Carbon reduction initiatives impact on the employee relocation

Climate change is a global crisis, with industrial carbon emissions contributing significantly to its escalation. In response, China is implementing carbon reduction measures as part of its transition to a low-carbon socioeconomic system. Within this framework, the Chinese government has initiated the relocation of chemical companies situated near the Yangtze River to inland industrial parks. Despite the importance of this policy, the relationship between carbon reduction and employee relocation has received limited scholarly attention. Accordingly, the present study makes a meaningful contribution by addressing existing gaps in academic literature and policy. Between March and July 2024, a survey was conducted using structured questionnaires completed by 503 employees from chemical companies in Hubei Province. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM), the study examined key factors influencing employees’ willingness to relocate namely, family (including cultural norms, stressors, and spouse considerations), financial (organizational support, income, and relocation costs), and residency (new environment, community attachment, and pre-relocation knowledge) while accounting for the moderating role of carbon reduction initiatives. The results indicate a strong correlation, with an R2 value of 0.893, demonstrating the model’s high predictive capability. The adjusted R2 of 0.892 further confirms the model’s robustness and validity. In conclusion, the findings suggest that carbon reduction initiatives significantly moderate the relationships between employee relocation and the examined family, financial, and residency factors. The implications of this study are both theoretical and practical. It offers context-specific insights into how relocation decisions intersect with environmental sustainability goals and provides actionable guidance for organizations and policymakers on aligning employee relocation strategies with carbon reduction initiatives thus promoting environmental responsibility without compromising employee well-being.