Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited
An exploration of motivations, drivers and barriers to carbon management: the UK FTSE 100
Article Type: Abstracts From: Strategic Direction, Volume 24, Issue 6.
Okereke C. European Management Journal, December 2007, Vol. 25 No. 6, Start page: 475, No. of pages: 12
Purpose to investigate why companies undertake carbon management programmes. Design/methodology/approach focuses on FTSE-100 companies, refers to perceptions of initial corporate response to climate change as “green-washing”, believes this perception is changing/improving, but notes a remaining underlying tension between business interests and environmental concerns. Discusses corporate climate responses as part of social responsibility programmes, and suggests that social responsibility may be a factor driving companies to adopt carbon management, differentiating between factors that drive and factors that motivate companies to undertake climate-related activities. Analyses Carbon Disclosure Project (CDP) reports on 42 of the companies’ emissions, fails to expand the CDP acronym, but identifies from these, and company, reports, and information in the Tyndall Centre’s database, ten corporate responses to climate change, i.e. non-fundamental technology innovation, behavioural change, finding new markets/uses for products, developing low-carbon products, investment in low-carbon portfolios, acquisition of assets that balance carbon portfolios, fundamental technological innovation, participation in emissions trading and/or the Clean Development Mechanism, and educating the public. Tables ten determinants, five motivational and five drivers, of corporate response, outlines motivational factors as profit, credibility, fiduciary obligation, guiding against risk, and ethical consideration, and gives driving factors as energy prices, market shifts, regulation, investor pressure and technological change, adding three barriers to corporate response of lack of a strong policy framework, and uncertainty about both government action and the market-place. Originality/value concludes that the companies are very aware that climate change has become a strategic issue.ISSN: 0263-2373Reference: 37AB276DOI: 10.1016/j.emj.2007.08.002
Keywords: Carbon, Climatic protection, Corporate strategy, Environmental management, Pollution control