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CDP Climate Change Questionnaire Preview and Reporting Guidance 2022 - Version Control
Version number
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Release / Revision date
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Revision summary
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1.0
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Released: January 10, 2022
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Publication of the 2022 questionnaire preview and reporting guidance.
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1.1
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Revised: January 28, 2022
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- C-FS0.7 table restructured to facilitate data collection. The data requested is unchanged.
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1.2
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Revised: February 18, 2022
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- C3.2a: amendment to the requested content, clarifying that organizations should consider using a 1.5°C transition scenario, and a physical scenario of 2.7°C or more.
- C4.3b, C8.2c, C-EU8.2d, C8.2e, C8.2h, C8.2i, C8.2j and C-EU9.5a: amendment to the requested content, whereby disclosers providing data on sustainable biomass are asked to provide a justification for why they consider the biomass to be sustainable.
- C7.3b: amendment to the requested content, clarifying how to report emissions for non-stationary sources.
- C12.1a, C12.1b and C-FS12.1b: update to the requested content for column “Impact of engagement, including measures of success”. Disclosers are asked to provide the threshold at which they consider their impact to be successful.
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1.3
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Revised: March 4, 2022
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- C8.2c, C-CE8.2c, C-EU8.2d, C8.2e, C8.2i and C-EU9.5a: response options updated. “Unsustainable biomass” has been revised to “Other biomass” and minor edits have been made to the guidance for those questions.
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1.4
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Revised: April 13, 2022
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- C6.5: requested content and additional information updated. Companies in high-impact sectors should determine the relevance of scope 3 categories with reference to CDP’s Technical Note on the relevance of Scope 3 categories by sector.
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1.5
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Revised: July 6, 2022
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- C8.2e and C8.2h: amendment to the Chinese version of requested content, adding a note about a translation error in the ORS in column “Tracking instrument used”.
- C8.2j: amendment to the Chinese version of requested content, adding a note about a translation error in the ORS in column “Type of energy attribute certificate”.
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1.6
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Revised: July 19, 2022
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- C5.2: note for Financial Services companies that row “Scope 3 category 15: Investments” does not apply and so should be left blank.
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Note that you have selected to view the Climate Change - Full version.
You have selected to view sector-specific content for the following sectors:
You have also selected to view the additional questions requested by CDP Supply Chain members. In the Online Response System, these questions will only be presented to organizations requested to disclose by a customer (i.e. a CDP supply chain member).
CDP disclosure cycle 2022
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 2022
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- Preview of 2022 questionnaires and reporting guidance released on CDP website (English versions).
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March 2022 |
- Preview of 2022 questionnaires and reporting guidance released on CDP website (translated versions).
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April 2022 |
- Online Response System (ORS) opens.
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July 2022 |
- 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.
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
Improving corporate awareness through measurement and disclosure is essential to the effective management of climate change risk. CDP’s climate change questionnaire collects climate-related data from the world’s largest companies on behalf of over 590 institutional investor signatories with a combined US$110 trillion in assets and 200+ major purchasers with over US$5.5 trillion in procurement spend. Since its launch in 2002, the questionnaire has helped thousands of companies to measure their impacts, set ambitious targets and demonstrate progress for key stakeholders.
The questionnaire has been evolving over time in line with the latest climate science and global policy development. 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 and pursue efforts to limit warming to under 1.5°C, governments have committed to a transition to a net-zero 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.
Regulators have begun to respond to the climate 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 1.5°C pathway and then setting out how climate-related issues impact their strategy and financial planning. This amplifies the longstanding call from CDP’s investor signatories for companies to disclose comprehensive, comparable environmental data in their mainstream reports, driving climate-related risk management further into the boardroom. CDP’s climate change questionnaire has been aligned with the TCFD recommendations since 2018 and prompts companies to disclose data on how climate-related issues are addressed in their governance, strategy, risk management, and metrics and targets.
In its first two decades, CDP’s climate change questionnaire focused on raising ambition around climate and providing data to improve governance and decision-making. But time is fast running out to prevent catastrophic climate change, and an irreversible loss of nature and habitats. There is now an urgent need to ensure that stated intentions are accompanied by concrete plans, with transition metrics, and evidence of progress against agreed goals. Accountability is needed to raise the bar to align with halving emissions, shifting towards nature positivity by 2030 and achieving net-zero emissions and full nature recovery by 2050. In line with CDP’s 2021-2025 strategy, the climate change questionnaire and scoring will be evolving to further encourage and support companies to set targets and create tangible transition plans, as well as to measure their performance against them.
Carbon emissions are only one part of the challenge. The climate and nature crises need to be addressed simultaneously, including by conserving, protecting, and restoring ecosystems, adopting more sustainable agriculture and forestry practices, and ensuring a circular economy. In line with the 2021-2025 strategy, CDP begins broadening the environmental issues covered in its questionnaires, starting with the inclusion of questions on companies’ approach to maintaining and addressing biodiversity. As a first step in 2022, broad questions around governance, commitments, monitoring and reporting on biodiversity issues are included in a new module in the climate change questionnaire. These questions are material to all sectors and geographies and responses will inform future biodiversity metrics, ensuring the relevance and usefulness of biodiversity corporate reporting to both financial institutions and policy makers. The new biodiversity questions were developed in alignment with the IUCN’s Corporate Reporting on Biodiversity Guidelines.
Climate change questionnaire structure
There are 15 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
- Biodiversity
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.
All question numbers in the general climate change questionnaire begin with the letter C. Introduced in 2022, question numbers in the new forests and water module for financial services organizations only, begin with the letters FW. 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.
2022 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 2022
In 2022, CDP has revised questions and introduced new questions on
topics which reflect the strategic priorities for CDP and its
stakeholders. However, 70% of the 2021 questions remain
unchanged. A detailed document on climate change question changes from 2021 to 2022 can be found on the
Guidance page of the website.
Key changes include:
Core and supply chain questions
- Ten removed questions for all companies, plus two questions removed from the supply chain module.
- New module on biodiversity for all companies: C15 Biodiversity.
- New question in module C1 Governance on board-level competence on climate-related issues.
- Questions modified in module C3 Business strategy on climate transition plans and scenario analysis, and new questions on transition-aligned spending/revenue.
- Questions modified in module C4 Targets and Performance on targets and low-carbon products.
- Module C5 on Emissions methodology updated, with new questions on changes in the reporting year, base year recalculations, and base year Scope 3 emissions.
- Simplification of fuel disclosure questions in module C8 Energy and new question on energy consumption breakdown by country.
- New questions in module C12 Engagement on climate-related requirements for suppliers, and a strengthened public policy engagement section.
- Twenty-six modified questions, including two modified supply chain questions.
RE100 companies
- Six new questions for members of the RE100 initiative in module C8 Energy on renewable energy and low carbon heat, steam, and cooling.
Financial services sector
- One general question C1.2a (2021), and five sector-specific questions removed for the financial services sector.
- Forty-one new questions for financial services organizations, including a new module requesting information on forests- and water security-related issues.
- Twenty-six modified questions for financial services sector organizations across the questionnaire.
Other sector-specific changes
- Three removed questions on scope 3 emissions by relevant business activity area, for the Agriculture commodities; Food, beverage and tobacco; and Paper and forestry sectors.
- Seven modified sector-specific questions for Cement, Chemicals, Electric utilities and Steel sectors.
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.
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: notes for each relevant question in the climate change questionnaire, connections to the Sustainable Development Goals (SDGs), RobecoSAM Corporate Sustainability Assessment (DJSI), the Task Force on Climate-related Financial Disclosures (TCFD), RE100, and for financial services institutions only, the Net Zero Asset Managers (NZAM) initiative and CEO Water Mandate;
- Requested content: offers context around each question and requested criteria;
- Explanation of terms: provides detailed definitions for specific terminology;
- Example responses: for select questions, this provides an example of a response that would include all information requested; and
- Additional information: for select questions, this provides optional contextual information and sources related to the subject of the disclosure request.
- Glossary: viewable at the end of the reporting guidance, the glossary contains a subset of 'Explanation of terms'.
- Appendix: Agricultural/Forestry management practices.
If you have any questions that are not answered in the reporting guidance, the additional guidance noted below, or our Frequently Asked Questions, please contact your local CDP contact.
Webinars and workshops
CDP hosts live webinars and workshops designed to aid you with environmental reporting.
Please visit the workshops and webinars and climate change pages of CDP's website for more details.
CDP Reporter Services
CDP Reporter Services program offers tailored support, enhanced data access and thought leadership on managing and reporting environmental risk to your business. Access the tools you need to move from disclosure to leadership on integrating climate, forests management, and water security into your wider business strategy. For year-round, personalized disclosure support from a dedicated CDP account manager, a gap analysis of your previous response, final review before submission and analytics tools to benchmark yourself against peers and understand best practice contact [email protected]. Visit the Reporter Services page of CDP's website for more information.
CDP's Accredited Solutions Providers
CDP partners with leading environmental service providers that can support companies throughout all stages of the measurement, reporting and management of their climate and sustainability data and impacts. All CDP solutions providers have met specific accreditation criteria. See provider areas of expertise below, and visit the accredited solutions provider directory to search for the provider best able to support you:
- Carbon reduction solutions providers offer technology and services that can help your organization reduce carbon emissions and improve energy efficiency.
- Climate change consultancy solutions providers have a wide range of technical expertise to support companies with establishing and implementing climate change and sustainability strategies.
- Science-based target (SBT) solutions providers have expertise in helping companies to set and implement targets in line with what the latest climate science says is necessary.
- Education & training solutions providers improve employee awareness and understanding of how climate change affects their organization through carbon management training programs.
- Renewable energy solutions providers provide expertise in procuring, tracking, and generating renewable power.
- Software solutions providers simplify the collection, monitoring, and reporting of sustainability, CSR, and environmental data through integrated sustainability software applications.
- Verification solutions providers help organizations disclose accurate data and improve internal processes by providing third-party verification and assurance of emissions data, a practice recommended by CDP.
As well as visiting our accredited solutions provider webpage, you can also contact [email protected] to find out more.
Important notes for completing your disclosure
Acronyms
Avoid using bespoke internal acronyms unless required for your organization’s response, in which case please provide their meaning to enable correct analysis and scoring.
Blank responses
Leaving a response blank is interpreted as non-disclosure. For numeric fields, values of zero (0) imply a measurement has been made, and the value is zero (0). For numeric fields where no measurement has been made, please leave the field blank and provide an explanation in an open text field for that same question (e.g. 'Comment' (optional) or 'Please explain' (scored)). If there is no open text field for the question, you may provide an explanation in the Further information field in the ORS at the end of your disclosure. Leaving a response blank and entering a value of zero (0) have different scoring implications. Please see the scoring methodology for more details.
Character limits
The character limits noted in the reporting guidance and in the ORS include spaces.
'Comment' columns
Some questions include a column labelled as 'Comment'. Note that providing information in these columns is optional.
Company-specific information
Some questions request company-specific information, rationales, case studies and/or examples. This level of detail gives data users confidence that the issue at hand has been thoroughly considered in the context of the responding organization's own business and not simply assessed in general terms.
- Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations unique to your company’s business or operations. A company-specific explanation should include details that make the answer true for the responding company and are distinct from other companies in the same industry and/or geography.
- Clear rationales are those which provide logical reasoning for methodologies, descriptions, decision, and actions.
- Case studies are defined as a detailed description of the implementation of a process, strategy or decision to a specific situation and/or task. When formulating case studies, responders may find it helpful to consider a “Situation-Task-Action-Result” (STAR) approach :1) Situation: what was the context or background? 2) Task: what needed to be done or what was the problem to be solved? 3) Action: what was the course of action taken? 4) Result: what was the final outcome of the course of action?
- An example does not need to follow the STAR approach. It can be shorter than a case study but should include some company-specific detail.
For more details, refer to the Scoring Introduction on the CDP website.
Consistency
CDP encourages a comprehensive and consistent response. Please ensure there is no conflicting information in your responses, both within a question and across the questionnaire.
Copy forward
The 'copy forward' functionality will be available in the ORS for companies that disclosed to CDP in previous reporting years. This functionality auto-populates your most recent answers into your questionnaire where applicable.
Note that this functionality may have been disabled for modified data points. The reporting guidance will indicate which questions have been modified. The Questionnaire Changes document on the guidance section of the CDP website lists all revisions from the previous year.
Please review the auto-populated answers carefully. It is your responsibility to ensure your answers are updated for the accuracy and completeness of your response.
Data accuracy
CDP recognizes that there may be uncertainty linked to data – this can arise from data gaps, assumptions, metering/measurement constraints including equipment accuracy etc. CDP allows estimated data to be submitted. However, an emphasis is placed on reporting transparently and this means that a company should always provide an explanation when its reported data is not accurate and detail the uncertainty (use the 'Please explain' or 'Comment' columns provided in the question).
Drop-down options ('Other, please specify')
Please select from the options provided whenever possible, and only select 'Other, please specify' when none of the listed options is appropriate. This greatly assists data analysis. If selecting 'Other, please specify', you must add a label that describes the option you are providing data for.
'Further information' field
At the end of the questionnaire, there is an opportunity to provide additional information or context that you feel is relevant to your organization’s response. This field is optional and not scored.
Mergers and acquisitions (M&As)
All disclosure should be defined by the organizational boundary applicable at the time of the stated reporting period. (Note that for CDP disclosure, organizations are encouraged to align their reporting period and organizational boundaries with their financial reporting).
Regarding forward-looking disclosure, organizations should include information that was correct at the time of the stated reporting period (for example, for data points referring to the future or "the next two years"). Organizations undergoing (or that have undergone) M&As need to consider the timing of the M&As and reporting period as follows:
- Organizations that were acquired after the end of the current reporting period: these should respond with what was planned (strategy, targets, etc.) before being acquired (i.e., during the reporting period). For transparency, where possible they may state where they consider that the forward-looking information may be subject to change due to the very recent acquisition.
- Organizations that were acquired during the reporting period: these should provide information that was applicable and correct to the best of their knowledge at the end of the reporting period. At the time of submitting their response to CDP, this information may not be the most up to date due to changes underway following the acquisition. For transparency, the company may state this in their disclosure where possible.
Personal data
It is important that you do not include the name of any individual or any other personal data in your response. For questions that ask for the positions of staff, out of respect for personal data privacy we are asking only for the position and not for the individual’s name or any other information relating to them.
Providing feedback to CDP
You can provide feedback to CDP on the content of our questionnaires and supporting documents through our online 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.
Sector introduction: Financial Services (FS)
Activities in the financial services sector include banking, investing (asset management and/or asset ownership) and insurance underwriting. The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) highlight the important role of the financial sector as preparers of environmental disclosures. Disclosure by this sector will enable investors, central banks, regulators/supervisors and other relevant stakeholders to better understand the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to environmental risks through activities such as lending, financial intermediary, investment and/or insurance underwriting. Organizations in the FS sector should respond to the CDP questionnaire in the context of these financing activities, in addition to operational activities where appropriate. Organizations in the financial sector receive sector-specific climate change questions and modifications to existing climate change questions, as well as specific guidance included to clarify the type of information banks, insurance companies and asset managers should consider in their response.
In addition, organizations in the financial sector receive an additional module at the end of the questionnaire to collect information on the topics of forests and water security.
CDP’s financial services questions focus on the following topics:
- Portfolio exposure to environmental risks and opportunities;
- Environmental issues in the organization’s policy framework;
- Engagement with clients and investee companies;
- Portfolio emissions, in line with the Partnership for Carbon Accounting Financials Global GHG Accounting and Reporting Standard for the Financial Industry, and additional portfolio impact metrics;
- Portfolio alignment to 1.5-degree world; and,
- Shareholder voting on environmental issues.
C0 Introduction
Module Overview
This module requests information about your organization’s disclosure to CDP and will help data users to interpret your responses in the context of your business operations, timeframe and reporting boundary.
The information provided here should apply consistently to your responses throughout the questionnaire and be complete and accurate as it may determine response options presented in subsequent modules.
For this reason, you should respond to every question in this module before accessing the rest of the questionnaire.
Key changes
- New question: C0.8 – asks for your organization's unique market identifier(s).
- Modified questions:
- C0.3 – question text revised to ask for the countries in which you operate rather than the countries for which you are supplying data.
- [Financial services only] C-FS0.7 requests more granular detail on insurance types and industry sectors your organization lends to, invests in, and/or insures.
For the oil and gas sector only:
- Modified guidance:
- C-OG0.7 – the definition of midstream activities has been revised to include the transportation, storage, and distribution of crude oil and natural gas.
Click here for a list of all changes made this year.
Sector-specific content
Additional questions on organizational activities for the following high-impact sectors:
- Agricultural commodities
- Capital goods
- Cement
- Chemicals
- Coal
- Construction
- Electric utilities
- Financial services
- Food, beverage and tobacco
- Metals & mining
- Oil & gas
- Paper & forestry
- Real estate
- Steel
- Transport original equipment manufacturers (OEMs)
- Transport services
Pathway diagram - questions
This diagram shows the general questions contained in module C0. To access question-level guidance, use the menu on the left to navigate to the question.
Introduction
(C0.1) Give a general description and introduction to your organization.
Change from last year
Modified guidance
Rationale
This will help data users interpret your responses.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Provide information about your operations to help data users understand your greenhouse gas (GHG) emissions inventory and corporate climate change strategy. Include information on your business divisions and your emissions-generating activities (e.g. extraction and/or processing/refining of natural resources, electricity generation, transportation, manufacturing etc.).
-
This information helps data users understand your company’s emissions profile and differences in emissions figures between peer companies.
- You may also provide any other information which is relevant to your disclosure.
Explanation of terms
- Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
(C0.2) State the start and end date of the year for which you are reporting data.
Change from last year
No change
Rationale
This will help data users interpret your responses.
Connection to other frameworks
RE100
Response options
Please complete the following table.
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 emissions data for the three years prior to the current reporting year in the emissions accounting questions (C6.1 and C6.3) for Scopes 1 and 2, and in C6.5a for Scope 3.
- To report emissions data for years prior to the current reporting year, select "Yes" in column 3 ("Indicate if you are providing emissions data for past reporting years"). Then select how many years of emissions data you will be providing.
- This will enable you to enter the corresponding number of past years of data when you reach questions C6.1, C6.3, and C6.5a.
Note for restating data:
- You may also choose to restate your emissions data previously supplied to CDP, for example to ensure that your historical data reflects your current organizational boundary.
- Reporting recalculated figures for these years is optional. However, if you wish to do this it can provide transparency to stakeholders using your data.
- If you choose to restate data previously supplied to CDP, report the dates of those reporting periods here by selecting "Yes" in column 3 ("Indicate if you are providing emissions data for past reporting years"). Then select how many years of emissions data you will be providing.
- This will enable you to enter the corresponding number of past years of data when you reach questions C6.1, C6.3, and C6.5a.
- For more information on restatements see CDP's technical note on restatements here.
(C0.3) Select the countries/areas in which you operate.
Change from last year
Modified question
Rationale
This will help data users interpret your responses.
Connection to other frameworks
RE100
Response options
Please complete the following table:
Country/area
|
Select all that apply:
[Country/area drop-down list]
|
Requested content
General
- Select all countries/areas in which you operate from the drop-down menu provided.
(C0.4) Select the currency used for all financial information disclosed throughout your response.
Change from last year
No change
Rationale
CDP encourages companies to report financial figures associated with their impacts, risks, and opportunities. Establishing a single currency will facilitate the collection of comparable financial information. This will benefit investors and other data users when assessing the costs and benefits reported by your organization.
Response options
Please complete the following table:
Currency
|
Select from:
[Currency drop-down list]
|
Requested content
General
- Select the currency to be applied to all financial information reported in this disclosure.
- For example, if you select USD($), provide metric tons CO2e per USD($) as the financial intensity metric in question C6.10.
(C0.5) Select the option that describes the reporting
boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.
Change from last year
No change
Rationale
This will help data users interpret your responses.
Connection to other frameworks
RE100
Response options
Select one of the following options:
- Financial control
- Operational control
- Equity share
- Other, please specify
Requested content
General
- Use a consolidated approach when determining reporting boundaries. CDP recommends that you consult your legal or accounting advisors when doing so.
- The “consolidated approach” identifies which entities are included within the reporting boundary. Unless stated otherwise, the information you provide in response to the CDP climate change questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses, etc., within your reporting boundary.
- To support the use, tracking, and comparability of reported GHG information, respondents are encouraged to adopt the consolidation approaches based on the GHG Protocol Corporate Standard, outlined in more detail in Chapter 3 of the Standard.
- If you have previously disclosed emissions data to CDP and your consolidation approach has changed in the current reporting year, select your new approach here and provide details of the change in C5.1b.
Further clarification of options
- The options in the drop-down for this question are based on the GHG Protocol Corporate Standard, and are described in more detail below (text adapted from the GHG Protocol Corporate Standard:
- Financial control: An organization has financial control over an operation if it has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities. Generally, an organization has financial control over an operation for GHG accounting purposes if the operation is treated as a group company or subsidiary for the purposes of financial consolidation.
- Companies using the CDSB framework should select this option.
- Operational control: An organization has operational control over an operation if it or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation.
- Most SMEs select this option.
- Equity share: Under the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation. The equity share reflects the economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share will normally be the same as the ownership percentage. Where this is not the case, the economic substance of the relationship the company has with the operation always overrides the legal ownership form to ensure the equity share reflects the percentage of economic interest. The principle of economic substance taking precedence over legal form is consistent with international financial reporting standards.
- In the case of leasing arrangements, please see the GHG Appendix: Categorizing GHG Emissions from Leased Assets and the International Accounting Standard (IAS) 17 on Leases, published by the International Financial Reporting Standards (IFRS) to determine the appropriate scope for those emissions.
Explanation of terms
- Company: Throughout this questionnaire, “your company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary. This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms. This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- GHG inventory: a quantified list of an organization’s greenhouse gas emissions and sources.
- Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Reporting boundary: This determines which organizational entities, such as groups, businesses and companies, are included in or excluded from your disclosure. These may be included according to your financial control, operational control, equity share or another measure. Please consistently apply this organizational boundary when responding to questions unless you are specifically asked for data about another category of activities.
Organizational activities: Financial services
(C-FS0.7) Which activities does your organization undertake, and which industry sectors does your organization lend to, invest in, and/or insure?
Question dependencies
Your response to this question determines which questions will be shown throughout this questionnaire and which response options will be listed within these questions. If no selection is made in column 4, the FW-FS module will not appear.
Change from last year
Modified question
Rationale
CDP aims to deliver a more focused questionnaire for organizations in the financial services sector. This question determines what type of financial institution your organization is and accordingly what financial industry activities your organization performs and/or engages in that are relevant for this disclosure. This will provide context on your financing and/or activities to investors and other data users as well as help your organization set reporting boundaries. The industry sectors listed in this question have a potentially critical impact on forests and/or water according to CDP’s impact assessments, and your selections drive whether the new Forests and Water Security module (FW-FS) will appear.
Connection to other frameworks
TCFD Financial Sector
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Activity
|
Does your organization undertake this activity?
|
Insurance types underwritten*
|
Industry sectors your organization lends to, invests in, and/or insures*
|
Banking (Bank)
|
Select from:
|
Select all that apply:
- General (non-life)
- Life and/or Health
|
See drop-down options below
|
Investing (Asset manager)
|
|
|
|
Investing (Asset owner)
|
|
|
|
Insurance underwriting (Insurance company)
|
|
|
|
Industry sectors your organization lends to, invests in, and/or insures (column 4)
Select all that apply:
- Exposed to all broad market sectors
- Agricultural chemicals
- Agricultural products wholesale
- Animal processing
- Animal products wholesale
- Apparel design & manufacturing
- Aquaculture
- Basic plastics
- Biofuel supply
- Biofuels
- Cattle farming
- Coal extraction & processing
- Cocoa bean farming
- Cotton farming
- Dairy & egg products
- Electronic components manufacturing
- Fabric metal components manufacturing
- Fast food
- Finished wood products
- Fruit farming
- Grain & corn farming
- Grain & corn milling
- Hypermarkets & superstores
- Inorganic base chemicals
- Logging
- Metal smelting, refining & forming
- Metallic mineral mining
- Natural gas extraction
- Nitrogenous fertilizers
- Non-nitrogenous fertilizers
- Oil & gas extraction initial
- Oil & gas refining
- Oilseed processing
- Other animal farming & processing
- Other base chemicals
- Other crop farming
- Other oilseed farming
- Palm oil farming
- Palm oil processing
- Paper products
- Personal care & household products
- Pharmaceuticals
- Poultry & hog farming
- Print publishing
- Rice farming
- Rubber farming
- Semiconductors manufacturing
- Soybean farming
- Soybean processing
- Specialty chemicals
- Sugarcane farming
- Supermarkets, food & drugstores
- Textiles
- Vegetable farming
- Wood & paper materials
- Wood & paper products wholesale
- None of the above
Requested content
General
- If you are an insurance company that invests assets on your own behalf, select “Yes” in column 2 for rows “Insurance underwriting” and “Investing (Asset owner)”, as both insurance underwriting and investment activities are applicable to your business.
- If you are a bank that does both lending and asset management, select “Yes” in column 2 for rows “Banking (Bank)” and “Investing (Asset manager)”, as both are applicable to your business.
- If you are a financial conglomerate that undertakes multiple activities listed, please select “Yes” in column 2 for all activities that apply.
Does your organization undertake this activity? (column 2)
- For each activity, select “Yes” if the activity occurs inside your organizational boundary.
- At a minimum, select “Yes” to each activity for which more than 20% of your organization’s revenue in the reporting year is associated.
Insurance types underwritten (column 3)
- This column only appears if you select “Yes” in column 2 for the row “Insurance underwriting (Insurance company)”
- Indicate which types of insurance you provide:
- General (non-life): typically defined as any insurance that is not determined to be life insurance. It is also referred to as “Property and casualty” insurance in some regions.
- Life and/or health: life insurance is a type of insurance that pays out upon the death of an insured person, and health (or medical) insurance is a type of insurance that covers the cost of medical care.
- CDP recognizes that some questions are not relevant to insurers that provide only life and/or health insurance, and so your selection here determines which response options related to due diligence, exclusion policies and portfolio impact will appear. Therefore, if you are an insurer providing only life and/or health insurance, select only the “Life and/or health” option.
- Please note that this is relevant to your insurance underwriting activities only. You are still required to respond to all questions relevant to your investing activities.
Industry sectors your organization lends to, invests in, and/or insures (column 4)
- This column only appears if you select “Yes” in column 2 of any activity. Please note that this column will not appear for the row “Insurance underwriting (insurance company)” if “Life and/or health” is the only selection in column 3.
- Select all industry sectors your organization supports through your financing, investing and/or insurance activities.
- If you lend to, invest in and/or provide insurance to all industry sectors, you can select “Exposed to all broad market sectors” and you do not need to select any other options in the list.
- At a minimum, select all industry sectors which either represent at least 0.5% of your portfolio based on either total or outstanding commitments, premiums or committed capital or represent at least $50M of lending or investments.
- If you do not lend to, invest in, or insure any of the industries listed here, select “None of the above”
- Your industry sector selections here determine whether you are requested to disclose on forests and/or water security issues in module FW-FS Forests and Water Security.
Explanation of terms
- Banking (Bank): Financial institutions that mostly undertake lending, deposit taking and other financial intermediary activities. Relevant questions focus on banks’ lending and other activities, which for banks are the entire collection of products, securities and loans held on the balance sheet for which they own the receivable stream.
- Investing (Asset Management): Also known as investment managers, asset managers are hired by clients to invest assets on their behalf. Relevant questions focus on asset managers’ investing activities.
- Investing (Asset Ownership): Include public- and private-sector pension plans, (re)insurance companies, endowments, and foundations that invest assets on their own behalf or on behalf of their beneficiaries. Relevant questions focus on asset owners’ investing activities.
- Insurance underwriting (Insurance company): Financial institutions that provide and sell insurance underwriting products and services to their policyholders. Relevant questions focus on insurers’ insurance policy underwriting activities/portfolios. Please note that where references are made to “insurance” in the questionnaire, these are also applicable to reinsurance unless otherwise specified.
(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?
Change from last year
New question
Rationale
ISIN codes and other market identifiers are used globally in the identification of securities such as bonds, futures, and stocks. Providing your organization’s unique identifier(s) will increase the transparency of your response.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Indicate whether you are able to provide a unique identifier for your organization | Provide your unique identifier* |
---|
Select from:- Yes, an ISIN code
- Yes, a CUSIP number
- Yes, a Ticker symbol
- Yes, a SEDOL code
- Yes, another unique identifier, please specify
- No
| Text field [maximum 50 characters] |
[Add row]
Requested content
General
- If your organization has multiple unique identifiers, add a row for each.
Provide your unique identifier (column 2)
- This column is only presented if one of the “Yes” options is selected in column 1.
- Ensure that you enter the correct format for your unique identifier. For example, ISIN codes include a two-letter country code, followed by a nine-character alphanumeric identifier and a single check digit.
Explanation of terms
- ISIN: International Securities Identification Number, a 12-character alphanumeric code used to identify a security, such as a stock or bond. It is structured with the first two letters referencing the country of origin of the issuer for the security, in accordance with ISO 3166. The second grouping consists of nine characters made up of digits and letters, which is the unique identifying code for the security. In the U.S. and Canada this is known as the CUSIP number (see below). The final digit is the check digit, which ensures the authenticity of the code.
- CUSIP number: Committee on Uniform Security Identification Procedures number, a 9-character alphanumeric code that identifies a security for the purposes of facilitating clearing and settlement of trades. CUSIPs are used to distinguish, among other reasons, between multiple share classes or bond tranches. CUSIPs are mostly used in the United States and Canada.
- Ticker symbol: A ticker symbol, also known as a stock symbol, is a unique series of letters assigned to a security for trading purposes. Ticker symbols are usually related to the organization’s name, and additional letters denote additional characteristics such as share class or trading restrictions.
- SEDOL code: Stock Exchange Daily Official List code, a 7-character identification code consisting of two parts: a 6-character alphanumeric code and a trailing check digit. SEDOLs issued prior to January 26, 2004 were composed only of numbers. SEDOLs serve as the National Securities Identifying Number for all securities issued in the United Kingdom.
C1 Governance
Module Overview
Board-level oversight of climate-related issues is considered best practice and provides an indication of the importance of climate-related issues to the organization.
This module is intended to capture the governance structure of your company with regard to climate change, and provides data users with an understanding of the organization's approach to climate-related issues at the board level and management level.
Key changes
- New question: C1.1d requests information on board-level competence on climate-related issues.
- General question removed for Financial services only: C1.2a (2021) – on management responsibility.
- Modified question: [Financial services only] C-FS1.4 requests more granular detail how retirement scheme funds incorporate ESG criteria or reasons why ESG criteria are not incorporated.
Click here for a list of all changes made this year.
Sector-specific content
Additional questions on retirement schemes for the following high-impact sectors:
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 last year
No change
Rationale
This question provides an indication of the importance of climate-related issues to your business. Investors and other data users are interested in an organization's understanding and approach to climate-related risks at the board level; how aligned this is with business strategy, policies, and performance objectives; and how the board monitors progress against targets and goals.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
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 last year
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.
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 last year
Minor change for FS only
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.
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 banking activities
- Climate-related risks and opportunities to our investment activities
- Climate-related risks and opportunities to our insurance underwriting activities
- The impact of our own operations on the climate
- The impact of our banking activities on the climate
- The impact of our investing activities on the climate
- The impact of our insurance underwriting activities on the climate
|
Text field [maximum 3,000 characters]
|
[Add Row]
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.
(C1.1c) Why is there no board-level oversight of climate-related issues and what are your plans to change this in the future?
Question dependencies
This question only appears if you select “No” in response to C1.1.
Change from last year
No change
Rationale
As board-level oversight of climate-related issues is considered best practice, this question allows organizations to explain why there is no board-level oversight.
Response options
Please complete the following table:
Primary reason
|
Board-level oversight of climate-related issues will be introduced within the next two years.
|
Please explain
|
Text field [maximum 1,000 characters]
|
Select from:
- Yes, we plan to do so within the next two years
- No, we do not currently plan to do so
|
Text field [maximum 2,400 characters]
|
Requested content
Primary reason (column 1)
- Provide your organization's main rationale for not currently having board-level oversight of climate-related issues.
Please explain (column 3)
- Explain what you plan to implement in the next two years, or why you do not currently plan to do so.
(C1.1d) Does your organization have at least one board member with competence on climate-related issues?
Change from last year
New question
Rationale
Transitioning a business for success in a sustainable future requires related expertise within its decision-making bodies. This capability at board level signals a company’s commitment to understanding and responding to risks, opportunities, and impacts.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Board member(s) have competence on climate-related issues
|
Criteria used to assess competence of board member(s) on climate-related issues*
|
Primary reason for no board-level competence on climate-related issues*
|
Explain why your organization does not have at least one board member with competence on climate-related issues and any plans to address board-level competence in the future*
|
Select from: - Yes
- No, but we plan to address this within the next two years
- No, and we do not plan to address this within the next two years
- Not assessed
|
Text field [maximum 2,500 characters]
|
Select from:- Important but not an immediate priority
- Judged to be unimportant, explanation provided
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
General
- Consider whether any kind of skills, experience or expertise assessment of your board is conducted for environmental issues.
- Note that your response to this question may refer to the position of employees relevant to board-level competence. In this case, do not include the name of any individual or any other personal data in your response.
Criteria used to assess competence on climate-related issues (column 2)
- This column is only presented if “Yes” is selected in column 1.
- Detail the specific criteria used to assess the board’s climate-related competence.
Primary reason for no board-level competence on climate-related issues (column 3)
- This column is only presented if one of the “No” options is selected in column 1.
- Select the primary reason as to why there is no board-level competence on climate-related issues in your organization.
- If none of the reasons are applicable to your organization, select “Other, please specify” to provide the primary reason.
Explain why your organization does not have at least one board member with competence on climate-related issues and any plans to address board-level competence in the future (column 4)
- This column is only presented if one of the “No” options is selected in column 1.
- If you selected “Judged to be unimportant, explanation provided” in column 3, explain the criteria used to decide that board-level competence on climate-related issues is not important for your organization.
- Describe any plans to address board-level competence on climate-related issues, such as any measures you have implemented to enhance the climate-related competence of the board.
Management responsibility
(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Change from last year
Minor change for FS only
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 banking
- Risks and opportunities related to our investing activities
- Risks and opportunities related to our insurance underwriting activities
- Risks and opportunities related to our own operations
|
Select from:
- 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.
Employee incentives
(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?
Change from last year
No change
Rationale
CDP data users aim to understand the degree to which companies encourage their employees to address climate-related issues and impacts of the business, as well as the mechanisms by which companies are incentivizing certain behaviors and performances.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Please complete the following table:
Provide incentives for the management of climate-related issues
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Comment
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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
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Text field (maximum 1,000 characters)
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Requested content
General
- Note that incentives can be positive (i.e. give people something) or negative (prevent access to something).
(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).
Question dependencies
This question only appears if you select “Yes” in response to C1.3.
Change from last year
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.
Retirement schemes
(C-FS1.4) Does your organization offer its employees an employment-based retirement scheme that incorporates ESG criteria, including climate change?
Change from last year
Modified question
Rationale
This question seeks to understand whether the financial institution offers a retirement scheme that considers ESG criteria (specifically climate change and/or climate-related indicators) in their holdings. Consideration of ESG factors in retirement schemes contributes to the financing of a sustainable economy and demonstrate that organizations consider such risks and opportunities in their assessment of plan options. This question allows CDP data users to understand how the organization is contributing to sustainable/ESG investing.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Employment-based retirement scheme that incorporates ESG criteria, including climate change | Describe how funds within the retirement scheme are selected and how your organization ensures that ESG criteria are incorporated* | Provide reasons for not incorporating ESG criteria into your organization’s employment-based retirement scheme and your plans for the future* |
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Select from:
- Yes, as the default investment option for all plans offered
- Yes, as an investment option
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
- No, due to a compulsory national scheme
| Text field [maximum 2,500 characters] | Text field [maximum 2,500 characters] |
Requested content
Employment-based retirement scheme that incorporates ESG criteria, including climate change (column 1)
- Select the option which best describes your use of employment-based retirement schemes that incorporates ESG criteria, including climate change, if any.
- Select “Yes, as the default investment option for all plans offered” if employees are automatically enrolled in a retirement scheme that incorporates ESG criteria.
- Select “Yes, as an investment option” if employees need to actively opt-in in a retirement scheme that incorporates ESG criteria.
Describe how funds within the retirement scheme are selected and how your organization ensures that ESG criteria are incorporated (column 2)
- State whether the funds within the retirement scheme are passively or actively managed (e.g. if they follow an index or an actively managed ESG investment strategy).
- Briefly describe the ESG criteria used to select the funds within the retirement scheme.
Provide reasons for not incorporating ESG criteria into your organization’s employment-based retirement scheme and your plans for the future (column 3)
- This column only appears if you select either “No, but we plan to do in the next two years” or “No, and we do not plan to in the next two years” in column 1.
- Provide a company-specific description as to why you do not incorporate ESG criteria into your organization’s employment-based retirement scheme.
- State if and how you plan to incorporate ESG criteria into your organization’s employment-based retirement scheme in the future.
Explanation of terms
- Employment-based retirement scheme: This covers all types of corporate retirement saving schemes that an organization may offer its employees. Depending on jurisdiction, these may be referred to as pension schemes, superannuation, retirement plans, 401K, etc. These may be either defined benefit or defined contribution types.
- Default investment option: The investment plan that is selected automatically for a member joining the retirement scheme.
- Investment option: The investment plan that is optional for a member joining the retirement scheme; they may choose this option over the default investment option.
- ESG criteria: Environmental, social and governance factors.
C2 Risks and opportunities
Module Overview
Evaluating exposure to climate-related risks and opportunities over a range of time horizons allows for a strategy for the transition to a net-zero carbon economy recognized in the Paris Agreement and UN SDGs. This module focuses on processes for identifying, assessing, and responding to climate-related issues as well as on the climate-related risks and opportunities identified by your organization. This information helps investors to assess the potential impacts to valuations and the adequacy of the company’s risk response.
Many of the challenges you face when reporting on climate-related issues are common to other aspects of corporate reporting, requiring you to provide statements about your prospective condition. Some organizations, particularly accounting firms and their governing bodies, have published guidance about how to prepare statements that contain forward-looking information.
You may wish to consult with your financial, legal, and/or compliance departments for advice on your company’s general approach to the provision of forward-looking statements and information concerning risks.
Note that the questions relate to “inherent” risk and not the “residual” risk that remains after management measures have been taken into account.
Note for financial services sector companies:
The TCFD recommendations highlight the importance of the financial sector considering the impacts of climate-related issues in the context of their financing activities. When evaluating exposure to climate-related risks and opportunities, financial services sector companies should primarily consider the impact on their lending, financial intermediary, investing and/or insurance underwriting activities, in addition to operational activities.
Key changes
- Two removed questions:
- [Financial services only] C-FS2.2d (2021) on portfolio exposure to water-related risks and opportunities.
- [Financial services only] C-FS2.2e (2021) on portfolio exposure to forests-related risks and opportunities.
- New question: [Financial services only] C-FS2.2e requests information your organization considers about clients/investees as part of your due diligence and/or risk assessment process, and how this influences decision making.
- Modified questions:
- [Financial services only] C-FS2.2b requests reasons why portfolio exposure is not addressed if it is not assessed.
- [Financial services only] C-FS2.2c requests more granular detail on how your portfolio's exposure to climate-related risks and opportunities are assessed.
- [Financial services only] C-FS2.2d (2021 C-FS2.2f) requests reasons why you do not consider climate-related information about your clients/investees as part of your due diligence and/or risk assessment process.
- C2.3a – drop-down options for acute and chronic physical risk drivers and potential primary financial impacts have been revised.
- Two questions with additional guidance:
- C2.1b and C2.2a now include example responses.
Click here for a list of all changes made this year.
Sector specific content
Additional questions for financial services sector companies.
Pathway diagram - questions
This diagram shows the general questions contained in module C2. To access question-level guidance, use the menu on the left to navigate to the question.
Management processes
(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?
Change from last year
No change
Rationale
For many companies, climate change poses significant financial challenges and opportunities, now and in the future. CDP asks about a process for identifying, assessing, and responding to climate-related risks and opportunities so that data users may gauge the thoroughness of your company's understanding of its exposure to climate-related issues.
Connection to other frameworks
TCFD
Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.
Risk Management recommended disclosure b) Describe the organization’s processes for managing climate-related risks
Risk Management recommended disclosure c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.
Response options
Select one of the following options:
Requested content
General
- Select "Yes" if you have any process in place for identifying, assessing, and responding to climate-related risks and opportunities, regardless of how thorough it is. You will be able to provide further details in the subsequent questions.
- Only select "No" if you do not have any form of process for identifying, assessing, and responding to climate-related issues.
Explanation of terms
- Climate-related risk, in line with the TCFD, refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.
- Climate-related opportunity, in line with the TCFD, refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.
- Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).
(C2.1a) How does your organization define short-, medium- and long-term time horizons?
Change from last year
No change
Rationale
CDP has added this question to understand the different timescales at which businesses consider climate-related issues in their risk assessment process and in strategy and financial planning. Subsequent questions on risk and opportunity disclosure, strategy and financial planning, relate to different time horizons, hence their definition is requested here.
Connection to other frameworks
TCFD
Strategy recommended disclosure a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.
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 |
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Long-term |
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|
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Requested content
General
- This question is seeking a definition of what your organization considers to be short-, medium-, and long-term horizons in the context of climate-related risks and opportunities.
- If your long-term time horizon is open-ended, you may leave the column “To (years)” blank.
Comment (column 4) (optional)
- You may specify if this time horizon for assessing climate-related risks and opportunities is aligned with other business practices time horizons and provide any other relevant information.
Additional information
Time horizons of climate-related risks
- There is a common perception that all climate-related risks are “long-term”, arising in 10+ years; however, transitional risks such as policies, technology, and markets are emerging earlier than this, and physical risks including the frequency and intensity of storms, floods, and droughts are recognized risks today.
- Evaluating exposure to climate-related risks over a range of time horizons allows for a strategy for the transition to a low-carbon economy as recognized in the Paris Agreement and UN SDGs.
TCFD position on time horizons
- Because the timing of climate-related impacts on organizations will vary, TCFD believes specifying timeframes across sectors could hinder organizations’ consideration of the climate-related risks and opportunities specific to their businesses. TCFD is therefore not defining timeframes and encourages respondents to decide how to define their own timeframes according to the life of their assets, the profile of the climate-related risks they face, and the sectors and geographies in which they operate.
- In assessing climate-related issues, organizations should be sensitive to the timeframes used to conduct their assessments. While many organizations conduct operational and financial planning over a 1-2 year timeframe, and strategic and capital planning over a 2-5 year timeframe, climate-related risks may have implications over a longer period. It is therefore important for organizations to consider the appropriate timeframes when assessing climate-related risks.
(C2.1b) How does your organization define substantive financial or strategic impact on your business?
Change from last year
Additional guidance
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.
Example response
A substantive financial or strategic impact on our business is defined in our risk management process as follows: either the effect on revenue is more than EUR 50 million and the probability of occurrence is above 25%, or the effect on revenue is EUR 10-50 million and the probability of occurrence is above 75%.
(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities.
Question dependencies
This question only appears if you select "Yes" in response to C2.1.
Change from last year
Minor change for FS only.
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
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Risk management process
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Frequency of assessment
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Time horizon(s) covered
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Description of process
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Select all that apply:
- Direct operations
- Upstream
- Downstream [not shown to FS]
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Select from:
- Integrated into multi-disciplinary company-wide risk management process
- A specific climate-related risk management process
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Select from:
- More than once a year
- Annually
- Every two years
- Every three years or more
- Not defined
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Select all that apply:
- Short-term
- Medium-term
- Long-term
- None of the above/Not defined
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Text field [maximum 7,000 characters]
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[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 operations and your supply chain.
- There is a separate question on portfolio risk management.
Explanation of terms
- Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).
Example response
Value chain stage(s) covered | Risk management process | Frequency of assessment | Time horizon(s) covered | Description of process |
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- Direct operations
- Upstream
- Downstream
| Integrated into multi-disciplinary company-wide risk management process | More than once a year | - Short-term
- Medium-term
- Long-term
| Climate-related risk management is integrated into our multi-disciplinary company-wide risk management process. The objective of this procedure is to identify and control risks to ensure the positive business development of the organization and effective risk reporting, in compliance with laws and regulations.
The process used to determine which climate-related risks and opportunities could have a substantive financial or strategic impact applies to all value chain stages and consists of two parts:
Part 1 IDENTIFICATION: Both bottom-up and top-down processes are used to identify climate-related risks and opportunities. - All risks and opportunities (including climate-related) are identified and assessed on a regional level using regional expertise. For example, regulatory changes are monitored by Regulatory Affairs. All risks and opportunities with a considerable impact on net sales or costs and with a considerable likelihood of occurrence are reported to the group-wide Risk Manager. This represents a bottom-up, asset-level process leading to group-wide risk/opportunity identification. - At group level a top-down approach is also applied, whereby a team consisting of internal and external experts assess our business model to identify potential climate-related risks and opportunities.
Part 2 ASSESSMENT: Identified risks and opportunities are assessed for substantive financial or strategic impact (greater than our defined threshold level of €50 million on EBIT). The effect of revenue-related risks and opportunities on EBIT are estimated, and cost-related effects are calculated by multiplying specific effects (e.g., cost increase per MWh or per ton of CO2 or raw material) by volume. In order to be conservative, potential price increases on sales which might balance out cost effects are neglected when the impact on EBIT is calculated. All inherent risks and opportunities above a financial impact of €50 million or higher are to be reported.
Process for responding to climate related R/Os: After climate related R/Os have been identified and assessed, they are prioritized according to impact, likelihood and potential influence on net sales. There are different ways to treat risks: 1. Avoid risks with a high likelihood and high impact by stopping specific activities. 2. Reduce risks with a high likelihood but low impact by mitigation measures. 3. Transfer risks with low likelihood but high impact by insurance, outsourcing, etc. 4. Accept risk with low likelihood and low impact, if the cost to mitigate risk is higher than cost to bear the risk.
Decisions need to be made which way of treatment should be applied. Basically, we mitigate risks if the respective measures lead to a strengthening outcome for our core business, e.g., through energy savings or diversification of sourced materials and suppliers. If mitigation measures are not possible for substantive risks but an insurance is available – e.g., for acute climate risks – we make use of this and transfer respective risks. If both options are not possible to realize we accept and control the risks. Our typical management method in regard to transitional risks is to reduce their impact by reduction of our energy consumption and carbon footprint in a systematic way. Climate-related opportunities typically require investments in plants, R&D or M&A.
CASE STUDIES for the process used to determine which climate related R/Os could have a substantive financial or strategic impact:
PHYSICAL RISK: - Situation: Our supply managers have experienced increased prices for agricultural raw material through bad harvests due to water scarcity. As the likelihood and severity of water scarcities is closely linked to climate change, this risk has been attributed to climate change in the top-down-part of the identification related step described above. - Task: In order to be able to prioritize this risk, its financial and strategic impact has to be assessed. - Action: To do so we follow the assessment process described in the text above including the comparison against the outlined threshold. - Result: The impact of this risk has been estimated to €69 million EBIT per year. This is above the defined threshold, so this risk has a substantive impact.
TRANSITIONAL OPPORTUNITY: - Situation: Our sales force identified an increased demand for sustainably manufactured products. As climate-related issues form a major part of the related sustainability criteria, this opportunity has been attributed to climate change in the top-down part of the identification step described above. - Task: In order to be able to prioritize this opportunity, its financial and strategic impact has to be assessed. - Action: To do so we follow the assessment process described in the text above including the comparison against the outlined threshold. - Result: The impact of this opportunity has been estimated to €52 million EBIT per year, above the defined threshold. Hence this opportunity has a substantive impact.
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(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?
Question dependencies
This question only appears if you select "Yes" in C2.1.
Change from last year
Additional guidance
Rationale
Data users need to know which risk types are considered in climate-related risk assessments. Not all risk types are relevant to each organization. The aim of this question is to ascertain how thoroughly companies examine multiple risk types as an indication of the comprehensiveness of the risk assessment.
Connection to other frameworks
TCFD
Risk Management recommended disclosure a) Describe the organization’s processes for identifying and assessing climate-related risks.
Response options
Please complete the following table:
Risk type
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Relevance & inclusion
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Please explain
|
Current regulation
|
Select from:
- Relevant, always included
- Relevant, sometimes included
- Relevant, not included
- Not relevant, included
- Not relevant, explanation provided
- Not evaluated
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Text field [maximum 2,500 characters]
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Emerging regulation
|
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Technology
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Legal
|
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Market
|
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Reputation
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Acute physical
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Chronic physical
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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.
Example response
Risk type | Relevance & inclusion | Please explain |
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Current regulation | Relevant, always included | As an energy company, we are subject to many regulatory requirements relating to climate change, including the EU Emissions Trading Scheme (ETS), Energy Savings Opportunity Scheme (ESOS) and Energy Company Obligation (ECO). Due to the significance of such regulations to our business, we closely monitor and assess risks associated with any changes through their inclusion in our enterprise risk management (ERM) process. Operating costs of our business are expected to increase by an average of £300 per new regulatory measure introduced by the government. |
Emerging regulation | Relevant, always included | We continually monitor, review, and assess proposed and incoming regulatory change as part of our ERM framework to mitigate and manage potential impacts on our business. Our company invested £500m in our business solutions over 2016-2018 and uncertainty over UK regulations, such as flexible generation incentives for distributed generation, could potentially affect our return on that investment therefore it was vital that regulatory changes relevant to climate change and with the potential to impact this investment were identified at an early stage and the required mitigations implemented. |
Technology | Relevant, always included | Decarbonization is a significant driver of technology development within the energy sector and vice versa, including distributed energy products and services, such as demand response and energy optimization. We are currently launching a hybrid heat pump trial to increase our understanding of consumer behaviors around a technology we believe will play a significant role in the transition. |
Legal | Relevant, always included | Failure to comply with our legal obligations in relation to climate change is a key risk to our business. For example, failure to deliver our obligations under ECO to improve domestic energy efficiency and invest in reducing heating costs for vulnerable customers could lead to enforcement action, including fines to compensate for consumer detriment. |
Market | Relevant, always included | Consumer behavior is changing due to factors such as energy efficiency and climate change, leading to reduced energy usage volumes per customer in some markets. With 70% of our total revenue coming from energy supply, the risk from reduced demand is that our revenue will also reduce by approximately 2 million USD annually. |
Reputation | Relevant, always included | An example of this risk type is damage to our brand, trust and reputation due to failure to manage our impact on society including climate change. For example, due to one of our partner company’s stake in a coal power plant, there was a risk of adverse media attention which could result in us losing customers. |
Acute physical | Relevant, always included | Acute climate risks, such as extreme weather events, pose numerous challenges to our operations and assets, due to the potential for disruption to critical processes and/or infrastructure, as well as the potential for increased customer demand for our services. For example, flooding, snow and ice events impact our employees’ ability to travel to work safely and may drive an increased demand for domestic heating engineer callouts at the same time, placing pressure and safety risks on our workforce. |
Chronic physical | Relevant, sometimes included | Long-term changes to weather patterns present both risks and opportunities for our business. Given the long-term nature of these trends and global scale of impact, such risks are considered through our annual strategic planning processes. While the possibility of milder winters could lead to a reduction in energy demand for heating, warmer summers would likely increase demand for cooling during the day and night, which could lead to significant changes in patterns of demand – both impacts could affect our supply revenue. |
(C-FS2.2b) Do you assess your portfolio's exposure to climate-related risks and opportunities?
Question dependencies
- This question only appears if you select “Yes” in response to C2.1.
- Rows in this question will be presented according to the activities reported in C-FS0.7.
Change from last year
Modified question
Rationale
The TCFD recommendations highlight the importance of the financial sector evaluating its exposure to climate-related risks and opportunities. When evaluating exposure to climate-related risks and opportunities, organizations in the financial sector should primarily consider the impact on their financial portfolios including lending, investment, insurance underwriting and/or other financial intermediary activities.
Connection to other frameworks
TCFD
Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.
Response options
Please complete the following fixed row table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio*
|
We assess the portfolio's exposure
|
Explain why your portfolio's exposure is not assessed and your plans to address this in the future* |
Banking (Bank)
|
Select from:
- Yes
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
|
Text field [maximum 2,500 characters]
|
Investing (Asset manager)
|
|
|
Investing (Asset owner)
|
|
|
Insurance underwriting (Insurance company)
|
|
|
Requested content
Portfolio (column 1)
- The rows presented in this question depend on the activities you selected in question C-FS0.7.
Explain why your portfolio's exposure is not assessed and your plans to address this in the future (column 3)
- This column only appears if any “No…” option is selected in column 2.
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
- Climate-related risk: In line with TCFD, refers to the
potential negative impacts of climate change on an organization. Physical risks
emanating from climate change can be event-driven (acute) such as increased
severity of extreme weather events (e.g., cyclones, droughts, floods, and
fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature
and increased variability in weather patterns (e.g., sea level rise).
Climate-related risks can also be associated with the transition to a
lower-carbon global economy, the most common of which relate to policy and
legal actions, technology changes, market responses, and reputational
considerations.
- Climate-related opportunity: In line with TCFD, refers to the potential
positive impacts on an organization resulting from efforts to mitigate and
adapt to climate change, such as through resource efficiency and cost savings,
the adoption and utilization of low-emission energy sources, the development of
new products and services, and building resilience along the supply chain.
Climate-related opportunities will vary depending on the region, market, and
industry in which an organization operates.
(C-FS2.2c) Describe how you assess your portfolio's exposure to climate-related risks and opportunities.
Question dependencies
This question only appears if you selected “Yes” to any of the activities listed in C-FS2.2b. A row will appear in this table for each portfolio for which you selected “Yes” in column 2 of question C-FS2.2b.
Change from last year
Modified question
Rationale
The TCFD recommendations highlight the importance of the
financial services sector considering the potential impacts of climate-related
risks and opportunities in the context of their financing activities. When
evaluating exposure to climate-related risks and opportunities, organizations
in the financial sector should primarily consider the potential impact on their
financial portfolios including lending, financial intermediary, investment
and/or insurance underwriting activities.
Connection to other frameworks
TCFD
Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio*
|
Type of risk management process
|
Proportion of portfolio covered by risk management process
|
Type of assessment
|
Time horizon(s) covered
|
Tools and methods used
|
Provide the rationale for implementing this process to assess your portfolio's exposure to climate-related risks and opportunities
|
Banking (Bank)
|
Select from:
- Integrated into multi-disciplinary company-wide risk management process
- A specific climate-related risk management process
|
Percentage field [enter a percentage from 0-100]
|
Select from:
- Qualitative only
- Quantitative only
- Qualitative and quantitative
|
Select all that apply:
- Short-term
- Medium-term
- Long-term
- Not defined
|
Select all that apply:
- UNEP FI Portfolio Impact Analysis Tool for Banks
- UNEP FI Corporate Impact Analysis Tool
- 2DII Paris Agreement Capital Transition Assessment (PACTA) tool
- The Transition Pathway Initiative (TPI)
- 2 Degrees of Separation
- Portfolio temperature alignment
- Risk models
- Scenario analysis
- Stress tests
- Internal tools/methods
- External consultants
- Other, please specify
|
Text field [maximum 5,000 characters]
|
Investing (Asset manager)
|
|
|
|
|
|
|
Investing (Asset owner)
|
|
|
|
|
|
|
Insurance underwriting (Insurance company)
|
|
|
|
|
|
|
Requested content
General
- Consider how you assess your portfolio’s exposure to climate-related risks and opportunities in your lending, financial intermediary, investment and/or insurance underwriting activities.
Portfolio (column 1)
- The options which appear are driven by your selections in column 2 of C-FS2.2b
Type of risk management process (column 2)
- Select whether you assess your portfolio’s exposure to climate-related risks and opportunities as an integrated part of your company-wide risk management process or whether you have a specific climate-related risk management process.
Proportion of portfolio covered by risk management process (column 3)
- For each of your portfolios, disclose the proportion of the portfolio covered by a risk management process.
- Coverage by portfolio value can be based on either total or outstanding commitments, premiums, and/or committed capital.
Type of assessment (column 4)
- Disclose whether the assessment is qualitative, quantitative, or both.
- Qualitative assessment is descriptive and may include stakeholder involvement, meetings, interviews, and analysis of scenario impacts or descriptive risk matrices.
- Quantitative assessment is expressed in numbers and involves indicators, indices, variables and metrics such as probabilistic or stochastic risk modelling considering frequency and severity of events.
Tools and methods used (column 6)
- Select which tools and methodologies you use to assess your portfolio’s exposure to climate and/or forests-related risks:
- UNEP FI Portfolio Impact Analysis Tool for Banks: Helps banks analyze the impacts associated with their retail (consumer and business banking) and wholesale (corporate and investment banking) portfolios
- UNEP FI Corporate Impact Analysis Tool: Enables users to perform a holistic analysis of companies, based on the reality of those companies’ business activities and the needs of the countries in which they operate, whether for sourcing, production or sales
- 2DII Paris Agreement Capital Transition Assessment (PACTA) tool: Portfolio-level analysis for equities and fixed income climate transition risks in power and some industrial sectors (cement and steel)
- The Transition Pathway Initiative (TPI): Bottom-up assessment of how listed companies are preparing for the transition to a low-carbon economy
- 2 Degrees of Separation: In-depth sector and company-level analysis of oil and gas companies’ upstream exposure to climate transition risks
- Portfolio temperature alignment: Portfolio alignment tools are used to generate metrics to determine the overall level of alignment of a portfolio, by assessing the performance of its individual companies.
- Risk models: computerized systems, such as catastrophe models, used to assess and quantify the financial impact of a range of potential future disasters
- Scenario analysis: Considers how an organization is impacted by changes to policy/regulation, technology or market changes aimed at emissions reductions, energy efficiency, subsidies/taxes or other constraints or incentives implemented to facilitate a low carbon economy (for example, the ‘well below 2°C’ goal committed to by the Paris Agreement). Assesses the impact of acute or chronic physical change related to climate change such extreme weather, rising sea levels, water shortage, etc.
- Stress tests: Process of evaluating a number of statistically defined possibilities to determine the most damaging combination of events, and the loss they would produce. The likelihood of such an event is then assessed
- If you select “Other, please specify”, please describe the tools and methodologies you use to assess your portfolio’s exposure.
Provide the rationale for implementing this process to assess your portfolio's exposure to climate-related risks and opportunities (column 7)
- Provide reasons for why you implemented this specific process to assess your portfolio’s exposure to climate-related risks and opportunities.
- You may also describe the advantages and disadvantages of the process chosen.
- Explain how you defined and calculated the proportion of portfolio covered by your risk management process.
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For bank lending, this is the entire collection of products and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(C-FS2.2d) Does your organization consider climate-related information about your clients/investees as part of your due diligence and/or risk assessment process?
Question dependencies
Rows in this question will be presented according to the organizational activities reported in C-FS0.7. This question is not shown if “Insurance underwriting (Insurance company)” is the ONLY selection in C1 of C-FS0.7 and “Life and/or health” is the ONLY section in C2 of C-FS0.7.
Change from last year
Modified question (2021 C-FS2.2f)
Rationale
Considering climate-related information about clients/investees in the initial phases of risk assessment and/or as part of your due diligence process helps investors and organizations in the financial sector better understand their value chain’s exposure to climate-related risks and opportunities.
Connection to other frameworks
TCFD
Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.
Risk management recommended disclosure b) Describe the organization's processes for managing climate-related risks.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Portfolio*
|
We consider climate-related information
|
Explain why you do not consider climate-related information and your plans to address this in the future
|
Banking (Bank)
|
Select from:
- Yes
- No, but we plan to do so in the next two years
- No, and we do not plan to in the next two years
|
Text field [maximum 2,500 characters]
|
Investing (Asset manager)
|
|
|
Investing (Asset owner)
|
|
|
Insurance underwriting (Insurance company)
|
|
|
Requested content
General:
- For each of your financial portfolios, disclose whether you consider climate-related information about your clients /investee companies as part of your client screening, risk assessment and/or due diligence process.
- Incorporating climate-related information into business processes can take many forms. This assessment is dependent on the organization’s client base and scale of business.
- Banks:
- Incorporating clients’ climate-related information in borrower and deal-level credit risk and other pre-lending assessments such as due diligence and “know your client” processes.
- For the purpose of this question focus on your commercial/corporate clients
- Asset managers:
- Incorporating investees’ climate-related information in fund allocation and investment risk assessment processes.
- Insurance companies
- Incorporating policyholders’ climate-related information in insurance underwriting due diligence processes.
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7
Explain why you do not consider climate-related information and your plans to address this in the future (column 3)
- This column only appears if any “No…” option is selected in column 2
Explanation of terms
- Due diligence: Research or investigation performed by the financial services company before entering into an agreement or a financial transaction with another party. There are many types of due diligence. Relevant ones may include client due diligence, environmental due diligence and Know Your Client (KYC) processes.
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For bank lending, this is the entire collection of products and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(C-FS2.2e) Indicate the climate-related information your organization considers about clients/investees as part of your due diligence and/or risk assessment process, and how this influences decision-making.
Question dependencies
This question appears if “Yes” is selected in any row in C-FS2.2d. A row will appear if “Yes” is selected in the corresponding row in C-FS2.2d.
Change from last year
New question
Rationale
Considering climate-related information about clients/investees in the initial phases of risk assessment and/or as part of your due diligence process helps investors and organizations in the financial sector better understand their value chain’s exposure to climate-related risks and opportunities. Data users are interested in what information financial institutions consider, about which clients/investees, and whether that is enough for them to make informed lending, investment and/or insurance underwriting decisions and thus mitigate climate-related risks within their portfolio.
Connection to other frameworks
TCFD
Risk management recommended disclosure a) Describe your organization’s processes for identifying and assessing climate-related risks.
Risk management recommended disclosure b) Describe the organization’s processes for managing climate-related risks.
Response options
Please complete the following table. You are able to add rows by using the “Add another” button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio* | Type of climate-related information considered | Process through which information is obtained | Industry sector(s) covered by due diligence and/or risk assessment process | State how this climate-related information influences your decision-making |
---|
Select from:
- Banking (Bank)
- Investing (asset manager)
- Investing (asset owner)
- Insurance underwriting (Insurance company)
| Select all that apply:
- Emissions data
- Energy usage data
- Emissions reduction targets
- Climate transition plans
- TCFD disclosures
- Other, please specify
| Select all that apply:
- Directly from the client/investee
- From an intermediary or business partner
- Data provider
- Public data sources
- Other, please specify
| Select all that apply:
- Energy
- Materials
- Capital Goods
- Commercial & Professional Services
- Transportation
- Automobiles & Components
- Consumer Durables & Apparel
- Consumer Services
- Retailing
- Food & Staples Retailing
- Food, Beverage & Tobacco
- Household & Personal Products
- Health Care Equipment & Services
- Pharmaceuticals, Biotechnology & Life Sciences
- Software & Services
- Technology Hardware & Equipment
- Semiconductors & Semiconductor Equipment
- Telecommunication Services
- Media & Entertainment
- Utilities
- Real Estate
- Other, please specify
| Text field [maximum 2,500 characters] |
[Add row]
Requested content
General
- For each of your financial portfolios, disclose whether you consider climate-related information about your clients/investee companies as part of your screening, risk assessment and/or due diligence process. For example:
- Banks:
- Considering clients’ climate-related information in borrower and deal-level credit risk and other pre-lending assessments such as due diligence and “know your client” processes.
- For the purpose of this question, focus on your commercial/corporate clients.
- Asset managers:
- Considering investees' climate-related information in fund allocation and investment risk assessment processes.
- Insurance companies:
- Considering policyholders’ climate-related information in insurance underwriting due diligence processes.
Portfolio (column 1)
- A row will appear if “Yes” is selected in the corresponding row in C-FS2.2d.
Type of climate-related information considered (Column 2)
- Select which type of climate-related information you consider as part of your screening, risk assessment and/or due diligence process.
Process through which information is obtained (Column 3)
- Select how you obtain climate-related information about clients/investee companies. This information could either be requested from the client/investee directly or gathered from other data sources.
Industry sector(s) covered by due diligence and/or risk assessment process (Column 4)
- Select which industry sectors you cover in your due diligence and/or risk assessment process
State how this climate-related information influences your decision-making (column 5)
- If you conduct enhanced due diligence or risk assessments involving climate-related information for certain clients only, describe what kinds of clients are considered relevant, and why.
- Comment on the proportion of clients for which this information is considered.
- Describe how you use the information you consider and if it has any bearing on the outcomes of due diligence or risk assessment processes.
Explanation of terms
- Due diligence: Research or investigation performed by the financial services company before transacting with another party.
(C2.2g) Why does your organization not have a process in place for identifying, assessing, and responding to climate-related risks and opportunities, and do you plan to introduce such a process in the future?
Question dependencies
This question only appears if you select “No” in response to C2.1.
Change from last year
No change
Rationale
A thorough risk and opportunity assessment is integral to addressing climate-related issues. Therefore data users want to understand why your company does not carry out such assessments, as well as any plans to do so in the future. Without a process for managing risks and opportunities, companies may be unable to determine the best ways to prepare for future uncertainties and liabilities, or to capitalize on available opportunities.
Response options
Please complete the following table:
Primary reason | Please explain |
Select from: - We are planning to introduce a climate-related risk management process in the next two years
- Important but not an immediate business priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- Insufficient data on operations
- No instruction from management
- Other, please specify
| Text field [maximum 1,500 characters] |
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 last year
No change
Rationale
Investors and data users are interested in learning whether your organization has knowledge at the corporate level of any substantive climate-related risks, across any part of your value chain.
Connection to other frameworks
TCFD
Strategy recommended disclosure a) Describe the climate related risks and opportunities the organization has identified over the short, medium, and long term.
SDG
Goal 13: Climate action
Response options
Select one of the following options:
Requested content
General
- Please indicate if you have identified any inherent climate-related risks.
- For the purposes of this response, the risks reported should only be those which:
- May pose substantive financial or strategic impacts, in line with your definition of substantive impact provided in C2.1b; and
- Are inherent (risks that exist in the absence of controls, i.e. not taking into account any potential mitigation or management measures that have been or could be implemented).
Note for financial services sector companies:
- For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities. Further details can be provided in subsequent questions.
(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.
Question dependencies
This question only appears if you select “Yes” in response to C2.3.
Change from last year
Modified question
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: - Banking portfolio [FS only]
- Investing (Asset manager) portfolio [FS only]
- Investing (Asset owner) portfolio [FS only]
- Insurance underwriting portfolio [FS only]
- Direct operations
- Other parts of the value chain [FS only]
- Upstream [not shown to FS]
- Downstream [not shown to FS]
|
Select from:
- Current regulation
- Emerging regulation
- Legal
- Technology
- Market
- Reputation
- Acute physical
- Chronic physical
|
See drop-down options below
|
See drop-down options below
|
Select from:
- Capital adequacy and risk-weighted assets
- Liquidity risk
- Funding risk
- Market risk
- Credit risk
- Insurance risk
- Reputational risk
- Policy and legal risk
- Systemic risk
- Operational risk
- Strategic risk
- Other non-financial risk
- None
|
Text field [maximum 2,500 characters]
|
Select from:
- Short-term
- Medium-term
- Long-term
- Unknown
|
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
- Avalanche
- Cold wave/frost
- Cyclone, hurricane, typhoon
- Drought
- Flood (coastal, fluvial, pluvial, groundwater)
- Glacial lake outburst
- Heat wave
- Heavy precipitation (rain, hail, snow/ice)
- Landslide
- Storm (including blizzards, dust, and sandstorms)
- Subsidence
- Tornado
- Wildfire
- Other, please specify
Chronic physical
- Changing precipitation patterns and types (rain, hail, snow/ice)
- Changing temperature (air, freshwater, marine water)
- Changing wind patterns
- Coastal erosion
- Heat stress
- Ocean acidification
- Permafrost thawing
- Precipitation and/or hydrological variability
- Saline intrusion
- Sea level rise
- Soil degradation
- Soil erosion
- Solifluction
- Temperature variability
- Water scarcity
- Other, please specify
|
Primary potential financial impact drop-down options (column 5)
Select one of the following options:
- Increased direct costs
- Increased indirect (operating) costs
- Increased capital expenditures
- Increased credit risk
- Decreased revenues due to reduced demand for products and services
- Decreased revenues due to reduced production capacity
- Decreased access to capital
- Decreased asset value or asset useful life leading to write-offs, asset impairment or early retirement of existing assets
- Increased insurance claims liability [Financial services only]
- Reduced profitability of investment portfolios [Financial services only]
- Devaluation of collateral and potential for stranded, illiquid assets [Financial services only]
- Other, please specify
Requested content
General
- For the purposes of this response, the risks reported should only be those which may pose inherently substantive impacts in your business operations, revenue, or expenditure, regardless of whether or not the company has taken action to mitigate the risk(s).
Identifier (column 1)
- Select a unique identifier from the drop down menu provided to identify the risk in subsequent questions, if required, and to track the status of the risk in subsequent reporting years. Please select from Risk1-Risk100 and use the same identifier in subsequent years for the same risk. For any new risks you are adding, always use a new identifier that you have not used previously.
Where in the value chain does the risk driver occur? (column 2)
- Upstream value chain refers to activities, products and services that are inputs to the activities of your business, sourced from third parties. This may include the regulations and policies applied by governments; the products and services provided by your suppliers (i.e. the supply chain).
- Downstream value chain refers to the third parties benefiting from the outputs, products and services of your business activities. This may be your customers and clients, or the organizations and projects your business invests in.
- [Financial Services only] The options shown will be driven by the organizational activities you selected in C-FS0.7.
Risk type (column 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.
- Capital adequacy and risks weighted assets: refers to the minimum amount of capital that must be held by financial institutions in order to reduce the risk of insolvency.
- Liquidity risk: occurs when a financial institution cannot meet its short-term debt obligations.
- Funding risk: refers to the risk associated with the impact on a project's cash flow from higher funding costs or lack of availability of funds.
- Market risk: refers to the possibility of loss resulting from an adverse movement in asset prices.
- Credit risk: refers the possibility of a loss resulting from a counterparty’s failure to repay a loan or meet contractual obligations.
- Insurance risk: refers to the possibility of loss resulting from an event(s) that triggers the insurer to pay (a) claim(s).
- Reputational risk: refers to the risk for negative public perception or to the potential of uncontrollable events to have an impact on a company's reputation.
- Policy and legal risk: refers to the possibility that legal action will be taken because of an individual's or corporation's actions, inaction, products, services, or other events.
- Systemic risk: the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy.
- Operational risk: refers to the possibility of loss resulting from failed processes, systems, human error or outside influences.
Company-specific description (column 6)
- Provide further contextual information on the risk driver, including more detail on the exact nature, location and/or regulation of the effect concerned, as well as any notable geographic/regional examples.
- Be sure to include company-specific detail, such as references to activities, programs, products, services, methodologies, or operating locations specific to your company’s business or operations.
Likelihood (column 8)
- The likelihood of the impact occurring along with the magnitude of the impact are the building blocks of a risk/opportunity matrix – a common method of identifying and prioritizing risk and opportunities.
- The likelihood refers to the probability of the impact to your business occurring within the time horizon provided, which in the case of an inherent risk might be similar to the probability of the climate event itself.
- For example, if the risk relates to a piece of new legislation which has already been prepared in draft form, the likelihood of the impact associated with that risk occurring will be relatively high.
Magnitude of impact (column 9)
- The magnitude describes the extent to which the impact, if it occurred, would affect your business. You should consider the business as a whole and therefore the magnitude can reflect both the damage that may be caused and the exposure to that potential damage.
- For example, two companies may have identical facilities located on a coast in an area which is vulnerable to sea level rise. However, if company A relies on that facility for 90% of its production capacity and company B relies on it for only 40% of its production capacity, the magnitude of a sea level rise impact on company A will be comparatively higher than that on company B.
- It is not possible for CDP to accurately define terms for magnitude as they will vary from company to company. For example, a 1% reduction in profits will have different effects on different companies depending on the profit margins on which they work. Therefore, companies are asked to determine magnitude on a qualitative scale. Factors to consider include:
- The proportion of business units affected;
- The size of the impact on those business units; and
- The potential for shareholder or customer concern.
Are you able to provide a potential financial impact figure? (column 10)
- Your selection will determine whether columns 11,12, and 13 will be presented.
- It is acknowledged that these figures will be estimates.
- If you are unable to provide a figure for a financial impact, you may use column 14 "Explanation of financial impact" to provide a description of the impact in relative terms; for example, as a percentage relative to a stated or publicly available figure, or give a qualitative estimate of the financial impact.
Potential financial impact figure (currency) (column 11)
- Provide a single figure for the inherent financial impact of the risks (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
- An example would be the cost of destruction of facilities from extreme weather (before taking into consideration how much insurance coverage you have).
Potential financial impact figure - minimum/maximum (currency) (columns 12, 13)
- Provide the estimated range for the inherent financial impact (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
- Potential financial impact figure – minimum (currency): Use this field to report the lower point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘5,000’ should be reported here.
- Potential financial impact figure – maximum (currency): Use this field to report the upper point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘50,000’ should be reported here.
Explanation of financial impact figure (column 14)
- Use this open text field to explain the figure provided in the “Potential financial impact” (columns 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. If you entered 0 in column 15 “Cost of response to risk”, you should still explain how you arrived at a figure of 0, even if the cost is absorbed into business-as-usual activities.
Comment (column 17) (optional)
- You can use this text field to enter any additional relevant information.
Note for oil and gas sector companies:
- In answering the questions above, please consider the impact of national and international emissions targets and how those could affect demand for oil and gas products. Will they lead to your company having a less carbon-intensive fuel mix? Will fuel efficiency standards affect the demand for fuel? Are there other instances where demand is likely to reduce due to regulation?
- Is your company affected by other types of regulation such as restrictions on flaring, or by requirements for a certain level of climate-related performance in order to receive permission to operate and/or as a condition of accessing new oil & gas resources? (e.g. a requirement for carbon sequestration).
- Companies are encouraged to include these drivers in the response to this question and explain how their portfolio of reserves is evolving in response to these drivers (in the Comment column).
Note for electric utility sector companies:
- Electric utilities are asked to consider, among other issues:
- How national and international targets on demand management might affect demand for electricity;
- The impacts of related policies such as building regulations specifying more energy-efficient buildings;
- Policies to increase renewable electricity supply or to support developments that may result in GHG emissions reductions, e.g. CO2 capture and storage, clean coal technologies and energy storage;
- The impacts of any emissions trading schemes and any emissions reduction targets you have set or with which you have to comply, including the analysis of possible scenarios and their effect on the company;
- The effects on wholesale and retail power prices of carbon prices in the different markets in which you operate and the extent to which carbon prices are passed through, or may in the future be passed through, into electricity prices in the markets, based on current and anticipated regulatory requirements.
Note for auto and auto component manufacturing companies:
- Please consider the financial and strategic implications of current and planned national, regional, and international policies for increasing automobile fuel efficiency and developing “clean” engines for each of the markets in which you operate. You should also consider how other related environmental policies, such as regulations and standards regarding air quality, use of alternative fuels, and sustainable mobility could further impact your business.
- Specifically, you should take into account how climate change policy could impact you in terms of sales, the financial cost of any loss or potential loss of market share, additional costs of complying with regulation and, if applicable, how you have or will pass increased costs down the value chain.
Note for agricultural sector companies:
- Agricultural companies should report on risks that may affect the revenue associated with the agricultural/forestry, processing/manufacturing and/or distribution. These risk are often driven by:
- Physical factors, e.g. extreme weather events that disrupt production/supply of raw materials.
- Changes in regulation pertaining to agricultural, processing, manufacturing, distribution and/or consumption activities.
- Changes in consumer demands and new market trends
Note for companies with coal reserves:
Note for financial services sector companies:
- For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your investing, financing, underwriting and/or operational activities, regardless of whether any action has been taken to respond to the risk(s).
- Note that if providing a potential financial impact figure, this figure should represent the financial impact on your business. For example, if reporting a risk of stranded assets, you should report the potential financial impact (such as the write-down or devaluation) of the assets stranding on your balance sheet (before taking into consideration any controls you may have in place to mitigate the impacts), as opposed to reporting the portfolio exposure to those assets.
- Consider providing a description of risks by sector and/or geography, as appropriate. This can be provided in the "Company-specific description" (column 6).
- Both physical and transition risks in your investing, financing, underwriting, and/or operational activities should be considered, including the risk of stranded assets. These are assets that are no longer economically viable as a result of climate-related transition or physical risks.
- Banks:
- Banks should describe significant concentrations of credit exposure to carbon-related assets.
- Additionally, banks should consider disclosing their climate-related risks (transition and physical) in their lending and other financial intermediary business activities.
- Insurance companies 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.
Example response
Identifier
|
Where in the value chain does the risk driver occur?
|
Risk type
|
Primary climate-related risk driver
|
Primary potential financial impact
|
Risk1
|
Direct Operations
|
Chronic physical
|
Changing temperature (air, freshwater, marine water)
|
Increased direct costs
|
Company- specific description
|
Time horizon
|
Likelihood
|
Magnitude of impact
|
Are you able to provide a potential financial impact figure?
|
Company X owns and operates data centres across the United States and Europe. Our data centres require cooling to maintain a stable temperature to operate. All of our data centres use our in-house DATACOOL systems to regulate temperatures. However, as global mean temperatures rise, more cooling is required, needing more electricity usage to cool the data centres. Correspondingly the cost of cooling will increase.
Company X carried out a scenario analysis to identify the likely impact on cooling costs under a 1.5°C scenario. With the existing DATACOOL technologies in use in our North American and European operations, costs associated with data centre cooling will increase 63% overall by 2050. This reflects a 65% increase in electricity consumption for our 345 North American data centres, and 58% across our 90 European facilities. For our largest data centre in Dallas Texas, we anticipate cooling costs to increase by 120% by 2050.
|
Long-term
|
Very likely
|
Medium
|
Yes, a single figure estimate
|
Potential financial impact figure (currency)
|
Explanation of financial impact figure
|
Cost of response to risk
|
Description of response and explanation of cost calculation
|
Comment
|
$63,000,000
|
The $63 million figure is based on a 63% increase in annual data centre cooling costs across all our operations by 2050, under a 1.5°C scenario. This is based on current annual cooling costs of $100 million. This figure assumes continued use of existing DATACOOL cooling systems.
|
$25,000,000
|
As global mean temperatures rise, the cost of cooling our data centres is set to increase significantly. As part of our 2025 business strategy, Company X’s response to this risk consists of two programmes. First, we are investing $15 million in research and development towards next generation DATACOOL cooling systems, including outside air and sea water indirect cooling technologies. These have the potential to reduce our cooling costs by up to 70%. Second, we are investing $10 million in self-generation renewable energy projects. This investment will double our current renewable generation capacity and reduce our exposure to increasing electricity costs as cooling costs increase.
The total cost of the response to risk, $25 million, is the sum of the cost of these two programmes: $15 million in R&D for more energy efficient cooling technologies, and an investment of $10 million in renewable electricity self-generation capacity.
|
N/A
|
(C2.3b) Why do you not consider your organization to be exposed to climate-related risks with the potential to have a substantive financial or strategic impact on your business?
Question dependencies
This question only appears if you select “No” in response to C2.3.
Change from last year
No change
Rationale
A risk assessment may identify no substantive climate-related risks. This conclusion is important to disclose and explain. Knowing why your organization has concluded that it is not exposed to risks is crucial for data users to understand your business.
Response options
Please complete the following table:
Primary reason
|
Please explain
|
Select from:
- Risks exist, but none with potential to have a substantive financial or strategic impact on business
- Evaluation in process
- Not yet evaluated
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
Primary reason (column 1)
- Select the reason that best describes why you consider your organization to not be exposed to climate-related risks with the potential to have a substantive financial or strategic impact on your business, given your definition of substantive as reported in C2.1b.
Please explain (column 2)
- Your explanation should include company-specific details such as your evaluation process or specific reasons why you have not yet conducted a risk assessment or why there are no climate-related risks to your organization.
Opportunity disclosure
(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?
Change from last year
No change
Rationale
Investors and data users wish to know whether your organization has identified at the corporate level any substantive climate-related opportunities, presented across any part of your value chain.
Connection to other frameworks
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 last year
Modified question for FS only.
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:
- Banking portfolio [FS only]
- Investing (Asset manager) portfolio [FS only]
- Investing (Asset owner) portfolio [FS only]
- Insurance underwriting portfolio [FS only]
- Direct operations
- Other parts of the value chain [FS only]
- Upstream [not shown to FS]
- Downstream [not shown to FS]
|
Select from:
- Resource efficiency
- Energy source
- Products and services
- Markets
- Resilience
|
See drop-down options below
|
See drop-down options below
|
Text field [maximum 2,500 characters]
|
Select from:
- Short-term
- Medium-term
- Long-term
- Unknown
|
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. If you entered 0 in column 15 “Cost to realize opportunity”, you should still explain how you arrived at a figure of 0, even if the cost is absorbed into business-as-usual activities.
Comment (column 17) (optional)
- You can use this text field to enter any additional relevant information.
Note for electric utility sector companies:
- In answering the questions above, please consider:
- Opportunities that may arise from emissions trading;
- The opportunities that national or international targets on energy efficiency and demand management might present for your company e.g. revenue implications from energy services business units;
- Your company’s views on any opportunities that may result from policies on renewable energy or low emissions technologies e.g. current or planned investments in these areas; and
- The extent to which you receive financial incentives to reduce the electricity use of customers.
Note for agricultural sector companies:
- Agricultural companies should report on opportunities that the revenue associated with the agricultural/forestry, processing/manufacturing and/or distribution of raw materials and goods. For example, opportunities might arise from:
- Increased efficient by reducing energy use during the production of raw materials and/or the manufacture of food, beverage and other goods;
- Reduced costs due to carbon payments by adopting practices or technology to reduce carbon footprint;
- Government of private financial incentives for adoption low impact agriculture/forestry.
Note for financial services sector companies:
- Consider opportunities associated with products and services such as green bonds, green infrastructure, green loans/mortgages, green insurance products, products and services ensuring resiliency, specialty climate-related risk advisory services and others.
- Note that if providing a potential financial impact figure, this figure should represent the financial impact on your business. For example, the potential revenues generated by green loans should be reported, as opposed to the potential size of the green loan book.
- You should consider providing a description of your opportunities by sector and/or geography, as appropriate.
Note for capital goods sector companies:
- In line with the TCFD’s recommendations, companies in this sector should consider opportunities for products or services that improve efficiency, reduce energy use and support closed-loop product solutions.
Explanation of terms
- Likelihood: The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 reports. They are associated with probabilities, indicating the percentage likelihood of the event occurring. It is not necessary for respondents to have calculated probabilities for the risks they are considering, however they can give an indication as to the meaning of the terms:
- Virtually certain: 99–100% probability;
- Very likely: 90–100%;
- Likely: 66–100%;
- More likely than not: >50–100%;
- About as likely as not: 33–66%;
- Unlikely: 0–33%;
- Very unlikely: 0-10%;
- Exceptionally unlikely: 0–1%.
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
- Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.
Example response
Identifier
|
Where in the value chain does the opportunity occur?
|
Opportunity type
|
Primary climate-related opportunity driver
|
Primary potential financial impact
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Company- specific description
|
Time horizon
|
Opp1
|
Downstream
|
Products and services
|
Development and/or expansion of low emissions goods and services
|
Increased revenues resulting from increased demand for products and services
|
Company Y produces packaging solutions for customers worldwide. The opportunity identified is increasing demand for our low-carbon, sustainable packaging ranges. Global awareness of climate change and the existential risk it poses to humanity is fueling demand for low-carbon products, including our packaging ranges made from non-virgin materials. Since launching in 2010, our carbon neutral ECO-PACK product range has grown to comprise 85% of our annual revenue. Based on current growth trends and market data, we anticipate ECO-PACK sales to increase a further 240% in our North American markets, 160% in the EMEA and APAC regions to 2030.
|
Medium-term
|
Likelihood
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Magnitude of impact
|
Are you able to provide a potential financial impact figure?
|
Potential financial impact figure (currency)
|
Explanation of financial impact figure
|
Cost to realize opportunity
|
Strategy to realize opportunity and explanation of cost calculation
|
Comment
|
Likely
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High
|
Yes, a single figure estimate
|
$870,000,000
|
The $870 million figure is based on a 200% increase in annual sales revenue from ECO-PACK product lines by 2030. This is based on current annual sales of $435 million. This figure is based on current growth trends and assumes no new product lines are developed.
|
$100,000,000
|
Company Y’s strategy to realise the opportunity consists of a 2030 marketing strategy for ECO-PACK product lines to capitalize on the growing demand for low-carbon packaging solutions, and a ramping up of ECO-PACK production capacity.
