Paul Simpson CEO The Climate & Ecological Emergency From - PowerPoint PPT Presentation

Paul Simpson CEO The Climate & Ecological Emergency From Vision to Action Tokyo - Tuesday 19 th November 2019

IPCC Special Report 1.5C 2 2 Paul Simpson| @CDP_PaulS

IPCC SPECIAL REPORT ON 1.5 ° C Key takeaways akeaway 1: Half a degree of warming makes a big difference T 1.5 ° C 2.0 ° C 2 ° C impacts Selected impacts Global population exposed to severe 14% 37% 2.6x worse heat at least once every 5 years Number of ice-free artic summers At least one every 100 years At least one every 10 years 10x worse Reduction in maize harvest in tropics 3% 7% 2.3x worse Further decline in coral reefs 70-90% 99% Up to 29% worse Decline in marine fisheries 1.5 M tonnes 3 M tonnes 2x worse ou Need to KnowAbout the IPCC 1.5˚C Report. Retrieved Source: Levin, K. (2018, Oct 7). 8 Things Y from https://www.wri.org/blog/2018/10/8-things-you-need-know-about-ipcc-15-c-report 3 Paul Simpson | @CDP_PaulS Paul Simpson| @ CDP_PaulS

IPCC SPECIAL REPORT ON 1.5 ° C Key takeaways Takeaway 2: We need to transition towards a net-zero economy in the next 3-5 decades to keep warming at no more than 1.5 ° C:  Net-zero operations;  Net-zero supply chains  Net-zero products & services;  Net-zero investments; Sources: based on data from IAMC 1.5 ° C Scenario Explorer and Data hosted by IIASA and Global Carbon Project. (2017). Supplemental data of Global Carbon Budget 2017 (Version 1.0 4 Paul Simpson | @CDP_PaulS Paul Simpson| @ CDP_PaulS

Paul Simpson | @CDP_PaulS 5

6 Paul Simpson | @CDP_PaulS

Page 7

WATER SECURITY – A GLOBAL RISK DRIVER 8 Paul Simpson | @CDP_PaulS

Emissions from deforestation  Bulleted List (22) Conserving forests could cut carbon emissions by as  Bulleted List (22) much as getting rid of every car on earth.  Bulleted List (22) WRI  Bulleted List (22) 9

Forests provide key ecosystem services  1.6 billion people (>20% of the world’s population) rely on forests for their livelihoods  75% of accessible freshwater depends on the filtration & water storage provided by forests  At least 1/3 rd of the world’s largest cities rely on forests for water  Forests hold up to 80% of terrestrial biodiversity 10

New Norms Emerging in response to the crisis 11 Paul Simpson| @ CDP_PaulS

US ESG Investing: Going Mainstream ACTION  Total US-domiciled AUM using SRI strategies grew from $8.7 trillion in 2016 to $12.0 trillion in 2018, a 38% increase  This represents 26% – or 1 in 4 dollars , up from 1 in 6 in 2016 12 Paul Simpson | @CDP_PaulS

Global ESG: Also Going Up ACTION • Europe: SRI assets grew almost 17% from 2016-2018 ($12.04 trillion to 14.08 trillion). 1 • Canada: SRI assets grew 56.4% from 2016-2018 ($1.09 trillion to $1.70 trillion), representing just over half of all professionally managed assets in the country. 2 • Australia and New Zealand: SRI assets grew 42.2% from 2016-2018 ($5.16 billion to $7.34 billion), representing 63% of all professionally managed assets in the country. 3 • Asia ex Japan: SRI assets grew 16% from 2014-2016 ($45 billion to $52.1 billion). 4 • Japan: SRI assets grew 360% from 2016-2018 ($4.74 billion to $2.18 trillion), making Japan the third largest center for sustainable investing after Europe and the US. 5 • Africa: SRI assets grew 21% from 2016-2017 ($3.54 billion to $4.28 billion) across nine countries on the continent. 6 1 .GSIA. Global Sustainable Investment Review 2018 2 GSIA. Global Sustainable Investment Review 2018 3 GSIA. Global Sustainable Investment Review 2018 4 GSIA. Global Sustainable Investment Review 2016 **latest year that GSIA provided SRI data for Asia** 5 GSIA. Global Sustainable Investment Review 2018 6 Bertha Centre for Social Innovation and Entrepreneurship – University of Cape Town. African Investing for Impact Barometer , 2017 13

