CDP Australian Climate Leadership Report 2015

Global scoring and outsourcing partner Paul Dickinson Executive Chairman – CDP

CDP was set up, almost 15 years ago, to serve investors. A small group of 35 institutions, managing US$4 trillion in assets, wanted to see companies reporting reliable, comprehensive information about climate change risks and opportunities.

Since that time, our signatory base has grown Without doubt, decarbonizing the global economy is enormously, to 822 investors with US$95 trillion in an ambitious undertaking, even over many decades. assets. And the corporate world has responded to But the actions that companies are already taking, their requests for this information. More than 5,500 and reporting to CDP, show that corporate leaders companies now disclose to CDP, generating the understand the size of the challenge, and the Decarbonizing the world’s largest database of corporate environmental importance of meeting it. information, covering climate, water and forest-risk global economy We are on the threshold of an economic revolution commodities. is an ambitious that will transform how we think about productive undertaking, even Our investor signatories are not interested in this activity and growth. We are beginning to decouple over many decades… information out of mere curiosity. They believe, as energy use and greenhouse gas emissions from corporate leaders we do, that this vital data offers insights into how GDP, through a process of ‘dematerialization’ – understand the size reporting companies are confronting the central where consumption migrates from physical goods to sustainability challenges of the 21st century. And the electronic products and services. This will create new of the challenge, and data, and this report, shows that companies have assets, multi-billion dollar companies with a fraction of the importance of made considerable progress in recent years – whether the physical footprint of their predecessors. meeting it. We are on by adopting an internal carbon price, investing in Similarly, there is a growing realization that ‘work’ is the threshold of an low-carbon energy, or by setting long-term emissions no longer a place, but increasingly an activity that can reduction targets in line with climate science. economic revolution take place anywhere. And it no longer relies on the that will transform For our signatory investors, insight leads to action. physical, carbon-intensive infrastructure we once built how we think about They use CDP data to help guide investment to support it. productive activity decisions – to protect themselves against the risks In the 19th century we built railway lines across the associated with climate change and resource scarcity, and growth. globe to transport people and goods. Now we need and profit from those companies that are well to create a new form of transportation, in the form of positioned to succeed in a low-carbon economy. broadband. Investment in fixed and mobile broadband This year, in particular, momentum among investors will create advanced networks upon which the has grown strongly. Shareholders have come together communications-driven economy of the 21st century in overwhelming support for climate resolutions at can be built – an economy where opportunity is not leading energy companies BP, Shell and Statoil. There limited by time or geography, and where there are no is ever increasing direct engagement by shareholders limits to growth. to stop the boards of companies from using An economic revolution of this scale will create shareholders’ funds to lobby against government losers as well as winners. Schumpeter’s ‘creative action to tax and regulate greenhouse gasses. This destruction’, applied to the climate challenge, is set activity is vital to protect the public. to transform the global economy. It is only through Many investors are critically assessing the climate the provision of timely, accurate information, such as risk in their portfolios, leading to select divestment that collected by CDP, that investors will be able to from more carbon-intensive energy stocks – or, in properly understand the processes underway. Our some cases, from the entire fossil fuel complex. work has just begun. Leading institutions have joined with us in the Portfolio Decarbonization Coalition, committing to cut the carbon intensity of their investments. This momentum comes at a crucial time, as we look forward to COP21, the pivotal UN climate talks, in Paris in December. A successful Paris agreement would set the world on course for a goal of net zero emissions by the end of this century, providing business and investors with a clear, long- term trajectory against which to plan strategy and investment.

2 Contents

Global overview 4

Australia and 8

2015 Leadership Criteria 10

Low carbon investing hits mainstream 11

CDP 2015 Australian Climate Leadership Indices 12

CDP Australian Climate Leadership Awards 2015 13

Analysis of ASX 200 climate disclosure and climate performance in 2015 18

ASX 200 non-responding companies 19

ASX 200 responding companies, scores and emissions data 21

Investor signatories and members 23

Please note: The selection of analyzed companies in this report is based on market capitalization of regional stock indices whose constituents change over time. Therefore the analyzed companies are not the same in 2010 and 2015 and any trends shown are indicative of the progress of the largest companies in that region as defined by market capitalization. Large emitters may be present in one year and not the other if they dropped out of or entered a stock index. ‘Like for like’ analysis on emissions for sub-set of companies that reported in both 2010 and 2015 is included for clarity. Some dual listed companies are present in more than one regional stock index. Companies referring to a parent company response, those responding after the deadline and self-selected voluntary responding companies are not included in the analysis. For more information about the companies requested to respond to CDP’s climate change program in 2015 please visit: https://www.cdp.net/Documents/disclosure/2015/Companies-requested-to-respond-CDP-climate-change.pdf

Important Notice

The contents of this report may be used by anyone providing acknowledgement is given to CDP Worldwide and Carbon Disclosure Project Limited (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 has prepared the data and analysis in this report based on responses to the CDP 2015 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 does 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 are based on their judgment at the time of this report and are subject to change without notice due to economic, political, industry and firm-specific factors. Guest commentaries where included in this report reflect the views of their respective authors; their inclusion is not an endorsement of them.

CDP, their affiliated member firms or companies, or their respective shareholders, members, partners, principals, directors, officers and/or employees, may have a position in the securities of the companies discussed herein. The securities of the companies mentioned in this document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates.

‘CDP Worldwide’ and ‘CDP’ refer to: CDP Worldwide, a registered charity number 1122330 and a company limited by guarantee, registered in England number 05013650; and Carbon Disclosure Project Limited, an Australian charitable institution and a company limited by guarantee - ACN 148 974 323

© 2015 CDP Worldwide and Carbon Disclosure Project Limited. All rights reserved. 3 Global overview

The case for corporate action on climate change has never been stronger and better understood. With the scientific evidence of manmade climate change becoming ever more incontrovertible, leading companies and their investors increasingly recognize the strategic opportunity presented by the transition to a low-carbon global economy.

Global 2010 2015 Business is already stepping up. The United Nations Environment Programme estimates that existing Analyzed responses 1,799 1,997 collaborative emissions reduction initiatives involving Market cap of analyzed companies US$m* 25,179,776 35,697,470 companies, cities and regions are on course to

Scope 1 5,459 MtCO2e 5,382 MtCO2e deliver the equivalent of 3 gigatons of carbon dioxide reductions by 2020. That’s more than a third of the Scope 2 1,027 MtCO2e 1,301 MtCO2e ‘emissions gap’ between existing government targets Scope 1 like for like: 1306 companies 4,135 MtCO2e 4,425 MtCO2e Scope 2 like for like: 1306 companies 794 MtCO e 887 MtCO e for that year and greenhouse gas emissions levels 2 2 consistent with avoiding dangerous climate change.

* Market capitalization figures from Bloomberg And they are acting to seize this opportunity. The Those investors who understand the need to at 1 January 2010 and 1 January 2015. latest data from companies that this year took part decarbonize the global economy are watching in CDP’s climate change program – as requested particularly closely for evidence that the companies by 822 institutional investors, representing US$95 in which they invest are positioned to transition away trillion in assets – provide evidence that reporting from fossil fuel dependency. companies are taking action and making investments By requesting that companies disclose through CDP, to position themselves for this transition. these investors have helped create the world’s most Growing momentum from the corporate world is comprehensive corporate environmental dataset. coinciding with growing political momentum. Later This data helps guide businesses, investors and this year, the world’s governments will meet in Paris governments to make better-informed decisions to to forge a new international climate agreement. address climate challenges. Whatever the contours of that agreement, business This report offers a global analysis of the current state will be central to implementing the necessary of the corporate response to climate change. For transition to a low-carbon global economy.

