Abstract
The accelerating convergence of digital transformation and ESG dimensions has created a new strategic frontier for firms seeking to enhance sustainability. This systematic review examines how digital tools drive and are shaped by ESG initiatives. Using the PRISMA model, 113 peer-reviewed papers were selected from Scopus and Web of Science up to September 2025. A structured content analysis was conducted, and a conceptual framework was developed to address two research questions: How does digital tool adoption affect ESG, and how does ESG influence digital tool adoption? Descriptive analysis reveals that the literature is highly fragmented across theoretical lenses, geographical contexts, and journals. Content findings highlight three main patterns: 89 papers examine how digital tools affect ESG, seven explore the reverse relationship, and seventeen investigate the digital-ESG interplay on firm outcomes. Overall, digital-ESG relationships are mutually reinforcing, generally enhancing organizational outcomes. An extended conceptual model is proposed, framing digital technologies and ESG as both enablers and outcomes, and illustrating their dynamic interplay. The review concludes that digitalization and ESG are not only interlinked but co-evolve: responsible digital transformation strengthens ESG performance, while ESG commitments drive digital innovation, thereby enhancing legitimacy, social value, and overall firm performance over time.