Any known trends, events, demands, commitments, and uncertainties stemming from climate change
that are reasonably likely to have a material effect on financial condition or operating performance. This
analysis should include consideration of secondary effects of regulation such as increased energy and
transportation costs. The analysis should incorporate the possibility that consumer demand may shift
sharply due to changes in domestic and international energy markets.
✜ A list of all greenhouse gas regulations that have been imposed in the countries in which the company
operates and an assessment of the potential financial impact of those rules.
✜ The company’s expectations concerning the future cost of carbon resulting from emissions reductions
of five, ten, and twenty percent below 2000 levels by 2015. Alternatively, companies could analyze
and quantify the effect on the firm and shareowner value of a limited number of plausible greenhouse
gas regulatory scenarios. These scenarios should include plausible greenhouse gas regulations that are
under discussion by governments in countries where they operate. Companies should use the approach
that provides the most meaningful disclosure, while also applying, where possible, a common analytic
framework in order to facilitate comparative analyses across companies. Companies should clearly state
the methods and assumptions used in their analyses for either alternative.