Carbon Disclosure: Global Trends and Best Practice. Bryan Hartlin, Senior Consultant, ERM March 2011. Sustainability leaders.
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Carbon Disclosure:Global Trends and Best Practice
Bryan Hartlin, Senior Consultant, ERMMarch 2011
ERM is one of the leading sustainability consultants worldwide, providing environmental, health and safety, risk and social consulting services in influential assignments. We have extensive experience in carbon footprinting, life cycle assessment and assisting companies respond to CDP.
Emissions have doubled since 1990
Driven by economic and demographic development
High annual population growth compared to European countries but the lowest per capita GHG emissions
Increased in all sectors accept agriculture
A company’s current and potential success is not simply judged in terms of financial growth.
Carbon disclosure is part of a wider trend toward including more non-financial information into business reporting.
Investors, consumers and suppliers are becoming more sensitive to climate change, which can impact sales and market share.
Large enterprises are putting pressure on their suppliers to fill out the CDP questionnaire.
Opportunity to enhance brand and be seen as ‘carbon leader’.
Competitive advantage over those who don’t disclose.Building the business case
Measures the performance of companies that meet globally recognised CR standards and facilitates investmentLooking beyond CDP: Global initiatives
Provided 100,000 global suppliers with a survey to evaluate their own companies’ sustainability to be used in data base and toolLooking beyond CDP: Global initiatives
International standards their own companies’ sustainability to be used in data base and tool
Managing GHG risks and identifying reduction opportunities
Public reporting and participation in voluntary GHG programs
Participating in mandatory reporting programs
Participating in GHG markets
Recognition for early voluntary action
Source: GHG Protocol
Set operational boundariesPlanning: Set boundaries
Source: GHG Protocol
Have the right people involved to answer questions and collect data
How to collect data: measure, calculate, estimate, assume
Tools: cross sector vs sectoralMeasuring
Source: GHG Protocol
Set baseline data and plan for future updates
Third party credibility
Communicate to the public
Detail required depends on your communication plan and audienceManaging and informing
Physical Risk Disclosure approachCDP response tips
Not if, but when?
Business growth presents climate related risks and opportunities
“CDP has played important role in recognition of risks and opportunities related to climate change, associated with operations”
Challenge approach: Cutting carbon footprint through operational changes
Solution: Public disclosure – an annual marker to aid strategy
Benefit: Energy efficiency brings cost savings and business opportunities
Operational changes result in energy efficiency and guide product developmentCase study: Avaya Communications (Global)
“The CDP questionnaire… has helped to consolidate management of climate change across the organisation.”
Challenge approach: Building greater understanding of complex operations and supply chain
Solution: A collaborative approach with their supply chain
Benefit: Sharing best practice and growing awareness
Looking beyond direct operations to realise the scale of your carbon footprintCase study: PepsiCo (Global)
“Involvement with the CDP Supply Chain Program means we are able to build a better understanding of our corporate carbon footprint and the level of climate change risk within our supply chain.”
Final thoughts approach
Showcase innovative sustainable management
Realise financial savings
3000 organizations in 60 countries respond to CDP
Fundamental knowledge learning
Ability to report to other global initiatives and indices