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CDP: The market led platform for climate and environmental disclosure Presentation to the TCFD Paul Simpson, CEO, CDP 9 th February 2016 www.cdp.net | @CDP

The disclosure process www.cdp.net | @CDP Page 90

The global environmental disclosure system 5,533 75 Companies in more Global corporate supply than 91 countries chains – US$ 2 trillion in reporting – over half annual procurement the world’s market cap 822 314 Institutional investors requesting information – a third of the Cities sharing best practices – 390 world’s investable capital million people, 61 leading megacities www.cdp.net | @CDP Page 91

Investor interest in climate, water & forests disclosure, 2003-16 Climate change 900 100 5,000 90 800 Reported in 2014 80 700 70 Number of Signatories 600 Assets (US$ Trillion) 60 500 Water 50 400 1064 40 300 Reported in 2014 30 200 20 100 10 Forests 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 162 Climate Change Signatories Water Signatories Forests Signatories Reported in 2014 Climate Change Signatory Assets Water Signatory Assets Forests Signatory Assets www.cdp.net | @CDP

Responding Companies, 2003-2015 CDP disclosure numbers by theme 6000 5533 5003 5000 4540 4112 4000 3715 3050 3000 2456 2204 2000 1449 1237 1064 922 1000 589 345 295 355 283 253 176 159 179 138 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Unique Theme Forests Theme Water www.cdp.net | @CDP Page 93

TCFD scope linkages to CDP scope Cities Water Climate Change Forests Governance, Management & Risks & opportunities Measurement & Monitoring Strategy Risks from changing Risks from other climate- Risks from changing Risks from changing physical climate related developments regulation technology parameters Transition risks from Liability risks from 3 rd Physical risks from changing to low carbon climate events party claims economy Task Force on Climate-related Financial Disclosures www.cdp.net | @CDP

Harmonising disclosure of climate risk  CDP, GRI and DJSI have linked and aligned climate disclosure  CDP part of Corporate Reporting Dialogue www.cdp.net | @CDP Page 95

CDP collaboration on standards / frameworks Collaborating on sectorial approach & sharing data Formalising CDP experience into mainstream financial disclosures www.cdp.net | @CDP Page 96

Collaboration will continue with core aims Consistency Transparency Integrating with financial disclosure Driving action to mitigate risk www.cdp.net | @CDP Page 97

That in turn will benefit all stakeholders Lenders Insurers Comparability Risk minimisation Investors Minimise disclosure burden to companies Policy makers Businesses www.cdp.net | @CDP Page 98

Suggestions for TCFD’s approach  Clarify users needs  Review current state of corporate and investor disclosure  Review current and evolving mandatory disclosure requirements  Identify best practice both market led and regulation  Identify gaps between needs and current best practice  Make recommendations for investors, companies and regulators. Which resources can be used to guide approaches.  Think about forward looking context based information such as stress tests on physical risk, 2 degree and carbon price pathways www.cdp.net | @CDP Page 99

Thank you Paul.Simpson@cdp.net @CDP_PaulS www.cdp.net | @CDP