TRANSITION RISK – INFLATIONARY COSTS

The Steering Committee has identified and assessed that government policies that place a price on carbon or regulate the use of fossil fuels will increase the cost of both direct and indirect energy like electricity. These policies will also increase indirect costs associated with the upstream and downstream Supply Chain and transportation using fossil fuels. It is not possible to pass all these costs onto customers. Therefore, the Steering Committee has directed a robust accounting of the carbon footprint in the Supply Chain to enable the understanding of risk and opportunities. In addition, the Steering Committee has oversight into initiatives to decarbonize through fuel switching, fuel efficiency, and green energy generation. These initiatives are directed by the members of the Forestry Executive Leadership Teams and the Vice President of Energy.

 

TABLE 4-3. Transition Risks in the Forest Supply Chain