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A THOMSON REUTERS FINANCIAL AND RISK WHITE PAPERGLOBAL 500 TOP 20 EMITTERS8And finally, we arrive at the top 20 emitters in terms of most annualgreenhouse gases emitted into the atmosphere in the latest yearof the four-year period we examined (Figure 4). It should be kept inmind that these emission numbers include only direct and indirectemissions, and not scope 3 or supply/value chain emissions. Whenscope 3 emissions are included for many of the companies, emissionnumbers increase dramatically, to account, for example, for about30% of global emissions from only 32 global fossil fuel companies.9That said, it’s important to put these companies in their socialand economic context. Which important needs for energy arebeing served? Is this a story about providing energy to places thatpreviously have had no access to reliable electricity? How many liveshave been positively affected by energy availability? A key questionto ask of all these companies is whether they are providing theirservices while, at the same time, decreasing their greenhouse gasfootprints in line with IPCC guidance. If the answer is “yes,” then theyare “running sustainably” in what is a fair definition of the term. Thelist is important therefore, not as a final determination for climateculpability, but rather as the place where it makes the most sense tostart your inquiry on “sustainable growth.”Figure 4. Global 500 Top 20 emitters.Estimated totalScope 1 Scope 2emission in tons2014 versus 2010Baseline 100CO2 estimatemethodCompany NameCountryGCIS SectorEstimated CO2 e MTIndexEstimation methodPETROCHINA Company LimitedChinaEnergy325,974,176108MedianChina Petroleum & Chemical CorporationChinaEnergy268,527,476106MedianNTPC LtdIndiaUtilities201,036,494108ReportedArcelor MittalLuxembourgMaterials191,000,000103ReportedRWE gasRussiaEnergy144,871,00061ReportedDuke Energy CorporationUSAUtilities137,555,00086ReportedGDF SuezFranceUtilities131,154,736117ReportedAmerican Electric Power Company, Inc.USAUtilities122,700,00089ReportedGazprom OAORussiaEnergy122,200,00093ReportedExxon Mobil CorporationUSAEnergy122,000,00083ReportedENEL SpAItalyUtilities116,116,000100ReportedThe Southern CompanyUSAUtilities112,000,00085ReportedHolcim LtdSwitzerlandMaterials110,100,000108ReportedE.ON SEGermanyUtilities101,800,00077ReportedNippon Steel & Sumitomo Metal rge S.A.FranceMaterials93,290,00089ReportedPOSCOSouth KoreaMaterials89,154,000124ReportedRoyal Dutch eo Brasileiro SA - PetrobrasBrazilEnergy80,800,000132Reported8 ote that when a company has not reported its emissions, we use Thomson ReutersNpatented methodologies to estimate scope 1 and 2 using models that compare thenonreporting company with other similar companies; we strongly encourage all companiesto report their data, and will replace an estimated value with a company-submitted figurethat is qualitatively consistent with its peers.9h as-report-fossil-fuel-energy-sector.pdf6“A key question to ask of all these companiesis whether they are providing their serviceswhile, at the same time, decreasing theirgreenhouse gas footprints in line with IPCCguidance. If the answer is ‘yes,’ then theyare ‘running sustainably’ in what is a fairdefinition of the term.”

A THOMSON REUTERS FINANCIAL AND RISK WHITE PAPERGLOBAL 500 REVENUE GROWTH COMPARED WITH GHG EMISSIONS GROWTHIn this last section of our report, we arrive at two different views ofhow the Global 500 is performing in terms of reducing its greenhousegas footprint while running a business at the same time. The firstscatter graph (Figure 5) represents a plot of the largest 300 emittersof the Global 500. All of the dots to the left of the “GHG ReduceGuide Line” represent companies that have reduced emissions overthe four-year period examined in line with a 2 C decrease scenario(at least 1.4% per year). Additionally, all of the companies locatedabove the slanted green line represent companies in which revenuesare growing faster than emissions, suggesting decoupling of the two.Two observations from this plot include:1. As indicated by the blue-shaded oval, there are more companiesclustering slightly above the Sustainable Growth Borderlinethan below. In fact, Global 500 revenues as a whole grew by 5%compared with a growth rate in emissions of 1%, which suggestsdecoupling.102. The data sets (including from our previous report) suggest thatthe decline in emissions growth is relatively recent (in the last twoyears), and it will be important to observe how the data pointscontinue to migrate to the left as more years of data becomeavailable.Figure 5. GHG emissions change rates of the largest 300 emitters of the Global 500.1.0GHG Reduce Guide LineSales Change Rate0.50.0-0.5Sustainable Growth Borderline-1.010-1.0-0.50.00.51.0 Both Figure 5 and Figure 6 exclude those points that are outside of the range of [-1, 1] inboth x- and y-axis. Those points are considered “outliers;” the number of “outliers” is quitesmall compared to the whole data sets.7

