Proactive carbon strategies are beyond extant laws and it is important to understand why companies go beyond compliance. The paper discusses motivations behind their adoption of proactive carbon strategies in
India. The research results show that institutional pressure is the most significant determinant of adoption of proactive carbon strategies. Other factors such as managerial attitude, business case of carbon investments and productivity enhancement initiatives are also significant. Based on the research findings, the paper proposes some important managerial implications in connection with adoption of proactive carbon strategies.