Energy stock performance snapshot. Image credit:Google Finance
Pablo recently filled us in on the abrupt end of the Climate Leaders voluntary carbon reporting program. (Eight years with a relatively small group of industries was enough.) In parallel, a group of US states worked up a carbon reporting protocol as well; and, there are several NGO and government-led carbon reporting protocols based in other nations. None of those ground-breaking efforts are positioned, however, to handle the fact that carbon intensity of a global corporation will affect stock valuation.
Once carbon emissions are widely reported, the dirties will lose value and relatively clean ones will gain, all other aspects being equal. I've been waiting for an Accounting Frm to make a move in this direction - because it would indicate that the tipping point approaches. PricewaterhouseCoopers just did.The opening marketing salvo from an ad agent was:
PricewaterhouseCoopers (PwC) is launching a global framework for greenhouse gas reporting that would bring transparency and standardization in reporting for investors. PwC, the one of the world's largest international accountancy and professional services firms, sees this framework as essential to helping businesses provide management with information that can be used to mitigate risk, cut costs, and uncover new business opportunities.For details on the Carbon Disclosure Project, a project for which PwC is "global advisor" look here.
Now for the surprise. Google Finance is the repository for carbon reporting performance ratings offered by PwC. At that link, look under "key stats and ratios" for results by publicly listed firms. It's down a bit against the right scroll bar.
I tested it for BP, which was rated by PwC as 66 out of 100 on carbon disclosure. I then compared BP's with Royal Dutch Shell, which was rated 75/100 on carbon disclosure. Fun numbers. I wonder how long it will take for the low rated firms to register a protest with PwC?