A multicriteria approach for measuring the carbon-risk of oil companies

This study develops and applies a multicriteria analytic hierarchy process (AHP) to assess the level of exposure to the so-called carbon risk for a selected group of oil companies. Within this framework, the study identified the properties that might positively or negatively influence the carbon-risk exposure of such companies and quantified such properties using AHP. Results show the coexistence of proactive and reactive companies in minimizing their level of exposure, particularly regarding energy efficiency and resource funding indicators. The study also discusses the advantages and restrictions of applying AHP for quantifying vulnerability of carbon-intensive companies to climate policies, represented here by oil companies. (C) 2012 Elsevier Ltd. All rights reserved.