Corporate risk management strategies under threats of global warming-Taiwan's experience

Global warming has being become a higtity concerned issue, because the increasing of carbon dioxide (CO₂) will not only result in the future catastrophe of the environment, but also brings risks to the enterprises. As major contributors of CO₂ in the atmosphere, enterprises also play significant roles for reducing greenhouse gas emissions. Based on an extensive literature review on finding how do enterprises response to global warming, this paper categorized risk management strategies of global warming into two dimensions, six aspects and twenty-eight strategies and a questionnaire to study companies of five energy-consuming industries regarding the 28 risk management approaches under the threats of global warming was developed. Data were analyzed for descriptive statistics and one way analysis of variance using SPSS 10. The results indicated that (1) the concept and strategy of environmental insurance is not fully understood by Taiwanese companies to minimize the risk; (2) technology innovation and improvement to enhance energy efficiency and adopting renewable energy to save cost are among the highest acceptance items for Taiwanese companies to implement. Results also suggested that government agencies should well understand the risks and strategies and provide related information to enterprises as well as the public. Technical assistance and consultation should also be provided for enterprises by governments in response to those risks. Correspondingly, local enterprises should understand related risks and strategies and learn from leading enterprises internationally.