specify” if the standard you are using is not included.
- If you select “Other, please specify”,
provide a label for the Relevant standard.
- The verification standard should be stated
on the verification statement.
Proportion of reported emissions verified
(%) (column 7)
- It may be the case that only a sub-section
of your emissions has been verified/assured due to, for e.g., regulatory
requirements.
- Please identify what proportion of your
total reported emissions for Scope 1 has been subject to the
verification/assurance process described.
Additional information
- Verification processes: If you have attained verification covering all your reported Scope 1 emissions (for example GHG emissions reported in your sustainability report) and also other verification covering smaller proportion of your business (for example only Californian operations or facilities under EU ETS regulation), you only should report the verification in place covering all reported Scope 1 emissions. If you have multiple verification practices covering different business divisions (for example Californian operations and facilities under EU ETS), you should report all of them by adding rows to the table, completing all columns, and attaching the appropriate documents for each verification practice.
- Note that this question refers to the proportion of your total reported gross global Scope 1 emissions over which you have sought verification, not the sampling regime that the verifier employed. For example, if you have only sought verification over your US operations then you should report the percentage of your total reported gross global Scope 1 emissions that these US facilities represent. Alternatively, if you have sought organization-wide verification, then you should enter 100%. If you have reported your full GHG inventory in your corporate communications material which has been verified, please enter 100%. If you are reporting third party verification or assurance underway, your answer should reflect the proportion of emissions that are being subject to verification/assurance for the current reporting year.
(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 2 emissions and attach the relevant statements.
Question dependencies
This question only appears if you select “Third-party verification or assurance process in place” for Scope 2 emissions in response to C10.1.
Change from 2020
No change
Rationale
CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Scope 2 approach
|
Verification or assurance cycle in place
|
Status in the current reporting year
|
Type of verification or assurance
|
Attach the statement
|
Page/ section reference
|
Relevant standard
|
Proportion of reported emissions verified (%)
|
Select from:
- Scope 2 location-based
- Scope 2 market-based
|
Select from:
- Annual process
- Biennial process
- Triennial process
|
Select from:
- No verification or assurance of current reporting year
- Underway but not complete for current reporting year – first year it has taken place
- Underway but not complete for reporting year – previous statement of process attached
- Complete
|
Select from:
- Not applicable
- Limited assurance
- Moderate assurance
- Reasonable assurance
- High assurance
- Third party verification/assurance underway
|
Attach your document here
|
Text field [maximum 500 characters]
|
Select from drop-down options below
|
Numerical field [enter a number from 0-100 using no decimals or commas]
|
[Add Row]
Relevant standard drop-down options:
- AA1000AS
- Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
- Airport Carbon Accreditation (ACA) des Airports Council International Europe
- Alberta Carbon Competitiveness Incentive Regulation (CCIR)
- ASAE3000
- Attestation standards established by AICPA (AT105)
- Australian National GHG emission regulation (NGER)
- California Mandatory GHG Reporting Regulations (CARB)
- Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
- Certified emissions measurement and reduction scheme (CEMARS)
- Chicago Climate Exchange (CCX) verification standard
- Compagnie Nationale des Commissaires aux Comptes (CNCC)
- Corporate GHG verification guidelines from ERT
- DNV Verisustain Protocol/ Verification Protocol for Sustainability Reporting
- Earthcheck Certification
- ERM GHG Performance Data Assurance Methodology
- European Union Emissions Trading System (EU ETS)
- IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
- IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
- ISAE3000
- ISAE 3410
- ISO14064-3
- Japan voluntary emissions trading scheme (JVETS) guideline for verification
- Korean GHG and energy target management system
- NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
- RevR6 procedure for assurance of sustainability report
- Saitama Prefecture Target-Setting Emissions Trading Program
- SGS Sustainability Report Assurance
- Spanish Institute of Registered Auditors (ICJCE)
- Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
- State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
- Swiss Climate CO2 Label for Businesses
- Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
- The Climate Registry’s General Verification Protocol
- Tokyo cap-and-trade guideline for verification
- Verification as part of Carbon Trust standard certification
- Other, please specify
Requested content
General
- If you are reporting third party
verification or assurance underway, your entries into the table should reflect
the emissions that are being subject to verification/assurance for the current
reporting year, with the exception of the attached statement, which will relate
to a previous year.
- CDP understands that you may seek
verification for reasons other than reporting to CDP and that confidential
information may be included within your detailed verification statement. In
this case, it is sufficient for your verifier/assurer to attest to the Scope
and level of assurance/verification through correspondence such as an
abbreviated statement as long as this covers the data points outlined below
(see guidance for column 5 "Attach your statement here")
Scope 2 approach (column 1)
- Select
the Scope 2 calculation approach to which your verification/assurance statement
applies.
- If
you operate in a region where you need to calculate both a location-based and a
market-based figure to meet Scope 2 requirements, at this stage CDP only
requires for you to verify one of these figures.
- However,
in the interest of transparency, you are asked to disclose which of the two
figures you have verified.
- If
you are verifying your market-based Scope 2 emissions figure and your
verification engagements cover >70% of your Scope 2 activity, but less than
70% of your Scope 2 emissions, this will be acceptable for full points provided
you attach the relevant statement.
Verification or assurance cycle in place (column
2)
- A biennial verification/assurance process
is where emissions are verified once every two years and a triennial
verification/assurance process is where emissions are verified once every three
years.
- You may refer to the further information in
C10.1 on annual, biennial and triennial processes for further information on annual,
biennial and triennial processes.
Status in the current reporting year
(column 3)
- Please select the option most appropriate
to your company.
Type of verification or assurance (column 4)
- This column relates to the type of
verification or assurance that has been awarded.
- The option that is relevant will depend on
the verification standard to which the verification process has been completed
and the level of assurance agreed between the verifier and the company.
- Companies can select from the following
options:
- Not applicable - In very few cases, usually in program based
compliance, the verification standard does not include a level of assurance; in
this case select this option.
- Limited assurance -This is one of the most common levels of
assurance and, for e.g., is appropriate to verification undertaken in
accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance - For example, this level of assurance is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance - For example, this is appropriate to
verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate
Registry; all verification undertaken for EU ETS compliance is to a level of
“reasonable assurance” (according to the requirements of EA-6/03).
- High assurance – For example, this is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway
– Select this option if verification/assurance is underway and you do not yet
know the level of assurance that you are intending to achieve.
Attach the statement (column 5)
- Note the requirements for the statement
detailed below and the option to use the CDP template.
- All companies should attach a verification statement here unless they have selected “No verification or assurance of current reporting year” or “Underway but not complete for current reporting year – first year it has taken place” in column 3 "Status in the current reporting year". The statement should:
- Clearly state that GHG emissions have been
verified or assured as part of the process. If the statement refers to other
documents that have been verified (such as Sustainability Report, Financial
Report, GRI etc.) where items verified are specified, please attach those to
the question as well;
- Relate to the relevant Scope;
- Clearly state the opinion and type of verification/assurance
that has been given and the verification standard used; and
- Cover the current reporting year, or
covers the 12-months prior if “Underway but not complete for reporting year –
previous statement of process attached” is selected in “Status in the current
reporting year” column.
Page/section reference (column 6)
- Please identify the page and the section
that contains details of your verification/assurance of Scope 2 emissions.
Relevant standard (column 7)
- This column captures the verification
standard against which the verification process has been undertaken. It does
not refer to the reporting or calculation standard.
- CDP has produced criteria for what
constitutes an acceptable verification standard. All accepted verification
standards, and exceptions to their use, are
listed here.
- The verification standard should be stated
on the verification statement. If the response is submitted before the official
CDP deadline, CDP will then review the standard used and add it to the website
under “accepted” or “not accepted” depending on the outcome of the standard
review.
- If the response is submitted after the
official deadline, CDP cannot commit to review the standard used in time for
scoring.
- Select from the accepted standards listed
or use “Other, please specify” if the standard you are using is not included.
- If you select “Other, please specify”,
provide a label for the Relevant standard.
Proportion of reported emissions verified
(%) (column 8)
- It may be the case that only a sub-section
of your emissions has been verified/assured due to, for e.g., regulatory
requirements.
- Please identify what proportion of your
total reported emissions for Scope 2 has been subject to the
verification/assurance process described.
(C10.1c) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevant statements.
Question dependencies
This question only appears if you select “Third-party verification or assurance process in place” for Scope 3 emissions in response to C10.1.
Change from 2020
No change
Rationale
CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Scope 3 category
|
Verification or assurance cycle in place
|
Status in the current reporting year
|
Type of verification or assurance
|
Attach the statement
|
Page/ section reference
|
Relevant standard
|
Proportion of reported emissions verified (%)
|
Select from:
- 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
|
Select from:
- Annual process
- Biennial process
- Triennial process
|
Select from:
- No verification or assurance of current reporting year
- Underway but not complete for current reporting year – first year it has
taken place
- Underway but not complete for reporting year – previous statement of
process attached
- Complete
|
Select from:
- Not applicable
- Limited assurance
- Moderate assurance
- Reasonable assurance
- High assurance
- Third party verification/assurance underway
|
Attach your document here
|
Text field [maximum 500 characters]
|
Select from drop-down options below
|
Numerical field [enter a number from 0-100 using no decimals or commas]
|
[Add Row]
Relevant standard drop-down options:
- AA1000AS
- Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
- Airport Carbon Accreditation (ACA) des Airports Council International Europe
- Alberta Carbon Competitiveness Incentive Regulation (CCIR)
- ASAE3000
- Attestation standards established by AICPA (AT105)
- Australian National GHG emission regulation (NGER)
- California Mandatory GHG Reporting Regulations (CARB)
- Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
- Certified emissions measurement and reduction scheme (CEMARS)
- Chicago Climate Exchange (CCX) verification standard
- Compagnie Nationale des Commissaires aux Comptes (CNCC)
- Corporate GHG verification guidelines from ERT
- DNV Verisustain Protocol/ Verification Protocol for Sustainability Reporting
- Earthcheck Certification
- ERM GHG Performance Data Assurance Methodology
- European Union Emissions Trading System (EU ETS)
- IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
- IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
- ISAE3000
- ISAE 3410
- ISO14064-3
- Japan voluntary emissions trading scheme (JVETS) guideline for verification
- Korean GHG and energy target management system
- NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
- RevR6 procedure for assurance of sustainability report
- Saitama Prefecture Target-Setting Emissions Trading Program
- SGS Sustainability Report Assurance
- Spanish Institute of Registered Auditors (ICJCE)
- Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
- State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
- Swiss Climate CO2 Label for Businesses
- Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
- The Climate Registry's General Verification Protocol
- Tokyo cap-and-trade guideline for verification
- Verification as part of Carbon Trust standard certification
- Other, please specify
Requested content
General
- If you are reporting third party verification or assurance underway, your entries into the table should reflect the emissions that are being subject to verification/assurance for the current reporting year, with the exception of the attached statement, which will relate to a previous year.
- CDP understands that you may seek verification for reasons other than reporting to CDP and that confidential information may be included within your detailed verification statement. In this case, it is sufficient for your verifier/assurer to attest to the Scope and level of assurance/verification through correspondence such as an abbreviated statement as long as this covers the data points outlined below (see guidance for column 4 ‘Attach your statement here’).
Scope 3 category (column 1)
Verification or assurance cycle in place (column 2)
- A biennial verification/assurance process is where Scope 3 emissions are verified once every two years and triennial verification/assurance process where Scope 3 emissions are verified once every three years.
- You may refer to the further information in C10.1 on annual, biennial and triennial processes for further information on annual, biennial and triennial processes.
Status in the current reporting year (column 3)
- Please select the option most appropriate to your company
Type of verification or assurance (column 4)
- This column relates to the type of verification or assurance that has been awarded.
- The option that is relevant will depend on the verification standard to which the verification process has been completed and the level of assurance agreed between the verifier and the company.
- Companies can select from the following options:
- Not applicable -In very few cases, usually in program based compliance, the verification standard does not include a level of assurance; in this case select this option.
- Limited assurance -This is one of the most common levels of assurance and, for e.g., is appropriate to verification undertaken in accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance -For example, this level of assurance is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance -For example, this is appropriate to verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry; all verification undertaken for EU ETS compliance is to a level of “reasonable assurance” (according to the requirements of EA-6/03).
- High assurance - For example, this is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway - Select this option if verification/assurance is underway and you do not yet know the level of assurance that you are intending to achieve
Attach the statement (column5)
- Note the requirements for the statement detailed below and the option to use the CDP template.
- All companies should attach a verification statement here unless they have selected “No verification or assurance of current reporting year” or “Underway but not complete for current reporting year – first year it has taken place” in column 3 ‘Status in the current reporting year’. The statement should:
- Clearly state that GHG emissions have been verified or assured as part of the process. If the statement refers to other documents that have been verified (such as Sustainability Report, Financial Report, GRI etc.) where items verified are specified, please attach those to the question as well;
- Relate to the relevant Scope 3 category;
- Clearly state the opinion and type of verification/assurance that has been given and the verification standard used.
- Covers the current reporting year, or covers the 12-months prior if “Underway but not complete for reporting year – previous statement of process attached” is selected in “Status in the current reporting year” column.
Page/section reference (column 6)
- Please identify the page and the section that contains details of your verification/assurance of Scope 3 emissions.
Relevant standard (column 7)
- This column captures the verification standard against which the verification process has been undertaken. It does not refer to the reporting or calculation standard.
- CDP has produced criteria for what constitutes an acceptable verification standard. All accepted verification standards, and exceptions to their use, are listed here.
- The verification standard should be stated on the verification statement. If the response is submitted before the official CDP deadline, CDP will then review the standard used and add it to the website under “accepted” or “not accepted” depending on the outcome of the standard review.
- If the response is submitted after the official deadline, CDP cannot commit to review the standard used in time for scoring.
- Select from the accepted standards listed or use “Other, please specify” if the standard you are using is not included.
- If you select “Other, please specify”, provide a label for the Relevant standard.
