01

Are UK prepared for the international impacts of climate change? FTSE 350 Climate Change Report 2013

9 October 2013

Report writer and global advisor

02 03 The evolution of CDP Contents

With great pleasure, CDP announced an exciting change this year. CEO Foreword 4 Executive Summary 6 Over ten years ago CDP pioneered the only global disclosure system for companies to report their environmental impacts and strategies to investors. In that time, 2013 Climate Performance and Disclosure Leaders 8 and with your support, CDP has accelerated climate change and natural resource 2013 Leadership Criteria 10 issues to the boardroom and has moved beyond the corporate world to engage Investor insight - the “Aiming for A” coalition 11 with cities and governments. FTSE 350 companies have a global footprint 12

The CDP platform has evolved significantly, supporting multinational purchasers Companies’ focus on climate change risks and opportunities needs broadening 12 to build more sustainable supply chains. It enables cities around the world to exchange information, take best practice action and build climate resilience. We Scientific Insight - Professor Sir Brian Hoskins 17 assess the climate performance of companies and drive improvements through Companies’ understanding of their value chain is limited 20 shareholder engagement. Corporate insight - Benckiser 22 Our offering to the global marketplace has expanded to cover a wider spectrum of FTSE 100 companies have a more sophisticated response the earth’s natural capital, specifically water and forests, alongside carbon, energy to climate change than FTSE 250 companies 23 and climate. Preparing for climate change: Comparing FTSE 100 and FTSE 250 companies 26

For these reasons, we have outgrown our former name of the Carbon Disclosure PwC commentary – Celine Herweijer 28 Project and rebranded to CDP. Many of you already know and refer to us in this way. Appendix I – Non-responding companies 30 Our rebrand denotes our progress as we continue to catalyse action and respond to Appendix II – Responding companies, scores and emissions data 31 business, finance, investment and environmental needs globally. Appendix III – Responding FTSE SmallCap companies 34

We now have a bolder, more dynamic look and logo that reflects the scale of the Appendix IV – Investor members and signatories 34 work we must undertake in the coming years to move the markets ahead of where they would otherwise be on these issues and realise truly sustainable economies.

Over 5,000 companies from all over the world have been asked to report on climate change through CDP this year;

81% of the world’s 500 largest public companies listed on the Global 500 engage with CDP to enable effective measurement of their carbon footprint and climate change action;

CDP is a not-for-profit organisation. If you would like to support our vital work through donations or sponsorship opportunities, please email [email protected] or telephone +44 (0) 7703 184 312.

Important Notice The contents of this report may be used by anyone providing acknowledgement is given to Carbon Disclosure Project (CDP). This does not represent a license to repackage or resell any of the data reported to CDP or the contributing authors and presented in this report. If you intend to repackage or resell any of the contents of this report, you need to obtain express permission from CDP before doing so. Pwc and CDP have prepared the data and analysis in this report based on responses to the CDP 2013 Climate Change information request. No representation or warranty (express or implied) is given by Pwc, CDP or any of its contributors as to the accuracy or completeness of the information and opinions contained in this report. You should not act upon the information contained in this publication without obtaining specific professional advice. To the extent permitted by law, PwC, CDP and its contributors do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it. All information and views expressed herein by CDP and any of its contributors are based on their judgment at the time of this report and are subject to change without notice due to economic, political, industry and firm-specific factors. Guest commentaries where included in this report reflect the views of their respective authors; their inclusion is not an endorsement of them. CDP and its contributors, their affiliated member firms or companies, or their respective shareholders, members, partners, principals, directors, officers and/or employees, may have a position in the securities of the companies discussed herein. The securities of the companies 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. Carbon Disclosure Project’ and ‘CDP’ refer to Carbon Disclosure Project, a limited by guarantee, registered as a United Kingdom charity number 1122330. © 2013 Carbon Disclosure Project. All rights reserved. 04 05 CEO Foreword

As countries around the world seek economic growth, strong employment and safe environments, corporations have a unique responsibility to deliver that growth in a way that uses natural resources wisely. The opportunity is enormous and it is the only growth worth having.

This year we passed a significant landmark of investments than on the average business investment. 400ppm of carbon dioxide in the atmosphere and are Meanwhile, governments are taking new action: the rapidly heading towards 450ppm, accepted by many US Administration has launched its Climate Action governments as the upper limit to avoid dangerous Plan, with a new emphasis on reducing emissions from climate change. The Intergovernmental Panel on utilities; China is developing air pollution measures and Climate Change (IPCC) 5th assessment report (AR5) moving toward pilot cap and trade schemes; the UK strengthens the scientific case for action. Government has mandated greenhouse gas emissions reporting for all large listed companies; and the EU is Fears are increasing over future climate change looking at improving environmental and other reporting. impacts as we see more extreme weather events, Hurricane Sandy the most noted with damages The pressure on corporations, investors and totalling some $42 billion1. The unprecedented melting governments to act continues. At CDP, we have of the Arctic ice is a clear climate alarm bell, while the broadened our work to add forests to climate and first 10 years of this century have been the world’s water so our programs now extend to an estimated hottest since records began, according to the World 79% of natural capital, by value3. To reflect this, we Meteorological Organization. rebranded at the start of the year from the Carbon Disclosure Project to CDP and are increasing our focus The result is a seismic shift in corporate awareness of on projects to accelerate action. One explores how the need to assess physical risk from climate change corporations influence public policy on climate change and to build resilience. both positively and negatively. Some corporations are still acting – both directly and through trade For investors, the risk of stranded assets has been associations – to prevent the inevitable: nations need brought to the fore by the work of Carbon Tracker. sensible climate regulation that protects the public 1 New York State They calculate around 80% of , oil and gas interest over the long term. Hurricane Sandy reserves are unburnable, if governments are to Damage Assessment; Governor Andrew meet global commitments to keep the temperature As countries around the world seek economic growth, Cuomo; November rise below 2°C. This has serious implications for strong employment and safe environments, corporations 12, 2012 http://www. governor.ny.gov/ institutional investors’ portfolios and valuations of have a unique responsibility to deliver that growth in a press/11262012- companies with fossil fuel reserves. way that uses natural resources wisely. The opportunity damageassessment. 2 https://www.cdproject. is enormous and it is the only growth worth having. net/CDPResults/3- The economic case for action is strengthening. percent-solution-report. 2 pdf. This year, we published the 3% Solution with 3 Based on findings from WWF showing that the US corporate sector could the report Natural Capital at Risk: The Top 100 reduce emissions by 3% each year between 2010 Externalities of Business, and 2020 and deliver $780 billion in savings above published by TEEB for Business Coalition in costs as a result. 79% of US companies responding Paul Simpson April 2013. to CDP report higher ROI on emission reductions CEO CDP 06 07 Executive Summary

Companies face increasing pressure to take responsibility for their activities and impacts across the whole of their Table 1: Top companies by disclosure and performance value chain, not just for the operations they own or control. They are now expected to make sure that the input to their products and services are sourced from responsible, reliable suppliers and to help their customers reduce the Performance environmental impacts of using their products and services. Company Name Sector Disclosure Score Score In 2013, CDP sent its annual request to FTSE 350 companies on behalf of 722 investors representing US$87 trillion Consumer Staples 98 A in assets, asking them to disclose what climate change means for their business. This year, 74% (260) of companies in the FTSE 3504 sample responded to the investor request from CDP5. To understand the full range of impacts Financials 98 A from climate change, more emphasis is now placed on Scope 3 reporting and supply chain management. GlaxoSmithKline Healthcare 98 A

This report addresses how prepared UK companies are for the international impacts of climate change and looks HSBC Financials 97 A at how FTSE 350 companies responding to CDP in 2013 address threats and opportunities from climate change Anglo American Materials 96 A abroad. It builds on the conclusions from the report International Threats and Opportunities of Climate Change for the UK, prepared by PwC for the Department for Environment, Food and Rural Affairs (Defra) earlier this year. British Sky Broadcasting Consumer Discretionary 95 A BT Services 93 A The report for Defra concludes that climate change impacts overseas are expected to affect the UK in diverse ways and warns that these indirect impacts could be even more significant than direct impacts within the UK. It Financials 92 A is therefore important to see whether FTSE 350 companies – the majority of which have operations abroad – are Morgan Advanced Materials Industrials 92 A preparing for the international impacts of climate change when assessing risks and opportunities, and whether these assessments feed into their strategies. Reed Elsevier Consumer Discretionary 91 A BG Group Energy 89 A The primary findings of this year’s FTSE 350 report show that the majority of companies have operations and Scope 1 and 2 emissions which originated abroad. However, companies’ current focus on risks and opportunities needs broadening. While the majority of FTSE 350 companies identify risks (86%) and opportunities (82%) from climate change, the focus remains relatively narrow, looking primarily at direct, shorter-term risks. Only 32% of companies report risks (14% opportunities) which have timeframes of ten years or more and 13% of companies report that they have not identified any climate change related risks at all. Figure 1: Year on year disclosure levels for FTSE 350 companies

The findings also show that companies have a limited understanding of their value chain. 48% of companies do 2009  2010  2011  2012  2013 not engage with their supply chain on emissions or climate change and the majority of emissions from companies’ value chains are not currently being measured. Some companies want to understand emissions from their core operations before covering their whole value chain emissions. 236 243 A comparison between FTSE 100 and FTSE 250 companies shows that these samples are very different in both Respondents 236 the quality of their response and the amount of emissions they produce. FTSE 100 companies show a much more 240 sophisticated response to the threats and opportunities of climate change than FTSE 250 companies. In addition, 260 FTSE 250 companies report emitting just one tenth the emissions of the FTSE 100 companies (FTSE 100: 541 194 206 million tonnes CO2e, FTSE 250: 59 million tonnes CO2e). Disclose GHG 199 emmisions 205 In order for companies to be fully prepared for the international impacts of climate change, this report suggests a 219 five point plan that UK companies can implement: engage the executive team; engage the value chain; identify and assess risks; evaluate options for managing risks and capitalising on opportunities; implement decisions, monitor 158 174 effectiveness and plan for the future. Publicly available 170 183 194

0 50 100 150 200 250 300 Number of companies

4 The FTSE 350 is based on the market price of 350 companies listed on the , including companies on the FTSE 100 index and FTSE 250 index. 5 The FTSE 350 report is based on the analysis of the 234 responses received by 1 July 2013. 08 09 2013 Climate Performance 2013 Climate Disclosure Leadership Index (CPLI) Leadership Index (CDLI)

Consecutive Consecutive Disclosure Performance Disclosure Performance Sector Company years in the Sector Company years in the score band score band CPLI CDLI Consumer Discretionary British Sky Broadcasting 95 A 1 Consumer Discretionary British Sky Broadcasting 95 A 4 Reed Elsevier 91 A 1 WPP 95 B 1 United Business Media 80 A 1 TUI Travel 92 B 6 Consumer Staples Diageo 98 A 2 Reed Elsevier 91 A 5 82 A 2 Consumer Staples Reckitt Benckiser 99 B 5 Energy BG Group 89 A 1 Diageo 98 A 3 Financials British Land 98 A 1 96 A- 5 HSBC 97 A 1 J Sainsbury 95 B 1 Barclays 92 A 1 94 B 3 Healthcare GlaxoSmithKline 98 A 1 Tate & Lyle 94 A- 2 Industrials Morgan Advanced Materials 92 A 2 Energy 90 B 5 Materials Anglo American 96 A 2 BG Group 89 A 3 Telecommunication Services BT 93 A 1 Financials British Land 98 A 3 HSBC 97 A 5 Barclays 92 A 5 Aberdeen Asset Management 91 B 1 91 B 5 91 B 2 Lloyds Banking 90 B 5 Standard Life 90 B 1 89 C 1 Land Securities 88 B 2 Royal 88 B 5 Shaftesbury 88 B 1 Healthcare GlaxoSmithKline 98 A 5 Smith & Nephew 92 B 2 Industrials Morgan Advanced Materials 92 A 2 98/Athe best score in 2013, achieved by British Land, Diageo 92 C 4 and GlaxoSmithKline Morgan Sindall* 91 B 2 International Airlines Group 88 B 1 88 B 1 Information Technology Pace 91 B 1 Materials Anglo American 96 A 4 Croda 93 B 1 Antofagasta 92 C 1 Lonmin 88 B 1 88 B 1 Telecommunication Services BT 93 A 4 Utilities National Grid 98 B 1 97 B 5 Pennon 96 A- 1 SSE 90 B 5

