Value of blockchain for scope 3 carbon disclosure: The moderating role of data processing technologies

Abstract

Disclosing carbon emissions in Scope 3 is essential for mitigating pollution and the associated environmental damage, and blockchain can enhance the disclosure. However, the effect of blockchain on Scope 3 carbon disclosure remains unclear due to a lack of empirical evidence. This paper investigates the value of blockchain for Scope 3 carbon disclosure and examines whether this value can be strengthened by integrating data processing technologies, including artificial intelligence (AI), cloud computing, and big data analytics (BDA). Drawing upon the coordination theory, we posit that blockchain as a recording and tracing technology can improve the coordination among supply chain members on collecting carbon emissions data, thereby facilitating firms' Scope 3 carbon disclosure. Furthermore, data processing technologies enable efficient utilization and management of the collected data, potentially coordinating with blockchain to enhance Scope 3 carbon disclosure. We test these relationships using regression analysis based on a sample of 422 observations for Chinese listed firms during 2021 and 2022. The results show that blockchain adoption is positively associated with a firm's Scope 3 carbon disclosure. In addition, adopting each of the three data processing technologies—AI, cloud computing, and BDA—further strengthens the positive relationship. This study contributes to academic knowledge and evidence on blockchain and sustainable supply chain management with practical suggestions for managing carbon emissions at the supply chain level through the combined adoption of blockchain and data processing technologies.