CDP Climate Change Report 2016 Nordic edition

Written on behalf of over 800 institutional investors with assets of US$100 trillion

CDP Nordic Report | October 2016

1 CDP 2016 climate change scoring partners Contents

CDP works with a number of partners to deliver the and the responsibilities are shared between multiple scores for all our responding companies. partners. These partners are listed below along with the geographical regions in which they provide the In 2016, CDP worked with RepRisk, a business 5 Foreword from CDP Chief Executive Officer scoring. All scoring partners complete training to ensure intelligence provider specializing in ESG risks 7 Closing the gap in Non-Financial Reporting the methodology and guidance are applied correctly, (www.reprisk.com), who provided additional risk and the scoring results go through a comprehensive research and data into the proposed A-List companies 8 Investor insights from changes in the investment landscape quality assurance process before being published. In to assess whether they were severe reputational issues 12 CDP Investor signatories and members some regions there is more than one scoring partner that could put their leadership status into question. 13 Nordic cooperation on high emitting sectors 14 Overview of the 2016 Nordic climate results 19 Communicating progress 20 Nordic companies on the global 2016 A List 21 Investing in CDP’s Global Climate A List: strong performance by leaders 23 Case study: Health Care, Novo Nordisk Australia & New Zealand, Benelux, Canada, DACH, Hong Kong, India, Ireland, Italy, Japan, Nordic, Russia, SE Asia, South Africa, Taiwan, UK, USA. 25 Natural capital and climate change 27 Case study: Materials, Metsä Board 28 We Mean Business: Commit to Action 30 List of Nordic companies disclosing climate data 32 Appendix I: List of CDP signatories

North America* Central and Eastern Europe (CEE) China

France Latin America, Turkey Japan, Korea

Brazil Korea Japan

Important Notice

The contents of this report may be used by anyone providing acknowledgement is given to CDP Europe (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.

CDP have prepared the data and analysis in this report based on responses to the CDP 2016 information request. No representation or warranty (express or implied) is given by CDP 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, CDP 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 is based on their judgment at the time of this report and are subject to change without notice due to economic, Iberia (Spain & Portugal) All regions Japan 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, 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 *Aligned Incentives are retained as an alternative scoring partner in the event of a conflict of interest. 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.

‘CDP Europe’ and ‘CDP’ refer to CDP Worldwide (Europe) gGmbH, Registered Charity no. HRB119156 B | Local court of Charlottenburg, Germany. Executive Directors: Simon Barker, Sue Howells, Steven Tebbe

© 2016 CDP Europe. All rights reserved. 2 3 CDP foreword

The Paris Agreement – unprecedented in speed of ratification – and the adoption of the Sustainable Development Goals (SDGs) marked the start of a new strategy for the world, with a clear message for The work of CDP is crucial to the success businesses: the low-carbon revolution is upon us. By of global green business in the 21st agreeing to limit global temperature rises to well below century. CDP is harnessing the power 2°C, governments have signaled an end to the fossil fuel of information and investor activism to era and committed to transforming the global economy. encourage a more effective corporate Paul Simpson response to climate change. Chief Executive Officer, The choice facing companies and investors has Now, we are poised to fill the glass. We welcome CDP never been clearer: seize the opportunities of a the FSB’s new Task Force on Climate-related carbon-constrained world and lead the way in Financial Disclosures, building on CDP’s work and shaping our transition to a sustainable economy; or preparing the way for mandatory climate-related continue business as usual and face serious risks disclosure across all G20 nations. We look forward Ban Ki-Moon, – from regulation, shifts in technology, changing to integrating the Task Force recommendations into consumer expectations and climate change itself. our tried and tested disclosure system and working UN Secretary-General Measurement and CDP’s data shows that hundreds of companies together to take disclosure to the next level. transparency are are already preparing for the momentous changes where meaningful ahead, but many are yet to grapple with this We know that business is key to enabling the global climate action starts, new reality. economy to achieve – and exceed – its climate goals. and as governments This report sets the baseline for corporate climate work to implement Investors are poised to capitalize on the opportunities action post-Paris. In future reports, we’ll be tracking the Paris Agreement, that await. Some of the biggest index providers in the progress against this baseline to see how business is CDP will be shining a world, including S&P and STOXX, have created low- delivering on the low-carbon transition and enabling spotlight on progress carbon indices to help investors direct their money investors to keep score. Already, some leading and driving a race to towards the sustainable companies of the future. companies in our sample – including some of the net-zero emissions. Meanwhile, New York State’s – the highest emitters – are showing it’s possible to reduce third largest in the United States – has built a US$2 emissions while growing revenue, and we expect to billion low-carbon index in partnership with Goldman see this number multiply in future years. Sachs, using CDP data. Measurement and transparency are where With trillions of dollars’ worth of assets set to be meaningful climate action starts, and as governments at risk from climate change, investors are more work to implement the Paris Agreement, CDP will be focused than ever on winners and losers in the shining a spotlight on progress and driving a race to low-carbon transition. Information is fundamental net-zero emissions. to their decisions. Through CDP, more than 800 institutional investors with assets of over US$100 The Paris Agreement and the SDGs are the new trillion are asking companies to disclose how they are compass for business. Companies across all sectors managing the risks posed by climate change. Their now have the chance to create this new economy demands don’t stop there: international coalitions of and secure their future in doing so. High-quality investors with billions of dollars under management information will signpost the way to this future for are requesting greater transparency on climate risk at companies, investors and governments – never has the AGMs of the world’s biggest polluters. there been a greater need for it.

The glass is already more than half full on environmental disclosure. Over fifteen years ago, when we started CDP, climate disclosure was nonexistent in capital markets. Since then our annual request has helped bring disclosure into the mainstream. Today some 5,800 companies, representing close to 60% of global market capitalization, disclose through CDP.

4 5 Closing the gap in Non-Financial Reporting

Investors despise being kept in the dark. They worry about the issues they don’t see or understand. Disclosure of Environmental, Social and Governance (ESG) information is an essential tool for investors Disclosure by investors on environmental to holistically evaluate risks and opportunities, while matters, such as carbon foot-printing, will allowing companies to benchmark their performance help in the global 2 degrees goal and the against peers. Ultimately if companies want to woo transition to a low-carbon economy. investors and reduce their cost of capital, they need to be good at reporting. Steven Tebbe, Managing Director Europe, Peter de Proft, CDP In an attempt to correct the world’s largest market countries on consistent, climate-related financial failure, European policymakers created the first, risk disclosures. Those recommendations will be Director General, legally-binding directive requiring companies across made public before the end of this year and build on Europe to report ESG data as of this year. The CDP’s work and expertise. We salute the leadership EFAMA (European so-called Non-Financial Reporting Directive (NFRD) of the Task-Force and the political impulse this will Fund and Association) recognizes the value of non-financial reporting for give to the low-carbon transition in the world’s major Non-financial reporting catalysing our transition to a low-carbon economy. economies. has come a long way over the last decade, This Directive - while far from perfect - is an Less visible but just as important is another milestone from a dog-and-pony- important step in the right direction. The NFRD currently underway in France. Since the United show to a mainstream would have been the opportunity to create a fully Nations COP21 Paris Agreement of 2015 requires requirement for harmonized, integrated and light-touch corporate “the alignment of financial flows with climate goals”, financial markets reporting system across Europe, thus enabling existing, voluntary, investor climate disclosure should to fully assess investors (and any other stakeholder) to compare become mandatory. Requiring investors to align corporations. companies across Europe on a level-playing field. environmental criteria, climate change-related risks In the short term however, the Directive runs the and scientific decarbonisation targets with their risk of leading to 28 different and possibly weak investment strategies will massively redirect capital national regulations. Imagine playing the UEFA Euro towards the low-carbon economy that is essential for Championship with every team largely making up remaining safely below a 2-degree Celsius warming. their own rules. Many CDP signatories are ahead of the curve. Some Why would the Directive enable “weak” ESG of our avant-garde investors support voluntary reporting? The Directive offers ambiguous initiatives such as the Portfolio Decarbonization descriptions that give EU member states and Coalition, co-founded by CDP, and the Montreal companies much freedom to shape reported data Pledge. BlackRock, the world’s largest asset compliance. In addition, information disclosure manager, called on policy makers to make non- across the supply chain - key to addressing financial reporting a requirement for investment environmental and social issues - is not specified analysis and stop conflicting fiduciary duties. While clearly and target-setting requirements are missing. over 800 institutional investors with US$ 100 trillion Last but not least, the scope of the companies keep calling for more addressed by the legislation is too small in most thorough and comparable environmental corporate countries. In Germany for example, it is likely that data through CDP, nearly 130 already walk-the-talk only 300 companies will be disclosing, while there by applying climate disclosure to their own portfolios. should be scope for about 11.000 companies, In anticipation of this development, policy makers considering their size and impact on our environment in France have passed Article 173 into law, making and society. climate reporting mandatory for institutional investors Fortunately, the NFR Directive will be revised in 2018. such as asset managers, insurance companies, Now is therefore the opportunity for the European pension and social security funds. Commission to design a strong, consistent, EU-wide With about a third of the world’s assets under policy that builds on the expertise of successful management residing in Europe, the EU as a whole practitioners and market-based models. Under the must follow France’s leadership in closing the stewardship of the Financial Stability Board (FSB), a reporting gap. Triggering massive capital reallocation Task-Force on Climate-related Financial Disclosure towards the low-carbon economy will enable the safe (TCFD) is currently drafting a blue print for the G20 and liveable future we all want.

6 7 Investor insights from changes in the investment landscape

The investment landscape is changing rapidly: the Paris energy and climate-related initiatives, with a 4. Environmental disclosure is a fast evolving view to aligning our investment portfolios with field, how is better data, disclosure and Agreement set out a clear direction of travel on climate international global warming containment research affecting investor decision- change for global policy makers, while developments objectives. making?

such as France’s Article 173 and the forthcoming Task A strong barrier lies in Research which still OA: Better data is definitely improving our Force on Climate-related Disclosure are driving greater needs to be encouraged in order to develop possibilities to make informed investments robust indicators. It would provide at issuer optimising return and climate risk. We supported disclosure and accountability from investors. In the level, a comprehensive picture of companies’ a government bid in Sweden to standardise light of this, we ask CEOs from three leading financial environmental impacts and especially direct and disclosure of carbon foot printing of mutual institutions how their organisations are responding and indirect emissions. Most available methodologies funds. We also support data development only cover part of scope 3 emissions. Thus, in and availability in other areas, such as water where they see the key challenges over the next some sectors such as the automotive industry or or political instability where we in fact have Odd Arild, few years. the financial sector, global emissions tend to be developed our own system to predict a coup Storebrand CEO underestimated d’état in different countries.

