The potential of information systems (IS) to enable environmental sustainability necessitates an understanding of how organisations can realise this potential. In this study, building on the absorptive capacity theory and following a multi‐disciplinary and multi‐method approach, we propose that developing IS‐environmental absorptive capacity is a significant mechanism to deliver IS‐enabled change that addresses environmental issues. We commenced with a literature review and exploratory interviews to define the IS‐environmental absorptive capacity construct. We then developed a model that proposes that sustainable IS triggers, knowledge exposure and prior experience influence IS‐environmental absorptive capacity, which in turn contributes to the level of environmentally sustainable IS assimilation as well as to the cost saving, operational performance and reputation of organisations. The model was first tested through an international survey of 148 senior IS managers. The findings support our model regarding the antecedents and value of IS‐environmental absorptive capacity. A follow‐up case study corroborated the survey results and provided additional insights into the nature and causes of IS‐environmental absorptive capacity and its value. This study, in addition to presenting empirical evidence, defines and operationalises the IS‐environmental absorptive capacity construct in a theoretically and operationally meaningful way. © 2016 Blackwell Publishing Ltd