- 17 Jan 2024
- Research & Ideas
Are Companies Getting Away with 'Cheap Talk' on Climate Goals?
Many companies set emissions targets with great fanfare—and never meet them, says research by Shirley Lu and colleagues. But what if investors held businesses accountable for achieving their climate plans?
- 28 Mar 2023
- Cold Call Podcast
BMW’s Decarbonization Strategy: Sustainable for the Environment and the Bottom Line
In mid-2022, automakers, consumers, regulators, and investors were focusing on the transition from internal combustion engine (ICE) vehicles to electric vehicles (EV). While this would reduce tail-pipe emissions, it ignored the fact that the production of EVs—and especially their batteries—increases emissions in the supply chain. Many automakers were announcing deadlines by which they would stop selling ICE vehicles altogether, buoyed by investment analysts and favorable press. But BMW decided to focus on lifecycle emissions and pursued a flexible powertrain strategy by offering vehicles with several options: gasoline and diesel-fueled ICE, plug-in hybrid electric vehicles, and battery electric vehicles. That approach received a frostier reception in the stock market. Assistant Professor Shirley Lu discusses how BMW plans to convince stakeholders that its strategy is good for both the environment and the company’s financial performance in the case, “Driving Decarbonization at BMW.”
How Could Harvard Decarbonize Its Supply Chain?
Harvard University aims to be fossil-fuel neutral by 2026 and totally free of fossil fuels by 2050. As part of this goal, the university is trying to decarbonize its supply chain and considers replacing cement with a low-carbon substitute called Pozzotive®, made with post-consumer recycled glass. A successful pilot project could jump start Harvard’s initiative to reduce embodied carbon emissions, but it first needs credible information about the magnitude and validity of potential carbon reductions. Harvard Business School professor emeritus Robert Kaplan and assistant professor Shirley Lu discuss the flow of emissions along the supply chain of Harvard University’s construction projects, the different methods of measuring carbon emissions, including the E-liability approach, and the opportunity to leverage blockchain technology to facilitate the flow of comparable and reliable emissions information in the case, “Harvard University and Urban Mining Industries: Decarbonizing the Supply Chain.”