PH: Hitting the commitments our global leaders PD: In 2015, with the help of a specialized 1. As an investor what are your top priorities In keeping with its socially responsible investment made in Paris will mean changes on a far organization’ services, ERAFP have extended its in helping to realise the goals of the Paris approach, ERAFP will continue to make a major bigger scale than financial markets seem to perimeter and reported on the carbon footprint agreement? And how do you plan to align contribution, in collaboration with the various be preparing for, spreading beyond the most of 87% of its total assets. Beyond its carbon with policy-makers’ 2 degree targets? other stakeholders, to speeding up the financing obvious sectors or niche asset classes. We need footprint, ERAFP made also a comparison of of the energy transition and to exceeding the new thinking to understand how large and far the energy mix attributable to ERAFP’s equity Odd Arild: We have the ambition to be a leading objectives laid down by the Paris treaty. reaching the impacts will be. We need to accept portfolio with an energy generation breakdown star when it comes to sustainable investments. that perfect clarity on policies looks unlikely and for the International Energy Agency’s ‘2°C’ In Storebrand, sustainability is not a niche, it Peter Harrison: The physical impacts and social focus on what we can do: better thinking, better scenarios between 2030 and 2050. The fast is included in our main products and services. and political responses to climate change will be models, better data and a clearer view of how we evolving environmental disclosure tools allow Which means that we literally have 570 billion defining investment themes of the coming years adapt the portfolios we manage. ERAFP to expand and deepen its analyses NOK in carbon reduction programs. We are and decades. We are focusing on building our in order to develop the most efficient de- presently setting an overall group climate target understanding of the implications for economies, carbonization strategies. which will assist us in reaching a 2 degree world, industries and companies; developing tools 3. As an investor how do you balance the and a 2 degree regulatory ambition. to support better investment decisions, needs of the present against the longer term PH: Good investment decisions rely on analysis Philippe Desfosses, and engaging companies to promote more needs of delivering investment/business and analysis needs data. While climate science ERAFP CEO We have three priorities. The first is about transparent and forward-thinking responses. strategies that avoid dangerous levels of is awash with data, most of it of little use in measuring, reporting and lowering our carbon climate change and the associated impacts helping us choose one investment over another. footprint through CDP, Portfolio Decarbonization of these? Rigorous, relevant and consistent data at Coalition (PDC), and Montreal Pledge. The 2. As an investor what are your main drivers company and asset levels – like that the CDP second priority is to work with sustainability for incorporating climate change risks OA: As a pension company, we invest for promotes and collates – is critical to our ability to and carbon optimization in our main pension and opportunities in investment decision customers who will stay with us for up to 50 get past quantifying the scale of the problem and portfolios. We’re also active in financial innovation making? And what are the main barriers? years. Our mission is to create the best possible into deciding how to navigate it. – creating one of the world’s first fossil free, retirement for our customers, both in terms of sustainability optimized index near funds. Our OA: The main drivers are the risks and financial return, but also to support the health of third priority is to be able to report externally in opportunities facing the companies we invest the society where our customers will retire. 5. What would you like to see from companies our group communication to the market on our in. We believe that a tilt in investments from with regards to improved transparency on progress towards a 2 degree world. sustainability laggards to leaders will create PD: As the French public service additional climate change relevant issues? greater returns in our portfolios. We also have pension scheme manager, ERAFP has a very Philippe Desfosses: Since its inception, as a mission to influence and support our entire long-term responsibility towards its contributors OA: We would like to see an increase in part of fulfilling its fiduciary duty towards the sector to professionalize climate risk, through and beneficiaries. Driven by its fiduciary duty, regulation when it comes to climate reporting, Scheme’s contributors and beneficiaries, ERAFP our different products, services and external ERAFP prioritizes long term investments and higher taxes based on polluters pays has been working to determine the impact of engagements like the PDC. The main barrier Peter Harrison, and seeks to raise the awareness about the principle. The real costs of operation have to be its investments on the economy, society and is data access in two areas; lower quality CEO importance of changing economic structures with brought to the surface, so that we as investors the environment. In coming years it will rely and availability of data and lack of regulations a view to de-carbonization. better can adapt our investments to this. not only on the development of appropriate requiring transparency and reporting on climate tools to manage climate challenges but also risk. PH: At Schroders we have a long tradition of PD: As a member of the Institutional Investors on the experience it has already accumulated, long term, fundamental analysis. That experience Group on Climate Change (IIGCC), ERAFP particularly in the area of de-carbonization, such PD: In exchange for the contributions that it convinces us that taking account of structural takes part in engagement initiatives towards as for the low-carbon equity mandate awarded receives from its beneficiaries, the Scheme trends such as climate change does not have to regulatory authorities but also companies in the to or the virtual platform, built with AM undertakes to pay them pension benefits. This mean compromising shorter term performance. most exposed sectors in order to improve their League and Cedrus AM, that managers can is a promise that the youngest among us will In fact, we are not going to be able to help our climate reporting. ERAFP is also involved into the use to demonstrate their capacity to reduce the benefit from following a very long period of time. clients meet their goals, which are typically extractive industries transparency initiative (EITI). carbon intensity of a portfolio of international It is through nothing other than observance far longer than investment cycles, unless we ERAFP would like companies, especially the equities. of our fiduciary duty that we have undertaken establish long term views of critical structural most exposed to climate change risks, trends such as climate change.

8 9 Investor Q&A

communicate on strategic resilience and their in managing climate change risks and PH: The Sustainable Development Goals PD: ERAFP discusses with its asset managers efforts to manage environmental impacts. opportunities? highlight the changes we are seeing in social to understand their portfolio companies’ and political awareness of the challenges facing management and improves it. This year, ERAFP PH: Ours is a forward looking industry and OA: Integration. Integration of competence, and many of the world’s poorest countries and has entered into an agreement with Cedrus AM information that provides more insight into tools. Managing climate risk must be at the core people. This backdrop of growing awareness and amLeague to establish a framework that companies’ future planning will be vital; how of the investment strategy covering all assets in and commitment will have direct implications for asset managers can use to demonstrate their companies assess changes in their industries, all assets classes and not seen as a side activity how we manage money. We are working hard to know-how in the reduction of carbon intensity by the assumptions they make, the strategies they for certain SRI funds. The global pension capital build an understanding of the potential changes applying their expertise in the management of a form and the products they develop. No one has consists of the 40 000 billion USD – that is the into our decision making. notional portfolio of international equities. In the all the answers and more frank discussion on money we need to get to work if we want to coming months, with the benefit of the Cedrus how companies approach the challenge is more create a better, more sustainable future. AM return of experience, ERAFP will be working important than holding on for definitive answers. Custom questions on ways to extend its “low carbon” management PD: Because you can’t manage what you approach, either through investment in open don’t measure, ERAFP thinks that a crucial Storebrand is in the unique position of funds or through a call for tenders to select an 6. What role can engagement play in key of success consists in good measures of facing the risk of increased claims from asset manager to create a dedicated fund. driving corporate behavioural change in the its investment climate related risks. ERAFP is climate change as well as the risks of climate change context and how do you working on it using and questioning current decreased portfolio returns from it. How do measure its success? carbon foot-printing methodologies. Working with your investment activities reduce the risk of Chief Economist recently published the its asset managers on portfolio de-carbonization increased claims from climate change? findings of a survey of 18 Chief Economists. OA: Engagement plays an important role as approaches, disclosing the results of its work on Its finding was pretty bleak in terms of a complement to divestment and portfolio these areas and engaging with companies on OA: Companies with significant greenhouse the level of integration of climate change tilting. We focus engagement within the carbon disclosure are other keys that ERAFP use gas emissions often make for poor financial risk into their forecasting process. What climate areas to group activities within PRI, to manage climate risks and opportunities. investments. In order to make it easier to impacts, in your opinion, do you think that often initiated by CDP. In this way we want to identify the companies we wish to invest in, this lack of macro-level analysis will have on increase availability of data, which is our target PH: We have to build better tools to measure, we rate potential companies according to the effective integration of climate change of engagement. We can then use it to make quantify and analyse the risks and opportunities how sustainable they are. The environmental risks into the investment process? decision on tilting and divestment. climate changes represents to companies and impact is a decisive factor when we make our portfolios. Unless we can do that, we are going assessment, which makes it easier to pinpoint PH: Although it was disappointing that more PD: ERAFP is an extremely engaged asset to struggle to know if we are on the right track. which companies we do not wish to invest in. of the City’s economists don’t build climate owner, maintaining dialogue with many of the Progress has been made with things like carbon We also have an exclusion policy on negative trends into their forecasts, it was not altogether companies the Scheme invested in. Through footprinting, but we are in the foothills of what environmental impact, with exclusion of for surprising. The problem lies with tools and its asset managers, in 2016, ERAFP supported needs to be done. example more than 60 companies based on their models as much as awareness; most in our more than 10 shareholder resolutions on climate poor climate record. industry knows the scale of the challenge and the change. ERAFP is also involved in engagement impacts it will have, but the potential dislocation initiatives through Institutional Investors Group 8. How are you engaging with the Sustainable We also work in the area of financial innovation, does not fit easily with models that are designed on Climate Change (IIGCC), ShareAction/RE100, Development Goals 2030 agenda? and have launched a number of products around linear trends. Unless we can come Carbon Disclosure Project or alongside Mirova recently. They are important not only to our up with better ways of analysing the financial on oil exploration’s themes. Forcing companies OA: SDG sets a clear direction on what the customers, but also as examples to inspire and implications of climate change, we are going to to discuss and think with a long term approach, focus should be to reach a more sustainable show our sector what is really possible. SPP/ find it hard to avoid being surprised down ERAFP is convinced that asset owners’ union, future. We now work to integrate the SDGs in our Storebrand presently have the world’s largest the line. followed by their asset managers, will allow the strategy and targets, so that we ensure that the green bond fund. We have also launched a acceleration of companies’ change, among company’s strategy is in line with the goals of the unique series of products: a near index equity which the most advanced already oriented their world. Already in 2016 we will as a group start to that is fossil free, and optimised development towards the energy transition. report on our contribution to the SDGs. for a high sustainability level of the remaining companies. We are able to deliver a low tracking PH: Engagement is a key part of our PD: In line with its socially responsible investor’s error in comparison to ‘standard’ indices, a low responsibilities as responsible, active investors. status since its beginning, ERAFP has developed fee, and a substantially lower climate related risk. We regularly talk to management teams about a best in class strategy. This approach has had why we think climate change is an important positive results since ERAFP’s portfolio is globally issue, as well as our expectations for disclosure more carbon efficient than its benchmark. By In ERAFP’s “Combating Climate Change” and transparency. That work is intrinsically tied selecting the most sustainable players but approach it says that in order to meet the up with how we approach investing and the also being a strongly engaged investor on ambitions of the SRI charter in limiting benefits are evident in the decisions we make ESG issues, ERAFP aims to contribute to the greenhouse gas emissions investors and the changes we see in companies. Sustainable Development Goals agenda 2030. should “provide tangible evidence of their Its recent signing of the Energy Efficiency Investor approaches impact”. What is your view on Statement at COP 21 and of the 2016 global the current state of Asset Manager’s ability 7. If we were to have a similar conversation in investor letter to the G20 are examples of its to provide this? 3 years’ time, what do you think would be ongoing efforts to limit climate change and some of the key successes for an investor promote a Sustainable Development.

10 11 CDP Investor signatories and members KLP reflections on Nordic cooperation on high emitting sectors

