Eliza Ciobanu
This study examines the role of Digital Twin technologies in advancing Environmental, Social, and Governance performance within multinational corporations. Grounded in socio-technical systems theory and stakeholder theory, the research investigates how digital twins facilitate the integration of organizational capabilities with external accountability mechanisms. A multi-method research design is employed, comprising in-depth case studies, capital market event analysis, and machine learning-assisted regression to capture both qualitative and empirical insights. Case evidence from Siemens, Unilever, Tesla, and BP reveals that DT adoption is associated with measurable ESG gains, including reduced emissions, improved safety, enhanced supplier compliance, and accelerated reporting cycles. Event study findings show statistically significant abnormal returns following ESG-oriented DT announcements, while regression analysis confirms a positive association between DT adoption and ESG performance. Governance structures are explored as potential moderators of this relationship. The findings underscore DTs as strategic enablers of ESG value creation, beyond their technical utility. By enhancing transparency, auditability, and stakeholder trust, DTs contribute to both internal transformation and external legitimacy. This research advances the discourse on ESG digitalization and offers actionable implications for corporate leaders and policymakers seeking to foster sustainable, technology-driven governance in complex global value chains. However, because the quantitative component relies on cross-sectional data, the relationships identified should be interpreted as associations rather than definitive causal effects.