Proportion of reported emissions verified (%) (column 8)
- It may be the case that only a sub-section of your emissions has been verified/assured due to, for e.g., regulatory requirements.
- Please identify what proportion of your total reported emissions for the selected Scope 3 category has been subject to the verification/assurance process described.
Other verified data
(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5?
Change from 2020
No change
Rationale
This information gives data users further confidence in the information provided in your organization’s response. Data users often ask about the credibility/ quality of the data and other information disclosed. CDP supports verification and assurance as good practice in environmental reporting as it ensures the quality of data and processes disclosed. This question allows leading companies to report their efforts on this, and to highlight trends that CDP data users might anticipate being good practice among companies in the future.
Response options
Select one of the following options:
- Yes
- In progress
- No, but we are actively considering verifying within the next two years
- No, we are waiting for more mature verification standards and/or processes
- No, we do not verify any other climate-related information reported in our CDP disclosure
(C10.2a) Which data points within your CDP disclosure have been verified, and which verification standards were used?
Question dependencies
This question only appears if you select “Yes” in response to C10.2.
Change from 2020
No change
Rationale
This information gives data users further confidence in the information provided in your organization’s response. Data users often ask about the credibility/ quality of the data and other information disclosed. CDP supports verification and assurance as good practice in environmental reporting as it ensures the quality of data and processes disclosed. This question allows leading companies to report their efforts on this, and to highlight trends that CDP data users might anticipate being good practice among companies in the future.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Disclosure module verification relates to
|
Data verified
|
Verification standard
|
Please explain
|
Select from:
- C0. Introduction
- C1. Governance
- C2. Risks and opportunities
- C3. Business Strategy
- C4. Targets and performance
- C5. Emissions performance
- C6. Emissions data
- C7. Emissions breakdown
- C8. Energy
- C9. Additional metrics
- C11. Carbon pricing
- C12. Engagement
- C13. Other land management impacts
- C14. Portfolio impact
- C15. Signoff
- SC. Supply chain module
|
Select from:
- Year on year change in emissions (Scope
1)
- Year on year change in emissions (Scope
2)
- Year on year change in emissions (Scope
1 and 2)
- Year on year change in emissions (Scope
3)
- Year on year emissions intensity figure
- Financial or other base year data
points used to set a science-based target
- Progress against emissions reduction
target
- Change in Scope 1 emissions against a
base year (not target related)
- Change in Scope 2 emissions against a
base year (not target related)
- Change in Scope 3 emissions against a
base year (not target related)
- Product footprint verification
- Emissions reduction activities
- Renewable energy products
- Energy consumption
- Don’t know
- Other, please specify
|
Text field [maximum 1,500 characters]
|
Text field [maximum 1,500 characters]
|
[Add Row]
Requested content
Disclosure module verification relates to (column 1)
- Select the questionnaire module that the verification standard applies to.
Data verified (column 2)
- Select from the data points provided or use “Other, please specify” if the data you have verified is not included.
- If you select “Other, please specify”, provide a label for the Data verified.
Verification standard (column 3)
- This column captures the verification standard against which the verification process has been undertaken. It does not refer to the reporting or calculation standard.
- Clearly state the type of verification/assurance that has been given and the name of the verification standard used.
- CDP has produced criteria for what constitutes an acceptable verification standard. All accepted verification standards, and exceptions to their use, are listed here.
Please explain (column 4)
- Explain here why your company has chosen to verify the selected data points with each given standard.
- Where possible, reference specific question numbers.
- You can also describe here the frequency with which you complete this verification and the scope it encompasses.
- Outline if you have sought organization wide verification or if you have only sought verification over a certain proportion of your operations.
C11 Carbon pricing
Module Overview
Carbon pricing has emerged as a key policy mechanism to drive greenhouse gas emissions reductions and mitigate the dangerous impacts of climate change. As the number of jurisdictions with carbon pricing policies has doubled over the last decade, CDP data users are interested in understanding how companies are affected by these schemes.
This module examines details on the operations or activities regulated by carbon pricing systems, carbon credits and internal prices on carbon.
For further guidance on reporting to the questions in this module see CDP’s Technical Note Carbon Pricing: CDP Disclosure Best Practice.
Key changes
Pathway diagram - questions
This diagram shows the general questions contained in module C11. To access question-level guidance, use the menu on the left to navigate to the question.
Carbon pricing systems
(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?
Change from 2020
No change
Rationale
Companies are requested to report whether they are subject to, or potentially subject to, mandatory carbon pricing systems. This question has evolved to include whether companies are currently regulated by a carbon pricing system – including carbon markets or taxation – or whether they expect to be regulated in the future. Companies responding ”Yes” will be further prompted to identify the systems in which they participate and to provide additional details about their exposure to these systems. This information allows investors to consistently track and analyze corporate expectations and the associated costs of carbon pricing regulations, and forces unregulated companies to consider potential future exposure.
Connection to other frameworks
SDG
Goal 13: Climate action
Response options
Select one of the following options:
- Yes
- No, but we anticipate being regulated in the next three years
- No, and we do not anticipate being regulated in the next three years
Requested content
General
- Companies responding ”Yes” will be further prompted to identify the systems in which they participate and to provide additional details about their exposure to these systems.
Additional information
- Carbon pricing policies: Carbon pricing has emerged as a key policy mechanism to drive greenhouse gas emissions reductions and mitigate the dangerous impacts of climate change. Policies primarily manifest in one of two ways; or, in some countries and regions, both ways.
- An emissions trading scheme, also known as a cap and trade system, is a market-based allowance system in which participants can buy and sell a set amount of allowances based on their emissions levels. Low emitters will have allowances left over for sale, which higher emitters will buy to offset their emissions – operating in a demand and supply scenario.
- A carbon tax attaches a fee to carbon emissions.
These policies in practice vary specifically on a case-by-case basis.
- Carbon pricing in the form of emissions trading schemes and carbon taxes worldwide, covered US$52 billion worth of pollution in 2017. Carbon pricing policies currently exist in 42 countries at the national level and 25 areas at the subnational level – numbers that have almost doubled since 2012. Considering this growing trend to combat climate change risks, additional countries and regions are also considering or already planning carbon pricing initiatives for the near future.
For more information, please see:
(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
Question dependencies
This question only appears if you select “Yes” in response to C11.1.
Change from 2020
No change
Rationale
As the number of jurisdictions with carbon pricing policies has doubled over the last decade, users of CDP data are interested in understanding how companies are affected by these schemes. This question provides investors and data users with a sense of the regulatory environments in which companies operate and the potential for future regulation which may impact a company's operations.
Connection to other frameworks
SDG
Goal 13: Climate action
Response options
Select all that apply from the following options:
- Alberta Carbon Competitiveness Incentive Regulation (CCIR) – ETS
- Argentina carbon tax
- Australia ERF Safeguard Mechanism - ETS
- BC carbon tax
- BC GGIRCA - ETS
- Beijing pilot ETS
- California CaT – ETS
- Canada federal fuel charge
- Canada federal Output Based Pricing System (OBPS) - ETS
- Chile carbon tax
- China national ETS
- Chongqing pilot ETS
- Colombia carbon tax
- Denmark carbon tax
- Estonia carbon tax
- EU ETS
- Finland carbon tax
- France carbon tax
- Fujian pilot ETS
- Guangdong pilot ETS
- Hubei pilot ETS
- Iceland carbon tax
- Ireland carbon tax
- Japan carbon tax
- Kazakhstan ETS
- Korea ETS
- Latvia carbon tax
- Liechtenstein carbon tax
- Massachusetts state ETS
- Mexico carbon tax
- New Zealand ETS
- Newfoundland and Labrador PSS - ETS
- Nova Scotia CaT - ETS
- Norway carbon tax
- Newfoundland and Labrador carbon tax
- Poland carbon tax
- Portugal carbon tax
- Prince Edward Island carbon tax
- Québec CaT - ETS
- RGGI - ETS
- Saitama ETS
- Saskatchewan OBPS - ETS
- Shanghai pilot ETS
- Shenzhen pilot ETS
- Singapore carbon tax
- Slovenia carbon tax
- South Africa carbon tax
- Spain carbon tax
- Sweden carbon tax
- Switzerland carbon tax
- Switzerland ETS
- Tianjin pilot ETS
- Tokyo CaT - ETS
- UK carbon price floor
- Ukraine carbon tax
- Washington CAR - ETS
- Other carbon tax, please specify
- Other ETS, please specify
Requested content
General
- Select from the carbon pricing regulation(s) which impacts your operations listed or use “Other, please specify” if the carbon pricing regulation(s) you are using is not included.
- If you select “Other carbon tax/ETS, please specify,” identify the carbon pricing regulation(s) which impacts your operations.
(C11.1b) Complete the following table for each of the emissions trading schemes you are regulated by.
Question dependencies
This question only appears if you select an emissions trading option in response to C11.1a.
Change from 2020
No change
Rationale
As the number of jurisdictions with carbon pricing policies has doubled over the last decade, users of CDP data are interested in understanding how companies are affected by these schemes. This question provides investors and data users with a sense of the regulatory environments in which companies operate and the potential for future regulation which may impact a company's operations.
Connection to other frameworks
SDG
Goal 13: Climate action
Response options
Please complete the following table.
System name
|
% of Scope 1 emissions covered by the ETS
|
% of Scope 2 emissions covered by the ETS
|
Period start date
|
Period end date
|
Fixed table rows are populated by selection in C11.1a
|
Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]
|
Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]
|
Enter the start date that applies to the data in the row. Use the calendar button or enter dates manually in the format DD/MM/YYYY. Please note that the period reported should overlap with the reporting year.
|
Enter the finish date that applies to the data in the row. Use the calendar button or enter dates manually in the format DD/MM/YYYY. Please note that the period reported should overlap with the reporting year.
|
Allowances allocated
|
Allowances purchased
|
Verified Scope 1 emissions in metric tons CO2e
|
Verified Scope 2 emissions in metric tons CO2e
|
Details of ownership
|
Comment
|
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 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]
|
Select from:
- Facilities we own and operate
- Facilities we own but do not operate
- Facilities we operate but do not own
- Other, please specify
|
Text field [maximum 2,400 characters]
|
Requested content
General
- Although some emission trading schemes may apply solely to the operators of facilities, the financial position of facility owners is also affected indirectly by the operation of the scheme. This question therefore applies to both owners and operators of facilities covered by trading schemes.
- Even if your company does not wholly own facilities, please give the total number of emissions and allowances.
System name (column 1)
- This column is driven by the emission trading schemes selected in C11.1a. You should enter information for all applicable schemes.
% of Scope 2 emissions covered by the ETS (column 3)
- Note that in this question you should only report Scope 2 emissions for which you are directly regulated, i.e. Scope 2 emissions for which you receive allowances directly within an emissions trading scheme. If you do not have direct compliance obligations for Scope 2 emissions, enter zero here.
Period start date and end date (columns 4 and 5)
- The period start date and end date refer to the annual compliance cycle of the emission trading schemes, and not the overall phase of the scheme. For example, the current European Union ETS is now in its third phase from 2013 to 2020, however the monitoring period of the annual compliance cycle runs from 1st January to 31st December.
- CDP recognizes that emissions trading systems verification deadlines don’t always align with the reporting year disclosed in C0.2. However, please note that the period start date and end dates reported should overlap with the reporting year. If you are using the Export/Import functionality, please check that the imported date is correct.
Verified Scope 1 emissions in metric tons CO2e (column 8)
- Companies participating in systems with verification deadlines at a later date than the CDP disclosure period, such as the California Cap and Trade (CaT), should submit estimates to the best of their knowledge. CDP does not wish to penalize companies for something out of their control.
- You can use the further information field at the end of the questionnaire to correct any submissions from past years that were estimated incorrectly. If doing so reference the question number C11.1b.
Verified Scope 2 emissions in metric tons CO2e (column 9)
- If you do not have direct compliance obligations for Scope 2 emissions (i.e. you have entered 0 in column 3), also enter 0 in this column.
Details of ownership (column 10)
- Select the option that best describes your ownership arrangements for the facilities subject to the scheme identified.
- If you select “Other, please specify,” provide a label for the Details of ownership.
Comment (column 11) (optional)
- If you have selected “Other ETS, please specify” in C11.1a then please provide the full name of the emission trading scheme in this column.
Additional information
Emissions Trading Schemes (ETS)
- European Union (EU) Emissions Trading System (2005): The EU ETS is currently the largest and most comprehensive ETS in place. It covers medium and large emitters and is expanding to include other industries. Allowances are allocated to companies based on National Allocation Plans determined by individual countries. Since 2013 allowances have been centrally coordinated by the European Commission. Companies that emit more than their allocated allowances need to purchase allowances from other companies that wish to sell theirs or purchase offset credits from the Kyoto Protocol’s flexible mechanisms.
- As directed above, companies should use question C11.1b to report the allowances that they have been allocated and those that they have needed to purchase in the reporting year.
Further resources on current and proposed emissions trading systems:
(C11.1c) Complete the following table for each of the tax systems you are regulated by.
Question dependencies
This question only appears if you select a carbon tax system in response to C11.1a.
Change from 2020
No change
Rationale
This question will allow investors to consistently track and analyze, in a detailed and consistent manner, the corporations participating in carbon tax systems as well as what costs they currently bear.
Connection to other frameworks
SDG
Goal 13: Climate action
Response options
Please complete the following table
Tax system
|
Period start date
|
Period end date
|
% of total Scope 1 emissions covered by tax
|
Total cost of tax paid
|
Comment
|
Fixed table rows are populated by selection in C11.1a
|
Enter the start date that applies to the data in the row. Use the calendar button or enter dates manually in the format DD/MM/YYYY. Please note that the period reported should overlap with the reporting year.
|
Enter the finish date that applies to the data in the row. Use the calendar button or enter dates manually in the format DD/MM/YYYY. Please note that the period reported should overlap with the reporting year.
|
Numerical field [enter a number from 0-100 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]
|
Text field [maximum 2,400 characters]
|
Requested content
General
- Carbon taxes are intended to directly charge emitters for the cost of pollution. However, the policy application of this definition changes on a system-by-system basis and may affect sectors differently. For example, some policies may tax producers directly; others may attribute the cost to consumers of the processed fossil fuels (i.e. utilities); and others yet may tax users such as in the form of big businesses. This question asks for information only on your direct, Scope 1 emissions that are subject to a carbon tax.
