Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• REWE Group cut its carbon emissions by half since 2006.
• Home Depot reported nearly 24% less electricity usage than 2010, surpassing its plan for a 20% reduction by 2020.

Social Achievements

• Auchan developed an employee ownership program.
• Ahold Delhaize successfully cooperated with unions to secure a high-quality workforce.
• Carrefour implemented several redundancy plans with limited business disruption.
• Casino granted a one-off bonus to its employees.
• Marks & Spencer has a comprehensive Plan A program.
• Tesco has comprehensive waste management programs.
• JD.com provides safety trainings and purchases insurance for its front-line employees.
• Coles Group outlined 10 key environmental and social initiatives to achieve efficiency.
• Woolworths Group is pursuing strategies to move away from generating income streams from its hotel business (gambling).
• Target Corp. established an $11 starting wage in 2017 and committed to a $15 per hour rate by 2020.
• Starbucks invests heavily in training frontline employees and provides attractive employment benefits.

Governance Achievements

• Auchan appointed a new Chairman in 2018.
• Ahold Delhaize has positive management’s expertise and sufficient oversight as well as the independence of the supervisory board.
• Carrefour's management team has significant experience in e-commerce.
• Metro AG has positive management’s expertise, depth, and breadth combined with its forward-looking strategic planning process.
• REWE Group has positive management’s expertise and experience.
• Tesco has an independent board and risk management standards.
• Home Depot has well-defined sustainability goals and is well positioned to achieve these targets.

Climate Goals & Targets

Environmental Challenges

• Changing consumer behavior (preferences for rapid delivery, price transparency, traceability, sustainable products).
• Emissions regulations and the cost to comply.
• Regulations to reduce the use of plastic packaging.
• Brand perception, food safety, and waste management.
• Price transparency and fairness for suppliers and customers.
• Safety of goods and food.
• Human capital management in a labor-intensive sector.
• Supply chain transparency and logistics with less waste and energy consumption.
• Complex corporate structures (Casino).
• Cybersecurity risks (Tesco).
• Product authentication and user data protection (JD.com).
• Tightening emissions regulations in China (JD.com).
• Labor relationships and potential mergers and acquisitions (Albertsons).
• Government scrutiny of business models (Amazon).
• Potential civil liability associated with class action lawsuits (Loblaw).
• Minimum wage increases (Loblaw).
• Strategic execution (Macy's).
• Governance of franchisee relationships (McDonald's).
• Rising wages, better food quality, and improving source transparency (McDonald's).
• Shifting consumer preferences toward more transparent and sustainable food practices (RBI).
• Spiraling health care costs and opioid abuse (Walgreens).
• Labor and sourcing decisions, especially overseas (Walmart).
• Foreign Corrupt Practices Act expenses (Walmart).

Mitigation Strategies

• Retailers can own and outsource capacity for logistics to select lower emission service providers.
• Retailers working with governments and municipalities to reduce single-use plastic bags.
• Retailers adapting product offering and distribution strategies.
• Strict quality and safety control of products.
• Carrefour accelerated growth in organic products.
• Casino subsidiary Green-Yellow focuses on developing photovoltaic panels.
• Esselunga prepares most fresh food in its owned processing plants.
• Marks & Spencer's Plan A program.
• Tesco's sourcing electricity from renewable sources, using low-emission vehicles, and investing in IT systems.
• JD.com using “green and reusable” delivery bags, “e-invoices,” and new energy vehicles.
• Albertsons growing its portfolio of organic, health-conscious, and environmentally sustainable offerings.
• Amazon's good track record of reliable, secure cloud operation.
• Costco's product donations, waste recycling, and waste to energy programs.
• CVS Health's ample financial resources.
• Dollar Tree investing $100 million in business and employees.
• Home Depot's investments in systems and workforce.
• Kroger's focus on supply chain accountability and higher-quality sourcing.
• Loblaw's focus on emission reduction and improving its offerings.
• Lowe's changes to business strategies to increase store productivity.
• McDonald's eliminating foam from packaging and making 100% of packaging renewable by 2025.
• RBI increasing access to nutrition information.
• Starbucks investing in ethically sourced products and sustainable farming practices.
• Target's cost savings to offset wage increases.
• Walmart raising minimum wages, improving training, and focusing on emissions reduction.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ethical sourcing
• Sustainable supply chain procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Emissions regulations
• Changes in consumer preferences

