ABSTRACT

The purpose of this chapter is to identify the key reasons for corporate inaction on climate change. Literature in the field of corporate sustainability and climate change emphasizes company strategies on climate action and the specific measures firms take to act upon climate change issues. Despite corporate action on climate change, a majority of companies fail to reduce their greenhouse gas emissions and to implement necessary measures. In the literature, reasons for corporate inaction on climate change have scarcely been examined. Inaction can be observed at the individual, organizational and institutional levels. This chapter provides a review of 27 articles from journals related to business, sustainability and management that analyse the reasons why companies remain inertial with regards to climate change mitigation. Based on the findings, the author provides an overview of the complexity of reasons for corporate inaction on climate change, together with an outlook for possible future research.