Transition to a low carbon footprint : a conceptual model of impacts and management for Australian businesses
Australian businesses will face profound and wide-ranging structural impacts during their transition to a low carbon footprint economy. This paper synthesizes the impacts for the firm during the transition and identifies the crucial impact variables. In doing so, it explores the link between the opportunities and benefits, costs, risks and structural changes and evaluates the challenges in managing the multiple impacts. The paper provides a conceptual model that will assist decision-makers deal with risk management or bottom-line protection issues as well as exploiting the business opportunity the new regulatory environment will produce. The model argues for a holistic corporate governance mechanism, with responsibility and accountability of climate change risk management placed with the board of directors and senior management. The literature review is presented first, followed by the discussion and the model. Future empirical research direction is also presented with the development of a series of propositions for testing.