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Climate change is one of the greatest threats facing humanity, a definitive manifestation of the well-worn links between progress and devastation. This book explores the complex relationship that the corporate world has with climate change and examines the central role of corporations in shaping political and social responses to the climate crisis. The principal message of the book is that despite the need for dramatic economic and political change, corporate capitalism continues to rely on the maintenance of 'business as usual'. The authors explore the different processes through which corporations engage with climate change. Key discussion points include climate change as business risk, corporate climate politics, the role of justification and compromise, and managerial identity and emotional reactions to climate change. Written for researchers and graduate students, this book moves beyond descriptive and normative approaches to provide a sociologically and critically informed theory of corporate responses to climate change.
Given the scale of the greenhouse gas emissions reductions that are seen as necessary to avert the worst effects of climate change, policy action is likely to result in a complete reshaping of the world economy. The consequences are not confined to 'obvious' sectors such as power generation, transport and heavy industry; virtually every company's activities, business models and strategies will need to be completely rethought. In addition, beyond their core business activities, companies have the potential to make important contributions to reducing greenhouse gas emissions through the allocation of capital, through innovation and the development of new technologies, and through their influence on the actions taken by governments on climate change. Corporate Responses to Climate Change has been written at a crucial point in the climate change debate, with the issue now central to economic and energy policy in many countries. The book analyses current business practice and performance on climate change, in the light of the dramatic changes in the regulatory and policy environment over the last five years. More specifically, it examines how climate change-related policy development and implementation have influenced corporate performance, with the objective of using this information to consider how the next stage of climate change policy – regulation, incentives, voluntary initiatives – may be designed and implemented in a manner that delivers the real and substantial reductions in greenhouse gas emissions that will be required in a timely manner, while also addressing the inevitable dilemmas at the heart of climate change policy (e.g. how are concerns such as energy security to be squared with the need for drastic reductions in greenhouse gas emissions? Can economic growth be reconciled with greenhouse gas emissions? Can emissions reductions be delivered in an economically efficient manner?). The book focuses primarily on two areas. First, how have companies actually responded to the emerging regulatory framework and the growing political and broader public interest in climate change? Have companies reduced their greenhouse gas emissions and by how much? Have companies already started to position themselves for the transition to a low-carbon economy? Does corporate self-regulation – unilateral commitments and collective voluntary approaches – represent an appropriate response to the threat presented by climate change? What are the barriers to further action? Second, the book examines what the key drivers for corporate action on climate change have been: regulation, stakeholder pressure, investor pressure. Which policy instruments have been effective, which have not, and why? How have company actions influenced the strength of these pressures? Corporate Responses to Climate Change is a state-of-the-art analysis of corporate action on climate change and will be essential reading for businesses, policy-makers, academics, NGOs, investors and all those interested in how the business sector is and should be dealing with the most serious environmental threat faced by our planet.
How can markets help us adapt to the challenges of climate change? Editor Terry L. Anderson brings together this collection of essays featuring the work of nine leading policy analysts, who argue that market forces are just as important as government regulation in shaping climate policy—and should be at the heart of our response to helping societies adapt to climate change. Anderson notes in his introduction that most current climate policies such as the Paris Agreement require hard-to-enforce collective action and focus on reducing or mitigating greenhouse gases rather than adapting to their negative effects. Adaptive actions can typically deliver much more, faster and more cheaply than any realistic climate policy. The authors tackle a range of issues: the hidden costs of renewable energy sources, the political obstacles surrounding climate change policy, insurance and financial instruments for pricing risk of exposure to the effects of climate change, and more. Reliance on emerging renewable energies and a carbon tax are not enough to prevent the effects of global warming, they argue. We must encourage more private action and market incentives to adapt to a rapidly changing climate.
Private sector action provides one of the most promising opportunities to reduce the risks of climate change, buying time while governments move slowly or even oppose climate mitigation. Starting with the insight that much of the resistance to climate mitigation is grounded in concern about the role of government, this books draws on law, policy, social science, and climate science to demonstrate how private initiatives are already bypassing government inaction in the US and around the globe. It makes a persuasive case that private governance can reduce global carbon emissions by a billion tons per year over the next decade. Combining an examination of the growth of private climate initiatives over the last decade, a theory of why private actors are motivated to reduce emissions, and a review of viable next steps, this book speaks to scholars, business and advocacy group managers, philanthropists, policymakers, and anyone interested in climate change.
A comparative examination of domestic climate politics that offers a theory for cross-national differences in domestic climate policymaking. Climate change threatens the planet, and yet policy responses have varied widely across nations. Some countries have undertaken ambitious programs to stave off climate disaster, others have done little, and still others have passed policies that were later rolled back. In this book, Matto Mildenberger opens the “black box” of domestic climate politics, examining policy making trajectories in several countries and offering a theoretical explanation for national differences in the climate policy process. Mildenberger introduces the concept of double representation—when carbon polluters enjoy political representation on both the left (through industrial unions fearful of job loss) and the right (through industrial business associations fighting policy costs)—and argues that different climate policy approaches can be explained by the interaction of climate policy preferences and domestic institutions. He illustrates his theory with detailed histories of climate politics in Norway, the United States, and Australia, along with briefer discussions of policies in in Germany, Japan, the United Kingdom, and Canada. He shows that Norway systematically shielded politically connected industrial polluters from costs beginning with its pioneering carbon tax; the United States, after the failure of carbon reduction legislation, finally acted on climate reform through a series of Obama administration executive actions; and Australia's Labor and Green parties enacted an emissions trading scheme, which was subsequently repealed by a conservative Liberal party government. Ultimately, Mildenberger argues for the importance of political considerations in understanding the climate policymaking process and discusses possible future policy directions.
