Managing carbon aspirations

the influence of corporate climate change targets on environmental performance

Frederik Dahlmann, Layla Branicki, Stephen Brammer

Research output: Contribution to journalArticle

11 Citations (Scopus)
3 Downloads (Pure)

Abstract

Addressing climate change is among the most challenging ethical issues facing contemporary business and society. Unsustainable business activities are causing significant distributional and procedural injustices in areas such as public health and vulnerability to extreme weather events, primarily because of a distinction between primary emitters and those already experiencing the impacts of climate change. Business, as a significant contributor to climate change and beneficiary of externalizing environmental costs, has an obligation to address its environmental impacts. In this paper, we explore the role of firms’ climate change targets in shaping their emissions trends in the context of a large multi-country sample of companies. We contrast two intentions for setting emissions reductions targets: symbolic attempts to manage external stakeholder perceptions via “greenwashing” and substantive commitments to reducing environmental impacts. We argue that the attributes of firms’ climate change targets (their extent, form, and time horizon) are diagnostic of firms’ underlying intentions. Consistent with our hypotheses, while we find no overall effect of setting climate change targets on emissions, we show that targets characterized by a commitment to more ambitious emissions reductions, a longer target time frame, and absolute reductions in emissions are associated with significant reductions in firms’ emissions. Our evidence suggests the need for vigilance among policy-makers and environmental campaigners regarding the underlying intentions that accompany environmental management practices and shows that these can to some extent be diagnosed analytically.

Original languageEnglish
Pages (from-to)1-24
Number of pages24
JournalJournal of business ethics
Volume158
Issue number1
Early online date14 Nov 2017
DOIs
Publication statusPublished - 15 Aug 2019

Bibliographical note

Copyright The Author(s) 2017. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.

Keywords

  • Carbon dependency
  • Climate change targets
  • Environmental performance
  • Environmental strategy
  • Greenhouse gas emissions
  • Greenwashing

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