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Digitalisation, Governance, and Innovation for Sustainable and Climate-Resilient Societies

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A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: 30 November 2026 | Viewed by 6156

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Special Issue Editors

Prof. Dr. Oana-Ramona Lobonț

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Guest Editor

Finance, Business Information Systems and Modelling Department, Faculty of Economics and Business Administration, West University of Timisoara, 300223 Timișoara, Romania
Interests: public sector governance; environmental and energy economics; empirical finance; sustainable public policy
Special Issues, Collections and Topics in MDPI journals

Prof. Dr. Ana-Cristina Nicolescu

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Guest Editor

Finance, Business Information Systems and Modelling Department, Faculty of Economics and Business Administration, West University of Timisoara, 300223 Timișoara, Romania
Interests: public policy; entrepreneurial activities; supply chain efficiency; financial communication; gender equality; firm value; corporate finance

Special Issue Information

Dear Colleagues,

Scope and Rationale

Societies worldwide are facing increasing pressures to achieve sustainable development, adapt to climate risks, modernise governance structures, and leverage digitalisation and innovation capacity to enhance resilience and social well-being. At the same time, accelerating digitalisation is reshaping economic systems, public governance, and societal interactions, creating new opportunities—as well as disparities—for sustainable and climate-resilient development. Global economies, therefore, confront the interconnected challenges of fostering economic growth, ensuring social and territorial inclusion, reducing environmental degradation, and strengthening adaptive capacity to climate change.

While digital transformation provides powerful tools to boost productivity, transparency, and adaptive capacity, its effectiveness depends fundamentally on the quality of governance, institutional integrity, innovation systems, and the ability of public and private actors to implement coherent sustainability strategies.

This Special Issue investigates the interactions between digitalisation, governance quality, and innovation capacity, aiming to foster economic growth, support sustainable development, strengthen climate and social resilience, and address emerging societal challenges. By integrating multiple scales of analysis (national, regional, local) and considering both economic and societal dimensions, the issue places digitalisation within a broader framework of inclusive, sustainable, and climate-adaptive development.

By examining these linkages across countries, regions, sectors, and governance levels, the Special Issue aims to identify the conditions under which digital and institutional transformations contribute to environmental sustainability, inclusive societal outcomes, economic development, and resilience to climate change. The overall goal is to generate robust evidence that informs governance reforms, digital strategies, climate adaptation policies, and innovation-driven pathways toward more resilient and equitable societies.

Topics of Interest

The Special Issue encourages empirical, data-driven contributions and comparative analyses of the interactions among digital transformation, governance quality, innovation capacity, economic growth, sustainable development, and climate resilience. Topics include, but are not limited to the following:

Empirical and comparative studies examining how digitalisation, governance quality, and innovation capacity influence social resilience, equity, and inclusive development outcomes across communities and societies;
Empirical studies assessing the impact of digital transformation on economic growth, sustainable development, firm-level performance, and climate resilience across countries, regions, and sectors;
Quantitative and mixed-method analyses of governance quality, including transparency, accountability, regulatory effectiveness, and institutional integrity, as a determinant of sustainable development and digital and green innovation outcomes;
Analyses of national, regional, and local governance structures and their interactions in shaping effective digital–green transition policies, regulatory frameworks, and sustainable development strategies;
Investigations of innovation systems and firm-level innovation capacity, including R&D investment, technological adoption, and diffusion of low-carbon and climate-adaptive technologies;
Integrated analyses examining the joint mechanisms through which digitalisation and governance quality shape climate-resilient and/or sustainable development outcomes;
Studies on environmental sustainability performance, environmental management systems, ESG-related corporate practices, and firm-level environmental efficiency;
Cross-country, cross-sector, and longitudinal studies examining policy coherence and the role of governance quality in facilitating or constraining digital–green transitions;
Comparative and cross-country empirical studies examining how digital transformation, governance structures, innovation capacity, and fiscal mechanisms interact to drive economic growth, sustainable development, and climate resilience;
Sector-specific analyses of digital and sustainable transitions (energy, transport, agriculture, manufacturing, services, smart cities), identifying barriers, opportunities, and best practices;
Firm-level and micro-econometric studies, including corporate digitalisation, sustainability reporting, environmental innovation, and climate-resilience strategies;
Studies evaluating policy and institutional innovations, such as digital governance reforms, regulatory frameworks, and green fiscal policies, and their impact on climate-resilient and sustainable economic outcomes;
Methodologically innovative contributions employing panel econometrics, dynamic modelling, quantile regressions, fsQCA, mediation, moderation and causal analysis, large-scale data analytics (big data, AI, machine learning), novel metrics, digital sustainability indicators, micro- and macro-level evaluation methods, and causal inference techniques to analyse complex, heterogeneous, and non-linear relationships among digital transformation, governance quality, innovation capacity, and fiscal mechanisms, as well as their impact and effectiveness on economic growth, sustainable development, and climate resilience outcomes.

