2011 Key Themes and Highlights
Verification
CDP is committed to increasing the level of verification of emissions disclosures in order to improve the quality of the information submitted by companies globally. In turn, this will build trust in carbon reporting and lead to an increase in the use of the data in analysis and decision making. Key drivers for verification include the increasing market demand from investors, customers, regulators, non- governmental organizations and other stakeholders for assured and reliable climate data.
Improved internal management processes that can be harnessed for competitive advantage is a key benefit of verification. In order to support this drive, CDP rewards verification highly in both disclosure and performance scoring in 2011 and it is one of the criteria for entry into the CPLI.
Verification levels in 2011: In 2011, a number of criteria were introduced to determine what is accepted as verification within CDP’s scoring methodology. It requires that a verification statement:
1. Is related to the relevant emission scope
2. Clearly states the type of verification that has been given and the standard used
3. Covers the current reporting year 4. Is undertaken by an independent third party
Verification of emissions has decreased in the year on year analysis in this report because CDP has strengthened its criteria to reflect the importance of verification. Whilst 69% (275) of respondents stated that they had gained or were in the process of gaining verification of Scope 1 or 2 emissions (an apparent increase of 9% compared with 2010), only 37% (148) met all criteria noted above for Scope 1 or 2 emissions, resulting in an overall decrease of 23%. CDP sees this higher standard as a key strategic priority to enhance the quality and reliability of the data reported by companies for the use of investors and consumers, both now and in the future. The sector breakdown of companies verifying their Scope 1 and Scope 2 emissions is shown in Figure 15.
The number of companies obtaining verification is similar for both Scope 1 and Scope 2 emissions for the majority of sectors. Energy and Utilities sectors, having significant scope 1 emissions have more companies obtaining verification of Scope 1 than Scope 2.
What is CDP doing to support reporting companies?
For 2012, CDP is providing further clarity on what constitutes an acceptable verification process, which will be communicated as part of the questionnaire consultation process in September 2011. Looking further ahead, CDP has launched a verification white paper and consultation on a verification roadmap (2013-2018) aiming to encourage more companies to verify their climate data. Visit
https://www.cdproject.net/ verification to find out more.
Figure 15: Percentage of companies in each sector with verification complete for at least a proportion of their emissions
Consumer Discretionary 40 38 Consumer Staples
26 26
Energy 43 25 Financials
34 34
Health Care 42 39 Industrials 36 38 Information Technology 37 34 Materials 47 45
Telecommunications 14
14 Utilities 50 30 0 10 20 30 ■ Scope 1 ■ Scope 2 40 % of sector respondents 50 60
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