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Carbon-reduction policies and marketing regulations are just some of the risks facing executives trying to green their supply chain, according to a report by Ernst & Young.
As carbon pricing becomes established in various jurisdictions, organizations will face risks from compliance obligations, the report says.
This will impact cash management and liquidity, and carbon-intensive sectors may see an increase in the cost of capital.
The Federal Trade Commission's proposals to crack down on greenwashing presents another regulatory and reputational risk for companies, Ernst & Young says.
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