This article was originally published in a journal published by

Elsevier, and the attached copy is provided by Elsevier for the

author’s benefit and for the benefit of the author’s institution, for
non-commercial research and educational use including without
limitation use in instruction at your institution, sending it to specific
colleagues that you know, and providing a copy to your institution’s
administrator.
All other uses, reproduction and distribution, including without
limitation commercial reprints, selling or licensing copies or access,
or posting on open internet sites, your personal or institution’s
website or repository, are prohibited. For exceptions, permission
may be sought for such use through Elsevier’s permissions site at:

http://www.elsevier.com/locate/permissionusematerial
 Long Range Planning 39 (2006) 315e330 www.lrpjournal.com

Global Warming: Should

Companies Adopt a Proactive

py
Strategy?

co
Olivier Boiral

al
on
Many managers are at a loss concerning the strategy they should to adopt to deal with
global warming and the requirements enforced by the Kyoto Protocol. This article pro-
rs

poses a global approach to anticipate the possible impacts of global warming on orga-
nisations and to explore policies and measures that managers can implement to cope with
this issue. The frame analysis proposed sheds light on the relevance of proactive or more
pe

wait-and-see responses to global warming while stressing the importance of promoting

environmental intelligence and other preliminary measures before deciding what strategy
to adopt. The article also calls into question monolithic and static views of climate change
strategies and illustrates, through examples, the actions that managers can take to put the
Kyoto Protocol on their agendas.
r's

Ó 2006 Elsevier Ltd. All rights reserved.

o

Introduction
In March 2006, ST Microelectronics, one of the leading semiconductor manufacturers, announced
th

a commitment to reduce its US greenhouse gas emissions (GHG) by 50 per cent between 2000 and
2010. A recipient of many environmental awards, especially for efforts to reduce GHG emissions,
Au

ST Microelectronics hopes to become carbon-neutral by 2010 and has already succeeded in reduc-
ing its CO2 emissions by 50 per cent over the past decade. These commitments are fundamental to
company management philosophy and have resulted in many innovative initiatives: integrating en-
vironmental criteria in the performance evaluation of factory directors; encouraging use of public
transportation and car-pooling among employees; implementing reforestation programmes in
Texas, Morocco and Australia to offset the company’s remaining GHG emissions, et al.
Why are some companies like ST Micoelectronics adopting proactive strategies regarding global
warming, and what is the value of such strategies? What might be the impacts of global warming
and Kyoto Protocol issues on organisations, and how can these impacts be anticipated successfully?

0024-6301/$ - see front matter Ó 2006 Elsevier Ltd. All rights reserved.
doi:10.1016/j.lrp.2006.07.002
What type of policies and actions should managers take to deal with this complex issue? The pur-
pose of this article is to answer these questions by shedding light on strategies and measures that
might be implemented to put the Kyoto Protocol on organisations’ agendas.
Until now, relatively few organisations have implemented a climate change policy. According to
a study conducted in 2004 among managers of the top 500 companies in the world, 80 per cent of
respondents considered that their organisation would be affected by the consequences of global
warming and the ensuing regulations. However, fewer than half of these companies had actually
implemented measures to meet this challenge.1 The asymmetry between the importance of this is-
sue and the relative lack of corporate commitment may be explained in part by the widely-shared
perception that environmental action entails costs that impact productivity. This perception, as well
as the complexity of and uncertainties about climate change, tend to engender resistance to the ris-

py
ing pressure to reduce GHG. Nevertheless, this resistance cannot be considered a generalised phe-
nomenon. Examples of organisations actively supporting the Kyoto Protocol and having
significantly committed themselves to reducing their GHG, such as ST Microelectronics, BP, Shell

co
and DuPont, show that organisational responses to climate change are not necessarily passive or
negative. Moreover, the fact that just a few short years ago some of these organisations were
very reluctant to back the Kyoto Protocol illustrates the importance of putting defensive and passive
attitudes into context rather than considering them as static.

al
Examples of organisations supporting the Kyoto Protocol show that
on
responses to climate change are not necessarily passive or negative
rs

This article begins by providing a broad outline of the Kyoto Protocol and possible organisa-
tional implications underlying its implementation. Anticipation of global warming impacts
pe

through the promotion of an environmental intelligence rationale based on economic, political,

social and scientific issues assessment is then proposed. Using examples, the article also examines
the relevance of proactive versus more wait-and-see approaches vis-à-vis global warming. Finally,
the article addresses the implementation of a policy and a set of actions to reduce GHG
emissions.
r's

Kyoto: from international protocol to organisational policy

The Kyoto Protocol, which was signed in 1997, officially came into force on February 16 2005 fol-
lowing ratification by more than 55 countries that together produce more than 55 per cent of the
world’s GHG emissions. Although the objectives of the Kyoto Protocol are considered by many ob-
o

servers to be relatively modest, it represents a major step forward in motivating international efforts
th

to control GHG. Under the terms of the Protocol, signatory countries must reduce their emissions
of GHG by an average 5.2 per cent by 2008-2012 from their 1990 level. Developing countries such
as China and India have no constraining obligation with respect to the Protocol. The absence of
Au

specific requirements for these developing countries that account for an increasing proportion of
global GHG emissions has fuelled opposition to and criticism of the Kyoto Protocol, especially
in the US.
Controversy surrounding the Protocol and its complexity explain the delays and endless negoti-
ations required to frame the international measures to be applied. These measures, clarified during
the Bonn Conference of 2001, can have a significant impact on organisations, especially large in-
dustrial emitters (see Table 1).
The emergence and strengthening of international and local mechanisms for GHG reduction
means that organisations need to consider environmental issues that were, until recently, deemed

316 Global Warming

Table 1. Impacts of the Kyoto Protocol Mechanisms on Organisations

Main Kyoto Mechanisms Possible Impacts on Organisations

The International Emissions Trading (IET) allows
signatory countries to trade emission credits between
themselves. Accordingly, a country that fails to
comply with its GHG reduction objectives will, in
principle, have to buy emission permits on
international markets.
The implementation of emissions trading systems such as
the European GHG trading scheme, in place since January
2005, allows firms to buy or sell emissions credits. For
example, large industrial emitters that have succeeded in
reducing their emissions below quota levels will be able to
sell such permits and to take advantage of the trading
system. Conversely, large industrial emitters exceeding

py
their quotas will have to buy GHG emissions permits to
offset their poor environmental performances. The
development of this type of trading system also tends
to result in new regulations targeting GHG reductions.

