{ "docId": "019dd923-622b-71dc-a6dc-846389cd1a6c", "docSlug": "64a2f2b79c00", "documentTitle": "Canadian Pacific Railway (CP)", "authorId": "20_TCI_Fund", "authorName": "Chris Hohn", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2019-11-30 00:00:00", "orientation": "portrait", "aspectRatio": 0.7078385, "pageNumber": 2, "pageCount": 6, "prevPage": 1, "nextPage": 3, "slideType": "appendix_disclosure", "function": "state_demand", "density": "overcrowded", "nDataPoints": 0, "notes": "This is a page from a shareholder letter detailing ESG engagement policies and a specific case study on Canadian Pacific.", "elementsJson": [ "paragraph", "numbered_list" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dc-846389cd1a6c/2", "deckHref": "/decks/019dd923-622b-71dc-a6dc-846389cd1a6c", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-846389cd1a6c.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-846389cd1a6c#slide-2", "components": [ { "bbox": null, "kind": "callout", "text": "We will typically vote against all directors of companies which do not publicly disclose their emissions and do not have a credible plan for their reduction.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0934-771a-b7aa-1b1a96fcc82d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.76, "x": 0.12, "y": 0.28 }, "kind": "list", "text": "Actions that should be included in a low-carbon transition plan are to: 1. Change business processes... 2. Introduce efficient energy management... 3. Source low carbon energy... 4. De-carbonise transport fleets... 5. Offset emissions... 6. De-carbonise supply chains... 7. Advocate for regulations...", "attrs": null, "subkind": "numbered", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2b8f7489-ef16-45c2-810a-59787fef07f3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.76, "x": 0.12, "y": 0.47 }, "kind": "list", "text": "1. We will typically vote against all directors of companies which do not publicly disclose their emissions and do not have a credible plan for their reduction. 2. We will also vote against auditors where the Annual Report and Accounts fail to report material climate risks.", "attrs": null, "subkind": "numbered", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2da69f8c-0a28-4767-aeca-d280980a1ac7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.76, "x": 0.12, "y": 0.58 }, "kind": "paragraph", "text": "We will also evaluate divestment where a portfolio company refuses to disclose its emissions and does not have a credible plan for their reduction.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "02e62d99-c7d9-4ece-bf1c-7a981991afaf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.76, "x": 0.12, "y": 0.66 }, "kind": "paragraph", "text": "We are pleased to see that Canadian Pacific has provided disclosure to CDP for 2018 and 2019 and we have carefully analysed these submissions. However, for 2018, CDP awarded Canadian Pacific only an overall C grade. We note that you expect this to improve to a B grade in 2019, but this would still be an unsatisfactory score. Canadian Pacific is a world class company and should be achieving an A grade rating, which represents best practice environmental stewardship and disclosure. (Please see the Appendix for CDP's guidance on how to achieve an A grade). By comparison, in 2018, peer companies Canadian National was rated A and Union Pacific rated A-.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "10093cdf-0bdd-4cf3-9952-d129b5422812", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.76, "x": 0.12, "y": 0.12 }, "kind": "paragraph", "text": "In our view, reporting to CDP (www.CDP.net) is the best way to implement TCFD. We expect all our portfolio companies to make full annual public disclosure to CDP.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1f4a5b41-7408-44ab-b6f0-2d2c2125d338", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.76, "x": 0.12, "y": 0.82 }, "kind": "paragraph", "text": "In addition, strong leadership in environmental stewardship and disclosure would reinforce your competitive advantage in freight transportation when compared to trucking.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2875e473-8769-42ba-80d3-ac415b038526", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.76, "x": 0.12, "y": 0.2 }, "kind": "paragraph", "text": "We expect companies in which we invest to have a credible, publicly-disclosed plan to reduce GHG emissions. This plan should include measurable science-based targets that align with the Paris Agreement, which requires full de-carbonisation of economies (net zero emissions) by 2050.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c4031056-f272-456a-b2a3-859b69455b5d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.35, "x": 0.12, "y": 0.63 }, "kind": "title", "text": "Canadian Pacific disclosure to CDP", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7a783c80-b905-46d0-b67a-f41a765e5c15", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.12, "x": 0.12, "y": 0.55 }, "kind": "title", "text": "Divestment", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "94b75d88-1f56-43ac-8ac2-bc855b315847", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.12, "y": 0.17 }, "kind": "title", "text": "Low-Carbon Transition Plans", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a23cf9ba-bc4f-44e1-af6f-f152bf5e6183", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.08, "x": 0.12, "y": 0.44 }, "kind": "title", "text": "Voting", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e80390f3-e393-488d-933c-f9fdf9a597db", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "gri-standards", "slug": null, "matchId": "5b464bc6-cddc-4599-9869-412b5cb3aa17", "evidence": "References to CDP disclosure and GHG emissions reporting standards.", "confidence": 0.6 } ], "arcBeats": [ { "to": 2, "from": 2, "beatId": "c8e8bae3-8792-4ae9-8187-539b3b5b4eb9", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The appendix disclosure and demand list highlight the need for better low-carbon transition plans.", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 2, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "d38ae697-0a7d-45c8-a29a-edfa124697bd", "evidence": "The document emphasizes the importance of improving low-carbon transition plans.", "position": 0, "objective": "Highlighting the risks of inaction on climate change disclosure", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }