ÿþ <html> <head> <title>CDP and SCLC Guidance</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> <style type="text/css"> <!-- .Blueheader { font-family: Arial, Helvetica, sans-serif; font-weight: normal; background-color: #0000FF; color: #FFFFFF; } .HEADING { background-color: #00CCFF; width: 100%; border: none; font-family: Arial, Helvetica, sans-serif; font-size: 24px; font-weight: bold; background-position: center center; } --> </style> <style type="text/css"> <!-- .HEADING2 { background-color: #00CCFF; width: 100%; border: none; font-family: Arial, Helvetica, sans-serif; font-weight: normal; background-position: center center; } .leftedge { border: 1px solid #F5F5F5; } .topedgeblue { border: 1px solid #F5F5F5; background-color: #66FFFF; font-size: 24px; font-weight: bold; } .columnblue { border: 1px solid #F5F5F5; background-color: #66FFFF; font-size: 16px; font-weight: bold; } .columnyellow { border: 1px solid #F5F5F5; background-color: #FFFFCC; font-size: 16px; font-weight: bold; } --> </style> <style type="text/css"> <!-- .romanlist { list-style-type: lower-roman; } .borders { border: thin solid #CCCCCC; background-color: #FFFFFF; margin: 5px; padding: 5px; } body { color: black; } body, td { font-family: Arial, Helvetica, sans-serif; font-size: 12px } a { color: blue; } a:visited { color: maroon; } a:active { color: red; } a:hover { color: purple; background: #AFB; } --> </style> <style type="text/css"> <!-- .underline { text-decoration: underline; } --> </style> </head> <body> <table width="100%" border="0" cellspacing="0" cellpadding="5"> <tr> <td class="HEADING"><div align="center"> <p>&nbsp;</p> <p>SCLC08 Questionnaire Guidance</p> <p>&nbsp;</p> </div></td> </tr> <tr> <td> <p>&nbsp;</p> <p><u>Planning your response</u><br> Your participation in this project is voluntary and we appreciate your involvement.<br> To help you plan your response, we would ask you to make the questions in sections 1 to 4 a priority, although you may get a request from a member customer to answer questions about a particular product (see Supply Chain Questions 7b and 7c). </p> <p>Particularly to help suppliers who are new to reporting on this issue, we have identified questions that are the first steps along the path to understanding the impact of climate change in your business. These are termed &#8220;minimum standard&#8221; questions. They are written in normal type and we hope every supplier will try to answer them. &#8220;Comprehensive answer&#8221; questions, <span class="Blueheader">written like this</span>, will contribute to a more sophisticated response. </p> <p>The first page in the Online Reporting System (ORS) asks for an introduction to your response &#8211; this is entirely voluntary and is a space for you to give some background on your company if you wish. It also asks for &#8216;Company Turnover in US$&#8217; &#8211; this is otherwise known as &#8216;Sales&#8217; or income received or receivable for the accounting period.We hope this guidance will help you to answer these questions. Some of the questions refer to two commonly-accepted greenhouse gas accounting standards and these provide more information: </p> <ul> <li> &#8220;The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)&#8221; developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), which may be found on the GHG Protocol website <a href="www.ghgprotocol.org">www.ghgprotocol.org</a>; and/or</li> <li> The International Standards Organization (ISO) 14064-1 &#8211; &#8220;Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals&#8221; available from <a href="www.iso.org">www.iso.org</a>. </li> </ul> <p>Calculation tools to assist companies in the measurement of GHG emissions from particular activities, such as the combustion of fuels, production processes, etc. can be found at: <a href="http://www.ghgprotocol.org/calculation-tools/all-tools">http://www.ghgprotocol.org/calculation-tools/all-tools</a>.<strong> Companies new to emissions reporting are recommended to use these tools to assist them in their calculations</strong>. If guidance for your specific industry sector is not available on the GHG Protocol website, contact your industry association, which may be able to provide a calculation tool or methodology that you can use.</p> <p>CDP is also pleased to be working in partnership with the Greenhouse Gas Management Institute (GHG MI) to offer a comprehensive training course on how to answer questions 1-4. Further details about the GHG MI and the courses it offers, may be found on CDP&#8217;s website <a href="www.cdproject.net">www.cdproject.net</a>.</p> <p>To view sample answers of how to response to the disclosure request, please <a href="sampleanswers.pdf" target="_blank">download the Sample Answers PDF</a>.</p> <p><br> <U>Reporting Boundaries</U></p> <p>When the questionnaire refers to &#8220;your company&#8221; or &#8220;your business&#8221;, this should be treated as a reference to the group, company, companies and/or businesses within the reporting boundary you identify in answer to question 2(a)(i). The information provided in response to the questionnaire should relate to all of the entities within the reporting boundary identified and the same &#8220;consolidation approach&#8221; should be used for all of your answers.</p> <p>For detailed guidance on determining reporting boundaries, and particularly where joint ventures or complex operational structures are concerned, please refer to Chapter 3 of the GHG Protocol. Generally, reporting boundaries may be drawn on the basis of financial or operational control, or equity share.</p> <p>In brief, under the <U>control approach</U>, a company measures the GHG emissions from operations over which it has financial and/or operational control. Generally a company has <U>financial control</U> over an operation for GHG accounting purposes if the operation is treated as a group company or subsidiary for the purposes of financial consolidation. </p> <p>Under the <U>operational control</U> approach, the organization or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation. </p> <p>Under the <U>equity share</U> approach, a company accounts for the GHG emissions according to its share in the operation, reflecting the company&#8217;s share of economic risks and rewards in those operations. </p> <p>When determining reporting boundaries, we recommend that the company consults its legal or accounting advisors. <br> </p></td> </tr> <tr> <td><table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td>&nbsp;</td> <td><p>&nbsp; </p></td> </tr> </table></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td class="HEADING"><p>&nbsp;</p> <p>QUESTION 1 &#8211; RISKS AND OPPORTUNITIES</p></td> </tr> <tr> <td class="HEADING2"><p><strong>Objectives</strong>: To identify strategic risks and opportunities and their implications.