個案總覽

Many companies are protecting themselves against "climate risk"--the damage they might suffer from heat waves, flooding, and other effects of global climate change. But the smartest companies are also paying attention to "carbon risk"--the costs they will have to bear as governmental policies extract a growing price for CO2 emissions. These firms are setting "internal carbon prices" (ICPs), putting a monetary value on their own emissions to better prepare for success in a lower-carbon world. This article explains the process firms go through: measuring their direct and indirect emissions, ascertaining current external carbon prices (both explicit and implicit), predicting future ones, deciding what time horizons their ICPs should cover, and considering emissions-reduction goals. The authors then discuss how internal carbon pricing is helping companies make decisions about new investments, manage financial and regulatory risks, and develop long-term strategy.