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Corporate response to climate change mitigation: What can we learn from annual reports of European industries?
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Dynamics (Closed 20130101). (Industirell Dynamik)ORCID iD: 0000-0001-7028-0624
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Dynamics (Closed 20130101).ORCID iD: 0000-0001-5912-441X
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
2011 (English)In: International Journal of Industrial Engineering and Management, ISSN 2217-2661, Vol. 2, no 3, 77-86 p.Article in journal (Refereed) Published
Abstract [en]

Climate change and how best to mitigate its impact has in recent decades prefigured in the industrialdevelopment debate. Awareness about future costs related to increased atmospheric temperaturesprovides an incentive for lowering greenhouse gas emissions such as CO2. At the same time,measures to mitigate climate change do not only induce corporate uncertainty and pressure, but it isalso provides opportunities for new businesses domains and models. The coverage of climate changeissues from mass media broke with earlier trends and increased in the middle of the last decade. Howabout corporate focus? Was climate change issue on the corporate agenda by then?This study presents a content analysis of more than 1100 shareholder letters from 131 of the largestEuropean public liability companies between 2000 to 2009. The main purpose of this paper is toanalyze climate change from a corporate perspective. Was climate change discussed by ChiefExecutive Officers (CEO) and board chairmen during this time? If so, to what extent and are thereindustrial differences?This study shows that climate change appeared on the corporate strategic agenda in year 2005, frompreviously occupying a marginal place. In 2008, corporate climate change discussions were largelypushed aside by the financial crisis. It also show a trend where a shift has occurred from a generalinterest, towards one more divided between different industries.

Place, publisher, year, edition, pages
University of Novi Sad , 2011. Vol. 2, no 3, 77-86 p.
Keyword [en]
Annual Report, Climate Change, Corporate Strategy
National Category
Business Administration
URN: urn:nbn:se:kth:diva-65522OAI: diva2:483419

QC 20120127

Available from: 2012-01-27 Created: 2012-01-25 Last updated: 2015-12-10Bibliographically approved
In thesis
1. Investments, system dynamics, energy management and policy: a solution to the metric problem of bottom-up supply curves
Open this publication in new window or tab >>Investments, system dynamics, energy management and policy: a solution to the metric problem of bottom-up supply curves
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Today, issues such as climate change and increased competition for scarce resources puts pressure on society and firms to transform. Change is not easily managed though, especially not when relating to production or consumption of energy carriers such as district heating or electric power. These systems do not only have strong dynamics internally, but dynamics between multiple technological systems must sometimes be considered to effectively manage response and strategies in relation to change.

During the early 1980s, an optimisation model founded on an expert-based approach was developed based on the partial equilibrium model to enable the evaluation of different actions to reach a target. This model — often referred to as marginal abatement cost curve (MACC) or conservation supply curve (CSC) — is used by academia, industry and policymakers globally. The model is applied for causes such as energy conservation and waste management, but also within the climate change context for optimising CO2 reductions and governmental policy. In this context, the model is used by actors such as the Intergovernmental Panel on Climate Change (IPCC), International Energy Agency (IEA) and World Bank, and by the consultancy firm McKinsey & Company, who use it extensively in different analysis.

This model has many drawbacks in relation to managing interdependencies between different options, but more specifically the metric used for ranking options with a negative marginal cost has a design flaw leading to biased results. As a solution Pareto optimisation has been suggested, but is problematic given the dynamics within and between energy systems.

The purpose of this compilation dissertation is to improve the ability for industry and policymakers to effectively manage change and reach set targets. In particular it develops our knowledge of how to account for option interdependency within and between technological systems. Furthermore, the ranking problem relating to expert-based least cost integrated planning is addressed.

This dissertation also provides policy and managerial implications relating to the issues of energy conservation, CO2 abatement, and SOx and NOx reduction in relation to the district heating system in Stockholm. Implications are also provided for the interaction with other systems such as the Nordic electric power system.

Abstract [sv]

Klimatfrågan och konkurrens om knappa resurser medför ett förändringstryck på nationer och företag. Att hantera förändringar har aldrig varit enkelt, vilket är tydligt bland företag inom energisektorn såsom el och fjärrvärmeproducenter. Energisystemen dessa företag är del av har stark intern dynamik, men även dynamik mellan olika energisystem är vanligt. Detta måste tas i beaktande när strategier och planer för att hantera förändring utformas.

Under början av 1980-talet skapades en optimeringsmodell baserad på den nationalekonomiska jämviktsmodellen för att kunna utvärdera olika specifika möjligheter att nå ett mål, t.ex. energibesparingar. Denna modell, som idag ofta benämns MACC (Marginal Abatement Cost Curves) eller CSC (Concervation Supply Curves), används idag av akademin, industrin och myndigheter inom områden så som energibesparingar, minskade CO2-utsläpp, sophantering och design av ekonomiska policyinstrument. De icke-akademiska användarna inkluderar FNs klimatorgan IPCC, IEA och Världsbanken. Även konsultfirman McKinsey&Company använder modellen regelbundet i olika studier.

Tyvärr har modellen många begräsningar när det kommer till att hantera dynamiker mellan de specifika åtgärder som identifierats för att nå ett mål. Den allvarligast begränsningen utgörs dock av ett optimeringsfel som leder till felaktiga slutsatser om prioriteringen mellan de åtgärder som har en negativ marginalkostnad. Som en lösning på detta problem har pareto-optimering föreslagits, vilket denna avhandling dock visar är problematiskt på grund av de dynamiker som finns inom och mellan energisystem.

Det övergripande syftet med denna avhandling är att förbättra möjligheten att hantera förändringar och nå uppsatta mål. Specifikt diskuteras hur beroenden mellan olika åtgärder för att nå det satta målet kan hanteras. Avhandlingen adresser även problemet att prioritera mellan åtgärder med negativ marginalkostnad.

Utöver detta bidrar avhandlingen med praktiska implikationer för politiker, myndigheter och företag involverade i fjärrvärmeproduktion i Stockholm. Slutsatser dras kring energibesparingar och minskade utsläpp av CO2, SOx och NOx. Praktiska implikationer ges även för hur system som detta fjärrvärmesystem samverkar och interagerar med det nordiska elsystemet.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2015. 56 p.
TRITA-IEO, ISSN 1100-7982 ; 2015:03
Investments, Energy Management, Policy, MACC, CSC climate change abatement, energy efficiency and conservation, system dynamics
National Category
Business Administration Economics Energy Engineering
Research subject
Industrial Engineering and Management
urn:nbn:se:kth:diva-161904 (URN)978-91-7595-483-7 (ISBN)
Public defence
2015-05-08, E3, Osquarsbacke 14, KTH, Stockholm, 14:30 (English)
Investments in energy efficiency and climate change abatement: revising marginal cost curves as an optimization model
Swedish Energy Agency, 35894-1

QC 20150414

Available from: 2015-04-14 Created: 2015-03-18 Last updated: 2015-04-14Bibliographically approved

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