CARBON DISCLOSURE PROJECT - Particulares...CGD’s response to Carbon Disclosure Project 2016 | CGD 3 Enter Periods that will be disclosed Thu 01 Jan 2015 - Thu 31 Dec 2015 CC0.3 Country

CARBON DISCLOSURE PROJECT

Climate Change 2016 Information Request

Responses of Caixa Geral de Depósitos

CGD’s response to Carbon Disclosure Project 2016 | CGD

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INTRODUCTION

CC0.1

Introduction Please give a general description and introduction to your organization.

Caixa Geral de Depósitos (CGD) is a Portuguese state-owned banking corporation, and the largest bank in Portugal. CGD is Portugal's largest public sector banking

corporation, established in Lisbon in 1876. CGD employs around 16 thousand people worldwide and is represented with Branches, Representative Offices and

Affiliated Banks in 23 different countries on 4 continents (Europe, Africa, America and Asia).

CGD Group continued to lead the domestic market, in 2015, both on a level of deposit-taking as in lending. CGD had a 21.8% market share of loans and advances

to customers, in December 2015, with corporate and individual customer shares of 17.7% and 23.5%, respectively and a 26.5% market share of mortgage loans. Its

market share of customer deposits was 28.2%, with special reference being made to the individual customers’ segment with 31.8%. The Group is in a leading

position in the unit trust investment funds management activity, with a 4.2 pp increase in Caixagest’s market share over 2014 to 35.1%.

On the basis of a strong corporate and the highest ethical standards, rigour and professionalism, CGD is permanently geared with the willingness to change. It is

currently prepared to cater for the needs and expectations of millions of customers and the challenges of market globalisation.

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).


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Enter Periods that will be disclosed

Thu 01 Jan 2015 - Thu 31 Dec 2015

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:

Portugal

Brazil

Cape Verde

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.

EUR(€)

CC0.6

Modules

As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto

component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and

companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire.

If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but

will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected].


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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. If you

wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Further Information


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MANAGEMENT

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

The General Sustainability Committee has the highest level of responsibility for climate change related issues within the company. This committee is chaired by

CGD’s Chairman of the Executive Board and co-chaired by the Director responsible for Sustainability. The committee meets every three months and reports directly

to the Executive Board. The committee is responsible – among other issues – for supervising the progress and status of CGD’s Low Carbon Programme (formerly

called Caixa Carbono Zero Programme), as well as analysing and deciding upon new proposals regarding the company’s climate change programme. The

committee’s responsibilities further entail the submission of proposals and budgets related with these initiatives to the Executive Board, where these issues are

further discussed before receiving formal approval. The General Sustainability Committee is also composed of a main Coordinating Team and representatives of

the various working groups that support the implementation of the actions approved. The Coordinating Team is responsible for supervising all of the projects

approved, for suggesting new actions and measures within the working groups and the Sustainability Committee. Any of the eight existing Working groups can

suggest, support and implement climate change related projects. Each of these groups elects a representative for the General Sustainability Committee. Working

groups are composed of divisional managers and directors in order to facilitate implementation of the measures and projects approved. Ultimately, the General

Sustainability Committee ensures that CGD is aligned with the principles of sustainable development, advising the Executive Board on decisions concerning

sustainability in general and climate change in particular.

CC1.2

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

Yes


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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

All employees Monetary reward

Emissions reduction project

Emissions reduction target

Energy reduction project

Energy reduction target

Efficiency project

Efficiency target

Behaviour change related indicator

CGD promotes an annual contest accessible to all employees. CGD established, “Box of Ideas” where 6 specific categories of which two (Sustainability and Cost Reduction, that includes energy consumption reduction, GHG emissions reduction, efficiency projects) were directly linked to climate change. The contest awards 7 different prize categories, all of which are transformed into a financial remuneration either in the form of financial prize (this is the case of the selected ideas for each of the contest categories and the overall best idea, regardless of the category) or in the form of vouchers (these are distributed among the best ideas of the month). The winners of the contest also have the chance to actively participate in the viability study and the implementation of their proposed ideas. The ideas are selected according to their fulfilment of the following 5 characteristics: (i) Innovation and Creativity; (ii) Alignment with CGD’s goals; (iii) Impact in business and CGD’s image; (iv) Concretization Potential; and (v) Detail and quality of the presentation of the idea.

Energy managers Recognition (non-monetary)




Annual energy reduction targets and implementation/communication of CGD’s climate strategy (CGD’s Low Carbon Programme) yearly action plans are part of the individual objectives of CGD’s energy management team. Fulfilment of these objectives is formally reviewed in the annual employee evaluation process. Positive evaluation contributes to career progression, but no financial remuneration is directly tied to it.

Environment/

Sustainability managers

Recognition (non-monetary)




Behaviour change related indicator

Definition, successful implementation and communication of CGD’s Low Carbon Programme yearly action plans are part of the individual objectives of CGD’s sustainability coordination team. Fulfilment of these objectives is formally reviewed in the annual employee evaluation process. Positive evaluation contributes to career progression, but no financial remuneration is directly tied to it. Also, the group work responsible for maintaining the Environmental Management System, have central objectives, goals and actions to be fulfilled. The achievement of these goals (e.g. energy reduction target; GHG emission reduction target) and the respective results are presented to Board of Directors, impacting the evaluation process and career progression of the elements involved..

Further Information


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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

Six-monthly or more frequently

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

All geographies where CGD has material operations.

> 6 years

Risks and opportunities related to climate change, perceived by CGD, have so far been part of the overall approach to governance and compliance. The Risk and the Product working groups must report results (including assessment of impacts of risks/opportunities, frequency of monitoring and criteria for determining materiality and priorities) of their work to the General Sustainability Committee every three months, being the results afterwards also reported to the Executive Board. Also, through the implementation of the Environmental Management System, CGD made available a set of specific contacts to identify climate-change related risks and opportunities.

CC2.1b

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

CGD considers that its activities are affected by the following risks: regulatory, physical, reputational and changing consumer behaviour; and opportunities:

regulatory; reputational and market demands for low carbon products and services. In order to better understand how these aspects impact CGD – namely at

company and asset level –, the Bank has formed two working groups within its Sustainability Governance Model: the Risk Group and the Product Group, which are

responsible for analysing and identifying the environmental aspects – including climate change risks and opportunities – that must be considered and integrated in


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business operations and in new and existing products and services. Climate change risks and opportunities are assessed at an asset level (e.g. weather related

impacts can affect individual facilities) as Portugal could be one of the most affected countries by climate change. Risks are assessed for different assets, in order to

prevent possible financial losses and reduce operational costs of individual facilities, anticipating regulatory risks, such as regulatory drivers or fuel/energy taxes,

risks driven by change in physical climate parameters that affect specific assets (assets located near coastal areas), and other risks. As an example, CGD has

emergency plans, highlighting the Headquarter’s Emergency Plan. At company level, risks and opportunities are also assessed (e.g. reputational or change in

consumer behaviour drivers for high/low performance of CGD regarding climate change) as it may affect the Group as a whole. CGD mainly tries to anticipate the

risk of change in consumer behaviour (demand for low carbon products) and reputational risks related to low performance regarding climate change, as stakeholders

are more conscious of climate change issues and are increasingly demanding low-carbon products and a more efficient performance.

CC2.1c

How do you prioritize the risks and opportunities identified?

In order to mitigate risks and develop opportunities, CGD seeks to ensure an appropriate internal control environment by using a risk management system, the

Operational Risk and Internal Control Programme. The method used by the Group for operational risk management is integrated in the assessment of the internal

control system. Prioritization is done considering the results from relative materiality that risks and opportunities might present to the business. The risk management

framework considers criteria such as likelihood/frequency of occurrence and the scale of impact that risks/opportunities might pose, prioritizing the most material

risks and opportunities. In order to guarantee continuity of its activities, CGD has a general business continuity strategy, based on two fundamental pillars:

operational continuity and technological recovery. Also, CGD formally adopted UNEP’s Financial Initiative questionnaire on environmental risks that was applied to

institutional clients. Compliance risks associated with existing GHG compliance mechanisms and other CC aspects are assessed and evaluated individually at the

project finance level. The evaluation of these projects encompass a designated team responsible for collecting and analysing all aspects related with environmental

legislation in place, including CC related policies. Supplier management is also an integral part of CGD's sustainability strategy. CGD therefore manages the risks in

the value chain. CGD was the first Portuguese bank to start with the implementation of its EMS according to ISO 14001, having the certificate in 2014. In the

definition of the EMS, all environmental aspects were analysed, including GHG emissions and CC, identifying related risks and opportunities. The EMS also

foresees the identification and implementation of control and mitigation measures; monitoring indicators and reference documents.