Period start date and end date (columns 2 and 3)
- Please note that the period reported should overlap with the reporting year.
- If you are using the Export/Import functionality, please check that the imported date is correct.
% of total Scope 1 emissions covered by tax (column 4)
- This column requests the percentage of your total Scope 1 emissions in the reporting period that were taxed by this carbon tax.
Total cost of tax paid (column 5)
- The total cost of tax paid reported here should be total cost of this carbon tax paid in the reporting period.
Comment (column 6) (optional)
- If you select “Other carbon tax, please specify” in C11.1a then please provide the full name of the carbon tax in this column.
Additional information
Implementation of carbon tax: Below are some examples of taxes attributed to various producing/consuming entities.- British Columbia Revenue-Neutral Carbon Tax (2008): The British Columbia carbon tax is a regional carbon tax. The policy applies to all sectors in aims of nudging business towards more energy efficient, and thus more cost efficient, operations. Tax revenue is recycled back to payers in the form of other reductions or returns. Fossil fuel producers and importers are liable for a monthly payment of the tax.
- Japan’s Tax for Climate Change Mitigation (2012): Japan’s carbon tax applies to all sectors and even with some exemptions, captures almost 70% of the country’s GHG emissions. The tax aims to fairly distribute the cost of fossil fuel usage and incentivize the transition to a low-carbon economy. Costs are incurred by the fossil fuel producers, who are expected to pay the tax on a bimonthly basis.
- United Kingdom Carbon Price Floor (2013): The UK’s CPF covers the power sector at a higher tax rate than the EU ETS market price. This policy considers power producers as the users of fossil fuels and thus attributes the quarterly tax for fossil fuels to them.
(C11.1d) What is your strategy for complying with the systems you are regulated by or anticipate being regulated by?
Question dependencies
This question only appears if you select “Yes” or “No, but we anticipate being regulated in the next three years” in response to C11.1
Change from 2020
No change
Rationale
This question provides data users with insight into an organizations long-term compliance and regulatory risk management strategy for the carbon pricing systems they are regulated by or anticipate being regulated by.
Connection to other frameworks
SDG
Goal 13: Climate action
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Some of the options for compliance include emissions reductions strategies, efficiency upgrades, purchase of allowances and the purchase of carbon credits.
- Depending on how long your company has been regulated by a carbon pricing system, efficiency upgrades may not provide the amount of reductions necessary to comply with regulations. If that is the case for your company, then you are also encouraged to detail your company’s long-term compliance and regulatory risk management strategy; including the specific metric(s) or mechanism(s) used – for example, a dedicated carbon risk management team or the use of an internal carbon price. If you use an internal carbon price, please make note of this here and provide specific details the subsequent question (C11.3a).
Project-based carbon credits
(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?
Change from 2020
No change
Rationale
Carbon credits are used by organizations for the purposes of compliance or as voluntary carbon offsets and can support the transition to a low carbon future. Data users are interested in learning about organizations who have utilized carbon credits either by originating or purchasing.
Connection to other frameworks
SDG
Goal 13: Climate action
Response options
Select one of the following options:
Requested content
General
- This question only applies to companies that have originated carbon credits or who have purchased them for the purposes of compliance or as voluntary carbon offsets.
- It is not intended to capture trading desk activity and therefore if your only reason for purchasing credits is to re-sell them, you should answer “No” to this question.
(C11.2a) Provide details of the project-based carbon credits originated or purchased by your organization in the reporting period.
Question dependencies
This question only appears if you select “Yes” in response to C11.2.
Change from 2020
No change
Rationale
Carbon credits can be originated from a variety of projects and are verified to a number of standards, data users are interested in learning about the scope of project types that are contributing to credit origination and purchase. Data users are also requesting information on the objectives of organizations who have originated or purchased carbon credits and the extent to which they are used to achieve these objectives.
Connection to other frameworks
SDG
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.
Credit origination or credit purchase
|
Project type
|
Project identification
|
Verified to which standard
|
Select from:
- Credit origination
- Credit purchase
|
Select from:
- Agriculture
- Biomass energy
- Cement
- CO2 usage
- Coal mine/bed CH4
- Energy distribution
- Energy efficiency: households
- Energy efficiency: industry
- Energy efficiency: own generation
- Energy efficiency: service
- Energy efficiency: supply side
- Forests
- Fossil fuel switch
- Fugitive
- Geothermal
- HFCs
- Hydro
- Landfill gas
- Methane avoidance
- NO
- PFCs and SF6
- Solar
- Tidal
- Transport
- Wind
- Other, please specify
|
Text field [maximum 2,400 characters]
|
Select from:
- CDM (Clean Development Mechanism)
- JI (Joint Implementation)
- Gold Standard
- VCS (Verified Carbon Standard)
- VER+ (TÜV SÜD standard)
- CAR (The Climate Action Reserve)
- ACR (American Carbon Registry)
- CCBS (developed by the Climate, Community and Biodiversity Alliance, CCBA)
- Plan Vivo
- Emissions Reduction Fund of the Australian Government
- Not yet verified
- Other, please specify
|
Number of credits (metric tons CO2e)
|
Number of credits (metric tons CO2e): Risk adjusted volume
|
Credits cancelled
|
Purpose, e.g. compliance
|
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]
|
Select from:
|
Select from:
- Compliance
- Voluntary Offsetting
- Not applicable
- Other, please specify
|
[Add Row]
Requested content
General
-
If you select “Other, please specify”, provide a label for the Project type, Verified to which standard or Purpose, e.g. compliance.
Project-based carbon credit types
- Credits can be originated by a variety of projects and for several markets, which configures several project-based carbon credit types.
- Examples of project-based carbon credits include:
- Certified Emission Reductions (CERs) generated by activities under the Clean Development Mechanism (CDM);
- Emission Reduction Units (ERUs) generated by activities under the Joint Implementation mechanism; and
- Voluntary Emission Reductions (VERs) generated by activities that reduce emissions, but do not result in the creation of compliance-grade carbon units.
Credit origination or credit purchase (column 1)
- Credit origination - Select this option if you are the company to which the credits are originally issued (e.g. you are one of the participating entities of a Clean Development Mechanism (CDM) project and you are entitled to a share of the credits issued by the CDM registry).
- Credit purchase - Select this option if you bought the credits from another company.
Number of credits (metric tons CO2e) (column 5)
- Enter the total number of annual credits that you have originated or purchased in metric tons CO2e based on the figures supplied in the agreements.
- The number of credits reported should be the credits that were originated in the reporting period, irrespective of whether you have already sold them and of whether they have been canceled or not.
Number of credits (metric tons CO2e): Risk-adjusted volume (column 6)
- Credits are sold at different stages in the life cycle of a project and therefore the volume of credits predicted will be adjusted according to different criteria, such as sector of project, stage of project, etc.
- Use this column to enter the number of annual credits that you are originating (in the pipeline), or, when you have purchased projects/credits that are still in the pipeline, provide a risk-adjusted figure (in metric tons CO2e) according to the level of risk.
- For the most part, this column applies to CDM projects that are in the pipeline and are not yet approved. Often the actual GHG reductions from a project are lower than initially forecasted, largely due to the materialization of risks associated with the project. This uncertainty means that these credits can usually be purchased at a significantly lower price than credits pertaining to more advanced stages of a project. Credits that are not yet produced in the CDM register, or in other words those that pertain to a project that is in its initial stages, are adjusted according to the risk factors and measured in “risk-adjusted volume.” If companies have no risks associated with their credit portfolio, then risk-adjusted volume can be equal to “number of credits.”
Credits canceled (column 7)
Internal price on carbon
(C11.3) Does your organization use an internal price on carbon?
Change from 2020
No change
Rationale
Internal carbon pricing has emerged as a multifaceted tool that supports companies in assessing climate-related risks and opportunities. Investors want to know more about organizations who attribute a monetary value to these risks and translate them into a uniform metric.
Response options
Select one of the following options:
- Yes
- No, but we anticipate doing so in the next two years
- No, and we don’t anticipate doing so in the next two years
Additional information
- Internal carbon price: Over the past few years, CDP has been tracking a steady increase in the number of companies embedding an internal carbon price into their business strategies. From 150 global companies in 2014, the number has steadily grown to nearly 1,400 companies in 2017 – including more than 100 Fortune Global 500 companies with collective annual revenues of about US$7 trillion – disclosing that they are using an internal carbon price or are planning to do so within the next two years.
- This growth is steady across all sectors and regions; largely driven by the parallel development of regulations that directly or indirectly price carbon and the increasing pressure from shareholders and customers for companies to adequately manage their climate-related risks.
The three main reasons for internal carbon pricing are outlined below:
- Managing risks: Companies internalize the existing, expected or potential price of carbon – from an ETS, carbon tax, or implicit carbon pricing policy – to assess its risk exposure to regulations that affect the cost of emitting CO2e.
- Identifying opportunities: Companies also use an internal carbon price as a tool to reveal potential opportunities that may emerge in the transition to the low-carbon economy. As policy and legal, market, technological and reputational factors shift, they also present opportunities for companies to seize. When used as a generic proxy in this way, an internal carbon price can help guide strategic decisions, such as low-carbon R&D to create the products and services of the future.
- Transitioning to low-carbon activities: A smaller number of organizations deliberately use an internal carbon price to drive emissions reductions and incentivize low-carbon activities – such as energy efficiency investments, clean energy, development of green products/services – in order to facilitate a company-wide low-carbon transition. This includes companies who utilize voluntary carbon markets to offset their emissions, although increasingly the focus has been on driving down emissions within the company.
For more information, please read the following documents:
(C11.3a) Provide details of how your organization uses an internal price on carbon.
Question dependencies
This question only appears if you select “Yes” in response to C11.3.
Change from 2020
No change
Rationale
Investors have requested data on why and how internal carbon pricing is used as a tool to assess and manage carbon-related risks and opportunities within a business’ operations, supply chain, and investments. This information can help an investor gauge the efficacy of a company’s application of the carbon price in terms of meeting its objectives.
Connection to other frameworks
2018 RobecoSAM Corporate Sustainability Assessment (DJSI)
Internal carbon pricing
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Objective for implementing an internal carbon price
|
GHG Scope
|
Application
|
Actual price(s) used (Currency /metric ton)
|
Variance of price(s) used
|
Type of internal carbon price
|
Impact & implication
|
Select all that apply:
- Navigate GHG regulations
- Stakeholder expectations
- Change internal behavior
- Drive energy efficiency
- Drive low-carbon investment
- Stress test investments
- Identify and seize low-carbon opportunities
- Supplier engagement
- Other, please specify
|
Select all that apply:
|
Corporate structure that price is applied to (i.e. business units, corporate divisions, facilities)
Text field [maximum 1,000 characters]
|
Numerical field [enter a number from 0-99,999,999,999 using a maximum of 2 decimal places and no commas]
|
Text field [maximum 2,400 characters]
|
Select all that apply:
- Shadow price
- Internal fee
- Internal trading
- Implicit price
- Offsets
- Other, please specify
|
Text field [maximum 2,400 characters]
|
[Add Row]
Requested content
Objective for implementing an internal carbon price (column 1)
- Select your company’s objective(s) for implementing an internal carbon price. In many cases, companies report multiple objectives – particularly as developments occur that require a readjustment of their pricing approach to maximize its effectiveness.
- The available options reflect the most common objectives that companies disclose to CDP; this list is not exhaustive and you can specify other objectives by selecting “Other, please specify.”
- If you select “Other, please specify,” provide a label for the Objective for implementing an internal carbon price.
GHG Scope (column 2)
- Identify the Scope(s) of emissions covered by the internal carbon pricing mechanism. An effective internal carbon price is one that incentivizes a company to reduce greenhouse gas emissions throughout their value chain and to integrate low-carbon activities into their operations.
- Ideally companies will consider their impact beyond just Scope 1 and 2 emissions to address risks and opportunities associated with their Scope 3 emissions as well, such as in sourcing and procurement decisions (upstream) and R&D decisions regarding innovation in the market (downstream).
Application (column 3)
- Disclose the part(s) of the business decision-making process that the internal carbon pricing mechanism applies to, and the degree of influence it has on business decisions (i.e. to what degree does a company enforce the use of the price?). The steps and depth at which an internal carbon price will be applied in the business decision-making process will vary by company.
- Commonly disclosed applications include decisions regarding capital expenditure, operations, procurement, product and R&D, and remuneration.
Actual price(s) used (Currency/metric ton) (column 4)
- Disclose the carbon price level(s).
- The currency used here should match the currency selected in C0.4.
Variance of price(s) used (column 5)
- For companies using internal carbon pricing in stress-testing or scenario analysis, it is particularly important to disclose assumptions made about how price(s) would develop over time; the geographic and economic scope of application; whether the price is applied across the entire company or to specific business units or decisions, and whether a uniform or differentiated price is used.
- Common approaches to pricing are outlined below:
- Uniform pricing: a single price that is applied throughout the company independent of geography, business unit, or type of decision
- Differentiated pricing: a price that varies by region, business unit or type of decision
- Static pricing: a price that is constant over time
- Evolutionary pricing: a price that develops over time
Type of internal carbon price (column 6)
- Identify the type(s) of internal carbon pricing mechanism your companies utilize. Common ‘types’ of internal carbon pricing approaches have emerged in recent years and are commonly referenced in corporate disclosure. Definitions are outlined below and with illustrative examples of application approaches.
- Most companies utilize a shadow price – attaching a hypothetical cost of carbon to each ton of CO2e – as a tool to reveal hidden risks and opportunities throughout its operations and supply chain and to support strategic decision-making related to future capital investments.
