Digital Transformation and Sustainability Reporting: The Role of Technology in Enhancing Transparency

Abstract

The growing demand for corporate accountability in environmental, social, and governance (ESG) issues has positioned sustainability reporting as a vital tool for organizational transparency. Digital transformation, characterized by the integration of emerging technologies such as artificial intelligence (AI), blockchain, and big data analytics, has revolutionized the landscape of sustainability reporting. This paper explores how digital technologies enhance the transparency, accuracy, and effectiveness of sustainability disclosures. Using a qualitative research approach supported by recent empirical studies and corporate practices, the study investigates the role of digital tools in meeting stakeholders' expectations, improving regulatory compliance, and driving strategic decision-making. The findings suggest that digital transformation significantly elevates the credibility and usability of sustainability data but also presents challenges related to implementation costs, data integration, and technological capacity, especially in developing economies.