CDP 2010 Sector Report Consumer Discretionary

8/8/2019 CDP 2010 Sector Report Consumer Discretionary

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Consumer Discretionary sector report

Covering Global 500, S&P 500and FTSE 350 respondents

IntroductionIn the 10 years since the launch ofthe Carbon Disclosure Project (CDP),the quality and quantity of reportingon climate change have increaseddramatically. This year, CDPbacked by534 institutional investors representingmore than US$64 trillion of funds under

managementsent questionnaires tomore than 4,700 of the worlds largestcorporations requesting information ongreenhouse gas (GHG) emissions, thesignificant risks and opportunities relatedto climate change, and the actionscompanies are taking to manage thoserisks and opportunities. The results arepublished in more than 20 geographiesaround the world and are freely availableat www.cdproject.net. Individualcompany responses to CDP can also beviewed on the same Web site.

This sector report, prepared byPricewaterhouseCoopers LLP (PwC),1summarizes responses to the 2010Carbon Disclosure Project InformationRequest from Consumer Discretionary2companies in the FTSE Global EquityIndex Series (Global 500), Standard &Poors 500 Index (S&P 500), and theFTSE 350 Index (FTSE 350).

Representing one of the most diversesectors, Consumer Discretionaryconsists of a wide variety of industriesthat provide nonessential goods

and services for consumers. Thisyear, the respondents are primarilyfrom the following industries: 10

Automobiles respondents (9%);20 Hotels, Restaurants & Leisurerespondents (18%); 15 HouseholdDurables respondents (13%); 25 Mediarespondents (22%); and 18 SpecialtyRetail (16%) respondents. Despite theincrease in sector size this year from156 to 166 companies, the overallresponse rate increased only marginally,from 66% (103) to 68% (113).

Figure A: Respondents by industry

1 Please see the Important Notice on the back cover o this report regarding its content and use.

2 Responses to CDP 2010 are grouped according to the Global Industry Classiication Standard (GICS).

3 Based on market capitalization available rom Thomson Reuters as o May 15, 2010.

4 Percentage o respondents that reported emissions and total disclosed emissions or the sector. Scopes 1, 2 and 3 emissionsare terms used under the GHG Protocol. For a ull description see: GHG Protocol: A Corporate Accounting and ReportingStandard, available at www.ghgprotocol.org/iles/ghg-protocol-revised.pd.

5 Gross Scope 2 emissions represent the sum o all grid averages, not adjusted or contractual arrangements.

Response rate for Consumer Discretionary overall: 68% (113 of 166)

Household Durables

11% (18)

12% (20) 9% (15)

6% (10)

15% (25)

15% (25)

32% (53)

Automobiles

Hotels, Restaurants & Leisure

Media

Did not respond

Specialty Retail

Other

Figure B: Consumer Discretionary emissions disclosure4(t CO2-e)

(85% disclosed)

Scope 1 emissions 45,468,267

(85% disclosed)

Scope 2 emissions5 58,051,552

(53% disclosed)

Scope 3 emissions 259,552,148

Largest non-respondents3 include: Amazon.com, Comcast, and DIRECTV Group


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Views on and responses to climatechange vary widely based on theunique characteristics of the underlying

industry. Some industries, such asHotels, Restaurants & Leisure andSpecialty Retail, view climate-relatedrisks as longer-term risks; others, suchas those in the Household Durables,Leisure (e.g., travel companies), and

Automobiles industries already aresubject to various air pollution andproduct efficiencies standards globally.While those companies report increasedcosts for compliance, most also reportthat those regulations are also drivinginnovations as they seek to provideincreasingly low-carbon or energy-efficient products to meet increasingregulatory standards.

Despite all of the varying views, allConsumer Discretionary companiesare generally more susceptible thanare other sectors to branding concernsand changing consumer preferences.Consumer Discretionary respondentsconsistently report that an increasinglyeducated consumer is leading toincreasing reputational risks andpressure to provide ecofriendly productsat affordable prices. Respondentsreveal the steps they are beginningto take to enhance their images,including via implementation of variousinitiatives to reduce their emissions andmaintaining active communication withtheir customers and investors so as tohighlight their climate change strategies.

Disclosure trends in theConsumer Discretionary

sectorEmissions disclosure continues toimprove in 2010.There is a notablerise in the number of ConsumerDiscretionary respondents disclosingemissions. Eighty-six percent (90)of respondents disclosed Scope 1emissions in 2010, up from 81% (83)in 2009. Scope 2 emissions disclosureincreased three points to 85% (89). Asconsumers continue to place increasingpressure on companies to demonstrateresponsible carbon management, it

is likely more companies will measuretheir emissions. Some respondents,such as News Corporation, indicatethat understanding their own carbonfootprints is key to demonstratingleadership and responsibility.

Disclosure of Scope 3 remains relativelyflat in 2010, at 52% (55), compared with53% (54) in 2009. Ninety-four percent othe total disclosed Scope 3 emissionsinvolve Sold Goods & Services, of whichthe majority are from companies in the

Automobiles and Household Durables

(e.g., home appliance and electronics)industries. However, it can be expectedthat Scope 3 emissions reported bythese industries will continue to growas ability to measure them increases,because fewer than 10 companiesdisclosed 99% of the Sold Goods &Services total emissions.