As part of our new marketing strategy, we will coordinate marketing campaigns for our award-winning ECO-PACK product lines in each of the regions, North America, EMEA and APAC. This will enable us to double annual sales revenue by 2030. At the same time, we are investing in increasing ECO-PACK production capacity by building a state-of-the-art, net-zero production facility in Germany. Production will begin at the facility in 2023, allowing us to more than double production capacity of our sustainable product lines.
The total cost to realise the opportunity, $100 million, consists of marketing costs of $6 million and a further $94 million on increasing production capacity to 2030.
|
N/A
|
(C2.4b) Why do you not consider your organization to have climate-related opportunities?
Question dependencies
This question only appears if you select “No” or “Yes, we have identified opportunities but are unable to realize them” in response to C2.4.
Change from last year
No change
Rationale
Investors and other data users are interested to know whether you are aware of climate-related opportunities. An explanation of why your organization has concluded that it is not exposed to opportunities is crucial for understanding your business strategy.
Response options
Please complete the following table:
Primary reason
|
Please explain
|
Select from:
- Opportunities exist, but we are unable to realize them
- Opportunities exist, but none with potential to have a substantive financial or strategic impact on business
- Evaluation in progress
- Judged to be unimportant
- No instruction from management to seek out opportunities
- Not yet evaluated
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
Primary reason (column 1)
- Select the reason that best describes why you consider your organization to not be exposed to climate-related opportunities with the potential to have a substantive financial or strategic impact on your business.
Please explain (column 2)
- Please explain further why there are no climate-related opportunities for your company or, if they exist, why you are unable to realize them;
- If relevant to your selection in column 1, please:
- Make reference to how you identified opportunities;
- Include how you have defined ‘substantive’ impact in the context of an opportunity, and reference the definition of substantive impact you gave in C2.1b if applicable;
- Describe when you will next repeat an assessment of opportunities;
- Include specific reasons why you have not yet conducted an opportunity assessment/why it is considered unimportant for your business;
- Provide any other company-specific details such as your evaluation process.
C3 Business strategy
Module Overview
CDP data users are interested in organizations’ forward-looking strategies and financial decisions that are driven by climate-related future market opportunities, public policy objectives, and corporate responsibilities. This module allows organizations to disclose whether they have acted upon integrating climate-related issues into their business strategy. The module includes questions on scenario analysis and transition planning which are important evolutions in strategic environmental planning.
Given the importance of forward-looking assessments of climate-related risks and opportunities, scenario analysis is an important and useful tool for an organization to use, both for understanding strategic implications of climate-related risks and opportunities, and for informing stakeholders of how the organization is positioning itself in recognition of these issues. It also can aid investors, lenders, and insurance underwriters in informing their own financial decision making.
Transition planning is also an important evolution of strategic environmental planning, and includes all the relevant changes that need to be made to the company’s business model before the company can adjust to a net-zero future. This is especially relevant for companies operating in high impact sectors.
Climate-related scenario analysis and transition planning disclosure was piloted by CDP in the Assessing Low-Carbon Transition (ACT) initiative in 2016. Further information on conducting and disclosing scenario analysis can be found in the CDP Technical Note on Scenario Analysis. Further information on transition planning can be found in the CDP Climate Transition Plan technical note.
Responses given in this module should be relevant to the reporting period, even if revisions have been made to your strategy between the reporting period and the time of submission of your CDP response. Where this is the case, you can include more up to date information in C-FI field at the end of the questionnaire. This will not be scored but will be available to 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
- Removed questions:
- C3.4a (2021) on the influence of climate-related risks and opportunities on strategy and financial planning.
- [Financial services only] C-FS3.7b (2021) on climate-related issues not being factored into external asset manager selection process.
- Five new questions:
- C3.2b requests details of the results of scenario analyses with respect to the focal questions and/or decisions addressed.
- C3.5 and C3.5a request details of spending/revenue that is aligned with a 1.5 degree world.
- [Financial services only] C-FS3.8 and C-FS3.8a request information on your organization's use of covenants in financing agreements.
- Modified questions:
- C3.1a, C3.1b, and C3.5 (2021) have been merged into question C3.1 on transition plans.
- C3.2 requests details of why your organization does not use scenario analysis (if applicable).
- C3.2a requests more granular details on each scenario used in scenario analysis.
- [Financial services only] C-FS3.6 requests whether your policy framework includes climate-related requirements.
- [Financial services only] C-FS3.6a requests more granular detail on the policies which integrate climate-related issues.
- [Financial services only] C-FS3.6b requests more granular detail on your organizations exclusion policies.
- [Financial services only] C-FS3.7 requests further details on why your organization does not include climate-related requirements in your selection process and engagement with external asset managers if it does not.
- [Financial services only] C-FS3.7a requests more granular detail on the climate-related requirements included in your selection process and engagement with external asset managers.
Click here for a list of all changes made this year.
Sector-specific content
Additional questions for FS sector companies.
Pathway diagram - questions
This diagram shows the general questions contained in module C3. To access question-level guidance, use the menu on the left to navigate to the question.
Business strategy
(C3.1) Does your organization’s strategy include a transition plan that aligns with a 1.5°C world?
Change from last year
Modified question (2021 C3.1, C3.1a, C3.1b, and C3.5)
Rationale
Developing a climate transition plan provides certainty to data users that a company is aligning to the long-term climate goals and that its business model will continue to be relevant in a net-zero carbon economy. Collecting feedback on the transition plan allows shareholders to review and raise resolutions related to progress. This question allows companies to demonstrate transparency on their transition plans and associated feedback mechanisms.
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
Please complete the following table:
Transition plan | Publicly available transition plan | Mechanism by which feedback is collected from shareholders on your transition plan | Description of feedback mechanism | Frequency of feedback collection | Attach any relevant documents which detail your transition plan (optional) | Explain why your organization does not have a transition plan that aligns with a 1.5°C world and any plans to develop one in the future | Explain why climate-related risks and opportunities have not influenced your strategy |
---|
Select from:
- Yes, we have a transition plan which aligns with a 1.5°C world
- No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a transition plan within two years
- No, our strategy has been influenced by climate-related risks and opportunities, but we do not plan to develop a transition plan within two years
- No, and our strategy has not been influenced by climate-related risks and opportunities
| Select from:
| Select from:
- Our transition plan is voted on at Annual General Meetings (AGMs)
- We have a different feedback mechanism in place
- Our transition plan is voted on at AGMs and we also have an additional feedback mechanism in place
- We do not have a feedback mechanism in place, but we plan to introduce one within the next two years
- We do not have a feedback mechanism in place, and we do not plan to introduce one within the next two years
- Not applicable as our organization does not have shareholders
| Text field [maximum 2,500 characters] | Select from:
- More frequently than annually
- Annually
- Less frequently than annually
| [Functionality that allows for several attachments] | Text field [maximum 2,500 characters] | Text field [maximum 2,500 characters] |
Requested content
General
- Note for financial services sector companies: Questions C-FS14.3 and C-FS14.3a ask about actions to align your portfolio with a 1.5°C world, and whether you assess if your clients/investees' business strategies are aligned with a 1.5°C world.
Transition plan (column 1)
- You should select “Yes, we have a transition plan which aligns with a 1.5°C world” if you have developed a plan for how to transition your company to a business model compatible with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures. See “Explanation of Terms” for more information. If you select this option, you will be asked to provide further details on your transition plan in subsequent columns.
- You should select “No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a transition plan within two years” if climate-related risks and opportunities have already influenced your strategy and/or financial planning and you either:
- have not developed a transition plan but intend to develop one which aligns with a 1.5°C world within two years; or
- have developed a climate transition plan which does not yet align with a 1.5°C world (as per the definition in “Explanation of terms”) and intend to align it within two years.
- If you select “No, and our strategy has not been influenced by climate-related risks and opportunities”, you will have the opportunity to explain further in column 8 “Explain why climate-related risks and opportunities have not influenced your strategy”.
Publicly available transition plan (column 2)
- This column is only presented if “Yes, we have a transition plan…” is selected in column 1.
Mechanism by which feedback is collected from shareholders on your transition plan (column 3)
- This column is only presented if “Yes, we have a transition plan…” is selected in column 1.
- You should select “Our transition plan is voted on at Annual General Meetings” if you hold AGMs (as defined in the Explanation of Terms) during which shareholders vote on your organization’s climate transition plan. Note that this option is applicable even if your transition plan is already in progress, as it should be continually adjusted and voted on by shareholders (rather than a one-time sign-off). Furthermore, shareholders should be given the opportunity to provide feedback on progress made against your transition plan.
- You should select “We have a different feedback mechanism in place” if your transition plan is not voted on at AGMs, but there is another way shareholders can provide feedback on the contents and progress of your climate transition plan.
- You should select “Not applicable as our organization does not have shareholders” if, for example, your organization is privately held.
Description of feedback mechanism (column 4)
- This column is only presented if “We have a different feedback mechanism in place” or “Our transition plan is voted on at AGMs and we also have an additional feedback mechanism in place” is selected in column 3.
- Briefly describe the process shareholders use to provide feedback on the contents and progress of your climate transition plan. You may also provide any additional information to clarify your selection in column 3, for example, why you do not hold AGMs, or why you have more than one feedback mechanism in place.
Frequency of feedback collection (column 5)
- This column is only presented if “We have a different feedback mechanism in place” or “Our transition plan is voted on at AGMs and we also have an additional feedback mechanism in place” is selected in column 3.
Attach any relevant documents which detail your transition plan (optional) (column 6)
- This column is only presented if “Yes, we have a transition plan…” is selected in column 1.
- You may attach one or more documents which include your climate transition plan e.g. your annual report, your sustainability report, and/or a separate transition plan document.
- Note that CDP considers a credible transition plan to be succinctly integrated into an organization’s existing mainstream filings. Please refer to the CDP Climate Transition Plan technical note for more details.
Explain why your organization does not have a transition plan that aligns with a 1.5°C world and any plans to develop one in the future (column 7)
- This column is only presented if “No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a transition plan within two years” or “No, our strategy has been influenced by climate-related risks and opportunities, but we do not plan to develop a transition plan within two years” is selected in column 1.
- Explain why you have not developed a climate transition plan, or why your transition plan is not aligned with a 1.5°C world (as per the definition in “Explanation of terms”).
Explain why climate-related risks and opportunities have not influenced your strategy (column 8)
- This column is only presented if “No, and our strategy has not been influenced by climate-related risks and opportunities” is selected in column 1.
- Your answer should be company-specific and include:
- Why climate-related risks and opportunities have not influenced your business strategy and/or financial planning; and
- Whether you expect them to in the future. For example, climate change may have little effect on your business because of the nature of your goods/services. In that case, please give as complete an explanation as possible.
- [Oil and gas only] Discuss whether you have considered integrating regulatory and physical climate change risks into your business strategy, investment decisions and risk management. You should also discuss whether you have considered the diversification of your portfolio into lower-carbon and non-fossil fuel products (e.g. natural gas, biofuels, renewable energy), and development of carbon capture and sequestration technology. If relevant, provide the methodology used for any integration of future carbon prices into your hydrocarbon exploration strategy and investment decisions, and the assumptions used. Where possible, provide illustrative examples of the assumptions made in specific investment decisions.
- [Electric utilities only] Discuss any considerations to incorporate renewable energy, carbon capture & sequestration, cleaner coal technologies and energy storage into your strategy.
- [Transport OEMs only] Discuss whether you have considered the impact of climate-related issues on your strategy for your products at group level and, where relevant, for specific markets, including the impact of existing regulatory drivers. Discuss expansion into hybrid/fully electric vehicles and fuel cell technology, if relevant.
Explanation of terms
- Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5 degrees Celsius. Please refer to the CDP Climate Transition Plan technical note for more details.
- Strategy: In line with TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.
- Financial planning: In line with TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1-5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
- Annual General Meeting (AGM): (or annual shareholder meeting) is a yearly gathering between the shareholders of a company and its board of directors. It is primarily held to enable shareholders to vote on company issues, including the selection of the company's board of directors.
- Alignment with a 1.5°C world: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5). According to the Science-based Targets initiative, aligning with a 1.5°C world currently means reducing Scope 1, 2 and 3 emissions to zero or close to zero and neutralizing any residual emissions by 2050 at the latest.
(C3.2) Does your organization use climate-related scenario analysis to inform its strategy?
Change from last year
Modified question
Rationale
Your disclosure to this question provides data users with an indication of the extent to which your company is considering a range of possible and probable futures when considering climate-related challenges and opportunities, in line with best practices in corporate environmental management.
Connection to other frameworks
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
Complete the following table:
Use of climate-related scenario analysis to inform strategy | Primary reason why your organization does not use climate-related scenario analysis to inform its strategy | Explain why your organization does not use climate-related scenario analysis to inform its strategy and any plans to use it in the future |
---|
Select from:
- Yes, qualitative
- Yes, quantitative
- Yes, qualitative and quantitative
- Yes, qualitative, but we plan to add quantitative in the next two years
- No, but we anticipate using qualitative and/or quantitative analysis in the next two years
- No, and we do not anticipate doing so in the next two years
| Select from:
- Important but not an immediate priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- No instruction from management
- Other, please specify
| [Text field, 2,500 characters] |
Requested content
General
- Select whether your organization uses climate-related scenario analysis to inform its business strategy, and if yes, the type of scenario analysis you use. See “Explanation of terms” for more details on qualitative and quantitative scenario analysis.
Primary reason why your organization does not use climate-related scenario analysis to inform its strategy (column 2)
- This column is only presented if “No, but we anticipate using qualitative and/or quantitative analysis in the next two years” or “No, and we do not anticipate doing so in the next two years” is selected in column 1.
- Select the reason that best describes why your organization does not use climate-related scenario analysis to inform your strategy.
- If more than one reason applies to your organization, select the reason which is most relevant and elaborate on the other reason(s) in column 3.
Explain why your organization does not use climate-related scenario analysis to inform its strategy and any plans to use it in the future (column 3)
- This column is only presented if “No, but we anticipate using qualitative and/or quantitative analysis in the next two years” or “No, and we do not anticipate doing so in the next two years” is selected in column 1.
- Provide a company-specific explanation of why you do not use climate-related scenario analysis to inform your strategy and outline any plans to do so in the future.
- If you selected “Judged to be unimportant, explanation provided” in column 2, explain the criteria used to decide that climate-related scenario analysis is not important for your organization.
- If you selected “Lack of internal resources”, specify whether this relates to lack of internal expertise, data availability, funds to outsource the analysis or other resources.
Explanation of terms
- Scenario analysis: A scenario describes a potential path of development that will lead to a particular outcome or goal. Scenario analysis is the process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.
- Qualitative scenarios: A high level, narrative approach to scenario analysis, suitable for organizations familiarizing themselves with the process. Qualitative scenario analysis explores relationships and trends for which little or no numerical data is available.
- Quantitative scenarios: A more detailed method for conducting scenario analysis, with greater rigor and sophistication in the use of data sets and quantitative models which may warrant further analysis. Quantitative scenario analysis can be used to assess measurable trends and relationships using models and other analytical techniques.
Additional information
Industry examples of scenario analysis - Shell, BP, Mercer, BHP Billiton, BIER’s Future Scenarios Toolkit
(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Question dependencies
This question only appears if you select “Yes, qualitative”, “Yes, quantitative”, “Yes, qualitative and quantitative” or “Yes, qualitative, but we plan to add quantitative in the next two years” in response to C3.2.
Change from last year
Modified question
Rationale
Scenario analysis as a planning tool is a recommended practice for businesses preparing for possible futures. Investors are interested in understanding how companies use this planning tool to guide climate-related strategy, and specifically which scenarios different organizations utilize in their planning process.
Connection to other frameworks
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
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Climate-related scenario | Scenario analysis coverage | Temperature alignment of scenario | Parameters, assumptions, analytical choices |
Select from: Transition scenarios
- IEA NZE 2050
- IEA B2DS
- IEA 2DS
- IEA 450
- IEA SDS
- IEA APS
- IEA STEPS (previously IEA NPS)
- IEA CPS
- Greenpeace
- DDP
- IRENA
- BNEF NEO
- NGFS scenarios Framework [Financial Services only]
- Customized publicly available transition scenario
- Bespoke transition scenario
Physical climate scenarios
- RCP 1.9
- RCP 2.6
- RCP 3.4
- RCP 4.5
- RCP 6.0
- RCP 7.0
- RCP 8.5
- Customized publicly available physical scenario
- Bespoke physical scenario
| Select from:
- Company-wide
- Business division
- Business activity
- Facility
- Country/area
- Product-level
- Portfolio [FS only]
- Other, please specify
| Select from:
- 1.5ºC
- 1.6ºC – 2ºC
- 2.1ºC - 3ºC
- 3.1ºC - 4ºC
- 4.1ºC and above
- Unknown
| Text field [maximum 2,500 characters]
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[Add Row]
Requested content
General
- As recommended by TCFD, scenarios should be sufficiently diverse to allow challenging “what-if” analyses and capture a wide range of insights about uncertain futures. In assessing transition risks, a company should consider using or developing a 1.5°C scenario. In assessing physical risks, a company should use the current GHG pathway based on government policies currently in place, which according to latest estimates from the Climate Action Tracker would result in warming of about 2.7°C above pre-industrial levels. 2.7°C is the median of the low and high ends of current policy projections.
- Companies using customized or bespoke scenarios should have a robust and accountable process to ensure that the scenarios used are objective and diverse, and should transparently disclose this process and the content of the scenarios in this question.
Climate-related scenario (column 1)
- Add a row for each scenario used in your scenario analysis.
Scenario analysis coverage (column 2)
- The TCFD Guidance on Scenario Analysis recommends that scenario analysis should encompass the whole company. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If the scenario analysis does not apply to the whole company, select the option that best describes the coverage of the scenario, and provide further details in column 4 “Parameters, assumptions, analytical choices”.
Temperature alignment of scenario (column 3)
- This column is only presented if “Customized publicly available physical scenario”, “Customized publicly available transition scenario”, “Bespoke physical scenario”, or “Bespoke transition scenario” is selected in column 1.
Parameters, assumptions, analytical choices (column 4)
- Provide details on how the selected scenario was identified, with reference to the parameters, assumptions and analytical methods used:
- Parameters refer to measurable factors built into the scenario that may have a material impact on your business performance, such as discount rate, GDP, and other macro-economic or demographic variables.
- Assumptions refer to assumptions made about how the parameters are likely to develop over the scenario’s timeframe, such as the timing of policy changes (e.g., carbon prices) or the development of market prices of key commodities/products.
- Analytical choices refer to the time horizons, data sources and models used, such as any SSPs (Shared Socioeconomic Pathways) used in conjunction with your scenario.
- Indicate in your response whether your analysis using this scenario was quantitative or qualitative.
Note for financial services sector companies:
- State if your organization uses climate-related scenario analysis to understand the impact of climate-related issues on lending, financial intermediary, investment and/or insurance underwriting activities, in addition to operational activities.
- Note that “Company-wide” in column 2 refers to the reporting boundary as disclosed in question C0.5 in the introduction module. Financial services sector organizations using scenario analysis on their portfolios should select “Portfolio [FS only]”, even when the scenario analysis covers all financial activities and portfolios.
- Both physical and transition pathway risks should be considered in your scenario analysis.
- Banks:
- Banks are encouraged to use the Network for Greening the Financial System (NGFS) scenarios Framework.
- Insurance companies:
- Insurance companies that perform climate-related scenario analysis on their underwriting activities should provide the following information:
- 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.
Explanation of terms
- 1.5°C or lower scenario: A core element of the TCFD’s Strategy recommendation c) “Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario”. As noted on page 26 of The TCFD Guidance on Scenario Analysis for Non-Financial Companies, the TCFD now recommends that in assessing transition risks, companies should consider using or developing a 1.5°C scenario for the “2°C or lower scenario”, stating that “a 1.5°C scenario would provide stronger diversity in assumptions about future policies and technologies. A 1.5°C scenario also aligns with the latest scientific research from the IPCC, the growing momentum of pledges to limit emissions to net-zero by 2050, and the spirit of the Paris Agreement, demonstrating a company’s alignment to recognized temperature targets.”
- Publicly available scenarios: Taken from TCFD recommendations, “Publicly available scenarios” refer to scenarios which are:
- used/referenced and issued by an independent body;
- wherever possible, supported by publicly available datasets;
- updated on a regular basis; and
- linked to functional tools (e.g., visualizers, calculators, and mapping tools) that can be applied by organizations.
- IEA NZE 2050: IEA’s Net Zero by 2050 scenario presents a roadmap for the energy sector to transition to a net zero energy system by 2050. It assumes that advanced economies will reach net zero in advance of 2050 and sets out an emissions trajectory consistent with a 50% chance of limiting the global temperature rise to 1.5°C without a temperature overshoot.
- IEA B2DS: IEA’s Beyond 2°C Scenario (B2DS) sets out a rapid decarbonization pathway in line with international policy goals. The B2DS looks at how far known clean energy technologies could go if pushed to practical limits, in line with countries’ ambitious aspirations in the Paris Agreement. In this scenario, the energy sector reaches carbon neutrality by 2060 to limit future temperature increases to 1.75°C by 2100. This pathway implies that all available policy levers are activated throughout the outlook period in every sector worldwide, requiring unprecedented policy action as well as effort and engagement from all stakeholders.
- IEA 2DS: IEA’s 2°C Scenario is built on a projected warming limit of 2°C and is part of the annual publication “Energy Technology Perspectives”, providing scenario analysis based on the development of lower carbon technology and its deployment in various sectors. The IEA ETP 2DS sets out an energy system development pathway and an emissions trajectory consistent with at least a 50% chance of limiting the average global temperature rise to 2°C. It sets the target of cutting CO2 emissions by almost 60% by 2050 (compared with 2013), followed by continued decline after 2050 until carbon neutrality is reached. It also identifies changes that help ensure a secure and affordable energy system in the long run, while emphasizing that transforming the energy sector is vital, but not enough on its own.
- IEA 450: IEA’s World Energy Outlook 450 scenario is expressed as realizing a 50% chance of limiting warming to a 2°C rise by 2100 (originally based upon a projected warming limit of 2°C through limiting the concentration of GHG’s to around 450ppm of CO2 equivalent) and offers steps by which that goal might be achieved. It references many separate measures which are required to reduce energy-related emissions from 2015 to 2040, including stronger deployment of technologies that are familiar and available at a commercial scale today, delivering close to 60% of the emissions reductions. Technologies referenced include the building of significant additional nuclear capacity and rapid CCS expansion.
- IEA SDS: IEA’s Sustainable Development Scenario (SDS) is compatible with the Paris Agreement’s less ambitious “well-below 2°C” goal. It assumes all energy-related SDGs and all current net-zero pledges are achieved, with advanced economies reaching net zero emissions by 2050, China by 2060 and all others by 2070 at the latest. It has a 50% probability of limiting global temperature rise to 1.65°C, assuming no extensive net negative emissions. With some net negative emissions after 2070, temperature rise could be reduced to 1.5°C by 2100.
- IEA APS: IEA’s Announced Pledges Scenario (APS) takes account of all climate commitments made by governments around the world including Nationally Determined Contributions (NDCs) as well as longer-term net-zero targets and assumes they will be met in full and on time. The global emissions difference between the APS and the NZE represents the “ambition gap” that needs to be closed for governments to achieve the goals agreed in the 2015 Paris Agreement.
- IEA STEPS (previously IEA NPS): IEA’s Stated Policies Scenario (STEPS) does not take for granted that governments will meet all announced goals. It instead looks at where the energy system might go without additional policy implementation, looking at existing policies and measures and those under development. The global emissions difference between the STEPS and the APS represents the “implementation gap” that needs to be closed for governments to achieve their announced decarbonization targets.
- IEA CPS: IEA’s Current Policies Scenario (CPS) includes only existing energy policies. This default setting for the energy system is a benchmark against which the impact of “new” policies can be measured.
- Greenpeace: Refers to the Advanced Energy [R]evolution scenario. Based on Greenpeace’s basic Energy [R]evolution scenario, which includes significant efforts to exploit opportunities for energy efficiency, along with large-scale integration of renewables, biofuels, and hydrogen into the energy mix, the Advanced Energy [R]evolution scenario sets out an ambitions pathway towards a fully decarbonized energy system by 2050 through much stronger efforts to move energy towards a 100% renewable energy supply. Consumption pathways remain similar to the basic scenario, but faster introduction of technologies leads to complete decarbonization. The IEA’s Current Policies Scenario serves as the reference point in the development of Greenpeace’s Advanced Energy Revolution scenario.
- DDP: The Deep Decarbonization Pathways (DDP) initiative builds and brings to the public debate realistic decarbonization pathways to 2050. These are designed to deeply reduce carbon emissions while satisfying socio-economic objectives. The pathways are developed country by country, considering in each case the specific context and highlighting key drivers of the transformation and their potential effects.
- IRENA: IRENA’s REmap determines the potential for countries, regions and the world to scale up renewables in order to ensure an affordable and sustainable energy future. REmap assesses worldwide renewable energy potential assembled from the bottom-up, starting with country 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.
- BNEF NEO: Bloomberg New Energy Finance’s (BNEF) New Energy Outlook (NEO) focusses on the annual long-term economic analysis of the world’s power sector out to 2050. 2021’s edition presents three scenarios that are aligned with the Paris Agreement, achieving net-zero emissions in 2050. The Green Scenario is a net-zero pathway where so-called ‘green hydrogen’ complements greater electricity use, recycling and bioenergy. The Grey Scenario assumes greater use of electricity and renewable power is complemented by carbon capture and storage technology and allows for the continued use of some fossil fuels. The Red Scenario assumes smaller, modular nuclear is deployed to complement wind, solar and battery technology in the power sector, with dedicated nuclear plants manufacturing so-called “red hydrogen”.
- NGFS scenarios Framework [Financial services only]: To facilitate the uptake of climate scenario analysis by central banks, financial regulators, and the larger financial community, the NGFS developed a global set of scenarios and published guidance on conducting such analysis.
- RCP 1.9: Representative Concentration Pathway (RCP) 1.9 is the IPCC’s lowest emission pathway that focuses on limiting warming to below 1.5°C by the end of the century, which is the aspirational goal of the Paris Agreement. RCPs provide a quantitative description of atmospheric pollutions over time, as well as radiative forces in 2100. In RCP 1.9, radiative forcing is limited to no more than 1.9 W/m2 above pre-industrial levels.
- RCP 2.6: In RCP 2.6, radiative forcing peaks at 3.1 W/m2 before returning to 2.6 W/m2 by 2100, achieved through; a shift to renewable energy sources; CO2 remaining at today’s level until 2020, then decline and becoming negative in 2100; and CO2 concentrations peaking by 2050, followed by a modest decline to around 400 ppm by 2100.
- RCP 3.4: RCP 3.4 represents the IPCC’s intermediate pathway between the very stringent RCP2.6 and the less stringent mitigation efforts associated with RCP4.5.
- RCP 4.5: RCP 4.5 represents one of IPCC’s intermediate stabilization pathways in which radiative forcing is stabilized at approximately 4.5 W/m2 after 2100.
- RCP 6.0: RCP 6.0 represents one of IPCC’s intermediate stabilization pathways in which radiative forcing is stabilized at approximately 6.0 W/m2 after 2100.
- RCP 7.0: RCP 7.0 consists of a baseline outcome rather than a mitigation target, and represents the medium-to-high end of the range of future emissions and warming resulting from no additional climate policy.
- RCP 8.5: RCP 8.5 represents the IPCC’s high-end pathway in which radiative forcing reaches greater than 8.5 W/m2 by 2100, and continues to rise for some time afterwards.
- Transition risks
- Current and emerging regulation – policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change;
- Technology – all risks associated with technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic system;
- Legal – all climate-related litigation claims;
- Market – all shifts in supply and demand for certain commodities, products, and services;
- Reputation – all risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy.
- Physical risks
- Acute – risks that are event-driven, including increased severity of extreme weather events, such as cyclones, hurricanes, or floods;
- Chronic – longer-term shifts in climate patterns (e.g., sustained higher temperatures) that may cause sea level rise or chronic heat waves.
Additional information
IEA Energy Technology Perspectives (ETP)
International Energy Agency (IEA)’s comprehensive publication on energy technology focuses on the opportunities and challenges of scaling and accelerating the deployment of clean energy technologies. Additional information on this publication can be found here.
Critical uncertainties
Identified using a process of scaling potential impacts and uncertainties, those meeting high for both impact and uncertainty should be considered ‘critical uncertainties’ and the basis for the development of scenarios. A common process for identifying critical uncertainties is the development of an impact/uncertainty grid. Further information on critical uncertainties can be found in CDP’s technical note on Scenario Analysis.
(C3.2b) Provide details of the focal questions your organization seeks to address by using climate-related scenario analysis, and summarize the results with respect to these questions.
Question dependencies
This question only appears if you select “Yes, qualitative”, “Yes, quantitative”, “Yes, qualitative and quantitative” or “Yes, qualitative, but we plan to add quantitative in the next two years” in response to C3.2.
Change from last year
New question
Rationale
Scenario analysis should be based on concise focal questions that provide direction for the analysis, and the results inform an organization’s decisions and actions. Providing this information to CDP data users gives insight into why your organization is using scenario analysis and how the results have impacted your organization’s strategy.
Connection to other frameworks
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:
Focal questions | Results of the climate-related scenario analysis with respect to the focal questions |
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Text field [maximum 3,000 characters]
| Text field [maximum 3,000 characters] |
Requested content
General
- In this question you should provide a single response based on all scenarios disclosed in C3.2a.
Focal questions (column 1)
- List the focal question(s) that provided direction to your climate-related scenario analysis. See “Additional information” for further guidance on focal questions.
- Provide a rationale for selecting the scenarios disclosed in C3.2a to address the focal question(s).
Results of the climate-related scenario analysis with respect to the focal questions (column 2)
- Provide a company-specific summary of the results of the scenario analysis, and how the results have informed your decisions and actions, with respect to the focal question(s).
- You may also describe how the results of the climate-related scenario analysis have influenced your business strategy and financial planning more broadly.
Note for energy sectors:
- Discuss in particular whether your focal questions address the exposure of current investments in new reserves and/or assets to the risk of lower demand and stranded assets; how current and future capital expenditure may be affected by short-to-long term risk of stranded assets, and what probability/likelihood you assign to that risk. You should also discuss how you have considered your organization’s energy outlook in the scenario analysis, and whether you tested the flexibility of your strategy to adjust to significant changes in the demand for your products.
Note for financial services sector companies:
- Banks:
- Banks should consider providing a discussion of how climate-related scenarios are used, such as to inform credit and exclusion policies.
- Asset Managers/Asset owners:
- Asset managers should consider describing how they use climate-related scenarios, for example to better understand how climate-related issues inform relevant products or investment strategies.
- Asset owners should consider providing a discussion of how climate-related scenarios are used, such as to inform investments in specific assets.
- Insurance companies:
- Insurance companies should consider describing how they use climate-related scenarios, for example to inform insurance premiums and capital requirements.
Explanation of terms
- Focal question(s): The critical questions or potential decisions that a company seeks to address.
Additional information
Problem Definition: “Define the focal question(s)” – from section 2.2, step 2 of the TCFD Guidance on Scenario Analysis:
“This step is important because focal questions are a key anchor point for many of the decisions made during scenario development and analysis. In thinking about focal questions, a company is seeking to flesh out the focus of scenario analysis around the broad question of “how could climate change plausibly affect our [company, business unit, product, commodity input, customer segment], what should we do, and when?” Some questions a company should consider are as follows:
- What possible future developments need to be probed?
- What variables are needed to support decision-making?
- What forces and developments have the greatest ability to shape future performance?”
(C3.3) Describe where and how climate-related risks and opportunities have influenced your strategy.
Question dependencies
This question only appears if you select any option except “No, and our strategy has not been influenced by climate-related risks and opportunities” in response to column 1 of C3.1.
Change from last year
Revised question dependency
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
|
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
|
|
|
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;
- Asset managers/Asset owners:
- Under” Supply chain and/or value chain” describe how climate-related risks and opportunities are factored into your investment strategies and investee selection.
- Also describe how each product or investment strategy may be affected by the transition to a lower-carbon economy.
- Describe the potential impacts of
climate-related risks and opportunities on your core businesses,
products and services, including:
- Information at the business division, sector or geography levels;
- As asset owners, insurance companies
should describe how climate-related risks and opportunities are
factored into relevant investment strategies – in the business’ value
chain. This could be described from the perspective of the total fund or
investment strategy or individual investment strategies for various
asset classes.
Explanation of terms
Note for financial services sector companies:
- Products and services: All products and services in the organization’s lending, investing and insurance underwriting business as well as other products and services including financial intermediary activities that are not part of core financing activities such as financial guarantees, M&A, securities underwriting, bond issuance, etc.
- Therefore, if climate-related risks and opportunities influenced your bank lending or insurance underwriting strategy, you should select “Yes” or “Yes, for some” as appropriate for “Products and services”.
Example response
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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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
|
Since we source 80% of our raw materials from drought-prone India and severe water stress is increasing every year, we have started placing more emphasis on conducting risk assessments for extreme weather events. In December 2019, the Board decided to employ a team of external consultants to work on developing a supply chain transparency tool. This tool will allow us to gather important information about our supply network (including sub-tier suppliers), so that we can better assess our vulnerability to natural disasters and other risks across our global supply chain. The supply chain transparency tool is expected to be fully functional by September 2020 and will be central in informing our supply chain strategy going forward.
|
Investment in R&D
|
No
|
Climate-related risks and opportunities have not yet influenced our R&D investment strategy, as we are initially focused on evaluating the risks and opportunities relating to our operations, supply chain and existing products and services, ensuring our business strategy is aligned in accordance with these. We expect to begin evaluating the impact of risks and opportunities on our R&D expenditures in 2020.
|
Operations
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Yes
|
National and sub-national jurisdictions that account for about half of the global economy now have carbon pricing systems (as disclosed in C2.3a Risk 2). This trend is on the rise and could result in increased operational costs for our company. For example, a carbon price of €32/ton would increase our operational costs to €25.1m in Europe. This has led to our Board's strategic decision to join RE100 and commit to transition to 100% renewable electricity by 2030, with an intermediary step of 40% by 2022. In 2019, 38 of our production sites in Europe ran on 100% renewable energy and we purchased 37% of our total electricity from renewable sources such as wind farms and hydropower plants (compared with 22% in 2018). As part of this strategy, all our new plants will have renewable power generation facilities on site.
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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 any option except “No, and our strategy has not been influenced by climate-related risks and opportunities” in response to column 1 of C3.1.
Change from last year
Revised question dependency
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
|
Text field [maximum 7,000 characters]
|
Requested content
General
- Climate-related issues can affect several important aspects of an organization’s financial position, both now and in the future. For example, climate-related issues may have implications for an organization’s capital expenditures. In turn, capital expenditures will determine the nature and amount of fixed assets, how these depreciate over time and the proportion of debt and equity to be funded on an organization’s balance sheet. Climate-related issues may also carry implications for future cash flows (operating, investing, and financing activities). This question seeks to establish whether climate-related issues have already had implications on your financial planning.
Description of influence (column 2):
- Provide details on how climate-related risks and opportunities have influenced the selected elements of your financial planning. Include a case study for at least one of the elements selected. For example, if you have disclosed substantive climate-related risks or opportunities in questions C2.3a or C2.4a, you may provide details of how the risk or opportunity has affected the financial planning element selected in column 1.
- Specify the time horizons this planning covers.
- If you selected “None of the above”, explain if there is another element of financial planning that has been influenced; or why climate-related risks and opportunities have not yet influenced your financial planning.
Note for financial services sector companies:
The climate-related risks and opportunities to be considered in this question refer to lending, financial intermediary, investment and/or insurance underwriting activities of your organization, in addition to your operational activities.
- Banks:
- Describe the potential financial impacts of the identified climate-related risks and opportunities on your core businesses, products and services. For example, you may do this by translating climate risk data into probability of default, total committed exposure and/or exposure at default.
- Asset managers/Asset owners:
- Where appropriate, describe how climate-related risks and opportunities may affect the financial returns of relevant products or investment strategies.
- Asset managers should also describe how each product or investment strategy might be affected by the transition to a lower-carbon economy.
- Insurance companies:
- Describe the potential financial impacts of climate-related risks and opportunities on your core businesses, products and services. For example, you may do this by translating climate risk data into probability of default and/or exposure at default.
- As asset owners, insurance companies should describe how climate-related risks and opportunities may affect the financial returns of investment strategies. This could be described from the perspective of the total fund or investment strategy or individual investment strategies for various asset classes.
Explanation of terms
- Financial planning: in line with the TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
- Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Indirect costs: Also known as 'operating cost' or 'overheads'. This generally refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Capital allocation: refers to distributing and investing a company's financial resources in ways that will increase its efficiency, and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.
- Capital expenditure: Capital expenditure is a measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
- Acquisition: Obtaining ownership and control by one firm, in whole or in part, of another firm or business entity.
- Divestment: A process for selling assets for financial, environmental, political or social goals. In the progression to a low-carbon economy, organizations are recognizing climate-related transition and physical risks posed to minimize exposure to stranded assets (assets that have suffered unanticipated or premature write-downs, devaluations or conversion to liabilities).
- Access to capital: Cash flows from sources other than an organization’s sales and other revenues. It includes cash infusions from investors or securing lines of credit with banks and other lenders.
- Assets: Entities functioning as stores of value and over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them, over a period of time (the economic benefits consist of primary incomes derived from the use of the asset and the value, including possible holding gains/losses, that could be realized by disposing of the asset or terminating it).
- Liabilities: An obligation which requires one unit (the debtor) to make a payment or a series of payments to the other unit (the creditor) in certain circumstances specified in a contract between them.
- Provisions or general reserves [Financial services only]: Balance sheet items representing funds set aside by the organization as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord.
- Claims reserves [Financial services only]: Balance sheet reserve specifically set aside by insurance companies to pay policyholders who have filed or are expected to file legitimate claims on their policies. Consider both reported but not settles (RBNS) and incurred but not reported (IBNR) reserves.
Example Response
Financial planning elements that have been influenced
|
Description of influence
|
Capital expenditures
|
In 2017 our organization introduced an internal price on carbon into our capital expenditures approval process, with the aim to redirect investments towards clean technologies, lower-carbon solutions, and renewable energy projects across our operations and supply chain. We conducted a benchmark study and decided to set the price at a relatively high level, 36€/tCO2e, to internalize the potential future cost of carbon in the long term. Returns on investments are assessed with the impact of the carbon implication. This enables management to arbitrate between different options and to choose the most virtuous and efficient ones in order to achieve our organization’s strategic goals. This is a long-term measure, and the price will be periodically reviewed and updated. As a direct result of this implemented internal price on carbon we have approved a project of installing solar panels in our factories in Spain that will reduce our demand for purchased energy by 30% in the next 5 years.
|
(C3.5) In your organization’s financial accounting, do you identify spending/revenue that is aligned with your organization’s transition to a 1.5°C world?
Question dependencies
This question only appears if “Yes, we have a transition plan which aligns with a 1.5°C world” is selected in column 1 of C3.1.
Change from last year
New Question
Rationale
From a climate mitigation point of view, identifying the spending and revenue that is compatible with a 1.5°C world is a pre-requisite to understanding the extent to which organizations are aligning their finances with their climate transition plan.
Response options
Select from:
- Yes
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
Requested content
General
- Select “Yes” if, in your financial statements, you identify spending/revenue that is compatible with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures. See “Explanation of Terms” for more information.
- It is up to each company to determine what is considered to be aligned with your organization’s transition to a 1.5°C world, but for example:
- Revenue derived from the sale of low-carbon products or services as defined by recognized taxonomies (e.g. The EU Taxonomy for environmentally sustainable economic activities, Climate Bonds Taxonomy, The IEA Energy Technology Perspectives Clean Energy Technology Guide, etc.) could be considered to be aligned with a 1.5°C world. If you clearly distinguish in your financial statements the revenue generated from the sale of low-carbon products, as opposed to higher-emitting products, you should select “Yes”.
- Spending on the implementation of emissions reduction initiatives and/or investment in new low-carbon assets could be considered to be aligned with a 1.5°C world. If you clearly distinguish in your financial statements the spending which is related to decarbonizing your operations to align with a net-zero by 2050 or sooner pathway, as opposed to spending that would prevent you from reaching net-zero by 2050 (e.g. investment in new high -emitting assets), you should select “Yes”.
- You will have the opportunity to provide further details in the subsequent question.
Explanation of terms
- Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5. Please refer to the CDP Climate Transition Plan technical note for more details.
- Alignment with a 1.5°C world: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5). According to the Science-based Targets initiative, aligning with a 1.5°C world currently means reducing Scope 1, 2 and 3 emissions to zero or close to zero and neutralizing any residual emissions by 2050 at the latest.
(C3.5a) Quantify the percentage share of your spending/revenue that is aligned with your organization’s transition to a 1.5°C world.
Question dependencies
This question only appears if “Yes” is selected in response to C3.5.
Change from last year
New question
Rationale
Data users are interested in understanding how your current and future spending and revenue is aligned with a 1.5°C world. This question provides data users with transparency on your climate transition plan in financial terms.
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.
Financial metric
|
Percentage share of selected financial metric aligned with a 1.5°C world in the reporting year (%)
|
Percentage share of selected financial metric planned to align with a 1.5°C world in 2025 (%)
|
Percentage share of selected financial metric planned to align with a 1.5°C world in 2030 (%)
|
Describe the methodology used to identify spending/revenue that is aligned with a 1.5°C world
|
Select from:
- Revenue
- CAPEX
- OPEX
- Other, please specify
|
Percentage field [enter a percentage from 0-100]
|
Percentage field [enter a percentage from 0-100]
|
Percentage field [enter a percentage from 0-100]
|
Text field [maximum 4,000 characters]
|
[Add row]
Requested content
General
- This question aims to understand your organization’s unique financial pathway to transition your company to a business model compatible with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures.
- It is up to each company to select the relevant financial metric(s) and methodology(ies) for identifying the alignment of its expenditures/revenues with its climate transition plan. The non-exhaustive list of examples include:
- Revenue derived from the sale of low-carbon products or services as defined by recognized taxonomies (e.g. The EU Taxonomy for environmentally sustainable economic activities, Climate Bonds Taxonomy, The IEA Energy Technology Perspectives Clean Energy Technology Guide, etc.) could be included in the percentage share aligned with a 1.5°C world.
- Spending on the implementation of emissions reduction initiatives and/or investment in new low-carbon assets could be included in the percentage share aligned with a 1.5°C world. Equally, R&D spending for new low-carbon products and/or services as defined by recognized taxonomies (e.g. Climate Bonds Taxonomy, The IEA Energy Technology Perspectives Clean Energy Technology Guide, etc.) could be included in the percentage share aligned with a 1.5°C world.
- Spending/revenue that is related to activities which do not directly contribute to your organization’s climate transition (e.g. revenue from sales of equipment used in both low-carbon and high-emitting assets etc.) should not be included in the percentage share aligned with a 1.5°C world.
- You can make your response more granular by adding multiple rows and selecting “Other, please specify”. For example, if in addition to total OPEX, you wish to report several distinct categories of OPEX (e.g. utilities, business travel, R&D expenses, etc.) separately, you may do so by adding multiple rows and using “Other, please specify” to specify the relevant OPEX category.
- If you are reporting any type of spending on or revenue from low-carbon products and/or services, specify in column 5 whether it pertains to mature technologies or non-mature technologies (e.g., if you finance Emerging Climate Technologies). If this pertains to both mature and non-mature technologies, please provide the breakdown for these.
- Note that this question requests information on spending/revenue that relates to climate mitigation, not climate adaptation.
- It is acknowledged that figures for future years will be estimates. Assumptions underlying these estimates should be disclosed in column 5.
Financial metric (column 1)
- Add a row for each financial metric you would like to provide information for.
- Select “Other, please specify” to provide information for a financial metric that is not listed.
Percentage share of selected financial metric aligned with a 1.5°C world in the reporting year (%) (column 2)
- Enter the spending/revenue that you consider to be aligned with your organization’s climate transition for this financial metric as a percentage of your total spending/revenue for this financial metric in the reporting year.
- This figure should be based on your company-wide financial statement for the reporting year, consistent with your organizational boundary as disclosed in C0.5.
Percentage share of selected financial metric planned to align with a 1.5°C world in 2025 (%) (column 3)
- Enter the spending/revenue for this financial metric that you plan to align with your organization’s climate transition as a percentage of your total planned spending/revenue for this financial metric in 2025.
Percentage share of selected financial metric planned to align with a 1.5°C world in 2030 (%) (column 4)
- Enter the spending/revenue for this financial metric that you plan to align with your organization’s climate transition as a percentage of your total planned spending/revenue for this financial metric in 2030.
Describe the methodology used to identify spending/revenue that is aligned with a 1.5°C world (column 5)
- Provide the criteria used to determine the alignment of the spending/revenue with your organization’s transition to a business model compatible with a 1.5°C world.
- Provide examples of the activities, assets, technologies, products and/or services for which you classified the associated spending/revenue as aligned with a 1.5°C world.
- You may also provide examples of activities, assets, technologies, products and/or services for which you did not classify the associated spending/revenue as aligned with a 1.5°C world.
- Comment on how your organization’s spending/revenue that is aligned with a 1.5°C world is estimated to change over time and describe the assumptions underlying the estimation.
Explanation of terms
- Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5. Please refer to the CDP Climate Transition Plan technical note for more details.
- Alignment with a 1.5°C world: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5). According to the Science-based Targets initiative, aligning with a 1.5°C world currently means reducing Scope 1, 2 and 3 emissions to zero or close to zero and neutralizing any residual emissions by 2050 at the latest.
- Emerging Climate Technology (ECT): a commercially promising technology that addresses climate mitigation challenges but needs to attract enough investment to deploy the technology and develop business models and markets for the product or services it produces. Eventually it may become a successful innovation deployed at scale, generating new markets or profoundly disrupting established (fossil-based) ones (Auerswald et al., 2005). For a more detailed definition and guidance, refer to the ECT initiative.
Example response
Financial Metric
|
Percentage share of selected financial metric aligned with a 1.5°C world in the reporting year (%)
|
Percentage share of selected financial metric planned to align with a 1.5°C world in 2025 (%)
|
Percentage share of selected financial metric planned to align with a 1.5°C world in 2030 (%)
|
Describe the methodology used to identify spending/revenue that is aligned with a 1.5°C world
|
Company A Response
Revenue
|
2%
|
4%
|
30%
|
Our automobile manufacturing business currently produces both vehicles with internal combustion engines and electric vehicles. We have accounted as ‘aligned with a 1.5°C world’ the revenue generated from sales of electric vehicles only. We estimate that our revenue from EVs will increase in the future due to regulatory requirements and shifting consumer preferences. To estimate the percentage share in 2025 and 2030 we modelled the results from a recent consumer survey. To estimate the demand of EV vehicles in different jurisdictions we carried out a policy analysis and modelled the emergence of future regulations. In our calculation we excluded revenues from ICE vehicles and revenues from sales of equipment used in both ICE and EVs, as we classed such equipment as neutral.
|
Company B Response
CAPEX
|
10%
|
23%
|
42%
|
We currently generate energy from both renewable energy and fossil fuel energy generation facilities. We have accounted only the CAPEX associated with our renewable energy assets as ‘aligned with a 1.5°C world’. As part of our net-zero by 2045 commitment, we intend to triple our renewable energy capacity by 2030 and exit our coal generation by 2025 and gas generation by 2040. We are therefore planning to increase the CAPEX associated with renewables from 10% to 42% of our total CAPEX by 2030.
|
Company C Response
Other, please specify (OPEX - R&D expenses)
|
18%
|
30%
|
60%
|
Alongside our dairy business, we produce plant-based milks and yogurt. We have accounted the R&D expenses related to these plant-based products as ‘aligned with a 1.5°C world’. R&D expenses are accounted for in our financial statements as a subset of OPEX. Based on trends over the last ten years, we anticipate consumer demand for our plant-based products to continue to increase over time. Therefore, we estimate that the share of our total R&D that is on plant-based dairy alternatives will increase to 60% by 2030 to meet this demand.
|
Business strategy: Financial services
(C-FS3.6) Does the policy framework for your portfolio activities include climate-related requirements for clients/investees, and/or exclusion policies?
Change from last year
Modified question
Rationale
Considering climate-related issues in an organization’s policy framework is an important element of business strategy and a signal of how deeply climate-related issues are embedded in an organization’s processes. For these reasons, data users are interested in understanding whether organizations in the financial sector have integrated climate-related requirements for clients/investees and whether they have implemented any climate-related exclusion policies.
Connection to other frameworks
NZAM (FS only)
Commitment 7
Response options
Select one of the following options:
- Yes, our policies include climate-related requirements that clients/investees need to meet
- Yes, we have exclusion policies for industries and/or activities exposed or contributing to climate-related risks
- Yes, our framework includes both policies with client/investee requirements and exclusion policies
- No, but we plan to include climate-related requirements and/or exclusion policies in our policy framework in the next two years
- No, and we do not plan to include climate-related requirements and/or exclusion policies in our policy framework in the next two years
Requested content
General
- Indicate whether you include climate-related issues in the policy framework of your organization and whether this is related to:
- Climate-related requirements for clients/investees, or
- Exclusion policies based on climate-related issues.
- Subsequent questions ask for more details on these policies.
Explanation of terms
- Policy framework: Policies that set out a set of procedures or goals that guide an organization’s decision-making processes in relation to its financing activities. Examples of such policies could include credit policy, risk policy, investment, underwriting policy, etc.
- Exclusion policy: A provision that eliminates bank lending and/or insurance underwriting coverage for certain industries and/or activities based on specific criteria. For investors, it means the exclusion of certain industries/activities from investment portfolios. Exclusion policies may be framed in the context of a financial sector organization’s negative screening processes.
(C-FS3.6a) Provide details of the policies which include climate-related requirements that clients/investees need to meet.
Question dependencies
- This question only appears if you select “Yes, our policies include climate-related requirements that clients/investees need to meet” or “Yes, our framework includes both policies with client/investee requirements and exclusion policies” in response to C-FS3.6.
- Rows in this question will be presented according to the organizational activities reported in C-FS0.7.
Change from last year
Modified question
Rationale
To help manage climate
related risks, organizations should integrate climate-related issues into
existing policy frameworks. These policies may apply across the organization
and may be based on sectors, geographies, business lines, asset classes or
other. Although the wave of climate-related policies and regulations is
growing, their implementation varies across organizations. This question helps
data users understand which corporate policies integrate climate-related issues,
and what proportion of a financial services sector company’s portfolio is
covered by the policy.
Connection to other frameworks
NZAM (FS only)
Commitment 7
Commitment 3
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio* | Type of policy* | Portfolio coverage of policy | Policy availability | Attach documents relevant to your policy | Criteria required of clients/investees | Value chain stages of client/investee covered by criteria | Timeframe for compliance with policy criteria | Industry sectors covered by the policy | Exceptions to policy based on* | Explain how criteria coverage and/or exceptions have been determined |
---|
Select from:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
| Select all that apply:
Banking:
- Credit/lending policy
- Risk policy
- Underwriting policy
- Policy related to other products and services
- Engagement policy
- Pricing policy
- Other, please specify
Investing:
- Credit policy
- Risk policy
- Sustainable/Responsible Investment Policy
- Investment policy/strategy
- Policy related to other products and services
- Proxy voting
- Engagement policy
- Active ownership policy
- Pricing policy
- Other, please specify
Insurance:
- Risk policy
- Insurance underwriting policy
- Policy related to other products and services
- Engagement policy
- Pricing policy
- Other, please specify
| Percentage field [enter a percentage 0-100] | Select from:
- Publicly available
- Not publicly available
| [Attachment functionality] | Select all that apply:
- Disclosure of Scope 1 emissions
- Disclosure of Scope 2 emissions
- Disclosure of Scope 3 emissions
- Disclosure of product-related emissions
- Set a science-based emissions reduction target
- Set an emissions reduction target
- Be on track to achieving a science-based emissions reduction target
- Develop a climate transition plan
- Other, please specify
- No criteria required
| Select from:
- Direct operations only
- Direct operations and supply chain
| Select from:
- Complying with criteria is a pre-requisite for business
- Clients/investees must be compliant within the next year
- Clients/investees must be compliant within the next 2 years
- Clients/investees must be compliant within the next 5 years
- No timeframe
| Select all that apply:
- Energy
- Materials
- Capital Goods
- Commercial & Professional Services
- Transportation
- Automobiles & Components
- Consumer Durables & Apparel
- Consumer Services
- Retailing
- Food & Staples Retailing
- Food, Beverage & Tobacco
- Household & Personal Products
- Health Care Equipment & Services
- Pharmaceuticals, Biotechnology & Life Sciences
- Software & Services
- Technology Hardware & Equipment
- Semiconductors & Semiconductor Equipment
- Telecommunication Services
- Media & Entertainment
- Utilities
- Real Estate
- Other, please specify
| Select all that apply:
- Geography
- Subsidiaries
- Industry sector
- Line of Business
- Products and services
- Transaction size
- Segment of the value chain
- Other, please specify
| [Text field, 2,500 characters] |
[Add row]
Requested content
General
- You should add a row for each portfolio presented in column 1
- If you have policies with different specifics in a single portfolio, add a separate row for each type of policy.
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7.
Type of policy (column 2)
- The options which appear are driven by the row selected in column 1.
Portfolio coverage of policy (column 3)
- Specify the coverage of your portfolio based on the portfolio value this policy applies to.
- Coverage by portfolio value can be based on either total or outstanding commitments, premiums, committed capital and/or other.
Policy availability (column 4)
- Indicate whether the selected policy is available to the general public or not.
Criteria required of clients/investees (column 6)
- Select all the criteria which you require from your clients/investees, for example, indicate if you require your clients/investees to set science-based targets.
- Criteria can refer to actions that must be taken, requirements that must be fulfilled, or to other possible criteria which clients/investees must fulfil.
- Select “Other, please specify” to add any criteria not listed.
Value chain stages of client/investee covered by criteria (column 7)
- Indicate whether the criteria listed in column 6 is applicable to clients/investees operational activities only, or whether the criteria must also be fulfilled in their supply chain.
Timeframe for compliance with policy criteria (column 8)
- If your timeframe for compliance does not match any of the options exactly, select the closest option.
Exceptions to policy based on (column 10)
- This column appears if you enter any value lower that 100% in column 3.
Explain how criteria coverage and/or exceptions have been determined (column 11)
- Explain how you calculated the percentage of portfolio coverage in column 3
- Provide details of the exception criteria you selected in column 10 and explain why you chose these specific exceptions, if applicable.
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(C-FS3.6b) Provide details of your exclusion policies related to industries and/or activities exposed or contributing to climate-related risks.
Question dependencies
This question only appears if you select “Yes, we have exclusion policies for industries and/or activities exposed or contributing to climate-related risks” or “Yes, our framework includes both policies with client/investee requirements and exclusion policies” in response to C-FS3.6.
Change from last year
Modified question
Rationale
Exclusion policies are an
element of financial sector companies’ negative screening processes to reduce
portfolio exposure to climate-vulnerable projects and/or investments, and to implement
climate-related commitments. Data users are interested
in understanding the types of climate-related policy exclusions and
the impact these exclusions have had or will have on the organizations’ exposure.
Connection to other frameworks
NZAM (FS only)
Commitment 7
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio* | Type of exclusion policy | Year of exclusion implementation | Timeframe for complete phase-out | Application | Country/Region the exclusion policy applies to | Description |
---|
Select all that apply:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
| Select all that apply:
- All fossil fuels
- All Coal
- Thermal coal
- Fuel from liquified coal
- Coal mining
- Mountaintop removal mining
- Power from coal
- All oil & gas
- Oil from tar sands
- Oil from shale
- Gas from shale
- Arctic oil and gas
- Ultra-deepwater oil and gas
- Fracked oil and gas
- Liquified natural gas
- Other, please specify
| Numerical field [enter a number between 1900- 2021] | Select from:
- Already phased out
- By 2025
- By 2030
- By 2040
- By 2050
- Other, please explain
| Select all that apply:
- New business/investment for new projects
- New business/investment for existing projects
- Existing business/investment for existing projects
- Other, please specify
| Select all that apply:
- Select all that apply from a drop-down list of countries and regions. Please see the Technical Note "Countries and Regions" for details around the available regions and their constituent countries.
- Other, please specify
| Text field [maximum 2,500 characters] |
[Add row]
Requested content
General
- You should add a row for each portfolio presented in column 1.
- If you have exclusion policies with different specifics in a single portfolio, add a separate row for each type of exclusion policy.
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7.
Timeframe for complete phase-out (column 4)
- If you select “Other, please explain” in this column please specify your timeframe for complete phase-out in the format ‘By YYYY’, for example ‘By 2070’.
Application (column 5)
- Indicate what type of projects and/or investments the policy applies to, whether it’s for new or existing projects.
- Selecting “New business for new projects” implies that you would decline to participate in a financing, investment or insurance for a new project that was covered by the exclusion, but may still participate in business for a project in which you were already a lender, investor or insurer.
- Selecting “New business for existing projects” implies that you would decline to participate in business for a project covered by the exclusion, even if you were already a lender, investor or insurer.
Description (column 7)
- Describe the exclusion threshold (industry classification, company exposure, revenue, production, or other), the asset classes/product types/business division the policy applies to, as well as the impact the policy has had on your exposure to the subject of the policy.
- The impact on exposure may be expressed as the change in the proportion of your portfolio exposed to the subject of the policy from the baseline (year of implementation).
Explanation of terms
- Exclusion policy: A provision that eliminates bank lending and/or insurance underwriting coverage for a certain type of projects and/or companies based on a specific criterion. For investors, it means the exclusion of certain businesses from investment portfolios. Exclusion policies may be framed in the context of a financial sector company’s negative screening processes.
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(C-FS3.6c) Why does the policy framework for your portfolio activities not include climate-related requirements for clients/investees, and/or exclusion policies?
Question dependencies
This question only appears if you select anything but “Yes, our framework includes both policies with client/investee requirements and exclusion policies” in C-FS3.6.
Change from last year
Minor change
Rationale
Including climate-related requirements in an organization’s policy framework is an important element of business strategy and a signal of how deeply climate-related issues are embedded in an organization’s processes. For these reasons, data users are interested in understanding the reasons why organizations in the financial sector have not included climate-related requirements for clients/investees into their existing financial activity policy frameworks and why they have not implemented any climate-related exclusion policies.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
Your response should be company-specific and include:
- Why climate-related requirements are not included in the policy framework of your organization, and;
- A description of any plans for such policies in the future.
and/or - Why climate-related exclusion policies are not included in the policy framework of your organization, and:
- A description of any plans for such policies in the future
(C-FS3.7) Does your organization include climate-related requirements in your selection process and engagement with external asset managers?
Question dependencies
This question only appears if you selected “Yes” in column 2 for the rows “Investing (Asset Manager)” and/or “Investing (Asset Owner)” in C-FS0.7.
Change from last year
Modified question
Rationale
For asset owners and managers working with external funds, the external asset managers have a significant impact on investment strategies and objectives. Including climate-related requirements into the selection of and engagement with external asset managers ensures that these investment strategies and objectives are aligned with the organization’s business strategy.
Connection to other frameworks
TCFD
Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
NZAM (FS only)
Commitment 7
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Climate-related requirements included in selection process and engagement with external asset managers
|
Primary reason for not including climate-related requirements in selection process and engagement with external asset managers*
|
Explain why climate-related requirements are not included in selection process and engagement with external asset managers and your plans for the future*
|
Select from:
- Yes
- No, but we plan to include climate-related requirements in the next two years
- No, and we do not plan to include climate-related requirements in the next two years
- Not applicable, because we do not have externally managed assets
|
Select from:
- Important but not an immediate priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- No instruction from management
- Other, please specify
|
[Text field, 2,500 characters]
|
Requested content
Primary reason for not including climate-related requirements in selection process and engagement with external asset managers (column 2)
- This column is only presented if any “No…” option is selected in column 1.
- You can describe reasons why you do not include climate-related requirements in selection processes and engagement with external asset managers in column 3.
Explain why climate-related requirements are not included in selection process and engagement with external asset managers and your plans for the future (column 3)
- This column is only presented if any “No…” option is selected in column 1.
- Your response should be company-specific and include why your organization does not consider climate-related requirements when selecting and engaging with asset managers.
- Briefly describe any plans you may have to address this in the future.
Explanation of terms
- External asset manager: Wealth or investment manager that works independently from the reporting organization in the financial sector.
(C-FS3.7a) Provide details of the climate-related requirements included in your selection process and engagement with external asset managers.
Question dependencies
This question only appears if you selected “Yes” in column 1 in C-FS3.7
Change from last year
Modified question
Rationale
For asset owners and managers working with external funds, the external asset managers have a significant impact on investment strategies and objectives. Including climate-related requirements into the selection of and engagement with external asset managers ensures that these investment strategies and objectives are aligned with the organization’s business strategy.
Connection to other frameworks
TCFD
Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
NZAM (FS only)
Commitment 7
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Coverage
|
Mechanisms used to include climate-related requirements in external asset manager selection
|
Describe how you monitor and engage with asset managers to ensure investment activities are consistent with your climate strategy
|
Select from:
- All assets managed externally
- Majority of assets managed externally
- Minority of assets managed externally
|
Select all that apply:
- Include climate-related requirements in investment mandates
- Include climate-related requirements in performance indicators and incentive structures
- Include climate-related requirements in requests for proposals
- Preference for investment managers with an offering of funds resilient to climate change
- Publish requirements of external investment managers in relation to climate issues
- Review investment manager’s climate performance (e.g., active ownership, proxy voting records, under-weighting in high impact activities)
- Review investment manager’s climate-related policies
- Use of external data on investment managers regarding climate risk management
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Requested content
General
- If you do not use the same mechanisms for all your assets managed externally, add a separate row for each mechanism.
Describe how you monitor and engage with asset managers to ensure investment activities are consistent with your climate strategy (column 3)
- Give a description of the key actions you take to monitor and engage with asset managers in relation to your climate strategy.
- If you selected “Other, please specify” in column 2, give further details of the mechanism and how you use it to include climate-related requirements in the external asset manager selection.
(C-FS3.8) Does your organization include covenants in financing agreements to reflect and enforce your climate-related policies?
Question dependencies
This question only appears if you select “Yes” in column 2 for the row “Banking” in C-FS0.7
Change from last year
New question
Rationale
Banks can influence their clients through requirements within the terms of financing agreements, and with the option of a default being triggered should there be a failure to comply. Data users are interested in whether banks are using this method to promote action on climate-related performance because there are potential benefits for the bank including a perceived improvement in credit profile and access to alternative pools of capital.
Response options
Please complete the following table.
Climate-related covenants in financing agreements
|
Primary reason for not including climate-related covenants in financing agreements
|
Explain why your organization does not include climate-related covenants in financing agreements and your plans for the future
|
Select from:
- Yes
- No, but we plan to include climate-related covenants in the next two years
- No, and we do not plan to include climate-related covenants in the next two years
|
Select from:
- Important but not an immediate priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- No instruction from management
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
Primary reason for not including climate-related covenants in financing agreements (column 2)
- This column is only presented if any “No…” option is selected in column 1.
Explain why your organization does not include climate-related covenants in financing agreements and your plans for the future (column 3)
- This column is only presented if any “No…” option is selected in column 1.
- Briefly describe the reasons why your financing agreements do not include climate-related covenants.
- If you plan to include climate-related covenants in the next two years, highlight the key actions you plan to take.
Explanation of terms
- Financing agreements: Legal documents defining the terms and conditions of a financing product or service between your organization, for example as lender, and your client, for example as borrower.
Additional Information
(C-FS3.8a) Provide details of the covenants included in your organization’s financing agreements to reflect and enforce your climate-related policies.
Question dependencies
This question only appears if you select “Yes” in C-FS3.8 column 1
Change from last year
New question
Rationale
Banks can influence their clients through requirements within the terms of financing agreements, and with the option of a default being triggered should there be a failure to comply. CDP data users are interested in whether banks are using this method to promote action on climate-related performance because there are potential benefits for the bank including a perceived improvement in credit profile and access to alternative pools of capital.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Types of covenants used | Asset class/product types | Please explain |
---|
Select all that apply:
- Purpose or use of proceeds clause refers to sustainable project
- Margin or pricing depends on sustainability criteria
- Minimum level of green assets mandated
- Legal mandate to obtain third party verification
- Covenants related to compliance with your policies
- Other, please specify
| Select all that apply:
- Corporate loans
- Retail loans
- Corporate real estate
- Retail mortgages
- Trade finance
- Asset finance
- Project finance
- Debt and equity underwriting
- Other, please specify
| Text field [maximum 2,500 characters] |
[Add row]
Requested content
General
- If the types of covenants used are not the same for all asset classes and/or product types, add a separate row for each distinction.
Types of covenants used (column 1)
- Select the types of covenants you have included within financing agreements.
Please explain (column 3)
- Briefly describe how the covenants and clauses you include in financing documents relate to your climate-related policies.
- Outline which types of clients you use covenants with, and why.
- Indicate the proportion of financing agreements you are including these types of covenants in, and whether you consider the proportion to be substantive to your organization.
Explanation of terms
- Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
- Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
- Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
- Debt underwriting: Financial services used by companies issuing debt securities such as bonds or syndicated loans. The underwriter commits, for a fee, to purchase the securities from the issuer with a goal of re-selling or syndicating the securities, thereby allowing the issuer to bring their securities to the marketplace.
- Equity underwriting: Financial services used by companies issuing equity, most often during an initial public offering. The underwriter commits, for a fee, to purchase shares from the issuer with a goal of re-selling those shares, thereby allowing the issuer to raise equity capital in return for an ownership position.
- Financing agreements: Legal documents defining the terms and conditions of a financing product or service between your organization, for example as lender, and your client, for example as borrower.
- Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
- Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
- Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
- Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.
C4 Targets and performance
Module Overview
Questions in this module focus on emissions and low-carbon energy targets, additional climate-related targets, net-zero targets, and details on emission reduction initiatives and low-carbon products.
Target setting provides direction and structure to environmental strategy. Providing information on quantitative targets and qualitative goals, and progress made against these targets, can demonstrate your organization’s commitment to improving climate-related issues management at a corporate level. This information is relevant to investors’ understanding of how your company is addressing and monitoring progress regarding the risks and opportunities disclosed.
Questions on emission reduction initiatives allow CDP data users to understand the organization’s commitment to reducing emissions beyond business-as-usual scenario.
Questions on low-carbon products provide valuable information to investors who are seeking to increase their investment in companies providing low-carbon and climate resilient goods and services.
Note for agricultural sectors:
The ‘Land management practices’ section includes questions around both adaptation and mitigation mechanisms adopted by companies to address climate change. This information demonstrates that organizations are committed to using practices that help reducing emissions and improve their resilience. Organizations can report up to 20 practices adopted on their land. Those practices that have brought or are expected to bring the largest benefits should be prioritized.
Key changes
- New question: [Financial services only] C-FS4.1d requests details of your portfolio targets.
- Modified questions:
- [Financial services only] C4.1 new option to select "Portfolio target"
- C4.1a and C4.1b: revised column presentation for Scope 2 and Scope 3 targets, several datapoints added to collect per-Scope data for multi-Scope targets, and two columns added on target progress and achievement.
- C4.2a revised to focus on absolute (percentage) targets, and two columns added on target progress and achievement.
- C4.2b two columns added on target progress and achievement, and revised SBTi drop-downs.
- C4.2c requests details of any planned neutralization and compensation activities.
- C4.5a requests calculation details of any avoided emissions estimations for the low-carbon product(s) or service(s).
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 last year
Modified question
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 all that apply:
- Absolute target
- Intensity target
- Portfolio target [FS only]
- No target
Requested content
General
- Targets that are based on a future “business as usual” year are not equivalent to emissions reduction targets and therefore should not be reported here. Acceptable targets must determine emissions reductions through comparison to a set base year in the past, not to a projected “business as usual” emissions figure in the future.
- You have an “active target” if the target ends in or after the reporting year and the target is to reduce absolute emissions or emissions intensity.
- Absolute target: an absolute target describes a reduction in actual emissions in a future year when compared to a base year. The target can relate to your Scope 1, Scope 2 and/or Scope 3 emissions in full or in part.
- Intensity target: an intensity target describes a future reduction in emissions that have been normalized to a business metric when compared to the same normalized business metric emissions in a base year. The target can relate to your Scope 1, Scope 2 and/or Scope 3 emissions in full or in part.
- [Financial Services only] Portfolio target: a portfolio target describes a reduction of the impact of your lending, investment and/or insurance underwriting portfolios (e.g. portfolio emissions) on the climate.
Note for oil and gas sector companies:
- Investors request that companies disclose both company-wide targets and targets at the divisional level.
Note for electric utility sector companies:
- Investors request that companies disclose company-wide targets and, where applicable, at divisional level, and that intensity targets are also expressed as absolute targets where possible.
Note for transport OEMs sector companies:
- In addition to any absolute targets, companies should disclose company-wide CO2 and/or fuel economy targets for products and, where relevant, for specific markets. Targets should be expressed in grams of CO2 per kilometer.
Note for financial services sector companies:
- Consider any target types related to your lending, investment and insurance portfolios, in addition to targets related to Scope 1, Scope 2 and other Scope 3 emissions.
Note for capital goods sector companies:
- Companies should consider reporting company-wide and/or product-level Scope 3 targets, and in particular, Scope 3 targets relating to the use of sold products.
Additional information
Examples of emissions reduction targets
The following are examples of absolute targets:
- Metric tons CO2e or % reduction from base year
- Metric tons CO2e or % reduction in product use phase relative to base year
- Metric tons CO2e or % reduction in supply chain relative to base year
- Metric tons CO2e or % reduction per year
- Metric tons CO2e or % reduction relative to 5 year rolling average of emissions
- Cap on emissions in metric CO2e
The following are examples of intensity targets:
- Metric tons CO2e or % reduction per unit revenue (also per unit turnover; per unit gross sales) relative to base year
- Metric tons CO2e or % reduction per full-time employee equivalent (also per hours worked; per operating hour; per guest night; per capita; per patient days) relative to base year
- Metric tons CO2e or % reduction per unit of product (e.g. metric ton of paper; metric ton of aluminum) relative to base year
- Metric tons CO2e or % reduction per passenger kilometer (also per km; per nautical mile) relative to base year
- Metric tons CO2e or % reduction per square foot relative to base year
- Cap on emissions relative to an activity (e.g. stabilizing emissions at x metric tons CO2e per metric to of steel produced)
- Metric tons CO2e or % reduction per MWh
- Metric tons CO2e or % reduction in emissions from business flights per employee
(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.
Question dependencies
This question only appears if you select “Absolute target” in response to C4.1.
Change from last year
Modified question
Rationale
The question is aimed at encouraging best practice in target setting, such as the use of science-based targets where available.
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
NZAM (FS only)
Commitment 1
Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.
Target reference number
|
Year target was set
|
Target coverage
|
Scope(s)
|
Scope 2 accounting method
|
Scope 3 category(ies)
|
Base year
|
Abs1-Abs100
|
Numerical field [enter a number between 1900- 2022]
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product-level
- Other, please specify
|
Select all that apply:
|
Select from:
- Location-based
- Market-based
|
Select all that apply:
- Category 1: Purchased goods and services
- Category 2: Capital goods
- Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
- Category 4: Upstream transportation and distribution
- Category 5: Waste generated in operations
- Category 6: Business travel
- Category 7: Employee commuting
- Category 8: Upstream leased assets
- Category 9: Downstream transportation and distribution
- Category 10: Processing of sold products
- Category 11: Use of sold products
- Category 12: End-of-life treatment of sold products
- Category 13: Downstream leased assets
- Category 14: Franchises
- Category 15: Investments [does not appear to FS]
- Other (upstream)
- Other (downstream)
|
Numerical field [enter a number between 1900- 2022]
|
Base year Scope 1 emissions covered by target (metric tons CO2e)
|
Base year Scope 2 emissions covered by target (metric tons CO2e)
|
Base year Scope 3 emissions covered by target (metric tons CO2e)
|
Total base year emissions covered by target in all selected Scopes (metric tons CO2e)
|
Base year Scope 1 emissions covered by target as % of total base year emissions in Scope 1
|
Base year Scope 2 emissions covered by target as % of total base year emissions in Scope 2
|
Base year Scope 3 emissions covered by target as % of total base year emissions in Scope 3 (in all Scope 3 categories)
|
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]
|
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]
|
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]
|
Base year emissions covered by target in all selected Scopes as % of total base year emissions in all selected Scopes
|
Target year
|
Targeted reduction from base year (%)
|
Total emissions in target year covered by target in all selected Scopes (metric tons CO2e)
[auto-calculated]
|
Scope 1 emissions in reporting year covered by target (metric tons CO2e)
|
Scope 2 emissions in reporting year covered by target (metric tons CO2e)
|
Scope 3 emissions in reporting year covered by target (metric tons CO2e)
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Numerical field [enter a whole number between 2017- 2100]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Numerical field [0-999,999,999,999]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 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]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
Total emissions in reporting year covered by target in all selected scopes (metric tons CO2e)
|
% of target achieved relative to base year
[auto-calculated]
|
Target status in reporting year
|
Is this a science-based target?
|
Target ambition*
|
Please explain target coverage and identify any exclusions
|
Plan for achieving target, and progress made to the end of the reporting year
|
List the emissions reduction initiatives which contributed most to achieving this target
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
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]
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
[Add Row]
*This column only appears if you select one of the “Yes…” options in column “Is this a science-based target?”
Is this a science-based target? drop-down options:
Select one of the following options:
- Yes, and this target has been approved by the Science Based Targets initiative
- Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years
- 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 targets. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions, and/or reductions attributable to the sequestration or transfer of GHGs (except in a specific case of bioenergy use for science-based targets – see “Additional information” for more details).
- If you have a target that will be met in part by offsetting (including carbon neutrality targets), or CO2 removals except for the bioenergy case specified in “Additional information”, only the proportion of the target that relates to emissions reductions (and not offset purchases or CO2 removals) should be reported here. If you are uncertain of the proportion that will be achieved through emissions reductions, make an estimation based on the initiatives that you have in place or planned. Targets to reduce emissions in the product use phase or to reduce emissions from the supply chain should be captured as Scope 3 targets.
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 target coverage and identify any exclusions” 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.
- It is considered best practice to report one overarching target covering total company-wide Scope 1 and 2 emissions. Sub-targets may also be reported in additional rows.
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column. E.g. if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the “Please explain target coverage and identify any exclusions” column.
Scope(s) (column 4)
- This refers to the Scope(s) of emissions to which the target relates. Note that the target does not have to comprise all emissions within a particular Scope.
Scope 2 accounting method (column 5)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Indicate whether the target relates to your location-based or market-based Scope 2 emissions.
Scope 3 category(ies) (column 6)
- This column only appears if you select “Scope 3” in column 4 “Scope(s)”.
- Select the Scope 3 emissions category(ies) that relate to this target.
- The categories of Scope 3 emissions have been taken from the Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Refer to the Standard for additional information on the sources that each category comprises and how to calculate these emissions. If you are specifying a Scope 3 source under “Other, please specify” please make it clear whether it is an upstream or downstream source.
Base year (column 7)
- 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 target coverage and identify any exclusions” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
- You cannot have a base year that is in the future.
Base year Scope 1 emissions covered by target (metric tons CO2e) (column 8)
- This column only appears if you select “Scope 1” in column 4 “Scope(s)”.
- Enter the base year Scope 1 emissions covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
- E.g. if your target is to reduce Scope 1+2 emissions arising from your European operations, enter the base year Scope 1 emissions for your European operations in this column.
Base year Scope 2 emissions covered by target (metric tons CO2e) (column 9)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Enter the base year Scope 2 emissions covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 2 proportion only.
- E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 2 company-wide base year emissions in this column.
Base year Scope 3 emissions covered by target (metric tons CO2e) (column 10)
- This column only appears if you select “Scope 3” in column 4 “Scope(s)”.
- This figure should be the total Scope 3 base year emissions covered by the target for the Scope 3 category(ies) selected in column 6.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 3 proportion only.
- E.g. if your target relates to Scope 1+2+3 emissions of a particular business activity (e.g. office-based operations, etc.), enter the base year Scope 3 emissions relating to that business activity for the Scope 3 category(ies) selected in column 6 in this column.
Total base year emissions covered by target in all selected Scopes (metric tons CO2e) (column 11)
- This figure should be the total base year emissions covered by the target in all Scopes selected in column 4.
- E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 1+2+3 company-wide base year emissions in this column.
- If the target relates to a single Scope, this figure will be the same as the figure reported in either column 8, column 9, or column 10.
- If the target encompasses multiple Scopes, this figure will be equal to the sum of the figures reported in columns 8, 9 and/or 10
Base year Scope 1 emissions covered by target as % of total base year emissions in Scope 1 (column 12)
- This column only appears if you select “Scope 1” in column 4 “Scope(s)”.
- Enter the base year Scope 1 emissions covered by the target (reported in column 8) as a percentage of your total company-wide base year emissions in Scope 1.
- If the target encompasses multiple Scopes, this percentage should be based upon the Scope 1 proportion only.
- E.g. if your target is to reduce Scope 1+2 emissions arising from your European operations, and the Scope 2 emissions from your European operations accounted for 80% of your total, company-wide Scope 1 emissions in the base year, then you should enter 80 into this column.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 1.
Base year Scope 2 emissions covered by target as % of total base year emissions in Scope 2 (column 13)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Enter the base year Scope 2 emissions covered by the target (reported in column 9) as a percentage of your total company-wide base year emissions in Scope 2.
- If the target encompasses multiple Scopes, this percentage should be based upon the Scope 2 proportion only.
- E.g. if your target relates to Scope 1+2+3 emissions of a particular business activity (e.g. office-based operations, etc.), and the Scope 2 emissions from that business activity accounted for 20% your total, company-wide Scope 2 emissions in the base year, then you should enter 20 into this column.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 2.
Base year Scope 3 emissions covered by target as % of total base year emissions in Scope 3 (in all Scope 3 categories) (column 14)
- This column only appears if you select “Scope 3” in column 4 “Scope(s)”.
- Enter the base year Scope 3 emissions covered by the target (reported in column 10) as a percentage of your total company-wide base year emissions for all Scope 3 categories calculated in the base year.
- E.g. If you have selected only one Scope 3 category in column 6 (e.g. “Business travel”), you should enter the base year emissions in that category covered by the target as a percentage of your total base year Scope 3 emissions as a whole.
- If the target encompasses multiple Scopes, this percentage should be based upon the Scope 3 proportion only.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 3.
Base year emissions covered by target in all selected Scopes as % of total base year emissions in all selected Scopes (column 15)
- Enter the total base year emissions covered by the target (reported in column 11) as a percentage of your total company-wide base year emissions in all Scopes selected in column 4.
- If the target encompasses multiple Scopes, note that you should not sum the percentages reported in columns 12, 13 and/or 14.
- E.g. if your target relates to Scope 1+2+3 emissions for your UK operations, and the Scope 1+2+3 emissions from your UK operations accounted for 10% your total, company-wide Scope 1+2+3 emissions in the base year, then you should enter 10 into this column.
- If the target relates to a single Scope, this figure will be the same as the figure reported in either column 12, column 13, or column 14.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for all Scopes selected in column 4.
Target year (column 16)
- If you have a year-on-year rolling target, the target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain target coverage and identify any exclusions” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
Targeted reduction from base year (%) (column 17)
- Enter your targeted emissions reduction as a percentage reduction in emissions in all Scopes relevant to the target to be achieved in the target year, when compared to the base year.
- E.g. if your target is to reduce your Scope 1+2 emissions by 3000 metric tons CO2e and your base year Scope 1+2 emissions were 150,000 metric tons CO2e, you should enter 2 into this column (i.e. (3000/150000)=0.02; then multiply by 100 for percentage value).
- If your target is to stabilize emissions at the base year level, you should enter 0 in this column.
- Note that this column is intended to describe the targeted percentage reduction from the base year that is to be achieved in the target year, and not the percentage reduction from the base year observed in the reporting year.
Total emissions in target year covered by target in all selected Scopes (metric tons CO2e) [auto-calculated] (column 18)
- This column will be auto-calculated in the ORS.
- The total emissions in your target year covered by the target will be calculated from the “Total base year emissions covered by target in all selected Scopes” (column 11) and the “Targeted reduction from base year” (column 17) columns. Ensure that you have entered data into these columns.
- E.g. if your base year emissions were 150,000 metric tons CO2e, and your targeted reduction is 2%, this column will display 147,000.
Scope 1 emissions in reporting year covered by target (metric tons CO2e) (column 19)
- This column only appears if you select “Scope 1” in column 4 “Scope(s)”.
- Enter the Scope 1 emissions in the reporting year covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
- E.g. if your target is to reduce Scope 1+2 emissions arising from your European operations, enter the Scope 1 emissions in the reporting year for your European operations in this column.
Scope 2 emissions in reporting year covered by target (metric tons CO2e) (column 20)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Enter the Scope 2 emissions in the reporting year covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 2 proportion only.
- E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 2 company-wide emissions in the reporting year in this column.
Scope 3 emissions in reporting year covered by target (metric tons CO2e) (column 21)
- This column only appears if you select “Scope 3” in column 4 “Scope(s)”.
- This figure should be the total Scope 3 emissions in the reporting year covered by the target for the Scope 3 category(ies) selected in column 6.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 3 proportion only.
- E.g. if your target relates to Scope 1+2+3 emissions of a particular business activity (e.g. office-based operations, etc.), enter the Scope 3 emissions in the reporting year relating to that business activity for the Scope 3 category(ies) selected in column 6 in this column.
Total emissions in reporting year covered by target in all selected Scopes (metric tons CO2e) (column 22)
- This figure should be the total emissions in the reporting year covered by the target in all Scopes selected in column 4.
- E.g. if your target relates to Scope 1+2+3 company-wide emissions, enter your Scope 1+2+3 company-wide emissions in the reporting year in this column.
- If the target relates to a single Scope, this figure will be the same as the figure reported in either column 19, column 20, or column 21.
- If the target encompasses multiple Scopes, this figure will be equal to the sum of the figures reported in columns 19, 20 and/or 21.
% of target achieved relative to base year [auto-calculated] (column 23)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion (in terms of emissions) relative to the base year will be calculated from the “Total base year emissions covered by target in all selected Scopes” (column 11), “Targeted reduction from base year” (column 17) and the “Total emissions in reporting year covered by target in all selected Scopes” (column 22) columns. Ensure that you have entered data into these columns.
- E.g. if your target is to reduce your Scope 1 emissions by 10% and in the reporting year your Scope 1 emissions had reduced by 3% compared to the base year, this column will display 30 as your target is 30% complete.
- Negative values indicate an increase in emissions relative to the base year.
- Values greater than 100 indicate that you have exceeded your target.
- This column will not appear if you set a target to stabilize your greenhouse gas emissions at the base year level, i.e. if you have entered 0 (zero) in column “Targeted reduction from base year (%)” (column 17).
Target status in reporting year (column 24)
- 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 22 in the reporting year, for example due to a recalculation of the base year emissions or a change to the target year.
- Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
- Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain target coverage and identify any exclusions” column.
Is this a science-based target? (column 25)
- 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, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a target and has self-assessed it to be science-based, and it has been submitted to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based.
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years – Not all companies have had their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not yet submitted it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based. If you are currently in the process of revising your target to meet SBTi criteria, indicate this by selecting “No, but we anticipate setting one in the next 2 years.
- No, but we are reporting another target that is science-based: Another target (absolute or intensity) disclosed is science-based, either in another row in this table, or in C4.1b.
- No, but we anticipate setting one in the next 2 years: While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
- No, and we do not anticipate setting one in the next 2 years: No science-based targets have been set and there are no plans in place to set one in the next 2 years.
Target ambition (column 26)
- This column only appears if you select any “Yes” option in column 25 “Is this a science-based target?”.
- Select the level of ambition of your science-based target. Note that as of July 2022, the SBTi requires Scope 1 and 2 targets to be consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures, and Scope 3 targets to be consistent with the level of decarbonization required to keep global temperature increase to well-below 2°C compared to pre-industrial temperatures.
Please explain target coverage and identify any exclusions (column 27)
- 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.
- If your target is science-based, please specify if CO2 emissions and/or removals from bioenergy are relevant for your organization and, if so, how you have included them in your target boundary. Please refer to the “Additional Information” for more details.
- You can use this column to identify where you have a financial year or average year based target.
- If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
- If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.
Plan for achieving target, and progress made to the end of the reporting year (column 28)
- This column only appears if you select “Underway”, “Revised”, or “New” in column 24 “Target status in reporting year”.
