@CDSBGlobal
Joseph'Donohoe'Energy'Reduc,on'
Advisor'Na,onal'Grid'
Lois'Guthrie'Execu,ve'Director'
CDSB'
Mike'Reid'Associate'Director'
Energy,'Environment'&'Sustainability'
Grant'Thornton'UK'LLP'
Ben'Richards'Radley'Yeldar'
Thursday'25th'July'2013
Patrick'Crawford'Corporate'Engagement'
CDSB'
Freddie'Woolfe'Engagement'Manager'
Hermes'EOS'
Compliance'and'prac,cali,es'of'using'
CDSB's'Repor,ng'Framework'
@CDSBGlobal
Compliance'and'prac,cali,es'of'using'CDSB's'Repor,ng'Framework'
Thursday'8th'August'2013
Patrick'Crawford'Corporate'Engagement'
@CDSBGlobal
Financial'statements'capture'less'than'20%'of'corporate'risks'(source:'Eurosif,'IIRC)'
Increasing'ESG'repor>ng'requirements'–'UK,'EU?'
Increasing'requirement'to'integrate'ESG'informa,on'with'financial'repor,ng'
Increasing'impact'of'climate'change'on'decisions'and'ac,ons'by'management,'investors'&'other'stakeholders'
Connec,ng'Non`Financial'and'Financial'Informa,on'
@CDSBGlobal
The$integra+on$of$climate$change1related$informa+on$into$mainstream$corporate$repor+ng.$
Objec,ve'
''When?'
January'2007:'Launched'at'World'Economic'Forum,'Davos,'managed'as'a'special'project'of'CDP'
Climate'change'informa,on'in'CDP'
disclosure'
'CDSB’s'
Framework'
Annual'Report'
''Members'• Main'accountants,'
ACCA,'ICAEW'…'• GHG'NGOs'e.g.'GHG'
management'ins,tute,'Carbon'Tracker,'TCR'
• Investors,'e.g.'Investor'Group'on'Climate'Change,'Ceres'
• Business,'e.g.''WBCSD,'BT,'WEF'
Standardize'climate'change`related'repor,ng'for'fair'and'transparent'markets'
''Why?'
The'need'for'CDSB’s'Repor,ng'Framework'
@CDSBGlobal
CDSB’s'Repor>ng'Framework''•'Complements'the'CDP'process'
•'Communicates'management’s'assessment'of'climate'change'in'annual'reports'
•''Connects'Financial'and'non`financial'informa,on;''harmonizing'with'exis,ng'accoun,ng'and'na,onal'standards'
•'Conformance'with'the'Framework'is'a'means'of'compliance'with'UK'greenhouse'gas'regula,ons'
•'Download'CDSB’s'Repor,ng'Framework'and'Guidance'from'www.cdsb.net/Framework''
CDSB’s'Repor,ng'Framework'
@CDSBGlobal
Communicating Climate Change “Reporting from the principle of communication rather than compliance.“ Hermes EOS Investors
CDSB’s'Repor,ng'Framework'in'Prac,ce'
@CDSBGlobal
A'stepping'stone'to'producing'integrated'reports''
CDP'Informa>on'request'
CDSB'Guidance'CDSB’s'Repor>ng'Framework'
THE'DATA' THE'LENS' THE'HELP' VISIBILITY'Mainstream'
Report'
CDSB’s'Repor,ng'Framework'in'Prac,ce'
@CDSBGlobal
PuOng'it'into'prac>ce''1.'Determina>on:'Decide'what'to'report''2.'Prepara>on:'Gather'clear,'consistent,'complete'Informa,on''3.'Presenta>on:'Ensure'disclosure'is'clear''4.'Review:'Check'accuracy'and'ensure'relevance'
CDSB’s'Repor,ng'Framework'in'Prac,ce'
CDSB
National Grid Corporate Perspective
National Grid carbon management systems
Carbon targets
Carbon budgets
Carbon data
Carbon performance
Climate change papers
• Reductions on 1990 baseline
• 2020: 45% reduction
• 2050: 80% reduction
• Set annually by business unit
• SAP CI
• Monthly data submission
• GHG Protocol
• Verification
• Presented to senior management committee and Executive board periodically
National Grid carbon reporting in Annual Report and Accounts
• Context of climate change
• Changing energy mix
• Energy policy and national targets
• Innovation and technology
• High level implications for National grid�s operations
Operating environment
National Grid carbon reporting in Annual Report and Accounts
• Climate Change sub-section
• Annual emissions volumes
• Progress against targets
• Emissions measurement methodology: GHG Protocol
• Emissions verification statement
• Pursuit of opportunities such as CCS
What did we achieve?
