Impact of global supply chain pressures on energy demand and stability: The role of global sustainability initiatives

Global supply chain pressures (GSCP) have become a major challenge for multinational enterprises (MNEs), influencing firm-level operational decisions, including evolving energy demand patterns. This paper investigates the impact of global supply chain pressures on energy consumption in Chinese MNEs from 2013 to 2022. Results from Double-Selection Least Absolute Shrinkage and Selection Operator (LASSO) linear regression indicate that GSCP increases the energy demand of Chinese MNEs. One possible explanation is that GSCP undermines production stability and operational efficiency, prompting firms to intensify production, extend operating hours, and adopt additional shifts to meet volatile demand conditions. Furthermore, global shocks (i.e., US-China Trade War and COVID-19) and global green initiatives (i.e., Montreal Protocol–Kigali Amendment, the EU Innovation Fund, and the Extractive Industries Transparency Initiative) significantly moderate the relationship between GSCP and energy demand. The heterogeneity analysis exhibits that the GSCP impact is most pronounced among state-owned MNEs, firms with substantial overseas investment experience, and enterprises exhibiting lower degrees of internationalisation. This study contributes new empirical and theoretical insights into how global supply chain disruptions affect corporate energy demand and shape the strategic responses of Chinese MNEs.