CNI Brochure 26-03-2012:Layout 1 · 04 CNI provides independent certiﬁcation to companies that...

Corporate Social ResponsibilityNo longer a choice, but an obligation

www.cn-investments.com

ContentsAbout Us 01

Corporate Social Responsibility (CSR) 03

Voluntary Carbon Market 05

CNI Automotive 08

CNI Racing 10

CNI Aviation 11

CNI Marine 13

CNI Commerce 15

Risk Warning 17

Please note: This is an e-brochure and is not designed to be printed, if you require a hard copy print brochure please request one using the contact details at the end of this presentation.

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ENVIRONMENTAL RESPONSIBILITY - No longer a choice but an obligation

CONTENTS


ABOUT US

About usCNI is one of the world’s fastest growing participants in thevoluntary carbon offset market and are perfectly positionedto assist any corporate entity in achieving carbon neutrality. 01

About us

CNI is an industry leader in the provision of carbon credits to helpcompanies and individuals offset their CO2e emissions and mitigatethe harmful effects of climate change.

CNI offers a number of carbon based services to assist marketforerunners in achieving their desired goal:

● Carbon Credit Settlement

● Carbon Credit Sourcing

● Carbon Credit Order Flow

● Emission Consultancy

● Carbon Footprint Calculations

● Carbon Credit Retirement

CNI has positioned itself as a market leader in the voluntary carbonmarket. Working alongside some of the biggest names in theirindustry, CNI is recognised for its reputation and integrity, making itthe most suitable company to partner with.

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ABOUT US

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CORPORATE SOCIAL RESPONSIBITY (CSR)

Corporate SocialResponsibility (CSR)

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Corporate Social Responsibility (CSR)

“No longer a choice, but an obligation”

"A concept whereby companies integrate social and environmentalconcerns in their business operations and in their interaction withtheir stakeholders on a voluntary basis." - European Commission

How CNI assists with CSRCNI can assist with CSR in order to help companies achieve theirdesired goal. Whether it is to align themselves to the industrystandard or to become market leaders.

Why are CNI best placed to help you?● Competitive price on credits due to CNI’s puchasing power.

CNI has access to over 6 million (5% of 2010 trade volume) credits worldwide.

● A variety of projects from around the globe that have undergone VCS accreditation and verification.

Advantages of offsetting with CNI● Offset to reduce carbon footprint or to achieve carbon

neutrality.● Proactive step towards environmentally sound policies.● Provides a USP and a competitive edge against the market.● CNI certification of carbon neutrality.● Allowable expense for corporation tax purpose (seek own

taxation advice).

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CORPORATE SOCIAL RESPONSIBITY (CSR)

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CNI provides independentcertification to companiesthat have achieved carbonneutral status.

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VOLUTARY CARBON MARKET

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CNI specialises in the provision of carboncredits on the voluntary market. The mostcommonly traded credit is a VerifiedEmission Reduction (VER).

What are carbon offsets?In its simplest form, a carbon offset represents the neutralization of one metric tonne of Carbon Dioxide Equivalent (CO2e). Carbon offsets aregenerated by a huge number of projectsaround the globe. These projects undergoverification and due diligence byindependent third party bodies such asVCS and Gold Standard in order toascertain the weight of abated CO2e. Each tonne of offset can then be sold onby the project owner as a carbon credit.Example of the types of projects CNIworks with: wind power, hydro power,renewable biomass, reforestation, energyefficient cook-stoves.

What is a VER?Verified or Voluntary Emissions Reduction. They refer to the emergingmarket for carbon credits that fall outsidethe Kyoto compliance regime. Thevoluntary market is currently smaller andless liquid than the compliance market. However, the voluntary market is drivenby the private sector not by public policy.Therefore, general market opinion statesthat a mature voluntary market has thepotential to outstrip the market size of thecompliance regime.

Market Performance:In 2010, suppliers reported a total volumeof 131.2 MtCO2e transacted in the global voluntary carbon markets. Compared to the 98 MtCO2e transactedin 2009, volumes grew by 34% - BBNEF, Back to the Future: State of the Voluntary Markets.

Verification:Verified Carbon Standard (VCS).VCS was founded in 2005 by business andenvironmental leaders who identified aneed for greater quality assurance involuntary markets “VCS is the leadingprovider for the voluntary carbon market”The Economists, 5th Nov 2009.

BBNEF reported that in 2010 VCS standard VERs comprised 34% of the Voluntary OTC market.

