Presentation PRI & CFA Netherlands October 10 th 2017 Laurent - - PowerPoint PPT Presentation
Presentation PRI & CFA Netherlands October 10 th 2017 Laurent Babikian Director Investor Engagement Europe CDP Europe laurent.babikian@cdp.net www.cdp.net | @CDP Outline I. Companies reporting to CDP II. Progress towards the 2-degree
www.cdp.net | @CDP Laurent Babikian Director Investor Engagement Europe CDP Europe laurent.babikian@cdp.net
Presentation PRI & CFA Netherlands
October 10th 2017
www.cdp.net | @CDP
Outline
I. Companies reporting to CDP II. Progress towards the 2-degree economy III. The growing importance of water stewardship
and leadership
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www.cdp.net | @CDP
CDP’s mission
climate change and value our natural resources by putting relevant information at the heart of business, investment and policy decisions CDP collects information on:
From:
Mission and what we do
Forests Water Climate Change
INVESTORS SUPPLY CHAIN MEMBERS
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www.cdp.net | @CDP
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Signatory Investors & AUM, 2003 - 2017
20 40 60 80 100 120 100 200 300 400 500 600 700 800 900 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Assets (US$ Trillion) Number of Signatories
CDP Signatories & Signatory Assets: 2003 - 2017
Climate Change Signatories Water Signatories Carbon Action Signatories Forests Signatories Climate Change Signatory Assets Water Signatory Assets Carbon Action Signatory Assets Forests Signatory Assets
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CDP reporting in 2016
199 companies 1426 companies 5856 companies
> 300 cities & 60 states and regions
57.5% of global market cap disclosed to CDP in 2016
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Management
Risks & opportunities Emissions Sign off
Climate Change Questionnaire: current status and forward-looking indicators
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Rewarding leadership: criteria for the A-list (2017)
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CDP’s scoring
Disclosure
we’re at”
Awareness
climate change mean to our company?”
Management
manage our climate change risks and impacts?”
Leadership
solve the climate change problem?”
D C B A
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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
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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
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The need to accelerate decarbonization
Bucket: < 2°C carbon budget
1890 GT CO2
Cumulative emissions
1010 GTCO2
Remaining carbon budget We will exceed the budget in ~20 years! 49 GTCO2 / yr
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675+ bold commitments to action
590+ 1,200+ 180+
Leadership commitments
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Science Based Targets
Science Based Targets are greenhouse gas emissions reduction targets aligned with the latest climate science for keeping warming below 2°C
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Growing momentum
Since officially launching in June, 2015, up to Sept 2017:
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Companies have formally joined the SBTi
Companies have approved targets Companies joining the initiative on average every week
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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
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Corporate carbon pricing: 2016 numbers
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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
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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.
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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
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Responding to key sustainability policy frameworks
CDP Responders
Sustainable Development Goals EU Non- Financial Reporting Directive
Energy Transition Act (Art. 173)
Paris Agreement TCFD Recommen dations
performance
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2000
2000 2002
2015
CDP
Corporate Knights Global 100 CRO’s 100 Best Corporate Citizens DJSI FTSE4Good Index Series SustainalyticsRankings TrucostCDP data powers the marketplace
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CDP leaders outperform: STOXX GCCL EUR vs STOXX Global 1800 EUR
+33%
Points sur 7 ans
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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
Top ratings are publicly available via a dedicated website at www.climetrics-rating.org
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Benefits for institutional fund investors
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Top ratings are available for free online at www.climetrics-rating.org Fund specific reports with detailed results will be available in the future
Compare
Climetrics allows to compare equity funds on climate impact
Integrate
Climetrics allows to integrate climate impact into fund selection and monitoring
Engage
Climetrics helps to engage with asset managers
climate change
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Rating methodology - Overview
10% 5% 85%
Asset Manager Level Fund Investment Policy Level Portfolio Holdings Level
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 Innovative model to assess the climate performance of approximately 3,000 companies
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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
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Merci !
Please contact me at laurent.babikian@cdp.net