Business Pitch Dictionary by pitch.dog
Climate targets, transition & carbon claims · Working

Shadow price

Also called: internal valuation

ELI5

A notional price used in analysis rather than an actual transaction.

Used in conversation

“Can we separate the target for shadow price from measured performance?”

Pitch context

You will see “Shadow price” in sustainability reports, impact decks, climate plans and assurance materials when the discussion reaches climate targets, transition & carbon claims.

Why it matters: In climate targets, transition & carbon claims, the reporting boundary, method, period and evidence can materially change the claim.

Caution

State the reporting boundary, method, period and evidence; standards, regulation and assurance requirements vary.

Sources & evidence · 3

Direct term-level sources and supporting source families.