CDP South Africa JSE 100 Report 2011 Partnering for a low carbon future

 
CDP South Africa JSE 100 Report 2011 Partnering for a low carbon future
CARBON DISCLOSURE PROJECT

CDP South Africa JSE 100 Report
2011
Partnering for a low carbon future

On behalf of 551 investors with assets of US$ 71 trillion

Lead Partner                   Report written by             Carbon Disclosure Project
National Business Initiative   Incite Sustainability         info@cdproject.net
                                                             +44 (0) 20 7970 5660
                                                             www.cdproject.net
CDP South Africa JSE 100 Report 2011 Partnering for a low carbon future
Carbon Disclosure Project 2011

    2011 Carbon Disclosure Project
    Investor Members

CDP works with investors globally to advance the investment opportunities and reduce the risks posed by climate change
by asking almost 6,000 of the world’s largest companies to report on their climate strategies, GHG emissions and energy
use in the standardized Investor CDP format. To learn more about CDP’s member offering and becoming a member, please
contact us or visit the CDP Investor Member section at www.cdproject.net/investormembers

ABRAPP - Associação                                                 Catholic Super             PFA Pension
Brasileira das Entidades                                            CCLA Investment            Raiffeisen Schweiz
Fechadas de Previdência                                             Management Ltd             Royal Bank of Scotland
Complementar                                                        Ethos Foundation           Group
AEGON N.V.                                                          Generation Investment      Robeco
AKBANK T.A.S.                                                       Management                 Rockefeller & Co., Inc.
Allianz Global Investors                                            HSBC Holdings plc          SAM Group
Kapitalanlagegesellschaft                                           ING
mbH                                                                                            Schroders
                                                                    KB Kookmin Bank            Scottish Widows
ATP Group
                                                                    KLP                        Investment Partnership
Aviva Investors
                                                                    Legg Mason, Inc.           SEB
Bank of America Merrill
Lynch                                                               London Pensions Fund       Sompo Japan
                                                                    Authority                  Insurance Inc.
BlackRock
                                                                    Mitsubishi UFJ Financial   Standard Chartered
BP Investment                                                       Group (MUFG)
Management Limited                                                                             Sun Life Financial Inc.
                                                                    Morgan Stanley             TD Asset Management
California Public
Employees’ Retirement                                               National Australia Bank    Inc. and TDAM USA Inc.
System                                                              NEI Investments            The Wellcome Trust
California State Teachers’                                          Neuberger Berman           Zurich Cantonal Bank
Retirement System                                                   Newton Investment
Calvert Asset                                                       Management Limited
Management Company,                                                 Nordea Investment
Inc.                                                                Management

Cover photo:
The simple home of Jean-Pierre and Tracey du Plessis set in a
valley 26 kilometres outside Clanwilliam in the Western Cape,
depicts the changing consumption and eco-living that society
needs to embrace towards more sustainable living. A question
for businesses and governments is how they can drive and
support this lifestyle change. The design of the house includes
passive air-conditioning, passive heating and cooling, a
grey-water system that’s used to irrigate the family vegetable
patch, solar water heating and gas cooking. The family is
also planning to install alternative energy sources such as
wind turbines and solar systems, and have started designing
a large-scale recycling project to cater for all the homes in the
valley, which currently burn all their own refuse.
CDP Signatories 2010

    2011 Carbon Disclosure Project
    Investor Signatories

Carbon Disclosure Project 2011                                  Baumann and Partners S.A.
                                                                BAWAG P.S.K. INVEST GmbH
                                                                                                                                Daiwa Securities Group Inc.

                                                                                                                                de Pury Pictet Turrettini & Cie S.A.
                                                                Bayern LB
551 financial institutions with assets of                       BayernInvest Kapitalanlagegesellschaft mbH
                                                                                                                                DekaBank Deutsche Girozentrale
                                                                                                                                Deutsche Asset Management Investmentgesellschaft mbH
US$71 trillion were signatories to the                          BBC Pension Trust Ltd
                                                                                                                                Deutsche Bank AG
                                                                BBVA
CDP 2011 information request dated                              Bedfordshire Pension Fund
                                                                                                                                Deutsche Postbank Vermögensmanagement S.A.

