The electricity industry's environmental impacts are a matter of acute interest to many outsiders, including government and environmental groups-and they have sought to affect those impacts through regulations, public pressure, and technical assistance. These approaches reflect outsiders' intuitive theories regarding the industry's goals, practices, and capabilities. The research reported here provides a systematic insiders' view on these processes, based on in-depth interviews with 70 middle managers in two electricity companies heavily reliant on coal. It finds managers sincerely committed to environmental action, but often frustrated by confusing regulatory requirements, perceived costs, and other challenges. It identifies ways of enabling middle managers to act on their commitment, with lessons relevant for outside groups and those within companies seeking to effect change. (c) 2007 Elsevier Ltd. All rights reserved.