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Carbon To Cost Five Percent Of EBITA
Monday, 31 August 2009 12:30

A new study of the carbon risks for S&P 500 companies says over 90 percent of emissions originate from supply chains and the cost of carbon may be as high as five percent of EBITA for manufacturers.

Produced by NSF International, a public health and safety organization, and Trucost Plc, a global provider of environmental data and analysis, the report says many U.S. companies will soon have to pay for greenhouse gas (GHG) emissions under proposed cap-and-trade legislation.

Trucost says the average major U.S. automobile/parts manufacturer emits 1.3 million metric tonnes of GHGs annually.

“Carbon-intensive companies will be most exposed to carbon costs under the cap-and-trade program to be introduced in 2012 under the draft American Clean Energy and Security Act of 2009 (Waxman-Markey Bill),” said Koen Bontinck, Vice President of NSF Sustainability Services. “The goal of this report is to not only provide companies with an affordable analysis of their current operations and exposure to carbon costs, but also to help them implement sustainable business practices and verify their GHG emissions data in preparation for the new regulations.”

The report provides carbon benchmarking to assess a company’s carbon emissions relative to its sector peers; calculates carbon costs relative to earnings to identify potential profit risk; determins environmental costs based on the financial value of damages caused by each sector impact and discusses the strategic implications for companies with more energy-efficient supply chains to attract investors and increase market share.

Air Cargo World, 8/2009