A THOMSON REUTERS FINANCIAL AND RISK WHITE PAPERHowever, when we focus on the 100 companies with the largest GHGfootprints (see list in Appendix 1) represented by the size of the datapoint in Figure 6,11 the story is quite different. For this grouping, totalrevenues are decreasing by 7.5%, while total emissions are increasingby 1.1%. Similarly, a majority are also below the green SustainableGrowth Borderline, indicating emissions are growing faster thanrevenues (see Figure 6).There are many possible interpretations of this data. Is this partiallya reflection of the decline in fossil fuel prices (led by oil) andconsequent impact on revenues (for those producing fossil fuels)?Are these firms taking advantage of cheap energy to competewith each other at the expense of the environment? Are some ofthem demonstrating real leadership despite these factors? Do theyoperate in an intensive regulatory environment, or are they planningon growing their businesses in such an environment? Is importantinnovation happening in some of the companies that are movingmost quickly towards the upper left? Perhaps most significantly, inwhich direction are these individual firms moving?Figure 6. GHG emissions vs. revenue change rates for the 100 Global 500companies with the largest GHG footprints.1.0GHG Reduce Guide LineRevenue Change Rate0.50.0-0.5Sustainable Growth Borderline-1.0-1.0-0.50.0GHG Emissions Change Rate118#1 corresponds to the largest emitter, #2 second largest, etc., as listed in Appendix 1.0.51.0

A THOMSON REUTERS FINANCIAL AND RISK WHITE PAPERCONCLUSIONAll of the questions posed above are meant to be starting points forfurther inquiry. This data provides an additional catalyst for investors,regulators, consumers and stakeholders of all stripes to begin to askkey questions about the viability of a business going into a post-COP21world. Above all else, we suggest asking three questions:1. Are you operating your business, whatever it is, in a mannerconsistent with IPCC guidance on reducing emissions over time?2. If the answer is “yes,” then ask about the plan to keep doing so.Is it about technological innovation, divestment, business modeltransformation, etc.?3. If the answer is “no,” then ask if there is a plan to reconsider inlight of steadily increasing transparency around performance andstakeholder scrutiny for business as usual. The planet is changing(see planetary status snapshot at right), and what will be your rolein that change?STATE OF THE CLIMATE 2016CLIMATE CHANGE BY THE NUMBERSWarmer winters. Out-of-season blooms and new birds in yourbackyard. Live coverage of the latest extreme weather event onCNN. Yet another “warmest year on record” globally.There are many ways we observe and experience climate change.But climate change can seem like an abstract, hazy concept attimes. What does the latest climate science tell us about thecurrent state of earth’s climate by the numbers?400 ppm – global average atmospheric CO2 levels as of March 201522 to 44 cm IPCC projected sea level rise by 21002015 – warmest year on record globally since 18802014 – previous warmest year on record globally since 188015 of 16 warmest years on record globally have occurred since 20001 in 27 million odds that string of hottest years globally since 2000occurred naturally31 years – since the last cooler than average month globally inFebruary 198540 years – since the last cooler than average year globally in 1976 1C – global temperature rise as of 2015 vs. pre-industrial time 2C – 2015 Paris COP goal for limiting global temperature rise by 210094% of glaciers losing ice worldwide12% per decade – rate of Arctic Sea ice declineContributed by Minnesota Public Radio Chief Meteorologist Paul -focus-meteorologist-paul-huttner9

