<p>The digital economy serves as a vital catalyst in advancing the transition towards low-carbon initiatives and stands as a crucial route to accomplishing objectives related to both carbon peak and neutrality. An analysis, drawing on data from China’s A-share companies between 2007 and 2021, explores how the digital economy influences carbon performance metrics and its underlying processes. The research reveals several key findings: The digital economy not only curtails corporate carbon emissions but also heightens revenue generated per unit of carbon emission. This trend significantly boosts micro-enterprises’ carbon performance, with the validity of these findings upheld even after conducting various endogeneity and robustness assessments. The effect of the digital economy on enterprise carbon performance is not uniform. Notably, its positive influence is more pronounced in enterprises located in low-carbon pilot cities, state-owned, high-tech and heavily polluting companies. Mechanism analysis demonstrates that the digital economy enhances enterprise carbon performance chiefly by reducing energy consumption and refining the energy mix. These insights provide a more nuanced understanding of how the digital economy impacts carbon performance levels and offer strategic recommendations for leveraging the digital economy in managing corporate energy use.</p>