Corporate Responses to Climate Change : Achieving Emissions Reductions through Regulation, Self-regulation and Economic Incentives book cover
1st Edition

Corporate Responses to Climate Change
Achieving Emissions Reductions through Regulation, Self-regulation and Economic Incentives

ISBN 9781906093082
Published November 8, 2008 by Routledge
364 Pages

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Book Description

Given the scale of the greenhouse gas emissions reductions that are seen as necessary to avert the worst effects of climate change, policy action is likely to result in a complete reshaping of the world economy. The consequences are not confined to 'obvious' sectors such as power generation, transport and heavy industry; virtually every company's activities, business models and strategies will need to be completely rethought. In addition, beyond their core business activities, companies have the potential to make important contributions to reducing greenhouse gas emissions through the allocation of capital, through innovation and the development of new technologies, and through their influence on the actions taken by governments on climate change.

Corporate Responses to Climate Change has been written at a crucial point in the climate change debate, with the issue now central to economic and energy policy in many countries. The book analyses current business practice and performance on climate change, in the light of the dramatic changes in the regulatory and policy environment over the last five years. More specifically, it examines how climate change-related policy development and implementation have influenced corporate performance, with the objective of using this information to consider how the next stage of climate change policy – regulation, incentives, voluntary initiatives – may be designed and implemented in a manner that delivers the real and substantial reductions in greenhouse gas emissions that will be required in a timely manner, while also addressing the inevitable dilemmas at the heart of climate change policy (e.g. how are concerns such as energy security to be squared with the need for drastic reductions in greenhouse gas emissions? Can economic growth be reconciled with greenhouse gas emissions? Can emissions reductions be delivered in an economically efficient manner?).

The book focuses primarily on two areas. First, how have companies actually responded to the emerging regulatory framework and the growing political and broader public interest in climate change? Have companies reduced their greenhouse gas emissions and by how much? Have companies already started to position themselves for the transition to a low-carbon economy? Does corporate self-regulation – unilateral commitments and collective voluntary approaches – represent an appropriate response to the threat presented by climate change? What are the barriers to further action? Second, the book examines what the key drivers for corporate action on climate change have been: regulation, stakeholder pressure, investor pressure. Which policy instruments have been effective, which have not, and why? How have company actions influenced the strength of these pressures?

Corporate Responses to Climate Change is a state-of-the-art analysis of corporate action on climate change and will be essential reading for businesses, policy-makers, academics, NGOs, investors and all those interested in how the business sector is and should be dealing with the most serious environmental threat faced by our planet.

Table of Contents

Part I: Introduction 1. Introduction Rory Sullivan, Insight Investment, UK

 2. Corporate greenhouse gas emissions management: the state of play Rory Sullivan, Rachel Crossley and Jennifer Kozak, Insight Investment, UK Part II: Public policy: regulation, economic incentives and voluntary programmes

3. The effectiveness of climate change policy as an investment driver in the power sector William Blyth, Chatham House and Oxford Energy Associates, UK, and Rory Sullivan, Insight Investment, UK

4. The influence of climate change regulation on corporate responses: the case of emissions trading Ans Kolk and Jonatan Pinkse, University of Amsterdam Business School, The Netherlands

5. CDM and its development impact: the role and behaviour of the corporate sector in CDM projects in Indonesia Takaaki Miyaguchi and Rajib Shaw, Kyoto University, Japan

6. Encouraging innovation through government challenge programmes: a case study of PV-based boats Olga Fadeeva and Johannes Brezet, TU Delft and Cartesius Institute, The Netherlands, and Yoram Krozer, University of Twente and Cartesius Institute, The Netherlands

7. The role of voluntary industry–government partnerships in reducing greenhouse gas emissions: a case study of the USEPA Climate Leaders programme Jeffrey Apigian, Clark University, USA

8. Ten years of the Australian Greenhouse Challenge: real or illusory benefits? Rory Sullivan, Insight Investment, UK

9. The Mexico Greenhouse Gas Program: corporate responses to climate change initiatives in a ‘non-Annex I’ country Leticia Ozawa-Meida, SEMARNAT, Mexico, Taryn Fransen, World Resources Institute, Mexico, and Rosa María Jiménez-Ambriz, CESPEDES, Mexico Part III: Non-state actors and their influence on corporate climate change performance