* This FTSE SmallCap company is not in the FTSE 350 but achieved the required score to join the CDLI 10 11 2013 Leadership Criteria Investor insight - the “Aiming for A” coalition

Each year, company responses are analysed and scored against two parallel scoring schemes: disclosure and Last year CCLA built an “Aiming for A” coalition. This performance. includes fellow mutuals in the UK fund management industry and influential UK asset owners, including The disclosure score assesses the completeness and quality of a company’s response. Its purpose is to provide the £115bn Local Authority Pension Fund Forum and a summary of the extent to which companies have answered CDP’s questions in a structured format. A high the largest members of the £12bn Church Investors disclosure score signals that a company has provided comprehensive information about the measurement and Group. In a nutshell, we’re asking ten major UK- management of its carbon footprint, its climate change strategy, risk management processes and outcomes. listed utilities and extractives companies to aim for continuous inclusion in CDP’s Climate Performance The performance score assesses the level of action, as reported by the company, on climate change mitigation, Leadership Index (CPLI) by achieving and retaining an adaptation and transparency. Its intent is to highlight positive climate action as demonstrated by a company’s “A” Performance Band. Our capital stewardship work CDP response. A high performance score signals that a company is measuring, verifying and managing its will involve filing supportive shareholder resolutions at carbon footprint, for example by setting and meeting carbon reduction targets and implementing programs to some of these companies’ AGMs in due course. We reduce emissions in both its direct operations and supply chain. have also been encouraging CDP to develop sectoral methodologies, so that as the CPLI evolves it can more The highest scoring companies for disclosure and performance enter the Climate Disclosure Leadership Index closely reflect the strategic challenges that are unique (CDLI) and the Climate Performance Leadership Index (CPLI) respectively. Public scores are available in CDP to high-impact sectors. reports, through Bloomberg Terminals, Google Finance and Deutsche Boerse’s website. There are several reasons why we’ve come together to support investee companies in their efforts to improve their response to the low-carbon transition in this way. These range from systemic risk management and our What are the CDLI and CPLI criteria? How are the CDLI and CPLI collective fiduciary duty to engage in transformational used by investors? change, through to amplifying long-term investor voices To enter the CDLI, a company must: and involving ultimate beneficiaries. Good disclosure and performance scores are • Make its response public and submit via used by investors as a proxy of good climate CDP’s Online Response System Firstly, thanks to Mercer and Carbon Tracker’s work, change management or climate change horizon-scanning investors are aware of the risks of • Achieve a score within the top 10% performance of companies. public policy uncertainty and stranded assets to their of the total FTSE 350 population portfolios. Major technology transitions are rarely 6 (41 companies in 2013) Investors identify and then engage with smooth, but draconian policy that has to be introduced companies to encourage them to improve their To enter the CPLI quickly after prolonged delay increases risks to long- score. The “Aiming for A” initiative which was (Performance Band A), a company must: term investors. initiated by CCLA Investment Management is • Make its response public and submit via driven by a coalition of UK asset owners and Secondly, this is, of course, a collective action problem. CDP’s Online Response System mutual fund managers. They are asking ten How long should investors wait for someone else major UK-listed utilities and extractive companies • Attain a performance score greater to lead? Shouldn’t we find the courage to help co- to aim for inclusion in the CPLI. This may than 85 lead the economic transformation required as part involve filing supportive shareholder resolutions of our fiduciary duties? After all the UK’s Kay Review • Score maximum performance points for Annual General Meetings occurring after concluded that: “the principal role of equity markets on question 12.1a for greenhouse gas September 2013. in the allocation of capital relates to the oversight of emissions reductions due to emission capital allocation within companies rather than the reduction actions over the past year Investors are also using CDP scores for creating allocation of capital between them”. (4% or above in 2013) new financial products. For example, Nedbank in South Africa developed the Nedbank Green Index. • Disclose gross global Scope 1 and Thirdly, it is easy for long-term investors’ voices to be Disclosure scores are used for selecting stocks and Scope 2 figures drowned out by the short-term noise from the financial performance scores for assigning weight. markets. We believe that supportive shareholder • Score maximum performance points resolutions could play a high-profile positive Congratulations to Anglo American for verification of Scope 1 and Scope 2 stewardship role in the UK. They could amplify long- (A) and BG Group (A). We’d also like emissions term investors’ requests, to the companies that we For further information on the CDLI and the CPLI to thank BHP Billiton (C), BP (C), However, CDP reserves the right to exclude any expect to hold in our portfolios for many years, about and how scores are determined, please visit Centrica (B), / (C), company from the CPLI if there is anything in its the need to balance the short- and longer-term aspects www.cdp.net/guidance response or other publicly available information of shareholder value creation. National Grid (B), Rio Tinto (B), Shell that calls into question its suitability for inclusion. (B), and SSE (B) for their ongoing Fourthly, ultimate beneficiaries can find it hard to constructive engagement with us. There are 13 companies in the CPLI in 2013. influence the activities of their fund managers. “Aiming for A” will mean that they will be able to ask their pension providers, insurers, ISA and other investment managers, how they voted on these critical shareholder Note: Companies that achieve a performance score high enough to warrant 6 The 34th-41st highest inclusion in the CPLI, but do not meet all of the other CPLI requirements are resolutions. As Martin Taylor, chief executive of the scoring companies classed as Performance Band A- but are not included in the CPLI. Royal Society of Arts said in 2008 “citizen engagement scored 88 and were all included in the CDLI. is the key to accountability in the financial system”. 12 13 Main Themes of 2013 Responses

FTSE 350 companies Companies’ focus on climate change have a global footprint risks and opportunities needs broadening A recent study from PwC examining climate change Antofagasta conducted a workshop impacts around the world shows they could represent The PwC report for Defra shows how the international is committed to ensuring a bigger threat than opportunity for British business impact of climate change on UK business will depend with all its divisions to investigate the its Business Continuity Management and investment. The report, International Threats and on countries’ resilience to climate change and the extent impact of unusual weather events on Opportunities of Climate Change for the UK, prepared of their business links with the UK. Map 2 (p.18) shows local operations and what measures to is robust and rolled out across its for Defra by PwC, calls for companies to take action some of the potential global impacts due to climate implement to mitigate them. major locations around the world, to assess their level of risk and invest to develop change in 2020. The majority of these impacts will thereby delivering resilience into its new solutions, services and skills. It warns that be negative, such as increased pestilence, increased operational infrastructure. international impacts could be even more significant extreme weather events or declining water availability9. Gustavo Pössel for the UK than local impacts. The analysis shows that Environmental Micro Focus the areas which might have the highest impact on the Companies are already preparing for such changes: Manager, Antofagasta UK are trade, investment and supply chain. 86% of FTSE 350 companies report risks due to climate change and 82% report opportunities. However, FTSE 350 companies are highly multinational, companies’ focus remains relatively narrow, looking reporting operations in a total of 145 countries. Only primarily at direct, shorter-term risks. Companies are not identifying 31% of respondents operate exclusively in the UK. enough indirect risks As might be expected based on traditional trade Perhaps surprisingly, 13% of companies report that they At present, companies report more risks than partnerships, FTSE 350 companies operate mostly have not identified any climate change risks. For some, opportunities. This is partly because the types of risks in the Organisation for Economic Co-Operation and this may mean that climate change isn’t adequately (such as carbon taxes) reported by companies are seen Development (OECD) countries: 100 companies integrated into their risk management processes. as more tangible, despite uncertainty levels around their If international agreements cause rises specific impact. report operations in the United States of America in the cost of fuel and/or carbon, this and 96 in European countries, though the level of investment in was greater - at the end of 70% of companies report direct risks but only 33% could potentially result in increased 2010, UK assets in Europe totalled £4.95 trillion (51%) report indirect risks. However, almost all companies demand for more efficient and/or compared to £2.8 trillion (29%) in the U.S.A7. face indirect risks: not reporting these risks could mean lower-carbon products. companies’ strategies, operations and value chains Carbon taxes may have an adverse aren’t fully resilient to climate change risks. Indirect A majority of the emissions of companies in the FTSE Rolls-Royce 350 also originate overseas: 77% of Scope 1 and impact on the level of economic activity impacts can include the effect of extreme weather 83% of Scope 2 emissions reported by FTSE 350 in the territories where the group’s on supply chains and the price or availability of raw companies come from abroad. businesses operate. It is not possible materials and other goods, as well as having an impact to state with any reasonable degree on business in terms of investments and trade. This pattern of ownership and operations exposes of accuracy whether local, national The report prepared for Defra10 concludes that risks Companies are focusing on many large UK companies to a range of important or international regulatory bodies physical, regulatory and other climate-related risks8. considerably outweigh opportunities for the UK, both short term risks and opportunities But, at the same time, the UK is well placed to benefit may impose this type of tax [and its] in terms of their magnitude and the confidence in The majority of risks (51%) and opportunities (54%) from international opportunities. magnitude or the time frame that might the probability that they will occur. In line with that, reported have timeframes of under five years. Only 32% be involved. companies might also expect climate change to pose of companies report risks (opportunities: 14%) which have Map 1 (p.14) shows the number of companies which more risks than opportunities. timeframes of ten years or more. This presents a mixed message: on the one hand, companies are identifying report operations in each country and the level of Scope 1 and 2 emissions per continent. Some companies are already managing these risks. For immediate threats and opportunities, for example in example, Dairy Crest describes how it designs its sites response to recent weather events or regulatory changes, to meet local climatic conditions: buildings located close Royal Dutch Shell mentions how hurricane Katrina to rivers with a risk of flooding are constructed to be disrupted its operations in the US Gulf of Mexico, which waterproof. led the company to retrofit some of its platforms and to make changes in its operations. On the other hand, the lack of focus on longer term risks and opportunities could mean that strategies for adapting to climate change risks are not in place.

7 International Threats and Opportunities of Climate Change for the UK (Defra, by PwC (2013), page 22). 8 The Climate Disclosure Standards Board’s ongoing research (www.cdsb.net/standards) has identified 380 types of arrangements in place around the world that directly or indirectly affect the way in which enterprises report on sustainability; indeed, the UK Government has introduced regulations that will require UK quoted companies to include their global greenhouse gas (GHG) emissions in their annual reports from 1 October 2013 (Department for Business, Innovation and Skills, https://www.gov.uk/government/news/better-and-simpler-company-reporting). 9 CDP’s water programme seeks to address water risks by catalysing action towards sustainable corporate water stewardship, safeguarding water resources for those who need them most. 10 International Threats and Opportunities of Climate Change for the UK (Defra, by PwC (2013)) 14 15 Main Themes of 2013 Responses continued

Map 1: Countries where UK-quoted companies report operations and total Scope 1 and 2 emissions by continent

106

Europe 94

Asia

109

9 Middle North East America 1 Central America 57 Oceania

19 South America 61 Africa

No companies Fewer than 10 companies Other* Between 10 and 30 companies 61 Between 31 and 50 companies Between 51 and 70 companies More than 70 companies 0 Total reported Scope 1 and 2 emission (million tCO2e) *’Other’ includes: ‘Rest of World’, ‘International Waters/Air Space’ and non-specific descriptions: e.g. Eurasia, EMEA. 16 17 Main Themes of 2013 Responses continued Scientific insight - Professor Sir Brian Hoskins

Figure 2: Percentage of companies reporting Figure 3: Percentage of companies selecting the five risks and opportunities from climate change most commonly reported risks

 Risks  Opportunites

58% 55% 49% Climate change is happening,

84% 74% 70% we are causing it and we need Carbon taxes Reputation Fuel/energy taxes and regulations to deal with it.

