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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Emilia Herman & Petru Oneț & Iulian-Teodor Popa, 2025. "The Impact of Digitalization on ESG Performance: Empirical Evidence from European Union Countries," Acta Marisiensis. Series Oeconomica, "George Emil Palade" University of Medicine, Pharmacy, Sciences and Technology of Târgu-Mureș, România - Faculty of Economics and Law, vol. 1, pages 73-88, December.
    • Handle: RePEc:pmu:oecono:v:1:y:2025:p:73-88
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    References listed on IDEAS

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    1. Raihan, Asif, 2024. "A review of the potential opportunities and challenges of the digital economy for sustainability," Innovation and Green Development, Elsevier, vol. 3(4).
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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