By Jon Birger Skjaerseth, Tora Skodvin
This quantity offers an in depth learn of the weather concepts of ExxonMobil, Shell, and Statoil. With an cutting edge analytical strategy, the authors clarify adaptations at 3 decision-making degrees: in the businesses themselves, within the nationwide home-bases of the corporations, and on the overseas point. The research generates policy-relevant wisdom approximately no matter if and the way company resistance to a potential weather coverage should be conquer.
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Additional info for Climate Change and the Oil Industry: Common Problems, Different Strategies (Issues in Environmental Politics)
Predictability in regulatory frameworks is important when oil companies make decisions on their own climate targets, abatement measures or investments in renewable energy. Since 1971, Shell has, for example, addressed uncertainty in its strategy formulation through scenario planning (see chapter 4). A proactive response can also be seen as a function of regulatory pressure exercised within a political context of the increasing importance of insurance companies, responsibility and liability. The oil industry has experienced a gradual strengthening of environmental policy since the 1950s (Estrada et al, 1997).
The question in this section is whether and how the institution governing climate change has constrained or promoted subsequent actions among corporate actors due to its initial qualities. As noted, international regimes tend to ‘mature’ over time towards more stringent joint commitments. , 1996). According to Young, international regimes evolve continuously in response to their own inner dynamics (Young, 1989: 95). Levy has labelled such dynamics of international environmental insti- 38 Climate change and the oil industry tutions as ‘tote-board diplomacy’ (Levy, 1993).
While these factors are company-specific, they represent external sources of influence on a company’s environmental strategy choice. Another set of factors that may have an impact on strategy choice and corporate environmental performance stems from internal sources. Here we focus on a company’s capacity for organisational learning. Organisational learning basically concerns two main dimensions (see also Post and Altman, 1992; Neale, 1997): First, a company’s capacity to learn depends on its openness towards its external environment; that is, the degree to which it exposes itself to the outside world and its capacity to capture signals of trends in areas of relevance to its business.