Environmental strategy for sustainable development: Role of digital transformation in China's natural resource exploitation

In light of the rapid evolution of the electrical and electronic industry, coupled with the surge of digitalization and global energy transitions, the imperative for sustainability within various sectors has been accentuated. Rare Earth (RE) metals, pivotal in diverse primary sectors including engine production, aviation, and shipbuilding, are embedded with sustainability challenges such as waste generation and pollution despite their criticality. This research scrutinizes the influence of environmental strategy on the sustainable development of firms within the rare-earth metal sector, with a spotlight on China's substantial sector. Employing hierarchical regression and component-based structural modeling to navigate through causal complexities, the study explores the interplay between digital transformation and environmental sustainability, and their collective impact on sustainable development. Findings unveil a symbiotic relationship between digital transformation and environmental strategy in steering the sustainable development of firms within China's Rare Earth Metals (REMs) sector. The empirical data underscores the pivotal role of Environmental Strategy (ES) in bridging Digital Transformation (DT) and Sustainable Development (SD). The study advocates for a lucid and succinct environmental strategy, encapsulating a firm's dedication to environmental sustainability, encompassing pivotal facets such as environmental compliance, pollution mitigation, and resource conservation. Furthermore, the ES should prioritize measurable environmental targets, embedding specific objectives to mitigate environmental impacts, including the reduction of energy usage, greenhouse gas emissions, and water consumption.