47% 45% 75% 59% 71%

Regulation Physical Other climate Emission Changing related risks reporting consumer regulations behaviour

Figure 4: Percentage of companies selecting the five most commonly reported opportunities The IPCC has just published its Fifth Assessment be unprecedented in human history. The scale of Report, the most comprehensive review of the science change is similar to that between now and the height of A number of countries where we have operations of climate change since the previous report in 2007. the last ice age, but of course in the opposite direction. including in the EU, South Africa, United Average temperatures have risen by around 0.89°C 31% (0.69-1.08°C) over the period 1901-2012; and it is States, India and China are involved in on-going 51% 48% The change in global mean surface temperatures extremely likely (i.e. at least 95 per cent probable), that is just an index of the severity of climate change. negotiations to determine international agreements more than half of the observed warming since 1951 is Changes in temperatures in the mid- and high latitudes, and action on climate change to replace the Kyoto Reputation Changing Fuel/energy due to the increase in greenhouse gas concentrations particularly over land, are likely to be far greater. Protocol that finished at the end of 2012...The consumer taxes and resulting from human activities. As well as rising Rainfall patterns will change and when it rains, it will be uncertainty of the exact nature of the agreements behaviour regulations temperatures, climate change is projected to cause more intense with a greater risk of flooding (very likely affects our ability to effectively assess long term continued ocean acidification, sea level rise and increase in frequency and intensity of heavy rainfall changes to weather patterns. Many of these changes events by late century). Emissions will also increase investment decisions; which we define here as an will be challenging for people to adapt to because the acidity of the oceans and could raise mean sea indirect operational cost (as opposed to a direct 26% 24% civilisation has developed under a relatively static level by more than half a metre increasing the risk of operational cost which would include our climate. The scale of these changes will depend on damaging storm surges. It’s likely that there will be office operations). future greenhouse gas emissions. more contrast between wet and dry seasons, more frequent heat waves, and less rainfall in sub-tropical Other physical General In other words, climate change is happening, we are and Mediterranean regions. i.e. These changes will put Old Mutual climate opportunities environmental causing it and we need to deal with it. profound pressure on society. regulations, including planning Before we changed the amount of carbon dioxide There will be a lot of noise about the Fifth Assessment in the atmosphere through the use of fossil fuels, it Report, the IPCC process and some of the specific fluctuated between about 180 and 280 parts per million details in the report. But the main message is beyond over the last million years. But human greenhouse doubt, companies and governments need to take gas emissions continue to rise inexorably. Since the action to address the risks of climate change. and particularly in the last 50 years, we’ve taken that level up by more than 40% to

400ppm. This is much higher than the CO2 levels at any point in the ice core record going back 800,000

years; CO2 was probably last at these levels some 3 million or more years ago. Passing 400ppm this year should jolt companies and governments into action. Professor Sir Brian Hoskins On current trends of increasing emissions, it is likely Director, Grantham Institute for that average temperatures will increase by well over Climate Change, Imperial College London 2°C over the course of this century, with a chance of exceeding four degrees. This level of warming would 18 19 Main Themes of 2013 Responses continued

Map 2: Summary map of projected regional impacts of climate change by the 2020s11

Arctic

North

North

Central West East

East

South

South

North

South East

West East

Pacific Islands

South Other small islands

Water availablility

Temperature Biodiversity Antarctic Extreme events Fisheries

Health Negative impact

Agriculture Positive impact 11 International Threats and Opportunities Threats and Opportunities of Climate Change for the UK (Defra by PwC (2013), page 15) 20 21 Main Themes of 2013 Responses continued

Companies’ understanding of their two financial companies (4% of financial respondents) value chain is limited report emissions from their investments, even though this is where they have the biggest impact, and just 7% of An understanding of companies’ full value chains is critical consumer discretionary, consumer staples, information to their ability to estimate the full global environmental technology and industrial companies report emissions for Randgold [does not engage with our impact, to manage the impacts of extreme weather on the use of their products. At the moment, we don’t directly value chain because] GHG emissions engage with our suppliers regarding British assets abroad and to mitigate their other risks. reduction strategy is still relatively new This is increasingly important as the impacts of physical The gaps in data are significant across all sectors: 34% climate change strategies. [This is] and regulatory changes abroad begin to hit. Companies of companies do not disclose any measured Scope 3 to the company and the focus is on mainly because of the large number of emissions. This, combined with limited engagement with need to engage with their suppliers, to engage with reducing emissions under our control. individual suppliers involved. their customers and, where relevant, to evaluate the full customers and suppliers, will hinder these companies’ lifecycle effects of their products. This includes emissions preparedness for climate change. Some companies, Randgold management and resource use management. such as Croda and Randgold Resources, want to focus Croda on their core operations first before their whole value Resources Some FTSE 350 companies are already acting to mitigate chain emissions. risks and build on the opportunities concerning their full value chain. However, the numbers remain relatively low: only 52% of companies engage with their suppliers and 44% with their customers. Figure 5: Percentage of companies engaging with What can companies do? In addition, FTSE 350 companies have calculated Scope their value chain 3 emissions associated with only 51% of activities reported There is a range of support available to companies who wish to start monitoring and reporting their Scope 3 as relevant sources of emissions. Of these, 83% are emissions. For instance, Defra has recently published guidelines for reporting Scope 3 emissions per £1 of upstream and 17% downstream. This suggests a current expenditure12. Companies can also use CDP to engage and track their value chain by asking suppliers to disclose Suppliers 52% Customers 44% focus on supply chain activities which means that reported their emissions; CDP’s supply chain programme can help to facilitate communication between customers and emissions are not always the most significant or relevant: suppliers, enabling organisations to implement successful supplier engagement strategies, reduce supply chain for certain sectors, such as industrials, downstream Scope emissions, control water impact and manage risk in a changing climate. requires all their top 50 3 emissions will significantly outweigh upstream Scope 3 suppliers to use schemes such as CEMARS; the Prince of Wales’ May Day Network or CDP to measure, manage emissions or Scope 1 and 2 emissions. and reduce their greenhouse gas (GHG) emissions. Other 21% No 37% For example, 57% of companies report business travel partners engagement as a source of Scope 3 emissions but this only equates to 0.11% of the total emissions reported. Meanwhile, only

Figure 6: Percentage of companies reporting Scope 3 activities and disclosed emissions by activity Severe and unpredictable weather events We have made a business decision to focus on the impact of our supply 3.5 represent a risk to our own buildings and sites. They are also likely to have an impact on our chain on the environment and to Percentage of companies customers, suppliers and employees’ homes and mitigate against the changing local

e 3 60

2 Emissions millions tCO e 2 buildings which can have an indirect effect upon environments in which we work. 2.5 50 our business. As our operations are primarily located in the UK, only some of these global Pace 2 40 weather events will impact upon our business directly. However, it is very possible that some 1.5 30 of our suppliers from other countries could be affected by weather events which do not directly 1 20 impact upon the UK. For example, the delivery of wind turbine components from overseas, or fuel 0.5 10 companies % of responding

Absolute emissions millions tCO supplies or materials for building projects coming from abroad, may be delayed. 0 0

SSE Investments Franchises Business travel Capital goods Employee commutingUse of sold products Upstream leased assets Processing of sold Products 12 https://www.gov.uk/government/publications/2012-greenhouse-gas- Waste generatedPurchased in operations goods and services Fuel-and-energy-related activities conversion-factors-for-company-reporting End of life treatment of sold products Upstream transportation and distribution Downstream transportation and Distribution 22 23 Corporate insight - Reckitt Benckiser Main Themes of 2013 Responses continued

FTSE 100 companies have a more sophisticated response to climate change than FTSE 250 companies The main physical threats to our assets and operations 94% of FTSE 100 companies (the 100 largest companies on the ) and 56% of FTSE are from the increased intensity and frequency of severe st th weather events and other changes to weather patterns ... Setting targets is the easy part - 250 companies (the 101 to 350 largest companies) responded to CDP in 2013. The samples are very different If severe weather events continue to increase in frequency the challenge is to guide product in both the quality of their response and the amount of and intensity, our business could be at risk from increased development in order to meet our emissions they produce. However, they are both at risk of insurance premiums. In addition, there are equity and climate goals. the impacts of international climate change. commodity risks if supply of electricity is interrupted. FTSE 100 companies have a more sophisticated response Centrica to the threats and opportunities of climate change – their responses are generally longer term, more comprehensive and more strategic than the FTSE 250’s. However, this may be a reflection of a greater exposure to climate change related risks due to more international operations. Across almost every metric, they show an increased disclosure or performance level which is summarised in the infographic on pages 26 and 27. This is reflected in the 61% of FTSE 100 companies that report a decrease in emissions since With over 200 offices worldwide, Atkins is likely to be 2012 compared to only 34% of FTSE 250 companies. subject to the physical risks of climate change; for example an increased incidence of flooding due to Identifying innovations solutions, increasing efficiency manage this risk we launched our responsible natural Overall, FTSE 100 Scope 1 and 2 emissions went up and reducing environmental impacts go hand in hand at raw materials sourcing programme. A key element of extreme weather events. The Group has a Business by just under 2% since 2012. FTSE 250 Scope 1 and 2 Reckitt Benckiser. We’re a fast-moving, global, health, this is the assessment and management of sustainability Continuity Strategy and Plan that seeks to identify emissions showed a much sharper increase, up 25% to 59 hygiene and home company - we have operations risks (including climate change) associated with our million tonnes CO e, although this is still only one tenth of threats to the organisation and provides a framework in more than 60 countries and sales in more than sourcing of natural raw materials. 2 the emissions of FTSE 100 companies (541 million for building resilience and the capability for an effective 200 countries. As such, we are fully aware of the tonnes CO e)13 (see infographic on p.26). response should an incident occur. international impacts of climate change on our business. Setting targets is the easy part - the challenge is to guide 2 We thrive on setting and beating ambitious targets. So, product development in order to meet our climate goals. The large increase in FTSE 250 emissions may be Atkins back in 2007, following a cross-company full lifecycle To do this, we developed the Sustainable Innovation partly explained by the fact that almost half (42%) of the carbon footprint analysis, we set a goal to reduce our Calculator to measure the lifecycle sustainability impact responding companies have no emissions reduction carbon footprint per dose of product by 20% by 2020. of each new innovation. We’ve built sustainability target and only 27% have an absolute emissions target. assessments into our product development processes Of those reporting targets, more FTSE 100 companies Our analysis revealed that about two thirds of our and standardized reporting at key developmental report both long term targets (FTSE 100: 55%, FTSE 250: global impact was in the consumer product use. So milestones. Another significant change we introduced 25%) and short term targets (FTSE 100: 64%, FTSE 250: we focused attention on reducing consumer use was setting a financial (net revenue) sales target of more 29%). In addition, the average target year is later by more impacts through product development by incorporating sustainable innovations. Framing sustainability in the than 2.5 years for FTSE 100 companies. This suggests sustainability assessments into our design processes. language of business helps further embed sustainability that FTSE 100 companies are better prepared for some into day-to-day business operations. of the immediate impacts of climate change as well as the We beat our goal – eight years ahead of time. In longer term consequences. Indeed, only 21% of FTSE September 2012, we set a more ambitious target – a Our long term aim is for each innovation to be more 250 companies report risks with timeframes of ten years further 33% emissions reduction by 2020, on top of the sustainable than the last. Having visibility of our future or more (49% of FTSE 100 companies do). 20% already achieved. This is part of our new approach impact is already shaping our product pipeline to further to sustainability, called betterbusiness, in support of our decouple our impacts from the growth of the business. Fewer FTSE 250 companies appear to have a good new vision, purpose and business strategy. understanding of climate change risks: three times as many FTSE 250 companies say their company does We identified six global megatrends like rising energy not face substantive risks or opportunities from climate costs, emission constraints and increasing water change. While the magnitude of the impacts will vary scarcity. We are responding to these with a strategy for depending on the sector which is affected, all companies more sustainable innovation, especially in areas where face some risks or opportunities from climate change, we can make the biggest impact. We also focus on whether directly or via their supply chain or customers. minimising carbon emissions across the lifecycle of our Sharon James Even where competitors face higher risks than them, products, including Scope 3 emissions. Senior Vice President R&D, Reckitt Benckiser companies should still build these risks and opportunities into their business strategies. 13 These figures We know that our supply chain could be vulnerable to compare the 2012 the adverse impacts of climate change, particularly to FTSE 350 sample to the 2013 FTSE 350 sample extreme precipitation events or drought. To help us to rather than company to company. 24 25 Main Themes of 2013 Responses continued

