Carbon pricing: translating science into an economic perspective
Climate is inherently financial. Carbon pricing allows a business to realize the link between the environmental impact of its operations and supply chain to the associated financial implications. Businesses’ that take this financial approach to climate solutions are able to realize the costs and opportunities related to adapting and mitigating the effects of climate change. Therefore, leveraging an understanding of the relationship between science and economics.
Integrating sustainability into the finance function has been recognized as a highly strategic endeavor by Palmerio and Gibassier. The pair released a Harvard Business Review article identifying the benefits of leveraging the Chief Financial Officer’s skills in response to climate change. Recognizing the CFO as the new climate leader, Palmerio and Gibassier highlight the role of finance in crafting climate business strategy.