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Paul Simpson CEO The Climate & Ecological Emergency From - - PowerPoint PPT Presentation

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Paul Simpson CEO The Climate & Ecological Emergency From Vision to Action Tokyo - Tuesday 19 th November 2019 IPCC Special Report 1.5C 2 2 Paul Simpson| @CDP_PaulS IPCC SPECIAL REPORT ON 1.5 C Key takeaways akeaway 1: Half a degree

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CEO

Paul Simpson

The Climate & Ecological Emergency From Vision to Action

Tokyo - Tuesday 19th November 2019

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IPCC Special Report 1.5C

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Paul Simpson| @CDP_PaulS

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IPCC SPECIAL REPORT ON 1.5°C

Key takeaways

Paul Simpson | @CDP_PaulS

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T akeaway 1: Half a degree of warming makes a big difference

Source: Levin, K. (2018, Oct 7). 8 Things Y

  • u Need to KnowAbout the IPCC 1.5˚C Report. Retrieved

from https://www.wri.org/blog/2018/10/8-things-you-need-know-about-ipcc-15-c-report

Selected impacts

1.5°C 2.0°C 2°C impacts

Global population exposed to severe heat at least once every 5 years

14% 37% 2.6x worse

Number of ice-free artic summers

At least one every 100 years At least one every 10 years 10x worse

Reduction in maize harvest in tropics

3% 7% 2.3x worse

Further decline in coral reefs

70-90% 99% Up to 29% worse

Decline in marine fisheries

1.5 M tonnes 3 M tonnes 2x worse

Paul Simpson| @ CDP_PaulS

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IPCC SPECIAL REPORT ON 1.5°C

Key takeaways Takeaway 2: We need to transition towards a net-zero economy in the next 3-5 decades to keep warming at no more than 1.5°C: Net-zero operations; Net-zero supply chains Net-zero products & services; Net-zero investments;

Paul Simpson | @CDP_PaulS

Sources: based on data from IAMC 1.5°C Scenario Explorer and Data hosted by IIASA and Global Carbon Project. (2017). Supplemental data of Global Carbon Budget 2017 (Version 1.0

Paul Simpson| @ CDP_PaulS

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Paul Simpson | @CDP_PaulS 5

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Paul Simpson | @CDP_PaulS

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WATER SECURITY – A GLOBAL RISK DRIVER

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Paul Simpson | @CDP_PaulS

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Emissions from deforestation

Bulleted List (22) Bulleted List (22) Bulleted List (22) Bulleted List (22)

Conserving forests could cut carbon emissions by as much as getting rid of every car on earth. WRI

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Forests provide key ecosystem services

 1.6 billion people (>20% of the world’s population) rely on forests for their livelihoods  75% of accessible freshwater depends on the filtration & water storage provided by forests  At least 1/3rd of the world’s largest cities rely on forests for water  Forests hold up to 80% of terrestrial biodiversity

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New Norms Emerging in response to the crisis

Paul Simpson| @ CDP_PaulS

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US ESG Investing: Going Mainstream

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Paul Simpson | @CDP_PaulS

Total US-domiciled AUM using SRI strategies grew from $8.7 trillion in 2016 to $12.0 trillion in 2018, a 38% increase This represents 26% – or 1 in 4 dollars, up from 1 in 6 in 2016

ACTION

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Global ESG: Also Going Up

  • Europe: SRI assets grew almost 17% from 2016-2018 ($12.04 trillion to 14.08 trillion).1
  • Canada: SRI assets grew 56.4% from 2016-2018 ($1.09 trillion to $1.70 trillion), representing

just over half of all professionally managed assets in the country.2

  • Australia and New Zealand: SRI assets grew 42.2% from 2016-2018 ($5.16 billion to $7.34

billion), representing 63% of all professionally managed assets in the country.3

  • Asia ex Japan: SRI assets grew 16% from 2014-2016 ($45 billion to $52.1 billion).4
  • Japan: SRI assets grew 360% from 2016-2018 ($4.74 billion to $2.18 trillion), making Japan

