2 The Case for City Disclosure


2.1 Driving Economic Competitiveness


A city’s economic competitiveness is driven by its ability to reduce unnecessary cost, realize increases in investment, and foster innovation. Many companies have found the CDP process supportive in making their operations more efficient and in securing and maintaining outside investment. Similarly, by participating in the CDP process, cities may also be able to identify operational efficiencies and attract more investment.


2.1.1 Increasing Operational Effectiveness and Cost Savings CDP has more than 10 years of experience on advising and facilitating corporate carbon reporting and has demonstrated that disclosure empowers organizations to become more efficient and derive savings as a result. For example, EMC – an IT software and services company – has used the CDP reporting process to track strategy development through its annual responses and to conduct trend analysis, driving further efficiencies and reductions.15


In the context of rising energy bills, emerging carbon taxation, and impending cuts to public expenditure, the ability to realize measurable operational efficiencies and cost savings is increasingly important. High-performing cities will be able to drive their sustainability agendas while simultaneously being able to effectively manage their expenditure, offering efficient, value-added municipal services to their citizens.


To achieve efficiencies, municipalities need to have a solid grasp of the origins of their operating costs, so they can put in place mitigation plans to save both money and carbon. In London, for example, underground stations are implementing a range of energy saving initiatives, including switching off escalators during off-peak hours and turning off unnecessary lighting during daylight and engineering hours. These carbon cutting measures should help save an estimated £70,000 and over 500 tons of CO2


per year.16


2.1.2 Attracting Investment Making cities attractive places to live, work, study, and locate businesses – for large corporations as well as small and medium-sized enterprises – brings valuable tax receipts and regional development opportunities. Increasingly, demonstrating action on climate change issues is becoming a key selling point for cities looking to attract investment.


Approximately US$460 billion is now being channelled through green fiscal stimulus monies18


Andy Green, CEO, Logica


and additional money


is being made available through the recent introduction of climate change “adaptation funds”. For example, the UN Adaptation Fund has been established to finance adaptation projects in developing countries that are parties to the Kyoto Protocol – the total available resource is estimated at US$250–350 million by 2012.19


Within the EU, the


European Commission has adapted or created a series of specific financial mechanisms to help local authorities fulfil their sustainability commitments to the Covenant of Mayors.20


The World Bank


is also investing heavily in climate change adaptation and mitigation projects.21


“The City of Washougal recognizes that progressive climate change policy will provide a framework for improved resource management, regionalized and sustainable economic development, and a higher quality of life for Washougal’s citizens. The shift to a low-carbon economy represents an unprecedented opportunity to solve one of the greatest environmental challenges of our generation by creating more domestic, sustainable energy sources and in turn creating jobs, and stimulating a slowed economy.”17


Washougal, Washington CDP Cities Pilot 2008


7


“We have used CDP as the main tool to drive carbon reporting right across our organization. It has been really fantastic for us. We’ve discovered cost savings, and we have probably saved £10 million in various ways.”


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