Carbon disclosure strategies in the global logistics industry: Similarities and differences in carbon measurement and reporting

Abstract

The transportation industry can be regarded as a significant contributor to greenhouse gases, which puts pressure on global logistics companies to disclose their carbon emissions in the form of carbon reports. However, the majority of these reports show differences in the measurement and reporting of carbon information. Through an institutional theory lens, this chapter discusses the emergence and institutionalisation of carbon disclosure and their influence on carbon reporting, using the cases of FedEx and UPS. In particular, the chapter examines whether the carbon reports follow a symbolic or substantial approach and which institutional logic dominates the rationale behind each company's carbon disclosure. We uncover significant variances in the measurement and reporting of carbon performance information between those companies that provide insights into the different dominant logics and their influence on carbon reporting. Our results show that both companies adopt different dominant logics due to heterogeneous carbon reporting practices. In a quest for market-controlled sustainability initiatives, this research is important (a) for understanding the ways in which major carbon contributors operate between market and sustainability logics, and (b) for policymakers to provide an understanding of how to encourage investments in carbon performance without reducing the ability to compete in the marketplace, thus initiating a shift to more environmentally friendly activities.