Questions to Ask in the Boardroom
General carbon pricing questions
- Has my company factored the time and resources required to implement and manage carbon pricing requirements into decision-making?
- Does my company have a system of measuring the impact of carbon pricing?
- Do we have adequate data collection and management tools in place to help ensure consistent application and reporting across operations globally?
- In addition to measuring GHG emission reductions, can other financial metrics, like savings from energy efficiency measures or revenue generated from low carbon products, also be used?
- Have we considered qualitative measures, including enhanced reputation, improved regulatory relationships, or increased employee engagement and satisfaction
Compliance market
- Does the compliance regime pose a material risk to our company? How might this evolve in the future? How is the board accounting for this risk?
- What board-level strategies and processes do we have in place to respond to the evolving scope and structure of the compliance carbon market?
- Have we identified potential opportunities related to the compliance carbon market and are we taking appropriate action in the boardroom? For example, how is carbon pricing, and the anticipation of future pricing regimes, impacting and accelerating the business case for decarbonisation investments?
- In the case of Emissions Trading Systems (ETS), is the organisation able to access the emission allowances that it needs and does it have the expertise in place to manage inputs to the scheme?
- Is our company impacted, now or in the future, by Carbon Border Adjustment Mechanisms (CBAMs)? What strategies are in place to deal with this impact both in terms of imports and exports and our business overall, and what is the board-level oversight for this?
- Are all relevant sections of the business – including finance, sustainability, procurement and tax – working together to respond to our regulatory requirements on carbon pricing? Is there board-level clarity and oversight for this?
- How is the board ensuring internal communication, buy-in and agreement for the organisation’s carbon pricing strategy and policy?
Voluntary markets
- Do we, the board, understand the key risks and opportunities for the organisation in using voluntary carbon credits as a contribution to climate mitigation or for the purpose of carbon offsetting?
- Are we, the board, satisfied that the organisation’s approach to carbon offsetting or making carbon neutral claims is genuinely best-practice? How is this demonstrated?
- Are the right criteria and tools being used to back up the organisation’s, and the board’s, position on use of voluntary carbon credits?
- What is the board’s appetite for reputational risk and how is this being managed with respect to carbon offsetting?
- Do we, the board, understand how our activities in the voluntary carbon market are impacting broader environmental, social and governance concerns?
Internal carbon pricing
- What is the opportunity for our company associated with internal carbon pricing?
- Can internal carbon pricing support delivery of the organisation’s net zero transition plan?
- Would internal carbon pricing help to manage emerging risks from carbon pricing policies?
- What kind of decisions do we want to influence within the company? Would internal carbon pricing benefit our relationships with investors and other stakeholders?
- What is the best practice approach to pricing carbon internally?
- How good is our understanding of the relationship between the price picked and both the rate and reach of change across the business, and the types of decisions impacted?
- Is the price we have set high enough that it is defendable and not considered as ‘greenwashing’?
- What reputable standards or guidelines can best support the implementation of our internal carbon price?
- If we use our own methodology, will it stand up to external scrutiny?
- How will we measure the extent to which our internal carbon pricing regime is effective not just in reducing emissions, but also broader environmental, social and governance goals?
- Are mechanisms to report to the board on internal carbon pricing in place?