Achieving the goal of net-zero requires both resource efficiency and efficient business management

Abstract

This research study uses the ARDL technique to examine the impact of corporate management index and energy utilization on carbon emissions in Chinese listed companies. The sample consists of 500 firms that participated in China's Carbon Emission Trading Mechanism between 2016 and 2021. The results indicate that an improved corporate management index leads to significant reductions in carbon emissions, with a decrease of approximately 0.24% in the short term and 0.54% in the long term. On the other hand, increased energy expenditure contributes to higher carbon emissions, with an increase of around 0.28% in the short term and 0.33% in the long term. Additionally, the study emphasizes the importance of ICT and total assets in addressing carbon emissions. To achieve the goal of zero net carbon, practical policies that focus on resource efficiency and effective corporate management, such as setting ambitious carbon reduction targets, adopting renewable energy, and promoting collaboration among stakeholders, are recommended for Chinese listed companies.