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This study aims to explore South Korean firms’ reactions to climate change issues and the Korean emissions trading scheme (ETS) from the perspective of proactive climate-entrepreneurship. Differences in attitude toward the Korean ETS, implementation of carbon management practices and performance regarding operations, market and emission reductions are also investigated.

A research model was developed to investigate the differences in corporate perception of climate change. Using a cluster analysis and analysis of variance with 94 South Korean companies subject to the Korean ETS, the study identified carbon strategies and examined differences in characteristics among the strategies. This study undertook a robustness test by comparing the results from a large sample (n = 261) with those of the original sample (n = 94).

The study identifies four different carbon strategies based on climate-entrepreneurial proactivity: the “explorer,” “hesitator,” “attempter” and “laggard.” The “explorer” cluster is likely to have a proactive stance toward the Korean ETS regulation, while the “laggard” cluster shows resistance to this new climate policy. Entrepreneurial proactivity in carbon strategies is related to the actual adoption, implementation and effectiveness of carbon management practices.

This research is one of the few studies to explore differences in corporate response to climate change from the perspective of entrepreneurship. The study provides a theoretical foundation for extending the literature on the strategic management of climate change issues.