ABN Newswire

Carbon Disclosure Project (CDP) Helps Companies Prepare For Emissions Trading

newsroom@abnnewswire.net — Fri, 1 June 2007 17:25:43 GMT

As the Howard Government prepares its response to the Task Group on Emissions Trading's Report provided to the Government yesterday, Environment Ministers from each Australian State and Territory are meeting in Cairns to put the final touches on a mandatory greenhouse and energy reporting system for companies.

Given that robust company emissions data is required to underpin an emissions trading scheme it is encouraging to see that companies are already progressing with voluntary reporting under the Carbon Disclosure Project (CDP). As of May 31, the official deadline for company responses to the CDP, more than 60% of ASX100 companies have indicated a willingness to disclose information and data on climate change and greenhouse gas emission.

Companies responding to the CDP will be at a distinct advantage when the state-based mandatory reporting system begins on 1 July 2008 (first reporting year 1 July 2008 ? 30 June 2009). As part of the CDP companies are asked to report their greenhouse emission and energy data, which has required them to develop data collection and reporting systems.

Last year over 70% of respondents provided some quantification of their emissions profile. While just under 10% of reporting companies provided the level of quantification and verification of emissions data that would be required for an emissions trading scheme, the practice of reporting under the CDP has encouraged a larger number of companies to develop emissions data collection and reporting systems.

Early indications from this year's CDP responses are that the number of companies undertaking some form of data verification has increased over the past year.

"We believe that early work on developing a greenhouse gas emissions inventory will give Transurban an advantage should we be required to take part in a mandatory reporting regime in the future. Participating in the CDP helps us focus on continually improving our data collection and verification, enabling us to develop more effective emissions reduction strategies," says Melissa Clarkson, Corporate Social Responsibility Manager at Transurban Group.

According to Joanne Saleeba, Executive Director, Investor Group on Climate Change (IGCC) questions being asked by companies through the CDP process evidences the range of issues and challenges that companies are grappling with when it comes to collecting and reporting on their greenhouse gas emissions. The IGCC along with Goldman Sachs JBWere and The Climate Institute have once again partnered with the CDP to expand the project to ASX100 and NZX50 listed companies.

"Whether its questions regarding the use of international standards, what emissions are included and excluded, how to avoid double counting or how to deal with mergers or acquisitions from one year to the next... all these issues need to be resolved for each company in the lead up to mandatory greenhouse reporting and more importantly emissions trading," said Andrew Gray, Head of Quantitative Research at Goldman Sachs JB Were.

While the official deadline for responses was May 31, the CDP Secretariat based in London has provided an extension to companies that would still like to respond to the information request.

"The need for companies to develop their emissions data collection and reporting systems doesn't finish at the end of the CDP process" said Nicolette Boele, Director Strategic Projects, The Climate Institute, "we hope that more companies will use the extension to disclose their emissions profile to investors and the broader community. We will continue to encourage companies to develop their energy and greenhouse reporting in the lead up to mandatory reporting and the introduction of an emissions trading scheme."

ABOUT CARBON DISCLOSURE PROJECT (CDP) The CDP provides a coordinating Secretariat for institutional investor collaboration regarding climate change. CDP's aim is twofold: to inform investors regarding the significant risks and opportunities presented by climate change; and secondly, to inform company management regarding the concerns of shareholders regarding the impact of these issues on company value. The CDP was launched in December 2000 at No 10 Downing St and the 2006 report represents the fourth time institutional investors have been asked to collectively sign a single global request for disclosure of shareholder relevant information regarding greenhouse gas emissions.

For further information, please go to: http://www.cdproject.net

Australian and New Zealand Signatories to CDP5

  ARIA (Australian Reward Investment Alliance)
  Catholic Superannuation Fund (CSF)
  Christian Super
  Guardians of New Zealand
  Superannuation
  HESTA Super
  Industry Funds Management
  Local Government Superannuation Scheme
  VicSuper Proprietary Limited
  AMP Capital Investors
  Australia and New Zealand Banking Group Limited
  Australian Ethical Investment Limited
  BT Financial Group
  Five Oceans Asset Management Pty Limited
  Hastings Funds Management Limited
  National Australia Bank Limited
  Portfolio Partners

ABOUT INVESTOR GROUP FOR CLIMATE CHANGE (IGCC) The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand investors with over $225 billion in funds under management, who recognise that the financial return of an investment has the potential to be impacted by climate change. As such, the IGCC aims to ensure that the risks and opportunities associated with climate change are incorporated into investment decisions for the ultimate benefit of individual investors. The IGCC seeks to raise awareness of the potential impacts on investments, both positive and negative, resulting from climate change and to provide information and tools to assist the investment industry to understand and incorporate climate change into investment advice and investment decisions.