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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

(i, ii & iii) In order to better respond to climate change related issues and align these issues with the business strategy, CGD developed the Low Carbon Programme

(formerly called Caixa Carbono Zero), in place since 2007, which results from a reflection of the risks and opportunities that climate change poses to its activity. CGD

was the first Portuguese bank with an integrated action plan built upon five vectors: 1. Quantification of GHG emissions; 2. Reduction of energy consumption and

GHG emissions; 3. Offsetting unavoidable GHG emissions; 4. Low carbon financing; 5. Community awareness-building. CGD has allocated the operational

responsibility of the Programme under the supervision and coordination of its General Sustainable Committee. This structure is responsible for supervising the

progress and status of CGD’s climate change strategy, as well as analysing and deciding upon new proposals regarding the company’s climate change programme,

in alignment with the business strategy. The Committee’s responsibilities further entail the submission of proposals and budgets related with these initiatives to the

Executive Board where these issues are further discussed before receiving formal approval. CGD’s strategy were influenced by CC, as the company saw a need for

adaptation, due to stringent regulatory changes (e.g. European Directives regarding energy efficiency in buildings and transport), stakeholder expectation (better

environmental and climate change-related performance) and the identification of low carbon opportunities (development of low carbon products). CGD’s business

strategy has been taking a progressive advantage of the opportunities posed by energy efficiency and GHG emission reduction measures and by the development

of new financial products. CGD is financing a low-carbon economy, offering a set of specific financial solutions with greater carbon efficiency, namely: Personal

loans for renewable energies; Caixa Viva card; Caixa Carbono Zero card; Caixa Webuy Prepaid Card; among others.


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(iv & v) In the short term strategy, since 2006 CGD has been introducing changes in operational practices, as CGD has been investing in energy efficiency and

renewable energy projects in its own buildings. Investment in renewable included the installation of 1,600 m2 of thermal solar panels on the top of the bank’s

headquarters and the installation of over 1,450 solar photovoltaic panels in 80 of its commercial agencies. These actions act not only as a path to a decarbonised

economy where CGD is set on leading by example. Investment in energy efficiency includes installation of state-of-the art efficient equipment and optimization of

working parameters of HVAC, lighting systems, data centres and other ICT equipment. Altogether, these measures provided for and overall reduction in electricity

consumption of 27 GWh in Portugal, compared to 2006 levels, meaning an average reduction of 3 GWh/year. Still regarding the short-term strategy, CGD set a

formal overall GHG emissions reduction target (-15% CO2e/FTE employee by 2015, compared to 2006) and an additional sectorial energy reduction target (-4%

kWh/FTE employee – excluding Data Centers – by 2015, compared to 2006).

In terms of its long-term strategy CGD has set out a number of goals such as progressively enlarging its GHG emissions reporting to the rest of the group’s activities;

continue to invest in energy efficiency and renewable energies in its buildings (projects with long payback periods – more than 10 years); established a set of

environmental criteria – including climate change related aspects – that will serve as a basis of selection among CGD’s suppliers and integrating environmental

aspects – including climate change risks and opportunities – in business operations and in new and existing products and services.

(vi) CGD considers that its strategy confers a competitive advantage not only in what refers to reputational gains but also in market share and revenues. Offering a

wide range of low-carbon products is a competitive advantage for CGD against competitors. Examples of such products are: (a) Zero Carbon credit card, the first

Class-A credit card in terms of climate protection efficiency. Currently new cards are not issued; (b) Solution Caixa Business - Renewable Energy: this solution

promotes business investment in the area of renewable energy, e.g. solar thermal and photovoltaic, hydro and wind. Encompassed investments aimed at energy

saving and microgeneration, as well as the installation of parks for the production of energy. CGD granted credit for the amount of €200k in 2015; (c) Personal Credit

Renewable Energy: In 2015, CGD continued to provide a range of solutions to support the companies that decide to invest in energy efficiency, use of renewable

energy and microgeneration (solar, wind & hydro). €14k of credit granted in 2015; (d) Special Investment Fund Caixagest Renewable Energy: a special investment

fund that only invests in renewable energy and other related activities. The main objective of the fund is to provide participants with access to a diversified portfolio of

assets associated, directly and indirectly, to renewable energy, environmental quality and carbon assets. The fund held under management, in 2015, € 12.5 million;

(e) Other low-carbon cards, such as Caixa Viva card (debit card for automatic payments for travelling on Lisbon public transport -subway, bus, boat or train-

encouraging the use of public transport, and Caixa Webuy prepaid card (card issued only in paper format, avoiding the production of plastic and GHG emissions

associated).

The most substantial business decisions influenced by CGD’s climate change strategy are: Investment in energy efficiency measures, both in main buildings and

retail network (e.g. changes in lightning; replacement of HVAC equipment; optimization of operation of the new Centralized Technical Management System);

Production of renewable energy: solar thermal energy at headquarters (3,457 GJ produced in 2015) and photovoltaic energy at commercial network (1,684 GJ

produced in 2015); Launch of Caixa Cabaz Renováveis Agosto 2018 (tracker deposit), associated with the medium term energy/renewables market of companies

with climate change concerns, with a balance of €35,907 thousand in deposits at the end of 2015. In the renewable energies area in Portugal, CaixaBI was involved

in financing First State’s acquisition of a wind portfolio and an increase of the installed capacity of a Tecneira wind portfolio, namely participation in financing the

acquisition of Finerge (a 642 MW portfolio), for the amount of €605M by First State Investments (Australia) from Enel Green Power (Spain) and participation in


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financing the installation of additional capacity (superheating) of up to 20MW, in wind farms operated by Lestenergia, for the amount of €30 M.


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CC2.2b

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

CC2.2c

Does your company use an internal price of 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 of 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)

No

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?


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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?

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?

CC2.3g

Please explain why you do not engage with policy makers?

CGD is always attentive to carry out any activities that might have the potential to influence climate change policies. However, in the reporting year (2015), there were no cooperation opportunities with policymakers in the geographies in which CGD operates. Notwithstanding this statement, CGD is a member of Portuguese Business Council for Sustainable Development, and participates in its ‘Energy and Climate’ Working Group. The aim of the group is to produce a set of updated and relevant information on the way the leading Portuguese companies can drive direct and indirect emissions reductions throughout society, thus providing insight for the development of the most efficient policies. In 2015 there were no new developments in this working group. Also, in past years, CGD collaborated with the Portuguese Government with the purpose of structuring financial products (climate finance), directed at companies and the general public, in order to help meet the energy efficiency measures specified in the National Action Plan for Energy Efficiency. The most relevant partnership that resulted from this engagement is related


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to the Solar Thermal Campaign this campaign followed a protocol with the Portuguese government for the promotion of solar thermal equipment for residential buildings. Althoug, this project wasn’t active in 2015.

Further Information


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CC3. Targets and Initiatives

CC3.1

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

Intensity 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

(metric tonnes CO2e)

Target year

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

Target year

Is this a science-based target?

Comment

Int1

Other: Scope 1 + Scope 2 (market-based) + Scope 3

96% 15%

metric tonnes CO2e per unit FTE employee

2006 4.86 2015

No, but we anticipate setting one in the next 2 years.

CGD set a formal overall GHG emissions reduction target, reduction of 15% CO2e/FTE employee by 2015, compared to base year 2006, and an additional sectorial energy reduction target, reduction of 4% in kWh/FTE employee (excluding Data Centres) by 2015, compared to base year 2006. CGD is currently working on the implementation of new targets, with the aim of being science-based targets.