1. Investor signatories by CDP’s investor program – backed in 2016 by 827 In the spring of 2015, KLP began using the CDP For the European electricity sector, NEC, in location sector research reports as a basis for company collaboration with CDP, broadened the engagement signatories representing in excess engagement. KLP, Ilmarinen (Finland), and to include additional Nordic investors. CDP played of US$100 trillion in assets – works with investors to Folksam (Sweden) already engaged with a focus an invaluable role in both drafting and coordinating list of companies through the Nordic Engagement letters among the various lead and supporting understand their data and analysis requirements and Cooperation (NEC). We approached CDP to investors. We were also delighted to learn that offers tools and solutions to help them. determine whether we might receive assistance in a group of Dutch investors had begun a similar using the first CDP sector research report on the initiative using the CDP sector research reports. automotive sector to cosign letters to companies. In our view, the primary strength of the CDP sector Fortunately, CDP proved more than willing to help, Our global data from companies and cities in Investor members research reports is that they reflect a depth of and assisted in drafting letters and assembling response to climate change, water insecurity and analysis – both of the relevant industry and climate ABRAPP - Associação Brasileira das Entidades Fechadas de Previdência company contact information. deforestation and our award-winning investor Complementar change science – that we as a broad-based global research series is driving investor decision-making. ACTIAM Jeanett Bergan, Through this first engagement with NEC and CDP, investor would be unable to match. The reports Our analysis helps investors understand the risks AEGON N.V. Head of Responsible KLP reached out to both the companies featured in offer specific insights on companies’ carbon risk they run in their portfolios. Our insights shape ATP Group Investments, KLP the automotive sector reports, as well as the largest management distilled into actionable engagement engagement and add value not only in financial Aviva Investors non-responding companies in the sector. Due to the points for investors. We look forward to continuing Europe returns but by building a more sustainable future. Group format of the sector research reports, we already these sector-based engagements with CDP for the - 382 = 46% Bank of America Merrill Lynch Bendigo and Adelaide Bank had access to specific recommendations for each reports to come. North America For more information about the CDP investor BlackRock company, even those at the top of the leaderboard. - 223 = 27% program, including the benefits of becoming Boston Common Asset Management, LLC a signatory or member please visit: https:// BP Limited In our view, the The report also included examples of each Latin America & www.cdp.net/Documents/Brochures/investor- British Columbia Investment Management Corporation primary strength of the company’s progress, which the letters highlighted California Public Employees' Retirement System Caribbean as well. The Volkswagen emissions scandal initiatives-brochure-2016.pdf California State Teachers' Retirement System CDP sector research - 73 = 9% Calvert Investment Management, Inc reports is that they erupted a few short months later, suggesting that To view the full list of investor signatories Capricorn Investment Group reflect a depth of the engagement was perhaps more timely than Asia Catholic Super anticipated. - 71 = 9% please visit: https://www.cdp.net/en-US/ CCLA Investment Management Ltd analysis – both of Programmes/Pages/Sig-Investor-List.aspx DEXUS Property Group the relevant industry Australia and NZ Etica SGR and climate change - 67 = 8% Fachesf science – that we as FAPES Fundação Itaú Unibanco a broad-based global Generation Investment Management investor would be Goldman Sachs Asset Management unable to match. 2. Investor signatories by 3. Investor signatories over time Henderson Global Investors type Hermes Fund Managers HSBC Holdings plc Infraprev Number of signatories KeyCorp 100 KLP 95 Legg Mason, Inc. Assets under management London Pensions Fund Authority 92 US$trillion Maine Public Employees Retirement System Morgan Stanley 87 National Australia Bank 827 822 NEI Investments 78 Neuberger Berman

767 New York State Common Retirement Fund Nordea Capital Markets

71 722 Nordea Investment Management 64 Norges Bank Investment Management 655 Overlook Investments Limited 55 PFA Pension 57 POSTALIS - Instituto de Seguridade Social dos Correios e Telégrafos

Asset Managers 551 PREVI 534 Rathbone Greenbank Investments - 363 = 40% 41 Real Grandeza CDP’s sector research for investors provides the best and most tailored About KLP 475 Robeco environmental data in the market. CDP’s team of analysts, voted no. 1 climate Asset Owners Kommunal Landspensjonskasse (KLP) is Norway’s RobecoSAM AG change research provider in 2015 by institutional investors, takes an in-depth - 256 = 30% Rockefeller & Co. largest pension fund managing public employees’

385 look at high emitting industries one-by-one, starting with the automotive 31 Royal Bank of Canada pensions as well as delivering safe and competitive Banks industry, electric utilities, diversified chemicals, metals & mining, cement and Sampension KP Livsforsikring A/S financial and insurance services to the public sector. - 158 = 19% 315 Schroders steel. Forthcoming is research on the oil & gas industry. 21 SEB AB The group has total assets of NOK 577 billion Insurance Sompo Japan Nipponkoa Holdings, Inc The full reports are available to CDP investor signatories and include detailed invested globally in equities, bonds, infrastructure - 39 = 5% 225 Sustainable Insight Capital Management analysis, methodology and recommended areas of engagement for investors and property. KLP has been CDP’s Norwegian 10 TIAA Terra Alpha Investments LLC to raise with company management teams. For more information see: partner since 2007. 155 4.5 The Sustainability Group https://www.cdp.net/en/investor/sector-research 95 The Wellcome Trust UBS 35 University of California University of Toronto

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Whitley Asset Management 12 13 Nordic overview of the 2016 climate results

The challenge of climate change and how to address it Figure 3: Nordic companies responded and not-responded by sector. The total number of Figure 4: 2016 company scores in companies requested to provide information in each sector is presented in parentheses. Nordic region is now firmly on the global agenda. The Paris Agreement has been ratified at unprecedented speed by the 67% 33% Utilities (3) D- D- A international community, including some of the world’s 57% 43% Telecommunication Services (7) D C- 9% 2% 9% D biggest carbon emitters, such as the US, China, India, 76% 24% Materials (21) 3% A- the EU and Brazil, and will enter into force in November 50% 50% Information Technology (16) 16% C-

This historic agreement, with defined goals to limit climate science (“science based targets”), use of 65% 35% Industrials (68) climate change and clear pathways for achieving its internal carbon prices, and the uptake of renewable C 42% 58% Health Care (24) C 25% goals, marks a step-change in the transition to a low- energy. carbon world. 39% 61% Financials (54) B- The CDP scoring looks at the ways companies assess In the Paris Agreement, emissions reductions are a wide range of climate change risks and impacts and 60% 40% Energy (15) 3% 32% talked about at the country level, and national then go on to put policy, strategy and governance in B governments will lead with policy changes and place to manage these risks and impacts. In these 50% 50% Consumer Staples (18) B- B regulation. But companies can move much faster broad terms the Nordic companies are demonstrating 56% 44% Consumer Discretionary (34) A- than governments, and they have an opportunity to that most are already well aware of the climate change demonstrate their leadership, agility and creativity implications to their business and are taking action to in curbing their own substantial emissions. Many address environmental issues beyond initial screenings Share of companies responded Share of companies not-responded A companies had already realised the need for action or assessments, with the average score of B- in the before Paris, and they played an important role in Nordics. One quarter of the companies reached the Figure 5: Reported Scope 3 categories in the Nordic region making that summit a success. Others, however, are leadership level showcasing best practice, with an yet to come on board. impressive 14 companies reaching the A list. However, Business travel of the 260 largest Nordic companies requested to need to measure their emissions, then work out how 1 This chapter is adapted from the executive The first in an annual series, CDP’s Global Climate to reduce them. 1 provide environmental information to investors through summary published at the 2016 CDP’s Global Report establishes the baseline for corporate CDP, almost 45% failed to provide any data for Capital goods Climate Change Report. Please visit www. action on climate. In future reports, CDP will track Although 80% per cent of Nordic companies cdp.net/en/reports/downloads/1228 for full assessment. companies’ progress on reducing greenhouse gas reporting to CDP in 2016 were able to provide data information on global tracking sample and Downstream leased assets statics. emissions in line with the goals of the Paris Agreement Visibility on the road on their own (Scope 1&2) emissions, compared to a significantly lower number of 62% globally, many 2 The analysis in this section primarily focuses against this benchmark. This chapter is adapted from Although companies and governments are starting on 143 Nordic companies selected by their the global results analysis with specific focus on the to realise the benefits of the low-carbon transition, Downstream transportation and distribution Nordic businesses have yet to grasp the importance market capitalization and which submitted 2 of reliable and complete data to decision makers. their CDP responses by 15.7.2016. In total action and practices in the Nordic region , and covers the need for a complete economic shift can make it 204 Nordic corporations, representing 79% only a subset of the data available through CDP. hard for individual companies to start the process of Employee commuting From the reporting companies only 58% (Scope1) of the market capitalization of the Nordic change. A shift in thinking is also needed, to see the and 54% (Scope 2) of responders are independently stock exchanges disclosed climate change This year’s analysis draws particular attention to verifying any portion of emissions data. information to their stakeholders through CDP transition as an opportunity, rather than a restriction. End of life treatment of sold products in 2016. These companies are listed on page corporate climate action on emissions reductions, the 30. adoption of targets based on the most up-to-date In order to achieve this success, however, companies Almost all companies with data verification process Franchises in place are independently verifying at least 70% of emissions data (56% of responding companies Utilities (3) - 1% for Scope 1 and 51% for scope 2). Consequently, Fuel-and-energy-related activities (not included in Scope 1 or 2) Figure 1: Nordic sample by sector. The total number of companies requested to provide climate change information in each almost half of the companies report that there are still sector is presented in parentheses. Telecommunication Services (7)- 3% emissions within the reporting boundary which are not InvestmentsMaterials (21) - 8% included in their disclosure, albeit a minority (28%) of Share of the excluded Scope 1 or 2 emissions data is reported total Nordic Information Technology (16) -6% sample (260) Processing of sold products to be relevant but not yet calculated, or there are e.g. Industrials (68) - 26% facilities, specific GHGs, activities or geographies that Consumer Discretionary (34) - 13% Financials (54) - 21% Information Technology (16) - 6% Utilities (3) - 1% Purchased goods and services are not yet evaluated at all. Health Care (24)- 9% Consumer Staples (18) - 7% Health Care (24)- 9% Materials (21) - 8% 68% of Nordic responding companies are also already UpstreamFinancials leased assets (54) - 21% reporting emissions data for 2 or more named Scope Energy (15) - 6% Industrials (68) - 26% Telecommunication Services (7) - 3% 3 categories, and 52% of companies have external Energy (15) - 6% Upstream transportation and distribution verification/assurance process in place for some Consumer Staples (18)Other* - 7% (15) -6% portion of the Scope 3 emissions. Not evaluated* Figure 2: Nordic 2016 investor sample by region. The total number of companies requested to provide information from Use of soldConsumer products DiscretionarySweden (34) -(119) 13% -46% From the reported Scope 3 categories, “Business Nordic countries is presented in parentheses. travel” is by far the most reported categoryRelevant, with 127 not yet calculated Waste generated in operations Norway (42) -16% companies reporting emissions data on travelling. Share of However, only 109 state this data to be relevant for the total Nordic Finland (42) -16% Relevant, calculated sample overall scope 3 emissions. Not relevant, calculated Denmark (42) -16%Relevant, not yet calculated Denmark (42) -16% Norway (42) -16% Other* (15) -6% Not relevant, explanation provided Not relevant, explanation provided Not evaluated* Finland (42) -16% Sweden (119) -46% * Companies operating and listed the in Nordic stock exhanges but incorporated elsewhere Relevant, calculated Not relevant, calculated 14 * including both responses: “Not evaluated” and blanks 15 Emissions % of In absolute terms both Scope 1 and Scope 2 and while 37% of Nordic companies have set targets Company targets could achieve just one quarter data reported companies emissions reported by Nordic companies have for 2020 and beyond, just 5% set goals for 2030 or What is a Science Based Target? of the emissions reductions required by science; reporting increased significantly from 2015. This is largely due beyond - a situation that must change to achieve a Paris Agreement expected to help close that gap to improved reporting methodologies and revised transition to well-below 2°C. The world’s leading climate scientists and CDP analyses and records the potential impact of None 4% boundaries from a handful of high emitting companies, governments agree that it is essential to limit exisiting targets to examine their compatibility with the The headline figures from global and Nordic analysis while 75% of companies reported to have been able the increase in global average temperature objective of limiting global warming to well-below 2°C. Only Scope 1 10% mask wide variance in performance both at company to reduce absolute global emissions through proactive to below 2°C to mitigate the dangerous Only Scope 2 6% level and at sector level. In the Nordic region the CDP’s global analysis found that if the companies in emission reduction activities, with an average of 9.4% effects of climate change. Businesses, Utilities sector has a lower share of companies with the sample were to achieve their current targets, they Scope 1 & 80% of average global absolute emissions reduced in the which account for a substantial portion of emissions reduction targets, in particular for 2020 and could realise 1Gt CO e (1,000 MtCO e) of reductions Scope 2 reporting year 2015. It’s also clear that the emission global GHG emissions, can align with this 2 2 beyond, while globally the Energy sector clearly stands goal by setting corporate GHG reductions by 2030. This is about one quarter of the 4GtCO2e Emissions data 68% contribution between companies is uneven, with only out with fewer adopted emission reduction targets. targets based on global emissions budgets (4,145 MtCO2e) of reductions that this group of for 2 or more 20 of the highest emitting companies contributing to This comes as no surprise as fossil fuel companies generated by climate models. Companies companies would need to achieve in order to be in named Scope 3 over 85% of the aggregated Scope 1 and Scope 2 continue to undergo a major transition to mitigate globally are raising their ambitions to set line with a 2°C-compatible pathway, leaving a gap of categories emissions. climate change and are generally facing steeper science-based targets and ensure their long- at least 3GtCO2e (3,145 MtCO22e) between where Emission contribution between sectors also vary barriers in the face of this transition. Interestingly, in term sustainability and profitability. companies’ current targets take them, and where they significantly, with typically high emitting Materials the Nordic sample both Financials and Information should be. This gap is equal to nearly 50 per cent of and Utilities sectors contributing to 45% of the total Technology sectors, which are traditionally sectors By making this commitment, companies will these companies’ current total emissions. aggregated emissions while only representing 13% of with lower own emissions, have also lower shares of be agreeing to set science-based emissions The amount of emissions reductions pledged by the reporting companies companies with emission reduction targets. reductions targets in line with the Science- Based Targets Initiative’s Call to Action companies has been increasing steadily from 2011 Business gearing up to go low-carbon, but Given that this data is mostly based on calendar criteria within the next 2 years. to 2015 and we hope to see it close at a faster rate targets lack long-term vision year 2015, and so predates the Paris Agreement, we in future years, as company targets become more Eighty per cent of Nordic companies that provided may reasonably hope to see a jump in longer term Once targets have been developed, ambitious in response to the regulatory certainty data have already set targets (comprising absolute targets in the next report, which will be based on data companies will submit the targets for a offered by the Paris Agreement. The emission and/or intensity targets) to reduce their greenhouse generated after the Paris Agreement. quality check. The Technical Working Group reduction targets reported by Nordic companies gas emissions. Setting targets is not enough, however, of the Science Based Targets Initiative will also capture a positive signal with the reported Companies striving to ensure they are taking without realistic plans for meeting them. Even meeting verify that the targets meet the criteria. absolute targets aiming to an average 4.8% emission meaningful action should set science-based targets; those targets might not be enough if the targets Please visit www.sciencebasedtargets.org reductions annually. this report and its successors will monitor how many themselves are inadequate. for criteria, guidance, methodologies and companies are setting targets in line with the latest tools for setting GHG emission reduction Transition planning: carbon pricing on the There has been significant improvement in recent climate science. targets in line with climate science. For rise, yet companies lag in renewable energy years in the number of companies setting targets for production and consumption 13 Nordic companies are amongst the 94 global further information, you can contact the We emissions reductions, but these targets are in many Even those companies that have not set themselves organisations in total which have publicly committed Mean Business – Commit to Action team at cases unambitious in their time horizon. A significant targets have almost all established emissions to adopt science-based greenhouse gas reduction [email protected] proportion (46%) of the absolute targets adopted by reduction initiatives (97 per cent of all companies targets via the Science Based Targets Initiative. the Nordic sample still extend only to 2015 and 2016, globally, 89 per cent of Nordic companies), although the success and scope of these initiatives have been varied. Companies in the Nordic region reported in Figure 6: Aggregated scope Figure 7: Nordic aggregated scope 1 1 and scope 2 emissions for and scope 2 emissions by sector Figure 8: Nordic companies with emission reduction targets (total and by sector). The total Nordic sample and 20 number of companies that responded is presented in parentheses for each sector. 100% highest emitting companies 60t 100% 94% 52.8 53.1 89% 89% 86% 80% 45t 74% 70% 75% 67% 63% 56% 50% 50%50% 30t 50% 43% 22.4 37% 19.3 30% 26% 25% 15t 22% 24% 19% 25% 13% 5.7 10% 7% 160.8 137.7 4.4 1.6 5% 0.2 0.8 0.5 0% 0%