Climate change represents the most important environmental challenge of our time. Organisations are responding by implementing governance processes and taking action to reduce their own emissions and the emissions from their supply chains and value chains. Yet very little is known about how these efforts contribute to reducing greenhouse gas emissions (if, indeed, they make any substantive contribution at all) or about how they might be harnessed to deliver more ambitious reductions in emissions. This book explains when and where particular forms of governance intervention – including internal governance processes and external governance pressures – are likely to impact climate change. From this analysis, it offers practical proposals on the climate policy frameworks that need to be in place to facilitate or accelerate changes in corporate behaviour. The book is truly global: it focuses on the world’s 25 largest retailers (including Walmart, Tesco, Carrefour, Sears and Aldi) and is based on detailed interviews with senior managers from these corporations, and with key global and national NGOs, corporate responsibility experts, politicians and regulators. These interviews provide clear insights into how external governance pressures and actions (public opinion, regulation, incentives) interact with internal governance conditions (management systems and processes, corporate policies, board/CEO leadership) to change and shape corporate actions on climate change and, in turn, the climate change impacts of these corporations. This book can be used as a core reference for any courses dealing with corporate governance and business strategy, in particular those relating to climate change and to environmental management more generally. It is also of relevance to business practitioners, public policy makers, investors and NGOs interested in ensuring that companies play a constructive role in the transition to a low-carbon economy.
Global climate change is one of America's most significant long-term policy challenges. Human activity-especially the use of fossil fuels, industrial processes, livestock production, waste disposal, and land use change-is affecting global average temperatures, snow and ice cover, sea-level, ocean acidity, growing seasons and precipitation patterns, ecosystems, and human health. Climate-related decisions are being carried out by almost every agency of the federal government, as well as many state and local government leaders and agencies, businesses and individual citizens. Decision makers must contend with the availability and quality of information, the efficacy of proposed solutions, the unanticipated consequences resulting from decisions, the challenge of implementing chosen actions, and must consider how to sustain the action over time and respond to new information. Informing an Effective Response to Climate Change, a volume in the America's Climate Choices series, describes and assesses different activities, products, strategies, and tools for informing decision makers about climate change and helping them plan and execute effective, integrated responses. It discusses who is making decisions (on the local, state, and national levels), who should be providing information to make decisions, and how that information should be provided. It covers all levels of decision making, including international, state, and individual decision making. While most existing research has focused on the physical aspect of climate change, Informing an Effective Response to Climate Change employs theory and case study to describe the efforts undertaken so far, and to guide the development of future decision-making resources. Informing an Effective Response to Climate Change offers much-needed guidance to those creating public policy and assists in implementing that policy. The information presented in this book will be invaluable to the research community, especially social scientists studying climate change; practitioners of decision-making assistance, including advocacy organizations, non-profits, and government agencies; and college-level teachers and students.
Reducing greenhouse gas emissions is a major environmental challenge facing the world. We all want to reduce the risks of global warming, but how much will this cost? What will it mean on a personal, business, or community level? And what policy responses should we expect from our governments? The Cost of Climate Policy sheds light on these pressing issues. The authors look at the challenges of estimating the costs of greenhouse gas emission reduction to help readers understand how different definitions of costs and different assumptions about technological and economic evolution affect the estimates that are so hotly debated today. Using Canada as their focal point, the authors look specifically at the impact of emission reduction policies on energy prices, technology options, and lifestyle choices. The book concludes with concrete proposals for overcoming the constraints of environmental policy making and the high initial costs of action. Policy makers need to know as much as possible about the costs of taking action to reduce greenhouse gas emissions. As indispensable as this book will be to policy analysts, it is also an important primer for a wider range of readers interested in the economic implications of climate change.
The European Union (EU) aims to put Europe on track toward a low-carbon economy. In this striking challenge, the EU Emissions Trading System (EU ETS) has been singled out as the Union’s key climate policy instrument, ultimately aimed as a model for a global carbon market. The learning effect of the EU ETS could thus be tremendous. This study explores how the EU ETS actually works on the ground, affecting corporate climate strategies. It covers general sector responses as well as systematic comparative studies of companies across the sectors. The latter enables improved understanding of causal effects and the role of interaction between different policy instruments and other factors that impact corporate climate strategies. The study explores a broad set of mechanisms at play potentially linking the EU ETS to company climate strategies. These include how corporate norms of responsibility are affected by the EU ETS and how economic incentives provide opportunities for innovation. The book’s main contribution lies in its systematic examination of corporate responses to the EU ETS from a broad empirical and analytical social science perspective covering companies in all main EU ETS sectors: electric power, oil, cement, steel and pulp and paper.
Climate change threatens the economy of the United States in myriad ways, including increased flooding and storm damage, altered crop yields, lost labor productivity, higher crime, reshaped public-health patterns, and strained energy systems, among many other effects. Combining the latest climate models, state-of-the-art econometric research on human responses to climate, and cutting-edge private-sector risk-assessment tools, Economic Risks of Climate Change: An American Prospectus crafts a game-changing profile of the economic risks of climate change in the United States. This prospectus is based on a critically acclaimed independent assessment of the economic risks posed by climate change commissioned by the Risky Business Project. With new contributions from Karen Fisher-Vanden, Michael Greenstone, Geoffrey Heal, Michael Oppenheimer, and Nicholas Stern and Bob Ward, as well as a foreword from Risky Business cochairs Michael Bloomberg, Henry Paulson, and Thomas Steyer, the book speaks to scientists, researchers, scholars, activists, and policy makers. It depicts the distribution of escalating climate-change risk across the country and assesses its effects on aspects of the economy as varied as hurricane damages and violent crime. Beautifully illustrated and accessibly written, this book is an essential tool for helping businesses and governments prepare for the future.