The Joint Implementation (JI) is a mechanism
allowing governments or private organisations to
generate emissions credits by investing in
emission-reduction projects in industrialised
countries that have signed the Kyoto Protocol.
co
New market opportunities in industrial countries through
investments contributing to reduce GHG emissions. For
example, a subsidiary in Spain or Russia can receive green
investments from its foreign parent company or others
investors seeking cost-effective GHG reduction projects.
JI also encourages alliances and collaborations between

The Clean Development Mechanism (CDM) is a
way for governments or private organisations to
earn emissions credits by investing in
rs
al
companies or facilities in different industrialised countries
in order to develop more efficient ways of reducing GHG
emissions.
on
New market opportunities in developing countries for
companies specialised in energy efficiency and green
technologies such as solar or wind power stations. This

emission-reduction projects in developing type of projects can be financed by industrial countries or

countries. by organisations seeking to meet their GHG emissions
obligations at a lower cost.
pe

Use of carbon sinks, that is, forests and cultivated
land, to absorb carbon, remove it from the
atmosphere and offset CO2 emissions.
r's
The development of reforestations programmes by
organisations can generate emissions credits and improve
corporate image. For example, large emitters companies
can offset their GHG emissions through tree planting
programmes and could target becoming carbon-neutral.
Forest companies can also obtain emission credits to
offset tree-cutting operations or GHG-emitting industrial

processes through reforestation.

The implementation of a compliance system for This compliance system presupposes a precise
ensuring the effective implementation of the measurement of GHG emissions by organisations,
o

Kyoto Protocol and attainment of emission targets. more specifically for large industrial emitters. Measuring
and monitoring of GHG emissions often requires R&D
th

efforts and represent a promising market for

environmental engineering companies.
Au

controversial scientific hypotheses. Most of the studies on this subject are based on a macroeco-
nomic viewpoint or on a prospective analysis of the possible consequences of global warming for
business activities. Thus, after explaining the greenhouse effect and its global impact, Packard
and Reinhardt emphasise the social responsibility of managers and the importance of assessing risks
and opportunities arising from ongoing climate change.2 The authors give examples of the potential
impact of climate change on the insurance, automotive and petroleum industries, among others.
Dunn analyses the economic impact of the Kyoto Protocol and its positive effect on innovation.3

Long Range Planning, vol 39 2006 317

Kolk and Pinkse point out that these effects on innovation may depend on the vertical and hori-
zontal integration of organisations.4 They may also depend on the country of origin and decisions
by managers to change the products or processes emitting GHG rather than buying GHG emission
permits. In their recent study on the emergent strategies regarding climate change, Kolk and Pinkse
have identified six options to address this issue, depending on the main aim of organisations in re-
ducing GHG and the organisational level of measures: process improvement, product development,
new product/market combinations, internal transfer of emission reductions, supply-chain measures
and acquisition of emissions credits. This study proposes different profiles of organisations with
respect to climate change. Nevertheless, the ways organisations can better anticipate climate change
impacts, the process of implementing policies and actions regarding this issue and their possible
benefits remain obscure.

py
According to Hoffman, the economic and strategic impacts of climate change will depend mostly
on capital asset management, the global competitiveness of countries, the anticipation of institu-
tional changes stemming from the Kyoto Protocol and the ability of the market to take advantage

co
of the emergence of new opportunities related to climate change policies.5 Hoffman stresses that
companies can benefit from voluntary GHG reductions through seven aspects: operational im-
provement, anticipating and influencing climate change regulations, accessing new sources of cap-
ital, improving risk management, elevating corporate reputation, identifying new market
opportunities and enhancing human resource management. These benefits are not systematic,
and organisational responses to global warming issues are not perfectly linear and monolithic.

al
These organisational responses depend on contingent factors, particularly the expected economic
impact of GHG reductions, the political and regulatory context surrounding global warming, sci-
entific or technical aspects and social pressures. Because of the uncertainties and interdependence of
on
these factors, corporate response to global warming remains a complex issue, requiring foresight
and vision from managers rather than reactions to existing constraints.
rs

Corporate response to global warming remains a complex issue,

pe

requiring foresight and vision from managers

Anticipating the impacts of global warming

Uncertainties about how global warming will impact on corporate activities mirror the controver-
sies surrounding the Kyoto Protocol and related public policies. Most of these controversies revolve
r's

around economic issues. Thus, the supposed costs of GHG reduction measures, as well as some
scientific uncertainty, have been raised by the US government to justify its refusal to ratify the
Protocol. Alarmist rhetoric on this issue has forecast substantial productivity losses, the risk of
recession, booming energy costs and a significant increase in unemployment.6
o

This critical and defensive position regarding the economic impact of the Kyoto Protocol has
been seriously questioned and criticised in recent years. At the time of the signing of the Protocol
th

in 1997, more than 2,000 economists, including several Nobel laureates, endorsed the conclusions
of a report claiming that the economic benefits of GHG reduction outweigh costs, and that it is
Au

entirely realistic to meet Kyoto Protocol objectives without undermining the American standard
of living.7 From this perspective, the ratification of the Protocol is justified not only for environ-
mental reasons, but it also helps to stimulate the economy by encouraging organisations to mod-
ernise their processes, question their practices and acquire environmental technologies. Empirical
studies have confirmed this optimistic view of the economic impacts of the Kyoto Protocol or
have significantly tempered the alarmist prognoses from some politicians and managers.8 Finally,
some business coalitions have also declared themselves in favour of the Protocol. Such is the
case with the World Business Council for Sustainable Development (WBCSD), a coalition of
more than 1,000 managers of multinational companies such as Ford, BMW, Daimler-Chrysler,

318 Global Warming

Hewlett-Packard, Coca-Cola, Chevron-Texaco, Dow Chemical, Sony, Unilever and Toyota. More-
over, the search for synergies between the environment and the economy, illustrated by the concept
of eco-efficiency, is at the heart of the vocation of this international business coalition.
In reality, these two apparently irreconcilable positions on the impact of the Kyoto Protocol re-
flect the two main approaches to the relationship between the economy and the environment. The
first approach, which has dominated debates on the issue for a long time, is based on a classical
economic theory that considers environmental actions as a cost source for businesses. This win-
lose hypothesis has been examined in various studies based, for the most part, on global statistical
analysis. Most criticism of the economic benefits of the Kyoto Protocol is based on this viewpoint.
The second approach questions the initial hypothesis of a conflicting relationship between the econ-
omy and the environment. Since the early 1990s, many studies have demonstrated the benefits aris-

py
ing from green initiatives in organisations.9 This win-win perspective is often called the Porter
Hypothesis, named after the author who was one of the first to question the traditional postulate
of the negative links between environmental initiatives and competitiveness.10 For Porter, an organ-

co
isational response to environmental pressure entails innovative efforts to improve processes, use in-
puts more efficiently and find new outlets for production by-products. From this standpoint,
strengthening regulatory constraints stimulates rather than restricts the competitive advantage of
certain organisations in relation to foreign competitors not subject to the same norms.

