Digital technologies and carbon neutrality goals: An in-depth investigation of drivers, barriers, and risk mitigation strategies

Abstract

Prior research has primarily concentrated on non-digital and process-oriented methods for achieving carbon neutrality (CN) in the context of mitigating climate change (CC), while the potential of digital technology (DT) has hardly been investigated. This study addresses this gap by answering four research questions: How are firms utilizing DT to achieve CN? What drives the adoption of DT for achieving CN? What are the barriers that prevent the adoption of DT for achieving CN? What risk mitigation strategies can be adopted by firms to overcome these barriers? An inductive method using open-ended essays has been adopted to gather data from firms that have already implemented DT for CN. The findings revealed four distinct dimensions. Utilization of DT for CN includes enhancing business value, managing one's carbon footprint, enabling smart solutions, and enhancing efficiency. The drivers for adopting DT for CN included driving business growth, external pressures, competitive advantage, and environmental consciousness. Key barriers included financial barriers, technological barriers, human resource barriers, and external barriers. Risk mitigation strategies included pre-implementation strategies, detailed planning and evaluation, ensuring employees' buy-in and readiness, and external stakeholder engagement. This study offers a broad-based foundation for designing DT strategies for achieving CN.