- Describe how you plan to achieve the target, including any emissions reduction initiatives your organization plans to implement.
- List the emissions reduction initiatives which have contributed most to any progress towards the target to the end of the reporting year (as indicated in column 23).
- If you are not on track to achieve the target, explain how you plan to get back on track.
- If possible, specify your anticipated and/or observed progress curve in this column, i.e.:
- Linear – the rate of progress towards the target is anticipated and/or observed to be steady over time
- Logarithmic – the rate of progress towards the target is anticipated and/or observed to be faster at the start
- Exponential – the rate of progress towards the target is anticipated and/or observed to be faster at the end
- Variable – the rate of progress towards the target is anticipated and/or observed to change from year to year
List the emissions reduction initiatives which contributed most to achieving this target (column 29)
- This column only appears if you select “Achieved” in column 24 “Target status in reporting year”. List the initiatives which contributed most to the emissions reductions achieved over the lifetime of the target.
Example response
Worked example of absolute target table
The following table shows two absolute target examples:
- A target to reduce covered Scope 1 and 2 emissions by 80% in 2023 compared with the base year (ID=Abs1);
- A target to reduce covered Scope 3 emissions by 75% in 2027 compared with the base year (ID=Abs2);
Target reference number
|
Year target was set
|
Target coverage
|
Scope(s)
|
Scope 2 accounting method
|
Base year
|
Base year Scope 1 emissions covered by target (metric tons CO2e)
|
Abs1
|
2016
|
Company-wide
|
|
Market-based
|
2015
|
830000
|
Abs2
|
2019
|
Company-wide
|
Scope 3
|
N/A
|
2017
|
N/A
|
Base year Scope 2 emissions covered by target (metric tons CO2e)
|
Base year Scope 3 emissions covered by target (metric tons CO2e)
|
Total base year emissions covered by target in all selected Scopes (metric tons CO2e
|
Base year Scope 1 emissions covered by target as % of total base year emissions in Scope 1
|
Base year Scope 2 emissions covered by target as % of total base year emissions in Scope 2
|
Base year Scope 3 emissions covered by target as % of total base year emissions in Scope 3 (in all Scope 3 categories)
|
Base year emissions covered by target in all selected Scopes as % of total base year emissions in all selected Scopes
|
Target year
|
450000
|
N/A
|
1280000
|
95
|
95
|
N/A
|
95
|
2023
|
N/A
|
875000
|
875000
|
N/A
|
N/A
|
70
|
70
|
2027
|
Targeted reduction from base year (%)
|
Total emissions in target year covered by target in all selected Scopes (metric tons CO2e)
[auto-calculated]
|
Scope 1 emissions in reporting year covered by target (metric tons CO2e)
|
Scope 2 emissions in reporting year covered by target
(metric tons CO2e)
|
Scope 3 emissions in reporting year covered by target (metric tons CO2e)
|
Total emissions in reporting year covered by target in all selected scopes (metric tons CO2e)
|
% of target achieved relative to base year
[auto-calculated]
|
80
|
256000
|
332000
|
180000
|
N/A
|
512000
|
75
|
75
|
218750
|
N/A
|
N/A
|
656250
|
656250
|
33
|
Target status in reporting year
|
Is this a science-based target?
|
Target ambition*
|
Please explain target coverage and identify any exclusions
|
Plan for achieving target, and progress made to the end of the reporting year
|
List the emissions reduction initiatives which contributed most to achieving this target
|
Underway
|
Yes, and this target has been approved by the Science Based Targets initiative
|
Well-below 2°C aligned
|
This target is company-wide and covers 95% of both our Scope 1 and 2 emissions, with some small exclusion due to poor data availability from some of our smaller sites and leased spaces in Southeast Asia. We have not included any emissions or removals from bioenergy within the target boundary.
|
By the reporting year we have achieved most of our target. To achieve further reductions we plan to keep improving our operational and logistics efficiency alongside electrification of our domestic vehicle fleet to achieve deep cuts to emissions. Alongside this we will continue to increase our sourcing of zero-carbon electricity. The progress curve is likely to be variable.
|
N/A
|
Underway
|
Yes, and this target has been approved by the Science Based Targets initiative
|
Well-below 2°C aligned
|
This company-wide target covers 70% of all our Scope 3 emissions, focusing on the largest categories most relevant to our business activities (Employee commuting, Business travel) while exclusing several minor categories which we aim to reduce through separate measures.
|
We are pursuing remote working opportunities where possible for our administrative staff. We are also minimizing business travel where possible. Our biggest measure is to encourage and support our employees to switch to low-carbon modes of transport. We have implemented a program which helps employees purchase season tickets for public transport and are trialing leasing electric vehicles for some employees.
|
N/A
|
Additional information
Science-based targets
- Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and pursue efforts to limit warming to under 1.5°C. However, there is a large gap between the level of ambition of the country 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 2022 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 2022 climate change questionnaire.
- Regardless of submission to SBTi, companies are expected to report emissions reductions targets in their CDP response. Targets that did not pass the SBTi’s review process or that have not been submitted for review prior to the deadline will still be evaluated using the information disclosed by each company in their CDP response. See the Technical Note for more details.
Science-based targets — bioenergy accounting
- As per the GHG Protocol Corporate Standard, CO2 emissions from the combustion, processing, and distribution of bioenergy and the land use emissions and removals associated with bioenergy feedstocks, should be reported alongside a company’s GHG inventory, separately from the Scopes. However, SBTi criterion 10 requires CO2 emissions from the combustion, processing and distribution of bioenergy and the land use emissions and removals associated with bioenergy feedstocks to be included in the target boundary when setting a science-based target (in Scopes 1, 2 and/or 3, as relevant) and when reporting progress against that target, even though such CO2 emissions and/or removals are reported separately in a company’s GHG inventory. Companies are expected to adhere to any additional GHG Protocol Guidance on bioenergy accounting when released in order to maintain compliance with criterion 10.
(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s).
Question dependencies
This question only appears if you select “Intensity target” in response to C4.1.
Change from last year
Modified question
Rationale
The question is aimed at encouraging best practice in target setting, such as the use of science-based targets where available.
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
NZAM (FS only)
Commitment 1
Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” function at the bottom of the table.
Target reference number
|
Year target was set
|
Target coverage
|
Scope(s)
|
Scope 2 accounting method
|
Scope 3 category(ies)
|
Intensity metric
|
Int1-Int100
|
Numerical field [enter a number between 1900-
2022]
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product level
- Other, please specify
|
Select all that apply:
|
Select from:
- Location-based
- Market-based
|
Select all that apply:
- Category 1: Purchased goods and services
- Category 2: Capital goods
- Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
- Category 4: Upstream transportation and distribution
- Category 5: Waste generated in operations
- Category 6: Business travel
- Category 7: Employee commuting
- Category 8: Upstream leased assets
- Category 9: Downstream transportation and distribution
- Category 10: Processing of sold products
- Category 11: Use of sold products
- Category 12: End-of-life treatment of sold products
- Category 13: Downstream leased assets
- Category 14: Franchises
- Category 15: Investments [does not appear to FS]
- Other (upstream)
- Other (downstream)
|
Select from drop-down options below
|
Base year
|
Intensity figure in base year for Scope 1 (metric tons CO2e per unit of activity)
|
Intensity figure in base year for Scope 2 (metric tons CO2e per unit of activity)
|
Intensity figure in base year for Scope 3 (metric tons CO2e per unit of activity)
|
Intensity figure in base year for all selected Scopes (metric tons CO2e per unit of activity)
|
% of total base year emissions in Scope 1 covered by this Scope 1 intensity figure
|
% of total base year emissions in Scope 2 covered by this Scope 2 intensity figure
|
Numerical field [enter a number between 1900- 2022]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
% of total base year emissions in Scope 3 (in all Scope 3 categories) covered by this Scope 3 intensity figure
|
% of total base year emissions in all selected Scopes covered by this intensity figure
|
Target year
|
Targeted reduction from base year (%)
|
Intensity figure in target year for all selected Scopes (metric tons CO2e per unit of activity)
[auto-calculated]
|
% change anticipated in absolute Scope 1+2 emissions
|
% change anticipated in absolute Scope 3 emissions
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Numerical field [enter a number between 2017- 2100]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Numerical field [0-999,999,999,999]
|
Percentage field [enter a percentage from -999-999 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from -999-999 using a maximum of 2 decimal places]
|
Intensity figure in reporting year for Scope 1 (metric tons CO2e per unit of activity)
|
Intensity figure in reporting year for Scope 2 (metric tons CO2e per unit of activity)
|
Intensity figure in reporting year for Scope 3 (metric tons CO2e per unit of activity)
|
Intensity figure in reporting year for all selected Scopes (metric tons CO2e per unit of activity)
|
% of target achieved relative to base year [auto-calculated]
|
Target status in reporting year
|
Is this a science-based target?
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 10 decimal places and no commas]
|
Percentage field
|
Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
|
Select from drop-down options below
|
Target ambition*
|
Please explain target coverage and identify any exclusions
|
Plan for achieving target, and progress made to the end of the reporting year
|
List the emissions reduction initiatives which contributed most to achieving this target
|
Select from:
- 1.5°C aligned
- Well-below 2°C aligned
- 2°C aligned
- Other, please specify
|
Text field [maximum 2,400 characters]
|
Text field [maximum 2,400 characters]
|
Text field [maximum 2,400 characters]
|
[Add row]
*This column only appears if you select one of the “Yes…” options in column “Is this a science-based target?”
Intensity metric drop-down options:
Select one of the following options:
- Grams CO2e per revenue passenger kilometer
- Metric tons CO2e per USD($) value-added
- Metric tons CO2e per square meter
- Metric tons CO2e per metric ton of aluminum
- Metric tons CO2e per metric ton of steel
- Metric tons CO2e per metric ton of cement
- Metric tons CO2e per metric ton of cardboard
- Grams CO2e per kilometer
- Metric tons CO2e per unit revenue
- Metric tons CO2e per unit FTE employee
- Metric tons CO2e per unit hour worked
- Metric tons CO2e per metric ton of product
- Metric tons of CO2e per liter of product
- Metric tons CO2e per unit of production
- Metric tons CO2e per unit of service provided
- Metric tons CO2e per square foot
- Metric tons CO2e per kilometer
- Metric tons CO2e per passenger kilometer
- Metric tons CO2e per megawatt hour (MWh)
- Metric tons CO2e per barrel of oil equivalent (BOE)
- Metric tons CO2e per vehicle produced
- Metric tons CO2e per metric ton of ore processed
- Metric tons CO2e per ounce of gold
- Metric tons CO2e per ounce of platinum
- Metric tons of CO2e per metric ton of aggregate
- Metric tons of CO2e per billion (currency) funds under management
- Other, please specify
Is this a science-based target? Drop-down options:
Select one of the following options:
- Yes, and this target has been approved by the Science Based Targets initiative
- Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years
- 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 targets. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions, and/or reductions attributable to the sequestration or transfer of GHGs (except in a specific case of bioenergy use for science-based targets – see “Additional information” for more details).
- If you have a target that will be met in part by offsetting (including carbon neutrality targets), or CO2 removals except for the bioenergy case specified in “Additional information”, only the proportion of the target that relates to emissions reductions (and not offset purchases or CO2 removals) should be reported here. If you are uncertain of the proportion that will be achieved through emissions reductions, make an estimation based on the initiatives that you have in place or planned.
- Targets to reduce emissions in the product use phase or to reduce emissions from the supply chain should be captured as Scope 3 targets.
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 target coverage and identify any exclusions” 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.
- It is considered best practice to report one overarching target covering total company-wide Scope 1 and 2 emissions. Sub-targets may also be reported in additional rows.
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column. E.g. if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the “Please explain target coverage and identify any exclusions” column.
Scope(s) (column 4)
- This refers to the Scope(s) of emissions to which the target relates. Note that the target does not have to comprise all emissions within a particular Scope.
Scope 2 accounting method (column 5)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Indicate whether the target relates to your location-based or market-based Scope 2 emissions.
Scope 3 category(ies) (column 6)
- This column only appears if you select “Scope 3” in column “Scope(s)”.
- Select the Scope 3 emissions category(ies) that relate to this target.
- The categories of Scope 3 emissions have been taken from the Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Refer to the Standard for additional information on the sources that each category comprises and how to calculate these emissions. If you are specifying a Scope 3 source under “Other, please specify” please make clear whether it is an upstream or downstream source.
Intensity metric (column 7)
- 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 8)
- 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 target coverage and identify any exclusions” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
- You cannot have a base year that is in the future.
Intensity figure in base year for Scope 1 (metric tons CO2e per unit of activity) (column 9)
- This column only appears if you select “Scope 1” in column 4 “Scope(s)”.
- Enter the Scope 1 emissions intensity figure in the base year covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
- Note that the base year Scope 1 emissions intensity figure should be calculated by dividing the base year Scope 1 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee by 22%, using 2015 as the base year and 2025 as the target year, calculate what your company-wide Scope 1 emissions were per FTE in 2015 and enter that figure in this column.
Intensity figure in base year for Scope 2 (metric tons CO2e per unit of activity) (column 10)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Enter the Scope 2 emissions intensity figure in the base year covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 2 proportion only.
- Note that the base year Scope 2 emissions intensity figure should be calculated by dividing the base year Scope 2 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee by 22%, using 2015 as the base year and 2025 as the target year, calculate what your company-wide Scope 2 emissions were per FTE in 2015 and enter that figure in this column.
Intensity figure in base year for Scope 3 (metric tons CO2e per unit of activity) (column 11)
- This column only appears if you select “Scope 3” in column 4 “Scope(s)”.
- Enter the Scope 3 emissions intensity figure in the base year covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 3 proportion only.
- Note that the base year Scope 3 emissions intensity figure should be calculated by dividing the base year Scope 3 emissions covered by the target for the Scope 3 category(ies) selected in column 6 by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your company-wide Scope 1+2+3 emissions per unit revenue by 46%, using 2018 as the base year and 2027 as the target year, calculate what your company-wide emissions per unit revenue were in 2018 for the Scope 3 category(ies) selected in column 6, and enter this figure in this column.
- If your target covers only certain activities within a Scope 3 category (as indicated in column 3 “Target coverage”), you should calculate the base year intensity figure using the base year emissions relating to those activities only, rather than the emissions for the Scope 3 category as a whole.
Intensity figure in base year for all selected Scopes (metric tons CO2e per unit of activity) (column 12)
- Enter the emissions intensity figure in the base year covered by the target for all Scopes selected in column 4 in this column.
- Note that this figure should be calculated by dividing the total base year emissions covered by the target in all Scopes selected in column 4 by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee by 22%, using 2015 as the base year and 2025 as the target year, calculate what your company-wide Scope 1+2 emissions were per FTE in 2015 and enter this figure in this column
- If the target relates to a single Scope, this figure will be the same as the figure reported in either column 9, column 10, or column 11.
% of total base year emissions in Scope 1 covered by this Scope 1 intensity figure (column 13)
- This column only appears if you select “Scope 1” in column 4 “Scope(s)”.
- Enter the base year Scope 1 emissions covered by the target as a percentage of your total company-wide base year emissions in Scope 1.
- If the target encompasses multiple Scopes, the percentage should be based upon the Scope 1 proportion only.
- Note that for this calculation you should use the absolute base year Scope 1 emissions covered by the target (i.e. metric tons CO2e), not the Scope 1 intensity figure you reported in column 9 (i.e. metric tons CO2e per unit activity).
- E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee in your European operations only, and the Scope 1 emissions from your European operations accounted for 80% of your total Scope 1 emissions in the base year, then you should enter 80 into this column.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 1.
% of total base year emissions in Scope 2 covered by this Scope 2 intensity figure (column 14)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Enter the base year Scope 2 emissions covered by the target as a percentage of your total company-wide base year emissions in the Scope 2.
- If the target encompasses multiple Scopes, the percentage should be based upon the Scope 2 proportion only.
- Note that for this calculation you should use the absolute base year Scope 2 emissions covered by the target (i.e. metric tons CO2e), not the Scope 2 intensity figure you reported in column 10 (i.e. metric tons CO2e per unit activity).
- E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee in your European operations only, and the Scope 2 emissions from your European operations accounted for 30% of your total Scope 2 emissions in the base year, then you should enter 30 into this column.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 2.
% of total base year emissions in Scope 3 (in all Scope 3 categories) covered by this Scope 3 intensity figure (column 15)
- This column only appears if you select “Scope 3” in column 4 “Scope(s)”.
- Enter the base year Scope 3 emissions covered by the target as a percentage of your total company-wide base year emissions for all Scope 3 categories calculated in the base year.
- E.g. if you have selected only one Scope 3 category (e.g. Business travel), you should enter the base year emissions in that category as a percentage of your total base year Scope 3 emissions as a whole.
- If the target encompasses multiple Scopes, the percentage should be based upon the Scope 3 proportion only.
- Note that for this calculation you should use the absolute base year Scope 3 emissions covered by the target (i.e. metric tons CO2e), not the Scope 3 intensity figure you reported in column 11 (i.e. metric tons CO2e per unit activity).
- E.g. if your target is to reduce your Scope 1+2+3 emissions per unit revenue for a particular business activity only (e.g. office-based operations, etc.), and the Scope 3 emissions from that business activity accounted for 20% your total Scope 3 emissions in the base year, then you should enter 20 into this column.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for Scope 3.
% of total base year emissions in all selected Scopes covered by this intensity figure (column 16)
- Enter the total base year emissions covered by the target as a percentage of your total company-wide base year emissions in all Scopes selected in column 4.
- Note that for this calculation you should use the absolute base year emissions covered by the target in all selected Scopes (i.e. metric tons CO2e), not the intensity figure you reported in column 12 (i.e. metric tons CO2e per unit activity).
- E.g. if your target is to reduce your Scope 1+2+3 emissions per FTE employee for your UK operations, and the Scope 1+2+3 emissions from your UK operations accounted for 10% your total, company-wide Scope 1+2+3 emissions, then you should enter 10 into this column.
- Note that entering a value of 100% indicates that the target covers your company’s total, global gross emissions in the base year for all Scopes selected in column 4.
Target year (column 17)
- If you have a year-on-year rolling target, the target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
Targeted reduction from base year (%) (column 18)
- Enter your targeted emissions intensity reduction as a percentage reduction of the emissions intensity figure in all Scopes relevant to the target to be achieved in the target year, when compared to the base year.
- E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee to 7 metric tons CO2e per FTE employee and your base year Scope 1+2 intensity figure was 9 metric tons CO2e per FTE employee, you should enter 22 into this column (i.e. ((9-7)/9)=0.22; then multiply by 100 for percentage value).
- If your target is to stabilize your emissions intensity at the base year level, you should enter 0 in this column.
- Note that this column is intended to describe the targeted percentage reduction from the base year that is to be achieved in the target year, not the percentage reduction from the base year observed in the reporting year.
Intensity figure in target year for all selected Scopes (metric tons CO2e per unit of activity) [auto-calculated] (column 19)
- This column will be auto-calculated in the ORS.
- The intensity figure in your target year covered by the target will be calculated from the “Intensity figure in base year for all selected Scopes” (column 12) and the “Targeted reduction from base year” (column 18) columns. Ensure that you have entered data into these columns.
- E.g. if your base year Scope 1+2 intensity figure was 9 metric tons CO2e per FTE employee, and your targeted reduction is 22%, this column will display 7.
% change anticipated in absolute Scope 1+2 emissions (column 20)
- 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 21)
- Complete this column if your target relates to Scope 3 emissions. If your target does not include Scope 3 emissions, enter 0 (zero) in this column.
- Enter the percentage change in your total absolute global Scope 3 emissions (in all Scope 3 categories) expected, based on the information provided in the previous columns. A positive figure indicates that you anticipate an increase in emissions.
Intensity figure in reporting year for Scope 1 (metric tons CO2e per unit of activity) (column 22)
- This column only appears if you select “Scope 1” in column 4 “Scope(s)”.
- Enter the Scope 1 emissions intensity figure in the reporting year covered by the target in this column.
- If the target encompasses multiple Scopes, this figure should be based upon the Scope 1 proportion only.
- Note that the Scope 1 emissions intensity figure in the reporting year should be calculated by dividing your reporting year Scope 1 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your Scope 1+2 emissions per full time equivalent (FTE) employee from 9 metric tons CO2e to 7 metric tons CO2e and in the reporting year your Scope 1 emissions per FTE employee were 5 metric tons CO2e, enter 5 in this column.
Intensity figure in reporting year for Scope 2 (metric tons CO2e per unit of activity) (column 23)
- This column only appears if you select “Scope 2” in column 4 “Scope(s)”.
- Enter the Scope 2 emissions intensity figure in the reporting year covered by the target in this column.
- If the target encompasses multiple Scopes, the percentage should be based upon the Scope 2 proportion only.
- Note that the Scope 2 emissions intensity figure in the reporting year should be calculated by dividing your reporting year Scope 2 emissions covered by the target by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your Scope 1+2 emissions per full time equivalent (FTE) employee from 9 metric tons CO2e to 7 metric tons CO2e and in the reporting year your Scope 2 emissions per FTE employee were 3 metric tons CO2e, enter 3 in this column.
Intensity figure in reporting year for Scope 3 (metric tons CO2e per unit of activity) (column 24)
- This column only appears if you select “Scope 3” in column 4 “Scope(s)”.
- Enter the Scope 3 emissions intensity figure in the reporting year covered by the target in this column.
- If the target encompasses multiple Scopes, the percentage should be based upon the Scope 3 proportion only.
- Note that the Scope 3 emissions intensity figure in the reporting year should be calculated by dividing your total reporting year Scope 3 emissions covered by the target for the Scope 3 category(ies) selected in column 6 by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your company-wide Scope 1+2+3 emissions per unit revenue from from 16 metric tons CO2e to 5 metric tons CO2e and in the reporting year your Scope 3 emissions per unit revenue for the Scope 3 category(ies) selected in column 6 were 2 metric tons CO2e, enter 2 in this column.
- If your target covers only certain activities within a Scope 3 category (as indicated in column 3 “Target coverage”), you should calculate the intensity figure in the reporting year using the reporting year emissions relating to those activities only, rather than the emissions for the Scope 3 category as a whole.
Intensity figure in reporting year for all selected Scopes (metric tons CO2e per unit of activity) (column 25)
- Enter the emissions intensity figure in the reporting year covered by the target for all Scopes selected in column 4 in this column.
- Note that this intensity figure should be calculated by dividing your total reporting year emissions covered by the target in all Scopes selected in column 4 by the intensity metric denominator (e.g. unit revenue, metric ton of product etc).
- E.g. if your target is to reduce your company-wide Scope 1+2 emissions per full time equivalent (FTE) employee from 9 metric tons CO2e to 7 metric tons CO2e and in the reporting year your Scope 1+2 emissions per FTE employee were 8 metric tons CO2e, enter 8 in this field.
- If the target relates to a single Scope, this figure will be the same as the figure reported in either column 22, column 23, or column 24.
% of target achieved relative to base year [auto-calculated] (column 26)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion (in terms of emissions) relative to the base year will be calculated from the “Intensity figure in base year for all selected Scopes” (column 12), “Targeted reduction from base year” (column 18), and the “Intensity figure in reporting year for all selected Scopes” (column 25) columns. Ensure you have entered data into these columns.
- E.g. if your target is to reduce your Scope 1+2 emissions per FTE employee by 22% and in the reporting year your Scope 1+2 emissions per FTE employee had reduced by 11% compared to the base year, this column will display 50 as your target is 50% complete.
- Negative values indicate an increase in the emissions intensity figure compared to the base year.
- Values greater than 100 incidate that you have exceeded your target.
- This column will not appear if you set a target to stabilize your emissions intensity at the base year level, i.e. if you have entered 0 (zero) in column “Targeted reduction from base year (%)” (column 18).
Target status in reporting year (column 27)
- 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 25 in the reporting year, for example due to a recalculation of the base year emissions intensity or a change to the target year.
- Replaced – Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
- Retired – Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain target coverage and identify any exclusions” column.
Is this a science-based target? (column 28)
- 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, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a target and has self-assessed it to be science-based, and it has been submitted to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based.
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Bases Targets initiative in the next two years – Not all companies have had their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not yet submitted it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based. If you are currently in the process of revising your target to meet SBTi criteria, indicate this by selecting “No, but we anticipate setting one in the next 2 years.
- 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 by submitting a Science Based Target initiative commitment letter.
- No, and we do not anticipate setting one in the next 2 years – No science-based targets have been set and there are no plans in place to set one in the next 2 years.
Target ambition (column 29)
- This column only appears if you select any “Yes” option in “Is this a science-based target” (column 28).
- Select the level of ambition of your science-based target. Note that as of July 2022, the SBTi requires Scope 1 and 2 targets to be consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared with pre-industrial temperatures, and Scope 3 targets to be conistent with the level of decarbonization required to keep global temperature increase to well-below 2°C compared to pre-industrial temperatures.
Please explain target coverage and identify any exclusions (column 30)
- 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.
- If your target is science-based, please specify if CO2 emissions and/or removals from bioenergy are relevant for your organization and, if so, how you have included them in your target boundary. Please refer to the “Additional information” for more details.
- You can use this column to identify where you have a financial year or average year based target.
- If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
- If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.
Plan for achieving target, and progress made to the end of the reporting year (column 31)
- This column only appears if you select “Underway”, “Revised”, or “New” in column 27 “Target status in reporting year”.
- Describe how you plan to achieve the target, including any emissions reduction initiatives your organization plans to implement.
- List the emissions reduction initiatives which have contributed most to any progress towards the target to the end of the reporting year (as indicated in column 26).
- If you are not on track to achieve the target, explain how you plan to get back on track.
- If possible, specify your anticipated and/or observed progress curve in this column, i.e.:
- Linear – the rate of progress towards the target is anticipated and/or observed to be steady over time
- Logarithmic – the rate of progress towards the target is anticipated and/or observed to be faster at the start
- Exponential – the rate of progress towards the target is anticipated and/or observed to be faster at the end
- Variable – the rate of progress towards the target is anticipated and/or observed to change from year to year
List the emissions reduction initiatives which have contributed most to achieving this target since it was set (column 32)
- This column only appears if you select “Achieved” in column 27 “Target status in reporting year”.
- List the initiatives which contributed most to the emissions reductions achieved over the lifetime of the target.
Example response
The table below shows two intensity target examples:
Int 1: a target to reduce total emissions (scope 1 and market-based scope 2) per US$ revenue from company-wide operations by 20% by 2025, from a base year of 2019. The emissions in the base year are 0.0005 tCO2e/USD. The target emission intensity reduction would then be 0.0005 x 0.8 = 0.0004 tCO2e/USD. The target was set in 2020.
Int 2: a target to reduce emissions from business flights per FTE employee by 50% by 2023, from a base year of 2015. Emissions from flights account for 25% of all Scope 3 emissions. The emissions in the base year are 2.6 tCO2e/FTE. The target emission reduction would then be 2.6 x 0.5 = 1.3 tCO2e/FTE . The target was set in 2016.
Target reference number
|
Year target was set
|
Target coverage
|
Scope(s)
|
Scope 2 accounting method
|
Scope 3 category(ies)
|
Intensity metric
|
Int1
|
2020
|
Company-wide
|
|
Market-based
|
N/A
|
Metric tons CO2e per unit revenue
|
Int2
|
2016
|
Company-wide
|
Scope 3
|
N/A
|
Category 6: Business Travel
|
Metric tons CO2e per FTE employee
|
Base year
|
Intensity figure in base year for Scope 1 (metric tons CO2e per unit of activity)
|
Intensity figure in base year for Scope 2 (metric tons CO2e per unit of activity)
|
Intensity figure in base year for Scope 3 (metric tons CO2e per unit of activity)
|
Intensity figure in base year for all selected Scopes (metric tons CO2e per unit of activity)
|
% of total base year emissions in Scope 1 covered by this Scope 1 intensity figure
|
% of total base year emissions in Scope 2 covered by this Scope 2 intensity figure
|
2019
|
0.0004
|
0.0001
|
N/A
|
0.0005
|
97
|
95
|
2015
|
N/A
|
N/A
|
2.6
|
2.6
|
N/A
|
N/A
|
% of total base year emissions in Scope 3 (in all Scope 3 categories) covered by this Scope 3 intensity figure
|
% of total base year emissions in all selected Scopes covered by this intensity figure
|
Target year
|
Targeted reduction from base year (%)
|
Intensity figure in target year for all selected Scopes (metric tons CO2e per unit of activity) [auto-calculated]
|
% change anticipated in absolute Scope 1+2 emissions
|
% change anticipated in absolute Scope 3 emissions
|
N/A
|
96
|
2025
|
20
|
0.0004
|
-12
|
N/A
|
25
|
25
|
2023
|
50
|
1.3
|
N/A
|
-10
|
Intensity figure in reporting year for Scope 1 (metric tons CO2e per unit of activity)
|
Intensity figure in reporting year for Scope 2 (metric tons CO2e per unit of activity)
|
Intensity figure in reporting year for Scope 3 (metric tons CO2e per unit of activity)
|
Intensity figure in reporting year for all selected Scopes (metric tons CO2e per unit of activity
|
% of target achieved relative to base year [auto-calculated]
|
Target status in reporting year
|
Is this a science-based target?
|
0.00034
|
0.00007
|
N/A
|
0.00041
|
90
|
Underway
|
Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science-based target initiative in the next two years
|
N/A
|
N/A
|
2
|
2
|
46
|
Underway
|
No, and we do not anticipate setting one in the next two years
|
Target ambition*
|
Please explain target coverage and identify any exclusions
|
Plan for achieving target, and progress made to the end of the reporting year
|
List the emissions reduction initiatives which contributed most to achieving this target
|
Well-below 2°C aligned
|
The target covers most of our operations as per reporting boundary disclosed in C0.5. We have excluded a small amount of Scope 1 and 2 emissions from two small sites in South America (less than 700sqm) for which we don’t currently have data.
CO2 emissions and removals from bioenergy are not relevant to our organization
|
Energy efficiency measures and operational improvements implemented at our offices in the US have already helped us reduce some of our emissions per unit revenue. However, most of the emissions reductions per unit revenue will be achieved by implementing our new company strategy that will change our business model to make it more sustainable and adapt to the needs of the 21st century. Please see details disclosed in module 3.
|
N/A
|
N/A
|
This target is based on financial year reporting: base year financial year 20015, reporting year financial year 2022, target year 2023.
|
We have been taking advantage of videoconferencing opportunities where possible, but still interact with a number of clients where in person meetings and thus travel is still required. We are planning on scaling this back where possible and providing support for our clients to implement better videoconferencing where feasible. However, this has not been enough to keep us on track to meet our targets. In order to get back on track, we are exploring options to compensate emissions from flights with our travel providers.
|
N/A
|
Additional information
Science-based targets
- Nearly 200 nations at COP21 wrote into the Paris Agreement that globally we will aim to limit warming to below 2°C and pursue efforts to limit warming to under 1.5°C. However, there is a large gap between the level of ambition of the country 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 2022 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 2022 climate change questionnaire.
- Regardless of submission to SBTi, companies are expected to report emissions reductions targets in their CDP response. Targets that did not pass the SBTi’s review process or that have not been submitted for review prior to the deadline will still be evaluated using the information disclosed by each company in their CDP response. See the Technical Note for more details.
Science-based targets — bioenergy accounting
- As per the GHG Protocol Corporate Standard, CO2 emissions from the combustion, processing, and distribution of bioenergy and the land use emissions and removals associated with bioenergy feedstocks, should be reported alongside a company’s GHG inventory, separately from the Scopes. However, SBTi criterion 10 requires CO2 emissions from the combustion, processing and distribution of bioenergy and the land use emissions and removals associated with bioenergy feedstocks to be included in the target boundary when setting a science-based target (in Scopes 1, 2 and/or 3, as relevant) and when reporting progress against that target, even though such CO2 emissions and/or removals are reported separately in a company’s GHG inventory. Companies are expected to adhere to any additional GHG Protocol Guidance on bioenergy accounting when released in order to maintain compliance with criterion 10.
(C4.1c) Explain why you did not have an emissions target, and forecast how your emissions will change over the next five years.
Question dependencies
This question only appears if you select “No target” in response to C4.1.
Change from last year
No change
Rationale
As setting a target is a pre-requisite for leadership in environmental practice, data users need to understand why companies do not have active targets guiding environmental strategy.
Response options
Please complete the following table:
Primary reason | Five-year forecast | Please explain |
Select from: - We are planning to introduce a target in the next two years
- Important but not an immediate business priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- Insufficient data on operations
- No instruction from management
- Other, please specify
| Text field [maximum 2,400 characters] | Text field [maximum 2,400 characters] |
Requested content
General
- If you select “Other, please specify,” provide a label for the "Primary reason".
Five-year forecast (column 2)
- Provide a qualitative and quantitative description of how you forecast your emissions will change over the next five years.
- It is acknowledged that this forecast will be an estimate, but it is expected that companies will:
- forecast the expected direction of change (e.g. whether their emissions will increase, decrease or experience no change overall over the next five years).
- provide a quantitative description of the forecasted change in emissions (e.g. Scope 1 emissions forecasted to decrease by 30 metric tons CO2e/ Scope 1 and Scope 2 emissions forecasted to increase by 10%/ Scope 3 emissions forecasted to decrease by 20%).
- provide a brief description of the reasons you forecast this change, or in the unlikely event no change, in emissions over the next five years. For example, this could be due to forecasted changes in output or expected emissions reduction activities.
Please explain (column 3)
- Provide an explanation of why you do not have a target and the timeline to implement one, if applicable.
(C-FS4.1d) Provide details of the climate-related targets for your portfolio.
Question dependencies
This question only appears if you select “Portfolio target” in response to C4.1.
Change from last year
New question
Rationale
Achieving net zero by 2050 will require a major redirection of capital into sustainable solutions and low-carbon technologies, which only the financial services sector can provide. This profound influence on the wider economy means financial institutions’ climate change impact occurs mostly in their portfolios, rather than through their direct operations. Thus, setting target and reporting on progress at a portfolio level is considered best practice for financial institutions and can help them align their financing, investment and insurance underwriting to a 1.5 degree world.
Connection to other frameworks
TCFD
Metrics and Targets recommended disclosure c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.
NZAM (FS only)
Commitment B
Commitment C
Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” function at the bottom of the table.
Target reference number
|
Year target was set
|
Portfolio
|
Product type/Asset class/Line of business
|
Sectors covered by the target
|
Portfolio coverage of target
|
Target type
|
Por1 - Por100
|
Numerical field [enter a number between 1900- 2022]
|
Select from:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
|
Select all that apply:
Banking
- All product types
- Corporate loans
- Retail loans
- Corporate real estate
- Retail mortgages
- Trade finance
- Asset finance
- Project finance
- Debt and equity underwriting
- Other, please specify
Investing
- All asset classes
- Fixed income
- Listed equity
- Private equity
- Real estate/property
- Infrastructure
- Commodities
- Forestry
- Hedge funds
- Fund of funds
- Derivatives
- Other, please specify
Insurance
- All lines of business
- Property and casualty
- Construction and engineering
- Agribusiness
- Motor
- Marine
- Other, please specify
|
Select all that apply:
- All sectors
- Energy
- Materials
- Capital goods
- Commercial and professional services
- Transportation
- Automobiles and components
- Consumer durables and apparel
- Consumer services
- Retailing
- Food and staples retailing
- Food, beverage and tobacco
- Household and personal products
- Health care equipment and services
- Pharmaceuticals, biotechnology and life sciences
- Banks
- Diversified financials
- Insurance
- Software and services
- Technology hardware and equipment
- Semiconductors and semiconductor equipment
- Telecommunication services
- Utilities
- Real estate
- Other, please specify
|
Percentage field [enter a percentage from 0-100]
|
Select from:
- Green finance
- Sector Decarbonization Approach (SDA)
- Portfolio coverage
- Portfolio temperature alignment
- Portfolio emissions
- Other, please specify
|
Target type: Absolute or intensity | Scopes included in temperature alignment | Metric (or target numerator if intensity) | Target denominator | Base year | Figure in base year | Percentage of portfolio emissions covered by the target |
---|
Select from:
| Select from:
- Scope 1 + 2
- Scope 1 + 2 + 3
| Select from:
Green finance
- Total green finance raised and facilitated (unit currency as reported in C0.4)
- Total green investments (unit currency as reported in C0.4)
- Total green bonds outstanding (unit currency as reported in C0.4)
- Total green debt instruments outstanding (unit currency as reported in C0.4)
- Other, please specify
Sector Decarbonization Approach (SDA)
- Metric tons CO2e
- Other, please specify
Portfolio coverage
- % of portfolio setting a Science-Based Target
- Other, please specify
Portfolio temperature alignment
Portfolio emissions
Other, please specify
| Select from:
Green finance
- Total finance raised and facilitated (unit currency as reported in C0.4)
- Total investments (unit currency as reported in C0.4)
- Total bonds outstanding (unit currency as reported in C0.4)
- Total debt instruments outstanding (unit currency as reported in C0.4)
- Other, please specify
Sector Decarbonization Approach (SDA)
- Meters squared
- kWh
- Ton cement
- Ton pulp and paper
- km
- Passenger km
- Ton km
- Vehicle km
- Ton iron and steel
- Ton aluminum
- Other, please specify
Portfolio emissions
- Million revenues (unit currency as reported in C0.4)
- Million invested (unit currency as reported in C0.4)
Other, please specify | Numerical field [enter a number between 1900- 2022]
| 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]
|
Interim target year
|
Figure in interim target year
|
Target year
|
Figure in target year
|
Figure in reporting year
|
% of target achieved relative to base year [auto-calculated]
|
Aggregation weighting used
|
Numerical field [enter a number between 2017- 2100]
|
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 between 2017- 2100]
|
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]
|
Auto-calculated
|
Select from:
- Weighted average temperature score (WATS)
- Total emissions weighted temperature score (TETS)
- Market owned emissions weighted temperature score (MOTS)
- Enterprise owned emissions weighted temperature score (EOTS)
- Enterprise value (EV) + cash emissions weighted temperature score (ECOTS)
- Total assets emissions weighted temperature score (AOTS)
- Revenue owned emissions weighted temperature score (ROTS)
- Other, please specify
|
Proportion of portfolio emissions calculated in the reporting year based on asset level data
|
Proportion of the temperature score calculated in the reporting year based on company targets
|
Target status in reporting year
|
Is this a science-based target?
|
Target ambition
|
Please explain target coverage and identify any exclusions
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
|
Select from:
- Yes, and this target has been approved by the Science-Based Targets initiative
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science-based target initiative in the next two years
- Yes, we consider this a science-based target, and the target is currently being reviewed by the Science-based target initiative
- No, but we are reporting another target that is science-based
- No, but we anticipate setting one in the next 2 years
- No, and we do not anticipate setting one in the next 2 years
|
Select from:
- 1.5°C aligned
- Well-below 2°C aligned
- 2°C aligned
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Requested content
Target reference number (column 1)
- Select a unique target reference from the drop-down menu provided to identify the target in subsequent questions and to track progress against the target in subsequent reporting years.
Year target was set (column 2)
- Enter the year in which your company set the target.
- This must be either before or during the reporting year. It cannot be after the reporting year or after the target year.
- If you have a year-on-year rolling target, enter the year you first set the target. This can be before the base year.
- If you set the target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
Portfolio (column 3)
- The options in this column are driven by your selections in C-FS0.7
Product type/Asset class/Line of business (column 4)
- The options in this column are driven by your selections in column 3.
- If you have a target at the portfolio-level including all your products within this portfolio, please select “All product types” / “All asset classes” / “All lines of business”.
Sectors covered by the target (column 5)
- Select the sectors included within the target.
- If your portfolio target concerns companies in specific sectors (i.e. sector decarbonization approach), please select which sector it relates to.
- Select “All sectors” if your portfolio target concerns all your clients/investees.
Target type (column 7)
- Select which type of target you have implemented for your portfolio.
- Green finance: refers to the aim of providing loans, investments and/or other financial products and services to green projects.
- Sectoral Decarbonization Approach (SDA): a method for setting physical intensity targets that uses convergence of emissions intensity.
- Portfolio coverage: a method for setting target to drive the adoption of science-based emissions reduction targets by borrowers and/or investees.
- Portfolio temperature alignment: a method that enables financial institutions to set targets to align their base year portfolio temperature score to a long-term temperature goal.
- Portfolio emissions: setting targets to reduce portfolio emissions or emissions intensity.
Target type: Absolute or intensity (column 8)
- This column only appears if “Green finance”, “Sectoral Decarbonization Approach (SDA)”, "Portfolio emissions", or “Other, please specify” is selected in column 7.
- Select whether the target is an absolute target or an intensity target, e.g., targets related to tCO2e are absolute targets, whereas targets related to an intensity metric such as tCO2e/kWh are intensity targets.
- If you select “absolute”, please 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.
Target denominator (column 11)
- This column only appears if “Intensity” is selected in column 8.
- If you select “Other, please specify,” provide a label for the metric.
Base year (column 12)
- The base year is the year against which you are comparing your emissions reduction target.
- If you have a year-on-year rolling target, the base year will be the previous reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
- You cannot have a base year that is in the future.
Figure in base year (column 13)
- Enter the figure in the base year covered by the target.
- The figure provided should be in the metric (or target numerator if intensity) provided in column 10.
- If your target is an intensity target, note that the base year emissions intensity figure should be calculated by dividing the base year emissions covered by the target by the intensity metric denominator.
Interim target year (column 15)
- Enter the target year of the interim target.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the ““Please explain target coverage and identify any exclusions” column.
Figure in interim target year (column 16)
- Enter the figure in the interim year covered by the target.
- If the interim year is in the past, enter the measured figure.
- If the interim year is in the future, enter the figure you expect to achieve in the interim year.
- The figure provided should be in the metric (or target numerator if intensity) provided in column 10.
- If your target is an intensity target, note that the intensity figure should be calculated by dividing the emissions covered by the target by the intensity metric denominator.
Target year (column 17)
- If you have a year-on-year rolling target, the target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain (including target coverage)” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain (including target coverage)” column.
Figure in target year (column 18)
- Enter the targeted figure you expect to achieve in target year.
- The figure provided should be in the metric (or target numerator if intensity) provided in column 10.
- If your target is an intensity target, note that the intensity figure should be calculated by dividing the emissions covered by the target by the intensity metric denominator.
Figure in reporting year (column 19)
- Enter the corresponding figure in the reporting year covered by the target.
- The figure provided should be in the metric (or target numerator if intensity) provided in column 10.
- If your target is an intensity target, note that the intensity figure should be calculated by dividing the emissions covered by the target by the intensity metric denominator.
% of target achieved relative to base year [auto-calculated] (column 20)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion compared with the base year will be calculated from the “Figure in base year” (column 13), “Figure in target year” (column 18), and the “Figure in reporting year” (column 19) columns. Ensure you have entered data into these columns.
- Values greater than 100 indicate that you have exceeded your target.
Aggregation weighting used (column 21)
- This column only appears if “Portfolio coverage” or “Portfolio temperature alignment” is selected in column 7.
- If you disclose a Portfolio coverage or Portfolio temperature alignment target, select the aggregation weighting used.
- Weighted average temperature score (WATS): Temperature scores are allocated based on portfolio weights.
- Total emissions weighted temperature score (TETS): Temperature scores are allocated based on historical emission weights using total company emissions.
- Market owned emissions weighted temperature score (MOTS): Temperature scores are allocated based on an equity ownership approach.
- Enterprise owned emissions weighted temperature score (EOTS): Temperature scores are allocated based on an enterprise ownership approach.
- EV + cash emissions weighted temperature score (ECOTS): Temperature scores are allocated based on an enterprise value (EV) plus cash & equivalents ownership approach.
- Total assets emissions weighted temperature score (AOTS): Temperature scores are allocated based on a total assets ownership approach.
- Revenue owned emissions weighted temperature score (ROTS): Temperature scores are allocated based on the share of revenue.
- If you select “Other, please specify”, specify the aggregation weighting used
Proportion of portfolio emissions calculated in the reporting year based on asset level data (column 22)
- This column only appears if you selected “Sectoral Decarbonization Approach (SDA)” or “Portfolio emissions” in column 7 “Target type”.
- Indicate the proportion of portfolio emissions calculated in the reporting year based on asset level data (i.e. not based on modelled data).
Proportion of the temperature score calculated in the reporting year based on company targets (column 23)
- This column only appears if you selected “Portfolio temperature alignment” as target type in column 7.
- Indicate the proportion of the temperature score calculated in the reporting year based on company targets (i.e. not based on a default score for the company).
Target status in reporting year (column 24)
- 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 25)
- This column only appears if “Banking” or “Investing” is selected in column 3.
- Refer to the CDP Technical Note on Science-Based Targets for what qualifies as a science-based target and how to assess your target against the Science Based Targets initiative’s criteria.
- Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers targets approved by the initiative to reflect best practice in science-based target setting. Select this option only if the target has been approved by the SBTi.
- Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative: If your company has set a target and has self-assessed it to be science-based, and it has been submitted to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based.
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years: Not all companies have had their target assessed by the SBTi. If your company has set a target and has self-assessed it to be science-based but has not yet submitted it to the SBTi for validation, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your target to be science-based. If you are currently in the process of revising your target to meet SBTi criteria, indicate this by selecting “No, but we anticipate setting one in the next 2 years.
- No, but we are reporting another target that is science-based: Another target (absolute or intensity) disclosed is science-based, either in another row in this table, or in C4.1b.
- No, but we anticipate setting one in the next 2 years: While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
- No, and we do not anticipate setting one in the next 2 years: No science-based targets have been set and there are no plans in place to set one in the next 2 years.
Target ambition (column 26)
- This column only appears if you select any “Yes” option in column 25 “Is this a science-based target?”.
- Select the level of ambition of your science-based target. Note that as of July 2021 the SBTi currently requires Scope 1 and 2 targets to be consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures, and Scope 3 targets to be consistent with the level of decarbonization required to keep global temperature increase to well-below 2°C compared to pre-industrial temperatures.
Please explain target coverage and identify any exclusions (column 27)
- If the target is not portfolio-wide provide further details of your target coverage in this column.
- You can use this column to identify where you have a financial year or average year based target.
- If your target was originally in a different format, you may wish to give the original target before it was converted into the format required for the purposes of this table.
- If your target is part of a wider carbon neutrality goal, a regulatory requirement, or a longer term target, you can also explain this here.
Additional information
- Financial institutions can go further once they have calculated portfolio impact metrics by using the metrics to set targets for reducing their climate change impact and to inform actions they can take to reduce their impact. Reporting on progress through effective environmental disclosures is important at every stage of the journey.
- There are a number of methodologies organizations in the financial sector can use to set and/or communicate portfolio targets. Some resources that may help you set and/or communicate a target include:
Other climate-related targets
(C4.2) Did you have any other climate-related targets that were active in the reporting year?
Change from last year
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-CO4.2d/C-OG4.2d requesting information on why you do not have a methane-specific emissions reduction target and will be asked to forecast how your methane emissions will change.
- If methane emissions are not applicable to your organization, you will be given the opportunity to explain this in C-CO4.2d/C-OG4.2d.
Explanation of terms
- Target to reduce methane emissions, or “methane-specific target” is any target to reduce specifically methane (CH4) emissions e.g. reduction of leakage, venting or flaring of methane.
- Net-zero target: the SBTi Net-Zero Standard defines corporate net-zero as:
- reducing Scope 1, 2 and 3 emissions to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways and;
- neutralizing any residual emissions at the net-zero target date and any GHG emissions released into the atmosphere thereafter.
(C4.2a) Provide details of your target(s) to increase low-carbon energy consumption or production.
Question dependencies
This question only appears if you select “Target(s) to increase low-carbon energy consumption or production” in response to C4.2.
Change from last year
Modified question
Rationale
Targets related to increasing low-carbon energy consumption or production can be an important element of organizations’ strategy to reduce their emissions.
Connection to other frameworks
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
RE100
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: energy carrier
|
Target type: activity
|
Target type: energy source
|
Low1 – Low100
|
Numerical field [enter a number between 1900- 2022]
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Product level
- Other, please specify
|
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
|
Base year
|
Consumption or production of selected energy carrier in base year (MWh) | % share of low-carbon or renewable energy in base year |
Target year
|
% share of low-carbon or renewable energy in target year
|
% share of low-carbon or renewable energy in reporting year
|
% of target achieved relative to base year
[auto-calculated]
|
Numerical field [enter a number between 1900- 2022]
|
Numerical field [enter a number from 0- 999,999,999,999 using a maximum of 10 decimal places and no commas]
| Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places] |
Numerical field [enter a number between 2017- 2100]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places] |
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places] |
Percentage field |
Target status in reporting year
|
Is this target part of an emissions target?
|
Is this target part of an overarching initiative?
|
Please explain target coverage and identify any exclusions
| Plan for achieving target, and progress made to the end of the reporting year | List the actions which contributed most to achieving this target
|
Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
|
Text field [maximum 2,400 characters]
[Emissions reduction target ID]
|
Select all that apply:
- RE100
- Science Based Targets initiative
- No, it's not part of an overarching initiative
- Other, please specify
|
Text field [maximum 2,400 characters]
| Text field [maximum 2,500 characters] | Text field [maximum 2,500 characters] |
[Add Row]
Requested content
General
- If you are a member of the RE100 initative, you can use this question to self-report your progress towards achieving your RE100 target. Note that RE100 will use the data you report in module C8 (Energy) to come to its own assessment of your progress towards your RE100 target. If you have interim targets, they can be reported in this question in additional rows.
Target reference number (column 1)
- Select a unique target reference from the drop-down menu provided to track progress against this target in subsequent reporting years.
Year target was set (column 2)
- Enter the year in which your company set the target.
- This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
- For year-on-year rolling targets, enter the year that you first set the target. This can be before the base year.
- If the target was set based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
Target coverage (column 3)
- If the target applies to the whole company, select “Company-wide”. Members of the RE100 initiative should select this option to report their RE100 target. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column. E.g. if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the column “Please explain target coverage and identify any exclusions”
Target type: energy carrier (column 4)
- Select the energy carrier to which your target relates.
- If your target relates to electricity, heat, steam and cooling combined, select “All energy carriers”
- If your target relates to multiple, but not all, energy carriers, select “Other, please specify” and indicate the energy carriers your target relates to.
- Members of the RE100 initiative should select “Electricity” to report their RE100 target.
Target type: activity (column 5)
- Members of the RE100 initiative should select “Consumption” in this column to report their RE100 target.
Target type: energy source (column 6)
- Select whether the target relates to increasing consumption or production of low-carbon energy, or of renewable energy specifically. Definitions are provided in the explanation of terms below.
- Members of the RE100 initative should select “Renewable energy source(s) only” to report their RE100 target.
Base year (column 7)
- The base year is the year against which you are comparing your target.
- For RE100 targets, the base year is usually the year that your organization committed to the RE100 initiative. This may be the same as the “Year target was set” (column 2).
- If you have a year-on-year rolling target, the base year will be the previous reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
- If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
- You cannot have a base year that is in the future.
MWh of low-carbon or renewable energy in base year (column 8)
- Enter the absolute base year value for the target in megawatt hours (MWh). Note that this figure should be consistent with your selections in columns 3-6.
- E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, enter in MWh the absolute renewable electricity consumed by your European operations in 2015 in this column.
- E.g. for RE100 members, if your company-wide RE100 target is to achieve 100% renewable electricity consumption for your entire operations by a target year of 2025, enter in MWh the absolute renewable electricity consumed across all of your operations in the base year (i.e. the year that your organization committed to the RE100 intiaitve as specified in column 7).
- If your target relates to multiple energy carriers, enter the total MWh in the base year for all energy carriers.
% share of low-carbon or renewable energy in base year (column 9)
- Enter percentage share of low-carbon or renewable energy in the base year covered by the target.
- This is the low-carbon or renewable energy in the base year covered by the target (reported in column 8) as a percentage of the total energy in the base year covered by the target.
- E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, and in 2015 the renewable proportion of the total electricity consumed by your European operations was 40%, you should enter 40 in this column.
- E.g. for RE100 members, if your company-wide RE100 target is to achieve 100% renewable electricity consumption for your entire operations by a target year of 2025, and the renewable proportion of the total electricity consumed across all of your operations in the base year (i.e. the year that your organization committed to the RE100 intiaitve as specified in column 7) was 60%, you should enter 60 in this column.
Target year (column 10)
- If you have a year-on-year rolling target, the target year will be the reporting year.
- If you have a target based on financial years, enter the year that applies to the end of your financial year and specify in the “Please explain target coverage and identify any exclusions” column.
- If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
% share of low-carbon or renewable energy in target year (column 11)
- Enter the percentage share of low-carbon or renewable energy covered by the target to be achieved in the target year. This indicates your target ambition.
- E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, enter 100 in this column.
- Members of the RE100 initiative should enter “100” in this column to report their RE100 target.
% share of low-carbon or renewable energy in reporting year (column 12)
- Enter the percentage share of low-carbon or renewable energy covered by the target in the reporting year.
- E.g. if your target is to achieve 100% renewable electricity consumption in your European operations by a target year of 2025 compared with a base year of 2015, and in the reporting year the renewable proportion of the total electricity consumed by your European operations was 80%, you should enter 80 in this column.
- If you are a member of the RE100 initiative, this column allows you to self-report progress against achieving your RE100 target. Note that RE100 will use the data you report in module C8 (Energy) to come to its own assessment of your progress towards your RE100 target.
- E.g. for RE100 members, if your company-wide RE100 target is to achieve 100% renewable electricity consumption for your entire operations by a target year of 2025, and in the reporting year the renewable proportion of the total electricity consumed across all of your operations was 90%, you should enter 90 in this column.
% of target achieved relative to base year [auto-calculated] (column 13)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion compared with the base year will be calculated from the “% share of low-carbon or renewable energy in base year” (column 9), ‘% share of low-carbon or renewable energy in target year” (column 11), and “% share of low-carbon or renewable energy in reporting year” (column 12) columns. Ensure you have entered data into these columns.
- E.g. if your target is to achieve 100% renewable electricty consumption in your European operations by 2025 compared with 40% renewable electricity consumption in a base year of 2015, and in the reporting year you achieved 80% renewable electricty consumption, this column will display 66 as you have achieved 66% of your targeted increase in renewable electricty compared with the base year.
- Negative values indicate a decrease in low carbon or renewable energy consumption or production compared to the base year.
- Values greater than 100 incidate that you have exceeded your target.
- If you are a member of the RE100 initiative, note that this column is not used to assess progress against your RE100 target. The RE100 target is considered to be achieved when the % share of renewable electricity in the reporting year is equal to 100%.
Target status in reporting year (column 14)
- New - Select this option for targets that have been set in the reporting year and are still in progress.
- Underway - Select this option for targets that were set before the reporting year, with a target year in the future, that have not been achieved and continue to be pursued.
- Achieved - Select this option for targets that have been achieved or exceeded in the reporting year.
- Expired - Select this option for targets with a target year of the reporting year, that have not been achieved and have therefore expired in the reporting year.
- Revised - Select this option for targets that were set before the reporting year but a revision has been made to any of the elements in columns 2 to 12 in the reporting year, for example due to a recalculation or a change to the target year.
- Replaced - Select this option for previously reported targets that have been replaced with another target in the reporting year, for example where a facility target has been incorporated into a company-wide target.
- Retired - Select this option for targets with a target year in the future, that have not been achieved, but will no longer be pursued. Provide more information as to why this target was retired in the “Please explain target coverage and identify any exclusions” column.
Is this target part of an emissions target? (column 15)
- If the target is part of an emissions reduction target reported in C4.1a or C4.1b, enter the emissions reduction target reference number here.
Is this target part of an overarching initiative? (column 16)
- If the target is part of an overarching initaive, select the initative or select “Other, please specify” to outline the initiative.
- If you are a member of the RE100 initiative, ensure to select “RE100” here.
Please explain target coverage and identify any exclusions (column 17)
- If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”), provide further details of your target coverage in this column. E.g. if you have selected “Country/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.
Plan for achieving target, and progress made to the end of the reporting year (column 18)
- This column is only presented if “Underway”, Revised”, or “New” is selected in column 14 “Target status in reporting year”.
- Describe how you plan to achieve the target, and list the actions which have contributed most to any progress towards the target.
- If you are not on track to achieve the target, explain how you plan to get back on track.
List the actions which contributed most to achieving this target (column 19)
- This column is only presented if “Achieved” is selected in column 14 “Target status in reporting year”.
Explanation of terms
- Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels”.
Example response
The table below shows three low-carbon energy target examples:
1. Low 1: a company-wide RE100 target to increase the proportion of electricity consumed from renewable sources from 30% to 100% within 10 years from 2015. This target is part of the company’s absolute Scope 2 emissions reduction target reported in C4.1a.
2. Low 2: a company-wide target to increase the proportion of heat consumed from low-carbon sources by 2% per year. This is a year-on-year rolling target that was set in 2010, therefore the target year is the current reporting year (2020), and the base year is the previous reporting year (2019).
3. Low 3: a company-wide target set in 2015 to double renewable electricity production from 20% to 40% by 2025.The target status is revised in the reporting year due to bringing forward the target year from 2030 to 2025.
Target reference number
|
Year target was set
|
Target coverage
|
Target type: energy carrier
|
Target type: activity
|
Target type: energy source
|
Base year
|
Consumption or production of selected energy carrier in base year (MWh)
|
% share of low-carbon or renewable energy in base year
|
Low 1
|
2015
|
Company-wide
|
Electricity
|
Consumption
|
Renewable energy source(s) only
|
2015
|
87,000
|
30
|
Low 2
|
2010
|
Company-wide
|
Heat
|
Consumption
|
Low-carbon energy source(s)
|
2019
|
350
|
19
|
Low 3
|
2015
|
Company-wide
|
Electricity
|
Production
|
Renewable energy source(s) only
|
2015
|
9,200
|
20
|
Target year
|
% share of low-carbon or renewable energy in target year
|
% share of low-carbon or renewable energy in reporting year
|
% of target achieved relative to base year [auto-calculated]
|
Target status in reporting year
|
Is this target part of an emissions target?
|
Is this target part of an overarching initiative?
|
2025
|
100
|
70
|
57
|
Underway
|
Abs 2
|
RE100
|
2020
|
21
|
21.5
|
125
|
Achieved
|
No
|
No, it’s not part of an overarching initiative
|
2025
|
40
|
34
|
70
|
Revised
|
No
|
No, it’s not part of an overarching initiative
|
Please explain target coverage and identify any exclusions
|
Plan for achieving target, and progress made to the end of the reporting year
|
List the actions which contributed most to achieving this target
|
In 2015 we joined the RE100 initiative and set a company-wide target to achieve 100% renewable electricity consumption within 10 years, from a base year of 30% renewable electricity consumption. This target is part of our absolute Scope 2 emissions reduction target Abs 2.
|
We have started a process of purchasing an increasing amount of EACs to cover the electricity we use where these are available. Elsewhere we are planning on implementing a green tariff agreement to source renewable electricity and implementing energy efficiency measures to cut down our consumption of electricity and thus increase our proportion of renewables consumption. By the reporting year, we had achieved 70% renewable electricity consumption, thus achieved 57% of our targeted increase in renewable electricity compared with the base year. The target is still underway.
|
N/A
|
In 2010 we set a company-wide year-on-year target to increase the proportion of heat consumed from low-carbon sources by 2% per year. This target is company-wide and covers all our operations
|
N/A
|
Installing low-carbon sources of heat such as ground source heat pumps has been key action in fulfilling our target. Increasing energy efficiency and improving insulation have also contributed.
|
In 2015 we set a 15-year target to double our share of renewable electricity production by 2030, compared to 2015 levels. The target covers all our operations and is company-wide.
|
In the reporting year we revised this target to bring the target year forwards to 2025, as due to the decreased costs of solar PV equipment, we are already 70% of the way to achieving this target and should now achieve it before 2025. We plan to continue bringing additional solar generation facilities online and are making additional investments into our existing facilities to improve their efficiency.
|
N/A
|
(C4.2b) Provide details of any other climate-related targets, including methane reduction targets.
Question dependencies
This question only appears if you select “Other climate-related target(s)” or “Target(s) to reduce methane emissions” in response to C4.2.
Change from last year
Modified question
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- 2022]
|
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 relative to base year
[auto-calculated]
|
Numerical field [enter a number between 1900- 2022]
|
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 2017- 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 target coverage and identify any exclusions
|
Plan for achieving target, and progress made to the end of the reporting year
|
List the actions which contributed most to achieving this target
|
Select from:
- New
- Underway
- Achieved
- Expired
- Revised
- Replaced
- Retired
|
Text field [maximum 2,400 characters [Emissions reduction target ID]
|
Select all that apply:
- EP100
- EV100
- Below50 – sustainable fuels
- Science Based Targets initiative – approved supplier engagement target
- Science Based Targets initiative – approved customer engagement target
- Science Based targets initiative - other
- Reduce short-lived climate pollutants
- Remove deforestation
- Low-Carbon Technology Partnerships initiative
- No, it’s not part of an overarching initiative
- Other, please specify
|
Text field [maximum 2,400 characters]
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
[Add Row]
Metric (target numerator if reporting an intensity target) drop-down options:
Select one of the following options:
Energy productivity
- GDP
- USD ($) value-added
- units of revenue
- ounces of gold
- ounces of platinum
- metric tons of aggregate
- metric tons of aluminum
- metric tons of steel
- metric tons of cement
- metric tons of cardboard
- metric tons of product
- metric tons of ore processed
- square meters
- kilometers
- passenger kilometers
- revenue passenger kilometers
- liters of product
- units of production
- units of service provided
- square feet
- megawatt hours (MWh)
- barrel of oil equivalents (BOE)
- ton of oil equivalents (TOE)
- ton of coal equivalents (TCE)
- Other, please specify
Energy consumption or efficiency
- kWh
- MWh
- GJ
- million Btu
- boe
- toe
- tce
- Gcal
- Other, please specify
Renewable fuel production
- metric tons of solid biomass
- liters of liquid biofuel
- cubic meters of biogas
- cubic meters of hydrogen
- Other, please specify
Renewable fuel consumption
- metric tons of solid biomass
- liters of liquid biofuel
- cubic meters of biogas
- cubic meters of hydrogen
- Percentage of total fuel consumption that is from renewable sources
- Other, please specify
Waste management
- metric tons of waste diverted from landfill
- metric tons of waste recycled
- metric tons of waste reused
- metric tons of waste generated
- Percentage of total waste generated that is recycled
- Percentage of sites operating at zero-waste to landfill
- Other, please specify
Resource consumption or efficiency
- Percentage of paper from recycled or certified sustainable sources
- metric tons of paper consumed
- Percentage of plastic form recycled sources
- metric tons of plastic consumed
- Percentage of packaging from recycled or certified sustainable sources
- metric tons of packaging consumed
- Other, please specify
Low-carbon vehicles
- Percentage of low-carbon vehicles in company fleet
- Percentage of low-carbon vehicles sold
- Percentage of company fleet using biofuel
- Percentage of battery electric vehicles in company fleet
- Percentage of conventional hybrids in company fleet
- Percentage of plug-in hybrids in company fleet
- Percentage of fuel cell electric vehicles in company fleet
- Percentage of company facilities with electric vehicle infrastructure
- Other, please specify
|
Low-carbon buildings
- Percentage of net zero carbon buildings
- Percentage of net zero energy buildings
- Percentage of buildings with a green building certificate
- Other, please specify
Land use change
- hectares reforested
- hectares afforested
- hectares restored
- Percent of supply chain compliant with zero gross deforestation
- Other, please specify
Methane reduction target
- cubic meters of methane vented
- cubic meters of methane leaked
- cubic meters of methane flared
- Total methane emissions in m3
- Total methane emissions in CO2e
- Methane leakage rate (%)
- Other, please specify
Fossil fuel reduction target
- cubic meters of natural gas consumed
- metric tons of coal consumed
- barrels of oil consumed
- Percentage of fossil fuels in the fuel mix
- Other, please specify
Engagement with suppliers
- Percentage of suppliers (by emissions) disclosing their GHG emissions
- Percentage of suppliers (by procurement spend) disclosing their GHG emissions
- Percentage of suppliers (by emissions) setting emissions reduction targets
- Percentage of suppliers (by procurement spend) setting emissions reductions targets
- Percentage of suppliers (by emissions) with a science-based target
- Percentage of suppliers (by procurement spend) with a science-based target
- Percentage of suppliers (by emissions) actively engaged on climate-related issues
- Percentage of suppliers (by procurement spend) actively engaged on climate-related issues
- Other, please specify
Engagement with customers
- Percentage of customers (by emissions) disclosing their GHG emissions
- Percentage of customers (by emissions) setting emissions reduction targets
- Percentage of customers (by emissions) with a science-based target
- Percentage of customers (by emissions) actively engaged on climate-related issues
- Other, please specify
R&D investments
- Percentage of annual revenue invested in R&D of low-carbon products/services
- US$ invested in R&D of low-carbon products/services
- Percentage of R&D budget/portfolio dedicated to low-carbon products/services
- Other, please specify
Green finance
- Total amount of green bonds outstanding (green bond ratio)
- Percentage of green bonds
- Total amount of green debt instruments outstanding (green debt ratio)
- Percentage of green debt instruments
- Green finance raised and facilitated (denominated in currency)
- Green investments (denominated in currency)
- Percentage of green investments
- Other, please specify
|
Target denominator (intensity targets only) drop-down options:
Select one of the following options:
- KWh
- MWh
- GJ
- Btu
- boe
- toe
- tce
- Gcal
- revenue passenger kilometer
- USD($) value-added
- square meter
- metric ton of aluminum
- metric ton of steel
- metric ton of cement
- metric ton of cardboard
- unit revenue
- unit FTE employee
- unit hour worked
- metric ton of product
- liter of product
- unit of production
- unit of service provided
- square foot
- kilometer
- passenger kilometer
- megawatt hour (MWh)
- barrel of oil equivalent (BOE)
- vehicle produced
- metric ton of ore processed
- ounce of gold
- ounce of platinum
- metric ton of aggregate
- billion (currency) funds under management
- hectare
- metric ton of waste
- liter of fuel
- year
- total amount of bonds outstanding at the end of the reporting period
- total amount of debt outstanding at the end of the reporting period
- Other, please specify
Requested content
General
- If you are a member of the EP100 and/or EV100 initiative, you can use this question to report on your progress towards achieving your target.
- To correctly report the progress against a stabilization target, i.e. a target to maintain a certain level of performance (e.g. to maintain a zero waste to landfill target for 100% of sites), you should treat it as a target that is reset every year. In this case, “base year” corresponds to the beginning of the reporting year where your indicator is reset to zero for that year, and “target year” corresponds to the end of the reporting year where you report the performance achieved in the reporting year.
Target reference number (column 1)
- Select a unique target reference from the drop-down menu provided to identify this target in subsequent questions and to track progress against this target in subsequent reporting years.
Year target was set (column 2)
- Enter the year in which your company has set the target.
- This must be either before or during the reporting year, but cannot be after the reporting year. It also cannot be after the target year.
- For year-on-year rolling targets, enter the year that you first set the target. This can be before the base year.
- If the target was set based on financial years, enter the year that applies to the end of your financial year and specify this in the “Please explain target coverage and identify any exclusions” column.
Target coverage (column 3)
- If your target applies to the whole organization, select “Company-wide”. Note that “company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.
- If your target does not relate to the whole organization, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column.
- E.g. if your target relates applies only to your office-based operations, select “Business activity”.
Target type: absolute or intensity (column 4)
- Select whether the target is an absolute or an intensity target, regardless of whether you measure it in absolute (e.g. MWh) or relative (%) values. E.g. if your target is to increase the percentage of low-carbon vehicles in the company fleet, select “absolute”.
Target type: category (column 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 target coverage and identify any exclusions” column.
- If you have a target based on average emissions over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify this in the “Please explain target coverage and identify any exclusions” column.
- You 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 target coverage and identify any exclusions” column.
- If you have a target based on an average over a period of time (e.g. 5-year average), enter the year that applies to the end of the average period and specify in the “Please explain target coverage and identify any exclusions” column.
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 relative to base year [auto-calculated] (column 13)
- This column will be auto-calculated in the ORS.
- The target’s percentage completion compared with the base year will be calculated from the “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 target coverage and identify any exclusions” column.
Is this part of emissions target? (column 15)
- 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 16)
- If the climate-related target is part of an overarching initiative, select the initiative or select “Other, please specify” to outline the initiative.
Please explain target coverage and identify any exclusions (column 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.
Plan for achieving target, and progress made to the end of the reporting year (column 18)
- This column is only presented if “Underway”, “Revised”, or “New” is selected in column 14 “Target status in reporting year”.
- Describe how you plan to achieve the target, and list the actions which have contributed most to any progress towards the target.
- If you are not on track to achieve the target, explain how you plan to get back on track.
List the actions which contributed most to achieving this target (column 19)
- This column is only presented if “Achieved” is selected in column 14 “Target status in reporting year”.
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 last year
Modified 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.
Connection to other frameworks
NZAM (FS only)
General Commitment
Response options
Please complete the following table:
Target reference number
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Target coverage
|
Absolute/intensity emission target(s) linked to this net-zero target
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Target year for achieving net zero
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Is this a science-based target?
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Please explain target coverage and identify any exclusions
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Do you intend to neutralize any unabated emissions with permanent carbon removals at the target year?
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Planned milestones and/or near-term investments for neutralization at target year
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Planned actions to mitigate emissions beyond your value chain (optional)
|
Select from:
NZ1-NZ100
|
Select from:
- Company-wide
- Business division
- Business activity
- Site/facility
- Country/region
- Banking (Bank) [FS only]
- Investing (Asset manager) [FS only]
- Investing (Asset owner) [FS only]
- Insurance underwriting (Insurance company) [FS only] Product-level
- Other, please specify
|
Select all that apply:
- Abs1-Abs100
- Int1-Int100
- Por1-Por100 [FS only]
- Not applicable
|
Numerical field [enter a number between 2017- 2100]
|
Select from drop-down options below
|
Text field [maximum 2,400 characters]
|
Select from:
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 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, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next 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.
- [Financial Services only] Some of the target coverage options shown are driven by the organizational activities you selected in C-FS0.7
- If the target does not apply to the whole company, select the option that best describes the coverage of the target, and provide further details in the “Please explain target coverage and identify any exclusions” column; for example, if your target applies only to your European operations, select “Country/region” in this column and specify the country/region in the column “Please explain target coverage and identify any exclusions”
Absolute/intensity emission target(s) linked to this net-zero target (column 3)
- If the target is linked to an emission reduction target(s) reported in C4.1a or C4.1b, select the relevant target reference number(s) here.
- [Financial Services only] If the target is linked to a portfolio target(s) reported in C-FS4.1d, select the relevant target reference number(s) here.
- You should generally be reporting an absolute/intensity emission target linked to your net-zero target, since ambitious near-term emissions reductions comprise the most important component of any net-zero target. However, if you have not reported any emission reduction targets in C4.1a or C4.1b that are linked to this net-zero target, please select “Not applicable” and explain why you are not reporting any linked emission targets in the column “Please explain target coverage and identify any exclusions”.
Is this a science-based target? (column 5)
- Please refer to the SBTi’s Net-Zero Standard for what qualifies as a science-based net-zero target and how to assess your target against the SBTi’s Net-Zero Standard Criteria.
- Yes, and this target has been approved by the Science Based Targets initiative – Companies are very strongly encouraged to have their net-zero targets officially evaluated by the Science Based Targets initiative (SBTi). CDP considers net-zero targets approved by the initiative to reflect best practice in science-based net-zero target setting. Select this option only if the net-zero target has been approved by the SBTi.
- Yes, we consider this a science-based target, and the target is currently being reviewed by the Science Based Targets initiative – If your company has set a net-zero target and has self-assessed it to be science-based, and it has been submitted it to the SBTi for validation and is currently being reviewed by the SBTi, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your net-zero target to be science-based.
- Yes, we consider this a science-based target, and we have committed to seek validation of this target by the Science Based Targets initiative in the next two years – If your company has set a net-zero target, has self-assessed it to be science-based and intends to submit it to the SBTi for validation in the next two years, you should select this option. You should use the “Please explain target coverage and identify any exclusions” column to explain why you believe your net-zero target to be science-based. If you are currently in the process of revising your net-zero target to meet the SBTi’s Net-Zero Standard Criteria, indicate this by selecting “No, but we anticipate setting one in the next 2 years.
- No, but we are reporting another target that is science-based – Another net-zero target disclosed in a different row in this table is science-based.
- No, but we anticipate setting one in the next 2 years – While not necessary, it is recommended that the company publicly state this by submitting a Science Based Target initiative commitment letter.
- No, and we do not anticipate setting one in the next 2 years – No science-based net-zero targets have been set and there are no plans in place to set one in the next 2 years.
Please explain target coverage and identify any exclusions (column 6)
- If the target does not apply to the whole organization (i.e. the target coverage is not “Company-wide”), provide further details of your target coverage in this column; for example, if you have selected “Country/region” in column 2, please specify which countries/regions your target covers.
- If you have self-assessed your net-zero target to be science-based but it has not been approved by the SBTi, please explain why you consider your target to be science-based.
- If you have not reported any emission reduction targets that are linked to this net-zero target, please explain why not.
Do you intend to neutralize any unabated emissions with permanent carbon removals at the target year? (column 7)
- Although most companies will reduce emissions by at least 90% through their emissions reduction targets, some residual emissions may remain at the target year.
- Indicate whether your organization intends to neutralize these unabated emissions through the permanent removal and storage of carbon from the atmosphere when the net-zero target year is reached. See “Explanation of terms” for more information.
Planned milestones and/or near-term investments for neutralization at target year (column 8)
- This column is only presented if “Yes” is selected in column 7.
- Indicate the magnitude of emissions that you plan to neutralize in the net-zero target year, and describe any planned milestones and/or near-term investments that demonstrate the integrity of your commitment to neutralize unabated emissions in the target year.
- For example, you may be investing or planning to invest into carbon dioxide removal and storage technologies (e.g. Direct Air Capture) in the near-term.
Planned actions to mitigate emissions beyond your value chain (optional) (column 9)
- In addition to any neutralization actions described in column 8 (if applicable), describe any actions your organization has taken in the reporting year, or plans to take between the reporting year and net-zero target year, to accelerate the net-zero transition beyond your organization’s value chain. See “Explanation of terms” for more information.
- For example, your organization may be purchasing high quality REDD+ carbon credits that will support countries to achieve their Nationally Determined Contributions (NDCs) in the long-term.
- If you do not plan to mitigate emissions beyond your value chain as part of your net-zero target, you may leave this column blank.
Explanation of terms
- Net-zero target: the SBTi Net-Zero Standard defines corporate net-zero as:
- reducing Scope 1, 2 and 3 emissions to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways and;
- neutralizing any residual emissions at the net-zero target date and any GHG emissions released into the atmosphere thereafter.
- Neutralization: Measures that companies take to remove carbon from the atmosphere and permanently store it to counterbalance the impact of emissions that remain unabated. Neutralization can occur using removals within or beyond the value chain. (Adapted from the SBTi Beyond Value Chain Mitigation FAQ).
- Beyond value chain mitigation: Mitigation action or investments that fall outside of a company’s value chain. This includes activities that avoid or reduce greenhouse gas emissions, and those that remove and store greenhouse gases from the atmosphere. Examples include purchasing high quality, jurisdictional REDD+ carbon credits that support countries in raising the ambition on and, in the long-term, achieving their nationally determined contributions, or investing in carbon dioxide removal (CDR) technologies such as direct air capture (DAC) with geological carbon storage. (Adapted from the SBTi Beyond Value Chain Mitigation FAQ)
Additional information
The Science Based Targets initiative has developed a standard for corporate net-zero targets, to ensure that companies’ net-zero targets translate into action that is consistent with achieving a net-zero world by no later than 2050.
Emissions reduction initiatives
(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or implementation phases.
Change from last year
No change
Rationale
The answer to this question enables CDP data users to understand your organization’s commitment to reducing emissions beyond business-as-usual scenario (beyond standard maintenance/replacement activities).
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 13: Climate action
Response options
Select one of the following options:
Requested content
General
- It is acknowledged that maintenance activities can have a beneficial impact on carbon emissions. Only activities that have either been part of a defined program of emissions reduction activities or where additional investment beyond standard maintenance/replacement has been made for the purposes of reducing emissions should be reported here.
- It is acknowledged that diverse companies often have large number of emissions reduction initiatives operating over varying time periods and scales. You should answer this question in the context of the reporting year. This could include initiatives that have become operational within the reporting year (e.g. installation of new equipment, or instigation of new operational practices) or commitments that have been made in the reporting year (e.g. investments made which are yet to become fully operational).
- If you are reporting a market-based Scope 2 figure, you can reflect any renewable energy purchasing policies as a component of emissions reduction activities. Please bear in mind, however, that if you are already buying renewable energy instruments and accounting for them at a zero emissions factor, then emissions reduction activities can only be achieved as “additional purchases” to what you are already doing. Therefore, emissions reduction activities are established by comparing what you have done in the previous year and what you are proposing to do in the future.
- Measures taken to reduce Scope 3 emissions may be reported here.
- Initiatives do not need to relate to specific targets reported in C4.1a/b.
(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO2e savings.
Question dependencies
This question only appears if you select “Yes” in response to C4.3.
Change from last year
No change
Rationale
This question demonstrates to CDP data users your organization’s progress towards reducing emissions through implementing emissions reduction initiatives.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 13: Climate action
Response options
Please complete the following table:
Stage of development
|
Number of initiatives
|
Total estimated annual CO2e savings in metric tons CO2e (only for rows marked *)
|
Under investigation
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
To be implemented*
|
|
|
Implementation commenced*
|
|
|
Implemented*
|
|
|
Not to be implemented
|
|
|
Requested content
Stage of development (column 1)
- Report the initiatives in the following stages of development:
- Under investigation: A potential initiative to reduce emissions that is being evaluated but not yet approved by your company during the reporting year.
- To be implemented: An initiative to reduce emissions that has been approved for implementation by your company but its implementation has not yet commenced during the reporting year.
- Implementation commenced: An initiative to reduce emissions was started/activated in the reporting year, but by the end of the reporting period it was not yet fully active/functional in realizing emissions reductions.
- Implemented: An initiative that has fully come into effect in the reporting year e.g. it has become fully operational/functional in realizing CO2e savings.
- Not to be implemented: A potential initiative to reduce emissions that was evaluated but not pursued by your company during the reporting year.
- Companies should report on these stages of development in the context of the reporting year. Unless the project was new to one of the stages of development in the reporting year, it should not be reported.
Number of initiatives (column 2)
- Where there are no projects in a stage of development, state 0 (zero). This column should be completed for all rows.
Total estimated annual CO2e savings in metric tons CO2e (column 3)
- Enter the aggregated estimated annual emissions savings in metric tons CO2e in column 3 for all initiatives in those stages marked with an * (to be implemented, implementation commenced, and implemented).
- It is acknowledged that the CO2e savings will be an estimate. More detail is requested on individual initiatives (or programs of activity) that have been implemented in the reporting year in C4.3b. Initiatives do not need to relate to specific targets disclosed in the questionnaire.
(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.
Question dependencies
This question only appears if you select “Yes” in response to C4.3.
Change from last year
Minor 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
RE100
Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.
Initiative category
|
Initiative type
|
Estimated annual CO2e savings (metric tons CO2e)
|
Scope(s) or Scope 3 category(ies) where emissions savings occur
|
Voluntary/ Mandatory
|
Annual monetary savings (unit currency – as specified in C0.4)
|
Investment required (unit currency – as specified in C0.4)
|
Payback period
|
Estimated lifetime of the initiative
|
Comment
|
Select from:
- Energy efficiency in buildings
- Energy efficiency in production processes
- Waste reduction and material circularity
- Fugitive emissions reductions
- Low-carbon energy consumption
- Low-carbon energy generation
- Non-energy industrial process emissions reductions
- Company policy or behavioral change
- Transportation
- Other, please specify
|
Select from drop-down options below
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
Select all that apply:
- Scope 1
- Scope 2 (location-based)
- Scope 2 (market-based)
- Scope 3 category 1: Purchased goods & services
- Scope 3 category 2: Capital goods
- Scope 3 category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
- Scope 3 category 4: Upstream transportation & distribution
- Scope 3 category 5: Waste generated in operations
- Scope 3 category 6: Business travel
- Scope 3 category 7: Employee commuting
- Scope 3 category 8: Upstream leased assets
- Scope 3 category 9: Downstream transportation and distribution
- Scope 3 category 10: Processing of sold products
- Scope 3 category 11: Use of sold products
- Scope 3 category 12: End-of-life treatment of sold products
- Scope 3 category 13: Downstream leased assets
- Scope 3 category 14: Franchises
- Scope 3 category 15: Investments [does not appear to FS]
- Scope 3: Other (upstream)
- Scope 3: Other (downstream)
|
Select from:
|
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
- Large hydropower (>25 MW)
- Small hydropower (<25 MW)
- Hydropower (capacity unknown)
- Renewable hydrogen fuel cell
- Solar heating and cooling
- Solar PV
- Solar CSP
- Nuclear
- Wind
- Tidal
- Wave
- Fossil fuel plant fitted with CCS
- Low-carbon electricity mix
- Other, please specify
Low-carbon energy generation
- Solid biofuels
- Liquid biofuels
- Biogas
- Geothermal
- Large hydropower (>25 MW)
- Small hydropower (<25 MW)
- Hydropower (capacity unknown)
- Renewable hydrogen fuel cell
- Nuclear
- Solar heating and cooling
- Solar PV
- Solar CSP
- Wind
- Tidal
- Wave
- Fossil fuel plant fitted with CCS
- Other, please specify
Non-energy industrial process emissions reductions
- Process equipment replacement
- Process material substitution
- Process material efficiency
- Carbon capture and storage/utilization (CCS/U)
- Other, please specify
Company policy or behavioral change
- Supplier engagement
- Customer engagement
- Site consolidation/closure
- Change in purchasing practices
- Resource efficiency
- Waste management
- Other, please specify
Transportation
- Business travel policy
- Teleworking
- Employee commuting
- Company fleet vehicle replacement
- Company fleet vehicle efficiency
- Other, please specify
|
Requested content
General
- Companies are asked to provide information on any emissions reduction initiatives made.
- There is no need to record every action – initiatives can be recorded on a programmatic level. Companies with large numbers of initiatives should prioritize those that have the potential to provide a meaningful contribution to emissions reductions.
- It is acknowledged that maintenance activities can have a beneficial impact on carbon emissions. Only those activities that have either been part of a defined program of emissions reduction initiatives or where additional investment beyond standard maintenance/replacement has been made for the purposes of reducing emissions should be reported here.
- Where initiatives are part of routine maintenance or necessary equipment replacement (e.g. necessary replacement of equipment that has an additional benefit in emissions reduction), enter the additional (premium) costs and additional monetary savings associated with the lower emissions model (if applicable).
- It should be noted that not all emissions reduction initiatives carry with them a significant cost – many initiatives, such as resource efficiency, have fairly negligible investment costs yet offer potentially high monetary savings. These initiatives should be included in the table, with the minimal investment required reflected in the “Investment required” column, and by selecting the payback of less than a year option (if this is the case).
Initiative category (column 1)
- Select the option from the drop-down list that best describes the initiative. Note that these are broad categories only, with more detailed options provided in the “Initiative type” column.
- Energy efficiency in buildings – Select this option for all energy efficiency initiatives relating to buildings, including those relating to the building fabric (e.g. insulation, draught-proofing, etc.) and those relating to building services (e.g. HVAC, BEMS etc.)
- Energy efficiency in production processes – Select this option for all energy efficiency initiatives relating to processes (e.g. waste heat recovery, process optimization, compressed air, combined heat and power, automation, smart control systems, product/service design to improve energy efficiency etc.)
- Waste reduction and material circularity – Select this option for circular economy and waste reduction initiatives (e.g. reuse, recycling, remanufacturing, product/service design to reduce waste etc.).
- Fugitive emissions reductions – Select this option for initiatives to reduce fugitive emissions (e.g. methane capture, agricultural nitrous oxide reductions, refrigerant leakage reduction etc.)
- Low-carbon energy consumption – Select this option for emissions reduction initiatives relating to increasing low-carbon energy consumption i.e. energy from renewable sources, nuclear plants and fossil-fuel plants fitted with carbon capture and storage. Note that if increasing low carbon energy consumption has been a component of your emissions reduction initiatives please also report the other accompanying information in C6.2, C6.3, C7.5, and Module C8. If you select “solid biofuels” or “liquid biofuels”, you should specify whether any of the biofuels are derived from sustainable biomass in the “Comment” column (column 10). Refer to CDP’s Technical note on Biofuels for more information. Members of the RE100 initiative selecting this option should ensure to enter a figure in column 6 “Annual monetary savings”.
