Corporate Carbon Reduction Pledges: An Effective Tool to Mitigate Climate Change?

29 Pages Posted: 30 Jun 2021

See all articles by Stephen Comello

Stephen Comello

Stanford Graduate School of Business

Julia Reichelstein

affiliation not provided to SSRN

Stefan Reichelstein

Stanford University - Graduate School of Business

Date Written: 2021

Abstract

In the intensifying public debate about limiting the harmful effects of climate change, many global corporations have recently articulated so-called “net-zero” goals for reducing and ultimately eliminating their own greenhouse gas emissions. We first examine the details ofthe carbon reduction goals articulated by seven large firms in different industries. The individual reduction goals are shown to vary substantially in terms of specificity and scope, largely due to variations in the measurement of carbon footprints. Particular sources of variation arise from how “gross emissions” are determined and from firms’ willingness to recognize carbon credits that offset their own emissions.

Keywords: Carbon Emissions, corporate reporting, net-zero goals, carbon offsets

JEL Classification: Q28, Q40, M41, M48

Suggested Citation

Comello, Stephen and Reichelstein, Julia and Reichelstein, Stefan, Corporate Carbon Reduction Pledges: An Effective Tool to Mitigate Climate Change? (2021). ZEW - Centre for European Economic Research Discussion Paper No. 21-052, Available at SSRN: https://ssrn.com/abstract=3875343 or http://dx.doi.org/10.2139/ssrn.3875343

Stephen Comello (Contact Author)

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, 94305
United States

Julia Reichelstein

affiliation not provided to SSRN

No Address Available

Stefan Reichelstein

Stanford University - Graduate School of Business ( email )

Stanford, CA 94305
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
29
Abstract Views
91
PlumX Metrics