How Does Supply Chain Shareholding Affect Corporate Carbon Emission? Evidence from China

Corporate carbon reduction is essential for sustainable development, yet little is known about whether equity linkages within supply chains facilitate firms’ low-carbon transition. Using data on Chinese A-share listed firms from 2008 to 2022, this study examines the effect of supply chain shareholding, defined as equity ownership by suppliers and customers in a focal firm, on corporate carbon emission intensity. We find that supply chain shareholding significantly reduces corporate carbon emission intensity, and this result remains robust after a series of robustness and endogeneity tests. Mechanism analyses show that supply chain shareholding lowers carbon emission intensity by strengthening corporate green governance, promoting green innovation, and facilitating cleaner production. Further analyses indicate that this effect is more pronounced under stricter air quality requirements, in regions with stronger environmental regulation, and among heavily polluting industries. These findings highlight the role of supply chain governance in corporate carbon reduction and suggest that equity linkages within supply chains can support firms’ low-carbon transition.