- Low-carbon energy generation – Select this option for initiatives relating to the installation of low-carbon energy generating facilities (renewable, nuclear or fossil-fuel plants fitted with carbon capture and storage) at your own site or at others on behalf of your clients. If you select “solid biofuels” or “liquid biofuels”, you should specify whether any of the biofuels are derived from sustainable biomass in the “Comment” column (column 10). Refer to CDP’s Technical note on Biofuels for more information. Members of the RE100 initiative selecting this option should ensure to enter a figure in column 6 “Annual monetary savings”.
- Non-energy industrial process emissions reductions – Select this option only for initiatives to reduce emissions from industrial production processes which chemically or physically transform materials (e.g. CO2 from the calcinations step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting etc.)
- Company policy or behavioral change – Select this option for initiatives relating to a change in company policy (e.g. value chain engagement, a new procurement policy) or an organizational behavioral change (e.g. resource efficiency improvements such as reducing paper use, waste management improvements such as reducing food waste etc.). Note that changes in company transportation policies should not be reported here but under the initiative category “Transportation”
- Transportation – Select this option for initiatives relating to employee travel and commuting and the company fleet.
- Other, please specify – If none of the listed categories are applicable to your initiative, select this option and specify the initiative.
- Note that a selection must be made for both column 1 and column 2. Your data will not be saved if either column is left blank.
Initiative type (column 2)
- Select the type of initiative you have undertaken from the drop-down options provided. Note that only initiative types relative to the initiative category selected in the previous column will be displayed in the ORS.
- If none of the provided options are applicable to your initiative, select “Other, please specify” and provide details of the initiative type.
- Note that a selection must be made for both column 1 and column 2. Your data will not be saved if either column is left blank.
Estimated annual CO2e savings (metric tons CO2e) (column 3)
- Enter the expected annual CO2e savings in all emission Scopes, in metric tons, occurring with the initiative in place. It is acknowledged that this figure is likely to be an estimate.
- Where savings occur on a non-annual basis, average the savings so that an annual figure can be provided.
- Where the initiative has not been in place for the entire reporting period, estimate and report the emissions that would be saved in a 12-month period, so that an annual figure can be provided.
Scope(s) (column 4)
- Select the Scope(s) and/or Scope 3 categories where the emission reductions are expected to occur.
- If the initiative covers multiple Scopes, select all Scopes and Scope 3 categories where emissions reductions are expected to occur.
Voluntary/Mandatory (column 5)
- Select whether the initiative is mandatory (i.e. to comply with regulation), or a voluntary initiative.
Annual monetary savings (unit currency – as specified in C0.4) (column 6)
- Enter the amount of monetary savings per year expected from the initiative (e.g. in reduced energy costs) once it is fully operational.
- The number entered should be appropriate to the currency selected in C0.4.
- Where savings occur on a non-annual basis, please average out so that an annual figure can be provided.
Investment required (unit currency – as specified in C0.4) (column 7)
- Enter the total investment required for the initiative over its lifetime.
- The number entered should be appropriate to the currency selected in question C0.4.
Payback period (column 8)
- The payback period reflects the time it takes for the investment made to be offset by the monetary savings from the initiative (Payback Period = Investment/Annual monetary savings).
- The payback period is not applicable (therefore select "No payback") if:
- the initiative does not require any investment and you have entered 0 (zero) in column 7 (Investment required (unit currency, as specified in C0.4)) AND/OR
- the initiative does not bring any monetary savings and you have entered 0 (zero) in column 6 (Annual monetary savings (unit currency – as specified in C0.4))
Estimated lifetime of the initiative (column 9)
- This column refers to the duration of cash flow savings from carbon mitigation investments. This data point, in years, allows data users to calculate the Internal Rate of Return of the project, also using the “Annual monetary savings,” “Investment required” and “Payback period” information.
- If you have multiple emissions reduction initiatives for each initiative type, select the median to answer this column.
Comment (column 10) (optional)
- If you select “solid biofuels” or “liquid biofuels” as the “Initiative type” (column 2), specify whether any of the biofuels are derived from sustainable biomass here.
Note for electric utility sector companies:
- For electric utilities, emissions reduction initiatives may include fuel switching at existing plants or investment in lower-emitting methods of generation. Please disclose this information if applicable.
Note for agricultural sector companies:
- Agricultural sector companies are specifically asked to report on initiatives implemented to reduce emissions from agricultural/forestry, processing/manufacturing activities. E.g.:
- Adoption of low impact agriculture/forestry practices
- Increased efficiency of energy use during manufacturing
- Reduced fleet use of fossil fuels or increased use of renewable fuels in transportation
Explanation of terms
- Building energy management system (BEMS): An integrated system comprising hardware, software, and services that leverage information and communication technology for monitoring, automating, and controlling energy consumption. Examples include smart meters and smart billing, data analytics, performance optimization and others.
- Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol, i.e. “energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
- Process emissions: emissions from industrial production processes which chemically or physically transform materials (e.g. CO2 from the calcinations step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.)
(C4.3c) What methods do you use to drive investment in emissions reduction activities?
Question dependencies
This question only appears if you select “Yes” in response to C4.3.
Change from last year
No change
Rationale
This question provides data users with more transparency into your organization’s approach to realizing emissions reductions and progress towards targets.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 13: Climate action
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 last year
No change
Rationale
Emissions reduction initiatives are crucial to meeting emissions targets and reducing negative environmental impacts. CDP data users need to know why you do not engage in the best practice of actively reducing your emissions.
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Provide a company-specific explanation as to why you do not have any emissions reduction initiatives active in the reporting year, and if you have any plans to implement them in the future. If you plan to implement emissions reduction initiatives in the future, estimate a timeframe of when you will begin to implement them.
- If you do not have emissions reduction initiatives active in the reporting year because you have not identified any, provide more information regarding your process for identifying potential initiatives. E.g. if you investigated an area of organizational activities but the investigation did not result in potential initiatives, provide information on your investigations and explain why emissions reduction initiatives did not come to fruition.
Question C4.4 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
Low-carbon products
(C-FS4.5) Do any of your existing products and services enable clients to mitigate and/or adapt to the effects of climate change?
Question dependencies
Shown to FS only
Change from last year
Modified question for FS only
Rationale
Achieving net zero emissions by 2050 will require massive investment in low carbon technologies. Only the financial sector can provide this. Data users are interested in whether financial institutions are providing financial products and services to meet this investment challenge. This question is useful to investors seeking to increase their investment in organizations providing low-carbon financial products and services.
Connection to other frameworks
SDG
Goal 13: Climate action.
NZAM (FS Only)
Commitment 5
Response options
Select one of the following options:
Requested content
General
- Consider only financial products and services. If your organization has activities in more than one sector, you may also be presented with C4.5. All other low-carbon products and services (i.e. non-financial) should be reported in C4.5 and C4.5a.
- There are various circumstances in which a financial services company might consider that the use of its products and services by others has the potential to reduce GHG emissions.
- You should consider relevant low-carbon products such as green bonds, green loans/mortgages, green insurance products, specialty climate-related risk advisory services and others.
(C-FS4.5a) Provide details of your existing products and services that enable clients to mitigate and/or adapt to climate change, including any taxonomy used to classify the products(s).
Question dependencies
This question appears only if ‘Yes’ is selected in C-FS4.5.
Change from last year
Modified question for FS only
Rationale
Achieving net zero emissions by 2050 will require massive investment in low carbon technologies. Only the financial sector can provide this. Data users are interested in whether financial institutions are providing financial products and services to meet this investment challenge. This question is useful to investors seeking to increase their investment in organizations providing low-carbon financial products and services.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Goal 13: Climate action
NZAM (FS Only)
Commitment 5
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Product type/Asset class/Line of business
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Taxonomy or methodology used to classify product
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Description of product
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Product enables clients to mitigate and/or adapt to climate change
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Portfolio value (unit currency – as specified in C0.4)
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% of total portfolio value
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Type of activity financed/insured or provided
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Select from:
Banking
- Corporate loans
- Retail loans
- Corporate real estate
- Retail mortgages
- Trade finance
- Asset finance
- Project finance
- Debt and equity underwriting
- Other, please specify
Investing
- Fixed Income
- Listed Equity
- Private Equity
- Real estate/Property
- Infrastructure
- Commodities
- Forestry
- Hedge funds
- Mutual funds
- Fund of funds
- Derivatives
- Other, please specify
Insurance
- Property & Casualty
- Construction & Engineering
- Agribusiness
- Motor
- Marine
- Life
- Health
- Reinsurance
- Other, please specify
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Select from:
- Low-carbon Investment (LCI) Taxonomy
- Climate Bonds Taxonomy
- The EU Taxonomy for environmentally sustainable economic activities
- Evaluating the carbon-reducing impacts of ICT
- Green Bond Principles (ICMA)
- ISO 14040/44 Standards
- LMA Green Loan Principles
- LMA Sustainability Link Loans Principles
- Externally classified using other taxonomy or methodology, please specify
- Internally classified
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Text field [maximum 2,500 characters]
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Select all that apply:
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]
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Select all that apply:
- Green buildings and equipment
- Low-emission transport
- Renewable energy
- Emerging climate technology, please specify
- Carbon removal
- Nature-based solutions
- Fortified buildings
- Sustainable agriculture
- Risk transfer mechanisms for under-insured or uninsured
- Paperless/ digital service
- Other, please specify
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[Add Row]
Requested content
General
- Consider only financial products and services. If your organization has activities in more than one sector, you may also be presented with C4.5 and C4.5a. All other low-carbon products and services (i.e. non-financial) should be reported in C4.5 and C4.5a.
Taxonomy or methodology used to classify product(s) (column 2)
- As investors seek to increase the proportion of their portfolio invested in environment-friendly products there is an effort to establish standardized methodologies. As for avoided emissions, methodologies to calculate avoided emissions are still being developed.
- If you offer products enabling clients to have beneficial impacts on the climate, which have been classified using an external taxonomy or methodology not listed, select “Externally classified using other taxonomy or methodology, please specify” and provide a label for the taxonomy or methodology.
- If the products you offer have been classified internally as enabling clients to have beneficial impacts on the climate, select “Internally classified” and describe your internal classification system in column 3.
Description of product (column 3)
- Use this column to describe the product that you are disclosing in this row
- If you have selected “Internally classified” or “Externally classified using other taxonomy or methodology, please specify” in column 2, provide a rationale as to why you consider that this product will enable clients to mitigate and/or adapt to climate change.
% of total portfolio value (column 6)
- Provide a percentage value for the proportion of products and/or services that you classify as low-carbon, climate resilient products or that enable a third party to avoid GHG emissions in relation to your total portfolio value.
Type of activity financed/insured or provided (column 7)
- Indicate which type of sustainable solutions your financing, investments and insurance products and services are covering
- Green buildings and equipment: Green Buildings and Equipment are energy efficient or otherwise sustainable. Mature technologies identified by the IEA found under "Buildings" in the ETP Clean Energy Technology Guide.
- Low-emission transport: Transport modes (road, rail, shipping and aviation) which results in lower emissions, e.g. electric vehicles or increased transport efficiency. Mature technologies identified by the IEA found under "Transport" in the ETP Clean Energy Technology Guide.
- Renewable energy: Renewable energy is energy from sources that are naturally replenishing but flow-limited; renewable resources are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. The major types of renewable energy sources are: Biomass, Wood and wood waste, Municipal solid waste, Landfill gas and biogas, Ethanol, Biodiesel, Hydropower, Geothermal, Wind, Solar.
- Emerging climate technology (ECT), please specify: a commercially promising technology that addresses climate mitigation challenges but needs to attract enough investment to deploy the technology and develop business models and markets for the product or services it produces. Eventually it may become a successful innovation deployed at scale, generating new markets or profoundly disrupting established (fossil-based) ones (Auerswald et al., 2005). For a more detailed definition and guidance, refer to the ECT initiative.
- Carbon removal: solutions which remove CO2 from the atmosphere and permanently store it.
- Nature-based solutions: actions to protect, sustainably use, manage and restore natural or modified ecosystems, which address societal challenges, effectively and adaptively, providing human well-being and biodiversity benefits (IUCN, 2016).
- Fortified buildings: Fortified buildings use retrofit techniques to strengthen new and existing homes, making them more resistant to storms and other severe weather events.
- Sustainable agriculture: Farming that is environmentally sound, socially responsible, and profitable for farmers. Sustainable agriculture strives for the best long-term outcomes for forests, climate stability, and water security.
- Risk transfer mechanisms for under-insured or uninsured: Innovative risk transfer mechanisms or insurance products, e.g. risk pools or catastrophe bonds, which help under-insured or uninsured communities to meet the challenges of a changing climate.
- Paperless/digital service: Providing services to customer via digital/online services as oppose to paper/posted services, e.g. online billing statements
Explanation of terms
- Adaptation: Adjustment to climate change current or expected effects so the consequences to the business and environment are alleviated and beneficial opportunities are realized.
- Mitigation: or "climate change mitigation" refers to efforts to reduce or prevent emission of greenhouse gases.
- Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
- Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
- Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
- Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
- Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
- Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
- Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.
- Commodities: involves buying, selling, or trading a raw product, such as oil, gold, or coffee
- Derivatives: refers to securities that derive their value from an underlying asset or benchmark.
- Fixed Income: refers to a type of investment security that pay investors fixed interest or dividend payments until its maturity date.
- Forestry: investment in forest lands, either directly (direct ownership of forest land) or indirectly (through e.g. a timber fund).
- Fund of funds: investment fund that invests in other types of funds.
- Hedge funds: alternative investments using pooled funds that employ different strategies to earn active returns, or alpha, for their investors.
- Infrastructure: a form of “real assets,” which contain physical assets we see in everyday life like bridges, roads, highways, sewage systems, or energy.
- Listed Equity: refers to shares of ownership issued by publicly-traded companies.
- Mutual funds: investment using pooled funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
- Private Equity: alternative form of private financing in which funds and investors invest directly in companies.
- Real estate/Property: refers to the purchase, purchase, ownership, management, rental and/or sale of real estate (e.g. land, buildings, infrastructure).
- Property & Casualty: insurance protection that provides either property protection coverage or liability coverage for property owners.
- Construction & Engineering: insurance protection that provides financial compensation for covered losses to a building or structure.
- Agribusiness: insurance protection designed to protect businesses that earn all or most of their revenue from agriculture.
- Health: insurance that covers the whole or a part of the risk of a person incurring medical expenses.
- Motor: insurance protection for cars, trucks, motorcycles, and other road vehicles.
- Life: insurance which guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
- Marine: insurance protection that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination.
Additional information
- The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. Further details on the guidelines for issuing green bonds are available here.
- The Green Loan Principles (GLP) build on and refer to the Green Bond Principles (GBP) of the International Capital Market Association (ICMA), with a view to promoting consistency across financial markets. The green loan market aims to facilitate and support environmentally sustainable economic activity.
C5 Emissions methodology
Module Overview
A meaningful and consistent comparison of emissions over time is essential for managing climate-related issues. This module allows companies to describe any structural, boundary or methodological changes in the reporting year, provide the base year and base year emissions figures, and provide details of the standard, protocol, or methodology used to collect activity data and calculate emissions.
Key changes
- Removed question:
- C5.2a (2021) on the standard, protocol, or methodology used to collect data and calculate emissions.
- Four new questions:
- C5.1 on whether this is your first year of reporting emissions data to CDP.
- C5.1a requests details of any organizational structural changes in the reporting year.
- C5.1b requests details of any emissions accounting methodology, boundary and/or reporting year definition changes in the reporting year.
- C5.1c requests details of any base year emissions recalculations made by your organization in the reporting year.
- Modified question: C5.2 (2021 C5.1) revised to allow reporting of base year emissions for Scope 3 categories.
Click here for a list of all changes made this year.
Pathway diagram - questions
This diagram shows the general questions contained in module C5. To access question-level guidance, use the menu on the left to navigate to the question.
Changes in the reporting year
(C5.1) Is this your first year of reporting emissions data to CDP?
Change from last year
New question
Rationale
Data users wish to understand year-on-year changes in emissions and this question allows organizations to indicate if they have previously reported emissions data to CDP. It drives follow-up questions on the details of changes to corporate structure, emissions accounting boundary or methodology, or reporting year.
Response options
Select one of the following options:
Requested content
General
- If you have provided emissions data to CDP before, select “No”. You will be asked to provide details of any changes (structural, methodological, boundary etc.) since your last disclosure in subsequent questions.
(C5.1a) Has your organization undergone any structural changes in the reporting year, or are any previous structural changes being accounted for in this disclosure of emissions data?
Question dependencies
This question only appears if you select “No” in response to C5.1
Change from last year
New question
Rationale
Structural changes such as acquisitions, divestments, and mergers may have a significant impact on base year emissions due to the transfer of ownership or control of emitting activities from one organization to another. While a single structural change might not have a significant impact, the cumulative effect of a number of minor structural changes can result in a significant impact. This question provides data users with important context to any changes in emissions that may trigger base year emissions recalculation.
Response options
Please complete the following table:
*Column/row appearance is dependent on selections in this or other questions.
Has there been a structural change?
|
Name of organization(s) acquired, divested from, or merged with*
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Details of structural change(s), including completion dates*
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Select all that apply:
- Yes, an acquisition
- Yes, a divestment
- Yes, a merger
- Yes, other structural change, please specify
- No
|
Text field [maximum 500 characters]
|
Text field [maximum 2,500 characters]
|
Requested content
General
- Consider structural changes (including minor ones) which:
- occurred during the reporting year and are being accounted for in this disclosure (e.g., you acquired a company during the reporting year and are including the acquired company’s emissions data in this CDP response).
- occurred prior to the reporting year but are being accounted for in this disclosure (e.g., you acquired a company during the previous reporting year but excluded the acquired company from your CDP response in the previous reporting year in C6.4a due to a lack of data, and now have the data to include the acquired company’s emissions data in this CDP response).
Has there been a structural change? (column 1)
- Select all structural change(s) your organization has recently undergone. If your organization has not undergone any structural change(s) in the reporting year and you are also not accounting for a structural change that occurred in the previous reporting year, select “No”.
Name of organization(s) acquired, divested from, or merged with (column 2)
- This column only appears if any “Yes…” option is selected in column 1
Details of structural change(s), including completion dates (column 3)
- This column only appears if any “Yes…” option is selected in column 1.
- State the completion date of the structural change, and explain how the structural change affects the ownership or control of the emitting activities of the organizations affected by the change.
- Where multiple structural changes have occurred, please identify which completion dates refer to each organization listed in column 2.
Explanation of terms
- Structural changes: Structural changes include mergers, acquisitions, divestments, and outsourcing/insourcing of emitting activities (refer to chapter 5 of the GHG Protocol Corporate Standard for more information).
(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year definition changed in the reporting year?
Question dependencies
This question only appears if you select “No” in response to C5.1
Change from last year
New question
Rationale
Changes in emissions calculation methodology, reporting boundary approach, and/or reporting year could result in a significant impact on the base year emissions and compromise the consistency and relevance of a company’s GHG emissions inventory. This question provides data users with important context to any changes in emissions that may trigger base year emissions recalculation.
Response options
Please complete the following table:
*Column/row appearance is dependent on selections in this or other questions.
Change(s) in methodology, boundary, and/or reporting year definition?
|
Details of methodology, boundary, and/or reporting year definition change(s)*
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Select all that apply:
- Yes, a change in methodology
- Yes, a change in boundary
- Yes, a change in reporting year definition
- No, but we have discovered significant errors in our previous response(s)
- No
|
Text field [maximum 2,500 characters] |
Requested content
Change(s) in methodology, boundary, and/or reporting year definition? (column 1)
- Select all change(s) that occurred in the reporting year. If none of the changes occurred in the reporting year, select “No”.
- Further details on each of the options are provided below:
- Change in methodology: This refers to changes that occurred due to modifications in the way that the emissions inventory is calculated, e.g., changes in emissions factors used or changes in methodology protocol followed.
- Change in boundary: This refers to changes to the boundary used for your emissions inventory calculations, e.g., changing your consolidation approach from financial control to operational control. This option could also apply if you incorporated facilities, activities, or Scope 3 categories into your inventory in the reporting year that were excluded in previous years, or if you have insourced or outsourced an activity (see page 105 of the GHG Protocol Corporate Value Chain standard).
- Change in reporting year definition: This refers to a change in how your organization defines the reporting year, e.g., changing from a reporting year which aligns with the calendar year to one which aligns with your fiscal year.
- Discovery of significant errors: This refers to either the discovery of significant errors, or the discovery of a number of errors that are collectively significant.
Details of methodology, boundary, and/or reporting year definition change(s) (column 2)
- This column only appears if any “Yes…” option is selected in column 1.
- Provide further details of the changes selected in column 1. For example, briefly describe how and why your emissions calculation methodology changed, and/or explain the context to any discovered errors. If new facilities have been included within your inventory, please list these, including their location. If you have included new Scope 3 categories in your inventory, please specify the categories added.
(C5.1c) Have your organization’s base year emissions been recalculated as result of the changes or errors reported in C5.1a and C5.1b?
Question dependencies
This question only appears if any of the “Yes” options are selected in C5.1a, or if any of the “Yes” options or “No, but we have discovered significant errors in our previous response” is selected in response to C5.1b
Change from last year
New question
Rationale
Significant changes (structural, methodological, boundary etc.) can alter a company’s emissions profile, making meaningful historical comparisons difficult. To maintain consistency over time, base year emissions must be retroactively recalculated to reflect changes in the company that would otherwise compromise the consistency and relevance of a company’s GHG emissions inventory. This question allows data users to understand whether the company has recalculated their base year emissions as a result of the changes or errors disclosed in C5.1a and b.
Response options
Please complete the following table:
Base year recalculation
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Base year emissions recalculation policy, including significance threshold
|
Select from:
- Yes
- No, because we have not evaluated whether the changes should trigger a base year recalculation
- No, because the impact does not meet our significance threshold
- No, because the operations acquired or divested did not exist in the base year
- No, because we do not have the data yet and plan to recalculate next year
|
Text field [maximum 2,500 characters]
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Requested content
General
- The GHG Protocol Corporate Standard states that you should recalculate your base year emissions if your organization has changed structurally through acquisitions and/or divestments, the methodology or boundary used to calculate your emissions has changed, you have found significant errors in previous calculations, or if there have been changes to your excluded sources. This is so that your base year emissions can be directly compared with your current/reporting year emissions.
- A company may, however, decide not to do this if the impact on emissions is not material or significant. It is up to each company to determine the threshold for what is considered significant or material by developing a base year recalculation policy. Organizations should apply their base year recalculation policy in a consistent manner (i.e. you should recalculate for both emissions increases and decreases).
Base year recalculation (column 1)
- Select “Yes” if your organization has recalculated your base year emissions as a result of the changes or errors disclosed in C5.1a and/or C5.1b. The basis of the recalculation should be consistent with your recalculation policy (as described in column 2) and should be reflected in the base year emissions figures you disclose in the following question, C5.2.
- Select “No, because we have not evaluated a recalculation of our base year” if you do not have a base year recalculation policy, or you have not evaluated whether the changes or errors identified in C5.1a and/or C5.1b should trigger a base year recalculation as per your policy.
- Select “No, because the impact does not meet our significance threshold” if you have a base year recalculation policy and you have evaluated that the changes or errors identified in C5.1a and/or C5.1b do not meet your policy’s significance threshold and therefore the impact on emissions is deemed to be non-material.
- Select “No, because we do not have the data yet and plan to recalculate next year” if your organization has merged with or acquired a company and you do not yet have the emissions data for the organization you have merged with or acquired. As per the GHG Protocol Corporate standard, “if it is not possible to make a recalculation in the year of the structural change (e.g. due to lack of data for an acquired company), the recalculation may be carried out the following year”. In this scenario, the emissions from the company your organization has merged with or acquired should be reported as an excluded source of emissions in C6.4a in this CDP response.
Base year emissions recalculation policy, including significance threshold (column 2)
- Describe your organization’s base year recalculation policy, and if “Yes” was selected in column 1, clearly articulate the basis and context of the recalculation.
- Ensure to include the significance threshold applied for determining base year recalculations.
Explanation of terms
- Significance threshold: As noted on page 35 of the GHG Protocol Corporate Standard, a significance threshold is a “qualitative and/or quantitative criterion used to define any significant change to the data, inventory boundary, methods, or any other relevant factors. It is the responsibility of the company to determine the significance threshold that triggers base year emissions recalculation and to disclose it.”
Base year emissions
(C5.2) Provide your base year and base year emissions.
Change from last year
Modified question (2021 C5.1)
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
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Base year end
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Base year emissions (metric tons CO2e)
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Comment
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Scope 1
|
Use the calendar button or enter dates manually in the format DD/MM/YYYY
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Use the calendar button or enter dates manually in the format DD/MM/YYYY
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Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
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Text field [maximum 2,400 characters]
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Scope 2 (location-based)
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Scope 2 (market-based)
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Scope 3 category 1: Purchased goods and services
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Scope 3 category 2: Capital goods
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Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or 2)
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Scope 3 category 4: Upstream transportation and distribution
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Scope 3 category 5: Waste generated in operations
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Scope 3 category 6: Business travel
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Scope 3 category 7: Employee commuting
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Scope 3 category 8: Upstream leased assets
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Scope 3 category 9: Downstream transportation and distribution
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Scope 3 category 10: Processing of sold products
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Scope 3 category 11: Use of sold products
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Scope 3 category 12: End of life treatment of sold products
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Scope 3 category 13: Downstream leased assets
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Scope 3 category 14: Franchises
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Scope 3 category 15: Investments [row hidden for FS sector]
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Scope 3: Other (upstream)
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Scope 3: Other (downstream)
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Requested content
General
- This question requests a base year for your greenhouse gas inventory. This may be the same as the base year for your targets, but not necessarily.
- If your company has measured its emissions in the past, you can use the oldest year for which it has available emissions information – preferably verified or assured – as your base year. If your company is measuring its emissions for the first time, you may choose the current reporting year as the base year.
- Companies should ensure that the base year inventory includes both a location-based and market-based Scope 2 total, if applicable and feasible. This ensures “like with like” comparisons over time. If the Scope 2 base year chosen was calculated only according to the location-based method, you should also recalculate and report a market-based total if contractual information or residual mix totals are available for the base year. If not, you should state in the comment field that the location-based result has been used as a proxy since a market-based figure cannot be calculated.
- As per the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, companies should use a single base year for Scope 1, Scope 2, and Scope 3 emissions (for all calculated Scope 3 categories). This is to enable comprehensive and consistent tracking of total emissions across all three Scopes over time. However, companies with already established base years for Scope 1 and Scope 2 emissions may use a more recent year for the Scope 3 base year (e.g., the first year for which you have complete and reliable Scope 3 emissions data).
- Establishing a single base year for all Scope 3 categories simplifies Scope 3 emissions tracking and allows clearer communication of GHG emissions to data users.
- If you are using an average of annual emissions over several consecutive years for your base year emissions, enter the last year in the period (e.g. 01/01/2019 – 31/12/2019), then provide the time period over which the average was calculated in the comment column and explain that the emissions figure reported is an average.
- If you have not calculated base year emissions for a particular Scope 3 category, you may leave the respective row blank.
- If you are using the Export/Import functionality, please check that the imported date is correct.
- Note for Financial Services companies: the following row does not apply "Scope 3 category 15: Investments". Leave this row blank.
Additional information
- Setting a base year: Setting a base year is an essential GHG accounting step that a company must take to be able to observe trends in its emissions information. According to the GHG Protocol Corporate Standard, a base year is “a historic datum (a specific year or an average over multiple years) against which a company’s emissions are tracked over time.” See Chapter 5 of the GHG Protocol Corporate Standard for more information on setting and recalculating a base year.
- Recalculation criteria for Scope 3 emissions base year: The table below from the Corporate Value Chain (Scope 3) Accounting and Reporting Standard provides additional guidance for determining the need for Scope 3 base year recalculation due to changes in insourcing/outsourcing.
Emissions methodology
(C5.3) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate emissions.
Change from last year
Minor change (2021 C5.2)
Rationale
CDP data users need to understand what methods have been used to calculate emissions.
Response options
Select all that apply from the following options:
- ABI Energia Linee Guida
- Act on the Rational Use of Energy
- American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009
- Australia - National Greenhouse and Energy Reporting Act
- Bilan Carbone
- Brazil GHG Protocol Programme
- Canadian Association of Petroleum Producers, Calculating Greenhouse Gas Emissions, 2003
- China Corporate Energy Conservation and GHG Management Programme
- Defra Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance, 2019
- ENCORD: Construction CO2e Measurement Protocol
- Energy Information Administration 1605(b)
- Environment Canada, Sulphur hexafluoride (SF6) Emission Estimation and Reporting Protocol for Electric Utilities
- Environment Canada, Aluminum Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Base Metals Smelting/Refining, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Cement Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Primary Iron and Steel Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Lime Production, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Primary Magnesium Production and Casting, Guidance Manual for Estimating Greenhouse Gas Emissions
- Environment Canada, Metal Mining, Guidance Manual for Estimating Greenhouse Gas Emissions
- EPRA (European Public Real Estate Association) guidelines, 2011
- EPRA (European Public Real Estate Association) Sustainability Best Practice recommendations Guidelines, 2017
- European Union Emission Trading System (EU ETS): The Monitoring and Reporting Regulation (MMR) – General guidance for installations
- European Union Emissions Trading System (EU ETS): The Monitoring and Reporting Regulation (MMR) – General guidance for aircraft operators
- French methodology for greenhouse gas emissions assessments by companies V4 (ADEME 2016)
- Hong Kong Environmental Protection Department, Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings, 2010
- ICLEI Local Government GHG Protocol
- IEA CO2 Emissions from Fuel Combustion
- India GHG Inventory Programme
- International Wine Industry Greenhouse Gas Protocol and Accounting Tool
- IPCC Guidelines for National Greenhouse Gas Inventories, 2006
- IPIECA's Petroleum Industry Guidelines for reporting GHG emissions, 2003
- IPIECA’s Petroleum Industry Guidelines for reporting GHG emissions, 2nd edition, 2011
- ISO 14064-1
- Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superseded by Revision of the Act on Promotion of Global Warming Countermeasures (2005 Amendment)
- Korea GHG and Energy Target Management System Operating Guidelines
- National Development and Reform Commission (NDRC) Guidance for Accounting and Reporting of GHG Emissions for Corporates (Trial)
- New Zealand - Guidance for Voluntary, Corporate Greenhouse Gas Reporting
- Philippine Greenhouse Gas Accounting and Reporting Programme (PhilGARP)
- Programa GEI Mexico
- Recommendations for reporting significant indirect emissions under Article 173-IV (ADEME 2018)
- Regional Greenhouse Gas Initiative (RGGI) Model Rule
- Smart Freight Centre: GLEC Framework for Logistics Emissions Methodologies
- Taiwan - GHG Reduction Act
- Thailand Greenhouse Gas Management Organization: The National Guideline Carbon Footprint for organization
- The Climate Registry: Electric Power Sector (EPS) Protocol
- The Climate Registry: General Reporting Protocol
- The Climate Registry: Local Government Operations (LGO) Protocol
- The Climate Registry: Oil & Gas Protocol
- The Cool Farm Tool
- The GHG Indicator: UNEP Guidelines for Calculating Greenhouse Gas Emissions for Businesses and Non-Commercial Organizations
- The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
- The Greenhouse Gas Protocol Agricultural Guidance: Interpreting the Corporate Accounting and Reporting Standard for the Agricultural Sector
- The Greenhouse Gas Protocol: Public Sector Standard
- The Greenhouse Gas Protocol: Scope 2 Guidance
- The Tokyo Cap-and Trade Program
- Toitū carbonreduce programme
- Toitū carbonzero programme
- US EPA Center for Corporate Climate Leadership: Direct Fugitive Emissions from Refrigeration, Air Conditioning, Fire Suppression, and Industrial Gases
- US EPA Center for Corporate Climate Leadership: Indirect Emissions From Events and Conferences
- US EPA Center for Corporate Climate Leadership: Indirect Emissions From Purchased Electricity
- US EPA Center for Corporate Climate Leadership: Direct Emissions from Stationary Combustion Sources
- US EPA Center for Corporate Climate Leadership: Direct Emissions from Mobile Combustion Sources
- US EPA Mandatory Greenhouse Gas Reporting Rule
- US EPA Emissions & Generation Resource Integrated Database (eGRID)
- VfU (Verein fur Umweltmanagement) Indicators Standard
- WBCSD: The Cement CO2 and Energy Protocol
- World Steel Association CO2 emissions data collection guidelines
- Other, please specify
Requested content
General
- There are a variety of standards, methodologies, and protocols available for collecting and reporting GHG data, but the large majority of companies refer to the GHG Protocol.
- The appropriateness of an emissions calculation methodology should be determined on a case-by-case basis, and it is good practice for the methods used to estimate emissions and the underlying data to be externally verified.
- CDP makes no judgments on standards or methodologies applied by companies to produce their inventories. However, we expect that any tool used will follow the best practice and observe important aspects such as the accuracy and completeness principles of standards similar to the GHG Protocol. CDP encourages companies to use the GHG Protocol Corporate Standard when national standards are not specified.
- If the metholology(ies) you have used is not listed, select “Other, please specify;” and indicate the methodology(ies) used.
C6 Emissions data
Module Overview
Reporting emissions is best practice and a prerequisite to understanding and reducing negative environmental impacts.
This module examines emissions data details and is aligned with TCFD Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
Key changes
- New question: C6.5a allows restatements of Scope 3 emissions for previous years.
- Modified questions:
- C6.4a has new columns requesting the estimated size of your organization’s Scope 1 and 2 emissions exclusions.
- C6.5 has new dropdowns for the emissions calculation methodology column, and clarified guidance on disclosure of Scope 3 category 11 “Use of sold products” emissions for companies responsible for the transportation (including maritime), storage, transmission or distribution of fossil fuels.
For the agricultural commodities, food, beverage & tobacco, and paper and forestry sectors only:
- Three removed questions:
- C-AC6.6/C-FB6.6/C-PF6.6 (2021), C-AC6.6a/C-FB6.6a/C-PF6.6a (2021), and C-AC6.6b/C-FB6.6b/C-PF6.6b (2021) about Scope 3 emissions by relevant business activity area.
Click here for a list of all changes made this year.
Sector-specific content
Additional questions on emission intensity metrics for the following high-impact sectors:
- Oil & gas
- Cement
- Steel
- Transport services
Additional questions on Scope 3 emissions, biogenic carbon and agricultural commodities emissions for the following high-impact sectors:
- Agricultural commodities
- Food, beverage and tobacco
- Paper and forestry
Additional questions on life cycle emissions assessment for the following high-impact sectors
- Capital goods
- Construction
- Real estate
Pathway diagram - questions
This diagram shows the general questions contained in module C6. To access question-level guidance, use the menu on the left to navigate to the question.
Scope 1 emissions data
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?
Change from last year
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 last year
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
- For the purpose of CDP reporting, to claim the use of renewable electricity for market-based figures, companies must source renewable electricity from within the boundary of the market in which they are consuming the electricity (i.e. comply with the market boundary criteria). Based on current knowledge, the market boundary is defined for most countries as their geographical boundary, except the following: 1) European countries which are AIB members and 2) United States of America and Canada. Please refer to CDP’s Technical Note on Accounting of Scope 2 emissions for further information.
Scope 2 emissions data
(C6.3) What were your organization's gross global Scope 2 emissions in metric tons CO2e?
Change from last year
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 last year
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 last year
Modified question
Rationale
In some cases it can be difficult to gather data for all sources. Circumstances where this might be the case include sources in countries 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
| Estimated percentage of total Scope 1+2 emissions this excluded source represents | Explain how you estimated the percentage of emissions this excluded source represents |
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 a recent acquisition or merger
- 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 or merger
- 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 or merger
- Emissions are not evaluated
|
Text field [maximum 2,400 characters]
| Numeric field [enter a value of 0-100 with no decimal places] | Text field [maximum 2,500
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 or merger – select this option if you have excluded Scope 1 emissions from this source due to an acquisition or merger that has taken place during the reporting period.
- Emissions are not evaluated – select this option if you have excluded Scope 1 emissions from this source but have not evaluated the relevance of these emissions.
Relevance of Scope 2 (location-based or market-based) emissions from this source (column 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 or merger – select this option if you have excluded Scope 2 emissions from this source due to an acquisition or merger that has taken place during the reporting period.
- Emissions are not evaluated – select this option if you have excluded Scope 2 emissions from this source but have not evaluated the relevance of these emissions.
Explain why this source is excluded (column 5)
- Use this text field to describe why the source is excluded and its significance.
- 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".
Estimated percentage of total Scope 1+2 emissions this excluded source represents (column 6)
- This column is presented if any option other than “Emissions excluded due to recent acquisition or merger” or “Emissions are not evaluated” is selected in column 2, and in either column 3 or column 4.
- This figure should be estimated using the following formula:
Estimated percentage of total Scope 1+2 emissions the excluded source represents = 100% x (Estimated Scope 1+2 emissions the excluded source represents) / (Total gross Scope 1+2 emissions reported in C6.1 and C6.3)
- If you have calculated the Scope 1+2 emissions from the excluded source, use the formula above to provide the percentage of your total, gross, global Scope 1+2 emissions in the reporting year that the excluded source represents.
- If you have not yet calculated Scope 1+2 emissions from the excluded source, or if activity data is unavailable, you may estimate the Scope 1+2 emissions for the excluded source. You should choose an estimation approach that is appropriate to your sector, organization, the excluded source, and the data available. For example, absolute Scope 1+2 emissions could be estimated using the Scope 1+2 emissions intensity of a similar source for which data is available, such as an industry-average emissions intensity for the type of source excluded per e.g. unit revenue, floor area, or FTE employee, or using proxy data and rough estimates. Ensure to be transparent in column 7 with regards to the estimation approach (what is estimated and how), and the data used for the estimation.
Explain how you estimated the percentage of emissions this excluded source represents (column 7)
- This column is presented if any option other than “Emissions excluded due to recent acquisition or merger” or “Emissions are not evaluated” is selected in column 2, and in either column 3 or column 4.
- Explain how you calculated the estimated percentage of your total, gross, global Scope 1+2 emissions that the exclusion represents, including details of any emissions estimations and the estimation approach used.
- State whether you used the location-based or market-based Scope 2 figure from C6.3 in your calculation.
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
|
Estimated percentage of total Scope 1+2 emissions this excluded source represents
|
Explain how you estimated the percentage of emissions this excluded source represents
|
Four
manufacturing facilities in Asia.
|
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 market-based figure for those operations.
|
21%
|
We used a benchmarking approach to estimate the emissions for our four manufacturing facilities in Asia.
We have ten European facilities of a similar size, age and build, for which we have calculated our scope 1 and 2 location-based emissions. We used their emissions data as a proxy to estimate the emissions of the four Asian facilities based on the floor area.
Total scope 1 + 2 (location-based) for 10 European factories = 150,000tCO2e
Total floor area for 10 comparable European facilities = 4000m2
Total floor area for 4 Asian facilities = 1000m2
Estimated emissions for 4 Asian facilities = 150,000 x (1000/4000) = 37,500tCO2e
Estimated percentage of total Scope 1+2 emissions = 100% x 37,500/(37,500+150,000) = 20%
|
Additional information
Relevance in GHG reporting
- The GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (page 24) provides the following definition of relevance for GHG reporting: “A relevant GHG report contains the information that users – both internal and external to the company – need for their decision making. Companies should use the principle of relevance when determining whether to exclude any activities from the inventory boundary. Companies should also use the principle of relevance as a guide when selecting data sources. Companies should collect data of sufficient quality to ensure that the inventory is relevant (i.e., that it appropriately reflects the GHG emissions of the company and serves the decision-making needs of users) (...) and should not exclude any activities from the inventory that would compromise the relevance of the reported inventory.”
- A practical rule of thumb often applied to evaluate the relevance of an emissions’ source or activity is to consider the sources that contribute to 95% of the emissions inventory once sources are listed by the size of emissions. This rule is of practical value in particular when a low number of sources contribute to a large proportion of the total emissions while a large number of sources contribute to a small percentage of emissions. In order to utilize the 95% threshold, the emissions from all sources or activities need to be quantified or estimated to ensure they meet this threshold. Relevance should apply not only to the size of emissions, but also other criteria, such as the potential to drive emissions reductions, the cost-benefit of gathering the data, stakeholder expectations, and potential uses of the data.
- Relevance of emissions should not be limited to sustainability topics that have a significant financial impact on your organization, or “materiality”.
- Examples of circumstances where the reasons for excluding known emissions sources from the GHG statement may not be reasonable include:
- The entity has relevant Scope 1 emissions but only includes Scope 2 emissions in its CDP disclosure.
- The boundary has been defined, but particular geographies within the boundary are not being reported although they represent relevant emissions; and
- The emissions reported exclude business divisions/areas of business with relevant emissions which are only a small proportion of the total emissions included in the GHG statement (i.e., once emissions are quantified at a sufficient level of quality they should be included in the inventory, even if they represent only a small share of the total).
Methodologies for estimating emissions from excluded sources
- Where verifiable data is not available, organizations may estimate emissions data by:
- Direct comparison: using data from another comparable time period to fill the gap for the excluded source e.g. emissions from the same time period in another year.
- Pro-rata extrapolation: using average data from one period of time to estimate data for another shorter period e.g. using average daily emissions from 1st January to 30th November to estimate emissions for 1st to 31st December.
- Benchmarking: using emissions or activity data for one asset or business activity as a proxy to estimate emissions or activity data for another asset or business activity e.g. using the annual emissions of one office to estimate emissions from another office of similar size, age or build.
Scope 3 emissions data
(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing and explaining any exclusions.
Change from last year
Modified question
Rationale
For most companies, the majority of emissions occur in the value chain. CDP asks this question to gauge the thoroughness of companies’ accounting processes and to understand how companies are analyzing their emissions footprints.
Connection to other frameworks
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
|
Emissions in reporting year (metric tons CO2e)
|
Emissions calculation methodology
|
Percentage of emissions calculated using data obtained from suppliers or value chain partners
|
Please explain |
Purchased goods and services
|
Select from:
- Relevant, calculated
- Relevant, not yet calculated
- Not relevant, calculated
- Not relevant, explanation provided
- Not evaluated
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Select all that apply:
- Supplier-specific method
- Hybrid method
- Average data method
- Spend-based method
- Average product method
- Average spend-based method
- Fuel-based method
- Distance-based method
- Waste-type-specific method
- Asset-specific method
- Lessor-specific method
- Site-specific method
- Methodology for direct use phase emissions, please specify
- Methodology for indirect use phase emissions, please specify
- Franchise-specific method
- Investment-specific method
- Other, please specify
|
Numerical field [enter a number from 0-100 using a maximum of 2 decimal places and no commas]
|
Text field [maximum 2,400 characters]
|
Capital goods
|
|
|
|
|
|
Fuel-and-energy-related activities (not included in Scope 1 or 2)
|
|
|
|
|
|
Upstream transportation and distribution
|
|
|
|
|
|
Waste generated in operations
|
|
|
|
|
|
Business travel
|
|
|
|
|
|
Employee commuting
|
|
|
|
|
|
Upstream leased assets
|
|
|
|
|
|
Downstream transportation and distribution
|
|
|
|
|
|
Processing of sold products
|
|
|
|
|
|
Use of sold products
|
|
|
|
|
|
End of life treatment of sold products
|
|
|
|
|
|
Downstream leased assets
|
|
|
|
|
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Franchises
|
|
|
|
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|
Investments [row hidden for FS sector companies, data point requested in C-FS14.1a]
|
|
|
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|
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Other (upstream)
|
|
|
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Other (downstream)
|
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|
|
Requested content
General
- According to the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (page 107): “Any estimates of avoided
emissions must be reported separately from a company’s Scope 1, Scope 2, and
Scope 3 emissions, rather than included or deducted from the Scope 3
inventory”. In the context of your CDP response, you can provide information on
actions you take to reduce your Scope 3 emissions in question C4.3b on
emissions reduction initiatives.
- You should complete every row of the table (with the
exception of the last two rows “Other (upstream)” and “Other (downstream)”
which are optional), but not necessarily all columns.
- The columns that you need to complete in response to
question C6.5 will depend on your selection made in the “Evaluation status”
column and are summarized in the guidance below for column 2 “Evaluation
status”.
Scope 3 category (column 1)
- This column is already completed in the ORS and all
categories will appear. The categories of Scope 3 emissions have been taken
from the Greenhouse Gas Protocol’s
Corporate Value Chain (Scope 3) Accounting and Reporting Standard, published in September 2011. Companies should refer to
the standard for information on the emissions sources that each category
comprises and additional information on how to calculate these emissions.
Evaluation status (column 2)
This column should be completed for all Scope 3 categories,
with the exception of “Other (upstream)” and “Other (downstream)” – these two
rows should only be used if companies have a source of Scope 3 emissions that
is not provided in the categories above. The evaluation status includes two
components: whether a Scope 3 category is relevant to your business and whether
you have calculated the emissions in that category. Relevance should be determined
with reference to the GHG Protocol Scope 3 standard and
CDP's Technical Note on the relevance of Scope 3 categories by sector – see
Additional
Information for the Scope 3 relevance criteria
. Select from:
- Relevant, calculated - Select this option if the Scope 3
category is relevant to your business and you have calculated the emissions associated with at
least part of it.
- Relevant, not yet calculated - Select this option if you are
aware that the Scope 3 category is relevant to your business but you have not
yet calculated the emissions associated with it.
- Not relevant, calculated - Select this option if you know
that this Scope 3 category is not one of the most important for your business but as part
of your Scope 3 work, you have been able to calculate the emissions associated
with it.
- Not relevant, explanation provided - Select this option if
you have investigated this Scope 3 category and have been able to
determine that it is not relevant. This could be based on quantitative or
qualitative investigations.
- Not evaluated - Select this option if you have not yet
investigated this Scope 3 category and therefore do not know whether or not it is
relevant for your business.
Emissions in reporting year (metric tons CO2e) (column 3)
- This column is only presented if “Relevant, calculated” or “Not relevant, calculated” is selected in column 2 “Evaluation status”.
- Enter the emissions appropriate to each Scope 3 category identified in metric tons CO2e, entering numbers only up to 99,999,999,999 without commas and up to 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 the emissions associated with this category and they are equal to zero.
Emissions calculation methodology (column 4)
- This column is only presented if “Relevant, calculated” or “Not relevant, calculated” is selected in column 2 “Evaluation status”.
- Select the calculation methodology(ies) used to calculate the emissions associated with this Scope 3 category.
- You should consult the GHG Protocol’s Technical Guidance for Calculating Scope 3 Emissions for details of which emissions calculations methodologies are relevant to each Scope 3 category.
Percentage of emissions calculated using data obtained from suppliers or value chain partners (column 5)
- This column is only presented if “Relevant, calculated” or “Not relevant, calculated” is selected in column 2 “Evaluation status”.
- Such data obtained from suppliers or value chain partners may take the form of primary activity data, or emissions data calculated by suppliers that are specific to suppliers’ activities. More information on this can be found in Chapter 7, Collecting Data, of the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Please explain (column 6)
- For all Scope 3 categories that you have identified as “Relevant, calculated” or “Not relevant, calculated” in the “Evaluation status” column, provide a short description of the types and sources of data used to calculate emissions (e.g. activity data, emission factors and GWP values), and any further details of the emissions calculation methodology(ies) selected in column 5 such the assumptions and allocation methods used and any exclusions within the category.
- For all Scope 3 categories that you have identified as “Not relevant, explanation provided” in the “Evaluation status” column, provide details of how you have reached the conclusion that the source is not relevant and include any qualitative or quantitative reasoning.
- If you wish to provide additional context to any of the rows in the table, such as to explain why emissions have decreased or increased, you can also do that in this column.
Note for all high-impact sector companies:
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 companies responsible for the transportation (including maritime), storage, transmission and distribution of fossil fuels:
- Scope 3 emissions from the handling of fossil fuels can be significant, as highlighted by the IEEFA. Therefore, companies responsible for the transportation (including maritime), storage, transmission and distribution of fossil fuels should disclose emissions from the final use of these products as Scope 3 category 11 “Use of Sold Products”.
- Scope 3 category 11 emissions from fossil fuels should be calculated based on the throughput of fossil fuel products in your operations during the reporting year.
- As per the ACT initiative’s O&G Sector methodology, these emissions are a consequence of a companies’ activities even though the fossil fuels may not be owned by the company and thus are included in Scope 3.
- Please refer to the CDP Technical Note “Guidance methodology for the estimation of Scope 3 category 11 emissions for oil and gas companies” for further guidance.
Example Response
Example response for the selection of
“Relevant, calculated” in column 2.
Scope 3 category
|
Evaluation status
|
Emissions in reporting year (metric tons CO2e)
|
Emissions calculation methodology
|
Percentage of emissions calculated using data obtained from suppliers or value chain partners
|
Please explain
|
Downstream transportation and distribution
|
Relevant, calculated
|
486,000
|
Distance-based method
|
80
|
To calculate upstream product transportation and distribution we used shipping weight and distance data provided by our logistics division based on fiscal year 2021 shipment data, which provides resolution to final destinations at the UK county level.
Emissions were calculated using UK Government GHG Conversion Factors for Company Reporting, using a kgCO2e per tonne.km emission factor for an average-laden HGV.
Where data was not available, final truck shipment from distribution centers to final destinations was estimated as 200 kilometers.
|
Example response for the selection of
“Not relevant, explanation provided” in column 2.
Scope 3 category
|
Evaluation status
|
Emissions in reporting year (metric tons CO2e)
|
Emissions calculation methodology
|
Percentage of emissions calculated using data obtained from suppliers or value chain partners
|
Please explain
|
Franchises
|
Not relevant, explanation provided
|
N/A
|
N/A
|
N/A
|
We do not have any franchises, so this category is not relevant to our organization.
|
Additional information
- Scope 3 screening tool: To help facilitate the adoption of the Scope 3 Standard and assist companies in determining the relevance of Scope 3 emissions sources, the GHG Protocol, in collaboration with Quantis, have released a free Scope 3 screening tool. This tool asks a number of relatively simple questions to approximate your Scope 3 inventory, and can be used by companies of all sizes and all sectors. Please note that this tool is not a data collection tool and should only be used to make a first approximation of your Scope 3 emissions. Having used the tool to help determine the relevance of Scope 3 categories, companies should then develop more accurate approaches for categories shown to be a relevant source of emissions.
(C6.5a) Disclose or restate your Scope 3 emissions data for previous years.
Question dependencies
This question only appears you select “Yes” in response to column “Indicate if you are providing emissions data for past reporting years” in C0.2.
Change from last year
New question
Rationale
A prerequisite for a meaningful emissions data comparison is a consistent data set over time. This question enables companies to restate Scope 3 emissions data previously supplied to CDP, for example to ensure that their historical data reflects their current organizational boundary. It also enables first-time responders to provide Scope 3 emissions data for the three years prior to the reporting year.
Connection to other frameworks
TCFD
Metrics and Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
SDG
Goal 12: Responsible consumption and production
Goal 13: Climate action
2018 RobecoSAM Corporate Sustainability Assessment (DJSI)
Scope 3
Response options
Please complete the following table:
Year
|
Start date
|
End date
|
Scope 3: Purchased goods and services (metric tons CO2e)
|
Scope 3: Capital goods (metric tons CO2e)
|
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2) (metric tons CO2e)
|
Scope 3: Upstream transportation and distribution (metric tons CO2e)
|
Past year 1 [Only ‘appears’ if 1 year or 2 years or 3 years is selected in column 4 of C0.2]
|
[DD/MM/YYYY]
|
[DD/MM/YYYY]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Past year 2 [Only ‘appears’ if 2 years or 3 years is selected in column 4 of C0.2]
|
|
|
|
|
|
|
Past year 3 [Only ‘appears’ if 3 years is selected in column 4 of C0.2]
|
|
|
|
|
|
|
Scope 3: Waste generated in operations (metric tons CO2e)
|
Scope 3: Business travel (metric tons CO2e)
|
Scope 3: Employee commuting (metric tons CO2e)
|
Scope 3: Upstream leased assets (metric tons CO2e)
|
Scope 3: Downstream transportation and distribution (metric tons CO2e)
|
Scope 3: Processing of sold products (metric tons CO2e)
|
Scope 3: Use of sold products (metric tons CO2e)
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scope 3: End of life treatment of sold products (metric tons CO2e)
|
Scope 3: Downstream leased assets (metric tons CO2e)
|
Scope 3: Franchises (metric tons CO2e)
|
Scope 3: Investments (metric tons CO2e) [column hidden for FS sector companies]
|
Scope 3: Other (upstream) (metric tons CO2e)
|
Scope 3: Other (downstream) (metric tons CO2e)
|
Comment
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Text field [maximum 5,000 characters]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Requested content
General
- Emissions must be reported in gross, not net figures. Therefore, negative numbers are not allowed.
- Entering zero suggests that you have measured your emissions and that they are equal to zero.
- You should enter data for all Scope 3 categories for which emissions have been calculated for the reporting period specified in columns 2 and 3. If you have not calculated emissions for a Scope 3 category for that reporting period, leave the corresponding column blank.
- Ensure that the reporting period represents only one full year that has already passed. Reporting periods should not be in the future. This information is important for others to understand the time dimension of your disclosure.
- Emissions estimates are acceptable, as long as there is transparency with regard to the estimation approach (what is estimated and how) and the data used for the analysis is adequate to support the objectives of the inventory. If applicable to your organization's reporting of Scope 3 emissions, please outline this in the comment column.
Note for first time responders
- If you are a first-time responder, please provide gross global Scope 3 emissions data for the three years prior to the current reporting year.
- Input Scope 3 emissions data for the year prior to the current reporting year in the first row and work backwards.
- Use the comment column to report relevant information regarding your organization's past Scope 3 emissions data, such as the emissions calculation methodologies used, and an indication of the proportion of emissions calculated using data obtained from suppliers or value chain partners.
Note for restatements
- If you have chosen to restate your organization's gross global Scope 3 emissions data previously supplied to CDP by adding additional reporting years to C0.2, you may do so here. If you have restated Scope 1 and 2 emissions data in C6.1 and C6.3 but do not wish to restate Scope 3 emissions data, you may leave this question blank.
- Reporting recalculated figures for these years is optional.
- Restated Scope 3 emissions data needs to be entered in reverse order i.e. you should work backwards from the most recent reporting year.
- Use the comment column to identify that this is restated data and the reason for the restatement.
- For more information on restatements see the CDP technical note on restatements here.
Note for financial services sector companies:
- Column 18 “Scope 3 Category 15 “Investments” emissions” is not shown to financial services sector companies.
Questions C6.8 and C6.9 only apply to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
Emissions intensities
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unit currency total revenue and provide any additional intensity metrics that are appropriate to your business operations.
Change from last year
No change
Rationale
Intensity measures describe an organization’s CO2e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth 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
|
0.06
|
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. These gases are often only reported in CO2-equivalents (CO2e), and so their contribution to overall emissions is sometimes masked.
Key changes
- Modified question: C7.5 - columns “Purchased and consumed electricity, heat, steam or cooling (MWh)” and “Purchased and consumed low-carbon electricity, heat, steam or cooling accounted for in Scope 2 market-based approach (MWh)” have been removed.
For the oil and gas sector only:
- Modified guidance: C-OG7.1b, 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 and C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7 - the definition of midstream activities has been revised to include the transportation, storage, and distribution of crude oil and natural gas.
Click here for a list of all changes made this year.
Sector-specific content
Additional questions on emission breakdowns for the following high-impact sectors:
- Agricultural commodities
- Capital goods
- Cement
- Chemicals
- Coal
- Electric utilities
- Food, beverage & tobacco
- Metals & mining
- Oil & gas
- Paper and forestry
- Steel
- Transport original equipment manufacturers (OEMs)
- Transport services
Pathway diagram - questions
This diagram shows the general questions contained in module C7. To access question-level guidance, use the menu on the left to navigate to the question.
Scope 1 breakdown: GHGs
Question C7.4 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
- Coal
- Electric utilities
- Oil and gas
- Cement
- Chemical
- Metals and mining
- Steel
- Transport OEMs
- Transport services
Question C-CE7.7/C-CH7.7/C-CO7.7/C-MM7.7/C-OG7.7/C-ST7.7/C-TO7.7/C-TS7.7 only applies to organizations with activities in the following sectors:
- Cement
- Chemicals
- Coal
- Metals & mining
- Oil & gas
- Steel
- Transport OEMS
- Transport services
Question C7.8 only applies to organizations with activities in the following sectors:
- Chemicals
- Transport manufacturers
Emissions performance
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?
Change from last year
No change
Rationale
Investors and data users are interested in understanding whether companies are successfully reducing their emissions year over year.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 12: Responsible consumption and production
Goal 13: Climate action
Response options
Select one of the following options:
- Increased
- Decreased
- Remained the same overall
- This is our first year of reporting, so we cannot compare to last year
- We don’t have any emissions data
Requested content
General
- This question requires you to select the option from the drop-down menu that best describes how your combined Scope 1 and 2 emissions have changed compared with the previous year.
- The change in emissions can be calculated using the following formula:
Total gross Scope 1+2 emissions for the current reporting year – previous year’s total gross Scope 1+2 emissions = total change in emissions
- If the resulting figure is negative, then your company’s overall emissions decreased compared to the previous year. If the resulting figure is positive, overall emissions have increased compared to the previous year. If the resulting figure is equal to zero, overall emissions have not changed compared to the previous year.
- In this context your Scope 1 emissions are the figure supplied in response to question C6.1, and your Scope 2 emissions are the figure supplied in response to question C6.3.
- If the previous year’s figures have been restated, please refer to CDP’s Technical Note on “Restatements” on whether to use the emissions figures originally reported to CDP or the restated figures for the calculation. The previous year compared should apply to the 12-month period directly prior to the reporting period, even if it does not completely overlap with the period previously reported to CDP.
(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined), and for each of them specify how your emissions compare to the previous year.
Question dependencies
This question only appears if you select “Increased”, “Decreased” or “Remained the same overall” in response to C7.9.
Change from last year
No change
Rationale
When investigating how year-on-year gross global emissions (Scope 1 + 2 combined) have changed, CDP and its investors are interested in changes at a granular level; thus allowing CDP’s data users to gain an insight into factors than have contributed to these changes.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Response options
Please complete the following table:
Reason
|
Change in emissions (metric tons CO2e)
|
Direction of change
|
Emissions value (percentage)
|
Please explain calculation
|
Change in renewable energy consumption
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 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 tons is attributed to two reasons: 1) an increase in 12 metric tons of CO2e emissions due to increased production (i.e. a change in output); and 2) an estimated reduction of 4 metric tons of CO2e achieved due to emissions reduction activities.
The emissions value (percentage) for each of these two individual factors can also be calculated using the same formula described in the guidance, above. In this example, the percentage change in emissions due to increased production is: (12/200) * 100 = 6%. This represents a 6% increase in emissions due to increased production.
The percentage change in emissions due to emissions reduction activities: (-4/200) * 100 = -2%. This represents a 2% decrease in emissions due to emissions reduction activities.
This company should respond in the following way to questions C7.9 and C7.9a:
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?
Increased
(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year.
Reason
|
Change in emissions (metric tons CO2e)
|
Direction of change
|
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 last year
No change
Rationale
This question provides more transparency on how your organization’s emissions performance figures are derived.
Response options
Select one of the following options:
- Location-based
- Market-based
- Don’t know
Requested content
General
- In alignment with the GHG Protocol Scope 2 Guidance, companies are only required to compare their Scope 2 emissions for either their location-based or market-based figure, but are required to be transparent about which figure they use.
- You should only select one option, as your market-based figure may inherently be a combination of location-based and market-based calculations if you have operations in regions where there are contractual instruments, and other operations in regions where there are not contractual instruments.
C8 Energy
Module Overview
Energy related activities represent, for many sectors, the most significant GHG emission sources. This module provides transparency on the consumption and generation of energy by organizations.
Accurate emissions accounting depends on a comprehensive account of energy. It is expected that organizations have already collected the necessary energy data for the disclosure of emissions in previous modules. Unless otherwise stated in the question-specific guidance, energy generation data requested in this module is in alignment with Scope 1 emissions sources i.e. from generating units owned or controlled by the organization. The requested data on purchased or acquired energy is in alignment with Scope 2 emissions reporting.
Key changes
- New question: C8.2g requests a breakdown of your organization’s non-fuel energy consumption by country.
- Modified questions:
- C8.2c has three columns on emissions factors removed, and fuel options simplified.
- C8.2e has four new columns requesting further details of your organization’s low-carbon energy sourcing and consumption, and revised drop-downs to improve data collection.
For RE100 members only:
- Six new questions:
- C8.2h requests your organization’s renewable energy purchases by country (replaces C8.2e which will no longer be shown to RE100 members).
- C8.2i requests your organization’s low-carbon heat, steam, and cooling purchases by country (replaces C8.2e which is no longer shown to RE100 members).
- C8.2j requests your organization’s renewable generation by country.
- C8.2k requests a description of how your organization’s renewable energy sourcing strategy contributes to bringing new capacity into the grid.
- C8.2l requests details of any barriers and challenges to renewable energy sourcing.
- C8.2m requests details of any country-specific barriers and challenges to renewable energy sourcing.
For the cement sector only:
- Modified question: C-CE8.2c fuel options simplified.
For the chemicals sector only:
- Modified questions:
- C-CH8.2a three new columns asking for energy consumed within the sector boundary of your organization from renewable and non-renewable sources, and from recovered waste heat/gases.
- C-CH8.2d three new columns asking for energy generated within the sector boundary of your organization from renewable sources and from recovered waste heat/gases.
For the steel sector only:
- Modified questions:
- C-ST8.2a three new columns asking for energy consumed within the sector boundary of your organization from renewable and non-renewable sources, and from recovered waste heat/gases.
- C-ST8.2d three new columns asking for energy generated within the sector boundary of your organization from renewable sources and from recovered waste heat/gases.
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 last year
No change
Rationale
The aim of this question is to identify the degree to which your organization’s activities are sensitive to energy costs and energy supply.
Response options
Select one of the following options:
- 0%
- More than 0% but less than or equal to 5%
- More than 5% but less than or equal to 10%
- More than 10% but less than or equal to 15%
- More than 15% but less than or equal to 20%
- More than 20% but less than or equal to 25%
- More than 25% but less than or equal to 30%
- More than 30% but less than or equal to 35%
- More than 35% but less than or equal to 40%
- More than 40% but less than or equal to 45%
- More than 45% but less than or equal to 50%
- More than 50% but less than or equal to 55%
- More than 55% but less than or equal to 60%
- More than 60% but less than or equal to 65%
- More than 65% but less than or equal to 70%
- More than 70% but less than or equal to 75%
- More than 75% but less than or equal to 80%
- More than 80% but less than or equal to 85%
- More than 85% but less than or equal to 90%
- More than 90% but less than or equal to 95%
- More than 95% but less than or equal to 100%
- Don’t know
Requested content
General
- Ensure that the boundary used for calculating your operational spend is the same as that for your energy spend (i.e. it includes the same facilities, geographies, etc.).
- “Operational spend” should exclude extraordinary expenses such as gains or losses on the sale of assets. The calculation should also exclude the cost of interest or taxes on profits.
Explanation of terms
- Operational spend: Operational spend should be the sum of the costs for the following two types of costs to the business:
- Cost of goods sold (also known as 'direct costs'): This generally refers to the raw material, energy and labor costs directly identified in the cost of the end product. These costs fluctuate and vary depending on the number or volume of goods sold.
- Operating costs (also known as 'indirect costs' or 'overheads'): This generally refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular job or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
Energy-related activities
(C8.2) Select which energy-related activities your organization has undertaken.
Question dependencies
The energy-related activities that you select in response to C8.2 determine which energy breakdowns you will be prompted to respond to in the proceeding questions. Please note, if your response to C8.2 is amended, data in dependent questions may be erased.
Change from last year
No change
Rationale
This question provides data users with information on the organization’s consumption of energy forms relating to Scope 1 and Scope 2 emissions, and transparency on the generation of energy.
Response options
Please complete the following table:
Activity
|
Indicate whether your organization undertook this energy-related activity in the reporting year
|
Consumption of fuel (excluding feedstocks)
|
Select from:
|
Consumption of purchased or acquired electricity
|
|
Consumption of purchased or acquired heat
|
|
Consumption of purchased or acquired steam
|
|
Consumption of purchased or acquired cooling
|
|
Generation of electricity, heat, steam, or cooling
|
|
Requested content
Consumption of fuel (excluding feedstocks) (Row 1)
- You should select ‘Yes’ in row 1 ‘Consumption of fuel (excluding feedstocks)’ if fuel was consumed inside your organizational boundary in the reporting year. All fuels accounted for in the calculation of Scope 1 emissions (C6.1) and fuels accounted for in the calculation of emissions from biogenic carbon (C6.7a) are included. Consumption of nuclear fuel is not included.
Consumption of purchased or acquired electricity heat, steam and/or cooling (Rows 2-5)
- You should select ‘Yes’ in rows 2-5 according to whether your organization has consumed electricity, heat, steam, and/or cooling that was purchased or acquired, i.e. brought into the organizational boundary. This excludes consumption of electricity, heat, steam or cooling that was produced by the organization, i.e. from inside the organizational boundary. It also excludes purchased or acquired electricity, heat, steam or cooling that is not consumed inside the organizational boundary.
- Purchased or acquired electricity, heat, steam or cooling that is wasted should still be counted as consumption.
- The activities of rows 2-5 are aligned with the boundary for Scope 2 emissions.
Generation of electricity, heat, steam, or cooling (Row 6)
- You should select ‘Yes’ in row 6 if your organization generated electricity, heat, steam, or cooling in the reporting year, regardless of whether this generation was consumed, exported, or wasted.
Explanation of terms
- Excluding feedstocks: Fuels consumed as feedstocks are fuels that are not combusted for energy purposes. For example, naphtha and ethane are feedstocks that may be converted into petrochemical products such as ethylene, and should not be included. The steel industry is a special case because coke and fuel injectants consumed at the blast furnace serve as feedstocks and a source of energy. These fuels are considered feedstocks and should not be counted. However, all fuels consumed that are derived from fuel feedstocks, e.g. blast furnace gas, coke oven gas, and smelting reduction gas, should be counted. Companies that consume fuel as feedstocks will have the opportunity to disclose these fuels in sector specific questions.
- Purchased or acquired electricity, steam, heat, cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational/sector boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from an industrial process, should still be accounted for if it is consumed.
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.
Question dependencies
This question only appears if you select “Yes” to any of the activities listed in C8.2. A row will appear in this table for each energy-related activity selected in C8.2. The "Total energy consumption" row will always appear.
Change from last year
No change
Rationale
Given the importance of energy consumption in emissions accounting, this question attempts to provide transparency to data users on the consumption of energy by the organization. The question provides the opportunity for organizations to disclose their total energy consumption and distinguish renewable and non-renewable forms of energy.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 12: Responsible consumption and production
Goal 13: Climate action
Response options
Please complete the following table:
Activity
|
Heating value
|
MWh from renewable sources
|
MWh from non-renewable sources
|
Total (renewable + non-renewable) MWh
|
Consumption of fuel (excluding feedstock)
|
Select from:
- LHV
(lower heating value)
- HHV (higher heating value)
- Unable to confirm heating value
|
Numerical field [enter a number from 0 to 9,999,999,999 using up to 2 decimal places and no commas]
|
Numerical field [enter a number from 0 to 9,999,999,999 using up to 2 decimal places and no commas]
|
Numerical field [enter a number from 0 to 9,999,999,999 using up to 2 decimal places and no commas]
|
Consumption of purchased or acquired electricity
|
N/A
|
|
|
|
Consumption of purchased or acquired heat
|
N/A
|
|
|
|
Consumption of purchased or acquired steam
|
N/A
|
|
|
|
Consumption of purchased or acquired cooling
|
N/A
|
|
|
|
Consumption of self-generated non-fuel renewable energy
|
N/A
|
|
N/A
|
|
Total energy consumption
|
N/A
|
|
|
|
Requested content
General
- Figures you provide should be for the reporting year only (as defined by your answer to C0.2).
- If you have reported a market-based Scope 2 figure in question C6.3, you should use the market-based approach to calculate the share of renewable energy consumed in this question. This should be based on the same data sources as your applied emission factors and should be consistent with the market-based Scope 2 emission factor hierarchy. For example, if you purchased Energy Attribute Certificates (EACs) to claim half of your electricity consumption as renewable, you will need to use the relevant data source(s) from the emission factor hierarchy (e.g. residual mix data) to work out the share of renewables in the remaining half.
- If you have only reported a location-based Scope 2 figure in question C6.3, you should use the location-based approach to calculate the share of renewable energy consumed in this question using the location-based Scope 2 emission factor hierarchy.
- If you do not consume an energy carrier, then you should enter zero (0) in the relevant field.
- This table is for gross energy consumption data only. You should not provide net consumption nor deduct for energy produced or exported from the organizational boundary. Because feedstock fuels are excluded from this question, this approach should not lead to double counting.
- You should enter all energy data in Mega-Watt-hours (MWh). If your raw data is in energy units other than MWh, such as Giga-Joules (GJ) or British Thermal Units (Btu), then you should convert to MWh. For e.g., 1 Giga-Joule (GJ) = 0.277778 MWh, so if your data is in GJ then should multiply your data by 0.277778. If your data is in million Btu, then you need to multiply your data by 0.29307.
- Conversion factors from other energy units are available from a variety of online calculation tools, including from IEA and OnlineConversion.com, or from conversion tables such as those in EPA AP-42 (Annex A).
- If your raw data is in volume units, e.g. cubic feet or gallons, or in mass units, e.g. kilograms (kg) or pounds (lb), then you should convert to energy units using factors for fuel heating/calorific values. These are available from numerous sources, some of which are listed below:
- IPCC Guidelines for National GHG Inventories (Volume 2, Table 1.2, p1.18-1.19)
- EPA AP-42 (Annex A)
- IEA Statistics Manual (Annex 3, p180-183)
- API Compendium (Table 3-8, p3.20-3.21)
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, coke oven gas, and smelting reduction gas, should be counted. Companies that consume fuel as feedstocks will have the opportunity to disclose these fuels in sector specific questions.
- Heating Value: Lower heating value (LHV) and Higher heating value (HHV), also known as net calorific value (NCV) and gross calorific value (GCV) respectively, are different measures of heat energy released from fuel combustion. Figures measured in HHV are larger because HHV includes the latent heat of water vaporization from combustion, whereas LHV does not. The difference between LHV and HHV is related to the fuel’s hydrogen content.
- Purchased or acquired electricity, steam, heat, cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from a third party’s industrial processes, should still be accounted for if it is consumed.
(C8.2g) Provide a breakdown of your non-fuel energy consumption by country.
Change from last year
New question
Rationale
Breaking down energy consumption to the country or regional level is useful to data users as this is often the level at which energy-related legislation is introduced. Data from this question can help state, region and sub-national bodies guide the development of energy-related legislation.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Goal 13: Climate action
RE100
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
*Column presented to RE100 members only.
Country/area | Consumption of electricity (MWh) | Consumption of heat, steam, and cooling (MWh) | Total non-fuel energy consumption (MWh) [Auto-calculated]
| Is this consumption excluded from your RE100 commitment?*
|
---|
Select from: [Country/area drop-down list]
| Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places] | Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places] | Numerical field [0-999,999,999,999] | Select from:
|
[Add row]
Requested content
General
- You should include consumption from both purchased/acquired energy and self-generated energy in this question. Energy that is purchased but not physically consumed (e.g. traded power, financial instruments), or energy that is self-generated but not physically consumed, should not be included here.
- Energy consumption figures should be for the reporting year only (as defined by your answer to C0.2).
- If you are a member of the RE100 initiative, the loads that are excluded from your RE100 commitment should still be reported in this question.
Country/area (column 1)
- Select a country/area in accordance with CDP’s Technical Note on “Countries and regions”.
- For countries such as the USA, Canada, or Brazil where several grids can exist within a country, companies are welcome to provide further breakdown details at state/sub-national level using “Other, please specify”.
Consumption of electricity (MWh) (column 2)
- Enter in megawatt hours (MWh) the total amount of electricity consumed by your organization in the selected country/area in the reporting year.
- If your organization has self-generated and consumed electricity using Combined Heat and Power (CHP), this electricity consumption should be included here.
Consumption of heat, steam, and cooling (MWh) (column 3)
- Enter in megawatt hours (MWh) the total amount of heat, steam, and cooling consumed by your company in the selected country/area in the reporting year.
Total non-fuel energy consumption (MWh) (column 4)
- This column will be auto-calculated in the ORS from the “Consumption of electricity” and “Consumption of heat, steam, and cooling” columns. Ensure you have entered data into these columns.
Is this consumption excluded from your RE100 commitment? (column 5)
- This column only appears to RE100 companies.
- RE100 member companies may exclude from their commitment the electricity consumption from certain operations, facilities, or offices, up to 100MWh per year per country and with a total limit of 500 MWh globally. Please refer to the RE100 Materiality Threshold Technical Guidance for more information.
- This exclusion is only valid for countries or markets where it is not technically feasible to source renewable electricity via any credible sourcing options such as Energy Attribute Certificates (EACs). The excluded loads must still be reported on, however. Select “Yes” in this column to indicate that the selected load is excluded from your RE100 target commitment.
C9 Additional metrics
Module Overview
This module requests reporting organizations to present relevant climate-related metrics that may indirectly or directly impact their emissions or energy use.
This module includes one general question on additional climate-related metrics and a number of sector-specific questions on metrics such as production outputs, low-carbon technology implementation, transfers & sequestration of CO2 emissions and low-carbon investments.
Key changes
For the electric utilities sector only:
- Modified question: C-EU9.5a has changed from an “add row” table to a “fixed row” table, and has been revised to ask for absolute CAPEX figures for power generation from each source in the reporting year, and CAPEX as a percentage of total CAPEX for power generation from each source in the reporting year and over the next 5 years. The column “End year of CAPEX” plan has been removed.
Click here for a list of all changes made this year.
Sector-specific content
Additional questions on climate-related metrics for the following high-impact sectors:
- Capital goods
- Cement
- Chemicals
- Coal
- Construction
- Electric utilities
- Metals & mining
- Oil & gas
- Real estate
- Steel
- Transport original equipment manufacturers (OEMs)
- Transport services
Pathway diagram - questions
This diagram shows the general questions contained in module C9. To access question-level guidance, use the menu on the left to navigate to the question.
Other climate-related metrics
(C9.1) Provide any additional climate-related metrics relevant to your business.
Change from last year
No change
Rationale
CDP data users seek to understand in which areas, beyond GHG emissions, companies are trying to reduce their environmental impacts.
Connection to other frameworks
TCFD
Metrics & Targets recommended disclosure a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Description
|
Metric value
|
Metric numerator
|
Metric denominator (intensity metric only)
|
% change from previous year
|
Direction of change
|
Please explain
|
Select from:
- Waste
- Energy usage
- Land use
- Other, please specify
|
Numerical field [enter a number from 0 to 99,999,999,999 using up to 2 decimal places]
|
Text field [maximum 50 characters]
|
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
Click here for a list of all changes made this year.
Pathway diagram - questions
This diagram shows the general questions contained in module C10. To access question-level guidance, use the menu on the left to navigate to the question.
Verification
(C10.1) Indicate the verification/assurance status that applies to your reported emissions.
Change from last year
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.
Additional information
Annual, biennial and triennial processes: If in the year the verification is completed (for example, Year 3), the data for all sources during the full cycle is verified (for example year 1, 2, and 3) the company can report 100% verification and should attach the verification statements that cover the emissions for all three years. This would be considered a triennial process. Graph of this situation is provided for clarity below (Figure 1).
Annual processes: Not all processes taking place over three years will be considered a triennial process. The graphs below illustrate annual processes, which should not be confused with triennial.
Figure 2 shows an annual process, where in the year the verification is completed (for example, Year 3) only the data for that year is verified.
Another example of a yearly process is when one third of the sources is verified every year (Figure 3). Under this scenario, in Year 3 only 1/3 of the sources are verified, with the second third verified in Year 2, and the remaining third in Year 1. The company should report this as a yearly process where 33% of the sources are verified.
Likewise, where a company has 1/3 of their emissions verified every year this is an annual process (Figure 4):
CDP regards verification/assurance as a process undertaken by an independent third party accredited to perform verification/assurance of the GHG emissions data. Please only state that you have had or are having verification/assurance carried out if it is by an independent third party accredited to perform verification/assurance of GHG data. CDP does not prescribe companies’ choice of specific verification/assurance providers. However, companies searching for a provider may want to consult our list of accredited verification partners: Learn more about CDP solution providers offering third party verification services here.
(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 emissions and attach the relevant statements.
Question dependencies
This question only appears if you select “Third-party verification or assurance process in place” for Scope 1 emissions in response to C10.1.
Change from last year
Minor Change
Rationale
CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.
Connection to other frameworks
RE100
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Verification or assurance cycle in place
|
Status in the current reporting year
|
Type of verification or assurance
|
Attach the statement
|
Page/section reference
|
Relevant standard
|
Proportion of reported emissions verified (%)
|
Select from:
- Annual process
- Biennial process
- Triennial process
|
Select from:
- No verification or assurance of current reporting year
- Underway but not complete for current reporting year – first year it has taken place
- Underway but not complete for reporting year – previous statement of process attached
- Complete
|
Select from:
- Not applicable
- Limited assurance
- Moderate assurance
- Reasonable assurance
- High assurance
- Third party verification/assurance underway
|
Attach your document here
|
Text field [maximum 500 characters]
|
Select from drop-down options below
|
Numerical field [enter a number from 0-100 using no decimals or commas]
|
[Add Row]
Relevant standard drop-down options:
- AA1000AS
- ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)
- Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
- Airport Carbon Accreditation (ACA) des Airports Council International Europe
- Alberta Technology Innovation and Emissions Reduction (TIER)
- ASAE3000
- Attestation standards established by AICPA (AT105)
- Australian National GHG emission regulation (NGER)
- California Mandatory GHG Reporting Regulations (CARB)
- Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
- Carbon Trust Standard
- Chicago Climate Exchange (CCX) verification standard
- The Climate Registry's General Verification Protocol (also known as California Climate Action Registry (CCAR))
- Compagnie Nationale des Commissaires aux Comptes (CNCC)
- Corporate GHG verification guidelines from ERT
- DNV VeriSustain Protocol/ Verification Protocol for Sustainability Reporting
- Earthcheck Certification
- ERM GHG Performance Data Assurance Methodology
- European Union Emissions Trading System (EU ETS)
- IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
- IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
- ISAE3000
- ISAE 3410
- ISO14064-1
- ISO14064-3
- Japan voluntary emissions trading scheme (JVETS) guideline for verification
- Korean GHG and energy target management system
- NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
- RevR6 procedure for assurance of sustainability report
- Saitama Prefecture Target-Setting Emissions Trading Program
- SGS Sustainability Report Assurance
- Spanish Institute of Registered Auditors (ICJCE)
- SSAE 3000
- Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
- State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
- Swiss Climate CO2 Label for Businesses
- Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
- Toitū Envirocare’s carbonreduce certification standard
- Tokyo Emissions Trading Scheme
- Other, please specify
Requested content
General
- If you are reporting third party
verification or assurance underway, your entries into the table should reflect
the emissions that are being subject to verification/assurance for the current
reporting year, with the exception of the attached statement, which will relate
to a previous year.
- CDP understands that you may seek
verification for reasons other than reporting to CDP and that confidential
information may be included within your detailed verification statement. In
this case, it is sufficient for your verifier/assurer to attest to the Scope
and level of assurance/verification through correspondence such as an
abbreviated statement as long as this covers the data points outlined below
(see guidance for column 4 ‘Attach your statement here’).
Verification or assurance cycle in place
(column 1)
- A biennial verification/assurance process
is where emissions are verified once every two years and a triennial
verification/assurance process is where emissions are verified once every three
years.
- You may refer to the additional information
provided on annual, biennial and triennial processes in C10.1 for further
information.
Status in the current reporting year
(column 2)
- Please select the option that is most
appropriate to your company.
Type of verification or assurance (column 3)
- This column relates to the type of
verification or assurance that has been awarded.
- The option that is relevant will depend on
the verification standard to which the verification process has been completed
and the level of assurance agreed between the verifier and the company.
- Companies can select from the following
options:
- Not applicable - In very few cases, usually in program based
compliance, the verification standard does not include a level of assurance; in
this case select this option.
- Limited assurance - This is one of the most common levels of
assurance and, for e.g., is appropriate to verification undertaken in
accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance - For example, this level of assurance is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance - For example, this is appropriate to
verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate
Registry; all verification undertaken for EU ETS compliance is to a level of
“reasonable assurance” (according to the requirements of EA-6/03).
- High assurance - For example, this is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway
- Select this option if verification/assurance is underway and you do not yet
know the level of assurance that you are intending to achieve.
Attach the statement (column 4)
- Note the requirements for the statement
detailed below and the option to use the
CDP template.
- All companies should attach a verification
statement here unless they have selected “No verification or assurance of
current reporting year” or “Underway but not complete for current reporting
year – first year it has taken place” in column 2 ‘Status in the current
reporting year’. The statement should:
- Clearly state that GHG emissions have been
verified or assured as part of the process. If the statement refers to other
documents that have been verified (such as Sustainability Report, Financial
Report, GRI etc.) where items verified are specified, please attach those to
the question as well;
- Relate to the relevant Scope;
- Clearly state the opinion and type of
verification/assurance that has been given and the verification standard used. Assurers/verifiers
must define the finding in their opinion, simply stating “limited assurance” is
not sufficient to fulfill this criterion. These should match the selections
made in columns 1 and 3; and
- Covers the current reporting year, or
covers the 12-months prior for annual processes, 12-24 months prior for biennial
processes, or 12-36 months prior for triennial processes if “Underway but not complete for reporting
year – previous statement of process attached” is selected in “Status in the
current reporting year” column.
Page/section reference (column 5)
- Please identify the page and the section
that contains details of your verification/assurance of Scope 1 emissions.
Relevant standard (column 6)
- This column captures the verification
standard against which the verification process has been undertaken.
- It does not refer to the reporting or
calculation standard. CDP has produced criteria for what constitutes an
acceptable verification standard. All accepted verification standards, and
exceptions to their use, are
listed here. If you are using a
verification standard that is not listed in the “accepted standards” nor the “non-verification
standards,” please contact your regional CDP office in order to have your verification standard reviewed. If you do not have your standard
reviewed by contacting us and your response is submitted before the official
CDP deadline, CDP will then review the standard used and add it to the website
under “accepted” or “not accepted” depending on the outcome of the standard
review. If the response is submitted after the official deadline, CDP cannot
commit to review the standard used in time for scoring.
- Select from the accepted standards listed
or use “Other, please specify” if the standard you are using is not included.
- If you select “Other, please specify”,
provide a label for the Relevant standard.
- The verification standard should be stated
on the verification statement.
Proportion of reported emissions verified
(%) (column 7)
- It may be the case that only a sub-section
of your emissions has been verified/assured due to, for e.g., regulatory
requirements.
- Please identify what proportion of your
total reported emissions for Scope 1 has been subject to the
verification/assurance process described.
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 last year
Minor change
Rationale
CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.
Connection to other frameworks
RE100
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Scope 2 approach
|
Verification or assurance cycle in place
|
Status in the current reporting year
|
Type of verification or assurance
|
Attach the statement
|
Page/ section reference
|
Relevant standard
|
Proportion of reported emissions verified (%)
|
Select from:
- Scope 2 location-based
- Scope 2 market-based
|
Select from:
- Annual process
- Biennial process
- Triennial process
|
Select from:
- No verification or assurance of current reporting year
- Underway but not complete for current reporting year – first year it has taken place
- Underway but not complete for reporting year – previous statement of process attached
- Complete
|
Select from:
- Not applicable
- Limited assurance
- Moderate assurance
- Reasonable assurance
- High assurance
- Third party verification/assurance underway
|
Attach your document here
|
Text field [maximum 500 characters]
|
Select from drop-down options below
|
Numerical field [enter a number from 0-100 using no decimals or commas]
|
[Add Row]
Relevant standard drop-down options:
- AA1000AS
- ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)
- Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
- Airport Carbon Accreditation (ACA) des Airports Council International Europe
- Alberta Technology Innovation and Emissions Reduction (TIER)
- ASAE3000
- Attestation standards established by AICPA (AT105)
- Australian National GHG emission regulation (NGER)
- California Mandatory GHG Reporting Regulations (CARB)
- Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
- Carbon Trust Standard
- Chicago Climate Exchange (CCX) verification standard
- The Climate Registry's General Verification Protocol (also known as California Climate Action Registry (CCAR))
- Compagnie Nationale des Commissaires aux Comptes (CNCC)
- Corporate GHG verification guidelines from ERT
- DNV VeriSustain Protocol/ Verification Protocol for Sustainability Reporting
- Earthcheck Certification
- ERM GHG Performance Data Assurance Methodology
- European Union Emissions Trading System (EU ETS)
- IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
- IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
- ISAE3000
- ISAE 3410
- ISO14064-1
- ISO14064-3
- Japan voluntary emissions trading scheme (JVETS) guideline for verification
- Korean GHG and energy target management system
- NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
- RevR6 procedure for assurance of sustainability report
- Saitama Prefecture Target-Setting Emissions Trading Program
- SGS Sustainability Report Assurance
- Spanish Institute of Registered Auditors (ICJCE)
- SSAE 3000
- Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
- State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
- Swiss Climate CO2 Label for Businesses
- Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
- Toitū Envirocare’s carbonreduce certification standard
- Tokyo Emissions Trading Scheme
- Other, please specify
Requested content
General
- If you are reporting third party
verification or assurance underway, your entries into the table should reflect
the emissions that are being subject to verification/assurance for the current
reporting year, with the exception of the attached statement, which will relate
to a previous year.
