CDP 2013

15 Feb 2013Archived News Shohini Parker Climate Change Matters

The CDP (Carbon Disclosure Project) is a voluntary investor initiated project that has been tracking company emissions since 2002. In early February, the CDP distributed its annual questionnaires for 2013 to the ASX200, with the climate change questionnaire due by 30 May 2013 and the water questionnaire due 27 June 2013.

Why participate in CDP?

The CDP acts on behalf of over 722 institutional investors to compile a database of “primary corporate climate change information”. Interest in understanding business exposure to carbon continues to grow, evidenced by the activities of bodies such as the Investor Group on Climate Change, representing approximately AUD$900 billion in Australia and New Zealand and similar networks in Europe and the United States.

Companies completing the CDP’s information request have the opportunity to provide information on a range of factors over and above their emissions data. These include physical and regulatory risks and opportunities, emissions reduction plans and investment risks and opportunities. Through the CDP process, the financial community has access to the best available corporate climate change information to help direct investment. In 2012, over 80% of requested companies responded to the CDP questionnaire.

What is the business value in creating a high quality CDP submission?

Within the business community, CDP remains a high-profile source of information for investors and other stakeholders. Unlike sustainability reports, where content can be perceived as limited to the areas where companies feel most confident, responses to the broad-based scope of the CDP questionnaires provide a more comprehensive view of a company’s ‘blind spots’ as well as their strengths.

As such, a strong submission to CDP serves to:

  • Address investors’ questions / concerns by managing the company’s risk profile
  • Enhance brand and business reputation through participation and disclosure
  • Promote a proactive management culture – one that understands the market landscape (eg. scope 3 emissions), the strategic response to which is information used by financial markets
  • Fulfil requirements of disclosure as a prerequisite for capital access for some financiers.

Energetics strongly encourages its clients to participate in the Carbon Disclosure Project. We have extensive experience in assisting companies to clarify their carbon strategies to prepare documentation for the CDP, and have helped a number of our clients to achieve global and sectoral CDP Leadership status.

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