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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 17 Decrease 13 The combined effect of anticipated changes both in scope 1+2 and in scope 3 emissions will result in an overall absolute emissions reduction of 17% (approximately 9,000 t CO2e/year) at target completion.

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

CC3.1e

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


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ID % complete

(time)

% complete

(emissions or renewable energy)

Comment

Int1 100% 100%

CGD exceeded the target set in 2011, for 2015, as it was achieved a 18% reduction in GHG emissions/FTE employee in 2015, compared to baseline year (2006), due to the implementation of several carbon reduction activities. The target set for 2015 was 4.13 t CO2e/FTE employee (15% reduction) and CGD attained, by the end of 2015, a performance of 4.01 t CO2e/FTE employee.

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


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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


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Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes

CO2e (only for rows marked *)

Under investigation 0 0

To be implemented* 0 0

Implementation commenced* 0 0

Implemented* 2 335

Not to be implemented 0 0

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

Energy efficiency: Building services

Implementation of several energy efficiency measures at Headquarters. Nature: replacement of several lighting system for LED technology (e.g. at cafeteria, car parks); replacement of illuminated sign boards by LED technology; reduction of lighting levels (at east and west entrances); time optimization of HVAC systems; among others.

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Scope 2 (market-based)

Voluntary

66574 39065 <1 year 16-10 years

Implementation of several energy efficiency measures at Headquarters. namely: replacement of several lighting system for LED technology (e.g. at cafeteria, car parks); replacement of illuminated sign boards by LED technology; reduction of lighting levels (at east and west entrances); time optimization of HVAC systems; among others.


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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

Energy efficiency: Building services

Implementation of several energy efficiency measures in the branches of the commercial network. Nature: implementation of programmable controllers; replacement of HVAC equipment; implementation of new electronic ballasts; technical improvements in the intrusion central, among others.

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Voluntary

8635 5935 <1 year 16-20 years

Implementation of several energy efficiency measures in the branches of the commercial network, namely: implementation of programmable controllers; replacement of HVAC equipment; implementation of new electronic ballasts; technical improvements in the intrusion central, among others.


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CC3.3c

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

Method Comment

Dedicated budget for energy efficiency

Decision making process is based on combined criteria of cost reduction and environmental performance enhancement. CGD has been investing for several years in energy efficiency measures, such as replacement and optimisation of HVAC systems, replacement and optimization of lighting systems, installation of photovoltaic systems, among others.

Partnering with governments on technology development

In association with the government, in order to increase energy efficiency and hence promote CO2 emission reductions, CGD provides financing to Small and Medium Enterprises and Individuals for acquisition of efficient equipment

Employee engagement

CGD has, under the Low Carbon Programme, a commitment to promote environmental and carbon literacy with its stakeholders. More than raise awareness of the issue of climate change, CGD alerts its employees, customers, suppliers and society in general to behaviours and best practices that will reduce greenhouse gas emissions and promote more sustainable practices. Along with the EMS implementation process, CGD developed several specific actions of training for the adoption of good environmental practices (climate change related), such as training tutorial for employees of the headquarters and training to suppliers in the headquarters of CGD.

CC3.3d

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

Further Information


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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/Sectio

n reference Attach the document

Comment

In mainstream reports (including an integrated report) but have not used the CDSB Framework

Complete

CGD Annual Report 2015: pages: 23; 40-44; 69-70; 72-73; 93; 437; 440

https://www.cdp.net/sites/2016/88/2588/Climate Change 2016/Shared Documents/Attachments/CC4.1/CGD_Annual Report 2015.pdf

CGD publishes information about its response to climate change and GHG emissions performance in its Annual Report 2015. Please see pages: 23; 40-44; 69-70; 72-73; 93; 437; 440. Document also available at: https://www.cgd.pt/English/Investor-Relations/Investor-Information/Financial-Information/CGD/2015/Documents/CGD-Annual-Report-2015.pdf

In voluntary communications

Underway - previous year attached

CGD Sustainability Report 2014: p. 11; 20; 57-58; 87-93; 96; 104; 109-111; 114; 116.

https://www.cdp.net/sites/2016/88/2588/Climate Change 2016/Shared Documents/Attachments/CC4.1/CGD_Sustainability Report 2014.pdf

CGD publishes information about its response to climate change and GHG emissions performance in its Sustainability Report 2014. Please see pages: 11; 20; 57-58; 87-93; 96; 104; 109-111; 114; 116. Document also available at: https://www.cgd.pt/English/Institutional/Sustainability/Reporting-and-performance/Sustainability-Reports/2014/Documents/CGD-Sustainability-Report-2014.pdf

Further Information


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RISKS AND OPPORTUNITIES

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 regulation

Risks driven by changes in physical climate parameters

Risks driven by changes in other climate-related developments

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

Uncertainty surrounding new regulation

Exposure of CGD’s clients to mandatory compliance mechanisms and therefore their compliance costs represent future credit risks for CGD. This is true for future regulations that may result from existing agreements and

Other: Credit compliance risks

3 to 6 years

Indirect (Supply chain)

About as likely as not

Medium

Regulatory policies related to GHG emissions are susceptible to affect CGD's clients' financial conditions, due to compliance costs and may lead to a weakened credit position and thus represent credit

Compliance risks associated with existing GHG compliance mechanisms are assessed and evaluated individually at the project finance level, through an environmental due diligence process. The evaluation of these projects encompass a designated team responsible for collecting and analysing all aspects related with

Main projects financed were: acquisition of Finerge (a 642 MW portfolio), for the amount of €605 million and the installation of additional capacity (superheating) of up to 20MW, in wind farms operated by


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Timeframe

Direct/ Indirect


Estimated financial


Cost of management

regulations but also from new regulations arising from ongoing negotiations where more stringent emission reduction goals may be set or new sectors could be included in, existing or future, mandatory cap-and-trade schemes, carbon taxes, emissions reporting obligations, energy efficiency standards and fuel/energy taxes and regulations. If a CGD client (e.g. industrial clients of CGD) fails compliance with environmental regulation (energy & climate change related) and incur in environmental infractions and

risk. Also, if clients incur in environmental fines, CGD may be held responsible as a financier. According to Portuguese Law n. º 89/2009, financial implications for serious environmental infractions may be €38,500-70,000 in case of negligence and €200,000-2.5 million in case of fraud.

environmental legislation in place, including climate change related policies. CaixaBI ensures CGD finance activity. The assessment of environmental and social risks in project finance is performed in three phases: during the due diligence (pre-employment) and during the phases of construction and operation. During the first 2 stages the monitoring of these risks is done by independent consultants (technical and legal). Criteria are defined in recruitment and assembly operations in assessing projects and companies applying as environmental decision are required by law, in the form of Environmental Impact Statement/Assessment for all major financing of infrastructure projects. The project loan portfolio accompanied by CaixaBI project finance amounts to €4139M, of which €509M correspond to projects in renewable energy. It is worth highlighting the following

Lestenergia, for the amount of €30 million.


27


Timeframe

Direct/ Indirect


Estimated financial


Cost of management

the company does not have funds to face fines and penalties, CGD as a financier can be held responsible under the new policy of environmental responsibility, in addition to incurring in other financial losses arising, for example, from unpaid loans.

financing: acquisition of Finerge (642 MW, €605M) and the installation of additional capacity of up to 20MW, in wind farms operated by Lestenergia (€30M). Still at carbon and environmental level, the CGD Group offers insurance products aimed to comply with the requirements set by the Environmental Liability Directive.

Fuel/energy taxes and regulations

Operational costs related to transportation (fuels) have been rising for the past few years in Portugal. This represents a risk to CGD as these rising costs need to be considered in the overall strategy of the bank for adaptation and mitigation of climate change and to minimize the increase in operational

Increased operational cost

1 to 3 years

Direct Likely Medium

The financial implications, if CGD do not adapt, will be an increase in energy and fuel consumption, leading to an increased cost in transportation and fuels. Analysing the fuel prices in the last 5 years, knowing that consumption of CGD remained stable (fluctuation not above 1%) and taking into

CGD has invested in the acquisition of more efficient vehicles (hybrids) and internal mobility plans that reduce the need for business travel – namely, investing in new communications technologies and increasing the use of public transport. CGD Mobility Plan is part of CGD’s medium/long term Low Carbon Programme and helps to promote better mobility options, optimising the choices inherent in the accessibility of people, goods and services. The

No direct costs (zero) are associated to the development of CGD Mobility Plan. Indirect costs, however not significant, are related with employee-hours. Regarding the Caixa Viva Card, in 2015 it was traded an amout of €72.6M with the card.