al
Since the early 1990s, many studies have demonstrated the benefits
arising from green initiatives in organisations
on
Although the opposition between the win-win and win-lose approaches accurately reflects the
rs

current debate over the implications of the Kyoto Protocol for organisations, this dichotomy re-
mains quite arbitrary and even simplistic. The benefits or costs associated with GHG reduction de-
pend on many factors, such as the sector of activity, distinctions between preventive and palliative
pe

actions, environmental objectives and firm capabilities, which can vary significantly from one case
to another.11 For example, Wagner and Schaltegger have pointed out that the relationship over time
between environmental performance and economic success is not linear and depends on many fac-
tors, including corporate management systems, technologies and processes operated, firm size, in-
dustry market structure, return expectations, et al.12 Understanding these factors is difficult as they
are embedded in a political, social and scientific context that can vary from one sector or one region
r's

to another.
Companies, especially those exposed to strong environmental pressures, should make provisions
for environmental intelligence or the appointment of specialists to anticipate the impacts of global
warming and assess how to capitalise on opportunities that arise as a result. Such services or spe-
o

cialists would contribute to monitoring the economic, political, social and scientific or technical
issues that could affect an organisation’s activities, as well as keeping a watching brief on related
th

opportunities and threats (see Figure 1). These issues are interdependent and require an interdis-
ciplinary approach integrating a wide variety of information. The complexity of this type of infor-
Au

mation has led some organisations to co-operate in sharing environmental intelligence. For
example, in 2001, the electronics industry created EIATRACK, an environmental intelligence service
devoted to tracking product requirements and regulatory information around the world.13 This en-
vironmental intelligence tool provides information and resources related to new environmental pol-
icies concerning electrical and electronic equipments, energy efficiency requirements, chemical
restrictions, transportations controls, regional recycling regulations, product comparisons, regula-
tory alerts, etc. This information is crucial to adapting product design and distribution to growing
environmental regulations, especially in Europe, where the ecological impacts and end-of-life man-
agement of electronic and electrical equipment is increasingly controlled. EIATRACK has also

Long Range Planning, vol 39 2006 319

 Economic
Issues
- Market opportunities
- Financial risks
- Competitive advantages
- etc.

Scientific and Political and

Technical Issues Regulatory Issues
- Innovations Environmental - Subsidies
- R&D Intelligence - Tax reductions
- Data on GHG - New regulations

py
- etc. - etc.

Social
Issues

co
- External pressures
- Image and legitimacy
- Employees motivation
- etc.

Figure 1. Promoting Environmental Intelligence

al
helped companies such as Sony and Matsushita to track and implement the best innovative prac-
on
tices regarding design-for-environment efforts in the electronic industry.
The same type of environmental intelligence tool can be implemented to track economic, polit-
ical, regulatory, social and scientific or technical issues of global warming for one or several orga-
rs

nisations, or even a sector of activity as in the case of the EIATRACK service (see Figure 1):

 Economic issues should include: monitoring of new market opportunities related to green prod-
pe

ucts or technologies; financing of Clean Development Mechanism (CDM) or Joint Implementa-

tion (JI) projects; following the price of GHG emissions trading on international markets;
analysis of the best practices for reducing GHG emissions within a specific industry; potential
savings resulting from energy efficiency investments; possible impacts of GHG reduction endeav-
ours on financial markets; monitoring of competitors’ positions on this issue.
 Political and regulatory issues should involve: following international negotiations and resolu-
r's

tions on global warming; changes in environmental policies of states; anticipation of regulations

in different regions; governments efforts to reduce GHG emissions through subsidies; carbon
taxes and tax policies acknowledging the benefits of alternative fuels; incentives for innovation,
research and development support; low-interest or preferential loans for GHG reduction invest-
o

ments; accelerated depreciation rates for environmental technology investments.

 Social issues should address: the assessment of global warming issue impacts on corporate image
th

and reputation; the social legitimacy of adopting a more passive or defensive position regarding
the Kyoto Protocol; the threat of pressures from environmental groups; changes in consumer
Au

perceptions and behaviour regarding this issue; the promotion of social responsibility through
reforestation programmes or local green energy projects; the possible consequences of GHG re-
duction policy on employee motivation.
 Scientific and technical issues should include: continuous monitoring of research, publications
and new evidence concerning global warming; the identification of new technologies for reduc-
ing or measuring GHG; opportunities to launch new research and development programmes;
impacts of the renewal cycle on environmental investments for production facilities; compiling
and updating information and statistics on company and competitor environmental perfor-
mances; follow-up of new standards for measuring GHG emissions.

320 Global Warming

Towards a proactive strategy?
Anticipating impacts of global warming through the promotion of environmental intelligence may
lead to different types of GHG-reduction strategies and commitments. Several studies have shown
that such environmental commitments and strategies may, for the most part, be described as more
or less proactive responses to external pressure.14 Most of these studies urge managers to adopt a pro-
active response to environmental issues, taking for granted that this response will be rewarded. Being
proactive supposes implementing actions ‘‘intended to cause changes, rather than just reacting to
change’’.15 But above all, adopting such a rationale toward GHG reduction supposes a strategic vision
of the benefits expected to result from a fairly voluntary and committed approach to dealing with
global warming. Nonetheless, this proactive approach does not necessarily represent an obvious
and unequivocal option for managers. Irrespective of managers’ attitudes towards environmental is-

py
sues, organisational response to the Kyoto Protocol and GHG reduction will be all the more coherent,
justifiable and beneficial in that it will be based on reliable and up-to-date environmental intelligence.
If GHG reduction appears to be a real source of savings and productivity, managers would be well

co
advised to adopt a more environmentally-committed policy and plan new investments to reduce their
emissions. Many examples illustrate this proactive rationale.16 DuPont, an active member of the
World Business Council for Sustainable Development, planned to cut its GHG emissions by 65 per
cent between 1990 and 2010. According to DuPont managers, nearly half this objective was reached
in 2000, at the same time saving more than $1.5bn through improved energy efficiency. Even in the oil
industry, considered to be very polluting and conservative, GHG reduction initiatives may lead to

al
a win-win situation or entail limited costs. The cases of British Petroleum (BP) and Shell are quite
representative of this approach. BP has become an ardent defender of the Kyoto Protocol over the
past few years, committed to cutting its GHG emissions, based on their 1990 level, by 10 per cent be-
on
fore 2010, despite a significant increase in its activities. In 2002, company managers announced that
these ambitious objectives were reached eight years earlier than planned, without additional costs.
Adopting a proactive response may also reduce some financial risks. First, environmental issues
rs

are increasingly used as criteria to evaluate performance on financial markets and assess good gov-
ernance. Second, banks and insurance companies are increasingly taking these issues into account.
For example, in the late 1990s, Swiss Re, one of the world’s leading reinsurance companies, imple-
pe

mented a policy to make its customers more aware of the financial risks stemming from climate
change and it is now pressing large industrial emitters to substantially reduce their GHG emissions.
Reinsurance companies are increasingly concerned about the links between global warming and the
occurrence of major hurricanes that cost billions of dollars in damage and property insurance
claims. The huge economic and human impacts of Hurricane Katrina that flooded New Orleans
and a large portion of the US Gulf Coast in August 2005 has contributed to heightened awareness
r's

and increased pressure on large GHG emitters.

