Carbon Disclosure Project releases
the “CDP Japan 500 Climate Change Report 2012”

View this page in: 日本語

- PricewaterhouseCoopers Aarata conducted scoring and report writing -

Carbon Disclosure Project
PricewaterhouseCoopers Aarata

Tokyo, 30 October 2012 - Carbon Disclosure Project(CDP) disclosed the “CDP Japan 500 Climate Change Report 2012” on 30 October 2012. The report details the climate change risk and opportunity management activities of 214 major Japanese companies. PricewaterhouseCoopers Aarata conducted scoring of the responses and wrote the report.

CDP has collected, analyzed and disclosed major companies’ data on business risks and opportunities affected by greenhouse gas (GHG) emissions and climate change on behalf of many investors annually since 2003. Each year CDP requests approximately 5,000 companies globally to complete a questionnaire on their activities. This year, the 10th global request was sent on behalf of 655 institutional investors representing US$78 trillion in assets. This year was the 7th request in Japan, which was sent to 500 Japanese companies (the Japan 500) which were selected mainly according to total market value.

In this report, companies’ activities on climate change were assessed according to both disclosure and performance with the average scores for both increasing for those Japanese companies that responded to the questionnaire request. The main driver for this improvement was an increased focus on various kinds of emission reduction activities, including reduced electricity use following the Great East Japan Earthquake, and a greater emphasis on setting medium and long term targets.

As a result of this improved overall performance, for the first time CDP selected a total of 27 companies from the Japan 500 to be included in either the Carbon Disclosure Leaders Index (CDLI) or the Carbon Performance Leadership Index (CPLI). The companies selected are listed on page 11 of this report.

“Extreme weather events are causing significant financial damage to markets”, says Paul Simpson, CEO of the CDP, “Investors therefore expect corporations to think more about climate resilience. There are still leaders and laggards but the economic driver for action is growing, as is the number of investors requesting emissions data. Governments seeking to build strong economies should take note.”

“In 2011 many businesses were able to achieve emissions reductions in Japan due to the extraordinary circumstances following the Great East Japan Earthquake, however, emissions are expected to increase in the coming year due to the change in the energy mix,” says Scott Williams, Director at PricewaterhouseCoopers Aarata, “This is a time of unprecedented change and the need for a new mission to transform organizations to realize low-carbon opportunities will require courage from Japanese business leaders.”

It is already essential for companies to be able to determine their climate change risks and to take positive actions to prevent global warming in order to achieve business resilience. CDP continues to encourage companies who take action to mitigate climate change by promoting dialogue between investors and companies. PricewaterhouseCoopers Aarata provides various services for companies to take action to manage climate change risks and opportunities, such as strategic and management consulting, benchmarking against best practices and enhancing disclosure, in cooperation with our global network.

Summary of CDP Japan 500 Climate Change Report 2012

*This report (written in Japanese and English) is uploaded as “CDP Japan 500 Climate Change Report” in;

[Response rate and score]

47% of the Japan 500 companies responded. This is a small increase from the previous year (43%). The average disclosure score was 67; an increase of 6 points from the previous year.

[Emissions reduction target and activity]

96% of respondents reported emissions reduction targets, either absolute or intensity based. 69% of respondents reported that they have set long-term targets beyond 2020 and 5% have set targets beyond 2050.

An important change seen in the current year is a significant increase in the number of emissions reduction activities reported with a payback period of more than 3 years. Many companies responded that the unique energy generation circumstances experienced in Japan over the past year resulted in increased will to invest in large capital investment emissions reduction projects.

[Emissions data]

64% of respondents reported that the total of Scope 1 and 2 emissions decreased from the previous year. Again this was heavily influenced by the reduction in purchased electricity use for most Japanese companies as a result of both voluntary actions and mandated reductions in use following the Great East Japan Earthquake.
75% of respondents reported at least 1 category of Scope 3 emissions. The most commonly reported categories were: Downstream transportation & distribution, Business travel, Purchased goods and services, Upstream transportation & distribution and Use of sold products. Numerous other categories were reported by a small number of companies with the number of categories reported increasing year-on-year.

Scope 1 emissions: direct GHG emissions
Scope 2 emissions: indirect GHG emissions from purchased electricity or heat
Scope 3 emissions: indirect GHG emissions from supply chain


Brief summary of the research of the CDP Japan 500 Climate Change Report 2012

Subject: Carbon Disclosure Project(CDP)
*PricewaterhouseCoopers Aarata performed the scoring of companies’ responses and report writing
Aim: To promote solutions by providing data needed in business, policy and investment decisions
Term: From February to September 2012
Object: 500 companies selected by the UNPRI Japan Network from the FTSE Japan Index
Methodology: Companies respond to the questionnaire using the Online Reporting System. The responses are then assessed using the global CDP standardised scoring methodology approach.
Response: 233 companies (response rate: 47%), report is based on the 214 (43%) of responses received before the deadline for submission
Questionnaire: Consists of 3 sections: Management, Risks & Opportunities and Emissions. 15 questions covering a wide range of issues related to climate change. Companies are required to provide answers to demonstrate their actual disclosure and activities in line with the intent of each question.
Governance; Strategy; Targets & Initiatives; Communications
  ・Risks &
Climate change risks; climate change opportunities
  ・Emissions: Emissions methodology; Emission Data; Scope 1/2/3 emissions breakdown; Energy; Emissions performance; Emissions trading
Assessment: The responses are assessed for both disclosure and performance. Disclosure score is shown by relative score out of a hundred. Performance is grouped in six bands: A, A-, B, C, D and E.
*This report (written in Japanese and English) is uploaded as “CDP Japan 500 Climate Change Report” in;
About CDP
The Carbon Disclosure Project (CDP) is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. CDP harnesses the power of market forces, including 655 institutional investors with assets of US$78 trillion, to collect information from companies on their greenhouse gas emissions and assessment of climate change and water risks and opportunities. CDP now holds the largest collection globally of primary climate change and water data and puts these insights at the heart of strategic business, investment and policy decisions. Please visit to find out more.
About PricewaterhouseCoopers Aarata
In fulfilment of its mission to provide audits and assurance of outstanding professional service, PricewaterhouseCoopers Aarata applies the approaches and best practices of PricewaterhouseCoopers, one of the world's largest accounting firms, in ways tailored to conditions in the Japanese market. In addition, we provide clients with a wide variety of assistance in adopting International Financial Reporting Standards (IFRS) and addressing matters related to internal controls for financial reporting as well as advice on IPOs.
About PwC
PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with more than 180,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at .