Strategic Responses to Changing Climate Change Policies: The Role Played by Carbon Accounting

Abstract

Using a broad institutional theory lens, this paper examines the climate change strategies and carbon accounting practices adopted by two New Zealand electricity firms in response to changes in government climate change policies over time (2002–12). The two firms pursue different strategic responses to climate change‐related institutional and economic pressures in order to maintain both legitimacy and a competitive advantage. Five different strategic responses are identified: avoidance, operational conformance, strategic conformance, strategic differentiation, negotiation and manipulation. Firm‐level characteristics are also important drivers of inter‐firm variations in the strategic responses. Further, carbon accounting makes the greatest contribution to carbon reduction when integrated as part of strategic processes that support strategic conformance and strategic differentiation. Carbon monitoring systems, internal carbon information use and carbon disclosure were the main forms of carbon accounting used to realise the different strategies employed.

Sustainable development and financial institutions: Do banks' environmental policies influence customer deposits?

“…This could be ascribable to the demand of the target customers, typically small–medium businesses and consumers, who mainly need loans rather than advanced financial services. Moreover, in larger banks, due to their increased reputation and greater trust from customers, more pressure for environmental impact information is exercised by stakeholders (Bui & Fowler, 2019).…”

Determinants of Carbon Emission Disclosures and UN Sustainable Development Goals: The Case of UK Higher Education Institutions

“…The HEFCE also has a three‐step mechanism in place to ensure the accountability of HEIs in spending funds (HEFCE 2016: 32, para.158). Although environmental audits and assurances are still largely voluntary by HEIs (Tang 2018), an environmental audit results in institutional pressure for better carbon performance and subsequent positive carbon emission disclosures (Bui and Fowler 2017). The value and credibility of carbon reports are expected to increase with carbon audits, if they are properly conducted (Tang 2018).…”

“…This fund was developed to encourage HEIs to manage their physical infrastructure as an integral part of their strategic and operational planning (HEFCE 2009b: 3). Organisations respond to institutional pressures, balancing between organisational legitimacy and economic needs (Bui and Fowler 2017). Considering that the Government is a significant funder of universities, it is expected to use the funds in line with the expectations of and instructions from powerful managerial stakeholders, government, and regulatory bodies.…”

Climate‐related Risk and Financial Statements: Implications for Regulators, Preparers, Auditors and Users

“…First, it will be useful to obtain evidence on changes in users’/preparers’ behaviour in response to the recommendations in APS/PS 2. Company‐level characteristics are found to be important drivers of inter‐company variations in the strategic responses to climate change‐related institutional and economic pressures (Bui and Fowler ). Therefore, and second, it will also be useful to know how many companies were early adopters of the recommendations, including the characteristics of these companies, which will help the AASB and the AUASB understand the determinants and the extent of adoption of the climate‐risk disclosure guidance post 1 January 2019.…”