CDP anglais Couverture montage planche_Mise en page 1 18.11.09 11:18 Page1

Contacts for the CDP

Paul Dickinson Zoe Riddell Tom Carnac Tim Keenan Chief Executive Officer Head of Investor CDP Head of CDP Cities and Vice President [email protected] [email protected] Public Procurement [email protected] [email protected] Paul Simpson Kate Levick Carbon Disclosure Project Chief Operating Officer Head of Government Pedro Faria 40 Bowling Green Lane [email protected] Partnerships Technical Director London, EC1 R 0NE [email protected] [email protected] United Kingdom Sylvie Giscaro Tel: +44 (0) 20 7970 5660/5667 Director Europe Frances Way Sue Howells Fax: +44 (0) 20 7691 7316 Carbon Disclosure Project [email protected] Head of CDP Supply Chain Head of Global Operations www.cdproject.net [email protected] [email protected] [email protected] Daniel Turner Head of Disclosure Joanna Lee Roy Wilson Report 2009 [email protected] Director, Communications & Financial Director Corporate Partnerships [email protected] [email protected] Survey of Switzerland’s 100 largest companies

CDP Advisory Board

Robert Napier (président) Alan Brown Jeremy Smith The Met Office Schroders Berkeley Energy

Doug Bauer James Cameron Rockefeller Philanthropy Climate Change Capital On behalf of 475 investors with Advisors assets under management of USD 55 trillion

Swiss CDP Partners

Pictet Asset Management Fondation Ethos Route des Acacias 60 Place Cornavin 2 1211 Genève 73 P.O. Box +41 (0)58 323 18 53 1211 Genève 1 +41 (0)22 716 15 55

Christoph Butz Jean Laville Sustainability Expert Deputy Managing Director [email protected] [email protected]

Consultant tasked with sorting and analysing responses and calculating Swiss CDLI scores

Centre Info/Inrate Rue de Romont 2 1700 Fribourg +41 (0)26 322 06 14

Philippe Spicher Managing Director [email protected] © Naoya Hatakeyama - Prix Pictet 2009

Carbon Disclosure Project (CDP) www.cdproject.net +44 (0) 207 970 5660 [email protected] The contents of this report may be used by anyone providing acknowledgement is given to Carbon Disclosure Project. The information herein has been obtained from sources, which the authors and publishers believe to be reliable, but the authors and publishers do not guarantee its accuracy or completeness. The authors and publishers make no representation or warranty, express or implied, concerning the fairness, accuracy, or completeness of the information and opinions contained herein. Furthermore, all opinions expressed herein are based on the authors and publishers judgment at the time of this report and are subject to change without notice due to economic, political, industry and firm-specific factors. The authors and publishers and their affiliated companies, or their respective shareholders, directors, officers and/or employees, may have a position in the securities discussed herein. The securities mentioned in this document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates. © 2008 Carbon Disclosure Project CDP anglais Couverture montage planche_Mise en page 1 18.11.09 11:19 Page2

Carbon Disclosure Project 2009

In addition to the support provided by the signatories, Carbon Disclosure Project 2009 CDP Members 2009 Generation Investment Management UK it would not have been possible to produce the seventh CDP report Grupo Santander Brasil Brazil Given the increasing importance of ING Netherlands without generous donations from the following: the climate change issue, Pictet MEMBER 2009 KLP Insurance Norway Asset Management and Ethos Legg Mason, Inc. US Foundation have decided to conduct Libra Fund, L.P. US the CDP survey for the 100 biggest capitalisations of the Swiss stock ABRAPP - Associação Brasileira das Entidades London Pensions Fund Authority UK market for the third time since 2007. Fechadas de Previdência Complementar Brazil Mistra, Foundation for Strategic Environmental Aegon N.V. Netherlands Research Sweden Mitsubishi UFJ Financial Group (MUFG) Japan This report and all of the public AIG Investments US responses from corporations are APG Investments Netherlands Morgan Stanley Investment Management US available to download free of ASN Netherlands National Australia Bank Limited Australia charge from www.cdproject.net. ATP Group Denmark Neuberger Berman US Aviva Investors UK Newton Investment Management Limited UK AXA Group France Northwest and Ethical Investments LP Canada Bank of America Corporation US Pictet Asset Management SA Switzerland BBVA Spain Rabobank Netherlands BlackRock US Robeco Netherlands BP Investment Russell Investments UK Management Limited UK Schroders UK Caisse de dépôt et placement du Québec Canada Second Swedish National Pension Fund (AP2) California Public Employees’ Retirement System Sweden US Sompo Japan Insurance Inc. Japan Image: Naoya Hatakeyama California State Teachers Retirement System US Standard Chartered PLC UK Calvert Group US Sun Life Financial Inc. Canada Lime Works #39616 Catholic Super Australia Swiss Reinsurance Company Switzerland C-print 28.5 x 57.5 cm CCLA Investment Management Ltd UK The RBS Group UK 1994 Japan CIBC Canada The Wellcome Trust UK Daiwa Asset Switzerland The image has been reproduced with the kind permission Management Co. Ltd Japan of Prix Pictet Ltd. Essex Investment Management, LLC US Ethos Foundation Switzerland Naoya Hatakeyama was one of the 12 finalists in the Prix Folksam Sweden Pictet 2009. The prize was presented by Kofi Annan, honorary Fortis Investments Belgium president for the ceremony, at the Passage de Retz in Paris on 22 October 2009. Please visit the www.prixpictet.com website for further information.

Design Implementation and Production: Pictet & Cie

This report is printed on FSC-certified paper (Magno Satin 300 g/m2 for the cover and Magno Satin 115 g/m2 for the inside pages), which promotes the sustainable and responsible use of forests. CDP Signatories 2009

CDP Signatories 2009 BlackRock US DB Advisors Deutsche Asset Management Germany Blue Marble Capital Management Limited Canada DEFO – Deutsche Fonds für Immobilienvermögen 475 institutional investors with assets BMO Financial Group Canada GmbH Germany of over USD 55 trillion were signatories BNP Paribas Investment Partners France DEGI Deutsche Gesellschaft für Immobilienfonds to the CDP 2009 information request Boston Common Asset Management, LLC US mbH Germany st dated 1 February 2009, including: BP Investment Management Limited UK Deka FundMaster Investmentgesellschaft mbH Brasilprev Seguros e Previdência S/A. Brazil Germany Aachener Grundvermögen British Columbia Investment Management Deka Investment GmbH Germany Kapitalanlagegesellschaft mbH Germany Corporation (bcIMC) Canada DekaBank Deutsche Girozentrale Germany Aberdeen Asset Managers UK BT Financial Group Australia Deutsche Bank Germany Acuity Funds Canada BT Investment Management Australia Deutsche Postbank Privat Investment Addenda Capital Inc. Canada Busan Bank South Korea Kapitalanlagegesellschaft mbH Germany Advanced Investment Partners US CAAT Pension Plan Canada Development Bank of Japan Japan Advantage Asset Managers (Pty) Ltd South Africa Caisse de dépôt et placement du Québec Canada Development Bank of the Philippines (DBP) Philippines Aegon N.V. Netherlands Caisse des Dépôts France Dexia Asset Management France Aeneas Capital Advisors US Caixa de Previdência dos Funcionários do Banco do Nordeste do Brasil (CAPEF) Brazil DnB NOR ASA Norway AGF Management Limited Canada Caixa Econômica Federal Brazil Domini Social Investments LLC US AIG Investments US Caixa Geral de Depósitos Portugal DPG Deutsche Performancemessungs- Alberta Investment Management Corporation Gesellschaft für Wertpapierportfolio mbh Germany (AIMCo) Canada California Public Employees’ Retirement System US East Sussex Pension Fund UK Alberta Teachers Retirement Fund Canada California State Teachers Retirement System US Economus Instituto de Seguridade Social Brazil Alcyone Finance France California State Treasurer US ELETRA – Fundação Celg de Seguros e Allianz Group Germany Previdência Brazil Calvert Group US Altshuler Shacham LTD Israel Environment Agency Active Pension fund UK Canada Pension Plan Investment Board Canada AMP Capital Investors Australia Epworth Investment Management UK Canadian Friends Service Committee (Quakers) AmpegaGerling Investment GmbH Germany Canada Erste Group Bank AG Austria APG Investments Netherlands CAPESESP Brazil Essex Investment Management, LLC US ARIA (Australian Reward Investment Alliance) Capital Innovations, LLC US Ethos Foundation Switzerland Australia CARE Super Pty Ltd Australia Eureko B.V. Netherlands Arkitekternes Pensionskasse Denmark Carlson Investment Management Sweden Eurizon Capital SGR Italy Artus Direct Invest AG Germany Carmignac Gestion France Evangelical Lutheran Church in Canada Pension ASB Community Trust New Zealand Plan for Clergy and Lay Workers Canada Catherine Donnelly Foundation Canada ASN Bank Netherlands Evli Bank Plc Finland Catholic Super Australia ATP Group Denmark F&C Management Ltd UK Cbus Superannuation Fund Australia Australia and New Zealand Banking Group Limited Faelba Brazil Australia CCLA Investment Management Ltd UK FAELCE – Fundação Coelce de Seguridade Social Australian Ethical Investment Limited Australia Central Finance Board Brazil of the Methodist Church UK AustralianSuper Australia Fédéris Gestion d’Actifs France Ceres, Inc. US Aviva Investors UK First Affirmative Financial Network US Cheyne Capital Management (UK) LLP UK Aviva plc UK First Swedish National Pension Fund (AP1) Sweden CI Mutual Funds’ Signature Advisors Canada AXA Group France FirstRand Ltd. South Africa CIBC Canada Baillie Gifford & Co. UK Fishman & Co. Israel Clean Yield Group, Inc. US Bakers Investment Group Australia Five Oceans Asset Management Pty Limited ClearBridge Advisors, Socially Aware Investment Banco Sweden Australia US Banco Bradesco S.A Brazil Florida State Board of Administration (SBA) US Close Brothers Group plc UK Banco de Galicia y Buenos Aires S.A. Argentina Folksam Sweden Colonial First State Global Asset Management Banco do Brazil Brazil Australia Fondaction CSN Canada Banco Santander, S.A. Spain Comite syndical national de retraite Bâtirente Fonds de Réserve pour les Retraites – FRR France Canada Banesprev – Fundo Banespa de Seguridade Social Fortis Bank Nederland Netherlands Brazil Commerzbank AG Germany Fortis Investments Belgium Bank of America Corporation US CommInsure Australia Forward Management, LLC US Bank Sarasin & Co, Ltd Switzerland Companhia de Seguros Aliança do Brasil Brazil Fourth Swedish National Pension Fund, (AP4) Bank Vontobel Switzerland Compton Foundation, Inc. US Sweden BANKINTER S.A. Spain Connecticut Retirement Plans and Trust Funds US Frankfurter Service Kapitalanlagegesellschaft mbH Germany Barclays Group UK Co-operative (CFS) UK FRANKFURT-TRUST Investment BayernInvest Kapitalanlagegesellschaft mbH Corston-Smith Asset Management Sdn. Bhd. Gesellschaft mbH Germany Germany Malaysia Franklin Templeton Investment BBC Pension Trust Ltd UK Crédit Agricole Asset Management France Services Gmbh Germany BBVA Spain Switzerland Frater Asset Management South Africa Bedfordshire Pension Fund UK Daegu Bank South Korea Friends Provident UK Beutel Goodman and Co. Ltd Canada Daiwa Securities Group Inc. Japan Front Street Capital Canada

