CDP is a non-profit organization that collects environmental data from corporations to share with investors and purchasers. The document discusses CDP's concerns about undue corporate influence over climate change legislation and policies. It summarizes a report produced by CDP on responsible corporate engagement in climate policy. The report identifies key areas of potential corporate influence and proposes principles of legitimacy, opportunity, consistency, accountability, and transparency for responsible engagement. It also shares findings from CDP's information request on how corporations influence climate legislation.
3. What is CDP?
A not-for-profit that has pioneered, and provides, the
only global natural capital disclosure; and
A system for companies and cities to measure and
manage their environmental risks; and
A means to recognise cost savings and financial
opportunities created by reducing impacts on natural
resources.
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www.cdp.net | @CDP
4. How does it work?
Investors and
purchasers
Information
Authority
Information
Corporations
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www.cdp.net | @CDP
Authority
5. Key CDP Facts
CDP has an investor mandate from institutional investors that
manage 78 trillion dollars in assets
81% of the world’s largest corporations use CDP to disclose vital
environmental information to investors and major purchasers
Over 4100 companies report to our Climate Change programme;
593 to CDP water; 100+ to CDP forests (pending upcoming report),
and 60 through the supply chain programme.
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www.cdp.net | @CDP
7. Why CDP became concerned with undue legislative influence
"There is a serious group of companies that have
a voice that is much louder, that is better funded,
that operates much more in unison and that is still
stuck in the technologies and the fuels of
yesterday….
From our perspective what we really need from
visionary companies such as all of you is to have
a very active engagement with the policy makers
who decide the policy at home and the
international policy”
CDP Global Forum, September 2011
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www.cdp.net | @CDP
Christiana Figueres,
Executive Secretary, UNFCCC
8.
Compared with companies’ efforts to green their operations, corporate
political actions such as lobbying can have more influence on
environmental protection and arguably represent the greatest impact a
company can have on the environment.
Professor Michael Toffel, Harvard Business School
www.cdp.net | @CDP
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9. Following consultation, the indentified key areas of corporate influence
Direct influence
Trade associations
This includes influence through lobbying, law
Primary research informed us that trade
firms, public affairs agencies, consultations,
associations were the most powerful influencers
working groups, technical advice
over climate legislation
Direct
Production of research
Internal consistency
The funding of research institutions, think tanks
Many international corporations lack knowledge
and other consultancies etc. is key in informing
of the multitude of differing and often contradictory
public debate and knowledge on climate change
ways they may be influencing legislation in
different geographies
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10. What can we learn
from the report: ‘Guide
for Responsible
Corporate Engagement
in Climate Policy’?
www.cdp.net | @CDP
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11. What methodology was used?
13 studies or guides that offer principles, analysis and
recommendations for responsible corporate policy engagement;
Nearly 75 individuals from more than 60 organizations (across 20
countries) helped inform this report;
Data from CDP 2013 Questionnaire, the UN Global Compact,
Implementation Survey, and The Caring for Climate Progress Report
2013.
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www.cdp.net | @CDP
12. Five Core Elements of Responsible Engagement
Legitimacy
Opportunity
Consistency Accountability Transparency
• Building trust;
• Recognizing
• Staying true to
• Responsibility
• Making
• Doing no harm
risk mitigation,
climate science
to all
company views,
(Climate risk);
competitive
and objective
stakeholders;
intentions,
• Genuine
advantages and
analysis;
• Broad
activities,
interest in policy
future industry
• Aligning public
perspective due
influences, and
outcomes;
transitions.
and private
diligence;
outcomes on
• Defining a
messages
• Managing
climate policy
material interest.
across space.
inconsistencies.
public.
