CDP 2017 Climate Change 2017 Information...

CDP CDP 2017 Climate Change 2017 Information Request

Topdanmark

Module: Introduction

Page: Introduction

CC0.1

Introduction

Please give a general description and introduction to your organization. Topdanmark A/S is a nation-wide insurance and pension fund business company insuring both personal, SME and agricultural customers. Business operations is carried out solely in Denmark, and head office is situated in Ballerup (Copenhagen area). Topdanmark is a public limited company listed on the stock ex-change. Topdanmark's objectives are to: • carry out nation-wide, Danish non-life, life and pension fund business • be attractive to customers by being an independent and preeminent insurance group • ensure that shareholders achieve a long-term, competitive and stable return In 2016: Half of all Danish farms, about every fourth person in Denmark and every sixth business was insured with Topdanmark, making it the second largest non-life insurance and sixth largest pension fund company in Denmark. Topdanmark's non-life market share was around 17 % and the pension fund share was around 8 %. Annually around 300,000 claims is handled and 2.3 million telephone calls is received from customers.The total revenue for 2016 was around 15 billion DKK. The total number of Topdanmark employees was around 2,650. Since 2010 Topdanmark has signed up to UN Global Compact and reported to CDP.

CC0.2

Reporting Year

Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jan 2016 - Sat 31 Dec 2016

CC0.3

Country list configuration

Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

Denmark

CC0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. DKK

CC0.6

Modules

As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6.

Further Information

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

Topdanmark Risk Committee is responsible for climate change issues related to the core business. The committee consists of the CFO of the Topdanmark Group, the CEO of Topdanmark Life and Pension Fund and the heads of the primary risk areas: Asset Management, Statistical Services, Reinsurance, Finance, Life Actuarial Services and Life Finance. The Risk Committee reports and recommends to the Board of Directors via the Executive Board. Topdanmarks CSR Management Committee is responsible for climate change issues related to the operation of the company. The CSR Management Committee concist of seven members including heads of business areas.

CC1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from

these incentives?

The type of incentives

Incentivized performance

indicator

Comment

Management group

Monetary reward

Emissions reduction target

Topdanmark has established a company car policy giving employees an incentive to choose smaller and environmentally sound cars when it comes to Company owned cars. Det sker ved at give et forhøjet tilskud til biler, som er mere miljøvenlige. This is to reduce CO2-emission from company-owned cars and reach CO2-reduction target.

All employees Other non-monetary reward

Behavior change related indicator

Since 2013, Topdanmark has given special attention to promoting sustainable means of transport, e.g. electric cars, bicycles and electric bicycles. To encourage employees going by bicycle they are offered free participation in a national-wide campaign in May "We cycle to work". In 2016 the number of participant was 396 (2015: 324). Internal communication highlights the participants.

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of monitoring

To whom are results reported?

Geographical areas

considered

How far into the future are risks

considered?

Comment

Annually Board or individual/sub-set of the Board or committee appointed by the Board

Denmark > 6 years

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

Risk management is an integral part of Topdanmark's core business. Topdanmark's risk management policy is to hedge against risks arising from the company's activities if possible. Otherwise Topdanmark aims at limiting such risks to a level that allows the company to maintain normal operations and implement its planned measures even in the case of highly unfavourable events in the outside world, e.g. climate change related damages. As a consequence of this policy Topdanmark identifies and reduces or eliminates those risks which could potentially cause losses exceeding what Topdanmark considers to be acceptable. For example,the catastrophe cover for weather-based events has been increased significantly and the financial risk reduced. The risks are identified based on our long term experiences with management of and analysing damages, e.g. likelihood and magnitude. In addition to that, risks are identified based on general knowledge about weather data, weather related events and climate changes. The elements of the overall risk profile are brought together in the central risk management function which is responsible for ensuring that the data for and processes of risk calculations and profiling are of a high quality. The risk management function reports to the Risk Committee which is responsible for the SCR (solvency capital requirements) calculation, internal model, use test, risk limits, risk policies, standard calculation and ORSA (own risk and solvency assessment). Business opportunities related to climate changes are developed, planned and implemented in each business section. The process is based on experienced,

damage data evaluation, evaluation of research on weather related and climate change issues and events as well as dialogue with our customers. In that way Topdanmark ensures the provision of products that are needed by current and potential customers to mitigate the effect of weather-related changes.

