Enhancing Environmental Sustainability: Stakeholder Pressure and Corporate CO2-Related Performance—An Examination of the Mediating and Moderating Effects of Corporate Decarbonization Strategies

Abstract

Climate change mitigation and the imperative to reduce carbon dioxide (CO2) remain significant challenges. The primary source of this problem and a crucial aspect of its resolution lie in carbon-intensive companies responsible for emitting substantial quantities of anthropogenic carbon dioxide. Many polluting companies, such as energy producers, have been forced to take actions to adopt effective strategies and achieve better performance to mitigate emissions. This is also a result of pressure from stakeholders that is exerted on companies to decrease their carbon dioxide pollution. Therefore, this study focuses on two research questions: How does stakeholder pressure impact CO2-related performance? Do decarbonization strategies mediate and moderate the relationship between stakeholder pressure and CO2-related performance in companies? Thus, the aim of this study is to investigate the relationship between stakeholder pressure for reducing carbon dioxide emissions and corporate CO2-related performance, and to test the impact of adopting decarbonization strategies on corporate CO2-related performance. Additionally, we examine the mediating and moderating effects of decarbonization strategy adoption on the relationship between stakeholder pressure and corporate CO2-related performance. This study was conducted on a sample of 122 energy producers in Poland. To test the hypotheses, linear multiple regression analysis was employed. The findings reveal a positive relationship between stakeholder pressure and the adoption of decarbonization strategies, as well as CO2-related performance. Furthermore, the results confirm the mediating effect of decarbonization strategy, while the moderating effect of decarbonization strategies remains unproven. The results have important practical implications for managers, who are required to identify stakeholders’ demands related to CO2 emissions. Based on this, they should implement active strategies to achieve better CO2-related performance and minimize their carbon footprint.