- Some companies with emissions reduction or renewable energy targets calculate their ‘implicit carbon price’ by dividing the cost of abatement/procurement by the tons of CO2e abated. This calculation helps quantify the capital investments required to meet climate-related targets and is frequently used as a benchmark for implementing a more strategic internal carbon price.
- Internal fee mechanisms take this approach a step further by charging responsible business units for their carbon emissions. These programs frequently reinvest the collected revenue back into clean technologies and other activities that help transition the entire company towards lower-carbon operations and investments. Some companies establish an internal trading mechanism – allowing the business units to trade allocated carbon credits.
- Some companies utilize the voluntary carbon markets to offset their emissions – internalizing this cost per ton of CO2e.
- If you select “Other, please specify,” provide a label for the Type of internal carbon price.
Impact & implication (column 7)
- Provide a company-specific description of how your organization uses internal price on carbon:
- Disclose how/if the internal carbon price has impacted your business (i.e. has it revealed material risk or impacted business decisions?) Upon implementing a carbon price, it is important for a company to review its impact against its original intentions to refine its approach to better meet future goals.
- For companies deliberately implementing an internal carbon price as a tool to achieve a climate-related goal: has there been a tangible impact? Has the tool shifted investments toward energy efficiency measures, low-carbon initiatives, energy purchases, or product offerings?
- If the internal carbon price has not impacted your business in any way, it is equally important to explain why – are there specific challenges associated with your current mechanism? Are carbon-related risks immaterial or already managed?
C12 Engagement
Module Overview
In order to truly reduce global emissions, companies must engage with their value chain on climate-related issues. Questions in this module examine how organizations are working with their suppliers, customers and other partners.
This module provides data users with insight into the different types of activities in which organizations engage to influence public policy on climate-related issues.
The module also investigates whether organizations integrate non-financial metrics and data into mainstream financial reports which is aligned with the TCFD’s primary aim to have climate-related information disclosed in financial filings.
Key changes
Sector-specific content
Additional questions on supplier engagement for the following high-impact sectors:
- Agricultural commodities
- Financial services
- Food, beverage & tobacco
- Paper & forestry
Pathway diagram - questions
This diagram shows the general questions contained in module C12. To access question-level guidance, use the menu on the left to navigate to the question.
Value chain engagement
(C12.1) Do you engage with your value chain on climate-related issues?
Change from 2020
No change
Rationale
The majority of most companies' emissions occur outside their direct operations. In order to truly reduce global emissions, companies must engage with their value chain on climate-related issues. This question seeks to ascertain which companies are engaging in the best practice of working with upstream and downstream partners to reduce negative environmental impacts.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Select all that apply from the following options:
- Yes, our suppliers
- Yes, our customers
- Yes, our investee companies [Financial services only]
- Yes, other partners in the value chain
- No, we do not engage
Requested content
General
- Select all that apply for the reporting year, however if you select “No, we do not engage” do not select any of the other options.
- Select yes, only if you have engagements that cover GHG emissions and/or climate-related strategies (i.e. target setting, renewable energy procurement, etc.).
- Other partners in the value chain are any companies that you work with in your up- or downstream activities that are not your suppliers or customers. For example, you could select this option if you engage with your franchisees on GHG emissions and climate change strategies.
- Note that employees can be treated as value chain partners if they are making their own decisions on, for example, how they commute to work. However, if employees are under direction of their manager for business travel then they should not be treated as external to the organization; in this instance, the value chain partner is the provider of the business travel, not the employee.
Note for financial services sector companies:
- Consider your engagement activity with customers/clients and investee companies to encourage better disclosure and practices around climate-related risks.
- Further details can be provided in subsequent questions C12.1b and C12.1c.
(C12.1a) Provide details of your climate-related supplier engagement strategy.
Question dependencies
This question only appears if you select “Yes, our suppliers” in response to C12.1.
Change from 2020
No change
Rationale
Answers to this question provide investors and data users with more transparency regarding companies' supplier engagement processes. As the majority of most companies’ emissions occur outside their direct operations, data users are interested in understanding how organizations are working with their suppliers to drive best practice and ameliorate climate-related issues.
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.
Type of engagement
|
Details of engagement
|
% of suppliers by number
|
% total procurement spend (direct and indirect)
|
% of supplier-related Scope 3 emissions as reported in C6.5
|
Rationale for the coverage of your engagement
|
Impact of engagement, including measures of success
|
Comment
|
Select from:
- Compliance & onboarding
- Information collection (understanding supplier behavior)
- Engagement & incentivization (changing supplier behavior)
- Innovation & collaboration (changing markets)
- Other, please specify
|
Select all that apply:
Compliance & onboarding
- Included climate change in supplier selection / management mechanism
- Code of conduct featuring climate change KPIs
- Climate change is integrated into supplier evaluation processes
- Other, please specify
Information collection (understanding supplier behavior)
- Collect climate change and carbon information at least annually from suppliers
- Other, please specify
Engagement & incentivization (changing supplier behavior)
- Run an engagement campaign to educate suppliers about climate change
- Climate change performance is featured in supplier awards scheme
- Offer financial incentives for suppliers who reduce your operational emissions (Scopes 1 & 2)
- Offer financial incentives for suppliers who reduce your downstream emissions (Scopes 3)
- Offer financial incentives for suppliers who reduce your upstream emissions (Scopes 3)
- Other, please specify
Innovation & collaboration (changing markets)
- Run a campaign to encourage innovation to reduce climate impacts on products and services
- Other, please specify
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Text field [maximum 2,400 characters]
|
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 “Type of engagement” or “Details of engagement.”
Type of engagement (column 1)
- Select the type of engagement activity your organization participates in from the drop-down.
Details of engagement (column 2)
- Expand on the engagement activity (selected in column 1) your organization participates in by selecting the relevant engagement method from the drop-down.
- Compliance & onboarding - Select this option if you require your suppliers to adhere to specific climate-related policies and you provide onboarding, either with or without training, for those suppliers to understand and meet your expectations. Compliance requirements can be either pre-requisites to establishing a customer/supplier relationship, or be specified as metrics to achieve once onboarding is completed. Select this option if adherence to certain climate change-related guidelines is included in supplier evaluations and/or contracts;
- Information collection (understanding supplier behavior) - Select this option if the purpose of your engagement with suppliers is to gather data outside of specific initiatives;
- Engagement & incentivization (changing supplier behavior) - Choose this option if you offer specific incentives for your suppliers to meet climate-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial;
- Innovation & collaboration (changing markets) - Select this option if you specifically encourage your suppliers to develop new ways to reduce climate change impacts of the products/services that they offer. This can include formal campaigns and calls for partnerships as well as informal collaboration opportunities.
% of suppliers by number (column 3)
- Present as a percentage the number of suppliers within your value chain that you engage with on climate-related issues.
% total procurement spend (column 4)
- Include the percentage of total procurement spend (for the reporting year) that the group of suppliers participating in the engagement activity detailed in this row represent. Note that total (direct and indirect) procurement spend includes all operational expenses on raw materials, goods, and services procured.
- Do not include new or potential suppliers for whom you do not have spend data.
% of supplier-related Scope 3 emissions as reported in C6.5 (column 5)
- Only include the percentage of supplier-related Scope 3 emissions reported in C6.5 that are attributable to suppliers participating in the activity selected in this row.
Rationale for coverage of your engagement (column 6)
- Explain how and why this group of suppliers was chosen for the engagement selected in column 1 (e.g. proportion of spend, geographic location, etc.). The description should be company-specific and include details on what the engagement activity entails.
Impact of engagement, including measures of success (column 7)
- Use this column to discuss the impact of this engagement and how you measure its success.
- Please provide examples of positive outcomes achieved. For example, this could include supplier GHG emissions reductions and/or improved climate change strategies including target setting.
Comment (column 8) (optional)
- Use this column to provide any additional explanation that is relevant to capture the full complexity of the emissions changes, using no more than 2400 characters.
(C12.1b) Give details of your climate-related engagement strategy with your customers.
Question dependencies
This question only appears if you select “Yes, our customers” in response to C12.1.
Change from 2020
No change
Rationale
This question provides investors and data users with more transparency regarding companies' customer engagement processes. As the majority of most companies’ emissions occur outside their direct operations, data users are interested in understanding how organizations are working with their customers to drive best practice and ameliorate climate-related issues.
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.
Type of engagement
|
Details of engagement
|
% of customers by number
|
% customer-related Scope 3 emissions as reported in C6.5
|
[FINANCIAL SERVICES ONLY] Portfolio coverage (total or outstanding)
|
Please explain the rationale for selecting this group of customers and scope of engagement
|
Impact of engagement, including measures of success
|
Select from:
- Education/information sharing
- Collaboration & innovation
- Compliance & onboarding [Financial services only]
- Information collection (understanding customer behavior) [Financial services only]
- Engagement & incentivization (changing customer behavior) [Financial services only]
- Other, please specify
|
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:
- All of the portfolio
- Majority of the portfolio
- Minority of the portfolio
- Unknown
|
Text field [maximum 2,400 characters]
|
Text field [maximum 2,400 characters]
|
[Add Row]
Details of engagement drop-down options:
Education/ information sharing
Select one of the following options:
- Run an engagement campaign to educate customers about your climate change performance and strategy
- Run an engagement campaign to educate customers about the climate change impacts of (using) your products, goods, and/or services
- Share information about your products and relevant certification schemes (i.e. Energy STAR)
Collaboration & Innovation
Select one of the following options:
- Run a campaign to encourage innovation to reduce climate change impacts
- Other, please specify
Compliance & onboarding [Financial services only]
Select one of the following options:
- Climate change considerations are integrated into customer screening processes
- Included climate change considerations in customer management mechanism
- Other, please specify
Information collection (understanding customer behavior) [Financial services only]
Select one of the following options:
- Collect climate change and carbon information from new customers as part of initial due diligence
- Collect climate change and carbon information at least annually from long-term customers
- Other, please specify
Engagement & incentivization (changing customer behavior) [Financial services only]
Select one of the following options:
- Run an engagement campaign to educate customers about climate change
- Engage with customers on measuring exposure to climate-related risk
- Encourage better climate-related disclosure practices
- Offer financial incentives for customers who reduce your downstream emissions (Scope 3) and/or exposure to carbon-related assets
- Other, please specify
Requested content
Type of engagement (column 1)
- Select the type of engagement activity your organization participates in from the drop-down.
- If you select “Other, please specify,” provide a label for the “Type of engagement”.
Details of engagement (column 2)
- Expand on the “Type of engagement” (selected in column 1) your organization participates in by selecting the relevant details of engagement from the drop-down.
- Education/information sharing - Select this option if the aim of engagement is to educate and inform customers about climate change and GHG emissions but not necessarily instigate any specific action.
- Collaboration & innovation - Select this option if you specifically encourage your customers to develop new ways to reduce the climate change impacts of the products/services that they procure from you. This can include formal campaigns and calls for partnerships as well as informal opportunities to reduce negative impacts.
- Compliance & onboarding - Select this option if you require your customers to adhere to specific climate-related policies and/or if you provide onboarding, either with or without training, for those customers to understand and meet your expectations. Compliance requirements can be either pre-requisites to establishing a financing relationship, or be specified as metrics to achieve once onboarding is completed. Select this option if adherence to certain climate-related guidelines is included in customer evaluations and/or financing contracts. [Financial services only]
- Information collection (understanding customer behavior) - Select this option if the purpose of your engagement with customers is to gather climate-related data outside of specific
- Engagement & incentivization (changing customer behavior) - Choose this option if you offer specific incentives for your customers to meet climate-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial. [Financial services only]
% of customers by number (column 3)
- Present as a percentage the number of customers participating in this engagement activity.
- [Financial services only] "Customers" refers to all customers, consumers, clients and policyholders that the organization provides financing and/or underwriting services to. For the purposes of this question the focus is on your corporate, commercial and industrial (C&I) customers as opposed to your retail customers. However, where appropriate, retail customers may also be considered.
% of customer-related Scope 3 emissions as reported in C6.5 (column 4)
- Only include the percentage of customer-related Scope 3 emissions reported in C6.5 that are attributable to customers participating in the activity selected in this row.
- [Financial services only] Additionally, as most of your customer-related Scope 3 emissions are attributable to Category 15 "Investments", also consider the emissions that you report in C-FS14.2a/C-FS14.1b that are attributable to customers participating in the activity selected in this row.
Portfolio coverage (total or outstanding) [Financial services only]
- Select the coverage of your portfolio based on the portfolio value customers participating in this engagement activity represent. Coverage can be based on either total or outstanding commitments, premiums, and/or committed capital, please define this in the next column.
- Select "All of the portfolio" if the engagement covers a 100% of your portfolio.
- Select "Majority of the portfolio" if the engagement covers more than 50% of your portfolio.
- Select "Minority of the portfolio" if the engagement covers less than 50% of your portfolio.
Explain the rationale for selecting this group of customers and scope of engagement (column 5)
- Explain how and why this group of customers was chosen for the engagement selected in column 1 (e.g. proportion of revenue generated, geographic location, etc.). Description should be company-specific and include details on what the engagement activity entails.
- [Financial services only] Additionally, explain the type of portfolio the customers fall under and the basis of your answer to column “Portfolio coverage” column. This can be either total or outstanding commitments based.
Impact of engagement, including measures of success (column 6)
- Use this column to discuss the impact of this engagement and how you measure its success.
- Please provide examples of positive outcomes achieved. For example, this could include customers reducing use-phase GHG emissions or increasing renewable energy procurement.
(C12.1d) Give details of your climate-related engagement strategy with other partners in the value chain.
Question dependencies
This question only appears if you select “Yes, other partners in the value chain” in response to C12.1.
Change from 2020
No change
Rationale
While engaging with suppliers is considered best practice, some companies may find it appropriate to work with other aspects of their value chain beyond customers and suppliers. This question provides investors and data users with more transparency into companies' engagement strategies beyond the standard or expected parties.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Note that your answer to this question should only include information not captured in C12.1a or C12.1b, and therefore only be pertinent to elements of your value chain that are not suppliers or customers. Please ensure that you explicitly identify which value chain partners you are referring to in your response.
