Search

Regulators increasingly pressure companies to reduce greenhouse gas (GHG) emissions. In the case of many large corporations, most emissions originate from supply chain operations. Consequently, firms often pass on external pressures to their suppliers by requesting them to implement low-carbon initiatives. While existing research suggests that external pressures from both regulators and customers are mostly effective in motivating environmental action among suppliers, it remains unexplored how organizational perception of risks and opportunities influences this relationship. The purpose of this paper is to examine empirically how the perception of climate change-related risks and opportunities moderates the influence of external pressures on a supplier’s decision to adopt low-carbon supply chain management (LCSCM) practices. The sample consists of 877 companies from 37 countries that supply to large multinational enterprises. Secondary data is sourced from CDP’s Supply Chain Program and other databases and statistically analyzed using binary logistic regression models. The results show that a supplier’s decision to implement LCSCM practices is mainly determined by customer requests to reduce GHG emissions and the stringency and effectiveness of climate change policies in its home country. Contrary to theoretical predictions, little empirical evidence is provided for a moderating influence of perceived climate-related risks and opportunities. However, in most cases a company’s perception of both risks and opportunities is directly and positively related to LCSCM. Firm size is also found to be influential, while profitability, an industry’s GHG intensity, a country’s economic development and the private sector’s responsiveness to environmental issues do not significantly affect suppliers’ behavior. [ABSTRACT FROM AUTHOR]

Abstract: To prevent adverse effects from climate change, it is vital to involve the private sector in mitigation efforts. So far, however, research has insufficiently addressed the determinants of corporate action in specific industries. Our paper aims at bridging this gap by empirically analyzing the global automotive industry's response to climate change mitigation issues. We use publicly available information from 105 sector leaders to investigate the role of external institutional pressures and intra‐organizational governance in the extent of corporate action. Based on a multiple regression analysis, we find that organizational involvement and the integration of climate change into risk management exhibit the greatest influence. Moreover, companies with business activities that necessitate interaction with the end consumer tend to be most active. Our analysis furthermore indicates that neither the stringency of a firm's home country's climate policy regime nor the degree of internationalization is associated with a higher implementation level of response strategies. © 2017 The Authors. Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd. [ABSTRACT FROM AUTHOR]

Abstract: Companies are increasingly challenged for action on climate change. Most studies on business responses to climate change focus on cross‐sector comparisons and neglect intra‐sectoral dynamics. This paper investigates the influence of supply chain position and regional affiliation on climate change strategies within a particular industry. We present a generic framework integrating both market and non‐market responses to climate change. We argue that climate change strategies comprise several corporate activities that have different foci of interaction and four main objectives: governance, innovation, compensation and legitimation. Using a global sample of 116 automotive companies, we conduct a cluster analysis and identify four types of strategy. We find that the sophistication of automobile manufacturers' strategies significantly differs from that of suppliers. Regional affiliation and firm size prove to be determinants of the strategy type pursued. We cannot find evidence for a relationship between financial performance and a company's strategic approach to climate change. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd [ABSTRACT FROM AUTHOR]

So far, research has insufficiently addressed the long-term effectiveness of business responses to climate change in delivering actual outcomes. The aim of this article is therefore to analyze the determinants of such strategies and their influence on firms' financial and carbon performance over time. It is argued that corporate carbon strategies have three main objectives: carbon governance, carbon reduction and carbon competitiveness. To assess the complex interactions between these strategic objectives, their determinants and outcomes, an integrative structural equation model is developed and empirically tested. Data are sourced from a global sample of 45 leading enterprises from the steel, cement and automotive sector, including some of the largest GHG emitters in the world. In order to account for the long-term impacts of strategies, the firm-level change in financial and carbon performance is calculated by comparing two different points in time, namely 2008 and 2013. The results provide empirical evidence for the positive effect of institutional and stakeholder pressure on emission reduction activities. Proof for a positive impact of carbon pressure on organizational capabilities and corporate competitiveness in the context of climate change cannot be established. Surprisingly, the results also indicate no relationship between carbon reduction activities and long-term improvements in carbon performance. However, such measures are linked to long-term financial gains. Advancements in carbon performance, in turn, are not found to be associated with economic benefits. [ABSTRACT FROM AUTHOR]

The need for an interdisciplinary and integrative approach for doing research on business strategies and climate change is gaining increasing recognition. However, there is a consensus that such cross-fertilization is currently missing. Multilevel research methods by virtue of being interdisciplinary in nature may address this need. This paper proposes to advance the adoption of multilevel research approach in the context of business strategies and climate change. As a guide for conducting multilevel assessment, a flexible analytical framework is presented. The framework is developed through a process of structured literature review. The framework consists of thirteen contextual factors spread across five levels and identifies the key multilevel relationships that moderate organisational level climate change related strategy formulation. Level specificities of several theories across these five levels are also identified to facilitate application of the framework in building multilevel hypotheses for business strategies on climate change. In addition, a concise summary of the fundamental concepts of multilevel modelling techniques is provided to help researchers in selecting suitable multilevel models during the operationalization of the framework. The operationalization of the framework is demonstrated by building and testing a three level hypotheses on corporate lobbying activities on climate change issues. It is observed that irrespective of their locations, financially underperforming companies with a larger workforce and belonging to sectors with higher Green House Gas emission intensities particularly lobby intensely on climate change issues. In conclusion, the potential challenges and opportunities in applying the framework for building multilevel theories in the context of business strategies and climate change are discussed. [ABSTRACT FROM AUTHOR]