Supply Chain Low-Carbon Awareness and Carbon Reduction: Micro-Evidence from China

Achieving China’s green transition and its carbon peak and carbon neutrality goals requires joint efforts in low-carbon transformation across supply chain enterprises. This study constructs a supply chain low-carbon awareness (LCA) index using text analysis and examines, from a micro-perspective, the relationship between supply chain low-carbon awareness, corporate carbon emissions, and low-carbon behaviors. The results show that: (1) LCA significantly improves carbon reduction performance, especially in firms with higher supply chain concentrations, non-state ownership, and lower energy intensity. (2) LCA drives the adoption of three distinct mitigation strategies: source control, end-of-pipe treatment, and efficiency improvements. Specifically, downstream LCA is more effective in promoting environmentally beneficial products, circular economy practices, and waste reduction, while upstream LCA is more effective at advancing energy conservation and green office initiatives. (3) By encouraging proactive emission reduction strategies, LCA effectively lowers carbon intensity and enhances firm value. The findings provide micro-level evidence for understanding supply chain low-carbon synergy in China. The study contributes to the theory of supply chain low-carbon synergy and offers insights for promoting corporate low-carbon transition practices.