This presentation, which was presented on 25.Sept.13 at Sustainable Brands' "New Metrics" conference, covers several observations and insights from CDP disclosure assessment that speaks to each of the key themes of the panel (Trends, Tremors and Tools). In trends, there are a few key metrics from the CDP Global 500 landscape that can serve as a rationale for why now is the time to hone in on sector specific challenges, such as a "Tremor" of minimally disclosed Scope 3, investments and lending emissions data from Financials and ending with a market developments of standardizing Scope 3 Investments calculations, as well as how the CDP platform can be utilized by Financials, and their equity holdings, to advance efforts to collect, disclose, manage and share this critically important corporate environmental sustainability data set.

1. www.cdp.net | @CDP
@StephenDonofrio
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Discovering corporate sustainability trends &
tremors through CDP disclosure assessment
Sustainable Brands
#NewMetrics
Philadelphia 25th September 2013
Stephen Donofrio
Vice President, Partnerships & Innovation
Stephen.Donofrio@CDP.net / 212.378.2086
132 Crosby Street, 8th Floor, New York, NY 10012

2. www.cdp.net | @CDP
@StephenDonofrio
 Trends
 Tremors
 Tools
Agenda
2
Increasing investor interest & corporate disclosure
Quality of corporate disclosure is ever-improving
Scope 3: Financed emissions minimally reported by financials
Scope 3: Investments methodologies exist, but no standard
Case Studies of Scope 3: Investments calculated by financials
CDP overview
Action and engagement on financed emissions

3. www.cdp.net | @CDP
@StephenDonofrio
 Trends
 Tremors
 Tools
Agenda
3
Increasing investor interest & corporate disclosure
Quality of corporate disclosure is ever-improving
Scope 3: Financed emissions minimally reported by financials
Scope 3: Investments methodologies exist, but no standard
Case Studies of Scope 3: Investments calculated by financials
CDP overview
Action and engagement on financed emissions

4. www.cdp.net | @CDP
@StephenDonofrio
Trends:
Increasing investor interest & corporate disclosure
To transform the global economic system to prevent
dangerous climate change and value our natural resources
by putting relevant information at the heart of business,
investment and policy decisions.
Forests
100
Companies disclosed
in 2012
Water
340+
Companies disclosed
in 2012
Climate Change
4600+
Companies
disclosed via CDP
in 2013
0
15
30
45
60
75
90
0
150
300
450
600
750
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Assets($trillion)
NumberofSignatories
CDP Signatories & Signatory Assets: 2003 - 2013
Climate change signatories Water signatories Forests signatories
Climate change assets Water assets Forests assets
4

5. www.cdp.net | @CDP
@StephenDonofrio
Trends:
Quality of corporate disclosure is ever-improving
Transparency
97%
min score for G500 disclosure
leaders in 2013
 8% increase from 2011
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Verification
71%
of G500 companies verified
their GHGs in 2013
 2X % from 2011

6. www.cdp.net | @CDP
@StephenDonofrio
 Trends
 Tremors
 Tools
Agenda
6
Increasing investor interest & corporate disclosure
Quality of corporate disclosure is ever-improving
Scope 3: Financed emissions minimally reported by financials
Scope 3: Investments methodologies exist, but no standard
Case Studies of Scope 3: Investments calculated by financials
CDP overview
Action and engagement on financed emissions

7. www.cdp.net | @CDP
@StephenDonofrio
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Energy:
 Energy companies’ reported scope 3 emissions are 4X higher than the
sector’s scope 1 and 2 emissions;
 98% of these are emitted through the use of sold products.
whereas…
Financials:
 Financials makes up 24% of respondents, however, represents only 0.6% of
total S1+2 emissions;
 Only 6% report the carbon impact of their investments…
Tremors:
Scope 3: Financed emissions minimally reported by financials

8. www.cdp.net | @CDP
@StephenDonofrio

- RBS’s true carbon emissions 2012, The World Development Movement (WDM)
Under the CDP, in 2012 RBS reported greenhouse gas
emissions of 735,437 tonnes of carbon dioxide equivalent
(tCO2-e)... RBS did not report any emissions resulting from the
money it loans to fossil fuel companies or projects. These
‘financed emissions’ resulting from the bank’s loans to coal, oil
and gas companies bring the bank’s 2012 carbon footprint to up
to 1,200 times the footprint reported...
Page 8