By integrating advanced analytical methods, including econometric and statistical methods, comparative and configurational methods, machine-learning and AI-based methods, mediation, moderation, and causal inference, as well as multi-level, mixed, and network approaches, this issue aims to capture the heterogeneous, context-dependent, and non-linear dynamics that shape global pathways toward economic growth, sustainable development, climate resilience, and environmentally responsible corporate strategies, providing robust evidence to inform policy, governance, and investment strategies.

Prof. Dr. Oana-Ramona Lobonț
Prof. Dr. Ana-Cristina Nicolescu
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

digitalisation
governance quality
innovation capacity
sustainable development
economic growth
climate and societal resilience

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Published Papers (6 papers)

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Research

34 pages, 1398 KB

Open AccessArticle

Digital Government and SDG 9 in the European Union: Institutional Saturation, Digital Co-Investment, and the EU15/EU13 Divide

by Oksana Liashenko, Oleksandr Dluhopolskyi, Olena Mykhailovska, Dariusz Woźniak, Sylwia Skrzypek-Ahmed and Ihor Ruzhytskyi

Sustainability 2026, 18(8), 3921; https://doi.org/10.3390/su18083921 - 15 Apr 2026

Viewed by 322

Abstract

Digital government is widely regarded as a catalyst for sustainable development, yet the mechanisms by which e-government adoption translates into progress on the SDGs remain poorly understood, particularly in high-income contexts where governance is already mature. This study addresses that gap using a balanced panel of all 27 EU member states over 2015–2023. Applying two-way fixed-effects estimation with formal Baron–Kenny mediation and country-block bootstrap inference, we identify three findings that collectively reframe the relationship between digital government and sustainable development in the European context. First, the widely assumed governance reform pathway is not empirically supported in the EU27: e-government adoption is not associated with measurable improvement in institutional quality, consistent with structural saturation rather than policy failure. Second, the benefits of digital government are unevenly distributed across the EU: old member states (EU15) exhibit significant positive effects on SDG 9: Innovation and Infrastructure, whereas new member states (EU13) do not, challenging the assumption that digital strategies yield symmetric returns across the Union. Third, and most importantly, the EU15 effect appears to be fully channelled through household internet access, consistent with a digital co-investment mechanism in which e-government uptake and broadband infrastructure co-evolve as expressions of a shared national digital transformation strategy. These findings inform the policy debate: the question for EU15 is not whether to invest in e-government, but how to sustain the joint infrastructure investment that makes it effective; for EU13, the priority is to establish the digital and institutional foundations that enable the mechanism to be activated. Full article

(This article belongs to the Special Issue Digitalisation, Governance, and Innovation for Sustainable and Climate-Resilient Societies)

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41 pages, 1176 KB

Open AccessArticle

Pilot Zones for Innovative Application of Artificial Intelligence and Enterprise Innovation

by Kai Zhao, Wenhui Wang and Xiaohe Chen

Sustainability 2026, 18(8), 3833; https://doi.org/10.3390/su18083833 - 13 Apr 2026

Viewed by 502

Abstract

Based on the panel data of Chinese A-share listed companies from 2012 to 2023, this paper takes the pilot policy of Pilot Zones for Innovative Application of Artificial Intelligence as an exogenous shock, and adopts a multi-period difference-in-differences (DID) model to systematically examine the causal effect of this policy on the quality and efficiency of enterprise innovation and its mechanism of action. It is found that the Pilot Zones for Innovative Application of Artificial Intelligence significantly improve enterprises’ innovation quality and efficiency. Mechanism tests show that the pilot policy enhances enterprise innovation quality and efficiency by driving digital transformation, eliminating information barriers, and upgrading supply chain collaboration. Heterogeneity analysis confirms that the policy dividends are more fully released in non-state-owned enterprises, high-tech enterprises, labor-intensive and technology-intensive enterprises, as well as enterprises located in cities with a higher degree of marketization. In addition, the life-cycle heterogeneity analysis shows that the pilot policy exerts the strongest and most comprehensive innovation-promoting effect on maturity-stage firms, mainly improves innovation efficiency for decline-stage firms, and does not produce significant effects for growth-stage firms. The findings offer practical insights for policymakers and local governments in refining AI-related innovation policies and pilot-zone implementation, and for enterprise managers in strategically adopting AI to strengthen innovation capability and long-term sustainable development. Full article