- Provide a company-specific description of your climate-related engagement strategy, including methods of engagement, how you prioritize engagements with other elements of your value chain, and how you measure the success of these engagements.
- Methods of engagement could include, but are not limited to:
- one to one meetings or written correspondence
- collaborative projects
- holding training events
- advertising, etc.
- Your strategy for prioritizing engagements should detail how you have chosen the parts of the value chain as well as the individual partners to focus your engagement on.
- Detail how you have, or propose to, measure success and any positive outcomes achieved in the reporting year.
- Provide an example or case study of your engagement with other partners in the value chain.
(C12.1e) Why do you not engage with any elements of your value chain on climate-related issues, and what are your plans to do so in the future?
Question dependencies
This question only appears if you select “No, we do not engage” in response to C12.1.
Change from 2020
No change
Rationale
As engaging with at least some part of the value chain is considered best practice, investors and data users need to know why companies are not yet working to affect positive environmental change beyond their direct operations.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Provide a company-specific explanation of why you do not engage with any elements of your value chain on climate-related issues, and outline your plans to do so in the future. Please clearly separate the two elements of the question in your response.
Question C12.2 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
Public policy engagement
(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issues through any of the following?
Change from 2020
No change
Rationale
Participating in engagement activities that can directly or indirectly influence public policy on climate-related issues are of interest to CDP data users, as it is important to understand how companies’ public policy activities on climate change relates to other stances taken. This question provides data users with insight into the different types of activities that organizations engage in.
Response options
Select all that apply from the following options:
- Direct engagement with policy makers
- Trade associations
- Funding research organizations
- Other
- No
Requested content
General
- If you engage in activities that could either directly or indirectly influence climate change policy, select at least one of the first four options (Direct engagement, Trade associations, Funding research organizations, or Other) by ticking the adjacent box. If more than one applies, select multiple options.
- This question is focused on external engagement with policy makers, government departments, or regulatory bodies on a regional, local, national, or international level. Responses should be relevant to the reporting year only, and only be reported if you have engaged in any of the aforementioned activities that could influence policy on climate change.
- If you have multiple activities that cannot be described as direct engagement, engagement through trade associations or engagement through funding research organizations, then please select “Other” – you will be given the opportunity to explain all the engagement activities that you have included under “Other” in a subsequent question.
- There will be a wide range of activities that could be considered as each of these options. In response to this question, please select all that apply regardless of your role and how significant those activities are for your company or a third party.
- For trade associations and funding research organizations, you should identify any relationships where the other party takes an active role in climate change, even if your own relationship with them is not climate change-focused. You will be given an opportunity to describe the engagement in subsequent questions.
- Only select “No” (by ticking the adjacent box) if you do not engage in any activities with policy makers, directly or indirectly. Do not select “No” as well as one of the other options, as this would be a non-logical response.
- Your selections for this question will determine which other questions will appear in this section.
Additional information
Examples of engagement activity
- Direct engagement - This includes all activity where companies (or their representatives such as law firms or public affairs agencies engaged directly by the company) engage with policy makers or regulators on the development of law or regulation. Examples of such activities include responding to a consultation, sitting on a working group or lobbying activities directed at individuals or groups that are part of the process of developing, reviewing or amending a law or regulation. Direct engagement can include any stage in the policy or regulation development process, from the selection of options to final consultation comments, but does not include compliance with a new or updated requirement once it has come into force.
- Trade associations - Trade associations (sometimes also referred to as industry associations) are an association of people or companies in a particular business or trade, organized to promote their common interests. Trade associations are relevant here as they present an “industry voice” to governments to influence their policy development. The majority of organizations are members of multiple trade associations, many of which take a position on climate change and actively engage with policy makers on the development of policy and legislation on behalf of their members. It is acknowledged that in many cases companies are passive members of the trade associations and therefore do not actively take part in their work on climate change. This will be investigated in subsequent questions and therefore if you are a member of a trade association that engages on climate change, regardless of your own involvement, you should tick “trade associations” at question C12.3.
- Funding research organizations - In this context, research organizations can include research institutions, think tanks, and other consultancies that operate in the climate change subject area on projects intended for public dissemination that aim to influence policy. Please note that for the purpose of this question, funding may take the form of membership fees offered to research organizations. The work that you commission them for or the support that you give them may or may not be climate change-related, however if they do engage in work on climate change then you should select this option.
- Other - Examples of “Other” activities include, but are not limited to:
- Engaging directly with policy makers, regulators or other public servants on matters other than legislation or regulation relating to climate change. E.g. green procurement strategies
- Taking part in climate change projects at the request of governments
- Undertaking research or taking part in research projects with the objective to inform policy development or implementation
- Engaging with policy makers or regulators through groups (local, national or international) other than trade associations (either directly or through funding)
- Engaging with governments through special purpose, single issue groups, for example for or against a particular bill or development project
- Sponsoring or taking part in events on climate change with a policy maker audience
- Producing other media (e.g. video, blog, social media) that aims to influence policy makers on climate change
- Seconding company staff to work within government or a regulator
- For more information please see the “Guide for Responsible Corporate Engagement in Climate Policy”” produced in 2013 by CDP alongside UN Global Compact, Ceres, The Climate Group, WWF and the World Resources Institute.
(C12.3a) On what issues have you been engaging directly with policy makers?
Question dependencies
This question only appears if you select “Direct engagement with policy makers” in response to C12.3.
Change from 2020
No change
Rationale
Participating in engagement activities that can directly or indirectly influence public policy on climate-related issues are of interest to CDP data users, as it is important to understand how companies’ public policy activities on climate change relates to other stances taken. This question provides increased transparency regarding the issues that relate to organizations’ policy engagement efforts.
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.
Focus of legislation
|
Corporate position
|
Details of engagement
|
Proposed legislative solution
|
Select from:
- Mandatory carbon reporting
- Cap and trade
- Carbon tax
- Energy efficiency
- Clean energy generation
- Adaptation or resilience
- Climate finance
- Regulation of methane emissions
- Other, please specify
|
Select from:
- Support
- Support with minor exceptions
- Support with major exceptions
- Neutral
- Oppose
- Undecided
|
Text field [maximum 2,400 characters]
|
Text field [maximum 2,400 characters]
|
[Add Row]
Requested content
Focus of legislation (column 1)
- This column relates to the general area in which the legislation that you are engaging on falls.
- This column data allows investors and other data users to assess comparable legislative developments across multiple geographies.
- If none of the listed options apply, select “Other, please specify” and enter the focus of the legislation in the text box that appears. Note that you will have an opportunity to provide details of the legislation in subsequent columns.
- There is no need to provide details on all legislation types – only those on which you have been actively engaging in the reporting year.
Corporate position (column 2)
- This should reflect your overall position on this particular legislation type. For example:
- “Support” – select this option if you are engaging in full support of this legislation type across all the geographies in which you are engaging on it.
- “Support with minor exceptions” – select this option if you are engaging in support of this legislation type with either minor exceptions to the approach or with minor exceptions to geographies for whom it is proposed and where you are actively engaging. For example, if you support the principle of but oppose certain ways in which it is being applied, select this option. You will be given the chance to explain in the next column.
- “Support with major exceptions” – select this option if you are engaging in support of this legislation type with either major exceptions to the approach or with major exceptions to geographies for whom it is proposed and where you are actively engaging.
- “Neutral” – select this option if you have taken part in engagement activities for this legislation type but have not put forward a view.
- “Oppose” – select this option if you have been engaging against this legislation type across all relevant geographies.
- “Undecided” – select this option if you have been engaging on this legislation at an early stage in the development process and have yet to give an opinion or attempt to influence the policy development process in any direction.
Details of engagement (column 3)
- This column gives an opportunity to provide more details on the particular legislation on which you are engaging.
- Use the text field to provide details of how you are engaging (e.g., responding to a consultation, meeting directly with policy makers, etc.) and the legislation on which you are engaging.
- Please give the name of the legislation and the geographies to which it applies.
- Please only give details of the legislation that you have engaged on in the reporting year.
Proposed legislative solution (column 4)
- This column gives an opportunity to provide more details on the actions you are advocating.
- If you support the legislation with no exceptions, you can state this.
- However, if you support it with exceptions, you should provide details of the exceptions and what you would propose in their place.
- If you oppose the legislation, please provide details of an alternative legislative approach that you feel would more effectively reduce carbon emissions in the corporate sector.
Note for oil & gas sector companies:
- You should discuss, as relevant, key policy engagement issues for your sector e.g. carbon pricing policies, in particular carbon tax and cap and trade, mandatory carbon reporting and regulation of methane emissions.
Example response
Focus of legislation | Corporate position | Details of engagement | Proposed legislative solution |
---|
Mandatory carbon reporting | Support | We engaged with the UK government around the BEIS
consultation on Business Energy Efficiency, including options for improved
energy and climate reporting requirements for companies. | We support the continuation of the UK’s requirement
for listed companies to report global GHG emissions in mainstream reports. |
Carbon Tax | Support | Engaged with Australian Federal Government to
communicate the commercial benefits and risks of a Carbon Tax at various
levels, including the business certainty it provided. | We supported the carbon pricing in Australia as it
provided stronger regulatory stability than the current environment. |
(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership?
Question dependencies
This question only appears if you select “Trade associations” in response to C12.3.
Change from 2020
No change
Rationale
Trade associations are a crucial tool through which companies can shape policy and interact with legislators and industry peers. These trade associations can potentially play a significant role in the development and adoption of climate policy. As such, investors and data users expect companies to be transparent about their relationships and responsibilities with these groups.
Response options
Select one of the following options:
Requested content
General
- Note that this question is not asking about all the trade associations that you are a member of, only those that you have a more significant influence over due to Board membership or through providing funding beyond membership fees.
(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation.
Question dependencies
This question only appears if you select “Yes” in response to C12.3b.
Change from 2020
No change
Rationale
Trade associations are a crucial tool through which companies can shape policy and interact with legislators and industry peers. These trade associations can potentially play a significant role in the development and adoption of climate policy. As such, investors and data users expect companies to be transparent about their relationships and responsibilities with these groups, especially those likely to take a position on legislation related to climate change.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Trade association
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Is your position on climate change consistent with theirs?
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Please explain the trade association’s position
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How have you influenced, or are you attempting to influence their position?
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Text field [maximum 1,000 characters]
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Select from:
- Consistent
- Inconsistent
- Mixed
- Unknown
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Text field [maximum 2,400 characters]
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Text field [maximum 2,400 characters]
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[Add Row]
Requested content
Trade association (column 1)
- Enter the name of the trade association(s) that you are on the Board of or provide funding beyond membership, using no more than 1000 characters.
Is your position on climate change consistent with theirs? (column 2)
- Indicate, by selecting from drop-down options, how well your position on climate change aligns with the trade association listed in column 1.
Please explain the trade association’s position (column 3)
- Give details of the trade association’s position on climate change (and explain how this position differs from your own if it does).
- Where appropriate, give examples of activities the trade association has undertaken in the reporting year to influence climate change policy.
How have you, or are you attempting to, influence the position? (column 4)
- Describe how you have worked, or are in the process of working with the trade association to promote the current or an alternative position.
Additional information
Climate change position of trade associations
- To aid companies in sorting through the climate-related action of trade associations and determining where the groups in which they belong actually stand on climate change, the Center for Science and Democracy at the Union of Concerned Scientists has conducted an analysis focused on the positions that trade and business associations have taken in the public discourse on climate science and policy in recent years.
- The analysis looks at many of the largest and most influential trade and business associations in the United States and globally. Areas explored include how these groups understand the science of climate change, the positions they have on climate policy, and what actions they have taken with respect to specific climate-related policy proposals in recent years.
(C12.3d) Do you publicly disclose a list of all research organizations that you fund?
Question dependencies
This question only appears if you select “Funding research organizations” in response to C12.3.
Change from 2020
No change
Rationale
Research organizations can provide important insights into technology, trade, and other industry-relevant topics. Outputs from these organizations can be used to shape corporate strategy, products, and positions. Investors and data users want to understand the full spectrum of engagement activities that companies undertake, and thus are interested in the relationships companies have with research organizations.
Response options
Select one of the following options:
Requested content
General
- This question refers to all research organizations that you fund and not just those related to climate change.
(C12.3e) Provide details of the other engagement activities that you undertake.
Question dependencies
This question only appears if you select “Other” in response to C12.3.
Change from 2020
No change
Rationale
Research organizations can provide important insights into technology, trade, and other industry-relevant topics. Outputs from these organizations can be used to shape corporate strategy, products, and positions. Investors and data users want to understand the full spectrum of engagement activities that companies undertake, and thus are interested in the relationships companies have with research organizations.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Use the text box provided to detail any other activities that you have engaged in the reporting year that could either directly or indirectly influence policy on climate change.
- For each activity, identify the method of engagement (individual or through a group), the topic of engagement (e.g., a piece of legislation or a tax), the nature of the engagement (i.e. what your activities were), and the actions that you are advocating as part of that engagement.
(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?
Question dependencies
This question only appears if you select “Direct engagement with policy makers”, “Trade associations”, “Funding research organizations” and/or “Other” in response to C12.3.
Change from 2020
No change
Rationale
It is important that companies maintain a consistent approach to issues. Engaging in some activities whose purpose is to discredit climate science, for instance, while also working with other groups to advance solutions and adaptations to climate change sends conflicting messages to investors and data users about that company’s priorities and stance. This question enables companies to disclose the processes they use to make sure that their position on climate change is compatible with the activities in which they partake.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- The intention is to understand how you as an organization manage the multiple engagement activities around climate change across business divisions and geographies to ensure that you have a common approach that is also consistent with your strategy on climate change.
- Use the text box provided to explain the processes that you have in place, or if you do not have any in place, how you plan to address this potential for conflict in the future.
(C12.3g) Why do you not engage with policy makers on climate-related issues?