February 1st, 2011.                                             Bentall Kennedy
                                                                                                                                Development Bank of Japan Inc.
                                                                                                                                Development Bank of the Philippines (DBP)
                                                                Beutel Goodman and Co. Ltd
                                                                                                                                Dexia Asset Management
Aberdeen Asset Managers                                         BioFinance Administração de Recursos de Terceiros Ltda
                                                                                                                                Dexus Property Group
Aberdeen Immobilien KAG mbH                                     BlackRock
                                                                                                                                DnB NOR ASA
ABRAPP - Associação Brasileira das Entidades Fechadas de        Blumenthal Foundation
Previdência Complementar                                                                                                        Domini Social Investments LLC
                                                                BNP Paribas Investment Partners
Active Earth Investment Management                                                                                              Dongbu Insurance
                                                                BNY Mellon
Acuity Investment Management                                                                                                    DWS Investment GmbH
                                                                BNY Mellon Service Kapitalanlage Gesellschaft
Addenda Capital Inc.                                                                                                            Earth Capital Partners LLP
                                                                Boston Common Asset Management, LLC
Advanced Investment Partners                                                                                                    East Sussex Pension Fund
                                                                BP Investment Management Limited
Advantage Asset Managers (Pty) Ltd                                                                                              Ecclesiastical Investment Management
                                                                Brasilprev Seguros e Previdência S/A.
AEGON Magyarország Befektetési Alapkezelo Zrt.                                                                                  Ecofi Investissements - Groupe Credit Cooperatif
                                                                British Columbia Investment Management Corporation (bcIMC)
AEGON N.V.                                                                                                                      Edward W. Hazen Foundation
                                                                BT Investment Management
AEGON-INDUSTRIAL Fund Management Co., Ltd                                                                                       EEA Group Ltd
                                                                Busan Bank
AFP Integra                                                                                                                     Elan Capital Partners
                                                                CAAT Pension Plan
AIG Asset Management                                                                                                            Element Investment Managers
                                                                Cadiz Holdings Limited
Ak Asset Management                                                                                                             ELETRA - Fundação Celg de Seguros e Previdência
                                                                Caisse de dépôt et placement du Québec
AKBANK T.A.S.                                                                                                                   Environment Agency Active Pension fund
                                                                Caisse des Dépôts
Alberta Investment Management Corporation (AIMCo)                                                                               Epworth Investment Management
                                                                Caixa Beneficente dos Empregados da Companhia Siderurgica
Alberta Teachers Retirement Fund                                Nacional - CBS                                                  Equilibrium Capital Group
Alcyone Finance                                                 Caixa de Previdência dos Funcionários do Banco do Nordeste do   Erste Asset Management
                                                                Brasil (CAPEF)
Allianz Elementar Versicherungs-AG                                                                                              Erste Group Bank
                                                                Caixa Econômica Federal
Allianz Group                                                                                                                   Essex Investment Management Company, LLC
                                                                Caixa Geral de Depositos
Altira Group                                                                                                                    ESSSuper
                                                                Caja de Ahorros de Valencia, Castellón y Valencia, BANCAJA
Amalgamated Bank                                                                                                                Ethos Foundation
                                                                Caja Navarra
AMP Capital Investors                                                                                                           Eureko B.V.
                                                                California Public Employees’ Retirement System
AmpegaGerling Investment GmbH                                                                                                   Eurizon Capital SGR
                                                                California State Teachers’ Retirement System
Amundi AM                                                                                                                       Evangelical Lutheran Church in Canada Pension Plan for Clergy
                                                                California State Treasurer                                      and Lay Workers
ANBIMA – Associação Brasileira das Entidades dos Mercados
Financeiro e de Capitais                                        Calvert Asset Management Company, Inc                           Evli Bank Plc
Antera Gestão de Recursos S.A.                                  Canada Pension Plan Investment Board                            F&C Management Ltd
APG Group                                                       Canadian Friends Service Committee (Quakers)                    FAELCE – Fundacao Coelce de Seguridade Social
Aprionis                                                        Canadian Imperial Bank of Commerce (CIBC)                       FAPERS- Fundação Assistencial e Previdenciária da Extensão
                                                                                                                                Rural do Rio Grande do Sul
Aquila Capital                                                  CAPESESP
                                                                                                                                FASERN - Fundação COSERN de Previdência Complementar
ARIA (Australian Reward Investment Alliance)                    Capital Innovations, LLC
                                                                                                                                Fédéris Gestion d’Actifs
Arisaig Partners Asia Pte Ltd                                   CARE Super Pty Ltd
                                                                                                                                FIDURA Capital Consult GmbH
ARK Investment Advisors Inc.                                    Carlson Investment Management
                                                                                                                                FIM Asset Management Ltd
Arma Portföy Yönetimi A.S.                                      Carmignac Gestion
                                                                                                                                FIPECq - Fundação de Previdência Complementar dos
ASB Community Trust                                             Catherine Donnelly Foundation                                   Empregados e Servidores da FINEP, do IPEA, do CNPq
ASM Administradora de Recursos S.A.                             Catholic Super                                                  FIRA. - Banco de Mexico
ASN Bank                                                        Cbus Superannuation Fund                                        First Affirmative Financial Network, LLC
Assicurazioni Generali Spa                                      CCLA Investment Management Ltd                                  First Swedish National Pension Fund (AP1)
ATP Group                                                       Celeste Funds Management Limited                                Firstrand Limited
Australia and New Zealand Banking Group Limited                 Central Finance Board of the Methodist Church                   Five Oceans Asset Management Pty Limited
Australian Central Credit Union incorporating Savings & Loans   Ceres                                                           Florida State Board of Administration (SBA)
Credit Union                                                    Christian Super                                                 Folketrygdfondet
Australian Ethical Investment Limited                           Christopher Reynolds Foundation                                 Folksam
AustralianSuper                                                 Church Commissioners for England                                Fondaction CSN
Aviva                                                           Church of England Pensions Board                                Fondation de Luxembourg
Aviva Investors                                                 CI Mutual Funds’ Signature Global Advisors                      Fondiaria-SAI
AXA Group                                                       Clean Yield Group, Inc.                                         Fonds de Réserve pour les Retraites – FRR
Baillie Gifford & Co.                                           Cleantech Invest AG                                             Fourth Swedish National Pension Fund (AP4)
Bakers Investment Group (Australia) Pty Ltd                     ClearBridge Advisors                                            FRANKFURT-TRUST Investment-Gesellschaft mbH
Banco Bradesco S/A                                              Climate Change Capital Group Ltd                                Fukoku Capital Management Inc
Banco de Credito del Peru BCP                                   CM-CIC Asset Management                                         FUNCEF - Fundação dos Economiários Federais
Banco de Galicia y Buenos Aires S.A.                            Colonial First State Global Asset Management                    Fundação AMPLA de Seguridade Social - Brasiletros
Banco do Brasil S/A                                             Comerica Incorporated                                           Fundação Atlântico de Seguridade Social
Banco Nacional de Desenvolvimento Econômico e Social -          Comite syndical national de retraite Bâtirente
BNDES                                                                                                                           Fundação Attilio Francisco Xavier Fontana
                                                                Commerzbank AG                                                  Fundação Banrisul de Seguridade Social
Banco Santander
                                                                CommInsure                                                      Fundação de Assistência e Previdência Social do BNDES - FAPES
Banesprev – Fundo Banespa de Seguridade Social
                                                                Commonwealth Bank of Australia                                  FUNDAÇÃO ELETROBRÁS DE SEGURIDADE SOCIAL - ELETROS
Banesto (Banco Español de Crédito S.A.)
                                                                Compton Foundation, Inc.                                        Fundação Forluminas de Seguridade Social - FORLUZ
Bank of America Merrill Lynch
                                                                Concordia Versicherungsgruppe                                   FUNDAÇÃO ITAUBANCO
Bank of Montreal
                                                                Connecticut Retirement Plans and Trust Funds                    Fundação Itaúsa Industrial
Bank Sarasin & Cie AG
                                                                Co-operative Financial Services (CFS)                           Fundação Promon de Previdência Social
Bank Vontobel
                                                                Corston-Smith Asset Management Sdn. Bhd.                        Fundação Vale do Rio Doce de Seguridade Social - VALIA
Bankhaus Schelhammer & Schattera Kapitalanlagegesellschaft
m.b.H.                                                          CRD Analytics                                                   Fundação Rede Ferroviaria de Seguridade Social – Refer
BANKINTER S.A.                                                  Crédit Agricole                                                 Fundação Sistel de Seguridade Social (Sistel)
BankInvest                                                      Credit Suisse                                                   FUNDIÁGUA - FUNDAÇÃO DE PREVIDENCIA COMPLEMENTAR
Banque Degroof                                                  Gruppo Credito Valtellinese                                     DA CAESB
Barclays                                                        Daegu Bank                                                      Futuregrowth Asset Management

                                                                                                                                                                                                1
Carbon Disclosure Project 2011

Gartmore Investment Management Ltd                                   La Financiere Responsable                                           NORD/LB Kapitalanlagegesellschaft AG
GEAP Fundação de Seguridade Social                                   Lampe Asset Management GmbH                                         Nordea Investment Management
Generali Deutschland Holding AG                                      Landsorganisationen i Sverige                                       Norfolk Pension Fund
Generation Investment Management                                     LBBW - Landesbank Baden-Württemberg                                 Norges Bank Investment Management (NBIM)
Genus Capital Management                                             LBBW Asset Management Investmentgesellschaft mbH                    North Carolina Retirement System
Gjensidige Forsikring ASA                                            LD Lønmodtagernes Dyrtidsfond                                       Northern Ireland Local Government Officers’ Superannuation
                                                                                                                                         Committee (NILGOSC)
GLS Gemeinschaftsbank eG                                             Legal & General Investment Management
                                                                                                                                         Northern Trust
Goldman Sachs Group Inc.                                             Legg Mason, Inc.
                                                                                                                                         Nykredit
GOOD GROWTH INSTITUT für globale Vermögensentwicklung                LGT Capital Management Ltd.
mbH                                                                                                                                      Oddo & Cie
                                                                     LIG Insurance Co., Ltd
Governance for Owners                                                                                                                    OECO Capital Lebensversicherung AG
                                                                     Light Green Advisors, LLC
Government Employees Pension Fund (“GEPF”), Republic of                                                                                  Old Mutual plc
South Africa                                                         Living Planet Fund Management Company S.A.
                                                                                                                                         OMERS Administration Corporation
Green Cay Asset Management                                           Local Authority Pension Fund Forum
                                                                                                                                         Ontario Teachers’ Pension Plan
Green Century Capital Management                                     Local Government Super
                                                                                                                                         OP Fund Management Company Ltd
Groupe Crédit Coopératif                                             Local Super
                                                                                                                                         Oppenheim Fonds Trust GmbH
Groupe Investissement Responsable Inc.                               Lombard Odier Darier Hentsch & Cie
                                                                                                                                         Opplysningsvesenets fond (The Norwegian Church Endowment)
GROUPE OFI AM                                                        London Pensions Fund Authority
                                                                                                                                         OPSEU Pension Trust
Grupo Banco Popular                                                  Lothian Pension Fund
                                                                                                                                         Oregon State Treasurer
Grupo Santander Brasil                                               Lupus alpha Asset Management GmbH
                                                                                                                                         Orion Asset Management LLC
Gruppo Credito Valtellinese                                          Macif Gestion
                                                                                                                                         Parnassus Investments
Gruppo Montepaschi                                                   Macquarie Group Limited
                                                                                                                                         Pax World Funds
Guardian Ethical Management Inc                                      MAMA Sustainable Incubation AG
                                                                                                                                         Pensioenfonds Vervoer
Guardians of New Zealand Superannuation                              Man
                                                                                                                                         Pension Denmark
Guosen Securities Co., LTD.                                          Maple-Brown Abbott Limited
                                                                                                                                         Pension Fund for Danish Lawyers and Economists
Hang Seng Bank                                                       Marc J. Lane Investment Management, Inc.
                                                                                                                                         Pension Protection Fund
Harbourmaster Capital                                                Maryland State Treasurer
                                                                                                                                         Pensionsmyndigheten
Harrington Investments, Inc                                          Matrix Asset Management
                                                                                                                                         PETROS - The Fundação Petrobras de Seguridade Social
Hauck & Aufhäuser Asset Management GmbH                              McLean Budden
                                                                                                                                         PFA Pension
Hazel Capital LLP                                                    MEAG MUNICH ERGO Asset Management GmbH
                                                                                                                                         PGGM
HDFC Bank Ltd                                                        Meeschaert Gestion Privée
                                                                                                                                         Phillips, Hager & North Investment Management Ltd.
Health Super Fund                                                    Meiji Yasuda Life Insurance Company
                                                                                                                                         PhiTrust Active Investors
Healthcare of Ontario Pension Plan (HOOPP)                           Mendesprev Sociedade Previdenciária
                                                                                                                                         Phoenix Asset Management Inc.
Henderson Global Investors                                           Merck Family Fund
                                                                                                                                         Pictet Asset Management SA
Hermes Fund Managers                                                 Meritas Mutual Funds
                                                                                                                                         PKA
HESTA Super                                                          MetallRente GmbH
                                                                                                                                         Pluris Sustainable Investments SA
HSBC Global Asset Management (Deutschland) GmbH                      Metrus – Instituto de Seguridade Social
                                                                                                                                         PNC Financial Services Group, Inc.
HSBC Holdings plc                                                    Metzler Investment Gmbh
                                                                                                                                         Pohjola Asset Management Ltd
HSBC INKA Internationale Kapitalanlagegesellschaft mbH               MFS Investment Management
                                                                                                                                         Portfolio 21 Investments
Hyundai Marine & Fire Insurance. Co., Ltd.                           Midas International Asset Management
                                                                                                                                         Porto Seguro S.A.
Hyundai Securities Co., Ltd.                                         Miller/Howard Investments
                                                                                                                                         PREVHAB PREVIDÊNCIA COMPLEMENTAR
Ibgeana Society of Assistance and Security SIAS / Sociedade          Mirae Asset Global Investments Co. Ltd.
Ibgeana de Assistência e Seguridade (SIAS)                                                                                               PREVI Caixa de Previdência dos Funcionários do Banco do Brasil
                                                                     Mirae Asset Securities Co., Ltd.
IDBI Bank Ltd                                                                                                                            PREVIG Sociedade de Previdência Complementar
                                                                     Missionary Oblates of Mary Immaculate
Ilmarinen Mutual Pension Insurance Company                                                                                               Provinzial Rheinland Holding
                                                                     Mistra, Foundation for Strategic Environmental Research
Impax Group plc                                                                                                                          Prudential Investment Management
                                                                     Mitsubishi UFJ Financial Group (MUFG)
IndusInd Bank Limited                                                                                                                    Psagot Investment House Ltd
                                                                     Mizuho Financial Group, Inc.
Industrial Bank (A)                                                                                                                      PSP Investments
                                                                     Mn Services
Industrial Bank of Korea                                                                                                                 PSS - Seguridade Social
                                                                     Monega Kapitalanlagegesellschaft mbH
Industry Funds Management                                                                                                                Q Capital Partners Co. Ltd
                                                                     Morgan Stanley
Infrastructure Development Finance Company                                                                                               QBE Insurance Group
                                                                     Motor Trades Association of Australia Superannuation Fund Pty
ING                                                                  Ltd                                                                 Rabobank