An improved corporate image can have a positive effect on

o

consumer perception and product marketing

th

Anticipation of this kind of institutional pressure tends to foster a proactive strategy intended to
Au

reduce external constraints and protect or improve corporate images. An improved corporate image
can have a positive effect on consumer perception and product marketing. Even if this improvement
is difficult to anticipate and measure precisely, it reduces the kind of ecological pressure tactics and
boycotts directed at GHG-reduction-resistant companies. Owing to the growing number of studies
demonstrating the gravity of global warming and calling for the adoption of a precautionary prin-
ciple, the decrease in the scientific uncertainties often raised by those who oppose the Kyoto Protocol
means that this pressure is all the more likely to increase. According to the precautionary principle
that is now accepted by many countries, especially in Europe, lack of scientific certainty must not be
used to justify postponing measures to prevent serious and irreversible damage to the environment.

Long Range Planning, vol 39 2006 321

 In the same vein, uncertainties concerning the economic impacts of environmental actions should
not be considered as an obvious and legitimate justification for postponing measures to prevent GHG
emissions. Indeed, as shown by neo-institutional theory, the quest for social legitimacy represents
a fundamental drive of organisational change, especially in the area of environmental management.17
This quest tends to foster the development of similar practices and policies among organisations,
leading them to become more isomorphic in order to comply with social requirements. The concern
for conformity and legitimacy often outweighs concerns for economic efficiency.18 In this context,
organisations that adopt a defensive response to Kyoto Protocol by tabling economic arguments
are increasingly exposed to criticism and challenges that can undermine their legitimacy and even
their survival. A solely economics-based position today seems to go against the trend of social expec-
tations as well as positions adopted by an increasing number of organisations.

py
Moreover, fostering proactive strategies can lead to the emergence of environmental require-
ments that favour less polluting organisations. Such organisations are in a better position to comply
with the increasing external pressures concerning global warming than competitors who have adop-

co
ted a more defensive or passive position and find it more difficult to meet new environmental re-
quirements. Furthermore, the adoption of a more proactive strategy helps companies to face
external pressures efficiently and maintain some room for manoeuvre.
Advantages such as these are in keeping with the theory of the life cycle of social pressures, dem-
onstrating that the autonomy of organisations tends to diminish as external pressures increase when
organisations do not fully anticipate social expectations.19 The life cycle of social pressures explains

al
in part why companies have formed coalitions that adopt voluntary measures to limit GHG emis-
sions in order to control or avoid the emergence of stricter regulations. Not only do voluntary
agreements with the government and anticipation of environmental regulations allow an organisa-
on
tion better to prepare and control ongoing changes, they also make it possible to restrict entry into
certain markets by imposing standards on less proactive competitors.
For example, the driving role played by chemical companies, especially DuPont, in the ratifica-
rs

tion of the Montreal Protocol on chlorofluorocarbon (CFC) elimination is the result of huge invest-
ments carried out to find substitute products. From the earliest publications in the 1980s about
findings demonstrating the responsibility of CFC in ozone depletion, DuPont committed itself
pe

to eliminating the use of these gases before 1999 and bankrolled extensive research to find alternate
solutions. The ratification of the Protocol in 1987 and its amendment in 1990 to eliminate com-
pletely the use of CFCs before the end of the last century enabled DuPont to retain a dominant
position in the production of alternate refreezing gases in which the company had invested for
many years, unlike less proactive competitors.20
Currently, the same type of proactive strategy may be observed among organisations that have
r's

invested heavily to reduce their GHG emissions and now support the enforcement of public policy
in favour of the Kyoto Protocol. Such is the case of Lafarge, a world leader in the production of
cement. It is urging more countries to ratify the Protocol and has actively participated in the im-
plementation of the European GHG trading scheme.21 To reduce its CO2 emissions, Lafarge imple-
o

mented a worldwide policy intended to foster the use of waste and industrial by-products instead of
fossil fuels. This substitution process improves energy efficiency and reduces solid waste. Promoting
th

renewable energy has also enabled Lafarge to reduce energy costs and GHG emissions stemming
from electricity production. To address the energy needs of its new cement factory, Tétouan II,
Au

in Morocco, Lafarge installed a wind farm. This farm now meets 40 per cent of the cement factory’s
power requirements and, at the same time, earns emission credits for Lafarge.
These examples give some credence to the idea that a proactive strategy can lead to savings,
greater institutional legitimacy and competitive advantages stemming from the development of en-
try barriers based on GHG-emission regulations and standards. Nevertheless, many managers are
dubious about these advantages because of the uncertainties of elements affecting the impact of
GHG reduction and implementation of the Kyoto Protocol.
Precisely because the benefits of environmental actions depend on many contingency factors, the
examples of win-win rationales related to GHG reduction cannot be generalised in all sectors or all

322 Global Warming

organisations. Thus, in a study of English managers from organisations listed on the FTSE 350, 93
per cent of the respondents estimated that climate change would raise costs.22 Consequently, many
companies tend to maintain the status quo and not react as long as they are not obliged to do so.
This reactive response is more likely to occur in industries in which the renewal cycle for infrastruc-
ture and production facilities is slow. This is the case, for example, of the aluminium, steel and oil-
refining industries, considered major GHG emitters. Significantly reducing GHG emissions in these
industries often requires huge investments or the replacement of existing production processes.
Therefore, managers may decide to delay commitment to GHG emission reductions better to ex-
ploit existing industrial facilities. This kind of delay can also allow organisations to install more
sophisticated or more efficient environmental technologies further down the line. Indeed, given
the international pressures concerning global warming and the increase in R&D investments, tech-

py
nologies currently available to cut GHG emissions could rapidly become obsolete.
In the same vein, some organisations are reluctant to implement proactive measures in favour of
the Kyoto Protocol in the absence of clear public policies and regulations. In fact, the proactive

co
strategy assumes that the reinforcement of institutional pressures to combat global warming and
the benefits that should stem from doing so can both be predicted with some certainty. Neverthe-
less, the institutional context surrounding the Kyoto Protocol and public policies concerning this
issue remain highly fluid and often difficult to predict. The uncertainties surrounding the imple-
mentation of quotas limiting GHG emissions, subsidies that will be allowed, preferential loans
for investments and incentives for innovation have tended to create a climate of expectation that

al
encourages a wait-and-see policy in many organisations. Indeed, major changes to existing pro-
grammes could jeopardise previous investments and technological choices made as part of a proac-
tive strategy.
on
Many companies tend to maintain the status quo and not react as
rs

long as they are not obliged to do so

pe

As an example, some companies fear that early efforts to cut GHG will not be fully recognised at
a later stage if they have to make more investments. In regions such as Canada, where the GHG trad-
ing system is not already in place, the wait-and-see attitude seems understandable. In this case, com-
panies delaying their environmental investments can reasonably expect to take better advantage of
r's

their GHG reduction once such a market is in place. In the same vein, companies that have reduced
their GHG before the implementation of a GHG trading system or other programmes favouring such
reductions could be at a disadvantage, compared with the wait-and-see companies. This type of
dilemma has been fuelling the debate between the Canadian government and provinces such as
o