</p> <p>&nbsp;</p></td> </tr> <tr> <td><p><a name="61"></a></p> <p><strong>a Risks:</strong> (CDP5 Question 1a)</p></td> </tr> <tr> <td class="borders"><strong>General Guidance on Question 1(a):<br> The following guidance applies to all questions 1(a)(i) &#8211; 1(a)(v)</strong><br> 1. <u>Provide an explanation for &#8220;Yes&#8221; and &#8220;No&#8221; answers</u>: Where you answer &#8220;Yes&#8221; to any of the questions in 1(a), please provide further explanation and details. An explanation should also be provided where you answer &#8220;No&#8221; to any of the questions in 1(a). <br> 2. <u>Comment on whether your views have changed</u>: Please comment on whether your views on the significance of regulatory, physical and general risks arising from climate change have changed over the last 12 months.<br> 3. <u>State how risks are assessed:</u> In all cases, please explain the process you use for assessing risks including the criteria you use to determine the materiality of risks.<br> 4. <u>Include consideration of risks in the whole value chain:</u> Please state whether your assessment of risks extends to impacts on your business partners, clients, suppliers and customers.<br> 5.<u> Identify where risks are expected to arise</u>: Wherever possible, please identify the countries or regions in which your business is likely to be affected by regulatory, physical and general risks arising from climate change.<br> 6. <u>Timescales:</u> Please state the timescales over which risks are expected to materialize.<br></td> </tr> <tr> <td></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td>i <strong>Regulatory Risks: </strong>How is your company exposed to regulatory risks related to climate change? </td> </tr> <tr> <td class="borders"><strong>Guidance: </strong><br> Regulatory risks generally arise from current and/or expected national and/or global government policy on climate change including, but not limited to, the imposition of emissions limits, energy efficiency standards, and so on. Therefore, to the extent that it is likely to affect your business, please comment on the effect of known or expected: <p>&#8226; International, national, regional or state regulation of emissions<br> &#8226; Carbon taxation<br> &#8226; Statutory emissions limits<br> &#8226; Mandatory trading programmes <br> &#8226; Process or product standards<br> &#8226; Mandatory energy efficiency standards</p> <p>Alternatively, if you do not consider your company to be exposed to regulatory risks related to climate change, please explain why.</p> <p>Given that governments around the world are implementing policies on climate change, we would be interested to hear your views on the need for more ambitious and/or consistent government action. <br> </p></td> </tr> <tr> <td height="21">&nbsp;</td> </tr> <tr> <td class="borders"><strong>Additional Guidance for Electric Utility Companies:</strong><br> Please comment specifically on how national and international targets on demand management and goals to promote particular methods of generation might affect growth in demand for electricity and GHG emissions. <br></td> </tr> <tr> <td><a name="62"></a></td> </tr> <tr> <td><BR> 1(a)(ii)<strong> Physical Risks:</strong> How is your company exposed to physical risks from climate change? </td> </tr> <tr> <td class="borders"><strong>Guidance: </strong><br> Physical risks from climate change can arise from, for example: <p>&#8226; Small changes in temperature and precipitation<br> &#8226; Shifts in species distribution<br> &#8226; Drought<br> &#8226; Floods<br> &#8226; Increased storm and hurricane activity<br> &#8226; Rising sea levels<br> &#8226; Higher incidence of disease</p> <p>More information about physical risks associated with climate change can be found on the website of the Intergovernmental Panel on Climate Change (<a href="http://www.ipcc.ch">http://www.ipcc.ch</a>). See the synthesis document of the Fourth Assessment Report (AR4) and, for more detail, follow the link from the homepage to Working Group II&#8217;s report &#8220;Impacts, Adaptation and Vulnerability&#8221;. <a href="http://www.ipcc.ch/ipccreports/ar4-wg2.htm">http://www.ipcc.ch/ipccreports/ar4-wg2.htm</a>.<br> <br> Please describe:</p> <p>&#8226; The physical risks climate change presents to your company<br> &#8226; The way in which you assess those risks<br> &#8226; The geographic locations of significant business operations that are vulnerable to physical risks. </p> <p>Alternatively, if you do not consider your company to be exposed to physical risks from climate change, please explain why.</p> <p><strong>Additional Guidance for Electric Utility Companies:</strong><br> Please describe how extreme weather events have affected, or in the future may affect generating capacity, production, transmission, distribution or all of the above. You may wish to comment on the impact of flooding, drought, heat waves or storms on, for example, hydroelectric plants, water-cooling systems, and wind farms. Please consider how long-term changes in temperature have affected or may affect peak load, seasonal fluctuations in demand, or impact network carrying capacity.</p> <p>Please describe what measures are in place for dealing with changes in weather conditions, for example insurance, hedging, investment in new technologies.<br> </p> <p><br> </p></td> </tr> <tr> <td><p><a name="63"></a></p> <p><BR> iii <strong>General Risks:</strong> How is your company exposed to general risks as a result of climate change?</p></td> </tr> <tr> <td class="borders"><strong>Guidance: </strong><br> General risks associated with climate change could arise from energy and/or resource scarcity caused by a variety of scenarios. Price changes prompted by scarcity, changes in consumer attitude and demand, production and supply chain or supply process* disruption are all feasible risks. As these risks vary depending on the business concerned, please provide information about your particular business activities together with details of the types of commercial risks your company faces from climate change. <p>Alternatively, please explain why you do not consider your company to be exposed to general risks as a result of climate change. </p> <p>*We define supply chain as the extraction, production and transportation of purchased materials and goods to your organization. The provision of services to your organization would be included within your supply chain. In terms of GHG emissions accounting, supply chain emissions would cover emissions that took place before the material, goods or services were supplied to your organization. <br> </p></td> </tr> <tr> <td><p><a name="64"></a></p> <BR> <p>iv <strong>Risk Management: </strong>Has your company taken or planned action to manage the general and regulatory risks and/or adapt to the physical risks you have identified? </p></td> </tr> <tr> <td class="borders"><strong>Guidance:</strong> <br> As far as possible, please provide details of the way in which risks are managed, actions your company has taken or will take in the future to manage or adapt to those risks, the timescales involved, and the costs of managing or adapting to risks.<br> Alternatively, please explain why your company has not taken or planned action.