1 CDP Signatories 2009

Fukoku Capital Management Inc Japan Infrastructure Development Finance Meeschaert Gestion Privée France Company Ltd. (IDFC) India Fundação AMPLA de Seguridade Social – Meiji Yasuda Life Insurance Company Japan Brasiletros Brazil ING Netherlands Merck Family Fund US Fundação Atlântico de Seguridade Social Brazil Inhance Investment Management Inc Canada Mergence Africa Investments (Pty) Limited Fundação Banrisul de Seguridade Social Brazil Insight Investment Management (Global) Ltd UK South Africa Fundação CEEE de Seguridade Social – Instituto de Seguridade Social dos Correios e Meritas Mutual Funds Canada ELETROCEEE Brazil Telégrafos- Postalis Brazil Metzler Investment Gmbh Germany Fundação Codesc de Seguridade Social – FUSESC Instituto Infraero de Seguridade Social – Midas International Asset Management Brazil INFRAPREV Brazil South Korea Fundação de Assistência e Previdência Social do Insurance Australia Group Australia Miller/Howard Investments US BNDES – FAPES Brazil Internationale Kapitalanlagegesellschaft mbH Mirae Investment Asset Management Fundação Forluminas de Seguridade Social – Germany South Korea FORLUZ Brazil Investec Asset Management UK Mistra, Foundation for Strategic Fundação Promon de Previdência Social Brazil Itaú Unibanco Banco Múltiplo S.A. Brazil Environmental Research Sweden Fundação São Francisco de Seguridade Social J.P. Morgan Asset Management US Mitsubishi UFJ Financial Group (MUFG) Japan Brazil Janus Capital Group Inc. US Mitsui Sumitomo Insurance Co.,Ltd. Japan Fundação Vale do Rio Doce de Seguridade Social – VALIA Brazil Jarislowsky Fraser Limited Canada Mizuho Financial Group, Inc. Japan FUNDIÁGUA - Fundação de Previdência da Jubitz Family Foundation US Mn Services Netherlands Companhia de Saneamento e Ambiental do Jupiter Asset Management UK Monega Kapitalanlagegesellschaft mbH Germany Distrito Federal Brazil K&H Investment Fund Management/K&H Morgan Stanley Investment Management US Gartmore Investment Management Ltd UK Befektetési Alapkezelö Zrt Hungary Motor Trades Association of Australia Generation Investment Management UK KB Kookmin Bank South Korea Superannuation Fund Pty Ltd Australia Genus Capital Management Canada KBC Asset Management NV Belgium MP Pension – Pensionskassen for Magistre og Psykologer Denmark Gjensidige Forsikring Norway KCPS and Company Israel Munich Re Group Germany GLG Partners LP UK KDB Asset Management Co., Ltd. South Korea Mutual Insurance Company Pension-Fennia Goldman Sachs & Co. US Kennedy Associates Real Estate Counsel, LP US Finland Governance for Owners UK KfW Bankengruppe Germany Natcan Investment Management Canada Government Employees Pension Fund (“GEPF”), Kibo Technology Fund South Korea Republic of South Africa South Africa Nathan Cummings Foundation, The US KLP Insurance Norway Green Cay Asset Management Bahamas National Australia Bank Limited Australia Korea Investment Trust Management Co., Ltd. National Bank of Canada Canada Green Century Funds US South Korea National Bank of Kuwait Kuwait Groupe Investissement Responsable Inc. Canada KPA Pension Sweden National Grid Electricity Group of the Electricity GROUPE OFI AM France Kyobo Investment Trust Management Co., Ltd. Supply Pension Scheme UK GrowthWorks Capital Ltd. Canada South Korea National Grid UK Pension Scheme UK Grupo Banco Popular Spain La Banque Postale Asset Management France National Pensions Reserve Fund of Ireland Ireland Grupo Santander Brasil Brazil La Financiere Responsable France Natixis France Gruppo Monte Paschi Italy LBBW – Landesbank Baden-Württemberg Germany Needmor Fund US Guardian Ethical Management Inc Canada LBBW Asset Management GmbH Germany Nest Sammelstiftung Switzerland Guardians of New Zealand Superannuation New Zealand LD Lønmodtagernes Dyrtidsfond Denmark Neuberger Berman US Hang Seng Bank Hong Kong Legal & General Group plc UK New Alternatives Fund Inc. US HANSAINVEST Hanseatische Investment GmbH Legg Mason, Inc. US New Jersey Division of Investment US Germany Lend Lease Investment Management Australia New Mexico State Treasurer US Harrington Investments US Libra Fund, L.P. US New York City Employees Retirement System US Hastings Funds Management Limited Australia Light Green Advisors, LLC US New York City Teachers Retirement System US Hazel Capital LLP UK Living Planet Fund Management Company S.A. New York State Common Retirement Fund Health Super Fund Australia Switzerland (NYSCRF) US Helaba Invest Kapitalanlagegesellschaft mbH Local Authority Pension Fund Forum UK Newton Investment Management Limited UK Germany Local Government Superannuation Scheme NFU Mutual Insurance Society UK Australia Henderson Global Investors UK NH-CA Asset Management South Korea Local Super SA-NT Australia Hermes Fund Managers UK Nikko Asset Management Co., Ltd. Japan Lombard Odier Darier Hentsch & Cie Switzerland HESTA Super Australia Nissay Asset Management Corporation Japan London Pensions Fund Authority UK Hospitals of Ontario Pension Plan (HOOPP) Nordea Investment Management Sweden Canada Lothian Pension Fund UK Norfolk Pension Fund UK HSBC Holdings plc UK Macif Gestion France Norges Bank Investment Management (NBIM) Hyundai Marine & Fire Insurance Co, Ltd Macquarie Group Limited Australia Norway South Korea Magnolia Charitable Trust US Norinchukin Zenkyouren Asset IDBI Bank Limited India Management Co., Ltd Japan Maine State Treasurer US Ilmarinen Mutual Pension Insurance Company North Carolina State Treasurer US Finland Man Group plc UK Impax Group plc UK Maple-Brown Abbott Limited Australia Industrial Bank China Marc J. Lane Investment Management, Inc. US Industry Funds Management Australia Maryland State Treasurer US McLean Budden Canada MEAG Munich Ergo Asset Management GmbH Germany MEAG Munich Ergo Kapitalanlagegesellschaft mbH Germany

2 Carbon Disclosure Project 2009

Northern Ireland Local Government Officers’ Sentinel Funds US The Local Government Pensions Insitution Superannuation Committee (NILGOSC) UK (LGPI)(keva) Finland SERPROS Fundo Multipatrocinado Brazil Northern Trust US The Presbyterian Church in Canada Canada Service Employees International Union Northwest and Ethical Investments LP Canada Benefit Funds US The RBS Group UK Oddo & Cie France Seventh Swedish National Pension Fund (AP7) The Russell Family Foundation US Sweden Old Mutual plc UK The Shiga Bank, Ltd. Japan Shinhan Bank South Korea OMERS Administration Corporation Canada The Standard Bank of South Africa Limited Shinhan BNP Paribas Investment Trust South Africa Ontario Teachers Pension Plan Canada Management Co., Ltd South Korea The Sustainability Group at the Loring, Opplysningsvesenets fond Shinkin Asset Management Co., Ltd Japan Wolcott & Coolidge Office US (The Norwegian Church Endowment) Norway Shinsei Bank Limited Japan The Travelers Companies, Inc. US Oregon State Treasurer US Siemens Kapitalanlagegesellschaft mbH Germany The United Church of Canada – General Council Orion Asset Management LLC US Canada Signet Capital Management Ltd Switzerland Pax World Funds US The University of Edinburgh Endowment Fund UK Skandia Nordic Division Sweden PBU – Pension Fund of Early Childhood Teachers The Wellcome Trust UK Denmark SMBC Friend Securities Co., LTD Japan Third Swedish National Pension Fund (AP3) Pension Fund for Danish Lawyers and Economists Smith Pierce, LLC US Sweden Denmark SNS Asset Management Netherlands Threadneedle Asset Management UK Pension Protection Fund UK Social(k) US Tokio Marine & Nichido Fire Insurance Co., Ltd. PETROS – The Fundação Petrobras de Société Générale France Japan Seguridade Social Brazil Sompo Japan Insurance Inc. Japan Toronto Atmospheric Fund Canada PFA Pension Denmark Souls Funds Management Limited Australia Trillium Asset Management Corporation US PGGM Netherlands SPF Beheer bv Netherlands Triodos Bank Netherlands Phillips, Hager & North Investment Management Ltd. Canada Sprucegrove Investment Management Ltd Canada TrygVesta Denmark PhiTrust Active Investors France Standard Chartered PLC UK UBS AG Switzerland Pictet Asset Management SA Switzerland Standard Life Investments UK Unibanco Asset Management Brazil Pioneer Alapkezelö Zrt. Hungary State Street Corporation US UniCredit Group Italy Pioneer Investments Statewide Superannuation Trust Australia Union Asset Management Holding AG Germany Kapitalanlagegesellschaft mbH Germany Storebrand ASA Norway Union Investment Institutional GmbH Germany PKA Denmark Strathclyde Pension Fund UK Union Investment Privatfonds GmbH Germany Portfolio 21 Investments US Stratus Group Brazil Union Investment Service Bank AG Germany Portfolio Partners Australia Sumitomo Mitsui Banking Corporation Japan Union PanAgora Asset Management GmbH Germany Porto Seguro S.A. Brazil Sumitomo Mitsui Card Company, Limited Japan UniSuper Australia PPM Premiepensionsmyndigheten Sweden Sumitomo Mitsui Finance & Leasing Co., Ltd PRECE Previdência Complementar Brazil Japan Unitarian Universalist Association US PREVI Caixa de Previdência dos Funcionários Sumitomo Mitsui Financial Group Japan United Methodist Church General Board of Pension and Health Benefits US do Banco do Brasil Brazil Sumitomo Trust & Banking Japan United Nations Foundation US Principle Capital Partners Limited UK Sun Life Financial Inc. Canada Universal Investment Gesellschaft mbH Germany PSP Investments Canada Superfund Asset Management GmbH Germany Universities Superannuation Scheme (USS) UK QBE Insurance Group Limited Australia Svenska Kyrkan, Church of Sweden Sweden Vancity Group of Companies Canada Railpen Investments UK Swedbank Sweden VERITAS SG INVESTMENT TRUST GmbH Germany Rathbones/Rathbone Greenbank Investments UK Swiss Reinsurance Company Switzerland Vermont State Treasurer US Real Grandeza Fundação de Previdência e Swisscanto Holding AG Switzerland Assistência Social Brazil VicSuper Pty Ltd Australia Syntrus Achmea Asset Management Netherlands Rei Super Australia Victorian Funds Management Corporation TD Asset Management Inc. and TDAM USA Inc. Australia Rhode Island General Treasurer US Canada Visão Prev Sociedade de Previdencia RLAM UK Teachers Insurance and Annuity Association – Complementar Brazil Robeco Netherlands College Retirement Equities Fund (TIAA-CREF) US Waikato Community Trust Inc New Zealand Rose Foundation for Communities Tempis Capital Management South Korea Walden Asset Management, a division of Boston and the Environment US Terra Forvaltning AS Norway Trust and Investment Management Company US Royal Bank of Canada Canada TfL Pension Fund UK Warburg-Henderson Kapitalanlagegesellschaft RREEF Investment GmbH Germany The Bullitt Foundation US für Immobilien mbH Germany Russell Investments UK The Central Church Fund of Finland Finland West Yorkshire Pension Fund UK SAM Group Switzerland The Collins Foundation US WestLB Mellon Asset Management (WMAM) Sanlam Investment Management South Africa The Co-operators Group Ltd Canada Germany Santa Fé Portfolios Ltda Brazil The Daly Foundation Canada Westpac Investment Management Australia Sauren Finanzdienstleistungen Germany The Dreyfus Corporation US Winslow Management Company US Savings & Loans Credit Union (S.A.) Limited. The Japan Research Institute, Limited Japan WOORI BANK South Korea Australia The Joseph Rowntree Charitable Trust UK YES BANK Limited India Schroders UK York University Pension Fund Canada Scotiabank Canada Youville Provident Fund Inc. Canada Scottish Widows Investment Partnership UK Switzerland SEB Sweden SEB Asset Management AG Germany Second Swedish National Pension Fund (AP2) Sweden Seligson & Co Fund Management Plc Finland

3 4 Editorial

In December 2009, representatives In contrast, for many companies We would like to take this of governments from around the that are mainly active in Switzerland, opportunity to thank all world will meet in Copenhagen this is when “things will start to get the companies which took the time to negotiate the successor serious” in terms of climate to provide thorough and often very agreement to the Kyoto Protocol, protection. To date, Swiss carbon comprehensive answers to the which is due to expire in 2012. emissions legislation has relied detailed questions put as part of The successor agreement will primarily on voluntary target the Carbon Disclosure Project. be extremely important to all our agreements, which is why many As investors, we firmly believe that futures and will essentially Swiss companies still have to get companies which have developed determine whether we are willing used to dealing with mandatory convincing climate protection and have the strength to avert reduction commitments or tradable policies have better future prospects the threat of climate change. emissions permits. The recent and are therefore better In this context, UN Secretary decision to increase the carbon investments, not only from an General Ban Ki-Moon recently levy on stationary fossil fuels in environmental and social viewpoint spoke of a “once-in-a-generation Switzerland is a clear indication but also from a long-term financial opportunity”. that there are limits to the extent perspective. to which voluntary targets alone As a signatory of the Kyoto can be relied on in the field of Protocol, Switzerland will also play climate protection. an active part in the negotiations in Copenhagen. Amongst other However, the way companies things, this is of relevance for Swiss manage greenhouse gas emissions companies, as Federal Councillor is not solely a compliance issue. Moritz Leuenberger has announced It is also a key factor in determining Renaud de Planta, that immediately after the meeting a company's profitability and, Partner at Pictet & Cie in Copenhagen he wishes to open ultimately, a company's ability to negotiations with the European survive in an increasingly carbon- Union on the inclusion of restrained world. As investors taking Switzerland in the European Union a sustainable approach, Pictet & Cie Emission Trading System (EU-ETS). and the Ethos Foundation have a keen interest in obtaining Carbon-intensive Swiss information about the climate Kaspar Müller, multinational companies with protection strategies and concrete Chairman of the Ethos Foundation facilities in other European countries measures implemented by have been subject to the EU ETS the companies they invest in. ever since it was introduced in 2005. As a result, they have gained This is why, for the third year valuable experience and the majority running, we have decided to give can therefore be expected to cope our support to the Carbon with the new environment. Disclosure Project and to conduct and publish a detailed analysis of the responses provided by the companies that took part in the 2009 Swiss CDP survey.

5 6 Content

Carbon Disclosure Project members & signatories 1 Editorial 5 Content 7 1. CDP Switzerland 2009 - Executive Summary 9 2. CDP Global Overview 11 3. Introduction 15 4. Characteristics of the Swiss market 17 5. Response rate & discussion on key trends 19 - Response rate 19 - Main results 2009 and comparison with 2008 22 - Risks & Opportunities 22 - Emissions accounting 25 - Performance 25 - Governance 26 - Comparison with the international trends 26 6. Swiss Carbon Disclosure Leaders Index 27 - Result and analysis of CDLI for Swiss companies 28 - Sector patterns of Swiss CDLI results 29 - Scores according to CDP sections 30 - Scores according to CDP report category 31 - Sector company comparison and best practice 32 7. Swiss CDLI scoring from a “life cycle” perspective 39 Appendix: sections of the CDP questionnaire and their relevance for the CDLI scoring 43 Acknowledgements 44

7 8 CDP 2009 Switzerland 1 Executive Summary

Given the increasing importance of the Climate change strategy in emissions but may lead to a climate change issue, Pictet Asset progress competitive advantage for “green” Management and Ethos Foundation companies over their lagging peers. have decided to conduct the CDP Awareness survey for the 100 biggest A growing number of companies are Governance capitalisations of the Swiss stock adopting and implementing an explicit The growing awareness of climate market for the third time since 2007. climate change strategy, whereby the change is reflected by another positive focus is increasingly laid on business evolution: climate change governance In addition to providing long-term opportunities relating to climate within companies has also improved. investors with valuable information on changes. As a matter of fact, 74% of the companies’ climate change strategies, responding companies do have a The relatively low perception of climate the CDP has, since its inception, Board Committee or an executive body change-related regulatory risks (44% of progressively become a driver for in charge of the issue (versus 68% in respondents) is mainly due to the fact changing business behaviour, the last CDP survey). encouraging companies to further that companies are still waiting for develop and strengthen their policies important political decisions to be In our view, a top-down approach is regarding climate change. taken with regard to emission critical to a successful climate change reduction goals, either on a national strategy. Without endorsement by the Stabilisation of participation rate level or at international level (e.g. highest management level, a climate Of the 96 Swiss companies contacted integration of Switzerland into the strategy is less likely to be effective and in 2009, 54 participated in the CDP European Union Emission Trading will lack legitimacy. and agreed to provide investors with Scheme and the outcome of the information on their climate change Copenhagen negotiations on a post- Engagement strategy. This participation rate of 56% Kyoto treaty). The results of the Swiss CDP 2009 remains almost the same as last year survey show another positive trend Concerning the perception of physical (57%). The participation rate for all corroborating the remarks made risks, the score of Swiss companies companies contacted does not really above: Swiss companies are opening (48%) is way below the perception of match long-term investors’ themselves up and are progressively their European peers. This difference expectations. getting more involved in discussion and cannot be explained in terms of a lower collaboration with industry actual exposure of Swiss companies to Nevertheless, the participation rate associations, authorities, competitors climate change. It is rather an among the largest 50 companies of the and NGOs. In particular, half of the indication of many companies Swiss stock exchange is rather high respondent companies collaborate underestimating their true exposure to (72%), in particular when compared with the Energy Agency for the climate change along the entire value with other European samples. Economy (EnAW), a private sector chain, particularly in the banking body that assists companies in setting Among the non-respondent companies sector. some are particularly exposed to and reaching defined CO2 emissions carbon risks, and thus fail to ensure On the positive side, more companies reduction targets, a popular way for their stakeholders and investors that perceive climate change also as a Swiss companies to become exempt they are committed to a transparent business opportunity, and this from the Swiss carbon tax. and efficient management of the perception is not limited to the climate change issues at stake. industrials and materials sectors but also extends, for instance, to the Transparency improvement financial sector, which increasingly Compared to 2008, the willingness to offers products and solutions in line disclose responses publicly has with the concept of Socially improved: only 37% of the Responsible Investment (SRI) and respondents still declined public environmental theme investing. access to their data (via the CDP website: www.cdproject.net), whereas This trend is encouraging in many 47% had done so in 2008. respects, since development of innovative climate-friendly solutions and products not only reduces CO2