(This article belongs to the Special Issue Digitalisation, Governance, and Innovation for Sustainable and Climate-Resilient Societies)

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28 pages, 842 KB

Open AccessArticle

From Digital Policies to Sustainable Futures: How Far Has the EU Progressed?

by Oana-Ramona Lobonț, Cristina Criste, Larisa Mistrean, Lucian Florin Spulbăr and Florina Stanciu (Trip)

Sustainability 2026, 18(6), 2727; https://doi.org/10.3390/su18062727 - 11 Mar 2026

Viewed by 351

Abstract

This study investigated the relationship between digital governance and sustainable development across the European Union (EU-27) during the period 2015–2023. Although digital transformation has become a central policy priority, empirical evidence on how e-government adoption contributes to sustainability performance remains limited. Using panel data from Eurostat and the UN Sustainable Development Solutions Network, the analysis employed advanced econometric techniques, including Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Method of Moments Quantile Regression (MMQR), to explore both long-run relationships and heterogeneous effects across countries. The model incorporates key indicators such as the percentage of individuals using e-government services, Gross Domestic Product (GDP) per capita growth, and Research and Development (R&D) expenditure, capturing, respectively, digital governance adoption, innovation potential, and economic capacity, as essential drivers of sustainable development. Results indicate a strong and statistically significant positive association between digital governance adoption and sustainable development outcomes. The quantile regression analysis reveals that this effect is more pronounced in countries with higher innovation intensity and stronger economic capacity, suggesting that digital governance amplifies sustainability benefits in countries with more advanced institutional and technological infrastructures. Robustness checks confirm the stability of the findings across multiple estimation techniques. The results underscore the need for inclusive and innovation-driven digital strategies to ensure that the benefits of digital governance are equitably distributed, ultimately enhancing the EU’s progress towards the Sustainable Development Goals. Full article

(This article belongs to the Special Issue Digitalisation, Governance, and Innovation for Sustainable and Climate-Resilient Societies)

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29 pages, 8586 KB

Open AccessArticle

Modelling Corporate Transition Dynamics Using Markov Chains, Hidden Markov Models and CatBoost: Evidence from High-Emission Sectors

by Tamara Maria Nae, Mihaela Gruiescu, Elena Șusnea, Eduard Mihai Manta, Ioana Bîrlan, Alexandra-Carmen Bran and Florin Stelian Grosu

Sustainability 2026, 18(5), 2351; https://doi.org/10.3390/su18052351 - 28 Feb 2026

Viewed by 392

Abstract

This study investigates how firms in high-emission sectors progress along the low-carbon transition by analysing the joint dynamics of Management Quality (MQ) and Carbon Performance (CP) using probabilistic modelling and explainable machine-learning methods. Digitalisation is conceptualised as the increasing use of data-driven and algorithmic tools in corporate governance, sustainability monitoring, and regulatory oversight, enabling a more granular assessment of corporate transition pathways across multiple time horizons. Using annual Transition Pathway Initiative data for 175 firms over the period 2018–2025, we apply discrete-time Markov chains to capture state persistence and directional mobility in MQ and CP, while Hidden Markov Models uncover latent performance regimes shaping firms’ transition trajectories across three decarbonisation horizons (2028, 2035, and 2050). To enhance interpretability and policy relevance, CatBoost-based feature importance analysis identifies governance, emissions-related, and sector-specific drivers of transitions between states. The results indicate a steady and highly persistent improvement in Management Quality, reflecting cumulative consolidation of governance structures, while Carbon Performance evolves more slowly and heterogeneously, with only moderate convergence emerging toward the 2050 horizon. Latent-regime estimates reveal a gradual shift from volatile, low-performance pathways toward more stable transition regimes over time. From a policy perspective, the findings suggest that governance improvements alone are insufficient to ensure timely emission reductions, highlighting the need for digitally enabled, sector-specific regulatory incentives and enforcement mechanisms targeting realised Carbon Performance. Full article

(This article belongs to the Special Issue Digitalisation, Governance, and Innovation for Sustainable and Climate-Resilient Societies)