Québec, which considers that the federal plan to comply with the Kyoto Protocol must consider in-
vestments that have been made over the last few years, in particular by the aluminium industry.
th

Scientific uncertainties concerning the contribution of human activities to global warming have
reinforced this wait-and-see attitude and fuelled opposition to the adoption of new regulations.
Au

They also have encouraged support for the political campaign of candidates who are overly con-
cerned about environmental issues, financing of research that downplays the effects of GHG emis-
sions on global warming or emphasises the costs of the Kyoto Protocol. ExxonMobil is probably the
most significant example of this lobbying strategy, displaying a fierce and open opposition to the
Kyoto Protocol from its beginnings in 1997 and promoting actions to undermine the credibility
of social pressures regarding global warming. During the summer of 2005, ExxonMobil launched
a vast advertising campaign claiming that the company had made the largest investment ever in
‘‘independent’’ global warming research. Contrary to other large petroleum companies, and in spite
of the accumulation of scientific evidence, the managers of ExxonMobil are still denying the

Long Range Planning, vol 39 2006 323

contribution of human activities to the phenomenon of global warming and are questioning the
importance of GHG reduction, stressing the prohibitive costs of these initiatives. Although this op-
position may have influenced the Bush administration’s refusal to ratify the Protocol e with
ExxonMobil being one of the administration’s main contributors in the last US elections e it
has also intensified ecological pressure tactics against the company. The international campaign
Stop ExxonMobil, protesting against the oil company’s position on the Kyoto Protocol, has re-
ceived a great deal of attention, especially in the UK, Germany, France and the US. This campaign
has deployed numerous pressure tactics against the oil company, including boycotts, protests, pe-
titions, and logo parodies.

Developing and implementing a climate change policy

py
The aforementioned uncertainties about global warming initiatives do not necessarily call into
question the relevance and importance of organisational commitment to GHG reduction. Never-
theless, these uncertainties require a systematic and ongoing effort to monitor information and en-

co
vironmental changes likely to affect organisational policy regarding global warming. They also raise
the issue of timing. Indeed, the benefits or costs of a proactive strategy may remain unclear, even for
organisations intent on promoting environmental intelligence on global warming. In this case,
managers may find it more rational economically to adopt a wait-and-see policy first. They might
want to continue with such a policy as long as it remains favourable to do so. The timing of a policy
change is not dependent solely on economic and institutional issues. Personal values and manage-

al
rial viewpoints, publications of scientific studies and strategies adopted by competitors can also
have an impact on corporate response to this issue. Whatever the reasons justifying a decision to
move forward, corporate responses to global warming are not necessarily static and monolithic.
on
Some major companies have withdrawn from anti-Kyoto coalitions and have decided to make se-
rious commitments to it. Such is the case of Ford and General Motors, who recently withdrew from
the Global Climate Coalition opposing the enforcement of limits on GHG emissions.23 The same
rs

move was made several years earlier by Shell and BP, who had backed this coalition before support-
ing the Kyoto Protocol and embarking on a course of concrete action.
These moves show that proactive or resisting strategies are not necessarily mutually exclusive.
pe

They can be adopted at different times and be focused on specific activities or certain organisational
aspects. For example, in spite of huge investments in renewable energy, the core activity of BP and
Shell remains focused primarily on traditional oil extraction, refining and distribution. Given the
many environmental impacts of such activities, these organisations cannot necessarily be said to
be environmentally proactive in all regards. Even if these organisations claim to have succeeded
in reducing their GHG emissions, their commitment to global warming is also strongly driven
r's

by image, social legitimacy and mimetic forces. And, as suggested by institutional theory, the prac-
tices resulting from social pressures are not necessarily coherent with requirements for more effi-
ciency and performance. Consequently, the commitment to be proactive may be relative, focused
on some aspects of corporate activities over a period of time and must not be taken for granted.
o

In order to decide where, when and how far an organisation can adopt a proactive strategy, man-
agers should undertake a stepping and progressive approach. This approach in developing and im-
th

plementing a climate change policy should begin with preliminary measures based on three main
actions (see Figure 2).
Au

First, organisations should implement an environmental intelligence programme or service in-

tended to collect information on the main issues and impacts of global warming. Given the poten-
tial costs and complexity of such a programme, organisations can share human or financial
resources to establish an alliance or an interorganisational structure. Universities, external experts
and consultants can also be involved in this environment intelligence effort requiring interdisciplin-
ary and team approaches.
Second, organisations should draw up as exact an inventory of their GHG emissions as possible.
The inventory is needed to gain a better understanding of the main sources of emissions and to
determine more precisely what environmental initiatives should be undertaken first. An inventory

324 Global Warming

 Preliminary Measures
- Environmental intelligence
- GHG inventory (ISO 14 064) Climate Change Policy
- Most efficient options?
Managerial Actions
- ISO 14 001
- Objectives and programmes
- Training
Proactive - Employee commitment
- etc.
Technical Actions

py
- Renewable energy investments
- Design-for-environment products
“Wait and see” - Compensation measures
- etc.

co
Sociopolitical Actions
- Greening of image
- Institutional entrepreneurship
- Lobbying to enforce regulations
- etc.

al
Figure 2. Developing and Implementing a Climate Change Policy

also helps to measure environmental performance, which is a requirement if companies are to par-
on
ticipate in the GHG trading system. To ensure the credibility and reliability of these measurements,
organisations can use the new ISO 14064 standard for GHG accounting and verification. Launched
in 2006, this standard was developed by 175 experts from 45 countries to provide a set of reliable
rs

and verifiable specifications for quantification, reporting and verification of GHG emission reduc-
tion efforts. Another standard, ISO 14065, is expected to be launched in 2007 and will specify re-
quirements to recognise bodies in charge of GHG verification through ISO 14064.
pe

Third, organisations should determine what options would be the most efficient in reducing
GHG emissions, based on different objectives, regulations and environmental intelligence informa-
tion. Investments in clean technologies are not the only option. Managers can also buy emission
permits on international CO2 markets or launch reforestation programmes to offset company emis-
sions. These programmes can easily be subcontracted to other organisations. Some companies, such
as Future Forest, specialise in this kind of activity and offer services to organisations to assess car-
r's

bon emissions and compensate for them through the funding of forestry projects.
These preliminary measures should guide managers in determining what type of approach and
actions their organisation should contemplate: being proactive or adopting a wait-and-see ap-
proach (See Figure 2). The approach and measures to be prioritised will depend on the inventory
o

of GHG emission sources, the most efficient options to reduce these emissions and the emerging
issues on global warming, including new regulations and social pressures. The trade-off between
th

proactive and wait-and-see approaches is an ongoing process that must be reassessed continuously,
based on economic opportunities, the price of CO2 emissions on the GHG trading market,
Au

anticipation of future regulations, emergence of new technologies, the inventory of GHG, and
environmental project proposals from employees. In this perspective, the adoption of one approach
or a set of actions is first and foremost a question of timing, anticipation and opportunity.

