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From “business as usual” to tackling climate change: Exploring factors affecting low-carbon decision-making in the canadian oil and gas sector

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  • Abreu, Mônica Cavalcanti Sá de
  • Webb, Kernaghan
  • Araújo, Francisco Sávio Maurício
  • Cavalcante, Jaime Phasquinel Lopes

Abstract

This article investigates empirical evidence from the Canadian oil and gas sector regarding the key factors behind corporate decision-making in moving from “business as usual” to tackling climate change. The findings are based on survey data from a sample of 127 managers. Logit regression analysis revealed that pressure from government, customers, suppliers and competitors increased the likelihood that firms will adopt a low-carbon strategy. Compared to other stakeholders, investors and employees may not be as strongly committed to adopting a climate change strategy. Media and corporate sustainability reporting were not found to be important factors in influencing firms to adopt low-carbon strategies, while command-and-control policies and firms’ perceptions of the risk of resource scarcity were factors that seemed to have the most influence on corporate decision-making. Multinational oil and gas firms headquartered in Canada appeared to be more likely to adopt low-carbon strategies than foreign multinational oil and gas firms. This research contributes to a better understanding of the key factors that affect corporate decision-making concerning GHG emission-reduction policies. Regulatory action based on significant engagement with affected stakeholders would appear to be particularly important in creating a broad base of support and pressure for action on climate change.

Suggested Citation

  • Abreu, Mônica Cavalcanti Sá de & Webb, Kernaghan & Araújo, Francisco Sávio Maurício & Cavalcante, Jaime Phasquinel Lopes, 2021. "From “business as usual” to tackling climate change: Exploring factors affecting low-carbon decision-making in the canadian oil and gas sector," Energy Policy, Elsevier, vol. 148(PA).
    • Handle: RePEc:eee:enepol:v:148:y:2021:i:pa:s0301421520306431
    DOI: 10.1016/j.enpol.2020.111932
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