1. + Corporate Carbon Pricing Emilie Mazzacurati, CEO - Four Twenty Seven, Inc. Oregon Environmental Council January 27 th, 2015

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3. + Globally, 150 publicly-traded companies are using a price on carbon as a tool to drive investments in greenhouse gas emissions reductions 69 companies in North America © 2015 Four Twenty Seven, Inc. 3 Corporate Carbon Pricing: Facts

4. + We live in a market economy. As businesses, we rely on price signals to make decisions. Natural resources are a common good, and they’re often not “priced” appropriately - or at all, which leads to their overuse Aka “externalities” “Shadow pricing” : assign monetary value to currently unknowable or difficult to calculate costs Planning tool to account for expected costs in the future © 2015 Four Twenty Seven, Inc. 4 Carbon Pricing – A Business Tool

5. + In Practice © 2015 Four Twenty Seven, Inc. 5 Steps to implement a carbon price Measure CO2 emissions in current operations and planned projects Set price Put a price on emissions so they have financial value and impact ROI Reduce Reduce emissions and increase low- carbon- investments

6. + In Practice Data source: CDP 6 Setting the Price © 2015 Four Twenty Seven, Inc. Regulations Social cost of carbon Investor pressure Marginal cost of reduction

7. + Position yourself for the future What gets measured get managed What gets priced gets reduced? Applicable to other environmental impacts / ecosystem services: water, ecosystem services Manage your exposure to resource scarcity & climate change © 2015 Four Twenty Seven, Inc. 7 Conclusion

8. + Contact us: Emilie Mazzacurati Four Twenty Seven, Inc. emazzacurati@427mt.com Tel: 415.420.0074 8