Determinants of the perceived importance of organisational adaptation to climate change in the Australian energy industry

Abstract

Climate change will pose considerable risk to organisations in the 21st century. However, organisational adaptation to climate change has not yet received much attention in the management literature. Drawing on strategic choice theory, we put forward a model proposing that environmental attitudes and climate change knowledge are antecedents of how important adaptation is perceived to be by organisational decision-makers and that the perceived risk towards climate change acts as a mediator in this relationship. We tested the model with responses from 101 managers in the Australian energy industry. Findings of the study show that both environmental attitudes and climate change knowledge have a significantly positive effect on the perceived importance of climate change adaptation and that this relationship is mediated by risk perception. The study highlights the need to draw climate knowledge to the attention of executives and discusses avenues for future research, including the extension of the findings to other industries and settings.