CC2.1c

How do you prioritize the risks and opportunities identified?

Topdanmark gives priority to the risks which could potentially cause losses exceeding what Topdanmark considers to be acceptable. Topdanmark gives priority to the opportunities that are considered to have long-term impact on our business, e.g. products that serve the needs of a major number of customers.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process

Do you plan to introduce a process?

Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

As an insurance company, assessing and managing risk is essential to Topdanmark's business strategy. This includes weather and climate change related risks and opportunities which may affect our business. Topdanmark constantly follows the trend in weather-related claims to adopt and enhance risk management and business strategy. Climate change risk and opportunities are integrated into the business under seven thematic areas: 1) Risk management Preparing for a potential increase in the number of weather related-claims is part of Topdanmark’s business strategy and risk management. In general, weather-related claims are monitored to prepare for new situations and adequate tools and models have been established, e. g. integrating climate change exposures into pricing. Rainstorm damage is a challenge to SME. In 2014, after the latest severe rainstorm, a team of engineers visited customers who had suffered rainstorm damage amounting to 500,000 kr. or more. Each of the customers received a report with advice on how to prevent similar damage in the future. In some cases, customers have been required to fulfill specific prevention requirements. Also, in 2016 SME have received advices about prvention of rainstorm damages. 2) Loss prevention Loss prevention is a central part of our product portfolio, as well as our services, which is beneficial for the environment., for the customers as well as for the business. Rebuilding after, for example, fire and water damage demands many resources impacting the environment and carbon emission levels. To our agricultural customers a ‘safe farm concept’ has been elaborated to prevent, for example, fire and rain storm damages. In 2014 Topdanmark launched a digital version of the 'safe farm concept' to enhance focus on prevention. In addition, Topdanmark provided fur farmers with a digital platform in 2015, which is directed at the fur industry.In 2016 the IoT technology has been tested as a mean to prevent, among other thinghs, fire damages. 3) Products and services Insuring environmentally friendly technologies is part of our product portfolio, e.g. wind mills and solar cell systems. Approximately 13 % of our agricultural customers has solar cell systems implemented. 4) Investment in solar cell systems In 2012 Topdanmark invested in a solar cell system consisting of 3,042 panels at the headquarters of Topdanmark A/S. In 2016 the system has been expanded to 5,928 panels. It is ecpected to produce a little less than 1,500 MWh. Furthermore, a solar cell system with 2100 panels has been implemented on an estates owned by 'Topdanmark Estate'. In 2017 a new solar cell system will be implemented at our location in Viby. In the years to comre solar cell systems will be implemented when relevant. 5) General investment Screening of Topdanmark Pension Funds Investments up against UN Global Compact including principles on the environment to prevent negative impact on the environment. An analysis made by the Danish WWF in 2014 comparing investments in oil and gas companies made by pension fund showed that Topdanmark was among those pension fund companies with the lowest number of investments in companies related to oil and gas. The result of COP21 is considered in Topdanmark’s investment strategy along with other political decisions and international agreements that can influence the expected return on investments as well as the risk profile of investments.

6) Daily operation of the business To reduce CO2 emissions from Topdanmark we have defined a strategy for climate and environment. It comprises goals for: •Reduction of carbon emission: until 2017 our goal is to maintain the same level of CO2-emission as in 2014 - for further information see section CC3 •Waste management. Since 2010 all waste generated at the headquater has been separated in order to recycle relevant waste, mainly paper. As paper consumption is decreasing, the percentage of recycled waste is decreasing too. In 2015 43,5 % af all waste was recycled, while in 2016 the figure was 37,5 %. •Reduction of paper consumption: in 2016 the reduction was 27 tons paper or 24% % - compared to 2015. 7) Value chain Topdanmark encourages all key suppliers to integrate the Global Compact principles in their business including environmental principles. When relevant, Topdanmark initiates dialogue about climate related issues with suppliers.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c

Does your company use an internal price on carbon?

