Carbon neutrality: Operations management research opportunities

Abstract

Climate change, primarily driven by greenhouse gas emissions (GHGs), is a pressing environmental and societal concern. Carbon neutrality, or net zero, involves reducing carbon dioxide emissions, the most common GHG, and then balancing residual emissions through removing or offsetting. Particularly difficult challenges have emerged for firms seeking to reduce emissions from Scope 1 (internal operations) and Scope 3 (supply chain). Incremental changes are very unlikely to meet the objective of carbon neutrality. Synthesizing a framework that draws together both the means of achieving carbon neutrality and the scope of change helps to clarify opportunities for research by operations management scholars. Companies must assess and apply promising technologies, form new strategic relationships, and adopt novel practices while taking into account costs, risks, implications for stakeholders, and, most importantly, business sustainability. Research on carbon neutrality is encouraged to move beyond isolated discussions focused on specific tactics and embrace a more, though not fully, holistic examination. Research opportunities abound in both theoretical and empirical domains, such as exploring tradeoffs between different tactics, balancing portfolios, and investigating the strategic deployment of initiatives over time. As a research community, we are critically positioned to develop integrative insights at multiple levels, from individual processes to horizontal and vertical partnerships and ultimately to large-scale systemic realignment and change.