Creating Shareholder Value by economically reducing carbon emissions.

Reducing carbon emissions in your business sounds as though it is going to cost money. However, Curzon believes quite the opposite can be achieved.

Carbon emissions is the proxy measurement for resource consumption. Therefore reducing carbon emissions is as much about keeping costs under control as it is about developing innovative ways of running your business that in turn reduce carbon.

The framework depicts our thinking around the financial opportunity of an integrated approach to the reduction of carbon emissions.

1. Firstly the case for change must be created through the eyes of the customer. It must be recognised that any commercial organisation will only embark upon a programme of significant change when that change creates a more valuable state and the initial driver will come from the requirements and reactions of ones customer. Once that is understood a plan can be developed which encompasses both the operational actions and the commercial leverage that those actions will provide.

2. The cost base of the Value Chain from product/asset design to customer delivery is analysed and understood through the lense of carbon. The objective is to optimise the physical network, eliminate waste from processes, engage the Supply base in collaborative development and optimise operational activities such as transportation. This programme will employ innovation to challenge current ways of working and thinking.

3. A commercial plan would be developed that capitalises on the reaction of the customer. The presentation of the benefits of stage 1 together with the current and future carbon footprint of the asset/product in their hands will deliver a more attractive customer proposition so leading to top and bottom line growth.

4. Cost of Capital is, amongst other things, directly related to the risk associated and propensity for the investment to make money. Investments in the Sustainability arena, leveraged by a customer orientated commercial plan, will have the potential of attracting a lower cost of capital.

5. The resulting persona created by executing such a strategy will attract additional external investment driven by bottom line, tangible benefits.

The overall result will therefore generate significant, additional shareholder value, and will do so by touching and involving all 4 key stakeholders of a business, its staff, customers, suppliers and shareholders.