No, and we currently don't anticipate doing so in the next 2 years

CC2.2d

Please provide details and examples of how your company uses an internal price on carbon

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Trade associations

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on

climate change

consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the

position?

Danish Insurance Association

Consistent

The Danish Insurance Association (DIA) places the climate change on the agenda including the political agenda in various ways: The DIA works with the Government and insurance industry to ensure that buildings and communities are resilient to the effects of climate change in the long term. Among other projects a climate group under DIA has been established to support municipalities in preparing a plan for climate adaptation, which includes a plan for how to handle large floods caused by rainstorms. The climate group has

Representatives from Topdanmark participate actively in climate group under the association.

Trade association

Is your position on

climate change

consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the

position?

also signed a partnership agreement with the Ministry of Environment on climate adaptation and contributed with 1,2 million DKK to a free, advanced flooding model covering the whole country.

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

CC2.3e

Please provide details of the other engagement activities that you undertake

CC2.3f

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

Our governance structure ensures that all of our direct and indirect activities that influence policy are consistent with the company’s overall climate change strategy.

CC2.3g

Please explain why you do not engage with policy makers

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?

Intensity target Renewable energy consumption and/or production target

CC3.1a

Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a science-

based target?

Comment

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in

scope

% reduction

from base year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

Int1 Scope 1+2 (location-based)

100% 13.3% Metric tonnes CO2e per unit FTE employee

2014 1.5 2017 No, and we do not anticipate setting one in the next 2 years

Int2 Scope 3: Business travel

100% 0% Metric tonnes CO2e per unit FTE employee

2014 0.82 2017 No, and we do not anticipate setting one in the next 2 years

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in

absolute Scope 1+2 emissions at target

completion?

% change anticipated in absolute Scope 1+2

emissions

Direction of change anticipated in

absolute Scope 3 emissions at target

completion?

% change anticipated in absolute Scope 3

emissions

Comment

Int1 Decrease 14.4

The goal is - until 2017 - to maintain the level of CO2-emission in 2014.

Int2

No change 0 The goal is - until 2017 - to maintain the level of CO2-emission in 2014.

CC3.1d

Please provide details of your renewable energy consumption and/or production target

ID

Energy types

covered by target

Base year

Base year energy for

energy type

covered (MWh)

%

renewable energy in base year

Target year

%

renewable energy in

target year

Comment

RE1 Electricity production

2013 745 12% 2016 10%

The renewable energy produced comes from Topdanmark's solar cell system. The percentage of the energy produced by the solar cell system was lower in 2016 compared ti base year. There are two reasons for that: the system was closed down several months as the direction of the panels was changed to optimise the use of the panel; the energy consumption increased in 2016 as the system also was extended.

CC3.1e

For all of your targets, please provide details on the progress made in the reporting year

ID

% complete (time)

% complete (emissions or renewable energy)

Comment

Int1 66% 100%

Int2 66% 100%

RE1 100% 75% For an explanation, please see comment in CC 3.1d

CC3.1f

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

CC3.2

Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

No

CC3.2a

Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level of

aggregation

Description of product/Group

of products

Are you reporting

low carbon product/s or

avoided emissions?

Taxonomy, project or methodology used to classify product/s as

low carbon or to calculate avoided

emissions

% revenue from

low carbon product/s in the reporting year

% R&D in low

carbon product/s in the reporting

year

Comment

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 0

To be implemented* 3 90

Implementation commenced*

Implemented* 1 200

Not to be implemented

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency -

as specified in

CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Low carbon energy installation

Extention of solar cells at the headquarters in Ballerup. Expected production: 675 MWh.

200

Scope 2 (location-based)

Voluntary

1500000 14000000 16-20 years

21-30 years

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Financial optimization calculations Topdanmark make calculations intended to make buildings and processes more energy efficient and thereby reduce both CO2 emissions and cost.

Compliance with regulatory requirements/standards Topdanmark has signed up to UN Global Compact which implies that we constantly engage in and implement emission reduction activities.

Compliance with regulatory requirements/standards Topdanmark is submitting an Energy Regulatory Report to the Danish Energy Authority.

