July 2018 Working Paper 2018/03 Analysis of Climate Change Reporting in the Public and Private Sectors MCGUINNESS INSTITUTE TE HONONGA WAKA Working Paper 2018/03 Analysis of Climate Change Reporting in the Public and Private Sectors July 2018 Title Working Paper 2018/03 – Analysis of Climate Change Reporting in the Public and Private Sectors Published Copyright © McGuinness Institute, July 2018 ISBN 978-1-98-851892-3 (Paperback) ISBN 978-1-98-851893-0 (PDF) This document is available at www.mcguinnessinstitute.org and may be reproduced or cited provided the source is acknowledged. Prepared by The McGuinness Institute, as part of Project ReportingNZ Authors Wendy McGuinness and Madeleine Foreman Research Team Nicholas Shackleton, Isabella Smith, Wei Kai Chen Editors Eleanor Merton, Ella Reilly For further information McGuinness Institute Phone (04) 499 8888 Level 2, 5 Cable Street PO Box 24222 Wellington 6142 New Zealand www.mcguinnessinstitute.org Disclaimer This information has been prepared with the intention of exploring how the current system of reporting works in practice, with a particular focus on the quality and quantity of information available to the public (rather than to the shareholder or investor). It is not to be used for investment purposes and the Institute takes no responsibility for those who use this report for those purposes. The McGuinness Institute has taken reasonable care in collecting and presenting the information provided in this publication. However, the Institute makes no representation or endorsement that this resource will be relevant or appropriate for its readers’ purposes and does not guarantee the accuracy of the information at any particular time for any particular purpose. The Institute is not liable for any adverse consequences, whether direct or indirect, arising from reliance on the content of this publication. Where this publication contains links to any website or other source, such links are provided solely for information purposes and the Institute is not liable for the content of any such website or other source. Publishing This publication has been produced by companies applying sustainable practices within their businesses. The body text and cover is printed on DNS paper, which is FSC certified. The McGuinness Institute is grateful for the work of Creative Commons, which inspired our approach to copyright. This work is available under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License. To view a copy of this license visit: www.creativecommons.org/licenses/by-nc-nd/3.0/nz Contents 1.0 Introduction ________________________________________________________________________1 1.1 Purpose of this working paper _______________________________________________________1 1.2 Purpose of Project ReportingNZ _____________________________________________________2 2.0 Methodology ________________________________________________________________________3 2.1 Data sets ________________________________________________________________________3 2.2 The standard methodology _________________________________________________________3 2.3 A note on the standard methodology _________________________________________________5 3.0 2017 Deloitte Top 200 companies [200] __________________________________________________6 3.1 Overview ________________________________________________________________________6 3.2 Applying the method ______________________________________________________________6 3.3 Results _________________________________________________________________________ 11 4.0 Government departments [31] _______________________________________________________ 17 4.1 Overview _______________________________________________________________________ 17 4.2 Applying the method _____________________________________________________________ 17 4.3 Results _________________________________________________________________________ 18 5.0 Crown agents and Crown entities [65] ________________________________________________ 19 5.1 Overview _______________________________________________________________________ 19 5.2 Applying the method _____________________________________________________________ 19 5.3 Results _________________________________________________________________________ 20 6.0 State-owned enterprises [14] __________________________________________________________ 21 6.1 Overview _______________________________________________________________________ 21 6.2 Applying the method _____________________________________________________________ 22 6.3 Results _________________________________________________________________________ 22 7.0 Local authorities [78] ________________________________________________________________ 24 7.1 Overview _______________________________________________________________________ 24 7.2 Applying the method _____________________________________________________________ 24 7.3 Results _________________________________________________________________________ 25 8.0 Examples of best practice ____________________________________________________________ 26 8.1 2017 Deloitte Top 200 companies ___________________________________________________ 26 8.2 Government departments __________________________________________________________ 38 8.3 Crown agents and Crown entities ___________________________________________________ 41 8.4 State-owned enterprises ____________________________________________________________ 44 8.5 Local authorities _________________________________________________________________ 45 9.0 Conclusions ________________________________________________________________________ 49 9.1 Observations ____________________________________________________________________ 49 9.2 Final comments __________________________________________________________________ 58 Abbreviations _________________________________________________________________________ 59 Glossary ______________________________________________________________________________ 60 References ____________________________________________________________________________ 62 Figures Figure 1: Standard methodology for each data set __________________________________________3 Figure 2: Phases of problem solving ______________________________________________________4 Figure 3: Deloitte Top 200 disclosure of climate change information by category ________________6 Figure 4: Deloitte Top 200 methodology _________________________________________________6 Figure 5: Deloitte Top 200 document availability __________________________________________8 Figure 6: Deloitte Top 200 document searchability _________________________________________9 Figure 7: Deloitte Top 200 disclosure of climate change information __________________________ 11 Figure 8: Deloitte Top 200 disclosure of climate change information by number of categories _____ 11 Figure 9: Deloitte Top 200 disclosure of climate change risks by nature of business ______________ 12 Figure 10: Deloitte Top 200 disclosure of climate change metrics by nature of business ___________ 12 Figure 11: Deloitte Top 200 disclosure of climate change costs by nature of business _____________ 13 Figure 12: Deloitte Top 200 disclosure of climate change controls by nature of business __________ 13 Figure 13: Deloitte Top 200 disclosure of climate change targets by nature of business ___________ 14 Figure 14: Deloitte Top 200 disclosure of climate change initiatives by nature of business _________ 14 Figure 15: Comparison of disclosure of climate change information by category between the Deloitte Top 200 also on the NZSX, and the Deloitte Top 200 not on the NZSX ____________ 15 Figure 16: Comparison of disclosure of climate change information by number of categories between the Deloitte Top 200 also on the NZSX, and the Deloitte Top 200 not on the NZSX ____ 15 Figure 17: Comparison of disclosure of climate change metrics, costs, controls and/or targets by category between 2017 Deloitte Top 200 companies also on the NZSX, and the same companies in 2016 ____________________________________________________________________________ 16 Figure 18: Comparison of disclosure of climate change metrics, costs, controls and/or targets by number of categories between 2017 Deloitte Top 200 companies also on the NZSX, and the same companies in 2016 ______________________________________________________________ 16 Figure 19: Government department disclosure of climate change information by category ________ 17 Figure 20: Government department methodology _________________________________________ 17 Figure 21: Government department disclosure of climate change information __________________ 18 Figure 22: Government department disclosure of climate change information by number of categories ________________________________________________________________________ 18 Figure 23: Crown agent and Crown entity disclosure of climate change information by category __ 19 Figure 24: Crown agent and Crown entity methodology ___________________________________ 19 Figure 25: Crown agent and Crown entity disclosure of climate change information _____________ 20 Figure 26: Crown agent and Crown entity disclosure of climate change information by number of categories _________________________________________________________________ 20 Figure 27: State-owned enterprise disclosure of climate change information by category __________ 21 Figure 28: State-owned enterprise methodology ___________________________________________ 22 Figure 29: State-owned enterprise disclosure of climate change information