The CDP, an international NGO that works with investors and companies around the world to prevent climate change and protect natural resources, launched the CDP Brazil 100 report, from the 2013 Climate Change Program, in São Paulo. In its sixth national edition, the publication provides data and analyses on greenhouse gas (GHG) emissions and how climate change has been addressed by the 51 Brazilian companies that responded to the questionnaire. The information contained in the report leads to the conclusion that Brazilian companies understand how most risks affect their businesses and are currently taking action to manage them. However, it is also noted that companies are not aware of the imminent costs if they do not take action and reduce their emissions.
To arrive at these results, the CDP sent a questionnaire to 100 large Brazilian companies, using the iBrX index as a reference, which were invited to report their emissions and actions in the face of climate change. Of these companies, 56% responded to the CDP 2012 (56 against 52 in 2012), representing 86% of the total market capitalization of the IbrX; 1% provided information without fully completing the questionnaire and 41 companies (41%) declined the invitation. There were also another 2% that did not respond at all.
The main findings of the report were:
• Considering all emissions reduction initiatives reported by participants, an amount exceeding R$6 billion was invested in 2012 (base year). However, the average amount of capital disbursed represents only 0.07% of the revenue of the responding companies;

• 76% of the companies reported an increase in their emissions in scopes 1 and 2 in 2012 compared to the previous year. Among the respondents, 49% of the total emissions correspond to companies in the energy sector, although only three of the 51 respondents are from this area;

• Among the reported projects, low-carbon energy measures are the most cost-effective, as each R$1,000 spent on implementing such initiatives results, on average, in the reduction of more than 535 metric tons of CO2;

• For 46% of the reported emissions reduction initiatives, less than a year would be required for the resulting savings to exceed the amount disbursed during their implementation;

• More than 501,000 companies perceive at least three types of business risks from climate change: regulatory changes, physical climate parameters or other climate-related risks. Droughts and precipitation were the most commonly reported risks;

• 691% of companies see opportunities related to regulation and 551% of them see opportunities related to climate;

• In the responses of 75% of the reported opportunities, it is not possible to infer whether companies are aware of the potential financial gains. Companies better understand the potential financial implications of opportunities related to regulation;

• 55% of respondents have emissions reduction targets, compared to 40% in 2012;

• Of the 51 participants, only 29% do not audit their emissions in scopes 1 and 2. 57% verify their emissions data in both;

• Overall, there is a high level of commitment to climate mitigation. Most of the companies analyzed meet a set of four criteria regarding governance structure and integration of climate change issues into business strategy.

“Investors and society in general are increasingly demanding that companies take a proactive stance on climate change. While this fact explains the 15% increase in respondents with emissions reduction targets, on the other hand we see that there is a lot of opportunity in reducing emissions that are not yet clearly seen by companies,” says Juliana Lopes, director of CDP Latin America.

Best Answers
To provide support for both companies and investors to drive their strategy towards a low-carbon economy, CDP scored respondents on the following items: Disclosure (transparency in responses) and Performance (more effective measures to mitigate climate change)³[iii].

Transparency Leadership List
Company Sector Transparency Note
Braskem S/A Basic Materials 99
Basic Materials Voucher 98
CPFL Energia SA Utilities 89
Itausa Investments Itau SA Financial 88
Marfrig Alimentos SA Basic Consumer Goods 87
Minas Gerais Energy Company – CEMIG Utilities 86
FIBRIA Cellulose SA Materials 82
EDP – Energias do Brasil SA Utilities 82
Brazilian Petroleum SA – Petrobras Energy 82
BM&F Bovespa Financial 79

The full CDP Brazil 2013 report will be available on the website www.cdpla.net/pt.