European companies let millions of euros in potential profits slip through their fingers because of lax carbon management, says Andreas von Saldern, an expert at Ernst & Young. Chief financial officers should take charge to ensure companies make the best use of their allocated permits.
Many chief financial officers could be forsaking millions of euros in potential profits by not actively managing their carbon emissions permits. According to Andreas von Saldern, Executive Director Climate Change and Sustainability Services at Ernst & Young, companies frequently book their carbon permits on their balance sheets at a value of zero because they were allocated for free. But these permits could be worth a lot of money if sold on the open market instead of stashed away, earning chief financial officers a nice windfall profit. “I see many companies that are unaware of the potential gain that could be made from their permit,” von Saldern says.