2

Carbon Disclosure Project

Over time, it is alsopossible that guestpreerences and

expectations couldshit as a result oclimate changedriving a need or newmerchandise oeringsand base expectations oreputational leadership inthe retail industry.

Target

Toyota MotorCorporation hasormulated the FourthToyota Environmental

Action Plan... in order torealize the corporateimage that Toyota seeksto pursue a leaderand driving orce inglobal regeneration by

implementing the mostadvanced environmentaltechnologies.

Toyota

All Carbon DisclosureProject reportsare available atwww.cdproject.net

Figure C: Consumer Discretionary carbon disclosure leaders

Company name

News Corporation

TJX Companies

Panasonic

TUI Travel*

Kingisher

Johnson Controls

Carbon disclosure score

94

94

90

90

87

87

Carbon performance score

A

C

A

B

A

A

*Company has been in at least one o the Global 500, the S&P 500, or the FTSE 350 CDLIs or the past three consecutive years.


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3

Consumer Discretionary Sector Repor

Some companies note their intentto more actively assess their supplychain emissions, such as Ford Motor,which is road testing the draft Scope 3

standard

6

as well as working with its keysuppliers through CDPs Supply ChainProgram.

Fords contributions will be to requestdata from selected Tier 1 production

suppliers, representing close to30% of Fords $65 billion in annual

procurement spending, and to providefeedback on practical aspects of usingthe protocol. Ford has also joined theCarbon Disclosure Projects SupplyChain initiative. Through this effort Ford

is working with selected suppliers to

gather qualitative as well as quantitativeinformation about the suppliers climaterisks and emissions and how they aremanaging them.Ford Motor

The Consumer Discretionary sectorcontinues to face an increasingnumber of product efficiency andemissions standards globally. Sixty-two percent (65) of respondents in theConsumer Discretionary sector identifyregulatory risks as the most significantarea of risk they are facing today. The

highest proportions of respondents arereporting from the Automobiles andthe Auto Components industries eachat 100% (9 and 4, respectively) andHousehold Durables at 86% (12).

These respondents currently are subjectto regulatory risks globally, includingfuel efficiency and emissions standardsfor Automobile companies such as the

European Unions (EUs) Regulation443/2009;7 product efficiency standardson home appliances, electronics, andother household items such as JapansEnergy Conservation Law;8 home-building efficiency standards such as theUK Code for Sustainable Homes;9 andvarious pollution standards for thosecompanies in the Hotels, Restaurants& Leisure industry that providetransportation services such as cruisesand air travel.

Many Consumer Discretionaryrespondents expect thatenvironmental performance willbecome increasingly important totheir overall reputation. Fifty-sevenpercent (60) of Consumer Discretionaryrespondents report other types of risks,of which the majority have to do withchanging consumer preferences andreputational risks. Most report thatreputational risks and market demandswill place significant pressures on theproducts they deliver or the servicesthey provide as consumers becomeincreasingly educated about climatechange and as regulations increase.

6 For urther inormation on the World Resources Institute/World Business Council or Sustainable DevelopmentsScope 3 Greenhouse Gas Reporting Protocol,see www.ghghprotocol.org.

7 See http://ec.europa.eu/environment/air/transport/co2/co2_home.htm.

8 See http://www.japans.org/en/pages/027112.html.

9 See http://www.communities.gov.uk/publications/planningandbuilding/codeguide.

10 The counts and percentages reported in this chart arebased on total population or the Consumer Discretionarysector, or 166 invited companies. All other trends citedin the analysis are based on total respondents who werescored and analyzed.

Figure D: Year-over-year disclosure levels for the Consumer

Discretionary sector10

0% 20% 30%10% 40% 50% 60% 70%

55% (85)

55% (91)

Disclose GHG emissions

35% (55)

32% (53)

Disclose emissions reduction targets

28% (44)

22% (37)

Verify emissions

47% (73)

49% (82)

Board or executive-level oversight

Responded

66% (103)

67% (112)

Publicly available

46% (71)

47% (78)

Report on GHG emissions in annual corporate reporting

55% (86)

54% (89)

2010 2009


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Sixty-five percent (13) ofrespondents in the Hotel,Restaurants & Leisure industryreport they may be increasingly

impacted by physical risks. While thetime scale is reported to be uncertain,many respondents note the potentialimpacts from changing weatherpatterns and reduced water availability.Resorts in many high-tourism locationsare susceptible to extreme weatherevents, in particular increased hurricaneactivity. Restaurant respondentsindicate that changing weather patterns,including droughts and increases intemperature, could have potentialimpacts on crop harvests.

The increased frequency and severityof droughts around the world...will have significant impacts on the

agriculture and food supply chainsDarden depends upon. Losses ofcrops or livestock from extremeweather phenomena, such as stormsor droughts, represent a businesscontinuity risk for Dardens supply chain.In fact, historically, drought has beenone of the largest contributing factors tofood cost increases.Darden Restaurants

2010 Carbon PerformanceScoreIn the 10 years that CDP has monitored

disclosure practices, corporate activityhas advanced to a stage where analysisof performance can aid investors whowant to identify leading companies incarbon management. In 2009, CDPpiloted a performance component in aneffort to respond to investor requests fosuch analysis.

