Many major companies now consider the price of carbon as a core element of their business strategy, shows CDP’s latest review.
In the US alone, 29 publicly-traded companies disclosed an internal price on carbon pollution to CDP this year.
IIP’s Executive Director, Jigar V. Shah, says that the growing trend to put a price on carbon demonstrates that big business is getting serious about cutting their emissions as a risk management strategy.
“Setting a voluntary price on carbon provides a significant incentive for identifying and implementing high-impact energy efficiency projects. It improves the paybacks and IRRs of measures such as combined heat and power, fuel switching, and the use of newer process technologies that use less energy,” Mr Shah says.
CDP’s review found that companies now consider carbon pricing as a planning tool that can help them identify risks, opportunities and potential investments. They also saw it as an incentive to cut costs and become more energy efficient.
CDP is an international, not-for-profit organization that works with companies and cities to help them measure, disclose, manage and share information related to the environment.
IIP is partnering with CDP on a new project that will help reduce the GHG emissions right down the supply chains of some of the world’s biggest companies. More details will be revealed in the New Year.