Currently, 15% of the FTSE 100 and 43% of the FTSE 250 do not engage with research organisations or trade associations or through direct engagement with policy makers. Only 11% of FTSE 250 companies fund research organisations. These types of engagement are important in ensuring their viewpoints are accounted for in policy setting. Indeed, 92% of companies currently report that trade associations’ viewpoints are consistent with theirs. In order for companies to be fully The sectoral mix differs between the FTSE 100 and FTSE 250 companies – fewer FTSE 250 companies (13%; FTSE prepared for the international impacts 100: 30%) are from high emitting sectors (Energy, Materials and Utilities – see pages 26 and 27) - and so does the current sophistication of their response to climate change. However, both samples will face significant threats from the of climate change, this report suggests international impacts of climate change, as illustrated by Centrica (FTSE 100) and Atkins (FTSE 250). a five point plan and a call to action that UK companies and investors can implement:

Engage executive team: Use common business language and metrics and define your company’s risk appetite. Ensure buy-in from senior management and Figure 7: Sector breakdown for FTSE 100 and FTSE 250 companies identify risk champions throughout the business (including treasury, procurement, risk, insurance and corporate affairs); 30% FTSE 100 FTSE 250 Engage with your value chain: Collaborate with 25% suppliers, customers and other partners (e.g. local

24 24 governments, community groups) to identify current and historical risks and risk mitigation approaches. Establish a 20% 20 collaboration to build resilience and secure a sustainable 18 17 value chain; 15% 15 15 Identify and assess risks: Use analytical tools for a risk 10% 12 assessment of present and future weather and climate 10 risks. Verify your data to ensure risks are identified and

% of responding companies % of responding 7 assessed across the value chain. Prioritise high risk assets 5% 6 5 5 4 4 4 4 and risk drivers for further assessment; 2 2 1 0% Evaluate options for managing risks and capitalising

Energy Utilities on opportunities: Use cost-benefit analyses to evaluate Financials Healthcare Industrials Materials whether risks should be reduced, shared or accepted. Consumer Staples Insert risks into risk registers and assess implications for Consumer Discretionary Information Technology insurance purchasing, procurement, business continuity Telecommunication Services plans and asset allocation. Identify new business models and opportunities for products and services that build climate resilience. Understand the return on investment of priority interventions; and

Implement decisions, monitor effectiveness and plan for the future: Work with partners from your value chain to implement resilience initiatives and monitor their performance. Revisit risks assessment as the value chain evolves, new data emerges, and as appetite to build further resilience grows. 26 27 Preparing for climate change: Comparing FTSE 100 and FTSE 250 companies

Amongst these, FTSE 100 companies are disclosing more FTSE 250 companies have fewer emissions reduction targets, which are more short term Who is responding? and performing better

84% of FTSE 100 58% of FTSE 250 companies have a target 94% 60/C companies have a target 56% Average FTSE 250 score

FTSE 250 81/B 2013 2014 2015 2016 2017 Average FTSE 100 score Average year for target FTSE 100

FTSE 250 companies report fewer risks Fewer FTSE 250 companies have stated that and opportunities climate change is integrated into their strategies And they have six times as many companies in the CDLI and CPLI Risks 100 FTSE 100

80 FTSE 250

60 34 40 CPLI CDLI 11 20 7 % of companies 2 0 Physical Regulation Reputation 76% FTSE 100 FTSE 250 FTSE 100 FTSE 250 and customer 94% behaviour 100% Opportunities 100 Long term Companies emitted: And total Scope 1 and 2 emissions increased FTSE 100 55% by 3.6% overall 80 FTSE 250: 59m tCO e 2 FTSE 250 26% 84% 16% 60 Scope 1Scope 2 79% 21% 40 Scope 1 Scope 2 Short term 20 FTSE 100 64% +1.7% +25.3% % of companies since 2012 since 2012 0 Physical Regulation Reputation FTSE 250 29% and customer behaviour 01020304050607080 FTSE 100 FTSE 250 And twice as many state there are no risks or This shows the % of companies that reported long and short opportunities to their companies term changes to their strategy due to climate change FTSE 100: 541m tCO2e

However, all companies can do more to respond to improve their performance: FTSE 250 companies report emissions for half as many Scope 3 activities 52% verify both Scope 1 and 2 45% report a decrease in emissions 62% have monetary incentives emissions since 2012 Average number of activities reported: 49%

17% FTSE 100 79% 33% Decrease 6% 3 activities 34% Increase Other FTSE 100 FTSE 250 FTSE 250 34% FTSE 100: 79% FTSE 250: 49% 1.5 activities Outsourced Business travel Product use Raw materials emissions 61% 28 29 PwC commentary - Celine Herweijer

Globalisation of our supply chains and asset base has shortened the distance between headline disasters and our high streets.

British business is already feeling the effects of climate The level of understanding of, and ability to manage change. Record losses have been racked up over risks, in distant supply chains overseas is far lower. Of recent years in the wake of increasingly frequent the FTSE 350 companies, only 52% report engaging extreme weather events. Flooding in the UK in 2007 with their suppliers on GHG emissions and climate cost businesses over £1bn14. But, as our report for change strategies. Defra shows, UK businesses may be even more exposed to the impacts of climate change abroad. At PwC, we have been working with our clients to Globalisation of our supply chains and asset base has help them understand and quantify the risks posed shortened the distance between headline disasters and by disasters and the changing climate. Our Climate our high streets. This was demonstrated by the Thai Risk Analytics work helps businesses integrate climate floods in 2011 which wiped over £1.6bn off Lloyds of change and disaster risk into their enterprise risk London’s books15 and restricted availability of some management approaches. We have assessed the electronic goods. impacts of climate on security of supply for major retailers and worked with investors to understand Business resilience is critical to create value, achieve climate risks to their portfolios. We use quantitative and sustain growth and sometimes for survival. The models to evaluate risks and to understand the return coming decades are expected to see major shifts in on investment of risk mitigation strategies. the frequency, severity and distribution of extreme events and climate conditions. This will impact security The private sector is well placed to tackle these of supply, asset value and the continuity of business challenges, reduce risks and save costs. It is operations. Basing investment and risk management developing new and innovative products and services decisions on past experiences only will increasingly targeted at building resilience. Businesses are using expose business to losses in the future. new mobile-supported early warning systems that provide alerts to changing weather patterns, and While 86% of the FTSE 350 respondents report that investing in innovative financial risk transfer products. they consider climate risks or opportunities, most Many businesses now recognise that building resilience businesses have little knowledge of their true exposure is critical to success and increasingly survival.

14 http:// to weather and climate change risks across their nationalfloodforum.org. operations and value chain. Nor do they have the ability uk/wp-content/uploads/ EA-Costs-of-Flooding.pdf to respond, if and when a threat materialises. This is 15 http://www. particularly concerning when you consider that over theguardian.com/ 16 business/2012/feb/14/ £10 trillion of the UK’s assets are located abroad . lloyds-thailand-flooding- Celine Herweijer 2bn-dollars 16 International threats Our input into this year’s United Nations Global Partner, PwC and opportunities of Assessment Report on Disaster Risk Reduction shows climate change to the that the focus still tends to be on directly owned UK, PwC report for Defra, 2013 assets, short term risks, and post-disaster responses. 30 31 Appendix I - Non-responding companies Appendix II - Responding companies, scores and emissions data

