| Carbon Value Management (CVM) |
The methodology of Carbon Value Management enables companies especially in the aviation sector and stationary industries to apply the decisive levers of their climate relevant activities in an economically feasible way. Their competitive position and profitability is to be sustained and safeguarded within the new carbon constrained society and resulting requirements. Thus, this societal mega-issue turn into a management strategy.
As the starting point. the carbon-relevant value drivers will be identified and adjusted accordingly. Furthermore external risks as well as arising opportunities will be identified. Based on this newly gained knowledge, in the first instance the company's Carbon Value will be evaluated - the company's adjusted value taking into account carbon impacts and external risks. These preliminary operations allow for definition of carbon-induced measures for raising the company's value.
- External risks will be absorbed by the business model (for example energy trends)
- External opportunities will be used strategically (for example shipping routes via the ice-free North Pole)
- Carbon-induced costs along the value chain will be decreased
- Existing and new products will receive - wherever possible - a Carbon-related surplus value position.
- The cost of capital will be decreased long-term (for example, better ratings, improved access to capital markets)
The result will be a higher Carbon Value. The accretion compared to the original company value is equal to the Carbon Value Added. With the Carbon Value Management the company will be able to increase profit from the challenge of carbon protection. | |
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The approach of Carbon Value Management provides a methodology for companies to comprehend, assess and adjust their own self-induced ecological and economical carbon impact. The CVM methodology was first published in the most popular German business newspaper Frankfurter Allgemeine Zeitung on June 2008. |
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