Do Supply Chain Management, ESG Sustainability Practices, and ICT Have an Impact on Environmental Sustainability?

Can supply chain strategies, ESG practices, and digital innovations be the game-changers the planet needs for a sustainable future? Motivated by this question, this study investigates the drivers of CO2 emissions, focusing on supply chain management (GSC), ESG sustainability practices, and Information and Communication Technology (ICT) in China from 2002Q4 to 2024Q4. Utilizing a series of wavelet tools—including wavelet coherence (WTC), partial wavelet coherence (PWC), and multiple wavelet coherence (MWC)—the study uncovers associations across time and frequency domains. To the best of the authors’ knowledge, this is the first study to examine these dynamics within the Chinese context using advanced wavelet techniques. The WTC results reveal that GSC, ICT, and patents are positively associated with CO2 emissions, particularly during 2008–2016 and 2018–2024, while ESG practices reduced emissions before 2016 but became positively linked to emissions afterward. MWC and PWC analyses confirm that these drivers influence CO2 within 1–4-year bands, while wavelet Granger causality tests indicate weak short-term but strong medium- to long-term causal relationships among ESG, GSC, PAT, ICT, and CO2 emissions. Based on these results, policy recommendations are formulated.