Ambitious corporate climate action: Impacts of science-based target and internal carbon pricing on carbon management reputation-Evidence from Japan

Kuo, Lopin; Chang, Bao‐Guang

doi:10.1016/j.spc.2021.04.025

Cited by 19 publications

(26 citation statements)

References 70 publications

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“…When examining the literature on actions for deep decarbonization responses, it appears that actions are rather limited to mostly administrative (i.e., target setting and internal carbon pricing -e.g., Aldy and Gianfrate 2019;Kuo and Chang 2021;Zhu et al 2022) and applicative actions (i.e.,, energy efficiency, process improvements, and product innovations -e.g., Böttcher and Müller 2015;Dahlmann et al 2019;Schneider et al 2020) and more concentrated on sector-specific solutions, such as for the automotive (Böttcher and Müller 2015), construction (Orsini and Marrone 2019), or shipping industries (Bows-Larkin 2015; Schneider et al 2020). This suggests that actions towards deep decarbonization should definitely consider sector-specific solutions, such as focused product innovation and process improvements; however, it should consider the ability for certain actions to act as catalysts for further action.…”

Section: Comparison Of Actions In the Two Literature Streamsmentioning

confidence: 99%

Beyond conventional corporate responses to climate change towards deep decarbonization: a systematic literature review

2023

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Over the past 20 years, the literature on corporate responses to climate change has offered a vast array of theoretical and practical insights into organizational efforts to reduce business-related carbon emissions. However, it remains unclear whether these efforts will result in significant reductions of carbon emissions. Presently, it becomes crucial to understand, if, why, and how companies can effectively respond to the current challenges of deep decarbonization, defined as the process of emission reduction down to, or close to, zero to limit global warming. By means of a systematic literature review with 370 identified papers, we are able to categorize the main findings of the literature according to the four most common areas of investigation, including drivers, actions, barriers, and facilitators. Additionally, we conduct a comparative analysis of the literature along these four areas of investigation according to two categories: conventional responses and deep decarbonization responses. The results show that the literature on conventional responses to climate change (n = 321) extensively covers all four areas of investigation; however, it only touches on the descriptive (i.e., ‘what’) aspects of decarbonization. The recent and emerging literature on deep decarbonization responses (n = 49) provides novel insights on the prescriptive (i.e., ‘why’ and ‘how’) aspects of deep decarbonization. However, this literature is restricted to mostly regional and industrial foci, and it does not connect drivers, barriers, and facilitators in a systematic way. Thus, we highlight key implications for future research and practice in order to effectively address corporate deep decarbonization.

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Section: Comparison Of Actions In the Two Literature Streamsmentioning

confidence: 99%

Beyond conventional corporate responses to climate change towards deep decarbonization: a systematic literature review

2023

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“…The seventeen studies were mostly published in peer-reviewed journals, commonly related to the broad fields of climate change, environmental protection, or sustainability, but in some cases with a narrower focus, e.g., sustainable finance [ 56 ], global policy [ 45 ], and energy and buildings [ 47 ]. Half of the studies were published since 2020 [ 48 , 49 , 56 – 58 ] or were still undergoing peer review at the time of writing [ 51 – 53 ]. This indicates that academia is just beginning to study SBTs and data for empirical analysis is just beginning to emerge.…”

Section: Resultsmentioning

confidence: 99%

“…The studies employ a variety of methods, such as statistical analyses informed by theories of corporate climate behavior (e.g., [ 52 , 53 , 57 ]), case studies of selected companies (e.g., [ 50 , 51 ]), and reviews of SBT methods or SBTi guidelines (e.g., [ 26 , 44 , 49 ]), with many studies employing a mix of methods. Some studies focus on companies in specific regions (Europe, Asia, the UK, and Japan [ 50 , 51 , 56 , 58 ]), or sectors (construction [ 47 ]), while most have a global scope. Some studies address SBTs as an element of a broader inquiry (e.g., [ 44 , 52 ]), but we focus on their SBT content here.…”