Insight Investment Management (Global) Ltd                           Mutual Insurance Company Pension-Fennia                             Raiffeisen Schweiz

Instituto de Seguridade Social dos Correios e Telégrafos- Postalis   Natcan Investment Management                                        Railpen Investments

Instituto Infraero de Seguridade Social - INFRAPREV                  Nathan Cummings Foundation, The                                     Rathbones / Rathbone Greenbank Investments

Instituto Sebrae De Seguridade Social - SEBRAEPREV                   National Australia Bank                                             Real Grandeza Fundação de Previdência e Assistência Social

Insurance Australia Group                                            National Bank of Canada                                             Rei Super

Investec Asset Management                                            National Grid Electricity Group of the Electricity Supply Pension   Reliance Capital Ltd
                                                                     Scheme
Irish Life Investment Managers                                                                                                           Resolution
                                                                     National Grid UK Pension Scheme
Itau Asset Management                                                                                                                    Resona Bank, Limited
                                                                     National Pensions Reserve Fund of Ireland
Itaú Unibanco Holding S A                                                                                                                Reynders McVeigh Capital Management
                                                                     National Union of Public and General Employees (NUPGE)
Janus Capital Group Inc.                                                                                                                 RLAM
                                                                     NATIXIS
Jarislowsky Fraser Limited                                                                                                               Robeco
                                                                     Nedbank Limited
JPMorgan Chase & Co.                                                                                                                     Rockefeller Financial
                                                                     Needmor Fund
Jubitz Family Foundation                                                                                                                 Rose Foundation for Communities and the Environment
                                                                     NEI Investments
Jupiter Asset Management                                                                                                                 Royal Bank of Canada
                                                                     Nelson Capital Management, LLC
Kaiser Ritter Partner (Schweiz) AG                                                                                                       Royal Bank of Scotland Group
                                                                     Nest Sammelstiftung
KB asset Management                                                                                                                      RREEF Investment GmbH
                                                                     Neuberger Berman
KB Kookmin Bank                                                                                                                          SAM Group
                                                                     New Amsterdam Partners LLC
KBC Asset Management NV                                                                                                                  SAMPENSION KP LIVSFORSIKRING A/S
                                                                     New Mexico State Treasurer
KDB Asset Management Co., Ltd.                                                                                                           SAMSUNG FIRE & MARINE INSURANCE
                                                                     New York City Employees Retirement System
KEPLER-FONDS Kapitalanlagegesellschaft m. b. H.                                                                                          Samsung Securities
                                                                     New York City Teachers Retirement System
KfW Bankengruppe                                                                                                                         Sanlam
                                                                     New York State Common Retirement Fund (NYSCRF)
KlimaINVEST                                                                                                                              Santa Fé Portfolios Ltda
                                                                     New Zealand Earthquake Commission
KLP                                                                                                                                      SAS Trustee Corporation
                                                                     Newton Investment Management Limited
Korea Investment Management Co., Ltd.                                                                                                    Sauren Finanzdienstleistungen GmbH & Co. KG
                                                                     NGS Super
The Korea Teachers Pension (KTP)                                                                                                         Schroders
                                                                     NH-CA Asset Management
Korea Technology Finance Corporation (KOTEC)                                                                                             Scotiabank
                                                                     Nikko Asset Management Co., Ltd.
KPA Pension                                                                                                                              Scottish Widows Investment Partnership
                                                                     Nikko Cordial Securities
La Banque Postale Asset Management                                                                                                       SEB
                                                                     Nissay Asset Management Corporation
2
CDP Signatories

