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Companies must manage carbon performance for next four decades to protect shareholder value: PricewaterhouseCoopers

Posted by gmarkets on 3 September, 2007

According to PricewaterhouseCoopers (PwC), companies would need to manage their carbon performance for the next four decades at least if they were to protect shareholder value, reported The Australian (31/8/2007, p. 85). 10 steps to identify impacts: A PwC report titled Carbon Value said there was little doubt climate change represented a “real threat to companies’ future earnings”, and concluded that companies must “design and implement a robust and effective carbon management strategy.” The report provided a 10-step framework to identify the foreseeable impacts of climate change on business.

Market may discount carbon laggards: Mark Goddard, climate change partner at PwC for Australia, warned that companies that were slow to act could soon become unattractive to investors. “Climate change already represents a material risk to many companies,” he said. “In turn, businesses that do not respond robustly to these demands may be putting shareholder value at risk and could see the market place a discount on their share price.”

“How to” list: Key measures that PwC listed to counter the impact include:

• measuring and monitoring carbon emissions and abatement successes;

• auditing carbon emissions and abatement activity and having that audit independently verified;

• forecasting emissions and setting reductions targets; and

• pricing carbon into investment decisions to quantify carbon exposure and minimise the potential for liability shocks.

The Australian, 31/8/2007, p. B5

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