Slides of a webinar featuring reporting experts from climate change and corporate reporting to highlight possible issues and discuss solutions to communicate climate change in mainstream reports.

1. @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'

2. @CDSBGlobal
Compliance'and'prac,cali,es'
of'using'CDSB's'Repor,ng'Framework'
Thursday'8th'August'2013
Patrick'Crawford'
Corporate'Engagement'

3. @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'

4. @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'

5. @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'

6. @CDSBGlobal
Communicating Climate Change
“Reporting from the
principle of communication
rather than compliance.“
Hermes EOS Investors
CDSB’s'Repor,ng'Framework'in'Prac,ce'

7. @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'

8. @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'

9. CDSB
National Grid Corporate Perspective

10. 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

11. 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

12. 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?

13. 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

14. © 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

15. © 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
PROCESSREVIEW
PRESENTATION
PREPARATION
DETERMINATION

16. © 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

17. © 2013 Grant Thornton International. All rights reserved 17
Thank you
Mike Reid
Associate Director
Grant Thornton
mike.reid@uk.gt.com

18. ©Radley Yeldar Ltd 1
Making it relevant
Engaging techniques
for climate change reporting
BenRichards,RadleyYeldar
8August2013
SayhelloviaTwitter
@radleyyeldar

19. ©Radley Yeldar Ltd 2
We help the world’sbravest,brightest and
best organisationsto find and tell their
story, in one clear voice, by whichever
meansworks best.
A bit about RY

20. ©Radley Yeldar Ltd 3
Relevance and relationships
BIS’ vision for the future of narrative reporting
Value chain
Strategy
KPIs
Risk
Performance

21. ©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

22. ©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

23. ©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

24. ©Radley Yeldar Ltd 7
Who’s doing a good job?
Unilever – joined-up and clear

25. ©Radley Yeldar Ltd 8
Who’s doing a good job?
British Land – clear and user-driven

26. ©Radley Yeldar Ltd 9
Who’s doing a good job?
GSK – transparency across the value chain

27. ©Radley Yeldar Ltd 10
Who’s doing a good job?
Siemens – material, focused, relevant

28. ©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...

29. ©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.

30. ©Radley Yeldar Ltd 13
Stay in touch
Contactdetails:
BenRichards
b.richards@ry.com
RadleyYeldarLtd
24CharlotteRoad
LondonEC2A3PB
T02070330700
F02070330800
www.ry.com

31. @CDSBGlobal
Freddie'Woolfe'
Engagement'Manager'
Hermes'EOS'
Investor'perspec,ve'

32. @CDSBGlobal@CDSBGlobal
Patrick'Crawford'
Corporate'Engagement'
patrick.crawford@cdsb.net'
Tel:'+44'(0)'7770'382256'
Skype:'patrickcrawford'
www.cdsb.net'
@CDSBGlobal'
Climate'Disclosure'Standards'Board'
facebook.com/CDSBGlobal'
Subscribe'to'our'newsleler'by'emailing'info@cdsb.net'
Thank'you'