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The Value of Reporting Corporate Climate Change
www.cdproject.net
Information: A Case Study of the Top 200 Federal
Suppliers
15 March 2011
Confidential
Agenda
What is the Carbon Disclosure Project
The Value of Reporting Corporate Climate Change Information
How are the Largest Federal Suppliers Benefitting
Case Studies of Companies at the Leading Edge
Copyright © 2011 Accenture All Rights Reserved.
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The Carbon Disclosure Project
launched in 2000 to accelerate
solutions to climate change by
putting relevant information at
the heart of business, policy and
investment decisions.
CDP – Overview
70%
551
Proportion of S&P 500 companies reporting via CDP in 2010
Institutional Signatory Investors
$71T
AUM represented by CDP’s
signatory investors
56
82%
Proportion of Global 500 companies reporting via CDP in 2010
3,000+
Number of Companies reporting via CDP in 2010
CDP Supply Chain Members
in 2010
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CDP Supply Chain
“Our analysis suggests that for consumer goods makers, high-tech players, and other
manufacturers, between 40 and 60 percent of a company’s carbon footprint resides
upstream in its supply chain—from raw materials, transport, and packaging to the energy
consumed in manufacturing processes. For retailers, the figure can be 80 percent.”
McKinsey Quarterly, 2008
CDP – Asking the right questions
The CDP Questionnaire inquires about:
• Management:
– Strategies, Targets, Emissions reduction activities
• Risks & Opportunities:
– Regulatory, Physical, Other
• Emissions & Energy reporting:
– Energy use, Greenhouse gas emissions
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The Value of Corporate Reporting through the CDP
Q) Has the process of gathering and disclosing your firm’s climate change data
through CDP directly resulted in any of the following outcomes:
Raised climate change
awareness in firm
83%
Positively impacted
company’s reputation
72%
Moved firm toward
emission reductions
62%
Identified emission hot spots
/ energy efficiency opps.
61%
Fulfilled customer
expectations
Improved profitability
59%
41%
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Efficiency and Value of Reporting – Findings from CDP 2010
• Reduction activities reported by suppliers have achieved savings of 32 million tonnes
of carbon dioxide equivalent and £221 million. With 83% of companies now
achieving emissions reduction, further efficiencies should be achieved in the future.
• 2010 provided evidence that average supplier performance was maintained or
improved in all aspects of carbon management compared with 2009.
• Government suppliers are providing insight into an array of implemented and planned
measures that deliver significant reductions in carbon and cost, which contribute to
operational efficiencies.
We are participating in this programme as it is key for identifying financially viable
energy efficiency opportunities … This is helping us not only to save money from
procurement processes, but also rightly to practise what we are asking others
to undertake.
- Martin Powell, Mayor of London’s environment advisor.
Source: CDP Public Procurement Report 2010
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Benefits of Reporting for small businesses
Office based organisation saved 95% of their energy consumption by
consolidating their computer terminals into one after measuring their
emissions and discovering that computers were responsible for the vast
majority. This saved them $500,000 per annum.
Before they measured their emissions they did not consider this a
business issue.
In compiling the response,
our organization has become
aware that climate change
issues can be addressed
relatively quickly and without
considerable expense.
C W Fletcher & Son Ltd (Precision Engineering for
Aerospace)
The CDP response has highlighted
our need to address climate change
issues within the company. Our
suppliers in turn are now adopting a
"green" policy which we hope to be
able to disclose in the 2011 CDP
questionnaire.
Business Furniture Direct
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Accenture and CDP are working with GSA to evaluate the climate
change reporting and management practices of the Top 200 Federal
contractors
• Identified the largest Federal contractors (by FY 2009 revenue) that
voluntarily responded to the 2010 CDP Information Request AND made their
response publicly available
• Accounted for over $161 Billion in Federal contracts in FY 2009
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By investing in emission reduction projects, the Top 200 Federal
contractors are reporting monetary savings of nearly $5.0B, and
annual emission reductions of 203M mtCO2e.
$2,300
Impact of Emission Reduction Investments
Money Saved ($ Millions)
(bubble size indicates amount of CO2e reductions)
$1,800
Financials
Industrials
$1,300
Materials
$800
Utilities
$300
Health Care
Consumer Staples
Telecommunications
$(5,000)
Consumer Discretionary
$(200)
Energy
Information
Technology
$5,000
$15,000
$25,000
$35,000
$45,000
Money Invested in Emission Reductions ($Millions)
* Foreign currencies were converted May 31, 2010 using OANDA
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Energy efficiency and clean energy are common approaches to
reducing Scopes 1 & 2 emissions
Common Approach Across Sectors
Energy
Efficiency
 Lighting upgrade
 Energy control
modifications
 Capital improvements
Utilities and Consumer Staples
Energy
Generation /
Distribution
 Solar
 Wind
 Biomass
 Cogeneration Plants
Financials
Data Centers/
Green IT
 Data Centers
 PC power mgmt
 Energy Star
Equipment
Financials, Health Care & Industrials,
Information Technology
Real Estate
 High performance
buildings
 Reduce real estate
footprint (rationalization)
Industrials
Transportation
 Increased use of rail
 Alternative transportation
fuels
 Fuel-efficient vehicles
Industrials and Consumer Staples
Logistics
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 Route optimization
 Reduced idle time
 Limited top truck speed
Additional Emission Reduction Activities
Other
 Reduce/ recycle waste
 Capturing landfill
emissions
 Waste-to-energy
Technology
 Non-CO2 GhG Reductions
 Carbon Offsets
 Renewable Credits
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Specific investments among the Top 200 companies illustrate the
innovative ways companies are reducing costs and reducing
emissions
Company
Monetary
Investment
Monetary
Savings
Annual Emissions
Reductions Achieved
(mtCO2e)
Energy Efficiency
machinery and
equipment projects
$ 1.54M
$ 1.63M
29,868
Switched fuels from
coal to natural gas
$ 550M
$ 27.5M
(in year 1)
2,000,000
Fuel oil was replaced by
agro-waste
$0
$ 130,000
4,000
Use of event recorders
and employee training
to improve fuel
efficiency
$ 18M
$ 32.5M
56,000
Server consolidation,
decommissioning,
virtualization and cloud
computing.
$ 450M
$ 720M
709
Emission Reduction
Project
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Several of the Top 200 Contractors are working with
suppliers to improve GhG performance
The common goals of companies addressing supply chain
emissions :
• Calculate GhG emissions in the supply chain
• Estimate the proportion of the organization’s total GhG
emissions in the supply chain
• Work across suppliers to develop a strategy for GhG reductions
• Establish procurement criteria to evaluate supplier
performance on GhG emissions
Copyright © 2011 Accenture All Rights Reserved.
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Why is Collecting and Reporting Climate Change
Information Valuable???
• Provides new insights into energy efficiency and cost reduction
opportunities
• Improves profitability and organizational reputation
• Meets growing public demand for smaller organizational
footprint
• Increases engagement / cooperation with suppliers
− Builds new opportunities to reduce emissions and costs
− Improves reporting process and results in a more complete
GhG inventory report
• Drives entity-wide improvement in data collection, reporting
and operational efficiency….and spurs innovation
Copyright © 2011 Accenture All Rights Reserved.
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For Follow-up Questions
Kevin Eckerle
Accenture, Sustainability Services
Two Commerce Square
2001 Market Street, Suite 2400
Philadelphia, PA 19013
[email protected]
Copyright © 2010 Accenture All Rights Reserved.
Leah Stern
Carbon Disclosure Project
Senior Project Manager
6 West 48th Street, 10th Floor
New York, NY, USA, 10003
[email protected]
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