SEB Asset Management AG                                                   Tokio Marine & Nichido Fire Insurance Co., Ltd.                  Figure 1: 2011 Signatory Investor
                                                                                                                                           2011 Signatory investor breakdown
Second Swedish National Pension Fund (AP2)                                Toronto Atmospheric Fund                                                   Breakdown
SEIU Master Trust                                                         Trillium Asset Management Corporation
Seligson & Co Fund Management Plc                                         Triodos Investment Management
Sentinel Investments                                                      Tryg
SERPROS - Fundo Multipatrocinado                                          UBS                                                                              5%
Seventh Swedish National Pension Fund (AP7)                               UniCredit Group                                                            23%
                                                                                                                                                                  1%           37%
Shinhan Bank                                                              Union Asset Management Holding AG
Shinhan BNP Paribas Investment Trust Management Co., Ltd                  Unipension
Shinkin Asset Management Co., Ltd                                         UNISON staff pension scheme
Siemens Kapitalanlagegesellschaft mbH                                     UniSuper
Signet Capital Management Ltd                                             Unitarian Universalist Association
SMBC Friend Securities Co., LTD                                           United Methodist Church General Board of Pension and Health
                                                                          Benefits
Smith Pierce, LLC
                                                                          United Nations Foundation
SNS Asset Management
                                                                          Universities Superannuation Scheme (USS)
Social(k)
                                                                          Vancity Group of Companies
Sociedade de Previdencia Complementar da Dataprev - Prevdata
                                                                          VCH Vermögensverwaltung AG
Solaris Investment Management Limited
                                                                          Veris Wealth Partners
Sompo Japan Insurance Inc.
                                                                          Veritas Investment Trust GmbH
Sopher Investment Management                                                                                                                                           34%
                                                                          Vermont State Treasurer
SPF Beheer bv
                                                                          Vexiom Capital, L.P.
Sprucegrove Investment Management Ltd
                                                                          VicSuper Pty Ltd
Standard Chartered
                                                                          Victorian Funds Management Corporation                               Asset Managers
Standard Chartered Korea Limited
Standard Life Investments
                                                                          VietNam Holding Ltd.                                                 Asset Owners
                                                                          Vision Super                                                         Banks
State Bank of India
                                                                          VOLKSBANK INVESTMENTS
State Street Corporation                                                                                                                       Insurance
                                                                          Waikato Community Trust Inc
StatewideSuper
                                                                          Walden Asset Management, a division of Boston Trust &                Other
StoreBrand ASA                                                            Investment Management Company
Strathclyde Pension Fund                                                  WARBURG - HENDERSON Kapitalanlagegesellschaft für
Stratus Group                                                             Immobilien mbH
Sumitomo Mitsui Banking Corporation                                       WARBURG INVEST KAPITALANLAGEGESELLSCHAFT MBH
Sumitomo Mitsui Card Company, Limited                                     Wells Fargo & Company
Sumitomo Mitsui Finance & Leasing Co., Ltd                                West Yorkshire Pension Fund
Sumitomo Mitsui Financial Group                                           WestLB Mellon Asset Management (WMAM)
The Sumitomo Trust & Banking Co., Ltd.                                    Westpac Banking Corporation
Sun Life Financial Inc.                                                   White Owl Capital AG
Superfund Asset Management GmbH                                           Winslow Management, A Brown Advisory Investment Group
SUSI Partners AG                                                          Woori Bank
Sustainable Capital                                                       Woori Investment & Securities Co., Ltd.
Svenska Kyrkan, Church of Sweden                                          YES BANK Limited
Swedbank AB                                                               York University Pension Fund
Swiss Re                                                                  Youville Provident Fund Inc.
Swisscanto Holding AG                                                     Zegora Investment Management
Syntrus Achmea Asset Management                                           Zevin Asset Management
T. Rowe Price                                                             Zurich Cantonal Bank
T. SINAI KALKINMA BANKASI A.S.
T.GARANTI BANKASI A.S.
Tata Capital Limited
TD Asset Management Inc. and TDAM USA Inc.
Teachers Insurance and Annuity Association – College Retirement
Equities Fund (TIAA-CREF)
Telluride Association
Tempis Asset Management Co. Ltd
Terra Forvaltning AS
TerraVerde Capital Management LLC
                                                                  CDP Investor
                                                                  Figure         signatories
                                                                         2: CDP Investor     & assets&over
                                                                                         Signatories       time
                                                                                                      Assets  over time
The Brainerd Foundation
The Bullitt Foundation                                                                    600                                                                                            80
The Central Church Fund of Finland
The Collins Foundation                                                                                                                                                                   70
The Co-operative Asset Management                                                         500
The Co-operators Group Ltd                                                                                                                                                               60
The Daly Foundation
                                                                  Number of Signatories

                                                                                          400
                                                                                                                                                                                              Assets (US$ trillions)

The GPT Group                                                                                                                                                                            50
The Hartford Financial Services Group, Inc.
The Japan Research Institute, Limited                                                     300                                                                                            40
The Joseph Rowntree Charitable Trust
The Local Government Pensions Institution                                                                                                                                                30
The Pension Plan For Employees of the Public Service Alliance                             200
of Canada
The Pinch Group
                                                                                                                                                                                         20
The Presbyterian Church in Canada                                                         100
The Russell Family Foundation
                                                                                                                                                                                         10
The Shiga Bank, Ltd.
The Standard Bank Group
                                                                                           0                                                                                              0
The United Church of Canada - General Council                                                   2003   2004         2005    2006        2007      2008     2009        2010       2011
The University of Edinburgh Endowment Fund
The Wellcome Trust                                                                                                           Signatories          Assets
Third Swedish National Pension Fund (AP3)
Threadneedle Asset Management
                                                                                                                                                                                              3
Carbon Disclosure Project 2011

                                 Minister’s foreword                       We also welcome the commitment
                                                                           shown by South African businesses
                                 We welcome the fifth Carbon               that have seen the importance of
                                 Disclosure Report that illuminates        giving attention to their own impacts
                                 business’ commitment to achieving         on climate change as well assessing
                                 disclosure of their carbon footprint      their own exposure to risks and
                                 and pro-actively working towards its      opportunities to climate change and
                                 reduction.                                understand the need to manage
                                                                           reputational risk especially with regard
                                 The various indicators of exponential     to investors and consumers of their
                                 improvement in not only the               goods and services.
                                 response rate, but the improving
                                 quality and scope of data, rising         It also reaffirms that South Africa is
                                 levels of strategic importance given      capable of playing a leading role on
                                 to this process and the increasing        the continent and among emerging
                                 refinement in the identification of       economies in contributing to and
                                 risks and opportunities, are all signs    benefitting from opportunities to
                                 of the progressive significance that      mitigate and adapt to climate change.
                                 companies are attaching to the
                                 impacts of climate change.                It is also worth noting that as
                                                                           companies reach greater levels of
                                 Climate change is the foremost            reporting, the Carbon Disclosure
                                 threat to South Africa’s long term        Project has had transformational
Government is committed          sustainable development, economic         value in improving efficiencies,
                                 growth and quality of life. Government    data gathering, shaping business
to implementing strategies       alone cannot win this battle without      opportunities and improved
towards cleaner technology       the support and commitment of             competitiveness.
                                 business. Government is committed
and transition towards a low     to implementing strategies towards        Given that this is a journey within
carbon future. South Africa      cleaner technology and transition         a context of many competing
                                 towards a low carbon future.              socioeconomic challenges, there is
has gazetted the National                                                  no doubt that an 83% response rate
Climate Change Response          South Africa has gazetted the National    by leading South African companies
                                 Climate Change Response Policy            must be applauded. As they continue
Policy that embodies our         that embodies our commitment to           on their journey however, greater
commitment to addressing         addressing climate change while           focus and monitoring of improved
                                 serving as our roadmap for effective      performance is still required.
climate change while             climate change response and
serving as our roadmap for       transition to a climate resilient and     The setting of targets and
                                 low-carbon economy.                       implementation of actions to progress
effective climate change                                                   against these targets as well as
response and transition to       The policy, inter alia, deals with jobs   the further premium that needs to
                                 and aims to limit job contraction         be placed on measurement and
a climate resilient and low-     to those areas of the economy             verification, are areas in which
carbon economy.                  where excessive carbon intensity          companies can apply greater effort to
                                 is unsustainable, whilst promoting        entrench their capability in leading the
                                 and expanding the green economy           way while at the same time sustaining
                                 sectors. The policy also aims to          their businesses.
                                 promote investment in human
                                 and productive resources that will        The 2011 report also highlights
                                 grow the green economy. To do             that the next step of the journey
                                 this, government will assess the          is for more companies to move
                                 vulnerability of the different economic   beyond identification of risks to
                                 sectors to climate change and             risk mitigation and to prioritise
                                 develop Sector Job Resilience Plans.      strategies and implementation plans

4
Partner and sponsor forewords

to seize opportunities that have been      "As a significant contributor
identified.
                                           to GHG emissions and
For companies who have not                 effective climate change
elevated their strategic focus and
intent sufficiently through allocation     response actions, business
of company leadership responsibility       and industry have a
and investment in the necessary
human resources and appropriate            fundamental role in South
alignment of their internal structures     Africa’s climate change
and capacity, responding to risk and
opportunities will prove more difficult.   response. Government
Finally, the South African Carbon
                                           will continue to forge
Disclosure Project Report remains          and maintain effective
a significant barometer and driver
of change towards a low carbon
                                           partnerships with business
economy and is accessed by a               and industry to ensure that
host of institutions who can support
the transition to a low carbon
                                           their capacity is harnessed
economy through technological              in driving the transition
support, research and development,
enabling legislative environments and
                                           to a climate-resilient,
investment opportunities. It is a stage    equitable and internationally
that prepares us well for the carbon
market process.
                                           competitive, lower-carbon
                                           economy and society...
As South Africa hosts COP 17 and
CMP 7 in Durban this year, the             Government will also
message is clear that business has an
important role in providing leadership
                                           continue to encourage
and solutions as they increasingly feel    voluntary reporting initiatives
the impacts of climate change and
resource scarcity. The time to act in
                                           established and maintained
response to climate change is now in       by a variety of organised
order to save our future.
                                           business associations."
                                           National Climate Change
                                           Response White Paper

