Climate Change Integration into Business Strategy and Carbon Emission Reduction

ACC620 Contemporary Issues in Accounting
Semester 2 2018
Research Proposal
Student Name:
Title:
Submission Date:
Acknowledgement:
I certify that I have carefully reviewed the university’s academic misconduct policy. I understand that the
source of ideas must be referenced and that quotation marks and a reference are required when directly
quoting anyone else’s words.

Introduction:
The research proposes climate change integration into business strategy and state whether it helps in
carbon emission reduction. The research method of the study relates to the disclosures retrieved with the use
of survey technique which is available in the website of the CDP. The study also states the purpose of
considering 80 out of 5000 companies to participate in the survey. The main idea of the study is depicted with
the response of the descriptive design. The study will use the disclosure percentages as per the climate change
which needs to be integrated into the perception of the pressure taken from the consumers which may have a
considerable amount of impact on the performance of market. This analysis will consist of the descriptive
analysis along with combination of inferential statistical tools. The objectives pertaining to the analysis will be
measurable as per the IV affecting the DV. As the companies has self-reported the statistics, this is speculated
in terms of the performance of the company and various other factors which may be measured as political
influences and social influences. In case survey of the study is larger than the size then the disclosure of the
carbon emissions will be able to show whether a company will be able to actively involved in the strategy for
showing the main agents which are responsible for the emissions. Theoretical Construct has been taken from
the Climate change integrated into business strategy which has shown climate change integration with the
topic of carbon emission will depend on the strategies integrated by the business. Carbon emission reduction
has been depicted with the dependent variable which is included under the scope of the study of carbon
emissions. Management Incentives are considered to be important as the companies may decide to be
benefitted financially pertaining to these incentives (Moriarty, 2014).
Practical Motivation:
Carbon footprint and industrial emissions can be depicted to be caused by any organization or a
product which is expressed equivalent to carbon dioxide. The measure of the total carbon dioxide and
methane emissions may be considered as equivalent to total amount of carbon dioxide and methane emission
for a defined population and consideration of the relevant sources which sinks within the spatial and temporal
boundary of the population, activity or interest. The practical motivation is taken from the role of the
industries which is also seen to be important for the solving the problems associated to climate change. The
important contribution to the research study needs to be determined in terms of whether climate change
integration into business strategy has helped in the carbon emission reduction. The impact of the conduction
of the study will be seen with significant effect on the stakeholders by the initiatives taken by the companies as
per GHG emission disclosures. The main impact on the stakeholders needs to be considered as this will be
conducive for long-term reputation of the company. This relates to the various types of the social awareness
and future implication which the companies consider in illustration and identification of the sources of
problem and committing to the reporting activities. (Schandl, et al., 2016)
Theoretical Motivation:
The carbon emissions and the Greenhouse emissions are seen with main information for any
organization which was expected to disclose on the “carbon disclosure project (CDP)”. The research is
contributing towards the motivation of the firms to focus on reducing the output from the carbon emissions
and other areas in which industries are responsible to affect the climate. Despite of the efforts taken by the
organization there are significant drawbacks suffered in understanding the main drivers for climate change.
Some of the other gaps of the previous research needs to be determined with the limited discussion on the
stakeholders due to carbon emissions. The study has implemented the use of the stakeholder’s theory to align
the interests of knowing the policies in organization relating to climate change (Mossler, et al., 2017).

Literature Review:
The role of the board of directors is seen in terms of addressing to the climate change which has been
evident with regulatory risk measures, physical risk, financial risk and liability risk. The important disclosures
pertaining to the carbon disclosures are seen to be based on the focus on the carbon intensive sectors under
the liability risk. The board of directors have also taken several initiatives pertaining to climate change. The
contribution of the directors is further depicted in terms of the providing a positive overview of the significant
impact on the quality and quantity of the GHG emission disclosures (Kılıç & Kuzey, 2018).
The linking of the two variables of the study is considered with mean percentage of the gross global
combined Scope 1 and 2 emissions (2011-2017) and Climate change integrated into the business strategy by
the organizations. The important nature of the moderating variable for the study needs to be identified in
terms of the several types of the other attentions pertaining to the Inherent climate change opportunities that
have the potential to generate a substantive change in business operations, revenue or expenditure. The proxy
measures included in the previous studies are associated to the CSR disclosures which have a significant role
in the stakeholder analysis. For instance, the application of standards such as “ISO 26000” and “GRI (Global
Reporting Initiative)” are in line with the stakeholder’s analysis. Some of the fields associated to the
stakeholder theory, law management and HRM has been successful in terms of the application of the relevant
principles suggested under the stakeholder’s framework (Jensen, 2017).
The stakeholder for any company is considered with the management of the business ethics which
address the morals and values. The stakeholder’s theory has been able to argue with the parties who are
involved with the trade associations, employees, suppliers, government bodies and suppliers (Jensen 2017).
The competitors of a company are also seen with status of being derived with the capacity affecting the
stakeholder’s and firms. The main constituents of the stakeholders are seen to be highly contested with the
consideration various explanations. The overall strategy placed by the stakeholders includes both the
resource-based view at the socio-political level. A common version for this theory seeks to understand about
the various types of the perspectives which are related to the defining of the specific stakeholders of the
company and interpret the conditions which the managers share among the stakeholders. The normative
theory for the stakeholder identification can be stated with any individual who may or may not be considered
to be a part of the organisation. These individuals can be considered with shareholders, consumers,
competitors and partners of the business. The stakeholder’s will be able to include the challenges which the
organizations may face in terms of the allocation of the resources and influencing their operational. The
stakeholder’s salience theory includes the influence of the management in the decision-making process
(Bridoux & Stoelhorst, 2014)
The inclusion of the concepts associated to the CSR has been also identified with a significant role in
the stakeholder analysis. For instance, the application of standards such as “ISO 26000” and “GRI (Global
Reporting Initiative)” are in line with the stakeholder’s analysis. Some of the fields associated to the
stakeholder theory, law management and HRM has been successful in terms of the application of the relevant
principles suggested under the stakeholder’s framework. The ethical approached pertaining to the adoption of
the stakeholder’s theory needs to be identified in terms of the various types of initiatives pertaining to the
individual dilemmas and social dilemmas and organizational dilemmas.
The main recognition of the application of the stakeholder theory needs to be identified in the higher
education in the late 20th and early 21st century. Several other studies have suggested that the external
stakeholders may include the employers. A number of other studies has been able to relate the connection
among the environmental impact and carbon disclosure. Despite of the significant initiatives taken for showing
this relationship, none is seen to be consistent in nature. The environmentally growing concerns are seen to be
addressed in many researches which relates to the consumer consciousness in the market. The voluntary
disclosure assertions are further seen with the considerations of the various types of the assertions which will
show superiority of the firms and the environmental disclosures which differentiates the superior firms with