The role of sustainability resources of large greenhouse gas emitters: The case of corporations in Alberta, Canada

Abstract

With the global challenge of climate change, it becomes crucial to understand the factors that can guide carbon intensive companies to comply with environmental regulations through significant reductions in greenhouse gas (GHG) emissions. Using the natural-resource-based view, the argument in this paper is that focusing on sustainability-driven resources by companies is a way to meet environmental compliance and reduce GHG emissions while gaining differential competitive benefits. A specific analysis on Alberta case has discussed large GHG emitters' environmental compliance mechanisms in the context of their sustainability resources. The aim is examining if large GHG emitters in Alberta related to corporations having sustainability resources are complying with the Specified Gas Emitters Regulation (SGER) reduction requirement through cleaner-production driven internal mechanisms. The paper examines the existence of the sustainability resources in the reporting companies related to large GHG emitters responsible for 86% of total GHG reported by facilities with emissions above the threshold of 100 kilotonnes of GHG per year under SGER in Alberta. Corporations are found not using their sustainability resource potential to achieve internal reductions in GHG emissions throughout their facilities. Thus, some recommendations are presented for Alberta case as well as for environmental regulations in other jurisdictions that can potentially help policy makers improve their climate change regulations and achieve their global targets and enable companies to gain competitive advantage while meeting GHG reduction compliance.