The reasons for developing an internal carbon pricing (ICP) programme are growing, as is the number of companies using ICP or planning to. By setting a price on the carbon use of your organisation, your company can better manage transition risks and evaluate business strategies for a low-carbon future.
ICP has near-term benefits too. It enables companies to make decarbonisation a company-wide effort, through internal carbon fees and the incorporating of carbon pricing data into other financial evaluative measures.
Setting up a programme, however, can be a complex undertaking. It requires collecting new kinds of data from all corners of the enterprise and extrapolating carbon emission levels from energy usage in office buildings, factories, trucking fleets and warehouses. Some companies are also using carbon pricing to help manage Scope 3 emissions (created by supply chain partners).
In this paper we look at the state of play of ICP today — how it is being used and the benefits it is generating — and explore how companies can go about adopting and managing programmes to accelerate towards net zero.
