Companies contribute significantly to greenhouse gas emissions. Reducing these emissions and promoting environmentally friendly production are among the greatest challenges of our time. In many companies, due to the complexity of processes, there is still no clear understanding of how much CO2 emissions are caused by their own operations as well as by the companies within their value chain. As a result, the instrument of carbon pricing for reducing greenhouse gases loses much of its effectiveness. This is where the "Just Profit" project comes in, led by a team headed by Prof. Dr Maximilian Müller (WiSo Faculty at the University of Cologne) and Prof. Dr Kerstin Lopatta (University of Hamburg), on behalf of the Mercator Foundation. The Mercator Foundation is funding the researchers with a total of €760,000 (https://www.stiftung-mercator.de/de/woran-wir-arbeiten/projekte/).
Current approaches primarily aim to mobilise financial resources from companies to limit global warming (to 1.5 °C, in line with the 2015 Paris Climate Agreement). This seeks to hold polluters accountable for their emissions (carbon pricing) and promote transparency regarding companies' carbon footprints. The Just Profit project is investigating political options for integrating the costs of greenhouse gas emissions into existing accounting and disclosure regulations. For this purpose, a proposal for the concept of a CO2-adjusted EBIT is being developed.
Since companies are responsible for a large share of global CO2 emissions and are themselves affected by the consequences of climate change, this approach could form the basis for a new, integrated perspective. The introduction of CO2-adjusted financial metrics would allow companies, investors, and business partners to simultaneously integrate both financial and non-financial aspects into their reporting and take them into account in analyses and investment decisions. Currently, all stakeholders can contribute by participating in a survey: https://www.just-profit.de/survey/.
In this way, the project can make a significant contribution to combating climate change and set the course for a more sustainable economy. By highlighting innovative ways for companies to transparently disclose their greenhouse gas emissions and incorporate them into their financial decisions, the project sets a new standard for responsible business practices. This is important at a time when pressure on companies to improve their ecological footprint is steadily increasing. As such, the project not only offers practical solutions for businesses but also strengthens public confidence in the efforts of the corporate sector to play an active role in achieving climate goals.
Since 2022, Prof. Dr Maximilian Müller has been Professor of Financial Accounting at the Faculty of Management, Economics and Social Sciences at the University of Cologne. His wide-ranging research interests are reflected in his publications in renowned journals. Notable examples include studies on the effects of disclosure regulations on capital markets. Additionally, he serves as an academic advisor for a quantitative asset management firm and is a regular speaker in the field of executive education. Through media and blog contributions, he communicates financial topics to a broad audience, including managers, students, and the general public. He is also a member of the editorial board of the European Accounting Review. His research also focuses on international accounting and corporate taxation.
