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Corporate Social Responsibility Case Study

Case Title:

Carbon Credit Trading: Selling the Right to Pollute

Publication Month and Year : Oct 2010

Authors: Thalluri Prashanth Vidya Sagar, Vivek M., and Dr. Nagendra V Chowdary

Industry: General Business


Case Code: CSR0060

Teaching Note: Available

Structured Assignment: Not Available


The case discusses about carbon credit trading, one of the most controversial trade in the world. Post industrial era of human civilization had collided with the earth’s environmental system resulting in disastrous effects that are strong enough to threaten the biodiversity of the earth. Emission of GHGs and toxic co-pollutants had made earth a boiling pot as the heat-trapping CO2 concentration in the atmosphere is rising steadily to 450 parts per million. With the concern of scientists and environmentalists increasing, countries of the world were forced to make a collective effort through Kyoto Protocol in 1997. Though many global initiatives have been taken with the mission of reducing GHG emissions, lack of co-operation from major polluters like US and China have affected the effective implementation of protocol.

However, as emission reductions became a major concern, Kyoto Protocol initiated mechanism of carbon trading. Though carbon trading helps in the reduction of GHG emissions, many activists and analysts who point to the other side of it are afraid about the negative effects it can have. However, carbon credit trading has opened a new arena of profit making for developing countries that have lesser emission levels. Sustainability being taken to the core strategy to gain competitive advantage, developing climate related strategies would become a critical success factor of corporate bodies.

Pedagogical Objectives:

Keywords : Carbon credit Trading; GHG Emissions; Global Warming; Sustainability; Kyoto Protocol; Carbon Credit


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