Carbon Pricing Disclosure Best Practices Guide

This guide provides best practices for carbon pricing disclosures as outlined by the CDP Corporate Questionnaire. It addresses the importance of carbon pricing in assessing, disclosing, and managing climate-related risks for companies. The document details various carbon pricing systems, including emissions trading schemes and carbon tax regulations, highlighting the necessity for companies to report their operations' exposure to such systems. Additionally, it discusses internal carbon pricing mechanisms that organizations may adopt to guide decision-making. The guide emphasizes the significance of transparent and consistent disclosures regarding carbon pricing, aimed at meeting investor demands related to climate risk management. Furthermore, it outlines the structure of the CDP climate change questionnaire, which includes specific questions regarding carbon pricing, compliance strategies, and internal pricing of environmental externalities. The document is designed to assist companies in understanding and responding effectively to the CDP’s inquiries on carbon pricing.