Question dependencies
This question only appears if you select “No” in response to C12.3.
Change from 2020
No change
Rationale
Not all companies choose to engage with policy makers regarding climate change. Investors and data users are interested in understanding why companies have made this choice, and whether there are any plans to change this stance in the future. Considering the impact that companies can have on policy, it is important for data users to know why those companies have deliberately chosen not to engage with policy makers in any way.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Provide a company-specific explanation as to why you do not pursue activities that have the potential to influence climate change policy and any plans you have to change that in the future.
Communications
(C12.4) Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s).
Change from 2020
No change
Rationale
Best practice in corporate environmental reporting is to integrate non-financial metrics and data into mainstream financial reports. Investors want to understand where and how companies communicate their climate change strategies and emissions figures, and whether these communications are in line with best practice.
Connection to other frameworks
Goal 12: Responsible consumption and production
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Publication
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Status
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Attach the document
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Page/Section reference
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Content elements
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Comment
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Select from:
- In mainstream reports
- In mainstream reports, in line with the CDSB framework (as amended to incorporate the TCFD recommendations)
- In mainstream reports, incorporating the TCFD recommendations
- In other regulatory filings
- In voluntary communications
- In voluntary sustainability report
- No publications with information about our response to climate-related issues and GHG emissions performance
- Other, please specify
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Select from:
- Complete
- Underway – previous year attached
- Underway – this is our first year
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Attach your document here.
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Text field [maximum 500 characters]
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Select all that apply:
- Governance
- Strategy
- Risks & Opportunities
- Emissions figures
- Emission targets
- Other metrics
- Other, please specify
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Text field [maximum 2,400 characters]
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[Add Row]
Requested content
General
- This question asks about communication of your position on climate change and carbon emissions outside of your CDP response.
- Even where the relevant information is web-based, you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfill this requirement.
Publication (column 1)
- Select from the drop-down options the type of publication your organization has published in response to climate change and its GHG emissions performance for the reporting year in places other than its CDP response.
- CDP uses the CDSB Framework definition of mainstream reports, i.e. annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country in which they operate and are normally publicly available. It is acknowledged that, in some jurisdictions, multiple documents may meet this definition. Please attach only those which reference your organization’s response to climate change and GHG emissions performance.
- Other regulatory filings are reports which are required through regional or national legislation, but which do not fall under the definition of mainstream reports stated above.
- Voluntary communications include optional sustainability/CSR reports or any other voluntary consumer facing publications, advertising, company websites, executive speeches and/or presentations.
- If you do not publish any content regarding your organization's response to climate change and GHG emissions performance, please select "No publications with information about our response to climate-related issues and GHG emissions performance".
- If you select “Other, please specify,” provide a label for the publication.
Status (column 2)
- Select from the drop-down options the status of the publication type selected in column 1.
- The report should relate to the reporting year although it is acknowledged that it may not be published in the reporting year.
- Where reports are not ready for publication at the time of submission of your CDP response, select one of the options that indicate the report is underway.
- Where you can attach the previous year’s report to demonstrate that the information is routinely published in this way, select “Underway – previous year attached” and complete the remaining two columns of the table with regard to this report.
- Where this is the first year that you will have published information in this way, select “Underway – this is our first year” and leave the other two columns in the table blank. Where the publication is already available, select “Complete.”
Page/Section reference (column 4)
- Identify the page(s) and section(s) of the report attached that refers to climate change and GHG emissions performance. If the whole document relates to climate change and GHG, please state this. If your document is only 1 page long, please still state this.
Content elements (column 5)
- Select all content elements that apply from the drop-down that relate to the publication type selected in column 1.
Explanation of terms
- Mainstream reports: in line with CDSB, this refers to the annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country in which they are incorporated or, if relevant, operate. Mainstream reports are traditionally publicly available. They provide information to existing and prospective investors about the financial position and financial performance of the organisation. The exact provisions under which companies are required to deliver mainstream financial reports differ internationally, but will generally contain financial statements and other financial reporting, including governance statements and management commentary.
Additional information
The Climate Disclosure Standards Board
About
- The Climate Disclosure Standards Board (CDSB) is a consortium of business and environmental organizations. CDSB is committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital.
- CDSB does this by offering companies a framework for reporting climate change and natural capital information with the same rigor as financial information. In turn this helps them to provide investors with decision-useful environmental information via the mainstream corporate report, enhancing the efficient allocation of capital. Regulators also benefit from compliance-ready materials.
- Recognising that information about natural capital and financial capital is equally essential for an understanding of corporate performance, CDSB’s work builds trust and transparency needed to foster resilient capital markets. Collectively, CDSB aims to contribute to more sustainable economic, social and environmental systems.
- CDSB’s Mission is to create the enabling conditions for material climate change and natural capital information to be integrated into mainstream reporting. In effect, this helps create the landscape for companies to translate their sustainability information into business impacts and long-term value.
- To fulfil its mission and vision, CDSB seeks to standardize environmental information reporting through collaborating, identifying and coalescing around the most widely shared and tested reporting approaches that are emerging around the world.
- CDSB advances its mission by:
- Helping companies interpret and better understand their data: CDSB will drive the corporate uptake in current – and future – initiatives such as the TCFD recommendations by providing technical and educational support to corporates and regulators;
- Creating a technical architecture: CDSB will develop and provide a common language and reporting frameworks and develop technical material supporting contentious issues or market needs, spearheaded by the CDSB Framework;
- Making connections: CDSB will engage with corporate, regulators, investors, standard-setters and non-profits to develop industry-driven reporting tools, practices and regulations, and shape regulatory developments.
- In April 2018 CDSB released an updated version of its Framework, the CDSB Framework for reporting environmental information, natural capital and associated business impacts, which is now aligned with the TCFD recommendations and other major reporting requirements. Further information on the CDSB Framework can be found on its website.
Why does CDP support the CDSB Framework?
- CDP works to transform the way the world does business to prevent dangerous climate change and protect our natural resources, particularly by providing relevant environmental information to investors. Given that an essential way that investors utilize data is through mainstream financial reports, it is integral to CDP’s mission that companies use the CDSB Framework to provide natural capital information to investors through their mainstream financial report.
- Therefore, the CDSB Framework provides an important tool for formalizing and advancing the significant progress CDP has made in developing climate change-related and natural capital reporting by bringing it into mainstream financial reporting.
- CDP acts as secretariat to CDSB, managing its work program on behalf of the Board members.
Integrated reporting
- The primary purpose of an integrated report is to explain to providers of financial capital how an organization creates value over the short, medium and long term. An integrated report aims to communicate a clear, concise, integrated story that explains how all of an organization’s resources are creating value.
- The International <IR> Framework takes a principles-based approach. The intent is to strike an appropriate balance between flexibility and prescription that recognizes the wide variation in individual circumstances of different organizations while enabling a sufficient degree of comparability across organizations to meet relevant information needs. It does not prescribe specific key performance indicators, measurement methods, or the disclosure of individual matters, but it does include a small number of requirements that are to be applied before an integrated report can be said to be in accordance with the Framework.
The Task Force on Climate-related Financial Disclosures (TCFD)
About
- Launched in December 2015, the Financial Stability Board’s (FSB) industry-led Task Force on Climate-related Financial Disclosure (TCFD) aims to develop voluntary and consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.
The TCFD strives to:
- Promote more informed investment, credit (or lending), and insurance underwriting decisions;
- Enable stakeholders to better understand the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks;
- Foster an early assessment of these risks, and facilitate market discipline;
- Thus providing a source of data that can be analyzed at a systemic level to facilitate authorities’ assessments of the materiality of any risks posed by climate change.
TCFD’s mission
- The TCFD was tasked with developing a set of voluntary, financially relevant, climate disclosure recommendations that could promote informed investment, credit, and insurance underwriting decisions that could in turn enable stakeholders to better understand assets exposed to climate-related risks.
- Its aim is to enable stakeholders to allocate capital efficiently through the transition to a low-carbon economy without a potential dislocation of capital in the financial markets.
- The TCFD’s final report presents a principle-based set of recommendations for voluntary disclosure that aims to balance the needs of data users with the challenges faced by preparers. The report provides the overarching core recommendations with supporting information on climate-related risks, opportunities, financial impacts, and scenario analysis.
- Further information on TCFD can be found in CDP's technical note on the TCFD's recommendations.
C13 Module Dependencies
Module C13 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
C14 Module Dependencies
Module C14 only applies to organizations with activities in the Financial Services sector.
C15 Signoff
Pathway diagram - questions
This diagram shows the general questions contained in module C15. To access question-level guidance, use the menu on the left to navigate to the question.
Further information
(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optional and is not scored.
Change from 2020
No change
Response options
This is an open text question with a limit of 9,999 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Signoff
(C15.1) Provide details for the person that has signed off (approved) your CDP climate change response.
Change from 2020
No change
Rationale
CDP asks companies to identify the job title and corresponding job category of the person signing off (approving) the CDP response. This information signals to investors where in the corporate structure direct responsibility is being taken for the response and the information contained therein.
Response options
Please complete the following table:
Job title
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Corresponding job category
|
Text field [maximum 200 characters]
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Select from:
- Board chair
- Board/Executive board
- Director on board
- Chief Executive Officer (CEO)
- Chief Financial Officer (CFO)
- Chief Operating Officer (COO)
- Chief Procurement Officer (CPO)
- Chief Risk Officer (CRO)
- Chief Sustainability Officer (CSO)
- Other C-Suite Officer
- President
- Business unit manager
- Energy manager
- Environmental, health and safety manager
- Environment/Sustainability manager
- Facilities manager
- Process operation manager
- Procurement manager
- Public affairs manager
- Risk manager
- Other, please specify
|
Requested content
General
Job title (column 1)
- Enter the title of the person who has signed off on this CDP response.
- If you select “Other, please specify”, provide a label for the corresponding job category.
- Note that this question asks about the position and not about the name of the individual holding this position. Do not include names or any other personal data in your response.
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".
Glossary - Climate Change
- Acquisition: Obtaining ownership and control by one firm, in whole or in part, of another firm or business entity.
- Adaptation: Adjustment to climate change current or expected effects so the consequences to the business and environment are alleviated and beneficial opportunities are realized.
- Attribute: Descriptive or performance characteristics of a particular generation resource. For Scope 2 GHG accounting, the GHG emission rate attribute of the energy generation is required to be included in a contractual instrument in order to make a claim.
- Best available technique (BAT): Best available technique (BAT) refers to the available techniques which are the best for preventing or minimizing emissions and impacts on the environment. BAT include both the technology used, and the way your installation is designed, built, maintained, operated and decommissioned.
- Biogas: A mixture of methane (CH4) and carbon dioxide (CO2) used as fuel and produced by bacterial degradation of organic matter or through gasification of biomass. Included in this category are landfill gas and sludge gas (sewage gas and gas from animal slurries) and other biogas.
- Biogenic carbon: This refers to carbon which is contained in biomass (both above-ground and below-ground), dead organic matter, soil organic matter, and harvested products.
- Biomass: any organic matter, i.e. biological material, available on a renewable basis. Includes feedstock derived from animals or plants, such as wood and agricultural crops, and organic waste from municipal and industrial sources. Biomass fuels should be sustainably sourced and certified where possible, and include:
- Solid biofuels - solid fuels derived from biomass. Includes feedstock derived from animals or plants, such as wood and agricultural crops, and organic waste from municipal and industrial sources.
- Biogas - a mixture of methane (CH4) and carbon dioxide (CO2) used as fuel and produced by bacterial degradation of organic matter or through gasification of biomass.
- Liquid biofuels – liquid fuels derived from biomass such as ethanol and biodiesel.
- Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board".
- C-suite: A term used to collectively refer to the most senior executive team.
- Capital allocation: Refers to distributing and investing a company's financial resources in ways that will increase its efficiency and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.
- Capital expenditure: A measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
- Carbon capture and storage (CCS): As defined by the IEA, a family of technologies and techniques that enable the capture of carbon dioxide (CO2) from fuel combustion or industrial processes, the transport of CO2 via ships or pipelines, and its storage underground, in depleted oil and gas fields and deep saline formations.
- Carbon capture, utilization and storage (CCUS): A family of technologies and techniques in which carbon dioxide (CO2) is captured and utilized/used. Examples of direct utilization include CO2 use in the food and drink industry and for enhanced oil recovery. CO2 can also be converted into chemicals or fuels. If CO2 is stored but not utilized, then the process should be classified as CCS.
- Climate-related risk: In line with the TCFD, this refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.
- Climate-related opportunity: In line with the TCFD, this refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.
- Combustion: Combustion refers to combustion within the company’s boundary giving rise to emissions of CO2, N2O, and CH4. Sources may include boilers, heaters, furnaces, incinerators, internal combustion engines, and turbines. Scope 1 GHG emissions exclude emissions of CO2 arising from the combustion and fermentation of biomass and biofuels; these emissions are reported as a separate category.
- Company: Throughout this questionnaire, “your company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization is known as the “consolidation approach”. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms.
- Consumption: Consumption includes the use of goods, waste disposal and end of life treatment of products sold by the reporting organization.
- Contractual instrument (or 'instrument'): Any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims. Markets differ as to what contractual instruments are commonly available or used by companies to purchase energy or claim specific attributes about it, but they can include energy attribute certificates (e.g. RECs, GOs), direct contracts (PPAs), green tariffs and other instruments.
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Divestment: A process for selling assets for financial, environmental, political or social goals.
- Electricity: In line with GHG Protocol, this term is used as shorthand for electricity, steam, and heating/cooling. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.
- Energy attribute certificates: A category of contractual instruments used in the energy sector to convey information about energy generation to other entities involved in the sale, distribution, consumption, or regulation of electricity.
- Feedstocks: Feedstocks are raw materials, ranging from fossil fuels to biomass-based resources. These materials are fed into a process, and converted into other commodities or resources, which are either used directly or further transformed . For example, in the steel industry, coking coal is converted to coke, which is used in the steel production. In the petrochemical industry, gaseous feedstocks (ethane, propane, or butane) are used to produce high value chemicals.