This year all companies with carbondisclosure scores greater than 50receive banded carbon performancescores, with respondents groupedinto one of four categories.11 Carbondisclosure scores lower than 50 do notnecessarily indicate poor performance;rather, they indicate insufficientinformation to evaluate performance.

A listing of companies and their scoresis included in the appendix at the endof this report.

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Figure E: Table of Carbon Performance Score Band A companies in the

Consumer Discretionary sector

Company name

BMW Bayerische Motoren Werke

Johnson Controls

Kingisher

News Corporation

Panasonic

Toyota Motor

Carbon disclosure score

78

87

87

94

90

80

Index

Global 500

Global 500, S&P 500

FTSE 350

Global 500, S&P 500

Global 500

Global 500

Externally there isincreasing pressure bystakeholdersincluding

customers, investors, themedia, and interestedbodies such as NGOs[nongovernmentalorganizations]toprovide transparentevidence o genuinelysustainable carbonmanagement that hasparticular relevanceto brand value. Poor

environmental practicesand/or management bysuppliers could also posereputational and inancialrisks i these were notcareully managed by TUITravels engagement withsuppliers.

TUI Travel

11 For urther inormation on the carbon perormance score methodology, including descriptions o the perormance bands,see www.cdproject.net.


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Figure F: Range of carbon performance scores by key industries

While six companies, listed in FigureE, achieved A scores for performance,the Consumer Discretionary sectorgenerally lags in performance incomparison to most other sectors,

demonstrating below-average resultsfor nearly all performance metrics.Within the sector, there is a broadrange of carbon performance scores;however, the Automobiles and AutoComponents industry consistentlydemonstrate the highest performanceacross all areas, resulting in 3 of the 6companies achieving Band A. This isreflective of the amount of regulationthese companies are already facingas well as the number of actions thecompanies are taking.

While the level of oversight ishigh, most respondents indicatethat climate change priorities arenot integrated into their overallcompanies strategies. Seventy-eight

percent (82) of Consumer Discretionaryrespondents have board oversightor executive-level responsibility fortheir climate change initiatives, with

Automobiles companies having thehighest proportion, at 100% (9).

Figure G: Carbon performance scorecard

Performance scorecard

Strategy

Integration o climate change risks or opportunities

into overall business strategy

Implementation o emissions reduction targets

Governance

Board or executive-level oversight

Monetary incentives

Stakeholder communications

Verifcation o emissions

Disclosure o climate change inormation in

mainstream flings or other external communications

Achievements

Progress toward meeting targets

Signifcant emissions reduction in the past year

All sectors

44%

57%

82%

40%

46%

50%

46%

19%

0 5 10 15 20 25

Insufficient disclosure to evaluate performance Band CBand D Band B Band A

1

1 9 4 19

1723

776

261

1175 1

Household Durables

Media

Specialty Retail


Automobiles

Consumer

Discretionary

39%

50%

78%

38%

32%

50%

40%

22%

...The commitmentrom the board tobecome an increasingly

environmentallyresponsible organisationhas resulted in total andspeciic GHG emissionreductions becominga [key perormanceindicator] and bonus-related driver or certainmembers o sta.

N Brown Group


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The high target of the Japanesegovernment and the rising concernfor climate change in the international

community are predicted to lead toa large expansion in demand for anenergy systems business, includingthe manufacture of new devicesto develop smart grids; of energy-creating devices such as solar cells;of energy-storing devices such as

rechargeable batteries; and of otherproducts and systems. Panasonicsees its energy systems business asa flagship business of the group, withsales targets of 850 billion yen in fiscal2013 and a business scale of morethan 3 trillion yen in fiscal 2019.

Panasonic

Increased consumer awarenessof climate change has positively

affected consumer demand for more-

fuel-efficient vehicles with low CO2emissions, particularly in the US andEU. Currently, such change benefitsHyundai Motor because many of our

models have top-class fuel efficiency.Large fleet buyers in the EU andthe US are also showing increased

preference for more-fuel-efficientmodels as well.

Hyundai Motor

Whirlpool believes in takingresponsibility for the totalenvironmental impact of its products

from their development to disposal.Whirlpool has helped US homeowners reduce their appliance energyconsumption by more than 70%

since the 1970s and continuallyexplores ways to reduce indirectemissions from the amount of energythat appliances consume over their

lifetimes.

Whirlpool

Examples of climate innovation

Innovation and carbonopportunities

Seventy-six percent (80) of

Consumer Discretionaryrespondents identify opportunitiesfrom climate change, with 63% (66)viewing regulation as an opportunitythat can provide competitiveadvantage. Consumer Discretionaryrespondents perceive a high costassociated with regulatory compliance;however, they also indicate thatregulation often drives innovation withinthe products they produce. Especiallyamong those in the Automobilesindustry, many companies recognizenot only the existence of current

regulations such as the US CorporateAverage Fuel Economy standards,12 butmore important, that those regulationswill become increasingly strict in thefuture.13 Automobile companies report

significant investments in the researchand development of technologiesto meet standards in both the nearand longer terms. Hyundai Motor

reports investing 2.2 trillion KRW[USD1.8 billion] in the developmentof environmentally friendly vehicles,

including hybrid electric vehicles,electric vehicles, and hydrogen fuel cellelectric vehicles... [and] 1.4 trillion KRW

[USD1.2 billion] for development of fuel-efficiency-improvement technologiesfor conventional vehicles. In theshorter term, automobile companiesare focused more on improving fuelefficiency and emissions outputthrough improved aerodynamics andinvestments in hybrid technologies;

longer term, these companies reportsignificant investment in developingtechnologies to produce vehiclesultimately with zero emissions througheither electricity, fuel cells, or otherpotential energy sources.