- CDP understands that you may seek
verification for reasons other than reporting to CDP and that confidential
information may be included within your detailed verification statement. In
this case, it is sufficient for your verifier/assurer to attest to the Scope
and level of assurance/verification through correspondence such as an
abbreviated statement as long as this covers the data points outlined below
(see guidance for column 5 "Attach your statement here")
Scope 2 approach (column 1)
- Select
the Scope 2 calculation approach to which your verification/assurance statement
applies.
- If
you operate in a region where you need to calculate both a location-based and a
market-based figure to meet Scope 2 requirements, at this stage CDP only
requires for you to verify one of these figures.
- However,
in the interest of transparency, you are asked to disclose which of the two
figures you have verified.
Verification or assurance cycle in place (column
2)
- A biennial verification/assurance process
is where emissions are verified once every two years and a triennial
verification/assurance process is where emissions are verified once every three
years.
- You may refer to the further information in
C10.1 on annual, biennial and triennial processes for further information on annual,
biennial and triennial processes.
Status in the current reporting year
(column 3)
- Please select the option most appropriate
to your company.
Type of verification or assurance (column 4)
- This column relates to the type of
verification or assurance that has been awarded.
- The option that is relevant will depend on
the verification standard to which the verification process has been completed
and the level of assurance agreed between the verifier and the company.
- Companies can select from the following
options:
- Not applicable - In very few cases, usually in program based
compliance, the verification standard does not include a level of assurance; in
this case select this option.
- Limited assurance -This is one of the most common levels of
assurance and, for e.g., is appropriate to verification undertaken in
accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance - For example, this level of assurance is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance - For example, this is appropriate to
verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate
Registry; all verification undertaken for EU ETS compliance is to a level of
“reasonable assurance” (according to the requirements of EA-6/03).
- High assurance – For example, this is
appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway
– Select this option if verification/assurance is underway and you do not yet
know the level of assurance that you are intending to achieve.
Attach the statement (column 5)
- Note the requirements for the statement
detailed below and the option to use the
CDP template.
- All companies should attach a verification statement here unless they have selected “No verification or assurance of current reporting year” or “Underway but not complete for current reporting year – first year it has taken place” in column 3 "Status in the current reporting year". The statement should:
- 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 last year
Minor change
Rationale
CDP supports verification and assurance as good practice in environmental reporting. This question gives data users further confidence in the accuracy of the data reported.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Scope 3 category
|
Verification or assurance cycle in place
|
Status in the current reporting year
|
Type of verification or assurance
|
Attach the statement
|
Page/ section reference
|
Relevant standard
|
Proportion of reported emissions verified (%)
|
Select all that apply:
- Scope 3: Purchased
goods and services
- Scope 3:
Capital goods
- Scope 3:
Fuel and energy-related activities (not included in Scopes 1 or 2)
- Scope 3:
Upstream transportation and distribution
- Scope 3:
Waste generated in operations
- Scope 3:
Business travel
- Scope 3:
Employee commuting
- Scope 3:
Upstream leased assets
- Scope 3:
Investments
- Scope 3:
Downstream transportation and distribution
- Scope 3:
Processing of sold products
- Scope 3: Use
of sold products
- Scope 3:
End-of-life treatment of sold products
- Scope 3: Downstream
leased assets
- Scope 3:
Franchises
|
Select from:
- Annual process
- Biennial process
- Triennial process
|
Select from:
- No verification or assurance of current reporting year
- Underway but not complete for current reporting year – first year it has
taken place
- Underway but not complete for reporting year – previous statement of
process attached
- Complete
|
Select from:
- Not applicable
- Limited assurance
- Moderate assurance
- Reasonable assurance
- High assurance
- Third party verification/assurance underway
|
Attach your document here
|
Text field [maximum 500 characters]
|
Select from drop-down options below
|
Numerical field [enter a number from 0-100 using no decimals or commas]
|
[Add Row]
Relevant standard drop-down options:
- AA1000AS
- ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)
- Advanced technologies promotion Subsidy Scheme with Emission reduction Target (ASSET)
- Airport Carbon Accreditation (ACA) des Airports Council International Europe
- Alberta Technology Innovation and Emissions Reduction (TIER)
- ASAE3000
- Attestation standards established by AICPA (AT105)
- Australian National GHG emission regulation (NGER)
- California Mandatory GHG Reporting Regulations (CARB)
- Canadian Institute of Chartered Accountants (CICA) Handbook: Assurance Section 5025
- Carbon Trust Standard
- Chicago Climate Exchange (CCX) verification standard
- The Climate Registry's General Verification Protocol (also known as California Climate Action Registry (CCAR))
- Compagnie Nationale des Commissaires aux Comptes (CNCC)
- Corporate GHG verification guidelines from ERT
- DNV VeriSustain Protocol/ Verification Protocol for Sustainability Reporting
- Earthcheck Certification
- ERM GHG Performance Data Assurance Methodology
- European Union Emissions Trading System (EU ETS)
- IDW PS 821: IDW Prüfungsstandard: Grundsätze ordnungsmäßiger Prüfung oder prüferischer Durchsicht von Berichtenim Bereich der Nachhaltigkeit
- IDW AsS 821: IDW Assurance Standard: Generally Accepted Assurance Principles for the Audit or Review of Reports on Sustainability Issues
- ISAE3000
- ISAE 3410
- ISO14064-1
- ISO14064-3
- Japan voluntary emissions trading scheme (JVETS) guideline for verification
- Korean GHG and energy target management system
- NMX-SAA-14064-3-IMNC: Instituto Mexicano de Normalización y Certificación A.C
- RevR6 procedure for assurance of sustainability report
- Saitama Prefecture Target-Setting Emissions Trading Program
- SGS Sustainability Report Assurance
- Spanish Institute of Registered Auditors (ICJCE)
- SSAE 3000
- Standard 3810N Assurance engagements relating to sustainability reports of the Royal Netherlands Institute of Registered Accountants
- State of Israel Ministry of Environmental Protection, Verification of GHG and emissions reduction in Israel Guidance Document
- Swiss Climate CO2 Label for Businesses
- Thai Greenhouse Gas Management Organisation (TGO) Greenhouse Gas (GHG) Verification Protocol
- Toitū Envirocare’s carbonreduce certification standard
- Tokyo Emissions Trading Scheme
- Other, please specify
Requested content
General
- If you are reporting third party verification or assurance underway, your entries into the table should reflect the emissions that are being subject to verification/assurance for the current reporting year, with the exception of the attached statement, which will relate to a previous year.
- CDP understands that you may seek verification for reasons other than reporting to CDP and that confidential information may be included within your detailed verification statement. In this case, it is sufficient for your verifier/assurer to attest to the Scope and level of assurance/verification through correspondence such as an abbreviated statement as long as this covers the data points outlined below (see guidance for column 4 ‘Attach your statement here’).
Scope 3 category (column 1)
Verification or assurance cycle in place (column 2)
- A biennial verification/assurance process is where Scope 3 emissions are verified once every two years and triennial verification/assurance process where Scope 3 emissions are verified once every three years.
- You may refer to the further information in C10.1 on annual, biennial and triennial processes for further information on annual, biennial and triennial processes.
Status in the current reporting year (column 3)
- Please select the option most appropriate to your company
Type of verification or assurance (column 4)
- This column relates to the type of verification or assurance that has been awarded.
- The option that is relevant will depend on the verification standard to which the verification process has been completed and the level of assurance agreed between the verifier and the company.
- Companies can select from the following options:
- Not applicable -In very few cases, usually in program based compliance, the verification standard does not include a level of assurance; in this case select this option.
- Limited assurance -This is one of the most common levels of assurance and, for e.g., is appropriate to verification undertaken in accordance with ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry.
- Moderate assurance -For example, this level of assurance is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Reasonable assurance -For example, this is appropriate to verification undertaken under ISO14064-3, ISAE3000, ASAE3000 and The Climate Registry; all verification undertaken for EU ETS compliance is to a level of “reasonable assurance” (according to the requirements of EA-6/03).
- High assurance - For example, this is appropriate to verification undertaken in accordance with AA1000 and AT105.
- Third party verification/assurance underway - Select this option if verification/assurance is underway and you do not yet know the level of assurance that you are intending to achieve
Attach the statement (column 5)
- Note the requirements for the statement detailed below and the option to use the CDP template.
- All companies should attach a verification statement here unless they have selected “No verification or assurance of current reporting year” or “Underway but not complete for current reporting year – first year it has taken place” in column 3 ‘Status in the current reporting year’. The statement should:
- 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 categories;
- 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 categories 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 last year
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 last year
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
- C16. Signoff
- SC. Supply chain module
|
Select from:
- Year on year change in emissions (Scope
1)
- Year on year change in emissions (Scope
2)
- Year on year change in emissions (Scope
1 and 2)
- Year on year change in emissions (Scope
3)
- Year on year emissions intensity figure
- Financial or other base year data
points used to set a science-based target
- Progress against emissions reduction
target
- Change in Scope 1 emissions against a
base year (not target related)
- Change in Scope 2 emissions against a
base year (not target related)
- Change in Scope 3 emissions against a
base year (not target related)
- Product footprint verification
- Emissions reduction activities
- Renewable energy products
- Energy consumption
- 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.
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 increases, CDP data users are interested in understanding how companies are affected by these schemes.
This module examines details on the operations or activities regulated by carbon pricing systems, carbon credits and internal prices on carbon.
For further guidance on reporting to the questions in this module see CDP’s Technical Note Carbon Pricing: CDP Disclosure Best Practice.
Key changes
Click here for a list of all changes made this year.
Pathway diagram - questions
This diagram shows the general questions contained in module C11. To access question-level guidance, use the menu on the left to navigate to the question.
Project-based carbon credits
(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?
Change from last year
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 last year
Modified guidance
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
NZAM (FS only)
Commitment 4
Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.
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
- N2O
- 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)
Purpose, e.g. compliance (column 8)
- [Financial services only] “Other, please specify” can be used by banks and asset managers to solicit information on the approch to offsets to meet commitments under the Net-Zero Banking Alliance and the Net Zero Asset Managers initiative respectively, e.g. if the offsets are used to balance residuals, long-term, additional and certified, and only used where no alternatives to eliminate emissions exist.
Internal price on carbon
(C11.3) Does your organization use an internal price on carbon?
Change from last year
No change
Rationale
Internal carbon pricing has emerged as a multifaceted tool that supports companies in assessing climate-related risks and opportunities. Investors want to know more about organizations who attribute a monetary value to these risks and translate them into a uniform metric.
Response options
Select one of the following options:
- Yes
- No, but we anticipate doing so in the next two years
- No, and we don’t anticipate doing so in the next two years
Additional information
- Internal carbon price: The number of companies embedding an internal carbon price into their business strategies is growing. 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 last year
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
- Four removed questions:
- C12.3b (2021) on trade associations.
- C12.3d (2021) on research organizations that you fund.
- C12.3f (2021) on direct and indirect activities that influence policy.
- C12.3g (2021) on non-engagement with policy makers on climate-related issues.
- Four new questions:
- C12.2 and C12.2a request details of any climate-related requirements your organization’s suppliers have to meet.
- [Financial services only] C-FS12.2 & C-FS12.2a request details of your shareholder voting record on climate-related issues.
- Modified questions:
- C12.1a - the compliance and onboarding drop-down options have been removed from columns 1 and 2, and four new drop-down options added on Engagement & incentivization and Innovation & collaboration.
- [Financial services only] C-FS12.1b requests details of your climate-related engagement strategy with your clients.
- [Financial services only] C-FS12.1c requests more granular data on your organization’s climate-related strategy with your investees.
- C12.3 - datapoints from C12.3g (2021) have been merged into this question. C12.3 now requests details of any public commitment to conduct your policy engagement activities in line with the goals of the Paris agreement.
- C12.3a requests more granular details of any direct engagement with policy makers in the reporting year.
- C12.3b (2021 C12.3c) requests more granular details of any indirect engagement on policy, law, or regulation through trade associations in the reporting year.
- C12.3c (2021 C12.3e) revised to focus on funding of other organizations whose activities could influence policy, law or regulation that may impact the climate.
- [Financial services only] C-FS12.5 has been simplified into one "select all" list for all frameworks, initiatives, and commitments.
- General question removed for Financial services only: C12.1b on climate-related engagement strategy with customers
Click here for a list of all changes made this year.
Sector-specific content
Additional questions on supplier engagement for the following high-impact sectors:
- Agricultural commodities
- Financial services
- Food, beverage & tobacco
- Paper & forestry
Pathway diagram - questions
This diagram shows the general questions contained in module C12. To access question-level guidance, use the menu on the left to navigate to the question.
Value chain engagement
(C12.1) Do you engage with your value chain on climate-related issues?
Change from last year
Minor 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/clients
- Yes, our investees [Financial services only]
- Yes, other partners in the value chain
- No, we do not engage
Requested content
General
- Select all that apply for the reporting year, however if you select “No, we do not engage” do not select any of the other options.
- Select yes, only if you have engagements that cover GHG emissions and/or climate-related strategies (i.e. target setting, renewable energy procurement, etc.).
- Other partners in the value chain are any companies that you work with in your up- or downstream activities that are not your suppliers or customers. For example, you could select this option if you engage with your franchisees on GHG emissions and climate change strategies.
- Note that employees can be treated as value chain partners if they are making their own decisions on, for example, how they commute to work. However, if employees are under direction of their manager for business travel then they should not be treated as external to the organization; in this instance, the value chain partner is the provider of the business travel, not the employee.
Note for financial services sector companies:
- Consider your engagement activity with customers/clients and investees to encourage better disclosure and practices around climate-related risks.
- Further details can be provided in subsequent questions C-FS12.1b and C-FS12.1c.
(C12.1a) Provide details of your climate-related supplier engagement strategy.
Question dependencies
This question only appears if you select “Yes, our suppliers” in response to C12.1.
Change from last year
Modified question
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
RE100
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Type of engagement
|
Details of engagement
|
% of suppliers by number
|
% total procurement spend (direct and indirect)
|
% of supplier-related Scope 3 emissions as reported in C6.5
|
Rationale for the coverage of your engagement
|
Impact of engagement, including measures of success
|
Comment
|
Select from:
- Information collection (understanding supplier behavior)
- Engagement & incentivization (changing supplier behavior)
- Innovation & collaboration (changing markets)
- Other, please specify
|
Select all that apply:
Information collection (understanding supplier behavior)
- Collect 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
- Provide training, support, and best practices on how to make credible renewable energy usage claims
- Directly work with suppliers on exploring corporate renewable energy sourcing mechanisms
- Climate change performance is featured in supplier awards scheme
- Offer financial incentives for suppliers who reduce your operational emissions (Scopes 1 & 2)
- Offer financial incentives for suppliers who reduce your downstream emissions (Scopes 3)
- Offer financial incentives for suppliers who reduce your upstream emissions (Scopes 3)
- Offer financial incentives for suppliers who increase the share of renewable energy in their total energy mix
- Other, please specify
Innovation & collaboration (changing markets)
- Run a campaign to encourage innovation to reduce climate impacts on products and services
- Collaborate with suppliers on innovative business models to source renewable energy
- 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.
- Information collection (understanding supplier behavior) - Select this option if the purpose of your engagement with suppliers is to gather data outside of specific initiatives.
- Engagement & incentivization (changing supplier behavior) - Choose this option if you offer specific incentives for your suppliers or engage with them to meet climate-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial. Engagement can be training, support, or collaboration with suppliers.
- Innovation & collaboration (changing markets) - Select this option if you specifically encourage your suppliers to develop new ways to reduce climate change impacts of the products/services that they offer. This can include formal campaigns and calls for partnerships as well as informal collaboration opportunities.
Details of engagement (column 2)
- Expand on the engagement activity (selected in column 1) your organization participates in by selecting all the relevant engagement methods from the drop-down options.
- Your selection in column 1 determines which options you will see here. E.g. If you select “Innovation & collaboration (changing markets)”, you will only see the associated drop-down options here.
% 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.
- Include a threshold at which you consider your impact to be successful with regard to the measure of success. For example, if you selected “Offer financial incentives for suppliers who increase the share of renewable energy in their total energy mix” in column 2, the measure of success could be an increase in the share of renewable energy in the engaged suppliers’ total energy mix of 5% per year.
- 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.
Example response
See table below:
Type of engagment | Details of engagement | % of suppliers by number | % total procurement spend (direct and indirect) | % of supplier-related Scope 3 emissions as reported in C6.5 | Rationale for the coverage of your engagement | Impact of engagement, including measures of success | Comment |
---|
Engagement & incentivization (changing supplier behavior) | Run an engagement campaign to educate suppliers about climate change | 0.6 | 27.4 | 42 | Our supplier engagement strategy is based around the Scope 3 component of our SBTi-approved science-based target, which committed to working with our suppliers (representing 70% of its supply chain emissions) so that they set their own science-based reduction targets and report annual emissions by 2025. The coverage of this target prioritizes Company A’s engagement not on a vaguely defined list of “key suppliers” but rather on the absolute emissions of all suppliers, which will maximize the science-based target’s impact. The target’s requirement of suppliers to report emission reduction progress will not only encourage progress on GHG emissions management but also allow measurement of absolute emissions reductions. At this point this coverage is only of legacy Company A suppliers as we continue to integrate Subsidiary X’s supply chain into all of our goals and targets. | Company A’s science-based target was recently approved by SBTi. As we move toward our target, the impact of engagement will include supplier GHG emissions reductions and/or improved climate change strategies including target setting. Based on an estimated average absolute emissions reduction of 15% per supplier involved in achieving the goal, we anticipate the absolute emissions impact will be 100,000 tCO2e per year (a 10.5% reduction in Company A’s total scope 3 emissions).
Success will be measured by percent of suppliers engaged, with a target to have 70% of supply chain emissions set their own science-based reduction targets and report annual emissions by 2025. In 2019, we measured the success of this strategy versus our targets for the first time as we have engaged suppliers representing 33% of Company A’s legacy supply chain emissions through the CDP Supply Chain platform. Of this, suppliers representing 26% of Company A’s legacy supply chain emissions have an approved, committed to or plan to set an SBT.
| Our engagement of suppliers for our approved science-based target will primarily be through CDP Supply Chain and in the future, we will strive to report on legacy Subsidiary X’s supply chain emissions progress. |
(C-FS12.1b) Give details of your climate-related engagement strategy with your clients.
Question dependencies
This question only appears if you have selected either “Banking”, “Investor (Asset Manager)” and/or “Insurance underwriting” as an activity in response to C-FS0.7 in Module 0. It will not appear if you have only selected "Investing (Asset Owner)".
This question only appears to FS companies that select “Yes, our customers/clients” in response to C12.1.
Change from last year
Modified question for Financial sector only
Rationale
This question provides investors and data users with more transparency regarding organization’s client engagement processes. Data users are interested in understanding how financial services companies are working with their clients to drive best practice in mitigating climate change. For example, data users are interested in knowing whether your organization encourages clients to set science-based targets.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
NZAM (FS only)
Commitment A
Commitment 6
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Type of clients
|
Type of engagement
|
Details of engagement
|
% client-related Scope 3 emissions as reported in C-FS14.1a
|
Portfolio coverage (total or outstanding)
|
Rationale for the coverage of your engagement
|
Impact of engagement, including measures of success
|
Select from:
- Customers/clients of Banks
- Clients of Asset Managers (Asset owners)
- Customers/clients of Insurers
|
Select from:
- Education/information sharing
- Collaboration & innovation
- Compliance & onboarding
- Information collection (understanding client behavior)
- Engagement & incentivization (changing client behavior)
- Other, please specify
|
Select all that apply:
(drop-down options below)
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from 0-100]
|
Select from:
- Non-targeted engagement
- Engagement targeted at clients with increased climate-related risks
- Engagement targeted at clients with increased climate-related opportunities
- Engagement targeted at clients currently not meeting climate-related policy requirements
- Engagement targeted at clients with the highest potential impact on the climate
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Details of engagement drop-down options (column 3)
Education/information sharing
- Run an engagement campaign to educate clients about your climate change performance and strategy
- Run an engagement campaign to educate clients about the climate change impacts of (using) your products, goods, and/or services
- Run an engagement campaign to educate clients about climate change
- Share information about your products and relevant certification schemes (i.e. Energy STAR)
- Provide asset owner clients with information and analytics on net zero investing and climate risk and opportunity
Collaboration & innovation
- Run a campaign to encourage innovation to reduce climate change impacts
- Work in partnership with asset owner clients on decarbonization goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management
- Other, please specify
Compliance & onboarding
- Included climate change considerations in client management mechanism
- Other, please specify
|
Information collection (understanding client behavior)
- Collect climate change and carbon information at least annually from long-term clients
- Other, please specify
Engagement & incentivization (changing client behavior)
- Engage with clients on measuring exposure to climate-related risk
- Encourage better climate-related disclosure practices
- Encourage clients to set a science-based emissions reduction target
- Offer financial incentives for clients who reduce your downstream emissions (Scope 3) and/or exposure to carbon-related assets
- Other, please specify
|
Requested content
General
- Only provide details of engagement with clients for your financial services activities. If your organization has activities in more than one sector, you may also be presented with C12.1b. Engagement with customers for your non-financial services activities should be reported in C12.1b.
- Add a row for each type of client and each type of engagement you are disclosing.
- Add a row also in case you wish to provide information about different details of engagement within the same type.
Type of engagement (column 2)
- Select the type of engagement activity your organization participates in from the drop-down.
- If you select “Other, please specify,” provide a label for the “Type of engagement”.
Details of engagement (column 3)
- Expand on the “Type of engagement” (selected in column 2) your organization participates in by selecting the relevant details of engagement from the drop-down.
- Education/information sharing - Select this option if the aim of engagement is to educate and inform clients about climate change and GHG emissions but not necessarily instigate any specific action.
- Collaboration & innovation - Select this option if you specifically encourage your clients to develop new ways to reduce the climate change impacts of the products/services that they procure from you. This can include formal campaigns and calls for partnerships as well as informal opportunities to reduce negative impacts.
- Compliance & onboarding - Select this option if you require your clients to adhere to specific climate-related policies and/or if you provide onboarding, either with or without training, for those clients to understand and meet your expectations. Compliance requirements can be either pre-requisites to establishing a financing relationship, or be specified as metrics to achieve once onboarding is completed. Select this option if adherence to certain climate-related guidelines is included in customer evaluations and/or financing contracts.
- Information collection (understanding client behavior) - Select this option if the purpose of your engagement with customers is to gather climate-related data outside of specific initiatives.
- Engagement & incentivization (changing client behavior) - Choose this option if the purpose of your engagement is to change client behavior to mitigate climate change. This can include offering specific incentives for your clients to meet climate-related goals or strategies or to set a science-based target. Incentives can be recognition (i.e., award schemes or special acknowledgements) or financial.
% of client-related Scope 3 emissions as reported in C-FS14.1a (column 4)
- Only include the percentage of customer-related Scope 3 emissions reported in C-FS14.1a that are attributable to clients participating in the activity selected in this row.
Portfolio coverage (total or outstanding) (column 5)
- Base the coverage of your portfolio on the portfolio value customers participating in this engagement activity represent. Coverage can be based on either total or outstanding commitments, premiums, and/or committed capital, please define this in the next column. For example, total commitments include total revolving credit lines while outstanding commitments include only outstanding amounts drawn on revolving credit lines.
Rationale for the coverage of your engagement (column 6)
- Select the option which best describes how and why clients were chosen for the engagement selected in column 2 (e.g. exposure to climate-related risks and/or opportunities, potential impact on the climate, proportion of revenue generated, geographic location, etc.).
Impact of engagement, including measures of success (column 7)
- Discuss the impact of this engagement and how you measure its success.
- Include a threshold at which you consider your impact to be successful with regard to the measure of success. For example, if you selected “Encourage clients to set a science-based emissions reduction target”, the measure of success could be a 10% increase in clients getting official validation by the Science Based Targets initiative (SBTi) for their emissions reduction targets.
- Define the coverage of your portfolio based on the portfolio value represented by clients participating in this engagement activity.
- Include a description of any engagement activity you undertake with clients to manage these climate-related risks in your portfolio.
- Provide examples of positive outcomes achieved. For example, this could include clients reducing GHG emissions in their direct operations or increasing renewable energy procurement.
(C-FS12.1c) Give details of your climate-related engagement strategy with your investees.
Question dependencies
This question only appears if you select “Yes, our investees” in response to C12.1.
Change from last year
Modified question
Rationale
This question provides investors and data users with more transparency regarding investee engagement processes. As the majority of financial sector organizations’ emissions occur outside their direct operations, data users are interested in understanding how organizations are working with their investees to drive best practice in mitigating climate change. For example, data users are interested in knowing whether you are encouraging your investees to set science-based targets.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
NZAM (FS only)
Commitment 3
Commitment 7
Response options
Please complete the following table. You are able to add rows by using the "Add Row" button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Type of engagement
|
Details of engagement
|
% scope 3 emissions as reported in C-FS14.1a/C-FS14.1b
|
Investing (Asset managers) portfolio coverage*
|
Investing (Asset owners) portfolio coverage*
|
Rationale for the coverage of your engagement
|
Impact of engagement, including measures of success
|
Select from:
- Information collection (understanding investee behavior)
- Engagement & incentivization (changing investee behavior)
- Innovation & collaboration (changing markets)
- Other, please specify
|
Select all that apply:
Information collection (understanding investee behavior)
- Included climate-related criteria in investee selection/management mechanism
- Climate-related criteria is integrated into investee evaluation processes
- Collect climate-related and carbon emissions information from new investee companies as part of due diligence
- Collect climate-related and carbon emissions information at least annually from long-term investees
- Other, please specify
Engagement & incentivization (changing investee behavior)
- Exercise active ownership
- Support climate-related shareholder resolutions
- Support climate-related issues in proxy voting
- Implement a stewardship and engagement strategy, with a clear escalation and voting policy, that is consistent with our ambition for all assets under management to achieve net zero emissions by 2050 or sooner
- Engagement with 20 investees with a focus on highest emitters or those responsible for 65% of emission in portfolio (either Direct, Collective, or via Asset Manager)
- Initiate and support dialogue with investee boards to set Paris-aligned strategies
- Encourage better climate-related disclosure practices among investees
- Encourage investees to set a science-based emissions reduction target
- Offer financial incentives for investees who reduce your emissions (Scope 3)
- Other, please specify
Innovation & collaboration (changing markets)
- Carry out collaborative engagements with other investors or institutions
- Run a campaign to encourage innovation to reduce climate change impacts
- Other, please specify
Other, please specify
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Percentage field [enter a percentage from 0-100]
|
Percentage field [enter a percentage from 0-100]
|
Select from:
- Non-targeted engagement
- Engagement targeted at investees with increased climate-related risks
- Engagement targeted at investees with increased climate-related opportunities
- Engagement targeted at investees currently not meeting climate-related policy requirements
- Engagement targeted at investees with the highest potential impact on the climate
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add Row]
Requested content
General
- Add a row for each type and/or detail of engagement.
- Add a row also in case you wish to provide information about different details of engagement within the same type.
Type of engagement (column 1)
- If you select “Other, please specify,” provide a label for the “Type of engagement”.
Details of engagement (column 2)
- The drop-down options presented are linked to the type of engagement you selected in column 1
- Information collection (understanding investee behavior) - Select this option if the purpose of your engagement with investees is to gather data outside of specific initiatives.
- Engagement & incentivization (changing investee behavior) - Select this option if you engage on climate-related issues in shareholder resolutions, proxy votes, in the form of active ownership, or in encouraging investees to set a science-based target. Also, choose this option if you offer specific incentives for your investees to meet climate-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial.
- Innovation & collaboration - Select this option if you specifically encourage your investees to develop new ways to reduce the climate change impacts of the products/services that you are financing. This can include formal innovative collaboration projects, campaigns and calls for partnerships as well as informal opportunities to reduce negative impacts.
% Scope 3 emissions as reported in C-FS14.1a/C-FS14.1b (column 3)
- Only include the percentage of investee-related Scope 3 emissions that you report in C-FS14.1a/C-FS14.1b that are attributable to investees participating in the activity selected in this row.
Investing (Asset managers) Portfolio coverage (column 4)
- Select the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity. Coverage can be based on either total assets under management (AUM) or outstanding commitments, premiums, committed capital and/or other. Please define this in column 7.
Investing (Asset owners) Portfolio coverage (column 5)
- Select the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity. Coverage can be based on either total assets under management (AUM) or outstanding commitments, premiums, committed capital and/or other. Please define this in column 7.
Rationale for the coverage of your engagement (column 6)
- Select the option which best describes how and why investees were chosen for the engagement selected in column 1 (e.g. proportion of revenue generated, geographic location, etc.).
Impact of engagement, including measures of success (column 7)
- Discuss the impact of this engagement and how you measure its success.
- Define the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity
- Include a description of any engagement activity you undertake with investee companies to manage these climate-related risks in your investment portfolio.
- Provide examples of positive outcomes achieved. For example, this could include investees reducing product use-phase GHG emissions or increasing renewable energy procurement.
(C12.1d) Give details of your climate-related engagement strategy with other partners in the value chain.
Question dependencies
This question only appears if you select “Yes, other partners in the value chain” in response to C12.1.
Change from last year
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
NZAM (FS only)
Commitment 8
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Note that your answer to this question should only include information not captured in C12.1a or C12.1b, and therefore only be pertinent to elements of your value chain that are not suppliers or customers. 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 last year
No change
Rationale
As engaging with at least some part of the value chain is considered best practice, investors and data users need to know why companies are not yet working to affect positive environmental change beyond their direct operations.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
This is an open text question with a limit of 5,000 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Requested content
General
- Provide a company-specific explanation of why you do not engage with any elements of your value chain on climate-related issues, and outline your plans to do so in the future. Please clearly separate the two elements of the question in your response.
Shareholder voting
(C-FS12.2) Does your organization exercise voting rights as a shareholder on climate-related issues?
Question dependencies
This question only appears if you select “Investing (Asset Manager)” and/or “Investing (Asset Owner)” in response to C-FS0.7.
Change from last year
New question
Rationale
Active ownership is a key tool for positively impacting the real economy because divestment alone leaves investors without a voice to promote sustainable practices. Alongside their investee engagement activities, investors can influence their investees on environmental issues by exercising their voting rights. Data users are interested in understanding how aligned shareholders’ voting decisions across the investment portfolio are with the overall environmental strategy and how they support climate-related shareholder resolutions.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
NZAM (FS only)
Commitment 7
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Exercise voting rights as a shareholder on climate-related issues
|
Primary reason for not exercising voting rights as a shareholder on climate-related issues*
|
Explain why you do not exercise voting rights on climate-related issues*
|
Select from:
- Yes
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
|
Select from:
- Important but not an immediate priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- No instruction from management
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
General
- Organizations with activities in more than one sector may also be presented with C12.2 and C12.2a.
Exercise voting rights as a shareholder on climate-related issues (column 1)
- Select “Yes” if you exercise your voting rights as a shareholder, including indirectly.
- You can give further details on how you have exercised your voting rights in the following question.
Primary reason for not exercising voting rights as a shareholder on climate-related issues (column 2)
- Select the primary reason why your company does not exercise its voting rights as a shareholder on climate-related issues.
- Select only one option from the drop-down menu. If multiple options reasonably apply to your company, explain any additional reasons in column 3.
Explain why you do not exercise voting rights on climate-related issues (column 3)
- Provide a company-specific explanation of why you do not exercise voting rights on climate-related issues and outline any plans to do so in the future.
(C-FS12.2a) Provide details of your shareholder voting record on climate-related issues.
Question dependencies
This question only appears if you select “Yes” in column 1 in C-FS12.2.
Change from last year
New question
Rationale
Active ownership is a key tool for positively impacting the real economy because divestment alone leaves investors without a voice to promote sustainable practices. Alongside their investee engagement activities, investors can influence their investees on environmental issues by exercising their voting rights. Data users are interested in understanding how aligned shareholders’ voting decisions across the investment portfolio are with the overall environmental strategy and how they support climate-related shareholder resolutions.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
NZAM (FS only)
Commitment 7
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Method used to exercise your voting rights as a shareholder
|
How do you ensure your shareholder voting rights are exercised in line with your overall climate strategy?*
|
Percentage of voting disclosed across portfolio*
|
Climate-related issues supported in shareholder resolutions*
|
Do you publicly disclose the rationale behind your voting on climate-related issues?*
|
Select from:
- Exercise voting rights directly
- Exercise voting rights through an external service provider
|
Select all that apply:
- Vote tracking
- Publish requirements of external service providers in relation to climate-related issues
- Review external service provider’s climate-related policies
- Review external service provider’s climate-related performance (e.g. active ownership, proxy voting records)
- Include climate-related requirements in requests for proposals
- Include climate-related requirements in service provider mandates
- Include climate-related requirements in performance indicators and incentive structures
- Other, please specify
- None of the above
|
Percentage field [enter a percentage from 0-100]
|
Select all that apply:
- Climate transition plans
- Climate-related disclosures
- Aligning public policy position (lobbying)
- Emissions reduction targets
- Board oversight of climate-related issues
- Other, please specify
- None of the above
|
Select from:
- Yes, for all
- Yes, for some
- No
|
[Add row]
Requested content
General
- Organizations with activities in more than one sector may also be presented with C12.2 and C12.2a.
- Use “add row” if you exercise your voting rights as a shareholder both directly and indirectly.
Method used to exercise your voting rights as a shareholder (column 1)
- Select whether you exercise your voting rights either directly or through an external service provider.
How do you ensure your shareholder voting rights are exercised in line with your overall climate strategy? (column 2)
- This column appears if “Exercise voting rights through an external service provider” is selected in column 1.
- If you exercise your voting rights through an external service provider, select which processes you use to ensure that your voting rights are exercised in line with your overall climate strategy.
Percentage of voting disclosed across portfolio (column 3)
- This column appears if “Exercise voting rights directly” is selected in column 1 or if “Vote tracking” is selected in column 2.
- Indicate the proportion of voting publicly disclosed across portfolio.
Climate-related issues supported in shareholder resolutions (column 4)
- This column appears if “Exercise voting rights directly” is selected in column 1 or if “Vote tracking” is selected in column 2.
- Select which climate-related issues you supported in shareholder resolutions during the reporting year.
Do you publicly disclose the rationale behind your voting on climate-related issues? (column 5)
- This column appears if “Exercise voting rights directly” is selected in column 1.
- Indicate if you publicly disclose the rationale behind your votes in favor/against or abstentions on climate-related shareholder resolutions.
Explanation of terms
- Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5 degrees Celsius. Please refer to the CDP Climate Transition Plan technical note for more details.
Additional information
The process and language around resolutions vary by region. At this time, CDP cannot advise on the resolution process, but companies can refer to the Say on Climate campaign website or engage with its other supporting partners As You Sow (US), Share Action (UK/EU), or ACCR (AsiaPac/Australasia) that are focused on this work.
Question Question C-AC12.2/C-FB12.2/C-PF12.2 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
Public policy engagement
(C12.3) Does your organization engage in activities that could either directly or indirectly influence policy, law, or regulation that may impact the climate?
Change from last year
Modified question
Rationale
Data users wish to understand how companies’ policy engagement on climate change relate to other stances taken. It is important that companies maintain a consistent approach to issues -engaging in some activities whose purpose is to discredit climate science, for instance, while also working with other groups to advance solutions and adaptations to climate change sends conflicting messages to data users about that company’s priorities and stance. This question provides data users with insight into the different types of activities that organizations engage in, and enables companies to disclose the processes they use to make sure that their position on climate change is compatible with both the activities in which they partake, and the global temperature goals of the Paris Agreement.
Connection other frameworks
NZAM (FS only)
Commitment 9
Response options
Please complete the following table.
Direct or indirect engagement that could influence policy, law, or regulation that may impact the climate
|
Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?
|
Attach commitment or position statement(s)
|
Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy
|
Primary reason for not engaging in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate
|
Explain why your organization does not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate
|
Select all that apply:
- Yes, we engage directly with policy makers
- Yes, we engage indirectly through trade associations
- Yes, we engage indirectly by funding other organizations whose activities may influence policy, law, or regulation that may significantly impact the climate
- No
|
Select from:
- Yes
- No, but we plan to have one in the next two years
- No, and we do not plan to have one in the next two years
|
[Attachments(s)]
|
Text field [maximum 2,500 characters]
|
Select from:
- Important but not an immediate priority
- Judged to be unimportant
- Lack of internal resources
- No instruction from management
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested content
General
- This question is focused on external engagement with policy makers, government departments, or regulatory bodies on a regional, local, national, or international level.
- Responses should be relevant to the reporting year only (as defined by your answer to C0.2).
- There will be a wide range of activities that could be considered as each of these options. In response to this question, please select all that apply regardless of your role and how significant those activities are for your company or a third party.
- For trade associations and funding other organizations, 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” if you do not engage in any activities that could influence policy, law, or regulation that may impact the climate, 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.
Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement? (column 2)
- This column only appears if any “Yes” is selected in “Direct or indirect engagement that could influence policy, law, or regulation that may impact the climate” (column 1).
- This should take the form of a clear, public statement that your organization will ensure its direct and indirect engagement activities are aligned with the goals of the Paris Agreement.
- Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
- The statement should specifically refer to the Paris Agreement, rather than e.g. your organizations climate change policy or targets.
Attach commitment or position statement(s) (column 3)
- This column only appears if “Yes” is selected in “Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris agreement?” (column 2).
- Even where the relevant information is web-based (e.g. an item on your website), you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfill this requirement.
Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy (column 4)
- The intention of this column is to understand how your organization manages the multiple engagement activities around climate change across business divisions and geographies to ensure that you have a common approach that is also consistent with your strategy on climate change.
- Explain the processes that you have in place, or if you do not have any in place, how you plan to address this potential for conflict in the future.
Primary reason for not engaging in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate (column 5)
- This column only appears if “No” is selected in “Direct or indirect engagement that could influence policy, law, or regulation that may impact the climate” (column 1).
- If more than one reason applies to your organization, select the reason which is most relevant and elaborate on the other reason(s) in column 5.
Explain why your organization does not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact the climate (column 6)
- This column only appears if “No” is selected in “Direct or indirect engagement that could influence policy, law, or regulation that may impact the climate” (column 1).
- Provide a company-specific explanation as to why your organization does not engage in activities which could directly or indirectly influence policy, law, or regulation that may impact the climate, and outline any plans to engage in such activities in the future.
Additional information
Examples of engagement activity
- Direct engagement - This includes all activity where companies (or their representatives such as law firms or public affairs agencies engaged directly by the company) engage with policy makers or regulators on the development of law or regulation. Examples of such activities include responding to a consultation, sitting on a working group or lobbying activities directed at individuals or groups that are part of the process of developing, reviewing or amending a law or regulation. Direct engagement can include any stage in the policy or regulation development process, from the selection of options to final consultation comments, but does not include compliance with a new or updated requirement once it has come into force.
- Trade associations - Trade associations (sometimes also referred to as industry associations, trade groups, trade bodies, or industry trade groups) are an association of people or companies in a particular business or trade, organized to promote their common interests. Trade associations are relevant here as they present an “industry voice” to governments to influence their policy development. The majority of organizations are members of multiple trade associations, many of which take a position on climate change and actively engage with policy makers on the development of policy and legislation on behalf of their members. If you are a member of a trade association that engages on climate change, regardless of your own involvement, you should select “trade associations” in question C12.3.
- Funding other organizations - In this context, other organizations can include research institutions, Non-Governmental Organizations (NGOs), trusts, universities, and other organizations whose activities could influence policy, law, or regulation that may impact the climate. Funding may take the form of membership fees, sponsorship, donations etc. offered to organizations. The financial support that you give them may or may not be climate change-related, however if they do engage in work that may impact climate change then you should select this option.
- For more information please see the 'Guide for Responsible Corporate Engagement in Climate Policy' produced in 2013 by CDP alongside UN Global Compact, Ceres, The Climate Group, WWF and the World Resources Institute.
(C12.3a) On what policy, law, or regulation that may impact the climate has your organization been engaging directly with policy makers in the reporting year?
Question dependencies
This question only appears if you select “Direct engagement with policy makers” in response to C12.3.
Change from last year
Modified question
Rationale
Data users wish to understand how companies’ policy engagement on climate change relate to other stances taken. This question provides increased transparency regarding organizations’ direct engagement with policy makers, and whether the engagement is aligned with the global temperature goals of the Paris Agreement.
Connection to other frameworks
NZAM (FS only)
Commitment 9
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Focus of policy, law, or regulation that may impact the climate
|
Specify the policy, law, or regulation on which your organization is engaging with policy makers
|
Policy, law, or regulation geographic coverage
|
Country/region the policy, law, or regulation applies to
|
Your organization’s position on the policy, law, or regulation
|
Description of engagement with policy makers
|
Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation
|
Have you evaluated whether your organization’s engagement is aligned with the goals of the Paris Agreement?
|
Select all that apply from the drop-down below
|
Text field [maximum 1,500 characters]
|
Select from:
- Global
- Regional
- National
- Sub-national
- Unknown
|
Select all that apply:
- [Country/region drop-down list]
- Other, please specify
|
Select from:
- Oppose
- Neutral
- Support with no exceptions
- Support with minor exceptions
- Support with major exceptions
- Undecided
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
Select from:
- Yes, we have evaluated, and it is aligned
- Yes, we have evaluated, and it is not aligned
- No, we have not evaluated
|
[Add Row]
Focus of policy, law or regulation that may impact the climate drop-down options (column 1)
- Adaptation and/or resilience to climate change
- Carbon tax
- Circular economy
- Climate-related targets
- Electricity grid access for renewables
- Emissions trading schemes
- Energy attribute certificate systems
- Extended Producer Responsibility (EPR)
- Food security
- Green electricity tariffs
- International trade agreement
- Low-carbon, non-renewable energy generation
- Mandatory climate-related reporting
- Methane emissions
- Minimum energy efficiency requirements
- New fossil fuel energy generation capacity
- Renewable energy generation
- Subsidies for fossil fuel exploration and/or extraction
- Subsidies for renewable energy projects
- Subsidies on products
- Sustainable finance
- Taxes on products
- Traceability requirements
- Transparency requirements
- Verification and audits
- Other, please specify
Requested content
Focus of policy, law or regulation that may impact the climate (column 1)
- This column relates to the general area in which the legislation that your organization is engaging on falls.
- The data from this column allows data users to assess comparable legislative developments across multiple geographies.
- There is no need to provide details on all legislation types – only those on which you have been actively engaging in the reporting year.
Specify the policy, law or regulation on which your organization is engaging with policy makers (column 2)
- Provide the name of the legislation and the key actions it proposes.
Country/region the policy, law or regulation applies to (column 4)
- This column only appears if “Regional”, “National”, “Sub-national” is selected in “Policy, law or regulation geographic coverage” (column 3)
- If the policy, law, or regulation is at the sub-national level, select “Other, please specify” and specify the region(s) within a nation to which it applies.
Your organization’s position on the policy, law or regulation (column 5)
- This should reflect your organization's overall position on this particular legislation. For example:
- “Support” – select this option if you are engaging in full support of this legislation across all the geographies in which you are engaging on it.
- “Support with minor exceptions” – select this option if you are engaging in support of this legislation with either minor exceptions to the approach or with minor exceptions to geographies for whom it is proposed and where you are actively engaging. For example, if you support the principle of but oppose certain ways in which it is being applied, select this option. You will be given the chance to explain any exceptions in column 7.
- “Support with major exceptions” – select this option if you are engaging in support of this legislation with either major exceptions to the approach or with major exceptions to geographies for whom it is proposed and where you are actively engaging.
- “Neutral” – select this option if you have taken part in engagement activities for this legislation but have not put forward a view.
- “Oppose” – select this option if you have been engaging against this legislation across all relevant geographies.
- “Undecided” – select this option if you have been engaging on this legislation at an early stage in the development process and have yet to give an opinion or attempt to influence the policy development process in any direction.
Description of engagement with policy makers (column 6)
- Use the text field to provide details of how your organization is engaging (e.g., responding to a consultation, meeting directly with policy makers, etc.) on the legislation.
Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation (column 7)
- This column only appears if “Support with minor exceptions”, “Support with major exceptions”, or “Oppose” is selected in “Your organization’s position on the policy, law or regulation” (column 5)
- If your organization supports the legislation with exceptions, provide details of the exceptions and what you would propose in their place.
- If your organization opposes the legislation, provide details of an alternative legislative approach that you feel would more effectively reduce carbon emissions in the corporate sector. For example, if you support mandatory climate-related reporting but oppose its schedule for implementation, you should propose an alternative legislative timeframe for the implementation of mandatory climate-related reporting.
Have you evaluated whether your organization’s engagement is aligned with the goals of the Paris Agreement? (column 8)
- Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
- Engagement that is aligned with the Paris Agreement could include, for example:
- Support of legislation that aims to reduce emissions in line with the Paris Agreement e.g. government subsidies on electric vehicles and associated implementation technology.
- Opposition of legislation that risk to detail Paris Agreement e.g. legislative approval of new fossil fuel extraction or generation facilities in a particular jurisdiction.
Example response
Focus of policy, law, or regulation that may impact the climate
|
Specify the policy, law, or regulation on which your organization is engaging with policy makers
|
Policy, law, or regulation geographic coverage
|
Country/region the policy, law, or regulation applies to
|
Your organization’s position on the policy, law, or regulation
|
Description of engagement with policy makers
|
Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation
|
Have you evaluated whether your organization’s engagement is aligned with the goals of the Paris Agreement?
|
Mandatory climate-related reporting
|
The UK Department for Business, Energy & Industrial Strategy (BEIS) consultation on Business Energy Efficiency
|
National
|
United Kingdom
|
Support with no exceptions
|
Attended the BEIS public webinar and responded to the consultation on Mandatory climate-related financial disclosures by publicly quoted companies, large private companies and LLPs.
|
N/A
|
Yes, we have evaluated, and it is aligned
|
Emissions trading schemes
|
EU ETS
|
Regional
|
EU27
Iceland
Norway
Liechtenstein
United Kingdom
|
Support with minor exceptions
|
Met directly with policymakers from the European Commission’s Directorate-General for Climate Action, to communicate the commercial benefits and risks of phase IV proposals for the EU ETS.
|
We broadly support the phase IV proposals, however we advocate for a more ambitious 3% annual reduction in the overall number of emission allowances, as opposed to the current rate of 2.2%.
|
Yes, we have evaluated, and it is aligned
|
(C12.3b) Provide details of the trade associations your organization engages with which are likely to take a position on any policy, law or regulation that may impact the climate.
Question dependencies
This question only appears if you select “Yes we engage indirectly through trade associations” in response to column 1 in C12.3.
Change from last year
Modified question (2021 C12.3c)
Rationale
Trade associations are a crucial tool through which companies can shape policy and interact with legislators and industry peers. These trade associations can potentially play a significant role in the development and adoption of climate policy. As such, investors and data users expect companies to be transparent about their relationships and responsibilities with the groups which are likely to take a position on legislation related to climate change.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Trade association
|
Is your organization's position on climate change consistent with theirs?
|
Has your organization influenced, or is your organization attempting to influence their position?
|
State the trade association’s position on climate change, explain where your organization’s position differs, and how you are attempting to influence their position (if applicable)
|
Funding figure your organization provided to this trade association in the reporting year, if applicable (currency as selected in C0.4) (optional)
|
Describe the aim of your organization’s funding
|
Have you evaluated whether your organization’s engagement with this trade association is aligned with the goals of the Paris Agreement?
|
Select from drop-down options in table below
|
Select from:
- Consistent
- Inconsistent
- Mixed
- Unknown
|
Select from:
- We have already influenced them to change their position
- We are attempting to influence them to change their position
- We publicly promote their current position
- We publicly oppose their current position
- We are planning to terminate our membership within the next two years
- We are not attempting to influence their position
|
Text field [maximum 2,500 characters]
|
Numerical field [enter a number from 0 to 999,999,999,999,999, using up to 2 decimal places]
|
Text field [maximum 2,500 characters]
|
Select from:
- Yes, we have evaluated, and it is aligned
- Yes, we have evaluated, and it is not aligned
- No, we have not evaluated
|
[Add Row]
Trade association drop-down options (column 1)
- Advanced Energy Economy (AEE)
- Alliance of Automobile Manufacturers
- American Chemistry Council
- American Fuel & Petrochemical Manufacturers
- American Legislative Exchange Council
- American Petroleum Institute
- American Wind Energy Association (AWEA)
- Business Council of Australia
- Business Roundtable
- BusinessEurope
- Canadian Association of Petroleum Producers
- CEMBUREAU: The European Cement Association
- Confederation of British Industry (CBI)
- Confederation of Indian Industries (CII)
- Consumer Goods Forum (CGF)
- Cross Sector Biodiversity Initiative (CSBI)
- Edison Electric Institute (EII)
- Eurelectric
- Eurometaux
- European Automobile Manufacturers Association
- European Chemical Industry Council (CEFIC)
- European Roundtable of Industrialists (ERT)
- European Steel Association (Eurofer)
- Federation of French Industry (MEDEF)
- Federation of German Industries (BDI)
- Federation of Indian Chambers of Commerce & Industry (FICCI)
- FuelsEurope
- German Automotive Association (VDA)
- German Chemical Industry Association (VCI)
- Global Off-Grid Lighting Association (GOGLA)
- Global Wind Energy Council (GWEC)
- International Air Transport Association
- International Association of Oil and Gas Producers (IOGP)
- International Chamber of Commerce (ICC)
- International Chamber of Shipping
- International Council on Mining & Metals (ICMM)
- Japan Business Federation (Keidanren)
- Japan Chemical Industry Association/日本化学工業協会
- Minerals Council of Australia
- National Association of Manufacturers
- National Mining Association
- Portland Cement Association
- Solar Energy Industries Association (SEIA)
- SolarPower Europe
- Sustainable Agriculture Initiative Platform (SAIP)
- The Japan Electrical Manufacturers’ Association (JEMA)
- Tropical Forest Alliance
- US Chamber of Commerce
- WindEurope
- World Steel Association
- Other, please specify
Requested content
Trade association (column 1)
- If none of the listed options apply, select “Other, please specify” and enter the name of the trade association.
- Note that this question asks you to provide details of all trade associations you are a member of that take a position on climate change, not only (but including) those for which you have a formal representation on or provide funding beyond membership.
Is your organization's position on climate change consistent with theirs? (column 2)
- Select the option which best describes the consistency of your organization’s position on climate change with the trade association’s. Refer to the “Additional information” for resources on the climate change positions of trade associations.
- You will have the opportunity to provide more details in column 4.
How has your organization, or is your organization attempting to influence their position? (column 3)
- Select the option which best describes the actions your organization has taken, or is in the process of taking to influence the trade association’s position on climate change.
- You will have the opportunity to provide more details in column 4.
State the trade association’s position on climate change, where your organization’s position differs, and how you are attempting to influence their position (if applicable) (column 4)
- Provide details of the trade association’s position on climate change and give examples of any activities the trade association has undertaken in the reporting year to influence climate change policy.
- Elaborate on your selections in columns 2 and 3. For example:
- If your organization’s position is “Inconsistent” or “Mixed”, explain how your organization’s position on climate change differs from the trade association’s position.
- If you selected “Unknown” in column 2, explain why you do not know whether the trade association’s position on climate change is consistent with your organization’s position and state whether you intend to research the trade association’s position on climate change in the future.
- If you have attempted or are attempting to influence the trade association’s position on climate change, describe the actions you are taking to achieve this and the associated timeframe.
Funding figure your organization provided to this trade association in the reporting year, if applicable (currency as selected in C0.4) (optional) (column 5)
- Enter the total amount of funding you have provided to this trade association in the reporting year, including any membership or other fees.
Describe the aim of your organization’s funding (column 6)
- This column only appears if the value for column 5 is greater than 0.
- Give an overview of what you aim to achieve through your funding, including any specific outcomes in relation to the trade association’s position on climate change and its activities to influence climate change policy.
Have you evaluated whether your organization’s engagement with this trade association is aligned with the goals of the Paris Agreement? (column 7)
- Indicate whether your organization has evaluated the position of the trade association and its activities to influence climate change policy for alignment with the goals of the Paris Agreement.
- Any actions you took as a result of this evaluation should be detailed in columns 3 and 4.
- Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
- Engagement that is aligned with the Paris Agreement could include, for example:
- Influencing a trade association that supports climate denial to change its position or terminating your membership with this trade association.
- Publicly supporting a trade association which aims to influence ambitious climate policy.
Explanation of terms
- Trade associations: Trade associations (sometimes also referred to as industry associations, trade groups, trade bodies, or industry trade groups) are an association of people or companies in a particular business or trade, organized to promote their common interests. Trade associations are relevant here as they present an “industry voice” to governments to influence their policy development. The majority of organizations are members of multiple trade associations, many of which take a position on climate change and actively engage with policy makers on the development of policy and legislation on behalf of their members.
Additional information
Climate change position of trade associations
- To aid companies in sorting through the climate-related action of trade associations and determining where the groups in which they belong actually stand on climate change, InfluenceMap has launched a corporate climate lobbying platform which uses data-driven analysis to provide detailed measurement of how trade associations influence policy needed to address climate change.
(C12.3c) Provide details of the funding you provided to other organizations in the reporting year whose activities could influence policy, law, or regulation that may impact the climate.
Question dependencies
This question only appears if you select "Yes, we engage indirectly by funding other organizations whose activities may influence policy, law or regulation that may impact the climate” in response to C12.3.
Change from last year
Modified question (2021 C12.3e)
Rationale
Companies have many potential avenues for engagement activities. Funding organizations other than trade associations can play an important role in the development and adoption of climate policy. As such, data users expect companies to be transparent about the full range of their funding activities which could influence policy, law, or regulation that may impact the climate.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Type of organization
|
State the organization to which you provided funding
|
Funding figure your organization provided to this organization in the reporting year (currency as selected in C0.4)
|
Describe the aim of this funding and how it could influence policy, law or regulation that may impact the climate
|
Have you evaluated whether this funding is aligned with the goals of the Paris Agreement?
|
Select from:
- Governmental institution
- International Governmental Organization (IGO)
- Non-Governmental Organization (NGO) or charitable organization
- Political party
- Private company
- Publicly-listed company
- Research organization
- Start-up company
- State-Owned Enterprise (SOE)/Government-Owned Corporation (GOC)
- Trust or foundation
- University or other educational institution
- Other, please specify
|
Text field [maximum 500 characters]
|
Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places] |
Text field [maximum 2,500 characters]
|
Select from:
- Yes, we have evaluated, and it is aligned
- Yes, we have evaluated, and it is not aligned
- No, we have not evaluated
|
[Add row]
Requested content
General
- You should also disclose in this question other, non-financial support you have provided to other organizations in the reporting year (e.g. benefits, etc.). In this case, you should estimate the monetary value of your non-financial support and provide this in column 3.
Type of organization (column 1)
- If you fund multiple organizations whose activities may influence climate policy, you should add a row for each.
- See the “Explanation of Terms” for a definition of each organization type.
State the organization to which you provided funding (column 2)
- Provide the full name and a short description of the organization to which you are providing funding.
Funding figure your organization provided to this organization in the reporting year (currency as selected in C0.4) (column 3)
- Enter the total amount of funding you have provided to this organization, including any membership or other fees.
Describe the aim of this funding and how it could influence policy, law or regulation that may impact the climate (column 4)
- Describe the type of funding or non-financial support (e.g. membership fees, sponsorship, grant, benefits, etc), and provide an overview of the objectives of your support, including any expected concrete outcomes (e.g. research papers or reports).
- Explain how the outcomes of your funding could influence policy, law or regulation that may impact the climate.
- If you have estimated the monetary value of any non-financial support, you should also explain how you estimated the figure reported in column 3.
Have you evaluated whether this funding is aligned with the goals of the Paris Agreement? (column 5)
- Indicate whether your organization has evaluated the aims and expected outcomes of your funding for alignment with the goals of the Paris Agreement.
- Alignment with the goals of the Paris Agreement: refers to the Paris Agreement long-term temperature goal, as expressed in relevant IPCC reports, in particular the IPCC Sixth Assessment Report (AR6) and the IPCC Special Report on Global Warming of 1.5°C (SR1.5).
- Funding that is aligned with the Paris Agreement could include, for example, funding a research project into new alternative fuels, the report from which may be used to inform future transport policy.
Explanation of terms
- Governmental institution: An organization that is connected to or led by a national government (e.g., the UK Committee on Climate Change).
- International Governmental Organization (IGO): An organization that is comprised of national governments. For the purposes of this question, IGOs can refer both to organizations created through treaties (e.g., the UN), and to more informal coalitions of national governments (e.g., the G20).
- Non-Governmental Organization (NGO) or charitable organization: Any non-profit, voluntary citizens’ group which is organized on a local, national or international level. A charitable organization is typically an NGO with a special legal status, varying by jurisdiction.
- Political party: An organization which participates in the electoral systems of countries.
- Private company: A company which does not offer or trade company stock to the general public.
- Publicly-listed company: A company which offers and trades shares of stock freely.
- Research organization: An organization which performs research as their primary activity.
- Start-up company: A company in the very initial stages of business, often without a fully developed business model.
- State-Owned Enterprise (SOE)/Government-Owned Corporation (GOC): A company formed by governments in order to take part in commercial activities.
- Trust or foundation: An organization which has been given the right by one party to manage their property or assets for the benefit of some third party.
- University or other educational institution: An entity that provides instructional services to individuals or education-related services to individuals and other educational institutions.
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 last year
Modified guidance
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
|
Status
|
Attach the document
|
Page/Section reference
|
Content elements
|
Comment
|
Select from:
- In mainstream reports
- In mainstream reports, in line with the CDSB framework (as amended to incorporate the TCFD recommendations)
- In mainstream reports, incorporating the TCFD recommendations
- In other regulatory filings
- In voluntary communications
- In voluntary sustainability report
- No publications with information about our response to climate-related issues and GHG emissions performance
- Other, please specify
|
Select from:
- Complete
- Underway – previous year attached
- Underway – this is our first year
|
Attach your document here.
|
Text field [maximum 500 characters]
|
Select all that apply:
- Governance
- Strategy
- Risks & Opportunities
- Emissions figures
- Emission targets
- Other metrics
- Other, please specify
|
Text field [maximum 2,400 characters]
|
[Add Row]
Requested content
General
- This question asks about communication of your position on climate change and carbon emissions outside of your CDP response.
- Privately held companies that do not have a legal obligation to produce annual reporting should still select “In mainstream reports” if they publish any annual sustainability reporting.
- Even where the relevant information is web-based, you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfill this requirement.
Publication (column 1)
- Select from the drop-down options the type of publication your organization has published in response to climate change and its GHG emissions performance for the reporting year in places other than its CDP response.
- CDP uses the CDSB Framework definition of mainstream reports, i.e. annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country 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.
Industry collaboration
(C-FS12.5) Indicate the collaborative frameworks, initiatives and/or commitments related to environmental issues for which you are a signatory/member.
Change from last year
Modified question
Rationale
By becoming a signatory of environmental collaborative industry initiatives, organizations in the financial sector contribute to the development of environmental disclosure frameworks, metrics and commitments that will help the sector and the wider real economy meet the goals of the Paris agreement. Supporting environmental industry initiatives sends a signal to investors about the organization’s commitment to taking steps to align its business to a 1.5-degree world.
Connection to other frameworks
NZAM (FS only)
General commitment
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Environmental collaborative framework, initiative and/or commitment
|
Describe your organization’s role within each framework, initiative and/or commitment*
|
Select all that apply:
[dropdown list below]
|
Text field [maximum 5,000 characters]
|
Environmental collaborative framework, initiative and/or commitment options (column 1)
- Alliance for Water Stewardship (AWS)
- Asia Investor Group on Climate Change (AIGCC)
- Asia Sustainable Finance Initiative (ASFI)
- Banking Environment Initiative
- CDP Signatory
- Ceres Valuing Water Initiative
- Cerrado Manifesto
- CEO Water Mandate
- Climate Action
100+
- Climate Bonds
Initiative Partner Programme
- Climate
Disclosure Standards Board (CDSB)
- ClimateWise
Principles
- Collective
Commitment of Climate Action
- Equator
Principles
- Forest Stewardship
Council (FSC)
- G7 Investors
Global Initiative
- Global Alliance
for Banking on Values (GABV)
- Global
Roundtable for Sustainable Beef (GRSB)
- IIF Forum on
Implementation of TCFD Recommendations
- Institutional
Investors Group on Climate Change (IIGCC)
|
- International Corporate Governance Network (ICGN)
- Investor Network on Climate Risk (INCR)
- Montreal Pledge
- Natural Capital Finance Alliance
- Net Zero Banking Alliance
- Net Zero Insurance Alliance
- Net Zero Asset Managers initiative
- Net Zero Asset Owner Alliance
- New York Declaration on Forests
- Paris Agreement Capital Transition Assessment (PACTA)
- Partnership for Biodiversity Accounting Financials (PBAF)
- Partnership for Carbon Accounting Financials (PCAF)
- PRI Investor Working Group on Sustainable Palm Oil
- Principle for Responsible Investment (PRI)
- Programme for the Endorsement of Forest Certification (PEFC)
- Positive Impact Initiative
- RE100
- Roundtable on Responsible Soy (RTRS)
- Roundtable on Sustainable Palm Oil (RSPO)
|
- Science Based Targets Network (SBTN)
- Science-Based Targets Initiative for Financial Institutions (SBTi-FI)
- Soft Commodities Compact
- Task Force on Climate-related Financial Disclosures (TCFD)
- Task Force on Nature-related Financial Disclosures (TNFD)
- The Investor Agenda
- Transition Pathway Initiative
- The Water Council
- Tropical Forest Alliance 2020
- UN Global Compact
- UNEP FI
- UNEP FI Portfolio Decarbonization Coalition
- UNEP FI Principles for Responsible Banking
- UNEP FI Principles for Sustainable Insurance
- UNEP FI TCFD Pilot
- We Are Still In
- We Mean Business
- Other, please specify
- We are not a signatory/member of any collaborative framework, initiative and/or commitment related to environmental issues
|
Requested content
General
- This question asks about your involvement and role in wider environmental collaborative industry initiatives.
- The option “We are not a signatory/member of any collaborative framework, initiative and/or commitment related to environmental issues” should only be selected on its own.
Describe your organization’s role within each framework, initiative and/or commitment (column 2)
- This column appears if any option other than “We are not a signatory/member of any collaborative framework, initiative and/or commitment related to environmental issues” is selected in column 1.
C13 Module Dependencies
Module C13 only applies to organizations with activities in the following sectors:
- Agricultural commodities
- Food, beverage & tobacco
- Paper & forestry
C14 Portfolio Impact
Module Overview
This module provides the opportunity to disclose the impacts your financial portfolio(s) has on the climate, and to break down your portfolio emissions and/or other carbon footprinting and exposure metrics by asset class, industry, country/region and/or scope.
This module also requests data on portfolio alignment to a 1.5-degree world.
Key changes
- Removed questions:
- C-FS14.1c (2021) on portfolio impact analysis.
- C-FS14.3b (2021) on why you do not encourage your clients/investees to set science-based targets.
- Two new questions:
- [Financial services only] C-FS14.0 requests the value of your financing and insurance of carbon-related assets for each portfolio activity.
- [Financial services only] C-FS14.2d requests a breakdown of your portfolio impact by scope.
- Modified questions:
- [Financial services only] C-FS14.1 requests an explanation why you do not analyze the impact of your portfolio on the climate, if you do not.
- [Financial services only] C-FS14.1a requests details of your organization’s portfolio emissions rather than just Scope 3 portfolio emissions.
- [Financial services only] C-FS14.1b requests details of other carbon footprinting and/or exposure metrics used to track the impact of your portfolio on the climate rather than just Scope 3 portfolio emissions.
- [Financial services only] C-FS14.2 has the additional option to break down your organization's portfolio impact by scope.
- [Financial services only] C-FS14.2a has an expanded list of asset classes and a standardized list of portfolio metrics.
- [Financial services only] C-FS14.2b and C-FS14.2c request reporting for each portfolio activity separately, and have a standardized list of portfolio metrics.
- [Financial services only] C-FS14.3 requests an explanation why your organization did not take any actions in the reporting year to align your portfolio with a 1.5-degree world, if you did not.
- [Financial services only] C-FS14.3a requests an explanation why your organization does not assess if your clients/investees' business strategies are aligned with a 1.5-degree world, if you do not.
Click here for a list of all changes made this year.
Pathway diagram - questions
This diagram shows the questions contained in module C14. To access question-level guidance, use the menu on the left to navigate to the question.
Portfolio value
(C-FS14.0) For each portfolio activity, state the value of your financing and insurance of carbon-related assets in the reporting year.
Question Dependency
Rows in this question will be presented according to the organizational activities reported in C-FS0.7.
Change from last year
New question
Rationale
The majority of financial institutions’ emissions are driven by the activities they finance in the wider economy (financed emissions) and their exposure to climate-related risks and opportunities are determined by their portfolios; that is by their lending, investment and insurance underwriting activities. Therefore, investors and data users want to understand the concentrations of carbon-related assets in financial institutions’ portfolio. Without an analysis of how financial portfolios impact the climate, organizations may not be able to identify their own exposure to climate-related risks, and they may be unprepared for future uncertainties and liabilities related to climate change.
Connection to other frameworks
TCFD
Metrics & Targets recommended b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio activity
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Are you able to report a value for the carbon-related assets?
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Value of the carbon-related assets in your portfolio (unit currency - as specified in C0.4)*
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New loans advanced in reporting year (unit currency - as specified in C0.4)*
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Total premium written in reporting year (unit currency - as specified in C0.4)*
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Percentage of portfolio value comprised of carbon-related assets in reporting year*
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Primary reason for not providing a value for the financing and/or insurance to carbon-related assets*
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Please explain why you are not providing a value for the financing and/or insurance to carbon-related assets and your plans for the future*
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Lending to all carbon-related assets*
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Select from:
- Yes
- No, but we plan to assess our portfolio's exposure in the next two years
- No, and we do not plan to assess our portfolio's exposure in the next two years
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Numeric field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
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Numeric field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
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Numeric field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
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Percentage field [enter a percentage from 0-100]
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Select from:
- Important, but not immediate priority
- Judged to be unimportant, explanation provided
- Lack of internal resources
- No instruction from management
- No relevant exposure in portfolio
- Other, please specify
|
Text field [maximum 2,500 characters]
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Lending to coal*
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Lending to oil and gas*
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Investing in all carbon-related assets (Asset manager)*
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Investing in coal (Asset manager)*
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Investing in oil and gas (Asset manager)*
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Investing all carbon-related assets (Asset owner)*
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Investing in coal (Asset owner)*
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Investing in oil and gas (Asset owner)*
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Insuring all carbon-related assets*
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Insuring coal*
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Insuring oil and gas*
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Requested content
General
Portfolio activity (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7.
Value of the carbon-related assets in your portfolio (unit currency – as specified in C0.4) (column 3)
- This column only appears if “Yes” is selected in column 2.
- For lending and investing rows, report the total value of loans/investments outstanding in your portfolio at the end of the reporting year. For insurance rows, report the total sums insured in your portfolio for the reporting year.
New loans advanced in reporting year (unit currency – as specified in C0.4) (column 4)
- This column only appears for “Lending...” rows where “Yes” is selected in column 2
- Include new loans advanced even if the loan has subsequently been removed from your portfolio. This module is asking about portfolio impact – impact on climate cannot be transferred in the same way that risk to your portfolio can.
Total premium written in reporting year (unit currency – as specified in C0.4) (column 5)
- This column only appears for “Insuring…” rows where “Yes” is selected in column 2.
- Report the Gross Written Premium (GWP) including direct and assumed that is written (before deductions for reinsurance and ceding commission) in the reporting year.
Percentage of portfolio value comprised of carbon-related assets in reporting year (column 6)
- Provide a percentage value for the amount reported in column 3 in relation to your total portfolio value.
Primary reason for not providing a value for the financing and/or insurance to carbon-related assets (column 7)
- This column only appears if any “No” option is selected in column 2.
Please explain why you are not providing a value for the financing and/or insurance to carbon-related assets and your plans for the future (column 8)
- This column only appears if any “No” option is selected in column 2.
- Ensure your explanation is company-specific and provides details as to why you do not provide a value for the financing and/or insurance to carbon-related assets.
- If you plan to assess your exposure within the next 2 years provide details of how you plan to do this.
- If you wish to provide any additional context to your disclosure, including any plans or timelines your organization has for completely phasing out financing and/or insurance of carbon-related assets, you can also do that in this column.
Explanation of terms
- Value of carbon-related assets: The amount of carbon-related assets in the portfolio expressed in unit currency – as specified in C0.4.
- Carbon-related assets: In the updated TCFD Annex, the TCFD suggest defining carbon-related assets as those assets tied to the four non-financial groups (Energy, Transportation, Materials and buildings, and Agriculture, Food, and Forest Products) identified by the TCFD. There may be industries or sub-industries that are appropriate to exclude, such as water utilities and independent power and renewable electricity producer industries. Banks should describe which industries they include.
Portfolio Impact
(C-FS14.1) Does your organization measure its portfolio impact on the climate?
Question dependencies
Rows in this question will be presented according to the organizational activities reported in C-FS0.7.
Change from last year
Modified question
Rationale
The majority of emissions associated with the financial services sector occur in the investment chain - within the financial products and services they provide and/or in their investments (financed emissions). Organizations in this sector may measure their portfolio impact using specific metrics to understand how concentrations of climate-related risks and opportunities potentially impact their financial activities and the impact their financial activities have on the climate. This question informs investors and other data users about the extent to which you understand your portfolio’s climate-related impact.
Connection to other frameworks
TCFD
Metrics & Targets recommended disclosure b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
SDG
Goal 12: Responsible consumption and production
Goal 13: Climate action
2018 RobecoSAM Corporate Sustainability Assessment (DJSI)
Scope 3
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Portfolio
|
We conduct analysis on our portfolio's impact on the climate.
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Disclosure metric* |
Please explain why you do not measure the impact of your portfolio on the climate* |
Banking (Bank)*
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Select from:
- Yes
- No, but we plan to do so in the next two years
- No, and we do not plan to do so in the next two years
|
Select all that apply:
- Portfolio emissions
- Other carbon
footprinting and/or exposure metrics (as defined by TCFD)
- Other, please specify
|
Text field [maximum 2,400 characters]
|
Investing (Asset manager)*
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Investing (Asset owner)*
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Insurance underwriting (Insurance company)*
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Requested content
General
- This question is seeking to understand whether you evaluate your organization’s portfolio impact or financed emissions (Portfolio emissions or other metric). Portfolio impact can be expressed in a number of carbon footprinting and exposure metrics, as identified by the TCFD:
- Total carbon absolute emissions (GHG emissions accounting)
- Weighted average carbon intensity
- Portfolio carbon footprint
- Carbon intensity
- Exposure to carbon-related assets
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7.
- You are requested to complete all rows in this table.
We conduct analysis on our portfolio's impact on the climate (column 2)
- Select “Yes” if you measure how your portfolio impacts the climate. In subsequent questions you can provide more details and disclose the portfolio emissions or other metrics, as listed above.
Disclosure metric (column 3)
- This column only appears if "Yes" is selected in column 2
- Indicate which metric(s) you are using to measure the impact of your portfolio on the climate
Please explain why you do not measure the impact of your portfolio on the climate (column 4)
- This column only appears if any "No" option is selected in column 2
- Ensure your explanation is company-specific and provides details as to why you do not conduct analysis to understand how your portfolio impacts the climate. You may also include details on whether you are exploring ways to measure your portfolio impact in the future and what metrics you are looking at using.
Explanation of terms
- Other carbon footprinting and/or exposure metrics: Metrics organizations in the financial sector can use to understand how their financial portfolio impacts the climate, as identified by the TCFD and to be used alongside portfolio
emission metrics:
- Carbon intensity: Volume of carbon emissions per million dollars of revenue (carbon efficiency of a portfolio), expressed in tons CO2e/Million revenue (in unit currency).
- Weighted average carbon intensity: Portfolio’s exposure to carbon-intensive companies, expressed in tons CO2e/Million revenue. This is the metric recommended by the TCFD.
- Portfolio carbon footprint: Total carbon emissions for a portfolio normalized by the market value of the portfolio, expressed in tons CO2e/Million invested.
- Portfolio emissions: The absolute greenhouse gas emissions associated with a portfolio, expressed in tons CO2e. For financial institutions, the indirect emissions caused by their financing activities are relevant and their emissions inventory would be incomplete without accounting for them. The GHG Protocol classifies these emissions in Scope 3 Category 15 Investments. They are also known as portfolio emissions or financed emissions. Put simply, they are emissions that occur at sources owned or controlled by other companies, but which are made possible because those companies are financed by the investment and lending (and insurance underwriting) of financial institutions; therefore, they can be thought of as caused indirectly by the financial institution and should be included in the financial institutions Scope 3 inventory.
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financial activities and insurance policies that you offer.
- Banking portfolio: For banking, this is the entire collection of products and loans held on your balance sheet for which you own the receivable stream.
- Investing (Asset owner) portfolio: For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company.
- Investing (Asset manager) portfolio: For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. Asset managers should consider discretionary investments, those where the company has discretion over investment decision.
- Insurance portfolio: For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(C-FS14.1a) Provide details of your organization's portfolio emissions in the reporting year.
Question dependencies
This question only appears if you select "Yes" in column 2 and "Portfolio emissions" in column 3 of question C-FS14.1.
Change from last year
Modified question
Rationale
GHG emissions accounting is one of the primary metrics organizations in the financial sector can use to understand how their portfolio impacts the climate. In addition to highlighting risks and opportunities, portfolio emissions disclosure is a pre-requisite for financial institutions to measure improvements in the climate performance of their portfolios, and measure progress towards the net zero commitments that are increasingly being made.
IMPORTANT NOTE:
This question asks you to disclose your portfolio emissions (also known as Scope 3 Category 15 “Investments” total absolute emissions), previously asked in C6.5 Row 15. For organizations in the financial sector, Scope 3 Category 15 “Investments” total absolute emissions has been pulled out of question C6.5 as the majority of emissions occur in the investment chain, in relation to financial products and services and/or investments. Portfolio emissions (or Scope 3 Category 15 “Investments” total absolute emissions as defined by the GHG Protocol) is the most relevant category to financial services organizations.
In this question, organizations in the financial sector are only requested to disclose their Scope 3 Category 15 “Investments” total absolute emissions, Categories 1-14 and if applicable Categories 16 and 17 should be disclosed in C6.5.
Connection to other frameworks
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
NZAM (FS only)
Commitment 2
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Portfolio
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Portfolio emissions (metric unit tons CO2e) in the reporting year
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Portfolio coverage
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Percentage calculated using data obtained from clients/investees
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Emissions calculation methodology
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Please explain the details and assumptions used in your calculation
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Banking (Bank)*
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Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
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Percentage field [enter a percentage from 0-100]
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Percentage field [enter a percentage from 0-100]
|
Select from:
- The Global GHG Accounting and Reporting Standard for the Financial Industry
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Investing (Asset manager)*
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Investing (Asset owner)*
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Insurance underwriting (Insurance)*
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Requested content
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7.
- You are requested to complete all rows in this table.
Portfolio emissions (metric unit tons CO2e) in the reporting year (column 2)
- Enter the emissions in metric unit tons CO2e, entering numbers only up to 99,999,999,999 without commas and up to three decimal places.
- Negative numbers are not allowed as reporting needs to be gross, not net figures. Emission figures should be for the reporting year only.
- Entering 0 implies that you have measured and calculated emissions from this source and they are equal to zero.
Portfolio coverage (column 3)
- Enter the percentage of your total portfolio that has been measured based on the portfolio value. Coverage by portfolio value can be based on either total or outstanding commitments, premiums, committed capital, and/or other.
Percentage calculated using data obtained from clients/investees (column 4)
- This column is optional.
- Such data obtained from value chain partners (clients or investees) may take the form of primary activity data or emissions data calculated by value chain partners. More information on this can be found in Chapter 7, Collecting Data, of the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Please explain the details and assumptions used in your calculation (column 6)
- The portfolios and asset classes included in the calculation, explaining why portfolios or asset classes have been excluded from the calculation;
- The Scopes considered when measuring emissions associated with assets in your portfolio;
- The approach taken to attributing emissions associated with assets in your portfolio;
- The sources of data if primary data was used in calculating portfolio emissions;
- The approach taken to modelling or estimating emissions when primary data was not used; and,
- Any assumptions used in the calculation.
- See CDP Technical Note: Portfolio Impact Metrics for Financial Services Sector Companies
Explanation of terms
- Portfolio emissions: The absolute greenhouse gas emissions associated with a portfolio, expressed in tons CO2e. For financial institutions, the indirect emissions caused by their financing activities are relevant and their emissions inventory would be incomplete without accounting for them. The GHG Protocol classifies these emissions in Scope 3 Category 15 Investments. They are also known as portfolio emissions or financed emissions. Put simply, they are emissions that occur at sources owned or controlled by other companies, but which are made possible because those companies are financed by the lending and investment (and insurance underwriting) of financial institutions; therefore, they can be thought of as caused indirectly by the financial institution and should be included in the financial institutions Scope 3 inventory.
Additional information
- Scope 3 screening tool: To help facilitate the adoption of the Scope 3 Standard and assist companies in determining the relevance of Scope 3 emissions sources, the GHG Protocol, in collaboration with Quantis, have released a free Scope 3 screening tool. This tool asks a number of relatively simple questions to approximate your Scope 3 inventory, and can be used by companies of all sizes and all sectors. Please note that this tool is not a data collection tool and should only be used to make a first approximation of your Scope 3 emissions. Having used the tool to help determine the relevance of Scope 3 categories, companies should then develop more accurate approaches for categories shown to be a relevant source of emissions.
(C-FS14.1b) Provide details of the other carbon footprinting and/or exposure metrics used to track the impact of your portfolio on the climate.
Question dependencies
This question only appears if you select “Yes” in column 2 and "Other carbon footprinting and/or exposure metrics (as defined by TCFD)" or “Other, please specify” in column 3 in question C-FS14.1.
Change from last year
Modified question
Rationale
In addition to disclosing a Scope 3 category 15 total emissions figure in C-FS14.1a and your portfolio's exposure to carbon-related assets in C-FS14.0, disclose any other common carbon footprinting and/or exposure metrics you may have calculated for your portfolio.
This question acknowledges that in addition to GHG emissions accounting, there are a number of other metrics organizations in the financial sector can use to understand how their portfolio impacts the climate. As currently there is no single, globally approved methodology or metric, this question allows you to express your portfolio impact using other metrics identified by the TCFD.
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.
NZAM (FS only)
Commitment 2
Response options
Please complete the following table. You are able to add rows by using the "Add Row" button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio
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Portfolio metric
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Metric value in the reporting year
|
Portfolio coverage
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Percentage calculated using data obtained from clients/investees
|
Calculation methodology
|
Select from:
- Banking (Bank)*
- Investing (asset manager)*
- Investing (asset owner)*
- Insurance underwriting (insurance company)*
|
Select from:
- Weighted average carbon intensity (tCO2e/Million revenue)
- Portfolio carbon footprint (tCO2e/Million invested)
- Carbon intensity (tCO2e/Million revenue)
- Avoided emissions financed (tCO2e)
- Carbon removals financed (tCO2e)
- Other, please specify
|
Numeric field [enter a range of 0-999,999,999 using a maximum of 3 decimal places and no commas]
|
Percentage field [enter a percentage from 0-100]
|
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
|
Text field [maximum of 3,000 characters]
|
[Add Row]
Requested content
Portfolio (column 1)
- The options which appear are driven by the portfolios you select as having any “Other” metric in column 3 in C-FS14.1
- You are requested to complete all rows in this table.
Portfolio metric (column 2)
- Select the carbon footprinting and/or exposure metric(s) and the corresponding metric unit that you use to track and report your portfolio impact, as defined in the TCFD Supplemental Guidance for the Financial Sector.
- If you use any alternative climate-related portfolio impact metric not included in the options, select “Other, please specify” and give the metric a label.
- If you select, “Other, please specify”, explain your approach and outline the calculation methodology in column 6 "Calculation methodology".
Portfolio coverage (column 4)
- Select the percentage of your total portfolio assessed based on the portfolio value. Coverage by portfolio value can be based on either total or outstanding commitments, premiums, committed capital and/or other. Please define this in column 6 “Calculation methodology”.
Percentage of emissions calculated using data obtained from clients/investees (column 5)
Calculation methodology (column 6)
- Your response should include a short description of the types and sources of data used to calculate emissions (e.g. activity data, emission factors or GWP values), and a short description of the methodologies, assumptions and allocation methods used to calculate emissions.
- For details on methodologies to calculate carbon footprinting and exposure metrics please consult TCFD’s Supplemental Guidance for the Financial Sector.
- Explain why the metric was chosen and how the coverage has been determined and whether you consider it to be substantive to your organization.
- If you wish to provide any additional context to your calculation, including any exclusions within your portfolio, you can also do that in this column.
Explanation of terms
Other carbon footprinting and/or exposure metrics: Metrics organizations in the financial sector can use to understand how their financial portfolio impacts the climate, as identified by the TCFD and to be used alongside portfolio emission metrics.
- Carbon intensity: Volume of carbon emissions per million dollars of revenue (carbon efficiency of a portfolio), expressed in tons CO2e/$M revenue.
- Weighted average carbon intensity: Portfolio’s exposure to carbon-intensive companies, expressed in tons CO2e/$M revenue. This is the metric recommended by the TCFD.
- (Portfolio) carbon footprint: Total carbon emissions for a portfolio normalized by the market value of the portfolio, expressed in tons CO2e/$M invested.
- Exposure to carbon-related assets: The amount or percentage of carbon-related assets in the portfolio expressed in $M or percentage of the current portfolio value.
- Carbon-related assets: the TCFD suggest defining carbon-related assets as those assets tied to the energy and utilities sectors under the Global Industry Classification Standard (GICS), excluding water utilities and independent power and renewable electricity producer industries.
- Avoided emissions: the reduction in emissions achieved by a project compared to a baseline of what would have been emitted in the absence of the project. Project financing for renewable energy projects such as wind or solar energy generation are common, and achieve avoided emissions compared to energy generation using fossil fuels.
- Carbon removals: CO2 sequestered or removed from the atmosphere and stored, preventing its harmful global warming effect.
Portfolio Impact breakdown
(C-FS14.2) Are you able to provide a breakdown of your organization's portfolio impact?
Question dependencies
This question only appears if you select "Yes" in column 2 of any row in C-FS14.1.
Change from last year
Modified question
Rationale
By breaking down emissions and other
carbon footprinting and/or exposure metrics by asset class, industry, country/regional level and scope, information and data can be made available to investors
and other stakeholders to help guide the development of portfolio footprinting
methodologies, global decarbonization efforts and regional legislation.
Response options
Select all that apply from the following options:
Portfolio breakdown
|
Please explain why you do not provide a breakdown of your portfolio impact* |
Select all that apply:
- Yes, by asset class
- Yes, by industry
- Yes, by country/region
- Yes, by scope
- None of the above, but we plan to do this in the next 2 years
- None of the above and we don't plan to do this
|
Text field [maximum 2,400 characters]
|
Requested content
General
- Select all breakdowns that are relevant to your organization.
Please explain why you do not provide a breakdown of your portfolio impact (column 2)
- This column only appears if you select any “None…” option in column 1.
- If you selected “None of the above, but we plan to do this in the next two years” explain why you don’t do this yet, how you plan to do this and what actions you are currently taking to achieve this.
- If you selected “None of the above and we don’t plan to do this”, explain why you don’t do this and why you don’t plan on doing so in the future.
Explanation of terms
- Portfolio impact: The primary types of metrics organizations in the financial sector can use to understand how their financing portfolio (banking, investing, insurance underwriting) impacts the climate include GHG emissions accounting (GHG Protocol Scope 3 Category 15 “Investments”) and other carbon footprinting and/or exposure metrics as identified by the TCFD.
