Carbon Performance Leadership Index 2011
What does a performance band represent?
This year, for the second time, all companies with a sufficiently high disclosure score received a performance band; the qualifying threshold to receive a performance band was a disclosure score of 50. Disclosure scores of less than 50 do not necessarily indicate poor performance; rather, they indicate insufficient information to evaluate performance. However, it is reasonable to assume that companies which do not disclose well may not be taking much action on climate change.
Performance is grouped in six bands: A, A-, B, C, D and E which are defined by the following characteristics.
The Carbon Performance Leadership Index (CPLI) includes the companies in the highest performance band (A) and provides a valuable perspective on the range and quality of activities being performed by the Global 500 in response to climate change.
Eligibility for the Carbon Performance Leadership Index • Attain a disclosure score of 50 or above
• Attain a performance score greater than 70
• Score maximum performance points on question 13.1a (absolute emissions performance); at least a 2.65%5 reduction in carbon emissions must have been achieved as a result of emissions reduction activities over the last year
• Disclose gross global Scope 1 and Scope 2 figures
• Score maximum performance points for verification of Scope 1 and Scope 2.
Notes: • Band A- companies are not in the CPLI. They are strong performers, with a performance score high enough to warrant inclusion in the CPLI but they did not meet all other CPLI requirements
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• CDP reserves the right to exclude a company from the CPLI if there is anything in its response that calls into question its suitability for inclusion.
Performance scoring is an instructive exercise for all stakeholders. The score provides an indication of the extent to which companies are addressing the potential opportunities and risks presented by climate change. CDP recognizes that this is a process that will evolve over time. It is important for investors to keep in mind that the carbon performance band is not: • A measure of how low carbon a company is
• An assessment of the extent to which a company’s actions have reduced carbon intensity relative to other companies in its sector
• An assessment of how material a company’s actions are relative to the business; the score simply recognizes evidence of action.
CDP recommends investors review individual company disclosures in addition to performance rankings in order to gain the most comprehensive understanding of company performance. A listing of companies and their bands is included in Appendix I. Companies that did not qualify for a performance band appear in Appendix I with a dash (-) in the performance band column.
The CPLI for the Iberia 125 is listed in Table 5. 6% (3) of the responding companies comply with the criteria for inclusion in the CPLI. The CPLI companies have shown leadership in carbon performance through a fully integrated climate change strategy and maturity in climate change and GHG reduction initiatives.
More information can be found in the information request, supporting methodology and guidance documents, as well as within individual company responses at
www.cdproject.net.
Figure 15: Carbon performance elements
Band A/A- (>70) fully integrated climate change strategy driving significant maturity in climate change initiatives
Band B (>50) integration of climate change recognized as priority for strategy, not all initiatives fully established
Band C (>30) – some activity on climate change with varied levels of integration of those initiatives into strategy
Band D (>15) – limited evidence of mitigation or adaptation initiatives with no, or limited, strategy on climate change
Band E (<15) – little evidence of initiatives on carbon management potentially due to companies just beginning to take action on climate change
No performance score allocated below a disclosure score of 50%
Disclosure score (Max. 100)
Table 5: Carbon Performance Leadership Index for Iberia 125 Company
Country
Acciona Ferrovial
Gas Natural
Spain Spain Spain
Sector
Industrials Industrials Utilities
Performance Band
A A A
5 The Intergovernmental Panel on Climate Change (IPCC) has set a target of 80% reduction in emissions by 2050, based on 1990 levels. This equates to a 2.65% annual reduction.
Performance Band (A is highest)
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