9 Emissions accounting: the “to cut emissions in developed as it can be shown that their GHG pressing need for common economies by 80% such as required footprint is much bigger if we take standards by the IPCC by 2050, we would into account their significant share The heightened awareness of need to see a minimum annual in the financing of problematic climate change goes along with a global reduction rate of 3.9% activities and plants such as growing disclosure on emissions per annum”. For the Global 100 the fossil energy sector for example. accounting: in 2008, 64% of the companies, however, the study The CDLI method currently does responding companies reported on revealed that companies on average not appropriately reflect these their direct emissions at least were only on track for an annual indirect emissions; consequently, (scope 1); in 2009, as many as 72% reduction of 1.9%. the CDLI scoring is rather too have provided the CDP with this generous with the financial sector. The first Swiss Carbon material information. Furthermore, Disclosure Index With a CDLI score of 76, re insurer in 2009 more companies have This year’s CDP report includes, has a clear lead over started to measure indirect the rest of the field. The scores emissions generated by their for the first time, a scoring of the quality of the answers provided of the next six companies are purchasing activity and their extremely close, ranging products and services. by companies based on a methodology that was developed from 68 to 70. The largest Swiss However, a major problem still jointly by the CDP and companies that had already been remains to be solved: since there PricewaterhouseCoopers, the contacted for the world-wide CDP is no mandatory standardisation so-called Carbon Disclosure Global500 survey account for four framework, measuring and Leaders Index (CDLI). This out of the top ten companies and comparing the corporate standardised evaluation method again for nine out of the top twenty. performance over the time and makes it possible to compare It therefore seems that large across sectors remains difficult. climate change disclosure practices companies with an international in a more consistent and systematic reach (and subsidiaries in Reduction targets: still not manner, both among Swiss legislations subject to the European comparable and ambitious companies but also in an Emissions Trading Scheme) enough… international context. have a clear advantage on carbon Implementation of reduction targets disclosure over their smaller and is an area where we see particular However, it should be emphasised more domestically focused peers. progress in comparison with that the CDLI still does not score The report concludes with previous CDP surveys. 65% of companies in terms of CO2 an inter-sector comparison, respondent companies have put performance (absolute level of highlighting in some detail best in place some reduction targets emissions, reduction achievements disclosure practices of leading (as against only 53% in 2008). or actual carbon intensity), but Swiss companies within their Despite this positive development, rather in terms of disclosure and respective sector peer groups. due to the different definitions of transparency only. reduction targets (absolute, relative, In this regard, companies active in product-specific) and time horizons, the financial sector on average do it remains very difficult to compare very well: they usually provide ample between companies, and it is and transparent information on their virtually impossible to come up with CO2 strategy and their emissions, an average reduction target for and consequently score rather high the Swiss market. Therefore, according to the CDLI methodology. we cannot reliably establish whether But contrary to respondents in the companies’ reduction goals are Industrials sector, which often try actually in line with long-term to gauge their indirect CO2 impact international goals for climate relating to the use of their products change mitigation. and services as well, companies in There is an urgent need for the financial sector do not usually companies to set CO2 reduction provide any information on the targets with a clear baseline and carbon intensity of their financial target years. In addition to that, products and the companies and absolute targets should be given activities they finance. As we point priority over intensity targets. out in our special focus on Life Cycle Analysis, this would be According to a study recently particularly important for , published by the CDP1, in order

1 Carbon Disclosure Project, The Carbon Chasm, http://cms.cdproject.net/cms_downloads/ 67_329_219_CDP-The-Carbon-Chasm.pdf

10 CDP Global 2 Overview

The turmoil in the financial markets This year has seen considerable CDP now works with more than and the global economy over the last growth in responses from emerging 55 organizations including Dell, year has highlighted the importance economies such as China, South Africa Unilever, Walmart and the British of effective disclosure and high-quality and Korea, and CDP expanded in Government to measure and assess risk management. The financial crisis of Russia in 2009 where major companies climate change risk and opportunity 2008 suggests we need to better such as Gazprom and Novatek through the supply chain. More than understand systemic risks that can reported. CDP’s reach continues to 800 companies report their climate cause significant de-stabilizing impacts grow with the launch of the first CDP change strategies through the CDP in the global economy. Climate change Europe report, covering the largest 300 system to their customers and as a has the potential to cause disruption in European listed companies, as well as result we have seen a significant the form of unforeseen, high-impact expansion into countries within Central increase in the use of CDP data in events (such as extreme weather) as and Eastern Europe. We have also procurement operations. Now well as a longer term re-assignment opened new offices in Germany and procurement professionals can of value across countries, industries Brazil, both key economies in the fight understand how their supply chains and corporations. against climate change. may be impacted and as a result begin to future-proof their procurement The Intergovernmental Panel on While the quantity and quality of data systems against climate change. Climate Change (IPCC) predicts that available has increased significantly, “future climate impacts show that the so has the use of the data, which is The process of measuring emissions is consequences could vary from acting as a catalyst for changing central to emissions management and disruptive to catastrophic”1. So it is vital business behavior. CDP data is reduction. As regulatory frameworks that policy makers, companies and increasingly being integrated into develop to mandate emission investors have a full understanding of mainstream financial analysis, is reductions, CDP’s role will expand. We the associated risks and opportunities. available through Bloomberg will continue to work with corporations, According to HSBC research2, Professional Services, and used to policy makers and information users to governments around the world have provide sector based analysis to CDP produce practical and robust results allocated US$430 billion in fiscal signatory members. A recent report that complement the development of stimulus to key climate change themes. produced by Mercer supports this view. mandatory reporting rules. Those providing the low carbon solutions are very well positioned to Some CDP signatories, such as In order to continue to provide the benefit, while those who ignore the CalSTRS are going a step further, global hub for carbon reporting, CDP risks gamble on being left behind. using shareholder resolutions to is currently undergoing a significant encourage companies to report systems upgrade, designed to By convening the collective power of through CDP and implement climate improve data comparability, facilitate the investment community, change management strategies. We benchmarking services and ultimately represented in 2009 by more than 475 are also working with the Principles deliver data that is appropriate for investors, with US$55 trillion in assets of Responsible Investment (PRI) to investment analysis and regulatory under management, CDP motivates drive awareness and improve climate submissions. In countries like the US more than 1800 companies globally to change reporting. CDP has recently and UK, where mandatory carbon report their climate change strategies entered a new partnership with reporting is on the horizon, CDP’s and greenhouse gas emissions. This financial information services company systems will help companies prepare global system provides the market, Markit to build a suite of indices based for such requirements and will investors, policy makers and on the Carbon Disclosure Leadership eventually integrate with existing procurement directors with a clear Index, which will be licensed to national registries to enable understanding of how companies are exchange-traded fund (ETF) and corporations to disclose more detailed positioned as we move towards a low structured product providers. and standardized data. Climate change carbon economy and ensures is a global problem, which requires a corporations provide full transparency global solution and by bridging the on climate change. gaps between national governments and international businesses across the 1 http://unfccc.int/essential_background/feeling_the_heat/ globe, CDP will help to connect the items/2905.php 2 HSBC Global Research: A Climate for Recovery - national and international climate The colour of stimulus goes green. change ecosystem.

11 Overview of CDP 5

Sample: geography/ % of responders with Board level with Board % of responders for climate change responsibility seeing physical % of responders opportunities number of companies % of sample answering CDP 2009 % of sample answering CDP6 (2008) seeing % of responders risks regulatory seeing regulatory % of responders opportunities seeing physical risk % of responders disclosing % of responders Scope 1 emissions disclosing % of responders Scope 2 emissions externally% of responders verifying emissions disclosures engaged/considering responders of % participation in emissions trading with an emissions % of responders plan reduction reduction/energy Asia-ex JICK 1006 31 [35] 76 55 76 66 55 66 69 31 17 59 62 Australia 200 52 48 80 79 81 82 56 81 83 46 50 67 73 Brazil 80 76 [83] 49 61 73 73 53 61 55 22 25 61 49 Canada 200 49 55 70 57 68 56 46 81 76 27 34 49 61 Central & Eastern Europe 100 8 - 75 50 50 75 25 75 25 75 50 100 50 China 100 10 5 56 67 78 67 44 22 22 22 11 67 44 Europe 300 82 - 85 80 90 75 63 91 85 77 58 89 79 France 120 58 63 77 69 84 66 61 79 77 63 47 81 66 Germany 200 51 55 65 58 70 44 47 63 57 45 33 63 55 Global 500 81 77 80 78 84 78 63 85 80 63 54 80 74 Global Electric Utility 250 49 52 71 79 84 75 62 81 50 61 57 60 77 Global Transport 100 67 58 84 81 84 79 50 79 68 50 43 72 74 India 200 18 19 52 14 66 62 48 48 48 17 17 55 38 Ireland 45 33 - 71 71 71 64 43 71 50 50 43 57 43 Italy 60 35 [46] 52 67 86 67 48 81 62 71 33 67 57 Japan 500 37 [72] 85 87 83 80 64 77 72 33 90 49 49 Korea 100 50 [32] 61 67 76 69 57 55 55 33 35 63 55 Latin America 50 50 [52] 58 79 79 58 47 79 68 37 26 47 58 Netherlands 50 62 52 97 74 90 65 61 90 90 58 42 81 71 New Zealand 50 52 50 65 69 77 69 65 58 54 35 27 58 54 Nordic 200 65 [58] 77 76 81 63 54 83 77 46 33 78 59 Portugal 20 38 - 75 88 75 88 63 100 88 88 25 63 75 Russia 50 13 - 33 0 33 33 33 33 33 0 33 33 33 South Africa 100 68 58 86 73 86 89 68 83 86 38 33 68 65 Spain 85 41 [71] 80 66 77 63 54 91 83 86 34 80 74 Switzerland 100 56 57 74 44 72 48 48 72 67 35 19 65 43 UK FTSE 100 95 90 83 89 91 83 66 98 95 73 77 88 79 UK FTSE 250 57 58 79 78 76 72 53 81 80 36 43 61 49 US S&P 500 66 64 68 70 77 70 52 77 74 41 31 65 61

Table 1 Key Trends Snapshot3 This table outlines some of the key findings from CDP 2009 by geography and industry data-set.4

3 The numbers in this table are based on the total respondents at 10th July 2009. They may therefore vary from numbers in the rest of the report which are based on the number of companies who responded on time (e.g. 30th June for Global 500). 4 In some cases, the number of responses analyzed is slightly less than the number answering CDP 2009 due to takeovers, mergers and acquisitions. 5 Percentages in square brackets reflect a different sized sample in 2008, e.g.: in 2008 we wrote to 75 companies in Brazil, not 80; and in Japan we wrote to 150 companies in 2008, not 500. 6 Asia excluding Japan, India, China and Korea.

12 Carbon Disclosure Project 2009

Highlights in carbon regulation Committees where amendments will Progress on reporting and outlook for Copenhagen be debated, before being put to a vote; standards most likely in October. 2009 has witnessed significant While CDP has set the tone on matters progress in the global approach to In Australia, further work has of disclosure over the years and, for the climate change. The Obama progressed on the detail of the Carbon first time this year, is now widening its administration has introduced a new Pollution Reduction Scheme (CPRS) approach to encompass performance, era in climate change policy in the US despite political challenges over there are other valuable and and, as a result, a global deal in possible competitive impacts in the complementary initiatives underway Copenhagen this December appears face of the economic downturn. The to address the clear requirement for more tangible. China, so integral to the Scheme, which would cover around the creation of a global carbon success of Copenhagen, is set to meet 75% of total Australian emissions, is measurement and reporting system. ambitious renewable energy and due to face a key vote later this year. While the financial accounting system energy efficiency targets and hosts Given the multinational nature of many some of the world’s largest renewable has taken several hundred years to companies, the evolution of these develop, carbon accounting is in its energy companies. Brazil entered the policies is likely to have significant new year with a new National Plan on infancy. In order to achieve a coherent implications on strategic direction and global system CDP is leading the work Climate Change and national operations and many of the world's governments in industrialized countries of the Climate Disclosure Standards largest companies want to seize early Board (CDSB), working with including Japan and Australia are mover advantage. introducing new legislation to reduce Deloitte, Ernst & Young, KPMG and emissions. Of course, the role of government PricewaterhouseCoopers to develop is crucial in providing the regulatory robust accounting standards to enable Whilst the July G8 meeting agreed to frameworks. But investors and carbon reporting through annual prevent global temperatures rising businesses will also play an essential financial reports. CDP and CDSB will beyond 2º Celsius (3º-4º Fahrenheit) role by driving capital flows towards the also work with the World Economic against pre-industrial levels, and agreed technologies which will allow economies Forum to advise the G20 group of on aims to cut greenhouse gas to flourish and innovation to thrive as nations on climate change accounting emissions by between 50 and 80% we transition to a low carbon economy. in 2010. by mid-century they disappointed many by ducking the issue of medium term Already these same investors and The CDP process demonstrates that targets. Although the multilateral businesses are being directly affected corporations can lead the way in taking architecture still needs work, there is by climate change. Many companies action that can be Measured, Reported much to report on at a regional level. report to CDP the material impacts & Verified (MRV). It also shows how of climate change on their operations, international companies can reduce In Europe, the Energy and Climate through increased flooding, water their emissions across the entirety of Change package was approved in shortage, spread of disease and their operations on a global basis, even December 2008 which sets out the changing local weather patterns. when subject to a range of different policy framework and accompanying Within the public sector, cities reporting regulatory requirements. As more and measures to reduce emissions through through CDP also explain how they more countries introduce climate the continuation (and expansion) of are planning to adapt to changes in change regulation, the CDP system the EU Emissions Trading Scheme weather patterns such as extreme heat supports companies by bridging the (EU-ETS); targets for non-ETS sectors and extreme precipitation. gap between international business and new targets for the promotion and national reporting requirements of renewable energy. Investors, policy makers, procurement and helps reduce the reporting burden directors and other stakeholders need on companies. In the US, the Obama administration to build up the necessary comparable moved early to set out its ambitions datasets in order to monitor and analyze The CDP Global launch marks the around climate change mitigation: changes; both in terms of the response opening event of NY Climate Week, “We will harness the sun and the to mitigation measures (such as carbon when business leaders, heads of state winds and the soil to fuel our cars and the world’s major investors 7 regulation) and adaptation policies and and run our factories.” programmes. Integral to the success congregate in New York to prepare for of the deal in Copenhagen will be the negotiations at COP15. An agreement The Waxman-Markey bill was finally put there will be a vital step towards before the House of Representatives in availability of this accurate reported data: if businesses don’t measure success, but it is just as important to June and passed by a narrow margin. look beyond Copenhagen and to build The proposed legislation would commit current emissions now, it will be impossible for them to manage and the global systems required to combat the US to reduce greenhouse gas dangerous climate change. CDP emissions by 17% below 2005 levels reduce them in the future. This is where CDP’s role is crucial. remains focused on and dedicated by 2020 through a cap-and-trade to this work and thanks all of the system beginning in 2012. The bill organizations that work with us to will pass through various Senate help realize this goal. 7 Obama inauguration speech, January 21st, 2009.