- By asset class: Most existing methodologies to quantify portfolio impact are determined and calculated on an asset class level. Breaking down emissions and other carbon footprinting and/or exposure metrics by asset class can give an indication of the relative GHG emissions performance and/or exposure to climate-related risks of your company’s assets. When reported over time, your organization and investors will be able to review improvements or declines in asset performance with considerations for your portfolio’s impact on the climate. This breakdown can be used alongside the financial performance of a company’s assets to understand the financial exposure and illustrate the scale of contributions to climate change. Because methodologies are more robust for some asset classes than others, providing this level of data will enable data users to identify gaps in the methodologies and lead to the expansion of coverage.
- By industry: As sectoral decarbonization is at the center of some carbon footprinting methodologies, breaking down emissions, other carbon footprinting and/or exposure metrics on an industry level is key to identify concentrations of carbon-related assets in the financial sector and the financial system’s exposure to climate-related risks. Reporting at this level can provide a useful indicator for making comparisons between your financial activities in different industries. In some cases, particular industries may come within the scope of particular legislation, therefore, providing industry-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this industry.
- By country/region: Breaking down emissions and other carbon footprinting and/or exposure metrics to the country/regional level can provide a useful indicator for making comparisons between your financial activities in different countries and regions. In some cases, particular countries/regions may fall within the scope of particular legislation, therefore, providing country/region-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this country/region.
- By Scope: Current methodologies for calculating portfolio emissions can lead to double counting across scopes. For example, what are counted as Scope 1 emissions for an electricity generation company could be the same emissions for a retailer but counted as Scope 2. There is currently no way for financial institutions to overcome this in their portfolio emission calculations, but this question allows you to report emissions by scope separately. Breaking down absolute emissions of their portfolio by scope can help financial institution identify emissions throughout the value chain of companies in their portfolio. PCAF recommends that emissions associated with loans and investments should be reported separately by Scope if it serves financial institutions’ business goals (e.g. Scope 1 emissions of investees or Scope 2 emissions of investees).
(C-FS14.2a) Break down your organization's portfolio impact by asset class.
Question dependencies
This question only appears if you select “Yes, by asset class” in C-FS14.2.
Change from last year
Modified question
Rationale
Most existing methodologies to quantify Scope 3 portfolio impact are determined and calculated on an asset class level. Breaking down emissions and other carbon footprinting and/or exposure metrics by asset class can give an indication of the relative GHG emissions performance and/or exposure to climate-related risks of your company’s assets. When reported over time, your organization and investors will be able to review improvements or declines in asset performance with considerations for your portfolio’s impact on the climate. This breakdown can be used alongside the financial performance of a company’s assets to understand the financial exposure and illustrate the scale of contributions to climate change. Because methodologies are more robust for some asset classes than others, providing this level of data will enable data users to identify gaps in the methodologies and lead to the expansion of coverage.
Response options
Please complete the following table. You are able to add rows by using the "Add Row" button at the bottom of the table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Asset class*
|
Portfolio metric
|
Portfolio emissions or alternative metric
|
Select from:
Banking
- Corporate loans
- Retail loans
- Corporate real estate
- Retail mortgages
- Trade finance
- Asset finance
- Project finance
- Other, please specify
Investing
- Fixed Income
- Listed Equity
- Private Equity
- Real estate/Property
- Infrastructure
- Commodities
- Forestry
- Hedge funds
- Mutual funds
- Fund of funds
- Derivatives
- Other, please specify
Insurance
- Property & Casualty
- Construction & Engineering
- Agribusiness
- Motor
- Marine
- Life
- Health
- Other, please specify
|
Select from:
- Absolute portfolio emissions (tCO2e)
- Weighted average carbon intensity (tCO2e/Million revenue)
- Portfolio carbon footprint (tCO2e/Million invested)
- Carbon intensity (tCO2e/Million revenue)
- Exposure to carbon-related assets (Million portfolio value)
- Avoided emissions financed (tCO2e)
- Carbon removals financed (tCO2e)
- Other, please specify
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
[Add Row]
Requested content
Asset class (column 1)
- Select from the drop-down list the asset classes that you are able to disclose a figure for.
- The options which appear are driven by the activities you selected in C-FS0.7.
- Add a row for each asset class for which you can disclose a figure by using the "Add Row" button at the bottom of the table.
- If there are other asset classes for which you are able to disclose a figure for but are not listed in the drop-down list, select “Other, please specify” and disclose the asset class.
Portfolio metric (column 2)
Portfolio emissions or alternative metric (column 3)
- If you are reporting absolute emissions or emissions intensity, use gross, not net figures.
Explanation of terms
- Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
- Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
- Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
- Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
- Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
- Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
- Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.
- Commodities: involves buying, selling, or trading a raw product, such as oil, gold, or coffee
- Derivatives: refers to securities that derive their value from an underlying asset or benchmark.
- Fixed Income: refers to a type of investment security that pay investors fixed interest or dividend payments until its maturity date.
- Forestry: investment in forest lands, either directly (direct ownership of forest land) or indirectly (through e.g. a timber fund).
- Fund of funds: investment fund that invests in other types of funds.
- Hedge funds: alternative investments using pooled funds that employ different strategies to earn active returns, or alpha, for their investors.
- Infrastructure: a form of “real assets,” which contain physical assets we see in everyday life like bridges, roads, highways, sewage systems, or energy.
- Listed Equity: refers to shares of ownership issued by publicly-traded companies.
- Mutual funds: investment using pooled funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
- Private Equity: alternative form of private financing in which funds and investors invest directly in companies.
- Real estate/Property: refers to the purchase, purchase, ownership, management, rental and/or sale of real estate (e.g. land, buildings, infrastructure).
- Agribusiness: insurance protection designed to protect businesses that earn all or most of their revenue from agriculture.
- Construction & Engineering: insurance protection that provides financial compensation for covered losses to a building or structure.
- Health: insurance that covers the whole or a part of the risk of a person incurring medical expenses.
- Life: insurance which guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
- Marine: insurance protection that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination.
- Motor: insurance protection for cars, trucks, motorcycles, and other road vehicles.
- Property & Casualty: insurance protection that provides either property protection coverage or liability coverage for property owners
(C-FS14.2b) Break down your organization's portfolio impact by industry.
Question dependencies
This question only appears if you select “Yes, by industry” in C-FS14.2.
Change from last year
Modified question
Rationale
As sectoral decarbonization is at the center of some carbon footprinting methodologies, breaking down emissions, other carbon footprinting and/or exposure metrics on an industry level is key to identify concentrations of carbon-related assets in the financial sector and the financial system’s exposure to climate-related risks. Reporting at this level can provide a useful indicator for making comparisons between your financial activities in different industries. In some cases, particular industries may come within the scope of particular legislation, therefore, providing industry-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this industry.
Response options
Please complete the following table. You can add rows by using the "Add Row" button at the bottom of the table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Portfolio*
|
Industry
|
Portfolio metric
|
Portfolio emissions or alternative metric
|
Select from:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
|
Select from:
- Energy
- Materials
- Capital Goods
- Commercial & Professional Services
- Transportation
- Automobiles & Components
- Consumer Durables & Apparel
- Consumer Services
- Retailing
- Food & Staples Retailing
- Food, Beverage & Tobacco
- Household & Personal Products
- Health Care Equipment & Services
- Pharmaceuticals, Biotechnology & Life Sciences
- Banks
- Diversified Financials
- Insurance
- Software & Services
- Technology Hardware & Equipment
- Semiconductors & Semiconductor Equipment
- Telecommunication Services
- Media & Entertainment
- Utilities
- Real Estate
- Other, please specify
|
Select from:
- Absolute portfolio emissions (tCO2e)
- Weighted average carbon intensity (tCO2e/Million revenue)
- Portfolio carbon footprint (tCO2e/Million invested)
- Carbon intensity (tCO2e/Million revenue)
- Exposure to carbon-related assets (Million portfolio value)
- Avoided emissions financed (tCO2e)
- Carbon removals financed (tCO2e)
- Other, please specify
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
[Add Row]
Requested content
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7.
- Add a row for each portfolio
Industry (column 2)
- Select from the drop-down list the industries that you are able to disclose a figure for, adding one row for each industry.
- You should match the industries reported here with those found in company filings and financial statements if such a calculation methodology exists. (The drop-down options available are based on the Global Industry Classification Standard).
Portfolio metric (column 3)
Portfolio emissions or alternative metric (column 4)
- If you are reporting absolute emissions or emissions intensity, use gross, not net figures.
Additional information
- Definitions of the various industries as per the Global Industry Classification Standard are available here.
(C-FS14.2c) Break down your organization's portfolio impact by country/region.
Question dependencies
This question only appears if you select “Yes, by country/region” in C-FS14.2.
Change from last year
Modified question
Rationale
Breaking down emissions and other carbon footprinting and/or exposure metrics to the country/regional level can provide a useful indicator for making comparisons between your financial activities in different countries and regions. In some cases, particular countries/regions may fall within the scope of particular legislation, therefore, providing country/region-level emissions and/or exposure figures may give data users insight into your organization’s current/potential exposure to regulation in this country/region.
Response options
Please complete the following table. You can add rows by using the "Add Row" button at the bottom of the table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Portfolio*
|
Country/region
|
Portfolio metric
|
Portfolio emissions or alternative metric
|
Select from:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
|
Select from:
[Country/region drop-down list]
|
Select from:
- Absolute portfolio emissions (tCO2e)
- Weighted average carbon intensity (tCO2e/Million revenue)
- Portfolio carbon footprint (tCO2e/Million invested)
- Carbon intensity (tCO2e/Million revenue)
- Exposure to carbon-related assets (Million portfolio value)
- Avoided emissions financed (tCO2e)
- Carbon removals financed (tCO2e)
- Other, please specify
|
Numeric field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
[Add Row]
Requested content
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7.
- Add a row for each portfolio.
Country/region (column 2)
- Select country/region from the drop-down list, adding one row for each country/region.
Portfolio metric (column 3)
Portfolio emissions or alternative metric (column 4)
- If you are reporting absolute emissions or emissions intensity, use gross, not net figures.
(C-FS14.2d) Break down your organization's portfolio impact by scope.
Question dependencies
This question only appears if you select "Yes, by scope" in response to C-FS14.2.
Change from last year
New question
Rationale
Current methodologies for calculating portfolio emissions can lead to double counting across scopes. For example, what are counted as Scope 1 emissions for an electricity generation company could be the same emissions for a retailer but counted as Scope 2. There is currently no way for financial institutions to overcome this in their portfolio emission calculations, but this question allows you to report emissions by scope separately. Breaking down absolute emissions of their portfolio by scope can help financial institution identify emissions throughout the value chain of companies in their portfolio.
Response options
Please complete the following table. You can add rows by using the "Add Row" function at the bottom of the table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Portfolio*
|
Clients'/investees' scope
|
Portfolio emissions (metric tons CO2e)
|
Select from:
- Bank lending (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
|
Select from:
- Scope 1
- Scope 2 (location-based)
- Scope 2 (market-based)
- Scope 3
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places and no commas]
|
[Add Row]
Requested content
General
- Add a row for each portfolio for which you are able to provide a breakdown of your organization's portfolio impact.
- If you are able to provide a breakdown of multiple scopes for a single portfolio, add a separate row for each scope in that portfolio.
Portfolio (column 1)
- The options presented will be driven by the activities you selected in C-FS0.7.
Portfolio emissions (metric tons CO2e) (column 3)
- Disclose the quantitative portfolio emissions associated with the respective scope.
- Use gross emissions figures.
Portfolio alignment
(C-FS14.3) Did your organization take any actions in the reporting year to align your portfolio with a 1.5°C world?
Question dependencies
Rows in this question will be presented according to the activities reported in C-FS0.7.
Change from last year
Modified question
Rationale
Organizations in the financial sector are encouraged to align their financial portfolios with real economy emissions reductions required to achieve the 2015 Paris Agreement. Steering financial portfolios in line with a 1.5°C world, will make financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. Since financial services sector organizations are at the core of enabling economic activities, their commitments and targets have a trickle-down effect on the real economy.
Connection to other frameworks
NZAM (FS only)
Commitment 3
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Portfolio
|
Actions taken to align our portfolio with a 1.5°C world
|
Please explain why you have not taken any action to align your portfolio with a 1.5°C world*
|
Banking (Bank)*
|
Select from:
- Yes
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
|
Text field [maximum 2,500 characters]
|
Investing (Asset manager)*
|
|
|
Investing (Asset owner)*
|
|
|
Insurance underwriting (Insurance company)*
|
|
|
Requested content
Portfolio (column 1)
- The options presented are driven by the activities you selected in C-FS0.7.
Please explain why you have not taken any action to align your portfolio with a 1.5°C world (column 3)
- This column only appears if you select any “No…” option in column 2
- Ensure your explanation is company-specific and provides details as to why you do not take any action to align your portfolio with a 1.5°C world. You may also include details on whether you are exploring ways to do this in the future and what actions you are planning on taking.
Explanation of terms
(C-FS14.3a) Does your organization assess if your clients/investees' business strategies are aligned with a 1.5°C world?
Question dependencies
- This question only appears if you select “Yes” in C-FS14.3.
- Rows will appear for each portfolio that you selected 'Yes' for in C-S14.3.
Change from last year
Modified question
Rationale
While the commitments and targets of financial institutions are a critical step, it is changes in business strategies amongst their clients/investees where emissions actually take place which will decarbonize the real economy. Aligning financial portfolios with a 1.5°C world does not necessarily equate to reducing emissions in the real economy. Organizations in the financial sector are encouraged to assess whether their clients/investees’ business strategies are aligned to a 1.5°C world in order to drive change and decarbonize the real economy.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio
|
Assessment of alignment of clients/investees' strategies with a 1.5°C world
|
Please explain why you are not assessing if your clients/investees’ business strategies are aligned with a 1.5°C world*
|
Banking (Bank)*
|
Select from:
- Yes, for all
- Yes, for some
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
|
Text field [maximum 2,500 characters]
|
Investing (Asset manager)*
|
|
|
Investing (Asset owner)*
|
|
|
Insurance underwriting (Insurance company)*
|
|
|
Requested content
General:
- For the purpose of this question focus on your commercial/corporate/SME clients (commercial/corporate lending).
Portfolio (column 1)
- Rows will appear for each portfolio that you selected 'Yes' for in C-FS14.3.
Please explain why you are not assessing if your clients/investees’ business strategies are aligned with a 1.5°C world (column 3)
- Column 3 only appears if “Yes, for some” or any “No…” option is selected in column 2.
- Ensure your explanation is company-specific and provides details as to why you are not assessing if your clients/investees’ business strategies are aligned with a 1.5°C world. You may also include details on whether you are exploring ways to do this in the future and what actions you are planning on taking.
- If you selected “Yes, for some” in column 2, indicate the proportion of clients/investees’ business strategies that are aligned with a 1.5°C world, and your plans to assess all of your clients/investees’ business strategies in the future.
Explanation of terms
C15 Biodiversity
Module Overview
Disclosure on actions to preserve or improve biodiversity will help organizations to evaluate the relevancy and efficacy of their commitments and consider the biodiversity-related risks and impacts of their business practices.
The data will help with the understanding of the interdependence between biodiversity and business resilience. Demand is increasing for biodiversity-related data that will enable financial institutions to develop investment strategies, and to engage effectively with companies to address the loss of forests and biodiversity that is exposing them to risk throughout their value chains.
This module takes a staged, circular approach, aligned with the International Union for the Conservation of Nature (IUCN’s) guidelines for the planning and monitoring biodiversity performance by companies:
- Develop a set of linked corporate level biodiversity performance indicators
- Implement systems to use the indicators and the data they produce
- Evaluate progress with a periodic review of priorities, ambitions and indicators.
In addition, companies will report on their approach to the governance of biodiversity–related issues.
The questions in this module were influenced by the 4 stage structure as outlined in the IUCN: Guidelines for planning and monitoring corporate biodiversity performance.
Key changes
- Six new questions
- C15.1 requests details of board-level oversight of biodiversity-related issues.
- C15.2 requests details of public commitments/endorsements related to biodiversity.
- C15.3 requests details of the impact of the value chain on biodiversity.
- C15.4 requests details of actions to progress biodiversity-related commitments.
- C15.5 requests details of biodiversity indicators and performance monitoring.
- C15.6 requests details of other biodiversity-related publications.
Click here for a list of all changes made this year.
Pathway diagram - questions
This diagram shows the general questions contained in module C15. To access question-level guidance, use the menu on the left to navigate to the question.
Biodiversity
(C15.1) Is there board-level oversight and/or executive management-level responsibility for biodiversity-related matters within your organization?
Change from last year
New question
Rationale
This question indicates to investors and other data users the level of commitment and strategic importance organizations give to addressing biodiversity-related issues.
Connection to other frameworks
SDG
Goal 15: Life on land
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Board-level oversight and/or executive management-level responsibility for biodiversity-related issues
|
Description of oversight and objectives relating to biodiversity*
|
Scope of board-level oversight [FS Only]*
|
Select from:
- Yes, both board-level oversight and executive management-level responsibility
- Yes, board-level oversight
- Yes, executive management-level responsibility
- No, but we plan to have both within the next two years
- No, and we do not plan to have both within the next two years
|
Text field [maximum 2,500 characters]
|
Select all that apply:
- Risks and opportunities to our own operations
- Risks and opportunities to our bank lending activities
- Risks and opportunities to our investment activities
- Risks and opportunities to our insurance underwriting activities
- The impact of our own operations on biodiversity
- The impact of our bank lending activities on biodiversity
- The impact of our investing activities on biodiversity
- The impact of our insurance underwriting activities on biodiversity
|
Requested content
General
- Consider whether the board, board committees and/or executive management consider biodiversity-related issues when reviewing and guiding the business strategy, major plans of action, risk management policies, annual budgets, and future financial planning, or when setting the organization’s performance objectives, monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures.
Description of board level oversight and objectives (column 2)
- This column is presented only if “Yes” is selected in column 1 (Board-level oversight…)
- Describe how your organization addresses biodiversity at the board/ executive management level. This can include targets and responsibilities related to biodiversity. This is an opportunity to demonstrate thinking beyond climate change at the board level.
- Provide a description of the position(s)/committee(s) in the corporate structure and the level of responsibility they have towards biodiversity-related issues; and
- Explain how the responsibilities of the position(s)/committee(s) are related to biodiversity.
- Note that this column asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.
- You can use this field to enter any relevant information.
Scope of board-level oversight [FS only]
- This column is presented only if “Yes” is selected in column 1 (Board-level oversight…)
- Select the aspects of your activity for which the board oversees biodiversity-related issues.
Explanation of terms
- Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board" (TCFD, 2017).
(C15.2) Has your organization made a public commitment and/or endorsed any initiatives related to biodiversity?
Change from last year
New question
Rationale
An organization that commits publicly to implementing a biodiversity policy sends investors and other data users a strong signal that it wishes to be held to account for its biodiversity stewardship. Organizations disclosing this information can benchmark their commitments against their peers and so drive change within their industries.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Goal 13: Climate Action
Goal 15: Life on land
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Indicate whether your organization made a public commitment or endorsed any initiatives related to biodiversity | Biodiversity-related public commitments* | Initiatives endorsed* |
---|
Select from:- Yes, we have made public commitments and publicly endorsed initiatives related to biodiversity
- Yes, we have made public commitments only
- Yes, we have endorsed initiatives only
- No, but we plan to do so within the next 2 years
- No, and we do not plan to do so within the next 2 years
| Select all that apply:- Commitment to Net Positive Gain
- Commitment to No Net Loss
- Adoption of the mitigation hierarchy approach
- Commitment to not explore or develop in legally designated protected areas
- Commitment to respect legally designated protected areas
- Commitment to avoidance of negative impacts on threatened and protected species
- Commitment to no conversion of High Conservation Value areas
- Commitment to secure Free, Prior and Informed Consent (FPIC) of Indigenous Peoples
- Commitment to no trade of CITES listed species
- Other, please specify
| Select all that apply:- CBD - Global Biodiversity Framework
- SDG
- CITES
- F4B - Finance for Biodiversity
- PBAF - Partnership for Biodiversity Accounting Financials [FS only]
- Other, please specify
|
Requested content
General
- A commitment is public when it is accessible to stakeholders (e.g., available on the organization’s website or on any other unrestricted site).
- Select a ‘Yes’ option if your organization has made any public commitment related to biodiversity.
- Do not select a ‘Yes’ option if your commitments are internal or private only.
Biodiversity-related public commitments (column 2)
- This column is presented only if either “Yes, we have made public commitments and publicly endorsed initiatives related to biodiversity” or “Yes, we have made public commitments only” is selected in column 1 (Indicate whether…).
Initiatives endorsed (column 3)
- This column is presented only if either “Yes, we have made public commitments and publicly endorsed initiatives related to biodiversity” or “Yes, we endorse initiatives only” is selected in column 1 (Indicate whether…).
- This list includes examples of leading global initiatives that promote adoption of corporate commitments related to biodiversity.
- Only select CBD – Global Biodiversity Framework if your organization has signed up to the commits and associated actions.
- Only select F4B if you are listed on the initiative's website as a pledge signatory.
- Only select PBAF if you are listed on the initiative’s website as a partner or supporter.
- If you select ‘Other, please specify’, provide a label for the initiative. Initiatives reported here should be voluntary and relate clearly to public biodiversity commitments.
Explanation of terms
- CITES species: species listed in any of the annexes of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
- Free, Prior and Informed Consent (FPIC): a community right to give or withhold its consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use, as recognized by several international instruments including the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), International Labour Organization’s Convention 169, and Convention on Biological Diversity (CBD).
- Internationally recognized areas: UNESCO Natural World Heritage Sites, UNESCO Man and the Biosphere Reserves, Key Biodiversity Areas, and wetlands designated under the Convention on Wetlands of International Importance (the Ramsar Convention) (IFC, 2012).
- Protected area: a protected area is a clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long-term conservation of nature with associated ecosystem services and cultural values (IUCN, 2008). For the purposes of this CDP disclosure, only legally designated areas (i.e., designated by governments) are expected to be disclosed.
- Net Positive Impact: The point at which project-related impacts on biodiversity and ecosystem services are outweighed by measures taken according to the mitigation hierarchy, so that a net gain results. May also be referred to as net gain (CSBI, 2015).
- No Net Loss: The point at which project-related impacts are balanced by measures taken through application of the mitigation hierarchy, so that no loss remains (CSBI, 2015).
- Threatened and protected habitats: All habitats considered threatened or otherwise protected by national or subnational laws and regulation, as well as international multilateral agreements, including protected areas, World Natural Heritage Sites, Natura 2000 sites and other similar areas.
Additional information
- CBD - Global Biodiversity Framework: the post-2020 global biodiversity framework builds on the Strategic Plan for Biodiversity 2011-2020 and sets out an ambitious plan to implement broad-based action to bring about a transformation in society’s relationship with biodiversity and to ensure that, by 2050, the shared vision of living in harmony with nature is fulfilled. The framework aims to galvanize urgent and transformative action by governments and all of society, including indigenous peoples and local communities, civil society and businesses, to achieve the outcomes it sets out in its vision, mission, goals and targets, and thereby contribute to the objectives of the Convention on Biological Diversity and other biodiversity related multilateral agreements, processes and instruments.
- Sustainable Development Goals (SDGs): the UN Sustainable Development Goals (SDGs) are a set of 17 goals for 2030 that look to balance the three dimensions of sustainable development: the economic, social and environmental (Sustainable Development Knowledge Platform, 2015).
- F4B Pledge - Finance for biodiversity pledge: signatories call on global leaders and commit to protecting and restoring biodiversity through their finance activities and investments.
- The Partnership for Biodiversity Accounting Financials (PBAF) is a partnership of financial institutions that work
together to explore the opportunities and challenges surrounding the assessment
and disclosure of the impact on biodiversity associated with their loans and
investments.
- CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten the survival of the species.
(C15.3) Does your organization assess the impact of its value chain on biodiversity?
Change from last year
New question
Rationale
An organization’s assessment of its impact on biodiversity facilitates and sets its approach to monitoring and addressing biodiversity issues. It identifies not only the activities and operations that could impact biodiversity, but also generates specific information on the species, habitats and ecosystem services affected. Your response to this question aligns with requirements of “Stage 1: Priorities” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies understand their impact and dependencies on biodiversity.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Does your organization assess the impact of its value chain on biodiversity? | Portfolio [FS only]* |
---|
Select from:- Yes, we assess impacts on biodiversity in both our upstream and downstream value chain
- Yes, we assess impacts on biodiversity in our upstream value chain only
- Yes, we assess impacts on biodiversity in our downstream value chain only
- No, but we plan to assess biodiversity-related impacts within the next two years
- No, and we do not plan to assess biodiversity-related impacts within the next two years
| Select all that apply:- Bank lending portfolio (Bank)
- Investing portfolio (Asset manager)
- Investing portfolio (Asset owner)
- Insurance underwriting portfolio (Insurance company)
|
Requested content
General
- When responding to this question organizations should consider how they assess whether their actions cause impacts on biodiversity.
- If impacts on biodiversity are assessed, then select the option which describes best where the assessment occurs in the value chain.
Portfolio [FS only]
- This column is presented only if "Yes" is selected in column 1 (Does your organization...).
- Select all portfolios for which you assess impacts on biodiversity.
Explanation of terms
- Biodiversity performance: the measurement of success of an organization’s interventions towards mitigation of their negative biodiversity impacts
Additional information
(C15.4) What actions has your organization taken in the reporting year to progress your biodiversity-related commitments?
Change from last year
New question
Rationale
This question enables organisations to demonstrate how they are achieving their vision and ambition for biodiversity through addressing the issues they have identified and committed to addressing. Your response to this question aligns with requirements of “Stage 2: Ambitions” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies develop and deliver biodiversity goals and objectives.
Connection to other frameworks
SDG
Goal 15: Life on Land
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Have you taken any actions in the reporting period to progress your biodiversity-related commitments?
|
Type of action taken to progress biodiversity- related commitments*
|
Select from:
- Yes, we are taking actions to progress our biodiversity-related commitments
- No, we are not taking any actions to progress our biodiversity-related commitments
- No, we are not taking any actions to progress our biodiversity-related commitments, but we plan to within the next two years
- No, and we do not plan to undertake any biodiversity-related actions
|
Select all that apply:
- Land/water protection
- Land/water management
- Species management
- Education & awareness
- Law & policy
- Livelihood, economic & other incentives
- Other, please specify
|
Requested content
General
- Select the options that best describe the actions your organization is taking to progress your biodiversity-related commitments.
Type of actions taken to progress biodiversity-related commitments (column 2)
- This column is presented only if “Yes, we are taking actions to progress biodiversity-related commitments” is selected in column 1 (Have you taken any action…).
- Select:
- Land/Water protection: for actions taken to identify, establish or expand parks and other legally protected areas. For example, expanding national parks or identifying and establishing a nature reserve.
- Land/Water Management: for actions directed at conserving or restoring sites, habitats and the wider environment e.g. controlling poacher activity within protected areas.
- Species management: for actions directed at managing or restoring species, focused on the species itself. E.g. setting harvest quotas or selective culling to manage population size within a protected area.
- Education and Awareness: for actions directed at people to improve understanding and skills, and influence behavior. E.g. engaging with park managers to exchange knowledge on species identification or raising environmental awareness through company social media.
- Law and Policy: for actions to develop, change, influence and help implement formal legislation, regulations, and voluntary standards. This could include the promotion of conventions on biodiversity.
- Livelihood, Economic and other incentives: for actions to use economic and other incentives to influence behavior such as the use of certification, or positive incentives.
Additional information
(C15.5) Does your organization use biodiversity indicators to monitor performance across its activities?
Change from last year
New question
Rationale
Robust indicators are critical for a corporate-level assessment of biodiversity impact, by allowing the aggregation of data from different activities and geographies. This question allows an organisation to demonstrate its use of indicators to track progress against its biodiversity goals and objectives and evaluate the success of its intervention/s. Your response to this question aligns with requirements of “Stage 3: Indicators” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies collect, share and analyse biodiversity data that encourages learning and improvement.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Please complete the following table:
Does your organization use indicators to monitor biodiversity performance? | Indicators used to monitor biodiversity performance |
---|
Select from:- Yes, we use indicators
- No, we do not use indicators, but plan to within the next two years
- No
| Select all that apply:- State and benefit indicators
- Pressure indicators
- Response indicators
- Other, please specify
|
Requested content
Indicators used to monitor biodiversity performance (column 2)
- Select:
- State and Benefit indicators: for state indicators focusing on improving habitats and species and benefit indicators that monitor ecosystem services goals.
- Pressure indicators: for pressure indicators that are effective for tracking objectives. For example, a focus of a company objective on loss of habitats could have the indicator ‘habitat cover change’ with data collected on trends in habitat cover loss.
- Response indicators: for response indicators that are informed by the company strategy. For example, to establish the coverage of protected areas.
Explanation of terms
- Biodiversity indicators: biodiversity indicators are communication tools that summarize data on complex environmental issues. They can be used to signal key issues to be addressed through policy or management interventions. Indicators, therefore, are important for monitoring the status and trends of biological diversity and, in turn, feeding back information on ways to continually improve the effectiveness of biodiversity policies and management programmes (GreenFacts, 2006).
Additional information
- For information on using indicators to assess biodiversity performance across company activities, see IUCN’s Guideline for planning and monitoring corporate biodiversity performance.
- For indicator(s) to be useful in a business application, they will need to take into consideration an understanding of the natural system, and an idea of how the system will respond to management (i.e., the indicator will provide a signal that can be attributed to a business).
- Biodiversity indicators help us measure and monitor a) pressures or threats, such as trends in land and water use, habitat loss or invasive species, b) the state of species and ecosystems, such as the health of species or integrity of ecosystems, c) the conservation response, such as the protection of important biodiversity areas, and/or d) benefits to people, such as the ecosystem services that freshwater provides. Fine scale indicators may be developed to inform local decisions on the ground, such as determining the degree to which restoration or management practices are working. Broad scale indicators that aggregate information may be developed to report on the benefits of national environmental policy and conservation investments (IUCN, 2021).
- Note: Companies do not need to develop new indicators. There are several existing indicators used by conservationists. Examples of good biodiversity indicators include those developed for monitoring Aichi targets and the SDGs. Existing indicators can be reviewed and appropriate ones selected.
(C15.6) Have you published information about your organization’s response to biodiversity-related issues for this reporting year in places other than in your CDP response? If so, please attach the publication(s).
Change from last year
New question
Rationale
Investors want to understand how biodiversity issues, as a non-financial metric, have been integrated into mainstream financial reports. They will look to see how it is considered as part of business performance, where this is communicated, and whether these communications are in line with best practice. Your response to this question aligns with requirements of “Stage 4: Implementation” in IUCN’s Guidelines for planning and monitoring corporate biodiversity performance, which recommends that companies share the data that they collect.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Report type
|
Content elements*
|
Attach the document and indicate where in the document the relevant biodiversity information is located*
|
Select from:
- In mainstream financial reports
- In other regulatory filings
- In voluntary sustainability report or other voluntary communications
- No publications
- Other, please specify
|
Select all that apply:- Content of biodiversity-related policies or commitments
- Governance
- Impacts on biodiversity
- Details on biodiversity indicators
- Influence on public policy and lobbying
- Risks and opportunities
- Biodiversity strategy
- Other, please specify
|
Text field [250 characters] Attach your document here |
[Add row]
Requested content
General
- This question asks about communication of your position on biodiversity outside of your CDP response. Even where the relevant information is web-based, you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfill this requirement.
Explanation of terms
- Biodiversity performance: The measurement of success of an organization's interventions towards the mitigation of their negative biodiversity impacts.
Additional information
C16 Signoff
Pathway diagram - questions
This diagram shows the general questions contained in module C16. To access question-level guidance, use the menu on the left to navigate to the question.
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 last year
No change
Response options
This is an open text question with a limit of 9,999 characters.
Please note that when copying from another document into the ORS, formatting is not retained.
Signoff
(C16.1) Provide details for the person that has signed off (approved) your CDP climate change response.
Change from last year
No change (2021 C15.1)
Rationale
CDP asks companies to identify the job title and corresponding job category of the person signing off (approving) the CDP response. This information signals to investors where in the corporate structure direct responsibility is being taken for the response and the information contained therein.
Response options
Please complete the following table:
Job title
|
Corresponding job category
|
Text field [maximum 200 characters]
|
Select from:
- Board chair
- Board/Executive board
- Director on board
- Chief Executive Officer (CEO)
- Chief Financial Officer (CFO)
- Chief Operating Officer (COO)
- Chief Procurement Officer (CPO)
- Chief Risk Officer (CRO)
- Chief Sustainability Officer (CSO)
- Other C-Suite Officer
- President
- Business unit manager
- Energy manager
- Environmental, health and safety manager
- Environment/Sustainability manager
- Facilities manager
- Process operation manager
- Procurement manager
- Public affairs manager
- Risk manager
- Other, please specify
|
Requested content
General
Job title (column 1)
- Enter the title of the person who has signed off on this CDP response.
- 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".
SC Supply chain
Module Overview
The SC module is for companies responding to the CDP climate change questionnaire at the request of one or more customers, who are members of CDP’s supply chain program. This module has been developed following consultation with both suppliers and the member companies that are their customers. It provides further context to buyers regarding the procedures adopted and/or actions taken by their suppliers.
Organizations benefit from disclosing by increasing transparency and engaging with their buyers to further develop their sustainability. The information disclosed here builds on information that CDP supply chain members are particularly interested in elsewhere in the climate change questionnaire.
Emissions located in the supply chain are around four times as high as those from direct operations. To meet the goals of the Paris Agreement, action at every level of the supply chain is needed.
Please note that your response to the SC module is not scored.
Key changes
- Removed questions: SC0.2 and SC0.2a ISIN codes and/or other unique identifiers are now requested in C0.8.
- Modified questions:
- SC1.1 two columns added asking for the “Market value or quantity of goods/services supplied to the requesting member” and “Unit for market value or quantity of goods/services supplied”.
- SC2.2a removal of column asking for identification of opportunity as part of CDP supply chain Action Exchange.
Click here for a list of all changes made this year.
Pathway diagram - questions
This diagram shows the supply chain questions contained in module SC. To access question-level guidance, use the menu on the left to navigate to the question.
Supply chain introduction
(SC0.0) If you would like to do so, please provide a separate introduction to this module.
Change from last year
No change
Rationale
This information gives your organization the opportunity to detail information that may be more relevant to the requesting customer(s).
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
- Enter your answer in the text box provided in the ORS.
(SC0.1) What is your company’s annual revenue for the stated reporting period?
Change from last year
No change
Rationale
Annual revenue for the reporting period provides contextual information for requesting Supply Chain members.
Response options
Please complete the following table:
Annual revenue
|
Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]
|
Explanations of Terms
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)
Requested content
General
- Enter a numerical value for the revenue, this should be consistent with the reporting period disclosed in C0.2.
- This figure should be in the same currency that you selected for all financial information disclosed in question C0.4.
- Note: This figure must be provided in single units not in units of thousands or millions. For example, if you selected USD($) in C0.4, make sure to provide your revenue in single USD($) units, not in thousands or millions USD($).
- 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.
Allocating your emissions to your customers
(SC1.1) Allocate your emissions to your customers listed below according to the goods or services you have sold them in this reporting period.
Change from last year
Modified question
Rationale
This information provides clarity to Supply Chain members on the emissions associated with goods and products sold to them over the reporting period. This supports transparency in emissions allocations, verification of these emissions allocations and methodologies used.
Connection to other frameworks
SDG
Goal 12: Responsible consumption and production
Response options
Please note that this table (for SC1.1) is designed so that
only the customer that you select in column 1 (“Requesting member”) will be
able to see the data relevant to them. If you enter an answer without selecting
a requesting member, your answer will not be viewable at all.
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.
Requesting member
|
Scope of emissions
|
Allocation level
|
Allocation level detail
|
Emissions in metric tons of CO2e
|
Uncertainty (± %)
|
Select from:
[Drop-down menu of requesting members]
|
Select from:
|
Select from:
- Company wide
- Business unit (subsidiary company)
- Facility
- Commodity
|
Text field [maximum 500 characters]
|
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 4 decimal places]
|
Percentage field [enter a percentage from 0-999,999 using a maximum of 4 decimal places]
|
Major sources of emissions | Verified*
| Allocation method | Market value or quantity of goods/services supplied to the requesting member | Unit for market value or quantity of goods/services supplied | Please explain how you have identified the GHG source, including major limitations to this process and assumptions made |
---|
Text field [maximum 2,500 characters]
| Select from:
| Select from drop-down options below
| Numerical field [enter a number from 0-999,999,999,999 using a maximum of 4 decimal places] | Select from drop-down options below | Text field [maximum 5,000 characters]
|
[Add Row]
*Has the allocation of emissions to your customers been externally verified?
Description of allocation method drop-down options (column 9)
Select one of the following options:
- Allocation not necessary due to type of primary data available
- Allocation not necessary as secondary data used
- Allocation based on mass of products purchased
- Allocation based on the volume of products purchased
- Allocation based on the energy content of products purchased
- Allocation based on the chemical content of products purchased
|
- Allocation based on the number of units purchased
- Allocation based on area
- Allocation based on another physical factor
- Allocation based on the market value of products purchased
- Other, please specify
|
Unit for market value or quantity of goods/services supplied (column 11)
Select one of the following options:
- Currency
- Kilograms
- Pounds (lb)
- Metric tons
- Gallons
- Liters
- Cubic feet
- Cubic meters
| - Square meters
- Hectares
- Megawatt hours (MWh)
- Full time equivalents (FTE)
- Hours
- Kilometers
- Passenger kilometers
- Other, please specify
|
Requested content
General
- This table is designed so that only the customer that you select in column 1 ("Requesting member") will be able to see the data relevant to them.
- If you enter an answer without selecting a requesting member, your answer will not be viewable at all.
- Note: Disclosers must check that the Requesting members presented in this table are correct for their organization for the reporting period.
Scope of emissions (column 2)
- Use this column to specify which scope of your emissions you are allocating to your customers. Note that emissions that you allocate will be your customers’ Scope 3 emissions, however it is up to your customer to allocate your organization’s emissions into a specific Scope 3 category. You should only be allocating the emissions you stated in C6.1, C6.3 and C6.5. You can allocate either direct emissions from your company boundary (your Scope 1) or indirect emissions (your Scope 2 and 3). An explanation of defining Scopes 1, 2 and 3 can be found in the GHG Protocol Corporate Standard.
- Note that you should be specific whether you are allocating your Scope 2 location-based, or your Scope 2 market-based figure in the methodology column. Companies are only required to allocate one Scope 2 figure.
Allocation level (column 3)
- Specify the level i.e. company-wide, business unit (subsidiary company), facility or commodity level at which the allocation of emissions applies.
Allocation level detail (column 4)
- Responding to this column is only required if you have selected ‘Business Unit (subsidiary company)’ or ‘Facility’ in column 3.
- Using no more than 500 characters, provide details on the business unit (subsidiary company) or facility for which you are allocating emissions to your customers.
Emissions in metric tons of CO2e (column 5)
- Specify the metric tons of CO2e you are allocating to your customer for the scope given in column 2.
Uncertainty (± %) (column 6)
- Provide the degree of confidence that you have in the figures expressed as a percentage, e.g. you estimate that they are accurate to +/- 15%.
Major sources of emissions (column 7)
- Describe significant sources of emissions for which you have provided a figure. The following list of examples is non-exhaustive:
- Scope 1 emissions may be equipment in which fuel is burnt to provide heat (e.g. ovens, driers or kilns); emissions from company owned or controlled vehicles; emissions from production processes e.g. in cement manufacture;
- Scope 2 emissions may include electricity used to power production lines, lighting in offices, electricity for data centers, etc.; and
- Scope 3 covers a broader range of possible sources. For example, the “Scope 3, Business travel” category would include air travel for company employees; the “Scope 3, Capital goods” category would include the manufacture of steel to make heavy machinery or infrastructure; and the “Scope 3, Waste generated in operations category” would include emissions from out-sourced treatment of organic waste. As you will be reporting your Scope 3 emissions as a single figure, you may wish to use this column to identify which category of emissions are included in this figure.
Verified (column 8)
- Select ‘Yes’ if the allocation of emissions to your customers has been externally verified. “Externally verified” means it has been verified by a third party organization, independent of the reporting company.
Allocation method (column 9)
- To allocate emissions to your customers, your company might have used a series of allocation methods. Chapter 8 (page 86) of the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard describes some of these methods. There is also other literature available on Life-Cycle Assessment discussing the details of different allocation methods. For the purpose of CDP reporting, a classification was established based on the Corporate Value Chain (Scope 3) Standard. You can select from the following values:
- Allocation not necessary due to type of primary data available
- Allocation not necessary as secondary data used
- Allocation based on mass of products purchased
- Allocation based on the volume of products purchased
- Allocation based on the energy content of products purchased
- Allocation based on the chemical content of products purchased
- Allocation based on the number of units purchased
- Allocation based on area
- Allocation based on another physical factor
- Allocation based on the market value of products purchased
- Other, please specify
- It can be difficult to estimate what proportion of your emissions are attributable to your respective customers’ purchases. The Corporate Value Chain (Scope 3) Accounting and Reporting Standard by the World Resources Institute and the World Business Council for Sustainable Development (the partnership that created the GHG Protocol Corporate Standard) helps companies to meet this challenge.
- The Corporate Value Chain (Scope 3) Standard is written for companies trying to calculate their Scope 3 emissions. However, the procedures can also be used by suppliers of those companies to assess how much of their (the suppliers) GHG emissions are associated with their customers’ purchases. As such, the standard can be used by both suppliers or by customers.
- The Standard contains information that will help you to apportion your emissions to your respective customers’ purchases (see Chapter 8). If you only had one customer, this would be an easy process and all of your Scope 1, 2 and 3 emissions would feed into your customer’s Scope 3 calculations. However, in practice, most companies have more than one customer, therefore attributing emissions to the purchases of each of them is more complicated. We use the term “allocate”/”allocation” to refer to this attribution. The GHG Protocol standard defines Allocation as “the process of partitioning GHG emissions from a single facility or other system (e.g. activity, vehicle, production line, business unit, etc.) among its various outputs."
- Allocation is necessary when:
- A single facility or other system produces multiple outputs, and
- Emissions are only measured for the entire facility or system as a whole”
- The Standard outlines the process of determining how to divide (“partition”) emissions between different goods and services.
- However, if you know that a specific amount of metric tons of coal or kilowatt hours of electricity have been used in producing a particular customer’s goods, or in providing services to a particular customer, then all of the emissions from burning that coal, or associated with using that electricity, can be linked to that customer’s purchases. Therefore, you avoid “allocation” in the technical sense of having to partition emissions. We would ask that you use that data to complete the table in SC1.1.
- The situation described would require a procedure that would enable you to know how much coal had been combusted to make a particular customer’s products or electrical sub-meters that were read when the work for a customer started and when it ended. There are other ways to avoid this partitioning process and these are covered in the section 8.2 of the Standard “Avoid Or Minimize Allocation If Possible”.
- Sometimes it might not be possible or practical to do measurements at that level of detail. You may know how much electricity a particular production line used in the last quarter or how much gas was used last year to heat your company’s offices, but during those time periods work was done for more than one customer. Consequently, the emissions associated with that electricity and gas have to be allocated between more than one customer. Chapter 8 explains the different approaches that can be taken to do this.
- Remember that although the document is developed from the perspective of a customer calculating their Scope 3 emissions and determining what to do with the data from their suppliers, the techniques described can also be used by the supplier in deciding how to allocate their emissions to customers (e.g. the situation that you are in). It is also worth noting that the new standard is called the Scope 3 Standard because it is written from the perspective of your customer, investigating emissions outside of its organizational boundary. However, it contains advice to help the supplier to allocate its Scope 1, 2 and 3 emissions – not just its Scope 3 emissions.
- When allocating emissions, use emissions data that is as specific as possible to the products that your customer has purchased from you. This is particularly important in the case of companies that are diversified and that produce a wide range of very different products.
- Table SC1 shows the order of preference for different types of data, it is adapted from table 7.7 of the GHG Protocol Scope 3 Standard.
Table SC1: Levels of Data
Data Type
|
Description
|
1. Activity-, process- or production line level data
|
GHG emissions for the activities, processes, or production lines that produce the product of interest
|
2. Facility Level Data
|
GHG emissions for the facilities or operations that produce the product of interest
|
3. Business Unit Level Data
|
GHG emissions for the business units that produce the product of interest
|
4. Corporate Level Data
|
GHG emissions for the entire corporation
|
- Table SC2 is based on table 8.1 of theGHG Protocol Scope 3 Standard. It shows possible options for allocating the emissions data. To learn more about considerations in deciding which equation to use, refer to Chapter 8 of the Standard.
Table SC2: Options for allocating emissions to customer
Market value or quantity of goods/services supplied to the requesting member (column 10)
- Specify the total market value or quantity of the goods or services provided to the requesting member in the reporting period.
- If you provide multiple goods/services that do not share a common unit, please provide the market value of the goods and/or services supplied.
Unit for market value or quantity of goods/services supplied (column 11)
- Specify the unit for the figure given in column 10.
- If you have provided the total market value in column 10, select “Currency”. The figure provided should be in the same currency that you selected in question C0.4 for all financial information disclosed throughout your response.
Please explain how you have identified the GHG source, including major limitations to this process and assumptions made (column 12)
- Companies often have many different sources of emissions and this question seeks to understand how you have selected major emission sources.
- The GHG Protocol Corporate Standard states companies should report on all emissions within their chosen organizational boundary. This defines the sources of emissions on which you are going to report. There are three options: sources in which the company has an equity share; sources over which the company has financial control; sources over which the company has operational control. If you exclude any sources within the boundary, you are asked to disclose and justify those exclusions.
- However, it may be that you have been limited by your knowledge of potential emission sources or made assumptions about which sources were the largest. Or alternatively, that certain sources do not play a role for the specific products your customers are purchasing from you. Please explain the thinking behind your selection including the difficulties that you encountered.
-
N.B. Please note that your answers to the following questions SC1.2 and SC1.3 can be viewed by any requesting members, not only those selected in column 1 of the table at SC1.1.
(SC1.2) Where published information has been used in completing SC1.1, please provide a reference(s).
Change from last year
No change
Rationale
This question provides transparency regarding how data was acquired and used to derive emissions values allocated to Supply Chain members.
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
- To allocate emissions to your customer you may have used your own (primary) data in answering question SC1.1. Alternatively, you may have relied on publications that give industry-average (secondary) data for particular materials or processes or you may have used a mixture of both. Please make the origin of the data clear by providing references where published information has been used, as well as flagging where they have been used.
- Your answer to this question will be visible by all parties with access to your response so you may only want to provide generic information.
(SC1.3) What are the challenges in allocating emissions to different customers, and what would help you to overcome these challenges?
Change from last year
No change
Rationale
The purpose of this question is to provide your customers with insights about the challenges in assigning specific emissions to them from your products or services. In certain cases, it might be that specific solutions can be found between you and your customer to overcome those challenges.
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.
Allocation challenges
|
Please explain what would help you overcome these challenges
|
Select from:
- Diversity of product lines makes accurately accounting for each product/product line cost ineffective
- Customer base is too large and diverse to accurately track emissions to the customer level
- Managing the different emission factors of diverse and numerous geographies makes calculating total footprint difficult
- Doing so would require we disclose business sensitive/proprietary information
- We face no challenges
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add Row]
Requested content
General
- Your answer to this question will be visible by all parties with access to your response.
(SC1.4) Do you plan to develop your capabilities to allocate emissions to your customers in the future?
Change from last year
No change
Rationale
This question aims to provide your customers with insights in to how you aim to develop your capabilities to allocate emissions to them, and thus allow them to gain a greater insight in to the emissions and/or energy intensity of the goods/services that you provide to them.
Response options
Select one of the following options:
Requested content
General
- Select ‘Yes’ if you plan to develop your capabilities to allocate emissions to your customers in the future.
(SC1.4a) Describe how you plan to develop your capabilities.
Question dependencies
This question only appears if you select “Yes” in response to SC1.4.
Change from last year
No change
Rationale
This question provides your organization with the opportunity to describe how it aims to develop its capabilities to allocate emissions to its customers for goods/services provided.
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 using examples how your organization plans to develop its capabilities to allocate emissions to its customers in the future.
(SC1.4b)
Explain why you do not plan to develop capabilities to allocate emissions to
your customers.
Question dependencies
This question only appears if you select “No” in response to SC1.4.
Change from last year
No change
Rationale
This question helps provides Supply Chain members with more transparency into why your organization does not plan to develop capabilities to allocate emissions for goods/services provided.
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 can describe:
- Why you do not plan to develop capabilities to allocate emissions to your customers;
- The barriers that your organization faces that prevent it from allocating emissions to your customers; and;
- Potential circumstances that might encourage your organization to develop capabilities to allocate emissions to your customers.
Collaborative opportunities
(SC2.1) Please
propose any mutually beneficial climate-related projects you could collaborate on
with specific CDP Supply Chain members.
Change from last year
No change
Rationale
Through this question your organization can propose ways it can work together with its Supply Chain members to reduce either your or their emissions. Through collaboration, mutually beneficial changes in the way you and your Supply Chain members work could be achieved.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Response options
Please
note that this table (for SC2.1) is designed so that only the customer that you
select in column 1 (“Requesting member”) will be able to see the
data relevant to them. If you enter an answer without selecting a requesting
member, your answer will not be viewable at all.
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
Requesting member
|
Group type of project
|
Type of project
|
Emissions targeted
|
Estimated timeframe for carbon reductions to be realized
|
Estimated lifetime CO2e savings
|
Estimated payback
|
Details of proposal
|
Select from:
[Drop-down menu of requesting members]
|
Select from:
- Reduce Logistics Emissions
- Change to provision of goods and services
- New product or service
- Relationship sustainability assessment
- Change to supplier operations
- Other, please specify
|
Select from drop-down options below
|
Select from:
- Actions to reduce customers’ operational emissions (customer scope 1 & 2)
- Actions that would reduce our own operational emissions (our scope 1 & 2)
- Actions that would reduce our own supply chain emissions (our own scope 3)
- Actions that would reduce both our own and our customers’ emissions
- Other, please specify
|
Select from:
- 0-1 year
- 1-3 years
- 3-5 years
- Other, please specify
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places]
|
Select from:
- Cost/saving neutral
- 0-1 year
- 1-3 years
- 3-5 years
- Other, please specify
|
Text field [maximum 5,000 characters]
|
[Add Row]
Type of project drop-down options (column 3)
Select one of the following options:
Reduce Logistics Emissions
- Consolidated logistics
- Changing transportation mode (switch from aviation to rail)
- Route optimization
- Changed timing of logistics
- Other, please specify
Change to provision of goods and services
- Reduced packaging weight
- More online/virtual provision of services
- Other, please specify
New product or service
- New product or service that reduces customers operational emissions
- New product or service that reduces customers products/services operational emissions
- New product or service that has a lower upstream emissions footprint
- Other, please specify
|
Relationship sustainability assessment
- Assessing products or services life-cycle footprint to identify efficiencies
- Sustainability audit of existing relationship
- Aligning goals to feed into customers targets and ambitions
- Other, please specify
Change to supplier operations
- Implementation of energy reduction projects
- Increased levels of purchased renewable energy
- Undertaking life-cycle assessment
- Other, please specify
Other
|
Requested content
General
- Provide information on any projects you would like to present to your customer. Please do not include details of existing commercial offerings of which your customer will already be aware of.
- If you enter an answer without selecting a requesting member, your answer will not be viewable at all.
- If you have multiple proposals or projects, please add more rows using the ‘Add Row’ function.
- Note: Disclosers must check that the Requesting members presented in this table are correct for their organization for the reporting period.
Requesting member (column 1)
- Select the relevant “Requesting member” that you have identified as a potential collaborator.
- Note that only the customer you select in this column will be able to see the data relevant to them.
- If you would like to collaborate with more than one customer on the same proposal or project, you should add one row per customer
Group type of project (column 2)
- Select from the drop-down menu one of the options below to provide details of the grouping of the type of project you are proposing. This will allow CDP Supply Chain members to better categorize and understand the group of projects, and streamline their analysis.
- If none of the options are suitable, select ‘Other category, please specify’, then select ‘Other, please specify’ for “Type of project” in column 3. You’ll be able to provide a label for your category and type of proposal or project in the column 8 (“Details of proposal”).
Type of project (column 3)
- Select from the drop-down menu one of the options below to provide details and the type of project you are proposing. This will allow CDP Supply Chain members to better understand the types of opportunities available, and streamline their analysis.
- If none of the options are suitable, select ‘Other category, please specify’. You’ll be able to provide details on the type of proposal or project in the column 8 (“Details of proposal”).
Emissions targeted (column 4)
- Select from the drop down menu one of the options below to provide details as to where emissions reduction impacts are expected as a result of your proposal or project.
- For example, if you are looking to reduce emissions from the transportation of goods or services, you might be proposing to undertake a combination of the following:
- Lightweight products or their packaging
- Use low-carbon fuels in vehicles
- Service providers may replace in-person meetings with video-conferencing
- Switch to lower-carbon forms of transport for staff to visit clients.
- You can discuss your proposal or project in column 8 (“Details of proposal”).
Estimated timeframe for carbon reductions to be realized (column 5)
- Select from the dropdown menu the most appropriate timeline within which you expect carbon reductions to be realized.
Estimated lifetime CO2e savings (column 6)
- Specify the amount of tCO2e reductions you are associating with your customer.
- If you are still in the early stages of proposing this opportunity, and you do not know the estimated CO2e savings, please leave this column blank.
Estimated payback (column 7)
- Select from the drop-down menu the option that encompasses your estimated payback period for your proposal or project.
Details of proposal (column 8)
- Provide details on the nature of your project, including:
- Potential financial impacts, such as the costs versus savings associated with the proposal or project;
- The reason for the project, e.g. issue to be solved/improved;
- Why this is the best strategy;
- Regions, facilities and/or product lines considered, and;
- All participants involved.
(SC2.2) Have requests
or initiatives by CDP Supply Chain members prompted your organization to undertake
organizational-level emissions reduction initiatives?
Change from last year
No change
Rationale
This question examines whether CDP Supply Chain members’ engagement has led to your organization undertaking emissions reduction activities.
Response options
Select one of the following options:
Requested content
General
- Select "Yes" if requests or initiatives by CDP Supply Chain members have prompted your organization to take organizational-level emissions reduction initiatives.
- This question is related to emissions reduction initiatives that you might have completed in your organization and identified in your response in questions C4.3 and C4.3a to C4.3c. While those questions refer to emissions reduction activities that were initiated in your reporting year, you may wish to provide details on existing initiatives also. To assist you with this, please provide an ‘Initiative ID’ for each of the initiatives reported in SC2.2a. For example, you may have implemented a new emissions reduction activity in 2021. In 2022 you would select a 2022 ID tag for this initiative and report it in the comment column of C4.3b.
- Alternatively, you may have reported an initiative in 2018 that was in its early stages of development. While you had not implemented the initiative at the time, you had decided to report to show your customer that you were considering it. You can use the same ID that you gave to that initiative last year to show whether you decided to implement it or not.
- In this section, members are requesting to know which, if any, of those initiatives that are associated with emissions reductions they have caused (in part or wholly) by engaging with you as their supplier.
(SC2.2a) Specify the
requesting member(s) that have driven organizational-level emissions reduction
initiatives, and provide information on the initiatives.
Question dependencies
This question only appears if you select “Yes” in response to SC2.2.
Change from last year
Modified question
Rationale
This question investigates how CDP Supply Chain members’ engagement has led to your organization undertaking emissions reduction activities, and associated emissions reductions.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Response options
Please note that this table (for SC2.2a) is designed so
that only the customers that you select in column 1 (“Requesting member”) will
be able to see the data relevant to them. If you enter an answer without
selecting a requesting member, your answer will not be viewable at all.
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.
Requesting member
|
Initiative ID
|
Group type of project
|
Type of project
|
Select from:
[Drop-down menu of requesting members]
|
Select from:
[Drop-down menu of ID’s]
|
Select from:
- Reduce Logistics Emissions
- Change to provision of goods and services
- New product or service
- Relationship sustainability assessment
- Change to supplier
operations
- Other, please specify
|
Select from drop-down options below
|
Description of the reduction initiative | Emissions reduction for the reporting year in metric tons of CO2e | Would you be happy for CDP supply chain members to highlight this work in their external communication? |
---|
Text field [maximum 2,500 characters]
| Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places]
| Select from:
|
[Add Row]
Type of project drop-down options (column 4)
Select from:
Reduce Logistics Emissions
- Consolidated logistics
- Changing transportation mode (switch from aviation to rail)
- Route optimization
- Changed timing of logistics
- Other, please specify
Change to provision of goods and services
- Reduced packaging weight
- More online/virtual provision of services
- Other, please specify
New product or service
- New product or service that reduces customers operational emissions
- New product or service that reduces customers products/services operational emissions
- New product or service that has a lower upstream emissions footprint
- Other, please specify
|
Relationship sustainability assessment
- Assessing products or services life-cycle footprint to identify efficiencies
- Sustainability audit of existing relationship
- Aligning goals to feed into customers targets and ambitions
- Other, please specify
Change to supplier operations
- Implementation of energy reduction projects
- Increased levels of purchased renewable energy
- Undertaking life-cycle assessment
- Other, please specify
Other
|
Requested content
General
- Provide information on projects/initiatives a CDP Supply Chain requesting member has indicated that prompted your organization to implement organizational-level emissions reduction initiatives to reduce emissions from your operations or your supply chain.
- If you have implemented multiple organizational-level emissions reduction initiatives presented by requesting members, please add one row per project using the ‘Add Row’ function.
- This table is designed so that only the customer that you select in column 1 ("Requesting member") will be able to see the data relevant to them.
- If you enter an answer without selecting a requesting member, your answer will not be viewable at all.
- Additional relevant data can be attached to this question and will be viewable by all requesting members.
- If you choose to make your response public, all attachments will be placed on our public website.
- Note: Disclosers must check that the Requesting members presented in this table are correct for their organization for the reporting period.
Requesting member (column 1)
- Select the relevant “Requesting member” that has driven your organization to take organizational-level emissions reduction initiatives to reduce emissions from your operations or your supply chain.
- If more than one member influenced the same project, you should add one row per customer.
Initiative ID (column 2)
- Select an ID for each initiative for each member. If an initiative can be attributed to multiple members, you may select the same ID multiple times. If you wish to show progress against a previous year initiative, please select the ID that you used in that year.
Group type of project (column 3)
- Select from the drop-down menu one of the options below to provide details of the grouping of the type of project you are proposing. This will allow CDP Supply Chain members to better categorize and understand the group of projects, and streamline their analysis.
- If none of the options are suitable, select ‘Other category, please specify’, then select ‘Other, please specify’ for “Type of project” in column 3. You’ll be able to provide a label for your category and type of proposal or project in the column 5 (“Description of the reduction initiative”).
Type of project (column 4)
- Select from the drop-down menu one of the options below to provide details and the type of project you are proposing. This will allow CDP Supply Chain members to better understand the types of opportunities available, and streamline their analysis.
- If none of the options are suitable, select ‘Other category, please specify’. You’ll be able to provide details on the type of proposal or project in the column 5 (“Description of the reduction initiative”).
Description of the reduction initiative (column 5)
- Describe one initiative per member per line in this section and how they relate to the member. If you reported the same initiative in C4.3b, you may also wish to refer your customer to where they can find more details.
- The responses you provide here should be consistent with the responses provided in C4.3b. If it is not, please state why not in column 5, e.g. “emissions reduction initiative too small to make it into our key emissions reduction initiatives section”.
- Provide details on the nature of the project, including:
- The reason for the project, i.e. issue solved/improved;
- Why this is the best strategy;
- Regions, facilities and/or product lines affected, and;
- All participants involved.
Emissions reduction for the reporting year in metric tons of CO2e (column 6)
- Specify the emissions reduction, in tCO2e, you are associating with your customer in column 2.
Would you be happy for CDP supply chain members to highlight this work in their external communication? (column 7)
- Please note that this selection refers to each individual initiative per member.
Action Exchange
Questions SC3.1 - SC3.2a on the CDP Action Exchange have been removed for the 2022 disclosure cycle.
Product (goods and services) level data
(SC4.1) Are you providing product level data for your organization’s goods or services?
Change from last year
No change
Rationale
CDP supply chain members are interested in the granularity of data that their suppliers can provide regarding the emissions intensities, lifecycle emissions and emissions reduction initiatives. This level of data can allow all parties involved to observe product/service resource intensities, track changes in this supply chain specific data, and progress being made via initiatives.
Response options
Select one of the following options:
- Yes, I will provide data
- No, I am not providing data
Requested content
General
- If using the Export/Import functionality, it is essential that you check that data has entered correctly into each field in a question.
(SC4.1a) Give the overall percentage of total emissions,
for all Scopes, that are covered by these products.
Question dependencies
This question only appears if you select “Yes, I will provide data” in response to SC4.1.
Change from last year
No change
Rationale
This question aims to assess the GHG relevance of the products you are disclosing information on.
Response options
Percentage field [enter a percentage from 0-100 using a maximum of 2 decimal places]
Requested content
General
- You may find out that a minority of products are responsible for a majority of your emissions (Pareto’s principle or 80-20 rule). If that is the case, you might not need to disclose product level data for all your products but rather concentrate on the most relevant for you and your customers.
- In responding to this question, you should also consider the customers that are requesting information from you and the type of products they buy from you.
- In all cases, it is important for your customers to know the relevance of the products they are purchasing from you in terms of your overall GHG emissions. You can report this information by summing your Scope 1, 2 and 3 emissions.
Scope 1 emissions
- Direct greenhouse gas (GHG) emissions occur from sources that are owned or controlled by the company. Direct GHG emissions are principally the result of the following activities undertaken by the company:
- Generation of electricity, heat or steam, resulting from the combustion of fuels in stationary sources such as boilers or furnaces;
- Physical or chemical processes, e.g. clinker production within a kiln during cement production activities.
- The transportation of materials, due to the combustion of fuels in company owned or controlled vehicles.
- Fugitive emissions, which arise from the intentional or unintentional release of GHG emissions, e.g. equipment leaks from joints or seals; HFC emissions from the use of refrigeration and air conditioning equipment.
- Direct CO2 emissions from the combustion of biomass are not included Scope 1 reporting, but can be reported separately.
- Scope 1 emissions only consider GHG emissions covered by the Kyoto Protocol (CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3). GHGs not covered by the Kyoto Protocol are reported separately from Scope emissions.
Scope 2 emissions
- Scope 2 accounts for GHG emissions from the generation of purchased electricity, heat, steam or cooling consumed by the company.
- 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.
- Indirect emissions classified under Scope 2 include transmission and distribution (T&D) losses, and are reported by the company that owns or controls the T&D network.
- In addition to accounting for GHG emissions associated with electricity, heat, steam or cooling brought in to the organizational boundary, accounting for Scope 2 emissions allows companies to assess the risks and opportunities associated with changing electricity and GHG emissions costs.
Scope 3 emissions
- This is an optional reporting category which allows for the treatment of all other indirect emissions (e.g. those occurring from the transportation of purchased fuels).
- These emissions occur as a consequence of activities of the company, but result from sources not owned or controlled by the company itself.
- If outside the organizational boundaries the following are Scope 3 indirect emissions:
- Extraction and production of purchased materials and fuels;
- Transport related activities;
- Electricity-related activities not included in Scope 2;
- Leased assets, franchises and outsourced activities (dependent on the consolidation approach taken);
- Use of sold products and services, and;
- Waste disposal.
(SC4.2a) Complete the following table for the
goods/services for which you want to provide data.
Question dependencies
This question only appears if you select “Yes, I will provide data” in response to SC4.1.
Change from last year
No change
Rationale
CDP supply chain members are interested in the emissions intensities associated with the goods/services they are purchasing. This question allows your organization to provide these details, while outlining the methodologies used by your organization to estimate these for your goods/services.
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.
Name of good/ service
|
Description of good/ service
|
Type of product
|
SKU (Stock Keeping Unit)
|
Text field [maximum 2,400 characters]
|
Text field [maximum 2,400 characters]
|
Select from:
|
Text field [maximum 50 characters]
|
Total emissions in kg CO2e per unit | ± % change from previous figure supplied | Date of previous figure supplied | Explanation of change | Methods used to estimate lifecycle emissions |
---|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places]
| Percentage field [enter a percentage from -1000 - 1000 using a maximum of 10 decimal places]
| Use the calendar button or enter dates manually in the format DD/MM/YYYY.
| Text field [maximum 2,400 characters]
| Select from:
- Bilan Carbone
- French Product Environmental Footprint
- Greenhouse Gas Accounting Sector Guidance for Pharmaceutical Products and Medical Devices
- GHG Protocol Product Accounting & Reporting Standard
- ISO 14040 & 14044
- ISO 14025
- EU Product Environmental Footprint (EUPEF)
- PAS 2050
- WBCSD Life Cycle Metrics for Chemical Products
- Other, please specify
|
[Add Row]
Requested content
General
- If using the Export/Import functionality, it is essential that you check that data has entered correctly into each field in a question.
Name of good/service (column 1)
- Please provide the name of the product you will be providing data for.
Description of good/service (column 2)
- Please describe the good or service for which you are supplying product lifecycle GHG data. This may be a good such as a “180-gram tube of toothpaste in a cardboard package” or a service such as the “design of a color A5 advertising flyer.” This will be referred to as “a unit” in column 4 of SC4.2b.
- Products from different locations may have markedly different footprints due to local circumstances, such as the use of different types of fuel or different generation methods used to create electricity for the grid. As long as it is not prohibited under the product footprinting methodology that you use, then you can differentiate between products made at different locations. You should however:
- Explain what you have done;
- Give the locations that supply products to your requesting members, if applicable; and
- Not selectively present or cherry-pick the locations that give the lowest product footprints, by providing either the product footprints for a range of locations or the average footprint figure across all locations.
Type of product (column 3)
- Please use this drop-down menu to clearly identify the type of product or good/service for which you are providing data.
- Intermediate products are inputs to the production of other goods or services that require further processing, transformation, or inclusion in another product before use by the end consumer. Intermediate products are not consumed by the end user in their current form.
- Final products are goods and services that are consumed by the end user in their current form, without further processing, transformation, or inclusion in another product, though they may be sold to a retailer first before being sold on to the end user. The end user may be an individual or a business.
SKU (Stock Keeping Unit) (column 4)
- Please provide the Stock Keeping Unit (SKU) of the product you are providing data for. This refers to the quantity of products bought by the customer for a particular price/amount of emissions. If you don’t have an SKU for the product/service you are providing data, please give the quantity of the named good/service provided in column 1.
Total emissions in kg CO2e per unit (column 5)
- Please give the emissions for the final/intermediate product in kg CO2e/unit of good or service.
± % change from previous figure supplied (column 6)
- If you have previously reported a figure to CDP and are supplying an updated figure, please give the percentage difference between the two figures.
Date of previous figure supplied (column 7)
- Give the date of the previous figure in day(DD)/month(MM)/year(YY) format.
- If you are using the Export/Import functionality, please check that the imported date is correct.
Explanation of change (column 8)
- Explain why the figure has changed.
Methods used to estimate lifecycle emissions (column 9)
(SC4.2b) Complete the
following table with data for lifecycle stages of your goods and/or services.
Question dependencies
This question only appears if you select “Yes, I will provide data” in response to SC4.1.
Change from last year
No change
Rationale
CDP supply chain members are interested in the lifecycle emissions of the goods/services they are purchasing. This question allows your organization to provide these details, while outlining the lifecycle stages considered by your organization for these goods/services.
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.
Name of good/ service
|
Please select the scope
|
Please select the lifecycle stage
|
Emissions at the lifecycle stage in kg CO2e per unit
|
Is this stage under your ownership or control?
|
Text field [maximum 2,400 characters]
|
Select from:
- Scope 1
- Scope 2
- Scope 3
- Scope 1 & 2
- Scope 1, 2 & 3
- Other, please specify
|
Select from:
- Assembly
- Consumer use
- Cradle to gate
- Cradle to grave
- Distribution
- End of life/final disposal
- Energy/fuel
- Manufacturing
- Material acquisition
- Operation of premises
- Packaging
- Pre-processing processing
- Production
- Recycling
- Storage
- Transportation
- Waste
- Other, please specify
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 10 decimal places]
|
Select from:
|
Type of data used | Data quality | If you are verifying/assuring this product emissions data, please tell us how |
---|
Select from:
- Primary
- Secondary
- Primary & secondary
| Text field [maximum 2,500 characters]
| Text field [maximum 5,000 characters]
|
[Add Row]
Requested content
General
- If using the Export/Import functionality, it is essential that you check that data has entered correctly into each field in a question.
Name of good/service (column 1)
- Provide the name of the entries made in column 1 of SC4.2a. If responding to this question using the ORS use the ‘Add Row’ function to add multiple goods or services provided in SC4.2a.
Please select the lifecycle stage (column 3)
- Provide the lifecycle stages that are appropriate to the final/intermediate product for which you are providing data.
- You should add a row for each subsequent lifecycle stage. The “Add Row” function in the ORS can be found at the bottom right of the table.
- This column is used in conjunction with column 2 (Please select the scope), whereby the combined data will give CDP an accurate lifecycle stage. You are able to mix and match, for example ‘Waste’ could be a result of Scope 1 emissions if the waste is a result of the direct processing of a product, or it could be a result of Scope 3 emissions when waste is created through customer use of a product. Please continue to add rows for as many lifecycle stages you are able to provide data for. If the lifecycle stage you need is not available, for example, if you are trying to provide data for a service (in the case of a hotel stay, for instance - check in, use of room, check out, cleaning), please select ‘Other, please specify’ and write in the required data.
Emissions at the lifecycle stage in kg CO2e per unit (column 4)
- Report the emissions for the final/intermediate product in kg CO2e/unit of good or service for the given life cycle stage(s). If you are providing data for only a stage/s of the product’s lifecycle, the figure you supply will be the figure for that stage or aggregate for those stages.
Is this stage under your ownership or control? (column 5)
- Select “Yes” or “No” from the drop-down menu, depending on whether you have control over that particular operation. Use the definition of control you have used for your organizational boundary (financial/operational control).
Type of data used (column 6)
- Specify if you have used primary data, secondary data or both to calculate the emissions at this stage of the lifecycle. According to the GHG Protocol Corporate Standard, primary data is data from specific activities within the company’s value chain, while secondary data is data that is not from specific activities within the company’s value chain. Therefore, data obtained from a supplier who used proxy methods would not be considered to be primary data.
Data quality (column 7)
- Provide any information you consider relevant for your customers relative to the data quality used to produce the figure for this lifecycle stage. Consult Chapter 8 of the GHG Product Standard for help in assessing data quality.
If you are verifying/assuring this product emission data, please tell us how (column 8)
- CDP recognizes that the verification and assurance of product level data is still in the early stages of development. If you are taking steps to verify or assure the data you provide, please use the free text box to explain how. Please include any information as to what standard, if any, was used (e.g. PAS 2050, GHG Protocol Corporate Standard, etc.).
(SC4.2c) Please detail emissions
reduction initiatives completed or planned for this product.
Question dependencies
This question only appears if you select “Yes, I will provide data” in response to SC4.1.
Change from last year
No change
Rationale
CDP supply chain members are interested in emissions reduction initiatives completed or planned for the goods/services they are purchasing. This question allows your organization to provide these details, while outlining the emissions reductions achieved or projected.
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 good/service
|
Initiative ID
|
Description of initiative
|
Completed or planned
|
Emissions reductions in kg CO2e per unit
|
Text field [maximum 2,500 characters]
|
Select from:
[Drop-down of ID’s]
|
Text field [maximum 2,500 characters]
|
Select from:
- Completed
- Ongoing
- Planned
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 2 decimal places]
|
[Add Row]
Requested content
General
- If using the Export/Import functionality, it is essential that you check that data has entered correctly into each field in a question.
Name of good/service (column 1)
- Provide the name of the entries made in column 1 of SC4.2a. If responding to this question using the ORS use the ‘Add Row’ function to add multiple goods or services provided in SC4.2a.
Initiative ID (column 2)
- Identify the initiative by selecting from the drop-down menu. This number will be used to track the identified good/service throughout your response.
Description of initiative (column 3)
- Provide a brief description of what the initiative is about and how emissions reductions will be achieved.
Completed or planned (column 4)
- Select from the drop-down to specify if the initiative is completed or if it is being planned.
Emissions reductions in kg CO2e per unit (column 5)
- Provide the amount of reductions in emissions as kg CO2e per unit of product.
(SC4.2d)
Have any of the initiatives described in SC4.2c been driven by requesting CDP Supply Chain members?
Question dependencies
This question only appears if you select “Yes, I will provide data” in response to SC4.1.
Change from last year
No change
Rationale
Data users are interested in understanding the extent to which the initiatives you engage in (as disclosed in SC4.2c), have been driven by your requesting Supply Chain member. This can help provide an insight to the extent that organizations engage to improve resource efficiency and reduce their impact on the resource intensity of goods/services provided.
Response options
Select one of the following options:
Requested content
General
- Select “Yes” or “No” from the drop-down menu provided in the ORS to respond to this question.
- If you select “Yes” you will be asked to answer question SC4.2e, if you select “No” you will have reached the end of this question set for individual products.
(SC4.2e)
Explain which initiatives have been driven by requesting members.
Question dependencies
This question only appears if you select “Yes” in response to SC4.2d.
Change from last year
No change
Rationale
Data users are interested in understanding the extent to which the initiatives you engage in (as disclosed in SC4.2c), have been driven by your requesting Supply Chain member. This can help provide an insight to the extent that organizations engage to improve resource efficiency and reduce their impact on the resource intensity of goods/services provided.
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.
Please note that this table (for SC4.2e) is designed so that only the customer that you select in column 1 (“Requesting member”) will be able to see the data relevant to them. If you enter an answer without selecting a requesting member, your answer will not be viewable at all.
Requesting member
|
Name of good/service
|
Initiative ID
|
Select from:
[Drop-down menu of requesting members]
|
Text field [maximum 2,500 characters]
|
Select from:
[Drop-down of ID’s]
|
[Add Row]
Requested content
General
- Please note that this table (for SC4.2e) is designed so that only the customer that you select in column 1 (“Requesting member”) will be able to see the data relevant to them. If you enter an answer without selecting a requesting member, your answer will not be viewable at all.
- Note: Disclosers must check that the Requesting members presented in this table are correct for their organization for the reporting period.
Requesting member (column 1)
- Use this field to identify the requesting member or member(s) that have driven the emissions reduction initiative.
Name of good/service (column 2)
- Provide a text answer with the name of good/service.
Initiative ID (column 3)
- Identify the initiative using the ID that you have used previously in column 2 of SC4.2c.
FW-FS Forests and Water Security (FS only)
Module Overview
Financial institutions’ impact on nature, and their exposure to nature-related risks, comes almost entirely from the activities they finance and/or insure in the wider economy. They are therefore requested to report information related to forests and water security only if they lend to, invest in or insure sectors of the economy with a critical impact or dependency on nature. Organizations should respond to this module in the context of these financing/insurance underwriting activities.
The questions and response options are driven by the response to C-FS0.7. If an industry sector which has a critical impact or dependency on forests is selected in column 4 of C-FS0.7, organizations will be requested to respond to forests-related datapoints, and likewise for water security (references to water relate to freshwater resources). If no selection is made in column 4 of C-FS0.7, the FW-FS module will not appear.
There are 6 sections in this module, and most questions are similar to those in the Climate Change modules (the comparable Climate Change questions will be noted in the guidance). The journey through the Forests & Water module for the Financial Sector includes the following:
- Governance of forests- and/or water-related issues.
- Portfolio exposure to forests- and/or water-related risks and opportunities.
- How forests- and/or water-related issues are incorporated into the organizations business strategy, e.g. the policy framework and financial products to mitigate negative forests- and/or water-related impacts.
- Engagement with clients and investee companies on forests and/or water security.
- Measurement of the organization’s portfolio impact on forests and/or water security. For forests, this means the finance and insurance provided to companies in forest risk commodity supply chains, and proportion of this which is considered sustainable.
- Communication of the organization’s response to forests and/or water security.
Company action that reduces deforestation will likely have a positive impact on climate change due to the crucial role of forests in addressing the climate crisis. However, impacts, risks or opportunities should be reported as forests-related if associated with deforestation in some way.
Likewise, many of the impacts of climate change are water-related, for example droughts, floods and storm surges. We ask that an issue be reported as water-related if the impact/benefit/risk is related to water, even if this means duplicating information reported in the Climate Change modules. Organizations should also consider issues related to water scarcity, water pollution, water stress, water access and other underlying basin risks.
Disclosure note
The following terms apply:
- Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
- Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.
- Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
- Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.
Pathway diagram - questions
This diagram shows the questions contained in the FW-FS module. To access question-level guidance, use
the menu on the left to navigate to the question.
FW-FS Governance
FW-FS Board oversight
(FW-FS1.1) Is there board-level oversight of forests- and/or water-related issues within your organization?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
This question provides an indication of the importance of forests- and/or water-related issues to your business. Investors and other data users are interested in an organization's understanding of and approach to forests- and/or water-related risks at the board level; how aligned this is with business strategy and policies; and how the board monitors progress against targets and goals.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Issue area(s)
|
Board-level oversight of this issue area
|
Explain why your organization does not have board-level oversight of this issue area and any plans to address this in the future*
|
Forests* |
Select from:
- Yes
- No, but we plan to within the next two years
- No, and we do not plan to in the next two years
|
Text field [maximum 2,500 characters]
|
Water* |
|
|
Requested content
General
- For climate change, this data is reported in C1.1.
- Consider whether the board and/or board committees take account of forests- and/or water-related issues when reviewing and guiding their business strategy, major plans of action, risk management policies, annual budgets, and budget plans as well as setting the organization’s performance objectives, monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures.
- Consider whether the board and/or board committees have oversight of forests- and/or water-related issues in relation to the financial activities undertaken by your organization.
Explain why your organization does not have board-level oversight of this issue area and any plans to address this in the future (column 3)
- This column is only presented if a “No” option is selected in column 2.
- Provide the main rationale for not currently having board-level oversight of forests- and/or water-related issues.
- If applicable, give details of your organization's plans to introduce board-level oversight.
Explanation of terms
- Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board”.
(FW-FS1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for forests- and/or water-related issues.
Question dependencies
This question only appears if you select “Yes” to any of the issue areas in FW-FS1.1.
Change from last year
New question
Rationale
Being able to specify which board members have responsibility demonstrates the importance of forests- and/or water-related issues to your business.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Issue area(s)*
|
Position of individual(s)
|
Please explain
|
Select all that apply:
|
Select all that apply:
- Board Chair
- Director on board
- Chief Executive Officer (CEO)
- Chief Financial Officer (CFO)
- Chief Operating Officer (COO)
- Chief Procurement Officer (CPO)
- Chief Risk Officer (CRO)
- Chief Sustainability Officer (CSO)
- Chief Credit Officer (CCO)
- Chief Investment Officer (CIO)
- Chief Underwriting Officer (CUO)
- Other C-Suite Officer
- President
- Board-level committee
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Requested content
General
- For climate change, this data is reported in C1.1a.
- Report where on the board the responsibility for oversight of forests- and/or water-related issues lies. This may be with an individual member of the board or a board-level committee, e.g. sustainability committee, risk committee, etc.
- If you have different board-level positions with responsibility for forests- and water-related issues, you may add rows to select the positions and describe responsibility separately.
- Note that this question is asking about direct responsibility for oversight. In practical terms, this is the person or committee at the top of the chain of command specifically managing information on forests- and/or water-related issues, making decisions about what the company will do and adapting those decisions based on forests- and/or water-related-related information.
- The CEO is ultimately responsible for everything in the company; however, this question is looking to identify board-level responsibility specifically on forests- and/or water-related issues. While this may be the CEO, it is not necessarily always the case.
- Note that this question asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.
Position of individual(s) (column 2)
- Select the position(s) of the individual(s) on the board responsible for forests- and/or water-related issues. If the position is not listed here, please select the closest match for your organization and provide the position title in column 3 (“Please explain”).
- If oversight falls jointly to the members of a board-level committee, rather than an individual position, you should select “Board-level committee” and provide the name of the committee in column 3 (“Please explain”).
Please explain (column 3)
- Explain how the responsibilities of the position(s)/committee(s) are related to forests- and/or water-related issues, including at least one example of a forests- and/or water-related-related decision made by the person(s)/committee(s).
- You can use this text field to enter any other relevant information.
Explanation of terms
- C-suite: A term used to collectively refer to the most senior executive team.
(FW-FS1.1b) Provide further details on the board’s oversight of forests- and/or water-related issues.
Question dependencies
This question only appears if you select “Yes” to any of the issue areas in FW-FS1.1.
Change from last year
New question
Rationale
This question provides an indication of the importance of forests- and/or water-related issues to your business. Investors are interested in organizations’ understanding and approach to forests- and/or water-related risks at the board level; how aligned this is with organizational strategy, plans of action, and management policies; and how the board monitors progress against targets and goals.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
(*dropdown appearance in these columns is dependent on selections in this or other questions)
Issue area(s)* | Frequency with which the issue area(s) is a scheduled agenda item | Governance mechanisms into which this issue area(s) is integrated | Scope of board-level oversight* | Please explain |
---|
Select from:
| 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 forests- and/or water-related issues
- Other, please specify
| Select all that apply:
- Risks and opportunities to our banking activities
- Risks and opportunities to our investment (asset management) activities
- Risks and opportunities to our investment (asset ownership) activities
- Risks and opportunities to our insurance underwriting activities
- The impact of our banking activities on forests and/or water security
- The impact of our investing (asset management) activities on forests and/or water security
- The impact of our investing (asset ownership) activities on forests and/or water security
- The impact of our insurance underwriting activities on forests and/or water security
| Text field [maximum 3,000 characters] |
[Add row]
Requested content
General
- For climate change, this data is reported in C1.1b.
- Note that your response to this question may refer to the position of employees relevant to board oversight mechanisms. In this case, do not include the name of any individual or any other personal data in your response.
- You should add a row for each issue area presented in column 1.
Frequency with which the issue area(s) is a scheduled agenda item (column 2)
- You should consider the frequency that forests- and/or water-related issues are a scheduled agenda item for the principal board-level committee having oversight for these issues. This may be a subcommittee of the board, or the full board itself.
- If you select “Other, please specify,” provide a label for the frequency with which the issue area is a scheduled agenda item.
Governance mechanisms into which this issue area(s) is integrated (column 3)
- Select the mechanisms that are relevant to the governance of this issue area in your organization.
Scope of board-level oversight (column 4)
- Activities of a business may be affected by forests- and/or water-related risks and opportunities, as well as contribute to forests- and/or water-related impacts. For financial institutions, these impacts may materialize via the financial products and services offered to its clients, and/or its investments. This column seeks insight on whether an organization’s board considers both:
- How the risks or opportunities presented by forests- and/or water-related issues impact its business; and conversely.
- How its business activities contribute either positively or negatively to forests- and/or water-related impacts.
Please explain (column 5)
- Include details such as what forests- and/or water-related issues are scheduled agenda items, who briefs the board and on which matters (e.g. "a report from each Business Head regarding performance against deforestation and/or water security targets is reviewed quarterly.")
- Describe the governance mechanisms selected in column 3 and how these mechanisms contribute to the board's oversight of forests- and/or water-related issues. For example, how responsibility for forests- and/or water related policies, strategy and information is delegated and how management is held accountable and/or incentivized for implementation of the organization’s policies.
- As much as possible, please give examples from the reporting year.
(FW-FS1.1c) Does your organization have at least one board member with competence on forests- and/or water-related issues?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Transitioning a business for success in a sustainable future requires related expertise within its decision-making bodies. This capability at board level signals a company’s commitment to understanding and responding to risks, opportunities, and impacts.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions
Issue area(s)
|
Board member(s) have competence on this issue area
|
Criteria used to assess competence of board member(s) on this issue area*
|
Primary reason for no board-level competence on this issue area*
|
Explain why your organization does not have at least one board member with competence on this issue area and any plans to address this in the future*
|
Forests* |
Select from:
- Yes
- No, but we plan to address this within the next two years
- No, and we do not plan to address this within the next two years
- Not assessed
|
Text field [maximum 2,500 characters]
|
Select from:
- Important but not an immediate priority
- Judged to be unimportant, explanation provided
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Water* |
|
|
|
|
Requested content
General
- For climate change, this data is reported in C1.1d.
- Indicate whether your board has sufficient competence to assess and manage forests- and/or water-related risks and opportunities.