1. Improving climate actions globally 2010 2015 94%

89%

0=

84%

=

80%

0= 75%

=

= 64% 64% 63%

60%

= = = = 50%

47% 47%

44%

=

= = 38%

=

34%

= 29%

27% =

= 21%

=

= 8000 940 4700 7500 6000 840 2100 5000 2700 4400 4700 8900 2900 6300 3800 6400 3400 6400 Board Incentives Engagement Intensity Absolute Active Emissions Scope 1 data Scope 2 data or senior for the with emissions emission emissions data for 2 or independently independently management management policymakers reduction reduction reduction more Scope 3 verified verified responsibility of climate on climate targets targets initiatives categories for climate change issues issues change

4 the first time, CDP compares the existing landscape in 2010. Even more – 50% - have goals to reduce to when the world was last on the verge of a major emissions per unit of output, up from 20% in 2010. climate agreement. By comparing data disclosed We are targeting the full Companies are responding to the ever-more in 2015 with the information provided in 2010, this operational emissions compelling evidence that manmade greenhouse gas report tracks what companies were doing in 2009, for the organisation, emissions are warming the atmosphere. This helps ahead of the ill-fated Copenhagen climate talks at the build the business case for monitoring, measuring including electricity, end of that year. natural gas, diesel and and disclosing around climate change issues. But refrigerant gases used in The findings show considerable progress: with greater corporate engagement with climate change operational buildings and corporate and investor engagement with the climate is at least partly down to influence from increasingly issue; in leading companies’ management of climate concerned investors. fleets. risk; and evidence that corporate action is proving … Amid growing investor concern effective. However, the data also shows that much J Sainsbury Plc Since 2010, there has been a 54% rise in the number more needs to be done if we are to avoid dangerous of institutional investors, from 534 to 822, requesting climate change. disclosure of climate change, energy and emissions Growing corporate engagement on data through CDP. climate change… Investors are also broadening the means by which For the purposes of this 2015 report and analysis, they are encouraging corporate action on emissions. CDP has changed the we focused on responses from 1,997 companies, In recent years, they have launched several other way investors are able to primarily selected by market capitalization through initiatives. understand the impact regional stock indexes and listings, to compare with of climate change the equivalent 1,799 companies that submitted data For example, a number of institutional investors in their portfolio... in 2010. These companies, from 51 countries around have come together in the ‘Aiming for A’ coalition promoting awareness the world, represent 55% of the market capitalization to call on specific major emitters to demonstrate of listed companies globally. of what risks or benefits good strategic carbon management by attaining (and maintaining) inclusion in CDP’s Climate A List. The data shows significant improvements in are embedded into The A List recognizes companies that are leading corporate management of climate change. What was investments. in their actions to reduce emissions and mitigate leading behavior in 2010 is now standard practice. climate change in the past CDP reporting year. In Anna Kearney For example, governance is improving, with a higher 2015, following a period of engagement with the percentage of companies allocating responsibility for BNY Mellon companies, the coalition was successful in passing climate issues to the board or to senior management shareholder resolutions calling for improved climate (from 80% to 94% of respondents). And more disclosure at the annual meetings of BP, Shell and companies are incentivizing employees through Statoil, with nearly 100% of the votes in each case. financial and non-financial means to manage climate issues (47% to 75%). Investors are also applying principles of transparency and exposure to themselves. More than 60 Importantly, the percentage of companies setting institutional investors have signed the Montréal targets to reduce emissions has also grown strongly. Carbon Pledge, under which they commit to Forty four per cent now set goals to reduce their measure and publicly disclose the carbon footprint of total greenhouse gas emissions, up from just 27%

2. 2010 performance bands globally* 3. 2015 performance bands globally 4. Disclosure scores over time Globally

100

80

60

40

20

A - 72 D - 69 A - 113 C - 462 0 7B - 335 No Band +2633628+A6A minus - 79 D - 406 +4262421+10+9A - 328 2010 2015 C - 411 B - 518 E - 207 Lowest Average Highest No band - 181 * in 2010 and 2015 not all companies were scored for performance 5 their investment portfolios on an annual basis. It aims Good progress – but it needs to accelerate to attract commitment from portfolios totaling US$3 Companies disclosing through CDP’s climate We have a public trillion in time for the Paris climate talks. change program have made substantial progress in understanding, managing and beginning to reduce commitment to meet Investors are seeking to better understand the their climate change impacts. However, if dangerous 100% of electricity link between lower carbon emissions and financial climate change is to be avoided, emissions need to performance, including through the use of innovative requirements through fall significantly. renewables by fiscal 2018 investor products such as CDP’s sector research, and we will be investing launched this year, which directly links environmental Governments have committed to hold global in about 200 MW of solar impacts to the bottom line. Some investors are taking warming to less than 2°C above pre-industrial levels. the next logical step, and are working to shrink their The Intergovernmental Panel on Climate Change PV plants. carbon footprints via the Portfolio Decarbonization calculates that to do this, global emissions need to Infosys Coalition (PDC). As of August, the PDC – of which fall between 41% and 72% by 2050. Although more CDP is one the founding members – was overseeing companies are setting emissions targets, few of them the decarbonization of US$50 billion of assets under are in line with this goal. In most cases, targets are management by its 14 members. neither deep enough nor sufficiently long term. Leading to effective corporate action More than half (51%) of absolute emissions targets Companies are responding to these signals. In total, adopted by the reporting sample extend only to 2014 Google uses carbon companies disclosed 8,335 projects or initiatives to or 2015. Two fifths (42%) run to 2020 but only 6% prices as part of our reduce emissions in 2015, up from 7,285 in 2011 extend beyond that date. The figures for intensity (the year for which the data allows for the most targets are almost identical. This caution in target risk assessment model. accurate comparison). The three most frequently setting is likely the result of the uncertain policy For example, the risk undertaken types of project are: improving energy environment: many companies will be awaiting the assessment at individual efficiency in buildings and processes; installing outcome of the Paris climate talks before committing data centers also or building low carbon energy generators; and to longer-term targets. changing behavior, such as introducing cycle to work includes using a shadow However, a number of big emitters – such as utilities schemes, recycling programs and shared transport. price for carbon to Iberdrola, Enel and NRG – have established long- estimate expected future More than a third (36%) of reporting companies term, ambitious emissions targets that are in line with energy costs. have switched to renewable energy to reduce climate science. These companies recognize that their emissions. On average, the companies that there is a business case for taking on such targets Google purchased renewable energy in 2015 have doubled and setting a clear strategic direction, including the number of activities they have in place to reduce encouraging innovation, identifying new markets and their emissions, showing their growing understanding building long-term resilience. Many other companies or capacity to realize the benefits of lower carbon have pledged to do so through the We Mean business. Further, 71% (1,425) of respondents are Business ‘Commit to Action’ initiative. employing energy efficiency measures to cut their CDP aims to work along a number of fronts to help emissions, compared with 62% (1,185) in 2011, other companies, especially in high-emitting sectors, demonstrating that companies are committed to join them. With its partners, CDP has developed reducing wasted energy wherever possible. a sector-based approach to help companies set Companies are also quietly preparing for a world with climate science-based emissions reduction targets. constraints – and a price – on carbon emissions. In The Science Based Targets initiative uses the 2°C the past year particularly, we have seen a significant scenario developed by the International Energy jump in the number of companies attributing a cost Agency. to each ton of carbon dioxide they emit, to help guide Looking forward, CDP will encourage more ambitious their investment decisions. This year 4352 companies target setting through our performance scoring, disclosed using an internal price on carbon, a near by giving particular recognition to science-based tripling of the 150 companies in 2014. Meanwhile, an targets. We are planning gradual changes to our additional 582 companies say they expect to be using scoring methodology that will reward companies that an internal price on carbon in the next two years. are transitioning towards renewable energy sources However, these efforts have not proved sufficient to at pace and scale. adequately constrain emissions growth. On a like- In addition, CDP is working with high-emitting for-like basis, direct (‘Scope 1’) emissions from the industries to develop sector-specific climate change companies analyzed for this report grew 7% between questionnaires and scoring methodologies, to ensure 2010 and 2015. Scope 2 emissions, associated with The numbers for companies using or planning that disclosure to CDP, and the actions required to to implement internal carbon pricing are based purchased electricity, grew 11%. There are many on the sample analyzed for Putting a price on show leading performance, are appropriate for each factors that might explain this, not least economic risk:Carbon pricing in the corporate world. Of sector. In 2015, we piloted a sector-specific climate the 1,997 companies analyzed in this report 315 growth but this rise in emissions is also considerably change questionnaire and scoring methodology have disclosed that they set an internal carbon lower than would have been the case without the price, with 263 planning to do so. For more privately with selected oil and gas companies, ahead investments made by responding companies in detail, see https://www.cdp.net/CDPResults/ of their intended implementation in 2016. carbon-pricing-in-the-corporate-world.pdf emissions reduction activities.

