Last year Forsyth Barr released The Carbon Report which takes an in-depth look at the implications of greenhouse gas (GHG) emissions for NZX listed companies. The report explains how being a low emissions company can pay off, with on average higher valuations than high emitters over the long-term.

You’ve probably noticed yourself how rapidly the relationship between carbon emissions and the corporate landscape is changing, and the report covers this in more detail along with a summary of New Zealand’s carbon emissions profile, the economics of carbon pricing, potential government and regulatory controls, and the all-important impact of climate change on businesses.

A key aspect of the report is the likely valuation consequences for heavy carbon emitters as investor mandates become greener. It’s an important viewpoint as ultimately equity investors determine the value of a company no matter how big or small it is. We’ve seen this ourselves and through ANZ have introduced a Green Borrowing Programme, the first of its kind in New Zealand, to create an opportunity for lenders and investors to invest in certified Green Debt Instruments that recognise the value of our low carbon renewable generation assets.

It’s not surprising that the report talks about the impact on purchasing behaviour as consumers become more carbon aware and the increasingly strong rationale for corporates to measure, understand and respond to their carbon footprints.

If you’re interested in learning more about how to measure your carbon emissions, check out our article on Calculating your carbon emissions.