<br></td> </tr> <tr> <td><p><a name="65"></a></p> <BR> <p>v <strong>Financial and Business Implications</strong>: How do you assess the current and/or future financial effects of the risks you have identified and how those risks might affect your business?</p></td> </tr> <tr> <td class="borders"><p><strong>Guidance: </strong><br> If your company assesses those risks, please explain the assessment process. Please provide details of the financial effects of the risks (expressed in US$) to your company, whether formally assessed or estimated. Please also disclose information about the means and extent to which any costs associated with those risks may be passed into the markets in which you operate. If you assess the effect of risks on the business, please explain the implications for your business model and strategy, changes to the supply base, the scope for absorbing costs, the implications for competitors, and so on.<br> Alternatively, please explain why your company does not assess the financial effects and business implications of risks related to climate change.</p> <p><strong>Additional Guidance for Electric Utility Companies: </strong><br> Companies should give their views on how the wholesale and retail power prices are affected by carbon prices in the different markets in which they operate.</p> <p>Please also give your company&#8217;s views on the extent to which carbon prices are passed through, or may in future be passed through, into electricity prices in the markets. If possible, base this on current and planned regulatory requirements and try to incorporate the financial implications.</p></td> </tr> <tr> <td><p><a name="66"></a></p> <BR> <p><strong>b Opportunities</strong> (CDP5 Question 1b) </p></td> </tr> <tr> <td class="borders"><strong>General Guidance on Question 1(b):</strong><br> The following guidance applies to all questions 1(b)(i) &#8211; 1(b)(iv)<br> 1. Provide explanation for &#8220;Yes&#8221; and &#8220;No&#8221; answers: Where you answer &#8220;Yes&#8221; to any of the questions in Section 1b, please provide further details. An explanation should also be provided where you answer &#8220;No&#8221; to any of the questions in Section 1(b).<br> 2. Comment on whether your views have changed:Please comment on whether your views on the significance of regulatory, physical and general opportunities arising from climate change have changed over the last 12 months.<br> 3. State how opportunities are assessed: In all cases, please explain the process you use for assessing opportunities.<br> 4. Consider opportunities in the whole value chain: Please state whether your assessment extends to the implications of opportunities that may be enjoyed by your business partners, clients, suppliers and customers.<br> 5. Identify where opportunities are expected to arise: Wherever possible, please identify the countries or regions in which your business is likely to benefit from regulatory, physical and general opportunities arising from climate change.<br> 6. Timescales: Please state the timescales over which opportunities are expected to materialize.<br></td> </tr> <tr> <td><p>&nbsp;</p> <p>i <strong>Regulatory Opportunities:</strong> How do current or anticipated regulatory requirements on climate change offer opportunities for your company?</p></td> </tr> <tr> <td class="borders"><strong>Guidance: </strong><br> Regulatory opportunities generally arise from current and expected national or international governmental policy on climate change. For example, the introduction of emissions trading programmes, technology incentives, and imposition of process or product standards can provide opportunities. Please disclose information about any opportunities that may be enjoyed by the company as a result of regulatory change and indicate the regions or countries in which you operate that might be affected. <p>Alternatively please explain why you do not consider that opportunities from regulatory changes might affect your company.</p> <p><br> <strong>Additional Guidance for Electric Utility Companies: </strong><br> Please identify the opportunities that national or international targets on energy efficiency and demand management might present for the company (e.g. revenue implications from energy services business units).</p> <p>Companies should disclose their views on any opportunities that may result from policies on renewable energy or low-emissions technologies (e.g. current or planned investments in these areas).</p> <p></p></td> </tr> <tr> <td><p><a name="67"></a></p> <BR> <p>ii <strong>Physical Opportunities:</strong> How do current or anticipated physical changes resulting from climate change present opportunities for your company?</p></td> </tr> <tr> <td class="borders"><strong>Guidance: </strong><br> Physical opportunities may arise from subtle changes, such as a longer growing season, or from larger, sudden events. <p>Information about physical opportunities associated with climate change can be found on the website of the Intergovernmental Panel on Climate Change (<a href="http://www.ipcc.ch">http://www.ipcc.ch</a>). See the synthesis document of the Fourth Assessment Report (AR4) and, for more detail, follow the link from the homepage to Working Group II&#8217;s report &#8220;Impacts, Adaptation and Vulnerability&#8221;. <a href="http://www.ipcc.ch/ipccreports/ar4-wg2.htm">http://www.ipcc.ch/ipccreports/ar4-wg2.htm</a>.</p> <p>Please describe the actual or potential opportunities that your company may realize through changing weather patterns and situations, such as increased sales of particular products and services, or opportunities arising from measures to adapt to the physical consequences of climate change.</p> <p>Alternatively please explain why you do not consider that opportunities from physical changes might affect your company.<br> </p></td> </tr> <tr> <td><p><a name="68"></a></p> <BR> <p>iii <strong>General Opportunities:</strong> How does climate change present general opportunities for your company?</p></td> </tr> <tr> <td class="borders"><strong>Guidance: </strong><br> Opportunities associated with climate change generally arise from actual or potential demand for new or modified products and services. Therefore, in responding to this question, please provide information about your particular business activities, together with details of the types of opportunities climate change may create for your company. <p>Alternatively, please explain why you do not consider that climate change will create opportunities for your company.<br> </p></td> </tr> <tr> <td><p><a name="69"></a></p> <BR> <p>iv <strong>Maximizing Opportunities:</strong> Do you invest in, or have plans to invest in products and services that are designed to minimize or adapt to the effects of climate change? </p></td> </tr> <tr> <td class="borders"><strong>Guidance:</strong> <br> If so, please provide details of any investments, current or planned, in opportunities offered by climate change. Such investments can include, but are not limited to, research and development funding (in which case, please state what percentage of your turnover you invest in research and development to maximize said opportunities). <p>Please also provide details of patents or other intellectual property rights you have or plan to apply for. </p> <p>If you have identified opportunities from climate change, but have no plans to invest in these opportunities, please explain why.