6 And business needs a seat at the table in Paris Conclusion The Paris climate agreement will, we hope, provide The direction of travel is clear: the world will need to vital encouragement to what is a multi-decade rapidly reduce emissions to prevent the worst effects The climate effort to bring greenhouse gas emissions under of climate change. And the political will is building to negotiations in Paris control. It will hopefully give private sector emitters undertake those reductions. The majority of those at the end of the year the confidence to set longer-term emissions reductions will need to be delivered by the corporate present a unique targets aligned with climate change. Companies world – creating both risk and opportunity. and their investors therefore will be, alongside opportunity for CDP and the investors we work with have played a national governments, arguably the most important formative role in building awareness of these risks countries around the participants in ensuring the success of the global and opportunities. Our data has helped build the world to commit to a effort to rein in emissions. prosperous, low carbon business case for emissions reduction and inform Companies that have an opinion on a global climate investment decisions. The corporate world is future. The more deal are overwhelmingly in support: when asked responding with thousands of emissions reduction ambitious the effort, if their board of directors would support a global initiatives and projects. But the data also shows that the higher the rewards climate change agreement to limit warming to below efforts will need to be redoubled, by both companies will be. But Paris is a 2°C, 805 companies said yes, while 111 said no. and their investors, if we are to successfully confront milestone on the road However, a large number of respondents (1,075) the challenge of climate change in the years to come. to a better climate, not stated they have no opinion, and 331 did not answer the grand finale. the question. This suggests either a lack of clarity around the official board position on the issue, or Unilever that many companies are not treating the imminent climate talks with the necessary strategic priority.

A deeper dive into corporate Working towards environmental risk water stewardship

Central to CDP’s mission is communicating the progress CDP has this year introduced the first evaluation and ranking of companies have made in addressing climate change, and corporate water management, using scoring carried out by our highlighting where risk may be unmanaged. To better do so, lead water-scoring partner, South Pole Group. CDP has introduced sector-specific research for investors. The questions in the water disclosure process guide companies This forward-looking research links environmental impacts to comprehensively assess the direct and indirect impacts that directly to the bottom line and directs investors as to how their business has on water resources, and their vulnerability to they can engage with companies to improve environmental water availability and quality. performance. Introducing credible scoring will catalyze further action. It The research flags topical environmental and regulatory issues will illuminate where companies can improve the quality of within particular sectors, relevant to specific companies’ financial the information they report, and their water management performance and valuation, and designed for incorporation performance. Participants will benefit from peer benchmarking into investment decisions. Sectors covered to date include and the sharing of best practice. automotive, electric utilities and chemicals. The research is Water scoring will follow a banded approach, with scores made intended to support engagement with companies, providing public for those companies reaching the top ‘leadership’ band. actionable company-level conclusions. Scoring will raise the visibility of water as a strategic issue within To better equip investors in understanding carbon and climate companies and increase transparency on the efforts they are risk, CDP is also developing further investor tools such as a making to manage water more effectively. carbon footprinting methodology, and is working continuously to Furthermore, scoring will be used to inform business strategies, improve the quality of our data. build supply chain resilience and secure competitive advantage. We hope that keeping score on companies and water will reduce the detrimental impacts that the commercial world has on water resources, ensuring a better future for all.

7 and New Zealand

Australia/NZ 2010 2015 Companies in this region are demonstrating an increasing appetite to act on climate change, and Analyzed responses† 98 (13) 97 (7) have been steadily developing their approach to Market cap of analyzed companies US$m 1,338,617 1,292,207 climate change management. This is perhaps

Scope 1 129.2 MtCO2e 136.5 MtCO2e indicative of a corporate understanding of the issues that is greater than the political will to act. Despite the Scope 2 70.8 MtCO2e 57.4 MtCO2e Australian government scrapping its carbon pricing Scope 1 like for like: 61 companies 102.4 MtCO2e 134.1 MtCO2e Scope 2 like for like: 61 companies 64.8 MtCO e 52.9 MtCO e mechanism, around a quarter of companies use an 2 2 internally determined price per ton of carbon to guide † the number in brackets refers to companies that responded after the deadline, or referred to a parent their investment decisions. This demonstrates the company. They are not included in analysis. value that those companies see from carbon pricing, and their belief that it has a future.

1. 2010 performance bands in 2. 2015 performance bands in 3. Disclosure scores over time in Australia and New Zealand Australia and New Zealand Australia and New Zealand 100

80

60

40

20

A - 10 D - 8 A - 3 C - 17 0 9B - 21 No Band - 27 +2038726A3A minus - 4 D - 29 No Band+41830+20+7A 2010 2015 - 7 C - 41 B - 18 E - 19 Lowest Average Highest

4. Improving climate actions in Australia and New Zealand 2010 2015 97%

91%

0=

= 82%

77%

=

0= 69%

64%

=

59%

57% =

54%

=

= 47% =

42%

= 39% 39%

= 34% 33%

= =

30%

= = = 21%

= 13%

= 9100 970 4200 6400 6900 770 1200 3400 2100 3000 4700 8200 3300 5400 3900 5900 3900 5700 Board Incentives Engagement Intensity Absolute Active Emissions Scope 1 data Scope 2 data or senior for the with emissions emission emissions data for 2 or independently independently management management policymakers reduction reduction reduction more Scope 3 verified verified responsibility of climate on climate targets targets initiatives categories for climate change issues issues change