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Status

Page/Section reference

Attach the document

Comment

In other regulatory filings

Complete 5, 9, 25, 26, https://www.cdp.net/sites/2017/27/19227/Climate Change 2017/Shared Documents/Attachments/CC4.1/CSR Report 2016_endelige version_UK.pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in physical climate parameters

CC5.1a

Please describe your inherent risks that are driven by changes in regulation

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

CC5.1b

Please describe your inherent risks that are driven by changes in physical climate parameters

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Change in precipitation extremes and droughts

Large weather related damage caused by storms or cloudburst may affect Topdanmark's business substantially due to an increased number of claims and thereby an increase in compensation paid. As an example, Topdanmark experienced an increase in claims in 2013 by approximately 17 % due to cloudburst and a storm compared to 2012. Even though this situations happened some years ago it is still relevant to mention in the report as storms and clousburst is considered to to be the most significant climate change risk in the future.

Increased operational cost

3 to 6 years

Direct Likely High

The financial implication of the latest clousburst and storm in 2013 was an increase in compensation paid to customers. The total amount paid out was approx. DKK 1.000.000.000. However, due to a comprehensive reinsurance programme the cost was reduced to DKK 330.000.000.

Preparing for potentially further numbers of weather related claims is part of Topdanmarks business strategy and risk management which prevent negative Financial impact. In general, weather-related claims are monitored to prepare for new situations. Risks associated with these types of damage are strictly calculated and prices are set according to the risk scenario. Loss prevention is a central part of our product portfolio and services Example: In 2014, a team of engineers visited customers who had suffered clousburst damage amounting to DKK 500,000 or more. Each of the customers received

Risk management is a core competence for Topdanmark and the impact from natural catastrophes and weather-related events are integrated in our overall and general risk management procedure. Therefore, there is no additional cost in regards to the management of risk related to climate changes.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

a report with advice on how to prevent similar damage in the future. In some cases, customers have been required to fulfill specific prevention requirements. Also, continuously focusing on making claims handling processes more efficient, e.g. by promptly obtaining an overall impression of the size of a claim which not only reduces the compensation paid but also provides a better experience for the customer. Finally, Topdanmark limits its insurance risk on clousburst and storms through a comprehensive reinsurance programme.

CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

Changes in regulations related to climate changes does not present a significant risk to Topdanmark's business because the company is a financial services group with relatively limited CO2 emissions in its day-to-day operations. Our customers and suppliers may be exposed to national regulations as well as regulations from the EU. These regulations could affect our business indirectly but is not considered to be a substantial risk. In any case, observation of changes in regulation, taxes, duties etc. that is related to climate and climate change – whether they affect Topdanmark directly or indirectly – is an integrated part of Topdanmark’s way of doing business and part of our risk management. We supervise behavioural changes in society arising from changes in regulation in order to cope with changes in risk pattern.

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Changes in customers patterns of consumption and behavious due to climate chages such as an increase in 'shaing economy' will have the potential to affect the existing business model due to a reduced need of Insurance. However, the risk is not considered substantial as the Financial implication will be low.

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

CC6.1b

Please describe your inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Snow and ice

Increase in physical damage caused by weather extremes (for example a warmer climate or more cloudburst and snow) will create an increased need for our insurance products as well as for product and services to mitigate the impact from climate changes and to prevent damage. An example of a product: based on an increase in risk of damage from heavy snow storms an insurance product has been developed to mitigate the risk and damage.

New products/business services

3 to 6 years

Indirect (Client)

Very likely Medium

The product reduces our risk and increases our revenue.

Based on the evaluation of damage data , evaluation of research on weather-related and climate change issues and events plus dialogue with our customers, Topdanmark ensures the provision of products that are needed by our current and potential customers.

The development of new and adequate products is part of our normal business development and innovation strategy and as such there is no extra cost associated with climate changes.

