|July 08, 2010|
Is your firm "indifferent" or "active" about greenhouse gases?
This study compares corporate responses to climate change by firms in the UK and Pakistan. Companies in developing and developed countries face some common barriers in responding to climate change (e.g. lack of financial resources).
But, they have distinct strategies due to differences in acceptance of and support for those initiatives by government and other stakeholders, and regulatory influence specific to their sector.
Pressure from owners, managers and regulators may be needed for firms in developing countries to adopt climate strategies.
Research on how companies respond to pressure to reduce GHG emissions has focused mainly on large multinationals. This study examines the climate change strategies of firms residing in the UK and Pakistan. It classifies firms as indifferent, beginner, emerging, or active based on their climate strategies and identifies the drivers and barriers for their GHG reduction activities.
Country differences: More than 75% of Pakistani companies were
classified as either indifferent or beginner,
compared with just 30% of UK companies.
Strategies for GHG reduction:
Implications for Managers
Implications for Researchers
More research is needed to better understand the role of factors including stakeholder influence, management objectives, institutional support and awareness in different countries (especially developing countries) and across business sectors.
Authors compared strategies for climate change using survey responses from 180 companies from 9 high-emissions sectors in the UK and Pakistan. They conducted factor analysis on operational and managerial activities followed by cluster analysis to group companies based on factor scores for activities.
Jeswani, Harish Kumar, Wehrmeyer, Walter, & Mulugetta, Yacob. (2008). How warm is the corporate response to climate change? Evidence from Pakistan and the UK. Business Strategy and the Environment, 17(1): 46-60.
The Network for Business Sustainability produces practical insights for sustainability professionals based on the most rigorous academic research. Research topics include: climate change, socially conscious consumers, community engagement, and valuing sustainability.