8 Companies in this region are demonstrating an increasing appetite to act on climate change, and have been steadily developing their approach to % climate change management. This is perhaps indicative of a corporate understanding of the issues We have invested over AUS$3 that is greater than the political will to act. Despite the billion in new renewable energy 35 Australian government scrapping its carbon pricing projects, including wind, solar and increase of companies mechanism, around a quarter of companies use an hydro projects and constructed the with active emission internally determined price per ton of carbon to guide southern hemisphere’s largest wind reduction initiatives. their investment decisions. This demonstrates the farm and are currently building the value that those companies see from carbon pricing, southern hemisphere’s largest solar and their belief that it has a future. PV installation. Since 2010 there has been a jump of at least 20 percentage points in the proportion of this AGL Energy sample using incentives to drive climate change management, setting intensity-based emissions reduction targets and seeking external verification for their Scope 1 emissions data. And this is leading Australian Real Estate management firmInvesta into action: five years ago, fewer than half of the Office Fund notes that “tenant organisations are companies participating in CDP’s climate change increasingly interested in leasing environmentally program were actively moving to reduce their responsible and climate resilient office space” and emissions. This year, more than 80% have initiatives this gives them a strategic advantage to meet their in place to do so. clients changing requirements, while their New Zealand sector peer Kiwi Property Group echo this Further, Scope 2 emissions of the companies that sentiment of reduced operating costs and improved disclosed to CDP in both 2010 and 2015 have reputation as part of their strategic decision to install declined by 18%, suggesting that they have reduced large scale solar at their Sylvia Park shopping centre. the amount of power they use and/or its carbon While companies in this region have been moving in intensity. Indeed, energy efficiency projects are the right direction, they would benefit from policy that consistently the most popular approach to emissions will help accelerate their progress and lead to Scope reductions. 1 emissions reductions.

5. Proportion of 2015 companies and emissions by sector in Australia and New Zealand

% of responders

Consumer Discretionary - 10% Financials - 30% IT - 2% Utlities - 3%

Consumer Staples - 3% Healthcare - 3% Materials - 21%

Energy - 9% Industrials - 14% Telecomms - 5%

% of emissions

Consumer Discretionary - 0% Financials - 1% IT - 0% Utlities - 11%

Consumer Staples - 4% Healthcare - 0% Materials - 54%

Energy - 18% Industrials - 10% Telecomms - 1%

9 2015 Leadership Criteria

Each year companies that participate in CDP’s climate change program are scored against two parallel assessment schemes: performance and disclosure.

The performance score assesses the level of action, carbon footprint, its climate change strategy and risk as reported by the company, on climate change management processes and outcomes. mitigation, adaptation and transparency. Its intent is The highest scoring companies for performance and/ to highlight positive climate action as demonstrated or disclosure enter the A List (Performance band A) by a company’s CDP response. A high performance and / or the Climate Disclosure Leadership Index score signals that a company is measuring, verifying (CDLI). Public scores are available in CDP reports, and managing its carbon footprint, for example by through Bloomberg terminals, Google Finance and setting and meeting carbon reduction targets and Deutsche Boerse’s website. implementing programs to reduce emissions in both its direct operations and supply chain. In 2015 the climate change scoring methodology was revised to put more emphasis on action and as The disclosure score assesses the completeness a result achieving A is now better aligned with what and quality of a company’s response. Its purpose the current climate change scenario requires. is to provide a summary of the extent to which companies have answered CDP’s questions in a CDP operates a strict conflict of interest policy with structured format. A high disclosure score signals regards to scoring and this can be viewed at that a company provided comprehensive information https://www.cdp.net/Documents/Guidance/2015/ about the measurement and management of its CDP-conflict-of-interest-policy.pdf

What are the A List and CDLI criteria? Communicating progress To enter the A List, a company must: Central to CDP’s mission is communicating the progress companies have made in addressing Make its response public and submit via CDP’s climate change, and highlighting where risk may Online Response System be unmanaged. To better do so, CDP is changing Attain a performance score greater than 85 how our climate performance scoring is presented, Score maximum performance points and we have introduced sector-specific research for on question 12.1a (absolute emissions investors. performance) for GHG reductions due to Banding performance scores emission reduction actions over the past year 4% or above in 2015) Starting with water and forests in 2015 and including climate change and supply chain in Disclose gross global Scope 1 and Scope 2 figures 2016, CDP is moving to present scores using an Score maximum performance points for approach that illustrates companies’ progress verification of Scope 1 and Scope 2 emissions towards environmental stewardship. Each reporting (having 70% or more of their emissions verified) company will be placed in one of the following Furthermore, CDP reserves the right to exclude bands: any company from the A List if there is anything Disclosure measures the completeness of the in its response or other publicly available company’s response; information that calls into question its suitability for inclusion. CDP is working with RepRisk in Awareness measures the extent to which the 2015 to strengthen this background research. company has assessed environmental issues, risks Note: Companies that achieve a performance score high and impacts in relation to its business; enough to warrant inclusion in the A List, but do not meet all of the other A List requirements are classed as Management measures the extent to which the Performance Band A- but are not included in the A List. company has implemented actions, policies and To enter the CDLI, a company must: strategies to address environmental issues; Make its response public and submit via CDP’s Leadership looks for particular steps a company Online Response System has taken which represent best practice in the field of environmental management. Achieve a disclosure score within the top 10% of the total regional sample population* We believe that this approach will be clearer and easier to understand for companies, investors and *Note: while it is usually 10%, in some regions the CDLI cut-off other stakeholders. Water and forest scores will use may be based on another criteria, please see local reports for this new presentation of banded scores in 2015, confirmation. while the updated scoring methodology for climate change will be available in February 2016 with results in late 2016. Low carbon investing hits mainstream

the environmental impact of more than 5,500 companies representing 55%* of the world’s market capitalization. I think there are great benefits to investment managers who are Qualitative answers to CDP’s climate change able to integrate environmental data into their models. They are questionnaire offer integrated information for active the leaders in finding a value-driver within an industry and modeling investors engaging companies. Investment manager it when the rest of the market can’t. That gives you a competitive Rockefeller & Co. sees in CDP disclosures how advantage. companies are dealing with water and emissions challenges, and the transparency of their supply George Serafeim chain. Harvard Business School “We like to put the (financial) metrics in context,” said Farha-Joyce Haboucha, Rockefeller’s director of Sustainability & Impact Investing. “All those nitty-gritty details help us talk to management. We can show Capital markets are waking up to climate-conscious one company’s details to another, and say: ‘You can investing. Mainstream European investors are finding do better on this.’” ways to lower the carbon content of their portfolios, without sacrificing returns. The largest asset Companies will now have to prove they meet strict managers on Wall Street now offer financial products ESG standards to be included in the portfolio of to address carbon opportunities and risks. And more ABP, one of the world’s biggest pension funds, activist funds from Sweden to Australia are engaging with €350bn in assets and 2.8 million participants. with the heaviest emitters, urging them to lower their The Dutch pension fund expects to shift €30bn of greenhouse gas emissions. its €90bn in equities to cut the carbon emissions of companies within its portfolio by 25% over the CDP led this shift, harnessing the power of investors next five years. “The new strategy must not have now representing one-third of the world’s investment. an impact on the return on investment,’ the fund’s In 2000, when CDP first asked investors to sign its chairwoman Corien Wortmann said. disclosure request to companies, most fund directors were indifferent to climate change issues. Since then, Whether active or passive, investors’ actions are CDP has won the support of financial giants including backed by research that shows that good disclosure AIG, Bank of America Merrill Lynch, Barclays’, is a proxy for good management globally and that BlackRock, Credit Suisse, Deutsche Bank, HSBC, best-in-class climate performers may outperform ING, Itau, J.P. Morgan Chase, Macquarie, Nomura, their peers. “It is more feasible to incorporate climate Santander, and Wells Fargo. change into investment decisions because the data availability and quality has increased in the last 10 “The field would not be where it is today without years due to groups like CDP,” said George Serafeim CDP,” said Curtis Ravenel, director of sustainability at Harvard Business School. for Bloomberg, whose terminals display CDP data, scoring and rankings that form the basis for new Globally, $21.4 trillion was invested in funds with ESG index-based funds. “They mobilized the investment mandates in 2014, up 61% in two years, according community to recognize climate change and to drive to the Global Sustainable Investment Alliance. In disclosure from companies.” Europe, it is more than half of institutionally managed assets. While the US has long lagged Europe in investor action on climate change, many Wall Street stalwarts Investors taking a long-term view are crucial to are now focusing on it. “Over the last two years, avoiding the “tragedy of the horizon,” according to ESG has become more central to our clients,” said Mark Carney, Chairman of the Financial Stability Hugh Lawson, Goldman Sachs’ recently appointed Board and Governor of the Bank of England. In a first director of environmental, social and governance recent speech to Lloyd’s of London, Carney called (ESG) Investing. “Climate change is clearly on for better disclosure worldwide, citing CDP as a people’s minds.” model, to make the global economy more resilient. He said clear prices on carbon, another focus of Wall Street is building products and tools to reduce CDP, and stress-testing would buttress this. carbon intensity in portfolios, and shifting investment to new low carbon technologies and opportunities, As mainstream investors take a longer view, they building on indexes developed by Standard & Poor’s are asking companies to future-proof their business and MSCI. New products include exchange-traded to take better account of environmental risks and funds at State Street and BlackRock, BNY Mellon’s opportunities to stabilize, maximize and grow Green Beta Investing Approach, and a low-carbon shareholder return. The North American edition portfolio at Northern Trust. of CDP’s 2015 global climate change report will further examine trends and innovation in low-carbon Developing new strategies and products requires investing. solid information, and CDP gathers and analyzes

