DATA AND PREMISES

DATA AND PREMISES

 

Legal Premises

 

In no case should this website, its tools, texts, statements and analyzes be understood as a tool for investment decision making. Its purpose is academic and data may contain inaccuracies by typing, incorrect or unaudited reports from primary and secondary sources.

 

General Assumptions

 

Data were collected from several sources such as CDP, Bloomberg, Thomson Reuters, Public Reports of Open Capital Companies.

 

In the simulator database emissions and EBITDA were considered for 2012, 2013 and 2014, since several data from 2015 were not available. It should also be noted that no adjustments are considered in EBITDA

 

Assumptions for defining the sample

 

To define the sample data were collected more than 3000 Open Capital Companies participating indices such as S & P 500, IBOVESPA, ISE and others.

 

The data of the companies without frequent or correctly reporting of direct greenhouse gas emissions (Scope 1) were disregarded as well as sectors where EBITDA is not a performance measurement such as banks, insurance and others.

 

 

Next steps

 

As mentioned earlier, we intend to gradually include the comparison of companies, sectors and also expand to simulate other indicators besides EBITDA, as well as expanding the range of companies (including also companies not listed on the stock exchange And other potential sources of risks and opportunities other than GHGs.

 

Simulator FAQ

 

How to set the price of carbon?

 

To set the price of your Simulation Carbon, you can use the price adopted in certain countries or region (Table 1) or the price considered the ideal by the IPCC (Intergovernmental Panel on Climate Change of the UN) so that the temperature does not increase Above 2 ° C (Table 2).

 

Location

Base price in 2016 (USD)

Mexico

1

European Union

Referring to Fig.

California, Quebec and New Zealand

13

United Kingdom, Denmark and France

From 24 to 26

Norway

52

Finland

From 60 to 65

Switzerland

86

Sweden

131

 

Ano

Minimum carbon price to increase temperature below 2oC (USD) – IPCC

2020

80

2030

90

2040

140

2050

220

2100

1.500

 

 

What is Scope 1 and 2?

 

The companies that carry out GHG Inventories usually use the GHG Protocol methodology and record their direct and indirect emissions in the respective scopes.

 

In this methodology three levels of scope are defined:

 

Scope 1 (mandatory) – Considers direct GHG emissions from sources owned or controlled by the company or enterprise.

 

Scope 2 (mandatory) – indirect emissions from the acquisition of electric energy.

 

Scope 3 (optional) – considers the other indirect emissions resulting from the company’s activities, but in sources that are not under its control; Scope 3 includes emissions resulting from third-party operations, considering the entire value chain. Because it is optional and has no default in the included sources, we do not consider this scope in the simulator.

 

How to set this percentage?

 

Typically, in a fee-based government pricing system (applied in countries like Mexico, Japan, Portugal, France, Denmark and Switzerland), 100% of the emissions of the sectors covered by the system are taxed. On the other hand, in a market-based system, also called cap and trade (held in places such as the European Union, California, Beijing and Korea), the purchase is generally made only of emissions that exceed the limits stipulated for each company.

 

How do we define the available sectors?

 

We considered the most intensive sectors that made their information available.

 

How do we define the available companies?

 

Taking into account the definition of sectors, all publicly traded companies that have direct emissions (Scope 1) and EBITDA are publicly available.

 

What is the source of EBITDA used?

 

EBITDA in dollars was taken from Bloomberg, Thomson Reuters and Publicly-held Publicly-held Companies Reports.

 

 

What can simulation results mean?

 

The results show, with the caveats previously made, that from a given carbon price, the company’s EBITDA could suffer a great impact due to its direct and indirect carbon emissions. The impact is represented in% of the average EBITDA of the last 3 years (2012, 2013 and 2014) and the respective reported emissions of each year. To understand where prices similar to this are practiced, click here.

 

1 – EBITDA – price( CO2e scope 1 * % scope 1 + CO2e scope 2 * % scope 2)

∑ EBITDA

 

 

How to understand the scenarios of carbon pricing in Brazil?

 

Brazil does not have a definition of when it will assign a price for carbon. Experts consulted indicate a start for 2020. You can consider the scenarios, for example, as moments (eg 2020, 2030 and 2050) with different carbon prices (probably increasing).