Impact of digital transformation on corporate sustainability: evidence from China’s carbon emissions

Climate change has become an increasingly pressing issue, underscoring the urgent global need for energy conservation and emission reduction. As one of the largest emitters, China is actively advancing comprehensive efforts to reduce emissions in pursuit of sustainable development, with enterprises playing a key role in aligning economic growth with environmental sustainability. Digital Transformation (DT) has emerged as a crucial enabler of low-carbon economic development. This study utilizes data from publicly listed companies in China, spanning the period from 2000 to 2021, and employs a two-way fixed-effects model to assess the impact of corporate DT on Carbon Emissions (CE). The findings reveal that: First, DT significantly contributes to the reduction of CE; Second, the impact of DT on CE varies across regions, industries, and firm characteristics; Third, the positive effect of DT on CE is driven by mechanisms such as technological advancement, innovation promotion, resource optimization, and improved output efficiency. These results provide both theoretical insights and empirical evidence supporting the role of DT in fostering green, low-carbon enterprise development. © The Author(s) 2025.