Can Corporate Digital Innovation Speed Up Climate Change Mitigation? Evidence From China

Addressing the challenges posed by climate change has led to a global consensus on adopting various environmentally sustainable practices, especially those aimed at reducing carbon emissions. Simultaneously, the role of digital innovation (DI) is increasingly recognized as a potential driver for corporate sustainability transformation in the current wave of the digital era. To investigate the environmental benefits of DI, this study examines the impact of corporate DI on carbon emission intensity (CE) through the lens of dynamic capability view. Based on the sample of manufacturing companies listed in Chinese Stock "A" market over the period 2010-2020, the empirical results show that corporate DI and CE are negatively correlated. Furthermore, corporate governance and managerial ability significantly enhance these relationships. The framework presented provides new perspectives and evidence that DI drives firms' carbon reduction targets.