14 Paul Simpson | @CDP_PaulS

Environmental disclosure goes mainstream In 2019: 8443 9000 8360 Climate change theme Water security theme Forests theme Unique Disclosers 8000 7018 6937 7000 6316 6251 5863 5815 5624 5532 6000 5001 4968 4539 4482 5000 4140 4112 3531 3536 4000 2903 2906 2433 2403 2403 3000 2166 2166 2113 1997 1426 2000 1395 1395 1237 1064 915 915 589 1000 543 455 349 349 345 300 300 283 264 228 228 199 176 179 138 159 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Climate change theme 228 300 349 915 1395 2166 2403 2903 3531 4112 4482 4968 5532 5815 6251 6937 8360 Water security theme 176 283 345 589 1064 1237 1426 1997 2113 2433 Forests theme 100 138 159 179 199 264 455 543 Unique Disclosers 228 300 349 915 1395 2166 2403 2906 3536 4140 4539 5001 5624 5863 6316 7018 8443 15 Paul Simpson | @CDP_PaulS

Gathering momentum of the TCFD recommendations  100+ CEOs publicly supported the TCFD recommendations on launch  500+ global companies have now supported the TCFD ’ s recommendations  20 companies have committed to implementing the TCFD ’ s recommendations in the next three years through CDSB ’ s commitment; and  130 investors (with over $13 Trillion AUM) have written to the G20 to encourage the group to consider the TCFD ’ s recommendations as input to their national disclosure rules. 16 Paul Simpson | @CDP_PaulS Paul Simpson | @CDP_PaulS

Japan  Highest number of TCFD supporters  Position Japan as leader in TCFD implementation  TCFD Coalition  Collaboration with other financial centres globally  Strong involvement by  Ministry of the Environment  Japan Financial Services Agency  Ministry of Economy, Trade and Industry  Japan Exchange Group 17

TCFD 2019 Status Report Change image to  The report makes special mention of relevant image CDP’s climate change questionnaire alignment with TCFD noting that over 70% of responding companies answered 21 or more of the 25 TCFD aligned questions 18 Paul Simpson | @CDP_PaulS

CDP AND TCFD 2017/18 2018/19 2019/20 • • • 15 of 22 TCFD Sectors with A year of review for the 22 of 22 TCFD Sectors with sector-specific questionnaires sector-specific questionnaires general questionnaires and • • Release of final three non- Updated core questionnaires 15 sector-specific to align with TCFD (Climate financial sector-specific questionnaires Change, Water, Forests) questionnaires • • The four Financial Sectors Aligning the structure of CDP receiving sector-specific questionnaires with the four questionnaires TCFD themes • Two technical notes on TCFD and scenario analysis  Over 8000 companies are already working on their TCFD aligned disclosures through CDP 19 15 Paul Simpson | @CDP_PaulS

Science Based Targets 20 Paul Simpson | @CDP_PaulS

Science Based Targets initiative Overview • More than 680 companies in nearly 40 countries around the world are developing new business strategies that are aligned with climate science. • Directly responsible for nearly 1,000 MT Brazil’s CO 2 e, roughly equal to annual emissions. • US$10+ trillion in market value, comparable to the value of the second largest stock exchange in the world, NASDAQ. • Nearly a fifth of Fortune Global 500 companies are committing to set science-based emissions reduction targets. 21 #sciencebasedtargets

Introduction l Business stepping up ambition for 1.5 ° C ► In order to catalyse corporate leadership, a global network of UN agencies, business organizations and industry partners came together to collectively call on companies to step up and commit to align the ambition of their targets to the ambition required to limit global temperature rise to 1.5 ° C above pre-industrial levels; ► To the end of October, over 100 major corporations had had signed the pledge committing to align ambition to 1.5 ° C within 24 months. #sciencebasedtargets 22

Science Based Targets initiative Critical sectors taking action Some of the world’s highest-emitting companies are taking steps to drastically reduce their emissions and transform their businesses by setting science-based targets. They include: • Cement: Some of the world’s largest cement companies - a sector responsible for 6% of global CO2 emissions including include Irish cement manufacturer CRH and India’s Dalmia Cement and Ambuja Cement. • Transport: Major automotive companies - including Daimler, Honda, Nissan, PSA Peugeot Citroen, Renault, Toyota and Yamaha, the road transport sector accounting for 17% of global CO2 emissions. • Chemicals: Some of the largest chemicals companies including AkzoNobel (Netherlands) and Japanese chemicals companies Sekisui Chemical, Sumitomo Chemical and Zeon Corporation. The chemicals sector is responsible for an eighth of global industrial CO2 emissions. • Power generation: Major electric utilities including Enel, NRG Energy, EDP - Energias de Portugal and SSE. The electric utilities industry is responsible for a quarter of global emissions. • Food and agriculture: Several of the world’s largest food companies including Kellogg, Danone, Diageo, Nestle, McDonald’s and Mars. 23 #sciencebasedtargets

Science Based Targets initiative Commitments by country Top 10 countries: 1. USA 2. Japan 3. United Kingdom 4. France 5. Spain 6. India 7. Sweden 8. Germany 9. Finland 10.Switzerland 24 #sciencebasedtargets

Government Policy Evolving 25 Paul Simpson | @CDP_PaulS