Low-carbon transitions are essential to sustainability in the face of climate change’s challenge to society. They are, however, costly and require support from government and business alike. This study examines how governance encourages business to engage with low-carbon transition. The authors investigate external governance or institutional environment, the internal governance of corporations, and possible interactions between them, in terms of corporate renewable energy (RE) investment and usage. Evidence shows that external governance is a pivotal determinant in firms making environmentally-conscious decisions in both supply and demand terms, while board characteristics, reflecting internal governance, wield considerable influence over business RE adoption. While an economy’s legal origin may substitute for internal governance factors in encouraging RE adoption by businesses, national governance complements it.