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38 pages, 2111 KB

Open AccessArticle

Detecting Greenwashing in ESG Disclosure: An NLP-Based Analysis of Central and Eastern European Firms

by Adriana AnaMaria Davidescu, Eduard Mihai Manta, Ioana Bîrlan, Alexandra-Mădălina Miler and Sorin-Cristian Niță

Sustainability 2026, 18(3), 1486; https://doi.org/10.3390/su18031486 - 2 Feb 2026

Viewed by 2409

Abstract

The rapid expansion of corporate sustainability reporting has increased transparency requirements while raising concerns about greenwashing driven by selective, narrative-based disclosure. This study assesses the credibility of Environmental, Social, and Governance (ESG) communication by comparing corporate sustainability reports with external media coverage for a sample of 204 large firms operating in Central and Eastern Europe in 2023. Using natural language processing techniques, the analysis constructs a Greenwashing Severity Index (GSI) that captures discrepancies between firms’ ESG self-representation and external public narratives. The index combines ESG-specific focus measures, sentiment analysis, TF–IDF-based term weighting, and topic modeling to quantify imbalances in ESG communication. Results indicate moderate but widespread greenwashing across countries, industries, and firm sizes, with substantial heterogeneity linked to differences in regulatory maturity and stakeholder scrutiny. Higher alignment between corporate disclosures and external narratives is observed among larger firms and in sectors subject to stronger public accountability, while finance, aviation, and online commerce exhibit higher greenwashing severity. A propensity score matching analysis further shows that firms with imbalanced emphasis across ESG dimensions display significantly higher GSI values, consistent with strategic disclosure behavior rather than substantive sustainability engagement. Overall, the findings demonstrate that transparency alone is insufficient to ensure credible ESG communication, highlighting the need for EU sustainability governance to move beyond disclosure-based compliance toward digitalized, data-driven monitoring frameworks that systematically integrate external information sources to curb strategic ESG misrepresentation and enhance corporate accountability under evolving regulatory regimes. Full article

(This article belongs to the Special Issue Digitalisation, Governance, and Innovation for Sustainable and Climate-Resilient Societies)

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44 pages, 4883 KB

Open AccessArticle

Mapping the Role of Artificial Intelligence and Machine Learning in Advancing Sustainable Banking

by Alina Georgiana Manta, Claudia Gherțescu, Roxana Maria Bădîrcea, Liviu Florin Manta, Jenica Popescu and Mihail Olaru

Sustainability 2026, 18(2), 618; https://doi.org/10.3390/su18020618 - 7 Jan 2026

Cited by 1 | Viewed by 1037

Abstract

The convergence of artificial intelligence (AI), machine learning (ML), blockchain, and big data analytics is transforming the governance, sustainability, and resilience of modern banking ecosystems. This study provides a multivariate bibliometric analysis using Principal Component Analysis (PCA) of research indexed in Scopus and Web of Science to explore how decentralized digital infrastructures and AI-driven analytical capabilities contribute to sustainable financial development, transparent governance, and climate-resilient digital societies. Findings indicate a rapid increase in interdisciplinary work integrating Distributed Ledger Technology (DLT) with large-scale data processing, federated learning, privacy-preserving computation, and intelligent automation—tools that can enhance financial inclusion, regulatory integrity, and environmental risk management. Keyword network analyses reveal blockchain’s growing role in improving data provenance, security, and trust—key governance dimensions for sustainable and resilient financial systems—while AI/ML and big data analytics dominate research on predictive intelligence, ESG-related risk modeling, customer well-being analytics, and real-time decision support for sustainable finance. Comparative analyses show distinct emphases: Web of Science highlights decentralized architectures, consensus mechanisms, and smart contracts relevant to transparent financial governance, whereas Scopus emphasizes customer-centered analytics, natural language processing, and high-throughput data environments supporting inclusive and equitable financial services. Patterns of global collaboration demonstrate strong internationalization, with Europe, China, and the United States emerging as key hubs in shaping sustainable and digitally resilient banking infrastructures. By mapping intellectual, technological, and collaborative structures, this study clarifies how decentralized intelligence—enabled by the fusion of AI/ML, blockchain, and big data—supports secure, scalable, and sustainability-driven financial ecosystems. The results identify critical research pathways for strengthening financial governance, enhancing climate and social resilience, and advancing digital transformation, which contributes to more inclusive, equitable, and sustainable societies. Full article

(This article belongs to the Special Issue Digitalisation, Governance, and Innovation for Sustainable and Climate-Resilient Societies)

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