According to Accenture[1], “companies that integrate digital and sustainable transformations into their operations and value chains are 2.5 times more likely to be among tomorrow’s best performing businesses than those who don’t.” Accenture suggested that enacting business models driven by sustainability and enabled by technology is a possible way of executing ESGDX.

According to WEF[2], successful business leaders will seize a new post-COVID 19 pandemic opportunity by expanding their competitive advantage and delivering long-term value by deepening the integration of ESG/sustainable practices across their business and value chain and digital transformation. “Effective leaders will need to integrate ESG/sustainability considerations within their core business strategies to determine where new value exists, which business models will capture it, and which digital and data-driven technologies will enable them to meet their objectives.”

According to Schneider Electric[3], “sustainability and digital transformation benefits go hand-in-hand through the assimilation of ESG/sustainability and digital transformation:” New data generated through digital transformation and utilization of the data result in creation of new processes that drive higher efficiency, agility, productivity, circularity, and sustainability operations.

Digital transformation is the adoption and integration of digital technologies to transform all areas of business functions: fundamental change of an organization’s business operation; cultural change of an organization’s way of working; transformation of customer experience etc. Technology, data, and organizational change capability are the core elements of digital transformation, and they must function well together.

The essential part of digital transformation is leveraging data and digital capabilities in an innovative way to reshape customer value propositions, to transform operating models for greater customer interaction through the efficiency and productivity gains within an organization and across the supply/value chain, to accelerate product and service innovation, and to provide new ways of monetization.

ESGDX requires a strategic development of business model[4]  for profitably sustainable business practice. The strategic development of the business model should consider strategic purposes, industry context, competitive pressures, customer expectations, and core competencies. By Integrating ESG/sustainability into digital business model (Sustainable Digital Business Model (SDBM)), a company can generate revenue streams, achieve cost savings, reduce business and ESG/sustainability risks, improve sustainable resource use, increase business resilience, gain customer trust, and expand market opportunities. Thus, SDBM for embedding ESG/sustainability considerations into a digital business model can serve as a growth engine by improving a company’s operations/products/services and by creating new market opportunities/revenue streams through the orchestration, optimization and dematerialization of resources and assets.