CONCLUSION
This study develops a theoretical framework (Table 2), based on a literature review, to examine five New Zealand electricity generators by way of a case study based on indepth interviews and archival data. We specifically focus on i) the strategies generators adopt to respond to CC risks, and ii) consequent changes in carbon management accounting. Our case study informs the original framework and leads to a revised theoretical framework (Table 9). In addition, we modify our original metaview of causal effects (Figure 1) to emphasise the important role we found regulatory uncertainty to play (Figure 2). The study makes several contributions to the literature. First, we develop a framework that connects CC risks and opportunities with appropriate strategic responses. This framework essentially builds on the idea that the mixture of CC risks and market opportunities is the key driver of an organisation’s risk management strategy. Using this framework, our findings suggest contingency fit between CC exposure and risk management strategies. As the CC exposure increases, companies move from stable and anticipatory strategies to proactive strategies. Further, there was a shift over time from internal to external functions in implementing these strategies, reflecting the fact that the CC exposure was primarily driven by external stakeholder pressures and policy changes. However, companies revert to reactive strategies as CC exposure reduces. The modified framework based on our empirical findings also connects CC exposure with regulatory uncertainty and CMA design and use. This framework helps to theorise, explain, and predict the strategic and CMA responses of organisations exposed to different combinations of CC risk, opportunity and uncertainty.