13 14 3 Introduction

The Carbon Disclosure Project has In our concern to standardise our been conducted in Switzerland jointly analysis, we have decided this year by Pictet and Ethos for the third to score the companies’ responses for consecutive year. Following the great the first time in accordance with success of the first edition, with the Carbon Disclosure Leaders Index a response rate of 78% for the fifty (CDLI) methodology and to create largest stock-listed Swiss companies, the first such Index for Switzerland. the second edition was expanded in 2008 to the 100 biggest Swiss The Swiss CDP 2009 report will thus capitalisations. be structured in three major parts: a discussion of companies’ response In 2008, we differentiated the rates and key trends compared to companies of the SMI Expanded from the previous year and put in an the next 50 stocks of the SPI in order international context, followed by the to make it comparable to the 2007 presentation of the first ever CDLI for report. This year, we have decided to Switzerland and an in-depth analysis analyse the 100 stocks that make up and discussion of the quality and the the SPI Large and Medium Index relevance of the answers obtained. as a whole, in order to simplify our approach. Only 96 companies are effectively analysed in our report. The reason is that three of them are listed twice on the stock exchange (different share classes) and one has been acquired by a foreign company.

15 16 Characteristics 4 of the Swiss market

The Swiss stock market is highly accounts for just over ten percent concentrated and skewed towards of the market. The Swiss CDP certain industries. Of the 96 companies contacted in analysis covers Of the 226 companies that currently 2009, only 54 participated. more than constitute the (SPI), more than 60% of Nevertheless, given the high 90% of the Swiss the total index weight is accounted concentration of the Swiss market for by just five large companies and because all of the larger market capitalisation (Nestlé, , Roche Holding, companies did again participate Credit Suisse and UBS). in the 2009 survey, The heaviest ten companies the respondents combine more account for over three quarters of than 90% of the SPI market value. the total index weight and the first The Swiss CDP sample can one hundred companies – therefore be regarded to be the sample of the present CDP highly representative regarding 2009 Swiss survey – account for both market capitalisation and 98% of the total Swiss market industry breakdown. capitalisation. Health Care companies make up more than one third of the Swiss stock market, Financials approximately one quarter and Consumer Staples another quarter. The fourth largest Global Industry Classification Standard (GICS) sector, Industrials

Characteristics of the Swiss Market

Information Technology 3 Industrials 13 0.4% 9.9% Health Care 7 Materials 7 33.8% 6.8% Telecommunications 1 1.1%

Consumer Discretionary 4 2.1%

Consumer Staples 3 21.4% Financials 16 24.5%

Figure 1 Breakdown by industry of the 54 respondents to the Swiss CDP 2009: Global Industry Classification Standard (GICS) sector number of respondents within sector % of total market cap of this sector (as of 10.08.2009).

17 18 Response rate & discussion on 5 key trends

Response rate complete the CDP questionnaire, seven percent have participated for The total participation rate of 56% the first time in the survey. Another for 2009 is very similar to that of last seven percent that took part in the year (57%). However, whilst 42 survey in 2008 decided not to companies have explicitly declined repeat the exercise this year. to participate or ultimately did not

Universe Responded to the Responded to Responded to Answers public Company CDP 2007 the CDP 2008 the CDP 2009 or not in 2009

ABB Global 500 yes yes yes public Actelion Ltd SMI Expanded yes no yes not public Adecco SA SMI Expanded yes yes yes public Allreal Holding AG Other not contacted no no - ArboniaForsterHolding AG Other not contacted no no - Arpida Ltd Other not contacted yes no - Arytza Other not contacted not contacted no - Austriamicrosystems Other not contacted not contacted yes public Bâloise Holding SMI Expanded yes yes yes public Bank Sarasin & Cie AG Other not contacted yes yes public Banque Cantonale Vaudoise Other not contacted no no - AG SMI Expanded not contacted yes yes public Basellandschaftliche Bank Other not contacted no no - Basilea Pharmaceutica Ltd SMI Expanded not contacted no yes not public Other not contacted yes yes public BEKB / BCBE Other not contacted yes yes public Belimo Holding AG Other not contacted no yes not public Bellevue Group AG Other not contacted yes no - BKW FMB Energie AG Other not contacted no no - Bobst Group Other not contacted yes yes not public Bucher Industries AG Other not contacted no no - Burckhardt Compression AG Other not contacted yes no - Charles Vögele Holding AG Other not contacted no no - Chocoladefabriken & Sprüngli AG SMI Expanded yes yes yes not public Ciba Spezialitätenchemie AG Other yes yes delisted in 2009 - International Ltd SMI Expanded yes yes yes public Compagnie Financière SA SMI Expanded yes yes yes not public Credit Suisse Global 500 yes yes yes public Cytos Biotechnology AG Other not contacted no no - Other not contacted not contacted no - EFG International SMI Expanded not contacted no no - Ems-Chemie Holding AG Other no no yes not public Flughafen AG Other not contacted no no - Forbo International SA Other not contacted no no - SA SMI Expanded not contacted yes no - International AG SMI Expanded yes yes yes public Georg Fischer SMI Expanded yes yes yes public SA SMI Expanded yes yes yes public Gurit Holding AG Other not contacted not contacted no - Helvetia Group SMI Expanded not contacted no yes public Holcim Global 500 yes yes yes public Huber + Suhner AG Other not contacted yes yes public Implenia AG Other not contacted yes yes not public Jelmoli Holding AG Other not contacted yes yes not public Julius Baer Holding AG SMI Expanded yes yes yes not public Kaba Holding AG Other no no no - Komax AG Other not contacted yes no - Kudelski SA Other no no no -

19 Response rate & discussion on key trends

Universe Responded to the Responded to Responded to Answers public Company CDP 2007 the CDP 2008 the CDP 2009 or not in 2009

Kuehne + Nagel International AG SMI Expanded no no yes not public Kuoni Travel Holding Ltd. Other yes yes yes not public Liechtensteinische Landesbank AG Other not contacted no no - International SA SMI Expanded yes yes yes not public AG SMI Expanded yes yes yes public Other not contacted yes yes not public Meyer Burger AG Other not contacted no yes not public Micronas Semiconductor Holding AG Other yes yes yes public Mobimo Other not contacted not contacted no - Nestlé Global 500 yes yes yes public Nobel Biocare Holding AG SMI Expanded yes no no - Novartis Global 500 yes yes yes public OC Oerlikon SMI Expanded no no no - Orascom Development Holding Other not contacted not contacted no - Panalpina SMI Expanded yes yes yes public Pargesa Holding SA SMI Expanded no no no - Other not contacted yes yes public Petroplus Holdings AG SMI Expanded not contacted no no - PSP Swiss Property AG SMI Expanded no no no - PubliGroupe SA Other not contacted no no - Quadrant AG Other not contacted no no - Rieter Holding AG SMI Expanded yes yes yes not public Roche Holding AG Global 500 yes yes yes public Romande Energie Other not contacted not contacted no - Schindler Holding AG SMI Expanded yes yes no - Schmolz+Bickenbach AG Other not contacted yes yes not public Schulthess Group Other not contacted no no - SGS SA SMI Expanded yes yes yes public Sika AG SMI Expanded yes no yes public Holding AG SMI Expanded yes no no - St. Galler Kantonalbank Other not contacted no no - Holding AG SMI Expanded yes yes yes public AG SMI Expanded yes yes yes not public Swatch Group SMI Expanded no no no - SMI Expanded yes yes no - AG Other not contacted no no - Swiss Re Global 500 yes yes yes public Global 500 yes yes yes public Syngenta International AG Global 500 yes yes yes public Synthes Inc. Global 500 no no no - Group Ltd Other not contacted yes yes public Temenos Headquarters SA SMI Expanded not contacted no no - UBS Global 500 yes yes yes public Valiant Holding AG SMI Expanded not contacted yes yes not public Valora Holding AG Other yes yes yes public Von Roll Holding AG Other not contacted no no - Vontobel Holding AG Other yes yes yes public VP Bank Gruppe Other not contacted yes yes public Zurich Financial Services Global 500 yes yes yes not public

Table 2 Historical and current participation of companies in the Swiss CDP and public status of the answers provided.

20 Carbon Disclosure Project 2009

Non responding companies implemented any measures to The present It is important to distinguish tackle the problem; however, it between two main samples of certainly raises some questions and economic crisis companies among those that concerns about their willingness to decided not to participate. While the meet their investors’ expectations might sideline first demonstrates obvious interest regarding climate change. climate change in climate change-related issues, the Nondisclosed information second one brings together issues companies with little or no concern 37% of the respondents have for the problem. decided not to disclose their responses against 47% in 2008, Regarding the first group, mainly which shows the improvement in formed of small and medium sized companies’ transparency regarding companies, some factors explaining their CO2 emissions. By taking a the choice not to participate are closer look at the questionnaires of recurrent and can be summarised companies not having rendered their as follows: answers public we find a large number of companies that have only • a small number of companies partially answered to certain consider that the data available questions or have left blank whole to fill out the CDP questionnaire parts of the questionnaire, which Transparency are still not sufficient in terms of might explain their decision. quality and therefore prefer to However, there are also a few improvement postpone their involvement until companies which completed their management systems make the questionnaires very thoroughly, it possible to meet the quality but decided to keep their requirements they set themselves. information undisclosed nonetheless Some others are currently taking (e.g. Ems-Chemie, Rieter). internal measures and are defining responsibilities in order to ensure participation in the next edition. Two of them have already requested that the questionnaire be sent to them at the beginning of 2010.

• some companies are badly hit by the economic crisis (job cuts and decline in sales) and, in spite of their proven involvement and interest in climate change innovative solutions, are not able to respond to the questionnaire. In particular, they point out poor financial, technical and human resources, as well as redefined business priorities. A refusal to participate in the CDP raises particular questions when it comes to companies which, as a result of their business activities, have an above average exposure to carbon risks. This year again, Petroplus, BKW FMB Energie, PSP Swiss Property and Flughafen Zürich have declined to provide information on their climate change strategy within the scope of the CDP. This reluctance vis-à-vis the CDP request does not necessarily mean that they have not have

21 Response rate & discussion on key trends

Main results 2009 and Risks comparison with 2008 Approximately half of the Progress with Compared to last year, Swiss respondent Swiss companies companies have considerably consider that they are exposed to climate change increased their awareness of the risks related to climate change. opportunities but also of their 44% feel they are exposed to strategies responsibilities related to climate regulatory risks, while 48% see change. Noteworthy is that 56% of physical risks and 59% anticipate the Swiss respondents see no other risks. These results are similar regulatory risks ahead, but 72% to last year. anticipate regulatory opportunities Regulatory risks for their businesses (2008: 59%). Two thirds (65% against 52% in Regulation on climate change is 2008) have concrete emissions and widely seen as a cost factor. In energy reduction plans and three particular, companies fear additional quarters of companies (74% versus energy costs related to an eventual 68% in 2008) have an executive integration of Switzerland into the body responsible for climate change European Union Emission Trading issues. Furthermore, we can Scheme (EU ETS), increased observe an increase in the number regulations on natural resources of companies that are actively utilisation or on building specification engaging with policy makers on which would entail additional climate change (2009: 43%; renovation measures and costs. 2008: 33%). Up to the present time, Switzerland Figure 2 on page 21 presents an has been subject to restrictive overview of the key trends international regulations through discussed and the change in the Kyoto protocol. By signing this disclosure performance from 2008 agreement, Switzerland has to 2009. committed to reducing its GHG emissions from 1990 on average by 10% by 2010. The post-Kyoto framework to be designed in Copenhagen in December 2009 will

Evolution of disclosure level for several key trends from 2008-2009

80 2008

70 2009

60

50

40

30

20

10

0 s s s ure ure sks sks ion s ss clo ical s ical ri s s Emi di ion trading Engagement ss Regulatory opportunitie Phy opportunitie Board control Board Phy Reduction plan Regulatory ri Emi External verification