Other physical climate opportunities

As a consequence of the increased number of storms and cloudburst that has happened in Denmark since 2011, Topdanmark has prepared a

Reduced operational costs

3 to 6 years

Indirect (Client)

Very likely Medium-high

The Financial implication is difficult to estimate but it is considered to be positive and substantive.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

detailed emergency plan for disasters to ensure that prompt, correct and targeted action is taken in response to a major weather event such as a storm, hurricane, cloudburst or flood when the number of claims increase compared to the normal situation. The emergency programme consists of several levels, and this enables a proportional response depending on the size of the event. Topdanmark has appointed emergency helpers throughout the company whose knowledge of claims handling is regularly kept up-to-date. Furthermore, alert drills are held twice a year in order to

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

prepare the employees and improve the emergency programme. The emergency plan ensures that we promptly obtain an overall impression of the size of a claim, implement any damage controlling actions and/or commence the claims handling process even if the situation is critical due to the increased number of claims. Topdanmark’s detailed and effective emergency plan is considered a business advantage compared to our competitors as it retains current customers, attracts new customers and implies less compensation pay.

CC6.1c

Please describe your inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Changing consumer behavior

A change in customer behaviour in the direction of appreciating environmentally friendly products and services affects Topdanmark. Customers demand insurance of sustainable technologies and by providing this insurance Topdanmark is able to achieve business advantages compared to our competitors. There are many initiatives to develop efficient and more environment-friendly forms of energy than fossil fuel both globally and in Denmark. Topdanmark

New products/business services

1 to 3 years

Indirect (Client)

Very likely Medium

The Financial implication is difficult to estimate but it is considered to be positive and substantive. As an example, 898 windmills and 6893 solar cell systems are insured among our agricultural customers. In addition, 14 % of our agricultural customers has implemented solar cell systems.

Based on the evaluation of damage data, evaluation of research on weather-related and climate change issues and events plus dialogue with our customers, Topdanmark ensures the provision of products that are needed by our current and potential customers.

The development of new and adequate products is part of our normal business development and innovation strategy and as such there is no extra cost associated with climate changes.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

follows the development closely, and we endeavour to be ready to support and insure the new sustainable solutions which our customers, particularly agricultural customers, might wish to implement. Topdanmark was ready to insure windmills when they were introduced to the Danish market and set up at particularly agricultural customers' farms. We were the first company to insure biogas plants. And the many solar cell systems which emerge on private houses or farms are now part of our insurance products. This provides security to our customers to test the new technologies.

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

Topdanmark monitor behavioural changes in soiceity arising from changes in regulation. This is done in order to cope with national as well as EU regulations related to climate changes that can potentially affect our customers and suppliers. However, it is not currently considered a scenario that represents a substantial business opportunity.

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Wed 01 Jan 2014 - Wed 31 Dec 2014

1482

Scope 2 (location-based) Wed 01 Jan 2014 - Wed 31 Dec 2014

2135

Scope 2 (market-based)

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

CC7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CO2 Other: ILCD (PE International/Marcogaz

CO2 Other: Energinet.dk

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy

Emission Factor

Unit

Reference

Natural gas 2.07 metric tonnes CO2e per m3

ILCD (PE International/Marcogaz

Motor gasoline 2.34 kg CO2e per liter ILCD (PE International International/CONCAWE/EUROPIA)

Diesel/Gas oil 2.6553 kg CO2e per liter ILCD (PE International International/CONCAWE/EUROPIA)

Electricity 284.923 kg CO2e per MWh Energinet.dk

Further Information

Page: CC8. Emissions Data - (1 Jan 2016 - 31 Dec 2016)

CC8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Financial control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

1741

CC8.3

Please describe your approach to reporting Scope 2 emissions

Scope 2, location-based

Scope 2, market-based

Comment

We are reporting a Scope 2, location-based figure

We have no operations where we are able to access electricity supplier emissions factors or residual emissions factors and are unable to report a Scope 2, market-based figure

CC8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location-based

Scope 2, market-based (if applicable)

Comment

1355

CC8.4

Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

No

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance of Scope 1 emissions from this

source

Relevance of location-based Scope 2 emissions from this

source

Relevance of market-based Scope 2

emissions from this source (if applicable)

Explain why the source is excluded

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope

Uncertainty range

Main sources

of uncertainty

Please expand on the uncertainty in your data

Scope 1 More than 5% but less than or equal to 10%

Extrapolation

Topdanmark uses 'operational control' as boundary for our Scope 1 emissions as defined in the GHG Protocol. Scope 1 CO2 emissions derive from two sources: gas consumption for heating and company owned cars. CO2 emission derived from gas consumption for heating is calculated based on consumption reports made available by suppliers and internal reports. Data quality is considered to be high. CO2 emission derived from company owned cars is extrapolated from registration of fuel consumption (litres of petrol or diesel). Errors in registration of fuel consumption may occur.

