CDP Climate Change and Water Report 2018 Turkey Edition
Total Page：16
File Type：pdf, Size：1020Kb
DISCLOSURE INSIGHT ACTION CDP Climate Change and Water Report 2018 Turkey Edition Written on behalf of over 650 institutional investors with US$87 trillion in assets CDP Turkey Climate Change and Water Report | March 2019 CDP Partner CEO FOREWORD 2018 was another momentous year for action on climate change. The landmark report from the Intergovernmental Panel on Climate Change (IPCC) underlined the urgent need to bend the curve on global greenhouse gas emissions. Meanwhile the UN Environment Programme offered a stark reminder of the gap between where we are now and where we need to be. The choice facing companies and investors has {{ never been clearer: seize the opportunities of the low- We know that business is carbon transition or continue business as usual and key in enabling the global economy to achieve – and face untold risks. exceed – its climate goals. The continued action of these entities will be vital as we go through 2019, the fnal year before nations update their Against this backdrop, it is encouraging that 2018 Brazil elected a president whose policies threaten national climate plans for saw a quickening pace of climate action. We saw the future of the Amazon rain forest, one of the the Paris Agreement and just more companies disclose their environmental world’s biggest carbon sinks. Meanwhile in the US, as global emissions need to data, and more set stretching targets to reduce President Trump continues to ignore stark warnings peak. emissions. Eighteen years ago, when CDP started, on the damage climate change will infict on the US {{ climate disclosure was non-existent in capital economy, instead pushing through deregulation markets. In 2018, over 7,000 companies, worth and attempting to resurrect the coal industry. more than 50% of global market capitalization disclosed environmental data through our There’s also no denying the reality of intensifying platform. That’s an 11% jump on the previous climate impacts. From a Europe-wide heatwave to year. Environmental disclosure further entered record droughts in Cape Town, hurricanes in the the mainstream with the FSB’s Task Force on Americas and wildfres in the Arctic, 2018’s extreme Climate-related Financial Disclosure (TCFD), which weather events brought enormous costs to both built on the work of CDP and paves the way for capital markets and wider society. mandatory climate-related disclosures across all G20 countries over time. Through our upgraded To stay below the 1.5°C guardrail, the IPCC tells disclosure platform, which incorporates the TCFD’s us the global economy needs to reach net zero- recommendations, the 7,000 companies disclosing carbon by mid-century and halve emissions by this year have aligned their disclosures with those 2030, compared with 2010 levels. This represents recommendations (72% of the listed companies nothing short of a complete transformation of the that disclosed through CDP were able to answer global economy. It is going to take unprecedented between 21 and 25 of the 25 new TCFD questions). co-operative action between companies, investors, cities, states and governments across all sectors. As we have long believed, where there is greater transparency, greater action follows. As showcased We know that business is key in enabling the global by 2018’s Global Climate Action Summit, leaders economy to achieve – and exceed – its climate from across the worlds of business and fnance goals. The continued action of these entities will are taking the urgent steps required to build a be vital as we go through 2019, the fnal year before sustainable future for all. The summit was an nations update their national climate plans for the important and timely reminder of the progress we Paris Agreement and just as global emissions need are seeing across the real economy. to peak. From the 500 companies that are now committed This is the time for businesses to ramp up action to set science-based emissions reductions and send a clearer signal to governments that they targets; to those moving toward 100% renewable need the policy ambition to match. Business as electricity; and the investors stepping up to shift usual is no longer an option, but a prosperous and their investments to low-carbon, we are seeing sustainable low-carbon future is achievable, if we tremendous progress in the right direction. choose to rise to the challenge. We must, we can and I believe we will. But there is no time for complacency. There are still some serious hurdles in the race towards Paul Simpson Paris Agreement implementation. In October 2018, CEO, CDP 2 SPONSOR FOREWORD As we all witness globally, the urgency is getting to be heard and to take a stand for global climate alarmingly clearer everyday. According to a recently action. This fascinating collective effort was truly published UN Report, there is a very sharp increase inspirational for many others. The youth knows that in the number of climate-related events, which are the solution lies in our