Figure 2

22 Carbon Disclosure Project 2009

most probably have an impact on Companies have often taken a Swiss policies, depending on the pro-active approach either towards willingness of the participating existing GHG legal schemes as countries to find a general Novartis in its Corporate Energy and agreement. Climate Strategy, or by following closely the evolution of the regulative In particular, two different initiatives environment such as Lonza Group are under discussion at this time: and/or by integrating it into their first, the Swiss transport and energy business risk management, as is the minister Moritz Leuenberger has case with Panalpina, Swiss Re and been calling for the introduction of Tecan Group. For its part, UBS an international tax on carbon seeks to integrate current and future dioxide (CO2) emissions to fight climate change regulation into global warming. Second, the Swiss investment analysis and investment government is pursuing technical decisions to avoid negative impact talks with the European Union for client portfolios. initiated in 2005 in order to find a way to incorporate the country’s Physical risks own efforts to reduce emissions into 48% of the Swiss companies feel the European Union’s Emission exposed to physical risks caused Trading Scheme (EU ETS) after by climate change. Companies the conference in Copenhagen. worrying the most about these risks The companies most apprehensive are insurance companies and those about regulation on climate change where the business is directly are energy-intensive firms such as exposed to environmental changes, companies from the Industrials and such as agriculture, real estate Materials sectors. Those relying on and tourism. logistics and transports are The physical risks most often concerned, too, since they are mentioned are those likely to be directly affected by an eventual caused by an increase of extreme increase in energy costs. weather events such as floods, This would result in higher costs for drought, rising sea levels or the company itself, its suppliers and hurricanes. These environmental at the end for customers. However, disruptions may have huge if in the long term, such regulations operational impacts: are likely to lead to more energy- they may damage buildings, efficient products, then it can be reduce accessibility and also expected that any increase in cost promote the spread of infectious would be offset by the reduced diseases. In this regard, Georg running costs of the redesigned Fischer has established a products. Pandemic Prevention Plan. Some Sectors which - at first sight - are international companies such as less affected by climate change Panalpina have already been regulations like the Financials affected by physical risks, in sector pay particular attention to particular where they operate in legal obligations regarding energy potential flooding or storms regions efficiency of buildings and infra- in Asia and the USA near the structure, as mentioned, for coastline or in low-land areas. instance, by BEKB/BCBE, Credit Novartis thinks that this type of risks Suisse and UBS. Furthermore, could ultimately result in higher land Credit Suisse points out indirect prices or land leasing costs. Such regulatory risks through the way weather events may also disrupt their clients, especially the ones the upstream or downstream supply with high carbon exposure, could be chain, from transportation to affected by the changing regulatory distribution, for instance, if a key frameworks. This in turn may have supplier is affected. Finally, it may an impact on their businesses in the and Asset Management divisions, as well as influencing their lending portfolios.

23 Response rate & discussion on key trends

Extreme weather disrupt or limit availability and Novartis explains that “60% of all reliability of natural resources such (global) new anti-cancer and events may have huge as water and energy with an anti-infective agents discovered associated impact on price. in the period 1984 to 1995 were operational impact derived from natural products As a global re-insurer, Swiss Re has or their derivatives”. integrated physical and weather- In consequence, a reduction related risks in their core business in biodiversity may have a negative process. They price risks and invest impact on its activities. into research to better understand future implications of climate change Opportunities on their business. They mainly see a risk to their property insurance Over 70% of the responding business. In this respect, Swiss Re’s companies find that regulatory weather-related losses since 1990 requirements also present have shown a clear upward trend in opportunities to their business. terms of both hazard frequency and Less than 60% thought so in 2008. intensity. In some European According to many Swiss countries, they expect more than a companies, new regulations on doubling in property losses related climate change bring new business to winter storms by the end of the 2 opportunities to innovate and create century. climate-friendly technologies and Other risks products. They are in particular aware of the fact that leaders in In line with the Stern Review greenhouse gas monitoring and “the economics of climate change”, management would have a financial institutions such as competitive advantage over their Votonbel suggest that climate peers. As mentioned by Panalpina, disasters may have a broader “in a policy environment where impact than merely physical: it could climate change is increasingly result in a changing macroeconomic addressed, companies leading in situation and even an economic this field have more and more recession from which financial competitive advantage by avoiding markets could suffer long-term high costs of regulatory compliance losses. Credit Suisse highlights and by being more attractive to the reputation risk stemming for customers that respond to example from the involvement with regulatory changes as well”. clients that are perceived as substantially contributing to climate Companies in the Industrials and change through climate-damaging Materials sectors are already well operations or through a lack of positioned or have started to preventive measures. Another risk develop new products. could arise through changes in consumer attitude and demand, For example, a big share of which may affect clients either Geberit's sales is closely related to negatively if they fail to adapt to water-efficient sanitary systems. respective changes, or also As a control and inspection positively if they offer innovative and company, SGS has caught up with climate-friendly products and Need for common the trend and already offers a variety services (see also next chapter on of services addressing the needs of standards opportunities). the renewable energy and biofuels on emissions In the health care sector, Novartis industries, water management and says that potential reductions in energy efficiency. SGS’s services accounting biodiversity caused by climate range from verification of carbon change may have long-term intensity and sustainability reporting impacts on its operations. Indeed, to project monitoring and certification. 2 Total weather and natural catastrophe related losses: USD 144bn in industrialized countries, USD 165bn in The financial industry has emerging countries; Insured weather related natural catastrophy losses: USD 79bn (54%) in industrialized responded by bolstering up their countries, USD 11bn (6.7%) emerging countries. offer in Socially Responsible (Source: Swiss Re CDP questionnaire, question 1aii)

24 Carbon Disclosure Project 2009

Investment (SRI) or dedicated account for and report on their environmental or climate-related carbon emissions. There is at this investment funds. As pointed out by stage no mandatory national or Swiss Re, climate-related regulation international regulation on emissions will also trigger new markets and accounting, only a set of best investment opportunities in practice recommendations (such as emissions trading, emission the Greenhouse Gas Protocol that is certificates and the renewable also used in the CDP questionnaire). energy sector. For this reason, each company is in principle free to choose its However, it is interesting to see that, consolidation perimeter although, of although more companies claim to course, the more comprehensive perceive climate change regulations the system boundaries are defined, more as a business opportunity than the better the overall carbon a risk, few have been able to explain exposure is expressed. This convincingly how exactly they are “freedom of choice” does not make going about identifying and it easy to compare and interpret integrating these opportunities into companies’ response rates without their business plans. going into greater detail. Emissions accounting Performance 72% of Swiss companies disclose In 2008, just over half of the Swiss their emissions accounting (64% in companies that responded to the 2008) and 67% report on their CDP asserted to have a GHG indirect emissions resulting from emissions and/or energy reduction their sourcing of energy. plan in place, compared to as many Most of the companies use as 65% this year, which is an international standards to account encouraging improvement. for their emissions, such as the Although most of them (92%) have Greenhouse Gas Protocol, which is established some sort of also the methodology underlying the quantitative reduction target, these CDP. Some banks use the European goals may vary considerably in the VfU indicators (Verein für way they are defined (absolute, Umweltmanagement in Banken, relative or product-specific targets) Versicherungen und Sparkassen), as well as in the degree of ambition. which have been created to help While in general companies plan financial institutions to tackle rather moderate GHG reductions of environmental management issues. between 2% to 10% in the next two Regarding the scope 3 emissions to five years, some companies (indirect emissions generated within the carbon-intensive outside the companies’ premises), Industrials or Materials sector aim close to 40% of companies publish much higher: Holcim targets a 20% their CO2 emissions relative to their reduction by 2010 (with 1990 as business travels, which is a great the base year) and Geberit targets a improvement compared to 2008. 15% reduction compared to 2006. On the other hand, still only a Among the banks, which have handful of companies calculate or relatively low direct emissions, some estimate the emissions stemming aim to be partially or wholly from the distribution and disposal of CO2-neutral, such as Credit Suisse, their products. Exceptions to the Bank Sarasin or Partners Group. rule are Austriamicrosystems, However, a large proportion of Givaudan, Nestlé and Syngenta. emissions with financial institutions are caused by their financing and Whereas in 2008 20% of companies capital allocation. Zero emission had their carbon emissions verified targets for banks’ direct emissions by an external auditor, 35% have therefore solve only (a small) part of followed their lead in 2009, which is the problem. at least an encouraging trend. The section Emissions accounting is aimed at analysing how companies

25 Response rate & discussion on key trends

Governance Credit Suisse and UBS participate in different working groups and Board control public-private partnerships, such as Swiss companies 74% of Swiss companies that the UNEP Finance Initiative and the responded to the survey have a World Economic Forum (WEF) in are more and more Board Committee or an executive order to represent the views of body with overall responsibility for the finance industry in the debate committed on climate change. This committee about the post-Kyoto. climate change is most often made up of representatives on an executive level Comparison with the from all relevant business units and international trends is chaired by the CEO. Climate- When comparing these answers change-related risks and with the overall trends in countries opportunities are then integrated in where a carbon disclosure report their overall operational and has been conducted, the scores of business strategy and are published Swiss companies come out more or in their annual report or sustainability less in line with the average. This is report. Only a minority of companies particularly the case regarding the provide incentives for individual GHG disclosure of GHG emissions management performance. One of (CH: 65%; average: 66%) and the the exceptions is Swiss Re, which information provided on their has integrated its carbon reduction emissions & energy reduction plans goals in the yearly performance (CH: 65%; average: 66%). targets of the employees involved in Switzerland also lies in the average their climate change program. rank regarding companies that have Engagement created an executive body 43% of the Swiss companies responsible for climate change Need for questioned say that they have issues (CH: 74%; average: 71%). more ambitious engaged with policymakers on On the other hand, less than half of possible responses to climate the Swiss companies see regulatory reduction targets change, including taxation, and physical risks related to climate regulation and carbon trading, change (worldwide average: 66% which is 10% more than last year. and 68% each). This can probably Companies engage most often be explained by the large proportion through different industry of Swiss business sectors whose associations, as is the case with direct (Scope 1 according to CDP Clariant via the Chemical Industry terminology) carbon emissions are Associations, or Georg Fischer with relatively low and which in the Swiss Mechanical and Electrical consequence do not feel deeply Engineering Industries Association concerned by more stringent CO2 (Swissmem). regulations. Furthermore, only 35% In this context, it is noteworthy of the Swiss companies have their that approximately half of all emissions externally verified, when respondents have committed to the overall average is almost 50%. voluntary target agreements to Finally, while almost 40% of the reduce carbon emissions within the companies responding overall scope of the Swiss Private Sector engage in or consider participating Energy Agency (EnAW) a Swiss in emissions trading, only 19% of private sector initiative, the aim of the Swiss companies do so. which is to reach the targets set However, this of course has to do with the fact that Switzerland is not by the Swiss CO2 law on a voluntary basis in order to prevent more part of the European Union and is coercive measures or an outright not yet included in the EU ETS. CO2 tax. Some companies actively work with NGOs, such as ABB, Holcim and Novartis with the World Business Council for Sustainable Development (WBCSD).

26 Swiss Carbon Disclosure Leaders 6 Index

In order to standardise the analysis The CDLI does not, however, score The CDLI as a of the CDP survey and make it companies according to their comparable with other CDP reports absolute level of emissions, standardised of other geographic markets, it was reduction achievements or actual decided this year to have the carbon intensity. measure of companies’ responses scored in disclosure level accordance with the Carbon The ranking is furthermore Disclosure Leaders Index (CDLI) exclusively based on the information methodology and to create the first provided by the companies on ever Swiss Carbon Disclosure a self-declaratory basis. Leaders Index. In order to emphasise the The CDLI ranking methodology has importance of transparency and been developed jointly by the CDP disclosure, only the companies that and their global advisor have agreed to make their PricewaterhouseCoopers LLP questionnaire public qualify for (PWC)3. Its goal is to codify the inclusion in the CDLI index. answers provided by companies as objectively as possible and to classify the companies according to their level of disclosure. The codification of the Swiss companies’ questionnaire has been conducted by PWC for the 12 largest companies that are also included in the Global 500 report, and by Centre Info/INrate in Fribourg for all the other respondent Swiss companies (called Switzerland 100 in the following). The detailed analysis and discussion of the results have been conducted by the authors of this report, Pictet Asset Management and Ethos. It is important to keep in mind that the CDLI is a measure of the level of disclosure and the quality of responses to the CDP questionnaire, but it is not a quantitative assessment of company’s climate change performance. For the CDLI it is important to disclose emissions, the underlying methods and to show that a company has the necessary elements at its disposal to manage the issue of GHG emissions and climate change.

3 The interested reader is referred to the CDP website www.cdproject.net, where the CDLI scoring methodology can be downloaded for free.

27 Carbon Disclosure Leader Index CDLI

Result and analysis of CDLI for Swiss companies

Table 3 below displays the first companies that did make their Carbon Disclosure Leaders Index answers publicly available but could for Switzerland. Not included are not be properly scored and ranked companies that did not make their because they only provided answers CDP answers public and four to parts of the questionnaire.

Company Name MSCI Sector CDLI CDP Report Swiss Re Financials 76 Global500 Novartis Health Care 70 Global500 BEKB/BCBE Financials 69 Switzerland100 UBS Financials 68 Global500 Geberit Industrials 68 Switzerland100 Credit Suisse Financials 68 Global500 Georg Fischer Industrials 68 Switzerland100 Vontobel Holding AG Financials 66 Switzerland100 Bank Sarasin Financials 63 Switzerland100 Givaudan Materials 62 Switzerland100 Austriamicrosystems Information Technology 61 Switzerland100 Holcim Materials 61 Global500 Syngenta International AG Materials 60 Global500 Nestlé Consumer Staples 60 Global500 ABB Industrials 57 Global500 SGS SA Industrials 55 Switzerland100 Swisscom Telecommunication Services 55 Global500 Partners Group Financials 55 Switzerland100 Straumann Holding AG Health Care 54 Switzerland100 Basler Kantonalbank Financials 53 Switzerland100 Bâloise Holding Financials 49 Switzerland100 Lonza Health Care 47 Switzerland100 Huber + Suhner AG Industrials 46 Switzerland100 Roche Holding AG Health Care 45 Global500 Adecco Industrials 45 Switzerland100 Clariant Materials 44 Switzerland100 Sika AG Materials 44 Switzerland100 Panalpina Industrials 43 Switzerland100 Barry Callebaut Consumer Staples 43 Switzerland100 Micronas Information Technology 39 Switzerland100

Table 3 Carbon Disclosure Leaders Index for Swiss Companies

The CDLI ranking prompts a few In terms of sector representation, observations and comments. Swiss Financials seem clearly over- Re with a CDLI score of 76 has a represented with six out of ten clear lead over the rest of the field. companies. This might be surprising The distance between Swiss Re and at first sight, given their relatively low the second-best company Novartis direct exposure to GHG emissions. is almost seven points, whereas the Nonetheless, banks are very quick following eight companies are all in spotting and capitalising on new crammed into the next seven points. trends and opportunities, and they Global500 companies account for do particularly well in the CDP four out of the top ten companies section on risks & opportunities and again for nine out of the top (section 1) as well as on twenty. Large companies with an organisational awareness (section 4) international reach clearly seem to of the CDP questionnaire. perform better than the average in carbon disclosure.

