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A List: CDP Climate Performance Leadership Index (CPLI)

Product Type: Index Owner Reviewed: 2015-06-12

Issue Coverage: Environmental

Primary ESG Audience: Investors

Number of Companies: 187

The A List reveals which companies around the world are doing the most to combat climate change.

URL for More Information: https://www.cdp.net/CDPResults/CDP-climate-performance-leadership-index-2014.pdf


Owner

CDP

Primary Research Organization

CDP

Additional Research Providers

RepRisk

Part I: Product Attributes

Evaluation / Selection Criteria

An "A band" company is included in the A list and typically has a performance score of greater than 85. An "A" band company must meet the following criteria:
1. The company must have responded to CDP's annual climate change questionnaire via CDP's online responses system (ORS) by the response deadline, made its response publicly available and received a Climate Disclosure Score of 50 or more;
2. The company must have scored maximum performance points on question CC12.1a (absolute emissions performance in Scopes 1 and 2);
3. The company must have disclosed gross global Scope 1 and Scope 2 figures and scored maximum performance points for verification/assurance of Scope 1 and Scope 2 (questions CC8.6a or CC8.6b if appropriate, and CC8.7a); and
4. For all high-scoring responses, CDP reviews a company's environmental and sustainability reputation in external resources before determining whether an "A" performance band is achieved. CDP reserves the right to exclude a company from an "A" band if there is anything in its response, or any other publicly available information, that calls into question its suitability for inclusion or the transparency of the information provided to CDP.

If a company does not satisfy one or more of the four criteria above yet achieves enough performance points for an "A" band, they will be awarded an "A-". The affected company will be informed of the decision.

Market Cap Coverage

Large Cap ($10 Billion +)
Mid Cap ($2 Billion to $10 Billion)

Geographic Coverage

Global

Underlying Universe

CDP invited 6959 companies to respond to its annual climate change questionnaire in 2014. Another 247 companies responded to the questionnaire without a direct invitation from CDP. The constituents of the invited sample are of interest to signatory investors. Where possible, the sample is based on an index tracked by investors. If it is not possible to base the sample on an index, sample constituents are selected using objective criteria, such as market capitalization; companies are not excluded due to being subsidiaries, belonging to certain sectors (unless the sample is explicitly targeted at certain sectors only) or subjective criteria, such as the likelihood of a company responding. In addition, CDP invites some companies to respond because their business activity is particularly impactful on the environment. Invited samples are fixed before February 1 to provide a stable dataset, and to give a fair and equal chance to all companies to respond to an official request from their investors.

Rating Scale

Performance is grouped in six bands: A, A-, B, C, D and E. A is the best band, and E is the lowest scoring band.

External Platform

Bloomberg terminals, Google Finance and Deutsche Boerse’s website

Part III: Methodology

Evaluation Update Frequency

- Annual (November)

Controversies/Incidents

- Not Included

Methodological Basis

- Disclosure-based
- Performance-based

Methodological Method

- Hybrid

Methodology Update Frequency

- Annual

Data Gaps

- Exclude company for missing data
- Penalize company for missing data

Data Sources

- Company Disclosure
- Company Direct Contact
- CSO/NGO Disclosure
- Media
- ESG Data Provider

Part II: Issues & Indicators

Total Number of ESG Issues Covered : 1

Environmental Issues: Climate change

Total Number of ESG Indicators Covered : 86

Environmental Indicators: See https://www.cdp.net/Documents/Guidance/2015/CDP-climate-change-scoring-methodology.pdf

Part IV: Disclosure

Client Disclosure

- Issues - Complete List
- Indicators - Complete List
- Ratings Methodology
- Ratings Model
- Data Sources

Public Disclosure

- Issues - Complete List
- Indicators - Complete List
- Ratings Methodology
- Ratings Model
- Data Sources
- Profile/Rating
- Sector Benchmarking Report (with company evalution)

Rated Company Disclosure

- Issues - Complete List at no charge
- Indicators - Complete List at no charge
- Ratings Methodology no charge
- Ratings Model at no charge
- Data Sources at no charge
- Sector Benchmarking Report (with company evaluations) at no charge
- All Profiles/Ratings at no charge

Rated Company Interaction

- Rater responds to requests for assistance on survey/questionnaire
- Rater offers opportunity to review and comment on rating/profile before it's finalized
- Rater has protocol/policy to address errors or grievances
- https://www.cdp.net/en-US/Pages/guidance-climate-change.aspx#scoring
- Rater provides free feedback to improve/enhance score and performance
- Rater offers advisory services for a fee

Survey Use: Yes

Survey Cycle Date: February

Survey Cycle

CDP sends out its annual information request to companies worldwide on 1 February, after which the online response system is open for data input from disclosing companies. Corporations should submit their CDP response by the June 30 deadline. 

Response Time: 5 months