Digital transformation as enabler of sustainable development: a twin transition analysis

Abstract

The concept of the twin transition is based on two of the most crucial challenges of our time: digitalization and environmental sustainability. Digital transformation is key in enhancing business activities, as the adoption of digital technologies can positively impact economic growth and operational efficiency. However, the path to digitalization comes with many challenges, and the complexity of implementation and integration for companies could hinder the transition. Similarly, environmental sustainability has become a strategic priority in many Countries, and the adoption of sustainable practices not only helps reduce environmental impact, but it also opens up new market opportunities for companies. Yet, the transition to sustainable business models is tangled by many difficulties, often requiring the involvement of Governments and other stakeholders to facilitate progress. This paper seeks to explore innovative solutions and business models that support these intertwined transitions, and in particular it focuses on the role of digital technologies in the implementation of sustainable business models. The first chapter evaluates the current literature on the twin transition, and it is followed by a case study that offers a practical perspective on the matter. The insights provide a deeper understanding of the role of digitalization in the implementation of innovative and sustainable business models, contributing with valuable perspectives on the challenges and opportunities associated with these transitions.