The trade-off between proactive and wait-and-see approaches is an

ongoing process that must be reassessed continuously

Long Range Planning, vol 39 2006 325

 Policies and projects subsequent to preliminary measures and the global warming strategy adop-
ted can be framed around three types of action. Managerial actions are based on the environmental
involvement of managers and the integration of environmental preoccupations into organisational
practices. First, to be credible, managers must define clear policies and objectives for GHG reduc-
tion. The implementation of plans, policies and performance measurement mechanisms can be in-
tegrated into an environmental management system such as ISO 14 001. The same remark applies
to other measures such as employee training, identification of GHG emissions sources, drafting en-
vironmental procedures and the definition of roles and responsibilities. The ISO 14 001 certification
process adopted in 2006 by more than 100,000 organisations around the world can make environ-
mental programmes more rigorous while increasing external recognition of environmental accom-
plishments.24 Implementing standards can also contribute to codifying, sharing and retaining

py
information, experiences and tacit knowledge of environmental practices, including GHG reduction
actions.25 Given that ISO 14 001 does not propose concrete or specific objectives, but rather a frame-
work to foster the implementation of an environmental policy through classic management prin-

co
ciples, the standard is not incompatible with GHG reduction goals. These goals, as well as those
concerning others environmental elements, can be integrated into the procedures, training pro-
grammes, audits, measurements and controls proposed by ISO 14 001 (see Table 2). Some compa-
nies such as Alcoa, Xerox and Alcan have decided to implement this environmental management
standard in all their manufacturing sites while making a strong commitment to reduce GHG emis-
sions. Adopting this standard does not necessarily mean that certified sites will automatically im-

al
prove their environmental performance. Nevertheless, ISO 14 001 requirements can be used as tools
to promote GHG reduction inside organisations and foster employee commitment. Indeed, policy
and projects tackling global warming as well as ISO 14001 certification can be a powerful way to
on
mobilise employees around global issues transcending organisational frontiers. This mobilisation
is essential to efficiently reduce the environmental impacts of an organisation’s activities. It also
contributes to fostering employee job satisfaction, involvement and commitment, all key factors
rs

in improving productivity.
The scope and nature of technical actions depends on a company’s activities, possible exterior
pressures and available resources. For example, Shell has carried out major investments in the mar-
pe

keting of renewable energy. A subsidiary launched in 1997, Shell Renewables, has invested more than
$500m in photovoltaic energy, and the company aims to become a world leader in the production of
wind-powered energy.26 These environmental commitments demonstrate a long-term strategy
intended to differentiate the company from more defensive competitors and to anticipate rising
pressure against large industrial emitters. Given the costs that research and development pro-
grammes may entail, alliances with other organisations are likely to develop. Some institutes, such
r's

as the Climate Group or the Pew Center on Climate Change, have been created to promote the shar-
ing of experience and knowledge transfer in GHG reduction. Whatever the measures, they must be
suited to the sector of activity and maximise the economic efficiency of GHG reduction. For example
Canada Post, which officially supports the Kyoto Protocol, has implemented programmes to reduce
o

GHG produced by its delivery trucks: environmental awareness and training of truck drivers, use of
hybrid vehicles, renewal of the truck fleet, etc. Through this type of initiative, Canada Post also aims
th

to reduce its petrol consumption, a major item in corporate expenditures. This type of reduction is
not based on huge investments, but rather on a continuous improvement rationale in which an
Au

organisation fosters energy efficiency by improving knowledge and practices. When preventive actions
to reduce GHG are not sufficient to meet environmental objectives, organisations may also decide to
implement compensation measures to offset their emissions: reforestation programmes, acquisition
of GHG trading permits, investments in clean development mechanism projects, etc.
Lastly, socio-political actions related to GHG reduction are intended to enhance the image of an
organisation, its legitimacy and political gains. These measures encompass endeavours to influence
political, economic and regulatory requirements concerning global warming. For example, a proac-
tive organisation can pressure the government into strengthening regulations on GHG reduction,
accelerating the implementation of a market for emissions credit trading and developing subsidies

326 Global Warming

Table 2. Reducing GHG Emissions through ISO 14 001 Implementation

ISO 14 001 elements Managerial actions to reduce GHG emissions

Policy requirements  Integrate GHG reduction commitment in the environmental policy;

Planning requirements
 Use the policy as a tool for promoting internal awareness;
 Communicate the policy to contractors, clients, citizens and other stakeholders
to demonstrate the organisation’s commitment regarding
global warming.
 Establish and implement procedures to identify activities, products and projects
having a significant impact on GHG;

py
 Use ISO requirements to involve employees in identifying and controlling GHG;
 Clarify the actual and future legal or other requirements as regards GHG;
 Define measurable objectives and targets;
 Define and implement systematic programmes to meet GHG reduction objectives.

Operational requirements
co
 Establish and communicate roles and responsibilities regarding GHG
programmes;
 Evaluate the internal competences and deliver appropriate training for people
whose tasks can have a significant impact on GHG emissions;
 Promote internal and external communication programmes concerning GHG;
 Document GHG reduction policy, objectives, programmes and activities;

Monitoring requirements
al
 Establish emergency plans related to possible GHG emissions incidents.
 Establish and implement GHG monitoring and measuring procedures (using,
for example, ISO 14 064 guidelines);
on
 Evaluate compliance with legal and others requirements regarding GHG;
 Implement actions to deal with non-conformity with GHG requirements and
objectives;
rs

 Integrate GHG issues into the scope of internal and external environmental
auditing process.
Management review  Involve top management in periodical reviews of the suitability, adequacy and
pe

requirements effectiveness of GHG policy and programmes;

 Assess opportunities for improvement and generate actions that support the
organisation’s commitment to continual improvement of GHG reduction
performances.

for environmental technologies. By applying these pressures, managers tend to become institutional
r's

entrepreneurs who influence policies and external factors in order to increase the benefits and de-
crease the costs of GHG reduction endeavours. In all likelihood, the role of the institutional entre-
preneur will continue developing significantly as a growing number of organisations implement
o

a climate change policy and as public programmes tackling global warming multiply. Institutional
measures are also used to turn an organisation’s green commitment into a trademark intended to
th

improve its external image and promote corporate social responsibility. For example, British Petro-
leum has changed its name to Beyond Petroleum and has implemented a vast campaign focused on
its efforts in GHG reduction. This kind of image campaign has also been implemented by the Body
Au

Shop: its corporate commitment to social and environmental issues constitutes its main distinctive
characteristic and it does not hesitate to display its activism. Body Shop has been quite involved in
the Stop ExxonMobil campaign and posters calling for a boycott of the oil company were posted on
its delivery trucks.