28 Carbon Disclosure Project 2009

Not included in the above table are Public disclosers are obviously companies that did not publicly confident of their relative advantage disclose their answers to the CDP. in climate change matters and do Comparing the scores of the non not have to fear comparison with public respondents with the public their peers. Nevertheless, certain respondents, we could nevertheless undisclosed respondents did very observe that most companies that well, and one company in the score high also make their answers Switzerland 100 subgroup would public and vice versa. even be placed in the top ten.

Sector patterns of Swiss CDLI results A glance at the disclosure quality by at all for this sector. All to the right is The quality of Global Industry Classification the overall CDLI result for all sectors Standard (GICS) sectors as combined. Good to very good disclosure varies measured by the CDLI score reveals reporters can be found in almost all several interesting patterns to us. sectors, with Consumer considerably across We observe considerable Discretionary lagging slightly behind. and within sectors differences in the minimum, medium Some sectors attain high maximum and maximum scores, but also great scores but also have very low variation in the dispersion within minimum scores, as is the case for sectors. Intra-sectoral dispersion Health Care and Financials. can be explained either by actually Consumer Staples, Information varying quality of responses but also Technology, and particularly by the number of companies within Industrials and Materials attain high each sector. A special case in this scores as well as a consistent respect is the Telecommunications reporting quality despite the sector, which is constituted of one relatively large number of companies single company (Swisscom). This within these sectors. explains why there is no dispersion

CDP Disclosure by GICS Sector

Consumer Discretionary

Consumer Staples

Financials

Health Care MAX Industrials MIN Information Technology MEDIAN

Materials Q1

Telecommunication Q3 Services

Grand Total

0 20 40 60 80 100

Figure 3

29 Carbon Disclosure Leader Index CDLI

Scores according to CDP sections The CDP questionnaire can be would rather expect the order to be Swiss companies broken down into five different reversed, supposing that only an sections reflecting a company’s in-depth reflection regarding risks have a high disclosure performance in the and opportunities would prompt an organisational following domains: Risks & institutional and organisational Opportunities (1st section), response. awareness of Emissions Accounting (2nd section, first part), Verification & Trading Less impressive is the disclosure climate change (2nd section, second part), performance in Emission matters Performance (3rd section) and Accounting and Performance (CDP Governance (4th section). A brief sections 2a and 3). These sections description and interpretation of of the CDP questionnaire are the the different sections and their most concrete, geared towards respective relevance for the systematic accounting, monitoring aggregate CDLI score can be found and implementation of GHG in the appendix at the end of reduction measures. this report. The relatively high score for Figure 4 displays the average CDLI Verification & Trading is again less score of companies for the different obvious given the aforementioned CDP sections. modest score for section 2b and the fact that only a minority of Swiss The first thing that strikes the eye is companies are subject to the that, on average, companies score European Emissions Trading very well regarding climate change Scheme EU ETS. But then his result governance. We may conclude can be explained by the fact that therefore that Swiss companies in good qualitative answers can earn a general have a rather high company high scores in this section “organisational awareness” of and the disclosure of hard numbers climate change matters. and figures is less decisive. Surprisingly, companies score consistently less well regarding section 1 of the questionnaire (Risks & Opportunities). Intuitively one

Disclosure score of Swiss companies by CDP Section

MAX

1. Risk & MIN Opportunities

MEDIAN

2a. Emission Q1 Accounting

Q3

2b. Verification & Trading

3. Performance

4. Governance

0 20 40 60 80 100

Figure 4

30 Carbon Disclosure Project 2009

Scores according to CDP report category

Figure 5 displays a breakdown of (e.g. some of their foreign Large companies the Swiss CDLI results by CDP subsidiaries might be subject to the report category. The eleven largest EU ETS etc.) and they are also more have the out of the 54 respondent companies likely to have the necessary resources to score had been contacted within the technical and human resources at scope of the Global500 CDP 2009 their disposal to tackle the issue better on carbon survey, since these companies of climate change – down to belong to the 500 largest responding effectively to a disclosure companies of the FTSE Global comprehensive questionnaire such Equity Indexes. The other as the CDP survey itself 4. companies figure only in the 4 Although we believe this interpretation to be correct, Switzerland 100 survey. The scoring we cannot exclude the existence of a certain scoring difference by CDP report category bias due to the fact that the analysis for the 11 large Swiss companies included in the Global 500 can certainly be explained to a large survey and the remaining companies (Switzerland 100) have been done by two different teams of analysts. extent by the fact that these larger Whereas PWC did the CDLI rating for the Global 500 companies usually have a higher companies, Centre Info/INrate did the scoring for the remaining companies in the CDP 2009 survey. So the exposure to climate change issues difference between the two groups could – theoretically at least – also be due to these circumstances.

Disclosure performance by CDP report category

100% Swiss Global 500 Companies Switzerland 100 Companies

80%

60%

40%

20%

0% s s ion & ss sks overnance G 1. Ri Opportunitie 2a. Emi Accounting 4. 2b. Verification 2b. Verification & Trading 3. Performance

Figure 5

31 Carbon Disclosure Leader Index CDLI

Intra-sector comparison and best practice

Let us now have a look at an intra- Within the first compartment, sector or peer group review and companies are listed top-down highlight some best practice within according to their Swiss each GICS sector peer group, CDLI Score. except for two sectors where no There are a number of companies in companies at all responded to the the following tables marked by an CDP questionnaire. This is the case asterisk star*. The answers of these for Energy (Petroplus Holdings) and companies are public but could not Utilities (Romande Energie et BKW be properly rated because they FMB Energie). For each sector provided only partial answers to analysed, we have grouped the the CDP questionnaire. companies in three categories: - respondent companies making In two cases (Rieter and Ems- their CDP answers public and that Chemie) the companies declined to consequently also figure in the make their answers public; rankings presented above consequently, they could not be - respondent companies that included in the CDLI ranking either, declined to make their CDP but we still felt they deserved to be answers public quoted for best practice within their - non respondent companies sectors.

Consumer Discretionary

Responded and public Responded and Not responded not public

Valora Holding* Richemont Arbonia Forster Holding AG Charles Vögele Holding AG Kuoni Travel Holding Dufry Rieter Holding Forbo International SA PubliGroupe SA Schulthess Group Swatch Group

Low level of As we have already seen on Valora is concentrating its efforts on Figure 3 page 29, the Consumer PET recycling, which reduces CO2 public disclosure Discretionary sector as a group has emissions, saves energy and rather a moderate level of disclosure reduces the use of nonrenewable in the Consumer and transparency. resources. According to a study, the Discretionary sector total impact of recycling PET was Rieter reports on 95% of its total 50% lower than simply disposing of production and assembly units. The it together with household waste and company reports CO2 emissions replacing it with new material. Valora stemming from its manufacturing is also taking steps to minimize GHG units as well as from its energy emissions from its logistics, planning procurement. Rieter has launched to reduce average freight distances several projects to improve the and vehicle kilometres by an energy efficiency of their spinning estimated 450’000km per annum. machinery in order to help their customers diminish their energy consumption per kilogram of processed fibres. The same approach is taken in its automotive division where the weight reduction of component is an important part of the development process in order to help their customers reduce their vehicles’ fuel efficiency.

32 Carbon Disclosure Project 2009

Consumer Staples

Responded and public Responded and Not responded not public

Barry Callebaut (43) Lindt & Sprüngli Arytza Nestlé (60) Dufry

Nestlé provides very detailed agricultural raw materials, animal emission data by country and husbandry, transformation, business division for both its direct transportation, distribution, and energy supply related consumption and recycling. emissions. Furthermore, Nestlé is particularly strong on its supply Barry Callebaut impresses by a very chain, which is of particular detailed breakdown of its GHG importance to a food company with emissions per country and by such a global footprint. Nestlé business division both with regards conducts Life Cycle Assessments to its direct emissions from its based on ISO 14040 methodology facilities but also with regard to its for all its major product categories, energy supply. The company also trying to quantify the water and the plans to step up the use of biomass residues (cocoa shells) for energy CO2 footprint of the entire supply chain, including production of generation.

Financials

Responded and public Responded and Not responded not public

Bâloise Holding (49) Jelmoli Allreal Holding AG BEKB/BCBE (69) Julius Baer Banque Cantonale Vaudoise Basellandschaftliche Bank Bank Sarasin (63) Luzerner Kantonalbank Bellevue Group AG Basler Kantonalbank (53) Valiant Holding EFG International Credit Suisse (68) Zurich Financial Services Liechtensteinische Landesbank Helvetia Group* Mobimo Orascom Development Holding Partners Group (55) Pargesa Holding SA Swiss Re (76) PSP Swiss Property UBS (68) St. Galler Kantonalbank Vontobel Holding AG (66) Swiss Life Swiss Prime Site AG VP Bank Gruppe*

BEKB/BCBE’s high ranking is Regarding its product offering, the Innovative investment the consequence of a strong bank has recently launched a regional focus, which clearly helps special lending product that offers solutions for climate to control and keep track of its GHG very favourable conditions for emissions while also capping energetic optimisation measures. change mitigation & the absolute level of GHG emissions adaptation stemming from carbon-intensive Basler Kantonalbank also benefits business travels. from its predominantly regional The company’s emission reporting activity focus, which quite naturally is externally verified and geared restricts emissions stemming from towards a concrete and absolute business flights that are a well- GHG reduction target of 5% for the known and important source of period 2008 – 2011, from an already emissions for companies with an low base, as the bank had already international focus. The company achieved a massive reduction of also provides financial products that 40% of GHG emissions in the past have a positive catalytic prior to its set baseline year 2007. environmental impact such as “Minergie” mortgages for

33 Carbon Disclosure Leader Index CDLI

energy-efficient buildings or Swiss Re has a long track record in mortgages with reduced developing innovative solutions for interests for renovations that climate change mitigation and result in energy savings. adaptation. In 2006, they had jointly implemented the first insurance Credit Suisse reports its GHG product for managing Kyoto emissions for all its banking Protocol-related risks for two landfill operations worldwide with a very gas emission reduction projects in precise level of detail. As part of South America. their internal climate strategy, they A Swiss Re subsidiary was also have switched to a hundred percent appointed as investment manager of renewable electricity supply for all a EUR 125 million Post 2012 their Swiss as well as their Frankfurt Carbon Credit Fund sponsored and London offices. The remaining by a consortium of European emissions from its Swiss operations, development banks. Swiss Re’s approximately 40,000 tons per year, own investments in green assets are compensated through the have been growing steadily over the purchase and retirement of carbon last four years. Investment clusters credits stemming from various range from infrastructure and project climate projects, technologies and finance type investments to standards. Besides their “cleantech” venture capital. environment-related investment Swiss Re is also a global leader in products, particularly in the field of the fast-growing market of renewable energies, they have catastrophe bonds and a first mover recently introduced a special in the weather risk transfer markets mortgage product for homes that with a global market share of more comply with the Swiss Minergie than 30%. label, and its BANK-now subsidiary offers preferential “green” leasing terms for motorists who opt for low-emission vehicles.

Health

Responded and public Responded and Not responded not public

Lonza (47) Actelion Arpida Novartis (70) Basilea Pharmaceutica Ltd Cytos Biotechnology Galenica SA Roche Holding (45) Nobel Biocare Holding AG Straumann Holding (54) Sonova Holding AG Tecan* Synthes Inc.

Climate change Novartis provides a very detailed their experience and their research breakdown of its GHG emissions for focus on tropical infectious will spread countries as well as for its various diseases. Novartis has a total of business divisions. Data is fairly eight sites in five EU Member States human diseases complete for Scope 1 and 2 subject to the EU ETS. Their emissions stemming from its own experience so far has shown that operations, its energy supply and sites were able to comply and own vehicle fleet. According to the reduce their emissions much more company, they plan to include more easily than expected. Instead of the data on indirect Scope 3 emissions forecast shortage, emission in the future as well, but Life Cycle reduction measures have even Analyses of selected pharmaceutical produced a small surplus. products have only been recently Roche Holding is part of an industry initiated. The company anticipates group that has negotiated and that climate change and rising committed itself to voluntary GHG global temperature might accelerate reduction targets with the Swiss the spread of tropical and other authorities. vector diseases, but the company considers itself well prepared given

34 Carbon Disclosure Project 2009

In the same vein, its US-sites are collect activity energy and general taking part in the US Environmental sustainability-related data across Protection Agency’s (EPA) climate sites in different countries. Like leaders program. The company Roche, Straumann is – apart from reports direct emissions from its the energy supply – not explicitly operations as well as from its energy addressing climate-related issues supply; however, it does not provide located along its entire supply chain, a detailed breakdown by country or but the company plans to business unit and does not address implement a more comprehensive the indirect emissions of its sourcing reporting on their indirect emissions of raw materials. for the foreseeable future. Straumann uses a special IT tool in order to accurately and consistently

Industrials

Responded and public Responded and Not responded not public

ABB (57) Belimo Holding AG Bucher Industries AG Adecco (45) Bobst Burckhardt Compression AG Flughafen Zürich AG Geberit (68) Implenia Kaba Holding AG Kuehne + Nagel Georg Fischer (68) Komax AG Huber + Suhner AG (46) International AG OC Oerlikon Panalpina (43) Meyer Burger AG Schindler Holding AG. SGS SA (56) Sulzer Von Roll Holding AG

Geberit is using one of the most components for light(er) weight car Energy efficiency advanced Life Cycle Assessment design or more energy-efficient (LCA) tools (Ecoinvent V.2) for machine tools. improvement calculating its cumulative CO2- emissions all the way up to the well. ABB impresses by a sophisticated can have a large A heightened climate change internal data collection system. impact on awareness has led them to define a Consequently, ABB reports emission data for over 85% of its employee comprehensive CO2-strategy on GHG emissions production site level and an energy base, broken down in great detail master plan for the most important according to country of origin. Its production sites. Given that climate main focus is on its electro-technical change will also severely impact on products such as the smart water availability in the future in interconnection of power systems many regions, Geberit’s strong with high-voltage direct current that emphasis on water-saving products enables large savings as well as the is another important pillar of their large-scale integration of renewable climate change strategy. energy into the power grids. ABB's high-efficiency motors and variable- Georg Fischer is publishing GHG speed drives for motors also data for Scope 1 (direct emissions) contribute to substantial emission and Scope 2 (energy supply) for reductions. According to their own three geographic regions and for all calculations, their drives help to sites where the company exerts save some 130 million megawatt- operational control. Georg Fischer hours of energy per year, which places particular emphasis on its corresponds to an ongoing products that are often used and reduction of over one hundred operated by its clients for many million tonnes of CO2 per year. years and where consequently energy efficiency improvements can make a large impact on GHG emission. Noteworthy examples are aluminium or magnesium-based

