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.
The carbon price was reviewed and updated during the financial year and Wesfarmers' shadow carbon price for capital expenditure decisions in Australia starts at $18/tonne CO2e in the short term and increases to $50/tonne CO2e in the longer term.
GRI 103-1, GRI 103-2, GRI 103-3, GRI 403-9, GRI 416-1