how multinationals are measured – L’Express

how multinationals are measured – LExpress

The Axilya company continues to document the debate around the “polluter pays” principle. Specializing in responsible financial investment advice, in 2019 it developed the carbon score, which assesses a company’s ability to pay its carbon bill. It tells investors and individuals whether the company is truly profitable and responsible, after deducting the cost of the CO₂ it emits.

To establish this, Axilya evaluates the CO₂ emissions of around 600 European listed companies. The methodology identifies direct emissions – to manufacture the product, heat the offices, etc. – but also indirect, which integrates all emissions upstream and downstream of manufacturing. This ranges from purchases from suppliers to waste processing, including customer journeys. This volume of CO₂ is then converted into euros, based on the carbon price defined by the Intergovernmental Panel on Climate Change (IPCC).

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This environmental cost is then compared to the company’s operating income. This results in a “carbon risk”, displayed in the form of a letter going from A to F. On the CAC 40 side, the poor performers, rated E or F in the latest ranking, are energy companies (TotalEnergies, Engie) , but also automobile manufacturers (Stellantis, Renault) or aeronautics (Airbus, Safran). The best operate more in tech (Capgemini, Dassault Systèmes) or consumption (L’Oréal, Kering, Hermès).

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