</p> <p><br> <strong>Additional Guidance for Electric Utility Companies: </strong><br> Companies should discuss whether they are investing in research and development that may result in GHG emission reductions e.g. CO2 capture and storage, clean coal technologies and energy storage.</p> <p></p></td> </tr> <tr> <td><p><a name="70"></a></p> <BR> <p>v <strong>Financial and Business Implications:</strong> How do you assess the current and/or future financial effects of the opportunities you have identified and how those opportunities might affect your business?</p></td> </tr> <tr> <td class="borders"><p><strong>Guidance: </strong><br> Please explain your assessment process. Please explain the implications for your business model, changes to the supply base, implications for competitors, and so on, of the opportunities you have identified. Please estimate the material financial effects (expressed in US$), together with your projections for future periods. Alternatively, please explain why your company does not assess the financial effects and business implications of opportunities related to climate change.</p> <p><strong><br> Additional Guidance for Electric Utility Companies:</strong><br> Please disclose the extent to which you receive any financial incentives to reduce the electricity use of your customers.</p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <P><BR> <BR> <td class="HEADING"><p>&nbsp;</p> <p>QUESTION 2 &#8211; GHG EMISSIONS ACCOUNTING</p></td> </tr> <tr> <td class="HEADING2"><p><strong>Objective</strong>: To determine actual absolute GHG emissions.</p> <p>&nbsp;</p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td class="borders"> <p><a name="71"></a><strong>General Guidance and Principles for GHG Emissions Reporting:</strong><br> CDP encourages companies to prepare their responses in accordance with the guiding principles established by &#8220;The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)&#8221; developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). The principles are:</p> <p><strong>Relevance: </strong>Ensure that the GHG inventory appropriately reflects the GHG emissions of your company and serves the decision-making needs of users &#8211; both internal and external to the company.<br> <strong>Completeness:</strong> Account for and report all GHG emission sources and activities within your chosen boundaries. Disclose and justify specific exclusions.<br> <strong>Consistency:</strong> Use consistent methodologies to aid accurate comparisons of emissions over time. Transparently document any changes to the data, boundary, methods or other relevant factors in the same time series.<br> <strong>Transparency: </strong>Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any important assumptions, and cite the accounting and calculation methodologies used.<br> <strong>Accuracy:</strong> Ensure that your GHG calculations are accurate, and provide reasonable assurance of the GHG information&#8217;s integrity.</p> <p>(See GHG Protocol Chapter 1)</p> <p>Methodology for Identifying and Calculating GHG Emissions:<br> See Appendix D of the GHG Protocol for an overview of sources of GHG emissions by industry sector.</p></td> </tr> <tr> <td><p>&nbsp;</p> <p><strong>(a) Accounting Parameters </strong>(CDP5 Question 2a)</p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td>i <strong>Reporting Boundary:</strong> Please indicate the category that best describes the company, entities or group for which your response is prepared:</td> </tr> <tr> <td><ol> <li type="a">Companies over which financial control is exercised - per consolidated audited Financial Statements.</li> <li type="a">Companies over which operational control is exercised.</li> <li type="a">Companies in which an equity share is held.</li> <li type="a">Other (please provide details).</li> </ol></td> </tr> <tr> <td> <p>Please use the same approach for all answers.</p> <tr> <td></td> <tr> <td></tr> <tr> <td class="borders"> <p><strong>Guidance: </strong><br> For detailed guidance on determining reporting boundaries and particularly where joint ventures or complex operational structures are concerned, please see the introduction to this guidance or refer to Chapter 3 of the GHG Protocol. <br> </p></td> </tr> <tr> <td> <p>&nbsp;</p> <p><a name="72"></a>ii <strong>Reporting Year</strong>: Please explicitly state the dates of the accounting year or period for which GHG emissions are reported.</p></td> </tr> <tr> <td class="borders"><strong>Guidance: </strong><br> Please give the start and end dates of the period for which you are reporting emissions in Question 2. Please note that if you are responding for the first time, details should be provided (where available) of emissions for previous accounting periods going back to the period ending in 2004, in accordance with the description and units specified in question 2(b) below.<br> Please say if your chosen reporting period conforms to your financial reporting year.<br></td> </tr> <tr> <td><p>&nbsp;</p> <p><a name="73"></a>iii <strong>Methodology:</strong> Please specify the methodology used by your company to calculate GHG emissions</p></td> </tr> <tr> <td class="borders"><p><strong>Guidance: </strong><br> Please state if you have used the GHG Protocol or ISO 14064-1. Please also give references for any calculation tools that you have used or an explanation of any calculation methods that you have devised yourself and the data sources of the Global Warming Potentials and emission factors used in your calculations. If you cannot find a reference for them within a supplied calculation tool, please contact the provider of the calculation tool for the information.</p> <p><br> If you have used any other methodology, including one that you have devised yourself, please explain your methodology, including methods of calculation, and the data sources of the Global Warming Potentials and emission factors. Please also state how long your company has used the methodology concerned.<br> </p> </td> </tr> <tr> <td><p>&nbsp;</p> <p><a name="74"></a>b <strong>Direct and Indirect Emissions - Scope 1 and 2 of the GHG Protocol </strong>(CDP5 Question 2b) </p></td> </tr> <tr> <td><a name="98"></a>i Are you able to provide a breakdown of your direct and indirect emissions under Scopes 1 and 2 of the GHG Protocol and to analyse your electricity consumption? If so, please provide the following information together with a breakdown of the emissions reported under each category by country where possible. If not, please proceed to question 2b ii.