Regional determinants of low carbon transition in Russian companies: the impact of human capital and digitalization on corporate carbon management practices

Abstract

Objective. The purpose of this article is to identify the regional determinants of the low carbon transition in Russian companies. These determinants are related to human capital and digital technologies development in local economic ecosystems. Methods. The study relies on linear regression methods and examines the impact of education, wages, the use of the broadband Internet, cloud technologies and ERP (Enterprise Resource Planning) systems in Russian regions on companies’ motivation to manage their carbon dioxide emissions. Results. The results show that human capital has an ambiguous effect on the behavior of companies that support the low carbon transition. On the contrary, the digitalization of regions is significantly and positively associated with the implementation of environmental and energy management practices in Russian companies, especially among service companies. Conclusion. Low carbon transition is becoming an essential component of the national development strategy, as climate resilience issues directly affect the economic performance of production systems. The study considers two types of factors that influence the implementation of management practices for the low-carbon transition: these are human capital and the digitalization of regions.