Climate policy and business climate strategies - EU cement companies' response to climate change and barriers against action

摘要

Purpose - The purpose of this paper is to provide a descriptive analysis of the carbon management activities of the cement industry in Europe, based on a study involving the four largest producers of cement in the world. Based on this analysis, the paper explores the relationship between managerial perception and strategy, with particular focus on the impact of government regulation and competitive dynamics. Design/methodology/approach - The research is based on extensive documentary analysis and in depth interviews with senior managers from the four companies who have been responsible for and/or involved in the development of climate change strategies. Findings - It was found that whilst the cement industry has embraced climate change and the need for action, there remains much scope for action in their carbon management activities, with current effort concentrating on hedging practices and win-win efficiency programs. Managers perceive that inadequate and unfavourable regulatory structure is the key barrier against more action to achieve emission reduction within the industry. Interestingly, EU cement companies are also shifting their CO_2 emissions to less developed countries of the South. Originality/value - The paper analyses corporate climate strategy in one of the most carbon intensive and yet least studied industries. With specific focus on the EU, the paper highlights a number of policy approaches for encouraging the cement industry on the path of deeper emission reduction.