We know that international regulatorystandards and labeling schemes willimmediately become more stringent inthe future, and therefore our internal

product efficiency standards will haveto become more and more stringentParticularly in markets where carbon-dioxide (CO2)-based motor vehicle taxes

apply, Efficient Dynamics gives theBMW Group a considerable competitive

advantage and also benefits customers.In these countries, running costs forBMW Group vehicles are much lowerthan those of comparable models...BMW Bayerische Motoren Werke

12 Corporate Average Fuel Economy standards were enacted in 1975 and aimed to reduce energy consumption via cars and light trucks.

For more inormation, see http://www.nhtsa.gov/uel-economy.

13 The US Corporate Average Fuel Economy standard is set at 27.5 miles per gallon or passenger vehicles currently; however,President Obama has proposed raising this standard to 35.5 miles per gallon by 2016.


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7

Companies in the ConsumerDiscretionary sector are benefitingfrom government incentivesavailable in various countriesaround the world to promote salesof lower-carbon products. In theUS, the Cash for Clunkers programsignificantly boosted sales of fuel-efficient cars.14 In Japan, the Eco-ActionPoints Program enables consumers toaccumulate points toward the purchaseof energy-efficient products; the pointscan then be used for purchasing otherproducts and services.15

Companies in the service- relatedindustries are leveraging theirclimate change initiatives toenhance their reputations. Somelike Carnival Corporation, MarriottInternational, and Starbucksareengaging directly with their customers inorder (1) to highlight the actions theyvetaken to reduce their own emissionsand (2) to educate their customers onhow to reduce their energy usage. Thestronger performance of the sectorin this area is likely due to the higherlevel of importance of reputation andbranding. At the industry group level,77% (10) of Automobiles & AutoComponents companies, 58% (14)of Media companies, and 58% (11)

of Consumer Durables & Apparelcompanies report climate changeinformation in formal externalcommunications. Given the importanceof outreach activities to a companysreputation, it is not surprising that half ofthe sector report active communicationof their climate-related information (52).

14 The Consumer Assistance to Recycle and Save Act o 2009, also known as the Cash or Clunkers program, provided credit or

consumers who traded in old vehicles or the purchase or lease o new vehicles in transactions that occurred rom July 1 toAugust 24, 2009. See www.cars.gov.

15 See http://eco-points.jp/index.html.

Fiat brand, with 127.8grams o CO2 perkilometer, is already inline with the Europeanaverage target. Theresult is that today, Fiat

is a leader in Europe orthe lowest average CO2emissions among thetop sellers.

Fiat

Amidst risingexpectations regardingbusiness action

and accountability,ailure to maintain ourleadership position inaddressing the issueso climate changeand environmentalsustainability couldnegatively impactMarriotts reputation,brand, and competitiveadvantage in the hotel

and lodging industry.

Marriott International


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Setting targets and takingaction on climate change

The proportion of respondents with

emissions reduction targets hasdeclined slightly from 55 (53%) to53 (50%). The industry groups withthe highest proportion of respondentsreporting targets are Automobiles &Components and Media, with 85% (11)

and 58% (14), respectively. Less thanhalf of all other industry groups in theConsumer Discretionary sector reporthaving current emissions reduction

targets in place.Consumer Discretionaryrespondents focus on operationalefficiencies to reduce emissionsand cut costs.The majority of

actions disclosed by respondents areoperational efficiencies, including bothenergy and water usage. While manycompanies lack sophisticated systems

to track and monitor progress againstformal targets, several respondentsreport they have implemented variousreduction activities at the site level.

Figure H: Examples of targets and actions

Company name

BMW BayerischeMotoren Werke

(Automobiles)

Johnson Controls(Consumer Durables)

News Corporation(Media)

Target

Reduce Scopes 1 and 2emissions by 30% from 1990

baseline by 2020.Reduce Scopes 1 and 2emissions by 30% from 2006baseline by 2012.

Reduce Scope 3 emissionsby 25% from 2008 baselineby 2020.

Reduce Scopes 1 and 2emissions by 30% from 2002baseline by 2012.

Reduce Scopes 1 and 2emissions by 30% from 2008baseline by 2018.

Reduce Scopes 1, 2, and 3emissions by 100% from 2010baseline by end 2010.

Actions

Groupwide energy efficiency project, including the use oftrucks with higher fuel efficiency and lower CO2 emissions as

well as rail transportation for business travel.Expanded the capacity and improved the efficiency of thelandfill gas project at a US plant.

Installed 70 solar panels on the roof of a particular plant toheat the water needed for its paint shop.

Developed an adhesive that replaces the previously necessary120-degree Celsius heat-drying process and implementing theprocess at various plants.

The global headquarters campus includes Wisconsinslargest solar photovoltaic field (31,115 square feet), reducinggreenhouse gas emissions by 1.1 million pounds per year

while generating electricity for the site. Laminatedmorethan14,000squarefeetofthin-film

photovoltaic cells to the roofing membrane of onebuilding to generate electricity and fulfill nearly allhot water needs.

