Digital transformation refers to highly thought-out social, manufacturing, and organizational transitions driven by digital revolutions and emerging technologies. On the other hand, energy is a critical pillar of the economic growth of the country. Meanwhile, global interest in environmental, social, and governance (ESG) investment is growing. The conventional investment paradigm is being phased out in favor of investments that prioritize environmental, social, and corporate responsibility. The energy sector is one of the most significantly affected. Presently, the field of digital transformation is limited in its analysis about the sustainability factors and is still controversial, especially in the energy business. This paper identifies an in-corporation factor in Industry 4.0, taking into account the effect on ESG. The research papers and the World Economic Forum reports were investigated and identified the correlation factor using machine learning to analyze their contents. We spotlighted the documents relevant to the energy industry and sustainable development. To quantify the model, confirmatory factor analysis (CFA) is proposed to generate a valid model, followed by path analysis with latent variables to evaluate the structural equation modeling (SEM). The result provides the conceptual model with impact factors and their correlations. The goodness of fit value is acceptable for the agreed-upon condition, as well as a descriptive that incorporates Industry 4.0 and ESG in terms of business, industry, and ESG in relation to the energy sector’s key issues.

Digital transformation has emerged as a key driver of business innovation and growth in the 21st century. As organizations increasingly rely on digital technologies to operate and interact with customers, digital transformation has become an essential strategy for remaining competitive in today’s rapidly evolving business landscape. Simultaneously, the relevance of environmental, social, and governance (ESG) issues has increased in the context of consumers, investors, and regulators, as the negative consequences of business activities on the natural environment and society become increasingly evident. In this research article, we examine the relationship between ESG and the triple transformation of business, people, and technology, as well as how organizations can use digital technologies to enhance their ESG performance. Our aim is to identify the principal drivers and mechanisms that shape ESG performance in the context of triple transformation and to investigate the trade-offs and synergies between different ESG dimensions. We used a mixed-methods approach combining fuzzy-set qualitative comparative analysis (fsQCA) and structural equation modeling (SEM) to examine the implications of triple transformation on ESG in the energy sector. The results showed that triple transformation has positive impacts on ESG performance, depending on the specific context and the interaction between different drivers and mechanisms. We suggest that energy companies that are able to effectively navigate the challenges and opportunities of triple transformation are likely to outperform their peers in terms of ESG performance. Our study contributes to the literature on ESG in the energy sector by providing a nuanced and dynamic view of the relationships between triple transformation and ESG performance.

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