- Financial planning: In line with the TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
- Fugitives: Fugitives comprises all intentional or unintentional releases of carbon dioxide (CO2) methane (CH4) and other greenhouse gases. The primary sources of these emissions may include fugitive equipment leaks, evaporation losses, venting, flaring and accidental releases. Further examples of leak sources include valves, fittings, flanges, compressor seals, other compressor related leaks, heaters, dehydrators, and pipelines. Accidental fugitive emissions can be individually found and fixed in order to make the emissions near zero. Emissions from non-point sources, such as wastewater treatment and surface impoundments, should be accounted for under fugitive emissions.
- gCO2/kWh: Grams of carbon dioxide (gCO2) per kilowatt hour (kWh)of electricity consumed.
- gCO2e/kWh: Grams of carbon dioxide equivalents (CO2e) emitted per kilowatt hour (kWh) of electricity consumed. CO2-equivalents allow for other Greenhouse Gases (GHGs) to be expressed in relation to CO2 based on their Global Warming Potentials (GWPs).
- GHG inventory: A quantified list of an organization’s greenhouse gas emissions and sources.
- Global warming potential (GWP): The Intergovernmental Panel on Climate Change (IPPC)’s Fifth Assessment Report (AR5) defines the Global Warming Potential (GWP) as “an index, based on radiative properties of greenhouse gases, measuring the radiative forcing following a pulse emission of a unit mass of a given greenhouse gas in the present day atmosphere integrated over a chosen time horizon, relative to that of carbon dioxide. The GWP represents the combined effect of the differing times these gases remain in the atmosphere and their relative effectiveness in causing radiative forcing. The Kyoto Protocol is based on GWPs from pulse emissions over a 100-year time frame.” By using GWPs, GHG emissions from multiple gases can be standardized to a carbon dioxide equivalent (CO2e).
- Greenhouse gases: In line with Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) and amendment issued by the Greenhouse Gas Protocol on May 2013 the basket of greenhouse gases (GHGs) consists of:
- Carbon dioxide (CO2);
- Methane (CH4);
- Nitrous oxide (N2O);
- Hydrofluorocarbon family of gases (HFCs);
- Perfluorocarbon family of gases (PFCs);
- Sulfur hexafluoride (SF6), and;
- Nitrogen trifluoride (NF3).
Nitrogen trifluoride (NF3) is now considered a potent contributor to climate change and is therefore mandated to be included in national inventories under the UNFCCC. NF3 should also be included in GHG inventories under the GHG Protocol Corporate Standard, and the GHG Protocol Corporate Value Chain (Scope 3) Standard.
- Heating Value: Lower heating value (LHV) and Higher heating value (HHV), also known as net calorific value (NCV) and gross calorific value (GCV) respectively, are different measures of heat energy released from fuel combustion. Figures measured in HHV are larger because HHV includes the latent heat of water vaporization from combustion, whereas LHV does not. The difference between LHV and HHV is related to the fuel’s hydrogen content.
- Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Intensity metrics : Intensity metrics describe an organization’s CO2e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth. Intensity is calculated by dividing the CO2e emissions figure (the numerator) by an alternative business metric (the denominator), such as the number of full-time equivalent employees, the revenue or tons of aggregate produced.
- Land use: Land use is based on the functional dimension of land for different human purposes or economic activities. Typical categories for land use are dwellings, industrial use, transport, recreational use or nature protection areas. Additional land use metrics can relate to the climate-related arrangements, activities, and inputs regarding these categories that organizations engage in, and can include land use change and land use management metrics.
- Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Low-carbon product or service: Despite the increasing focus on low-carbon investments, there is no precise and generally accepted definition of low-carbon products/services. It can be loosely defined as a product or service that leads to an absolute reduction in GHG emissions or to reduced carbon intensity of an activity. To define whether the product or service is low-carbon, CDP encourages the use of existing industry taxonomies and frameworks such as the Climate Bonds Taxonomy, the Global Investor Coalition on Climate Change’s Low Carbon Investment Registry, and the EU Taxonomy for Environmentally Sustainable Economic Activities.
- Low-carbon transition plan: A plan on how to transition the company to a business model compatible with a net-zero carbon economy. The Oxford Martin Net Zero Carbon Investment Initiative proposes a set of principles to facilitate engagement between investors and companies on long-term climate strategies. According to these principles, companies should: (1) Commit to a timeframe to reach net-zero emissions in line with the Paris goals; (2) Demonstrate that they will be able to continue to be profitable once they reach net-zero emissions; and (3) Set quantitative mid-term targets to be able to demonstrate progress against their long-term goals. The transition plan defines how the business model, its associated products and production methods, growth strategy and capital investments need to develop over time to respond to climate-related risks and to capitalize on opportunities. A transition plan is therefore a plan that outlines how a company will transition from where it is now to where it needs to get to in order to thrive in a net-zero carbon world in the future.
- Mainstream reports: In line with CDSB, this refers to the annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country in which they are incorporated or, if relevant, operate. Mainstream reports are traditionally publicly available. They provide information to existing and prospective investors about the financial position and financial performance of the organisation. The exact provisions under which companies are required to deliver mainstream financial reports differ internationally, but will generally contain financial statements and other financial reporting, including governance statements and management commentary.
- Metric tons of CO2 (tCO2): a metric ton of carbon dioxide (CO2) has a mass of 1000 kg, equivalent to 2204.62 lbs. The “long ton”, a term generally used in Britain, is equivalent to 2,240lbs and the “short ton” is generally used in the USA and is equivalent to 2,000 lbs.
- Metric tons of CO2-equivalent (tCO2e): a metric that allows for other Greenhouse Gases (GHGs) to be expressed in relation to CO2 based on their Global Warming Potentials (GWPs). A metric ton is 1000 kg, equivalent to 2204.62 lbs.
- Mitigation: or "climate change mitigation" refers to efforts to reduce or prevent emission of greenhouse gases.
- Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”. CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Process emissions: emissions from industrial production processes which chemically or physically transform materials (e.g. CO2 from the calcinations step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.)
- Purchased or acquired electricity, steam, heat, and/or cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational/sector boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from an industrial process, should still be accounted for if it is consumed.
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol: “Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
- Reporting boundary: This determines which organizational entities, such as groups, businesses and companies, are included in or excluded from your disclosure. These may be included according to your financial control, operational control, equity share or another measure. Please consistently apply this organizational boundary when responding to questions unless you are specifically asked for data about another category of activities.
- Research and development (R&D): Refers to the activities companies undertake to innovate and introduce new products and services. It is often the first stage in the development process. Investment in R&D is a type of operating expense associated with the research and development of a company's goods or services
- Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
- Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).
- Scenario analysis: A scenario describes a potential path of development that will lead to a particular outcome or goal. Scenario analysis is the process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.
- Qualitative scenarios: A high level, narrative approach to scenario analysis, suitable for organizations familiarizing themselves with the process. Qualitative scenario analysis explores relationships and trends for which little or no numerical data is available.
- Quantitative scenarios: A more detailed method for conducting scenario analysis, with greater rigor and sophistication in the use of data sets and quantitative models which may warrant further analysis. Quantitative scenario analysis can be used to assess measurable trends and relationships using models and other analytical techniques.
- 2°C or lower scenario: A core element of the TCFD’s Strategy recommendation c) “Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario”. 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 the 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.
- Sequestration of CO2: The fixation of atmospheric carbon dioxide in a carbon sink through biological or physical processes.
- Strategy: In line with TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.
- Substantive impact: An impact that has a considerable or relatively significant effect on an organization at the corporate level. This could include operational, financial or strategic effects that undermine the entire business or part of the business.
Terms for responding to Investors (2021 Climate Change)
These terms apply if you are submitting a response to the CDP Climate Change Questionnaire 2021 to Investors. If you are also submitting a response to Supply Chain Members the Terms for responding to Supply Chain Members (2021 Climate Change), below, will also apply.
1.DEFINITIONS
Billing Company: means the organization determined in accordance with the table at the end of these terms.
CDP: means CDP Worldwide, a charitable company registered with the Charity Commission of England and Wales (registered charity no. 1122330 and a company number 05013650). References to “we”, “our” and “us” in these terms are references to CDP and the Billing Company.
Deadline: means 28 July 2021.
Fee: means the fee set out in the table at the end of these terms, which is exclusive of any applicable taxes.
Full Version: means the version of the Questionnaire which contains all questions that are applicable to you.
Minimum Version: means the version of the Questionnaire which contains a subset of the questions included in the Full Version.
Personal Data: means data which relates to an individual who can be identified from the data, such as a person’s name and job title.
Questionnaire: means the Full Version and the Minimum Version of the CDP Climate Change Questionnaire 2021.
Responding Company: means the company responding to the Questionnaire. References to “you” and “your” in these terms are references to the Responding Company.
2.PARTIES
The parties to these terms shall be CDP, the Billing Company (where the Billing Company is not CDP) and the Responding Company.
3.THESE TERMS
These are the terms that apply when you submit a response to our Questionnaire to Investors. If you do not agree to these terms, please contact us at [email protected] to discuss them with us.
4.RESPONDING TO OUR QUESTIONNAIRE
General. When responding to our Questionnaire, you will be given a choice as to whether your response can be made public or whether your response is non-public. We strongly encourage you to make your response public.
Deadline for responding. You must submit your response to us using our online response system by the Deadline for your response to be eligible for scoring. If you submit your response after the Deadline but on or before 30 September 2021 (the date our online response system will close in 2021) it will not be scored and may not be included in any report, data product or other analysis.
Public responses. If you agree that your response can be made public, we may use and make it available as soon as it is received by CDP for all purposes that we decide (whether for a fee or otherwise), including, for example, making your response available on our website, to our investor signatories and other third parties and scoring your response.
Non-public responses. If your response is non-public, we may use it only as follows:
(a) make it available as soon as it is received by CDP to our investor signatories from time to time (as listed on our website) either directly or through Bloomberg terminals, for any use within their organizations but not for publication unless any data from your response has been anonymized or aggregated in such manner that it has the effect of being anonymized;
(b) make it available as soon as it is received by CDP to our group companies, companies we license to operate using the CDP name and brand (for example, CDP North America, Inc and CDP Europe AISBL), our country partners, research partners, report writers and scoring partners (each from time to time):
(i) to score your response; and
(ii) for any other use within their organizations but not for publication unless any data from your response has been anonymized or aggregated in such manner that it has the effect of being anonymized;
(c) as soon as your response is received by CDP, list your company on our website or otherwise make it known that your company has responded to our Questionnaire.
Amending your response. You may reopen a response you have submitted before the Deadline (28 July 2021). To do so you must notify us that you wish to reopen your response by 14 July 2021 and you must resubmit it by the Deadline for it to be eligible for scoring. If you choose not to submit your reopened response before the ORS closes for submissions (on 30 September 2021), your original submission will be stored within the disclosure system but no further processing will be undertaken, meaning that we will not use it and it will no longer be made available to our investor signatories or other third parties.
From 15 July 2021, amendments to submitted responses can only be made by our staff and at our discretion and we may charge a fee for making them. Most such amendments to your response will be made from 4 October 2021 at the earliest. Please note that the final date for requesting an amendment is 30 November 2021 and any changes you request to your submitted response from 15 July 2021 may not be reflected in any score, report, data product or other analysis or use of your response. Please email [email protected] for more information about amending your response.
Scoring of responses to the Full Version (of the Questionnaire). If you submit your response to the Full Version in English using our online response system:
(a) by the Deadline, your response will be scored;
(b) after the Deadline but on or before 11 August 2021 you can request an ‘On-Demand’ score for a fee. Only a limited number of On-Demand scores are available in 2021 so your request may not be granted. Please contact your local CDP office for more information about On-Demand scoring.
Please contact your local CDP office for information about scoring if you intend to submit your response in a language other than English.
Scoring of responses to the Minimum Version (of the Questionnaire). Responses to the Minimum Version will only be scored in certain circumstances. Please contact your local CDP office for further information.
Publication and use of scores. If you are responding to a CDP Climate Change Questionnaire for the first time you may choose for your score to be “private” but in all other cases CDP may publish your score, and use and make it available for all purposes that we decide (whether for a fee or otherwise), regardless of whether your response is public or non-public. If you choose for your score to be “private”, unless you achieve an A grade in which case we may make your score public, we may only make it available to our group companies, companies we license to operate using the CDP name and brand, our country partners, research partners, report writers and scoring partners (each from time to time), in each case for any use within their organizations but not for publication. Note that if you also submit your response to Supply Chain Members it will also be available to any Supply Chain Member that has asked you to respond to the Questionnaire. For further details please see the Terms for responding to Supply Chain Members (2021 Climate Change).
5.FEE
Fee. We are a not-for-profit organization and charge certain companies an annual administrative fee to enable us to maintain the disclosure system. Unless you are exempt from paying the Fee, as set out below, if you are listed, incorporated or headquartered in a country/region that is listed in the next paragraph, you are required to pay the Fee plus any applicable taxes. The Fee is payable once regardless of how many responses (climate change, forests and water security) you submit in 2021. Please note that we may charge an additional fee if you want to amend your response after the Deadline or if you submit your response after the Deadline and you would like it to be scored.
Countries/regions where the Fee applies. A Responding Company will be required to pay the Fee if it is listed, incorporated or headquartered in any one of the following countries/regions:
Algeria, Antigua and Barbuda, Argentina, Aruba, Australia, Austria, Bahamas, Bahrain, Barbados, Belarus, Belgium, Belize, Bermuda, Bolivia, Brazil, British Virgin Islands, Canada, Cayman Islands, Channel Islands, Chile, Colombia, Costa Rica, Cote d’Ivoire, Cuba, Democratic Republic of Congo, Denmark, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Finland, France, Gabon, Georgia, Germany, Grenada, Guatemala, Guernsey, Guyana, Haiti, Honduras, Hong Kong, Iceland, India, Indonesia, Iran (Islamic Republic of), Ireland, Israel, Italy, Japan, Jamaica, Kazakhstan, Kenya, Kuwait, Luxembourg, Malaysia, Mexico, Mongolia, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Portugal, Qatar, Russian Federation, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Suriname, Sweden, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Turkey, Tuvalu, United Arab Emirates, the UK, the USA, Uruguay, Venezuela, Vietnam or Yemen.