*sourced from Bloomberg 11 CDP 2015 Australian Climate Leadership Indices

A strategic position on The CDP Climate A List includes the companies in the highest climate performance band (A) and provides climate change enables a valuable perspective on the range and quality of activities being performed by ASX200 companies in strategic advantage over response to climate change. The CDP Climate A List was formerly known as the CDP Climate Performance Leadership Index sector peers through improved environmental and financial performance CDP 2015 Climate A List Australia of the Fund …In the CDP 2015 climate Consecutive years longer term this can lead Company Sector performance band on the A List to increased demand from new and existing clients Property Group A Financials 3 for being housed in climate resilient Investa Office Fund A Financials 2 buildings and increased investments in the Fund. Investa Office Fund CDP 2015 ASX 200 Climate Disclosure Leadership Index The Climate Disclosure Leadership Index (CDLI) includes the twenty companies that provided the highest quality climate disclosure through CDP in 2015, based on their CDP 2015 climate disclosure score.

CDP 2015 climate Consecutive years Company Sector disclosure score on ASX200 CDLI*

Amcor Materials 100 7 Australia and New Zealand Banking Group Financials 100 10 of Australia Financials 100 7 Dexus Property Group Financials 100 5 Insurance Australia Group Financials 100 10 Financials 100 10 Novion Property Group Financials 100 1 Airways Industrials 100 6 Financials 100 1 Banking Corporation Financials 100 3 BHP Billiton Materials 99 1 Henderson Group Financials 99 2 News Corp Consumer Discretionary 98 8 Energy 98 1 Santos Energy 98 1 Corporation Telecommunications 98 1 AGL Energy Utilities 97 9 Investa Office Fund Financials 97 1 PanAust Materials 97 2 Materials 97 1 Woolworths Limited Consumer Staples 97 8

*including companies previously included on the CDP ASX 200 and NZX 50 CDLI, which was one combined index until 2011.

The minimum score for inclusion in the CDP 2015 ASX 200 Climate Disclosure Leadership Index (CDLI) is 97, an 8 point increase on 2014. It should be noted that one company – Cimic Holdings – scored 99 but was not eligible for inclusion in the CDLI as its response is private, viewable only by CDP’s institutional investor signatories. Only public responses are eligible for inclusion on CDP’s climate leadership indices. 12 CDP 2015 Australian Climate Leadership Indices CDP Australian Climate Leadership Awards 2015

Award 1 – Most profitable carbon reduction activity 2015 Three projects related Awarded to the ASX 200 company that reported the most profitable carbon reduction activity through to energy efficiency CDP in 2015 have been implemented Winner PanAust in 2014 related to Finalists productive operating times on the mine Annual Annual carbon Investment Return on haulage fleet, change in Company Monetary savings (metric Required investment process in the GMO heap Savings tonnes CO2-e leach detoxification and solar lighting installation. PanAust $1,000,000 $10,000 7,300 10,000% These initiatives are voluntary and address Rio Tinto $17,500,000 $500,000 23,000 3,500% Scope 1 and 3 emissions. Commonwealth $1,420,000 $83,700 1,302 1,697% PanAust Bank of Australia

Qantas Airways $600,000 $50,000 1,600 1,200%

Woodside $2,900,000 $300,000 72,000 967% Petroleum

Award 2 – Largest renewable energy purchaser 2015 GHG emissions Awarded to the ASX 200 company that purchased the largest proportion of its total energy consumption from associated with renewable energy. London electricity are Winner Henderson Group offset by the energy Finalists supplier on purchase. Henderson Group Proportion Renewable energy Total energy of energy Company purchased (MWh) purchased (MWh) sourced from renewable energy

Henderson Group 3,435 4,208 81.6%

National Australia Bank 37,450 310,453 12.1%

Dexus Property Group 12,125 166,244 7.3%

GPT Group 13,346 210,860 6.3%

13 Award 3 - Largest absolute carbon reduction 2015 We recognise the need Awarded to the Australian company that reported the largest absolute reduction in its total Scope 1 to decarbonise our and Scope 2 emissions – in metric tons CO2-e – due to emission reduction activities. business over the long- Winner Rio Tinto term and that our efforts Finalists to reduce emissions will need to increase Reductions in over time. …During this Achieved sufficient carbon emissions transition, we focus on Company performance scoring in (Total Scope 1 & 2 securing competitively relevant data points? emissions - tonnes CO2-e) priced energy supply… In addition to improving the energy efficiency of Rio Tinto 3,402,000 Yes our operations, we are 300,618 Yes seeking to reduce the energy intensity of new BHP Billiton 5,604,000 No projects where economic Origin Energy 305,962 No to do so. Santos 222,857 No Rio Tinto

Award 4 - Largest relative carbon reduction 2015 AMP is reducing its use Awarded to the Australian company that reported the largest percentage reduction in its carbon emissions of resources and carbon due to emission reduction activities, relative to the company’s total Scope 1 and Scope 2 emissions. footprint and has set Winner AMP new priorities including: Finalists – reducing greenhouse gas emissions by a Reduction in carbon Achieved sufficient further 15% in the period emissions (relative to the Company performance scoring in 2014–2016 – pursuing company’s total Scope 1 relevant data points? energy efficiency through and 2 emissions) lighting upgrades, IT initiatives and more flexible and efficient use AMP 12% Yes of office space – working Incitec Pivot 11% Yes with contractors, Tatts Group 27% No landlords and service providers. Challenger 14% No

