Practices, Capabilities, and Strategies For Achieving Net-Zero Economy: An Exploratory Study in The Manufacturing Sector

The increasing demand for sustainable industrial practices necessitates leveraging practices, capabilities, and strategies to achieve a net-zero economy (NZE). These practices and capabilities can have a significant potential for reaching strategies aiming at reducing greenhouse gas emissions, improving energy efficiency, optimizing resources and operational processes, and promoting waste management. In this regard, this paper investigates the impact of these key substances in one conceptual model to test their potential in achieving the NZE. Using structural equation modeling (SEM), this research explores the causal links in the conceptual model and analyzes data collected from manufacturing firms to test the model’s hypotheses. Key results indicate that the integration of practices and capabilities can lead to a reduction in greenhouse gas (GHG) emissions by 44% and the optimization of energy by 9%, resources by 14%, and operations by 13%. These main strategies are facilitated by practices and capabilities that constitute the key elements to achieve NZE as a higher goal of sustainability. This study contributes to the understanding of the needed foundations for achieving a globally sustained economy. By presenting a robust model grounded on empirical evidence, this research provides valuable insights for industry managers and researchers seeking to leverage the needed practices, capabilities, and strategies to enhance environmental engagement within a global economic context.