Lightening the Carbon Load: Using Management Control Systems to Manage Decarbonization Strategies

ABSTRACT With companies increasingly expected to undertake potentially costly climate-response strategies, we explore the roles of management control systems (MCSs) in how simultaneously manage their decarbonization objectives and financial commitments. Based on research at 19 European chemical, steel, utility corporations, extend concept “proactive/reactive” response strategies by proposing three additional strategies: wholesale green transition, segmentation, engagement. Second, highlight recursive relationship between MCSs these strategies. We also postulate a dynamic model evolution context, whereby engagement form foundation segmentation vice versa. Third, drawing an integrative model, propose antecedents companies’ relevant this namely, framing as opportunity or threat, different perspectives availability technologies, policy context.