Weathering The Storm of Investor Risk At RWE: WWF’s Assessment Harvard Case Solution & Analysis

IMD-2-0137 © 2008
Steger, Ulrich; Coughlan, Sophie; Ionescu-Somers, Aileen

In November 2006; WWF Germany and Sustainable Asset Management (SAM) released the report Carbonizing Valuation: Evaluating Corporate Value at Risk. The report quarreled that utility businesses’ monetary worth was at considerable danger in a future with more stringent laws restricting carbon emissions. As Joachim Löchte; RWE Group Head of Energy/Environmental Policy; read the report; he noted that the replacing scenarios modeled fuel-by-fuel; petrol and coal but omitted two chances: renewable energy and nuclear energy. He sent an e-mail outlining his concerns with its premises and the report to author Matthias Kopp at WWF.

The fiscal impact of climate change had become highly visible; and Löchte knew the occasion would be well attended. He wondered who from RWE should attend the assembly. Was it important enough for the CFO or COO to attend? What communication strategy could RWE embrace this issue around? Learning objectives: This case looks at the differences between how a company and an NGO evaluate the financial risk. Underlying this difference in opinion are essential differences in what corporate sustainability resembles. How seriously should businesses take stakeholder initiatives which criticize their sustainability strategy? Should they alter their communications strategy to respond to such criticism? Might it be possible for NGOs and companies to converge in their views and to learn from one another? 

Weathering The Storm of Investor Risk At RWE WWF’s Assessment Case Study Solution

Subjects: Climate change; Investor risk; Stakeholder pressure; Carbon emissions trading; EU-ETS
Settings: Germany; Electric power utility; Energy; 2006 revenues: €44.3 billion; 2006-2007

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