A THOMSON REUTERS FINANCIAL AND RISK WHITE PAPERLike the transition to a less carbon-intensive economy, this type ofreporting is a work in progress. We will continue to provide updatedguidance using this type of methodology, which will only improve asmore data becomes available and additional views become possible.In the meantime, we invite your engagement. Begin your inquiry,keeping in mind that many of these companies have and can continueto play a crucial role in our collective prosperity as long as theydemonstrate how they contribute to an ever lower carbon economy.Appendix 1. Companies ranked in order of size of GHG footprint (Scope 1 & 2).101 PETROCHINA Company Limited26CLP Holdings Limited52Praxair, Inc.772 China Petroleum & ChemicalCorporation27MMC Norilsk Nickel OSJC53LyondellBasell Industries Cl A28Total54Suncor Energy Inc.78 Freeport-McMoRan Copper &Gold Inc.29BHP Billiton55Valero Energy Corporation30Eni SpA31Endesa56 E.I. du Pont de Nemours andCompany32NextEra Energy, Inc.57 Occidental PetroleumCorporation33Glencore Xstrata plc58Anglo AmericanCoal India3NTPC Ltd4Arcelor Mittal5RWE AG6Surgutneftegas7Duke Energy Corporation8GDF Suez34The Dow Chemical Company9 American Electric PowerCompany, Inc.5935Rio Tinto60 Statoil ASA10Gazprom OAO36PTT61Vale11Exxon Mobil Corporation37Dominion Resources, Inc.62Saint-Gobain12ENEL SpA38 Canadian Natural ResourcesLimited63Repsol13The Southern Company64FedEx Corporation14Holcim Ltd65SSE15E.ON SE39Iberdrola SA40 CEZ41ConocoPhillips66 Devon Energy Corporation16 Nippon Steel & Sumitomo MetalCorporation4217Lafarge S.A.4318POSCO44Siam Cement19Royal Dutch Shell45Linde AG20 Petróleo Brasileiro SA – Petrobras46Williams Companies, Inc.21Rosneft47Exelon Corporation22Sasol Limited58Air Liquide23EDF4924Chevron Corporation50 Wal-Mart Stores, Inc.75Carnival Corporation25BP5176Woodside PetroleumAir Products & Chemicals, Inc.Reliance IndustriesBASF SEGas Natural SDG SA79Spectra Energy CorpSamsung Electronics80 AT&T Inc.81Volkswagen AG82Halliburton Company83Bayer AG84Apache Corporation85LG Chem86General Motors Company87Astra International88BG Group89Toyota Motor Corporation90 Nestlé91Ecopetrol Sa92Honeywell International Inc.93Grupo Mexico S.A.B. de CV67Husky Energy Inc.68China Mobile69Oil & Natural Gas94 Anadarko PetroleumCorporation70UPS95National Grid71Union Pacific Corporation96Cenovus Energy Inc.72TransCanada Corporation973M Company73Imperial Oil98Formosa Petrochemical99EOG Resources, Inc.74 Potash Corporation ofSaskatchewan Inc.100 Taiwan SemiconductorManufacturing

BUTHOMSONANAME REUTERS FINANCIAL AND RISK WHITE PAPERABOUT THOMSON REUTERSThomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industryexpertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal,tax and accounting, intellectual property and science and media markets, powered by the world’s most trusted newsorganization. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For moreinformation, go to thomsonreuters.com.ABOUT BSD CONSULTINGBSD is a global sustainability consultancy that provides thought leadership and customizedsolutions for the management of sustainability issues to international business andgovernmental organizations. bsdconsulting.comAUTHORSJohn MoorheadBSD ConsultingJohn Moorhead heads the ClimateChange practice at BSD Consultingand is responsible for French-speakingSwitzerland. The BSD Climate Changepractice has three areas of focus: Carbon Pricing, Innovationand Responsible Investment. John advises private and publicsector organizations on strategy and sustainable managementwith a particular focus on (climate) change management,business modelling, performance excellence and reporting.He also coaches managers on how to use sustainabilityreporting standards such as GRI and IIRC for managementpurposes such as sustainability strategy definition, rethinkingthe business model, managing change and improvingsustainability performance. John is coauthor of the BSD/Thomson Reuters Global 500 Greenhouse Gas PerformanceManagement series.A biologist by training, he has more than 28 years ofinternational management, training and consultingexperience in business and sustainability strategy andperformance management.j.moorhead@bsdconsulting.com 2016 Thomson Reuters S035283/6-16Tim NixonManaging Editor, SustainabilityThomson ReutersTim Nixon is a founder and the managingeditor Sustainability (sustainability.thomsonreuters.com). He is also directorof sustainability at Thomson Reuters, and has ongoingengagement with thought leaders across a wide spectrumof NGO and private sector partners. He has spoken at globalpolicymaking events, including the World Bank Land &Poverty Conference, UN PRI Annual Meeting and the firstglobal meeting of UNEA (United Nations EnvironmentAssembly). He is a frequent writer for the Sustainability blogand Thomson Reuters Answers On, and coauthor of a reporton the Global 500 greenhouse gas emission trends.Tim is a lawyer by training and has spent most of his careerworking with diverse collaborators to build ters.com

2014 6.6% GAP AL 500 GHG EMISSIONS 050 050 0 2010 2014 2020 2030 2040 2050 45 100 110 Figure 1. Global 500 GHG Emissions. 4 Scopes 1 & 2 aggregations with double counting included. 5 For this report's gap analysis, most recent reported figures were taken with over 80% falling in the four-year period 2010-2014 with a distribution as follows .