Adopting corporate commitment to climate change : the role of strategic foresight in developing a competitive advantage

Abstract

Corporations are major contributors to GHG emissions. Despite the urgent need to prioritise climate change, many corporations have shown inaction, maintaining a “business as usual” approach and displaying a “wait-and-see” attitude. This is due to inadequate management approaches that avoid uncertainty, and focus on a short-term outlook. This study used a qualitative exploratory method to investigate the role of strategic foresight in addressing uncertainty in corporations that have adopted a commitment to climate change action across different industries operating in South Africa. Secondly, the study explored the role of strategic foresight in identifying risks and opportunities in developing competitive advantages. The sample comprised of 11 corporations from various industries operating within South Africa. Additionally, a policymaker was included in the sample to enrich the data. The study confirmed that corporations experience different types of uncertainties around climate change. It found that strategic foresight methods play an important role in managing this uncertainty. Additionally, strategic foresight supports corporations in adopting climate change action and building a competitive advantage. The study highlights the perspective of corporations dealing with relevant and current uncertainties and challenges associated with South Africa’s goal of transitioning to a low-carbon and resilient economy.