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www.cdp.net | @CDP
13. Proposed practical solutions for corporations to take
Identify
Inventory influences, risks and internal opportunities with internal and external
experts
Align
Complete internal audit to ensure consistent positions, strategies, investments
Report
Disclose company’s climate positions, actions and outcomes
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www.cdp.net | @CDP
14. Business as a positive voice on climate policy
Companies can provide proactive, constructive business input in order to
help governments create effective climate policies;
The guide can form the basis for companies to be internally and externally
consistent with their corporate policy positions;
Supportive investors and other stakeholders have expressed the urgent
need for business to be more involved.
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www.cdp.net | @CDP
16. The means through which the Global 500 influence climate legislation
Number of Global 500 companies
350
300
250
200
150
100
50
0
.
Trade associations
Direct enagegement
Funding research
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www.cdp.net | @CDP
Other
No influence
17. How Global 500 companies choose to engage with climate legislation
Number of Global 500 companies
300
250
200
150
100
50
0
Direct enagagment Offical government
with
response
policylegislation
Coalition
enagagment
Contribution to
independent
review
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www.cdp.net | @CDP
Host or sponsor
public advent or
awards
Attendence of
conferences
18. The position of CDP disclosers towards climate legislation
Carbon tax
Climate Finance
Support and, support with minor
exceptions
Adaption Resiliency
Support with major exceptions
Cap and Trade
Mandatory Carbon
Reporting
Oppose
Clean Energy
Generation
Energy Efficency
0
50
100
150
200
Number of companies that disclose to CDP
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250
300
350
400
450
500
19. Number of companies
How the Global 500 influence their trade associations over climate policy
90
80
70
60
50
40
30
20
10
0
Working
Groups
Member of
Active
Technical Promotion of
Directly
board or membership advice or
legislative influencing
chairmanship
submission
agenda
policy
of research
papers
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Supporting Establishing
Funding
all positions or promoting
beyond
an initiative membership
or concept
20. Are trade associations consistent with company’s climate policies?
Inconsistent
Companies
disclosing to
CDP
Unknown
Mixed
Global 500
Consistent
0%
10%
20%
30%
40%
50%
60%
Percentage of responding companies
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www.cdp.net | @CDP
70%
80%
90%
21. Do companies publically disclose a list of all of the
research organisations that they fund?
Percentage of responding companies
e
Corporate funding of public work on climate change
Only a small majority of CDP
60%
disclosers state they publish a
50%
list of all the research they
40%
fund;
Global 500
30%
20%
All CDP
disclosing
companies
10%
Although they accept this
research could be either
directly or indirectly be
influencing climate legislation
0%
Yes
No
.
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www.cdp.net | @CDP
22. Key findings from CDP corporate information request
Companies are reluctant to admit lobbying against effective climate
change policy, or being associated with trade groups that do so;
There are a group of around 20 trade associations corporations identified
as actively working against climate legislation; and
Corporations consider themselves more supportive of climate legislation
then their trade associations;
Although many responses were cautious, CDP’s experience suggests
disclosure rates and performance improves over time.
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www.cdp.net | @CDP
23. Key findings, continued
Disclosure rates were low compared to other questions on corporate
political influence;
Companies are particularly reluctant to disclosure information on the
organisations or research they fund; especially if fund recipients may be
challenging the scientific consensus on climate change; and
Disclosure was informative about good corporate environmental behaviour,
although often lacked substance about potential undue influence.
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www.cdp.net | @CDP
25. What conclusions can CDP draw from this year’s disclosure?
Corporations are starting to accept the need to be transparent over the
influence they can exert over the development of climate policy; and
More pressure from civil society and investors necessary to help drive
greater transparency and behaviour change;
However, right now, we need the progressive voice of business to step up
and pave the way towards a new global deal in time for 2015.
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www.cdp.net | @CDP
26. ‘Guide for responsible engagement in climate policy’, partners:
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www.cdp.net | @CDP
27. For further details,
please contact:
Paul Dickinson
Ben Watson
Executive Chairman
Senior Manager
Paul.dickinson@cdp.net
Government Relations
Ben.watson@cdp.net
www.cdp.net | @CDP
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