Company name Country 2013 Status Company name Country 2013 Status Number of Number of 2013 2013 Company name Country Scope 1 Scope 2 Scope 3 Company name Country Scope 1 Scope 2 Scope 3 Score Score Consumer Discretionary United Kingdom DP catagories catagories United Kingdom DP Healthcare Consumer Discretionary Royal Dutch Shell Netherlands 90 B 72,000,000* 9,000,000* 5 Betfair United Kingdom NR Genus United Kingdom NR Aegis United Kingdom 81 C 975 13,987 1 Soco International United Kingdom 39 Not public Bwin.party Digital Entertainment United Kingdom IN Worldwide Healthcare Trust United Kingdom NR United Kingdom 61 D 365* 2,819* 0 United Kingdom 72 B 579,834* 122* 0 Carpetright United Kingdom NR Industrials Berkeley United Kingdom 78 C 3,173 9,719 3 Wood Group United Kingdom 82 D 2,308 7,054 1 United Kingdom DP Babcock United Kingdom DP Bovis Homes United Kingdom 60 D 923 373 2 Financials Dunelm United Kingdom IN United Kingdom DP British Sky Broadcasting United Kingdom 95 A 20,972* 80,458* 11 United Kingdom 63 D 0 406 2 Halfords United Kingdom NR Fenner United Kingdom NR SA United Kingdom 75 C 1,334* 38,014* 7 (see 3i) Channel Islands Howden Joinery United Kingdom DP United Kingdom DP (AQ) Carnival United Kingdom 83 C 10,819,814* 57,585* 4 Inchcape United Kingdom NR Kentz United Kingdom DP Aberdeen Asset Compass United Kingdom 82 C 76,141 9,064 0 United Kingdom 91 B 123* 3,444* 2 ITV United Kingdom DP Melrose United Kingdom DP Management United Kingdom 74 B Not public JD Sports Fashion United Kingdom IN Paypoint United Kingdom DP Admiral United Kingdom 60 D 361 6,070 2 Dignity United Kingdom 72 D 15,097* 7,861* 0 John Menzies United Kingdom NR Ultra Electronic United Kingdom DP United Kingdom 74 C 166 486 2 Dominos Pizza United Kingdom 63 E 6,390 4,362 3 Mitchells & Butlers United Kingdom DP Vesuvius United Kingdom NR Amlin United Kingdom 77 C 892* 2,997* 4 Enterprise Inns United Kingdom 25 1,787 Ocado United Kingdom DP Information Technology United Kingdom 79 B 23,849* 75,733* 6 Euromoney Institutional PERFORM United Kingdom NR United Kingdom 49 170 2,920 1 SA Anite United Kingdom NR Investors United Kingdom Rank United Kingdom DP (see Henderson) (AQ) United Kingdom NR GKN United Kingdom 60 D 201,318 946,111 0 Restaurant Group United Kingdom DP Barclays United Kingdom 92 A 46,757* 889,915* 1 CSR United Kingdom DP Greene King United Kingdom 61 D 42,139 93,474 1 Sports Direct United Kingdom DP Beazley United Kingdom 44 42 1,618 2 Fidessa United Kingdom NR Home Retail United Kingdom 80 B 110,636* 167,599* 1 United Kingdom DP Big Yellow United Kingdom 71 D 143* 7,176* 0 Imagination Technologies United Kingdom NR United Kingdom 74 D Not public Blackrock World (see SA Consumer Staples United Kingdom Moneysupermarket.com United Kingdom NR Intercontinental Hotels United Kingdom 85 B 447,000 1,806,000 4 Blackrock - Global 500) (AQ) A.G. Barr United Kingdom NR United Kingdom DP Kingfisher United Kingdom 83 B 146,819* 308,000* 7 British Assets Trust (F&C SA United Kingdom Booker United Kingdom DP United Kingdom DP Ladbrokes United Kingdom 73 B Not public Asset Management) (AQ) Devro United Kingdom NR SDL United Kingdom NR Marks & Spencer United Kingdom 85 B 181,348* 371,633* 7 British Empire Securities United Kingdom 15 Energy Materials Maston’s United Kingdom 52 D Not public British Land United Kingdom 98 A 6,728* 39,637* 10 Bumi United Kingdom DP Alent United Kingdom DP Millennium & Copthorne Capital & Counties United Kingdom 68 C 73,372 235,625 0 United Kingdom 70 C Not public EnQuest United Kingdom NR Az Electronic Materials United Kingdom NR Hotels Properties United Kingdom NR United Kingdom NR N Brown United Kingdom 75 B 3,365 10,474 6 Catlin United Kingdom 85 C 750 6,206 3 Investment SA United Kingdom DP Switzerland NR Next United Kingdom 87 B Not public United Kingdom Trust (see Henderson) (AQ) Financials United Kingdom NR Pearson United Kingdom 72 B 30,972 118,686 5 Derwent London United Kingdom 89 C 3,632* 7,053* 3 Aberforth Smaller Companies Trust United Kingdom DP Kenmare Resources Ireland NR Persimmon United Kingdom 71 C 9,237 4,761 1 Direct Line Insurance (see SA Redrow United Kingdom 66 D 4,519 2,096 1 United Kingdom Ashmore United Kingdom NR New World Resources Netherlands DP Royal Bank of Scotland) (AQ) Reed Elsevier United Kingdom 91 A 10,752* 127,105* 7 Bank of Georgia Holdings United Kingdom NR Petropavlovsk United Kingdom DP Edinburgh Dragon Trust SA BH Global Channel Islands NR Polymetal Russia DP United Kingdom 26 Not public (see Aberdeen Asset USA (AQ) BH Macro Channel Islands NR Utilities SuperGroup United Kingdom 7 Not public Management) United Kingdom 75 D 10,923 13,444 6 Edinburgh Investment Trust SA BlueCrest AllBlue United Kingdom DP United Kingdom NR United Kingdom (see - S&P 500) (AQ) United Kingdom NR Ted Baker United Kingdom 71 C 109 3,737 5 Electra Private Equity United Kingdom 0 United Kingdom NR TUI Travel United Kingdom 92 B 6,169,809* 220,058* 5 F&C Asset Management United Kingdom 60 D 0 690 1 Close Brothers United Kingdom DP United Business Media United Kingdom 80 A 1,022* 8,613* 5 F&C Commercial Property Appendices Key : Wetherspoon United Kingdom 63 D Not public SA Daejan Holdings United Kingdom DP Trust (see F&C Asset United Kingdom (AQ) Dexion Absolute United Kingdom DP WH Smith United Kingdom 64 B 6,439* 43,752* 1 Management) AQ(L): Answered questionnaire late, and therefore is not scored. United Kingdom 77 B 56,226* 161,381* 5 Genesis Emerging Markets Fund United Kingdom NR Fidelity China Special SA DP: Declined to participate WPP United Kingdom 95 B 9,859* 164,206* 2 Situations (see Fidelity United Kingdom Hansteen Holdings United Kingdom DP (AQ) European Values) United Kingdom DP IN: Information provided (e.g. CSR report) Consumer Staples United Kingdom NR NR: No response United Kingdom 85 B 2,295,328* 1,067,934* 0 United Kingdom 48 Not public Foreign & Colonial IG Group United Kingdom DP British American Tobacco United Kingdom 94 B 359,184* 387,168* 5 SA SA(AQ): See another - refers to another company response Investment Trust (see F&C United Kingdom United Kingdom 65 D Not public (AQ) International Public Partnerships United Kingdom DP Asset Management) Not public: the company responded privately Cranswick United Kingdom 56 D 33,432 44,811 2 IP Group United Kingdom NR Grainger United Kingdom 78 C 398 379 2 Number of Scope 3 categories: value indicates number of scope Dairy Crest United Kingdom 71 C 102,810 71,380 3 Jardine Lloyd Thompson United Kingdom NR United Kingdom 81 C 880* 4,265* 1 Diageo United Kingdom 98 A 597,619* 83,898* 6 Bermuda DP 3 categories that were reported as ‘relevant and calculated’ United Kingdom 67 C 3,061 39,420 0 United Kingdom 81 B Not public LondonMetric Property United Kingdom DP *: the asterisk on Scope 1 or Scope 2 emissions figure indicates Henderson Ireland 81 B 29* 1,644* 3 Imperial Tobacco United Kingdom 83 B 144,153* 163,819* 0 Man United Kingdom DP full points were awarded for verification that is complete or HICL Infrastructure (see SA J Sainsbury United Kingdom 95 B 728,738* 807,964* 4 Channel Islands NB Global Floating Rate Income Fund United Kingdom NR underway using an approved standard HSBC) (AQ) Paragon United Kingdom NR Morrison Supermarkets United Kingdom 83 B 469,567* 762,686* 2 United Kingdom 70 C 204 1,016 1 Holdings United Kingdom NR Bold: companies that are in either CPLI (performance band A) PZ Cussons United Kingdom 67 C Not public HSBC United Kingdom 97 A 64,918* 688,827* 1 Polar Capital Technology Trust United Kingdom NR or CDLI (disclosure score 88 or higher), or both. Reckitt Benckiser United Kingdom 99 B 104,934* 208,576* 7 Icap United Kingdom 4 Raven Russia United Kingdom NR SABMiller United Kingdom 74 B 1,009,825* 997,465* Intermediate Capital Group United Kingdom 60 E 44 586 1 RIT Capital Partners United Kingdom NR Tate & Lyle United Kingdom 94 A- 2,177,876* 1,247,670* 3 International Personal United Kingdom 77 C 21,133 5,054 2 Scottish Investment Trust United Kingdom DP Tesco United Kingdom 96 A- 1,418,798* 3,764,068* 7 Finance St. Modwen Properties United Kingdom NR Unilever United Kingdom 82 A 1,053,344* 907,399* 9 Properties United Kingdom 74 B 5,458 41,857 0 Energy (see Investec Ltd - SA SVG Capital United Kingdom DP United Kingdom South Africa) (AQ) Tullett Prebon United Kingdom NR United Kingdom 37 Not public John Laing Infrastructure AMEC United Kingdom 75 C 28,951 31,432 1 Guernsey 49 19,058 71,921 0 Utilico Emerging Markets Bermuda NR Fund BG Group United Kingdom 89 A 7,739,569* 20,295* 3 JPMorgan American IT (see SA BP United Kingdom 80 C 59,830,000* 8,360,000* 1 JPMorgan Chase - Global United Kingdom (AQ) United Kingdom 80 D 1,589* 280* 1 500) Mauritius 33 Not public JPMorgan Emerging Markets Investment Trust SA Heritage Oil Channel Islands 18 Not public United Kingdom (see JPMorgan Chase - (AQ) To read 2013 company responses in full please go to www.cdp.net/en-US/Results/Pages/responses.aspx Hunting United Kingdom 49 9,061 36,149 Global 500) United Kingdom 77 B 160,998 40,677 1 JPMorgan Indian Investment SA United Kingdom 66 D 890,809* 2,122 1 Trust (see JPMorgan Chase United Kingdom (AQ) - Global 500) 32 33 Appendix II - Responding companies, Appendix III - Responding scores and emissions data - continued FTSE SmallCap Companies

Number of Number of Number of Number of 2013 2013 2013 2013 Company name Country Scope 1 Scope 2 Scope 3 Company name Country Scope 1 Scope 2 Scope 3 Company name Country Scope 1 Scope 2 Scope 3 Company name Country Scope 1 Scope 2 Scope 3 Score Score Score Score catagories catagories catagories catagories