hands. Next year, Generation actually creating 77% of the total direct economic Z will make up %38 of the global workforce and losses caused by disasters. The World Bank has %40 of the total consumers. Businesses, which fail calculated that the real cost to the global economy to meet the expectations of Generation Z, will face is a staggering USD 520 billion per annum, with signifcant consequences such as loss of brand disasters pushing 26 million people into poverty reputation, failure to attract new talents, inability to every year. The reported loss of resources and assess environmental and social risks, as well as assets like homes, factories and farms due to more missing out on the opportunities in new markets. frequent and widespread climate-related disasters We have reached such a point in history that we rose 151% compared to the previous 20-year have the technical capability and extensive know- period. More importantly, in the last two decades, how on how to tackle global problems like poverty, 1.3 million people have been killed and 4.4 billion hunger, inequality and of course climate change. were impacted by natural disasters worldwide. We As the business world we all need to put climate observe a similar trend in Turkey as well. According change at the top of our agendas. to the most recent report released by the Turkish State Meteorological Service, 598 extraordinary On the other hand, 2018 had been a challenging weather events occurred in Turkey in 2017, which year for Turkish economy. We observed strong indicates that there is a 4-event increase per year growth rates in the frst half of the year; however, since 2000. we witnessed a highly volatile second half due to both internal and external developments. Yet we As a country in the drought zone, Turkey will continued to see an even stronger commitment experience severe droughts and heatwaves in and determination in the Turkish business world for addition to extreme precipitation and foods. Turkey climate change mitigation and adaptation. is among the countries that will be extremely water- stressed by 2040. If projections come true, with the In such an environment the commitment of expected population growth to 100 million people, companies is crucial more than ever. We are truly Turkey will be among the water poor countries by grateful for all companies in Turkey that respond to 2030. CDP and contribute to our country’s battle against climate change by showing leadership, taking Following these devastating events, we see an responsibility and committing to ambitious targets. increasing trend in the public awareness as well. Very recently, 1.4 million students from all over Ali Fuat Erbil the world walked out of schools on March 15th Board Member & CEO, Garanti Bank PARTNER FOREWORD This year marks the 9th year of CDP operations impact the global economy in many diverse ways. It in Turkey and the 4th year of Deloitte´s as a is crucial for companies to prioritize climate change partner of the event, originally to lead the scoring in their agenda and assess the many impacts that methodology and this year to support on the may occur from not making a clear commitment reporting aspects of the project. We are very to reduce their carbon footprint. Business needs pleased to be able to continue to support the CDP, to take the lead in this area given the increasing the importance of which grows with each passing acceptance that it is lack of political will, as year. opposed to technological capability that poses the greatest risk to failure of meeting the targets of the We believe that creating value for life and the COP21 Paris Agreement, which in any event should environment also means making a positive impact be seen as a bare minimum. on the business too. In fact, successful businesses beneft from the fair use of natural resources. Deloitte has over 800 sustainability and climate The companies that create and follow a strategy change professionals globally delivering services mapping the environmental risks to their operations to clients in more than 50 countries, and we will be successful in reaching their targets and have established our own science-based carbon ultimate goals not only in the short-term but also reduction goals. We are proud to support our long-term. clients’ climate change and sustainability strategies and to work with them on fnding suitable solutions Today, we know that three of the top fve risks that support the environment and are aligned with (extreme weather events, failure of climate change their key business objectives. mitigation and adaptation, natural disasters) to the global economy, originate from environmental Humphry Hatton risks. These risks are also linked to other risks that CEO, Deloitte Turkey 3 INTRODUCTION As we wrap-up the 9th year of CDP operations Although we are happy to see that the majority of in Turkey and prepare for the 10th, we report Turkey’s and the world’s economically signifcant an improvement in almost all areas of climate businesses are on the right track, a 2-degree change performance in 2018.