- Note that your response to this question may refer to the position of employees relevant to board-level competence. In this case, do not include the name of any individual or any other personal data in your response.
Primary reason for no board-level competence on this issue area (column 4)
- This column is only presented if a “No” option is selected in column 2.
- Select the primary reason as to why there is no board-level competence on forests- and/or water-related issues in your organization.
- If none of the reasons are applicable to your organization, select “Other, please specify” to provide the primary reason.
Explain why your organization does not have at least one board member with competence on this issue area and any plans to address this in the future (column 5)
- This column is only presented if a “No” option is selected in column 2.
- If you selected “Judged to be unimportant, explanation provided” in column 4, explain the criteria used to decide that board-level competence on forests- and/or water-related issues is not important for your organization.
- Describe any plans to address board-level competence on forests- and/or water-related issues, such as any measures you have implemented to enhance relevant competence of the board.
FW-FS Management responsibility
(FW-FS1.2) Provide the highest management-level position(s) or committee(s) with responsibility for forests- and/or water-related issues.
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
While it is most important for a member of the board to have responsibility for forests- and/or water-related issues, assigning specific management-level responsibility indicates to CDP data users that the organization is committed to implementing its forests- and/or water-related strategy.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
(*column/row/dropdown appearance is dependent on selections in this or other questions)
Name of the position(s) and/or committee(s) | Reporting line* | Issue area(s)* | Responsibility* | Coverage of responsibility* | Frequency of reporting to the board on forests- and/or water-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)
- Chief Credit Officer (CCO)
- Chief Underwriting Officer (CUO)
- Other C-Suite Officer, please specify
- President
- Risk committee
- Sustainability committee
- Safety, Health, Environment and Quality committee
- Corporate responsibility committee
- Credit committee
- Investment committee
- Responsible Investment committee
- Audit committee
- Other committee, please specify
- Business unit manager
- Energy manager
- Environmental, Health, and Safety manager
- Environment/Sustainability manager
- Facility manager
- Process operation manager
- Procurement manager
- Public affairs manager
- Risk manager
- Portfolio/Fund manager
- ESG Portfolio/Fund manager
- Investment/credit/insurance analyst
- Dedicated responsible investment analyst
- Investor relations manager
- Risk analyst
- There is no management level responsibility for forests- and/or water-related issues
- Other, please specify
| Select 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 all that apply:
| Select from:
- Assessing risks and opportunities
- Managing risks and opportunities
- Both assessing and managing risks and opportunities
- Other, please specify
| Select all that apply:
- Risks and opportunities related to our banking portfolio
- Risks and opportunities related to our investing (asset management) activities
- Risks and opportunities related to our investing (asset ownership) activities
- Risks and opportunities related to our insurance underwriting activities
| Select from:
- 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
- For climate change, this data is reported in C1.2.
- If you have different high management-level positions with responsibility for forests- and water-related issues, you may add rows to select the positions and describe responsibility separately.
- Note that this question asks about the position and not about the names of the staff holding these positions. Do not include the name of any individual or any other personal data in your response.
Name of the position(s) and/or committee(s) (column 1)
- Select the best match for the position/committee in your organization, or select “Other, please specify” and provide a label for the position/committee.
- The list includes senior positions that may sometimes but not always be at board level.
- Note that positions already listed in FW-FS1.1a are also listed here; select one of those positions only if the individual has management responsibility for forests- and/or water-related issues.
- If there is more than one position/committee with high management-level responsibility and you would like to describe this, you may use the "Add Row” button. This is optional.
Reporting line (column 2)
- Select the best match for the reporting line that oversees the positions with responsibility for forests- and/or water-related issues.
Coverage of responsibility (column 5)
- Select which activities are relevant to the responsibility reported in column 2.
Explanation of terms
- Highest management-level position(s) or committee(s): The most senior individual or committee with operational responsibility for the implementation of decisions taken at the board level and day-to-day management.
FW-FS Risks and opportunities
FW-FS Risk management processes
(FW-FS2.1) Do you assess your portfolio's exposure to forests- and/or water-related risks and opportunities?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
For financial institutions, deforestation and water insecurity can pose significant challenges and opportunities, now and in the future, via the companies and activities they lend to, invest in and insure in the real economy. When evaluating exposure to forests- and/or water-related risks, organizations in the financial sector should consider the impact on their financial portfolios including banking, investment and/or insurance underwriting activities.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio exposure | We assess our portfolio’s exposure to this issue area | Explain why your portfolio's exposure is not assessed for this issue area and any plans to address this in the future* |
---|
Banking – Forests exposure* | Select from:
- Yes
- No, but we plan to within the next two years
- No, and we do not plan to in the next two years
| Text field [maximum 2,500 characters] |
Banking – Water exposure*
| | |
Investing (Asset manager) – Forests exposure*
| | |
Investing (Asset manager) – Water exposure* | | |
Investing (Asset owner) – Forests exposure* | | |
Investing (Asset owner) – Water exposure* | | |
Insurance underwriting – Forests exposure* | | |
Insurance underwriting – Water exposure* | | |
Requested content
General
- For climate change, this data is reported in C-FS2.2b.
Portfolio exposure (column 1)
- The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to a financial portfolio’s exposure to forest- or water-related risks and opportunities. Please respond to all rows.
We assess our portfolio’s exposure to this issue area (column 2)
- Select "Yes" if you have any process in place for identifying, assessing, and responding to water- and/or forests-related risks and opportunities, regardless of how thorough it is. You will be able to provide further details in the subsequent questions.
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
- Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
- Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.
- Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim
- Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.
(FW-FS2.1a) Describe how you assess your portfolio's exposure to forests- and/or water-related risks and opportunities.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS2.1 column 2.
Change from last year
New question
Rationale
CDP data users are interested in how much of your organization’s portfolio is assessed for forests- and/or water-related risks, and how thorough the assessment is.
Reponse options
Please complete the following table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Portfolio* | Exposure to* | Type of risk management process | Proportion of portfolio covered by risk management process | Type of assessment | Time horizon(s) covered | Tools and methods used | Provide the rationale for implementing this process to assess your portfolio's exposure to forests- and/or water-related risks and opportunities |
---|
Select from:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
| Select from:
- Forests-related risks and opportunities
- Water-related risks and opportunities
| Select from:
- Integrated into multi-disciplinary company-wide risk management process
- A specific ESG-related risk management process
| Percentage field [enter a number from 0-100] | Select from:
- Qualitative only
- Quantitative only
- Qualitative and quantitative
| Select all that apply:
- Short-term
- Medium-term
- Long-term
- None of the above/ Not defined
| Select all that apply:
- Corporate Bond Water Credit Risk Analysis Tool
- Drought Stress Testing Tool
- ENCORE
- Environmental Justice Atlas
- External consultants
- Global Forests Watch Pro
- Internal tools/methods
- Investor Water Toolkit
- Risk models
- Scenario analysis
- Stress tests
- Sustainability Policy Transparency Toolkit (SPOTT)
- Trase Finance
- WRI Aqueduct
- WWF Water Risk Filter
- UNEP FI Portfolio Impact Analysis Tool for Banks
- UNEP FI Corporate Impact Analysis Tool
- Other, please specify
| Text field [maximum 5,000 characters] |
[Add row]
Requested content
General
- For climate change, this data is reported in C-FS2.2c.
Portfolio (column 1)
- The dropdowns presented in this column depend on your response to question FW-FS2.1.
- You should add a row for each portfolio in the dropdown list. You can add additional rows for the same portfolio to differentiate varying assessment types or coverage if required.
Exposure to (column 2)
- The dropdowns presented in this column depend on your response to question FW-FS2.1.
- You should add a row for each issue area and describe your portfolio assessment in the subsequent columns.
Proportion of portfolio covered by risk management process (column 4)
- For each of your portfolios, disclose the proportion of the portfolio covered by a risk management process.
- Coverage by portfolio value can be based on either total or outstanding commitments, premiums, and/or committed capital.
Type of assessment (column 5)
- Disclose whether the assessment is qualitative, quantitative, or both.
- Qualitative assessment is descriptive and may include stakeholder involvement, meetings, interviews, and analysis of scenario impacts or descriptive risk matrices.
- Quantitative assessment is expressed in numbers and involves indicators, indices, variables and metrics such as probabilistic or stochastic risk modelling considering frequency and severity of events.
Time horizon(s) covered (column 6)
- Choose all the time horizons that are considered in your forest- and/or water-related risk assessment. For example, if you only consider risks that may impact your business in the short term, in line with your definition of time horizons provided in C2.1a, you should select “short-term” here. Or, if you consider, short-term, medium-term and long-term horizons, select all three.
- In case none of the time horizons provided in C2.1a are covered by this risk management process, select “None of the above/ Not defined”.
Tools and methods used (column 7)
- Select which tools and methodologies you use to assess your portfolio’s exposure to forests and/or water-related risks:
- Corporate Bond Water Credit Risk Analysis Tool: enables users to integrate financial risk exposure to water scarcity into standard financial models used to assess the credit strengths of corporates across water-intensive sectors including power utilities, beverages and mining.
- Drought Stress Testing Tool: allows financial institutions to see how incorporating drought scenarios changes the perception of risk in their own loan portfolios, based on the catastrophe modelling framework (UNEP).
- ENCORE: identifies business risks arising from economic dependencies on natural capital (NCFA, Global Canopy, UN).
- Environmental Justice Atlas: documents and catalogues social conflict around environmental issues.
- Global Forests Watch Pro: delivers critical decision-making analysis at the property, supply shed and portfolio levels.
- Investor Water Toolkit: supports the evaluation of water risks in investment portfolios, and includes links to other resources, data bases, case studies and tools (Ceres).
- Risk models: computerized systems, such as catastrophe models, used to assess and quantify the financial impact of a range of potential future disasters.
- Stress tests: process of evaluating a number of statistically defined possibilities to determine the most damaging combination of events, and the loss they would produce. The likelihood of such an event is then assessed.
- Sustainability Policy Transparency Toolkit (SPOTT): supports the finance sector and supply chain stakeholders to manage environmental, social and governance (ESG) risks by publishing transparency assessments of soft commodity producers and traders.
- Trase Finance: enables financial institutions to understand and mitigate their exposure to deforestation in their portfolios and allow civil society and governments to better hold to account those failing to act.
- UNEP FI Corporate Impact Analysis Tool: enables users to perform a holistic analysis of companies, based on the reality of those companies’ business activities and the needs of the countries in which they operate, whether for sourcing, production or sales.
- UNEP FI Portfolio Impact Analysis Tool for Banks: helps banks analyze the impacts associated with their retail (consumer and business banking) and wholesale (corporate and investment banking) portfolios.
- WRI Aqueduct: is a customizable global atlas used to evaluate how water risk (and water stress) may affect operations (at watershed level). The global map can be tailored specifically for nine water-intense industry sectors including Oil & Gas, Agriculture and Chemicals.
- WWF Water Risk Filter: is an online tool for company-level mapping and evaluation of (basin) water risks, including water scarcity.
- If you use a tool or methodology that is not in the list, select “Other, please specify” and provide a label.
Provide the rationale for implementing this process to assess your portfolio's exposure to forests- and/or water-related risks and opportunities (column 8)
- Provide reasons for why you implemented this specific process to assess your portfolio’s exposure to forests- and/or water-related risks and opportunities.
- You may also describe the advantages and disadvantages of the process chosen.
- Explain how you defined and calculated the proportion of the portfolio covered by your risk management process.
(FW-FS2.2) Does your organization consider forests- and/or water-related information about clients/investees as part of its due diligence and/or risk assessment process?
Question dependencies
This question only appears if you select an industry sector that has a
potentially critical impact on forests and/or water security in column 4 of
question C-FS0.7.
Change from last year
New question
Rationale
Considering forests- and/or water-related information about clients/investees in the initial phases of risk assessment, and/or as part of a due diligence processes is important for understanding risk exposure.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio and issue area the information relates to | We consider forests- and/or water-related information | Explain why information related to this issue area is not considered and any plans to address this in the future* |
---|
Banking – Forests-related information* | Select from:
- Yes
- No, but we plan to do so within the next two years
- No, and we do not plan to in the next two years
| Text field [maximum 2,500 characters] |
Banking – Water-related information* | | |
Investing (Asset manager) – Forests-related information* | | |
Investing (Asset manager) – Water-related information* | | |
Investing (Asset owner) – Forests-related information* | | |
Investing (Asset owner) – Water-related information* | | |
Insurance underwriting – Forests-related information* | | |
Insurance underwriting – Water-related information* | | |
Requested content
General
- For climate change, this data is reported in C-FS2.2d.
- For each of your financial portfolios, disclose whether you consider forests- and/or water-related information about your clients/investees as part of your screening, risk assessment and/or due diligence process.
- Incorporating forests- and/or water-related information into business processes can take many forms. This assessment is dependent on the organization’s client/investees base and scale of business.
- Banks:
- Incorporating clients’ forests- and/or water-related information in borrower and deal-level credit risk and other pre-lending assessments such as due diligence and “know your client” processes.
- For the purpose of this question focus on your commercial/corporate clients.
- Incorporating investees’ forests- and/or water-related information in fund allocation and investment risk assessment processes.
- Incorporating policyholders’ forests- and/or water-related information in insurance underwriting due diligence processes.
Portfolio and issue area the information relates to (column 1)
- The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to one area where forests- and/or water-related information about clients/investees are considered as part of your due diligence and/or risk assessment process. Please respond to all rows
We consider forests- and/or water-related information (column 2)
- Select "Yes" if you have any process in place for considering forests- and/or water-related information about clients/investees as part of your due diligence and/or risk assessment process, regardless of how thorough it is. You will be able to provide further details in the subsequent questions.
Explanation of terms
- Due diligence: Research or investigation performed by the financial services company before entering into an agreement or a financial transaction with another party.
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(FW-FS2.2a) Indicate the forests- and/or water-related information your organization considers about clients/investees as part of your due diligence and/or risk assessment process, and how this influences decision making.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS2.2 Column 2.
Change from last year
New question
Rationale
Data users are interested in what information financial institutions consider, about which clients/investees, and whether that is enough for them to make informed lending, investment and/or insurance underwriting decisions and mitigate environment-related risks within their portfolio(s).
Response options
Please complete the following table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Portfolio* | Information related to* | Type of information considered* | Process through which information is obtained | Industry sector(s) covered by due diligence and/or risk assessment process | State how these forests- and/or water-related information influences your decision making |
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Select from:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance underwriting (Insurance company)
| Select from:
| Select all that apply:
- Scope and content of forests policy [F]
- Commitment to eliminate deforestation/conversion of other natural ecosystems [F]
- Forests risk commodity volumes [F]
- Certification of forests risk commodities [F]
- Proportion of forest risk commodity volumes in compliance with no deforestation/conversion [F]
- Traceability of forest risk commodities [F]
- Origin of forest risk commodities [F]
- Scope and content of water policy [W]
- Water withdrawal and/or consumption volumes [W]
- Water withdrawn from water stressed areas [W]
- Water discharge treatment data [W]
- Breaches to local water regulations [W]
- Impingements on the human right to water in communities [W]
- Access to WASH in the workplace [W]
- Other, please specify
| Select all that apply:
- Directly from the client/investee
- From an intermediary or business partner
- Data provider
- Public data sources
- Other, please specify
| Select all that apply:- Energy
- Materials
- Capital Goods
- Commercial & Professional Services
- Transportation
- Automobiles & Components
- Consumer Durables & Apparel
- Consumer Services
- Retailing
- Food & Staples Retailing
- Food, Beverage & Tobacco
- Household & Personal Products
- Health Care Equipment & Services
- Pharmaceuticals, Biotechnology & Life Sciences
- Software & Services
- Technology Hardware & Equipment
- Semiconductors & Semiconductor Equipment
- Telecommunication Services
- Media & Entertainment
- Utilities
- Real Estate
- Other, please specify
| Text field [maximum 2,500 characters] |
[Add row]
Requested content
General
- For climate change, this data is reported in C-FS2.2e.
Portfolio (column 1)
- The dropdowns presented in this column depend on your response to question FW-FS2.2.
- You should add a row for each portfolio in the dropdown list.
Information related to (column 2)
- The dropdowns presented in this column depend on your response to question FW-FS2.2.
- You should add a row for each issue area and describe your due diligence/risk assessment process in the subsequent columns.
Type of information considered (column 3)
- Select which type of forest- and/or water-related information you consider as part of your screening, risk assessment and/or due diligence process.
- Scope and content of forests policy refers to a statement by a portfolio organization specifying the goals or targets that it intends to meet or the actions it intends to take in regards to its management of forest-related issues.
- Commitment to eliminate deforestation/conversion of other natural ecosystems refers to a company committing to no deforestation and no conversion of natural ecosystems
- Deforestation: loss of natural forest as a result of the following human activities: i) conversion to agriculture or other non-forest land use; ii) conversion to a tree plantation; or iii) severe and sustained degradation
- Conversion: human-induced change of a natural ecosystem to another land use or profound change in the natural ecosystem’s species composition, structure, and/or function.
- Forests risk commodity volumes are the total volumes of FRC’s produced or consumed by the portfolio company.
- Certification of forests risk commodities is when a certification process is carried out by an independent organization to ensure environmental and social criteria have been met.
- Proportion of forest risk commodity volumes in compliance with no deforestation/conversion refers to how much of the total forest risk commodity volume produced or consumed by the portfolio company can be verified as in compliance with no deforestation/conversion
- Traceability of forest risk commodities is the ability to follow a product or its components through stages of the supply chain (e.g., production, processing, manufacturing, and distribution).
- Origin of forest risk commodities considers the supply base of a given commodity and refers to information about where the forests risk commodity(ies) are grown, harvested or reared.
- Scope and content of water policy refers to a statement of an organization’s water-related commitments, and the actions that will achieve them.
- Water withdrawal and/or consumption volumes
- Water withdrawal: The sum of all water drawn into the boundaries of an organization from all sources for any use over the course of a reporting period.
- Water consumption: The amount of water that is drawn into the boundaries of an organization and not discharged back to the water environment or a third party over the course of a reporting year.
- Water withdrawn from water stressed areas refers to areas which do not meet human and ecological demands for fresh water. Compared to scarcity, “water stress” is more inclusive, considering physical scarcity, water quality, and the accessibility of water (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").
- Water discharge treatment data informs on the quality of effluents and other water leaving the boundaries of an organization and released to surface water, groundwater, or third parties.
- Breaches to local water regulations refers to failures in observing water regulations, which aim to prevent overuse, contamination and other detrimental activities.
- Impingements on the human right to water in communities refers water withdrawals, consumption or discharges which limit the water availability for local communities due to quantity or quality factors.
- Access to WASH in the workplace refers to water, sanitation, and hygiene services.
- If you consider forests- and/or water-related information that is not in the list, select “Other, please specify” and provide a label
Process through which information is obtained (column 4)
- Select how you obtain environment-related information about clients/investee companies. This information could either be requested from the client/investee directly or gathered from other data sources.
Industry sector(s) covered by due diligence and/or risk assessment process (column 5)
- Select which industry sector(s) the clients/investees that you consider forests- and/or water-related information about operate in.
State how these forests- and/or water-related information influences your decision making (column 6)
- Describe how you use the information you consider and if it has any bearing on the outcomes of due diligence or risk assessment processes.
Explanation of terms
- Certification: the action or process of providing a product with an official document attesting to a status or level of achievement against a certain standard.
- Due diligence: Research or investigation performed by the financial services company before transacting with another party.
- No-conversion ("or conversion-free"): commodity production, sourcing, or financial investments in commodities that do not cause or contribute to the conversion of natural ecosystems (AFi, 2019).
- No-deforestation ("or deforestation-free"): commodity production, sourcing, or financial investments that do not cause or contribute to deforestation (AFi, 2019).
- Traceability: the ability to follow a product or its components through stages of the supply chain (e.g., production, processing, manufacturing, and distribution) (AFi, 2019).
FW-FS Risk disclosure
(FW-FS2.3) Have you identified any inherent forests- and/or water-related risks in your portfolio with the potential to have a substantive financial or strategic impact on your business?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
CDP data users are interested in learning whether your organization has knowledge at the corporate level of any substantive forests- and/or water-related risks in your portfolio(s).
Providing information about inherent risk exposure rather than residual risk allows data-users to consider the potential impact and the appropriateness of your organization’s response.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issue area(s)
|
Risks identified for this issue area
|
Primary reason why your organization has not identified any substantive risks for this issue area*
|
Explain why your organization has not identified any substantive risks for this issue area*
|
Forests*
|
Select from:
|
Select from:
- Risks exist, but none with the potential to have a substantive financial or strategic impact on business
- Evaluation in process
- Not yet evaluated
- Other, please specify
|
Text field [maximum 2,500 characters]
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Water*
|
|
|
|
Requested content
General
- For climate change, this data is reported in C2.3.
- Please indicate if you have identified any inherent forest- and/or water-related risks.
- For the purposes of this response, the risks reported should only be those which:
- 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).
- For the purposes of this response, the risks reported should be inherent and have the potential for substantive impacts on your banking, investing and/or insurance underwriting activities. Further details can be provided in subsequent questions.
Explanation of terms
- Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
- Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
(FW-FS2.3a) Provide details of forests- and/or water-related risks in your portfolio with the potential to have a substantive financial or strategic impact on your business.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS2.3 column 2.
Change from last year
New question
Rationale
Your response to this question provides data users with the details of the inherent risks posed to your organization by forests- and/or water-related issues within your portfolio, and also the estimated potential financial impact of these risks at the corporate level and your response to these risks.
Response options
Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Identifier
|
Portfolio where risk driver occurs*
|
Issue area risk relates to*
|
Risk type
|
Primary risk driver
|
Primary potential financial impact
|
Risk type mapped to traditional financial services industry risk classification
|
Select from:
|
Select from:
- Banking (Bank) portfolio
- Investing (Asset manager) portfolio
- Investing (Asset owner) portfolio
- Insurance underwriting (Insurance company) portfolio
|
Select from:
|
Select from:
- Current regulation
- Emerging regulation
- Legal
- Technology
- Market
- Reputation
- Acute physical
- Chronic physical
|
Select from drop-down options below
|
Select from drop-down options below
|
Select from:
- Capital adequacy and risk-weighted assets
- Liquidity risk
- Funding risk
- Market risk
- Credit risk
- Insurance risk
- Reputational risk
- Policy and legal risk
- Systemic risk
- Operational risk
- Strategic risk
- Other non-financial risk
- None
|
Company-specific description
|
Time horizon
|
Likelihood
|
Magnitude of impact
|
Are you able to provide a potential financial impact figure?
|
Text field [maximum 2,500 characters]
|
Select from:
- Short-term
- Medium-term
- Long-term
- Unknown
|
Select from:
- Virtually certain
- Very likely
- Likely
- More likely than not
- About as likely as not
- Unlikely
- Very unlikely
- Exceptionally unlikely
- Unknown
|
Select from:
- High
- Medium-high
- Medium
- Medium-low
- Low
- Unknown
|
Select from:
- Yes, a single figure estimate
- Yes, an estimated range
- No, we do not have this figure
|
Potential financial impact figure (currency)
|
Potential financial impact figure - minimum (currency)
|
Potential financial impact figure - maximum (currency)
|
Explanation of financial impact figure
|
Cost of response to risk
|
Description of response and explanation of cost calculation
|
Comment
|
Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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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]
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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]
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[Add row]
Primary risk driver (column 5)
Select one of the following options:
Current regulation
- Mandates on and regulation of existing products and services [F, W]
- Lack of mature certification and sustainability standards for forest risk commodities [F]
- Land tenure regulations and uncertainty involving land ownership and occupancy rights [F]
- Increased difficulty in obtaining withdrawals/operations permit [W]
- Moratoria and voluntary agreements [F, W]
- Higher water prices [W]
- Other, please specify
Emerging regulation
- Mandates on and regulation of existing products and services [F, W]
- Lack of mature certification and sustainability standards for forest risk commodities [F]
- Land tenure regulations and uncertainty involving land ownership and occupancy rights [F]
- Increased difficulty in obtaining withdrawals/operations permit [W]
- Moratoria and voluntary agreements [F, W]
- Higher water prices [W]
- Regulatory uncertainty (F,W)
- Other, please specify
Legal
- Exposure to litigation and/or sanctions [F, W]
- Uncertainties around legality of forests risk commodities produced or consumed by clients [F]
- Lending that could create or contribute to systemic risk for the economy [F, W]
- Investing that could create or contribute to systemic risk for the economy [F, W]
- Insurance underwriting that could create or contribute to systemic risk for the economy [F, W]
- Other, please specify
Technology
- Limited access to sustainable techniques of forest risk commodity production [F]
- Substitution of existing products with lower water impact options [W]
- Unsuccessful investment in new technologies [W]
- Other, please specify
Market
- Changing customer behavior [F, W]
- Uncertainty in market signals [F, W]
- Increased cost of raw materials, including forest risk commodities [F]
- Availability of affordable certified sustainable forest risk commodities [F]
- Inability to attract co-financiers and/or investors into deals due to forests- and/or water-related issues [F, W]
- Loss of clients due to a fund’s poor environmental performance outcomes [F, W]
- Contraction of insurance markets, leaving clients exposed and changing the risk parameters of the credit [F, W]
- Rise in risk-based pricing of insurance policies (beyond demand elasticity) [F, W]
- Other, please specify
|
Reputation
- Shifts in consumer preferences [F, W]
- Stigmatization of sector in which your clients/investees operate [F, W]
- Increased stakeholder concern or negative stakeholder feedback [F, W]
- Lending that could create or contribute to systemic risk for the economy [F, W]
- Investing that could create or contribute to systemic risk for the economy [F, W]
- Insurance underwriting that could create or contribute to systemic risk for the economy [F, W]
- Negative media coverage related to financing/insuring of projects or activities with negative impacts on forests [F]
- Negative media coverage related to financing/insuring of projects or activities with negative impacts on water [W]
- Community opposition [F, W]
- Inadequate access to water, sanitation, and hygiene services [W]
- Other, please specify
Acute physical
- Avalanche
- Cold wave/frost
- Cyclone, hurricane, typhoon
- Drought
- Flood (coastal, fluvial pluvial, groundwater)
- Glacial lake outburst
- Heat wave
- Heavy precipitation (rain, hail, snow/ice)
- Landslide
- Pollution incident
- Storm (including blizzards, dust and sandstorms)
- Subsidence
- Tornado
- Wildfire
- Other, please specify
Chronic physical
- Changing precipitation patterns and types (rain, hail, snow/ice)
- Changing temperature (air, freshwater, marine water)
- Changing wind patterns
- Change in land-use
- Coastal erosion
- Declining water quality
- Deforestation
- Ecosystem vulnerability
- Heat stress
- Inadequate infrastructure
- Increased levels of plastic in freshwater bodies
- Ocean acidification
- Permafrost thawing
- Poorly managed sanitation
- Precipitation and/or hydrological variability
- Saline intrusion
- Sea level rise
- Soil degradation
- Soil erosion
- Solifluction
- Temperature variability
- Water scarcity
- Water stress
- Other, please specify
|
Primary potential financial impact (column 6)
Select one of the following options:
- Increased direct costs
- Increased indirect (operating) costs
- Increased capital expenditures
- Increased credit risk
- Increased insurance claims liability
- Requirement to hold increased amounts of regulatory capital
- Decreased revenues due to reduced demand for products and services
- Decreased revenues due to reduced production capacity
- Decreased access to capital
- Fewer client deposits resulting in reduced sources of funding
- Decreased asset values or asset useful life leading to write-offs, asset impairment or early retirement of existing assets
- Reduced profitability of investment portfolios
- Devaluation of collateral and potential for stranded, illiquid assets
- Other, please specify
Requested content
General
- For climate change, this data is reported in C2.3a.
- For the purposes of this response, the risks reported should only be those which potentially pose substantive impacts to your business operations, revenue, or expenditure, regardless of whether or not the company has taken action to mitigate the risk(s).
- Both physical and transition risks in your lending, investing and/or insurance underwriting activities should be considered, including the risk of stranded assets. These are assets that are no longer economically viable as a result of forests- and/or water-related transition or physical risks.
- Banks:
- should consider disclosing their forest- and/or water-related risks (transition and physical) in their lending and other financial intermediary activities.
- Asset owners/Asset managers:
- should consider forest- and/or water-related risks for each product or investment strategy.
- should consider forest- and/or water-related risks on re-/insurance portfolios by geography, business division, or product segments, including the following risks:
- Physical risks from changing frequencies and intensities of weather-related perils;
- Transition risks resulting from a reduction in insurable interest due to a decline in value, changing costs, or implementation of regulation; and
- Liability risks that could intensify due to a possible increase in litigation. For example, the risk of an increase in claims for defense costs in relation to directors and officers (D&O) liability.
- Additionally, as an asset owner, please also describe the forest- and/or water-related risks relevant to your investment portfolio.
Portfolio where risk driver occurs (column 2)
- The options shown will be driven by the organizational activities you selected in C-FS0.7
- Select the portfolio where the forests- and/or water-related risk occurs.
Issue area risk related to (column 3)
- Select whether the risk is related to forests or related to water. Some of the primary risk driver options are specific to one or the other; however, others could be either, therefore CDP requires you to indicate.
- As an illustrative example, if you face an inherent reputational risk of negative media coverage related to your lending, investing or insurance underwriting:
- This would be forests-related if the risk is driven by the lending, investment, insurance you provide to companies responsible for deforestation.
- This would be water-related if the risk is driven by the lending, investment and/or insurance you provide to companies responsible for water pollution.
Risk type (column 4)
- See explanation of terms for definitions of risk types.
- Note that a selection must be made for both column 4 and column 5. Your data will not be saved if either column is left blank.
Primary risk driver (column 5)
- Risk driver describes the source of the risk and will depend on the risk type chosen in column 4. Select an option that best describes the primary risk driver of the identified risk from the drop-down menu.
- Note that a selection must be made for both column 4 and column 5. Your data will not be saved if either column is left blank.
Primary potential financial impact (column 6)
- This column refers to the potential financial impact that the risk could have on your organization. The financial impacts of forests- and/or water-related issues on organizations are not always clear, and for many organizations there might be more than one financial impact associated with a forests- and/or water-related risk. Select the option from the drop-down menu that you evaluate as having the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 16).
Risk mapped to traditional financial services industry risk classification (column 7)
- In this column consider how forests- and/or water-related risks fit into your already existing organizational risk framework.
- If an identified risk maps to multiple industry risk classifications, you should select what you consider to be the primary classification.
Company specific description (column 8)
- Provide further contextual information on the risk driver, including more detail on the exact nature, location and/or regulation of the effect concerned, as well as any notable examples.
- Be sure to include company-specific detail, such as references to activities, portfolios, products or services specific to your company’s business.
Time horizon (column 9)
- Select the time horizon the potential impact could materialize over.
- Use the definitions of short-, medium- and long-term you provided in response to C2.1a.
Likelihood (column 10)
- Likelihood refers to the probability of the inherent impact occurring within the time horizon reported in column 9. In the case of an inherent risk, the probability of the impact might be similar to the probability of the risk event (the risk driver) itself.
- Likelihood of the impact occurring along with the magnitude of the impact are the building blocks for quantifying and prioritizing risk.
- The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 report and are consistent across all CDP information requests.
- As a guide to quantifying likelihood on a % basis, we suggest:
- Virtually certain (greater than 99% probability);
- Very likely (greater than 90% probability);
- Likely (greater than 66% probability);
- More likely than not (greater than 50% probability);
- About as likely as not (between 33% and 66% probability);
- Unlikely (less than 33% probability);
- Very unlikely (less than 10%);
- Exceptionally unlikely (less than 1% probability);
- Unknown.
Magnitude of impact (column 11)
- The magnitude describes the extent to which the impact, if it occurred, would affect your business. You should consider the business as a whole. This means that the potential magnitude of the impact can be a combination of the scale of the damage and your organization’s state of resilience prior to responding to the risk.
- As it is not possible for CDP to accurately define terms for magnitude of impact, companies are asked to determine and report magnitude using a qualitative 5 point scale from High to Low. Factors to consider when classifying the magnitude of the impact on your organization include:
- The proportion of business units affected;
- The size of the impact on those business units;
- The dependency of the company on those units;
- The potential for shareholder or customer concern.
- An impact could have a relatively high magnitude for the company as a whole because of a large effect in one of these aspects or small effects in all four combining to create a larger impact.
- If the financial impact has not been assessed by your organization, please select ‘Unknown’.
Are you able to provide a potential financial impact figure? (column 12)
- Your selection will determine whether columns 13, 14 and 15 will be presented.
- It is acknowledged that these figures will be estimates.
- If you are unable to provide a figure or an estimated range for financial impact, you may use column 16 “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 13)
- This column is relevant if you selected “Yes, a single figure estimate” in column 12
- Provide a single figure for the inherent financial impact of the risk (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4.
Potential financial impact figure – minimum/maximum (currency) (columns 14, 15)
- These columns are relevant if you selected “Yes, an estimated range” in column 12
- Provide the estimated range for the inherent financial impact (before taking into consideration any controls you may have in place to mitigate the impacts). This figure should be in the same currency that you selected in question C0.4.
- Potential financial impact figure – minimum (currency): Use this field to report the lower point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘5,000’ should be reported here.
- Potential financial impact figure – maximum (currency): Use this field to report the upper point of your estimated financial impact associated with the risk. For example, if the range is from US $5,000 to $50,000, ‘50,000’ should be reported here.
Explanation of financial impact (column 16)
- Use this field to explain the figure(s) provided in 'Potential financial impact' (columns 13, 14, 15).
- Describe how you arrived at this figure (or range), including:
- What approach was employed to calculate the figure;
- Any assumptions the figure is dependent on;
- The likely timescale for the financial impact.
- If 'No, we do not have this figure' was selected in column 12, use this column to provide a description of the financial impact in the relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.
Cost of response to risk (column 17)
- Provide a quantitative figure for the cost of your risk response actions. If there are no costs to responding to the risk, enter '0'. If the value you have reported is an estimate, please state this in column 18 (“Description of response and explanation of cost calculation”).
- This figure should be in the same currency that you selected for all financial information disclosed throughout your response in C0.4
Description of response and explanation of cost calculation (column 18)
- Provide details of your organization’s response to mitigate, control, transfer or accept the risk.
- Include an example of company-specific risk response actions (activities, projects, products and/or services).
- Provide an explanation of how the figure for the cost of managing the risk (in column 17) was calculated, including the figures used in your calculation.
Explanation of terms
- Forests-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing an impact caused directly or indirectly by deforestation/forest degradation (e.g. fines, loss of license to operate, supply chain disruption, loss of revenue etc.). The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this forests-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
- Water-related risk refers to the likelihood, over a specific time, of a portfolio company experiencing a water-related challenge directly or indirectly, e.g. water scarcity, water stress, flooding, infrastructure decay, drought (adapted from the CEO Water Mandate's "Understanding Key Water Stewardship Terms").The extent of a risk is a function of its likelihood and the severity of the potential impact. The severity of potential impact itself depends on the intensity of the challenge posed by the risk, as well as the vulnerability of the organization. For a financial institution financing and/or insuring such a company, this water-related portfolio company risk can result in e.g. a credit loss, an asset depreciation and/or an insurance claim.
- Transition risks:
- Current and emerging regulation: Policy developments that attempt to constrain actions that contribute to the adverse effects of deforestation or degradation of water security. Alternatively, policy developments that seek to promote adaptation and resilience to forest- and/or water-related issues.
- Technology: All risks associated with technological improvements or innovations that support the transition to a deforestation-free, water secure economic system.
- Legal: All forests- and/or water-related litigation claims.
- Market: All shifts in supply and demand for certain commodities, products, and services.
- Reputation: All risks tied to changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a deforestation-free, water secure future.
- Acute: Risks that are event-driven, including increased severity of extreme weather events, such as hurricanes, wildfires or floods.
- Chronic: Risk driven by long-term changes, such as changing precipitation patterns, declining water quality, or land-use change.
- Access to capital: Capital investments provide sources of funding other than those resulting from a bank’s products and services. This includes equity and debt capital from investors and capital raised in the money markets.
- Capital expenditure: A measure of the value of purchases of fixed assets such as property, buildings, technology or equipment. Put differently, Capital expenditure is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
- Regulatory capital: Capital requirements are standardized regulations in place for financial institutions that determine how much liquid capital (that is, easily sold securities) must be held vis-a-vis a certain level of their assets.
- Revenue: Income arising in the course of an entity’s ordinary activities - before deducting costs for the goods/services sold and operating expenses to arrive at profit (adapted from the International Financial Reporting Standard).
- Stranded assets: Assets which, at some point prior to the end of their economic life, are no longer able to earn an economic return as a result of changes associated with the transition to a deforestation-free, water secure economy.
- Traditional financial services industry risk classification:
- Capital adequacy and risks weighted assets: refers to the minimum amount of capital that must be held by financial institutions in order to reduce the risk of insolvency.
- Liquidity risk: occurs when a financial institution cannot meet its short-term debt obligations.
- Funding risk: refers to the risk associated with the impact on a project's cash flow from higher funding costs or lack of availability of funds
- Market risk: refers to the possibility of loss resulting from an adverse movement in asset prices
- Credit risk: refers the possibility of a loss resulting from a counterparty’s failure to repay a loan or meet contractual obligations.
- Insurance risk: refers to the possibility of loss resulting from an event(s) that triggers the insurer to pay (a) claim(s)
- Reputational risk: refers to the risk for negative public perception or to the potential of uncontrollable events to have an impact on a company's reputation
- Policy and legal risk: refers to the possibility that legal action will be taken because of an individual's or corporation's actions, inaction, products, services, or other events
- Systemic risk: the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy
- Operational risk: refers to the possibility of loss resulting from failed processes, systems, human error or outside influences
FW-FS Opportunity disclosure
(FW-FS2.4) Have you identified any inherent forests- and/or water-related opportunities in your portfolio with the potential to have a substantive financial or strategic impact on your business?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
In addition to risk, the transition to a sustainable economy presents opportunities. Achieving a 1.5-degree, deforestation-free, water-secure world will require massive investment in low carbon technologies, sustainable agricultural and water management practices. Only the financial sector can provide this. CDP data users wish to know whether your organization has identified any substantive forests- and/or water-related opportunities in your portfolio(s).
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issues area(s)
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Opportunities identified for this issue area
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Primary reason why your organization has not identified any substantive opportunities for this issue area*
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Explain why your organization has not identified any substantive opportunities for this issue area*
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Forests*
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Select from:
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Select from:
- Opportunities exist, but we are unable to realize them
- Opportunities exist, but none with the potential to have a substantive financial or strategic impact on business
- Evaluation in process
- Judged to be unimportant
- Not yet evaluated
- Other, please specify
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Text field [maximum 2,500 characters]
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Water*
|
|
|
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Requested content
General
- For climate change, this data is reported in C2.4.
- Indicate if you have identified any inherent forest- and/or water-related opportunities.
- The opportunities may:
- be commercial or operational in nature
- bring direct financial benefits
- bring other kinds of benefits, such as policy influence, strengthening of reputation, or reduced environmental impact
- also be of benefit to others; for example through stewardship or collective action programs that address shared risks or aim for no deforestation/conversion or water security.
- For the purposes of this response, the opportunities reported should be inherent and have the potential for substantive impacts on your banking, investing and/or insurance underwriting activities. Further details can be provided in subsequent questions.
- Please note you may include opportunities which are:
- Currently being experienced or which you expect to arise in the future
- Being managed or newly identified
- Well understood or with high levels of uncertainty with regard to the likelihood of the opportunity materializing and the extent to which it will impact the business.
Explanation of terms
- Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.
- Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.
(FW-FS2.4a) Provide details of forests- and/or water-related opportunities in your portfolio with the potential to have a substantive financial or strategic impact on your business.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS2.4 column 2.
Change from last year
New question
Rationale
Your response to this question will provide CDP data users with details of the opportunities presented to your organization by forests- and/or water-related issues, and also the estimated potential scale of these opportunities at the corporate level and your response to realize these opportunities.
Response options
Please complete the following table.
You are able to add rows by using the “Add row” button at the bottom of the table.
(*dropdown appearance in this column is dependent on selections in this or other questions)
Identifier
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Portfolio where opportunity occurs*
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Issue area opportunity relates to*
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Opportunity type
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Primary opportunity driver
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Primary potential financial impact
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Select from:
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Select from:
- Banking (Bank) portfolio
- Investing (Asset manager) portfolio
- Investing (Asset owner) portfolio
- Insurance underwriting (Insurance company) portfolio
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Select from:
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Select from:
- Products and services
- Markets
- Resilience
- Reputation
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Select from drop-down options below
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Select from drop-down options below
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Company-specific description
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Time horizon
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Likelihood
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Magnitude of impact
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Are you able to provide a potential financial impact figure?
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Text field [maximum 2,500 characters]
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Select from:
- Short-term
- Medium-term
- Long-term
- Unknown
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Select from:
- Virtually certain
- Very likely
- Likely
- More likely than not
- About as likely as not
- Unlikely
- Very unlikely
- Exceptionally unlikely
- Unknown
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Select from:
- High
- Medium-high
- Medium
- Medium-low
- Low
- Unknown
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Select from:
- Yes, a single figure estimate
- Yes, an estimated range
- No, we do not have this figure
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Potential financial impact figure (currency)
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Potential financial impact figure - minimum (currency)
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Potential financial impact figure - maximum (currency)
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Explanation of financial impact figure
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Cost to realize opportunity
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Strategy to realize opportunity and explanation of cost calculation
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Comment
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Text field [maximum 2,500 characters]
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Text field [maximum 2,500 characters]
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Text field [maximum 2,500 characters]
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[Add row]
Primary opportunity driver (column 5)
Select one of the following options:
Products and services
- Development and/or expansion of financing products and solutions supporting sustainable forest risk commodity supply chains [F]
- Development and/or expansion of financing products and solutions supporting water security [W]
- Ability to diversify business activities
- Shift in consumer preferences
- Reputational benefits resulting in increased demand for products and services
- Other, please specify
Markets
- Access to new markets
- Use of public-sector incentives
- Access to new assets and locations needing insurance coverage
- Increased diversification of financial assets
- Reduced risk of asset stranding considered in investment decision making
- More timely preparation for investors in adhering to current and potentially stricter future regulation in relation to fiduciary duty
- Increased demand for funds that invest in companies that have positive environmental credentials
- Enhanced financial performance of investees as a result of being able to access new markets and develop new products to meet environmental consumer demand
- The development of new revenue streams from new/emerging environmental markets and products
- Improved ratings by sustainability/ESG indexes
- Increased demand for certified forest risk commodities [F]
- Increased demand for low water impact products and services [W]
- Other, please specify
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Resilience
- Resource substitutes/diversification
- New products and services related to ensuring resiliency
- New significant infrastructure investments [W]
- Other, please specify
Reputation
- Reputational benefits of sector in which our clients/investees operate
- Positive stakeholder feedback
- Positive media coverage related to financing/insuring of projects or activities with positive impacts on forests [F]
- Positive media coverage related to financing/insuring of projects or activities with positive impacts on water [W]
- Other, please specify
|
Primary potential financial impact (column 6)
Select one of the following options:
- Reduced direct costs
- Reduced indirect (operating) costs
- Reduced credit risk
- Requirement to hold reduced amounts of regulatory capital
- Increased revenues resulting from increased demand for products and services
- Increased revenues through access to new and emerging markets
- Increased revenues resulting from increased production capacity
- Increased access to capital
- More client deposits resulting in increased sources of funding
- Increased value of fixed assets
- Increased diversification of financial assets
- Increased portfolio value due to upward revaluation of assets
- Other, please specify
Requested content
General
- For climate change, this data is reported in C2.4a.
- For the purposes of this response, the opportunities identified should only be those which may pose substantive impacts in your business operations, revenue, or expenditure.
- Consider opportunities associated with financial products and services such as green and blue bonds, sustainable infrastructure, sustainable loans/mortgages, sustainable insurance products, products and services ensuring resiliency, specialty forests- and/or water-related risk advisory services and others, or opportunities your clients/investees are exploiting that have a positive impact on your portfolio (e.g. clients reducing costs through water efficiency resulting in less credit risk).
Portfolio where opportunity occurs (column 2)
- The options shown will be driven by the organizational activities you selected in C-FS0.7
- Select the portfolio where the forests- and/or water-related opportunity occurs.
Issue area opportunity relates to (column 3)
- Select whether the opportunity is related to forests or related to water. Some of the primary opportunity driver options are specific to one or the other; however, others could be either, therefore CDP requires you to indicate.
- As an illustrative example, if you have an opportunity to develop new revenue streams from new/emerging environmental markets and products:
- This would be forests-related if the emerging market is a trade finance product specifically for trade flows in certified commodities.
- This would be water-related if the emerging market is products and services with low water impacts, such as water efficient appliances.
Primary opportunity driver (column 5)
- Opportunity driver describes the source of the opportunity. Select an option that best describes the primary driver of the identified opportunity from the drop-down menu.
- The primary opportunity driver drop-down options are grouped into categories by opportunity type.
- Select an option from the drop-down menu that best describes the identified opportunity. If you select “Other”, please provide further details in column Company-specific description (column 7).
Primary potential financial impact (column 6)
- This column refers to the potential financial impact that the opportunity could have on your organization. The financial impacts of forests- and/or water-related opportunities on organizations are not always clear, and for many organizations there might be more than one financial impact associated with a forests- and/or water-related opportunity;
- Select the option that you deem to have the biggest impact. You can provide additional details on other financial impacts in the column Explanation of financial impact figure (column 15).
Company-specific description (column 7)
- Provide further contextual information on the opportunity driver, including more detail on the exact nature, location and/or regulation of the effect concerned, as well as any notable examples.
- Be sure to include company-specific detail, such as references to activities, portfolios, products or services specific to your company’s business.
Time horizon (column 8)
- Select the time horizon the potential impact could materialize over.
- Use the definitions of short-, medium- and long-term you provided in response to C2.1a.
Likelihood (column 9)
- Likelihood refers to the probability of the impact occurring within the time frame reported in column 6.
- Likelihood along with the magnitude are the building blocks for quantifying and prioritizing risk and opportunities.
- The terms used to describe likelihood are taken from the Intergovernmental Panel on Climate Change’s (IPCC) 2013 report and are consistent across all CDP information requests.
- As a guide to quantifying likelihood on a % basis, we suggest:
- Virtually certain (greater than 99% probability);
- Very likely (greater than 90% probability);
- Likely (greater than 66% probability);
- More likely than not (greater than 50% probability);
- About as likely as not (between 33% and 66% probability);
- Unlikely (less than 33% probability);
- Very unlikely (less than 10%);
- Exceptionally unlikely (less than 1% probability);
- Unknown.
Magnitude of impact (column 10)
- The magnitude describes the extent to which the impact, if it occurred, would affect your business. You should consider the business as a whole. This means that the potential magnitude of the impact can be a combination of the opportunity and the extent to which it applies throughout the organization.
- The ‘magnitude’ of the potential benefit arising from a financial value will vary in scale and metric from company to company, so it is not possible for CDP to accurately define the listed terms for magnitude. For example, two financial institutions may report a potential financial impact figure of $10m. For financial institution A this could represent a 0.2% increase in income, but a 2% increase in income for financial institution B.
- As it is not possible for CDP to accurately define terms for magnitude of impact, companies are asked to determine and report magnitude using a qualitative 5 point scale from High to Low. Factors to consider when classifying the magnitude of the impact on your organization include:
- The proportion of business units affected;
- The size of the impact on those business units;
- The dependency of the company on those units;
- The potential for shareholder or customer concern.
- An impact could have a relatively high magnitude for the company as a whole because of a large effect in one of these aspects or small effects in all four combining to create a larger impact.
- If the financial impact has not been assessed by your organization, please select ‘Unknown’.
Are you able to provide a potential financial impact figure? (column 11)
- If you are unable to provide a figure or an estimated range for financial impact, you may use column 15 “Explanation of financial impact” to provide a description of the impact in relative terms; for example, as a percentage relative to a stated or publicly available figure, or give a qualitative estimate of the financial impact.
Potential financial impact figure (currency) (column 12)
- This column is relevant if you selected “Yes, a single figure estimate”.
- Provide a single figure for the financial impact of the opportunity. This figure should be in the same currency that you selected in question C0.4.
Potential financial impact figure – minimum/maximum (currency) (columns 13, 14)
- These columns are relevant if you selected “Yes, an estimated range”.
- Provide the estimated range for the financial impact. This figure should be in the same currency that you selected in question C0.4.
- Potential financial impact figure – minimum (currency): Use this field to report the lower point of your estimated financial impact associated with the opportunity. For example, if the range is from US $5,000 to $50,000, ‘5,000’ should be reported here.
- Potential financial impact figure – maximum (currency): Use this field to report the upper point of your estimated financial impact associated with the opportunity. For example, if the range is from US $5,000 to $50,000, ‘50,000’ should be reported here.
Explanation of financial impact (column 15)
- Use this field to explain the figure(s) provided in 'Potential financial impact' (columns, 12, 13, 14).
- Describe how you arrived at this figure (or range), including:
- What approach was employed to calculate the figure;
- Any assumptions the figure is dependent on;
- The likely timescale for the financial impact.
- If 'No, we do not have this figure' was selected in column 12, use this column to provide a description of the financial impact in the relative terms (for example as a percentage relative to a stated or publicly available figure) or give a qualitative estimate of the financial impact. Otherwise, if you have no information about the financial impact, please state “The impact has not been quantified financially”.
Cost to realize opportunity (column 16)
- Provide a quantitative figure for the cost of your strategy to realize the opportunity. If there are no costs to realizing the opportunity, enter '0'. If the value you have reported is an estimate, please state this in column 17 (“Description of response and explanation of cost calculation”).
- This figure should be in the same currency that you selected for all financial information disclosed throughout your response in C0.4.
Strategy to realize opportunity and explanation of cost calculation (column 17)
- Provide details of your organization’s response to the opportunity.
- Include an example of company-specific response actions (activities, projects, products and/or services).
- Provide an explanation of how the figure for the cost to realize the opportunity (in column 16) was calculated, including the figures used in your calculation.
Explanation of terms
- Forests-related opportunity refers to the potential positive impacts resulting from the sustainable production or consumption of forest risk commodities of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition from unsustainable to sustainable production/consumption.
- Water-related opportunity refers to the potential positive impacts resulting from improved water security or an action to progress it (e.g. cost savings, access to new markets, supply chain resilience) of a portfolio company. For financial institutions this could be opportunities of financing and/or insuring operations to transition water users to decrease water withdrawals and/or consumption and manage pollution.
- Opportunity type:
- Products and services: opportunities related to innovation and development of new products and services that support the transition to a deforestation-free, water secure future.
- Markets: opportunities in new markets or types of assets that may help organizations to diversify their activities and better position themselves for the transition to a deforestation-free, water secure economy.
- Resilience: opportunities related to the development of adaptive capacity to respond to forests- and/or water-related challenges.
- Reputation: opportunities related to the potential of a positive public perception a positive impact on a company's reputation
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
FW-FS Business strategy
FW-FS Strategy and financial planning
(FW-FS3.1) Do you take forests- and/or water-related risks and opportunities into consideration in your organization’s strategy and/or financial planning?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Investors and data users are interested in forward-looking strategies and financial decisions that are driven by future market opportunities, public policy objectives, and corporate responsibilities. This question allows organizations to disclose whether they have considered and then acted to integrate forests- and/or water-related risks and opportunities into their business strategy.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issue area
|
Risks and opportunities related to this issue area taken into consideration in strategy and/or financial planning
|
Description of influence on organization’s strategy including own commitments*
|
Financial planning elements that have been influenced*
|
Description of influence on financial planning*
|
Explain why forests- and/or water-related risks and opportunities have not influenced your strategy and/or financial planning*
|
Forests*
|
Select from:
- Yes, we take these risks and opportunities into consideration in the organization’s strategy and financial planning
- Yes, we take these risks and opportunities into consideration in the organization’s strategy
- Yes, we take these risks and opportunities into consideration in our financial planning
- No, we do not take risks and opportunities into consideration
|
Text field [maximum 2,500 characters]
|
Select all that apply:
- Revenues
- Indirect costs
- Capital allocation
- Access to capital
- Assets
- Liabilities
- Provisions or general reserves
- Claims reserves
- None of the above
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
Water*
|
|
|
|
|
|
Requested content
General
- The comparable climate change questions are C3.3 and C3.4.
Risk and opportunities taken into consideration in strategy and/or financial planning (column 2)
- You should answer “Yes…” if forest- and/or water-related risks and opportunities have been considered and have already impacted your strategy or financial planning. As such, forest- and/or water-related issues are part of the “top line growth” strategy of the company.
- You should answer “Yes…” when one of the following considerations have influenced your strategy and/or financial planning:
-The need to understand how forest- and water-related risks and opportunities will impact your client/investee relationships, financial products and/or services; and/or
-The need to provide financial flows to capitalize on opportunities presented by the transition to a deforestation- free, water secure future.
- When reporting on the influence of forests-related risks and opportunities, financial services companies should take account of potential changes to their portfolios’ exposure to forests-related risks such as changing regulation and changing consumer tastes.
- When reporting on the influence of water-related risks and opportunities, financial services companies should take account of potential changes to their portfolios’ exposure to water-related risks such as drought, flood, water pollution, and increasing water prices.
- You should answer “No” if forest- and/or water-related risks and opportunities have had no influence on your company’s overall strategy for developing your business or your financial planning.
Description of influence on organization’s strategy, including own commitments (column 3)
- Describe how your strategy in this area has been influenced by forest- and/or water-related risks and opportunities and the time horizon(s) it covers.
- Specify if this includes making any public commitments, such as ensuring that all portfolios are free from commodity driven deforestation/conversion and any associated human rights risks, contributing to water security, or improving resilience to water-related events. Please also specify target dates and which of your portfolios are covered by these commitments.
- Include the most substantial strategic decision(s) in this area to date that have been influenced by the forest- and/or water-related risks and opportunities.
Description of influence on financial planning (column 5)
- Provide details on how forest- and/or water-related risks and opportunities have influenced the selected elements of your financial planning. Include a case study for at least one of the elements selected.
- Specify the time horizons this planning covers.
- If you selected “None of the above” in column 4, explain if there is another element of financial planning that has been influenced; or why forest- and/or water-related risks and opportunities have not yet influenced your financial planning.
Explanation of terms
- Strategy: In line with TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.
- Financial planning: in line with TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
- Access to capital: Capital investments provide sources of funding other than those resulting from a bank’s products and services. This includes equity and debt capital from investors and capital raised in the money markets.
- Assets: Entities functioning as stores of value and over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them, over a period of time (the economic benefits consist of primary incomes derived from the use of the asset and the value, including possible holding gains/losses, that could be realized by disposing of the asset or terminating it).
- Capital Allocation: refers to distributing and investing a company's financial resources in ways that will increase its efficiency, and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.
- Claims reserves: Balance sheet reserve specifically set aside by insurance companies to pay policyholders who have filed or are expected to file legitimate claims on their policies. Consider both reported but not settles (RBNS) and incurred but not reported (IBNR) reserves.
- Indirect costs: Also known as 'operating cost' or 'overheads'. This generally refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Liabilities: An obligation which requires one unit (the debtor) to make a payment or a series of payments to the other unit (the creditor) in certain circumstances specified in a contract between them.
- Provisions or general reserves: Balance sheet items representing funds set aside by the organization as assets to pay for anticipated future losses. For banks, a general provision is considered to be supplementary capital under the first Basel Accord.
- Revenue: Income arising in the course of an entity’s ordinary activities - before deducting costs for the goods/services sold and operating expenses to arrive at profit (adapted from the International Financial Reporting Standard).
FW-FS Scenario analysis
(FW-FS3.2) Has your organization conducted any scenario analysis to identify forests- and/or water-related outcomes?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Scenario analysis to inform business strategy is considered a valuable tool in transitioning to a deforestation-free, water-secure future. This question allows CDP data users to understand how scenario analysis has identified forests- and/or water-related outcomes for different possible or probable futures and how this has influenced business strategies.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issue area(s) | Scenario analysis conducted to identify outcomes for this issue area | Type of scenario analysis used* | Parameters, assumptions, analytical choices* | Description of outcomes for this issue area* | Explain how the outcomes identified using scenario analysis have influenced your strategy* | Explain why your organization has not conducted scenario analysis for this issue area and any plans to address this in the future* |
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Forests*
| Select from:- Yes, we have conducted scenario analysis and we have identified outcomes for this issue area
- Yes, we have conducted scenario analysis, but we have not identified any outcomes for this issue area
- No, we have not conducted any scenario analysis to identify outcomes for this issue area, but we plan to in the next two years
- No, we have not conducted any scenario analysis to identify outcomes for this issue area, and we don’t plan to in the next two years
| Select all that apply:- Climate-related
- Land-use change
- Water-related
- Socioeconomic
- Other, please specify
| Text field [maximum 2,500 characters] | Text field [maximum 1,500 characters] | Text field [maximum 1,500 characters] | Text field [maximum 2,500 characters] |
Water* | | | | | | |
Requested content
General
- For climate change, this data is reported in C3.2.
Scenario analysis conducted to identify outcomes for this issue area (column 2)
- If you select “Yes, we have conducted scenario analysis and we have identified outcomes for this issue area”, you will be presented with columns 2-5, requesting further information regarding the scenario analysis and the identified forests and/or water-related outcomes.
Parameters, assumptions, analytical choices (column 4)
- Briefly describe key parameters, assumptions, and important analytical choices.
- The parameters should include measurable factors which develop over time in the scenario such as GDP or demographic variables.
- Assumptions should include the key drivers of the scenario pathway, such as policy changes over the scenario time horizon or assumptions about changing precipitation patterns.
- Analytical choices should include the overarching approach to scenario-building. Crucially, this should cover the time horizons used, the models used, and the data sources. This could also detail whether the scenario(s) are quantitative, qualitative, or a mix.
Description of outcomes for this issue area (column 5)
- Describe possible or probable forests- and/or water-related outcomes associated with the scenario analysis.
- These may be possible or probable challenges or opportunities arising from, for example, land loss to desertification and soil degradation, land use change due to forest fires, policy-based water restrictions due to drought, disruption to operations due to changing precipitation patterns, or water stress due to population change.
Explain how the outcomes identified using scenario analysis have influenced your strategy (column 6)
- Describe your company’s response to the forests- and/or water-related outcomes described in column 5 and include the anticipated timescale for your responses.
- These should be strategic actions taken or already planned in response to the identification of possible or probable future scenarios and their implications on banking, investment and/or insurance underwriting activities.
Explanation of terms
- Scenario analysis: The process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.
- Outcomes: Scenario analysis enables decision makers to identify and evaluate potential outcomes for different scenarios and their effects on their organization, based on a variety of assumptions/input variables. The consequences may be forests and/or water-related themselves, or have implications for the governance of the organization, or for its wider business strategy.
Additional information
Credible, publicly available scenario analysis tools for assessing future water risks are WRI Aqueduct and WWF Water Risk Filter. Both tools combine different climate scenarios (IPCC Representative Concentration Pathways – RCP and IIASA Shared Socio-economic Pathways - SSP) to explore future water risks. In WRI Aqueduct, users can assess future risks of water stress (in terms of quantity only). The WWF Water Risk Filter scenarios cover physical risks such as scarcity, flooding, water quality, water-related ecosystem services, as well as regulatory and reputational risks.
FW-FS Products and services
(FW-FS3.3) Do any of your existing products and services enable clients to mitigate deforestation and/or water insecurity?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Achieving a 1.5-degree, deforestation-free, water-secure world will require massive investment in low carbon technologies, sustainable agricultural and water management practices. Only the financial sector can provide this. Investors and data users are interested in whether financial institutions are providing financial products and services to meet this investment challenge.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issue area(s) | Existing products and services that enable clients to mitigate deforestation and/or water insecurity | Explain why your organization does not offer products and services which enable clients to mitigate deforestation and/or water insecurity and any plans to address this in the future* |
---|
Forests* | Select from:- Yes
- No, but we plan to address this within the next two years
- No, and we do not plan to address this in the next two years
| Text field [maximum 2,500 characters] |
Water* | | |
Requested content
General
- For climate change, this data is reported in C-FS4.5.
- There are various circumstances in which a financial services company might consider that the use of its products and services by others has the potential to reduce deforestation and/or water insecurity. For instance, you should consider products such as green and blue bonds, impact investments, green loans, sustainability-linked loans, sustainable insurance products, specialty forests- and/or water-related risk advisory services and others.
(FW-FS3.3a) Provide details of your existing products and services that enable clients to mitigate deforestation and/or water insecurity.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS3.3 column 2.
Change from last year
New question
Rationale
Achieving a 1.5-degree, deforestation-free, water-secure world will require massive investment in low carbon technologies, sustainable agricultural and water management practices. Your response to this question will allow data users to see which products and services that mitigate deforestation and/or water insecurity financial institutions are providing to meet this investment challenge.
Response options
Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.
(*dropdown appearance in these columns is dependent on selections in this or other questions)
Product type*
|
Taxonomy or methodology used to classify product(s)
|
Description of product(s)
|
Product enables clients to mitigate*
|
Type of activity financed, invested in or insured*
|
Portfolio value (unit currency – as specified in C0.4)
|
% of total portfolio value
|
Select from:
Banking
- Corporate loans
- Retail loans
- Corporate real estate
- Retail mortgages
- Trade finance
- Asset finance
- Project finance
- Debt and equity underwriting
- Other, please specify
Investing
- Fixed Income
- Listed Equity
- Private Equity
- Real estate/Property
- Infrastructure
- Commodities
- Forestry
- Hedge funds
- Mutual funds
- Fund of funds
- Derivatives
- Other, please specify
Insurance
- Property & Casualty
- Construction & Engineering
- Agribusiness
- Motor
- Marine
- Life
- Health
- Reinsurance
- Other, please specify
|
Select from:
- Low-carbon Investment (LCI) Taxonomy
- Climate Bonds Taxonomy
- The EU Taxonomy for environmentally sustainable economic activities
- Evaluating the carbon-reducing impacts of ICT
- Green Bond Principles (ICMA)
- ISO 14040/44 Standards
- LMA Green Loan Principles
- LMA Sustainability Link Loans Principles
- Externally classified using other taxonomy or methodology, please specify
- Internally classified
|
Text field [maximum 2,500 characters]
|
Select all that apply:
- Deforestation
- Water insecurity
|
Select all that apply:
- Sustainable forest management [F]
- Forest protection [F]
- Forests restoration [F]
- Afforestation [F]
- Sustainable agriculture [F, W]
- Water supply and sewer networks infrastructure [W]
- Water treatment infrastructure [W]
- Wastewater treatment infrastructure [W]
- WASH services [W]
- Water resources and ecosystem protection [W]
- Flood/drought resilience [W]
- Other, please specify
|
Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
|
Percentage field [enter a percentage from 0-100]
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[Add row]
Requested content
General
- For climate change, this data is reported in C-FS4.5a.
Product type (column 1)
- The options shown will be driven by the organizational activities you selected in C-FS0.7.
- Select from the dropdown list the asset classes that the products/services fall under.
Taxonomy or methodology used to classify product(s) (column 2)
- As investors seek to increase the proportion of their portfolio invested in environment-friendly products there is an effort to establish standardized methodologies.
- If you offer products enabling clients to have beneficial impacts on forests and/or water, which have been classified using an external taxonomy or methodology not listed, select “Externally classified using other taxonomy or methodology, please specify” and provide a label for the taxonomy or methodology.
- If the products you offer have been classified internally as enabling clients to have beneficial impacts on forests and/or water, select “Internally classified” and describe your internal classification system in column 3.
Product enables clients to mitigate (column 4)
- Select all issues the product(s) helps to mitigate.
- If you have different products mitigating forests- and water-related issues, you may add rows to describe the products separately.
Type of activity financed, invested in or insured (column 5)
- Indicate which type of sustainable activities or solutions your financing, investments and insurance products and services are covering
-Sustainable forest management is the process of managing a forest for achieving the continuous production of desired forest products and services without reducing its inherent values and future productivity, avoiding undesirable social-environmental effects.
-Forest protection refers to activities aimed at protecting the integrity of existing forest ecosystems.
-Forests restoration is the process of assisting the recovery of an ecosystem that has been degraded, damaged, or destroyed.
-Afforestation is the establishment of forest through planting and/or deliberate seeding on land that, until then, was not classified as forest, what implies a transformation of land use from non-forest to forest.
-Sustainable agriculture refers to agricultural practices which ensure the long-term supply of crops or livestock, with minimal negative environmental impact.
-Water supply and sewer networks infrastructure are important for water access and for the treatment of wastewater prior to its discharge to the environment. Improvements to water supply and sewer networks can reduce pipe leakage and water losses, improve the quality of water delivered to users, and reduce sewer overflows which lead to water pollution.
-Water treatment infrastructure allows water to be treated to a drinking standard or another appropriate treatment level for use.
-Wastewater treatment infrastructure is important for the removal of hazardous, toxic and otherwise harmful substances from wastewater prior to its discharge to the environment.
-WASH services refer to the universal provision of safely managed water, sanitation, and hygiene services.
-Water resources and ecosystem protection includes watershed remediation, habitat restoration, and ecosystem preservation.
-Flood/drought resilience is important for managing the impacts of climate change. Resilience can be built in a variety of ways, such as improving urban drainage systems, securing multiple/diverse water sources, or building monitoring capabilities.
% of total portfolio value (column 7)
- Provide a percentage value for the proportion of products and/or services that you classify as sustainable, resilience-enhancing, or otherwise beneficial for forests and/or water systems in relation to your total portfolio value.
Explanation of terms
- Mitigation: Actions that limit the magnitude or rate of deforestation and/or water security.
- Asset finance: Financial products and services where the company’s balance sheet assets, including short-term investments, inventory and accounts receivable are used to borrow money, typically on a short-term basis. The company borrowing the funds must provide the lender with a security interest in the assets.
- Corporate loans: Loans and credit facilities extended to companies. Includes both term loans and revolving credit facilities. Includes both bilateral loans and syndicated loans. Typically, corporate clients are able to negotiate more bespoke terms than retail customers.
- Corporate real estate: Financial products or services used by companies to finance investments in property used for commercial purposes. The company borrowing the funds must provide the lender with a security interest in the property.
- Project finance: Financial products and services used for the financing of long-term infrastructure and industrial projects. The debt is paid back from the cash flow generated from the project.
- Retail loans: Loans and credit facilities extended to individual personal banking customers, including credit cards. Typically, retail customers have to enter into facilities on pre-determined terms and conditions, rather than being able to negotiate bespoke terms.
- Retail mortgages: A home loan extended to individual personal banking customers secured on a specified property. Typically used by homebuyers to spread the cost of their purchase over the long-term.
- Trade finance: Financial products and services used by companies to facilitate international trade transactions. Includes products which make it possible or easier for exporters and importers to transact such as letters of credit and export credit.
- Commodities: Involves buying, selling, or trading a raw product, such as oil, gold, or coffee.
- Derivatives: Securities that derive their value from an underlying asset or benchmark.
- Fixed income: A type of investment security that pays investors fixed interest or dividend payments until its maturity date.
- Forestry: investment in forest lands, either directly (direct ownership of forest land) or indirectly (through e.g. a timber fund).
- Fund of funds: An investment fund that invests in other types of funds.
- Hedge funds: Alternative investments using pooled funds that employ different strategies to earn active returns, or alpha, for their investors.
- Infrastructure: A form of “real assets,” which contain physical assets we see in everyday life like bridges, roads, highways, sewage systems, or energy.
- Listed equity: Shares of ownership issued by publicly-traded companies.
- Mutual funds: Investment using pooled funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
- Private equity: Alternative form of private financing in which funds and investors invest directly in companies.
- Real estate/property: The purchase, ownership, management, rental and/or sale of real estate (e.g. land, buildings, infrastructure).
- Agribusiness insurance: Protection designed to protect businesses that earn all or most of their revenue from agriculture.
- Construction & engineering insurance: Protection that provides financial compensation for covered losses to a building or structure.
- Health insurance: Protection that covers the whole or a part of the risk of a person incurring medical expenses.
- Life insurance: Protection which guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime.
- Marine insurance: Protection that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination.
- Motor insurance: Protection for cars, trucks, motorcycles, and other road vehicles.
- Property & casualty insurance: Protection that provides either property protection coverage or liability coverage for property owners.
Additional information
- The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment. Further details on the guidelines for issuing green bonds are available here.
- The Green Loan Principles (GLP) build on and refer to the Green Bond Principles (GBP) of the International Capital Market Association (ICMA), with a view of promoting consistency across financial markets. The green loan market aims to facilitate and support environmentally sustainable economic activity.
FW-FS Policy framework
(FW-FS3.4) Does the policy framework for the portfolio activities of your organization include forests- and/or water-related requirements that clients/investees need to meet?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Considering forests- and/or water-related issues in a policy framework is an important element of business strategy and a signal of how deeply forests- and/or water-related issues are embedded in an organization’s processes. For these reasons, data users are interested in understanding whether organizations in the financial sector have integrated forests- and/or water-related requirements for clients/investees into their existing policy frameworks for banking, investment and insurance underwriting activities.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issue area(s)
|
Policy framework includes this issue area
|
Explain why your organization does not include this issue area in the policy framework and any plans to address this in the future*
|
Forests*
|
Select from:
- Yes
- No, but we plan to include this issue area within the next two years
- No, and we do not plan to include this issue area in the next two years
|
Text field [maximum 2,500 characters]
|
Water*
|
|
|
Requested content
General
- For climate change, this data is reported in C-FS3.6.
- Indicate whether your organization considers forest and/or water-related issues in your policy framework that includes criteria that clients/investees should meet if they are to access financial services.
Explanation of terms
- Policy framework: The collection of written policies setting out rules that guide an organization’s decision-making processes in relation to its financial activities. Examples of such policies could include credit policy, risk policy, investment, underwriting policy, etc.
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decisions. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(FW-FS3.4a) Provide details of the policies which include forests- and/or water-related requirements that clients/investees need to meet.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS3.4.
Change from last year
New question
Rationale
To help manage risks associated with forest risk commodities and water security, organizations should integrate forests- and water-related issues into their existing policy framework. These policies may apply across the organization and may be based on sectors, geographies, business lines, asset classes or other. Although the uptake of forests- and water-related policies is increasing, their implementation varies across organizations. This question helps data users understand how financial institutions integrate forests- and water-related issues into their policies and what criteria is required of their clients/investees.
Response options
Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.
(*column/row/dropdown appearance is dependent on selections in this or other questions)
Portfolio*
|
Issue area(s) the policy covers*
|
Type of policy*
|
Portfolio coverage of policy
|
Policy availability
|
Attach documents relevant to your policy
|
Criteria required of clients/investees*
|
Value chain stages of client/investee covered by criteria
|
Select from:
- Banking (Bank)
- Investing (Asset manager)
- Investing (Asset owner)
- Insurance (Insurance company)
|
Select from:
|
Select all that apply:
Banking:
- Credit/lending policy
- Risk policy
- Underwriting policy
- Policy related to other products and services
- Engagement policy
- Pricing policy
- Other, please specify
Investing:
- Credit policy
- Risk policy
- Sustainable/Responsible Investment Policy
- Investment policy/strategy
- Policy related to other products and services
- Active ownership policy
- Pricing policy
- Other, please specify
Insurance:
- Risk policy
- Insurance underwriting policy
- Policy related to other products and services
- Engagement policy
- Pricing policy
- Other, please specify
|
Percentage field [enter a percentage from 0-100]
|
Select from:
- Publicly available
- Not publicly available
|
[Attachment functionality]
|
Select all that apply from drop-down options below
|
Select from:
- Direct operations only
- Direct operations and supply chain
|
Timeframe for compliance with policy criteria
|
Industry sectors covered by the policy
|
Forest risk commodities covered by the policy*
|
Forest risk commodity supply chain stage covered by the policy*
|
Exceptions to policy based on*
|
Explain how criteria coverage and/or exceptions have been determined
|
Select from:
- Complying with criteria is a pre-requisite for business
- Clients/investees must be compliant within the next year
- Clients/investees must be compliant within the next 2 years
- Clients/investees must be compliant within the next 5 years
- No timeframe
|
Select all that apply:
- Energy
- Materials
- Capital Goods
- Commercial & Professional Services
- Transportation
- Automobiles & Components
- Consumer Durables & Apparel
- Consumer Services
- Retailing
- Food & Staples Retailing
- Food, Beverage & Tobacco
- Household & Personal Products
- Health Care Equipment & Services
- Pharmaceuticals, Biotechnology & Life Sciences
- Software & Services
- Technology Hardware & Equipment
- Semiconductors & Semiconductor Equipment
- Telecommunication Services
- Media & Entertainment
- Utilities
- Real Estate
- Other, please specify
|
Select all that apply:
- All agricultural commodities
- Timber products
- Palm oil
- Cattle products
- Soy
- Rubber
- Cocoa
- Coffee
|
Select all that apply:
- Production
- Processing
- Trading
- Manufacturing
- Retailing
|
Select all that apply:
- Geography
- Subsidiaries
- Industry sector
- Line of Business
- Products and services
- Transaction size
- Segment of the value chain
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Criteria required of clients/investees (column 8)
Select all that apply from the following options:
Forests-related criteria
- Have a documented forests policy
- Commit to no deforestation/conversion of other natural ecosystems
- Commit to no development on peat regardless of depth
- Restore and compensate to address past deforestation or conversion
- Avoid negative impacts on threatened and protected species and habitats
- Commit to no land clearance by burning or clearcutting
- Commit to no conversion of High Conservation Value areas
- Commit to no conversion of High Carbon Stock forests
- Collaborate in landscapes/jurisdictions to progress shared sustainable land use goals
- Commit to no activities in IUCN protected areas categories I – IV
- Commit to no activities in Ramsar sites.
- Commit to recognition of legal and customary land tenure rights
- Secure Free, Prior and Informed Consent (FPIC) of indigenous peoples and local communities
- Adopt the UN International Labour Organization principles
- Have transparent and accessible mechanisms to resolve grievances and remediate any adverse impacts on indigenous people and local communities
- Comply with all applicable local, national and international laws and regulations
- Restricting sourcing of forest risk commodities to verified legal and known sources
- Set a third-party certification target(s)
- Use credible third-party certification schemes for forest risk commodities produced/sourced
- Set a traceability target(s)
- Trace forest risk commodities to a point at which deforestation-free status can be assessed
- Disclose forests-related information publicly
- Other, please specify
|
Water-related criteria
- Have a documented water policy
- Comply with all applicable local, national and international laws and water regulations
- Meeting minimum, sector-specific discharge treatment processes
- Commit to safely managed Water, Sanitation and Hygiene (WASH) in the workplace
- Monitor water withdrawals, discharges and water quality parameters
- Disclose water-related information publicly
- Reduce water withdrawals and/or consumption
- Reduce/eliminate water pollution
- Improve water efficiency
- Set a water withdrawal and/or consumption reduction target
- Set a water pollution reduction target
- Conduct a water-related risk assessment that includes water availability and water quality at a basin/catchment level
- Engage/support their suppliers to minimize negative impacts on water
- Collaborate with other stakeholders (companies, NGOs, communities, local governments) within a basin to manage water
- Set a water-related science-based target
- Other, please specify
|
Requested content
General
- For climate change, this data is reported in C-FS3.6a.
Portfolio (column 1)
- The options shown will be driven by the organizational activities you selected in C-FS0.7.
- You should add a row for each portfolio in the dropdown list for which you have a policy for. You can add additional rows for the same portfolio to differentiate varying policy types if required.
Issue area(s) the policy covers (column 2)
- Select which issue area is included in the policy.
- You should add a row for each issue area that is included in the policy. The selection made in this column will determine which selections are available in subsequent columns.
- If “Forests” is selected, you will be presented with columns 11 and 12, requesting further information.
Type of policy (column 3)
- The options shown will be driven by the portfolio selected in column 1.
- Select all the policies into which forests- or water-related issues are integrated.
- If there are policies within your organization’s policy framework into which forests- and/or water-related issues are integrated, and which are not well represented by any of the drop-down options, select “Other, please specify” and provide a label.
Portfolio coverage of policy (column 4)
- Specify the % coverage i.e. how much of your portfolio the policy applies to, based on either total or outstanding commitments, premiums, and/or committed capital.
Policy availability (column 5)
- Indicate whether the selected policy is publicly available or not.
Criteria required of clients/investees (column 7)
- Select all the criteria which you require from your clients/investees. To ensure your response is accurate, refer to the "Explanation of terms" section for this question.
- Criteria can refer to actions that must be taken, requirements that must be fulfilled, or to other possible criteria which clients/investees must fulfil.
- Select “Other, please specify” for any criteria not listed and provide a label.
- If different criteria apply to different specific subsets of clients/investees (for example, different requirements for companies in the Food, Beverage & Tobacco sector compared to companies in the Consumer Durables & Apparel sector) you are able to add rows for each subset of clients/investees and select the criteria in the relevant rows.
Value chain stages of client/investee covered by criteria (column 8)
- Indicate whether the criteria listed in column 7 is applicable to clients/investees operational activities only, or whether the criteria must also be fulfilled in their supply chain.
Timeframe for compliance with policy criteria (column 9)
- If your timeframe for compliance does not match any of the options exactly, select the closest option.
Industry sectors covered by the policy (column 10)
- Indicate the industry sectors the criteria apply to, as stated in the written policy.
Forest risk commodities covered by the policy (column 11)
- Indicate the forest risk commodities the criteria apply to, as stated in the written policy.
- You are able to select “All agricultural commodities” if either this coverage is stated explicitly in the policy or if the commodities covered by the policy encompass all agricultural commodities you have exposure to within your portfolio.
Forest risk commodity supply chain stage covered by the policy (column 12)
- Indicate for which stages in the forest risk commodity supply chain the criteria apply to, as stated in the written policy.
Exceptions to policy based on (column 13)
- This column appears if you enter any value lower that 100% in column 4.
- If the policy does not apply to all of your portfolio, indicate the basis for the exceptions. For example, if the policy only applies on transactions above $10m, select “Transaction size”.
- Give further details of the exception criteria you select in column 14.
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is your entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
- The following forest risk commodities are asked about in this questionnaire:
-Timber products: This includes all solid timber as well as products made from processed wood fiber such as paper, packaging, cardboard and specialty fibers (e.g., viscose). It also includes timber products used for biomass.
-Palm oil: This includes crude palm oil, palm kernel oil, and all of its derivatives. Please note that palm oil used for biofuel production is also included in this category.
-Cattle products: This includes all food products containing beef, all clothing, furniture and accessories that are made of leather, tallow, and all other products derived from cattle. Please note that tallow used for biofuel production is also included in this category. Dairy products are not included in this category.
-Soy: This includes all meal or oil containing soy and any derivatives that are obtained from soy. Please note that soy used for biofuel production is also included in this category.
-Rubber: This includes all rubber products deriving from natural rubber production. Please note that the tire industry is included in this category.
-Cocoa: This includes all food or other products containing cocoa, cocoa derivatives such as cocoa butter or pectin, or any products derived from cocoa husks such as animal feed or potash.
-Coffee: This includes all products from or derived from coffee plants, including the beans, cherries and husks.
- Forest risk commodity supply chain stage: CDP’s forest program requests forests-related disclosures from companies with business activities corresponding to the following stages of forest risk commodity supply chains:
-Production: This is the first stage of the supply chain and generally refers to the production of raw agricultural and forests products by farm owners, smallholders, and communities. Vertically integrated companies are also involved in producing activities if they own or manage land used for the production of forests risk commodities.
-Processing: This encompasses the initial transformative activities that will add value to raw materials. For example, the production of crude palm oil from crushed fruit, the production of soybean oil and soybean meal from soybean, the initial processing of timber products in mills (i.e., sawmills, plywood and veneer mills, pulp and paper mills), the slaughtering of cattle and the processing of raw hide into leather. Further processing activities in the form of refining and fractionation should be considered in the manufacturing stage.
-Trading: Businesses that purchase and sell raw or primary processed agricultural or forestry materials to either domestic or export markets. This includes the shipment, transport and storage of the forest risk commodities.
-Manufacturing: This includes the production of final ingredients for the food, feed and fuel sectors from raw or processed materials.
-Retailing: Businesses that sell products directly to individual consumers.
- Forests policy: A statement by a portfolio organization specifying the goals or targets that it intends to meet or the actions it intends to take in regards to its management of forest-related issues.
- Natural ecosystem: An ecosystem that substantially resembles - in terms of species composition, structure, and ecological function - one that is or would be found in a given area in the absence of major human impacts. This includes human-managed ecosystems where much of the natural species composition, structure, and ecological function are present (AFi, 2019).
- No-conversion ("or conversion-free"): Commodity production, sourcing, or financial investments in commodities that do not cause or contribute to the conversion of natural ecosystems (AFi, 2019).
- No-deforestation ("or deforestation-free"): Commodity production, sourcing, or financial investments that do not cause or contribute to deforestation (AFi, 2019).
- Peatland: An area with or without vegetation with a naturally accumulated peat layer at the surface, while peat is defined as accumulated material consisting of at least 30% (dry mass) of dead organic material (Joosten and Clarke, 2002).
- High Carbon Stock forests: This is the High Carbon Stock Approach (HCSA) classification of forested areas that should be protected based on high carbon stock, importance to local communities or high biodiversity value. The HCSA distinguishes high carbon stock forests from degraded lands that may be developed.
- High Conservation Value: Biological, ecological, social or cultural values which are considered outstandingly significant or critically important, at the national, regional or global level, as defined by the High Conservation Values (HCV) Resource Network.
- IUCN protected areas categories I – IV: IUCN protected area management categories classify protected areas according to their management objectives. The categories are recognized by international bodies such as the United Nations and by many national governments as the global standard for defining and recording protected areas. Categories I to IV includes: Ia Strict Nature Reserve, Ib Wilderness Area, II National Park, III Natural Monument or Feature, IV Habitat/Species Management Area, and V Protected Landscape/ Seascape (IUCN, 2013).
- Ramsar sites: Wetland sites designated to be of international importance under the Convention on wetlands, known as the Ramsar Convention.
- Free, Prior and Informed Consent (FPIC): A community right to give or withhold its consent to proposed projects that may affect the lands they customarily own, occupy or otherwise use, as recognized by several international instruments including the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), International Labour Organization's (ILO) Convention 169, and the Convention on Biological Diversity (CBD) (AFi, 2019).
- Threatened and protected habitats: All habitats considered threatened or otherwise protected by national or subnational laws and regulation, as well as international multilateral agreements, including protected areas, World Natural Heritage Sites, Natura 2000 sites and other similar areas.
- Threatened and protected species: All species listed on IUCN’s Red List of Threatened Species, as well as other species considered threatened or otherwise protected by national or subnational laws and regulation.
- Third-party certification: When a certification process is carried out by an independent organization to ensure that environmental and social criteria have been met.
- Traceability: The ability to follow a product or its components through stages of the supply chain (e.g., production, processing, manufacturing, and distribution) (AFi, 2019).
- Safely managed WASH services: The universal provision of safely managed water, sanitation, and hygiene services has dedicated targets within the Sustainable Development Goals (SDG 6.1 and 6.2). As a minimum, this disclosure refers to a company’s tracking of its provision of drinking water for all workers, available when needed and from sources compliant with faecal and chemical standards, as well as sanitation facilities where excreta are safely disposed in situ or transported and treated offsite.
- Science-based target: Measurable, actionable, and time-bound targets, based on the best available science, that allow actors to align with Earth’s limits and societal sustainability goals (adapted from the Science Based Targets Network).
- Water availability: The natural runoff (through groundwater and rivers) minus the flow of water that is required to sustain freshwater and estuarine ecosystems and the human livelihoods and well-being that depend on these ecosystems. Water availability typically varies within the year and also from year to year. Water availability might be reduced by decreases in both the water quantity and quality of water resources (adapted from the CEO Water Mandate's "Corporate Water Disclosure Guidelines").
- Water consumption: The amount of water that is drawn into the boundaries of an organization and not discharged back to the water environment or a third party over the course of a reporting year.
- Water discharge: The sum of effluents and other water leaving the boundaries of the organization and released to surface water, groundwater, or third parties over the course of the reporting period (adapted from GRI Standard 306-1, 2016).
- Water efficiency: A measure of economic value produced from water withdrawals. This is often calculated as revenue (or other financial metric) per water withdrawal or use volume.
- Water policy: A statement of an organization’s water-related commitments, and the actions that will achieve them, that applies to all its activities.
- Water quality: Refers to the physical, chemical, biological and organoleptic (taste-related) properties of water (see CDP’s definition for “Good quality freshwater”) (adapted from the CEO Water Mandate's "Corporate Water Disclosure Guidelines").
- Water regulations: Regulations that aim to prevent overuse, contamination and other detrimental activities.
- Water withdrawal: The sum of all water drawn into the boundaries of an organization from all sources for any use over the course of a reporting period.
