External reporting of the risks linked to the EU ETS – an exploratory study of German HDAX non-financial corporations

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Courtesy of Lexxion Verlagsgesellschaft mbH

Companies subject to the European Emission Trading Scheme (EU ETS) are faced with a wide range of challenges that might negatively affect their business objectives. All of these challenges are afflicted with uncertainties and therefore represent company risks. These should be integrated into existent risk management practices. This exploratory study analyses to what extent German non-financial corporations listed in the HDAX disclose the risks that are linked to the EU ETS in their risk reports for the year 2007 or for the period 2007/2008, respectively.

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