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

Emilia Herman (), Petru Oneț () and Iulian-Teodor Popa ()
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Emilia Herman: George Emil Palade University of Medicine, Pharmacy, Science, and Technology of Târgu Mureș, Romania
Petru Oneț: George Emil Palade University of Medicine, Pharmacy, Science, and Technology of Târgu Mureș, Romania
Iulian-Teodor Popa: Materom SRL, Cristești, Romania

Acta Marisiensis. Series Oeconomica, 2025, vol. 1, 73-88

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.

Keywords: digitalization; DESI; sustainability; ESG performance. (search for similar items in EconPapers)
JEL-codes: O33 Q01 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:pmu:oecono:v:1:y:2025:p:73-88

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