Minister Edna Molewa, MP
Minister of Water and Environmental
Affairs

                                                                                                        5
Carbon Disclosure Project 2011

     Forewords

    CEO Foreword
Foreword   by Paul Simpson, CEO Carbon Disclosure Project
 Corporations, investors and governments today are faced with a choice: to compete aggressively for finite resources,
  or to advance
Corporations,     towards
               investors anda governments
                              low carbon economy     that enables
                                          today are faced           sustainable,
                                                           with a choice:        profitable
                                                                          to compete        growth,
                                                                                     aggressively      whilst
                                                                                                  for finite   reducing reliance on
                                                                                                             resources,
orincreasingly  scarce amaterials.
    to advance towards    low-carbon economy that enables sustainable, profitable growth, whilst reducing reliance on
increasingly scarce materials.
    Last year, global energy-related carbon dioxide emissions reached a record high. The International Energy Agency’s
Last  year global
  estimates    madeenergy-related carbonbut
                     for bleak reading   dioxide emissions reached
                                             compounded              a record
                                                             the necessity  to high.
                                                                               take The
                                                                                     boldInternational
                                                                                           and decisiveEnergy  Agency
                                                                                                          action if we estimates
                                                                                                                       are to have any
made
  chance of limiting temperature increase to the 2°C level agreed by world leaders to protect against chance
        for bleak reading but compounded    the necessity to take bold and decisive  action if we are to have any          of
                                                                                                                  catastrophic  climate
limiting temperature increase to the 2°C level agreed by world leaders to protect against catastrophic climate change.
    change.
What’s more, rising energy demands are competing for a limited supply of fossil fuels. The competition for increasingly
 What’snatural
scarce  more,resources
                 rising energy     demands
                            is putting       areoncompeting
                                       pressure    commodityfor  a limited
                                                              prices       supply
                                                                      and having   of fossil impact
                                                                                 a growing    fuels. The
                                                                                                     bothcompetition
                                                                                                          socially and for increasingly
 scarce  natural    resources   is putting pressure  on commodity     prices and having   a  growing   impact
economically. It is clear that today, more than ever, we must build momentum to decouple economic growth       both   socially and
                                                                                                                   from
 economically.
emissions.        It is clear that today, more  than ever, we must   build momentum    to decouple    economic    growth  from emissions

 Managing
Managing       carbon
            carbon       emissions
                     emissions    and and   protecting
                                       protecting         the business
                                                    the business            from climate
                                                                   from climate     change change    impacts
                                                                                            impacts is          is fundamental
                                                                                                       fundamental    to achievingto achieving
 sustainable
sustainable     and
              and     strong
                   strong      shareholder
                            shareholder       returns.
                                          returns.      Earlier
                                                    Earlier      this year,
                                                            this year,        the investment
                                                                       investment              consultancy
                                                                                      consultancy             Mercera released
                                                                                                  Mercer released                a report concludin
                                                                                                                       report concluding
that
 thatthe
       thebest
           bestwaywayforfor
                         institutional investors
                            institutional         to manage
                                           investors   to manageportfolio risk associated
                                                                      portfolio             with climate
                                                                                  risk associated   with change
                                                                                                          climatemay    be tomay
                                                                                                                    change    shift be
                                                                                                                                    40%to of
                                                                                                                                          shift 40% o
their
 theirportfolios into
        portfolios    climate-sensitive
                    into  climate-sensitiveassets  with an
                                                assets   withemphasis    on those
                                                               an emphasis       on that canthat
                                                                                     those    adapt
                                                                                                 cantoadapt
                                                                                                       a low-carbon
                                                                                                              to a lowenvironment.
                                                                                                                        carbon environment.
AnAnimportant
      important part of an
                  part  of investor’s strategy
                            an investor’s      shouldshould
                                           strategy   be to engage  with the with
                                                             be to engage    companies     in which they
                                                                                  the companies            invest to
                                                                                                       in which       encourage
                                                                                                                   they   invest to encourage
performance improvement. Carbon Action is a new initiative launched by CDP this year. It is driven by a leading group of
  performance improvement. Carbon Action is a new initiative launched by CDP this year. It is driven by a leading grou
investors to encourage their portfolio companies to reduce emissions by investing in emissions reducing activities with a
  of investors to encourage their portfolio companies to reduce emissions by investing in emissions reduction activities
satisfactory payback period. Carbon Action reflects a growing recognition that there is a huge range of carbon reducing
  with a satisfactory
activities that companiespayback    period. that
                             can undertake   Carbon
                                                 have Action  reflects
                                                      a very clear     a growing
                                                                   business case. Itrecognition
                                                                                      is therefore that
                                                                                                   in thethere   is a of
                                                                                                          interests   huge     range of carbon
                                                                                                                         all investors
  reduction   activities  that companies     can  undertake   that have  a very  clear
and not just the more active owners of investments to ensure these actions are taken.    business    case.   It is therefore    in the interests
    of all investors, and not just the more active owners of investments, to ensure these actions are taken.
As the management of carbon continues to move into companies’ core business strategies and mainstream investment
  As the management
thinking,                   of carbon
           demand for primary           continues
                                 corporate    climateto   move information
                                                       change    into companies’           core business
                                                                                  grows around     the world.strategies
                                                                                                                As well asand   mainstream
                                                                                                                           working    on behalfinvestmen
                                                                                                                                                of
  thinking,
551           demandinvestors
      CDP signatory      for primary  corporate
                                 to gather  relevantclimate    change
                                                       information   frominformation         growsaround
                                                                             large corporations      aroundthe  the world.
                                                                                                                  world, CDP Asiswell
                                                                                                                                  alsoas  working on
                                                                                                                                        working
  behalf
with       of businesses
       global 551 institutional  investors totogather
                           and governments                 relevant
                                                   strengthen          information
                                                                the resilience           from large corporations
                                                                                    and sustainability   of their supplyaround    the world,
                                                                                                                         chains through    the CDP is als
CDP    Supply  Chain   programme.   CDP   Cities   has  been  launched      to help    the world’s  major  cities
  working with global businesses and governments to strengthen the resilience and sustainability of their supply  reduce  climate  change   risk chains
and   bolster economic    growth;  and CDP     Water  Disclosure   is  now    in  its second  year   of working   with
  through the CDP Supply Chain program. CDP Cities has launched to help the world’s major cities reduce climate chang  major  global  companies
torisk
    improve   water management.
        and bolster                 A key part
                       economic growth,           of CDP’s
                                             whilst   CDP strategy      is to ensureisthe
                                                            Water Disclosure                 effective
                                                                                           now          use of data
                                                                                                in its second        collected.
                                                                                                                  year           To assist
                                                                                                                        of working    with with
                                                                                                                                            major global
this  companies    are able to obtain tools  that  help  them  to measure,       report   and manage     carbon   more
  companies to improve water management. A key part of CDP’s strategy is to ensure the effective use of data collected  effectively, through
CDP    Reporter
  To assist   withServices.
                    this companies are able to obtain tools that help them to measure, report and manage carbon more
    effectively, through CDP Reporter Services.
It is through partnerships that CDP can achieve the largest impact. In South Africa we are delighted to be working with our
local partner, the National Business Initiative (NBI). In addition, we highly value the continued support of our Global Advisor,
  It is through
PwC,     as well aspartnerships  that CDP
                    that of Accenture,      can achieve
                                       Microsoft, SAP andthe    largest impact.
                                                            Bloomberg.   These andWeour
                                                                                      areother
                                                                                          delighted  to around
                                                                                               partners be working  again
                                                                                                               the world arethis year with
  PwC,    our Global   Advisor,  as well as  with
integral to the acceleration of CDP’s mission.    Accenture,     Microsoft, SAP   and  Bloomberg.    These  and  our other  partners
    around the world are integral to the acceleration of CDP’s mission.
Whilst we wait patiently for much needed global regulation, business must continue to forge ahead, innovate and seek out
 Whilst we wait
opportunities     patiently
              by doing  morefor  much
                              with   less.needed   globalthat
                                           The decisions   regulation,
                                                              perpetuatebusiness    must
                                                                          a legitimate,    continue and
                                                                                        low-carbon  to forge   ahead,economy
                                                                                                         high growth    innovate and see
will
 outbring considerable
     opportunities   byvalue
                         doingto more
                                 those with
                                         that have
                                              less.the
                                                    Theforesight to make
                                                         decisions   that them.   The information
                                                                          perpetuate              contained
                                                                                         a legitimate,       in this report
                                                                                                       low carbon           and the
                                                                                                                      and high   growth
companies’  responses
 economy will           assist in illuminating
                bring considerable        valuethat path. that have the foresight to make them. The information contained in thi
                                                to those
    report and the companies’ responses assist in illuminating that path.