Installedskylightsandincreasedwindowspacetoreduce the use of indoor lighting.

Usesextensivegeothermalheatingandcooling. Drilled272wellstoaccommodateaclosed-loop

system that supplies the heat pumps in the building,thereby reducing winter heating costs by about29% versus current natural gas boilers.

Otheremissionreductioninitiativesincludeinstallingpower management systems, retrofitting electronic

lighting ballasts and lamps, and training employeesabout energy efficiency.

Conducted energy audits at 95% of its properties.

Procured green power and reduced power loads in low-demand periods.

Expanded usage of digital transmitters across all stations,representing a more-energy-efficient transmission technologythan analog transmitters.

Investment in more hybrid and low-emission vehicles.


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Please reer to the Key at the end o the Appendix or urther explanation o the abbreviations used.

Appendix:

Consumer Discretionary scores and emissions by company

Auto Components

Denso

GKN

Goodyear Tire & Rubber

Johnson Controls

Automobiles

BMW Bayerische Motoren Werke

Daimler

Fiat

Ford Motor

Harley-Davidson

Honda Motor Company

Hyundai Motor

IMI

Nissan Motor

Toyota Motor

Volkswagen

Distributors

Genuine Parts

Inchcape

Pepsi Bottling Group (see PepsiCo)

Diversified Consumer Services

Apollo Group

DeVry

Dignity

H&R Block


888 Holdings

Carnival Corporation

Compass

Darden Restaurants

Dominos Pizza

Enterprise Inns

Fuller Smith & Turner

Greene King

G

F3

S

G, S

G

G

G

G, S

S

G

G

F3

G

G

G

S

F3

S

S

S

F3

S

F3

F3, G, S

F3

S

F3

F3

F3

F3

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

IN

AQ

AQ

AQ

AQ

AQ

AQ

NR

AQ

AQ(SA)

NR

NR

AQ

AQ

NR

AQ

AQ

AQ

AQ

AQ

NR

AQ

NR

AQ

NR

AQ

AQ

AQ

AQ

AQ

NR

AQ

AQ

AQ

AQ

AQ

AQ

DP

AQ(L)

AQ

DP

X

AQ

AQ

AQ

AQ

AQ

AQ

DP

AQ

X

AQ

15

58

52

87

78

75

80

63

62

73

45

66

80

77

34

66

25

80

57

84

46

36

66

-

C

C

A

A

B

B

B

B

B

-

C

A

B

-

D

-

C

C

C

-

-

C

NP

NP

NP

NP

NP

NP

NP

NP

1,677,888

1,205,293

2,571,811

4,849,719

1,550,000

1,985,624

90,322

7,334,000

6,516,034

23,372

10,317,221

87,421

1,100,436

70,948

245,281

502,582

357,793

549,608

1,623,551

1,280,000

700,800

24,322

2,910,000

1,510,950

15,005

10,264,098

79,542

349,647

36,092

49,778

1,175,310

847,500

2,022,200

3,226,170

270,000

1,284,820

66,000

4,424,000

5,005,080

8,367

53,123

7,879

750,789

34,856

195,503

54,359

1,850,010

190,000

72,499

635,342

7,832,710

43,105

5,610

27,836^

Tr

Tr TSP USP

S1 TSP

TSP

Tr TI TSP

Tr USP

Tr S1 TI

Tr

Tr EC Wa Oth

Com

pany&Industry

Inde

x1

2010

responsestatus12

2009

responsestatus

Carb

ondisclosurescore

Carb

onperformancescore

Non-public

Tota

lemissions3

Scope1

Scope2gridaverage4

Scope35

Scope3sourcetype

9

Some o the igures in this report have been updated since the initial response analysis and may thereore dier rom data in the main report contents.


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Holidaybreak

Intercontinental Hotels Group

International Game Technology

Ladbrokes

Marriott International

Marstons

McDonalds

Millennium & Copthorne Hotels

Mitchells & Butlers

Partygaming

Punch Taverns

Rank Group

Restaurant Group

Starbucks

Starwood Hotels & Resorts Worldwide

Thomas Cook Group

TUI Travel

Wetherspoon

Whitbread

William Hill

Wyndham Worldwide

Wynn ResortsYum! Brands

Household Durables

Aga Rangemaster Group

Barratt Developments

Bellway

Berkeley Group Holdings

Black & Decker (see Stanley Works)

Bovis Homes Group

D.R. Horton

Eaga

Fortune Brands

Harman International Industries

Leggett & Platt

LennarNewell Rubbermaid

Pace

Panasonic

Persimmon

Pulte Homes

Redrow

Sony Corporation

Stanley Works

Taylor Wimpey

Whirlpool

F6

F3

S

F3

S

F3

G, S

F3

F3

F3

F3

F3

F3

G, S

S

F3

F3

F3

F3

F3

S

SG, S

F6

F3

F3

F3

S

F3

S

F3

S

S

S

SS

F3

G

F3

S

F3

G

S

F3

S

AQ

AQ

IN

AQ

AQ

AQ

AQ

DP

AQ

DP

AQ

NR

DP

AQ

AQ

AQ

AQ

AQ

AQ

DP

NR

NRAQ

AQ

DP

AQ

AQ

AQ(SA)

