Carbon Disclosure Project Reporting Made Easy: Trends & Techniques from the Trenches

Transcription

1 *Don t forget to call in to our teleconference line for the audio of this webinar: Primary Dial-In: (877) Passcode: Carbon Disclosure Project Reporting Made Easy: Trends & Techniques from the Trenches

2 Agenda 1. Introduction 2. Direct from CDP, learn what's new for 2013 CDP submission 3. Delphi s CDP process and toolkit with a review of response techniques and strategies 4. ARC Resources Ltd. and Tim Hortons share why they disclose, their challenges and successes, and best practices 5. Q&A

3 Speaker Introductions Stephen Donofrio Manager, North America, Carbon Disclosure Project (CDP) Evelyn Walker Vice President Western Canada, The Delphi Group Jackson Hegland Coordinator, Environmental Strategies, ARC Resources Ltd. Jenna Feldman Manager, Sustainability and Responsibility, Tim Hortons

4 The Delphi Group- Who Are We? Sustainability consulting and environmental risk management services founded 25 years ago Implementing carbon management strategies since 1988 Offices across Canada CDP s first and only consultancy partner in Canada

5 Delphi Group Core Business Areas

6 Delphi Group Webinar February 14, 2013 Carbon Disclosure Project Reporting Made Easy: Trends and Techniques from the Trenches Name of presentation February 14, 2013 Name of presenter Stephen Donofrio Manager, CDP North America

7 Delphi Group Webinar February 14, 2013 Agenda - Use of CDP Data - Changes to the CDP Questionnaire & Scoring Methodology

8 Delphi Group Webinar February 14, 2013 Broad use of CDP data Pension funds -engagement -shareholder resolutions e.g.: CalPERS, CalSTRS Passive equity managers -proxy voting -meetings with company management e.g.: BlackRock, State Street Broker dealers -buy/sell recommendations -sector analysis e.g.: Goldman Sachs Research, HSBC Active equity managers -stock selection -proxy voting and company meetings e.g.: Legg Mason, Neuberger Berman SRI funds -screening equity universes -carbon sensitivity of portfolios e.g.: Calvert, Domini, Rockefeller AM CDP Data providers -ESG data within financial databases e.g.: Bloomberg, MSCI Third party research -research and ESG ratings -environmental risk analysis e.g.: MSCI, Trucost Investment advisors -risk models -country/sector/company analysis e.g.: First Affirmative Index providers -carbon efficient equity indices -carbon efficient bond indices e.g.: Markit, Nedbank (S Africa) Academia -studies on non-financial reporting -correlation analysis e.g.: Harvard Business School Source: Carbon Disclosure Project.

9 Delphi Group Webinar February 14, 2013 Sell side Green ETF Sector Breakdown: Nedbank Green Index v ALSI Nedbank Green Index (NGRN) Cumulative outperformance of 35.71% since inception

10 Delphi Group Webinar February 14, 2013 Sell side Green ETF Starting universe: (emphasis on tradability) Green ETF Methodology South African Large Cap and Mid Cap companies on the Johannesburg Stock Exchange (Top 100) Sufficiently liquid companies Selection criteria: (emphasis on Disclosure) 2010: CDP Disclosure score of 75 or above. 2011: For existing constituents, a Disclosure score of 70 or above. For new constituents, a Disclosure score of 75 or above. Performance ranking above E. Weighting criteria: (emphasis on Performance) 2010: Based on all four CDP performance bands. Band A receives approximately 4x the weight of Band D. 2011: Based on top four CDP performance bands.

11 Delphi Group Webinar February 14, 2013 Changes to the CDP Questionnaire and Scoring Methodology Questionnaire Questionnaire Guidance Document is available for download: s/guidance/cdp2013reportingguid ance.pdf Changes from 2012 to 2013 are detailed in a document titled Changes document for 2013 available for download: US/Pages/guidance-climatechange.aspx Scoring Methodology Scoring information (methodology, background materials, etc) are available for download: US/Pages/guidance-climatechange.aspx Changes from 2012 to 2013 are detailed in a document titled Changes document for 2013 available for download: US/Pages/guidance-climatechange.aspx

12 Delphi Group Webinar February 14, 2013 Overview of Changes Question level changes: 0: Introduction 1: Governance 2: Strategy 3: Targets 4: Communications 5: Risks 6: Opportunities 7: Methodology 8: Emissions 9: S1 Breakdown 10: S2 Breakdown 11: Energy 12: Emissions Performance 13: Emissions Trading 14: Scope 3

13 Delphi Group Webinar February 14, 2013 Overview of Changes Scoring methodology changes: Recognizing incentives for higher levels of management/whole company in performance score Disclosure scoring has been introduced for question 3.3a. The scoring methodology for risks and opportunities has been revised to provide clearer definitions of the data points requested Scale A and Scale B have been removed. The scoring methodology now explicitly states all places where a higher level of detail is required

14 Delphi Group Webinar February 14, 2013 Selected changes Questionnaire and scoring methodology changes to Emissions sections: Change in approach for reporting under CCRF (see Companies required to use CEMS under regulatory regimes Emissions performance Country Lists (Scope 1 and 2) Grid References at Facility Level (Scope 1 only) Scope 2 contractual emissions

