ANNOUNCEMENTS
A comprehensive analysis of internal carbon pricing (ICP) for TVS Motor Company, a leading two- and three-wheeler manufacturer in India, employing the spend-based carbon pricing methodology. Given the rising global emphasis on sustainability and decarbonization, corporations are increasingly embedding carbon costs within financial planning to drive emissions reductions. The spend-based method estimates greenhouse gas (GHG) emissions by applying standardized emission factors to the company’s expenditure categories. Utilizing FY 2023–24 financial data, estimated emissions and ICP values were computed under baseline and aggressive carbon cost scenarios. The study reveals that for a plausible carbon budget of ₹15 Crores, TVS’s ICP stands at ₹986 per ton of CO₂ equivalent, while an aggressive scenario of ₹50 Crores elevates this price to ₹3,287 per ton. The results underscore the utility of internal carbon pricing in incentivizing sustainable business decisions and aligning corporate strategy with climate targets. This analysis also identifies data limitations and the need for more granular expenditure tracking and Scope 3 emissions accounting for enhanced accuracy.
Keywords: Internal Carbon Pricing, Spend-Based Method, TVS Motor Company, Greenhouse Gas Emissions, Sustainability, Carbon Budget.
