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Workshop 12 - Carbon Disclosure and Water Disclosure, Platforms For Change

Location

Bamboo Room 1, Four Seasons Hotel Tokyo at Chinzan-so, Tokyo, Japan

Time

09:00 - 10:45

Description

Workshop convened in cooperation with the Association for Sustainable and Responsible Investment in online no prescription (ASrIA)

Speakers

Moderator

David St. Maur Sheil (People's Republic of China)
Joint Executive Director - ASrIA - Association for Sustainable and Responsible Investment in online no prescription

Speaker 1

Megumu Murakami (Japan)
Senior Consultant, Office for Green Growth & Business Integrity - The Japan Research Institute, Ltd.

Title
Purpose and Use of Carbon Disclosure and Water Disclosure
Description
Pressure to disclose carbon or water information by the financial world is not yet strong enough to most companies. Financial institutions should notice the importance of this information not only in terms of risk assessment, but also for their business chance. A probable tool for this approach is environmental rating.
Speaker 2

Lucy Carmody (Singapore)
Executive Director - Responsible Research Pte Ltd.

Title
The Challenge of Water Disclosure in China
Speaker 3

Michiyo Morisawa (Japan)
Director Japan - Carbon Disclosure Project Japan

Title
Findings and Results from the CDP Japan 2009 Report
Description
CDP provides data as E data of ESG to investors, senior corporate managers, policymakers, media and academics. The companies’ responses show their action. Investors and other stakeholders need to build up the necessary comparable datasets in order to monitor and analyze changes. The CDP process demonstrates that corporations can lead the way in taking action that can be MRV.

In CDP 2009, Japanese companies responded with the details of their emissions. Looking at country-by-country emissions, emissions reported by Japanese companies in China accounted for the highest portion, and second to China is North America. CDP encouraged companies to measure and report their emissions country-by- country basis. From this viewpoint it is important to avoid carbon leakage. Legally, companies in Japan need to measure and report the emissions on the Energy Saving Law and the Japanese Global Warming Countermeasures Promotion Law, but these are only domestic emissions. Furthermore, companies have been changing their business model, and therefore it is important to encourage them to measure and report the emission of their supply chain. Companies could even decrease emission volumes and they might outsource emission intensive process to suppliers. CDP has required companies to disclose their data in order to provide investors with an accurate portrayal of their carbon portfolio.

Scope 3 emissions are indirect emissions occurring as a result of companies’ businesses that are generated at a source owned or controlled by other entities. In CDP 2009, companies were asked about the following four Scope 3; (1) emissions from business travel, (2) emissions from external distribution and logistics, (3) emissions from use and disposal of the products and services, and (4) emissions from a supply-chain. The highest response rate is 48% for emissions from external distribution and logistics among these four, whilst 24% response rate for emissions from employee business travel, 25% response rate for emissions from use and disposal of the products and services, and 18% response rate for emissions from a supply-chain. The high response rate for emissions from external distribution and logistics are due to this legal requirement. Under Japanese law, those who consign freight transports with specific volume or more are required to report emissions.

There were many companies whose emissions reported to CDP were significantly higher than emissions reported domestically. This implies that companies measured emissions from external distribution and logistics both domestically and internationally. These companies can potentially adapt to more stringent domestic and international disclosing requirements, being able to take the lead for future provisions.

The above are examples from CDP Japan 2009 findings. There are more findings.

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