Presentation PRI & CFA Netherlands October 10 th 2017

Transcription

1 Presentation PRI & CFA Netherlands October 10 th 2017 Laurent Babikian Director Investor Engagement Europe CDP Europe

2 Outline I. Companies reporting to CDP II. Progress towards the 2-degree economy III. The growing importance of water stewardship IV. The importance of environmental transparency and leadership Page 2

3 Mission and what we do CDP s mission To transform the global economic system to prevent dangerous climate change and value our natural resources by putting relevant information at the heart of business, investment and policy decisions Forests CDP collects information on: Climate Change Water security Forests From: Publicly listed companies Their suppliers World s largest cities Climate Change INVESTORS SUPPLY CHAIN MEMBERS Water Page 3

4 I. Companies responding to CDP Page 4

5 Number of Signatories Assets (US$ Trillion) Signatory Investors & AUM, CDP Signatories & Signatory Assets: Climate Change Signatories Water Signatories Carbon Action Signatories Forests Signatories Climate Change Signatory Assets Water Signatory Assets Carbon Action Signatory Assets Forests Signatory Assets

6 CDP reporting in companies 199 companies 1426 companies 57.5% of global market cap disclosed to CDP in 2016 > 300 cities & 60 states and regions

7 II. Towards a 2-degree economy Climate Change Questionnaire: current status and forward-looking indicators Management CC1. Governance CC2. Strategy CC3. Targets & initiatives CC4. Communications Risks & opportunities CC5. Climate change risks CC6. Climate change opportunities Emissions CC7. Methodology CC8. Emissions data CC9. Scope 1 emissions breakdown CC10. Scope 2 emissions breakdown Sign off CC11. Energy CC12. Emissions performance CC13. Emissions trading CC14. Scope 3

8 Rewarding leadership: criteria for the A-list (2017) Page 8

9 CDP s scoring A B Leadership D Disclosure This is where we re at C Awareness What does climate change mean to our company? Management How do we manage our climate change risks and impacts? How can we solve the climate change problem?

10 2016 global results: business transitioning 85% of companies have targets to reduce emissions 55% of companies have targets for 2020 or beyond 29% of companies use internal carbon pricing 19% plan to do so Page 10

11 2016 global results: emissions gap Achieving current targets would take companies one quarter of the way to keeping global warming below 2 degrees Only 14% of companies have goals for 2030 or beyond 9% have committed to align targets with climate science for a 2 C pathway Page 11

12 The need to accelerate decarbonization 49 GTCO2 / yr We will exceed the budget in ~20 years! Bucket: < 2 C carbon budget 1010 GTCO GT CO2 Remaining carbon budget Cumulative emissions Page 12

13 Leadership commitments bold 180+ commitments to action 1,200+

14 Science Based Targets Science Based Targets are greenhouse gas emissions reduction targets aligned with the latest climate science for keeping warming below 2 C

15 Growing momentum Since officially launching in June, 2015, up to Sept 2017: Companies have formally joined the SBTi Companies have approved targets Companies joining the initiative on average every week Page 15

16 Carbon pricing Companies identify it as effective approach e.g. Incentive to reallocate resources toward low-carbon activities Business case for R&D investments Helps reveal hidden risks and opportunities Page 16

17 Corporate carbon pricing: 2016 numbers Page 17

18 III. Growing importance of water stewardship Water insecurity - the case for action UN predicts a 40% global shortfall in water supply by 2030; Excessive loads of nitrogen and phosphate, from agriculture, industrial production and mining, are degrading the quality of the water we have left; and

19 Water risks are rapidly materializing for business US$14 billion in water-related impacts, a five-fold increase from last year Over a quarter of companies experienced detrimental impacts from water Companies expect over half (54%) of the 4,416 water risks they identified to materialize within the next six years. Page 19

20 CDP s Water Program CDP Water Questionnaire 150 companies responding in 2010 to 1,432 companies in 2016 Business Alliance for Water and Climate Change (BAFWAC) Businesses commit to measure and minimize water risks and impacts by reporting to CDP New Water Commitment as part of We Mean Business 42 companies committed to Take Action to improve water security

21 IV. The importance of environmental transparency and performance Responding to key sustainability policy frameworks Sustainable Development Goals TCFD Recommen dations CDP Responders EU Non- Financial Reporting Directive Paris Agreement Energy Transition Act (Art. 173)

22 CDP data powers the marketplace Corporate Knights Global Trucost CRO s 100 Best Corporate Citizens SustainalyticsRankings CDP DJSI FTSE4Good Index Series

23 CDP leaders outperform: STOXX GCCL EUR vs STOXX Global 1800 EUR +33% Points sur 7 ans

24 Climetrics: Disclosing the climate change leaders The Climetrics rating is the first to rank close to 3,000 equity funds for their climate impact. Symbolized by green leaves issued on a scale from 1 to 5. Top ratings are publicly available via a dedicated website at Page 24

25 Benefits for institutional fund investors Compare Integrate Engage Climetrics allows Climetrics allows Climetrics helps to to compare to integrate engage with equity funds on climate impact asset managers climate impact into fund on the topic of selection and climate change monitoring Top ratings are available for free online at Fund specific reports with detailed results will be available in the future Page 25

26 Rating methodology - Overview Three quantitative layers of analysis to assess climate impact along the investment process. A key focus is on the portfolio holdings, assessing the climate performance of investee companies 10% 5% Innovative model to assess the climate performance of approximately 3,000 companies 85% Asset Manager Level Fund Investment Policy Level Portfolio Holdings Level

27 Join us as a CDP Signatory or Member Support us in collecting high-quality primary data from the companies you invest in Access our extensive qualitative and quantitative databases on Climate Change, Water and Forest Data Access our awarded quarterly research series on highest emitting sectors Access the estimation of scope1, 2 and 3 for 3700 companies including all MSCI ACWI

28 Merci! Please contact me at Page 28