Is Climate-Friendly Always Environment-Friendly? (Case Study)

Abstract

The case is devoted to the problem of correct climate-friendly branding and is based on a real business situation. The Russian company RUSAL creates a brand of “climate-friendly” aluminium to win over its Chinese competitors which took away the title of the world’s largest primary aluminium producer. As the main criterion for the climate-friendly, RUSAL proposes to consider the low-carbon, i.e. a low level of carbon dioxide emissions. RUSAL also states that the new aluminium brand is a confirmation of the company’s environmental friendliness and a reflection of its strategy aimed at strengthening the principles of sustainable development in production. At the same time, the activities of RUSAL in the production of aluminium cause damage to the ecosystems of Lake Baikal and Siberian rivers and pollutes the air with hazardous substances, which is the cause of the spread of various diseases among the population of the cities where RUSAL’s aluminium smelters are located. The case is recommended for discussion in study groups on bachelor and master’s programmes, as well as additional educational programmes within the disciplines “Corporate Social Responsibility” and “Sustainable Development”. The case will help students: 1) to understand the problems and challenges that companies face in climate-friendly branding, 2) to realize the difference between the effectively fighting climate change and the reduction of greenhouse gases; 3) to recognize the diversity of the company’s objectives to reduce the negative impact on the environment and the need for their reasonable ranking.