Financials continued United Kingdom 86 B 170,342 26,804 3 United Kingdom 22 Not public Consumer Discretionary United Kingdom 58 E 131 553 2 Chemring United Kingdom 31 63,932 Fresnillo Mexico 68 D 236,184 346,134 2 Aga Rangemaster United Kingdom 88 B 13,200 13,801 0 Land Securities United Kingdom 88 B 14,592* 96,835* 2 United Kingdom 84 B 94,565* 52,468* 3 Glencore International Switzerland 82 C Not public Fiberweb United Kingdom 49 28,288 138,070 2 Corporation United Kingdom 25 Not public United Kingdom 55 E 36,600 53,100 1 United Kingdom 76 C 158,483 254,968 2 Henry Boot United Kingdom 31 1,393 927 2 Legal & General United Kingdom 75 C 4,218 29,385 1 easyJet United Kingdom 30 5,444,000 Kazakhmys United Kingdom 65 D Not public Mecom United Kingdom 46 Not public Lloyds Banking United Kingdom 90 B 49,414* 290,726* 2 Ireland 82 B 5,550* 52,060* 1 Lonmin United Kingdom 88 B 97,452* 1,470,773* 3 United Kingdom 63 C 5,766 21,739 0 London Stock Exchange United Kingdom 73 D 1,083 23,546 2 FirstGroup United Kingdom 78 B 2,638,761* 404,702* 1 United Kingdom 87 B 4,329,585* 1,267,224* Thomas Cook United Kingdom 69 C 4,309,161 20,315 1 Mercantile Investment Trust United Kingdom 78 C 403,902 130,198 1 Trinity Mirror United Kingdom 65 C 5,464 45,664 3 SA Petra Diamonds United Kingdom 13 (see JPMorgan Chase - United Kingdom (AQ) Galliford Try United Kingdom 73 B Not public Randgold Resources United Kingdom 84 C 467,706* 50,418* 3 UTV Media United Kingdom 34 564 2,331 Global 500) Go-Ahead United Kingdom 77 B 354,565* 563,502* 0 Rexam United Kingdom 77 D Not public Consumer Staples Merchants Trust SA United Kingdom (see Allianz - Global 500) (AQ) Hays United Kingdom 67 D 2,824 5,811 1 Rio Tinto United Kingdom 88 B 26,900,000* 16,400,000* 6 Ireland 66 D Not public United Kingdom 0 IMI United Kingdom 81 B 25000* 65000* 1 RPC United Kingdom 73 D Not public Hilton Food United Kingdom 34 0 28,534 1 International Airlines United Kingdom 15 65,500 118,300 McBride United Kingdom 75 C 12,232 49,312 3 SA Spain 88 B 23,230,095* 131,636* 5 (see Aberdeen Asset United Kingdom Group United Kingdom 76 C 34,025,949 1,464,428 4 United Kingdom 68 C Not public (AQ) Management) Interserve United Kingdom 86 C 30,169 7,158 5 United Kingdom 53 E Not public Energy Murray International Trust United Kingdom 71 D 11,529 128,071 0 SA Xstrata Switzerland 82 C Not public Fortune Oil Hong Kong 39 7,980 6,517 (see Aberdeen Asset United Kingdom (AQ) Invensys United Kingdom 71 B 19,718 69,039 1 Management) Telecommunicatin Services JKX Oil and Gas United Kingdom 50 E 128,568 9,335 0 ITE United Kingdom 71 D 16 64 2 Old Mutual United Kingdom 91 B 10,200* 655,638* 3 BT United Kingdom 93 A 200,876* 192,644* 10 United Arab Kier United Kingdom 81 C 61,886* 17,087* 3 Lamprell 25 78,276 0 Perpetual Income & Growth Cable & Wireless Emirates SA United Kingdom 48 Not public Investment Trust United Kingdom United Kingdom 45 37,365 97,080 0 Communications Financials (AQ) (see Invesco Ltd) Michael Page International United Kingdom 62 E Not public United Kingdom 63 D 1,939 115,583 3 Baillie Gifford Japan Trust United Kingdom 0 United Kingdom 7 Not public United Kingdom 79 C 42,764 3,479 8 United Kingdom 18 4,328 Edinburgh Worldwide United Kingdom 0 Provident Financial United Kingdom 74 D 2,097* 4,717* 1 Morgan Advanced Materials United Kingdom 92 A 152,600* 253,000* 1 KCOM United Kingdom 59 D 2,908 22,639 2 Investment Trust Prudential United Kingdom 70 D 12,500 114,636 0 National Express United Kingdom 59 D 754,973 64,545 3 TalkTalk Telecom United Kingdom 73 C 592 67,782 1 Helical Bar United Kingdom 63 D 723 3,578 1 United Kingdom 67 E Not public Qinetiq United Kingdom 73 C 20,265 44,192 1 United Kingdom 85 B 404,885* 2,178,178* 2 Impax Environmental United Kingdom 55 E 0 64 1 Resolution United Kingdom 81 B 3,903* 16,664* 2 Regus United Kingdom 67 C Not public Utilities Markets Royal Bank of Scotland United Kingdom 88 B 66,586* 497,763* 9 United Kingdom 70 C 223,672 42,156 1 Centrica United Kingdom 97 B 7,230,344* 166,476* 6 Pacific Horizon Investment United Kingdom 0 RSA Insurance United Kingdom 81 B 13,262* 27,263* 3 Rolls-Royce United Kingdom 85 B 213,089 337,064 3 Drax United Kingdom 75 C 22,694,674* 875,130 0 Trust United Kingdom 84 C 466 3,385 3 United Kingdom 59 E Not public National Grid United Kingdom 98 B 7,913,978* 4,547,930* 6 Quintain Estates United Kingdom 10 Not public United Kingdom 86 B 1,042* 7,273* 1 RPS United Kingdom 76 C 8,740 5,875 1 Pennon United Kingdom 96 A- 1,934,332* 164,712* 8 Scottish Oriental Smaller United Kingdom 9 Not public Scottish Mortgage Senior United Kingdom 74 C 10,582 49,707 4 United Kingdom 83 B 147,433* 389,206* 5 United Kingdom 0 Companies Trust Investment Trust Serco United Kingdom 92 C 32,803* 116,456* 3 SSE United Kingdom 90 B 24,560,110* 1,364,652* 1 Healthcare United Kingdom 79 D 4,737 21,810 1 SIG United Kingdom 60 D 81,604 14,346 1 United Utilities United Kingdom 80 C 118,865 377,562 2 Vectura United Kingdom 52 D Not public Shaftesbury United Kingdom 88 B 52* 1,120* 3 Smiths United Kingdom 48 14,896 92,254 Industrials St.James Place United Kingdom 72 E 847 2,144 5 Spirax-Sarco Engineering United Kingdom 71 C Not public Publicly available responses can be viewed for free via Costain United Kingdom 84 A 9,210* 3,378* 4 Standard Chartered United Kingdom 91 B 26,560* 229,122* 0 Stagecoach United Kingdom 75 C 957,539 246,065 1 www.cdp.net. All public responses are also available in a comparable Hyder Consulting United Kingdom 58 D 164 2,863 1 Standard Life United Kingdom 90 B 3,454* 17,501* 1 Stobart United Kingdom 65 D 235,301* 8,469* 0 United Kingdom 91 B 34,662* 11,345* 3 Temple Bar Investment Trust database format (contact [email protected]). SA Travis Perkins United Kingdom 88 B 128,253* 78,303* 1 (see Investec Ltd - South United Kingdom Ricardo United Kingdom AQ (L) (AQ) Africa) Weir United Kingdom 77 D 61,491 124,616 0 Shanks United Kingdom 54 D 510,000 79,000 Templeton Emerging Wolseley United Kingdom 80 B 474,924* 167,188* 2 Speedy Hire United Kingdom 65 C 19,051 4,701 1 SA Markets IT (see Franklin United Kingdom Information Technology (AQ) UK Mail Ltd United Kingdom 30 57,900 0 Resources - Global 500) ARM Holdings United Kingdom 75 C 409 12,274 1 Wincanton United Kingdom 75 C Not public TR Property Investment SA United Kingdom 53 D Not public XP Power United Kingdom 53 D 37 1,835 2 Trust (see F&C Asset United Kingdom (AQ) Management) Dialight United Kingdom 26 Information Technology UK Commercial Property Diploma United Kingdom 0 Xchanging United Kingdom 59 E 3,231 15,553 1 SA Trust (see Northern Trust - United Kingdom Domino Printing Sciences United Kingdom 74 C Not public (AQ) Materials S&P 500) United Kingdom 86 B 6,800 16,100 1 Aquarius Platinum Bermuda 76 E 26,753 634,313 3 Unite United Kingdom 56 E 6,603 56,743 2 Halma United Kingdom 69 D 4,183 17,130 2 British Polythene Industries United Kingdom 41 3,491 122,847 1 Workspace United Kingdom 70 D 3,311 7,413 1 Laird United Kingdom 76 C Not public First Quantum Minerals Canada 80 D 763,326 37,212 2 Healthcare Micro Focus United Kingdom 54 D 174* 304* Hill & Smith United Kingdom 51 E 18,589 11,837 0 AstraZeneca United Kingdom 85 B 340,800* 286,200* 5 Pace United Kingdom 91 B 529* 7,645* 2 Marshalls United Kingdom 85 B 41,956* 18,342* 5 BTG United Kingdom 55 D 2,109 3,578 0 Premier Farnell United Kingdom 73 C 3,511 17,302 2 Talvivaara Mining Finland 81 D 197,072 17,402 3 United Kingdom 6 Renishaw United Kingdom 51 E 4,085 15,180 3 GlaxoSmithKline United Kingdom 98 A 1,005,447* 804,283* 5 Sage United Kingdom 55 D 1,568 22,925 0 United Kingdom 72 C 2,828 11,351 2 United Kingdom 79 C Not public Shire Ireland 83 C 26,123 25,459 2 Communications United Kingdom 66 D Not public Smith & Nephew United Kingdom 92 B 10,809* 70,797* 2 Telecity United Kingdom 14 Synergy Health United Kingdom 61 D 32,953 37,890 Materials United Drug Ireland 33 Not public African (see SA United Kingdom Industrials Barrick Gold - Global 500) (AQ) Anglo American United Kingdom 96 A 8,470,754* 9,403,534* 11 United Kingdom 21 12,639,771 14,168 To read 2013 company responses in full please go to www.cdp.net/en-US/Results/Pages/responses.aspx Ashtead United Kingdom 36 Not public Antofagasta United Kingdom 92 C 645,371* 1,539,442* 3 Atkins United Kingdom 84 B 22,603* 28,653* 1 BHP Billiton United Kingdom 75 C 20,200,000* 20,000,000* 2 BAE Systems United Kingdom 69 C 277,920 590,760 1 CRH Ireland 79 B 9,226,000* 1,184,000* 2 United Kingdom 87 B 320,454* 115,648* 2 Croda United Kingdom 93 B 137,043* 47,235 7 BBA Aviation United Kingdom 44 73,087 51,663 0 DS Smith United Kingdom 63 C 1,230,680* 282,957* Berendsen United Kingdom 6 United Kingdom 20 Not public United Kingdom 29 123,777 219,830 United Kingdom 57 C 7,433 56,233 2 United Kingdom 74 C 84,727 27,497 4 Eurasian Natural Resources United Kingdom 78 D 26,366,645* 1,003,469* Corporation 34 35 Appendix IV - Investor members Investor signatories

