A path analysis study on decarbonization management and determinant stakeholder of small and medium-sized enterprises in Nagasaki Prefecture, Japan

The purpose of this study is to identify SMEs' understanding of decarbonization management and identify stakeholders who have an impact on the CEO who plays a decisive role in carbon strategy. In this study, a structural equation model was constructed and empirically tested to evaluate associations between CEOs and pre-selected stakeholders. For the data, 41 valid responses were used from a survey targeting small and medium-sized enterprises in Nagasaki Prefecture. As a result of analysis, it was confirmed that decarbonization management had not penetrated other than in the initial stage in the SMEs in Nagasaki prefecture. The top manager's willingness is the main factor determining the companies’ level of carbon management. It is noteworthy that there is growing interest in carbon offsetting using local natural-based credits, which some companies are using to achieve carbon neutrality. This study suggests policy implications for SMEs to improve and promote interest in carbon management.