Exemptions from the Fee. A Responding Company is exempt from paying the Fee if:
(a) it falls within one of CDP’s investor samples and it has not submitted a response to CDP in the last three years; or
(b) it is responding only to CDP’s supply chain request.
Please note we will decide in our absolute discretion as to whether the Fee is payable or not and we will notify you before you submit your response. A full list of companies in our investor samples is available on our website.
Payment of the Fee. You must pay the Fee by credit or debit card or request an invoice via CDP’s online corporate dashboard, which must be paid within such time as set out in the invoice. Please note that you will not be able to submit your response unless you have paid the Fee, you have requested an invoice or you are exempt from paying the Fee.
6.RIGHTS IN THE RESPONSES
Ownership. All intellectual property rights in your response will be owned by you or your licensors.
License. You grant to us, or shall procure for us, a perpetual, irrevocable, non-exclusive, assignable, sub-licensable, royalty-free and global license to use your response and any copyright and data base rights in your response for the uses set out in these terms.
7.IMPORTANT REPRESENTATIONS
You confirm that:
(a) the person submitting the response to us is authorized by you to submit the response;
(b) you have obtained all necessary consents and permissions to submit the response to us; and
(c) the response that you submit:
(i) does not infringe the rights of any third party (including privacy, publicity or intellectual property rights);
(ii) does not defame any third party; and
(iii) does not include any Personal Data.
8.LIABILITY
We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for death or personal injury caused by our negligence or the negligence of our employees, agents or subcontractors; for fraud or fraudulent misrepresentation.
We are not liable for business losses. Subject to these terms, CDP and the Billing Company have no liability to you in any circumstances for any loss of revenue, loss of profit, loss of business, business interruption, loss of business opportunity, loss of goodwill, loss of reputation, loss of, damage to or corruption of data or software or any indirect or consequential loss or damage.
Exclusion of liability. Subject to these terms, CDP and the Billing Company have no liability to you in any circumstances arising from the content or submission of your response to us, our use of your response or your score and/or the use of your response or your score by any third parties.
Limitation of liability. Subject to these terms, CDP and the Billing Company’s total liability to you in all circumstances shall be limited to an amount equivalent to the Fee or to £785 if you are not required to pay the Fee.
9.GENERAL
We may transfer our rights to someone else. We may transfer our rights and obligations under these terms to another organization.
Nobody else has any rights under these terms. These terms are between you and us. No other person shall have any rights to enforce any of its terms.
Entire agreement. These terms constitute the entire agreement between you and us unless you also choose to share your response with supply chain members, in which case you will also be subject to our Terms for responding to Supply Chain Members (2021 Climate Change).
Variation. CDP (acting on its own behalf and the Billing Company’s behalf, if applicable) reserves the right to change these terms at any time. Such changes shall be effective immediately or such other time as CDP elects. In the event of any materially adverse changes, you may request to withdraw your response within 30 days of us notifying you of the change.
If a court finds part of these terms illegal, the rest will continue in force. Each of the paragraphs of these terms operates separately. If any court or relevant authority decides that any of them are unlawful, the remaining paragraphs will remain in full force and effect.
Governing law and jurisdiction. These terms are governed by English law and you and us both agree to the exclusive jurisdiction of the English courts to resolve any dispute or claim arising out of or in connection with these terms or their subject matter or formation.
Language. If these terms are translated into any language other than English, the English language version will prevail.
10.AMOUNT OF FEE
Location of Responding Company
|
Fee (exclusive of any applicable taxes)
|
Brazil
|
BRL 4,000
|
India
|
INR 67,000
|
Japan
|
JPY 97,500
|
UK
|
GBP 785
|
Europe (excluding UK)
|
EUR 925
|
Rest of the world
|
USD 975
|
11.BILLING COMPANY
Billing Company | Location of Responding Company |
---|
CDP Worldwide
| Algeria, Australia, Bahamas, Bahrain, Belarus, Bermuda, British Virgin Islands, Cayman Islands, Channel Islands, Cote d’Ivoire, Democratic Republic of Congo, Egypt, Gabon, Hong Kong, Indonesia, Iran (Islamic Republic of), Ireland, Israel, Georgia, Guernsey, Kazakhstan, Kenya, Kuwait, Malaysia, Mongolia, New Zealand, Nigeria, Oman, Pakistan, Philippines, Qatar, Russian Federation, Saudi Arabia, Singapore, South Africa, South Korea, Taiwan, Thailand, Turkey, Tuvalu, United Arab Emirates, United Kingdom, Vietnam, Yemen
|
CDP Worldwide (Europe) gGmbH
| Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland
|
CDP North America, Inc
| Canada, USA
|
Carbon Disclosure Project (Latin America)
| Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay, Venezuela
|
CDP Operations India Private Limited | India
|
一般社団法人
CDP Worldwide-Japan
| Japan
|
If the Responding Company is located in a territory that is not listed in the table above, the Billing Company shall be CDP Worldwide.
Terms for responding to Supply Chain Members (2021 Climate Change)
These terms apply if you are submitting a response to the CDP Climate Change Questionnaire 2021 to Supply Chain Members. If you are also submitting a response to Investors the Terms for responding to Investors (2021 Climate Change), above, will also apply.
1.DEFINITIONS
CDP: means CDP Worldwide, a charitable company registered with the Charity Commission of England and Wales (registered charity no. 1122330 and a company number 05013650). References to “we”, “our” and “us” in these terms are references to CDP.
Deadline: means 28 July 2021.
Full Version: means the version of the Questionnaire which contains all questions that are applicable to you.
Minimum Version: means the version of the Questionnaire which contains a subset of the questions included in the Full Version.
Personal Data: means data which relates to an individual who can be identified from the data, such as a person’s name and job title.
Questionnaire: means the Full Version and the Minimum Version of the CDP Climate Change Questionnaire 2021.
Responding Company: means the company responding to the Questionnaire. References to “you” and “your” in these terms are references to the Responding Company.
Supply Chain Member: means an organization that is requesting data from its suppliers.
2.PARTIES
The parties to these terms shall be CDP and the Responding Company.
3.THESE TERMS
These are the terms that apply when you submit a response to our Questionnaire to Supply Chain Members. If you do not agree to these terms, please contact us at [email protected] to discuss them with us.
4.RESPONDING TO OUR QUESTIONNAIRE
General. When responding to our Questionnaire, you will be given a choice as to whether your response can be made public or whether your response is non-public. We strongly encourage you to make your response public, but in either case, we will not divulge the relationship between you and any Supply Chain Member that has asked you to respond other than to our group companies, companies we license to operate using the CDP name and brand (for example, CDP North America, Inc and CDP Europe AISBL), our country partners, research partners, report writers and scoring partners (each from time to time), all of which are obliged to keep such relationship confidential.
Deadline for responding. You must submit your response to us using our online response system by the Deadline for your response to be eligible for scoring. If you submit your response after the Deadline but on or before 30 September 2021 (the date our online response system will close in 2021) it will not be scored and may not be included in any report, data product or other analysis.
Public responses. If you agree that your response can be made public, we may use and make it available as soon as it is received by CDP for all purposes that we decide (whether for a fee or otherwise), including, for example, making your response available on our website, to our investor signatories and other third parties and scoring your response. Note that information you submit within the Supply Chain module (2021 Climate Change) will be treated as non-public (see below for details).
Non-public responses. If your response is non-public, we may use it only as follows:
(a) make it available as soon as it is received by CDP to any Supply Chain Member that has asked you to respond to the Questionnaire for any use within their organization but not for publication unless any data from your response has been anonymized or aggregated in such manner that it has the effect of being anonymized;
(b) make it available as soon as it is received by CDP to our group companies, companies we license to use the CDP name and brand, our country partners, research partners, report writers and scoring partners (each from time to time):
(i) to score your response; and
(ii) for any other use within their organizations but not for publication unless any data from your response has been anonymized or aggregated in such manner that it has the effect of being anonymized;
Supply Chain module (2021 Climate Change). Information you submit in response to the Supply Chain module (2021 Climate Change) (questions SC0, SC1, SC2 and SC4 of the Questionnaire) will be treated as non-public even if you choose to make your response public. Questions SC1.1, SC2.1, SC2.2a and SC4.2e ask you to select a Supply Chain Member using a drop-down menu in our online response system, and only the Supply Chain Member you select for each row will have access to the information in it. For all other questions in the Supply Chain module (2021 Climate Change) the information you submit will be accessible to any Supply Chain Member that has asked you to respond to the Questionnaire. All information you submit in the Supply Chain module (2021 Climate Change) will be accessible to CDP and to our group companies, companies we license to operate using the CDP name and brand, our country partners, research partners, report writers and scoring partners (each from time to time), all of which are obliged to keep such information confidential.
Amending your response. You may reopen a response you have submitted before the Deadline (28 July 2021). To do so you must notify us that you wish to reopen your response by 14 July 2021 and you must resubmit it by the Deadline for it to be eligible for scoring. If you choose not to submit your reopened response before the ORS closes for submissions (on 30 September 2021), your original submission will be stored within the disclosure system but no further processing will be undertaken, meaning that we will not use it and it will no longer be made available to our investor signatories or other third parties.
From 15 July 2021, amendments to submitted responses can only be made by our staff and at our discretion and we may charge a fee for making them. Most such amendments to your response will be made from 4 October 2021 at the earliest. Please note that the final date for requesting an amendment is 30 November 2021 and any changes you request to your submitted response from 15 July 2021 may not be reflected in any score, report, data product or other analysis or use of your response. Please email [email protected] for more information about amending your response.
Scoring of responses to the Full Version (of the Questionnaire). If you submit your response to the Full Version in English using our online response system:
(a) by the Deadline, your response will be scored;
(b) after the Deadline but on or before 11 August 2021 you can request an ‘On-Demand’ score for a fee. Only a limited number of On-Demand scores are available in 2021 so your request may not be granted. Please contact your local CDP office for more information about On-Demand scoring.
Please contact your local CDP office for information about scoring if you intend to submit your response in a language other than English.
Scoring of responses to the Minimum Version (of the Questionnaire). Responses to the Minimum Version will only be scored in certain circumstances. Please contact your local CDP office for further information.
Publication of scores. Unless you achieve an A grade, in which case we may make your score public, we may only make your score available to any Supply Chain Member that has asked you to respond to the Questionnaire, our group companies, companies we license to operate using the CDP name and brand, our country partners, research partners, report writers and scoring partners (each from time to time), in each case for any use within their organizations but not for publication.
5.RIGHTS IN THE RESPONSES
Ownership. All intellectual property rights in your response will be owned by you or your licensors.
License. You grant to us, or shall procure for us, a perpetual, irrevocable, non-exclusive, assignable, sub-licensable, royalty-free and global license to use your response and any copyright and data base rights in your response for the uses set out in these terms.
6.IMPORTANT REPRESENTATIONS
You confirm that:
(a) the person submitting the response to us is authorized by you to submit the response;
(b) you have obtained all necessary consents and permissions to submit the response to us; and
(c) the response that you submit:
(i) does not infringe the rights of any third party (including privacy, publicity or intellectual property rights);
(ii) does not defame any third party; and
(iii) does not include any Personal Data.
7.LIABILITY
We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for death or personal injury caused by our negligence or the negligence of our employees, agents or subcontractors; for fraud or fraudulent misrepresentation.
We are not liable for business losses. Subject to these terms, CDP has no liability to you in any circumstances for any loss of revenue, loss of profit, loss of business, business interruption, loss of business opportunity, loss of goodwill, loss of reputation, loss of, damage to or corruption of data or software or any indirect or consequential loss or damage.
Exclusion of liability. Subject to these terms, CDP has no liability to you in any circumstances arising from the content or submission of your response to us, our use of your response or your score and/or the use of your response or your score by any third parties.
Limitation of liability. Subject to these terms, CDP’s total liability to you in all circumstances shall be limited to £785.
8.GENERAL
We may transfer our rights to someone else. We may transfer our rights and obligations under these terms to another organization.
Nobody else has any rights under these terms. These terms are between you and us. No other person shall have any rights to enforce any of its terms.
Entire agreement. These terms constitute the entire agreement between you and us, unless you also choose to share your response with investors in which case you will also be subject to our Terms for responding to Investors (2021 Climate Change).
Variation. CDP reserves the right to change these terms at any time. Such changes shall be effective immediately or such other time as CDP elects. In the event of any materially adverse changes, you may request to withdraw your response within 30 days of us notifying you of the change.
If a court finds part of these terms illegal, the rest will continue in force. Each of the paragraphs of these terms operates separately. If any court or relevant authority decides that any of them are unlawful, the remaining paragraphs will remain in full force and effect.
Governing law and jurisdiction. These terms are governed by English law and you and us both agree to the exclusive jurisdiction of the English courts to resolve any dispute or claim arising out of or in connection with these terms or their subject matter or formation.
Language. If these terms are translated into any language other than English, the English language version will prevail.
About CDP
CDP is an international non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests.
Voted number one climate research provider by investors and working with institutional investors with assets of US$110 trillion, we leverage investor and buyer power to motivate companies to disclose and manage their environmental impacts.
Please visit www.cdp.net or follow us @CDP to find out more.
What is the legal status of CDP?
CDP Worldwide (CDP) is a UK Registered Charity no. 1122330 and a company limited by guarantee registered in England and Wales no. 05013650. The charity has subsidiaries in China, Brazil, Japan and India over which it exercises control through ownership or board representation. In the US, CDP North America, Inc. is an independently incorporated affiliate which has United States IRS 501(c)(3) charitable status, and in Germany CDP Europe Services is also an independently incorporated affiliate with charitable status.
© 2021 CDP Worldwide
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