Revised internal carbon pricing system for Teijin
Fibre manufacturing group Teijin revised its internal carbon pricing (ICP) system at the start of April.
It has had an ICP system in place since the start of 2021 to support capital-investment decisions across the group. The mechanism creates economic incentives to reduce CO2 emissions; it puts an economic value on lowering emissions and teams across the company can take these into account when deciding which investments to make.
Under the changes that kicked in at the start of April, proposed mergers and acquisitions as well as capital investments are now subject to the ICP system.
Teijin has also revised upwards the economic value it will put on carbon emissions, from €50 per tonne of CO2-equivalent to €100 per tonne. It said the revised price better reflects the increased risks of carbon taxes being introduced and rising tax rates as well as higher emissions-trading prices in various countries, especially in Europe.