28


Timeframe

Direct/ Indirect


Estimated financial


Cost of management

costs. New taxes and regulation regarding fuel and energy may affect the bank, specifically as CGD has its own vehicle fleet (diesel vehicles). However, there is a high level of uncertainty associated to this risk and how it might affect CGD in the future as the price of fuels are strongly affected by several factors, such as: political and geographical factors; oversupply; growth of unconventional oil production, among others.

account average fuel prices in Portugal, there was an increase in prices between 2010 and 2015 of 22% for diesel and 5% for gasoline. If fuel consumption of CGD remain stable until 2020, and assuming a similar increase in average fuel prices for the same period, financial implication will be around €333k.

proposed actions cover a range of areas of intervention: Parking; CGD’s Own Fleet; Visitors; Suppliers of goods and services; Work-related Mobility; Employees’ home-work commuting. Under its Low Carbon Programme CGD is developing a Plan for managing the mobility for its employees, as well as its partners and suppliers of goods and services. CGD also offers some solutions, such as: digital media platforms (video conferencing and home banking services); promotion of public transport in employee commuting; awareness training to preventive driving to employees. CGD also launched a low-carbon card (Caixa Viva card), a debit card for automatic payments for travelling on Lisbon public transport -subway, bus, boat or train. It is an incentive to use public transport to the detriment of other personal transportation options with higher negative impact on the


29


Timeframe

Direct/ Indirect


Estimated financial


Cost of management

environment; and the elimination of the board paper ticket, since all movements are recorded in transport applications. In 2015, it was traded an amount of €72.6M with the card.

CC5.1b

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


Timeframe Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of management

Uncertainty of physical risks

Extreme events such as extreme precipitation or droughts or sea level rise are most of the time unpredictable. CGD as a worldwide bank face the physical risks associated to climate change parameters. Even CGD is a global firm, the bank has operations in more than 20 countries (4


>6 years Direct About as likely as not

Medium

Risks associated with sea-level rise and inland and coastal floods pose direct risks to many of CGD's infrastructures. However, the occurrence of extreme events derived from changes in physical parameters may suppose loss of assets, damage in CGD facilities and inability to do business, leading to financial

For managing these risks, CGD has CaixaSegura Program: Under this program training actions are developed to teams of first intervention and to emergency response teams (ERE), in order to enable employees with the knowledge and skills to enable them to operate with maximum effectiveness in case of emergency. CGD

It can be stated that there is a cost associated with the securing of the most vulnerable facilities, mainly regarding multi risk insurance premiums. CGD paid more than €300k for securing two important facilities, namely for the insurance of headquarters building and the building located in Avenida 5 Outubro. CGD also paid more


30



Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of management

continents), although main operations are in Portugal (mainland and island). As Portugal could be one of the most affected countries by climate change, CGD can be affected by extreme precipitation, droughts, sea level rise and other physical risks driven by changes in climate parameters. Also, outside Portugal, in other vulnerable countries, due to greater exposure and lower adaptive capacity, physical risks may lead to disruption of operations and difficulty in reaching customers due to extreme weather events.

losses. The Capital Insurance for the two most important facilities of CGD (headquarters building and building at Av. 5 Outubro) was over €200 million.

also conducts several total and partial drills in its facilities, in order to assess the activation of the Business Continuity Plan and Extended Crisis Cabinet and to test the Internal Emergency Plan in its various aspects and promote the operational level coordination with the joint Operational Command Post, consisting of civil protection agents. The body responsible for this task is the Prevention, Security and Business Continuity Office. The Business Continuity Plan CGD finds solutions to prevent disasters that lead to inoperability widespread physical infrastructure - considering jobs and technological

than €170k for the insurance of ATMs. Also, management costs associated with the Business Continuity Office are integrated into existing budgets.


31



Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of management

Examples of these countries in which CGD operates are Brazil, Cape Verde, Angola, Mozambique, São Tomé e Príncipe.

support - or inability widespread displacement of employees to their jobs. Also, since 2014, there is in place a special environmental responsibility insurance that covers any environmental damage. CGD holds insurance coverage for its facilities and in the case of its clients CGD demands insurance coverage that covers the banks investment in a particular property or operation. Insurance costs for facilities can be elevated, as CGD had, by the end of 2015, 1,253 agencies (764 in Portugal and 489 outside Portugal) and also important buildings.

Change in mean (average) temperature

Change in temperature extremes, e.g. increase of days


3 to 6 years


According to ERSE, average electricity prices increased 11% in

CGD has been investing in the production of renewable energy

The implementation of energy efficient measures in the


32



Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of management

with very high or very low temperatures, will increase energy demand, both for cooling in the summer and heating in winter in CGD’s agencies of the commercial network and main buildings (e.g. Headquarters in Lisbon). This is a current risk in Portugal, due to the unpredictable changes in weather. Cold and warm air masses affect CGD, increasing the energy demand (mainly electricity). For this purpose, CGD has been adapting its systems in order to provide comfort to its employees and customers, maintaining the average temperature of its buildings and

the period 2010-2015. Given this trend, the financial implications could be an increase in the cost of electricity for 2020 of around €1.7 million for CGD if the Bank does not adapt its corporate buildings and commercial branches in order to obtain a more efficient performance in terms of energy efficiency.

and introduced several energy efficiency (EE) measures in its corporate buildings and commercial network. Main projects are: 1. Solar thermal plant at the Headquarters: collectors installed across the 1,600 m2 roof at headquarters produce energy for heating and cooling the water necessary for the centralised air-conditioning and sanitary facilities (960 MWh produced in 2015). 2. Solar photovoltaic microgeneration within the branch network: installation of solar photovoltaic panels in more than 80 CGD branches. A total of 1,450 panels (468 MWh produced in 2015). CGD implemented other measures in 2015, namely: in

bank’s commercial network amounted for around €10k. The investment made in the bank’s headquarters for energy efficient measures described amounted for around €65k. The investment made in the solar thermal power plant, in the headquarters building, was €1 million. For the micro generation programme, the investment amounted €1.8 million for 80 agencies.


33



Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of management

facilities at an acceptable temperature.

Portugal, a) Headquarters: optimization of schedules and operating algorithms of facilities; replacement of lightning system with LED technology (e.g. in the cafeteria and parking). Reduction of around 357 MWh. b) Headquarters and commercial network: optimization of schedules associated with HVAC systems. Reduction of around 316 MWh. c) CGD kept the Green program, namely: containerisation of data center; server virtualization; automatic sleep process of computers located in the headquarters building after working hours; other energy efficiency measures


34



Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of management

associated with the data center cooling, among others.


35

CC5.1c

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

Risk driver

Description Potential impact



Estimated financial


Cost of management

Other drivers

CGD faces competitive risks posed by competitors and public opinion regarding climate change issues. Nowadays, climate change is a topic of public debate and can have significance reputational impacts in CGD, positive and negative. The absences of concerted efforts to reduce own GHG emissions or the carbon intensity of projects financed will for certain increase the bank’s exposure to reputational risks. For this purpose, the bank is taking several actions in order to improve its performance and mitigate and reduce reputational risks. In this

Reduced stock price (market valuation)

3 to 6 years

Direct More likely than not

Medium

If CGD is perceived by stakeholders as a company not committed with climate change, it is reasonable to assume that the brand could loss up to 1% of its value. According to Brand Finance, the value of brand ‘Caixa Geral de Depósitos’ was €524 million in 2015. Assuming a conservative scenario of 1% brand depreciation, the financial implication may go up to € 5.2 million.

