Carbon Pricing is Gaining Acceptance Among U.S. Businesses

A New York Times article reports that at least 29 companies are incorporating a price on carbon into their long-term financial plans.  The list of companies includes many with ties to the Republican Party: ExxonMobil, Walmart, American Electric Power, Microsoft, General Electric, Walt Disney, ConAgra Foods, Wells Fargo, DuPont, Duke Energy, Google and Delta Air Lines. The article focuses on the political divide that this development  represents, and concludes that: “The divide, between conservative groups that are fighting against government regulation and oil companies that are planning for it as a practical business decision, echoes a deeper rift in the party, as business-friendly establishment Republicans clash with the Tea Party.”  The article is based on a report by environmental data company CDP. See “Large Companies Prepared to pay Price on Carbon” in the New York Times at: http://www.nytimes.com/2013/12/05/business/energy-environment/large-companies-prepared-to-pay-price-on-carbon.html?nl=todaysheadlines&emc=edit_th_20131205&_r=0

TD Bank Report on Canada’s Green Economy: Reconcile the Economy and Environment

On October 2nd, one of Canada’s Big Five banks, the TD Bank, released a report on “green economics” in Canada. TD found that environmental considerations have already become entrenched in corporate decision-making in Canada, and that reducing environmental impact often reduces costs, drives innovation, and stimulates growth. TD’s preliminary analysis indicates a recent “decoupling of economic growth from environmental degradation”, wherein the percentage of GHG emissions per 1% GDP increase has fallen, while improved air and water quality, recycling rates and protected lands have accompanied strong overall growth. The report suggests that in order to better understand and encourage these trends, Canada needs a holistic focus on the “greening of the economy” in all sectors, rather than dichotomizing “green” and “brown” economics. To this end, TD calls for the development of environmental, economic, and government policy, and corporate responsibility indicators to help measure gains across industries and at all levels.         

LINKS

 

Climate Change Initiatives of Canadian Companies

The 2013 Canadian report of the CDP (formerly the Carbon Disclosure Project), was released on October 1, ranking the Canadian companies doing the best job of investing to cut greenhouse gas emissions and preparing for climate change. The report was prepared by Accenture on behalf of the non-profit CDP, and is based on questionnaires sent to the 200 largest Canadian companies by market capitalization (the “Canada 200”), as listed on the Toronto Stock Exchange (TSX). Key results: 85% of respondents say that climate change is integrated into their business strategy (an increase from 77% in 2012); 64% of respondents offer incentives for “climate performance” (from 14% from 2012). The five top Climate Performance Leadership companies are: ARC Resources Ltd., Thomson Reuters, Bank of Montreal, Suncor Energy, and TD Bank. 

See the Canadian Report at: https://www.cdproject.net/CDPResults/CDP-Canada-200-Climate-Change-Report-2013.pdf. The U.S. version of this report is based on the 500 S & P-listed companies and is available at: https://www.cdproject.net/CDPResults/CDP-SP500-climate-report-2013.pdf