Carbon Pricing in Practice: Adoption Among Europe’s Largest Companies
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TCB Benchmarking

A TCB Benchmarking Release

Carbon Pricing in Practice: Adoption Among Europe’s Largest Companies

/ Quick Take

Despite its potential to support more informed decision-making around climate risk and capital allocation, the adoption of internal carbon pricing among Europe’s largest listed companies remains uneven. Fewer than one in five companies in the S&P Europe 350 currently report using an internal carbon price, according to analysis from The Conference Board.

An internal carbon price is a monetary value that a company voluntarily assigns to its greenhouse gas emissions. It is used to guide business decisions, assess climate-related risks, and support investment in low-carbon solutions, effectively helping firms internalize the potential costs of carbon in financial planning and strategy.

Despite its potential to support more informed decision-making around climate risk and capital allocation, the adoption of internal carbon pricing among Europe’s largest listed companies remains uneven. Fewer than one in five companies in the S&P Europe 350 currently report using an internal carbon price, according to analysis from The Conference Board.

An internal carbon price is a monetary value that a company voluntarily assigns to its greenhouse gas emissions. It is used to guide business decisions, assess climate-related risks, and support investment in low-carbon solutions, effectively helping firms internalize the potential costs of carbon in financial planning and strategy.

Trusted Insights for What’s Ahead®

  • Internal carbon price is strategic tool still in early adoption: Just 17% of S&P Europe 350 companies apply an internal carbon price, indicating that the concept is still far from embedded as standard financial practice.
  • Climate risk is financial risk: Internal carbon pricing helps translate transition risks into financial terms, making it a practical lever for integrating climate considerations into capital allocation, scenario analysis, and long-term planning.
  • Setting an appropriate internal carbon price: The range of internal carbon prices adopted by companies across Europe varies widely, but most fall within a narrower band between $60 and $102.50 per ton of CO2. There is no single correct price. Organizations should clearly define the purpose of introducing an internal carbon price and set a leve

Authors

Anuj Saush

Anuj Saush Anuj Saush

Head, TCB Advisory International
The Conference Board

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Evi Angelidou

Evi Angelidou Evi Angelidou

Director Member Development and Advisory, Governan…
The Conference Board

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