Conclusion
The main contribution of this paper is to answer three essential questions facing more and more
organisations. What could be the impacts of global warming and Kyoto Protocol issues on

Long Range Planning, vol 39 2006 327

organisations, and how can these impacts be anticipated successfully? Why are some companies
adopting proactive strategies regarding global warming and what is the value of such strategies?
What type of policies and actions can managers take to deal with this complex issue? The paper
sheds light on the multifaceted aspects of endeavours to anticipate global warming impacts, propos-
ing a comprehensive and stepping approach for managers seeking to implement a coherent policy.
This approach calls into question the often monolithic and static view on proactive or wait-and-
see policies by showing the importance of timing and environmental intelligence in developing
global warming policies. This environmental intelligence gravitating around economic, political,
scientific and social issues is part of a set of preliminary measures aimed at shedding light on strat-
egies and actions to be prioritised. The issue of global warming is too complex, changeable and risky
for organisations to be apprehended only through personal opinions or ideologies such as the ‘‘win-

py
win’’ or the ‘‘win-lose’’ rationale concerning the economic impacts of environmental actions.
Whatever their opinion concerning global warming issues, managers, especially in large emitter in-
dustries, should undertake an environment intelligence effort, draw up a clear inventory of their

co
organisation’s GHG emissions sources and determine what the most efficient options would be
to reduce these emissions.
Limiting organisational response to these preliminary measures might quickly be viewed as
a short-term, insufficient commitment. Indeed, in many countries and activity sectors, backing
the Kyoto Protocol is no longer a proactive strategy, but rather a reactive one. In this context, de-
laying action or reaction exposes organisations to increasing external pressure.

al
First, the legitimacy of denying or resisting the Kyoto Protocol is decreasing with the develop-
ment of scientific knowledge emphasising global warming dangers, as well as the declining number
of organisations openly opposing endeavours to cut GHG emissions. Extensive media coverage and
on
the huge economic impact of natural disasters partly linked to global warming, increasingly under-
mine the legitimacy of this opposition. Second, the adoption of a proactive strategy helps compa-
nies anticipate the implementation of standards or quotas and avoid having these same measures
rs

become insurmountable barriers to markets in the near future. Third, for affected regions and sec-
tors, implementation of a GHG trading system is resulting in the application of a polluter-pays ra-
tionale that encourages cleaner organisations to the detriment of others. Owing to the volatility of
pe

the price of CO2 emissions on the European GHG trading system, particularly during the first half
of 2006, the exact benefits of selling or buying emission credits on this market are very difficult to
foresee. Nevertheless, for large European emitters, adopting a wait-and-see position that would de-
lay investments making it possible to sell on the GHG trading market could prove costly. Indeed, in
the long term, the price of CO2 emissions on the market will probably tend to drop because more
and more industries are expected to reduce their GHG to comply with new regulations and obtain
r's

benefits from selling CO2 allowances. Wherever the organisation is located, skyrocketing oil prices
also tend to reinforce the advantages of early investments in GHG reduction and energy efficiency.
Finally, implementing a proactive strategy can help enhance employee involvement and improve
a corporation’s image.
o

Nevertheless, efforts to reduce GHG emissions significantly and control climate change call for
large-scale transformations that do not solely entail opportunities for organisations. Many factors
th

such as sector of activity, technological innovation, the market price of CO2 emissions, the evolu-
tion of social pressures and public policies can significantly modify the assessment of opportunities
Au

and threats stemming from the Kyoto Protocol. Given the uncertainties and complexity of global
warming issues, anticipating the effects of the Kyoto Protocol and reducing GHG emissions is not
solely a matter of rational anticipation of global warming impacts. It is also a matter of vision and
foresight. If the consequences as well as the advantages of GHG reduction and a proactive strategy
seem difficult to foresee today, this is also because to some extent they depend on the vision, qual-
ities and skills of managers. Indeed, the ability of organisations to anticipate social pressure, develop
competitive advantages and obtain direct or indirect gains from GHG reduction does not depend
only on pre-established economic rules or environmental intelligence efforts, but also on the clear-
sightedness of managers and their decisions.

328 Global Warming

 In this context, anticipating the impacts of global warming and succeeding in reducing efficiently
GHG emissions could be seen as an indicator of the quality of management in an organisation. This
could explain the predominance of the win-win rationale in recent empirical studies on the eco-
nomic impact of environmental initiatives. From this standpoint, it is not necessarily environmen-
tal initiatives and GHG reduction that will eventually contribute to improved economic
performances, but, more importantly, the excellence of managers, their vision and their decisions
leading to good economic, as well as environmental, performances. This viewpoint provides a more
positive and dynamic way of understanding the consequences of the Kyoto Protocol for organisa-
tions. GHG reduction is not only an ecological or ethical imperative: it is also an indicator of an
organisation’s health, innovation and social responsibility. By contributing to the reduction
of GHG emissions, organisations are also becoming part of the solution to global warming instead

py
of simply being part of the problem.

References

co
1. V. Houlder, Swiss Re changes the climate, Financial Times (April 27, 2004).
2. K. Packard and F. Reinhardt, What Every Executive Needs To Know About Global Warming, Harvard
Business Review, 125 78(4), 128e135, (2000) JulyeAugust.
3. S. Dunn, Down to Business on Climate Change, Greener Management International 39, 27e41 (2002).
4. A. Kolk and J. Pinkse, Market Strategies for Climate Change, European Management Journal 22(3),
304e314 (2004); A. Kolk and J. Pinkse, Business Responses to Climate Change: Identifying Emergent

al
Strategies, California Management Review 47(3), 6e20 (2005).
5. A. J. Hoffman, Examining the Rhetoric: The Strategic Implications of Climate Change Policy, Corporate
Environmental Strategy 9(4), 329e337 (2002); A. J. Hoffman, Climate Change Strategy: The Business
on
Logic behind Voluntary Greenhouse Gas Reductions, California Management Review 47(3), 21e46 (2005).
6. C. E. Coon, Why President Bush Is Right to Abandon The Kyoto Protocol? The Heritage Foundation 1437,
(May 11, 2001); M. Thorning, A US Perspective on the Economic Impact of Climate Change Policy,
Special Report of the American Council for Capital Formation, December(2000).
rs

