Why the financial perspective on greenhouse gas management should matter to corporate executives and what they should do about it
Authors:
Dimitri Shanin, Project Performance Corporation
Scott Cameron, Grant Thornton LLP
Mark Lemon, Grant Thornton LLP
Michael Reading, Project Performance Corporation
Overview
Every company has an environmental impact. As environmental regulation and market expectations for high-quality disclosure of environmental risks and opportunities continue to mature, the costs associated with these environmental impacts become more apparent. However, understanding the true costs of GHG emissions is challenging because they are generally not included in a traditional business decision-making process. Thus, their impacts on business profit margins are largely ignored as overhead costs. In this paper, we help corporate decision-makers address a materiality gap by providing a practical methodology for estimating carbon-related costs and benefits in financial terms.
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