AMP BHP Billiton 12% No

14 Award 5 - Best climate disclosure by a new responding company 2015 The Group’s strategy This is awarded to a first-time responding ASX 200 company with the highest CDP climate disclosure score in 2015. addresses climate Winner change risks with longer term goals for reduction Finalists of environmental footprint and Company CDP 2015 climate disclosure score improvement of supply chain management. Our Ethical Sourcing Policy, Super Retail Group 93 Environmental Policy and Sandfire Resources NL 86 Sustainable Procurement Pact Group Holdings 68 Policy support our commitment to achieve Mineral Resources 56 those goals. Village Roadshow 50 Super Retail Group

Award 6 – Best improvement in climate disclosure 2014-2015 Awarded to the Australian company with the biggest year on year improvement in its CDP climate disclosure Our business has score from CDP 2014 to CDP 2015. also recognised that Winner WorleyParsons regulatory requirements Finalists will increase demand for low carbon solutions CDP 2015 climate CDP 2014 climate Points now and increasingly Company disclosure score disclosure score improvement in the next 3-5 years, and has ensured that we remain at the forefront WorleyParsons 93 45 48 of developments in Platinum Asset 54 24 30 renewable energy, carbon Management capture, energy efficiency Charter Hall Group 96 73 23 and alternative fuels. WorleyParsons Perpetual Investments 87 64 23

Sims Metal Management 88 66 22

15 Award 7 - Best year on year improvement in climate This decrease in performance 2014-2015 absolute emissions was Awarded to the Australian company with the biggest year on year improvement in its CDP climate delivered against a 7% performance score from CDP 2014 to CDP 2015. increase in the amount Winner Holdings of tonnes hauled and was achieved through Finalists the implementation of CDP 2015 climate CDP 2014 climate Company a number of initiatives. performance band performance band These included: automatic engine start stop; regenerative Aurizon Holdings B D braking; driver advisory WorleyParsons D No band systems; and changes to Incitec Pivot B D operational practices. Aurizon Holdings D No band Kathmandu Holdings B C

Bendigo and Adelaide Bank D E

Award 8 – Best climate disclosure 2015 The Qantas Group Awarded to the Australian company with the highest CDP climate disclosure score and the highest quality has a comprehensive overall disclosure in 2015. climate change Winner Qantas Airways strategy that has been Finalists developed to reduce the Group’s emissions Level of and subsequent carbon CDP 2015 climate Level of uncertainty: Company liabilities. Fleet renewal, disclosure score assurance Scope 1 and 2 fuel optimisation and emissions figures sustainable aviation biofuel are key elements Qantas Airways 100 Reasonable assurance Less than of the strategy. or equal to (≤) 2% Qantas Airways Australia and New 100 Reasonable assurance More than (>) 2% Zealand Banking Group but ≤ 5%

Stockland 100 Reasonable assurance > 2% but ≤ 5%

Westpac Banking 100 Reasonable assurance > 2% but ≤ 5% Corporation

16 Award 9 - Consistently high quality climate change disclosure 2006-2015 In 2014, reductions in Awarded to ASX companies that have been included in the CDP ASX Climate Disclosure Leadership Index in every absolute emissions year from 2006-2015. (Scope 1 and 2 combined) have been CDP 2015 climate Consecutive years achieved through Company Sector disclosure score on ASX200 CDLI* a range of different activities. We continue Australia and New 100 Financials 10 to improve the energy Zealand Banking Group efficiency of our existing commercial and branch Insurance Australia 100 Financials 10 assets and consolidating Group our building portfolio in National Australia Bank 100 Financials 10 response to changing

* including companies previously included on the CDP ASX 200 and NZX50 CDLI, which was one combined index until 2011. business needs. ANZ is also implementing a policy to improve the efficiency of our vehicle fleet in Australia and New Zealand by preferencing 4-cylinder vehicles over 6-cylinder vehicles. Australia and New Zealand Banking Group

Award 10 - CDP Climate A List Company 2015 Awarded to companies included on the CDP 2015 Climate A List (formerly known as the CDP Climate During the FY14 reporting Performance Leadership Index). period, DEXUS achieved a 4.15% reduction in CDP 2015 climate Consecutive years absolute emissions Company Sector performance band on the A List (scope 1 and 2 combined) from FY13 and 24.4% Dexus Property Group A Financials 3 overall when compared to the baseline year of Investa Office Fund A Financials 2 FY08. Emissions have

decreased across DEXUS operations primarily due to a number of integrated, targeted emissions reduction activities. Dexus Property Group

17 Analysis of ASX 200 climate disclosure and climate performance in 2015

Comparison of ASX200 Climate Performance by Sector

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Consumer Discretionary (CD) 56% 22% 22%

Consumer Staples (CS) 33% 67%

Energy (EGY) 75% 25%

Financials (FIN) 8% 8% 31% 12% 19% 15% 8%

Health Care (HC) 100%

Industrials (IND) 8% 15% 23% 31% 23%

Information Technology (IT) 50% 50%

Materials (MAT) 10% 30% 30% 10% 20%

Telecommunication (TCOM) 33% 33% 33%

Utilities (UTIL) 25% 50% 25%

No Band E D C B A- A

Climate performance and distribution of ASX 200 Sector performance of ASX200 climate performance responding companies by scoring category

Governance Risk & Opportunity Emissions Sector & Strategy Management Management Verification 27 CD CS EGY 18 18 FIN 15 IND MAT TCOM

5 UTIL 4 2 Number of Companies No E D C B A- A <50 under performance Band 51-70 mid-range performance Climate Performance Band >70 high performance

Climate disclosure score distribution of ASX 200 Average climate disclosure scores of ASX 200 responding responding companies companies by sector

45 CD 81 CS 87 EGY 88 FIN 86 HC 87 19 IND 84

9 IT 47 1 1 1 3 2 3 5 MAT 77 Number of Companies TCOM 91 0-10

11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 UTIL

91-100 85

Climate disclosure score OVERALL 83 18 ASX 200 non-responding companies

Member of Member of Response Response Organisation climate change Organisation climate change status status sample/s sample/s

Consumer Discretionary DP ASX200, CA, FF Ainsworth Game Technology NR ASX200 Buru Energy NR CA, FF APN News & Media DP ASX200 Carnarvon Petroleum NR CA, FF Arb Corp DP ASX200 Coal of Africa NR CA, FF NR ASX100 Coalspur Mines NR CA, FF Automotive Holdings Group NR ASX200 Cockatoo Coal NR CA, FF NR ASX200 Drillsearch Energy NR ASX200, CA, FF Domino's Pizza Enterprises NR ASX100 Energy Ventures Ltd NR CA, FF Echo Entertainment Group NR ASX100 Horizon Oil DP ASX200 Fairfax Media NR ASX200 Linc Energy NR CA, FF NR ASX100 Liquefied Natural Gas NR ASX200 G8 Education NR ASX200 Maverick Drilling & Exploration NR CA, FF GUD Holdings DP ASX200 New Hope NR CA, FF New Zealand Refining Holdings NR ASX100 NR CA, FF Company Myer Holdings DP ASX200 Nexus Energy NR CA, FF Navitas NR ASX200 Paladin Energy NR ASX200, CA, FF DP ASX200 Pan Pacific Petroleum NL NR CA, FF Pacific Brands DP ASX200 Resource Generation NR CA, FF Premier Investments NR ASX200 Roc Oil Company Ltd NR CA, FF Retail Food Group DP ASX200 Senex Energy DP ASX200, CA, FF DP ASX200 Stanmore Coal Ltd NR CA, FF Sky City Entertainment Group DP ASX100, NZX50 Sundance Energy Australia NR ASX200 Sky Network Television DP ASX100, NZX50 Washington H Soul Pattinson Slater & Gordon DP ASX200 NR CA, FF Corp Southern Cross Media Group NR ASX200 White Energy Company DP CA, FF STW Communications Group NR ASX200 Whitehaven Coal NR ASX200, CA, FF DP ASX100 Yancoal Australia NR CA, FF Ten Network Holdings NR ASX200 Financials DP ASX200, NZX50 DP ASX200 Consumer Staples Aveo Group DP ASX200 Asaleo Care DP ASX200 Bank of NR ASX100 DP ASX200 Cover-More Group NR ASX200 Coca-Cola Amatil NR ASX100 DP ASX200 Goodman Fielder DP ASX200 Federation Centres DP ASX100 GrainCorp NR ASX200 Flexigroup NR ASX200 Group NR ASX200 Genworth Mortgage Insurance DP ASX100 NR ASX100 Lend Lease Group NR ASX100 Energy Magellan Financial Group NR ASX100 AED Oil NR CA, FF Private NR ASX100 Aquila Resources NR CA, FF Ozforex Group DP ASX200 Bandanna Energy NR CA, FF Shopping Centres Australasia NR ASX200 19 Member of Member of Response Response Organisation climate change Organisation climate change status status sample/s sample/s

