Exploring Macroeconomic Factors and Sustainability Practices in the Technology Sector: A Global Perspective

Abstract

This study explores sustainability practices within the technology sector, focusing on how macroeconomic factors and corporate sustainability practices affect renewable energy consumption. The dependent variable is renewable energy consumption, while the independent variables include macroeconomic factors (foreign direct investment, GDP growth, and inflation) and sustainability practices (energy commitment, environmental teams, resource use score, ESG score, carbon emission performance, and board oversight of climate change risks). The results indicate that energy commitment, resource use score, and carbon emission performance positively and significantly influence renewable energy consumption. Conversely, the ESG score negatively affects renewable energy consumption. Although carbon emission performance has been widely studied in various industries, there is limited empirical research on its impact within the technology sector. This research contributes to the existing literature in several ways. It bridges this gap by investigating the effect of macroeconomic factors on renewable energy consumption in the technology sector. Further, it explores the impact of several sustainability factors on renewable energy consumption.