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2025

The Impact of Digitalization on ESG Performance: Empirical Evidence from European Union Countries

Author(s):
Emilia Herman, Petru Oneț, Iulian-Teodor Popa

Abstract:
The aim of this paper is to examine the relationship between digitalization—measured by the Digital Economy and Society Index—and sustainability, captured through a macro-level composite ESG index, across EU member states. Results show a clear gap: digitalization is progressing more rapidly than sustainability. Nordic countries consistently lead in both domains, whereas Eastern countries tend to lag behind. Regression analyses indicate that digitalization has a positive and statistically significant impact on overall ESG performance, with particularly strong effects on the environmental (E) and social (S) dimensions. In contrast, its impact on governance (G) is not statistically significant, suggesting that digitalization alone is insufficient to improve governance outcomes without complementary institutional reforms.

DOI: https://doi.org/10.62838/amso-2025-0007

Pages: 73-88

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