AQ

NR

AQ

IN

NR

AQ

DPAQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

NR

AQ

X

AQ

NR

AQ

AQ

AQ

AQ

DP

AQ

NR

AQ

NR

NR

AQ

AQ

AQ

AQ

AQ

AQ

NR

IN

DPIN

X

X

AQ

AQ

AQ

AQ

NR

NR

IN

NR

AQ

DPNR

X

AQ

AQ

AQ

NR

AQ

AQ

X

AQ

68

54

50

64

43

15

32

48

52

76

71

90

67

69

63

65

51

71

50

47

21

56

66

90

62

43

69

81

71

54

C

C

B

B

-

-

-

-

C

B

B

B

B

C

B

B

C

C

D

-

-

D

C

A

C

-

C

B

C

C

NP

NP

NP

NP

NP

NP

10,837

9,200,000

54,206

2,449,916

78,918

186

912,853

2,480,781

4,368,785

6,402,202

137,071

207,713

26,000

4,119

6,236

1,786

18,495

3,310,869

10,422

7,603

1,743,212

209,553

819,654

5,281

4,600,000

1,340

456,979

78,918

104

228,742

532,423

4,322,907

6,297,794

46,711

50,879

12,500

1,805

2,828

940

16,625

758,053

7,444

6,244

368,277

76,514

223,199

5,556

4,600,000

52,866

1,992,940

82

684,111

1,948,360

45,878*

104,408

90,360

156,834

13,500

2,314

3,408

846

1,870

2,552,820

2,978

1,359

1,374,940

133,039

596,455

762

837,319

8,910^

234,501

0^

925^

821

418

64,782,000

23,630,000

7,138

121,361,000^

Tr

Tr Fe

Tr EC EA USPOth

Tr Wa

Oth

Tr

Tr

Tr

TSP USP

Tr TI USP

Tr

EA USP

Company&Ind

ustry

Index1

2010response

status2

2009response

status

Carbondisclos

urescore

Carbonperform

ancescore

Non-public

Totalemissions

3

Scope1

Scope2gridav

erage4

Scope35

Scope3source

type


10


11/15

Appendix

11

Internet & Catalog Retail

Amazon.com

Expedia

Home Retail Group

N Brown Group

Priceline.com

Leisure Equipment & Products

Eastman Kodak

Hasbro

Mattel

Media

Aegis Group

British Sky Broadcasting

CBS

Comcast

Daily Mail & General Trust

DIRECTV Group

Euromoney Institutional Investors

Gannett

Inorma

Interpublic Group o Companies

ITV

Johnston Press

McGraw-Hill

Mecom Group

Meredith

Naspers

New York Times

News Corporation

Next

Omnicom Group

Pearson

Reed Elsevier

Rightmove

Scripps Networks Interactive

Thomson Reuters

Time Warner

Time Warner Cable

Trinity Mirror

United Business Media

UTV Media

Viacom

Vivendi Universal

Walt Disney Company

Washington Post

WPP

Yell

G, S

S

F3

F3

S

S

S

S

F3

F3, G

S

G, S

F3

G, S

F3

S

F3

S

F3

F6

S

F6

S

G

S

G, S

F3

S

F3

F3

F3

S

G

G, S

G, S

F3

F3

F6

G, S

G

G, S

S

F3

F3

DP

NR

AQ

AQ

NR

AQ

NR

AQ

NR

AQ

NR

IN

AQ

NR

AQ

DP

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

AQ

NR

AQ

AQ

NR

DP

AQ

AQ

AQ

AQ

AQ

AQ

NR

AQ

AQ

NR

NR

AQ

AQ

X

AQ

DP

AQ

AQ

AQ

AQ

IN

AQ

NR

AQ

NR

AQ

AQ

AQ

X

AQ

X

AQ

X

AQ

AQ

AQ

AQ

AQ

AQ

NR

NR

AQ

AQ(L)