the third largest center for sustainable investing after Europe and the US.5

  • Africa: SRI assets grew 21% from 2016-2017 ($3.54 billion to $4.28 billion) across nine

countries on the continent.6

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1.GSIA. Global Sustainable Investment Review 2018 2 GSIA. Global Sustainable Investment Review 2018 3 GSIA. Global Sustainable Investment Review 2018 4 GSIA. Global Sustainable Investment Review 2016 **latest year that GSIA provided SRI data for Asia** 5 GSIA. Global Sustainable Investment Review 2018 6 Bertha Centre for Social Innovation and Entrepreneurship – University of Cape Town. African Investing

for Impact Barometer, 2017 ACTION

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Paul Simpson | @CDP_PaulS

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Environmental disclosure goes mainstream

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Paul Simpson | @CDP_PaulS

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Climate change theme 228 300 349 915 1395 2166 2403 2903 3531 4112 4482 4968 5532 5815 6251 6937 8360 Water security theme 176 283 345 589 1064 1237 1426 1997 2113 2433 Forests theme 100 138 159 179 199 264 455 543 Unique Disclosers 228 300 349 915 1395 2166 2403 2906 3536 4140 4539 5001 5624 5863 6316 7018 8443 228 300 349 915 1395 2166 2403 2903 3531 4112 4482 4968 5532 5815 6251 6937 8360 176 283 345 589 1064 1237 1426 1997 2113 2433 100 138 159 179 199 264 455 543 228 300 349 915 1395 2166 2403 2906 3536 4140 4539 5001 5624 5863 6316 7018 8443 1000 2000 3000 4000 5000 6000 7000 8000 9000 Climate change theme Water security theme Forests theme Unique Disclosers

In 2019:

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100+ CEOs publicly supported the TCFD recommendations on launch 500+ global companies have now supported the TCFD’s recommendations 20 companies have committed to implementing the TCFD’s recommendations in the next three years through CDSB’s commitment; and 130 investors (with over $13 Trillion AUM) have written to the G20 to encourage the group to consider the TCFD’s recommendations as input to their national disclosure rules.

Gathering momentum of the TCFD recommendations

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Paul Simpson | @CDP_PaulS Paul Simpson | @CDP_PaulS

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Japan

Highest number of TCFD supporters Position Japan as leader in TCFD implementation TCFD Coalition Collaboration with other financial centres globally Strong involvement by

 Ministry of the Environment  Japan Financial Services Agency  Ministry of Economy, Trade and Industry  Japan Exchange Group

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TCFD 2019 Status Report

The report makes special mention of CDP’s climate change questionnaire alignment with TCFD noting that over 70%

  • f responding companies answered 21 or

more of the 25 TCFD aligned questions

Paul Simpson | @CDP_PaulS

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Change image to relevant image

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CDP AND TCFD

Paul Simpson | @CDP_PaulS

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2017/18 2018/19 2019/20

  • 15 of 22 TCFD Sectors with

sector-specific questionnaires

  • Updated core questionnaires

to align with TCFD (Climate Change, Water, Forests)

  • Aligning the structure of CDP

questionnaires with the four TCFD themes

  • Two technical notes on TCFD

and scenario analysis

  • A year of review for the

general questionnaires and 15 sector-specific questionnaires

  • 22 of 22 TCFD Sectors with

sector-specific questionnaires

  • Release of final three non-

financial sector-specific questionnaires

  • The four Financial Sectors

receiving sector-specific questionnaires

Over 8000 companies are already working on their TCFD aligned disclosures through CDP

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Science Based Targets

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Paul Simpson | @CDP_PaulS

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Science Based Targets initiative

Overview

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  • More than 680 companies

in nearly 40 countries around the world are developing new business strategies that are aligned with climate science.

  • Directly

responsible for nearly 1,000 MT CO2e, roughly equal to Brazil’s annual emissions.

  • US$10+

trillion in market value, comparable to the value

  • f

the second largest stock exchange in the world, NASDAQ.

