Sustainability Command Center 13 items
Internal Carbon Pricing Program Checklist
Design and operationalize an internal carbon pricing mechanism to embed climate costs into capital allocation and business decision-making.
CDP GuidanceTCFD
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Objectives & Scope
- Have the objectives of the internal carbon price (behavior change, revenue, risk management) been defined? *
- Has the type of mechanism (shadow price, internal fee, implicit price) been selected? *
- Is the scope of emissions and business decisions the price applies to defined? *
Price Setting
- Is the price level informed by external references such as SCC, regulatory prices, or abatement cost curves? *
- Does the price account for a forward trajectory that rises over time? *
- Is the price differentiated by geography or business unit where appropriate? *
- Enter the internal carbon price in currency per metric tonne CO2e.
Application in Decisions
- Is the carbon price integrated into capital expenditure and investment appraisal? *
- Are project NPV and payback calculations adjusted for the carbon price? *
- If an internal fee is used, is the collected revenue allocated to low-carbon projects? *
Governance & Disclosure
- Is there clear ownership and governance for maintaining and reviewing the carbon price? *
- Is the internal carbon price disclosed through CDP or other reporting channels? *
- Is the effectiveness of the mechanism periodically evaluated against its objectives? *
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