In order to manage these risks, CGD is actively committed to its climate change strategy: the Low Carbon Programme. CGD considers that the programme greatly reduces its exposure to these risks. This programme results from a strategic analysis of the R&O that climate change poses to its activity. It is built upon 5 vectors: 1. Quantification of GHG emissions; 2. Reduction of energy consumption/GHG emissions; 3. Offsetting unavoidable GHG emissions; 4. Low carbon financing; 5. Community awareness-building. CGD continued to provide a set of specific financial solutions that offer preferential conditions for clients to access to goods/services more carbon efficient, such as: Renewable

For the Special Investment fund Caixagest Renewable energy, the fund held under management, in 2015, €12.5 million. Regarding Solution Caixa Business - Renewable Energy, CGD granted financing for the amount of €200k. For renewable energies credit, CGD granted financing for an amount of €14k. There are no plans to discontinue these investments for financing low carbon economy as the financial and reputational returns are bigger than the investments made. For Caixa Carbono Zero, transactions on this card, in


36

Risk driver




Estimated financial


Cost of management

context, CGD implemented in 2007 the Low Carbon Programme, an initiative unique in the Portuguese financial sector, a programme that since 2007 to current date has aligned CGD with international best practice in relation to facing climate change as a priority issue. Besides, CGD faces changing consumer behaviour as a risk, while customers are demanding more sustainable and carbon efficient products and services. Nowadays, CGD’s stakeholders (e.g. investors, shareholders, clients) are more informed and aware of environmental impacts, especially the ones regarding climate change. If CGD is not

energies (RE) credit, in partnership with several companies; Solution Caixa Business - RE: a solution promotes business investment in the area of RE, e.g. solar thermal and photovoltaic, hydro and wind. Encompassed investments aimed at energy saving and microgeneration; Special Investment Fund Caixagest RE: only invests in renewable energy and other related activities. The main objective of the fund is to provide participants with access to a diversified portfolio of assets associated, directly and indirectly, to RE, environmental quality and carbon assets; Caixa Carbono Zero: this card provides customers with carbon credits and is the only card enabling CO2 emissions to be offset through the forestation; EIB lines: for financing energy savings and environmental protection projects.

2015, totalled €101k. For EIB lines, loans of €5.5 million were issued in 2015.


37

Risk driver




Estimated financial


Cost of management

prepared to serve its customers in the demand of low carbon products and services (e.g. financing renewable energies), it may face reduce demand for goods and services, meaning a competitive disadvantage.

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

CC5.1e

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


38

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

Further Information


39

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 regulation

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


Timeframe Direct/Indirect Likelihood Magnitude of impact

Estimated financial

implications

Management method

Cost of management

Fuel/energy taxes and regulations

Fuel/energy taxes and regulations is a driver for implementation of measures related with energy efficiency and renewable energy. It and represents an opportunity for the installation of low carbon equipment and for implementation of energy efficiency measures that

Reduced operational costs

1 to 3 years


The implementation of energy efficiency measures and emission reduction activities in the bank’s commercial network and headquarters means a financial opportunity of around €75k per year. This value increases when considering other initiatives

CGD has implemented for the past years several energy efficiency measures in order to reduce its electricity consumption related to heating and cooling. CGD invested in renewable energy, including the installation of 1,600 m2 of thermal solar panels on the top of the bank’s headquarters

The installation of energy efficiency measures in the bank’s commercial network amounted for around €10k. The investment made in the bank’s headquarters amounted for around €65k. Both investments had a payback period less than one year.


40

Opportunity driver



Estimated financial

implications

Management method

Cost of management

will reduce operational costs of main CGD central buildings (e.g. Headquarters in Lisbon) and commercial agencies in Portugal (more than 1200 branches). To this purpose, CGD is already exploring this opportunity, having implemented several initiatives in order to improve its energy efficiency, reduce operational costs and produce electricity through renewable energy (solar).

already implemented (€70k for the commercial network and €675k for the headquarter building).

(that produced in 2015 960 MWh, avoiding 470 t CO2) and the installation of over 1,450 solar photovoltaic panels in 80 of its commercial agencies (that produced in 2015 468 MWh, avoiding 229 t CO2). CGD implemented other measures in 2015, namely: in Portugal, a) Headquarters: optimization of schedules and operating algorithms of facilities; replacement of lightning system with LED technology (e.g. in the cafeteria and parking). Reduction of around 357 MWh. b) Headquarters and commercial network: optimization of schedules associated with

The investment made in the solar thermal power plant, in the headquarters building, was €1 million. For the micro generation programme, the investment amounted €1.8 million for 80 agencies.


41

Opportunity driver



Estimated financial

implications

Management method

Cost of management

HVAC systems. Reduction of around 316 MWh. c) CGD kept the Green program, namely: containerisation of data center; server virtualization; automatic sleep process of computers located in the headquarters building after working hours; other energy efficiency measures associated with the data center cooling, among others. Also, CGD became last year the first Portuguese Bank to certificate its Environmental Management System, in accordance with the international standard ISO 14001.


42

CC6.1b

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

Opportunity driver


Timeframe Direct/ Indirect Likelihood Magnitude of impact

Estimated financial

implications

Management method

Cost of management


43

CC6.1c

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

Opportunity driver

Description Potential impact Timeframe Direct/ Indirect


Estimated financial

implications

Management method

Cost of management

Changing consumer behaviour

Changing in consumer behaviour represent an opportunity to CGD as is a driver for developing low-carbon products and services. CGD’s clients in Portugal are nowadays aware of climate change impacts and demand more sustainable products, especially regarding climate change. These actions reinforce the engagement of CGD with its stakeholders (e.g. investors, shareholders, clients and employees) regarding climate change and mean new products/business services, meaning

Increased demand for existing products/services

3 to 6 years


As there is an increasing demand for environmental products and services, CGD is convinced that besides being an environmental responsibility of the company to incorporate climate change into everyday business it is also an opportunity for maintaining existing client preference and capturing new clients who are particularly involved in these issues. For Renewable energies

In the individual customers’ segment CGD offered, in 2015, a set of specific financial solutions with greater carbon efficiency, namely: a) Personal loans for renewable energies (RE): a partnership agreement to finance the cost of the acquisition and installation of thermal solar or photovoltaic panels, wind turbines et al (loans of €14k in 2015); b) Caixa Viva card: a card permitting the automatic payment of travel in the Lisbon Area, designed to incentivize the use of public transport (€72.6 million spent on this card in 2015); c) Caixa Carbono Zero: the card provides customers with

Main costs associated with these actions are included in the overall costs and are considered to be fully integrated within CGD’s operational costs. However, for the Special Investment fund Caixagest Renewable energy, the fund held under management €12.5 M. Main projects financed (PF) were: participation in acquisition of finergie for the amount of €605 M and the installation of


44

Opportunity driver



Estimated financial

implications

Management method

Cost of management

new sources of revenue. To this end, CGD is currently exploring this opportunity, offering low-carbon solutions in order to help its customers to reduce its carbon footprint (e.g. financing renewable energies), adopting a position of low-carbon economy financier.

financing, financial implications are up to €214k and for Caixa Zero Carbon credit card, financial implications is up to €101k .

carbon credits and is the only card enabling CO2 emissions to be offset through forestation (transactions in 2015 €101k); d) Caixa Webuy Prepaid Card: a more secure, pinless paper-based exclusively used to make internet payments on domestic or foreign sites. It also encourages the dematerialization (transactions in 2015 €7.8M); e) Caixa Empresas – RE: a solution to promote corporate investment in the RE areas – solar thermal/photovoltaic, hydro and wind (loans of €200k in 2015); f) EIB lines: investment for financing energy savings and environmental protection (loans of €5.5M in 2015). Reference should also be made to the financial close of the

additional capacity of up to 20MW, in wind farms operated by Lestenergia, for €30 M.


45

Opportunity driver



Estimated financial

implications

Management method

Cost of management

following projects: Participation in financing the acquisition of Finerge (642 MW portfolio) and participation in financing the installation of additional capacity (up to 20MW) in wind farms operated by Lestenergia.