Section: Resultsmentioning

confidence: 99%

“…According to participants, SBTs aid in future-proofing, linking individual climate actions to coherent measures, developing a sustainable carbon trajectory, making comparisons to other companies, and protecting the company’s reputation. Kuo and Chang [ 58 ] considered the relationship of SBT adoption and internal carbon pricing on the carbon management reputation of Japanese companies, with CDP scores used as a proxy for the latter. For companies in low-carbon emitting industries, there was a stronger positive relationship between SBT adoption and CDP score.…”

Section: Resultsmentioning

confidence: 99%

“…The process led to the identification of seventeen studies included in this review [ 5 , 6 , 26 , 36 , 44 – 53 , 56 – 58 ]. Although our literature search was limited to two databases and potentially missed some relevant studies, particularly if not published in peer review journals, we believe it led to a solid basis for the review.…”

Section: Methods: Identification Of Literaturementioning

confidence: 99%

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Can Science-Based Targets Make the Private Sector Paris-Aligned? A Review of the Emerging Evidence

Tilsted

Addas

Lloyd

2022

Curr Clim Change Rep

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Purpose of Review Companies increasingly set science-based targets (SBTs) for reducing greenhouse gas emissions. We review literature on SBTs to understand their potential for aligning corporate emissions with the temperature goal of the Paris Agreement. Recent Findings SBT adoption by larger, more visible companies in high-income countries has accelerated. These companies tend to have a good prior reputation for managing climate impacts and most appear on track for meeting their scope 1 and 2 SBTs. More research is needed to distinguish between substantive and symbolic target-setting and understand how companies plan to achieve established SBTs. There is no consensus on whether current target-setting methods appropriately allocate emissions to individual companies or how much freedom companies should have in setting SBTs. Current emission accounting practices, target-setting methods, SBT governance, and insufficient transparency may allow companies to report some emission reductions that are not real and may result in insufficient collective emission reductions. Lower rates of SBT diffusion in low- and middle-income countries, in certain emission-intensive sectors, and by small- and medium-sized enterprises pose potential barriers for mainstreaming SBTs. While voluntary SBTs cannot substitute for more ambitious climate policy, it is unclear whether they delay or encourage policy needed for Paris alignment. Summary We find evidence that SBT adoption corresponds to increased climate action. However, there is a need for further research from a diversity of approaches to better understand how SBTs may facilitate or hinder a just transition to low-carbon societies.

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Green corporate image: Assessing the effects of climate change management practices on corporate reputation

Khalid,

Sun,

Guo

et al. 2023

Corp Soc Responsibility Env

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The overarching aim of this study is to determine how distinct climate change management practices (CMPs), ranging from the establishment of carbon targets to the adoption of renewable energy and carbon assurance, resonate in the realm of corporate reputation (CR). The study sample comprises US S&P 500 companies (2016–2018). Reputation insights are obtained from the Global RepTrak® Pulse of the Reputation Institute, and data on the adoption of various CMPs are extracted from Carbon Disclosure Project reports. Logistic regression analysis shows that the findings underscore the pivotal role of absolute carbon and renewable energy use targets in enhancing CR. However, the effects of CMPs on CR vary with carbon trading regulations and intensive sector affiliation. The main findings hold after the Heckman selection model is used as an endogeneity technique. This research offers valuable insights to corporations that seek to strategically manage their reputation amidst the challenges of climate change.

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Ambitious corporate climate action: Impacts of science-based target and internal carbon pricing on carbon management reputation-Evidence from Japan

Cited by 19 publications

References 70 publications

Beyond conventional corporate responses to climate change towards deep decarbonization: a systematic literature review

Beyond conventional corporate responses to climate change towards deep decarbonization: a systematic literature review

Can Science-Based Targets Make the Private Sector Paris-Aligned? A Review of the Emerging Evidence

Green corporate image: Assessing the effects of climate change management practices on corporate reputation

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