X

AQ

AQ

AQ

AQ

AQ

AQ

IN

AQ

AQ

71

86

61

41

83

25

61

63

20

37

28

71

30

36

41

4

94

81

45

69

77

13

50

55

61

71

23

78

53

65

62

B

B

C

-

B

-

C

C

-

-

-

C

-

-

-

-

A

B

-

C

B

-

D

C

B

C

-

C

C

C

C

NP

NP

NP

NP

NP

NP

NP

NP

NP

NP

276,400

12,323

193,317

134,604

84,840

2,803

40,252

147,549

44,215

597,087

161,392

194,634

143,748

64,294

6,033

3,714

247,969

1,496,786

166,696

28,405

126,000

2,909

15,553

24,945

16,193

216

14,656

50,135

6,824

86,008

64,196

45,524

18,587

10,390

650

1,015

27,614

543,226

6,282

492

150,400

9,414

177,764

109,659*

68,647

2,587

25,596

97,414

37,391

511,079*

97,196

149,110

125,161

53,904

5,383

2,699

220,355

953,560

160,414*

27,913

7,000

5,967^

8,884

3,886

199,708^

44,735

131,286

35,940^

32,624^

11,427

116

6,855

112,488

141,261

Tr

Tr EC Wa Oth

Tr TSP Wa

Tr

Tr TI

Tr

Tr

Tr Wa Oth

Tr EC Oth

Tr EA TSP

Tr

Tr

Tr

Tr DSP S1

Company&Ind

ustry

Index1

2010response

status2

2009response

status

Carbondisclos

urescore

Carbonperform

ancescore

Non-public

Totalemissions

3

Scope1

Scope2gridav

erage4

Scope35

Scope3source

type


12/15


12

Multiline Retail

Big Lots

Debenhams

Family Dollar Stores

J.C. Penney

Kohls

Macys

Marks & Spencer Group

Mothercare

Nordstrom

PPR

Sears Holdings

Target

Specialty Retail

Abercrombie & Fitch

AutoNation

AutoZone

Bed Bath & Beyond

Best Buy

Carpetright

Carphone Warehouse

DSG International

Fast Retailing

Galiorm

Game Group

GameStop

Gap

H&M Hennes & Mauritz

Halords Group

HMV Group

Home Depot

Inditex

Kesa Electricals

Kingisher

Limited Brands

LowesOReilly Automotive

Oice Depot

RadioShack

Richemont

Ross Stores

Sports Direct International

Staples

Tiany & Co.

TJX Companies

WH Smith

S

F3

S

S

G, S

S

F3

F3

S

G

S

G, S

S

S

S

S

G, S

F3

F3

F3

G

F3

F3

S

G, S

G

F3

F3

G, S

G

F3

F3

S

G, SS

S

S

G

S

F3

G, S

S

G, S

F3

IN

AQ

IN

AQ

AQ

AQ

AQ

AQ

AQ

NR

AQ

AQ

AQ

NR

NR

IN

AQ(L)

NR

AQ

AQ

NR

DP

DP

NR

AQ

AQ

IN

DP

AQ

AQ

NR

AQ

AQ

AQAQ

AQ(L)

NR

AQ

NR

DP

AQ(L)

AQ

AQ

AQ

AQ

AQ

DP

AQ

AQ

AQ

AQ

AQ

AQ

DP

AQ

AQ

NR

NR

NR

AQ

AQ

NR

NR

NR

NR

X

NR

NR

AQ

AQ

NR

NR

AQ

AQ

AQ

AQ

AQ

AQX

AQ

NR

AQ

X

DP

AQ

AQ

IN

AQ

67

59

58

47

69

58

72

61

66

24

55

52

32

51

52

37

66

87

67

7811

67

46

72

94

63

C

C

C

-

B

C

C

C

C

-

C

D

-

C

C

-

C

A

C

C-

B

-

B

C

C

NP

NP

NP

NPNP

NP

NP

184,781

1,173,946

861,838

652,000

33,160

3,454,280

3,027,914

28,754

553,379

250,152

335,226

489,000

346,504

384,610

32,274

813,026

18,811

78,727

28,004

221,000

8,160

877,581

310,277

25,657

11,951

24,591

129,000

33,673

49,310

1,311

48,393

165,970*

1,095,220

833,834

431,000

25,000

2,576,700

2,717,640

28,754

527,722

238,201

310,635

360,000

312,831

335,300

30,963

764,633

4,091

139,578

195,001

36,000

1,432

45,388

148,007

42,060

123,082^

483,564

94,100

10,209

Tr AS Wa

Tr TI

Tr TSP

Tr Wa

Tr

TSP

Tr TSP

TSP

Tr TI TSP WaOth

Tr TSP

TSP

Tr

Company&Ind

ustry

Index1

2010response

status2

2009response

status

Carbondisclos

urescore

Carbonperform

ancescore

Non-public

Totalemissions

3

Scope1

Scope2gridav

erage4

Scope35

Scope3source

type


13/15

Appendix

13

Textiles, Apparel & Luxury Goods

Burberry Group

Christian Dior

Coach

Hermes International

LVMH

NIKE

Polo Ralph LaurenTed Baker

V.F. Corporation

F3

G

S

G

G

G, S

SF6

S

AQ

NR

NR

NR

AQ

AQ(L)

DPAQ

AQ

AQ

X

DP

DP

AQ

AQ

DPX

DP

58

75

42

52

80

C

B

-

D

B

NP

26,321

253,390

76,110

274,321

2,165

48,723

72,339

24,156

204,667

76,110

201,982

1,770

544,413^

43,071

14,664

Tr

Tr AS TI TSPWa Oth

Tr Oth

Tr

Company&Ind

ustry

Index1

2010response

status2

2009response

status

Carbondisclos

urescore

Carbonperform

ancescore

Non-public

Totalemissions

3

Scope1

Scope2gridav

erage4

Scope35

Scope3source

type

1 This table also includes companies rom the FTSE All-Share Index who responded to the 2010 Inormation Request.While their scores and emissions inormation is included here, they are not included in the analysis o the report.

2 Those companies marked AQ(L) in 2010 submitted responses ater the analysis cut o date o July 1, 2010.These companies responses are not included in the analysis o this report.

3 Scopes 1 and 2 grid average reported emissions.

4 Where there is a * in this column, the company did provide detail in relation to its contractual Scope 2 emissions.Please reer to the companys response.

5 Where there is a ^ in this column the company provided an Other Scope 3 source type which was adjusted tobe included in one o the main Scope 3 source types.