For further information, please go to: http://www.igcc.org.au

Members of IGCC

  Australian Reward Investment Alliance
  AMP Capital Investors
  Babcock & Brown Environmental Investments Limited
  BT Financial Group
  Catholic Superannuation Fund
  Cleantech Ventures
  Colonial First State Global Asset Management
  Eureka Funds Management
  Five Oceans Asset Management
  Goldman Sachs JB Were
  The GPT Group
  HESTA
  Industry Funds Management
  Mercer Investment Consulting
  Portfolio Partners
  Starfish Ventures
  Suncorp Investment Management
  VicSuper
  Vision Super

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ACN Newswire supports the Carbon Disclosure Initiative, Environmental Sustainability and Corporate Social Responsibility issues by participating listed companes. Please contact ACN Newswire for additional information. +61 2 9999 5810
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Joanne Saleeba 
Executive Director 
Investor Group on Climate Change 
Australia/New Zealand 
Phone: 1300 794 047 
Mobile: 0407 994 413 
Email: secretariat@igcc.org.au

Investment Community Calls on Australian Governments to Accelerate Reporting of Greenhouse Gas Emissions by Companies

newsroom@abnnewswire.net — Mon, 16 Apr 2007 14:30:22 GMT

In the lead up to their meeting on Friday, the Australian investment community, led by the Investor Group on Climate Change Australia/New Zealand, is calling on the Council of Australian Governments (COAG) to accelerate progress on the implementation of mandatory reporting of greenhouse gas emissions by Australian companies.

The Investor Group on Climate Change Australia/New Zealand (IGCC) represents institutional investors with total funds under management of over A$225 billion, and others in the investment community interested in the impact of climate change on investments. 'IGCC supports mandatory reporting of energy and greenhouse by business, however we also support a regulatory mechanism that is flexible and allows companies to report their climate change risks and opportunities consistent with international disclosure initiatives.' stated, VicSuper CEO and Chair, IGCC Mr Bob Welsh.

Investors require access to information on companies greenhouse gas emissions as well as their climate change management and mitigation strategies to ensure that the business risks and opportunities associated with climate change are incorporated into investment decisions. 'It is clear that climate change will impact the earnings of companies in our investment universe and these impacts, both positive and negative, need to be included as part of our mainstream investment analysis' commented Ms Amanda McCluskey, Sustainability Manager, Portfolio Partners and Deputy Chair, IGCC.

Adequate and accurate accounting and reporting of greenhouse gas emissions by Australian companies is also a vital precursor to any emissions trading scheme in Australian. According to Mr Welsh, "the business and investment community is united in its call for the introduction of an emissions trading scheme in Australia. Such a scheme, however, is contingent upon a clear and consistent framework for accounting and reporting of greenhouse gas inventories being in place. Further delays in the establishment of such a framework at the national level will result in increased investor uncertainty, leading to renewed support for the States and Territories to fast-track the introduction of mandatory reporting through a variation to the National Pollutant Inventory, which is already in place for the reporting of emissions to the environment by companies."

Investors are already calling on companies to voluntarily report In partnership with the Carbon Disclosure Project (CDP), the IGCC and Goldman Sachs JB Were are currently requesting investment relevant climate change information from ASX100 and NZX50 companies.

The CDP is a collaboration of over 280 institutional investors with funds under management of over US$41 trillion. The CDP represents an efficient process whereby these investors collectively sign a single request for disclosure of information on companies' greenhouse gas emissions and climate change strategy. The CDP request is currently sent to almost 3000 of the world's largest companies.

In addition, through the International Climate Risk Disclosure Framework (CRDF) the investment community has clearly articulated the disclosure expected from companies in relation to climate change. The CRDF was developed by investors globally through the Institutional Investor Group on Climate Change (UK), the Investor Network on Climate Risk (US) and IGCC.

Both the CDP and the CRDF are based on the international standard Greenhouse Gas Protocol -- Corporate Accounting and Reporting Standard, developed by the World Business Council for Sustainable Development and the World Resources Institute. Consistency with international standards key Australian investors encourage COAG to implement mandatory reporting of greenhouse gas emissions by Australian companies based on the Greenhouse Gas Protocol. This would ensure consistency with existing company energy and greenhouse reporting under the CDP, CRDF as well as the Global Reporting Initiative.

Ms McCluskey highlighted that, 'failure to establish mandatory reporting requirements that take these international disclosure standards and initiatives into consideration will result in additional and onerous, rather than streamlined, reporting requirements for Australian companies and greater uncertainty and confusion in the investment community.' Importantly, consistency with the Greenhouse Gas Protocol will facilitate the future international harmonisation of domestic emissions trading schemes.

The development of an emissions trading scheme for Australia, whether international or domestic in scope, needs to be cognisant of the basis for greenhouse gas accounting and trading at the international level' stated Mr Welsh.

For information on IGCC please see http://www.igcc.org.au
For information on CDP please see http://www.cdproject.net
For information on CRDF please see http://www.unepfi.org

Joanne Saleeba
Executive Officer
Investor Group on Climate Change 
Australia/New Zealand
Phone: 1300 794 047
Mobile: 0407 994 413
Email: secretariat@igcc.org.au