Climate change presents both risks and opportunities for business. In the private sector, many companies are committing to take action to stay ahead of the material risks of climate change and take advantage of emerging low-carbon opportunities. The number of companies disclosing to CDP that they embed an internal carbon price into their business strategies has grown from 150 global companies in 2014 to over 600 companies in 2017.
Reference the CPLC Resource Hub for external research on current and emerging carbon pricing practices tailored to a wide audience of stakeholders.
The TCFD recommends that companies acknowledge the reality of transition risk by running scenario analyses of potential future climate outcomes (including a 2°C scenario). In my view, central to any such scenario analysis should be gauging the impact of carbon pricing on company business models—over time capital will be re-allocated in accordance with carbon-pricing signals.Mark Lewis, Managing Director, European Utilities Equity Research, Barclay Capital; Member of the TCFD
Internal carbon pricing is a prudent accounting and risk management tool undergoing rapid adoption by those looking towards a low-carbon future. These industry leaders, including Novartis, Saint-Gobain, Royal DSM and Nissan Motor Co., Ltd., are taking the first steps to maintain a strong economic position in a shifting landscape, and disclosing to CDP to help measure their impact and progress along the way.