Gold StandardA benchmark of quality that has evolved inparallel with the maturation of thevoluntary carbon market however, it is amore expensive option.

Voluntary Carbon Market

The Offset ProcessCNI can offer a variety of services toclients in order to help them to offset theircarbon footprint.There are three main ways in which CNIapproaches offsetting:

● Independent audit by our environmentalconsultants

● A comprehensive CSR questionnaireusing published DEFRA guidelines figures

● CNI online carbon calculator

An independent audit involves a full reviewof all business processes by our ownenvironmental consultants to calculate theexact carbon footprint of the wholecompany.A comprehensive questionnaire has beenconstructed by CNI for businesses to fill inthemselves, regarding all areas of theirbusiness practice. This is then sent to CNIto analyse and calculate a carbon footprint.

CNI uses published DEFRA guideline figures that have been calculated and verified to represent an average footprint, which is then based on company criteriaincluding employee numbers.

The CNI online carbon calculator is anapproach that allows businesses to inputthe relevant emissions data, as directed byCNI’s own environmental consultants, tocalculate a carbon footprint.

With all of the above approaches CNIprovides the opportunity to offset the calculated emissions with our own VERVCS certified offsets. These offsets are derived from a portfolio of projects fromaround the world.

When you PurchaseOnce a carbon footprint has beencalculated and the decision to offset withCNI has been taken, CNI issues a contractnote. Once funds have been received and cleared, our clearing house will notify thecorresponding registry and the credits willbe retired on behalf of the client. At thispoint the environmental value of thecredits will be realised.

CNI will send the client the Project DesignDocument (PDD) which details theproject that originated the credits and alsothe local benefits that have been derivedfrom the initial purchase of the credits, e.g. infrastructure, schools and communitycentres. This provides full transparency tothe client and helps build a powerful CSR narrative. Once the funds have beenreceived and cleared, our house will submitto the corresponding registry.

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VOLUTARY CARBON MARKET

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CNI DIVISIONS

AUTOMOTIVE - RACING AVIATION MARINE COMMERCE

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CNI AUTOMOTIVE

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CNI AutomotiveThe automotive sector is the largest personal transport market andaccounts for 22% of CO2e emissions. People are becoming moreaware of the impact of the sector’s carbon footprint and are takingsteps to address the issues surrounding GHG emissions.

Market StatisticsCar emissions must be monitored and managed to meetgovernment regulations with the UK aiming for a 34% reduction by2020. UK Government

An average hatchback produces 166g/Km. Car Emissions Information

“The climate change agenda is accelerating technological change atan unprecedented rate, and the automotive industry in Europe andthe UK has embraced the CO2 challenge and is investing heavily inpeople and technology to provide innovative solutions whilecontinuing to offer exciting, safe and satisfying products that peoplewant to buy”. Global Automobile Industry: Changing with Times

The graph below shows the amount of CO2e produced by theaverage car over a number of years. It shows a decline in CO2eemissions produced from cars as technology has improved.However although it shows a year on year reduction it is by nomeans low in comparison to government targets of a 34%reduction by 2020.

Environmental statistics show that there is a year on year increase inGHG emitted from commercial and private vehicles. This is whereCNI can assist; by helping car manufacturers make their productsmore environmentally attractive.

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CNI AUTOMOTIVE

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Case StudyCNI Automotive has excellent market exposure and extensiveknowledge of the sector.

What Car? the UK’s premier car publication has teamed up withCNI to offset the emissions from all its road tests. CNI workedclosely with What Car? to calculate an accurate footprint of itscarbon emissions generated by the numerous road tests performedon the different vehicle every year. By offsetting all road testemissions CNI helped What Car? set a new industry benchmark. Inaddition to offsetting the road test CNI proudly sponsored andoffset the What Car? car of the year awards. .

As a leading provider in the carbon-offset market, CNI is proud tosponsor the What Car? Green Car awards and committed to

offsetting the carbon emissions of not only the event itself, but alljourneys to and from the awards taken by guests, participants andsponsors.

CNI are delighted to form a partnership with EcoVelociity.EcoVelovity has taken the position as the UKs major motoring show,with all the exhibitors boasting impressive low emissions in theirautomotive products, it's important that the organisers candemonstrate the same values. CNI are delighted to supportEcoVelocity by offsetting the carbon emissions of the show, and alsoof all the visitors' travel to and from the Excel centre over the fourdays - making it the UK's first carbon neutral car show.

