Income Trust 5 year performance record

1
Carbon Disclosure Project Emma Howard
Boyd Head of Socially Responsible
Investment January 2003
2
The faces of SRI

• Negatively screened products
• Positively screened products
• Constructive engagement

3
Recent SRI developments

• Growing consumer demand for SRI
• SRI pension disclosure regulations
• ABI corporate disclosure guidelines
• Integration of SRI into Corporate Governance
  policies
• Shareholder resolutions
• SRI Indices
• Carbon Disclosure Project
• Sell-side analysts
• Institutional Shareholders Committee Statement
  of Principles

4
Background to CDP

• Many investors concerned about Climate Change
• Extensive consultation process
• Advisory Board includes Bob Monks, Eileen
  Claussen, James Cameron, Andrew Dlugolecki,
  Robert Napier, Eckart Wintzen, Colin Maltby

5
Context

• Safe GHG levels mean 60 cuts
• US rejection of Kyoto Protocol
• Kyoto impact is minimal
• More extreme weather events
• Implies uncertainty ahead
• Lack of information regarding GHG emissions

6
CDP letter

• Sent to Global 500 companies
• Addressed to Chair of the Board, delivered by UPS
  courier with signature
• Sent 31 May 2002, deadline for responses 31
  December 2002
• Asked 7 questions regarding Greenhouse Gas
  emissions
• 35 signatories, over 4 trillion assets
• Questionnaire available from www.cdproject.net

7
Highlights of the CDP report

• Will be launched 17 February 2003 at the
  Guildhall, responses from www.cdproject.net
• Responses analysed by Innovest
• Great responses from companies particularly
  Abbey National, Air Products, AVIVA, AXA, BASF,
  BP, Credit Suisse, Deutsche Telekom, Dow,
  Entergy, Ford, Fuji Film, General Motors, HBoS,
  Hypovereinsbank, Intel, Marks Spencer, Munich
  Re, Sony, Statoil, Swiss Re, UBS, Unilever

8
Profile of responses

• Answered Questionnaire - 212
• Confirmed will be answering the questionnaire as
  soon as possible - 26
• Sent environmental report or other relevant
  information - 35
• Stated they will not be responding - 63
• Stated Greenhouse Gas emissions are not an issue
  for them - 10
• Total 346, leaving 154 companies not responding

9
How FT500 deal with Climate Change

• Wide variety of responses
• Concern about regulatory uncertainty
• Widespread support for Emissions Trading
• Denial We do not have any emissions
• Costs
• Savings
• Opportunities

10
Jupiter initiative

• Letter sent to FTSE 350 (not part of Global 500)
  and Jupiters UK SRI Approved List
• Awareness raising exercise
• 64 companies sent a response to letter
• 30 completed questionnaire
• Report due in February highlighting key findings
  and examples of best practice

11
Jupiter initiative - key findings

• Climate change seen as significant issue for
  business - conclusion of 55 companies
• Wide implications - from supply chain to customer
  base
• Greatest short term risk - energy-related
  taxation and regulation
• 45 of respondents see opportunities
• 75 of respondents collect data on greenhouse gas
  emissions
• Only 52 of respondents currently disclose

12
Thank you
13
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14
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