Carbon Disclosure Project merges with Forest Footprint Disclosure Project

Yesterday, Responsible Investor reported that the Carbon Disclosure Project (CDP) is merging with the Forest Footprint Disclosure Project (FFD) in the hopes of creating a more comprehensive disclosure system for natural resources. This merge should happen over the next 2 years, however it is unusual in the not-for-profit sector. The FFD, which was launched in 2009, is a disclosure system for deforestation. In 2011 the group sent out requests to 360 large companies worldwide on behalf of 74 financial institutions.

CDP Chief Executive Paul Simpson said: “Bringing forests, which are critically linked to both climate and water security, into the CDP system will enable companies and investors to rely on one source of primary data for this set of interrelated issues.”

This merger announcement comes just before the Rio+20 summit in Brazil, which is expected to see a series of announcements. The merge has already begun a transition process, and the CDP will begin managing the FFD’s operations from February 2013.

Here at BrownFlynn we agree the merge is a good idea. It will help to streamline voluntary disclosure efforts for both the CDP and responding companies. Further, this merge is evidence that voluntary corporate disclosure and accounting for ecosystems is growing in significance.

What are your thoughts on this merge? Do you think it’s a good idea? Does it make sense? Let us know!

The Rise of the Biobased Economy

An interesting blog post by Jacquie Ottman and Mark Eisen – here is an excerpt:

Our economy is slowly but surely heeding the signal that carbon is the new watchword. During the past few years, a steady stream of so-called “biobased” products have been making their way to retail shelves — compostable dinnerware made from corn, plant-based laundry detergents, and bamboo flooring among them. Coke and Pepsi are now competing to be first to market with a soft drink bottle derived entirely from sugarcane or other plant materials.

The emerging biobased economy even has its own label — USDA Certified Biobased, pictured here. It’s part of a federal BioPreferred program designed to help grow “green” jobs, stimulate the rural economy, promote energy independence and prompt a shift to renewable resources from petroleum, helping to manage the carbon cycle.

Launched in February 2011, the label needs a little introduction since the term “biobased”, although familiar sounding, represents more than meets the eye. We advised the USDA on strategic marketing considerations related to the launch of the USDA Certified Biobased label. Here’s a primer — and why you need to be thinking about forming your own biobased strategy during 2012.

To read the full blog post please click here.

The Carbon Disclosure Project

Bill Clinton stated once that, “The Carbon Disclosure Project is vital, and we’ve got to get everybody to participate in it.”

The Carbon Disclosure Project (CDP) is an international nonprofit that holds the largest database of corporate climate change information in the world.

2,500 organizations from 60 countries measure and report their greenhouse gas emissions and climate change strategies through CDP, which can help them set reduction targets and make improvements.

For reporting companies, it could be a lot like going to the gym; people measure their performance and improvement with the encouragement of having others around them doing the same.

The CDP uses the aggregate climate change information to develop international carbon reporting standards and to help influence decision-making in the financial and governmental sectors.  They also make the data publicly available.

Despite its name, however, the Carbon Disclosure Project isn’t only about corporate carbon emissions.  It also has programs for water disclosure, supply chains, and a new pilot for city reporting.

With the help of the CDP, investors, corporations, policymakers, public sector organizations, government bodies, academics and the public can work together to create an economy that doesn’t pollute our air and fresh water.

Webcast: Walmart’s Carbon Target for Supply Chain

Watch this webcast about Walmart’s landmark decision to drive down carbon emissions throughout their supply chain:

Walmart announces GHG reduction goal

Last week Walmart announced it will eliminate 20 million metric tons of GHG emissions from its global supply chain by the end of 2015. This goal represents one and a half times the company’s estimated global carbon footprint growth over the next five years and is the equivalent of taking more than 3.8 million cars off the road for a year, according to a press release issued by Walmart and the Environmental Defense Fund (EDF).

Walmart worked with EDF to develop an approach that looks at their supply chain on a global scale. Other advisors have signed on to identify projects, track and measure reductions, engage suppliers and ensure proper procedures are followed for each GHG claim. The program has three main components: Selection, Action and Assessment. For the Selection component, Walmart will focus on product categories with the highest embedded carbon. For the Action component, products must reduce GHGs in either the sourcing or end-of-life disposal, Walmart must demonstrate it had direct influence on the reduction, and show how the reduction wouldn’t have occurred without Walmart’s participation. For the Assessment component, suppliers and Walmart will jointly account for the reductions, and ClearCarbon will perform a quality assurance review of those claims to ensure the process is correct. PricewaterhouseCoopers will then assess under consulting standards to make sure the process is correct.

This announcement by Walmart is a clear indication that suppliers need to act fast in order to compete in their supply chain.

Deutsche Bank Invests in Sustainability

Kevin Parker, Global Head of Deutsche Asset Management, talks about the role investors are playing in the creation of a lower-carbon economy.

“Carbon intensive companies have underperformed companies that have lower carbon intensity.” – Kevin Parker