CNI RacingCNI Racing is dedicated to bringing carbon neutrality to themotorsport world. Motorsport has traditionally been considered amajor cause of CO2 emissions, however through a number ofstrategic alliances and an overwhelming response by the sector,overall emissions are being rapidly reduced. Due to the nature ofthe industry it would be impossible to eradicate primary carbonemissions, however increasing numbers of motorsport teams arepurchasing carbon credits to offset the remaining carbon output.

CNI worked in conjunction with strategic partner, TruCost toprovide a detailed and accurate carbon footprint analysis of theVodafone Mclaren Mercedes F1 Team. This data enabled CNI toobtain a clear and quantifiable CO2 emissions profile. VodafoneMclaren Mercedes worked alongside CNI to select projects thatwould prove to be not only ideologically relevant to their corebusiness, but also ethically viable. In being certified as 100% carbonneutral, Vodafone Mclaren Mercedes became the world’s firstcarbon neutral Formula 1 team.

Today’s announcement is the strongest possible proof that we’vegone farther than any other Formula 1 team in becoming moreenvironmentally sympathetic and efficient – an achievement that’s ofgreat importance not only to our organisation but to all ourpartners too.”

Martin Whitmarsh, Vodafone Mclaren Mercedes Team

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CNI RACING

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CNI AviationAs international scrutiny continues to grow over the aviation industry’scarbon emissions, a strategic partnership with CNI will enable yourbusiness to create value through branding and to lessen your impacton the environment.

Market Statistics● Globally, the world's 16,000 commercial jet aircraft generate

more than 700 million tonnes of CO2e per annum.

● Greenhouse gas emissions from aviation industry have doubled since 1990.

● Between 2011 and 2050, emissions from aviation are set to double again, which scientists say could wipe out all other emissions savings we make in every other sector.

● Planes are particularly harmful because as well as generating CO2e, which lasts 100 years, they produce methane and other greenhouse gases - all of which contribute to climate change.

● The cumulative effect of burning fuel at altitude is twice as harmful as burning the same amount of fossil fuel at sea level.

● A number of the world’s largest airlines have begun to offset.BA, Qantas, SAS, Virgin and Delta all offer their customers the opportunity to offset their flight.

● If left unchecked, the Committee on Climate Change said globalaviation emissions could account for 15-20% of all CO2e produced in 2050.

Department of Transport ‘UK Aviation Forecast’ August 2011


CNI AVIATION

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CNI AVIATION

This graph demonstrates the combined factors involved in aviation emissions. 50% arecaused by CO2 alone, with the remainder made up of other environmentally harmful gasessuch as carbon monoxide and nitric oxide.

This graph demonstrates the combined factors involved in aviationemissions. If you add up all of the global warming caused by aviationso far in history, then about half of it is from CO2 and half of it isfrom other gases (i.e. the total impact is about 1.9 times the CO2

alone).

Case Studies

CNI worked closely with Private Jet Charter to derive andimplement a strategy that simplified the carbon offsetting to clients.This involved both the generation of an offsetting databasedependant on type of aircraft and educational informationconcerning the offsetting process. The carbon footprint of flightswas calculated from DEFRA figures, dependent on aircraft type andthe specific journey. Private Jet Charter clients were given theoption to offset their flight, thus investing in sustainable carbonemissions reduction mechanisms, in projects around the world.

CNI worked closely with Avolus to enable them to quantify thecarbon footprint of every journey taken on each of their aircrafts.This involved the creation of an aviation calculator based on figurestaken from the DEFRA database. As a result the process ofmeasuring and subsequently offsetting their carbon footprint wasstraightforward. Avolus were given the option of offsetting theirfootprint through VCS carbon credits derived from differentmethodologies and from different geographies.

CNI MarineAt present the shipping industry represents an estimated 3.3% ofthe total global emissions. This carbon footprint is equivalent toGermany’s and is predicted to rise to a much higher percentage ofglobal total emissions by 2050.

The marine sector was not included in Kyoto Protocol regulations;however, many industry leaders are addressing their carbonfootprints and committing to future reductions. Some companies inthe marine sector are already offsetting, including; Internationalmaritime services, Fraser Yachts, Monaco Yacht show and PrincessYachts. This is becoming the direction the market is taking fromboth a PR angle and an environmental impact side.

Such voluntary action means that the CO2e emissions from themarine sector are likely to come under increasing scrutiny fromboth a policy and consumer angle. Developments in greenertechnologies will go some way to reducing emissions but manycorporate targets will only be met by carbon offsetting.