National Grid carbon reporting in Annual Report and Accounts
• Regulatory requirements
• Contribution to decarbonisation of energy system
• Reduction in National Grid emissions
• Adaptation to impacts of climate change to ensure reliability of energy system
• Risk Factors
• Failure to meet carbon targets
• Impacts of extreme weather
Additional Information
© 2013 Grant Thornton International. All rights reserved © 2013 Grant Thornton International. All rights reserved
Practicalities of Carbon Reporting • the reporting process • accounting issues • risk management • stakeholder engagement
8 August 2013
© 2013 Grant Thornton International. All rights reserved
Practicalities of Reporting – the process
15
Obligations Investor Needs Executive Overview Business Model review
Reporting Period and Boundary Standard and Policies
Materiality Timescales
link risk and prospects comparability
segmented information KPI comparison
Review against 1,2 & 3 Internal review External stakeholder review
REPORTING PROCESS REVIEW
PRESENTATION
PREPARATION
DETERMINATION
© 2013 Grant Thornton International. All rights reserved
CDP Workshop - Key Findings
16
! Data quality
! Reputational risk
! Verification
! International variation
! Suppliers
! Internal buy-in
! Leadership
! External interest
! Data gathering
! Boundary
! Added value?
! Responsibility
Accounting Issues Risk Management Stakeholder Engagement
© 2013 Grant Thornton International. All rights reserved 17
Thank you
Mike Reid
Associate Director
Grant Thornton [email protected]
©Radley Yeldar Ltd 1
Making it relevant Engaging techniques for climate change reporting Ben Richards, Radley Yeldar 8 August 2013 Say hello via Twitter @radleyyeldar
©Radley Yeldar Ltd 2
We help the world’s bravest, brightest and best organisations to find and tell their story, in one clear voice, by whichever means works best.
A bit about RY
©Radley Yeldar Ltd 3
Relevance and relationships BIS’ vision for the future of narrative reporting
Value chain
Strategy
KPIs
Risk
Performance
©Radley Yeldar Ltd 4
The value of a clear story
Working out your organisation’s story about climate change will help to make you consistent, credible and distinctive
©Radley Yeldar Ltd 5
The value of a clear story
Working out your organisation’s story about climate change will help to make you consistent, credible and distinctive
...in turn making it easier for
stakeholders to trust you and to become advocates for your
approach
©Radley Yeldar Ltd 6
The value of a clear story
Working out your organisation’s story about climate change will help to make you consistent, credible and distinctive
...in turn making it easier for
stakeholders to trust you and to become advocates for your
approach
...which helps drive performance
©Radley Yeldar Ltd 7
Who’s doing a good job? Unilever – joined-up and clear
©Radley Yeldar Ltd 8
Who’s doing a good job? British Land – clear and user-driven
©Radley Yeldar Ltd 9
Who’s doing a good job? GSK – transparency across the value chain
©Radley Yeldar Ltd 10
Who’s doing a good job? Siemens – material, focused, relevant
©Radley Yeldar Ltd 11
1. Join it up Show how climate change is relevant to your corporate story
2. Collaborate Work with other teams to increase relevance for all stakeholders
3. Prioritise Tell the story throughout – and offer the detail only where relevant
Top tips If you only do three things...
©Radley Yeldar Ltd 12
For more information
How does it stack up? Best practice research into UK and European reporting Visit ry.com for publications or event registration.
©Radley Yeldar Ltd 13
Stay in touch
Contact details: Ben Richards [email protected] Radley Yeldar Ltd 24 Charlotte Road London EC2A 3PB T 020 7033 0700 F 020 7033 0800 www.ry.com
@CDSBGlobal
Freddie'Woolfe'Engagement'Manager'Hermes'EOS'
Investor'perspec,ve'
@CDSBGlobal @CDSBGlobal
Patrick'Crawford'Corporate'Engagement'[email protected]'Tel:'+44'(0)'7770'382256'Skype:'patrickcrawford'
www.cdsb.net'
@CDSBGlobal'
Climate'Disclosure'Standards'Board'
facebook.com/CDSBGlobal'
Subscribe'to'our'newsleler'by'emailing'[email protected]'
Thank'you'