</td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td><strong>Scope 1 Direct GHG emissions</strong><br> a. Total global Scope 1 activity in metric tonnes CO2-e emitted. <br> b. Total Scope 1 activity in metric tonnes CO2-e emitted for Annex B countries.</td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td> <strong>Scope 2 Indirect GHG emissions </strong><br> c. Total global Scope 2 activity in metric tonnes CO2-e emitted.<br> d. Total Scope 2 activity in metric tonnes CO2-e emitted for Annex B countries.</td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td><strong>Electricity consumption</strong><br> e. Total global MWh of purchased electricity. <br> f. Total MWh of purchased electricity for Annex B countries. <br> g. Total global MWh of purchased electricity from renewable sources. <br> h. Total MWh of purchased electricity from renewable sources for Annex B countries. <br> <BR> <BR></td> </tr> <tr> <BR> <BR> <td class="borders"><strong>Guidance:</strong><br> The GHG Protocol defines three &#8220;scopes&#8221; for GHG accounting. <p><strong>Scope 1:</strong> &#8220;Direct&#8221; emissions from GHG sources owned or controlled by the company, such as combustion facilities (e.g. boilers, furnaces, turbines, heaters, incinerators, engines, flares, etc.), combustion of fuels in company-owned or company-controlled transportation (e.g. cars, buses, planes, ships, barges, trains, etc.), and physical or chemical processes (e.g. in cement manufacturing, catalytic cracking in petrochemical processing, aluminium smelting, etc.). </p> <p><strong>Scope 2:</strong> GHG emissions that the company has indirectly caused through its consumption of imported electricity, heat, cooling or steam. This category is often called &#8220;purchased electricity&#8221; because this represents the most common source of Scope 2 emissions. </p> <p>CDP has sought advice from the GHG Protocol team on the issue of accounting for emissions from electricity sourced from the grid and purchased via a tariff or other financial arrangements with the aim of supporting renewable generation. The protocol team has given this interim advice pending a wider examination of the issues in this area:</p> <p>The emissions associated with ALL electricity sourced from the grid should be calculated using the grid average emission factor and should be reported under Scope 2. If companies wish, they may list the types of electrical generation that feed into the grid and give the relative contributions that these types make to the electricity on the grid.</p> <p>However, contractual arrangements aimed at supporting particular types of electrical generation, such as a renewable electricity supply tariff, should be reported separately. Companies are welcome to give as much detail as they can about the contractual arrangement, for example the number of KWh covered by the arrangement, the generation mix supported by the arrangement, and the certification associated with the scheme. Companies may also compute an alternative, additional emissions total, taking into account the contractual arrangement, e.g. &quot;green tariff&quot;, based on the number of kWh purchased and the average emission factor of the electricity purchased through this arrangement, rather than the grid average emission factor. This additional figure must be labelled &#8220;Contractual Scope 2&quot; and reported separately from the emissions total based on the average emission factor of the electricity consumed from the grid, which should be reported under Scope 2. CDP's online reporting system allows for additional information to be presented in response to all questions.</p> <p>The definition of renewable energy in the GHG Protocol is: &#8220;Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy, and biofuels.&#8221;</p> <p>A distinction should be drawn between:</p> <p>&#8226; Electricity sourced from the grid and purchased under a tariff designed to support a particular type of generation, e.g. renewable electricity which is described here as &#8220;contractual renewable electricity&#8221;, and </p> <p>&#8226; &#8220;Purchased electricity from renewable sources&#8221; and &#8220;MWh from renewable sources&#8221; which is defined here as purchased electricity supplied directly by a renewable electricity generation facility. </p> <p><strong>Scope 3: </strong>: Other indirect emissions that are a consequence of a company&#8217;s activities, but which arise from GHG sources that are owned or controlled by others. Scope 3 GHG emissions are explained in the guidance to question 2(c).</p> <p>The aim of these scopes is to promote transparency and consistency and to ensure, as far as possible, that double counting by companies is minimized or, where it cannot be avoided, it is identifiable. Please refer to the GHG Protocol for comprehensive advice on what is included in each &#8220;scope&#8221;.<br> The figure given for GHG emissions for each scope should be gross of any estimated GHG savings due to the export of renewable energy to organizations outside your chosen organizational boundary or due to the purchase of offset credits or Renewable Energy Certificates.<br> Information on those activities can be provided using our &#8220;Additional Information&#8221; box. In addition, question 2(g)(ii) requests information on the use of offset credits. <br> If you do estimate GHG reductions due to the export of renewable energy, please state in the &#8220;Additional Information&#8221; box the method or standard you have used in this estimation.<br> </p> <p><strong>Leased Facilities </strong><br> Emissions resulting from activities linked to leased facilities e.g. buildings or vehicle fleets could be categorized as Scope 1, 2 or 3 depending on which reporting boundary has been selected in question 2(a)(i) and the nature of the lease.</p> <p>For information on how reporting boundary can affect the reporting of emissions linked to leased facilities, please read chapter 4 of the GHG Protocol, particularly pages 29-33..<br> More information on leased facilities is also available from &#8220;Hot Climate, Cool Commerce: A Service Sector Guide to Greenhouse Gas Management&#8221; &#8211; particularly pages 21 and 26-30. This document is available at: <br> <a href="http://www.ghgprotocol.org/standards/publications">http://www.ghgprotocol.org/standards/publications</a>.</p> <p>The GHG Protocol only requires that these gases covered by the Kyoto Protocol are reported:</p> <p>&#8226; Carbon dioxide (CO2)<br> &#8226; Methane (CH4)<br> &#8226; Nitrous oxide (N20)<br> &#8226; Hydrofluorocarbons (HFCs)<br> &#8226; Perfluorocarbons (PFCs)<br> &#8226; Sulphur hexafluoride (SF6)</p> <p>Other GHGs may be reported, but these should be disclosed separately from the three scopes listed. </p> <p>Emissions from biofuels and biomass should be reported separately from the three scopes (see chapter 9 of GHG Protocol, pages 25 and 65). <br> <br> For the purposes of answering this question, please ensure as far as possible that:</p> <p>1. Emissions are Reported in Metric Tonnes of CO2-e: CO2-e stands for carbon dioxide equivalent. This is the universal unit of measurement used to indicate the Global Warming Potential (GWP) of a GHG, expressed in terms of the global warming potential of one unit of carbon dioxide. A Metric Tonne of CO2-e means one Metric Tonne of carbon dioxide or an amount of any of the other GHGs with an equivalent global warming potential.