Carbon offsetting will help the industry to respond to carbonemission reductions challenges, incorporating positive change to avital and ever expanding sector. It will provide returns both financially and in terms of corporate reputation, acting as a springboard to a more sustainable and environmentally friendly future.

Market StatsInternational shipping is estimated to emit 3.3% global GHGemissions, annually equating to 1.05 GtCO2e. Climate Connect

Although predictions vary, marine emissions are set to increase200-300% by 2050 if the industry continues unregulated. Marine Environment Division IMO, 2011.

Source: Scenario for emissions of CO2 from shipping in a historic perspective. Second IMO GHG Study, 2009

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CNI MARINE

QuoteIn a report published by the Maritime Knowledge Centre in 2011,the International Maritime Organisation stated that “technicalmeasures will not be sufficient to reduce… emissions frominternational shipping… (so the) offsetting of growing… emissions”is needed to bridge this gap.

Case Study

CNI are working together with Linley Swan GP to offset theteam’scarbon emissions for next seasons racing to ensure that theirclaimto carbon neutrality is sustained. This will be achieved bycalculating all emissions that are produced as a direct result of LinleySwans racing activities. Linley Swan has pioneered theoffshoreracing scene by being the first team to achieve carbonneutrality.CNI are proud to partner with Linley Swan to assist them inachieving this goal.

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CNI MARINE

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CNI COMMERCE

CNI CommerceCNI Commerce offers bespoke carbon management strategies tohelp businesses calculate and reduce their carbon footprint. In business, it is vital to be aware of global issues and incorporatethem into your business strategy. Climate change is making peoplemore aware of the need to reduce CO2 emissions. There isincreasing pressure to show that both the public and private sectorsare taking every measure to reduce carbon footprints.

GrowthOver the past decade 5 FTSE 100 companies, in a variety ofsectors, have became carbon neutral. Aviva currently offset 105% oftheir footprint so are carbon positive.The trend today is for the FTSE 100, who do not fall under the EUETS, to offset their carbon footprint. Therefore, all areas ofcommerce now need to address the issue of climate change. A recent PWC report suggests a strong correlation between theprofitability of a company and its environmental strategy.In their 2011 report, PWC indicates that 68% of the 500 largestcompanies in the world now say climate change is central to theirbusiness strategy - an increase of 41% since 2010.

Key Facts● 61% FTSE 100 financial companies carbon offset.

● The UK carbon footprint could be reduced by 7% if the non carbon intensive FTSE 100 companies offset their emissions.

“Companies with climate change strategies on average see doublethe returns of those without” Price Waterhouse Cooper, 2011.

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CNI COMMERCE

Case Study

Google has become the first internet search engine to offset theirentire carbon footprint. Carbon offsets were used by Google tohelp facilitate carbon neutrality. Google have offset 1.5 milliontCO2e in 2011.

CNI is in partnership with TEAM the UK leading supplier ofintegrated Energy & Carbon Management Solutions. Throughworking with TEAM we can now offer our clients significant energyand cost savings, reduce their carbon footprint and support them inevery stage of becoming carbon neutral.

The Notbox Company is an environmentally-friendly alternative tothe traditional one-use cardboard box. CNI has worked closely withThe Notbox Company to help extend their environmentalcredential by calculating and offsetting the carbon footprint of theirdirect business operation and employee’s using VCS VER carboncredits.

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RISK WARNING

RegulationCarbon Neutral Investments (CNI) is regulated by the Financial Services Authority(FSA) (FSA Number: 403428).CNI is a member of the London Stock Exchange (LSE) and of Caisse de Depot etConsignments (CDC) Carbon Registry. CNI ensures the highest levels of integrity anddue diligence is performed on all aspects of its regulated and unregulated business.

Risk WarningCNI only supplies VCS VER Spot Carbon Credits and these are not categorised as an"Investment Product" under the Financial Services and Markets Act 2000. They aretherefore not a regulated product and any customers purchasing VCS VER SpotCarbon Credits for investment or corporate social responsibility purposes should beaware that neither the Financial Services Compensation Scheme (FSCS) or the FinancialOmbudsman Scheme (FOS) apply to the transaction or to any monies paid to CNI forthe purchase of VCS VER Spot Carbon Credits. VCS VER Spot Carbon Credits are not tradable on the London Stock Exchange andcustomers should be aware there is little or no liquidity and it may not be possible tosell the VCS VER Spot Carbon Credits without suffering a loss of some or all of thecapital invested.

CNI Brochure 26-03-2012:Layout 1 · 04 CNI provides independent certiﬁcation to companies that...

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