Decoding the multifaceted just transition: from the organizational commitment to environmental issues toward investments and expected outcomes

Abstract

"Purpose: This paper investigates the role of the organizational culture and readiness for Just Transition (JT)/decarbonization, starting from the commitment to environmental issues toward the investments and expected outcomes and by proposing a novel research model and unfolding a cross-country firm-level survey. The survey assesses firms’ awareness of the EU energy transition, their internal and external responses, and the factors influencing these responses. Design/methodology/approach: The questionnaire-based survey, conducted in Germany, Romania, Spain and the UK, included 550 companies. Data was collected via an online survey between December 2023 and January 2024. The analysis was performed using partial least squares structural equation modeling (PLS-SEM) to evaluate complex structural models. A multigroup analysis (MGA) was also computed to provide a comparative outlook across countries. Findings: All hypotheses tested were supported in both the four-country framework and in separate national contexts, indicating strong and significant relationships between the constructs. This supports the advanced research model and suggests that factors such as commitment to environmental issues, confidence in JT policies and organizational culture play relevant roles in sustainability and decarbonization efforts. Further, the results show that both organizational culture and financial costs influence the investments plan and expected results of companies. Also, the assumption of financial costs and perceived risks emerges as a prerequisite for achieving better outcomes. Research limitations/implications: From a bird’s eye view, in terms of managerial implications, the results provide actionable insights for companies navigating toward the JT programs, offering inputs on how to develop organizational cultures prepared for this evolution while paying attention to the necessity to mitigate risks and ensure a transition that makes employees confident about it. Simultaneously, the findings inform policymakers about the crucial necessity to adopt and communicate supportive legislation for businesses that align with the JT goals in a continuous, predictable and transparent way. Originality/value: By bridging the gap between business practices and public policy, this research can contribute to a smooth JT and confirms the necessity of more awareness of the JT, as well as of more support for companies to embrace it."