<br> A Metric Tonne (or Metric Ton) is sometimes referred to as a &#8220;long ton&#8221;. It is equivalent to 2,205 pounds (lb). A &#8220;short ton&#8221; is equivalent to 2,000 lb.</p> <p><strong>Global Warming Potential (GWP)</strong><br> The definition of GWP given in the GHG Protocol is &#8220;A factor describing the radiative forcing impact (degree of harm to the atmosphere) of one unit of a given GHG relative to one unit of CO2.&#8221; </p> <p>Estimates of GWPs have changed over time as scientific understanding has increased. However, for the sake of consistency, the parties to the United Nations Framework Convention on Climate Change are continuing to use the GWPs in the Second Assessment Report from the Intergovernmental Panel on Climate Change. For those gases not assigned a GWP in the Second Assessment Report, please use the latest GWPs given in the Fourth Assessment Report. Please explain the source of the GWPs you are using.</p> <p>The Fourth Assessment Report (AR4) gives the latest GWP values as well as GWPs from the Second Assessment Report (SAR). Go to table 2.14, page 212, in chapter 2 of Working Group 1&#8217;s report, available from the IPCC website. <br> <a href="http://www.ipcc.ch/pdf/assessment-report/ar4/wg1/ar4-wg1-chapter2.pdf">http://www.ipcc.ch/pdf/assessment-report/ar4/wg1/ar4-wg1-chapter2.pdf</a></p> <p>GWPs are expressed over a number of different time frames. Please use the factors that give the GWP over a 100-year time span. So, for example, according to SAR, the GWP of one unit of methane over a 100-year time span is 21 times that of one unit of CO2. Hence, methane&#8217;s SAR GWP over a 100-year period is 21. For gases without a value in the SAR column, please use the 100-year value in the seventh column of table 2.14.</p> <p><font color="#006600"> <font color="#000000">Estimates of GWPs have changed over time as scientific understanding has increased. However, for the sake of consistency, the parties to the United Nations Framework Convention on Climate Change are continuing to use the GWPs in the Second Assessment Report from the Intergovernmental Panel on Climate Change. For those gases not assigned a GWP in the Second Assessment Report, please use the latest GWPs given in the Fourth Assessment Report. Please explain the source of the GWPs you are using.</font></font></p> <p><font color="#000000">The Fourth Assessment Report (AR4) gives the latest GWP values as well as GWPs from the Second Assessment Report (SAR). Go to table 2.14, page 212, in chapter 2 of Working Group 1&#8217;s report, available from the IPCC website. <br> http://www.ipcc.ch/pdf/assessment-report/ar4/wg1/ar4-wg1-chapter2.pdf</font></p> <p><font color="#000000">GWPs are expressed over a number of different time frames. Please use the factors that give the GWP over a 100-year time span. So, for example, according to SAR, the GWP of one unit of methane over a 100-year time span is 21 times that of one unit of CO2. Hence, methane&#8217;s SAR GWP over a 100-year period is 21. For gases without a value in the SAR column, please use the 100-year value in the seventh column of table 2.14.</font></p> <p>2. <strong>Country/Region Specific Information is Provided</strong>: Where possible, please provide a breakdown of the total emissions you disclose in response to question 2(b) for each country, region, or each of the main territories in which you operate. </p> <p>3. <strong>Provide Historical Information</strong>: Wherever possible, please provide the information requested in question 2(b) for previous accounting periods, going back to the period ending in 2004. You do not have to enter historical data if you have already reported this information in response to previous CDP questionnaires. </p> <p>Tables 1.1, 1.2, and 1.3 at the end of this document for encapsulate the information requested by the Online Reporting System for question 2(b)(i).</p> <p>Definitions:<br> Annex B is a reference to the Kyoto Protocol and includes: <br> &#8226; EU Member Countries (Including New Members)<br> &#8226; Liechtenstein<br> &#8226; Monaco<br> &#8226; Russian Federation<br> &#8226; Switzerland<br> &#8226; USA<br> &#8226; Canada<br> &#8226; Japan<br> &#8226; Croatia <br> &#8226; New Zealand <br> &#8226; Ukraine <br> &#8226; Norway<br> &#8226; Australia<br> &#8226; Iceland <br> See www.unfccc.int. </p> <p>MWh means megawatt hours.</p> <p><font color="#000000">&#8220;Purchased electricity from renewable sources&#8221; and &#8220;MWh from renewable sources&#8221; is defined as purchased electricity supplied directly by a renewable electricity generation facility.</font></p> <p><font color="#000000"> Electricity purchased under a tariff designed to support the generation of renewable electricity, but sourced from a grid should be reported separately as &#8220;contractual renewable electricity&#8221;. </font></p> <p><font color="#000000"> The definition of renewable energy in the GHG Protocol is: &#8220;Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy, and biofuels.&#8221;<br> Any renewable electricity supplied to the grid would already be reflected in the grid average emission factor and therefore does not need to be reported under questions 2(b)(i)(g) and (h), which are designed to ask a company about any special arrangements it has in place to use or support renewable energy.</font><font color="#FF0000"><br> <br> </font> </p> <p><strong>Additional Guidance for Electric Utility Companies:</strong><br> Companies with business activities additional to the production/transmission/distribution of electricity can report their full corporate footprint in answer to the questions in section 2(b)(i)(y) of the online reporting system. This would include emissions from their other activities AND their electricity-related activities. <br> Webpages that specify &#8220;electric utilities&#8221; only require answers to be given for the electricity-related division, activity or assets of their business. The exception to this would be CHP where heat is co-generated with electricity. In this case, GHG emissions should be given for both heat and electricity together.