Carbon Management (Continued). Why manage carbon from a business perspective?
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Transcript of Carbon Management (Continued). Why manage carbon from a business perspective?
Carbon Management(Continued)
Why manage carbon from a business perspective?
From: Burtis and Watt, 2008, p. 18
Corporate Carbon Performance Indicators (Hoffman & Busch, 2008)
• Carbon intensity• Carbon dependency• Carbon exposure• Carbon risk
From: Hoffman and Volkers, 2008, p. 509
Carbon Intensity
• Extent to which a company’s business activities are based on carbon usage for a defined scope and fiscal year.
• =carbon usage /business metric– Business metrics: Unit of production, turnover
(sales), total costs, costs of goods sold, value-added, EBIT (earnings before interest & taxes), market capitalization or equity
Carbon Intensity
• Carbon input intensity: “amount of carbon needed within the production process”– E.g. producing plastic polymers requires
petroleum feedstocks but will not produce carbon emissions
• Carbon output intensity: emission of GHGs (accounting for off-sets)
Carbon Dependency
• How much does the company rely on carbon over time? (Dynamic View)– “change in a company’s physical carbon
performance within a given time period”– Relative performance change from status quo to
predicted carbon intensity
Carbon Exposure
• “A company’s monetary carbon performance; describes monetary implications of the business activities due to carbon usage for a defined scope and year”
=carbon usage (in monetary terms)/business metric
Carbon Risk
• Change in a company’s monetary carbon performance within a given time period; relative performance change from status quo to the predicted carbon exposure
Works Cited
• Burtis, Bill and Iain Watt. 2008. Getting to zero: Defining carbon neutrality. Clean Air-Cool Planet and Forum for the Future.
• Hoffman, Volker H. and Timo Busch. 2008. Corporate carbon performance indicators. Journal of Industrial Ecology 12(4), 505-520.