9. www.cdp.net | @CDP
@StephenDonofrio
Tremors:
Scope 3: Investments methodologies exist, but no standard
 Various approaches exist:
2o Investing Initiative id’ed a dozen
 Standardization efforts:
results in 2014-2015?
UNEP-FI (global) & VfU (regional)
 Methods mentioned in CDP’s
2013 disclosure cycle:
UNEP-FI (10 mentions), GHG Protocol (9
mentions), VfU (7 mentions), WRI (7
mentions) & WBCSD (3 mentions)
9


Investments are categorized as a
downstream scope 3 category
because the provision of capital or
financing is a service provided by the
reporting company.
- GHG Protocol (WRI/WBCSD)

10. www.cdp.net | @CDP
@StephenDonofrio
Tremors:
Scope 3: Investments methodologies exist, but no standard
10


There are many factors to be
considered including availability,
credibility, and consistency of
information as well as the direction
of the regulatory landscape in North
America.
- Bank of Montreal
2013 CDP Climate Change Disclosure
We have tested all available
methodologies to assess GHG
emissions from investments, but
none of them meets our criteria in
terms of reliability and bias.
- BNP Paribas
2013 CDP Climate Change Disclosure



11. www.cdp.net | @CDP
@StephenDonofrio
Case Studies of Scope 3: Investments calculated by Financials
Commonwealth Bank of Australia
 % of financing X total lifetime
project emissions
 1 project (25 year life) in ’12
 Uses Australian govt’s def. of
‘emissions intensive’ to identify
deals closed during reporting yr
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July1, 2011 - June 30, 2012
(metric tonnes CO2)
Scope 1 11,160
Scope 2 145,989
Scope 3 39,634,361
39,791,510
S3 Investments 39,469,868
S3 Investments/Total 99%
S3 Investments/(S1+S2) 251 times

12. www.cdp.net | @CDP
@StephenDonofrio
Case Studies of Scope 3: Investments calculated by Financials
Mizuho Financial Group
 % of equity x emissions as
reported to CDP or other
 Top 30 companies held by
the parent company
 Accounts for ~20% of the
value of consolidated non-
investment holdings
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April 1, 2012 - March 31, 2013
(metric tonnes CO2)
Scope 1 16,177
Scope 2 202,850
Scope 3 8,658,200
8,877,228
S3 Investments 8,601,803
S3 Investments/Total 97%
S3 Investments/(S1+S2) 39 times

13. www.cdp.net | @CDP
@StephenDonofrio
Case Studies of Scope 3: Investments calculated by Financials
Citigroup
 % of financing X total
lifetime project emissions
 1 project (30 year life) in ’11
 Project-specific GHGs are
derived from the plant’s
capacity & heat rate, the
carbon content of the fuel, and
projected capacity utilization
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January1, 2011- December31, 2011
Scope 1 36,751
Scope 2 1,039,178
Scope 3 7,528,870
8,604,799
Scope 3Investments 7,400,000
S3Investments /Total 86%
S3Investments /(S1+S2) 7 times
(metrictonnes CO2)

14. www.cdp.net | @CDP
@StephenDonofrio
 Trends
 Tremors
 Tools
Agenda
14
Increasing investor interest & corporate disclosure
Quality of corporate disclosure is ever-improving
Scope 3: Financed emissions minimally reported by financials
Scope 3: Investments methodologies exist, but no standard
Case Studies of Scope 3: Investments calculated by financials
CDP overview
Action and engagement on financed emissions

15. www.cdp.net | @CDP
@StephenDonofrio
Tools:
CDP overview
 CDP is an international, not-for-
profit organization providing the
only global system for companies
and cities to measure, disclose,
manage and share vital
environmental information.
 Mission is to transform the global
economic system to prevent
dangerous climate change and
value our natural resources by
putting relevant information at the
heart of business, investment and
policy decisions.
CDP has 501(c)3 charitable status in the U.S. via its fiscal agent and sponsor liaison,
Rockefeller Philanthropy Advisors
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16. www.cdp.net | @CDP
@StephenDonofrio
Tools:
Action and engagement on financed emissions
General Motivations:
 Pressure from NGOs.
 Companies want investor
feedback
 Mandatory reporting
requirements will increase
CDP Efforts:
 UNEP-FI Scope 3 - Investments task force
 CDP is increasing work on sector
disclosure & materiality focus
 CDP could be utilized as a financed
emissions reporting tool
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17. www.cdp.net | @CDP
@StephenDonofrio
Page 17
Discovering corporate sustainability trends
through CDP disclosure assessment
Sustainable Brands
#NewMetrics
Philadelphia, 25th September 2013
Stephen Donofrio
Vice President, Partnerships & Innovation
Stephen.Donofrio@CDP.net / 212.378.2086
132 Crosby Street, 8th Floor, New York, NY 10012