1. 2011 Consultation Webinars Name of presentation Name of presenter 15 September 2010 Draft 2011 Investor CDP Consultation Risks & Opportunities Michelle Cox

2. 15 September 2010 Draft 2011 Investor CDP Consultation Webinar overview Introduction to the consultation process Strategic principles for 2011 Risks & opportunities: Key issues from 2010 Main changes proposed Open for discussion

3. 15 September 2010 Draft 2011 Investor CDP Consultation Introduction to the consultation process Purpose of the draft is to stimulate discussion CDP Mission “To collect and distribute high quality information that motivates investors, corporations and governments to take action to prevent dangerous climate change.” Feedback from 2010 (ORS, CDP, Companies, investors) Review developments in carbon accounting Prepare draft

4. 15 September 2010 Draft 2011 Investor CDP Consultation Strategic principles for 2011 For cross comparison & decision making To support investors & companies To reduce reporting burden To facilitate analysis StructureSimplicity QualityRelevance

5. 15 September 2010 Draft 2011 Investor CDP Consultation Risks & Opportunities: Key issues Cross comparison between responses is difficult due to: Dual format in 2010 Lack of structure in characterising the risk Repetition possible between different risk types and with other aspects of the questionnaire Long section creating reporting burden for companies Alignment with other reporting requirements Difficulties with significance

6. 15 September 2010 Draft 2011 Investor CDP Consultation Risks & Opportunities: Main changes 2010 Identify the risk: Risk Region/Country Timescale Comment How do they affect your business and value chain Are there financial implications Management methods and costs If no risk, why not 2011 Identify the risk: Risk driver Description Potential impact Timeframe Direct/Indirect Likelihood Magnitude Management methods and costs If no risk, why not

7. 15 September 2010 Draft 2011 Investor CDP Consultation Risks & Opportunities: Main changes Increased structure in line with strategic principles Key issue is the way in which the risk is described Risk driver – options the same as 2010 ‘risk’ category but with some clarifications Description- allowing further information Potential impact – provides options for describing impacts on your business Timeframe – as for 2010 Direct/Indirect – allows the user to identify significant supply chain and client based risk Likelihood and Magnitude: standard terms for describing risk

8. 15 September 2010 Draft 2011 Investor CDP Consultation Risks & Opportunities: Potential impact Impact options for risk Loss of revenue stream Loss of investment flows Reduced market share Increased operational cost Reduced demand for products/services Reduced profit share Reduction and/or disruption in production capacity Reduction in investment returns Reduced stock price Reduced competitiveness Higher cost of capital Reduced innovation Wider social disadvantages Other

9. 15 September 2010 Draft 2011 Investor CDP Consultation Risks & Opportunities: Likelihood & Magnitude Likelihood: how likely is it that your business will be impacted by a particular risk – how exposed are you? Magnitude: if the risk occurs, how big is the impact on your business likely to be? These measures can be used in a risk matrix as part of an overall risk strategy Only risks (or opportunities) where the likelihood and magnitude are moderately high need to be reported Helps to establish significance and aligns with materiality in US reporting

10. 15 September 2010 Draft 2011 Investor CDP Consultation Open for discussion...