Abstract

By aiming at multidimensional environmental sustainability, international firms can venture into digital adaptation for better environmental quality. This study acquired data from Europe, Australia, and the United States of America for five years (2018–2023), comprising 2606 international firms. Robust machine learning panel data analysis uncovered the significant role of digital transformation on environmental sustainability impacting societies. Digital transformation is estimated using capital expenditures, research and development expenses, and cybersecurity policies that encompass technological investments, strategic readiness, and digital governance. The regression outcomes reveal wholistic understanding regarding the role of digital initiatives in environmental sustainability while machine learning provides relative importance of policy options. Both methods address strategic integration and tension between economic decisions and sustainable goals. This study highlighted the importance of digitalization and sustainable development in the context of business internationalization that provides actionable insights into business and policy management of global business sustainability while enhancing environmental quality.