Driving forces and expectations for sustainability within the corporate sector

Abstract: Climate change is a long-term challenge that requires urgent actions. An increased amount of greenhouse gases in the atmosphere, causing changes in the climate system such as melting glaciers and extreme weather conditions, are correlated to economic growth. To mitigate climate change, there is a need to evolve efficient strategies to reduce greenhouse gas emissions from companies within all branches. One such strategy is carbon offsetting within the voluntary market. This thesis aims to investigate companies sustainability strategies, with carbon offset as an integrated part of it, and the driving forces behind them. Moreover, companies' expectations for the future and the market's development will be taken into account. The study has been conducted by reviewing relevant literature along with a survey, which 14 companies answered. Interviews with three of the responding companies have been held to get a deeper 3 understanding. 43 percent of the companies purchase carbon offsets due to their sustainability strategy. 50 percent of the companies answered that they observe obstacles to develop their sustainability further; however, different obstacles were stated. The companies experience high pressure from external stakeholders, but they predict internal demands will increase. Several companies do not view carbon offset as the central part of their future sustainability strategy. However, most of them recognize that emissions not impossible to reduce exist, and therefore carbon offsetting still fills a vital function. The thesis concludes that stakeholders and customers will continue to place high demands, but requirements from future employees can also be expected. Further, the majority of obstacles observed are considered being outside companies' influence. Due to the gap between high demands and lack of alternative opportunities to develop their sustainability work, carbon offset will continue to be a strategy within the next ten years.