</p> <p><U>Emissions Inventories:</U><br> Companies should publish their emissions by fuel type, ideally going back to the reporting period ending in 2000. Please provide the data in metric tonnes of CO2-e. Data should be provided by country (where companies have substantial operations i.e. that account for more than 5% of their total emissions). Table 2.3 at the end of this document encapsulates the information requested by the Online Reporting System for this question. <P> The CCGT and CHP row should be used for emissions from all fuels combusted using these technologies. For example, if an electrical generation company combusts distillate fuel oil in a CCGT plant, these figures should be logged under CCGT, rather than fuel oil. Emissions from fuel oil that is not combusted in a CCGT or CHP plant should be logged under fuel oil. <P> If your company combusts a fuel that is not listed in the table, please provide the information for that fuel using our  Additional Information box. </p> <p><U>Capacity and Production Data:</U><br> Electric utility companies are also asked to provide details of their total installed capacity and production by energy source, again ideally going back to the reporting period ending in 2000. Tables 2.1 and 2.2 at the end of this document encapsulate the information requested by the Online Reporting System.<br> For each country where there are substantial operations (i.e. operations that lead to more than 5% of total company emissions), companies should disclose installed capacity in megawatts (MW) and production output in gigawatt hours (GWh). Different units are used to make the numbers expressing production output more manageable.</p> </td> </tr> <tr> <td> <tr> <td>&nbsp;</td> </tr> <tr> <td><p><a name="75"></a>ii If you are unable to detail your Scope 1 and Scope 2 GHG emissions and/or electricity consumption, please report the GHG emissions you are able to identify together with a description of those emissions.</p></td> </tr> <tr> <td></td> <tr> <td></tr> <tr> <td><p class="borders"><strong>Guidance: </strong><br> Please state the GHGs you know your company emits and the origins of those emissions, for example, space heating for office network or a manufacturing process.<br> </p> <p><a name="76"></a></p></td> </tr> <tr> <td class="Blueheader"><strong>2c Other Emissions - Scope 3 of the GHG Protocol (CDP5 Question 2c) </strong><br> How do you identify and/or measure sources of Scope 3 emissions? Please provide where possible:<br> <ol type="a"><li>Details of the most significant Scope 3 sources for your company. </li> <li> Details in metric tonnes CO2-e of GHG emissions in the following categories.</li> <ol type="i"> <li>Employee business travel.</li> <li>External distribution logistics.</li> <li>Use/disposal of company&#8217;s products and services.</li> <li>Company supply chain.</li></ol> <li>Details of the methodology you use to quantify or estimate Scope 3 emissions.</li></ol> </td> </tr> <P> <tr> <td>&nbsp;</td> </tr> <tr> <td class="borders"> <p><strong>Guidance:</strong><br> Scope 3, like Scope 2, is a category of indirect emissions. However, Scope 2 covers emissions that a company indirectly causes to be emitted through its importation &#8211; and usually purchase &#8211; of electricity, heat, cooling and steam. By contrast, Scope 3 covers all other indirect emissions from sources that are not owned or controlled by a company, but which occur as a result of its activities. Examples include emissions as a result of the extraction, manufacture and production of materials it has purchased, the transportation of purchased fuels or goods, the use of products and services it has sold, and business travel and employee commuting in vehicles not owned or controlled by the company. </p> <p>Scope 3 GHG emissions cover a very wide range of activities. It is not necessary for companies to report details of all such activities. When determining what to report, please consider:</p> <p><span class="underline">Scale:</span> Which are the largest Scope 3 emission-causing activities with which your business is connected?</p> <p> <span class="underline">Importance to your business</span>: Are there sources of GHG emissions that are particularly important to your business, perhaps because of regulatory requirements (e.g. electricity consumption in the case of energy-using products or emissions from vehicle use for auto manufacturers)?</p> <p> <span class="underline">Stakeholders:</span> Which emission-causing activities do your customers, suppliers, investors, etc. expect to be reported? </p> <p>Ideally, companies should report Scope 3 emissions in metric tonnes CO2-e. However, where it is not possible to provide this information, please provide any other measure that reflects the quantity of emissions, such as the number of business miles/km travelled by your employees, etc. Alternatively, if no accounting mechanisms exist, please provide qualitative data regarding your Scope 3 emissions. </p> <p>In sectors where product-related Scope 3 GHG emissions are particularly significant, companies should provide average product carbon intensity data. For example, automobile companies might provide average vehicle gCO2e/km overall and also for each of their vehicle categories.</p> <p class="underline"><font color="#000000"> Before deciding on how you will account for GHG emissions under Scope 3, please consider if GHG emissions are as a result of a contractual arrangement such as leasing, outsourcing or franchising. Where this is the case, please see the guidance for question 2(b) to determine whether the emissions should be accounted for under Scope 3 or under a different scope. </font></p> <p><font color="#000000">Definitions<br> <strong>Employee business travel </strong>&#8211; This refers to business travel in vehicles not owned or controlled by your organization. It excludes travel by employees commuting to work.<br> <strong>External distribution logistics </strong>&#8211; This refers to distribution of your organization&#8217;s goods or services using vehicles and facilities, e.g. warehouses, that are not owned and controlled by your organization. <br> <strong>Use and disposal of company&#8217;s products and service</strong>s &#8211; This refers to emissions from the use and disposal of the goods and services you supply. <br> <strong>Company supply chain</strong> &#8211; This refers to the extraction, production and transportation of purchased materials and goods to your organization. The provision of services to your organization would be included within your supply chain. <br> In terms of GHG emissions accounting, supply chain emissions would cover emissions that took place before the material, goods or services were supplied to your organization.</font></p></td> </tr> <tr> <td> <tr> <td>&nbsp;</td> </tr> <p><a name="77"></a> <tr> <td><strong>External Verification </strong>(CDP5 Question 2a iii) </p> <p>i Has the information reported in response to Questions 2(b)&#8211;(c) been externally verified or audited or do you plan to have the information verified or audited? If so:</p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td class="Blueheader"><span class="Blueheader">ii <strong> Please provide a copy of the audit or verification statement or state your plans for verification. </strong><BR></B> iii <strong>Please specify the standard or protocol against which the information has been audited or verified.