Strategic Management Practices and Climate Change Mitigation of Total Energies Kenya Limited

Abstract

Climate change is a major challenge to humanity’s existence as it leads to potential shift of weather patterns accelerating the vulnerability of the ecosystems. Realization of Climate change mitigation and adaptation objectives requires effective strategic management practices. Successful strategic management practices guarantee effective reduction of climate change impact and improved environmental sustainability. Failure to incorporate strategic management in the company’s short and long-term goals may result in lack of vision and failure to meet set environmental sustainability objectives within the set timelines. The aim of this study was to determine how strategic management practices has influenced the climate change mitigation within the oil sector in Kenya. The study was anchored on four theories; Triple Bottom Line Theory, Resource Based View Theory, Strategic Leadership Theory and Balanced Score Card Model. Descriptive research design was used for this study with a target populations of 360 employees of TEMK. Proportionate random sampling design was applied with 20% target sample size. Structured questionnaires with close ended question questions was employed as data collection instruments. Cronbach’s alpha measure was used to gauge the reliability of the questionnaire with result above 0.7 considered acceptable. The collected data was analyzed through coding of the questionnaire in SPSS. Multicollinearity test was done to show the occurrence of relationships among two or three independent variables. Variance Inflation (VIF) score was used for multicollinearity test and Normality test was done to ascertain the normality of error terms. A multiple regression equation was developed to show the connection between dependent and independent variables. Further analysis was done through percentages, means, standards deviations, regression and correlations. The analyzed data was presented through graphs, bar charts, histograms, pie charts and tables for easy and quick understanding. The study found out that climate financing, technological investments and climate change policies implementation have significant positive impact on the mitigation of climate change within the oil sector. The study concludes that factors such as climate financing, technological investments and climate change policies implementation have positive impact on the mitigation of climate change in the oil sector in Kenya. The study recommends that, in order to enhance climate financing, the government should establish enabling economic conditions through favorable tax regimes on projects related to climate change mitigation. Also, the study recommends that the oil sector should lobby for green financing by local banks to support investments on climate change. Further, the study recommends that in order to exploit the use of technological investments, the oil sector should enhance investment in renewable energy and energy efficient technologies.