SEAG Paper 3
12 May 2008
The University of Edinburgh
Sustainability and Environmental Advisory Group (SEAG)
12 May 2008
Carbon Disclosure Project
Brief Description of Paper
This paper outlines a proposal that the University of Edinburgh Endowment Fund becomes a
signatory of the Carbon Disclosure Project.
The University’s endowments are held in the University of Edinburgh Endowment Fund which is
overseen by the University’s Investment Committee and in the University of Edinburgh Norman
Salvesen Emphysema Research Fund overseen by Trustees appointed by the University Court.
In line with its Socially Responsible Investment Policy the University subscribes to Baillie
Gifford’s policy of active dialogue and engagement with the companies in which investments are
made, in regard to their policies on issues such as sustainability, environmental impact, human
rights and employee welfare. Further details of Baillie Gifford’s approach are available on their
website: http://www.bailliegifford.com/.
Action Requested
SEAG is invited to recommend to the University’s Investment Committee and the Court that the
University becomes a signatory of the Carbon Disclosure Project (CDP) on behalf of the University
of Edinburgh Endowment Fund and the Norman Salvesen Emphysema Research Fund.
Resource Implications
Does the paper have resource implications? No
Risk
Does the paper include a risk analysis? No. There are no material risks.
Equality and Diversity
Does the paper have equality and diversity implications? No
Freedom of information
Can this paper be included in open business? Yes
Further information
For more information see www.cdproject.net
Originator of the paper
Craig Mackenzie, Director,
Carbon Benchmarking Project
University of Edinburgh Business School
2 May 2008
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UoE Endowment Fund as Signatory to Carbon Disclosure Project (CDP)
It is proposed that the University of Edinburgh becomes a signatory of the Carbon Disclosure
Project (CDP) on behalf of the Endowment Funds held.
Background
The CDP is an independent not-for-profit organisation that works on behalf of over 300 institutional
investors (including the University’s asset manager, Baillie Gifford), with a remarkable $50 trillion
of assets under management, to encourage the world’s 3,000 largest companies to disclose
information on their carbon emissions, the risks climate change poses to their business, and their
strategy for responding.
CDP has been remarkably successful at encouraging disclosure, with over 2,000 companies
providing responses. Over 8 years CDP has become the standard for carbon disclosure methodology
and process. The CDP website is the largest repository of corporate greenhouse gas emissions data
in the world.
The University already has a good relationship with CDP. Dr. Craig Mackenzie, at the Business
School, has been involved with the organisation since its launch in 2000, and advises CDP on its
strategy.
Benefits
There are two main benefits from this process.
1. The provision of improved corporate carbon data to investors helps financial analysts make
better judgement of corporate risks and improves their ability to price assets.
2. The mere fact that companies are being asked by their largest shareholders to measure and
disclose their carbon emissions, risks and strategies is helpful in encouraging companies to
manage carbon more actively.
Both of these benefits are likely to serve the long-term interests of the scheme.
The approach taken by the CPD would seem to be consistent with the ‘engagement’ approach to
social and environmental issues endorsed by the University Court in the SRI policy statement.
In addition, supporting the CDP is also a useful step in allowing the Endowment Fund to indicate to
students and other interested parties that it is actively moving forward on the sustainability agenda.
There are also wider benefits to the University from becoming a signatory. Via the Endowment
Fund, the University will gain access to the CDP carbon database, which is a potentially valuable
research resource, which would be directly useful to research underway within the Business School.
Practicalities
Becoming a signatory is a straight forward process. It is done by means of a simple form on the
CDP website. There is no charge for becoming a signatory and it does not obligate the University
itself in any additional reporting.
CDP sends an annual questionnaire to companies to which it appends a list of supporting investors.
If the Endowment Fund becomes a signatory, its name would simply be added to this list.
For more information see www.cdproject.net and the UoE Socially Responsible Investment Policy
at http://www.aaps.ed.ac.uk/Governance/SociallyResponsibleInvestment2006.pdf
Craig Mackenzie, Director,
Carbon Benchmarking Project
University of Edinburgh Business School
2 May 2008
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