Share of companies (in %) Share 0% 0% 0% 0% 0% Consumer Discretionary (19) Consumer Staples (9) Energy (9) Financials (21) Health Care (10) Industrials (44) Information Technology (8) Materials (16) Telecommunication Services (4) Utilities (2) Total (142) Aggregated scope 1 and 2 emissions (MtCO2e) Aggregated 0t 0% Total (143) 20 highest emitting Nordic companies Consumer Consumer StaplesEnergy (9) (9) Financials (21) Health Care (10) Industrials (44) Information Materials (16) TelecommunicationUtilities (2) % At least one reduction target % At least one 2020 or beyond reduction target % At least one 2030 or beyond reduction Discretionary (19) Technology (8) Services (4) (absolute or intensity) (absolute or intensity) target (absolute or intensity)

16 17 Communicating progress

Figure 9: Share of companies Figure 10: Development of key trends in the Nordic region Central to CDP’s mission is communicating the progress considers the extent to which the company has setting an internal price of carbon companies have made in addressing environmental assessed environmental issues, risks and impacts in % of responders with Board of senior management issues, and highlighting where risks may be unmanaged. relation to its business; Management which is a measure responsibility for climate change No intention to do so in the next 2 years In order to do so in a more intuitive way, CDP has of the extent to which the company has implemented 14% 86% adopted a streamlined approach to presenting scores actions, policies and strategies to address environmental Intention to do so in the next 2 years 95% in 2016. This new way to present scores measures issues; and Leadership which looks for particular steps a 88% a company’s progress towards leadership using a company has taken which represent best practice in the 8% Companies% of responders setting internal with incentives price fo carbonfor the management 4 step approach: Disclosure which measures the field of environmental management. of climate change issues completeness of the company’s response; Awareness

73% 68% A Leadership 75-100% A 44% Leadership A- 0-74% A- % of responders reporting engagement with policymakers 78% on climate issues to encourage mitigation or adaptation B Management 40-74% B

84% Management B- 0-39% B- 76% C Awareness 40-74% C 62% Companies setting internal price of carbon Awareness C- 0-39% C- % of responders reporting absolute emission Disclosure 40-74% D Intention to do so in the next 2 years reduction targets ** D Disclosure 0-39% D- No intention to do so in the next 2 years 43% D- 39% F: Failure to provide sufficient information to CDP to be evaluated for Climate Change 1 29%

% of responders reporting intensity emission reduction targets** 1 Not all companies requested to respond to CDP The scoring methodology clearly outlines how many example, Company 123 achieved 76% in Disclosure total 474 emission reduction initiatives spreading do so. Companies who are requested to disclose across all sectors, although significantly fewer 61% their data and fail to do so, or fail to provide points are allocated for each question and at the end level and 38% in Awareness level resulting in a C-. companies in the Information Technology (63%) sufficient information to CDP to be evaluated will of scoring, the number of points a company has been However, a company must achieve over 75% in 56% receive an F. An F does not indicate a failure in and in Utilities (50%) sector have reported to have environmental stewardship. awarded per level is divided by the maximum number Leadership to be eligible for an A and thus be part of the 25% launched even one emission reduction initiative. The that could have been awarded. The fraction is then A List, which represents the highest scoring companies. types of initiatives launched and reported in 2016 vary, % of responders independently verifying any portion converted to a percentage by multiplying by 100 and In order to be part of the A-list a company must score although initiatives aiming to increase process energy of Scope 1 emissions data* rounded to the nearest whole number. A minimum score 75% in Leadership, not report any significant exclusions efficiency are most common. 58% of 75%, and/or the presence of a minimum number in emissions and have at least 70% of its scope 1 and 59% of indicators on one level will be required in order to scope 2 emissions verified by a third party verifier using Increasingly, companies are also utilising internal 44% be assessed on the next level. If the minimum score one of the accepted verification standards as outlined in carbon pricing as an approach to help them manage threshold is not achieved, the company will not be the scoring methodology. climate risks and opportunities. Companies are using % of responders independently verifying any portion of Scope 2 emissions data* scored on the next level. this tool in a range of different ways including risk Public scores are available in CDP reports, through assessment in their scenario planning, as a real hurdle 54% The final letter grade is awarded based on the score Bloomberg terminals, Google and Deutsche rate for capital investment decisions and to reveal 59% obtained in the highest achieved level. For example, Boerse’s website. CDP operates a strict conflict of hidden risks and opportunities in their operations. 36% Company XYZ achieved 88% in Disclosure level, 76% interest policy with regards to scoring and this can Some companies embed a carbon price deep into in Awareness and 65% in Management will receive a be viewed at https://www.cdp.net/Documents/ their corporate strategy, using it to help to deliver on % of responders reporting active emissions reduction initiatives in the reporting year B. If a company obtains less than 40% in its highest Guidance/2016/CDP-2016-Conflict-of-Interest-Policy. climate targets, whether it be an emissions or energy achieved level, its letter score will have a minus. For pdf related target or to help foster a new line of low- 89% carbon products and services. 85% 45% Currently only 14% (compared to global 25%) of 2015 Performance Score Comparing scores from previous years. responding Nordic companies use internal carbon E D C B A 2016 It is important to note that the 2016 scoring approach pricing, while a further 8 per cent (19% globally) plan 100 is fundamentally different from 2015, and different to do so in the near future. By 2017, about half of this 2015 90 D C- C B- B A- A information is requested, so 2015 and 2016 scores are sample should have introduced carbon pricing. 2015 Disclosure score 2010 not directly comparable. However we have developed a 80 Renewable energy will need to play a major role in any ** Companies may report multiple targets. However, in visual representation which provides some indication on these statistics a company will only be counted once. how 2015 scores might translate into 2016 scores. To global shift to a low carbon economy. So far, relatively 70 few companies (just 5% globally) have targets for use this table a company can place its score in the table increasing their renewable energy generation, while * This takes into account companies reporting that 60 and see in which range it falls into in the current scoring verification is complete or underway, but does not levels. For more detailed instructions please refer to our 11% have targets for renewable energy consumption. include any evaluation of the verification statement 50 provided. webinar: https://vimeo.com/162087170 . Of the companies in the utilities sector, 90% of which D- are electric power companies, fewer than a third both 40 globally and in the Nordics have renewable energy generation targets. 0

18 19 Investing in CDP’s Global Climate Nordic companies on the A list A List:Investing strong in CDP’s performance Global Climate by climate

changeA List: strong leaders performance by climate

change leaders

CLIMATE STOXX® Low Carbon Indices provide easy new way % STOXXto climate-friendly® Low Carbon and Indices attractive provide returns easy new way Consecutive to climate-friendly and attractive returns years in the % Company Country Climate Score A-list 6 Performance STOXX Global Climate Change Leaders vs. STOXX Global 1800 Consumer Discretionary higher returns Performance STOXX Global STOXX Climate Change Global Leaders Climate EUR (Gross) Change Leaders vs. STOXX Global 1800 Electrolux Sweden A 1 6 STOXX Global 1800 EUR (Gross) Consumer Staples over past 4 years 240 STOXX Global Climate Change Leaders EUR (Gross) 240 higher returns 240,00STOXX - Global 1800 EUR (Gross) SCA Sweden A 1 over past 4 years 220220,00 - 220 240240,00 - Energy 240 200 200200,00 - Neste Corporation 220 Finland A 1 220220,00 - 180 180180,00 - Health Care 200 200200,00 - 160160,00 - Novo Nordisk 180160 Denmark A 1 180180,00 - 140140,00 - Lundbeck 160140 Denmark A 1 160160,00 - Industrials 120120,00 - 140120 140140,00 - Kone Finland A 2 100 100100,00 ------

