The ESG-digital nexus: Integrating sustainability imperatives with digital transformation in Asian firms

Abstract

Asian firms increasingly face a dual strategic requirement: they must accelerate digital transformation while meeting rising environmental, social and governance (ESG) expectations. This paper develops the ESG-digital nexus as a strategic management framework explaining how digital capabilities can strengthen ESG performance and how ESG objectives can discipline digital investment toward long-term value creation. Using an integrative conceptual synthesis informed by the resource-based view, dynamic capabilities theory and selected Asian sustainability contexts, the paper reframes digital transformation and ESG integration as mutually reinforcing organisational capabilities rather than separate compliance or technology agendas. The framework identifies three mechanisms: digitally enabled ESG measurement, behavioural embedding through digital institutional behavioural design and stakeholder-facing transparency. The illustrative evidence and maturity matrix suggest that firms with high digital and ESG maturity are better positioned to convert sustainability commitments into operational routines, financial resilience and reputational advantage. The paper contributes a practical quadrant model for diagnosing organisational maturity and for guiding staged managerial action in Asian firms operating under tightening sustainability reporting regimes.