The development of modern logistics systems requires state-of-the-art solutions for simultaneously achieving sustainable development goals and ambitious business targets. On this issue, the challenge of implementing digital technologies in social life, in particular in smart cities, deserves special attention. The diversified application of Industry 4.0 doctrine and digital shadow penetration to all fields of socioeconomic systems highlights the gaps in the design, control, and efficiency assessment of digital tools in the logistics of smart cities. Another challenge concerns the need to consider environmental, social, and governance (ESG) principles amid the deployment of harmonic digital tools within urban territories. All these issues require a complex methodological approach toward understanding the role of IT in the modern economy through an ESG prism. The article contains a contemporary literature review on the related topic and the conceptual framework of city logistics digitalization under ESG perspectives and constraints. The mathematical model proposed by the researchers enables a multidimensional design of digital solution applications within smart city logistics performance. The designed discrete stochastic model is eligible for scaling toward and the further development of variables other than the key ones mentioned above. The mathematical formalization of the proposed model considers the distribution of the limited budgeting of administrative branches within city logistics, highlighting the research relevance in connection with the ESG principles.