7. A. J. Hoffman (Op. cit. at Ref 5).

8. F. Krause, S. J. Decanio, J. A. Hoener and P. Baer, Cutting Carbon Emissions at a Profit (Part I): Oppor-
tunities for the US, Contemporary Economic Policy 20(4), 339e365 (2002); M. Whittaker, Global Climate
pe

Change: Uncovering Hidden Investment Risk and Opportunity, The Geneva Papers on Risk and Insurance
25(4), 619e628 (2000); G. Boyd and J. D. McClelland, The Impact of Environmental Constraints on Pro-
ductivity Improvement in Integrated Paper Plants, Journal of Environmental Economics and Management
38, 121e142 (1999).
9. P. Shrivastava, The Role of Corporations in Achieving Ecological Sustainability, Academy of Management
Review 20(4), 936e960 (1995); M. A. Berry and D. A. Rondinelli, Proactive Corporate Environmental
Management: A New Industrial Revolution, The Academy of Management Executive 12(2), 38e50
r's

(1998); M. Russo and P. Fouts, A Resource-Based Perspective on Corporate Environmental Performance

and Profitability, Academy of Management Journal 40(3), 534e559 (1997); G. Azzone and U. Bertèle,
Exploring Green Strategies for Competitive Advantage, Long Range Planning 27(6), 69e81 (1994);
N. Amara, N. Traoré, R. Landry and R. Romain, Technical Efficiency and Farmers’; Attitudes toward
o

Technological Innovation: The Case of the Potato Farmers in Quebec, Canadian Journal of Agricul-
th

tural Economics 47, 31e43 (1999).

10. M. E. Porter, The Competitive Advantage of Nations, Free Press, New York, (1990) 855 pp. M. E. Porter and
C. Van Der Linde, Green and Competitive: Ending the Stalemate, Harvard Business Review 9(4), 120e134
(1995).
Au

11. M. J. Roy, O. Boiral and D. Lagacé, Environmental commitment and manufacturing excellence: A com-
parative study within Canadian industry, Business Strategy and the Environment 10(5), 257e268 (2001);
M. Wagner, S. Schaltegger and W. Wehrmeyer, The Relationship between the Environmental and Eco-
nomic Performance of Firms: What Does Theory Propose and What Does Empirical Evidence Tell Us?
Greener Management International 34, 95e108 (2002); P. Christmann, Effects of ‘best practices’ of envi-
ronmental management on cost advantage: The role of complementary assets, Academy of Management
Journal 43(4), 663e680 (2000).
12. M. Wagnerand and S. Schaltegger, How Does Sustainability Performance Relate to Business Competitive-
ness? Greener Management International 44, 5e16 (2004)..

Long Range Planning, vol 39 2006 329

13. For more information on EIATRACK, go to: http://www.eiatrack.com/ (consulted May 6, 2006).
14. C. Hunt and E. Auster, Proactive Environmental Management: Avoiding the Toxic Trap, Sloan Manage-
ment Review 31(2), 7e18 (1990); R. B. McKay, Organizational Responses to an Environmental Bill of
Rights, Organization Studies 22(4), 625e658 (2001); S. Sharma and H. Vredenburg, Proactive Corporate
Environmental Strategy and the Development of Competitively Valuable Organizational Capabilities,
Strategic Management Journal 19, 729e753 (1998); J. A. Aragón-Correa and S. Sharma, A Contingent
Resource-based View of Proactive Corporate Environmental Strategy, Academy of Management Review
28(1), 71e88 (2003).
15. Collins Cobuild English Dictionary, HarperCollins Publishers, Glasgow, (2001) 1824 pp.
16. S. Dunn (Op Cit at Ref 3); D. G. Cogan, Corporate Governance and Climate Change: Making the Connec-
tion, Investor Responsibility Research Center, Boston (2006).
17. P. Bansal and K. Roth, Why Companies Go Green: A Model of Ecological Responsiveness, Academy of

py
Management Journal 43(4), 717e736 (2000); A. J. Hoffman, From Heresy to Dogma: An Institutional His-
tory of Corporate Environmentalism, New Lexington Press, San Francisco (1997); M. Delmas and M. W.
Toffel, Stakeholders and Environmental Management Practices: an Institutional Framework, Business

co
Strategy and the Environment 13, 209e222 (2004).
18. P. J. DiMaggio and W. W. Powell, The Iron Cage Revisited: Institutional Isomorphism and Collective
Rationality in Organizational Fields, American Sociological Review 48, 147e160 (1983); J. W. Meyer
and B. Rowan, Institutional organizations: Formal structure as myth and ceremony, American Journal
of Sociology 83(2), 340e363 (1977).
19. R. W. Ackerman and R. A. Bauer, Corporate Social Responsiveness: The Modern Dilemma, Publishing Com-
pany, Reston (1976); O. Boiral and D. Jolly, Stratégie, Compétitivité et Écologie, Revue Française de

al
Gestion 89, 80e95 (1992).
20. T. Lyon, Green Firms Bearing Gifts, Regulation Fall, 36e40 (2003).
21. M. Moujab, Entrée en vigueur du Protocole de Kyoto: Lafarge cherche à bénéficier des crédits de carbone,
on
L’Économiste (February 25, 2001).
22. The New Economics Foundation, Climate Change: A Corporate Impact Survey, New Economics Founda-
tion, London (2004).
23. D. L. Levy and S. Rothenberg, Heterogeneity and Change in Environmental Strategy: Technological
rs

and Political Responses to Climate Change in the Global Automobile Industry, in A. Hoffman and
M. Ventresca (eds.), Organizations, Policy, and the Natural Environment. Institutional and Strategic
Perspectives, Stanford University Press, Standford, 173e194 (2002).
pe

24. R. Peglau, The number of ISO14001/EMAS registration of the world, Federal Environmental Agency,
Germany (2006).
25. O. Boiral, Tacit Knowledge and Environmental Management, Long Range Planning 35(3), 291e317
(2002).
26. N. Nahapetian, Shell et les énergies renouvelables, Novethic (October 30, 2001).
r's

Biography
o

Olivier Boiral is a professor at the Faculty of Business Administration at Université Laval in Quebec, Canada,
where he teaches environmental management and international affairs. He earned a Ph.D. from the École des HÉC
th

in Montréal in 1996. Most of his research centres on environmental management and international standardisation.
He is the author of some 50 articles and scientific papers. In January 2005, he was appointed Director of the Canada
Au

Research Chair in International Management Standards and Environmental Affairs. Olivier.Boiral@mng.ulaval.ca

330 Global Warming