The mutual influence of Environmental Management Systems and European Emission Trading Scheme on corporate environmental planning: a multiple case study analysis of the Italian pulp and paper industry

The European Emission Trading Scheme (EU ETS) is designed to be a flexible and efficient mechanism to encourage carbon intensive industries to reduce CO2 emissions cost-effectively. Similarly, Environmental Management Systems (EMSs) are well established tools designed to improve the efficiency of the environmental performance of companies. Up to now, many studies have been carried out (separately) on the impacts of the ETS and EMSs on corporate organization and environmental planning. Of these, only a few empirical research studies have analyzed the environmental strategic planning of firms and allowance management set up in response to the ETS. At the same time, only a few studies on the adoption of voluntary regulations have analyzed the specific impact of EMSs on planning. In this framework, the relationships between strategic planning, ETS management and EMSs are still incomplete and their implications not fully understood. This study tries to identify whether the involvement of a firm in the ETS with the adoption of an EMS, favors the generation of corporate strategic synergies in terms of internal resource management and planning. Due to the availability of short time frame and, sometimes, a lack of conclusive findings, a multiple case study emerged as the most suitable approach. Therefore various Italian pulp and paper companies involved in the EU ETS were interviewed and analyzed. These companies were chosen on the basis of the number of allowances allocated by the National Allocation Plan (NAP) and on the adoption of environmental certifications such as EMAS or ISO 14000. We found that organizations that integrate ETS management and EMS tend to establish satisfactory standards and procedures that are relevant for environmental monitoring and compliance, as well as determining corporate organizational management. However, despitesome mutual synergies, they are not sufficient for determining corporate environmental planning.