35 Carbon Disclosure Leader Index CDLI

Materials

Responded and public Responded and Not responded not public

Clariant (44) Ems-Chemie Holding AG Gurit Holding AG Givaudan (62) Schmolz+Bickenbach Quadrant AG Holcim (61) Sika AG (44) Syngenta (60)

Materials Holcim is Switzerland largest emitter control is exercised, separately for of GHG and as such both a major its two divisions Flavours and have the largest agent and a major potential beneficiary of climate change. Fragrances and broken down in four exposure to The rising sea level and more geographic regions. The level of the EU ETS extreme weather conditions will call detail is often very precise going for massive investments in down, for instance, to providing protective coastal and inland exact cost figures for different infrastructure, which will boost energy and fuel sources. In the demand for cement and concrete. period 2000-2006, scope 1 Consequently, Holcim is a emissions were reduced by over comprehensive GHG reporter with 20% whilst energy consumption per clear and ambitious GHG emission tonne of product receded by 6%. reduction targets. Holcim has a Since then, because of a large large exposure to the EU ETS. They acquisition reporting baseline and have set up their own central trading the product mix have significantly platform to handle their emissions changed which is understood to trading activities. Holcim closely make long-term comparison more monitors and optimises its emission difficult to interpret. For its external rights portfolio, for instance by scope 3 emissions, Givaudan investing in several Joint provides estimates on road Implementation (JI) and the Clean transport of raw materials from the Development Mechanism (CDM) arrival port in the EU to the projects under the Kyoto Protocol. fragrance manufacturing sites in Holcim is reducing its footprint, both continental Europe, road transport by increasing its use of alternative of finished goods within Europe fuels, but also by developing less to customers as well as outbound carbon-intensive products such as a transport of finished goods from new slag cement that offers a lower continental EU manufacturing sites grey energy content and higher to customers in Asia, Africa and chemical corrosion resistance and the USA. longevity, or micro cements that can Syngenta reports direct and indirect be injected into porous sub soils GHG emissions broken down by that help reduce the need for region and business division and extensive demolition and repair they have set themselves concrete work. Less carbon-intensive and ambitious GHG relative composite cements, manufactured reduction targets (minus 40% from natural materials and industrial relative to EBIT by 2012 compared by-products, already account for with 2006 figures). Syngenta also almost three quarters of uses LCA techniques to obtain a consolidated cement sales. more complete picture of their Givaudan, too, is subject through overall emissions, e.g. some of its European subsidiaries to by approximating their supply the EU ETS. The company reports chain emissions by multiplying its scope 1 and 2 emissions for all the value purchased with the companies over which operational average reported emissions of its top ten suppliers.

36 Carbon Disclosure Project 2009

Clariant also discloses its direct In 2007, Ems-Chemie concluded a (scope 1) and indirect (scope 2) reduction contract with the Climate GHG emissions and has them Cent Foundation regarding the verified independently by a third purchase of CO2 emission party. They, too, have set reductions. In this way, Ems-Chemie themselves precise targets has committed itself to reduce CO2 (-7% specific energy consumption emissions by 85% between 2007 by 2010). Clariant is one of the and 2012. The excess amount of Swiss companies that through its CO2 is sold to the foundation. Ems- European based facilities is already Chemie is a contractual partner of subject to the European Emissions the Tegra wood biomass power Trading Scheme EU ETS and has station located directly on its therefore been able to gather company site at Domat/Ems- valuable experience in this domain. Chemie. Tegra feeds approximately 110,000 MWh of zero carbon Although not public, Ems-Chemie electricity into the electric grid every allowed us to quote from its CDP year. The biomass power station questionnaire to highlight its best also renders Ems-Chemie practices. Ems-Chemie discloses independent from fossil fuels to a product-specific energy intensity large extent: more than 85% of its figures (MWh per tonne of product) thermal energy is produced in this for every year since 2003. way. Some of Ems-Chemie’s The company's emission figures are products contribute indirectly to the independently verified; however, reduction of GHG emissions, such they are restricted to its parent as its corrosion-resistant plastic company in Domat/Ems-Chemie, components that are used in covering approximately half of its lightweight automotive construction global workforce. Ems-Chemie has or its highly resilient epoxy resins committed to a voluntary target that are used in the manufacture of agreement with the Swiss Federal rotor blades for wind turbines. Office for the Environment to reduce their CO2 emissions.

Telecommunication Services

Responded and public Responded and Not responded not public

Swisscom (55)

Swisscom is participating in a an innovative eco-efficiency voluntary emission reduction measure defined as “added value”/ scheme with the Swiss Energy “damage value” in francs / tonnes Agency for the Economy (EnAW). CO2 the reciprocal value of which Emissions from Scope 1 and 2 could be interpreted as tonnes of are aggregated in one overall CO2 per CHF of added value. figure for direct GHG emissions. No Scope 3 emissions are factored into this data. An interesting aspect is the avoidance of GHG emissions with third parties through the use of various tele-services (video conferencing etc.) provided by Swisscom. Based on some studies, there is a factor between 5 and 8 of third parties’ savings over direct emissions caused by the provider of the tele-service. To monitor its progress, Swisscom has introduced

37 Information Technology

Responded and public Responded and Not responded not public

Austriamicrosystems (61) Logitech International SA Kudelski SA Micronas Temenos Semiconductor (39)

Austriamicrosystems has a Micronas' environmental and GHG comprehensive climate change data has been externally strategy in place and business verified/assured in whole or in part opportunities are properly identified. within the EMAS or ISO 14001 The GHG emissions are evaluated framework. Energy efficiency of its according to ISO 14064 products is one of the company's requirements and also include main focus, e.g. their intelligent Scope 3 emissions such as electronic systems in their employee business travel, employee automotive segment help reduce commuting to and from work as well fuel and consequently CO2 as transportation of products and emissions consumption of cars. semi-finished goods. The company Micronas also signed a also provides detailed data on Memorandum of Agreement the quantity and cost of energy between member companies of the and fuels consumed. They have an European Electronic Component ambitious 10 percent reduction Manufacturers Association – target for their annual electricity European Semiconductor Industry consumption (240 MWh per year) Association (EECA – ESIA), the goal and they monitor their progress by of which is to reduce the annual establishing a GHG-Balance at least absolute PFC emission of the every 2 years. Overall GHG participating companies collectively emissions are forecast to decrease by at least ten percent below the by ~12% in 2009 and to remain 1995 baseline. stable thereafter despite an increase of business.

38 Swiss CDLI scoring from a “life cycle” 7 perspective

The Carbon Disclosure Leaders (and even the underlying individual Index is meant to give a pragmatic answers) to the CDP questionnaire? and meaningful indication of a company’s overall preparedness As a result of our practical regarding its own GHG emissions as experience in sustainable research well as its strategic grip of climate and the management of sustainable change issues with regard to its own investment portfolios, we believe business franchise. As stated that applying a Life Cycle Analysis above, there are four distinct (LCA) perspective could help us to sections of the questionnaire. If we do just this. count section 2a. (Emission A short introduction to LCA Accounting) and section 2b. (Verification & Trading) separately, In applied environmental sciences, which makes sense, given the Life Cycle Assessment (LCA) has nature and the number of questions become the gold standard over the asked, we can even discern five last decades for environmental sections. Although there is a priori impact assessment of products and no implicit weighting of the CDP services. The idea is to assess the sections, there is an implicit one. environmental impact from “cradle- This can be inferred from the to-grave”, taking into account all number of questions asked per direct and indirect environmental section and the number of effects that a certain production attainable points per section which process or product causes along its is – due to the “conditionality” of the entire lifespan. questionnaire structure – also Emissions originating at a supplier dependent to a certain degree or a sub-contractor but triggered by on a company’s own choice a company purchasing raw material whether to go for an answer and other inputs to production will or declare it not applicable. be imputed on the sourcing We find that that the five sections of company’s environmental balance the CDP are roughly equally sheet, as are emissions generated weighted, contributing during the use of the product approximately twenty percent to the through the purchaser of the total CDLI score, with some slightly company’s product. For a car more important sections (Emission manufacturer, for instance, this Accounting) and some slightly less would translate into accounting for important ones (Verification & all the emissions generated from Trading). The outlier is section four: the extracting of iron ore, through Climate governance in any case will the processing and manufacturing contribute less than ten percent to a of raw materials into car company’s total CDLI score. components, the assembly of the car as well as, most importantly, Given this implicit weighting of the the emissions generated when different CDP sections, it is certainly the car is driven around by interesting to analyse how a different the purchaser (use phase), which weighting scheme would affect the usually accounts for almost eighty outcome of the result. Ideally, such a percent of overall emissions across weighting scheme should somehow the entire life cycle. reflect the “true relevance” of the results with regard to the particular Companies’ direct emissions are challenges of their respective sector. therefore often only a fraction, and But how to get to such an sometimes an almost negligible appropriate relevance-adjusted fraction, of their overall carbon weighting for the different sections footprint. If we really are to take a

39 Carbon Disclosure Leader Index CDLI

Breakdown of average carbon intensity per sector

Average carbon intensity: supply & sourcing Average carbon intensity: direct (inhouse) 1'400 Average carbon intensity: use (products & services) 1'200

1'000

800

600

400

200

0 s s s s s trial s taple Utilitie S Material cretionary Financial Indu s s Health Care umer s ervice Con umer Di Telecommunication S s Information Technology Con

Figure 6

holistic approach to climate change, (envIMPACT®), which we have we should put particular emphasis co-developed with our SRI provider on these often neglected areas of Centre Info/INrate in Fribourg, and GHG accounting. Indeed, it would which is based on Input-Output strike us as highly unfair to analysis and Life Cycle Assessment. discriminate against a vertically The database allows us to calculate integrated company that, say, still the absolute and the relative manufactures its own carbon- importance of all the direct and intensive inputs to production, indirect emissions generated along whereas another company –that companies’ entire value chain depends on the very same inputs– (supply, in-house and product- has chosen to outsource the related emissions). We used production of those same inputs information for over one hundred probably to a supplier in a third- Swiss companies contained in world country. Therefore, we believe Centre Info/INrate’s database in we have to look at all direct and order to get to results that would be indirect emissions generated along a as representative as possible company’s value chain, be it for Swiss conditions. only to assess all companies on an equal footing. Figure 6 above shows the results of this analysis averaged and summed To be precise, as mentioned above, up by GICS sector. As can be the CDLI is foremost in assessing clearly seen, it is rarely the direct in- the level of disclosure and not a house emissions that are the most company’s actual performance in relevant along the value chain. The the field directly. Therefore, if we bulk of overall life cycle emissions want to infer something regarding for Consumer Staples, for instance, actual performance from the CDLI is almost entirely dominated by scoring, we have to make the emissions in the supply chain. This hypothesis that companies with becomes intuitive if we recall that a good level of disclosure and this is the sector where we find the transparency are also more likely to Swiss food companies that take in act successfully with regard to their large amounts of agricultural actual emission performance. A products along with all the strong hypothesis for sure, but associated carbon emissions. As one that is probably acceptable. explained above, the financial sector is heavily dominated by the “use In this line of thought, we have phase” of its products and services, turned to a proprietary database i.e. when the credit granted and the

40 Carbon Disclosure Project 2009

invested capital provided by financial reflects the adequacy of a upwards and 3 downwards). Only institutes is put to (carbon-intensive) company’s responses to the one company makes it from the work. Strongly but still somewhat particular challenges of its sector. As CDLI bottom to the LCA top tier less dominated by the use phase of a consequence, for the food sector (Clariant), whereas two companies its products is the Industrials sector. for instance (Consumer Staples) (Vontobel, UBS) take the opposite This result, too, is intuitive if we think answers pertaining to the direction and migrate from the about the core activity of this sector. agricultural supply chain were top CDLI tier to the bottom LCA weighted much higher than answers tier group. They manufacture long-lived capital related to their in-house production, goods, often industrial machinery whereas for financial companies, Three of the four newcomers to the and equipment that is run for years answers on their investment top ten are Materials companies, by their customers, consuming products and services were which is rather intuitive given that energy along the way and emitting weighted much higher than answers companies in this sector usually GHG as long as the goods are relating to their in-house have a higher exposure to energy functional. environmental efforts and and GHG issues and can therefore their supply chain. be supposed to be particularly A special “Swiss case” is the Utilities thorough in their level of GHG sector. Usually utilities generate the In this way, we can draft a new reporting. bulk of their emissions during the ranking based on these LCA- generation of energy (the “direct” weighted scores that expresses phase in LCA terminology). whether a company is actually However, given that the Swiss scoring well where it is most utilities companies produce their important from an LCA electricity mainly from low or zero point of view. carbon sources (hydro and nuclear), the electricity contracted from utility The LCA-weighted score like the companies abroad (the carbon original CDLI score is just another intensity of which is much higher way of looking at a company’s level because they operate mainly coal of disclosure and environmental and gas-fuelled power stations) reporting. Since it is based on the dominates the LCA perspective. same information and the answers provided to the CDP questionnaire Once we know where the most that are also at the basis of the CDLI relevant environmental impact is ranking, it cannot possibly gauge taking place, we can examine companies’ actual “performance” (in whether companies are actually a measurable quantitative way). focusing their climate-change- Nevertheless, it can be interpreted related reporting where it is as a good indication of whether most necessary. companies are actually focusing In order to do this we had to map all their resources in terms of the CDP questions and link them to environmental reporting and supply-related emissions, to in- disclosure where it actually matters house emissions and to indirect the most. emissions generated during the use The re-stated LCA-weighted tier phase of the products and services. positions are shown in Table 4 We discarded all questions that below. The tier positions are relative could either not be mapped at all to to the entire universe and not just a specific life-cycle stage, or where with regard to their sector peers. the mapping could not be done unequivocally. This left us with a The top tier corresponds to the top reduced set of particularly relevant ten companies, the middle tier to questions that could be clearly the next ten companies and the mapped into the different life-cycle bottom tier to the last ten stages as explained above. companies of each ranking type. We can make some interesting We have in this way re-calculated or observations. restated the CDLI score of the CDP 2009 companies for each life-cycle The alternative look through the stage (supply, direct, use) and have “LCA lens” changes the tier multiplied this score with a weight positioning of some companies. corresponding to the relative Although most companies (19) stay importance of the respective life- in the same tier group, 6 move cycle stage. We thus arrived at a upwards and 5 downwards. Most of new LCA-weighted score that the movers switch only one grade (5

41 Company Name MSCI Sector LCA tier CDLI tier Basler Kantonalbank Financials top middle BEKB/BCBE Financials top top Clariant Materials top bottom Credit Suisse Financials top top Geberit Industrials top top Georg Fischer Industrials top top Givaudan Materials top top Holcim Materials top middle Novartis Health Care top top Syngenta International AG Materials top middle ABB Industrials middle middle Austriamicrosystems Information Technology middle middle Bank Sarasin Financials middle top Barry Callebaut Consumer Staples middle bottom Nestlé Consumer Staples middle middle Partners Group Financials middle middle Roche Holding AG Health Care middle bottom Straumann Holding AG Health Care middle middle Swiss Re Financials middle top Swisscom Telecommunication Services middle middle Adecco Industrials bottom bottom Bâloise Holding Financials bottom bottom Huber + Suhner AG Industrials bottom bottom Lonza Health Care bottom bottom Micronas Information Technology bottom bottom Panalpina Industrials bottom bottom SGS SA Industrials bottom middle Sika AG Materials bottom bottom UBS Financials bottom top Vontobel Holding AG Financials bottom top

Table 4 LCA-weighted tier positioning versus original CDLI tier positions of Swiss CDP 2009 respondents. Within LCA tiers, companies are listed in alphabetical order.

