Synergy or Struggle? A Literature Review on the Intersection of Digital Transformation and Sustainability

Abstract

As digital technologies continue to reshape industries globally, companies are increasingly adopting digital transformation to enhance their operations. This paper investigates the relationship between digital transformation efforts and their influence on sustainability initiatives and financial outcomes. Drawing on a diverse set of companies from different countries and sectors, the study analyzes how advancements in digital technologies are being leveraged to support sustainable business practices. Using data from financial reports and sustainability disclosures, the research employs various analytical methods to identify trends linking technology adoption with improved sustainability and economic performance. The results suggest that companies embracing both digital and sustainable practices tend to outperform in financial metrics, demonstrating the complementary nature of these strategies. The Prisma model was applied manually to ensure a comprehensive review of relevant studies and data sources, ensuring a rigorous analysis of the relationship between digital transformation and sustainability initiatives. This research provides valuable insights into the role of digital transformation in driving sustainable development across diverse industries worldwide. The study offers practical recommendations for businesses and policymakers, emphasizing the need for thoughtful investment in digital tools to foster long-term financial and environmental success.