120

120,00 - 120 Skanska Sweden A 1 - - - - - 100 100100,00 ------

Valmet Finland A 1

Information Technology Jan. 2012 May 2012 Sep. 2012 Jan. 2013 May 2013 Sep 2013 Jan. 2014 May 2014 Sep. 2014 Jan. 2015 May 2015 Sep 2015 Jan. 2016 May 2016 EVRY Norway A 1 Jan. 2012 May 2012 Sep. 2012 Jan. 2013 May 2013 Sep 2013 Jan. 2014 May 2014 DataSep. 2014 fromJan. 2015 Dec. 19, May 2015 2011Sep 2015 to Aug.Jan. 2016 31, 2016 May 2016 Materials BillerudKorsnäs Sweden A 2 Data from Dec. 19, 2011 to Aug. 31, 2016 Metsä Board Finland A 1 This year CDP collaborated with STOXX® and South Key benefits for investors: Pole Group on the development of a new series of Novozymes Denmark A 1 Constituents are forward-looking leaders with Thislow-carbon year CDP indices, collaborated one of which with STOXX now makes® and South Key benefits for investors: superior climate change mitigation strategies and Stora Enso Finland A 1 investingPole Group in CDP’son the A development List companies of avery new easy: series The of commitmentsConstituents are to reducingforward-looking carbon leadersemissions with STOXXlow-carbon® Global indices, Climate one Change of which Leaders now makes Index. UPM-Kymmene Corporation Finland A 1 superior climate change mitigation strategies and investing in CDP’s A List companies very easy: The In addition to Scope 1 & Scope 2, also incor po- commitments to reducing carbon emissions STOXX® ClimateGlobal Climate Change Change Leaders Leaders Index is Index. the first rates Scope 3 data ever that tracks the CDP “A List” available to market In addition to Scope 1 & Scope 2, also incor po- Significantly (80 %) lower carbon footprint 1 while participantsSTOXX® Climate offering Change a fully Leaders transparent Index and is the tailored first rates Scope 3 data still containing high emitters solutionever that to tracks address the long-termCDP “A List” climate available risks, to while market Our Climate A List com- Significantly (80 %) lower carbon footprint 1 while The number of Nordic companies in the global climate In 2016, the number of companies reaching the participatingparticipants offeringin the sustainable a fully transparent growth ofand a low-tailored Similar risk-return profiles compared to the A list increased significantly from 2015 (5 companies), global A list represents roughly 10% of all companies prises a strong set of still containing high emitters Our Climate A List com- carbonsolution economy. to address long-term climate risks, while benchmark with 14 companies achieving top scores and meeting scored as part of the investor information request companies who lead on participating in the sustainable growth of a low- Similar risk-return profiles compared to the Use reported carbon intensity data only the strict A list criteria in 2016. both globally and in the Nordic region. Both Nordic climateprises a changestrong setmitigation of Thecarbon index economy. has performed strongly against a global benchmark and global A list companies represent various sectors, todaycompanies and in who the leadfuture. on benchmark, outperforming by 6 % over 4 years. Could be used for engagement supporting including a number of traditionally heavy emitting Use reported carbon intensity data only Itclimate is exciting change to see mitigation the The index has performed strongly against a global the < Aiming for A Coalition > The A list represents the highest scoring companies sectors such as Industrials, Materials, Energy and Beingbenchmark, based outperformingon the CDP “A by List” 6 % database, over 4 years. this Could be used for engagement supporting today and in the future. CDP is looking forward to contributing to innovative and is acknowledgment of a company’s positive Utilities, signaling of positive shift and ambition rising investor interest in unique index concept includes carbon leaders who the < Aiming for A Coalition > It is exciting® to see the solutions that can add real value for investors in the and effective actions to mitigate and adapt to global towards low carbon solutions from key industries. the STOXX Global areBeing publicly based committed on the CDP to “Areducing List” database, their carbon this rising investor interest in CDPfuture. is looking forward to contributing to innovative climate change. For a company to be eligible for Climate Change Leaders footprint.unique index 1 concept includes carbon leaders who ® solutions that can add real value for investors in the inclusion to the A list, a company must the STOXX Global are publicly committed to reducing their carbon Index. future. There are additionally impressive 25 Nordic companies Climate Change Leaders footprint. 1 that reached the Leadership level and are classified Index. achieve over 75% of available points at all scoring with A- scores, which means that these companies levels, including the Leadership level; are also demonstrating best practice in the field of environmental management, but did not meet the grant public access to their CDP response; 75% points threshold or some of the other A List not report any significant exclusions in emissions; requirements listed in above. and have at least 70% of its scope 1 and scope 2 1) The index is price weighted with a weight emissions verified by a third party verifier using one factor based on the free-float market cap of the accepted verification standards as outlined in multiplied by the corresponding Z-score the scoring methodology. carbon1) The index intensity is price factor weighted of each withconstituent. a weight Componentsfactor based onwith the lower free-float carbon marketintensities cap aremultiplied overweighted, by the corresponding while those with Z-score higher carbon emissionintensity factorare underweighted. of each constituent. Components with lower carbon intensities 30are overweighted, while those with higher carbon emission are underweighted. 20 21 30 Case study: Novo Nordisk, Health Care

Novo Nordisk produces life-saving medicine for millions of people living with diabetes and other serious chronic diseases. This is a tremendous responsibility that we take with us in everything we do, relying in our scientific expertise and deep disease understanding to help people achieve better health.

When it comes to climate change, we also rely on scientific experts. Our accountability and level of responsibility must align with the Novo Nordisk has committed to set a recommendations from the scientific community. We refer to the findings of science-based emission reduction target the UN Intergovernmental Panel on Climate Change (IPCC), acknowledging the overwhelming scientific evidence and agree with the need to keep the in line with the Science Based Targets temperature increase below 2 degrees.

Initiative’s Call to Action criteria, and Novo Nordisk has committed to set a science-based emission reduction signed up for the RE100 pledge to work target in line with the Science Based Targets Initiative’s Call to Action criteria. We are using methods endorsed by the initiative to develop our towards 100% of electricity consumption targets. Our Scope 1 and 2 initiatives include renewable power at all from renewable sources by 2020 production sites, bio-natural gas and biomass based steam supply in Denmark as well as reduced emission from the car fleet.

Novo Nordisk has signed up for the RE100 initiative and pledged that all our electricity consumption from production will come from renewable sources Novo Nordisk by 2020.

Dorethe Nielsen Senior Director, Environmental Strategy Novo Nordisk A/S

This profile is collaborative content supported by Novo Nordisk

22 23 Natural capital and climate change

Forests Water Up to Deforestation and forest degradation account for Water plays a critical role in achieving the climate neutral approximately 10-15% of the world’s greenhouse ambitions set by the Paris Agreement. 81% gas emissions. Addressing deforestation is therefore A large-scale shift in energy generation is key to critical for meeting international ambitions to prevent 31% reducing emissions. However, several low carbon dangerous climate change. of European technologies require a stable supply of good quality companies reporting of the carbon In fact, the most immediate and effective mechanism water, such as hydroelectric power, nuclear power and to CDP’s forest mitigation needed for mitigating climate impacts could come through power plants fitted with Carbon Capture and Storage program in 2016 have annually to keep curbing deforestation, according to the Stern Review. (CCS) equipment. Changes in water availability are already negatively impacting companies operating in commitments to temperature rises Global demand for agricultural commodities is the countries heavily dependent on hydroelectricity such as address deforestation in check could primary driver of deforestation, as land is cleared to Brazil. For example, French utilities ENGIE reported that yet only 42% stipulate be achieved produce soy, palm oil and cattle products. Alongside financial impacts, associated with ongoing droughts in timber and pulp, these commodities are the building zero or zero net by addressing Brazil, cost their organization approximately US$223 blocks of millions of products traded globally. These deforestation and deforestation. million, almost 3% of operating income in 2014. forests degradation in turn are wealth generators which feature in the within a 2020 supply chains of countless companies across Worsening water security can severely undermine sectors. businesses ability to transition to a low carbon future. timeframe. Leading companies recognize that corporate water Read the 2016 Global Forests Report (released stewardship is necessary for both business resilience in early December) to see how companies are and decarbonisation efforts. translating these into meaningful actions. www.cdp. net/en/forests Sound and effective water governance is essential In 2015, more than for driving dynamic, low carbon economic growth. Companies reporting to CDP are taking action, with Nordic companies reporting on how they 68% reporting board level oversight of water issues manage and mitigate deforestation risk in and 82% integrating water into their business strategy. 25% their commodity supply chains include* Furhermore, companies are already reporting that Ahlstrom Corporation Finland improved water management can lead to emission of reporting companies BillerudKorsnäs Sweden reductions, such as L’Oreal and Mars. If given proper identified opportunities attention, water security can be transformed from H&M Hennes & Mauritz Sweden to reduce emissions a limiting to an enhancing factor for delivering on through improved Holmen Sweden commitments to tackle climate change. Kesko Corporation Finland water management Read the 2016 global water report (released 15th Metsä Board Finland Nov) to see how companies are improving water Neste Corporation Finland management to realize greater emissions reductions Oriflame Cosmetics Sweden www.cdp.net/water Orkla Norway Nordic companies reporting on how they SAS Sweden manage and mitigate water risks include** SCA Sweden Assa Abloy Sweden Skanska Sweden BillerudKorsnäs Sweden TETRA PAK Sweden H&M Hennes & Mauritz Sweden UPM-Kymmene Corporation Finland Holmen Sweden Nobia Sweden Metsä Board Finland * representing total 44% response rate from all Nokian Tyres Finland Nordic companies requested to respond to the 2016 Nordic Semiconductor Norway CDP Forest questionnaire Norsk Hydro Norway Novozymes Denmark Orkla Norway Sandvik Sweden SCA Sweden UPM-Kymmene Corporation Finland Vestas Wind Systems Denmark William Demant Holding Denmark

** representing total 31% response rate from all Nordic companies requested to respond to the 2016 CDP Water questionnaire 24 25 Case study: Metsä Board, Materials

The year 2015 has every chance of becoming historically important in reducing global warming, thanks to the agreement reached in Paris at the end of the year. The forest industry plays a notable role by offering sustainable products and solutions to help with reaching the goals set. COP21 targets are also guiding Metsä Board’s operations.

Our strategy for combating climate change concentrates on three areas: increasing the use of bioenergy, improving energy efficiency and lightweighting our paperboards. By investing in bioenergy, as well as energy and

material efficiency, Metsä Board’s CO2 emissions have decreased by 42% since 2009 and in 2015 more than The key of Metsä Board business strategy 80% of the fuels we used were bio-based. We are continuously looking for new areas of energy efficiency at our is to increase the share of bioenergy along manufacturing units. When calculating the return of an investment project we also use an internal carbon price. with improving energy efficiency while The investments in a chemical recovery plant and a low-consistency refining at Metsä Board Kaskinen mill in 2015 are good examples of our efforts. These investments together with earlier ones have allowed the mill to offering sustainable packaging materials reduce its electric energy consumption by 28% compared to 2009. Kaskinen mill produces high-yield pulp that to its customers. plays an important role in the lightweighting of our paperboards.

Metsä Board’s lightweight and safe paperboards benefit the whole packaging value chain.

