Digital transformation (DT) is reshaping how firms meet environmental, social, and governance (ESG) expectations. This meta-analysis pools 59 studies (2015–2025) covering 835,000 firm-year observations to quantify DT's ESG impact. Anchored in Resource-Based View, Stakeholder, and Dynamic Capabilities theories, the effects of ESG pillar and DT typologies are separated. DT raises ESG scores; among technologies, business-process digitization delivers the largest gains, followed by data-infrastructure upgrades, while AI adds value only where ethics and oversight are mature. Environmental metrics improve most consistently; social and governance benefits appear but hinge on firm capabilities and regulatory context. Subgroup and meta-regression tests show stronger DT–ESG links in manufacturing and service sectors and in post-2022 samples, suggesting curves and tightening standards. Results guide managers to sequence investments process first, analytics later and urge policymakers to link incentives to verifiable digital disclosures. Future work should extend evidence to under-studied regions and next-wave tools such as blockchain and digital twins.
Bindeeba et al. (Fri,) studied this question.
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