Reputation

CGD sees opportunities on improving its reputation, by adapting their products and services for a low-carbon economy and creating new products and services that satisfy their customers. By showing a strength commitment with climate change, CGD improves its reputation and performance, meaning increased demand for existing products and services. To this purpose,

Increased stock price (market valuation)

3 to 6 years


According to the last study of Brand Finance (world’s leading brand valuation consultancy), CGD had a value of €524 million in 2015. If CGD is perceived by stakeholders, and general society, as a company strongly committed with climate change, it is reasonable to assume that the brand could

In order to manage these opportunities, CGD is actively committed to its climate change strategy, the Low Carbon Program. The program results from a strategic analysis of the risks and opportunities that climate change poses to its activity and is built upon five main vectors: Quantification of GHG emissions; Reduction of energy consumption and GHG emissions; Offsetting unavoidable GHG emissions; Low carbon financing; Community awareness-building.

The investment made in the solar thermal power plant, in the headquarters building, was €1 million. For the micro generation programme, the investment was €1.8 million for 80 agencies.


46

Opportunity driver



Estimated financial

implications

Management method

Cost of management

CGD is currently exploring this opportunity, through the implementation of its Low Carbon Programme and through the commercialisation of several low-carbon products and services. CGD believes that these actions reinforce the engagement of CGD with its stakeholders, being seen as a proactive bank in climate change adaptation and mitigation.

increase its value. Assuming a conservative scenario of 1% of brand valuation, the financial implication may go up to €5.2 million.

Internally, CGD has invested in the acquisition of more efficient vehicles and internal mobility plans that reduce GHG emissions of travel, e.g. investing in new communications technologies and increasing the use of public transport. Another relevant project was the installation of the solar thermal power plant in CGD’s Headquarters in Lisbon. The installation of solar panels on 1,600 m2 of roof in allows the production of energy used to heat water for air conditioning systems and sanitation facilities. In 2015 the solar plant of the headquarters produced 960 MWh, avoiding 470 tCO2. Also relevant was the micro generation programme, encompassing 80 Agencies of the Commercial


47

Opportunity driver



Estimated financial

implications

Management method

Cost of management

Network. The commercial network produced 468 MWh, avoiding 229 t CO2 . CGD also account for its carbon footprint every year and compensate part of its unavoidable GHG emissions. CGD compensated last year 3,531 t CO2e and will compensate this year 3,510 t CO2e. CGD publishes the annual compensation report on its website.

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

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by physical climate parameters that have the

potential to generate a substantive change in your business operations, revenue or expenditure

(i) CGD does not consider opportunities created by changes in physical parameters, such as changes in precipitation patterns or changes in the frequency of


48

extreme weather events as relevant, once these does not have significant impact on revenues, neither strength to induce changes in business operations due to the

nature of the activities of CGD (financial services).

(ii) The evaluation of opportunities is done considering the results from relative materiality that opportunities might present to the business. The R&O management

framework considers criteria such the scale of impact that opportunities might pose, prioritizing the most material opportunities. Risk and the Product working groups

must report results (including assessment of impacts of opportunities, frequency of monitoring and criteria for determining materiality and priorities) of their work to

the General Sustainability Committee, being the results afterwards also reported to the Executive Board.

(iii) Up to date no relevant opportunities have been leveraged that could have solid impact on revenues. Being the financial services the main business of CGD,

changes in physical parameters might have a positive impact in its carbon footprint (e.g. changes in temperature extremes may require less heating, reducing the

carbon footprint). Nevertheless, CGD has a total annual energy spend value lower than companies in other sectors, namely industrial companies. In this sense, this

possible opportunity is not considered as relevant for the business, as the percentage of the total operational spend in the reporting year on energy was less than

5% of total operational spend. Although the changes on physical parameters are currently unpredictable (extreme events), these changes are considered more a

risk than an opportunity for CGD. As referred, the opportunity doesn’t represent a significant or relevant extra source of revenues or significant savings. In this way

CGD would not change the way is doing business up to date.

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


49

GHG EMISSIONS ACCOUNTING, ENERGY AND FUEL USE, AND TRADING

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 Sun 01 Jan 2006 - Sun 31 Dec 2006

3062

Scope 2 (location-based)


Sun 01 Jan 2006 - Sun 31 Dec 2006

48569

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


50

CC7.3

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

Gas Reference

CO2 IPCC Second Assessment Report (SAR - 100 year)

CH4 IPCC Second Assessment Report (SAR - 100 year)

N2O IPCC Second Assessment Report (SAR - 100 year)

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

Diesel/Gas oil 0.074 metric tonnes CO2e per GJ APA, NIR 2012

Motor gasoline 0.073 metric tonnes CO2 per GJ APA, NIR 2012

Natural gas 0.057 metric tonnes CO2e per GJ APA, NIR 2012

Electricity 490 kg CO2 per MWh Endesa, 2015

Electricity 527 kg CO2 per MWh International Energy Agency, 2013

Electricity 136 kg CO2 per MWh MCTI, 2014

Other: Air transport - Domestic (<463 km) 0.672 Other: kg CO2e/pkm DEFRA, 2012

Other: Air transport - Short Haul (> 463km & < 3700 km)

0.383 Other: kg CO2e/pkm DEFRA, 2012

Other: Air transport - Long Haul (≥3700 km) 0.33 Other: kg CO2e/pkm DEFRA, 2012

Other: Train 0.043 Other: kg CO2/vkm CP, RS 2007/08

Other: Taxi 68.1 Other: kg CO2e/vkm DEFRA, 2012


51

Further Information


52

CC8. Emissions Data - (1 Jan 2015 - 31 Dec 2015)

CC8.1

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

Operational control

CC8.2

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

4878

CC8.3

Does your company have any operations in markets providing product or supplier specific data in the form of contractual instruments?

Yes

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

38825 GGD provides a marktet-based scope 2 figure once the company calculates its scope 2 GHG emissions based on supplier-specific data (specific emissions factors provided by suppliers, namely in Portugal).

CC8.4


53

Are there are 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?

Yes


54

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 Scope 2

emissions excluded from this source

Relevance of market-

based Scope 2 emissions

from this source (if

applicable)

Explain why the source is excluded

GHG scope 2 emissions from electricity consumption from facilities located in the islands of Madeira and Azores.

No emissions excluded

Emissions are not relevant

Emissions are not relevant

Electricity consumption from facilities located in the islands of Madeira and Azores are not included due to the fact that their payment is not centralized an it is therefore not possible to extract the electricity billing information from centralized IT systems. The emissions associated with this electricity consumption are estimated to represent less than 2% of CGD's overall scope 2 GHG emissions.

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 Less than or equal to 2%

Metering/ Measurement Constraints

Data may have minor flaws when it comes to diesel consumed in emergency generators. In fact, diesel oil data refers to total fuel supplied in to generators and not the effective consumption which means that diesel supplied at the end of each reporting year fuel bought in that year will be assumed to have been fully consumed in that year even thought it might only be consumed in the next reporting year. Given the negligence relevance of this emission source (0.1% of total GHG emissions) CGD considers this flaw to be immaterial.

Scope 2 (location-based)


Less than or equal to 2%

Metering/ Measurement

Electricity consumption is obtained from meter readings and supplier invoices in the case of CGD’s main buildings and from supplier invoices in the case of retail agencies. In this last case some of the invoices are based on estimated values and not effective electricity consumption. In these cases, CGD applies


55

Scope Uncertainty

range Main sources of

uncertainty Please expand on the uncertainty in your data

Constraints

corrections at the end of each year in order to reduce this effect. Corrections are also applied to invoices that do not coincide with the reporting year. In these cases an average daily consumption is applied to subtract or add the number of days that exceed or are in fault in the reporting year.

CC8.6

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

Third party verification or assurance process in place.

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

(%)

Annual process

Complete Limited assurance

https://www.cdp.net/sites/2016/88/2588/Climate Change 2016/Shared Documents/Attachments/CC8.6a/CGD_Annual Report 2015.pdf

The document attached is the CGD Annual Report 2015. This document has attached within the Independent Limited Assurance Report (By Deloitte). Scope 1 GHG emissions are reported in pages 40-42 and Independent Limited Assurance Report, which covers ALL the sustainability information included in the Annual Report 2015 (including scope 1 GHG emissions), is on pages 349-350.

ISAE3000 100

CC8.6b


56

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

Regulation % of emissions covered by the system Compliance period Evidence of submission


57

CC8.7

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

Third party verification or assurance process in place

CC8.7a

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

Location-based or market-based figure?