Metsä Board Mika Joukio Chief Executive Officer Metsä Board

This profile is collaborative content supported by Metsä Board

26 27 We Mean Business: Commit to Action Translating Paris into business strategy

Companies are taking direct and ambitious action on mainstream reports. Thirteen companies headquartered in Brazil have consumer staples companies also represent 20% climate change. More than 465 companies globally, and Corporate action has grown across all of these taken action, including materials company Braskem of committed companies, led by major brands like 37 in the Nordic region have made commitments to issues. The strongest growth has been in companies (price on carbon) and the consumer brand Natura Walmart, The Coca-Cola Company and Honda climate action via the We Mean Business commitments committing to science-based emissions reduction (science-based targets, deforestation, policy Motor Company. IT sector participation has platform “Commit to Action,” representing a tenfold targets, from 50 companies in late 2015 to nearly engagement, and mainstream reporting on climate). accelerated post-Paris, with companies including increase in two years. 190 today. In India, 17 companies, including Tata & Sons Apple and Facebook making 100% renewable power and Mahindra, have made bold commitments to commitments. Progress in 2016 has remained strong, suggesting renewable energy and energy productivity. Important a positive response to the Paris Agreement and its Companies in 42 countries have taken action. first movers in China, like industrials company By acting early and decisively, these companies universal commitment to a low-carbon economy. Broad Group, have made a range of commitments, are better able to manage their climate risk, gain At the beginning of 2015 just 3 US companies had importantly including setting science-based targets. competitive edge over their peers, and reap the Companies have been adopting more aggressive made commitments via this platform. By Paris, this reputational benefits that early leadership provides. targets—around emissions reductions, renewable number had grown to more than 50 companies. Sector trends show that companies in every industry energy, deforestation, water, and energy productivity— Climate action remains popular with European are acting. Strongest growth in 2016 has been in To find out more please visit www.cdp.net/commit. and improving operational or governance measures companies, with 237 taking action, predominantly in the industrials sector. Together, this sector accounts for climate risk through use of a price on carbon, mainstream reporting on climate and science-based for over 20% of corporate action via the We Mean more responsible policy engagement mechanisms, target setting. The fastest growing issue with Nordic Business platform, as well as more than 100 million

and greater transparency on climate governance in companies has been also the science-based targets, metric tonnes CO2e. Consumer discretionary and with 13 companies making that commitment. 235+ Companies Europe

Setting science based targets is the right thing to do, but also makes perfect business sense. Setting a science-based target directly 70+ answered the needs of our customers, Companies all of whom are thinking about their Asia own carbon footprints. It is also critical for investors who need to know that we are thinking of potential risks, in 90+ the short-, medium- and long-term. Companies 10+ North America Companies Laurel Peacock Australia Senior Sustainability Manager New Zealand NRG Energy 25+ Companies South America 20+ 465+ +$10 183 >US$20.7 Trillion 1000+ Companies Companies Trillion USD Investors Assets Under Commitments Management Africa

28 29 Nordic companies disclosing climate data in 2015

Company Country 2016 Score 2015 Score Public Company Country 2016 Score 2015 Score Public Company Country 2016 Score 2015 Score Public Company Country 2016 Score 2015 Score Public Consumer Discretionary Hoist Finance Se D not scored Public Rockwool International Dk B 97 B Public Telecommunication Services Alma Media Fi B 96 B Public Hufvudstaden Se B 100 B Not Public SAAB Se A- 100 B Public Elisa Fi B 100 B Public Amer Sports Fi C 82 D Public Industrivärden Se C 93 D Public Sandvik Se C 95 D Public Lemcon Fi (SC) not scored Public Backer Se (SC) (SC) Public Klövern Se C 94 D Public SAS Se A- 97 B Public Millicom International Cellular Se B 92 C Public Bilia Se AQ(L) 84 E Not Public KLP Insurance No B 100 B Public Securitas Se C 92 D Public Telenor Group No A- 99 A Public Clas Ohlson Se B 88 C Public Nordax Group Se D- not scored Public Skanska Se A 94 B Public TeliaSonera Se B- 95 B Public Dometic Se C- (SC) Not Public Nordea Bank Se B 100 B Public SKF Se B 95 C Not Public Utilities Ekornes No B 97 C Public Norwegian Property No A- 97 C Public Systemair Se D 41 Public Eltel Fi D not scored Not Public Electrolux Se A 99 B Public Nykredit Dk C not scored Public Swep Se (SC) (SC) Public DONG energy Dk B not scored Not Public Europris No A- not scored Public OP Financial Group Fi B 91 C Public Tomra Systems No C 84 E Public Fortum Fi A- 100 A- Public Fiskars Fi C 48 Not Public Ratos Se D AQ (L) Not Public Trelleborg Se C 73 D Public Vattenfall Group Se B 89 D Public H&M Hennes & Mauritz Se A- 93 B Public SEB Se A- 98 B Public Uponor Fi B 92 C Not Public To read the public company responses in full, access dynamic Husqvarna Se B 92 C Not Public Sponda Fi A- 99 A- Public Valmet Fi A 97 B Public graphs on emission data and the global A list, please visit the JM Se A- 94 B Public Storebrand No B 100 B Public Veidekke No A- 98 B Public CDP website at www.cdp.net Lego Group Dk (SC) (SC) Public Svenska Handelsbanken Se B 95 C Public Vestas Wind Systems Dk C 94 C Public Modern Times Group MTG Se B 95 C Public Swedbank Se B 97 B Public Volvo Se A- 100 A- Not Public KEY for company responses Nobia Se C 89 D Public Topdanmark Dk C 90 C Public Wärtsilä Fi B 96 C Public AQ(L): Answered questionnaire late, and therefore is not scored. Nokian Tyres Fi C 83 D Public Health Care Yit Fi C 87 D Public (SC): Answered questionnaire as part of the CDP Supply Chain S Group Fi C not scored Public BioGaia Se B 92 C Public ÅF Se C 82 D Public program, with a public response. Scores not available for publication. SA: See other Sanoma Fi D 33 Public Coloplast Dk B 92 C Public Information Technology Not public: the company responded privately to CDP investor Scandic Hotels Group Se B not scored Public Ferrosan Medical Devices Dk (SC) (SC) Public Atea No B 96 B Public signatories only Schibsted No C 97 D Public Getinge Se C 79 D Public Basware Fi C 31 Public Public: the company response can be read in full at the CDP website Stockmann Fi B 94 B Public Lundbeck Dk A 98 B Public Enea Software Se (SC) not scored Public Bold: companies that are in the global A list Suominen Fi (SC) not scored Public Meda Se B 99 B Public Ericsson Se B 99 B Public Consumer Staples North Denmark Region Dk C 90 D Public EVRY No A 97 B Public Dk Denmark Carlsberg Breweries Dk C 74 D Public Novo Nordisk Dk A 100 B Public Fingerprint Cards Se C- not scored Public Fi Finland Cermaq No B 97 C Public Recipharm Se C- not scored Public Napatech Dk (SC) (SC) Public Is Iceland Kesko Fi A- 100 A Public William Demant Holding Dk C- 76 E Public Nokia Group Fi A- 100 A Public No Norway Se Sweden KMC DK (SC) not scored Public Össur Is D 24 Public Nordic Semiconductor No B 94 C Public Lantmannen Se (SC) (SC) Public Industrials Tieto Fi B 98 B Public KEY for scores Lerøy Seafood Group No B 72 D Public ABB Se B 77 D Public Scandec Systemer No (SC) (SC) Public Range: from A to D- (A is the best score). Marine Harvest Group No A- 99 C Public A.P. Moller - Maersk Dk D 66 D Public Scanfil Fi (SC) not scored Public Oriflame Cosmetics Se B 99 B Public Addtech Se D 28 Public SimCorp Dk D- not scored Not Public Leadership (A, A-): Company actions represent best practice to Orkla No B 98 B Public Alfa Laval Corporate Se AQ (L) not scored Public Vaisala Fi B 99 A- Public advance environmental stewardship; thorough understanding of Raisio Oyj Fi C- not scored Not Public Assa Abloy Se C 93 C Public Materials risks and opportunities related to climate change; formulated and REMA1000 No A- 95C Public Beijer Alma Se C 90 D Public Ahlstrom Fi C 90 D Public implemented strategies to mitigate or capitalize on these risks and opportunities. SCA Se A 100 A- Public Caverion Fi B- 89 D Public BillerudKorsnäs Se A 99 A Public Management (B, B-): Company has taken actions to address Swedish Match Se C 91 E Public D/S Norden Dk B 99 B Public Boliden Group Se A- 97 B Public environmental issues beyond initial screenings or assessments Energy Danfoss Dk (SC) (SC) Public Borregaard No B 91 D Public Awareness (C, C-): Company is able to demonstrate understanding of Det Norske Oljeselskap No C 70 D Public DSV Dk D 72 D Public Chr. Hansen Holding Dk B- 85 D Not Public how environmental issues intersect with its business. DNO International No C 98 E Public Eltek No C 93 D Public Fiskeby Se (SC) (SC) Public Disclosure (D, D-): Company is able to provide basic information for DOF No B 99 B Public Finnair Fi A- 99 B Public Flexiket Dk (SC) (SC) Public assessing the maturity of processes and actions taken. Fred. Olsen Energy No C 96 D Public FLSmidth & Co. Dk D 56 E Public Hexpol Se C 92 D Public Lundin Petroleum Se B- 95 D Public Frontline No C 96 D Not Public Holmen Se A- 88 B Public The four levels represent the steps on a company’s journey to being Neste Corporation Fi A 97 C Public Golden Ocean No B 92 C Not Public Huhtamäki Fi B 92 C Public a good environmental steward. A minimum score of 75%, and/or the presence of a minimum number of indicators on one level will be Petroleum Geo-Services No C 90 D Public Grundfos Dk (SC) not scored Public Kemira Fi A- 99 B Public required in order to be assessed on the next level. The CDP score will Seadrill Management No C 85 D Not Public Inwido Se C 32 Public Luossavaara-Kiirunavaara Se D not scored Not Public give a clear picture of what a company’s current level is with respect Solstad Offshore No B 99 B Public ISS Dk B 95 B Public Metsä Board Fi A 100 B Public to environmental stewardship and importantly, what action to focus on Statoil No A- 100 B Public Kone Fi A 100 A Public Novozymes Dk A 100 A- Public next. Please see pg. 19 for further information Subsea 7 No C not scored Public Konecranes Fi B 98 C Public Norsk Hydro No C 85 C Public Leadership 75-100% A Financials Kongsberg Gruppen No B 69 E Public Outokumpu Fi B- 100 B Public 0-74% A- Aker No D not scored Public Lassila & Tikanoja Fi A- 99 B Public Skanem No (SC) (SC) Public Atrium Ljungberg Se B 74 C Not Public Metso Fi A- 100 B Public SSAB Se D AQ (L) Public Management 40-74% B Castellum Se A- 93 B Public NCC Se B 98 B Public Stora Enso Fi A 99 B Public 0-39% B- Citycon Fi B 83 B Public Nibe Industrier Se B 88 C Not Public Terrafame Fi C not scored Public Awareness 40-74% C Danske Bank Dk B 98 B Public Nolato Se C 89 D Public Tetra Pak Se (SC) (SC) Public 0-39% C- DNB No A- 97 B Public Odfjell SE No C 91 D Public UPM-Kymmene Fi A 99 A- Public Entra No B 97 B Public Peab Se B 99 C Public Yara International No C AQ (L) Public Disclosure 40-74% D 30 31 Gjensidige Forsikring No D 84 C Public Ramirent Fi D- 30 Public 0-39% D- Appendix CDP Investor Signatories

