Major Corporations Report Internal Carbon Pricing to CDP - Energy Minute for December 16, 2013
Twenty-nine major, publicly traded companies have reported their internal prices on carbon pollution to CDP, the environmental data organization. The numbers, which range from $6 to $60 per metric ton, estimate both the risk and the potential business opportunity for proactive action by the companies. Prices were listed from companies in all sectors, including energy, utilities, airlines, technology and the financial industry. Among the reporting companies are Walt Disney, Con Agra, Wal-Mart, Wells Fargo, GE, Delta Airlines, Google, and DuPont. Each business reported that while the additional cost is primarily seen as a risk, early action on emissions reduction offers a competitive advantage over other companies that are not taking any action. The business assumption behind this carbon pricing is that addressing climate change is a business necessity that will eventually be required by regulations. CDP reports that energy and utility companies are the most likely to use internal carbon prices for strategic operational decision making, as they create long-term plans to meet energy needs through capital investment. Companies from these sectors that filed pricing with CDP include BP, Chevron, Conoco Phillips, Exxon Mobil, and Royal Dutch Shell, as well as American Electric Power, Duke Energy, and PG&E. This internal carbon pricing has become a key strategic item for these and many other businesses, which now recognize that the effects of climate change have a real impact on the bottom line. I’m John Howell for 3BL Media.
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