WESFARMERS SUSTAINABILITY REPORT 2018
shadow carbon price

Environment

icon-climate.png

Shadow Carbon Price

Wesfarmers applies a shadow price on carbon to help ensure investment decisions reflect all costs (including environmental costs) and reduce our carbon footprint cost-effectively.

Shadow Carbon Price

Wesfarmers applies a shadow price on carbon to help ensure investment decisions reflect all costs (including environmental costs) and reduce our carbon footprint cost-effectively. Shadow carbon pricing is a method of investment decision analysis that adds a hypothetical surcharge to the price of projects that involve the creation of carbon emissions.

Wesfarmers’ shadow carbon price gives an edge to options that are more emissions efficient, other things being equal, when analysing investments and other strategic opportunities.

Wesfarmers' shadow carbon price for capital expenditure decisions in Australia is as follows:

Years0-34-78-1011-15>15
$/tonne Co2e 6 18 26 42 53

This is based on a moderated view of likely carbon prices in Australia. The underlying data behind the carbon price is reviewed periodically.