Ad-hoc decison-making not enough

摘要

Water companies have taken great strides in broadening how they assess the impact of their planned actions. Today, the industry looks at more than just financial costs; companies consider short and long-term consequences on communities, wider society and the natural environment. Thinking holistically about impacts is undoubtedly a sensible and positive approach. But, here is the rub: comparing impacts when they are expressed in so many different units, or perhaps are not readily quantifiable, is a challenge. One option is to use money as a means of measurement. A good example is 'the traded (or non-traded) price of carbon', a now familiar term in the water industry and elsewhere, and which represents the value that should be attached to carbon emissions to ensure we reduce emissions efficiently and in line with the trajectory set out in the Climate Change Act.