 PaulSimpson
Paul   Simpson
    CEO
CEO, Carbon Disclosure Project
    Carbon Disclosure Project

6
Partner and sponsor forewords

National Business Initiative                  framework for measurement, reporting        Incite Sustainability
                                              and verification (MRV). The Government
The context to the release of the JSE         of South Africa intends establishing        It is more than six years since we first
100 CDP report in 2011 is significant.        a country-wide MRV system to                approached the National Business
South Africa and the City of Durban           measure climate variables and               Initiative with the proposal to partner with
are hosting, and are party to, the 17th       enable the identification of successful     the Carbon Disclosure Project in London
Conference of the Parties to the United       interventions. A level of MRV within        to engage South African business on
Nations Framework Convention on               the business community is essential in      climate change. From the outset, our aim
Climate Change (COP17) and the 7th            the implementation of market based          was to contribute to a more informed
Meeting of the Parties to the Kyoto           mechanisms in the pursuit of a low-         appreciation amongst businesses,
Protocol (CMP 7). Mitigating climate          carbon growth trajectory. While the         investors and the financial media of
change to minimise disruption to              CDP report has undoubtedly provided         the strategic investment implications of
human and natural systems can only            a framework for improved disclosure         climate change, and to further encourage
be achieved through a concerted               and performance for South African           the proactive involvement of business
and coherent global response. That            Companies, it has also illustrated the      in identifying solutions to this significant
global response is informed by country        need for further efforts required by        economic, social and environmental
positions which are in turn informed by       companies in more robust verification of    challenge.
key sectors of those societies with the       their data and activities.
business sector being pivotal in many                                                     Following those early conversations we
cases. Business might perpetuate the          Companies who have consistently and         have seen the publication of five annual
impacts on climate change or be the           sincerely participated in the CDP will be   CDP reports, each of which has shown
provider of solutions and in some cases       well positioned to lead the transition to   an encouragingly high level of South
be subject to significant economic            a green economy. They will be better        African business participation by global
restructuring.                                positioned to mitigate their carbon         standards. While the response has
                                              emissions and respond to Government’s       always been comparatively high – with
The CDP in South Africa has assisted          aspirations. However there is still much    this year’s 83% response rate being
in demarcating the contribution to            to be done and we cannot do it alone.       the second highest globally – there has
carbon emissions of various industry          The theme of partnerships is echoed         been a profound shift in the nature of the
sectors. This supports appropriate            by Government in their COP17 mantra         business contribution since the first CDP
prioritisation of strategies to combat        – “Working together we can save             report in 2007. This is demonstrated in
climate change from both a government                                                     particular by the significant increase in
                                              tomorrow today”.
and business perspective. The CDP has                                                     the number of South African companies
also been a catalyst for action, in driving                                               that are now assessing and reporting
business to integrate climate change                                                      on their carbon footprints and that are
into strategy and in the identification of                                                voluntarily committing to emissions
risks and opportunities, promoting the                                                    reduction targets.
link between environmental, economic
                                              Joanne Yawitch                              Although we believe that the CDP has
and social imperatives. Although the
                                                                                          played a valuable role in increasing
execution of strategy and realisation         Chief Executive Office, NBI
                                                                                          corporate awareness and action on
of opportunities is the next great
                                                                                          climate change, it is evident that much
challenge, the CDP disclosure provides
                                                                                          still needs to be done if we are to limit
encouraging evidence of revised
                                                                                          the global temperature increase to the
business models and a significant
                                                                                          2°C level agreed by world leaders. This
investment in mitigation activities.
                                                                                          will require active leadership from the
                                                                                          business and investment community,
Achieving the policy aspirations in South
                                                                                          informed by an understanding that
Africa’s recently released White Paper
                                                                                          responding to climate change is
on Climate Change would require close
                                                                                          fundamental to ensuring the sustained
cooperation between Government
                                                                                          creation of value, both for shareholders
and Business and would mean major
                                                                                          and society at large. Hopefully the
challenges for both. The theme of this
                                                                                          analysis provided in this year’s report,
report – “Partnering for a low carbon
                                                                                          and the shifts prompted by the process
future” is apposite in this context. In
                                                                                          of reporting, will further contribute to this
order for government to realise its
ambitions there will have to be sustained                                                 understanding.
effort and cooperation from all spheres
of government, the private sector and
civil society alongside the dedication of
individual citizens of South Africa.
                                                                                          Jonathon Hanks
A key area in the COP17 negotiations
will be work that will progress a                                                         Director, Incite Sustainability
                                                                                                                                      7
Carbon Disclosure Project 2011

KPMG                                         years, is a positive sign as measurement      Element Investment
                                             and disclosure is the first step to
The latest Carbon Disclosure Project         effectively managing carbon emissions.
                                                                                           Managers
(CDP) report for South Africa highlights     Top organisations have taken this             We make long-term investment decisions
a welcome trend of an increasingly           further by also increasing their reporting    on behalf of our clients and investors.
proactive response to climate change         on identified risks and opportunities –       Climate policy and resulting regulation
by the private sector. With an impressive    the next crucial step towards a good          can have a material impact on the
83%, South Africa has the second             carbon management framework. As               economy and the underlying different
highest CDP response rate in the world       expected, there are clearly still areas       investment asset classes over the long-
– definitely something for us all to be      for improvement, including the need           term. Investors require policy certainty
proud of.                                    for more organisations to verify their        so they can make the best possible
                                             measured emissions, and for the               investment decisions on behalf of their
As a lead sponsor and enthusiastic           robust sensible analysis of risks and         clients.
participant of the CDP in South Africa,      opportunities.
KPMG is proud to be involved with                                                          Element Investment Managers (Element)
the launch of the 2011 CDP report,           Organisations that are at the forefront       has been a Carbon Disclosure Project
timed to coincide with the 17th United       of the measurement and disclosure of          (CDP) signatory investor and sponsor
Nations Conference of the Parties on         carbon emissions, and that develop and        because it is a powerful tool to enhance
Climate Change. COP17 is a highly            implement sound carbon management             awareness of climate change, help
significant milestone in international       strategies, are better equipped to deal       companies to identify potential risks and
climate negotiations, with the existing      with the risks and opportunities in an        opportunities due to climate change
agreement in the form of the Kyoto           increasingly complex carbon, energy and       and encourage action to mitigate
Protocol expiring in 2012. As the host       water regulatory environment.                 these risks and take advantage of the
Nation of COP17 and in the spirit of the                                                   opportunities. It is concerning that a few
negotiations, it therefore seems fitting     We commend the many organisations             companies have still not taken advantage
for South Africa’s CDP report to be          that have already taken this important        of the CDP programme to develop
launched at this time.                       visionary step and encourage all              measurement processes and plans to
                                             organisations to do likewise. By pro-         reduce emissions. In discussions with
An overarching theme of this year’s          actively tackling the issues of climate       investee companies, we understand that
CDP report is that of Government             change – and seizing the opportunities –      it takes approximately three years to
and organisations working together.          business can reasonably ensure that they      develop accurate management emission
The private sector plays an important        are equipped to drive value, responsibly      information processes.
role in achieving our national carbon        and sustainably, through effective carbon
reduction ambitions, with Government’s       management programmes.                        Element has engaged with a number
role to facilitate this through sound                                                      of South African companies to carefully
climate policy and incentivising the         The CDP is ultimately about much              consider climate change risks and
transition to a low carbon economy. It       more than a report – it’s a reflection of     opportunities and improve disclosure.
is most encouraging to note that in the      how we see our world and what we’re           While most companies have become
National Development Plan (presented         doing about this to positively shape a        aware of the link between energy
to President Jacob Zuma by Minister          sustainable future. We have a shared          consumption, emissions and operating
Trevor Manuel on behalf of the National      responsibility for securing the future – as   costs, some are still not taking the
Planning Commission on 11 November           individuals, for our own organisations and    opportunity to reduce long-term costs
2011), matters around climate change         for future generations.                       through the use of more energy efficient
(in the context of the use of natural                                                      technology and practices.
resources) feature prominently. In short,
the Government is saying that “we                                                          Element is also participating in the global
need to act in a way that protects our                                                     CDP Water Disclosure Project and a
environment” – something that we all                                                       collaborative PRI engagement with
readily subscribe to.                        Moses Kgosana                                 companies that did not respond to CDP
                                             Chief Executive, KPMG in South Africa         Water Disclosure in 2010.
It is clear that as South Africa continues
on its path of introducing sustainable       Chairman and Senior Partner, KPMG
climate change policy, the need for          Africa
constructive engagement between
Government and organisations in the
private sector remains crucial. KPMG
will continue to play a key role in                                                        David Couldridge
facilitating this.                                                                         Investment Analyst, Element Investment
                                                                                           Managers
South Africa’s very high CDP response
rate, in itself an increase on previous
8
Partner and sponsor forewords