Scope 2 (location-based)

Less than or equal to 2%

Data Management

Topdanmark uses ‘operational control’ as boundary for our Scope 2 emissions as defined in the GHG Protocol. Scope 2 CO2 emissions derive from two sources: electricity consumption and district heating. CO2 emissions from both sources are calculated based on consumption reports made available by suppliers and by internal management systems. Data quality is considered to be high, but minor errors may occur.

Scope 2 (market-based)

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Verification or

assurance cycle in place

Status in the

current reporting year

Type of verification or

assurance

Attach the statement

Page/section reference

Relevant standard

Proportion of reported Scope 1 emissions

verified (%)

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emission Monitoring Systems (CEMS)

Regulation

% of emissions covered by the system

Compliance period

Evidence of submission

CC8.7

Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures


CC8.7a

Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Location-based or

market-based figure?

Verification or


Status in the


Type of verification

or assurance



Relevant standard

Proportion of

reported Scope 2 emissions verified

(%)

CC8.8

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified

Comment

No additional data verified

CC8.9

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

Further Information

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

No

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region

Scope 1 metric tonnes CO2e

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By activity

CC9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility


Latitude

Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type


CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity


Heating - natural gas 949

Transport: Company owned cars 792

Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC10.1

Do you have Scope 2 emissions sources in more than one country?

No

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region

Scope 2, location-based (metric

tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling

accounted in market-based approach (MWh)

CC10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By activity

CC10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2, location-based (metric tonnes CO2e)


CC10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility



CC10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity



Heating - district heating 83

Electricity consumption 1272

Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2

Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

MWh

Heat 4812

Steam 0

Cooling 1043

CC11.3

Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

7345

CC11.3a

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Natural gas 4366

Motor gasoline 322

Diesel/Gas oil 2657

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbon emission factor

MWh consumed associated with low carbon electricity, heat, steam or cooling

Emissions factor (in units of

metric tonnes CO2e per MWh)

Comment

CC11.5

Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total

electricity consumed

(MWh)

Consumed electricity

that is purchased

(MWh)

Total

electricity produced

(MWh)

Total

renewable electricity produced

(MWh)

Consumed renewable

electricity that is produced by

company (MWh)

Comment

5965 5467

496 496

The electricity was generated by Topdanmarks own solar cell system. The production was lower in 2016 compares to 2015 . The number of solar cells has doubled in 2016 and for that reason the existing cells were closed down for some months.

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Decreased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason

Emissions value

(percentage)

Direction of change

Please explain and include calculation

Emissions reduction activities

40 Increase

Expansion of the solar cell system at our headquater. However, the system was not in full operation in 2016. The existing solar celle system was closed down for several months due to the expansion and produced less compared to 2015. 2015: 697 MWH = 199 tons CO2 2016: 496 MWh = 119 tons CO2 Due to this situation we have purchased more electricity and thereby an increase in CO2-emission. The emission value is calculated as: 199 - 119 = 80 80 : 199 x 100 = 40.2%

Divestment

Acquisitions

Mergers

Change in output

Change in methodology

33 Decrease Change in emissions factor as electricity purchased increasingly were produced by wind mills compared to 2015. Calculation 2015: 5463 MWh = 1887 tons CO2 2016: 5268 MWH = 1272 tons CO2 The emission value is 615: 1887 x 100 = 32,6 %

Change in boundary

Change in physical operating conditions

Decrease

Unidentified

Decrease

Other

Increase

CC12.1b

Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator:

Unit total revenue

Scope 2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

0.19 metric tonnes CO2e 16288 Location-based

17.4 Decrease

Increase in total reveneu and decrease in S1 and S2 CO2-emissions. Total revenue is calculated as a multiple of millions of DKK. This is done because the combined emissions are very low relative to total revenue. This means that the intensity figure would have more decimals than what is allowed. Calculating revenue in multiple of millions of DKK we get an intensity figure that is readable and comparable with earlier years..

