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1 – 10 of over 130000Anna Young-Ferris, Arunima Malik, Victoria Calderbank and Jubin Jacob-John
Avoided emissions refer to greenhouse gas emission reductions that are a result of using a product or are emission removals due to a decision or an action. Although there is no…
Abstract
Purpose
Avoided emissions refer to greenhouse gas emission reductions that are a result of using a product or are emission removals due to a decision or an action. Although there is no uniform standard for calculating avoided emissions, market actors have started referring to avoided emissions as “Scope 4” emissions. By default, making a claim about Scope 4 emissions gives an appearance that this Scope of emissions is a natural extension of the existing and accepted Scope-based emissions accounting framework. The purpose of this study is to explore the implications of this assumed legitimacy.
Design/methodology/approach
Via a desktop review and interviews, we analyse extant Scope 4 company reporting, associated accounting methodologies and the practical implications of Scope 4 claims.
Findings
Upon examination of Scope 4 emissions and their relationship with Scopes 1, 2 and 3 emissions, we highlight a dynamic and interdependent relationship between quantification, commensuration and standardization in emissions accounting. We find that extant Scope 4 assessments do not fit the established framework for Scope-based emissions accounting. In line with literature on the territorializing nature of accounting, we call for caution about Scope 4 claims that are a distraction from the critical work of reducing absolute emissions.
Originality/value
We examine the implications of assumed alignment and borrowed legitimacy of Scope 4 with Scope-based accounting because Scope 4 is not an actual Scope, but a claim to a Scope. This is as an act of accounting territorialization.
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Filippo C. Wezel and Arjen van Witteloostuijn
This paper extends organizational ecology by making an attempt to disentangle the consequences of scale and scope economies for organizational survival under different product…
Abstract
This paper extends organizational ecology by making an attempt to disentangle the consequences of scale and scope economies for organizational survival under different product market configurations. We test our hypotheses by analyzing the mortality rates of 643 UK motorcycle producers during the 1899–1993 period. The findings obtained offer two specific contributions. First, by separating the performance impact of scale from scope economies we clarify the complex mechanisms behind the survival consequences of different organizational strategies. Second, we show how the intensity of both scale and scope forces is relative to the aggregate market-level product configuration. The implications of these findings for organizational ecology and strategic management, and their cross-fertilization, are further discussed.
Joel Blit, Christopher C. Liu and Will Mitchell
Strategy research has long understood that reconfiguration of the scope of the activities a firm engages in over time is critical to its long-run success, while under-emphasizing…
Abstract
Strategy research has long understood that reconfiguration of the scope of the activities a firm engages in over time is critical to its long-run success, while under-emphasizing differences in redeployment strategy that underlie apparently similar scope and changes in scope. In this paper, we build on the idea that a firm’s number of activities (scope) and change in activities (turnover) arise from two fundamental rates of redeployment: the rate at which activities are added and the rate at which activities are subtracted. In net, the turnover rate reflects how actively a firm reconfigures its resource base by redeploying resources via addition and subtraction of activities. We develop a model that links addition and subtraction with the composition of a firm’s activities and then provide an empirical illustration using data from the U.S. Patents and Trademarks Office. As an example of one extension, the model can be generalized to incorporate elements of absorptive capacity. The analysis contributes to our understanding of how firms reconfigure their activities and provide managers with a clearer understanding of tools that guide redeployment of existing resources.
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Jeongsik Jay Lee and Natarajan Balasubramanian
The authors study the relation between a firm’s combinative capability and value creation in the context of technological scope expansion. On a sample of Compustat firms that…
Abstract
The authors study the relation between a firm’s combinative capability and value creation in the context of technological scope expansion. On a sample of Compustat firms that applied for US patents between 1980 and 2001, the authors find that firm value, measured using Tobin’s q, decreases with increases in technological scope (measured as the number of unique patent classes). However, when firms expand by combining different classes into a single patent, the authors find that this negative effect is significantly diminished. These findings indicate that increasing technological scope likely creates value only when the firm is able to integrate the components into a single technology; simply maintaining different technological components within the firm boundary without integration appears to subject the firm to a discount.
