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The management of greenhouse gas emissions in large European companies

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  • Rory Sullivan

Abstract

Based on the published climate change policies and the performance of 125 large European companies, this paper examines how these companies are responding to regulatory and other pressures to reduce their greenhouse gas emissions. It concludes that most large companies have now established the management systems and processes necessary for them to effectively manage their emissions and related business risks. Companies with significant greenhouse gas emissions have noticeably stronger governance oversight and reporting. However, it also suggests that a significant minority of companies – perhaps 20% of the total – have significant weaknesses in their management systems and processes. Furthermore, a majority of companies have yet to significantly reduce their emissions, and just one‐third expect their emissions to reduce over time. This paper argues that the uncertainties in climate change policy are the key barrier to companies taking a more proactive approach to reducing their emissions. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Rory Sullivan, 2009. "The management of greenhouse gas emissions in large European companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(6), pages 301-309, November.
  • Handle: RePEc:wly:corsem:v:16:y:2009:i:6:p:301-309
    DOI: 10.1002/csr.187
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    Cited by:

    1. Binh Hoang Duc & Khang Do Ba, 2017. "Business responses to climate change: strategies for reducing greenhouse gas emissions in Vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 23(4), pages 596-620, August.
    2. Naranjo Tuesta, Yenny & Crespo Soler, Cristina & Ripoll Feliu, Vicente Mateo, 2022. "Bibliometric and systemic analysis of the relationship between management and carbon," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    3. Rory Sullivan & Andy Gouldson, 2016. "Comparing the Climate Change Actions, Targets and Performance of UK and US Retailers," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(3), pages 129-139, May.
    4. Natalie Kyung Won Kim & Sera Choi & Taejin Jung & Sohee Park, 2023. "How does demand uncertainty from climate change exposure affect the firms' cost structures? Examining the real effects of climate change on the firms' operational decisions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2969-2989, November.
    5. Kathleen Herbohn & Ru Gao & Peter Clarkson, 2019. "Evidence on Whether Banks Consider Carbon Risk in Their Lending Decisions," Journal of Business Ethics, Springer, vol. 158(1), pages 155-175, August.
    6. Yijie Dou & Qinghua Zhu & Joseph Sarkis, 2015. "Integrating Strategic Carbon Management into Formal Evaluation of Environmental Supplier Development Programs," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 873-891, December.
    7. Won‐Moo Hur & Yeonshin Kim & Kyungdo Park, 2013. "Assessing the Effects of Perceived Value and Satisfaction on Customer Loyalty: A ‘Green’ Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(3), pages 146-156, May.
    8. Daniel C. Matisoff & Douglas S. Noonan & John J. O'Brien, 2013. "Convergence in Environmental Reporting: Assessing the Carbon Disclosure Project," Business Strategy and the Environment, Wiley Blackwell, vol. 22(5), pages 285-305, July.
    9. Federica Gasbarro & Jonatan Pinkse, 2016. "Corporate Adaptation Behaviour to Deal With Climate Change: The Influence of Firm‐Specific Interpretations of Physical Climate Impacts," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(3), pages 179-192, May.
    10. Yenny Naranjo Tuesta & Cristina Crespo Soler & Vicente Ripoll Feliu, 2021. "Carbon management accounting and financial performance: Evidence from the European Union emission trading system," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1270-1282, February.
    11. Ayman Hassan Bazhair & Saleh F. A. Khatib & Hamzeh Al Amosh, 2022. "Taking Stock of Carbon Disclosure Research While Looking to the Future: A Systematic Literature Review," Sustainability, MDPI, vol. 14(20), pages 1-24, October.
    12. Zahra Borghei, 2021. "Carbon disclosure: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5255-5280, December.
    13. Matisoff, Daniel C., 2013. "Different rays of sunlight: Understanding information disclosure and carbon transparency," Energy Policy, Elsevier, vol. 55(C), pages 579-592.
    14. Tingko Lee & Wei‐Tsung Liu & Jun‐Xian Yu, 2021. "Does TMT composition matter to environmental policy and firm performance? The role of organizational slack," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 196-213, January.
    15. Azlan Amran & Say Keat Ooi & Cheng Yew Wong & Fathyah Hashim, 2016. "Business Strategy for Climate Change: An ASEAN Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(4), pages 213-227, July.
    16. Natalia Ortiz‐de‐Mandojana & Javier Aguilera‐Caracuel & Matilde Morales‐Raya, 2016. "Corporate Governance and Environmental Sustainability: The Moderating Role of the National Institutional Context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(3), pages 150-164, May.
    17. Lei Wang & Steven Li & Simon Gao, 2014. "Do Greenhouse Gas Emissions Affect Financial Performance? – an Empirical Examination of Australian Public Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 23(8), pages 505-519, December.
    18. Ana Beatriz Lopes de Sousa Jabbour & Diego Vazquez‐Brust & Charbel José Chiappetta Jabbour & Daniela Andriani Ribeiro, 2020. "The interplay between stakeholders, resources and capabilities in climate change strategy: converting barriers into cooperation," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1362-1386, March.
    19. Ching-Ching Liu & Yue-Hwa Yu & Iddo K. Wernick & Ching-Yuan Chang, 2015. "Using the Electronic Industry Code of Conduct to Evaluate Green Supply Chain Management: An Empirical Study of Taiwan’s Computer Industry," Sustainability, MDPI, vol. 7(3), pages 1-17, March.
    20. Sullivan, Rory & Gouldson, Andy, 2013. "Ten years of corporate action on climate change: What do we have to show for it?," Energy Policy, Elsevier, vol. 60(C), pages 733-740.
    21. Abrar ul haq, Muhammad, 2018. "A Role of Corporate Governance and Firm’s Environmental Performance: A Moderating Role of Institutional Regulations," MPRA Paper 100047, University Library of Munich, Germany, revised 2018.
    22. Shouhao Li & Weiquan Cheng & Jingjing Li & Hao Shen, 2021. "Corporate Social Responsibility Development and Climate Change: Regional Evidence of China," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    23. Konstantinos Evangelinos & Ioannis Nikolaou & Walter Leal Filho, 2015. "The Effects of Climate Change Policy on the Business Community: A Corporate Environmental Accounting Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 257-270, September.
    24. Lin, Li-Pin (Lynn) & Yu, Chia-Yuan & Chang, Fu-Chen, 2018. "Determinants of CSER practices for reducing greenhouse gas emissions: From the perspectives of administrative managers in tour operators," Tourism Management, Elsevier, vol. 64(C), pages 1-12.
    25. Ozgur Isil & Rose Sebastianelli, 2020. "Arcs of carbon awareness in the value chain and their antecedents," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 503-518, February.

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