Corporate Green Commitment: Exploring international exposure and value chain decarbonization

As the transition to a low-carbon economy accelerates, firms are under increasing pressure to demonstrate meaningful commitments to decarbonization and circularity. Nonetheless, the influence of internationalization on corporate sustainability initiatives remains mainly unexamined and somewhat unclear. This paper delves into how the varied international exposure of firms affects their dedication to decarbonization and the implementation of emission reduction strategies, with a special focus on Scope 3 and upstream emissions. By incorporating perspectives from sustainable innovation and international business, we investigate whether internationalization serves as a facilitator or a barrier to achieving carbon neutrality. We evaluate 117 Italian-listed companies that engage in sustainability reporting and assess how different internationalization modes-including ownership structures, market diversification, and managerial diversity-influence their sustainability commitments. Our results indicate that while a greater degree of internationalization (DOI) is positively associated with sustainability disclosures, ownership internationalization alone does not guarantee enhanced environmental responsibility. Furthermore, we differentiate between declared commitments to decarbonization and actual reductions in emissions, revealing potential discrepancies between corporate promises and real sustainability results. These findings enhance the understanding of how internationalization, circularity, and systemic innovation converge in the journey toward net zero, providing theoretical frameworks and managerial insights for companies navigating the complexities of global sustainability.