3Sisters Sustainable Management LLC Bank J. Safra Sarasin Ltd Celeste Funds Management Limited Elo Mutual Pension Insurance Company Fundação Rede Ferroviaria de Seguridade Social – Refer IndusInd Bank Ltd. AB Bank Leumi Le Israel Central Finance Board of the Methodist Church Environment Agency Pension fund FUNDAÇÃO SANEPAR DE PREVIDÊNCIA E Industrial Alliance, Insurance and Financial Services Inc. Aberdeen Asset Managers Bank of America Merrill Lynch CERES-Fundação de Seguridade Social Environmental Investment Services Asia Limited ASSISTÊNCIA SOCIAL - FUSAN Industrial Bank of Korea Aberdeen Immobilien KAG mbH Bank of Montreal Challenger Trustees of Donations to the Protestant Episcopal Fundação Sistel de Seguridade Social (Sistel) Industrial Development Corporation ABRAPP - Associação Brasileira das Entidades Scotiabank Change Investment Management Church Fundação Vale do Rio Doce de Seguridade Social - Inflection Point Capital Management Fechadas de Previdência Complementar Bankhaus Schelhammer & Schattera China Development Financial Holdings Epworth Investment Management VALIA ING Group N.V. Achmea NV Kapitalanlagegesellschaft m.b.H. Christian Brothers Investment Services eQ Asset Management Ltd FUNDIÁGUA - FUNDAÇÃO DE PREVIDENCIA ACTIAM Bankinter Christian Super Equilibrium Capital Group COMPLEMENTAR DA CAESB Instituto Infraero de Seguridade Social - INFRAPREV Active Earth Investment Management Banque Libano-Française Christopher Reynolds Foundation equinet Bank AG Futuregrowth Asset Management Instituto Sebrae De Seguridade Social - SEBRAEPREV Acuity Investment Management Barclays Church Commissioners for England ERAFP GameChange Capital LLC Insurance Australia Group Addenda Capital Inc. Basellandschaftliche Kantonalbank Church of England Pensions Board Erik Penser Fondkommission Greentech Capital Advisors, LLC Integre Wealth Management of Raymond James AEGON N.V. BASF Sociedade de Previdência Complementar CI Mutual Funds’ Signature Global Advisors Erste Asset Management GEAP Fundação de Seguridade Social IntReal KAG AEGON-INDUSTRIAL Fund Management Co., Ltd Basler Kantonalbank Mountain Cleantech AG Erste Group Bank Gemway Assets Asset Management AGF Investment Inc. Baumann and Partners S.A. ClearBridge Investments Essex Investment Management Company, LLC General Equity Group AG Investing for Good CIC Ltd AIG Asset Management Bayern LB CM-CIC Asset Management ESSSuper Generation Investment Management Irish Life Investment Managers AK Asset Management Inc. BayernInvest Kapitalanlagegesellschaft mbH CNP Assurances Ethos Foundation Genus Capital Management Itau Asset Management Akbank T.A.Ş. BBC Pension Trust Ltd. The Colorado College Etica Sgr German Equity Trust AG Itaú Unibanco Holding S A Alberta Investment Management Corporation (AIMCo) BBVA Columbia Threadneedle Investments Eureka Funds Management Gjensidige Forsikring ASA Jantz Management LLC Alberta Teachers Retirement Fund Board Bedfordshire Pension Fund Comerica Incorporated Eurizon Capital SGR Global Forestry Capital SARL Janus Capital Group Inc. Alecta Beetle Capital COMGEST Evangelical Lutheran Church in Canada Pension Plan for Globalance Bank Ltd Jarislowsky Fraser Limited Align Impact, LLC Bendigo & Adelaide Bank Limited Bâtirente Clergy and Lay Workers GLS Gemeinschaftsbank eG Jessie Smith Noyes Foundation Alliance Trust PLC Bentall Kennedy Commerzbank AG Evangelical Lutheran Foundation of Eastern Canada Goldman Sachs Asset Management Jesuits in Britain Allianz Global Investors Berenberg Bank CommInsure Evangelisch-Luth. Kirche in Bayern Goldman Sachs Group Inc. JMEPS Trustees Limited Allianz SE Berti Investments Commonwealth Bank of Australia Evli Bank Plc GOOD GROWTH INSTITUT für globale JOHNSON & JOHNSON SOCIEDADE PREVIDENCIARIA Alquity Investment Management BlackRock Commonwealth Superannuation Corporation FACEB – FUNDAÇÃO DE PREVIDÊNCIA DOS Vermögensentwicklung mbH Johnson Private Wealth Management, LLC Altira Group Blom Bank SAL Compton Foundation EMPREGADOS DA CEB Good Super Joule Assets Inc. Amalgamated Bank Blumenthal Foundation Confluence Capital Management LLC FAELCE – Fundacao Coelce de Seguridade Social Government Employees Pension Fund (“GEPF”), JPMorgan Chase & Co. AMF Pension BM&FBOVESPA Connecticut Retirement Plans and Trust Funds FAPERS- Fundação Assistencial e Previdenciária da Republic of South Africa Jubitz Family Foundation Amlin plc BMO Global Asset Management EMEA Conser Invest Extensão Rural do Rio Grande do Sul GPT Group Jupiter Asset Management AMP Capital Investors BNP Paribas Investment Partners CPR AM Federal Finance Greater Manchester Pension Fund Kagiso Asset Management AmpegaGerling Investment GmbH BNY Mellon Crayna Capital, LLC. Fédéris Gestion d’Actifs Green Alpha Advisors Kaiser Ritter Partner Privatbank AG Amundi AM BNY Mellon Service Kapitalanlage Gesellschaft Credit Agricole FIDURA Capital Consult GmbH Green Cay Asset Management KB Kookmin Bank ANBIMA – Associação Brasileira das Entidades dos Boardwalk Capital Management FIM Asset Management Ltd Green Century Capital Management KBC Asset Management Mercados Financeiro e de Capitais Boston Common Asset Management, LLC Gruppo Bancario Credito Valtellinese FIM Services Green Science Partners KBC Group Antera Gestão de Recursos S.A. BP Investment Management Limited CTBC Financial Holding Co., Ltd. Finance S.A. GROUPAMA EMEKLİLİK A.Ş. KCPS Private Wealth Management APG Brasilprev Seguros e Previdência S/A. Cultura Bank Financiere de l’Echiquier GROUPAMA SİGORTA A.Ş. KDB Asset Management Co. Ltd Appleseed Fund Breckenridge Capital Advisors DGB Financial Group FIPECq - Fundação de Previdência Complementar dos Groupe Crédit Coopératif Kendall Sustainable Infrastructure, LLC Aquila Capital British Airways Pension Investment Management Limited Daesung Capital Management Empregados e Servidores da FINEP, do IPEA, do CNPq GROUPE OFI AM Kepler Cheuvreux Arabesque Asset Management British Columbia Investment Management Corporation Daiwa Securities Group Inc. FIRA. - Banco de Mexico Grupo Financiero Banorte SAB de CV KEPLER-FONDS KAG Arisaig Partners Asia Pte Ltd Brown Advisory Dalton Nicol Reid First Affirmative Financial Network Grupo Santander Brasil Keva Arjuna Capital BSW Wealth Partners Dana Investment Advisors First Bank Banca Monte dei Paschi di Siena Group KeyCorp Arma Portföy Yönetimi A.Ş. BT Financial Group Danske Bank Group First State Super Guardians of New Zealand Superannuation KfW Bankengruppe Armstrong Asset Management BT Investment Management de Pury Pictet Turrettini & Cie S.A. First Swedish National Pension Fund (AP1) Hall Capital Partners LLC Killik & Co LLP ASM Administradora de Recursos S.A. Busan Bank Degroof Petercam FirstRand Ltd Hang Seng Bank Kiwi Income Property Trust ASN Bank CAAT Pension Plan DekaBank Deutsche Girozentrale Florida State Board of Administration (SBA) Hannon Armstrong Sustainable Infrastructure Capital, Inc Kleinwort Benson Investors S.p.A Cadiz Holdings Limited Delta Lloyd Asset Management Folketrygdfondet Hanwha Asset Management Company KLP ATI Asset Management CAI Corporate Assets International AG Demeter Partners Folksam Harbour Asset Management Korea Investment Management Co., Ltd. Atlantic Asset Management Pty Ltd Caisse de dépôt et placement du Québec Desjardins Group Fondaction CSN Harrington Investments, Inc Korea Technology Finance Corporation (KOTEC) ATP Group Caisse des Dépôts Deutsche Asset Management Investmentgesellschaft Fondation de Luxembourg Harvard Management Company, Inc. KPA Pension Auriel Capital Caixa de Previdência dos Funcionários do Banco do mbH Fondazione Cariplo Hauck & Aufhäuser Asset Management GmbH La Banque Postale Asset Management Australia and New Zealand Banking Group Nordeste do Brasil (CAPEF) Deutsche Bank AG Fondo Pegaso Hazel Capital LLP La Financière Responsable Australian Ethical Investment Caixa Econômica Federal Deutsche Postbank AG Fondo Pensione Cometa HDFC Bank Ltd. La Française AustralianSuper Caixa Geral de Depósitos Development Bank of Japan Inc. Fondo Pensione Gruppo Intesa Sanpaolo - FAPA Healthcare of Ontario Pension Plan (HOOPP) Laird Norton Family Foundation Avaron Asset Management CaixaBank, S.A Development Bank of the Philippines (DBP) Fonds de Réserve pour les Retraites – FRR Heart of England Baptist Association Lampe Asset Management GmbH Aviva Investors Caja Ingenieros Gestión DEXUS Property Group Foundation North Helaba Invest Kapitalanlagegesellschaft mbH Landsorganisationen i Sverige Aviva plc California Public Employees’ Retirement System DIP Fourth Swedish National Pension Fund, (AP4) Henderson Global Investors Länsförsäkringar AXA Group California State Teachers’ Retirement System DLM INVISTA ASSET MANAGEMENT S/A FRANKFURT-TRUST Investment-Gesellschaft mbH Hermes Investment Management LaSalle Investment Management AXA Investment Managers California State Treasurer DNB ASA Friends Fiduciary Corporation HESTA Super LBBW - Landesbank Baden-Württemberg BAE Systems Pension Funds Investment Management California State University, Northridge Foundation Domini Social Investments LLC Friends Life HIP Investor LBBW Asset Management Investmentgesellschaft mbH Ltd Calvert Investment Management, Inc. Dongbu Insurance Fubon Financial Holdings Holden & Partners LD Lønmodtagernes Dyrtidsfond Baillie Gifford & Co. Canada Pension Plan Investment Board DoubleDividend Fukoku Capital Management Inc HSBC Fundo de Pensão Legal and General Investment Management BaltCap Canadian Imperial Bank of Commerce (CIBC) Doughty Hanson & Co. FUNCEF - Fundação dos Economiários Federais HSBC Global Asset Management (Deutschland) GmbH Legg Mason Global Asset Management BPER Banca Canadian Labour Congress Staff Pension Fund DWS Investment GmbH Fundação AMPLA de Seguridade Social - Brasiletros HSBC Holdings plc LGT Group Banco Bradesco S/A Dexia Asset Management DZ Bank Fundação Atlântico de Seguridade Social HSBC INKA Internationale Kapitalanlagegesellschaft LGT Group Foundation Banco BTG Pactual SA CAPESESP E.Sun Financial Holding Co Fundação Attilio Francisco Xavier Fontana mbH LIG Insurance Banco Comercial Português S.A. Capital Innovations, LLC Earth Capital Partners LLP Fundação Banrisul de Seguridade Social HUMANIS Light Green Advisors, LLC Banco da Amazônia S.A. Capricorn Investment Group, LLC East Capital AB Calouste Gulbenkian Foundation Hyundai Marine & Fire Insurance Co., Ltd NORTHERN STAR GROUP Banco de Credito del Peru BCP CareSuper East Sussex Pension Fund Fundação Chesf de Assistência e Seguridade Social – Hyundai Securities Co., Ltd. Living Planet Fund Management Company S.A. Banco de credito social cooperativo Carmignac Gestion Ecofi Investissements - Groupe Credit Cooperatif Fachesf IBK Securities Lloyds Banking Group Banco de Galicia y Buenos Aires S.A. CASER PENSIONES EdenTree Investment Management Fundação Corsan - dos Funcionários da Companhia IDBI Bank Ltd. Local Authority Pension Fund Forum Banco do Brasil Previdência Cathay Financial Holding Co. Ltd Edward W. Hazen Foundation Riograndense de Saneamento Infrastructure Development Finance Company Local Government Super Banco do Brasil S/A Catherine Donnelly Foundation EEA Group Ltd Fundação de Assistência e Previdência Social do Industry Funds Management LocalTapiola Asset Management Ltd Banco Popular Español S.A. Catholic Super EGAMO BNDES - FAPES Iguana Investimentos Logos portföy Yönetimi A.