14/15

Index:F3 FTSE 350

F6 FTSE All-Share

G Global 500

S S&P 500

Key:

AQ Answered questionnaire

SA Company is either asubsidiary or has mergedduring the reporting process.See company in bracketsor urther inormation oncompanys status

AQ(L) Answered questionnaire late

IN Provided inormation

DP Declined to participate

NP Answered questionnaire but

response not made publiclyavailable

NR No response

Company did not meet carbondisclosure score threshold o50 to receive carbonperormance score

X Company did not all intoone o the CDP samples inthat year

* Company provided a igureor scope 2 contractarrangements

These companies markedAQ in 2010 submitted theirresponse on time, butcould not be included inthe analysis o this reportdue to technical issues.

Company answered in theirlocal language and could notbe scored or the purposes o

this report. Reer to theCDP 2010 Japan 500report or the companyscarbon disclosure score andcarbon perormance score.

companies markedAQ in 2010 submitted theirresponse on time, butcould not be included in

Scope 3 source key:

S1 Purchased goods andservices - direct/tier 1

supplier emissions

AS Purchased goods andservices - emissions oall upstream suppliers - tier 1and beyond

EA Energy-related activities notincluded in Scope 2

Eq Capital equipment

TI Transportation and distributiono inputs (goods and

services) and waste generatedin own operations

Tr Business travel

Wa Waste generated in operations

Fr Franchises (Scope 1emissions o the ranchisor)

Lr Leased assets (Scope 1

emissions o the lessor)

In Investment (Scope 1

emissions o the companyreceiving investment)

Fe Franchises (Scope 1emissions o the ranchisee)

Le Leased assets (Scope 1emissions o the lessee)

TSP Transportation and distributiono sold products includingwarehousing and retail

USP Use o sold goods and

services

DSP Disposal o sold products atthe end o their lie

EC Employee commuting andteleworking

Oth Other


14


15/15

Report Writer Contacts

CDP Board of Trustees

PricewaterhouseCoopers LLP1, Embankment PlaceLondon, WC2N 6RH

United KingdomTel: + 44 (0) 20 7583 5000Fax: + 44 (0) 20 7822 4652

Alan McGillPartner

Richard GledhillPartner

Malcolm PrestonPartner

PricewaterhouseCoopers LLP300 Madison Avenue24th Floor

New York, NY 10017United States o AmericaTel: +1 (646) 471 4000Fax: +1 (813) 286 6000

Liz LoganPartner

Kathy NielandPartner

Contact details can be ound atthe ollowing web address:

http://pwc.com/sustainability

Important Notice

The contents o this report may be used by anyone providing acknowledgement is given to Carbon Disclosure Project. This does not represent a license to repackage or

resell any o the data reported to CDP and presented in this report. I you intend to do this, you need to obtain express permission rom CDP beore doing so.

PwC and CDP prepared the data and analysis in this report based on responses to the CDP 2010 inormation request. PwC and CDP do not guarantee the accuracy orcompleteness o this inormation. PwC and CDP make no representation or warranty, express or implied, and accept no liability o any kind in relation to the report includingconcerning the airness, accuracy, or completeness o the inormation and opinions contained herein. All opinions expressed herein by CDP and/or PwC are based ontheir judgment at the time o this report and are subject to change without notice due to economic, political, industry and irm-speciic actors. Guest commentaries whereincluded in this report relect the views o their respective authors.

PwC and CDP and their ailiated member irms or companies, or their respective shareholders, members, partners, principals, directors, oicers and/or employees, mayhave a position in the securities discussed herein. The securities mentioned in this document may not be eligible or sale in some states or countries, nor suitable or alltypes o investors; their value and the income they produce may luctuate and/or be adversely aected by exchange rates.

PricewaterhouseCoopers and PwC reer to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, other memberirms o PricewaterhouseCoopers International Limited, each o which is a separate and independent legal entity.

Carbon Disclosure Project and CDP reers to Carbon Disclosure Project, a United Kingdom company limited by guarantee, registered as a United Kingdomcharity number 1122330.

CDP Contacts

Chair: Robert NapierThe Met Oice

Christoph SchrderTVM Capital

Martin WiseRelationship Capital Partners

Alan BrownSchroders

Jeremy SmithBerkeley Energy

James CameronClimate Change Capital

Takejiro Sueyoshi

Chris PageRockeeller Philanthropy

Advisors

Tessa TennantThe Ice Organisation

Paul DickinsonChie Executive Oicer

Paul SimpsonChie Operating Oicer

Nigel ToppingChie Innovation Oicer

Joanna LeeChie Partnerships Oicer

Sue HowellsHead o Global Operations

Zoe Tcholak-AntitchVice President & Head oInvestor CDP

Daniel TurnerHead o Disclosure

Pedro FariaTechnical Director

Frances WayHead o Supply Chain& Public Procurement

Marcus NortonHead o CDP Water Disclosure

Jacob KislevitzProject [email protected] GillisAccount [email protected]

Chris RisoAccount [email protected]

James MarshallAccount [email protected]

Carbon Disclosure Project40 Bowling Green LaneLondon, EC1R 0NEUnited KingdomTel: + 44 (0) 20 7970 5660Fax: + 44 (0) 20 7691 [email protected]

Carbon Disclosure Projectc/o RPA, 6 W 48th Street

10th FloorUnited States o AmericaNew York, NY 10036Tel: + 1 (212) 378 2086Fax: + 1 (212) 812 4335

Documents

CDP 2010 Sector Report Consumer Discretionary