  • Nearly a fifth of Fortune Global 500 companies

are committing to set science-based emissions reduction targets.

#sciencebasedtargets

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Introduction l Business stepping up ambition for 1.5°C

#sciencebasedtargets

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► In order to catalyse corporate leadership, a

global network

  • f

UN agencies, business

  • rganizations

and industry partners came together to collectively call on companies to step up and commit to align the ambition of their targets to the ambition required to limit global temperature rise to 1.5°C above pre-industrial levels;

► To

the end

  • f

October,

  • ver

100 major corporations had had signed the pledge committing to align ambition to 1.5°C within 24 months.

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Science Based Targets initiative

Critical sectors taking action

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Some of the world’s highest-emitting companies are taking steps to drastically reduce their emissions and transform their businesses by setting science-based targets. They include:

  • Cement: Some of the world’s largest cement companies - a sector responsible for 6% of global CO2 emissions

including include Irish cement manufacturer CRH and India’s Dalmia Cement and Ambuja Cement.

  • Transport: Major automotive companies - including Daimler, Honda, Nissan, PSA Peugeot Citroen, Renault,

Toyota and Yamaha, the road transport sector accounting for 17% of global CO2 emissions.

  • Chemicals: Some of the largest chemicals companies including AkzoNobel (Netherlands) and Japanese

chemicals companies Sekisui Chemical, Sumitomo Chemical and Zeon Corporation. The chemicals sector is responsible for an eighth of global industrial CO2 emissions.

  • Power generation: Major electric utilities including Enel, NRG Energy, EDP - Energias de Portugal and SSE. The

electric utilities industry is responsible for a quarter of global emissions.

  • Food and agriculture: Several of the world’s largest food companies including Kellogg, Danone, Diageo, Nestle,

McDonald’s and Mars.

#sciencebasedtargets

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Science Based Targets initiative

Commitments by country

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Top 10 countries:

  • 1. USA
  • 2. Japan
  • 3. United Kingdom
  • 4. France
  • 5. Spain
  • 6. India
  • 7. Sweden
  • 8. Germany
  • 9. Finland

10.Switzerland

#sciencebasedtargets

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Government Policy Evolving

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Paul Simpson | @CDP_PaulS

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REGULA TORY CHANGES AND DISCLOSURE INITIA TIVES

United Kingdom Canada

  • Canadian Securities

Administrators climate-related disclosure project

  • Expert Panel on

Sustainable Finance supports TCFD

  • CSA review includes

actions on climate risk disclosure

France

  • Article 173
  • Pushing for mandatory

implementation of TCFD

China

  • CSRC & People’s Bank of

China released climate disclosure roadmap to 2020

  • CSRC piloting TCFD

recommendations

  • Government announced

mandatory ESG disclosure policy

Australia

  • Australia Prudential

Regulatory Authority called for TCFD implementation

  • Council of Financial

Regulators set up a Climate Change Working Group

  • Australian Senate Economics

Committee recommended adoption of TCFD

European Union

  • EU High Level Expert Group

(HLEG) on Sustainable Finance

  • EU Non-Financial Reporting

Directive Review

Germany

  • Supportive of sustainable

finance in its G20 presidency

  • Deutsche Bundesbank is a

founding member of the Central Banks & Supervisors Network for greening the financial system

  • UK endorsed TCFD

recommendations

  • BEIS ‘Green Finance Task Force’
  • Financial Reporting Council’s

Strategic Reporting Guidance references TCFD

Belgium

Stock exchanges referencing the CDSB Framework

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Paul Simpson | @CDP_PaulS

  • Euronext, FSMA, NBB and

Belgian Ministry of Finance Show Joint Support for the TCFD Recommendations

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CDP Address: Otemachi, Chiyoda-ku, T

  • kyo 100-0004

T el: +81 (0)3 6225 2232 www.cdp.net Michiyo.Morisawa@cdp.net

Paul Simpson | @CDP_PaulS

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