CDP works with investors globally to advance the standardised format. To learn more about CDP’s Bank Handlowy w Warszawie SA Ceres investment opportunities and reduce the risks posed member offering and becoming a member, please 722 financial institutions Bank Leumi Le Israel CERES-Fundação de Seguridade Social Bank of America Lynch Change Investment Management by climate change by asking over 5,000 of the world’s contact us or visit the investor pages at with assets of US$87 trillion Bank of Montreal Chinatrust Financial Holding Co Limited largest companies to report their climate strategies, https://www.cdp.net/en-US/WhatWeDo/ were signatories to the Bank of Nova Scotia (Scotiabank) Christian Brothers Investment Services Inc. Bank Sarasin & Cie AG Christian Super GHG emissions and energy use through CDP’s Pages/investors.aspx CDP 2013 climate change Bank Vontobel Christopher Reynolds Foundation information request dated Bankhaus Schelhammer & Schattera Church Commissioners for England Kapitalanlagegesellschaft m.b.H. st Church of England Pensions Board ABRAPP - Associação Brasileira das Mongeral Aegon Seguros e Previdência S.A. 2013 INVESTOR SIGNATORY February 1 2013 Bankia CI Mutual Funds' Signature Global Advisors Entidades Fechadas de Previdência BREAKDOWN - Region Bankinter City Developments Limited Morgan Stanley Complementar BankInvest ClearBridge Investments National Australia Bank 3Sisters Sustainable Management LLC bankmecu Climate Change Capital Group Ltd ATP Group Africa (15) Aberdeen Asset Management Banque Degroof CM-CIC Asset Management Aviva Investors Neuberger Berman Aberdeen Immobilien KAG mbH Banque Libano-Francaise Colonial First State Global Asset Management Barclays Newton Investment Management Limited ABRAPP - Associação Brasileira das Entidades Comerica Incorporated Bank of America Fechadas de Previdência Complementar Basellandschaftliche Kantonalbank Comgest Achmea NV BASF Sociedade de Previdência Complementar Bendigo and Adelaide Bank Nordea Bank America - Latin & Caribbean (71) Commerzbank AG Active Earth Investment Management Basler Kantonalbank CommInsure Norges Bank Investment Management BlackRock Acuity Investment Management Bâtirente Commonwealth Bank of Australia (NBIM) Addenda Capital Inc. Baumann and Partners S.A. Commonwealth Superannuation Corporation Boston Common Asset Management, LLC Northwest and Ethical Investments L.P. (NEI America - North (174) Advanced Investment Partners Bayern LB Compton Foundation, Inc. California Public Employees' Retirement Investments) Advantage Asset Managers (Pty) Ltd BayernInvest Kapitalanlagegesellschaft mbH Concordia Versicherungs-Gesellschaft a.G. System (CalPERS) Aegon N.V. BBC Pension Trust Ltd Connecticut Retirement Plans and Trust Funds PFA Pension AEGON-INDUSTRIAL Fund Management Co., Ltd BBVA Conser Invest California State Teachers' Retirement AFP Integra Bedfordshire Pension Fund Robeco Asia (71) Co-operative Asset Management System (CalSTRS) AIG Asset Management Beetle Capital Co-operative Financial Services (CFS) AK PORTFÖY YÖNETİMİ A.Ş. Befimmo SA Calvert Group, Ltd. RobecoSAM AG Credit Suisse AKBANK T.A.Ş. Bendigo and Adelaide Bank Daegu Bank Rockefeller Asset Management Alberta Investment Management Corporation Bentall Kennedy Daesung Capital Management Capricorn Investment Group Australia and New Zealand (61) (AIMCo) Berenberg Bank Daiwa Asset Management Co. Ltd. Royal Bank of Scotland Group Alberta Teachers Retirement Fund Catholic Super Berti Investments Daiwa Securities Group Inc. Alcyone Finance Sampension KP Livsforsikring A/S BioFinance Administração de Recursos de Dalton Nicol Reid CCLA Investment Management Ltd AllenbridgeEpic Investment Advisers Terceiros Ltda Danske Bank A/S Schroders Alliance Trust BlackRock Daiwa Asset Management Co. Ltd. Europe - North & Western (294) de Pury Pictet Turrettini & Cie S.A. Allianz Elementar Versicherungs-AG Blom Bank SAL DekaBank Deutsche Girozentrale Scottish Widows Investment Partnership Allianz Global Investors AG Blumenthal Foundation Generation Investment Management Delta Lloyd Asset Management Allianz Group BNP Paribas Investment Partners Skandinaviska Enskilda Banken AB (SEB AB) Desjardins Financial Security Goldman Sachs Group Inc. Altira Group BNY Mellon Europe - Southern & Eastern (39) Deutsche Asset Management Sompo Japan Insurance Inc. Amalgamated Bank BNY Mellon Service Kapitalanlage-Gesellschaft Investmentgesellschaft mbH Henderson Global Investors mbH Amlin AG Standard Chartered Boston Common Asset Management, LLC HSBC Holdings plc AMP Capital Investors Deutsche Postbank AG Brasilprev Seguros e Previdência S/A. Sun Life Financial Inc AmpegaGerling Investment GmbH Development Bank of Japan Inc. Legg Mason, Inc. Breckinridge Capital Advisors Amundi AM Development Bank of the Philippines (DBP) Sustainable Insights Capital Management 0 50 100 150 200 250 300 Pensions KLP ANBIMA – Associação Brasileira das Entidades dos Dexia Asset Management Mercados Financeiro e de Capitais British Coal Staff Superannuation Scheme Dexus Property Group London Pensions Fund Authority TD Asset Management Antera Gestão de Recursos S.A. British Columbia Investment Management DLM INVISTA ASSET MANAGEMENT S/A APG Group Corporation (bcIMC) The Wellcome Trust DNB ASA Mobimo Holding AG AQEX LLC Brown Advisory 1 CDP INVESTOR SIGNATORIES & ASSETS Domini Social Investments LLC Aquila Capital BT Financial Group 2013 INVESTOR SIGNATORY Dongbu Insurance (US$ TRILLION) AGAINST TIME Arisaig Partners BT Investment Management Doughty & Co. INCREASING NUMBER OF INVESTORS REQUESTING CLIMATE DATA Breakdown - Type Arkx Investment Management Busan Bank DWS Investments ARMA PORTFÖY YÖNETİMİ A.Ş. CAAT Pension Plan • THROUGHInvestor CDP CDP Signatories DZ Bank Armstrong Asset Management Cadiz Holdings Limited Earth Capital Partners LLP • Investor CDP Signatory Assets 247 Mainstream Asset Managers ASM Administradora de Recursos S.A. CAI Corporate Assets International AG East Sussex Pension Fund ASN Bank Caisse de dépôt et placement du Québec • Investor signatory assets 167 Pension funds Ecclesiastical Investment Management Assicurazioni Generali Caisse des Dépôts Ecofi Investissements - Groupe Credit Cooperatif • Number of investor signatories 160 Banks ATI Asset Management Caixa de Previdência dos Funcionários do Banco do Nordeste do Brasil (CAPEF) Edward W. Hazen Foundation 51 Insurance Atlantic Asset Management Caixa Econômica Federal EEA Group Ltd ATP Group 35 95 155 225 315 385 475 534 551 655 722 39 SRI Asset Managers Caixa Geral de Depósitos Eko Auriel Capital Management CaixaBank Elan Capital Partners 4.5 10 21 31 41 57 55 64 71 78 87 34 Foundations Australia and New Zealand Banking Group California Public Employees' Retirement System Element Investment Managers Australian Ethical Investment 27 Other (CalPERS) ELETRA - Fundação Celg de Seguros e Previdência 800 100 AustralianSuper California State Teachers' Retirement System Environment Agency Active Pension fund Avaron Asset Management AS (CalSTRS) Epworth Investment Management 90 Aviva California State Treasurer 700 Equilibrium Capital Group Aviva Investors Calvert Investment Management, Inc equinet Bank AG 80 Group Canada Pension Plan Investment Board (CPPIB) Erik Penser Fondkommission 600 Baillie Gifford & Co. Canadian Imperial Bank of Commerce (CIBC) Erste Asset Management 70 BaltCap Canadian Labour Congress Staff Pension Fund Erste Group Bank AG Banco Bradesco S/A CAPESESP 500 Essex Investment Management Company, LLC 60 Banco Comercial Português SA Capital Innovations, LLC ESSSuper Banco de Credito del Peru BCP Capricorn Investment Group Ethos Foundation 400 50 Banco de Galicia y Buenos Aires S.A. CARE Super Etica SGR Banco do Brasil Previdência Carmignac Gestion Eureka Funds Management 40 Banco do Brasil S/A Caser Pensiones E.G.F.P 300 Eurizon Capital SGR S.p.A. Banco Espírito Santo SA Cathay Financial Holding Evangelical Lutheran Church in Canada Pension 30 Banco Nacional de Desenvolvimento Economico e Catherine Donnelly Foundation Plan for Clergy and Lay Workers Social (BNDES) 200 Catholic Super Evangelical Lutheran Foundation of Eastern Canada

20 Assets (US$ Trillions) Banco Popular Espanol Number of Signatories CBF Church of England Funds Evli Bank Plc Banco Sabadell CBRE Group, Inc. F&C Asset Management 100 10 Cbus Superannuation Fund FACEB – Fundação de Previdência dos Banesprev – Fundo Banespa de Seguridade Social CCLA Investment Management Ltd Empregados da CEB 0 0 Banesto Celeste Funds Management FAELCE – Fundacao Coelce de Seguridade Social BANIF SA Central Finance Board of the Methodist Church 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 36 37 Investor signatories continued