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Sendil Ethiraj and Phanish Puranam
Systemic industries comprise groups of firms making component products that are valued as complements by consumers (PC, automobiles, aircraft, networking). In this study, we…
Abstract
Systemic industries comprise groups of firms making component products that are valued as complements by consumers (PC, automobiles, aircraft, networking). In this study, we investigate the distribution of research effort across the technological system by individual firms as a basis for building competitive advantage. Our empirical setting is a sample of component makers in the personal computer system. We show that even in a sample dominated by focused component manufacturers, diversified research effort in the broader technological system improves R&D productivity in the component technology. Broad scope R&D in the rest of the system also increases the marginal benefits of research efforts in the component technology, though at a diminishing rate. We explore the determinants of this complementarity between the scope of system level research and the focus on component level research, and derive implications for competitive advantage.
Paulo Guilherme Fuchs, Manoel Honorato Filho, Liziane Araújo da Silva, Ana Regina Aguiar Dutra and José Baltazar Salgueirinho Osório de Andrade Guerra
Universities and their actions affect the environment directly and significantly. Therefore, the carbon footprint (CF) needs to be implemented in these institutions for mitigating…
Abstract
Purpose
Universities and their actions affect the environment directly and significantly. Therefore, the carbon footprint (CF) needs to be implemented in these institutions for mitigating climate change and its potential risks. Based on this understanding, the university consortium quality and environment (QualEnv) stands out by its main objective – to increase the university's contribution to sustainable development (SD) through the deployment of systematic environmental practices and quality processes. Hence, the purpose of this paper is to present the CF of the Latin American universities of the QualEnv consortium.
Design/methodology/approach
The study was based on the actions for adopting CF and its implementation at the universities that take part in the QualEnv consortium. The measurement process and report presentation were done properly by the universities and published as institutional documents. Therefore, data were collected and analyzed through a document search, systematic literature review and participant observation.
Findings
The results show knowledge deepening and systematization on CF in higher education. In addition, it presents the effort of a group of universities that, through a research network, seek to adopt practices towards a carbon-neutral university, which requires an incremental and systematic change to break out of the traditional system.
Originality/value
This paper discusses the practical implications for universities and the need to implement initiatives for measuring and reducing their CF since it shows how the institutions belonging to QualEnv consortium have created their own strategies to mitigate climate change and contribute to SD.
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Laurens Swinkels and Thijs Markwat
To better understand the impact of choosing a carbon data provider for the estimated portfolio emissions across four asset classes. This is important, as prior literature has…
Abstract
Purpose
To better understand the impact of choosing a carbon data provider for the estimated portfolio emissions across four asset classes. This is important, as prior literature has suggested that Environmental, Social and Governance scores across providers have low correlation.
Design/methodology/approach
The authors compare carbon data from four data providers for developed and emerging equity markets and investment grade and high-yield corporate bond markets.
Findings
Data on scope 1 and scope 2 is similar across the four data providers, but for scope 3 differences can be substantial. Carbon emissions data has become more consistent across providers over time.
Research limitations/implications
The authors examine the impact of different carbon data providers at the asset class level. Portfolios that invest only in a subset of the asset class may be affected differently. Because “true” carbon emissions are not known, the authors cannot investigate which provider has the most accurate carbon data.
Practical implications
The impact of choosing a carbon data provider is limited for scope 1 and scope 2 data for equity markets. Differences are larger for corporate bonds and scope 3 emissions.
Originality/value
The authors compare carbon accounting metrics on scopes 1, 2 and 3 of corporate greenhouse gas emissions carbon data from multiple providers for developed and emerging equity and investment grade and high yield investment portfolios. Moreover, the authors show the impact of filling missing data points, which is especially relevant for corporate bond markets, where data coverage tends to be lower.
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Yoo Na Youm, Jin Young Lee and Chong Kyoon Lee
Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to…
Abstract
Purpose
Considering that corporate social responsibility (CSR) addresses a wide range of claims from multiple stakeholders, companies must determine their CSR scope. This paper aims to examine what factors influence a firm’s decision in its scope of CSR. In exploring what factors influence CSR scope, the authors examine the relationship between a firm’s prosocial orientation and CSR and further examine its boundary conditions by the existence of CSR department.
