We use internal shadow carbon prices to support our decision-making on investments associated with the measures to be implemented (CapEx) for achieving our GHG reduction targets. This decision-support tool is used, for example, in own fleet and equipment purchase decisions and in our store refurbishment budgets, as well as to assess the transition risks of energy prices within the scope of our climate scenario analysis.
Carbon pricing is linked to carbon tax prices in Portugal and Colombia1, corresponding to an average of €28.40/tCO2e. In both cases, the amount is set by regulatory decree. The tax price in Portugal is linked to the price of carbon allowances under the EU Emissions Trading Scheme. In Colombia, the value is linked to the National Carbon Tax, which is levied on the carbon equivalent content (CO2e) of all fossil fuels, including oil derivatives, fossil gas and solid fuels used for combustion.
More information on this topic is disclosed in “ESRS – European Sustainability Reporting Standards”.
1 We did not consider the carbon tax in force in Poland as it was considered significantly low and not aligned with international reference values (€0.09/tCO2), increasing the risk of resulting in a value too low, which would undermine the use of carbon pricing as a risk management and internal efficiency tool.