Industrial Development                                The South African Post                                                  Webber Wentzel
Corporation                                           Office
  The Industrial Development Corporation (IDC) has a long and proud history in the
                                                                                                                              2011 is a momentous year for South
    development of the South African economy and the rest of the continent.
TheCombating
      Industrialclimate
                      Development           Corporation            On 1 November 2011, mankind                                Africa’s response to climate change,
(IDC)   has
                             change is a challenge that will require a multi-pronged approach in                              predominantly due to the publication of
    order   to a  long aand
               achieve           proud
                            resilient      history
                                      economy,        in the opportunity
                                                 realising         symbolically
                                                                            presented  celebrated
                                                                                           by the       the birth of the
the development
     development            of theeconomy.
                     of a green       South ItAfrican              7th billion
                                                is against this background       human
                                                                              that  the IDC being
                                                                                              has set alive on earth.
                                                                                                                              the National Climate Change Response
economy
    aside R22, and     the rest
                   4 –billion, the of  the allocation
                                    largest  continent. of the IDC Taking    steps
                                                                    funds to date,      to sustain
                                                                                     towards   the     an inhabitable         White Paper (the “Paper”) and the 17th
    development of the green economy.                              planet for the seven billion people on                     Conference of the Parties to the UN
Combating         climate ischange         ispriority
                                              a challenge          earth   has    become key     the responsibility of all,   Framework Convention on Climate
    The green economy            one of the           sectors outlined in the  government’s
thatinitiatives:
      will require      a multi-pronged
                  New Growth                                       especially
                                  Path and the Industrial Policy and               industry, being a major cause
                                                                        Action Plan.                                          Change (“COP 17”), both of which have
approach       in order to achieve a resilient                     of greenhouse gases.                                       and still will significantly affect South
    Energy efficiency and savings should be a strategic priority for companies, particularly
economy,                                                                                                                      African businesses and the South African
    given therealising        the Africa
                 fact that South    opportunity
                                          is moving to higher, cost-reflective electricity pricing.
presented by the development of a green Importantly, climate change can be                                                    economy.
    To realise this, the IDC, in collaboration with the German Development Bank (Kfw) has
economy.        It is against this background                      addressed only through coordinated joint
    launched a Green Energy Efficiency Fund (GEEF), specifically aimed at providing
thatincreased
      the IDCaccess has set                                                                                                   At the outset, we should commend
                           to energy efficiency and renewable action.
                                aside    R22,4      –billion,                 Andallthis
                                                                   energy across             is where
                                                                                         industry        the National
                                                                                                   sectors.
the largest allocation of the IDC funds to                         Business Initiative is so important, by                    South African businesses for making a
date,   towards the development of the                             presenting a forum where business can
    The IDC is proud to be associated with the Carbon Disclosure Project and is looking                                       commitment towards reducing and more
    forward to increased participation in this regard.
green economy.                                                     share information and success stories.                     effectively monitoring and disclosing their
                                                                                                                              carbon emissions, which trend is clearly
The green economy is one of the priority                       The South African Post Office reduced                          illustrated in the 2011 Carbon Disclosure
sectors outlined in the government’s key                       its carbon emissions by 6.3% over                              Project (“CDP”) report. In the wake of
initiatives: New Growth Path and the                           the past two financial years. This, it                         COP 17, business should continue such
Industrial Policy and Action Plan.                             achieved by switching to vehicles with                         enthusiasm for negating the effects of
                                                               lower emissions, rationalising transport                       climate change and reducing carbon
Energy efficiency and savings should                           routes, switching to low-energy light                          emissions.
be a strategic priority for companies,                         bulbs in all its facilities, and introducing
particularly given the fact that South                         a programme to reduce paper use and                            It is imperative for business to place
Africa is moving to higher, cost-reflective                    recycle the paper we do use.                                   increased focus on reducing carbon
electricity pricing.                                                                                                          emissions, not only to avoid tax and
                                                               Moreover, the company offset 6.5% of its                       other forms of liability, but also to
To realise this, the IDC, in collaboration                     carbon footprint by planting 1 107 trees                       remain competitive and participate in
with the German Development Bank                               at schools during the past financial year.                     the benefits of South Africa’s transition
(Kfw) has launched a Green Energy                                                                                             to a low carbon economy. Although the
Efficiency Fund (GEEF), specifically aimed                     These steps are simple and easy to                             implementation of such practices will
at providing increased access to energy                        implement and in all cases where less                          require massive restructuring and will
efficiency and renewable energy across                         resources were used, costs were saved.                         be costly, it is predicted that such costs
all industry sectors.                                                                                                         will far outweigh the costs of delay or
                                                               As issues of climate change become                             inaction.
The IDC is proud to be associated with                         more important, environmental policies
the Carbon Disclosure Project and is                           may become a vital component of                                Webber Wentzel’s Climate Change and
looking forward to increased participation                     continuing business. It is encouraging to                      Carbon Trading Unit continues to lead
in this regard.                                                see more companies joining the NBI and                         the market throughout these significant
                                                               the SA Post Office is therefore proud to                       changes in the industry and remains
                                                               be a state-owned entity that executes                          committed to support businesses in
                                                               the targets set by government’s mandate                        their journey towards a climate-resilient
                                                               on the environment.                                            and lower carbon economy and society.
                                                                                                                              We commend the CDP for its influence
                                                                                                                              in achieving this important goal and are
                                                                                                                              proud once again to sponsor the CDP.
MG Qhena

CEO, IDC

                                                               Nick Buick
                                                               Acting CEO, SA Post Office
                                                                                                                              Johann Scholtz
                                                                                                                              Partner and Head, Webber Wentzel
                                                                                                                              Climate Change and Carbon Trading
                                                                                                                              Practice Group