CC12.3

Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator

Metric

denominator: Unit total

Scope 2

figure used

% change from previous

year

Direction of change

from previous

year

Reason for change

1.3 metric tonnes CO2e full time equivalent (FTE) employee

2405 Location-based

7.1 Decrease Decrease in total CO2-emission.

Further Information

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

CC13.2a

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits canceled

Purpose, e.g. compliance

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions

calculated using data obtained

from suppliers or value chain

partners

Explanation

Purchased goods and services

Relevant, calculated

84.3 Purchaed 32 tons copy paper. Emission factor 2.634.

Purchased copy paper. The paper is recycled copy paper.

Capital goods Not relevant, explanation provided

Relevant emissions related to "capital goods" e.g. energy consumed by buildings, IT hardware or our car fleet are accounted for in Scope 1.

Fuel-and-energy-related activities (not included in

Not relevant, explanation provided

Topdanmark does not have any significant activities that are not included in Scope 1 or 2.


Evaluation status

metric tonnes CO2e





partners

Explanation

Scope 1 or 2)

Upstream transportation and distribution


There is no CO2 emissions related to transportation and distribution, because Topdanmark provide financial products and services.

Waste generated in operations

Relevant, not yet calculated

Business travel Relevant, calculated

1986

The figure covers CO2 emission from private cars used for business purposes as well as private purposes. Therefore, the figure is higher than the real company CO2-emissions

Employee commuting

Not relevant, calculated

13

100.00%

Topdanmark has implemented various initiatives to inspire our employees to reduce the use of cars as means of commuting. Sustainable forms of transport are made more available. According to survey conducted by a local mobility group in 2017 employees use bicycles to and from their home compared to survey in 2013. Acoording to the same survey the average CO2 emission per employee is 5 kg. The total amount of CO2 emission derieved from wmployee commuting is only 13 tons which is considered insignificant.

Upstream leased assets


No CO2 emissions related to leased assets, because Topdanmark provide financial products and services.

Downstream transportation and distribution



Processing of sold products




Evaluation status

metric tonnes CO2e





partners

Explanation

Use of sold products



End of life treatment of sold products



Downstream leased assets



Franchises Not relevant, explanation provided

This is not relevant because Topdanmark's business is not based on a franchise model.

Investments Not relevant, explanation provided

As part of Topdanmark’s ordinary operations insurance reserves and pension customers’ savings are invested until the funds are paid as compensation, pension payments etc. Topdanmark is aware that there is a risk that the companies in which we invest, violate internationally recognised conventions and standards for environmental protection. To deal with this risk Topdanmark has prepared policies and procedures for our investments. Regular screening and assessment of the portfolio is performed to ensure that it does not conflict with our CSR policy and the UN Global Compact principle on environmental protection. Regarding our investments in estates we strive to focus on low carbon technologies. However, it is not considered possible or relevant to include CO2 emission data from investments in the Scope 3 account. The reason for this is that we do not have direct influence on the daily operation.

Other (upstream) Not relevant, explanation provided

No other upstrem activities


Evaluation status

metric tonnes CO2e





partners

Explanation

Other (downstream)


No other downstram activities

CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions


CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Verification or


Status in the


Type of

verification or assurance



Relevant standard

Proportion of

reported Scope 3 emissions verified (%)

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3

emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

Business travel

No change

Purchased goods & services

Change in physical operating conditions

27 Decrease

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

CC14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Type of

engagement

Number of suppliers

% of total spend (direct and indirect)

Impact of engagement

Compliance 300

Topdanmark encourages all key suppliers to integrate the Global Compact principles in their business. This is done by including a formal recommendation annexed in contracts with suppliers.

CC14.4c

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name

Job title

Corresponding job category

Pernille Fogh Christensen CSR Manager Environment/Sustainability manager

Further Information

CDP 2017 Climate Change 2017 Information Request

CDP 2017 Climate Change 2017 Information...

Documents

Transcript of CDP 2017 Climate Change 2017 Information...