Westfield Group NR ASX100 NR ASX200 Health Care DP ASX100 DP ASX100 Mount Gibson Iron NR ASX200 Cochlear NR ASX100 Northern Star Resources NR ASX200 Greencross DP ASX200 DP ASX200 Limited NR ASX100 OZ Minerals NR ASX200 Japara Healthcare NR ASX200 Regis Resources NR ASX200, CA, M&M Mesoblast NR ASX200 Sirius Resources DP ASX200 Primary Health Care NR ASX100 Straits Resources Limited NR CA, FF NR ASX100 Telecommunication Services Sigma Pharmaceuticals NR ASX200 IINET NR ASX200 Medical NR ASX200 M2 Telecommunications Group DP ASX200 NR ASX100 TPG Telecom NR ASX100 Virtus Health DP ASX200 Vocus Communications NR ASX200 ResMed DP ASX100 Utilities Industrials AusNet Services NR ASX100, CA, EU ALS DP ASX100 Duet Group NR ASX100 Bradken DP ASX200 Energy Developments NR CA, EU Cabcharge Australia NR ASX200 Energy World Corporation NR CA, EU Cardno NR ASX200 Geodynamics NR CA, EU GWA Group IN ASX200 Redbank Energy NR CA, EU Macquarie Atlas Roads Group NR ASX200 McMillan Shakespeare NR ASX200

Mermaid Marine Australia DP ASX200 Legend DP ASX100 ASX100 Member of ASX100 index ASX200 Member of ASX200 index SAI Global DP ASX200 CA Recipient of CDP’s Carbon Action request SEEK NR ASX100 EU Member of CDP’s Electric Utilities sample DP ASX200 FF Member of CDP’s Fossil Fuels sample NZX50 Member of NZX50 index Skilled Group DP ASX200 M&M Member of CDP’s Mining & Metals sample Spotless Group Holdings DP ASX200 T Member of CDP’s Transportation sample Airport NR ASX100 NR No Response DP Declined to Participate Transfield Services NR ASX200 IN Information Provided Group DP ASX100 Virgin Australia Holdings NR CA, T Information Technology .com NR ASX100 Technology One NR ASX200 Materials Adelaide Brighton NR ASX100 BC Iron DP ASX200, CA, M&M BlueScope Steel DP ASX100

20 DuluxGroup NR ASX100 ASX 200 responding companies, scores and emissions data

Scope 3 CDP 2015 Scope 1 Scope 2 Company name Public Listed On categories climate score emissions emissions reported

Consumer Discretionary Group Public ASX 75 E 2,817 52,915 0 Public ASX 93 C 33,748 140,991 1 InvoCare Public ASX 71 E 6,070 8,574 1 JB Hi-Fi Not Public ASX 79 E Not Public Not Public Kathmandu Holdings Public ASX NZX 93 B - 7,497 10 News Corp Public ASX 98 B 28,521 211,523 7 REA Group N/A ASX SA See News Corp Super Retail Group Public ASX 93 C 965 82,215 9 Tatts Group Not Public ASX 77 E Not Public Not Public Village Roadshow Not Public ASX 50 E Not Public Not Public Consumer Staples Public ASX 96 B 8,381 83,917 13 Public ASX 87 C 1,398,102 2,646,139 4 Woolworths Limited Public ASX 97 B 523,274 2,494,957 4 Energy Aurora Oil & Gas N/A ASX SA See Baytex Energy Corp. AWE Public ASX 73 D 176,593 572 0 Caltex Australia Public ASX 81 D 1,704,466 269,848 12 Karoon Gas Australia Public ASX 90 D 44,200 205 0 Not Public ASX 84 D Not Public Not Public Origin Energy Public ASX 98 D 16,729,218 130,000 1 Santos Public ASX 98 C 3,936,602 32,809 3 Public ASX 89 C 10,007,232 7,622 4 WorleyParsons Public ASX 93 D 28,359 73,056 11 Financials AMP Public ASX 95 B 98 18,262 5 ASX Public ASX 92 D 69 12,250 3 Australia and New Zealand Banking Group Public ASX NZX 100 A minus 17,611 194,666 7 Bendigo and Adelaide Bank Public ASX 89 D 2,898 27,797 4 BWP Trust Public ASX 74 D - 275 1 Challenger Public ASX 73 E - 888 4 Legend Charter Hall Group Public ASX 96 C 6,007 103,724 5 ASX100 Member of ASX100 index Charter Hall Retail REIT N/A ASX SA See Charter Hall Group ASX200 Member of ASX200 index Commonwealth Bank Public ASX 100 B 9,362 119,317 9 CA Recipient of CDP’s Carbon Action request of Australia EU Member of CDP’s Electric Utilities sample Dexus Property Group Public ASX 100 A 10,781 118,854 5 FF Member of CDP’s Fossil Fuels sample Not Public ASX 86 C Not Public Not Public NZX50 Member of NZX50 index GPT Group Public ASX 85 D 8,985 144,561 0 M&M Member of CDP’s Mining & Metals sample Henderson Group Public ASX 99 B 12 2,053 6 T Member of CDP’s Transportation sample Insurance Australia Group Public ASX 100 B 9,181 32,947 4 NR No Response Investa Office Fund Public ASX 97 A 926 22,618 6 DP Declined to Participate IOOF Holdings Public ASX 25 No band - - 0 Public ASX 91 D - 43,399 4 IN Information Provided Group Public ASX 93 D 11,441 69,202 3 National Australia Bank Public ASX 100 A minus 23,481 168,982 8 Novion Property Group Public ASX 100 A minus 6,163 138,219 3 Perpetual Investments Public ASX 87 D 18 2,715 4 Platinum Asset Management Public ASX 54 E - 1,769 3 QBE Insurance Group Public ASX AQ(L) - - - - Public ASX 96 C 20,349 308,217 4 Steadfast Group Public ASX 9 No band - - 0 Stockland Public ASX 100 B 22,102 99,927 3 Public ASX 89 D 6,311 46,775 0 Westpac Banking Corporation Public ASX NZX 100 A minus 11,309 168,373 5

21 Legend ASX100 Member of ASX100 index ASX200 Member of ASX200 index CA Recipient of CDP’s Carbon Action request EU Member of CDP’s Electric Utilities sample FF Member of CDP’s Fossil Fuels sample NZX50 Member of NZX50 index M&M Member of CDP’s Mining & Metals sample T Member of CDP’s Transportation sample