                                                                                                                                                                           9
Carbon Disclosure Project 2011

     Executive summary

Introduction                               African companies are recognising        ƒƒ Fewer concerns remain
                                           and responding to the strategic risks       regarding the poor response
Since 2000, the Carbon Disclosure          and opportunities that climate change       rate of certain sectors.
Project (CDP) has, on behalf of its        presents. While it is very encouraging      Certain sub-sectors continue to
signatory investors, challenged the        that both performance and disclosure        have fairly low response rates,
world’s largest companies to measure       has improved across most of the             including most noticeably, Real
and report their carbon emissions,         indicators, more remains to be done         Estate (only three out of nine
integrating the long-term value and        to adequately address the nature and        companies responded, although
cost of climate change into their          scale of the challenge.                     this represents an improvement
assessment of the financial health and                                                 on the two companies that
future prospects of their business.        The CDP questionnaire                       responded in 2010); and Hotels
                                                                                       & Resorts (the single company
This year, CDP – backed by 551             An underlying objective of the              in the sample did not respond
institutional investors holding US$71      CDP is to review and assess the             for the fifth consecutive year).
trillion in assets under management        disclosure and action of companies          Previous poorly responding
– sent questionnaires to the world’s       and sectors against what is seen            sectors have improved, notably
largest companies asking them to           as a best practice response to the          in the Food Products sub-sector
measure and report what climate            challenges of climate change. The CDP       where all companies responded.
change means for their business.           questionnaire focuses on three key          All companies in the Industrials
These responses provide a valuable         areas: climate change management,           and IT & Telecoms sectors
insight into how companies are             risks and opportunity identification,       responded.
preparing for an increasingly resource     and GHG emissions accounting and
constrained world, and show a shift in     performance. These questions provide     Improved levels of disclosure is
company strategy to prepare better for     companies with an opportunity to         evident on most key issues
a low-carbon economy and act on the        identify the strengths and current
business opportunities.                    challenges in their management of        ƒƒ The level of disclosure on
                                           climate change issues.                      most issues has improved
South Africa has signalled its intention                                               since 2009, including most
to follow a low-carbon growth path         CDP 2011 Highlights                         significantly in the identification
and to play a leadership role among                                                    of risks and opportunities.
developing countries. The country          Improved response rate in South             Disclosure levels have improved
is hosting the 17th Conference of          Africa                                      across all key issues – namely risks
the Parties (COP17) to the United                                                      and opportunities, GHG emissions,
                                           ƒƒ South Africa’s fifth CDP
Nations Framework Convention on                                                        GHG reduction targets and
                                              information request generated
Climate Change (UNFCCC) and the                                                        activities, and climate governance
                                              a response rate of 83%
7th Session of the Conference of the                                                   practices. The identification
                                              (as compared with last year’s
Parties serving as the meeting of the                                                  of risks and opportunities has
                                              74%), ranking the South African
parties (CMP7) to the Kyoto Protocol,                                                  shown the greatest year-on-year
                                              response rate as the second
to negotiate global climate change                                                     improvement.
                                              highest CDP response rate
policy. The national government               internationally. This suggests        ƒƒ 99% of responding companies
is developing a climate change                that, notwithstanding short-term         disclosed their GHG emissions.
response strategy, and a carbon tax           concerns and the pressures               This is an increase on last year’s
is being mooted to help achieve the           associated with the economic             94% disclosure rate (87% in
country’s mitigation objectives. South        downturn, climate change                 2009), and is accompanied by
African business is also arguably             remains high on the South African        an increase in the disclosure of
demonstrating leadership by raising           corporate agenda.                        Scope 3 emissions across most
the profile of the importance of climate
                                                                                       sectors, increased reporting of
change action.                             ƒƒ General improvement in                   emissions intensity data and
                                              response rate across most                more transparency on climate
This report, prepared by Incite               sectors. The response rates of           change issues in annual and/or
Sustainability on behalf of the               all sectors improved except for          sustainability reports.
National Business Initiative (NBI),           Energy & Materials (due to new
analyses the responses from the 83            companies entering the sample for     ƒƒ The number of companies
of the 100 largest corporations on            the first time). Consumer Staples        verifying their emissions has
the South African JSE that voluntarily        and IT & Telecoms shows the              remained static. This year, 30
participated in CDP 2011. It provides         greatest level of improvement.           companies (38% of respondents)
insight into how these major South                                                     have verified or are in the process
10
Executive Summary

    of verifying elements of their Scope      ƒƒ Limited evidence of climate             South Africa’s industrial GHG
    1 or 2 emissions; this compares              adaptation strategies. It               emissions continue to be
    with 29 (41%) companies in 2010.             appears that local companies            dominated by a few companies
                                                 are insufficiently advanced in
                                                                                         ƒƒ A few carbon-intensive
ƒƒ There is growing awareness                    their adaptation initiatives; while
                                                                                            companies continue to
   among South African                           this may be partly a result of the
                                                                                            dominate South Africa’s direct
   companies of the risks and                    nature of the CDP questionnaire,
                                                                                            (‘Scope 1’) GHG emissions.
   opportunities of climate                      which focuses predominantly on
                                                                                            South Africa’s total emissions
   change, although often at                     mitigation activities, there is scope
                                                                                            level from all sources has been
   a general level. While most                   for a more structured focus on
                                                                                            estimated at approximately 510
   responding companies recognise                adaptation opportunities. Most
                                                                                            million metric tons of CO2e.1 For the
   that climate change will entail               companies that have implemented
                                                                                            78 JSE companies that reported
   potentially significant regulatory,           adaptation initiatives are in the
                                                                                            their emissions – including those
   physical and other risks and                  Energy & Materials and Financials
                                                                                            companies whose emissions have
   opportunities for their operations,           sectors.
                                                                                            not been made public – the total
   few companies show evidence of
                                                                                            Scope 1 emissions (i.e. excluding
   being rigorous in quantifying the          Increased evidence of partnerships            emissions associated with electricity
   potential financial implications of        and climate change governance                 usage) for the South African
   climate change. Some questions             practices                                     operations is 100.4 million metric
   remain regarding the extent to
                                              ƒƒ Climate change issues appear               tons of CO2e. In terms of direct
   which companies are responding
                                                 to be increasingly integrated              local emissions, the data highlights
   at a sufficiently strategic level to the
                                                 in companies’ governance                   the predominant contribution of
   risks and opportunities that they
                                                 activities. Sixty-eight companies          Sasol (with reported annual Scope
   identify.
                                                 (90% of respondents) report                1 emissions of 61.2 million metric
ƒƒ Increase in number of                         having a board committee or                tons of CO2e), followed by Arcelor
   companies with GHG                            executive body with responsibility         Mittal SA (11.9 million metric tons),
   emissions reduction targets.                  for climate change; forty                  Pretoria Portland Cement Co (4.8
   This year, 40 companies                       companies (51% of responding               million metric tons), BHP Billiton
   (including almost all of the high             companies) report that they have           (3.1 million metric tons), Evraz
   emitting companies) reported                  made provision for monetary                Highveld Steel and Vanadium (2.8
   having emissions reduction                    management performance                     million metric tons), Anglo American
   targets; this compares with 31                incentives relating to the                 (2.7 million metric tons), Sappi
   companies in 2010 and 20 in                   achievement of climate change              (2.7 million metric tons), Harmony
   2009. These targets comprise                  goals and objectives. While 77%            Gold Mining Co. (1.5 million metric
   a mix of both absolute and                    of responding companies report             tons), Mondi Group (1.0 million
   intensity-based reduction targets,            that climate change risks and              metric tons) and Gold Fields (1.0
   with significantly varying levels of          opportunities are integrated into          million metric tons). Placing this in
   ambition and time frame.                      their overall business strategy, only      context, Eskom’s publicly reported
                                                 14% clearly indicate that climate          calculated emissions of carbon
ƒƒ There has once again been                     change has influenced their short-         dioxide for the year ending March
   an increase in disclosure on                  term and long-term strategy.               2011, is 230.3 million metric tons2,
   emissions reduction initiatives,                                                         representing 45% of South Africa’s
   with the greatest focus being                                                            total emissions. All companies in
                                              ƒƒ Continuing evidence of                     the JSE 100 together with Eskom
   on energy efficiency initiatives.             business partnerships. While it
   Most energy efficiency initiatives                                                       account for 65% of the country’s
                                                 is encouraging to see evidence of          emissions.
   relate to processes and building              South African businesses entering
   services. Behavioural change                  into partnerships – with peers,
   is the second most common                                                             There are some encouraging
                                                 critics and competitors – there is      signs regarding efforts to reduce
   approach to reducing emissions.               nevertheless seen to be scope
   Reported levels of investment in                                                      emissions and promote adaptation
                                                 for further developments in this        within companies’ spheres of
   emission reductions activities have           area along the lines of some of the
   increased from R 9.5 billion to                                                       influence. While it is important to
                                                 progressive partnership initiatives     track the performance of the larger
   R 17.9 billion. This increase                 that have been pursued for
   is likely due to both increased               example in Europe.                      1   Witi, J. 2011. Department of Environmental Affairs.
   investment as well as increased                                                           Personal communication, 26 September 2011.

   disclosure of investment figures.                                                     2   Eskom Integrated Report 2011: Partnering for a
                                                                                             Sustainable Future.
                                                                                                                                                   11
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