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Engaging Supply Chains in Climate Change

  • Chonnikarn Fern Jira

    ()

    (Harvard Business School)

  • Michael W. Toffel

    ()

    (Harvard Business School, Technology and Operations Management Unit)

Suppliers are increasingly being asked to share information about their vulnerability to climate change and their strategies to reduce greenhouse gas emissions. Their responses vary widely. We theorize and empirically identify several factors associated with suppliers being especially willing to share this information with buyers, focusing on attributes of the buyers seeking this information and of the suppliers being asked to provide it. We test our hypotheses using data from the Carbon Disclosure Project's Supply Chain Program, a collaboration of multinational corporations requesting such information from thousands of suppliers in 49 countries. We find evidence that suppliers are more likely to share this information when requests from buyers are more prevalent, when buyers appear committed to using the information, when suppliers belong to more profitable industries, and when suppliers are located in countries with greenhouse gas regulations. We find evidence that these factors also influence the comprehensiveness of the information suppliers share and their willingness to share the information publicly.

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Paper provided by Harvard Business School in its series Harvard Business School Working Papers with number 12-026.

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Length: 41 pages
Date of creation: Oct 2011
Date of revision: Oct 2012
Handle: RePEc:hbs:wpaper:12-026
Contact details of provider: Postal: Soldiers Field, Boston, Massachusetts 02163
Phone: 617.495.6000
Web page: http://www.hbs.edu/

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