Scope 3 CDP 2015 Scope 1 Scope 2 Company name Public Listed On categories climate score emissions emissions reported

Health Care CSL Public ASX 87 D 67,025 162,755 0 Industrials Asciano Group Not Public ASX 93 C Not Public Not Public Aurizon Holdings Public ASX 95 B 765,258 427,317 6 Australia Post Public SSC - 118,298 188,853 6 Brambles Public ASX 96 C 78,750 79,060 10 CIMIC Group Limited Not Public ASX 99 C Not Public Not Public Downer EDI Public ASX 91 B 219,259 46,403 9 Mineral Resources Not Public ASX 56 E Not Public Not Public Monadelphous Group Not Public ASX 88 D Not Public Not Public Qantas Airways Public ASX 100 B 11,938,500 183,825 5 Recall Holdings Public ASX 91 C 21,340 25,950 9 Toll Holdings Public ASX 66 D 524,759 80,457 6 Transpacific Industries Group Public ASX 95 D 559,304 33,450 3 UGL Public ASX 86 E 9,715 20,785 7 Veda Group Not Public ASX 31 No band Not Public Not Public Information Technology Computershare Not Public ASX 59 D Not Public Not Public IRESS Not Public ASX 35 No band Not Public Not Public Materials Alumina Public ASX 73 D 3,454,800 2,315,305 3 Public ASX 100 B 352,566 1,149,716 4 Arrium Public ASX 86 D 2,990,694 1,363,256 3 Aspire Mining Public ASX ex-200 11 No band - - 0 Atlas Iron Public ASX 56 E 95,595 4,067 2 Beadell Resources Public ASX AQ(L) - - - - BHP Billiton Public ASX 99 B 22,671,000 22,282,000 5 Public ASX 87 D 2,458,961 685,902 8 CSR Public ASX 32 No band 313,461 226,570 0 Public ASX NZX 93 D 939,749 409,052 7 Public ASX 95 C 1,565,553 289,939 13 Not Public ASX AQ(L) - Not Public Not Public - Incitec Pivot Public ASX 94 B 2,132,244 366,644 10 Independence Group Public ASX 50 E 39,210 16,976 3 Corporation Not Public ASX 52 E Not Public Not Public Public ASX AQ(L) - - - - Not Public ASX 92 D Not Public Not Public Orora Not Public ASX AQ(L) - Not Public Not Public Pact Group Holdings Not Public ASX 68 E Not Public Not Public PanAust Public ASX 97 C 181,450 55,788 6 Rio Tinto Public ASX 97 B 21,900,000 12,500,000 6 Sandfire Resources NL Public ASX 86 E 73,113 141 0 Public ASX 88 D 111,131 142,526 3 Western Areas Public ASX 80 E 16,267 45,438 0 Telecommunication Services SingTel Public ASX 93 C 8,643 539,402 9 Public ASX NZX 82 E 2,090 19,642 4 Telstra Corporation Public ASX 98 B 52,537 1,311,927 15 Utilities AGL Energy Public ASX 97 B 19,622,185 306,355 10 APA Group Public ASX 86 D 311,421 24,201 1 Infigen Energy Public ASX ex-200 92 D 536 12,694 7 Group Public ASX 66 E 38,527 1,702,847 0

22 Legend ASX100 Member of ASX100 index Investor signatories and members ASX200 Member of ASX200 index CA Recipient of CDP’s Carbon Action request EU Member of CDP’s Electric Utilities sample FF Member of CDP’s Fossil Fuels sample NZX50 Member of NZX50 index M&M Member of CDP’s Mining & Metals sample T Member of CDP’s Transportation sample

1. Investor signatories by CDP investor initiatives – backed in 2015 by more than location 822 institutional investors representing in excess of US$95 trillion in assets – give investors access to a global source of year-on-year information that supports long-term objective analysis.

This includes evidence and insight into companies’ greenhouse gas emissions, water usage and Investor members strategies for managing climate change, water ABRAPP - Associação Brasileira das Entidades Fechadas de and deforestation risks. Investor members have Previdência Complementar additional access to data tools and analysis. AEGON N.V. Allianz Global Investors to become a member visit: ATP Group https://www.cdp.net/en-US/Programmes/ Aviva Investors Pages/what-is-membership.aspx AXA Group Europe Bank of America Merrill Lynch 45- 383 = 46% +27982A To view the full list of investor signatories Bendigo & Adelaide Bank Limited North America BlackRock - 220 = 26% please visit: https://www.cdp.net/en-US/Programmes/ Boston Common Asset Management, LLC Latin America & BP Investment Management Limited Caribbean - 75 = 9% Pages/Sig-Investor-List.aspx California Public Employees' Retirement System Asia California State Teachers' Retirement System - 78 = 9% Calvert Investment Management, Inc. Australia and NZ Capricorn Investment Group, LLC - 67 = 8% Catholic Super Africa CCLA Investment Management Ltd ClearBridge Investments - 16 = 2% DEXUS Property Group Environment Agency Pension fund Etica SGR 2. Investor signatories Eurizon Capital SGR by type Fachesf FAPES 95 Fundação Itaú Unibanco 3. Investor signatories over time 92 Generation Investment Management Goldman Sachs Asset Management 87 Henderson Global Investors Number of signatories HSBC Holdings plc 822 Infraprev 78 KeyCorp

Assets under management 767 KLP Legg Mason Global Asset Management

US$trillion 71 722 London Pensions Fund Authority Maine Public Employees Retirement System 64 655 Morgan Stanley National Australia Bank Limited 57 NEI Investments 55 Neuberger Berman

551 New York State Common Retirement Fund 534 Nordea Investment Management Norges Bank Investment Management Asset Managers 41 475 Overlook Investments Limited 44 - 364 = 44% +282053A PFA Pension Previ

Asset Owners 385 - 252 = 30% 31 Real Grandeza Robeco Banks - 162 = 19% RobecoSAM AG

315 Rockefeller Asset Management, Sustainability & Impact Insurance 21 - 37 = 5% Investing Group Royal Bank of Canada Others Sampension KP Livsforsikring A/S - 19 = 2% 225 Schroders 10 SEB AB

155 Sompo Japan Nipponkoa Holdings, Inc 4.5 Sustainable Insight Capital Management 95 TD Asset Management Terra Alpha Investments LLC 35 The Wellcome Trust UBS

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 University of California 23 CDP Contacts CDP Board of Trustees CDP Advisors Paul Dickinson Chairman: Alan Brown Lord Adair Turner Executive Chairman Wellcome Trust Rear Admiral Neil Morisetti CB Paul Simpson Ben Goldsmith Chief Executive Officer WHEB

Frances Way Chris Page Co-Chief Operating Officer Rockefeller Philanthropy Advisors

Sue Howells James Cameron Co-Chief Operating Officer Climate Change Capital & ODI

Marcus Norton Jeremy Burke Chief Partnerships Officer Green Investment Bank

Daniel Turner Jeremy Smith Head of Disclosure Kate Hampton James Hulse Childrens Investment Fund Head of Investor Initiatives Foundation

Martin Wise James Day Relationship Capital Partners Director – Australia and NZ Takejiro Sueyoshi

CDP Tessa Tennant 133 Alexander St Crows Nest 2065 Australia Tel: +61 (0)2 8213 2452 www.cdp.net [email protected]

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