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 2

emissions verified

(%)

Market-based

Annual process




ISAE3000 100

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


58

Additional data points verified Comment

Year on year change in emissions (Scope 1 and 2)

Year in year change in emissions (scope 1 and 2) is reported in the Annual Report attached and therefore verified by a third party.

Year on year change in emissions (Scope 3) Year in year change in emissions (scope 3) is reported in the Annual Report attached and therefore verified by a third party.

Year on year emissions intensity figure Year on year emissions intensity figure is reported in the Annual Report 2015 attached and therefore verified by a third party.

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


59

CC9. Scope 1 Emissions Breakdown - (1 Jan 2015 - 31 Dec 2015)

CC9.1

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

Yes

CC9.1a

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

Country/Region Scope 1 metric tonnes CO2e

Portugal 4400

Cape Verde 470

Brazil 8

CC9.2

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

By GHG type

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)


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CC9.2b

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

Facility Scope 1 emissions (metric tonnes CO2e) Latitude Longitude

CC9.2c

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

GHG type Scope 1 emissions (metric tonnes CO2e)

CO2 4876

CH4 1

N2O 1

CC9.2d

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

Activity Scope 1 emissions (metric tonnes CO2e)

Stationary combustion in buildings 141

Fuel consumption by CGD vehicles 4265

Fugitive emissions from refrigeration and air conditioning equipment 472

Further Information


61

CC10. Scope 2 Emissions Breakdown - (1 Jan 2015 - 31 Dec 2015)

CC10.1

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

Yes

CC10.1a

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

Country/Region Scope 2, location-based


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)

Portugal 37432 76467 0

Cape Verde 1342 2546 0

Brazil 51 406 0

CC10.2

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

By facility

CC10.2a

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

Business division Scope 2 emissions (metric tonnes CO2e)


62

CC10.2b

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

Facility Scope 2 emissions, location based (metric tonnes

CO2e) Scope 2 emissions, market-based (metric tonnes CO2e)

Central buildings 16150

Commercial network 22675

CC10.2c

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

Activity

Scope 2 emissions, location based (metric tonnes CO2e)

Scope 2 emissions, market-based


Further Information


63

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 reportingyear

Energy type Energy purchased and consumed (MWh)

Heat 0

Steam 0

Cooling 0

CC11.3

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

17110

CC11.3a

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

Fuels MWh

Diesel/Gas oil 16266


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Fuels MWh

Motor gasoline 187

Natural gas 657

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

Comment

Grid-connected electricity generation owned, operated or hosted by the company, where electricity attribute certificates do not exist or are not required for a usage claim

1428 CGD produced 960 MWh of solar thermal energy in its headquarter building and 468 MWh of solar photo-voltaic energy in the commercial network branches, totalizing 1,298 MWh in 2015.

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

79420 78460 1428 1428 960 CGD produced, in 2015, 960 MWh of solar energy on its headquarter building (for self-consumption) and 468 MWh of photovoltaic energy across its


65

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

commercial network (branches). All electricity produced at the agencies are is sold to the grid.

Further Information


66

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?

Increased

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 Comment

Emissions reduction activities

1.3 Decrease

In 2015, absolute scope 1 and 2 GHG emissions combined increased 24% compared to previous year (from 35,288 t CO2e to 43,703 t CO2e, increase of 8,415 t CO2e. 8415/35288*100=24%). Disaggregating this increase (24%) by reason, emissions were: a) Reduction 1.3% (aprox. 468t CO2e) due to Emission Reduction Activities implemented in Portugal (e.g. investing in new communications technologies and promotion of the use of public transport, namely by the launch of the Caixa Viva Card, a bank debit card permitting the automatic payment of travel in the Lisbon Metropolitan Area -underground, bus, boat or train- designed to incentivise the use of public transport.) and Cape Verde (energy efficiency measures in buildings). b) Increase 24.7% (aprox. 8,724 t CO2e) mainly due to an increase in the electricity supply emission factor (other). This is due to the fact that, in 2015, the electricity supplier of CGD in Portugal (Endesa) used for the production of electricity an energy mix with a lower percentage of renewable energy, when compared to the previous year, thereby increasing the emission factor associated with the purchase of electricity (from 386 gCO2/kWh to 490 g CO2/kWh). c) Increase 0.5% (aprox. 159 t CO2e), due to reasons that are difficult to quantify/disaggregate (unidentified). Thus, 1.3% reduction (468 t CO2e), plus 24.7% increase (8,742 t CO2e), plus 0.5% increase (159 t CO2e) equals 24% increase (8,415 t CO2e = -468+8724+159).

Divestment 0 No change

No divestment

Acquisitions 0 No change

No acquisitions

Mergers 0 No change

No mergers

Change in output 0 No change

No Change in output.


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Reason Emissions

value (percentage)

Direction of

change Comment

Change in methodology

0 No change

No change in methodology.

Change in boundary

0 No change

No change in boundary.

Change in physical operating conditions

0 No change

No change in physical operating conditions.

Unidentified 0.5


Other 24.7 Increase



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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?

Market-based

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

0.0000225 metric tonnes CO2e

1943912535 Market-based

24 Decrease

This performance metric decreased 24% compared to previous year (from 0.0000297 to 0.0000225) due to emission reduction activities and due to the increase in total revenue (banking income). Global scope 1+2 GHG emissions had a 24% increase (from 35,288 t CO2e to 43,703 t CO2e, increase of 8,415 t CO2e, mainly due to an increase in the electricity supply emission factor) and total revenues (banking income) had a 64% increase (from €1188242734 to €1943912535). Thus, 43703/1943912535=0.0000225. CGD produced, in 2015, 960 MWh in its solar thermal plant at the Headquarters. CGD also produced 468 MWh through microgeneration within the branch network (solar photovoltaic panels). CGD also implemented other emission reduction activities in 2015, namely: in Portugal, a) Headquarters: optimization of schedules and operating algorithms of facilities; replacement of lightning system with LED technology (e.g. in the cafeteria and parking). Reduction of around 357 MWh. b) Headquarters and commercial network: optimization of schedules associated with HVAC systems. Reduction of around 316 MWh. c) CGD kept the Green program, namely: containerisation of data center; server virtualization; automatic sleep process of computers located in the headquarters building after working hours; other energy efficiency measures associated with the data center cooling, among others.


69

CC12.3

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

Intensity figure



Metric numerator

Metric denominator:

Unit total

Scope 2 figure used

% change

from previous

year

Direction of

change from

previous year

Reason for change

4.501 metric tonnes CO2e

full time equivalent (FTE) employee

9709 Market-based

31 Increase

This performance metric increased 31% compared to previous year (from 3.429 to 4.501) due to the increase in total FTE and increase in scope 1+2 emissions. Global scope 1+2 GHG emissions had a 24% increase (from 35,288 t CO2e to 43,703 t CO2e, increase of 8,415 t CO2e, mainly due to an increase in the electricity supply emission factor). Total FTE decreased 6% (from 10292 to 9709). Thus, 43703/9709=4.501. CGD produced, in 2015, 960 MWh in its solar thermal plant at the Headquarters. CGD also produced 468 MWh through microgeneration within the branch network (solar photovoltaic panels). CGD also implemented other emission reduction activities in 2015, namely: in Portugal, a) Headquarters: optimization of schedules and operating algorithms of facilities; replacement of lightning system with LED technology (e.g. in the cafeteria and parking). Reduction of around 357 MWh. b) Headquarters and commercial network: optimization of schedules associated with HVAC systems. Reduction of around 316 MWh. c) CGD kept the Green program, namely: containerisation of data center; server virtualization; automatic sleep process of computers located in the headquarters building after working hours; other energy efficiency


70

Intensity figure



Metric numerator

Metric denominator:

Unit total

Scope 2 figure used

% change

from previous

year

Direction of

change from

previous year

Reason for change

measures associated with the data center cooling, among others.

Further Information


71

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?

