Major multinationals at forefront of drive to price carbon and meet climate targets but many companies still unprepared. Internal carbon pricing is moving from theory to practice with take up at more than 1,200 companies, a 23% increase year on year, with close to 150 embedding a carbon price deep into their corporate strategy, according to the latest research by CDP.

Nearly 40 major multi-national companies with a combined market cap of $1.5 trillion have disclosed a tangible impact to their business as a result of internalizing a cost on carbon. They describe a variety of ways in which this tool has directly shifted investments toward energy efficiency measures, low-carbon initiatives, energy purchases, and the development of new low-carbon product offerings. 

These companies have seen the value of an internal price on carbon in helping make the business case for low-carbon investments, and are now shifting their use of the tool towards delivering company-wide strategic advantage and meeting their climate targets. CDP's report includes a series of new case studies detailing how internal carbon pricing is being embedded into corporate strategy. 

This year’s CDP disclosures come against a backdrop of growing momentum to address global warming pollution by national and local governments, new drivers like China’s impending carbon market, and the recent ratification of the Paris Agreement by the US, Brazil and China. Last year the number of companies pricing their carbon emissions tripled, continuing a rise from just a handful in 2013. 

According to data released by CDP today over 600 major international corporations with a combined market cap of US$12 trillion are already starting to factor the Paris Agreement in their business plans weeks before the major environmental legislation becomes law.