Additional information
For further information on forests-related commitments types and guidelines, please refer to: Weber, K., WaltherThoß, J., & Fleckenstein, M. (2016). Deforestation-free supply chains. Concepts and implications. WWF Deutschland. Berlin.
For recommendations and information on setting a strong policy on deforestation, conversion, and associated human rights risks, please refer to Phase 2 of the Finance Sector Roadmap (Finance & Deforestation Advisory Group, 2021).
FW-FS Financing agreements
(FW-FS3.5) Does your organization include covenants in financing agreements to reflect and enforce your forests- and/or water-related policies?
Question dependencies
This question only appears if you select “Banking” in response to
C-FS0.7 and you select an industry sector that has a potentially critical
impact on forests and/or water security in column 4 of the same question.
Change from last year
New question
Rationale
Banks are able to influence their clients through requirements within the terms of financing agreements, and with the option of a default being triggered should there be a failure to comply. Data users are interested in whether banks are using this method to promote action on forests- and/or water-related performance. The potential benefits include an improved credit profile accompanied by access to alternative pools of capital.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issue area(s)
|
Covenants included in financing agreements to reflect and enforce policies for this issue area
|
Explain how the covenants included in financing agreements relate to your policies for this issue area*
|
Explain why your organization does not include covenants for this issue area in financing agreements and any plans to address this in the future*
|
Forests*
|
Select from:
- Yes
- No, but we plan within the next two years
- No, and we do not plan to in the next two years
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
Water*
|
|
|
|
Requested content
General
- For climate change, this data is reported in C-FS3.8.
Explain how the covenants included in financing agreements relate to your policies for this issue area (column 3)
- This column is only presented if “Yes” is selected in column 2
- Provide a brief description of how the covenants and clauses you include in financing documents relate to your forests- and/or water-related policies.
- Outline which types of clients you use covenants with, and why.
- Provide an indication of the scale at which you are including these types of covenants, and whether the scale is substantive to your organization.
Explanation of terms
- Financing agreements: Legal documents defining the terms and conditions of a financing product or service between your organization, for example as lender, and your client, for example as borrower.
FW-FS Engagement
FW-FS Engagement with clients/investees
(FW-FS4.1) Do you engage with your clients/investees on forests- and/or water-related issues?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Most of financial institutions’ environmental impact occurs in their portfolio(s) – via the activities they finance and/or insure. In order to achieve a deforestation-free and water-secure future, financial institutions must engage with their clients/investees on forests- and water-related issues. This question seeks to ascertain which companies are engaging in the best practice of working with clients/investees to reduce negative environmental impacts.
Response options
Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.
(*column/row appearance is dependent on selections in this or other questions)
Clients/investees and issue area the engagement relates to
|
We engage with clients/investees on this issue area
|
Explain why you do not engage with your clients/investees on the issue area and any plans to address this in the future*
|
Clients – Forests*
|
Select from:
- Yes
- No, but we plan to within the next two years
- No, and we do not plan to in the next two years
|
Text field [maximum 2,500 characters]
|
Clients – Water*
|
|
|
Investees – Forests*
|
|
|
Investees – Water*
|
|
|
Requested content
General
- For climate change, this data is reported in C12.1.
- Consider your engagement activities with customers/clients and investee companies which encourage better disclosures and better practices around forests- and/or water-related issues.
- You can provide further details in FW-FS4.1a and FW-FS4.1b.
Clients/investees and issue area the engagement relates to (column 1)
- The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7.
- Each row corresponds to engagement with clients or investees on forests- or water-related issues. Please respond to all rows.
(FW-FS4.1a) Give details of your forests- and/or water-related engagement strategy with your clients.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS4.1 in column 2 for any of the rows with “Clients” in column 1.
Change from last year
New question
Rationale
This question enables transparency regarding client engagement processes. As the majority of most financial institutions’ environmental risks and impacts occur in their portfolio(s), data users are interested in understanding how financial institutions are working with their clients to drive best practice and ameliorate forests- and water-related issues.
Response options
Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.
(*dropdown appearance is dependent on selections in this or other questions)
Type of clients*
|
Issue area this engagement relates to*
|
Type of engagement
|
Details of engagement
|
Portfolio coverage of engagement
|
Rationale for the coverage of your engagement
|
Impact of engagement, including measures of success
|
Select from:
- Clients of Banks
- Clients of Asset Managers (Asset owners)
- Clients of Insurers
|
Select from:
|
Select from:
- Education/information sharing
- Collaboration & innovation
- Engagement & incentivization (changing client behavior)
- Other, please specify
|
Select all that apply:
See drop-down options below
|
Percentage field [enter a percentage from 0-100]
|
Select from:
- Non-targeted engagement
- Engagement targeted at clients with increased forest-related risks [F]
- Engagement targeted at clients with increased forests-related opportunities [F]
- Engagement targeted at clients with increased water-related risks [W]
- Engagement targeted at clients with increased water-related opportunities [W]
- Engagement targeted at clients currently not meeting forests-related policy requirements [F]
- Engagement targeted at clients currently not meeting water-related policy requirements [W]
- Engagement targeted at clients with the highest potential impact on forests [F]
- Engagement targeted at clients with the highest potential impact on water security [W]
- Engagement targeted at clients with the highest dependencies on forests [F]
- Engagement targeted at clients with the highest dependencies on water security [W]
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Details of engagement (column 4)
Education/information sharing
- Run an engagement campaign to educate clients about your expectations of them in relation to their impact on forests [F]
- Run an engagement campaign to educate clients about your expectations of them in relation to their impact on water security [W]
- Run an engagement campaign to educate clients about how your financing/insurance products can help them access opportunities related to reducing forests-related impacts [F]
- Run an engagement campaign to educate clients about how your financing/insurance products can help them access opportunities related to reducing water security-related impacts [W]
- Engage with clients on measuring exposure to forests-related risk [F]
- Engage with clients on measuring exposure to water-related risk [W]
- Other, please specify
Collaboration & innovation
- Collaborate with clients to develop their certification/traceability targets [F]
- Collaborate with clients to develop their water consumption/withdrawal/pollution reduction targets [W]
- Collaborate with clients to develop their water security-related strategy and implementation plan [W]
- Collaborate with clients to encourage water recycling/re-use [W]
- Run a campaign to encourage innovation to reduce forests-related impacts [F]
- Run a campaign to encourage innovation to reduce water-related impacts [W]
- Other, please specify
|
Engagement & incentivization (changing client behavior)
- Offer financial incentives for clients managing forests-related issues [F]
- Offer financial incentives for clients managing water-related issues [W]
- Encourage better forests-related disclosure practices [F]
- Encourage better water-related disclosure practices [W]
- Encourage customers to switch to less resource-intensive methods of accessing your services [F]
- Encourage clients to obtain third-party certifications to verify positive impacts on forests [F]
- Encourage clients to obtain third-party certifications to verify positive impacts on water security [W]
- Encourage clients to engage with suppliers to improve their capacity to comply with the company’s forests-related polices [F]
- Encourage clients to engage with suppliers to improve their capacity to comply with the company’s water-related polices [W]
- Avoid or divest from companies continuing to fail to meet forests-related expectations [F]
- Avoid or divest from companies continuing to fail to meet water-related expectations [W]
- Avoid or divest from companies that pose an unacceptable level of forests-related risks [F]
- Avoid or divest from companies that pose an unacceptable level of water-related risks [W]
- Other, please specify
|
Requested content
General
- For climate change, this data is reported in C-FS12.1b.
- Add a row for each type of client, issue area and type of engagement.
Type of clients (column 1)
- The options shown will be driven by the organizational activities you selected in C-FS0.7
- You should add a new row for each type of client you engage with. You can add additional rows for the same type of client to differentiate varying types of engagement if required.
Type of engagement (column 3)
- Select one type of engagement activity your organization participates in from the drop-down options.
- If you select “Other, please specify”, provide a label for the “Type of engagement”
- Add another row to provide information about additional types of engagement:
- Education/information sharing: Engagement activities where the aim of is to educate and inform clients but not necessarily instigate any specific action.
- Collaboration & innovation: Engagement activities where the aim is to encourage clients to take specific actions to improve their forests- and/or water-related impacts. This can include formal campaigns as well as informal opportunities to reduce detrimental impacts.
- Engagement & incentivization (changing client behavior): Engagement activities where the aim is to change client behaviour so that forests- and/or water-related issues are ameliorated. This can include offering specific incentives for your clients to meet forests- and/or water-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial.
Details of engagement (column 4)
- Expand on the “Type of engagement” (selected in column 3) your organization participates in by selecting the relevant details of engagement from the drop-down.
Portfolio coverage of engagement (column 5)
- Indicate the coverage i.e. how much of your banking, investing (asset manager) and/or insurance portfolio you have engaged with in this way, based on either total or outstanding commitments, premiums, and/or committed capital.
Rationale for the coverage of your engagement (column 6)
- Client engagement can be either untargeted (undertaken generally with all clients or undertaken with a selection of clients without a basis for the selection) or targeted at specific clients, such as clients in a particular sector with increased forest- and/or water-related risks relative to other sectors. There is a place for both, but targeted engagement may be more effective at driving change in the real economy.
- Select the option which reflects your rationale for undertaking this engagement activity with the clients you have engaged with in this way.
Impact of engagement, including measures of success (column 7)
- Describe the impact of this engagement and how you measure its success.
- Include a description of any engagement activity you undertake with clients to manage forests- and/or water-related issues.
- Please provide examples of positive outcomes achieved. For example, this could include clients adopting targets in relation to third-party certification or water efficiency in response to your engagement with them.
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is your entire collection of your core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
(FW-FS4.1b) Give details of your forests- and/or water-related engagement strategy with your investees.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS4.1 in column 2 for any of the rows with “Investees” in column 1.
Change from last year
New question
Rationale
This question enables transparency regarding investee engagement processes. As the majority of financial sector organizations’ environmental risks and impacts occur in their portfolio(s), data users are interested in understanding how organizations are working with their investees to drive best practice and ameliorate forests- and/or water-related issues.
Response options
Please complete the following table. You are able to add rows by using the “Add row” button at the bottom of the table.
(*column/dropdown appearance is dependent on selections in this or other questions)
Issue area this engagement relates to*
|
Type of engagement
|
Details of engagement
|
Investing (asset manager) portfolio coverage of engagement*
|
Investing (asset owner) portfolio coverage of engagement*
|
Rationale for the coverage of your engagement*
|
Impact of engagement, including measures of success
|
Select from:
|
Select from:
- Education/information sharing
- Collaboration & innovation
- Engagement & incentivization (changing investee
behavior)
- Other, please specify
|
Select all that apply:
See drop-down options below
|
Percentage field [enter a percentage from 0-100]
|
Percentage field [enter a percentage from 0-100]
|
Select from:
- Non-targeted engagement
- Engagement targeted at investees with increased forest-related risks [F]
- Engagement targeted at investees with increased forests-related opportunities [F]
- Engagement targeted at investees with increased water-related risks [W]
- Engagement targeted at investees with increased water-related opportunities [W]
- Engagement targeted at investees currently not meeting forests-related policy requirements [F]
- Engagement targeted at investees currently not meeting water-related policy requirements [W]
- Engagement targeted at investees with the highest potential impact on forests [F]
- Engagement targeted at investees with the highest potential impact on water security [W]
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Details of engagement (column 3)
Education/information sharing
- Engage with investees on measuring exposure to forests-related risk [F]
- Engage with investees on measuring exposure to water-related risk [W]
- Run an engagement campaign to educate investees about your expectations of them in relation to their impact on forests [F]
- Run an engagement campaign to educate investees about your expectations of them in relation to their impact on water security [W]
- Run an engagement campaign to educate investees about how your financing/insurance products can help them access opportunities related to reducing forests-related impacts [F]
- Run an engagement campaign to educate investees about how your financing/insurance products can help them access opportunities related to reducing water security-related impacts [W]
- Other, please specify
Collaboration and innovation
- Collaborate with investees to develop their certification/traceability targets [F]
- Collaborate with investees to develop their water consumption/withdrawal/pollution reduction targets [W]
- Run a campaign to encourage innovation to reduce forests-related impacts [F]
- Run a campaign to encourage innovation to reduce water-related impacts [W]
- Carry out collaborative engagements with other investors or institutions [F, W]
- Other, please specify
|
Engagement & incentivization (changing investee behavior)
- Offer financial incentives for investees managing forests-related issues [F]
- Offer financial incentives for investees managing water-related issues [W]
- Encourage better forests-related disclosure practices [F]
- Encourage better water-related disclosure practices [W]
- Encourage investees to obtain third-party certifications to verify positive impacts on forests [F]
- Encourage investees to obtain third-party certifications to verify positive impacts on water security [W]
- Encourage investees to engage with suppliers to improve their capacity to comply with the company’s forests-related polices [F]
- Encourage investees to engage with suppliers to improve their capacity to comply with the company’s water-related polices [W]
- Avoid or divest from companies continuing to fail to meet forests-related expectations [F]
- Avoid or divest from companies continuing to fail to meet water-related expectations [W]
- Avoid or divest from companies that pose an unacceptable level of forests-related risks [F]
- Avoid or divest from companies that pose an unacceptable level of water-related risks [W]
- Other, please specify
|
Requested content
General
- For climate change, this data is reported in C-FS12.1c.
- Add a row for each issue area and type of engagement.
Type of engagement (column 2)
- Select one type of engagement activity your organization participates in from the drop-down options.
- If you select “Other, please specify”, provide a label for the “Type of engagement”
- Add another row to provide information about additional types of engagement:
- Education/information sharing: Engagement activities where the aim is to educate and inform investees but not necessarily instigate any specific action.
- Collaboration & innovation: Engagement activities where the aim is to encourage investees to develop new ways to reduce the negative forests- and/or water-related impacts of the products/services that you are financing. This can include formal innovative collaboration projects, campaigns and calls for partnerships as well as informal opportunities to reduce negative impacts.
- Engagement & incentivization (changing investee behavior): Engagement activities where the aim is to change investee behaviour so that forests- and/or water-related issues are ameliorated. This can include offering specific incentives for your investees to meet forests- and/or water-related goals or strategies. Incentives can be recognition (i.e. award schemes or special acknowledgements) or financial.
Details of engagement (column 3)
- Expand on the “Type of engagement” (selected in column 2) your organization participates in by selecting the relevant details of engagement from the drop-down.
Investing (asset manager) portfolio coverage of engagement (column 4), Investing (asset manager) portfolio coverage of engagement (column 5)
- The columns presented depend on your selection in C-FS0.7.
- Indicate the coverage of your investment portfolio based on the portfolio value represented by investees participating in this engagement activity. Coverage can be based on either total assets under management or outstanding commitments, premiums, committed capital and/or other.
Rationale for the coverage of your engagement (column 6)
- Investee engagement can be either untargeted (undertaken generally with all investees or undertaken with a selection of investees without a basis for the selection) or targeted at specific investees, such as investees in a particular sector with increased forest- and/or water-related risks relative to other sectors. There is a place for both, but targeted engagement may be more effective at driving change in the real economy.
- Select the option which reflects your rationale for undertaking this engagement activity with the investees you have engaged with in this way.
Impact of engagement, including measures of success (column 7)
- Discuss the impact of this engagement and how you measure its success.
- Include a description of any engagement activity you undertake with investees to manage forests- and/or water-related issues.
- Please provide examples of positive outcomes achieved. For example, this could include investees publicly disclosing forests- and/or water related information in response to your engagement with them.
FW-FS Shareholder voting
(FW-FS4.2) Does your organization exercise its voting rights as a shareholder on forests- and/or water-related issues?
Question dependencies
This question only appears if you select “Investing (Asset Manager)” and/or “Investing (Asset Owner)” in response to C-FS0.7 and you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of the same question.
Change from last year
New question
Rationale
Active ownership is a key tool for positively impacting the real economy because divestment alone leaves investors without a voice to promote sustainable practices. Alongside their investee engagement activities, investors can influence their investee companies on several issues, including forests- and water-related issues, by exercising their voting rights. Data users are interested in understanding how aligned shareholders’ voting decisions across the investment portfolio are with the overall environmental strategy and how they support forests- and/or water-related shareholder resolutions.
Response options
Please complete the following table.
(*column/row appearance is dependent on selections in this or other questions)
Issue area
|
We exercise voting rights as a shareholder on this issue area
|
Issues supported in shareholder resolutions*
|
Give details of the impact your voting has had on this issue area*
|
Explain why your organization does not exercise voting rights on this issue area and any plans to address this in the future*
|
Forests*
|
Select from:
- Yes
- No, but we plan to within the next two years
- No, and we do not plan to in the next two years
|
Select all that apply:
- Halting deforestation [F]
- Reduce water withdrawal and/or consumption [W]
- Improve water efficiency [W]
- Reduce water pollution [W]
- Water, Sanitation and Hygiene (WASH) provision for all workers [W]
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
Water*
|
|
|
|
|
Requested content
General
- For climate change, this data is reported in C-FS12.2.
We exercise voting rights as a shareholder on this issue area (column 2)
- Select “Yes” if you exercise your voting rights as a shareholder, including directly and indirectly (e.g., through an external service provider).
- Select “No, but we plan to within the next two years” if you currently do not exercise voting rights for the issue area(s) but have plans to do so within the next two years.
- Only select "No" if you do not exercise voting rights for the issue area(s), and do not plan to do so.
Issues supported in shareholder resolutions (column 3)
- This column is only shown if you select “Yes” option in column 2.
- Select which forests- and/or water-related issues you have supported in shareholder resolutions during the reporting year.
- If you have supported a forests- and/or water-related issue that is not in the list, select “Other, please specify” and provide a label.
Give details of the impact your voting has had on this issue area (column 4)
- This column is only shown if you select “Yes” option in column 2.
- Give details on the issues your organization has supported by using voting rights and indicate the outcomes this has had on forests- and/or water related issues.
Explanation of terms
- Deforestation: loss of natural forest as a result of the following human activities: i) conversion to agriculture or other non-forest land use; ii) conversion to a tree plantation; or iii) severe and sustained degradation.
- Severe degradation constitutes deforestation even if the land is not subsequently used for non-forest land use.
- Loss of natural forest that meets this definition is considered to be deforestation regardless of whether or not it is legally permitted.
- Deforestation signifies “gross deforestation” of a natural forest where “gross” is used in the sense of “total; aggregate; without deduction for reforestation or other offsets” (AFi, 2019).
- Water withdrawal: The sum of all water drawn into the boundaries of an organization from all sources for any use over the course of a reporting period.
- Water consumption: The amount of water that is drawn into the boundaries of an organization and not discharged back to the water environment or a third party over the course of a reporting year.
- Water efficiency: A measure of economic value produced from water withdrawals. This is often calculated as revenue (or other financial metric) per water withdrawal or use volume.
Additional information
- The process and language around resolutions vary by region. At this time, CDP cannot advise on the resolution process, but companies can refer to the Say on Climate campaign website or engage with its other supporting partners As You Sow (US), Share Action (UK/EU), or ACCR (AsiaPac/Australasia) that are focused on this work.
FW-FS Engagement with smallholders
(FW-FS4.3) Does your organization provide financing and/or insurance to smallholders in the agricultural commodity supply chain?
Question dependencies
This question only appears if you select “Yes” in column 2 of either the “Banking (Bank)” row or “Insurance underwriting (Insurance company)” row in response to C-FS0.7 and you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of at least one of these rows.
Change from last year
New question
Rationale
Access to credit/insurance for smallholder producers is a pertinent issue. In some cases, a lack of access to credit is driving behaviors that result in deforestation, conversion of natural ecosystems and/or impacting watershed health. However, CDP recognizes that not all financial institutions have the ability to finance/insure smallholders in agricultural commodity supply chains. For example, many banks and insurers lack the vast branch network in rural areas where agricultural commodities are produced required to service smallholder producers at scale.
This question seeks to collect data from banks and insurance companies on whether they provide financing/insurance to smallholders, and if not, what barriers exist, which could signpost governments and other stakeholders in their efforts to reduce barriers and promote sustainable development.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Provide financing and/or insurance to smallholders in the agricultural commodity supply chain
|
Agricultural commodity*
|
Primary reason for not providing finance and/or insurance to smallholders*
|
Explain why your organization does not provide finance/insurance to smallholders and any plans to change this in the future*
|
Select from:
- Yes
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
|
Select all that apply:
- Timber products
- Palm oil
- Cattle products
- Soy
- Rubber
- Cocoa
- Coffee
- Sugar
- Tobacco
- Rice
- Maize
|
Select all that apply:
- High risk and volatile sector
- Low yields
- Lack of government subsidies
- Not a strategic focus
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Requested Content
Agricultural commodity (column 2)
- This column is only shown if you select “Yes” in column 1.
- The commodities asked about in this question are forests and/or water risk commodities, meaning their production poses risks to forests, natural ecosystems and/or watershed health.
- Select all agricultural commodities you provide finance or insurance to.
Primary reason for not providing finance and/or insurance to smallholders (column 3)
- This column is only shown if you select a “No” option in column 1.
- If your organization does not currently finance or provide insurance to smallholders, select the main barriers preventing you from doing so, and provide further details in column 4.
Explanation of terms
- The following forest and/or water risk commodities are asked about in this questionnaire:
- Timber products: This includes all solid timber as well as products made from processed wood fiber such as paper, packaging, cardboard and specialty fibers (e.g., viscose). It also includes timber products used for biomass.
- Palm oil: This includes crude palm oil, palm kernel oil, and all of its derivatives. Please note that palm oil used for biofuel production is also included in this category.
- Cattle products: This includes all food products containing beef, all clothing, furniture and accessories that are made of leather, tallow, and all other products derived from cattle. Please note that tallow used for biofuel production is also included in this category. Dairy products are not included in this category.
- Soy: This includes all meal or oil containing soy and any derivatives that are obtained from soy. Please note that soy used for biofuel production is also included in this category.
- Rubber: This includes all rubber products deriving from natural rubber production. Please note that the tire industry is included in this category.
- Cocoa: This includes all food or other products containing cocoa, cocoa derivatives such as cocoa butter or pectin, or any products derived from cocoa husks such as animal feed or potash.
- Coffee: This includes all products from or derived from coffee plants, including the beans, cherries and husks.
- Sugar: This includes all products containing sugar from sugar cane, or products derived from sugar cane and sugar cane production.
- Tobacco: This includes all products derived from tobacco plants, including smoking tobacco, smokeless tobacco products, and insecticides.
- Rice: This includes all food or other products containing rice or rice derivatives. Please note that rice used for biofuel production is also included in this category.
- Maize: This includes all food or other products containing maize or maize derivatives. Please note that maize used for biofuel production is also included in this category.
- Smallholders: Are small-scale agricultural producers with high dependence on family labor, generally having low levels of productivity, small land footprint, significant economic and information constraints and/or farmers profit being the primary source of income for the smallholder and their family (adapted from AFi, 2019).
(FW-FS4.3a) Describe how the financing/insurance your organization provides enables smallholders to improve agricultural practices and reduce deforestation and/or water insecurity.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS4.3.
Change from last year
New question
Rationale
Consistently low yields produced by agricultural smallholders are a common problem in developing countries. They are explained mainly by a lack of access to quality inputs, limited technical knowledge and a lack of access to credit/insurance. While global demand rises, consistently low yields put increasing pressure on remaining forests and watershed health. This makes smallholder financing/insuring a pertinent issue.
Data users are interested in the financing and/or insurance approaches financial institutions are taking with smallholders and any other engagement they are undertaking with smallholders.
Response options
Please complete the following table:
(*column/row/dropdown appearance is dependent on selections in this or other questions)
Commodity*
|
Financial service provided*
|
Smallholder financing/insurance approach
|
Other smallholder engagement approaches
|
Number of smallholders supported
|
Explain how the financing/insurance your organization provides enables smallholders to improve agricultural practices and reduce deforestation and/or water insecurity
|
[List compiled from FW-FS4.3]
|
Select all that apply:
|
Select all that apply:
- Financial incentives for sustainable practices
- Use of government subsidized schemes
- Long term financing/insurance contracts
- Other, please specify
|
Select all that apply:
- Organizing capacity building events
- Disseminating technical materials
- Supporting smallholders to clarify and secure land tenure rights
- Prioritizing support for smallholders in high-risk deforestation regions
- Support for smallholders in high-risk water stress regions
- Other, please specify
- Other than financing/insuring, we do not engage in other support for smallholders
|
Numerical field [enter a range of 0-999,999,999,999 using a maximum of 0 decimal places and no commas]
|
Text field [maximum 2,500 characters] |
Requested Content
Commodity (column 1)
- A row will appear for each commodity selected in column 2 of FW-FS4.3. Please respond to all rows.
Smallholder financing/insurance approach (column 3)
- For each commodity, specify the financing/insurance approach(es) that best reflect those adopted by your organization:
- Financial incentives refer to financing/insurance where the pricing is linked to sustainability-related outcomes or practices.
- Government schemes would include those such as KUR (Kredit Usaha Rakyat) in Indonesia.
- To be considered long-term, financing/insurance should have a sufficient tenor to support smallholders with replanting given the yield profile of the commodity over its productive life.
- If you employ several approaches with smallholders for a selected commodity, select all that apply.
- If you support smallholders through a financing/insurance approach that is not listed as an option, select “Other, please specify” and specify your approach.
Other smallholder engagement approaches (column 4)
- Specify any other engagement approach(es) that reflect those adopted by your organization.
- If you employ several approaches with smallholders for a selected commodity, select all that apply.
- If you support smallholders through an engagement approach that is not listed as an option, select “Other, please specify” and specify your approach.
Number of smallholders supported (column 5)
- Provide the estimated number of smallholders that are currently covered by your financing and/or insurance approach.
Explain how the financing/insurance your organization provides enables smallholders to improve agricultural practices and reduce deforestation and/or water insecurity (column 6)
- Provide additional information on the details of your smallholder engagement approach, including whether you engage with individual smallholders or groups. If you are engaging with groups of smallholders, detail how those groups are chosen.
- Include one or more examples of supplier engagement and impact achieved on the ground.
Additional information
FW-FS Engagement with regulators
(FW-FS4.4) Does your organization engage in activities that could directly or indirectly influence policy, law, or regulation that may impact forests and/or water security?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Participating in engagement activities that can directly or indirectly influence public policy on forests- and/or water-related issues are of interest to CDP data users wishing to understand how this relates to other environmental stances taken.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Issue area(s)
|
Direct or indirect engagement that could influence policy, law, or regulation that may impact this issue area
|
Primary reason for not engaging in activities that could directly or indirectly influence policy, law, or regulation that may impact this issue area*
|
Explain why you do not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact this issue area*
|
Forests*
|
Select all that apply:
- Yes, we engage directly with policy makers
- Yes, we engage indirectly through trade associations
- Yes, we engage indirectly by funding other organizations whose activities may influence policy, law, or regulation that may significantly impact this issue area
- No, but we plan to in the next two years
- No, and we do not plan to in the next two years
|
Select from:
- Important but not an immediate priority
- Judged to be unimportant
- Lack of internal resources
- No instruction from management
- Other, please specify
|
Text field [maximum 2,500 characters]
|
Water*
|
|
|
|
Requested Content
General
- For climate change, this data is reported in C12.3.
- This question is focused on external engagement with policy makers, government departments, or regulatory bodies on a regional, local, national, or international level. Responses should be relevant to the reporting year only.
- There will be a wide range of activities that could be considered as engagement that influences public policy. In response to this question, please select all that apply regardless of your role and how significant those activities are for your company or a third party.
- Only select “No…” if you do not engage in any activities that could influence policy, law, or regulation that may impact forests and/or water security. If you select “No…” do not select any other options.
Explain why you do not engage in activities that could directly or indirectly influence policy, law, or regulation that may impact this issue area (column 4)
- This column only appears if “No…” is selected in column 2.
- Please provide a company-specific explanation as to why you do not engage in activities which could directly or indirectly influence policy, law, or regulation that may impact the issue area(s) and any plans you have to change that in the future.
Explanation of terms
- Direct engagement: This includes all activity where companies (or their representatives such as law firms or public affairs agencies engaged directly by the company) engage with policy makers or regulators on the development of law or regulation. Examples of such activities include responding to a consultation, sitting on a working group or lobbying activities directed at individuals or groups that are part of the process of developing, reviewing or amending a law or regulation. Direct engagement can include any stage in the policy or regulation development process, from the selection of options to final consultation comments, but does not include compliance with a new or updated requirement once it has come into force.
- Trade associations: Trade associations (sometimes also referred to as industry associations, trade groups, trade bodies, or industry trade groups) are an association of people or companies in a particular business or trade, organized to promote their common interests. Trade associations are relevant here as they present an “industry voice” to governments to influence their policy development. The majority of organizations are members of multiple trade associations, many of which take a position on environmental matters and actively engage with policy makers on the development of policy and legislation on behalf of their members.
- Funding other organizations: In this context, other organizations can include research institutions, Non-Governmental Organizations (NGOs), trusts, universities, and other organizations that operate in the deforestation or water security subject area on projects intended for public dissemination that aim to influence policy. Funding may take the form of membership fees, sponsorship, donations etc. offered to organizations. The financial support that you give them may or may not be forests- and/or water-related, however if they do engage in work on forests and/or water security then you should select this option.
(FW-FS4.4a) On what policy, law, or regulation that may impact forests and/or water security have you been engaging directly with policy makers in the reporting year?
Question dependencies
This question only appears if you select any “Yes, we engage directly with policy makers” in response to FW-FS4.4 in column 2.
Change from last year
New question
Rationale
Participating in engagement activities that can directly or indirectly influence public policy on forests- and/or water-related issues are of interest to CDP data users wishing to understand how this relates to other environmental stances taken. This question provides increased transparency regarding the public policy issues that organizations have been engaging on and the activities they use to influence public policy.
Response options
Please complete the following table. You are able to add rows by using the "Add row" button at the bottom of the table.
Issue area(s)
|
Focus of policy, law or regulation that may impact this issue area
|
Specify the policy, law or regulation on which your organization is engaging with policymakers
|
Policy, law or regulation coverage
|
Country/region the policy, law or regulation applies to
|
Your organization’s position on the policy, law or regulation
|
Description of engagement with policymakers
|
Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation
|
Have you evaluated whether your organization’s engagement is aligned with the Sustainable Development Goals?
|
Select from:
|
Select all that apply from drop-down options below
|
Text field [maximum 1,500 characters]
|
Select from:
- Global
- Regional
- National
- Sub-national
- Unknown
|
Select all that apply:
[Country/region drop-down list]
|
Select from:
- Oppose
- Neutral
- Support with no exceptions
- Support with minor exceptions
- Support with major exception
- Undecided
|
Text field [maximum 2,500 characters]
|
Text field [maximum 2,500 characters]
|
Select from:
- Yes, we have evaluated, and it is aligned
- Yes, we have evaluated, and it is not aligned
- No, we have not evaluated
|
[Add row]
Focus of policy, law or regulation that may impact forests and/or water security (column 2)
- Circular economy [F, W]
- Environmental registry [F, W]
- Extended Producer Responsibility (EPR) [F, W]
- Flood/drought resilience [W]
- Forests stewardship practices and standards [F]
- Food security [F, W]
- International law and bilateral agreements [F, W]
- International trade agreement [F, W]
- Land tenure regulations [F, W]
- Mandatory forest private reserves [F]
- Mandatory reporting [F, W]
- Operations permits [F]
- Responsible water withdrawal and/or consumption [W]
- Subsidies on products [F]
- Sustainable finance [F, W]
- Taxes on products [F]
- Traceability requirements [F]
- Transparency requirements [F]
- Verification and audits [F, W]
- Water allocation/re-allocation [W]
- Water pricing/tariffs [W]
- Water quality and/or discharge treatment standards and requirements [W]
- Water rights [W]
- Water stewardship practices and standards [W]
- Zero deforestation [F]
- Other, please specify
|
Requested Content
General
- For climate change, this data is reported in C12.3a.
Issue area (column 1)
- The dropdowns presented in this column depend on your response to question FW-FS4.4.
- You should add a row for each issue area and describe your engagement with policy makers in the subsequent columns.
Focus of policy, law or regulation that may impact this issue area (column 2)
- This column relates to the general area in which the legislation that your organization is engaging on falls.
- The data from this column allows CDP data users to assess comparable legislative developments across multiple geographies.
- There is no need to provide details on all legislation types – only those on which you have been actively engaging in the reporting year.
Specify the policy, law or regulation on which your organization is engaging with policymakers (column 3)
- Provide the name of the legislation and the key actions it proposes.
Country/region the policy, law or regulation applies to (column 5)
- This column only appears if “Regional”, “National”, “Sub-national” is selected in “Policy, law or regulation coverage” (column 4)
- If the policy, law, or regulation is at the sub-national level, select “Other, please specify” and specify the region(s) within a nation to which it applies.
Your organization’s position on the policy, law or regulation (column 6)
- This should reflect your organization’s overall position on this particular legislation. For example:
- “Support” – select this option if you are engaging in full support of this legislation across all the geographies in which you are engaging on it
- “Support with minor exceptions” – select this option if you are engaging in support of this legislation with either minor exceptions to the approach or with minor exceptions to geographies for whom it is proposed and where you are actively engaging. For example, if you support the principle of a carbon tax but oppose certain ways in which it is being applied, select this option. You will be given the chance to explain any exceptions in column 8.
- “Support with major exceptions” – select this option if you are engaging in support of this legislation with either major exceptions to the approach or with major exceptions to geographies for whom it is proposed and where you are actively engaging.
- “Neutral” – select this option if you have taken part in engagement activities for this legislation but have not put forward a view.
- “Oppose” – select this option if you have been engaging against this legislation across all relevant geographies.
- “Undecided” – select this option if you have been engaging on this legislation at an early stage in the development process and have yet to give an opinion or attempt to influence the policy development process in any direction.
Description of engagement with policymakers (column 7)
- Use the text field to provide details of how your organization is engaging (e.g., responding to a consultation, meeting directly with policy makers, etc.) on the legislation.
Details of exceptions (if applicable) and your organization’s proposed alternative approach to the policy, law or regulation (column 8)
- This column only appears if “Support with minor exceptions”, “Support with major exceptions”, or “Oppose” is selected in “Your organization’s position on the policy, law or regulation” (column 6)
- If your organization supports the legislation with exceptions, provide details of the exceptions and what you would propose in their place.
- If your organization opposes the legislation, provide details of an alternative legislative approach that you feel would more effectively eliminate deforestation and improve water security.
Have you evaluated whether your organization’s engagement is aligned with the Sustainable Development Goals? (column 9)
- Please consider SDG 6, SDG 9, SDG 12 and SDG 15 during your evaluation.
FW-FS Portfolio impact
FW-FS Measurement of portfolio impact
(FW-FS5.1) Does your organization measure its portfolio impact on forests and/or water security?
Question dependencies
This question only appears if you select an industry sector that has a
potentially critical impact on forests and/or water security in column 4 of
question C-FS0.7.
Change from last year
New question
Rationale
Most of financial institutions’ impact on forests and/or water security occurs in their portfolio(s) - within the financial products and services they provide and/or in their investments. Metrics for measuring portfolio impact on forests and water security are in their infancy, so this question allows financial institutions to explain if they are assessing their portfolio impact, and if they use any KPIs to measure impact on forests and/or water security.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Portfolio impact
|
We measure our portfolio impact on this issue area
|
Explain how your organization measures its portfolio impact on this issue area, including any metrics used to quantify impact*
|
Primary reason for not measuring portfolio impact on this issue area*
|
Explain why your organization does not measure its portfolio impact on this issue area and any plans to change this in the future*
|
Banking – Impact on Forests*
|
Select from:
- Yes
- No, but we plan to in the next two years
- No, and we don't plan to in the next two years
|
Text field [maximum 5,000 characters]
|
Select from:
- Important but not an immediate priority
- Judged to be unimportant
- Lack of tools or methodologies available
- Lack of internal resources
- No instruction from management
- Other, please specify
|
Text field [maximum 5,000 characters]
|
Banking – Impact on Water*
|
|
|
|
|
Investing (Asset manager) – Impact on Forests*
|
|
|
|
|
Investing (Asset manager) – Impact on Water*
|
|
|
|
|
Investing (Asset owner) – Impact on Forests*
|
|
|
|
|
Investing (Asset owner) – Impact on Water*
|
|
|
|
|
Insurance underwriting – Impact on Forests*
|
|
|
|
|
Insurance underwriting – Impact on Water*
|
|
|
|
|
Requested content
General
- For climate change, this data is reported in C14.1.
Portfolio exposure (column 1)
- The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to a financial portfolio’s impact on forests and/or water security. Please respond to all rows.
Explain how your organization measures its portfolio impact on this issue area, including any metrics used to quantify impact (column 3)
- This column will only appear if you select “Yes” in column 2
- Please explain your organization’s approach to measuring its impact on forests and/or water security via the activities it lends to, invests in and/or insures in the real economy.
- Indicate any tools or methodologies used in your assessment, as well as any metrics used to measure impact.
- Subsequent questions will ask about forests-related portfolio impact metrics to allow CDP data users to understand what proportion of financing/insurance directed to companies in the forest risk commodity supply chains is sustainable
- When explaining your organization’s approach to measuring its portfolio impact on water, please indicate which water-related contextual issues are considered (e.g., water availability, water quality, access to WASH services).
- Questions will specifically ask about water-related portfolio impact metrics in future years.
Primary reason for not measuring portfolio impact on this issue area (column 4)
- This column will only appear if you select a “No” option in column 2.
- Select the reason that best describes why your organization does not measure any forest- and/or water-related portfolio impacts on the issue area in column 1, and provide an explanation in column 5
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is your entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
- Portfolio impact: A variety of metrics exist to help financial institutions measure the impact of their lending, investment and insurance underwriting activities on the climate, such as portfolio emissions and exposure to carbon-related assets. There are no globally accepted equivalent metrics expressing portfolio impact on forests and/or water. Financial institutions should consider how to quantify the impact of their lending, investment and insurance underwriting activities on forests and/or water security.
(FW-FS5.2) Does your organization provide finance or insurance to companies operating in any stages of the following forest risk commodity supply chains, and are you able to report on the amount of finance/insurance provided?
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
A few key agricultural commodities cause more than 60% of forest loss in Latin America and Southeast Asia; and this is usually a permanent loss. While not all forest risk commodity production is necessarily harmful, understanding the concentrations of forest risk commodity related assets in portfolios will enable financial institutions to understand where there is the potential for deforestation impacts; and where enhanced policies are needed to prevent it.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Forest risk commodity |
Finance or insurance provided to companies operating in the supply chain for this commodity
|
Amount of finance/insurance provided will be reported*
|
Explain why your organization is unable to report on the amount of finance/insurance provided for this commodity*
|
Lending to companies operating in the timber products supply chain* |
Select from
|
Select from
- Yes
- No, but we plan to assess our portfolio’s exposure to this commodity in the next two years
- No, and we do not plan to assess our portfolio’s exposure in the next two years
|
Text field [maximum 2,500 characters]
|
Lending to companies operating in the palm oil products supply chain* |
|
|
|
Lending to companies operating in the cattle products supply chain* |
|
|
|
Lending to companies operating in the soy supply chain* |
|
|
|
Lending to companies operating in the rubber supply chain* |
|
|
|
Lending to companies operating in the cocoa supply chain* |
|
|
|
Lending to companies operating in the coffee supply chain* |
|
|
|
Investing (asset manager) to companies operating in the timber products supply chain* |
|
|
|
Investing (asset manager) to companies operating in the palm oil products supply chain* |
|
|
|
Investing (asset manager) to companies operating in the cattle products supply chain* |
|
|
|
Investing (asset manager) to companies operating in the soy supply chain* |
|
|
|
Investing (asset manager) to companies operating in the rubber supply chain* |
|
|
|
Investing (asset manager) to companies operating in the cocoa supply chain* |
|
|
|
Investing (asset manager) to companies operating in the coffee supply chain* |
|
|
|
Investing (asset owner) to companies operating in the timber products supply chain* |
|
|
|
Investing (asset owner) to companies operating in the palm oil products supply chain* |
|
|
|
Investing (asset owner) to companies operating in the cattle products supply chain* |
|
|
|
Investing (asset owner) to companies operating in the soy supply chain* |
|
|
|
Investing (asset owner) to companies operating in the rubber supply chain* |
|
|
|
Investing (asset owner) to companies operating in the cocoa supply chain* |
|
|
|
Investing (asset owner) to companies operating in the coffee supply chain* |
|
|
|
Insuring companies operating in the timber products supply chain* |
|
|
|
Insuring companies operating in the palm oil products supply chain* |
|
|
|
Insuring companies operating in the cattle products supply chain* |
|
|
|
Insuring companies operating in the soy supply chain* |
|
|
|
Insuring companies operating in the rubber supply chain* |
|
|
|
Insuring companies operating in the cocoa supply chain* |
|
|
|
Insuring companies operating in the coffee supply chain* |
|
|
|
Requested content
Forest risk commodity (column 1)
- The rows presented in this question depend on the activities and industry sectors you selected in question C-FS0.7. Each row corresponds to a portfolio activity, i.e., lending to, investing in or insuring companies operating in the forest risk commodity supply chain. There is a row for each forest risk commodity asked about in this questionnaire: timber products, palm oil products, cattle products, soy, rubber, cocoa, and coffee. Please respond to all rows.
- CDP recognizes that financial institutions use their own classification systems for industries and economic activities, and so are likely have their approach to identifying which clients/investees operate in the value chains of various agricultural commodities. Therefore, you can use your own classification systems for which clients/investees operate in each commodity.
Finance or insurance provided to companies operating in the supply chain for this commodity (column 2)
- For each forest risk commodity listed in column 1, indicate if you are providing financing (lending or investment) or insurance to companies operating in the supply chain for that commodity within the reporting year.
Amount of finance/insurance provided will be reported (column 3)
- This column only appears if “Yes” is selected in column 2
- State whether the amount of finance/insurance provided to companies operating in the supply chain for the commodity given in column 1 will be reported in the subsequent question.
Explain why your organization is unable to report on the amount of finance/insurance provided for this commodity (column 4)
- This column is only presented if your organization responds “Yes” to providing financing/insurance to the commodity in column 2 but selects a “No” option in column 3.
- Provide the main rationale for not reporting on the amount of financing/insurance provided to companies operating in the supply chain of the commodity.
- If applicable, give details of your organization's plans to report on this.
Explanation of terms
- Forest risk commodities: The following are asked about in this questionnaire:
- Timber products: This includes all solid timber as well as products made from processed wood fiber such as paper, packaging, cardboard and specialty fibers (e.g., viscose). It also includes timber products used for biomass.
- Palm oil: This includes crude palm oil, palm kernel oil, and all of its derivatives. Please note that palm oil used for biofuel production is also included in this category.
- Cattle products: This includes all food products containing beef, all clothing, furniture and accessories that are made of leather, tallow, and all other products derived from cattle. Please note that tallow used for biofuel production is also included in this category. Dairy products are not included in this category.
- Soy: This includes all meal or oil containing soy and any derivatives that are obtained from soy. Please note that soy used for biofuel production is also included in this category.
- Rubber: This includes all rubber products deriving from natural rubber production. Please note that the tire industry is included in this category.
- Cocoa: This includes all food or other products containing cocoa, cocoa derivatives such as cocoa butter or pectin, or any products derived from cocoa husks such as animal feed or potash.
- Coffee: This includes all products from or derived from coffee plants, including the beans, cherries and husks.
- Forest risk commodity supply chain stage: CDP’s forest program requests forests-related disclosures from companies with business activities corresponding to the following stages of forest risk commodity supply chains:
- Production: this is the first stage of the supply chain and generally refers to the production of raw agricultural and forests products by farm owners, smallholders, and communities. Vertically integrated companies are also involved in producing activities if they own or manage land used for the production of forests risk commodities.
- Processing: this encompasses the initial transformative activities that will add value to raw materials. For example, the production of crude palm oil from crushed fruit, the production of soybean oil and soybean meal from soybean, the initial processing of timber products in mills (i.e., sawmills, plywood and veneer mills, pulp and paper mills), the slaughtering of cattle and the processing of raw hide into leather. Further processing activities in the form of refining and fractionation should be considered in the manufacturing stage.
- Trading: businesses that purchase and sell raw or primary processed agricultural or forestry materials to either domestic or export markets. This includes the shipment, transport and storage of the forest risk commodities.
- Manufacturing: this includes the production of final ingredients for the food, feed and fuel sectors from raw or processed materials.
- Retailing: businesses that sell products directly to individual consumers.
(FW-FS5.2a) For each portfolio activity, state the value of your financing and/or insurance of companies operating in forests risk commodity supply chains in the reporting year.
Question dependencies
This question only appears if you select “Yes” in response to FW-FS5.2 in column 3 for any of the rows. Rows will be presented according to the forest risk commodities reported on in response to FW-FS5.2.
Change from last year
New question
Rationale
A few key agricultural commodities cause more than 60% of forest loss in Latin America and Southeast Asia; and this is usually a permanent loss. While not all forest risk commodity production is necessarily harmful, understanding the concentrations of forest risk commodity related assets in portfolios will enable financial institutions to understand where there is the potential for deforestation impacts; and where enhanced policies are needed to prevent it.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Forest risk commodity
|
Forest risk commodity supply chain stage coverage
|
Portfolio exposure (unit currency – as specified in C0.4)
|
New loans advanced in reporting year (unit currency – as specified in C0.4)*
|
Total premium written in reporting year (unit currency – as specified in C0.4)*
|
Percentage portfolio value
|
[List compiled from FW-FS5.2]*
|
Select all that apply:
- Production
- Processing
- Trading
- Manufacturing
- Retailing
|
Numeric field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numeric field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Numeric field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas]
|
Percentage field [enter a percentage from 0-100]
|
Requested content
General
- A row will appear for each forest risk commodity you select “Yes” for in column 3 of FW-FS5.2. Please respond to all rows.
Forest risk commodity supply chain stage coverage (column 2)
- Indicate which stages in the forest risk commodity supply chain the companies you are providing a financing/insurance figure for operate in.
Portfolio exposure (unit currency as specified in C0.4) (Column 3)
- This figure should be in the same currency that you selected in C0.4.
- For lending and investing rows, report the total value of loans/investments to companies operating in the forest risk commodity supply chain outstanding in your portfolio at the end of the reporting year. For insurance rows, report the total sums insured for companies operating in the forest risk commodity supply chain in your portfolio for the reporting year.
New loans advanced in reporting year* (unit currency as reported in C0.4) (column 4)
- This figure should be in the same currency selected in C0.4.
- Include new loans advanced to companies operating in the forest risk commodity supply chain, even if the loan has subsequently been removed from your portfolio. This module is asking about portfolio impact – impact on forests cannot be transferred in the same way that risk to your portfolio can.
Total premium written** (unit currency as reported in C0.4) (column 5)
- This figure should be in the same currency that you selected in C0.4.
- Report the Gross Written Premium (GWP) including direct and assumed that is written (before deductions for reinsurance and ceding commission) for companies operating in the forest risk commodity supply chain in the reporting year.
Percentage portfolio value (column 6)
- Provide a percentage value for the exposure reported in column 3 in relation to your total portfolio value.
Explanation of Terms
- Forest risk commodities: The following are asked about in this questionnaire:
- Timber products: This includes all solid timber as well as products made from processed wood fiber such as paper, packaging, cardboard and specialty fibers (e.g., viscose). It also includes timber products used for biomass.
- Palm oil: This includes crude palm oil, palm kernel oil, and all of its derivatives. Please note that palm oil used for biofuel production is also included in this category.
- Cattle products: This includes all food products containing beef, all clothing, furniture and accessories that are made of leather, tallow, and all other products derived from cattle. Please note that tallow used for biofuel production is also included in this category. Dairy products are not included in this category.
- Soy: This includes all meal or oil containing soy and any derivatives that are obtained from soy. Please note that soy used for biofuel production is also included in this category.
- Rubber: This includes all rubber products deriving from natural rubber production. Please note that the tire industry is included in this category.
- Cocoa: This includes all food or other products containing cocoa, cocoa derivatives such as cocoa butter or pectin, or any products derived from cocoa husks such as animal feed or potash.
- Coffee: This includes all products from or derived from coffee plants, including the beans, cherries and husks.
- Forest risk commodity supply chain stage: CDP’s forest program requests forests-related disclosures from companies with business activities corresponding to the following stages of forest risk commodity supply chains:
- Production: this is the first stage of the supply chain and generally refers to the production of raw agricultural and forests products by farm owners, smallholders, and communities. Vertically integrated companies are also involved in producing activities if they own or manage land used for the production of forests risk commodities.
- Processing: this encompasses the initial transformative activities that will add value to raw materials. For example, the production of crude palm oil from crushed fruit, the production of soybean oil and soybean meal from soybean, the initial processing of timber products in mills (i.e., sawmills, plywood and veneer mills, pulp and paper mills), the slaughtering of cattle and the processing of raw hide into leather. Further processing activities in the form of refining and fractionation should be considered in the manufacturing stage.
- Trading: businesses that purchase and sell raw or primary processed agricultural or forestry materials to either domestic or export markets. This includes the shipment, transport and storage of the forest risk commodities.
- Manufacturing: this includes the production of final ingredients for the food, feed and fuel sectors from raw or processed materials.
- Retailing: businesses that sell products directly to individual consumers.
(FW-FS5.2b) How much of the financing/insurance disclosed is extended to clients/investees that meet your policy expectations on how to manage their impact on forests?
Question dependencies
This question only appears if you select “Yes” in response to FW-FS5.2 in column 3 for any of the rows. Rows will be presented according to the forest risk commodities reported on in response to FW-FS5.2.
Change from last year
New question
Rationale
A few key agricultural commodities cause more than 60% of forest loss in Latin America and Southeast Asia; and this is usually a permanent loss. However, not all forest risk commodity production is necessarily harmful.
Data users are interested in how much of your organization's portfolio is compliant with your forests-related policy.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Forest risk commodity
|
Percentage of clients/investees compliant with our forests-related policy expectations will be reported
|
Percentage of clients/investees compliant with forests-related policy expectations*
|
Percentage of portfolio exposure compliant with forests-related policy expectations*
|
[List compiled from FW-FS5.2a]*
|
Select from:
- Yes, we will report percentages
- No, we have forests-related policy criteria but do not record if clients/investees are compliant, but we plan to record compliance in the next two years
- No, we have forests-related policy criteria but do not record if clients/investees are compliant and we do not plan to in the next two years
- No, we do not have forests-related policy criteria
|
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 of clients/investees near-compliant with forests-related policy expectations*
|
Percentage of portfolio exposure near-compliant with forests-related policy expectations*
|
Target year for 100% compliance*
|
Explain how you have calculated the percentage of clients/investees and portfolio exposure compliant*
|
Explain why you do not have a forests-related policy or why you do not record if clients/investees are compliant*
|
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:
- Already met
- Within the next year
- Within the next 2 years
- Within the next 5 years
- More than 5 years
- No timeframe
|
Text field [maximum 5,000 characters]
|
Text field [maximum 5,000 characters]
|
Requested content
General
- For each forest risk commodity that you reported on in FW-FS5.2a, provide information about the proportion of clients/investees that meet your policy expectations relating to the management of impact on forests.
- This question asks about clients/investees which meet your policy “expectations” on how to manage impact on forests. You should refer to the forests-related criteria you reported in FW-FS3.4a.
Percentage of clients/investees compliant with our forests-related policy expectations will be reported (column 2)
- For each forest risk commodity that you provided a financing/insurance amount for, select if you are able to report on percentage of clients/investees compliant with your forests-related policy expectations.
- If you have policy-related expectations for clients/investees but you do not record compliance against the criteria, but you plan to in the next 2 years, select “No, we have forests-related policy criteria but do not record if clients/investees are compliant, but we plan to record compliance in the next two years”
- If you have policy-related expectations for clients/investees but you do not record compliance against the criteria, and do not plan to in the next 2 years, select “No, we have forests-related policy criteria but do not record if clients/investees are compliant”.
- If you are not able to provide a percentage for the forest risk commodity because you do not have any policy expectations, select “No, we do not have forests-related policy criteria”.
Percentage of clients/investees compliant with forests-related policy expectations (column 3)
- Provide a percentage value for the number of clients/investees that meet all your expectations, in relation to the total number of clients/investees you finance/insure operating in the supply chain of the forests risk commodity.
- Figures reported in columns 3 and 5 should not exceed a combined total of 100%.
Percentage of portfolio exposure compliant with forests-related policy expectations (column 4)
- Provide a percentage value for the portfolio exposure to clients/investees that meet all your expectations, in relation to the total exposure to all clients/investees you finance/insure operating in the supply chain of the forest risk commodity.
- Figures reported in column 4 and 6 should not exceed a combined total of 100%.
Percentage of clients/investees / portfolio exposure near-compliant with forests-related policy expectations (columns 5 and 6)
- These columns are optional.
- If you are financing clients/investees that currently do not meet all your forests-related policy expectations, but you class as near-compliant, you are able to disclose the percentages of clients/investees and portfolio exposure here.
- To be classed as near-compliant, a client/investee should be working towards meeting your policy expectations and have plans in place to meet all policy expectations in a reasonable timeframe.
- If you are using a concept of near-compliance, explain in more detail what you class as near-compliant and the timeframe expected for working towards meeting your policy expectations in column 8.
- Figures reported in columns 3 and 5 should not exceed a combined total of 100%.
- Figures reported in columns 4 and 6 should not exceed a combined total of 100%.
Target year for 100% compliance (column 7)
- If you have a target for achieving full compliance with your forests-related expectations by 100% clients/investees, select when you are aiming to achieve this by.
Explain how you have calculated the percentage of clients and credit exposure compliant (column 8)
- For each commodity, explain briefly how you have calculated the percentage of clients/investees and portfolio exposure compliant.
- If you are using a concept of near-compliance, explain in more detail what you class as near-compliant and the timeframe expected for working towards meeting your policy expectations.
- You may provide any additional context to your disclosure, including any exclusions within your portfolio, or describe how compliance within your portfolio has increased or decreased.
Explain why you do not have a forests-related policy or why you do not record if clients are compliant (column 9)
- If you have not disclosed percentages for this forest risk commodity, explain why here.
- If applicable, give details of your organization's plans to record compliance with forests-related criteria.
Explanation of Terms
- Forests related policy expectations: This covers policy criteria clients/investees are required to meet (i.e. criteria you are willing to decline participation in financing deals and exit existing relationships over a period of time over, if not met by the client); and also covers criteria clients are only encouraged or expected to meet.
FW-FS Communications
(FW-FS6.1) Have you published information about your organization’s response to forests- and/or water-related issues for this reporting year in places other than in your CDP response? If so, please attach the publication(s).
Question dependencies
This question only appears if you select an industry sector that has a potentially critical impact on forests and/or water security in column 4 of question C-FS0.7.
Change from last year
New question
Rationale
Best practice in corporate environmental reporting is to integrate non-financial metrics and data into mainstream financial reports. Data users want to understand where and how companies communicate their forests- and water-related strategies, and whether these communications are in line with best practice.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Publication
|
Status*
|
Attach the document*
|
Page/Section reference*
|
Content elements*
|
Comment
|
Select from:
- In mainstream reports
- In other regulatory filings
- In voluntary communications
- In a voluntary sustainability report
- No publications, but reporting is underway to publish information about our response to forests- and/or water-related issues in the next two years
- No publications
- Other, please specify
|
Select from:
- Complete
- Underway – previous year attached
- Underway – this is our first year
|
[Attach the document]
|
Text field [maximum 500 characters]
|
Select all that apply:
- Governance
- Strategy
- Risks and opportunities
- Response to forests- and/or water-related risks and opportunities
- Financing/insurance of forest risk commodities
- Other, please specify
|
Text field [maximum 2,500 characters]
|
[Add row]
Requested content
General
- For climate change, this data is reported in C12.4.
- This question asks about communication of your position on deforestation and water security outside of your CDP response.
- Privately held companies that do not have a legal obligation to produce annual reporting should still select “In mainstream reports” if they publish any annual sustainability reporting.
- Even where the relevant information is web-based, you must produce a static document to attach, due to the need to maintain a fixed response over time that can be accessed in full at any time in the future; a URL is inherently dynamic and therefore cannot fulfil this requirement.
Publication (column 1)
- 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 forests- and/or water-related risks.
- Other regulatory filings are reports required through regional or national legislation, but which do not fall under the definition of mainstream reports stated above.
- Voluntary communications include optional sustainability/CSR reports or any other voluntary consumer facing publications, advertising, company websites, executive speeches and/or presentations.
- If you do not publish any content regarding your organization's response to forests- and/or water-related issues, select "No publications, but reporting is underway to publish information about our response to forests- and/or water-related issues in the next two years " or “No publications”, as appropriate.
- If you select “Other, please specify,” provide a label for the publication.
Status (column 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 forests - and/or water-related issues. If the whole document relates to forests and/or water security, please state this. If your document is only 1 page long, please still state this.
Content elements (column 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 organization. The exact provisions under which companies are required to deliver mainstream financial reports differ internationally, but will generally contain financial statements and other financial reporting, including governance statements and management commentary.
Glossary - Climate Change
- Acquisition: Obtaining ownership and control by one firm, in whole or in part, of another firm or business entity.
- Adaptation: Adjustment to climate change current or expected effects so the consequences to the business and environment are alleviated and beneficial opportunities are realized.
- Attribute: Descriptive or performance characteristics of a particular generation resource. For Scope 2 GHG accounting, the GHG emission rate attribute of the energy generation is required to be included in a contractual instrument in order to make a claim.
- Best available technique (BAT): Best available technique (BAT) refers to the available techniques which are the best for preventing or minimizing emissions and impacts on the environment. BAT include both the technology used, and the way your installation is designed, built, maintained, operated and decommissioned.
- Biogas: A mixture of methane (CH4) and carbon dioxide (CO2) used as fuel and produced by bacterial degradation of organic matter or through gasification of biomass. Included in this category are landfill gas and sludge gas (sewage gas and gas from animal slurries) and other biogas.
- Biogenic carbon: This refers to carbon which is contained in biomass (both above-ground and below-ground), dead organic matter, soil organic matter, and harvested products.
- Biomass: any organic matter, i.e. biological material, available on a renewable basis. Includes feedstock derived from animals or plants, such as wood and agricultural crops, and organic waste from municipal and industrial sources. Biomass fuels should be sustainably sourced and certified where possible, and include:
- Solid biofuels - solid fuels derived from biomass. Includes feedstock derived from animals or plants, such as wood and agricultural crops, and organic waste from municipal and industrial sources.
- Biogas - a mixture of methane (CH4) and carbon dioxide (CO2) used as fuel and produced by bacterial degradation of organic matter or through gasification of biomass.
- Liquid biofuels – liquid fuels derived from biomass such as ethanol and biodiesel.
- Board: Or “Board of Directors” refers to a body of elected or appointed members who jointly oversee the activities of a company or organization. Some countries use a two-tiered system where “board” refers to the “supervisory board” while “key executives” refers to the “management board".
- C-suite: A term used to collectively refer to the most senior executive team.
- Capital allocation: Refers to distributing and investing a company's financial resources in ways that will increase its efficiency and maximize its profits. Some options for allocating capital could include returning cash to shareholders via dividends, repurchasing shares of stock, issuing a special dividend, or increasing a research and development (R&D) budget. Alternatively, the company may opt to invest in growth initiatives, which could include acquisitions and organic growth expenditures.
- Capital expenditure: A measure of the value of purchases of fixed assets such as property, buildings, an industrial plant, technology, or equipment. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
- Carbon capture and storage (CCS): As defined by the IEA, a family of technologies and techniques that enable the capture of carbon dioxide (CO2) from fuel combustion or industrial processes, the transport of CO2 via ships or pipelines, and its storage underground, in depleted oil and gas fields and deep saline formations.
- Carbon capture, utilization and storage (CCUS): A family of technologies and techniques in which carbon dioxide (CO2) is captured and utilized/used. Examples of direct utilization include CO2 use in the food and drink industry and for enhanced oil recovery. CO2 can also be converted into chemicals or fuels. If CO2 is stored but not utilized, then the process should be classified as CCS.
- Climate-related risk: In line with the TCFD, this refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.
- Climate-related opportunity: In line with the TCFD, this refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.
- Climate transition plan: a time-bound action plan that clearly outlines how an organization will achieve its strategy to pivot its existing assets, operations, and entire business model towards a trajectory that aligns with the latest and most ambitious climate science recommendations, i.e., halving greenhouse gas (GHG) emissions by 2030 and reaching net-zero by 2050 at the latest, thereby limiting global warming to 1.5 degrees Celsius. Please refer to the CDP Climate Transition Plan technical note for more details.
- Combustion: Combustion refers to combustion within the company’s boundary giving rise to emissions of CO2, N2O, and CH4. Sources may include boilers, heaters, furnaces, incinerators, internal combustion engines, and turbines. Scope 1 GHG emissions exclude emissions of CO2 arising from the combustion and fermentation of biomass and biofuels; these emissions are reported as a separate category.
- Company: Throughout this questionnaire, “your company” refers collectively to all the companies, businesses, organizations, other entities or groups that fall within your definition of the reporting boundary.This term is used interchangeably with “your organization”, but CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Consolidation approach: The identification of companies, businesses, organizations etc. for inclusion within the reporting boundary of the responding organization is known as the “consolidation approach”. The way in which you report information for the companies that are included within the reporting boundary is known as the “consolidation approach” because, unless stated otherwise, the information you provide in response to the questionnaire should be presented as one “consolidated” result covering all of the companies, entities, businesses etc within your reporting boundary. The GHG Protocol states that two distinct approaches may be used to consolidate GHG emissions; the equity share and the control approaches. Control can be defined in either financial (financial control) or operational (operational control) terms.
- Consumption: Consumption includes the use of goods, waste disposal and end of life treatment of products sold by the reporting organization.
- Contractual instrument (or 'instrument'): Any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims. Markets differ as to what contractual instruments are commonly available or used by companies to purchase energy or claim specific attributes about it, but they can include energy attribute certificates (e.g. RECs, GOs), direct contracts (PPAs), green tariffs and other instruments.
- Direct costs: Also known as “costs of goods or services sold”. These expenses can be attributed to the manufacture of a particular product or the provision of a particular service.
- Divestment: A process for selling assets for financial, environmental, political or social goals.
- Electricity: In line with GHG Protocol, this term is used as shorthand for electricity, steam, and heating/cooling. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.
- Energy attribute certificates: A category of contractual instruments used in the energy sector to convey information about energy generation to other entities involved in the sale, distribution, consumption, or regulation of electricity.
- Feedstocks: Feedstocks are starting materials, ranging from fossil fuels to biomass-based resources. These materials are fed into a process, and converted into other commodities or resources, which are either used directly or further transformed . For example, in the steel industry, coking coal is converted to coke, which is used in the steel production. In the petrochemical industry, gaseous feedstocks (ethane, propane, or butane) are used to produce high value chemicals.
- Financial planning: In line with the TCFD recommendations, refers to an organization’s consideration of how it will achieve and fund its objectives and strategic goals. Financial planning allows organizations to assess future financial positions and determine how resources can be utilized in pursuit of short- and long-term objectives. As part of financial planning, organizations often create “financial plans” that outline the specific actions, assets, and resources (including capital) necessary to achieve these objectives over a 1- 5 year period. However, financial planning is broader than the development of a financial plan as it includes long-term capital allocation and other considerations that may extend beyond the typical 3-5 year financial plan (e.g., investment, research and development, manufacturing, and markets).
- Fugitives: Fugitives comprises all intentional or unintentional releases of carbon dioxide (CO2) methane (CH4) and other greenhouse gases. The primary sources of these emissions may include fugitive equipment leaks, evaporation losses, venting, flaring and accidental releases. Further examples of leak sources include valves, fittings, flanges, compressor seals, other compressor related leaks, heaters, dehydrators, and pipelines. Accidental fugitive emissions can be individually found and fixed in order to make the emissions near zero. Emissions from non-point sources, such as wastewater treatment and surface impoundments, should be accounted for under fugitive emissions.
- gCO2/kWh: Grams of carbon dioxide (gCO2) per kilowatt hour (kWh)of electricity consumed.
- gCO2e/kWh: Grams of carbon dioxide equivalents (CO2e) emitted per kilowatt hour (kWh) of electricity consumed. CO2-equivalents allow for other Greenhouse Gases (GHGs) to be expressed in relation to CO2 based on their Global Warming Potentials (GWPs).
- GHG inventory: A quantified list of an organization’s greenhouse gas emissions and sources.
- Global warming potential (GWP): The Intergovernmental Panel on Climate Change (IPPC)’s Fifth Assessment Report (AR5) defines the Global Warming Potential (GWP) as “an index, based on radiative properties of greenhouse gases, measuring the radiative forcing following a pulse emission of a unit mass of a given greenhouse gas in the present day atmosphere integrated over a chosen time horizon, relative to that of carbon dioxide. The GWP represents the combined effect of the differing times these gases remain in the atmosphere and their relative effectiveness in causing radiative forcing. The Kyoto Protocol is based on GWPs from pulse emissions over a 100-year time frame.” By using GWPs, GHG emissions from multiple gases can be standardized to a carbon dioxide equivalent (CO2e).
- Greenhouse gases: In line with Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) and amendment issued by the Greenhouse Gas Protocol on May 2013 the basket of greenhouse gases (GHGs) consists of:
- Carbon dioxide (CO2);
- Methane (CH4);
- Nitrous oxide (N2O);
- Hydrofluorocarbon family of gases (HFCs);
- Perfluorocarbon family of gases (PFCs);
- Sulfur hexafluoride (SF6), and;
- Nitrogen trifluoride (NF3).
Nitrogen trifluoride (NF3) is now considered a potent contributor to climate change and is therefore mandated to be included in national inventories under the UNFCCC. NF3 should also be included in GHG inventories under the GHG Protocol Corporate Standard, and the GHG Protocol Corporate Value Chain (Scope 3) Standard.
- Heating Value: Lower heating value (LHV) and Higher heating value (HHV), also known as net calorific value (NCV) and gross calorific value (GCV) respectively, are different measures of heat energy released from fuel combustion. Figures measured in HHV are larger because HHV includes the latent heat of water vaporization from combustion, whereas LHV does not. The difference between LHV and HHV is related to the fuel’s hydrogen content.
- Indirect (operating) costs: Refers to the essential expenses incurred in order to maintain the business including wages, rent, transport, energy (electricity, fuel, etc.), maintenance, and so on. These expenses cannot be attributed to the manufacture of a particular product or the provision of a particular service - they are standard costs that apply regardless of the volume of goods produced.
- Intensity metrics : Intensity metrics describe an organization’s CO2e emissions in the context of another business metric. In this way, the emissions are normalized to account for growth. Intensity is calculated by dividing the CO2e emissions figure (the numerator) by an alternative business metric (the denominator), such as the number of full-time equivalent employees, the revenue or tons of aggregate produced.
- Land use: Land use is based on the functional dimension of land for different human purposes or economic activities. Typical categories for land use are dwellings, industrial use, transport, recreational use or nature protection areas. Additional land use metrics can relate to the climate-related arrangements, activities, and inputs regarding these categories that organizations engage in, and can include land use change and land use management metrics.
- Low-carbon energy: In line with the IEA definition, low-carbon technologies are technologies that produce low – or zero – greenhouse-gas emissions while operating. In the power sector this includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation technologies. Natural gas, combined cycle gas turbine and fossil fuel-based combined heat and power (cogeneration), despite being less carbon intensive than other means of electricity production like coal, are not considered low-carbon.
- Low-carbon product or service: CDP broadly defines a low-carbon product/service as a product or service which has comparatively lower emissions across its entire life cycle (i.e. from material acquisition through to product end-of-life) when compared to a baseline (business-as-usual) scenario or reference product of a similar function. Note that a product can only be considered low-carbon if its production and use does not prevent and/or contributes to reaching net-zero by 2050 or sooner. To define whether the product or service is low-carbon, CDP encourages the use of existing industry taxonomies and frameworks such as Climate Bonds Taxonomy, the IEA Energy Technology Perspectives (ETP) Clean Energy Technology Guide, and the EU Taxonomy for Environmentally Sustainable Economic Activities.
- Mainstream reports: In line with CDSB, this refers to the annual reporting packages in which organizations are required to deliver their audited financial results under the corporate, compliance or securities laws of the country in which they are incorporated or, if relevant, operate. Mainstream reports are traditionally publicly available. They provide information to existing and prospective investors about the financial position and financial performance of the organisation. The exact provisions under which companies are required to deliver mainstream financial reports differ internationally, but will generally contain financial statements and other financial reporting, including governance statements and management commentary.
- Metric tons of CO2 (tCO2): a metric ton of carbon dioxide (CO2) has a mass of 1000 kg, equivalent to 2204.62 lbs. The “long ton”, a term generally used in Britain, is equivalent to 2,240lbs and the “short ton” is generally used in the USA and is equivalent to 2,000 lbs.
- Metric tons of CO2-equivalent (tCO2e): a metric that allows for other Greenhouse Gases (GHGs) to be expressed in relation to CO2 based on their Global Warming Potentials (GWPs). A metric ton is 1000 kg, equivalent to 2204.62 lbs.
- Mitigation: or "climate change mitigation" refers to efforts to reduce or prevent emission of greenhouse gases.
- Organization: Throughout this questionnaire, “your organization” refers collectively to all the companies, businesses, other entities or groups that fall within the definition of your reporting boundary (provided in C0.5). This term is used interchangeably with “your company”. CDP recognizes that some disclosing organizations may not consider themselves to be, or be formally classified, as “companies”.
- Process emissions: emissions from industrial production processes which chemically or physically transform materials (e.g. CO2 from the calcinations step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.)
- Purchased or acquired electricity, steam, heat, and/or cooling: Specific information on these energy carriers can be found in section 5.3.1 and Appendix A of the GHG Protocol Scope 2 Guidance. The terms ‘purchased’ and ‘acquired’ are used when your organization has received the energy from a third party. This rules out energy that is sourced from within the organizational/sector boundary. It should be noted that purchased or acquired heat does not include the heat content, or calorific value, of fuels that are purchased or acquired by the organization. This is accounted for at the point of fuel consumption, which falls inside the Scope 1 boundary. You should also be aware that steam, heat or cooling received via direct line as ‘waste’ from an industrial process, should still be accounted for if it is consumed.
- Renewable energy: CDP follows the definition of renewable energy given in the GHG Protocol: “Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy and biofuels.”
- Reporting boundary: This determines which organizational entities, such as groups, businesses and companies, are included in or excluded from your disclosure. These may be included according to your financial control, operational control, equity share or another measure. Please consistently apply this organizational boundary when responding to questions unless you are specifically asked for data about another category of activities.
- Research and development (R&D): Refers to the activities companies undertake to innovate and introduce new products and services. It is often the first stage in the development process. Investment in R&D is a type of expense associated with the research and development of a company's goods or services
- Revenue: Income arising in the course of an entity’s ordinary activities (less returns, allowances and discounts) - before deducting costs for the goods/services sold and operating expenses to arrive at profit (based on the International Financial Reporting Standard)
- Risk management: Risk management involves identifying, assessing and responding to risk to make sure organizations achieve their objectives. It must be proportionate to the complexity and type of organization involved (based on Institute of Risk Management, 2016).
- Scenario analysis: A scenario describes a potential path of development that will lead to a particular outcome or goal. Scenario analysis is the process of highlighting central elements of a possible future and drawing attention to key factors (or critical uncertainties). It is a tool to enhance critical strategic thinking by challenging “business-as-usual” assumptions, and to explore alternatives based on their relative impact and likelihood of occurrence. Scenarios are not forecasts or predictions, but tools to describe potential pathways that lead to a particular outcome or goal.
- Qualitative scenarios: A high level, narrative approach to scenario analysis, suitable for organizations familiarizing themselves with the process. Qualitative scenario analysis explores relationships and trends for which little or no numerical data is available.
- Quantitative scenarios: A more detailed method for conducting scenario analysis, with greater rigor and sophistication in the use of data sets and quantitative models which may warrant further analysis. Quantitative scenario analysis can be used to assess measurable trends and relationships using models and other analytical techniques.
- 2°C or lower scenario: A core element of the TCFD’s Strategy recommendation c) “Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario”. As noted on page 26 of the TCFD Guidance on Scenario Analysis for Non-Financial Companies, the TCFD now recommends that in assessing transition risks, companies should consider using or developing a 1.5°C scenario for the “2°C or lower scenario”, stating that “a 1.5°C scenario would provide stronger diversity in assumptions about future policies and technologies. A 1.5°C scenario also aligns with the latest scientific research from the IPCC, the growing momentum of pledges to limit emissions to net-zero by 2050, and the spirit of the Paris Agreement, demonstrating a company’s alignment to recognized temperature targets.”
- Publicly available scenarios: Taken from TCFD recommendations, “Publicly available scenarios” refer to scenarios which are:
- used/referenced and issued by an independent body;
- wherever possible, supported by publicly available datasets;
- updated on a regular basis; and linked to functional tools (e.g., visualizers, calculators, and mapping tools) that can be applied by organizations.
- Sequestration of CO2: The fixation of atmospheric carbon dioxide in a carbon sink through biological or physical processes.
- Strategy: In line with TCFD recommendations, refers to an organization’s desired future state. An organization’s strategy establishes a foundation against which it can monitor and measure its progress in reaching that desired state. Strategy formulation generally involves establishing the purpose and scope of the organization’s activities and the nature of its businesses, taking into account the risks and opportunities it faces and the environment in which it operates.
- Substantive impact: 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.
Important Information
Companies should not consider their CDP response a means of complying with any regulatory requirement to share financially sensitive non-public information with the market. You may wish to consult with your financial, legal, and/or compliance departments for advice on your company’s general approach to the provision of forward-looking statements and information concerning risks.
CDP questionnaire copyright and licensed use
The copyright to CDP’s annual questionnaire/s is owned by CDP Worldwide, a registered charity number 1122330 and a company limited by guarantee, registered in England number 05013650. Any use of any part of the questionnaire, including the questions, must be licensed by CDP. Any unauthorized use is prohibited and CDP reserves the right to protect its copyright by all legal means necessary.
Terms for responding to the CDP Climate Change Questionnaire 2022
These terms apply if you are submitting a response to the CDP Climate Change Questionnaire 2022. If you are also submitting a response to the CDP Forests Questionnaire 2022 or the CDP Water Security Questionnaire 2022 the corresponding Terms for responding to each questionnaire will also apply.
1.DEFINITIONS
Affiliate(s): means any entity that controls, is controlled by, or is under common control with a party. For the purposes of this definition, “control” of an entity means the ownership, directly or indirectly, of more than fifty percent of the outstanding voting securities or capital stock of such entity, or the legal power to direct or cause the direction of the general management and policies of such entity.
Bank Program Member: means a bank that has entered into a Bank Program member agreement with us and is requesting data from its clients.
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 company number 05013650). References to “we”, “our” and “us” in these terms are references to CDP.
Deadline: means 27 July 2022.
Fee: means the fee set out in the table at the end of these terms, which is exclusive of any applicable taxes.
Investor Signatory: means an organization that has entered into an investor signatory agreement with us and is listed on our website from time to time.
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.
Net Zero Asset Managers initiative: means the network partners of the Net Zero Asset Managers initiative, namely: CDP; PRI (Principles for Responsible Investing) PRI Association, of 25 Camperdown Street, London, E1 8DZ, UK; IIGCC (Institutional Investor Group on Climate Change) of Pennine Place 2a Charing Cross Road London, WC2H 0HF UK; AIGCC (Asian Investors Group on Climate Change) of PO Box Q937 Queen Victoria Building, Sydney NSW 1230 Australia; IGCC (Investors Group on Climate Change), of PO Box Q937, Queen Victoria Building, NSW 1230, Australia; and Ceres, of 99 Chauncy Street, 6th Floor, Boston, MA 02111 USA.
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 2022.
RE100 initiative: means CDP and The Climate Group (registered charity no. 1102909 and registered company no. 4964424) in its capacity as leader (in partnership with us) of the global corporate renewable energy initiative bringing together businesses committed to 100% renewable electricity.
Requesting Authority: means the organisation(s) requesting you to complete the Questionnaire (or parts thereof in the case of the RE100 initiative) as listed on your CDP response dashboard from time to time (accessed by signing in to our website), which may include (1) Investor Signatories; (2) Supply Chain Members; (3) the Net Zero Asset Managers initiative; (4) Bank Program Members; and (5) the RE100 initiative.
Responding Company: means the company responding to the Questionnaire. References to “you” and “your” in these terms are references to 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, the Billing Company (where a Fee is payable and 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. If you do not agree to these terms, please contact us at our Help Center: https://casemgmt-crm.cdp.net/en-US/
4.RESPONDING TO OUR QUESTIONNAIRE
4.1 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.
4.2 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 28 September 2022 (the date our online response system will close in 2022) it will not be scored and may not be included in any report, data product or other analysis.
4.3 Responding
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 your Requesting Authorities and other third parties and scoring your response. Where a Responding Company is headquartered in the EU, we may share your reported climate and environmental actions on the European Climate Pact website if you give us your consent to do so when making your submission on our online response system. The European Climate Pact is a European Commission initiative bringing citizens and organisations together to achieve a climate-neutral Europe, and more information can be found here: https://europa.eu/climate-pact/about/about-pact_en
Non-public responses. If your response is non-public, we may use it only as follows:
(a) other than information you submit in response to the Supply Chain module (2022 Climate Change) to which (e) below applies, make it available as soon as it is received by CDP to each of your Requesting Authorities other than the RE100 initiative either directly or through Bloomberg terminals in the case of Investor Signatories, for any use within their organizations (including their Affiliates in the case of Investor Signatories, Supply Chain Members and Bank Program Members) 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;
(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) where your Requesting Authorities include Investor Signatories, the Net Zero Asset Managers initiative and/or the RE100 initiative, 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 (i.e. if your Requesting Authorities are Supply Chain Members and/or Bank Program Members only and you respond non-publicly this will not apply);
(d) we may make information you submit in response to questions C0.2, C0.3, C0.5, C4.2a, C4.3b, C8.2g, C8.2h, C8.2j, C8.2k, C8.2l, C8.2m, C10.1a, C10.1b, C12.1a, and C12.2a (relating to RE100), available to each of your Requesting Authorities for any use within their organization (including their Affiliates in the case of Investor Signatories, Supply Chain Members and Bank Program Members) but not for publication unless any data from your response has been anonymized or aggregated in such manner that it has the effect of being anonymized; and
(e) information you submit in response to the Supply Chain module (2022 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 (and its Affiliates) you select for each row will have access to the information in it. For all other questions in the Supply Chain module (2022 Climate Change) the information you submit will be accessible to any Supply Chain Member (and its Affiliates) that has asked you to respond to the Questionnaire. All information you submit in the Supply Chain module (2022 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.
4.4 Amending your response. You may reopen a response you have submitted before the Deadline (27 July 2022). To do so you must notify us that you wish to reopen your response by 13 July 2022 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 28 September 2022), 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 your Requesting Authorities or other third parties.
From 14 July 2022, 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 5 October 2022 at the earliest. Please note that the final date for requesting an amendment is 30 November 2022 and any changes you request to your submitted response from 14 July 2022 may not be reflected in any score, report, data product or other analysis or use of your response. You may not make amendments if the Scoring Special Provisions apply to you. Please contact our Help Center: https://casemgmt-crm.cdp.net/en-US/ for more information about amending your response.
4.5 Scoring of responses to the Full Version (of the Questionnaire). Except where the Scoring Special Provisions apply, if you submit your response to the Full Version in English (or the applicable language for your location set out below) using our online response system:
(a) by the Deadline, your response will be scored;
(b) after the Deadline but on or before 10 August 2022 you can request an ‘On-Demand’ score for a fee. Only a limited number of On-Demand scores are available in 2022 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. The following languages may be used to submit your response to the Full Version of the Questionnaire: Chinese (if you are located in China); Japanese (if you are located in Japan); Portuguese (if you are located in Brazil); or Spanish (if you are located elsewhere in Latin America).
Scoring Special Provisions: Where you are headquartered or operate in Ukraine and do not submit a response, we will not attribute any score to your response and will recognise a pause in reporting where appropriate. Where you are headquartered in Belarus or the Russian Federation, your response will not be eligible for scoring.
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.
4.6 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” then, unless you achieve an A grade in which case we may in any event make your score public, we will only make it available to your Requesting Authorities, 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.
If you are responding to Supply Chain Members and Bank Program Members only (i.e. these are your only Requesting Authorities), unless you achieve an A grade, in which case we may in any event make your score public, we will only make your score available to any Supply Chain or Bank Program 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.
If you are a Financial Services company responding to the Forests and Water Security module of the Questionnaire, your score for your Forests response will be private and we will make it available only 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 (and we will not make it available to your Requesting Authorities). Note that your Water Security response will not be scored.
4.7 Future Questionnaires. Your submission of your response for the current year also constitutes your request to us to invite you and to remind you to respond in future years but you acknowledge that any future responses will be made upon the then-current version of these terms which you will need to accept at that time.
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, or 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 to the Billing Company. The Fee is payable once regardless of how many responses (Climate Change, Forests and Water Security) you submit in 2022. Please note that you may be charged 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 plus any applicable taxes to the Billing Company unless it is listed, incorporated or headquartered in one of the following countries:
Albania, Belarus, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, the Slovak Republic, Slovenia and Ukraine.
Exemptions from the Fee. A Responding Company is exempt from paying the Fee if:
(a) you have been requested to respond by Investor Signatories, the Net Zero Asset Managers initiative and/or the RE100 initiative and you have not submitted a response to CDP in the last three years; or
(b) your only Requesting Authorities are Supply Chain Members and/or Bank Program Members (and you have not been requested to respond by Investor Signatories, the Net Zero Asset Managers initiative or the RE100 initiative).
Please note we will decide in our absolute discretion as to whether the Fee is payable to the Billing Company 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 to the Billing Company 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 intellectual property rights including copyright and database 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;
(c) you are a legal entity and not a sole trader, partnership or natural person or persons; and
(d) the response that you submit:
(i) does not infringe the rights of any third party (including privacy, publicity or intellectual property rights);
(ii) does not defame any third party; and
(iii) does not include any Personal Data.
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, or for fraud or fraudulent misrepresentation.
We are not liable for financial losses. Subject to these terms, each of 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.
We are not liable for consequential losses. Subject to these terms, each of CDP and the Billing Company have no liability to you in any circumstances for any indirect or consequential loss or damage of any nature whatsoever.
Exclusion of liability. Subject to these terms, each of 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 or any reliance placed upon your response or your score by you or 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 £848 if you are not required to pay the Fee.
9. DATA PROTECTION
Each party acknowledges that during the course of their relationship CDP may process personal data including personal data which may be provided to it by or on behalf of the Responding Company including the personal data of its registered users of the CDP dashboard and other contacts. CDP will only process such personal data for purposes related to its relationship with the Responding Company including inviting and assisting the Responding Company to complete the reporting process and sharing the personal data with Supply Chain Members and Bank Program Members to assist in effective communications and engagement between CDP stakeholders. You shall ensure that any relevant data subjects receive a fair processing notice which includes the above information and includes a reference to CDP’s privacy notice available at https://www.cdp.net/en/info/privacy-policy and shall otherwise ensure that CDP is able to process all personal data provided to it by or on behalf of the Responding Company for the above purposes in compliance with applicable data protection legislation including the Data Protection Act 2018 as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019 which merge the previous requirements of that Act with the requirements of the General Data Protection Regulation ((EU) 2016/679) (“UK GDPR”).
10. 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. The Billing Company may enforce these terms for its own benefit but otherwise no other person shall have any rights to enforce any of its terms.
Entire agreement. These terms constitute the entire agreement between you and us in relation to your response to the CDP Climate Change Questionnaire 2022.
Variation. CDP reserves the right to change these terms at any time. The consent of the Billing Company is not needed and any such changes shall be effective immediately or such other time as CDP elects. 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 submit 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.
11.AMOUNT OF FEE
Location of Responding Company
|
Fee (exclusive of any applicable taxes)
|
Brazil
|
BRL 6,060
|
China
|
CN¥ 7,800
|
Europe (excluding UK)
|
EUR 1,000
|
India
|
INR 86,400
|
Japan
|
JPY 105,300
|
UK
|
GBP 848
|
All other countries
|
USD 1,055
|
12.BILLING COMPANY
Billing Company | Location of Responding Company |
---|
CDP Worldwide
| All countries/regions not listed elsewhere in this table
|
CDP Worldwide (Europe) gGmbH
| Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland
|
CDP North America, Inc
| Canada, USA
|
Carbon Disclosure Project (Latin America)
| Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay, Venezuela
|
Beijing Carbon Disclosure Project Environment Consulting Co., Ltd. (北京诚度普 环境咨询有限公司) | China |
CDP Operations India Private Limited
| India
|
一般社団法人
CDP Worldwide-Japan
| Japan
|