15 Delphi Group Webinar February 14, 2013 CDP Support for Company Disclosure Q&A (complimentary): CDP Consultancy Partners (Delphi is a CDP Canada Partner): CDP Reporter Services (CDP data intelligence tools, 1-on-1 Account Management, includes Response Check): contact andrea.tenorio@cdproject.net for more information Pre-submission CDP response review, Response Check, by CDP Consultancy Partners: CDP Canada Spring Workshop 2013 CDP USA Spring Workshop 2013 When: March 20, 2013 Where: Toronto Stock Exchange, Toronto, ON When: April 5, 2013 Where: New York Stock Exchange, New York, NY For more information: CDP Water Disclosure Webinars March 13 th July 10 th :

16 Delphi Group Webinar February 14, 2013 Stephen Donofrio Manager, CDP North America Office: Mobile:

17 EVELYN WALKER Thank you VICE PRESIDENT WESTERN CANADA THE DELPHI GROUP Q& A

18 The Art of Leveraging Your CDP Efforts for Business Value Influence internal stakeholders with a credible third party reporting framework for GHG data and strategy information The CDP forces you to be aware of alignment gaps between your strategy, GHG initiatives and data collection Communicate your efforts to stakeholders to ensure they know you are participating in an effort that can help with risk reduction on an important issue

19 How clients use CDP Benchmarking services Identification of leading/best practices Understand how companies are performing

20 The toolkit: Optimizing your CDP submission Online Response System (ORS) (Re) Check Submit Anxiously Await New Score Submit Plan Drivers Lessons Learned Due Diligence Data/Content CDP Changes Timeline Gap analysis and recommendations Review Submission Response Check Approvals Process Check Do Conduct Interviews Collect Data Update Content

21 Inside the Toolkit: Drivers Submit Check Plan Do What is the intention of reporting? Leadership Transparency Stakeholders Rating Schemes Score Improve Internal Buy-In Accuracy Brand Recognition Competitors Plan

22 Inside the toolkit: Lessons Learned Submit Check Plan Do What lessons did you learn from the last reporting cycle? Inaccurate Data/GHG Inventory Issues Improper Data Input Question Logic Problems Timeline New Content Forgotten Low Score Unanswered Questions Plan

23 Collect Data Submit Check Plan Do Engage internally Collect data and begin populating questionnaire Do

24 Gap Analysis & Recommendation Submit Check Plan Do Conduct gap analysis on the submission Check Review and revise submission Submit for internal review

25 Submit Submit Check Plan Do Submit Update submission if comments are received Submit to the CDP through the online response system

26 For more information please contact: Ted Ferguson Vice President The Delphi Group (613) ext. 228 Evelyn Walker VP Western Canada, The Delphi Group (587)

27 ARC Resources Ltd Jackson Hegland Coordinator, Environmental Strategies February 14, 2013

28 CORPORATE OVERVIEW ARC Resources Ltd., established in 1996, is one of Canada's largest publicly traded conventional oil and gas companies with properties located in Western Canada. ARC is results-focused, dividend paying corporation with a goal to provide superior, long-term returns to shareholders through risk-managed value creation. NE BC/ NW AB NORTH AB REDWATER Crude Oil Liquids-rich Gas Dry Gas Production (2012) 93,500 boed PEMBINA Enterprise Value ~$8 billion (1) Member of S&P TSX 60 Index (1) Market Capitalization as at December 31, 2012 and net debt as at September 30, 2012 S AB/ SW SASK SE SASK/ MANITOBA

29 Carbon Disclosure at ARC

30 Carbon Disclosure Project A History at ARC Reporting to the CDP since 2007 (CDP5) Named to the Carbon Disclosure Leadership Index every year since 2008 (CDP6) Second highest scoring report on the CDP Canada 200 list in 2012 At ARC we take pride in the quality of our financial and corporate governance reporting. With rising demand from the public for environmental disclosure, it was natural for us to aim for best in class in this area as well. Being recognized as a leader by the Carbon Disclosure Project further enhances our reputation for excellence in disclosure and leadership. November David Carey Senior Vice President, Capital Market

31 Why report to CDP? A tool for performance enhancement Risk Management Investors Employees Risk/Opportunity Identification Reputation Communicate efforts (external) Performance Measurement Results Transparency Accountability Communicate efforts (internal & external) Strategic Planning Planning & prioritization Gap analysis Best practices Communicate efforts (internal)

32 Implementation

33 Implementation Process & Planning Apr- May CDP Submission Performance Review January Eco-Efficiency Program GHG Performance Feb-Apr Corporate Reporting Data Management Sept Capital Budget Planning & Development Oct CDP Report Best Practices Evaluation

34 Implementation Key Challenges Data collection Time management Report writing Internal stakeholders

35 Thank You Jackson Hegland Coordinator, Environmental Strategies ARC Resources Ltd (403) For further information about ARC Resources please visit our website Or contact: Investor Relations T F Toll Free ARC Resources Ltd. 1200, Avenue S.W. Calgary, AB T2P 0H7 ARC Corporate Responsibility Report:

36 For more information please contact: Ted Ferguson Vice President The Delphi Group (613) ext. 228 Evelyn Walker VP Western Canada, The Delphi Group (587) Please contact Ted Ferguson for slides and a recording of the webinar after the event