FAPERS- Fundação Assistencial e Previdenciária Hang Seng Bank Living Planet Fund Management Company S.A. Norges Bank Investment Management (NBIM) Rose Foundation for Communities and the TfL Pension Fund da Extensão Rural do Rio Grande do Sul Hanwha Asset Management Company North Carolina Retirement System Environment The ASB Community Trust FASERN - Fundação COSERN de Previdência Harbour Asset Management Local Authority Pension Fund Forum Northern Ireland Local Government Officers' Rothschild The Brainerd Foundation Complementar Harrington Investments, Inc Local Government Super Superannuation Committee (NILGOSC) Royal Bank of Canada The Bullitt Foundation Fédéris Gestion d'Actifs Hauck & Aufhäuser Asset Management GmbH LOGOS PORTFÖY YÖNETIMI A.Ş. Northern Star Group Royal Bank of Scotland Group The Central Church Fund of Finland FIDURA Capital Consult GmbH Hazel Capital LLP London Pensions Fund Authority Northern Trust RPMI Railpen Investments The Children's Foundation FIM Asset Management Ltd HDFC Bank Ltd Lothian Pension Fund Northward Capital RREEF Investment GmbH The Clean Yield Group FIM Services Healthcare of Ontario Pension Plan (HOOPP) LUCRF Super Northwest and Ethical Investments L.P. (NEI Russell Investments The Collins Foundation Financiere de l'Echiquier Investments) Helaba Invest Kapitalanlagegesellschaft mbH Sampension KP Livsforsikring A/S The Co-operators Group Limited FIPECq - Fundação de Previdência Complementar Nykredit Henderson Global Investors MagNet Magyar Közösségi Bank Zrt. Samsung Fire & Marine Insurance The Daly Foundation dos Empregados e Servidores da FINEP, do IPEA, OceanRock Investments Inc. do CNPq Hermes Fund Managers MainFirst Bank AG Samsung Life Insurance The Environmental Investment Partnership LLP Oddo & Cie FIRA. - Banco de Mexico HESTA Super Malakoff Médéric Samsung Securities The Hartford Financial Services Group, Inc. oeco capital Lebensversicherung AG First Affirmative Financial Network, LLC HIP Investor MAMA Sustainable Incubation AG Sanlam The Joseph Rowntree Charitable Trust ÖKOWORLD First Commercial Bank Holden & Partners plc Santa Fé Portfolios Ltda The Korea Teachers Pension Old Mutual plc First State Investments HSBC Global Asset Management (Deutschland) Mandarine Gestion Santam Ltd The New School OMERS Administration Corporation First State Superannuation Scheme GmbH MAPFRE Sarasin & Partners The Oppenheimer Group Ontario Pension Board First Swedish National Pension Fund (AP1) HSBC Holdings plc Maple-Brown Abbott SAS Trustee Corporation The Pension Plan For Employees of the Public Ontario Teachers' Pension Plan Firstrand Limited HSBC INKA Internationale Kapitalanlagegesellschaft Marc J. Lane Investment Management, Inc. Sauren Finanzdienstleistungen GmbH & Co. KG Service Alliance of Canada mbH OP Fund Management Company Ltd Five Oceans Asset Management Maryland State Treasurer Schroders The Pinch Group Humanis Oppenheim & Co Limited Florida State Board of Administration (SBA) Matrix Asset Management Scottish Widows Investment Partnership The Presbyterian Church in Canada Hyundai Marine & Fire Insurance Co., Ltd. Oppenheim Fonds Trust GmbH Folketrygdfondet Matrix Group SEB Asset Management AG The Russell Family Foundation Hyundai Securities Co., Ltd. Opplysningsvesenets fond (The Norwegian Church Second Swedish National Pension Fund (AP2) The Sandy River Charitable Foundation Folksam McLean Budden Endowment) IBK Securities Seligson & Co Fund Management Plc The Sisters of St. Ann Fondaction CSN MEAG MUNICH ERGO Asset Management GmbH OPSEU Pension Trust (OP Trust) IDBI Bank Ltd Sentinel Funds The Standard Bank Group Fondation de Luxembourg Mediobanca Oregon State Treasurer IDFC Ltd SERPROS - Fundo Multipatrocinado The Sustainability Group Forma Futura Invest AG Meeschaert Gestion Privée Orion Energy Systems Illinois State Board of Investment Service Employees International Union Benefit The United Church of Canada - General Council Fourth Swedish National Pension Fund, (AP4) Meiji Yasuda Life Insurance Company Osmosis Investment Management Ilmarinen Mutual Pension Insurance Company Funds The University of Edinburgh Endowment Fund FRANKFURT-TRUST Investment Gesellschaft mbH Mendesprev Sociedade Previdenciária Panahpur Impax Group plc Servite Friars The Wellcome Trust Friends Fiduciary Corporation Merck Family Fund Park Foundation Independent Planning Group Seventh Swedish National Pension Fund (AP7) Third Swedish National Pension Fund (AP3) Fubon Financial Holdings Mercy Investment Services, Inc. Parnassus Investments Indusind Bank Shiga Bank, Ltd. Threadneedle Asset Management Fukoku Capital Management Inc Mergence Investment Managers Pax World Funds Industrial Alliance Insurance and Financial Services Shinhan Bank Tobam FUNCEF - Fundação dos Economiários Federais Inc. MetallRente GmbH Pensioenfonds Vervoer Shinhan BNP Paribas Investment Trust Tokio Marine & Nichido Fire Insurance Co., Ltd. Fundação AMPLA de Seguridade Social - Industrial Bank Metrus – Instituto de Seguridade Social Pension Denmark Management Co., Ltd Brasiletros Toronto Atmospheric Fund Industrial Bank of Korea Metzler Investment Gmbh Pension Fund for Danish Lawyers and Economists Shinkin Asset Management Co., Ltd Fundação Atlântico de Seguridade Social Trillium Asset Management, LLC Industrial Development Corporation MFS Investment Management Pension Protection Fund Kapitalanlagegesellschaft mbH Fundação Attilio Francisco Xavier Fontana Triodos Bank Industry Funds Management Midas International Asset Management Pensionsmyndigheten Signet Capital Management Ltd Fundação Banrisul de Seguridade Social Tri-State Coalition for Responsible Investment Inflection Point Partners Miller/Howard Investments Perpetual Investments Skandia Fundação BRDE de Previdência Complementar - Tryg ING Group Mirae Asset Global Investments Co. Ltd. PETROS - Fundação Petrobras de Seguridade Skandinaviska Enskilda Banken AB (SEB AB) ISBRE Turner Investments Insight Investment Management (Global) Ltd Mirae Asset Securities Social Smith Pierce, LLC Fundação Chesf de Assistência e Seguridade UBS Social – Fachesf Instituto Infraero de Seguridade Social - Mirvac Group PFA Pension SNS Asset Management Unibail-Rodamco Fundação Corsan - dos Funcionários da INFRAPREV Missionary Oblates of Mary Immaculate PGGM Social(k) UniCredit Companhia Riograndense de Saneamento Instituto Sebrae De Seguridade Social - Mistra, Foundation for Strategic Environmental Phillips, Hager & North Investment Management Sociedade de Previdencia Complementar da Fundação de Assistência e Previdência Social do SEBRAEPREV Research Ltd. Dataprev - Prevdata Union Asset Management Holding AG BNDES - FAPES Insurance Australia Group Mitsubishi UFJ Financial Group, Inc. PhiTrust Active Investors Socrates Fund Management Union di Banche Italiane S.c.p.a FUNDAÇÃO ELETROBRÁS DE SEGURIDADE IntReal KAG Mitsui Sumitomo Insurance Co.,Ltd Pictet Asset Management SA Solaris Investment Management Union Investment Privatfonds GmbH SOCIAL - ELETROS Investec Asset Management Mizuho Financial Group, Inc. Pinstripe Management GmbH Sompo Japan Insurance Inc. Unionen Fundação Forluminas de Seguridade Social - Investing for Good Mn Services Pioneer Investments Unipension FORLUZ Sonen Capital LLC Irish Life Investment Managers Momentum Manager of Managers (Pty) Ltd Piraeus Bank UNISON staff pension scheme Fundação Itaipu BR - de Previdência e Assistência Sopher Investment Management Social Itaú Asset Management Monega Kapitalanlagegesellschaft mbH PKA Soprise! LLP UniSuper FUNDAÇÃO ITAUBANCO Itaú Unibanco Holding S.A. Mongeral Aegon Seguros e Previdência S.A. Pluris Sustainable Investments SA SouthPeak Investment Management Unitarian Universalist Association Fundação Itaúsa Industrial Janus Capital Group Inc. Morgan Stanley PNC Financial Services Group, Inc. SPF Beheer bv United Methodist Church General Board of Pension and Health Benefits Fundação Promon de Previdência Social Jarislowsky Fraser Limited Mountain Cleantech AG Pohjola Asset Management Ltd Spring Water Asset Management, LLC United Nations Foundation Fundação Rede Ferroviaria de Seguridade Social Jessie Smith Noyes Foundation MTAA Superannuation Fund Polden Puckham Charitable Foundation Sprucegrove Investment Management Ltd Unity Trust Bank – Refer JOHNSON & JOHNSON SOCIEDADE Mutual Insurance Company Pension-Fennia Portfolio 21 Investments Standard Chartered PREVIDENCIARIA Universities Superannuation Scheme (USS) FUNDAÇÃO SANEPAR DE PREVIDÊNCIA E Nanuk Asset Management Porto Seguro S.A. Standard Chartered Korea Limited ASSISTÊNCIA SOCIAL - FUSAN JPMorgan Chase & Co. Vancity Group of Companies Natcan Investment Management POSTALIS - Instituto de Seguridade Social dos Standard Life Investments Fundação Sistel de Seguridade Social (Sistel) Jubitz Family Foundation Correios e Telégrafos VCH Vermögensverwaltung AG Nathan Cummings Foundation, The State Bank of India Fundação Vale do Rio Doce de Seguridade Social Jupiter Asset Management Power Finance Corporation Ventas Inc National Australia Bank State Street Corporation - VALIA Kaiser Ritter Partner Privatbank AG (Schweiz) PREVHAB PREVIDÊNCIA COMPLEMENTAR Veris Wealth Partners National Bank of Canada StatewideSuper FUNDIÁGUA - FUNDAÇÃO DE PREVIDENCIA KB Kookmin Bank PREVI Caixa de Previdência dos Funcionários do Veritas Investment Trust GmbH COMPLEMENTAR DA CAESB National Bank Of Greece Stockland KBC Asset Management NV Banco do Brasil Vermont State Treasurer Futuregrowth Asset Management National Grid Electricity Group of the Electricity Storebrand ASA KBC Group Supply Pension Scheme PREVIG Sociedade de Previdência Complementar Vexiom Capital, L.P. GEAP Fundação de Seguridade Social Strathclyde Pension Fund KCPS and Company National Grid UK Pension Scheme Prologis VicSuper General Equity Group AG Stratus Group KDB Asset Management Co., Ltd. National Pensions Reserve Fund of Ireland Provinzial Rheinland Holding Victorian Funds Management Corporation Generali Deutschland Holding AG Sumitomo Mitsui Financial Group KDB Daewoo Securities Co. Ltd. National Union of Public and General Employees Prudential Investment Management VIETNAM HOLDING ASSET MANAGEMENT LTD. Generation Investment Management Sumitomo Mitsui Trust Holdings, Inc. KEPLER-FONDS Kapitalanlagegesellschaft m. b. H. (NUPGE) Vinva Investment Management Genus Capital Management Sun Life Financial Inc. KEVA Nativus Sustainable Investments Psagot Investment House Ltd Voigt & Collegen German Equity Trust AG Superfund Asset Management GmbH KeyCorp Natixis SA PSP Investments VOLKSBANK INVESTMENTS Gjensidige Forsikring ASA SUSI Partners AG KfW Bankengruppe Natural Investments LLC Q Capital Partners Co. Ltd Waikato Community Trust Global Forestry Capital S.a.r.l. Sustainable Capital Killik & Co LLP Nedbank Limited QBE Insurance Group Walden Asset Management, a division of Boston GLS Gemeinschaftsbank eG Sustainable Development Capital LLP Kiwi Income Property Trust Needmor Fund Rabobank Trust & Investment Management Company Goldman Sachs Group Inc. Sustainable Insight Capital Management Kleinwort Benson Investors Nelson Capital Management, LLC Raiffeisen Fund Management Hungary Ltd. WARBURG - HENDERSON GOOD GROWTH INSTITUT für globale Svenska Kyrkan, Church of Sweden Kapitalanlagegesellschaft für Immobilien mbH KlimaINVEST Nest Sammelstiftung Raiffeisen Kapitalanlage-Gesellschaft m.b.H. Vermögensentwicklung mbH Svenska Kyrkans Pensionskassa WARBURG INVEST KLP Insurance Neuberger Berman Raiffeisen Schweiz Governance for Owners Swedbank KAPITALANLAGEGESELLSCHAFT MBH Korea Investment Management New Alternatives Fund Inc. Rathbone Greenbank Investments Government Employees Pension Fund (“GEPF”), Swift Foundation Water Asset Management, LLC Republic of South Africa Korea Technology Finance Corporation New Amsterdam Partners LLC RCM (Allianz Global Investors) Swiss Re Wells Fargo & Company GPT Group KPA Pension New Forests Real Grandeza Fundação de Previdência e Assistência Social Swisscanto Holding AG West Yorkshire Pension Fund Greater Manchester Pension Fund La Banque Postale Asset Management New Mexico State Treasurer REI Super Sycomore Asset Management WestLB Mellon Asset Management (WMAM) Green Cay Asset Management La Financiere Responsable New York City Employees Retirement System Reliance Capital Ltd Syntrus Achmea Asset Management Westpac Banking Corporation Green Century Capital Management Lampe Asset Management GmbH New York City Teachers Retirement System Representative Body of the Church in Wales T. Rowe Price WHEB Asset Management GROUPAMA EMEKLİLİK A.Ş. Landsorganisationen i Sverige New York State Common Retirement Fund (NYSCRF) Resolution T.GARANTİ BANKASI A.Ş. White Owl Capital AG GROUPAMA SİGORTA A.Ş. LaSalle Investment Management Newton Investment Management Limited Resona Bank, Limited T.SINAİ KALKINMA BANKASI A.Ş. Woori Bank Groupe Crédit Coopératif LBBW - Landesbank Baden-Württemberg NGS Super Reynders McVeigh Capital Management Tata Capital Limited Woori Investment & Securities Groupe Investissement Responsable Inc. LBBW Asset Management Investmentgesellschaft YES BANK Limited mbH NH-CA Asset Management River Twice Capital Advisors, LLC TD Asset Management GROUPE OFI AM York University Pension Fund LD Lønmodtagernes Dyrtidsfond Nikko Asset Management Co., Ltd. RLAM Teachers Insurance and Annuity Association – Grupo Financiero Banorte SAB de CV College Retirement Equities Fund Youville Provident Fund Inc. Legal & General Investment Management Nipponkoa Insurance Company, Ltd Robeco Grupo Santander Brasil Telluride Association Zegora Investment Management Legg Mason, Inc. Nissay Asset Management Corporation RobecoSAM AG Gruppo Bancario Credito Valtellinese Tempis Capital Management Co., Ltd. Zevin Asset Management LGT Capital Management Ltd. NORD/LB Kapitalanlagegesellschaft AG Robert & Patricia Switzer Foundation Gruppo Monte Paschi Terra Forvaltning AS Zurich Cantonal Bank LIG Insurance Co., Ltd. Nordea Bank Rockefeller Asset Management Guardians of New Zealand Superannuation TerraVerde Capital Management LLC Light Green Advisors, LLC Norfolk Pension Fund 38 39 Notes

Global Advisor and Report Writer

CDP Gold Consultancy Partners 2013

CDP Silver UK Consultancy Partners 2013

CDP Silver UK Education & Training Partner 2013

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CDP Contacts PwC Contacts CDP Board of Trustees

Paul Dickinson Emma Cox Chairman: Executive Chairman Partner Alan Brown Schroders Paul Simpson Celine Herweijer Chief Executive Officer Partner James Cameron Climate Change Capital & ODI Frances Way Jonathan Grant Co-Chief Operating Officer Director Ben Goldsmith WHEB Sue Howells Simon Messenger Co-Chief Operating Officer Project Lead Chris Page Rockefeller Philanthropy Daniel Turner Ellen Danielsson Advisors Head of Disclosure Assistant Project Manager Dr. Christoph Schroeder James Hulse PricewaterhouseCoopers Head of Investor Initiatives LLP Jeremy Smith 7, More London James Howard London, SE1 2RT Takejiro Sueyoshi Director, Disclosure United Kingdom Tel: +44 (0) 20 7583 5000 Tessa Tennant Rosie Mackenzie Senior Project Officer Contact details can be found Martin Wise at the following web address: Relationship Capital Partners CDP UK www.pwc.com/sustainability 40 Bowling Green Lane London, EC1R 0NE United Kingdom Tel: +44 (0) 20 7970 5660

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Our sincere thanks are extended to the following: Allen & Overy, Board and Technical Working Group of Climate Disclosure Standards Board, European Commission, Freshfields, Institutional Investors Group on Climate Change, Investor Group on Climate Change, Investor Network on Climate Risk, Skadden Arps, UK Department of Environment Food and Rural Affairs, UK Foreign & Commonwealth Office, UN Environment Programme Finance Initiative, UNFCCC Secretariat, UN Global Compact, UN Principles for Responsible Investment, World Business Council for Sustainable Development, World Resources Institute

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