</strong></span><strong></p></strong></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td class="Blueheader"><a name="78"></a>e <strong>Data Accuracy</strong> (New to CDP6)<br> Does your company have a system in place to assess the accuracy of GHG emissions inventory calculation methods, data processes and other systems relating to GHG measurement? If so, please provide details. If not, please explain how data accuracy is managed.</td> </tr> <tr> <td><p>&nbsp;</p> <p class="borders"><strong>Guidance: </strong><br> Chapter 7 of the GHG Protocol provides detailed guidance concerning the approaches companies may take to manage their GHG inventory quality. When responding to this question, please provide details of how your company undertakes this task, whether ISO procedures or standards are used to ensure accuracy and, if possible, what methods are used to estimate or measure emissions. Finally, please state how accurate the company considers the results to be. <p class="borders"><strong>Additional Guidance for Electric Utility Companies:</strong><br> If you are reporting according to the EC Monitoring and Reporting Guidelines, please state whether your accuracy level is categorized as tier 1, 2, or 3 according to the guidelines. Alternatively, please give a margin of error expressed as a percentage of the reported emissions and a breakdown by installation type where this percentage differs between installations.</span> </span> </td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td><strong><a name="79"></a>f Emissions History</strong> (CDP5 Question 2a iv) <br> Do the emissions reported for your last accounting year vary significantly compared to previous years? If so, please explain reasons for the variations.</td> </tr> <tr> <td> <tr> <td></td> <tr> <td class="borders"><strong>Guidance:</strong><br> Examples of reasons might be organic growth, divestments and acquisitions, major energy or process efficiency improvements. <p> <strong>Additional Guidance for Electric Utility Companies</strong>:<br> Other examples of reasons may be changes in capacity, plant outages, and extreme weather events.<br> </p></td> </tr> <tr> <td><p>&nbsp;</p> <p><strong><a name="80"></a>g Emissions Trading</strong> (CDP5 Question 4b)<br> </p></td> </tr> <tr> <td><ol type="i"><LI>Does your company have facilities covered by the EU Emissions Trading Scheme? If so:</LI></p> <ol type="a"><LI>Please provide details of the annual allowances awarded to your company in Phase I for each of the years from 1 January 2005 to 31 December 2007 and details of allowances allocated for Phase II commencing on 1 January 2008.</ul> <LI>Please provide details of actual annual emissions from facilities covered by the EU ETS with effect from 1 January 2005.</ul> <LI>What has been the impact on your company&#8217;s profitability of the EU ETS?</ul></ol> <li>What is your company&#8217;s strategy for trading or participating in regional and/or international trading schemes (e.g. EU ETS, RGGI, CCX) and Kyoto mechanisms such as CDM and JI projects?</li></ol> </td> </tr> <tr> <td height="22">&nbsp;</td> </tr> <tr> <td>&nbsp;</td> <tr> <td>&nbsp;</td> </tr> <tr> <td></tr> <tr> <td class="borders"><strong>Guidance:</strong><br> For question 2(g)(ii), please state whether your company participates in voluntary market activities such as the purchase of Voluntary Emissions Reductions (VERs) and the procurement of offset products. If so, please provide details of the amounts purchased by region and by project type and whether the products are verified by reference to voluntary standards. Please also describe any involvement in voluntary domestic emissions trading schemes. <p><br> <strong>Additional Guidance for Electric Utility Companies:</strong><br> <em>EU ETS Allowances</em><br> Table 2.4a at the end of this document shows the information requested by the Online Reporting System.</p> <p><em>Non-EU Trading Schemes</em> <br> Table 2.4b at the end of this document shows the information requested by the Online Reporting System.</p> <p><em>For EU Electricity Companies Only: Expected Use of CERs/ERUs for Compliance</em><br> Companies should disclose the number of emission reduction credits they expect to receive or purchase by 2012. Specifically this includes:<br> 1. The total amount of Kyoto credits (Emissions Reductions Units (ERUs) for JI projects and Certified Emissions Reductions (CERs) for CDM projects)<br> 2. The amount of credits from direct participation in JI/CDM projects<br> 3. The amount of credits from carbon funds<br> 4. Credits expected from HFC projects. </p> <p>Table 2.4c at the end of this document shows the information requested by the Online Reporting System.</p> <p><em>Other Offset Schemes</em><br> Table 2.4d shows the information requested by the Online Reporting System when reporting offsets covered by other state, national and international emission trading schemes. This excludes voluntary offsets.<br> </p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td class="Blueheader"><a name="81"></a><strong>h Energy Costs (CDP5 Question 4d)</strong> <ol type=i><li></li>Please identify the total costs in US $ of your energy consumption e.g. from fossil fuels and electric power. </li> <li> What percentage of your total operating costs does this represent?</li> <li> What percentage of energy costs are incurred on energy from renewable sources?</li></ol> </p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td class="borders"><strong>Guidance:</strong><br> 2(h)(i) If fuel or energy that your company has produced itself meets some or all of your company&#8217;s fuel or energy requirements, please would you estimate the marginal cost of producing that energy or fuel. You do not need to attribute a commercial value to that energy. <p>2(h)(iii) If you buy your electricity, please ask your supplier for the average percentage that came from renewable sources during your reporting year. Please use this figure in addition to other information on your energy costs and sources to calculate the percentage of your energy costs that were incurred on energy from renewable sources. <br> </p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td class="HEADING"><p>&nbsp;</p> <p>QUESTION 3 - PERFORMANCE</p></td> </tr> <tr> <td class="HEADING2"><p><strong>Objective: </strong>To determine performance against targets and plans to reduce GHG emissions.</p> <p>&nbsp;</p></td> </tr> <tr> <td>&nbsp;</td> </tr> <tr> <td><strong><a name="82"></a>a Reduction Plans</strong> (CDP5 Questions 1d and 4a)<br> i Does your company have a GHG emissions reduction plan in place? If so, please provide details along with the information requested below. If there is currently no plan in place, please explain why.<br></td> </tr> <tr> <td>ii What is the baseline year for the emissions reduction plan? <p>iii What are the emissions reduction targets and over what period do those targets extend?</p> <p>iv What activities are you undertaking to reduce your emissions e.g: renewable energy, energy efficiency, process modifications, offsets, sequestration, etc? What targets have you set for each and over what timescales do they extend?<br>