Johnson Controls has been measuring its greenhouse gas (GHG) emissions from our own operations (scope 1 and 2 emissions) for more than 10 years and is working toward goals to reduce our footprint (energy, GHG emissions, water, and waste). Supplier Engagement Activities: Johnson Controls has been working with its suppliers for 5 years to respond to the Carbon Disclosure Project (CDP) Supplier questionnaire. Johnson Controls has also been requesting that its suppliers respond to its Sustainability Rating survey since 2010. Johnson Controls is working to quantify its scope 3 emissions (upstream and downstream) as directed by the recently released GHG Protocol Scope 3 Protocol. 5 Johnson Controls’ Corporate Goals & Activities Introduction and Reporting
Carbon Disclosure Project Background Introduction and Reporting CDP stands for the Carbon Disclosure Project. CDP offers a standardized information request or survey for suppliers. CDP is fast becoming a global standard and may serve as a common reporting tool across a supplier’s multiple customers. The CDP survey consists primarily of qualitative questions and also asks for specific GHG emissions data. Johnson Controls annually responds to the CDP Investor questionnaire and as a supplier to other companies, JCI also satisfies requests through the CDP Supply Chain questionnaire. 6
Carbon Disclosure Project Supply Chain Process Timeline 7
The CDP Questionnaire 8 CDP Supply Chain 2012 Information Request Management 1. Governance 2. Strategy 3. Targets & Initiatives 4. Communications Risks & Opportunities 5. Climate Change Risk 6. Climate Change Opportunities Emissions 7. Emissions Methodology 8. Emissions Data 9. Scope 1 Emissions Breakdown 10. Scope 2 Emissions Breakdown 11. Scope 2 Contractual Emissions 12. Energy 13. Emissions Performance 14. Emissions Trading 15. Scope 3 Emissions Supply Chain Module SM1. Allocating your Scope 1, 2 and 3 to your customers. SM2. Collaborative Opportunities SM3. Your engagement with your suppliers SM4. Emissions over the lifecycle of goods and services.
Johnson Controls’ Invitation Letter Introduction and Reporting To that end we have established a supplier GHG reduction goal of at least 1% year over year on an absolute basis. The suggested path to achieving this goal is to: 1) Create a GHG inventory and baseline, 2) Report scope 1 and scope 2 carbon emissions to the Carbon Disclosure Project, 3) Report the plans and actions you are taking to reduce energy use and GHG emissions and 4) Report your annual progress in meeting your goal.
Johnson Controls is requesting GHG emissions data and suggesting a 1% absolute annual reduction goal from its key suppliers to account for its scope 3 emissions, reduce its environmental impacts, and identify risks and opportunities associated with its supply chain. Johnson Controls’ Supply Chain Goals: Continuously improve supplier participation in reporting and reducing environmental impacts. Identify emissions hot spots and establish a baseline for scope 3 emissions. Lead sector in development of processes and tools to account for and reduce supply chain emissions, waste, and water use. 10 Johnson Controls’ Supply Chain Goals Introduction and Reporting
Carbon Disclosure Project Registration Process- Introduction and Reporting To access and respond via the ORS, users must register directly with CDP. Activate Your Online Account 1. A link will be provided in the original e-mail from CDP on April 1, 2013 to activate your account. This link is personal to your company and gives you access to your CDP portal. 2. If the original recipient of this e-mail is not responsible for environmental reporting at your company, it should be forwarded to the appropriate person. 3. Once you click the link, you will then be sent your own activation link. Register and Complete the Response 4. Once you have logged in, click the ‘Profile’ tab and confirm that your details are correct. 5. Click the ‘Respond’ tab and then click on the ‘Respond Now’ button to launch the online response system (ORS). 6. Please complete the CDP information request in English. You will be able to edit, save and export the draft response before submitting it to CDP. The “Registered User” Only the registered user can submit your company’s completed response. This will be the person who activates the information request first. They will be responsible for the final content of your response and will become the sole point of contact for reminders. Other users can activate an account and enter, save and export data, but they cannot submit the final response. Please log in and activate your account as soon as possible. Registration questions should be sent directly to: email@example.com 11
Carbon Disclosure Project Guidance and Assistance 12 https://www.cdproject.net/en-US/Pages/guidance.aspx#guidancedocs
Carbon Disclosure Project Guidance and Assistance 13 https://www.cdproject.net/en-US/Pages/guidance.aspx
Carbon Disclosure Project Guidance and Assistance 14 https://www.cdproject.net/en-US/Pages/guidance.aspx
CDP Guidance and Assistance CDP General Information: https://www.cdproject.net/en-US/Programmes/Pages/CDP-Supply- Chain.aspx CDP Guidance, FAQs and Webinars for Download: https://www.cdproject.net/en-US/Pages/guidance.aspx CDP Questionnaire: https://www.cdproject.net/CDP%20Questionaire%20Documents/Investor- CDP-2012-Information-Request.pdf (Note: Company Responses should be entered into the Online Response System) CDP Reporting Guidance: https://www.cdproject.net/Documents/Guidance/CDP2012ReportingGuidance.pdf 15
Contact Information General Questions: AnnaMarie Preschat firstname.lastname@example.org Carbon Disclosure Project: Carbon Disclosure Project Supply Chain email@example.com Johnson Controls Advisory Services Inquiries: Jennifer Layke firstname.lastname@example.org 16