Information Systems for Environmental Sustainability

IT, Resource Productivity, Environmental Preservation, and the Fourth Industrial Revolution

$28.24/tCO2e hits utilities earnings

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According to a report by TruCost (reg. req.), at $28.24/tCO2e, companies in the S&P 500 and their first-tier suppliers would incur carbon costs exceeding $90 billion, over 1% of revenue in 2007, and over 5.5% of combined EBITDA. Not surprisingly, utilities are particularly hard hit (ExxonMobil has the highest greenhouse gas emissions of the S&P 500 companies, at 305,900,000 tCO2e).

This analysis assumes business as usual. Also makes some modeling assumptions for companies that don’t disclose (some form of imputation).

Now suppose carbon management systems could reduce C02 emissions by 10%. Not difficult to compute an ROI for the business process changes enabled by information systems….

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Author: nigelpm

Associate Professor of Information Systems, Stephen M. Ross School of Business, University of Michigan - Helping organizations to navigate digital transformation.

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