CDP (formerly Carbon Disclosure Project)
Module 5: Business strategy – CDP (formerly Carbon Disclosure Project)

CDP (formerly Carbon Disclosure Project) 5.10: Questions 5.10 to 5.10.2: Internal pricing of environmental externalities

The organisation states whether it uses an internal price on environmental externalities (carbon, water) and, for an internal carbon price, gives the type (implicit price, shadow price, internal fee or internal trading), the objectives, the methodology and assumptions, the price range per metric ton CO2e, the scopes covered, how the price is applied in decisions (capital investment, procurement, product design) and whether it is monitored and expected to change; and similar details for an internal water price per megalitre. Climate leadership points require the price to be set with reference to scientific guidance or scenario analysis.

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