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion
• Human Capital Management
• Community Engagement
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 30% from 2013-2018 (exceeded prior 5-year targets)
• Announced plan to achieve Net Zero GHG emissions by 2040
• Received Science Based Targets Initiative (SBTi) approval for emissions reduction targets
• Published second annual TCFD Report with expanded disclosure, including carbon-adjusted EPS metric

Social Achievements

• Increased grant-making by the S&P Global Foundation by 180%, including $4.5 million in COVID relief and $1.1 million to support racial justice initiatives
• Increased sick and family care leave for employees, expanded telemedicine and mental health resources
• Launched a career coaching program with over 1,000 employees participating in over 1,800 sessions
• Employee Resource Groups (ERGs) expanded with over 1,000 new members and eight new regional networks

Governance Achievements

• Updated Corporate Governance Guidelines and Committee Charters to reflect increased focus on ESG
• Expanded voluntary external reporting on ESG in the second TCFD Report and annual ESG Report (adhering to GRI and SASB Standards)
• Increased CEO share ownership guideline from 6x base salary to 7x, and CFO from 3x to 4x

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations, employee well-being, and business continuity
• Climate change related risks (physical and transition)
• Managing Scope 3 emissions from suppliers

Mitigation Strategies

• Transitioned to a global work-from-home model
• Expanded health and wellness benefits for employees
• Developed a comprehensive climate scenario analysis
• Set science-based targets for emissions reduction
• Goal of having 81% of suppliers establish their own SBTi targets by 2025

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, GRI, SASB

Certifications: Null

Third-party Assurance: Corporate Citizenship

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• S&P 500 ESG Index
• ESG Scores
• Sustainable jet fuel price assessment

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Air Quality
• Waste Management
• Social Inclusion
• Access to Essential Services

Environmental Achievements

• Financed 306 water and wastewater development projects worth US$11.5 billion.
• Reported Scope 1 and 2, and some Scope 3 GHG emissions since 2021.
• Reported on downstream emissions avoided related to its portfolio of financed projects.

Social Achievements

• Prioritizes enhancing access and affordability for communities without existing basic water and waste services.
• Reduces health hazards associated with high levels of air pollutants.
• Manages grant programs with governmental agencies to develop needed basic infrastructure at affordable costs for certain eligible communities.

Governance Achievements

• Commits to engaging an independent external auditor to align Allocation Reports with the Framework.
• Commits to disclosing the allocation and impact of proceeds through an annual report.

Climate Goals & Targets

Environmental Challenges

• Border crossing infrastructure and road paving projects lack a minimum air pollutant level for project eligibility.
• Landfill development projects may only meet local waste management regulations.
• Issuer lacks an estimated breakdown of proceeds for refinancing versus newly financed projects.
• Does not adhere to a specific lookback period for all eligible financings.

Mitigation Strategies

• Regional context and quantitative improvements largely justify initiatives.
• Efforts could significantly improve waste pollution and methane emissions throughout the region.
• Stringent project selection process through ESRMS and ESG Scoring practices.
• Utilizes Result Measurement System (RMS) for project evaluation.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Heatwaves
• Hurricanes
• Droughts
• Wildfires

Transition Risks

• Policies and rules to reduce emissions could raise credit, legal, and reputational risks.

Opportunities

• Financing the climate transition offers a growth avenue through lending, debt structuring, and other capital markets activities.

Reporting Standards

Frameworks Used: Social Bond Principles, ICMA, 2023, Social Loan Principles, LMA/LSTA/APLMA, 2023, Green Bond Principles, ICMA, 2021, Green Loan Principles, LMA/LSTA/APLMA, 2023, Sustainability Bond Guidelines ICMA, 2021, ICMA Harmonized Framework for impact reporting

Third-party Assurance: Commits to engaging an independent external assurance provider

UN Sustainable Development Goals

• 1
• 2
• 3
• 6
• 7
• 9
• 11
• 12
• 13

The framework intends to contribute to the listed SDGs, as detailed in the report.