Design/methodology/approach
This study uses a data set – the Social Value Survey – administered by the Center for Social Value Enhancement Studies based in the context of Korean firms. Based on 86 firm responses, statistical models were performed to test hypotheses.
Findings
The findings show that a firm’s prosocial orientation is positively associated with CSR scope. Further, this study shows that there is a negative moderating effect of the CSR department for the relationship between the prosocial orientation and CSR scope.
Originality/value
This study attempts to contribute to the extensive line of work on the antecedents of CSR by exploring the simultaneous existence of various drivers of CSR and the interplay between the drivers. And this study enhances the understanding on what factors influence the decision of CSR scope within a complex system of diverse stakeholder relationships. Additionally, this study has potentially shed light on the role of CSR departments to determine CSR scope.
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Frederik Dahlmann, Stephen Brammer and Jens K. Roehrich
Drawing on paradox theory and the category of the “performing-organizing” paradox, the study investigates the tensions firms experience in the context of organizing the processes…
Abstract
Purpose
Drawing on paradox theory and the category of the “performing-organizing” paradox, the study investigates the tensions firms experience in the context of organizing the processes involved in managing their indirect GHG emissions.
Design/methodology/approach
The authors develop hypotheses to explain why the paradox elements of supply chain transparency and supply chain coordination affect firms' ability to reduce their indirect supply chains GHG emissions. Using a two-stage method based on data from Refinitiv and CDP for 2002 to 2021, the authors test this study’s hypotheses through panel regression analyses.
Findings
While greater transparency experience with scope 3 emissions disclosure, GSCM practices and broader supply chain engagement are all associated with higher levels of scope 3 emissions levels, both long-term transparency experience and GSCM practices are also associated with relative reductions in scope 3 emissions over time.
Practical implications
Given growing pressures on firms to demonstrate both transparency and legitimacy regarding their scope 3 emissions, firms must understand the characteristics of this paradox as this has implications for how emissions performance is perceived and managed. This study's results suggested that firms need to take both a long-term perspective and effectively communicate the differences involved in reporting their emissions performance to avoid unwarranted criticism.
Originality/value
Filling a gap in sustainable OSCM studies by providing large-scale quantitative insights into the relationships between organizing and performing, the authors demonstrate that the processes involved in firms' efforts of measuring and managing their indirect scope 3 emissions are paradoxically affected by whether performance outcomes are specified as annual absolute levels of scope 3 emissions, or relative changes over time.
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Mohamed Toukabri and Faouzi Jilani
This study aims to examine the impact of board gender diversity on company greenhouse gas (GHG) performance, the influence of a critical mass of women on boards on carbon…
Abstract
Purpose
This study aims to examine the impact of board gender diversity on company greenhouse gas (GHG) performance, the influence of a critical mass of women on boards on carbon performance (CP) score and its three components separately (Scope 1, Scope 2 and Scope 3). This study examines the presence of institutional investors as a contingent factor that intensifies the effectiveness of the critical mass of female directors on CP.
Design/methodology/approach
Using a sample of the US companies listed on Securities and Exchange Commission for the period 2011–2018 and making a total of 2416 observations. This study shows that reaching a critical mass of female board members enhances the level of CP. In addition, this study finds that the presence of institutional investors positively moderates this relationship.
Findings
The main results suggest that there is a nonlinear relationship between a critical mass of women directors and CP, and that institutional investors play a strategic role in shaping this relationship. The effect of institutional investors on the three components of CP is also analyzed.
Research limitations/implications
This research is characterized by the methodology adopted for a quantitative variable for measuring CP. Indeed, other research the proxies related to carbon measurements are often used as a simple binary variable. This study verifies the harmony of the theory of critical mass measuring diversity within the board of directors, the presence of institutional investors on GHG emissions (Scope 1, Scope 2 and Scope 3), unlike previous studies (Tingbani et al., 2020; Nuber and Velte, 2021) which only focus on the two measures of carbon emissions (Scope 1 and Scope 2).
Originality/value
This study shows identically that gender diversity on the board must reach a critical mass of three women directors to motivate and influence CP. We fill the gap in previous research regarding the role played by the institutional environment of the firm in improving CP. Third, this study highlights the relevance of having a critical mass of pressure-resistant female directors on boards due to their engagement in climate change issues and CP.
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