Ş. Banco Sabadell, S.A. CBF Church of England Funds Eika Kapitalforvaltning AS FUNDAÇÃO ELETROBRÁS DE SEGURIDADE SOCIAL Illinois State Board of Investment Lombard Odier Asset Management Banco Santander CBRE Ekobanken medlemsbank - ELETROS Ilmarinen Mutual Pension Insurance Company London Pensions Fund Authority Banesprev – Fundo Banespa de Seguridade Social Cbus Elan Capital Partners Fundação Itaipu BR - de Previdência e Assistência Social Imofundos, S.A Lothian Pension Fund bankmecu CCLA Investment Management Ltd Element Investment Managers FUNDAÇÃO ITAUBANCO Impax Asset Management LUCRF Super Bank Handlowy w Warszawie S.A. Cedrus Asset Management ELETRA - Fundação Celg de Seguros e Previdência Fundação Itaúsa Industrial Making Dreams a Reality Financial Planning Ludgate Investments Limited 32 33 Lutheran Council of Great Britain New York City Employees Retirement System PREVHAB PREVIDÊNCIA COMPLEMENTAR SEB AB The Korea Teachers Pension (KTP) York University Pension Fund Limited New York City Comptroller PREVI Caixa de Previdência dos Funcionários do Banco Smith Pierce, LLC The McKnight Foundation Youville Provident Fund Inc. Magellan Financial Group New York City Teachers Retirement System do Brasil SNW Asset Management The New School Yuanta Financial Holding MagNet Magyar Közösségi Bank Zrt. New York State Common Retirement Fund PREVIG Sociedade de Previdência Complementar Social(k) The Pension Plan For Employees of the Public Service Zevin Asset Management, LLC Maine Public Employees Retirement System Newground Social Investment Previnorte - Fundação de Previdência Complementar Sociedade de Previdencia Complementar da Dataprev Alliance of Canada Zürcher Kantonalbank MainFirst Bank AG Newton Progressive Asset Management, Inc. - Prevdata The Pinch Group Malakoff Médéric NGS Super Prologis Società reale mutua di assicurazioni The Presbyterian Church in Canada MAMA Sustainable Incubation AG Woori Investment & Securities Co., Ltd. Provinzial Rheinland Holding SOCIÉTÉ GÉNÉRALE The Russell Family Foundation Man NH-CA Asset Management Company Prudential Investment Management Socrates Fund Management The Sandy River Charitable Foundation Mandarine Gestion Nikko Asset Management Co., Ltd. Prudential Plc Solaris Investment Management Limited The Sisters of St. Ann MAPFRE Nissay Asset Management Corporation Psagot Investment House Ltd Sompo Japan Nipponkoa Holdings, Inc The Sustainability Group at the Loring, Wolcott & Maple-Brown Abbott NN Group NV Public Sector Pension Investment Board Sonen Capital Coolidge Office Marc J. Lane Investment Management, Inc. Nomura Holdings, Inc. Q Capital Partners Co. Ltd Sopher Investment Management The United Church of Canada - General Council Martin Currie Investment Management NORD/LB Kapitalanlagegesellschaft AG QBE Insurance Group Soprise! Impact Fund The University of Edinburgh Endowment Fund Maryknoll Sisters Nordea Investment Management QIC South Yorkshire Pension Fund The Wellcome Trust Maryland State Treasurer Norfolk Pension Fund Quantex SouthPeak Investment Management Third Swedish National Pension Fund (AP3) Matrix Asset Management Norges Bank Investment Management Quilter Cheviot Asset Management SPF Beheer bv TOBAM Mediobanca North Carolina Retirement System Quotient Investors Spring Water Asset Management Tokio Marine Holdings, Inc Meeschaert Gestion Privée North East Scotland Pension fund Rabobank Sprucegrove Investment Management Ltd Toronto Atmospheric Fund Meiji Yasuda Life Insurance Company Northern Ireland Local Government Officers’ Raiffeisen Fund Management Hungary Ltd. Standard Chartered Trillium Asset Management, LLC Mellon Capital Superannuation Committee (NILGOSC) Raiffeisen Kapitalanlage-Gesellschaft m.b.H. Standard Chartered Korea Limited Triodos Investment Management Mendesprev Sociedade Previdenciária Raiffeisen Schweiz Genossenschaft Standard Life Investments Tri-State Coalition for Responsible Investment Mercer Investments NorthStar Asset Management, Inc RPMI Railpen Investments Standish Mellon Asset Management Trusteam Finance Merck Family Fund Northward Capital Pty Ltd Rathbones / Rathbone Greenbank Investments State Bank of India Tryg Mercy Investment Services, Inc. Notenstein Privatbank AG RBC Global Asset Management State Street Corporation Turner Investments Mergence Investment Managers Nykredit Real Grandeza Fundação de Previdência e Assistência StatewideSuper Unione di Banche Italiane S.c.p.a. Merseyside Pension Fund Oceana Investimentos ACVM Ltda Social Stewart Investors UBS MetallRente GmbH OceanRock Investments REI Super Stockland UniCredit SpA Metrus – Instituto de Seguridade Social Oddo & Cie Reliance Capital Limited Storebrand ASA Union Asset Management Holding AG Metzler Asset Management Gmbh Office of the Vermont State Treasurer Resona Bank, Limited Strathclyde Pension Fund Privatfonds GmbH MFS Investment Management Öhman Reynders McVeigh Capital Management Stratus Group Unionen McLean Budden ÖKOWORLD River Twice Capital Advisors, LLC Sumitomo Mitsui Financial Group Unipension FAIF A/S Midas International Asset Management, Ltd. Old Mutual plc Robeco Sumitomo Mitsui Trust Holdings, Inc. Unipol Miller/Howard Investments, Inc. Oliver Rothschild Corporate Advisors RobecoSAM AG UNISONS Staff Pension Scheme KDB Daewoo Securities OMERS Administration Corporation Robert & Patricia Switzer Foundation Superfund Asset Management GmbH UniSuper Mirae Asset Global Investments Ontario Pension Board Rockefeller Asset Management, Sustainability & Impact SURA Peru (AFP Integra, Seguros SURA, Fondos SURA, Unitarian Universalist Association Mirae Asset Securities Co., Ltd. Ontario Teachers’ Pension Plan Investing Group Hipotecaria SURA) United Church Funds Mirova OP Wealth Management Rose Foundation for Communities and the Environment SUSI Partners AG United Nations Foundation Mirvac Group Ltd Oppenheim & Co. Limited Rothschild & Cie Gestion Group Sustainable Capital Unity College Missionary Oblates of Mary Immaculate Oppenheim Fonds Trust GmbH Royal Bank of Canada Sustainable Development Capital Universities Superannuation Scheme (USS) Mistra, The Swedish Foundation for Strategic OppenheimerFunds Royal Bank of Scotland Group Sustainable Insight Capital Management University of California Environmental Research Opplysningsvesenets fond (The Norwegian Church Royal London Asset Management Svenska Handelsbanken University of Massachusetts Foundation Mitsubishi UFJ Financial Group Endowment) RREEF Investment GmbH Svenska kyrkan University of Sydney Endowment Fund Mitsui Sumitomo Insurance Co.,Ltd OPTrust Ruffer LLP Svenska kyrkans pensionskassa University of Toronto Mizuho Financial Group, Inc. Oregon State Treasurer Russell Investments Swedbank University of Toronto Asset Management Corporation MN Osmosis Investment Management Sampension KP Livsforsikring A/S Swift Foundation University of Washington Mobimo Holding AG Overlook Investments Limited Samsung Asset Management Co., Ltd. Swiss Re Van Lanschot Momentum Outcome-based Solutions PAI Partners Samsung Fire & Marine Insurance Co.,Ltd., Sycomore Asset Management Vancity Group of Companies Monega Kapitalanlagegesellschaft mbH Park Foundation Samsunglife Insurance Symphonia sgr Varma Mutual Pension Insurance Company Mongeral Aegon Seguros e Previdência S/A Parnassus Investments Samsung Securities Syntrus Achmea Asset Management Ventas, Inc. Montanaro Asset Management Limited Paul Hamlyn Foundation Sanlam Life Insurance Ltd T. Rowe Price Veris Wealth Partners Morgan Stanley Pax World Funds Santa Fé Portfolios Ltda Garanti Bank Veritas Pension Insurance MTAA Superannuation Fund PCJ Investment Counsel Ltd. Santam T. SINAİ KALKINMA BANKASI A.Ş. Vexiom Capital Group, Inc. Nanuk Asset Management Pensioenfonds Vervoer Santander Brasil Asset Management Taishin Financial Holding Co.,Ltd VicSuper The Nathan Cummings Foundation Pension Fund for Danish Lawyers and Economists Sarasin & Partners Tasplan Victorian Funds Management Corporation National Australia Bank Limited Pension Protection Fund SAS Trustee Corporation Tata Capital Limited VietNam Holding Ltd. National Bank of Canada Pension Denmark Saskatchewan Healthcare Employees’ Pension Plan TD Asset Management (TD Asset Management Inc. and Vinva Investment Management NATIONAL BANK OF GREECE S.A. Swedish Pensions Agency Sauren Finanzdienstleistungen GmbH & Co. KG TDAM USA Inc.) Vision Super Pty Ltd National Grid Electricity Group of the Electricity Supply People’s Choice Credit Union Schroders TD Securities (USA) LLC VOIGT & COLL. GMBH Pension Scheme Perpetual SEB Asset Management AG TIAA VOLKSBANK INVESTMENTS National Grid UK Pension Scheme PETROS - The Fundação Petrobras de Seguridade Second Swedish National Pension Fund (AP2) Telluride Association Bank Vontobel AG National Pensions Reserve Fund of Ireland Social Şekerbank T.A.Ş. Telstra Super Trust Waikato National Union of Public and General Employees PFA Pension Seligson & Co Fund Management Plc Tempis Asset Management Co. Ltd Walden Asset Management (NUPGE) PGGM Vermogensbeheer Sentinel Investments Terra Alpha Investments LLC WARBURG - HENDERSON Kapitalanlagegesellschaft für NATIXIS Phillips, Hager & North Investment Management SERPROS - Fundo Multipatrocinado Terra Global Capital, LLC Immobilien mbH Natural Investments LLC PhiTrust Active Investors Service Employees International Union Pension Fund TerraVerde Capital Management LLC Water Asset Management, LLC Nedbank Limited Pictet Asset Management SA Seventh Swedish National Pension Fund (AP7) Transport for London Pension Fund Wells Fargo & Company Needmor Fund Pioneer Investments The Shiga Bank, Ltd. The Brainerd Foundation Wespath Investment Management NEI Investments Piraeus Bank S.A. Shinhan Bank The Bullitt Foundation West Midlands Pension Fund Nelson Capital Management, LLC PKA Shinhan BNP Paribas Management The Church Pension Fund of Finland West Yorkshire Pension Fund NEST - National Employment Savings Trust Plato Investment Management Co., Ltd The Children’s Management (UK) LLP Westfield Capital Management Company, LP Nest Sammelstiftung Pluris Sustainable Investments SA Shinkin Asset Management Co., Ltd Clean Yield Asset Management Westpac Banking Corporation Neuberger Berman PNC Financial Services Group, Inc. Siemens Kapitalanlagegesellschaft mbH The Collins Foundation WHEB Asset Management New Alternatives Fund Inc. Polden-Puckham Charitable Foundation Signet Capital Management Ltd The Co-operators Group Ltd White Owl Capital AG New Amsterdam Partners LLC Porto Seguro S.A. Sisters of St Francis of Philadelphia The Council of Lutheran Churches Whitley Asset Management New Forests POSTALIS - Instituto de Seguridade Social dos Correios Sisters of St. Dominic The Daly Foundation Woori Bank New Mexico State Treasurer e Telégrafos Sixth Swedish National Pension Fund (AP6) The Hartford Financial Services Group Xoom Capital New Resource Bank Power Finance Corporation Limited Skandia The Joseph Rowntree Charitable Trust YES BANK Limited 34 35 CDP Contacts Board of Directors Scoring Partner Contacts

Steven Tebbe Simon Barker ADEC Innovations Managing Director, Europe Sue Howells Alicia Godlove Steven Tebbe Project Manager on the Salla Sulasuo (ESG)/Sustainability Team Head of Nordic office [email protected] +358 (0) 40 650 1988 Tel: +1 714 508 410 0 [email protected]

Investor Initiatives Emma Henningsson Senior Account Manager [email protected]

Policy Mirjam Wolfrum Director Policy & Reporting [email protected]

Forests Lena Meintrup Senior Project Officer Forests [email protected]

Water Ariane Laporte-Bisquit Project Officer Water [email protected]

Commit to Action campaign Elena Stecca Project Officer Global Initiatives [email protected]

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