Yes


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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

of CO2e)

Number of

credits (metric tonnes CO2e):

Risk adjusted volume

Credits cancelled

Purpose, e.g.

compliance

Credit purchase

Hydro

The project activity consists in electricity generation by renewable source (hydro), through the construction of small hydropower plants (SHPs) located in the Júlio de Castilhos and Salto Jacuí municipalities, both in Rio Grande do Sul state – south region of Brazil. The project activity purpose is to provide electric power to the National Interconnected System SIN (from Portuguese – Sistema Interconectado Nacional), displacing the thermal generation from fossil fuels presents in the system with the generation of renewable sources of energy.

VCS (Verified Carbon Standard)

3510 3510 Yes Voluntary Offsetting

Further Information


73

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

Not relevant, explanation provided

GHG emissions associated with this activity are not relevant as CGD estimates these emissions are not material. Also, the Company does not have the information and resources needed to account for the emissions associated with the purchased goods and services each year, given the complexity of the process of gathering information. Also, compared to the effort that would involve in gathering information, CGD does not predict its inclusion over a three year period.

Capital goods Not relevant, explanation provided

GHG emissions associated with this activity are not relevant as CGD estimates these emissions are not material. Also, the Company does not have the information and resources needed to account for the emissions associated with the extraction, production and transportation of its capital goods consumed each year, given the complexity of the process of gathering information. Emissions associated with this activity are considered as not material. Also, compared to the effort that would involve in gathering information, CGD does not predict its inclusion over a three year period.


74

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

Fuel-and-energy-related activities (not included in Scope 1 or 2)


GHG emissions associated with this activity are not relevant as CGD estimates these emissions are not material. Also, the Company does not have the information and resources needed to account for the emissions associated with fuel and energy (not included in scope 1/2), given the complexity of the process of gathering information, including the lack of information of suppliers on GHG emissions, upstream of the acquisition. The company will examine the possibility of including this activity in the future based on an analysis of cost/benefit.

Upstream transportation and distribution


GHG emissions associated with this activity are not relevant as CGD estimates these emissions are not material. Also, the Company does not have the information and resources needed to account for the emissions associated with upstream transportation and distribution each year, given the complexity of the process of gathering information. Emissions associated with this activity are considered as not material. Also, compared to the effort that would involve in gathering information, CGD does not predict its inclusion over a three year period.

Waste generated in operations

Not relevant, calculated

21

Methodology of the he Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) and Defra/DECC's GHG Conversion Factors for Company Reporting (2012), adapted to national circumstances when relevant and possible.

100.00% Considered GHG emissions associated with the deposition of waste in landfills.


75

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

Business travel Relevant, calculated

1897

Business travel emissions are related to plane, train and individual transport (own car and taxi). Methodology of the he Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) and Defra/DECC's GHG Conversion Factors for Company Reporting (2012), adapted to national circumstances when relevant and possible.

100.00% Business travel emissions are associated to plane, train and individual transport (own car and taxi).

Employee commuting


GHG emissions associated with this activity are not relevant as CGD estimates these emissions are not material.

Upstream leased assets


Not relevant/Not applicable. This activity is not applicable to CGD as the bank does not have leased assets from a third party.

Downstream transportation and distribution


Not relevant/Not applicable. This activity is not applicable to CGD as the bank does not transport or distribute physical products.

Processing of sold products


Not relevant/Not applicable. This activity is not applicable to CGD as the products/services sold by the bank are not processed or transformed by a third party.

Use of sold products


The company does not calculate the emissions associated to the use of products sold (e.g. credits cards) as it is considered that emissions associated to this activity are immaterial.

End of life treatment of sold products


The company does not calculate the emissions associated to the endlife treatment of products sold (e.g. credits cards) as the bank is not responsible


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Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



chain partners

Explanation

for the treatment and it is considered that emissions associated to this activity are imaterial.

Downstream leased assets


Not relevant/Not applicable. This activity is not applicable to CGD as the bank does not have leased assets to a third party.

Franchises Not relevant, explanation provided

Not relevant/Not applicable. This activity is not applicable to CGD as the bank does not have franchises.

Investments Not relevant, explanation provided

Not relevant. All GHG emissions associated to relevant investments that the company made are included in scope 1+2.

Other (upstream) Not relevant, explanation provided

No other sources identified.

Other (downstream)


No other sources identified.

CC14.2

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

Third party verification or assurance underway for the reporting year but not yet complete - last year’s statement attached


77

CC14.2a

Pl Please provide further details of the verification/assurance undertaken, 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 Scope 3 emissions

verified (%)

Annual process




ISAE3000 100

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


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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

Waste generated in operations

Change in methodology

152 Increase CGD changed the calculation methodology in order to be more adjusted to the reality of the Company.

Business travel Change in output 74 Increase Increased number of long journeys by CGD employees, seconded to Group companies and foreign branches.

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, other partners in the value chain

CC14.4a

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

PRACTICAL LOW CARBON GUIDES. i) Under the Low Carbon Programme, CGD has made a commitment to promote environmental and carbon literacy among its

stakeholders, constituting the main engagement method of the company with the value chain. More than raise awareness of the issue of climate change, CGD

seeks to influence the value chain and society in general into behaviours and practices that reduce emissions of greenhouse gases and promote a more sustainable

attitude. The practical low carbon guides for Organising Events and Campaigns and Communication Media arise under the implementation of this commitment.

Initially targeted at CGD structures involved in the planning and organisation of events and advertising campaigns, its potential usefulness for a wider audience was

soon realised. The guides warn about the impact of decisions on the environment and, in particular carbon emissions, and present a set of practical

recommendations to minimise these impacts, identifying alternatives with better performance (energy and environmental) in each of the major categories of goods

and services to be contracted. ii) For prioritizing engagements and the development of projects related with climate change and GHG emissions with partners of the

value chain, CGD take into account several criteria, such as financial viability, future impact caused, skills of people involved, among others. This engagement was a

priority, as CGD is committed with climate change tackling and mitigation and wanted to raise awareness in its value chain, promoting environmental and carbon


79

literacy. iii) Success is monitored through the development and completion of the desired goals set at the beginning of engagement and, in this case, were the

following practical recommendations: (a) The Practical Low Carbon Guide: Event Organisation covers aspects such as selection of the site for the event, catering

services, production and assembly of stands and promotional and support materials, among other topics; (b) The Practical Low Carbon Guide: Campaigns and

Communication Media focuses on the categories television and film, audio, SMS and WEB (email, banners, micro sites), advertising panels and billboards,

production and assembly of stands and support materials. In each document, a list of environmental stamps, labels and certifications relevant to each of the focus

areas is presented.

CARBON CALCULATOR CGD: provides its stakeholders a carbon calculator that aims to inform citizens about their carbon footprint. In other words, to reveal the

amount of carbon dioxide (CO2) and other greenhouse gas (GHG) emissions associated with their activities. These emissions can be direct (e.g. emissions resulting

from fuel consumption in motor vehicles) or indirect (e.g. emissions associated with the production of electricity consumed in a house). The calculator is divided into

two sections: housing and mobility. In the housing section, issues relating to key equipment (e.g. lighting, audio-visual or refrigeration equipment) and how they are

used are posed. In the mobility section, questions regarding the use of different means of transport are posed. The CGD carbon calculator thus assumes an

instructional nature, facilitating the quantification of emissions associated with users’ activities and presenting specific solutions to reduce them, calling upon them to

make a personal commitment to take action in combating climate change. Through a set of simple questions, the CGD carbon calculator allows the user to simulate

their patterns of energy consumption in housing and travel, providing, as they navigate, specific information on good practices to reduce emissions from the use of

equipment or mobility options. Based on the user’s responses, the unit detects the key areas of intervention to reduce carbon emissions and builds a personalised

reduction plan, complete with Caixa financing solutions that facilitate access to technologies with lower emissions. By accepting the challenge of implementing the

measures outlined in their emissions reduction plan, users can make an individual commitment to take action on climate change. The calculator also has a personal

area that allows you to save and view past simulations, thereby monitoring the evolution of the carbon footprint and the degree of compliance with the user’s

commitment to make reductions. For further information please visit: www.calculadoracarbonocgd.com.

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

Number of suppliers

% of total spend

Comment

CC14.4c

If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data


80

How you make use of the data

Please give details

CC14.4d

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


81

SIGN OFF

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

Mr. José de Matos President of the Executive Committee Board/Executive board

Further Information