10. The Climate Group: advancing climate change leadership Jim Walker, The Climate Group, UK

11. Climate protection partnerships: activities and achievements Oliver Salzmann, Ulrich Steger and Aileen Ionescu-Somers, IMD, Switzerland

12. The evolution of UK institutional investor interest in climate change Rory Sullivan, Insight Investment, UK, and Stephanie Pfeifer, Institutional Investors Group on Climate Change, UK

13. Reporting on climate change: the case of Lloyds TSB Andrea B. Coulson, University of Strathclyde, UK Part IV: Corporate responses and case studies

14. Curbing greenhouse gas emissions on a sectoral basis: the Cement Sustainability Initiative Timo Busch, ETH Zurich, Switzerland, Howard Klee, World Business Council for Sustainable Development, Switzerland, and Volker H. Hoffmann, ETH Zurich, Switzerland

15. Novartis: demonstrating leadership through emissions reductions Helen Mathews, University of Basel, Switzerland, and Claus-Heinrich Daub, University of Applied Sciences Northwestern, Switzerland

16. Climate change solutions at Vancity Credit Union Ian Gill and Amanda Pitre-Hayes, Vancity, Canada

17. The Pole Position project: innovating energy-efficient pumps at Grundfos Joan Thiesen and Arne Remmen, Aalborg University, Denmark

18. Responding to climate change: the role of organisational learning processes Marlen Arnold, Technische Universität München, Germany

19. Fasten your seatbelts: European airline responses to climate change turbulence Christian Engau, David Sprengel and Volker H. Hoffmann, ETH Zurich, Switzerland Part V: Closing sections

20. From good to best practice on emissions management Ryan Schuchard, Raj Sapru and Emma Stewart, Business for Social Responsibility, USA, and Rory Sullivan, Insight Investment, UK

21. Do voluntary approaches have a role to play in the response to climate change? Rory Sullivan, Insight Investment, UK

22. Setting a future direction for climate change policy Rory Sullivan, Insight Investment, UK

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This book ... is strongly recommended to those interested in the instruments of environmental policies, organizational responses to CC and corporate disclosure. The book initiates setting scores to benchmarking companies' disclosure on CC. - Social and Environmental Accountability Journal 2.1 (November 2009) |

| None of the chapters is particularly weak, and some are simply excellent. The table on page 120, "Factors that influence business responses to climate change", which is part of a chapter on the Mexican Greenhouse Gas Program is worth particularly close attention. The discussion of the motivations for corporations to engage in voluntary partnerships is most enlightening, and gives enough information to confirm any environmentalist's suspicions of corporations pursuing "regulatory capture" of the State ... anyone who wants a serious understanding of the factors that affect corporate responses to climate change, needs to read this volume, which has justly been praised by the great and the good of the world's climateriat. Read an interview with editor Rory Sullivan on the same blog: - Pending Ecological Debacle blog,5 January 2009 |

| Focusing on an area that is arguably central to the economic and energy policy in many countries, this title analyses current business practice and performance on climate change. A compilation of contributions by a number of environmental specialists, Corporate responses to climate change investigates public policy, non-state actors and their influence on corporate climate change performance and responses by corporations to the need for change. Essential reading for businesses, policymakers, academics, NGOs, investors and all those interested in how the business sector is and should be dealing with the most serious environmental threat faced by our planet. - The Environmentalist 72 (February 2009) |

| This is a book you can read as either "the glass is half empty" or "the glass is half full" in the business response to climate change. In his opening essay, editor Rory Sullivan argues that climate change is the most serious environmental problem facing the planet. He surveys 125 British companies for their response. He finds that about a third of them have gone beyond the basics by committing to reduce greenhouse gas emissions, supporting effective government action on climate, and other steps. But 21 companies "scored extremely poorly, suggesting that there may be significant weaknesses in the manner in which these companies are managing their greenhouse gas emissions." Sullivan says "Companies accept that they have responsibility for managing or reducing their GHG emissions and most have ... established the governance and policy frameworks and implementation mechanisms necessary for them to manage these emissions." At the same time, "Most companies do not see climate change as a risk to their business." Businesses are not trying to guide public policy, but are waiting to react to public policy as it emerges. - Natural Hazards Observer 33.6 (July 2009)