The idea of carbon insolvency etc etc:
Sustainable cost accounting is a mechanism to bring the costs of managing climate change onto the balance sheets of companies so that these costs might be included within their financial statements for the sake of appraising which companies are likely to be most impacted by the transition to a sustainable economy.
OK. Someone in comments doesn’t like it. OK:
First, there are those in the ICAEW who think I am ahead of the game, and since no one else has a plan to pit this on the balance sheet I clearly am. That puts your last comment in context, and suggests that all the rest is likely to be misinformed.
Professor Pigou did get there over a century ago. Stick on a carbon tax. That changes market prices to include those carbon costs. That also, by definition, then changes everyone’s P&L and balance sheet. Job done.
But then Pigou only had the one professorship so what did he know?