Welcome from EY Conversations about the role of business in finding solutions to climate change have increased in both their sophistication and specificity in recent years. A growing number of businesses are now actively investing in low-carbon initiatives and technologies. Such moves are proving to be of benefit — not only to the environment, but to a business’s bottom line. In the context of this year’s COP21 gathering in Paris, low-carbon discussions are gaining momentum. Since agreements in Kyoto and Durban, and in anticipation of Paris, the paths to a large-scale reduction in greenhouse gas emissions from businesses are becoming global considerations. As those discussions widen, the interest in harmonized, reliable and transparent methods for carbon pricing is likely to intensify. In an effort to better understand the drivers for business, and in the context of EY’s participation in the World Bank’s Carbon Pricing Leadership Coalition, we commissioned this survey to take a pulse on the issue and practice of carbon pricing. For some time, the thinking was that any carbon pricing protocol would require outside direction for businesses to act. The deployment of carbon pricing mechanisms has met resistance due to concerns regarding their potential effect on business competitiveness. Now, our survey findings — along with growing business support for a number of key initiatives driven by the likes of the United Nations (Business Leadership Criteria), the World Bank and the World Business Council for Sustainable Development (WBCSD) — provide evidence that companies are increasingly open to taking independent carbon pricing action, fully expecting it will actually improve overall performance. Such action will be complicated — and our survey suggests uneven — but it will bring a wealth of opportunity from which proactive businesses may benefit. Companies that intend to lead are already incorporating future expected carbon prices required for innovative and expensive technology into their decision-making. Businesses, generally, need to understand these market-driven solutions. Advancements, such as those expected from COP21, will only serve to further motivate the private sector. We appreciate the participation of the executives in our survey, and we hope this discussion helps spotlight how the adoption of carbon pricing by business may be driving global climate action. Juan Costa Climent Global Leader of Climate Change and Sustainability Services EY +34 915 727 381 [email protected] 2 I Shifting the carbon pricing debate 2 I Shifting the carbon pricing debate