All four companies leaving the top without having reached a good ten are Financials. This is quite general level of understanding and interesting and hints at a certain awareness in climate change issues sub-optimal allocation of their (usually reflected already in carbon disclosure efforts. Financials a good CDLI score). are usually good at conceptualiaing Interpreting and restating in the new trends and at spotting new results of the CDLI from an LCA investment opportunities. Not all, perspective thus allows us to gain however, can actually deliver on valuable insights in the relevance their promises when the area is and adequateness of companies’ scrutinised through the LCA lens responses - and it might also in more detail that is most provide us with a discreet reminder relevant from a climate change that not all that that glisters is perspective (i.e. related to their necessarily gold. investment products). Tier rankings at the bottom of the table remain rather similar. This limited vertical mobility of the bottom tier is no surprise. It is indeed difficult to imagine how a company could effectively allocate its efforts precisely where it matters

42 Appendix

Sections of the CDP to provide a breakdown of GHG i.e. whether they have set questionnaire and their emissions by country and, themselves clear goals, whether relevance for optionally, business division and they monitor their performance the CDLI scoring facility. Companies that do not against these goals and whether provide ‘hard facts’ cannot possibly they actually achieve them. It is certainly helpful to understand score highly in this area, so the Furthermore, companies are asked what the CDP questionnaire is all result in this section can be to quantify the potential financial about and how the questionnaire is interpreted as a robust indicator for cost of climate change to their structured in different sections the actual quantitative control of products and services and how this reflecting different aspects and emissions-related data and is likely to impact on their financial facets of Climate Change. Shown information. planning. Companies without a below therefore are a short systematic and structured approach 2b. Verification & Trading summary and the authors’ to the question cannot possibly interpretation of the different The second part of the second achieve a very high score in this sections of the CDP questionnaire section relates to aspects such as area, so the result of this section is and their relevance for quality of the reported emissions again a useful indicator of a the CDLI scoring. data, third-party verification of the company’s quantitative control of its reported figures and companies’ GHG-related data, measures and 1. Risks & Opportunities potential participation in existing actions. The first section of the CDP emissions trading schemes such as questionnaire refers to the the EU ETS. In this section, 4. Governance company’s risk perception regarding companies are asked to provide In this final section of the CDP the problem of climate change. answers to many detailed questions questionnaire, companies are asked Does the company anticipate any pertaining to the structure of their to provide information on how they regulatory, physical or other risks energy consumption, the sources of have defined responsibility and for its business and/or do they energy used and other specific accountability for climate change rather perceive climate change as information (fuel types, cost, issues within their organisation. The an opportunity for their products uncertainties of measurement etc.). questions relate above all to the and services? This part also contains questions hierarchical level within the pertaining to project-based carbon organisation bearing responsibility The CDLI methodology rates the reduction activities, i.e. purchasing for climate change, incentives for quality and the depth of their carbon credits to set off one’s own the achievement of climate-change- answers, but there is no a priori emissions. The answers in this related goals as well as aspects of ‘ideological’ bias towards a higher sections are highly conditional, i.e. reporting, communication and risk perception, i.e. a company that companies that are, for instance, possibly political involvement with has thoroughly analysed the issue not subject to EU-wide emissions regard to climate change. This but concluded and explained why it trading schemes are not penalised section of the CDP questionnaire is believes it is less exposed to climate for not being able to answer these conceptually close to the first change will not be penalised. This specific questions. The high section (Risks & Opportunities) in first section can therefore be conditionality and the relatively large that it assesses in a qualitative way considered to set the scene for the number of optional questions for whether companies are rest of the questionnaire, in that it which no score is awarded make “organisationally fit” and aware of establishes the general awareness the interpretation of the final result climate change by assuming and of the climate change issue within for this second part of section two assigning responsibility and the responding entity. somewhat trickier. “institutionalising” climate change 2a. Emissions Accounting within their firm. 3. Performance There are two parts to this section. Section 3 of the CDP questionnaire The first part is less conceptual than is concerned with concrete planning the previous section, more material and measures regarding the and quantitative. Companies are management of GHG emissions. asked to state their direct and Companies are asked to provide indirect emissions, the underlying information on whether and how GHG accounting methodology, the they tackle their GHG emissions, consolidation boundaries and also

43 Carbon Disclosure Project 2008

Acknowledgements

Pictet Asset Management and the Ethos Foundation would like to thank the following for their contribution in the production of this report.

CDP Ethos Foundation Pictet Asset Management S.A. Paul Dickinson Jean Laville Christoph Butz Sylvie Giscaro Vinzenz Mathys Nathalie Cerutti Paul Simpson Simon Perrin Olivier Ginguené Daniel Turner Isabelle Goudal Laurent Nguyen Centre Info/INrate Pictet & Cie Yvan Maillard-Ardenti Alexandre Messerli Havard Davies Philippe Spicher Team Production Multimedia Valérie Roduit

The Ethos Foundation would like to thank the following Swiss pension funds, members of the Ethos Engagement Pool, for the support they have given to the Swiss CDP.

French-speaking Switzerland • Pensionskasse Basel-Stadt • Caisse d'assurance du personnel de la Ville de Genève et • Pensionskasse Bühler AG, Uzwil des Services industriels de Genève (CAP) • Pensionskasse Caritas, Luzern • Caisse de pensions de l'Industrie de Pierres Scientifiques Hrand Djévahirdjian SA, Monthey • Pensionskasse Evangelisch-reformierten Gesamtkirchgemeinde Bern • Caisse de prévoyance du Diocèse de Sion (SPES) • Pensionskasse der römisch-katholischen Landeskirche • Caisse de prévoyance du personnel des établissements des Kantons Luzern publics médicaux du Canton de Genève (CEH) • Pensionskasse der Stadt Luzern • Caisse de prévoyance du personnel enseignant de l'instruction publique et des fonctionnaires de • Pensionskasse der Stadt Winterthur l'administration du Canton de Genève (CIA) • Pensionskasse Post, Bern • Fondation Interprofessionnelle Sanitaire de Prévoyance • Pensionskasse Stadt Zürich (FISP), Prilly • Pensionskasse Unia, Bern • Les Retraites Populaires, Lausanne • Pensionskassengenossenschaft des Schweiz. • Prévoyance Santé Valais (PRESV), Sierre Gewerkschaftsbundes, Bern • Skycare, Fondation de Prévoyance de Skyguide, Meyrin • Personalvorsorgekasse der Stadt Bern • Personalvorsorgestiftung der Schweizerischen German-speaking Switzerland Vereinigung Pro Infirmis, Zürich • Aargauische Pensionskasse, Aarau • Previs - Personalvorsorgestiftung Service Public, Wabern • Jet Aviation Vorsorgestiftung, Zürich-Flughafen • Prosperita Stiftung für die berufliche Vorsorge, Basel • Luzerner Pensionskasse • SPIDA Personalvorsorgestiftung 2. Säule, Zürich • Nest Sammelstiftung, Zürich • Stiftung Abendrot, Basel

44 CDP anglais Couverture montage planche_Mise en page 1 18.11.09 11:19 Page2

Carbon Disclosure Project 2009

In addition to the support provided by the signatories, Carbon Disclosure Project 2009 CDP Members 2009 Generation Investment Management UK it would not have been possible to produce the seventh CDP report Grupo Santander Brasil Brazil Given the increasing importance of ING Netherlands without generous donations from the following: the climate change issue, Pictet MEMBER 2009 KLP Insurance Norway Asset Management and Ethos Legg Mason, Inc. US Foundation have decided to conduct Libra Fund, L.P. US the CDP survey for the 100 biggest capitalisations of the Swiss stock ABRAPP - Associação Brasileira das Entidades London Pensions Fund Authority UK market for the third time since 2007. Fechadas de Previdência Complementar Brazil Mistra, Foundation for Strategic Environmental Aegon N.V. Netherlands Research Sweden Mitsubishi UFJ Financial Group (MUFG) Japan This report and all of the public AIG Investments US responses from corporations are APG Investments Netherlands Morgan Stanley Investment Management US available to download free of ASN Bank Netherlands National Australia Bank Limited Australia charge from www.cdproject.net. ATP Group Denmark Neuberger Berman US Aviva Investors UK Newton Investment Management Limited UK AXA Group France Northwest and Ethical Investments LP Canada Bank of America Corporation US Pictet Asset Management SA Switzerland BBVA Spain Rabobank Netherlands BlackRock US Robeco Netherlands BP Investment Russell Investments UK Management Limited UK Schroders UK Caisse de dépôt et placement du Québec Canada Second Swedish National Pension Fund (AP2) California Public Employees’ Retirement System Sweden US Sompo Japan Insurance Inc. Japan Image: Naoya Hatakeyama California State Teachers Retirement System US Standard Chartered PLC UK Calvert Group US Sun Life Financial Inc. Canada Lime Works #39616 Catholic Super Australia Swiss Reinsurance Company Switzerland C-print 28.5 x 57.5 cm CCLA Investment Management Ltd UK The RBS Group UK 1994 Japan CIBC Canada The Wellcome Trust UK Daiwa Asset Zurich Cantonal Bank Switzerland The image has been reproduced with the kind permission Management Co. Ltd Japan of Prix Pictet Ltd. Essex Investment Management, LLC US Ethos Foundation Switzerland Naoya Hatakeyama was one of the 12 finalists in the Prix Folksam Sweden Pictet 2009. The prize was presented by Kofi Annan, honorary Fortis Investments Belgium president for the ceremony, at the Passage de Retz in Paris on 22 October 2009. Please visit the www.prixpictet.com website for further information.

Design Implementation and Production: Pictet & Cie

This report is printed on FSC-certified paper (Magno Satin 300 g/m2 for the cover and Magno Satin 115 g/m2 for the inside pages), which promotes the sustainable and responsible use of forests. CDP anglais Couverture montage planche_Mise en page 1 18.11.09 11:18 Page1

Contacts for the CDP

Paul Dickinson Zoe Riddell Tom Carnac Tim Keenan Chief Executive Officer Head of Investor CDP Head of CDP Cities and Vice President [email protected] [email protected] Public Procurement [email protected] [email protected] Paul Simpson Kate Levick Carbon Disclosure Project Chief Operating Officer Head of Government Pedro Faria 40 Bowling Green Lane [email protected] Partnerships Technical Director London, EC1 R 0NE [email protected] [email protected] United Kingdom Sylvie Giscaro Tel: +44 (0) 20 7970 5660/5667 Director Europe Frances Way Sue Howells Fax: +44 (0) 20 7691 7316 Carbon Disclosure Project [email protected] Head of CDP Supply Chain Head of Global Operations www.cdproject.net [email protected] [email protected] [email protected] Daniel Turner Head of Disclosure Joanna Lee Roy Wilson Switzerland Report 2009 [email protected] Director, Communications & Financial Director Corporate Partnerships [email protected] [email protected] Survey of Switzerland’s 100 largest companies

CDP Advisory Board

Robert Napier (président) Alan Brown Jeremy Smith The Met Office Schroders Berkeley Energy

Doug Bauer James Cameron Rockefeller Philanthropy Climate Change Capital On behalf of 475 investors with Advisors assets under management of USD 55 trillion

Swiss CDP Partners

Pictet Asset Management Fondation Ethos Route des Acacias 60 Place Cornavin 2 1211 Genève 73 P.O. Box +41 (0)58 323 18 53 1211 Genève 1 +41 (0)22 716 15 55

Christoph Butz Jean Laville Sustainability Expert Deputy Managing Director [email protected] [email protected]

Consultant tasked with sorting and analysing responses and calculating Swiss CDLI scores

Centre Info/Inrate Rue de Romont 2 1700 Fribourg +41 (0)26 322 06 14

Philippe Spicher Managing Director [email protected] © Naoya Hatakeyama - Prix Pictet 2009

Carbon Disclosure Project (CDP) www.cdproject.net +44 (0) 207 970 5660 [email protected] The contents of this report may be used by anyone providing acknowledgement is given to Carbon Disclosure Project. The information herein has been obtained from sources, which the authors and publishers believe to be reliable, but the authors and publishers do not guarantee its accuracy or completeness. The authors and publishers make no representation or warranty, express or implied, concerning the fairness, accuracy, or completeness of the information and opinions contained herein. Furthermore, all opinions expressed herein are based on the authors and publishers judgment at the time of this report and are subject to change without notice due to economic, political, industry and firm-specific factors. The authors and publishers and their affiliated companies, or their respective shareholders, directors, officers and/or employees, may have a position in the securities discussed herein. The securities mentioned in this document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates. © 2008 Carbon Disclosure Project