CDP Partnership Proposal — Technology-Enhanced Carbon Integrity

Executive Summary

This proposal outlines a strategic partnership between CDP and DaedArch Corporation, aimed at enhancing the integrity of carbon markets through advanced sensor-based Monitoring, Reporting, and Verification (MRV) technology. DaedArch’s platform provides ground-truth sensor data that aligns with CDP’s commitment to facilitating transparent environmental reporting. With over 18,700 companies disclosing through CDP annually, our collaboration can promote best-in-class climate action and align with the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) frameworks.

The partnership will leverage DaedArch’s continuous monitoring capabilities to enhance the accuracy and reliability of carbon credit reporting. By integrating our MRV technology with CDP’s global disclosure system, we aim to provide companies with actionable insights that will not only improve their environmental performance but also incentivize them to achieve A-list scoring through verified climate action.

Value Proposition

Enhancing Carbon Credit Integrity

DaedArch’s sensor-based MRV platform ensures that carbon credits are based on real, verifiable data. This approach addresses the critical need for transparency in carbon markets, which is a priority for CDP as it seeks to improve environmental reporting standards. By utilizing ground-truth data, we can significantly reduce the risks of double counting and misreporting, thereby enhancing overall market confidence.

Alignment with CDP’s Objectives

1. Global Disclosure System: DaedArch’s technology aligns with CDP’s mission to provide a robust global disclosure system for environmental reporting. Our MRV platform can seamlessly integrate with CDP’s existing frameworks, ensuring that companies have access to real-time data that supports their disclosures.

1. Incentivizing Best-in-Class Climate Action: By providing companies with accurate and timely data, we can help them achieve A-list scoring. This aligns with CDP’s goal of recognizing and rewarding organizations that demonstrate leadership in climate action.

1. Framework Alignment: DaedArch’s MRV platform is designed to comply with both TCFD and ISSB disclosure frameworks. This ensures that the data collected is not only relevant but also meets the requirements set forth by these internationally recognized standards.

Market Demand

With an increasing number of stakeholders demanding transparency in carbon credit markets, the integration of DaedArch’s technology will position CDP as a leader in promoting integrity and accountability. The demand for reliable MRV solutions is growing, and this partnership will enable both organizations to meet this demand effectively.

Partnership Model

Collaborative Framework

The proposed partnership model shall be based on a collaborative framework that includes:

1. Joint Development Initiatives: Both organizations shall engage in joint development initiatives to enhance the MRV capabilities of DaedArch’s platform, ensuring it meets the evolving needs of CDP’s disclosure system.

1. Data Sharing Agreements: DaedArch shall provide CDP with access to anonymized data collected through its MRV platform. This data can be utilized to improve CDP’s reporting systems and provide insights into industry trends.

1. Co-Marketing Opportunities: Both organizations shall engage in co-marketing efforts to promote the partnership and its benefits to the broader market. This includes joint webinars, white papers, and case studies showcasing successful implementations of the MRV technology.

1. Training and Capacity Building: DaedArch shall provide training sessions for CDP staff and participating companies on the use and benefits of the MRV platform, ensuring that all stakeholders are equipped to leverage the technology effectively.

Governance Structure

A joint steering committee shall be established to oversee the partnership. This committee will be responsible for:

• Setting strategic objectives and KPIs.
• Monitoring progress against the integration timeline.
• Addressing any challenges that arise during the partnership.

Pilot Program

Objectives

The pilot program will serve as a proof of concept for the integration of DaedArch’s MRV platform with CDP’s disclosure system. The objectives of the pilot program include:

1. Validation of Technology: To validate the effectiveness of DaedArch’s sensor-based MRV technology in enhancing carbon credit integrity.

1. User Experience Assessment: To assess the user experience for companies utilizing the integrated platform, gathering feedback for further improvements.

1. Data Integration Testing: To test the integration of sensor data into CDP’s reporting framework, ensuring seamless data flow and usability.

Scope

The pilot program shall involve a select group of companies that are currently disclosing through CDP. These companies will be invited to participate in the pilot, providing valuable insights into the functionality and benefits of the MRV platform.

Duration

The pilot program shall be conducted over a period of six months, with the following phases:

1. Phase 1: Onboarding (Month 1)

• Selection of pilot participants.
• Initial training on the MRV platform.

1. Phase 2: Data Collection (Months 2-4)

• Continuous monitoring and data collection using DaedArch’s sensors.
• Regular check-ins with participants to gather feedback.

1. Phase 3: Evaluation (Months 5-6)

• Analysis of collected data.
• Assessment of user experience and integration effectiveness.
• Compilation of findings into a final report.

Timeline

The proposed timeline for the partnership and pilot program is as follows:

| Phase | Duration | Key Activities | |---------------------------|--------------|-------------------------------------------------| | Partnership Agreement | Month 1 | Finalize partnership agreement and governance structure | | Pilot Program Onboarding | Month 2 | Select participants and conduct training | | Pilot Program Data Collection | Months 3-5 | Continuous monitoring and feedback collection | | Evaluation and Reporting | Month 6 | Analyze data and compile findings into a report | | Full Integration | Months 7-12 | Implement findings and scale the solution |

Commercial Terms

Revenue Model

The commercial terms of the partnership shall include a revenue-sharing model based on the following structure:

1. Subscription Fees: Companies utilizing DaedArch’s MRV platform shall pay a subscription fee, a portion of which will be shared with CDP.

1. Performance-Based Incentives: Additional revenue may be generated based on the performance metrics defined by the partnership. For instance, if participating companies achieve A-list scoring due to enhanced reporting accuracy, both organizations shall benefit from a performance bonus.

1. Co-Marketing Revenue: Joint marketing initiatives may also generate revenue, which will be shared between CDP and DaedArch based on agreed-upon terms.

Cost Sharing

Both organizations shall agree on a cost-sharing model for the pilot program, which includes:

• Development and implementation costs of the MRV platform integration.
• Marketing and promotional costs associated with co-marketing efforts.
• Training and capacity-building expenses.

Confidentiality and Data Protection

Both parties shall adhere to strict confidentiality agreements regarding proprietary information and data protection, ensuring compliance with applicable regulations and standards, including GDPR and ISO/IEC 27001 for information security management.

Conclusion

The proposed partnership between CDP and DaedArch Corporation presents a unique opportunity to enhance the integrity of carbon markets through advanced MRV technology. By aligning our capabilities with CDP’s objectives, we can provide companies with the tools they need to achieve transparent and reliable environmental reporting. This partnership will not only support CDP’s mission but also drive significant value for participating companies, ultimately contributing to global efforts in climate action.

We look forward to the opportunity to discuss this proposal further and to establish a mutually beneficial partnership that will lead the way in promoting carbon credit integrity and transparency in environmental reporting.