The drivers of commitment to carbon neutrality: Impact on firm performance and supply chain management

Abstract

The global community is working to address climate change challenges by achieving carbon neutrality, a low-carbon, environmentally friendly model. Major companies worldwide have committed to achieving zero emissions targets, focusing on renewable energy sources like solar and wind farms and replacing fossil fuel-powered machinery and cars with more environmentally friendly models. This shift is seen as a driver to sustainability, contributing to the environment and society's wellbeing. Research aims to provide management and interested parties with actionable advice on navigating the transition to carbon neutrality. Companies must recognize external factors influencing the shift and take appropriate action to counter them. Companies must further recognize how the transitioning to carbon neutrality impacts their performance and supply chain management. They should also interact with the government to create legislation that facilitates the transition to carbon neutrality. This will help companies lead their teams through a smooth transition and contribute to a more sustainable future. This qualitative study examined the motivations behind becoming carbon neutral as well as the possible effects on supply chain management and company performance. Thirteen semi-structured interviews with individuals who had gone through the process of becoming carbon neutral were used to collect data. Cross-sector comparisons were made possible by the fact that participants came from four distinct sectors in Namibia: mining, financial services, academic institutions, and industry associations. A thematic analysis approach was employed to systematically analyse the qualitative data. A conceptual research framework outlining the process of transitioning to carbon neutrality was the study's final output. The study's similarities and differences with previous research on the factors influencing the shift to carbon neutrality, its effects on supply chain management and firm performance, and its implications for these areas were noted.