A comparative picture of climate strategies adopted by aluminum multinational corporations in Canada and Brazil

Abstract

This paper assesses the climate strategies adopted by multinational corporations of the aluminum industry. The research adopted a qualitative approach and was based on interviews with managers from two multinational corporations: one installed in Brazil and the other in Canada. Empirical evidence shows that in order to develop projects to reduce greenhouse gas emissions, the multinational company installed in Canada emphasizes cost reduction and operational efficiency improvement, while the multinational company that operates in Brazil primarily highlights the relationship with stakeholders and the concern with a responsible corporate image. In neither of the two cases studied, coercive pressures arising from regulatory requirements figured as determinant for the adoption of climate strategies. The study concludes that, in the case of the aluminum industry, organizational factors are more relevant than institutional pressures on the definition of climate strategies. Companies may create hedging strategies able to deal with carbon restrictions or attempt to postpone regulations until they have technologies.

Keywords:
Climate change; Strategy; Sustainable development; Multinational corporations; Institutional pressures; Organizational factors