Harnessing Green Technology Innovation: Bridging Digital Transformation, Green Finance, and Sustainable Investment for SDG Acceleration
Keywords:
Green Finance; Sustainable Investment; Digital Transformation; Green Technology Innovation; Circular & Low-Carbon Economy; Inclusive SustainabilityAbstract
This study explores the synergistic interplay between digital transformation, green finance, and sustainable investment as foundational pillars driving progress toward the Sustainable Development Goals (SDGs), with a particular focus on the mediating role of green technology innovation. Utilizing a quantitative methodology through structural equation modeling (SEM), data from various sectors engaged in digital and green initiatives reveal that digital transformation enhances operational efficiency, optimizes resource utilization, and enables the integration of eco-friendly technologies, thereby accelerating the shift toward low-carbon and circular economies. Green finance emerges as a critical enabler by mobilizing capital through instruments such as green bonds, sustainability-linked loans, and climate-focused funds, while the integration of digital tools into financial systems termed green digital finance improves transparency and accountability in green capital allocation. Sustainable investment, guided by environmental, social, and governance (ESG) criteria, significantly contributes to environmental sustainability and social inclusion, especially when reinforced by digital and financial innovations. Central to these dynamics is green technology innovation, which acts as a strategic mediator by facilitating the development of renewable energy systems, energy-efficient infrastructure, and sustainable manufacturing processes, fostering cross-sector collaboration and scalable solutions. The findings underscore that innovation not only bridges digital, financial, and investment domains but also amplifies their collective impact on sustainable development, urging policymakers, investors, and business leaders to adopt integrated, innovation-led strategies aligned with global sustainability agendas for a resilient and inclusive future.
References
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Al-Saedi, T. K., & Syakir, M. I. (2023). An overview of economic valuation of ecosystem services in protected areas and its roles in achieving Sustainable Development Goals (SDGs). IOP Conference Series: Earth and Environmental Science, 1167(1). https://doi.org/10.1088/1755-1315/1167/1/012052
Al-Thani, M. J., & Koç, M. (2024). In Search of Sustainable Economy Indicators: A Comparative Analysis between the Sustainable Development Goals Index and the Green Growth Index. Sustainability (Switzerland), 16(4). https://doi.org/10.3390/su16041372
Alzoubi, Y. I., & Mishra, A. (2023). Green blockchain – A move towards sustainability. Journal of Cleaner Production, 430(November), 139541. https://doi.org/10.1016/j.jclepro.2023.139541
Bahri, S., & Zamzam, F. (2015). Model Penelitian Kuantitatif Berbasis Sem-Amos Mengenal Sem-Amos. Deepublish.
Barney, J., Wright, M., & Ketchen, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625–641. https://doi.org/10.1177/014920630102700601
Cai, T., & Hong, Z. (2024). Exploring the structure of the digital economy through blockchain technology and mitigating adverse environmental effects with the aid of artificial neural networks. Frontiers in Environmental Science, 12(March), 1–20. https://doi.org/10.3389/fenvs.2024.1315812
Domingo-Posada, E., González-Torre, P. L., & Vidal-Suárez, M. M. (2024). Sustainable development goals and corporate strategy: A map of the field. Corporate Social Responsibility and Environmental Management, 31(4), 2733–2748. https://doi.org/10.1002/csr.2717
Edeh, E., Lo, W.-J., & Khojasteh, J. (2023). Review of Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. Structural Equation Modeling: A Multidisciplinary Journal, 30(1), 165–167. https://doi.org/10.1080/10705511.2022.2108813
Febrianti, S. (2024). Sustainability Finance Dan Green Investment: Literature Review Dengan Metode Prisma. Manajemen: Jurnal Ekonomi, 6(1), 95–106. https://doi.org/10.36985/pmyj1709
Freeman, R. E. E., & McVea, J. (2005). A Stakeholder Approach to Strategic Management. SSRN Electronic Journal, March. https://doi.org/10.2139/ssrn.263511
Global Reporting Initiative. (2021). GRI Standards 2021: Universal standard. Global Reporting Initiative, December. https://www.globalreporting.org/about-gri
Handayani, A., & Rokhim, R. (2023). A Comparative Study of Financial Performance between Sustainable and Conventional Investment. Journal of Entrepreneurship & Business, 4(2), 114–124. https://doi.org/10.24123/jeb.v4i2.5691
Hart, S. L., & Dowell, G. (2011). A natural-resource-based view of the firm: Fifteen years after. Journal of Management, 37(5), 1464–1479. https://doi.org/10.1177/0149206310390219
Hisar, R., & Suharna, J. (2020). Pengaruh Wct, Der Terhadap Roe Pada Industri Manufaktur Di Bursa Efek Indonesia Yang Go Publik. Jurnal Ekonomi : Journal of Economic, 11(1). https://doi.org/10.47007/jeko.v11i1.3263
Huda, S. S. M. S. (2024). Increasing green footprints: Indications of transformations in the socio-economic spaces of Bangladesh. Engineering Reports, 6(1), 1–14. https://doi.org/10.1002/eng2.12775
Keeble, B. R. (1988). The Brundtland Report: “Our Common Future.” Medicine and War, 4(1), 17–25. https://doi.org/10.1080/07488008808408783
Kong, S., Li, H., & Tan, S. (2023). Carbon markets, energy transition, and green development: a moderated dual-mediation model. Frontiers in Environmental Science, 11(August). https://doi.org/10.3389/fenvs.2023.1257449
Lee, J. W. (2024). Diffusion of innovations. In Encyclopedia of Sport Management, Second Edition. https://doi.org/10.4337/9781035317189.ch157
Martahan Simanungkalit, R. H., Jumono, S., Fachruddin Arrozi Adhikara, M., Munandar, A., Earltina Miranda, I., & Suharna, J. (2025). Integration of Digital Technology in Green Finance: a Systematic Analysis of Green Digital Finance. 27–37. https://doi.org/10.5121/csit.2025.151303
Murinde, V., Rizopoulos, E., & Zachariadis, M. (2022). The impact of the FinTech revolution on the future of banking: Opportunities and risks. International Review of Financial Analysis, 81(March), 102103. https://doi.org/10.1016/j.irfa.2022.102103
Shayan, N. F., Mohabbati-Kalejahi, N., Alavi, S., & Zahed, M. A. (2022). Sustainable Development Goals (SDGs) as a Framework for Corporate Social Responsibility (CSR). Sustainability (Switzerland), 14(3), 1–27. https://doi.org/10.3390/su14031222
Simanungkalit, R. M., Anugrah, F., Jumono, S., Adhikara, M. F. A., Munandar, A., & Suharna, J. (2025). Evaluating Financial Health in Indonesia’s Infrastructure Sector: The Impact of Capital Structure, Liquidity, and Firm Size. Golden Ratio of Finance Management, 5(2), 320–332. https://doi.org/10.52970/grfm.v5i2.1059
UNDP, UNHCR, & UNODC. (2024). Global Progress Report on Sustainable Development Goal 16 Indicators At the Crossroads: Breakdown or Breakthrough for Peace, Justice and Strong Institutions Global progress report on Sustainable Development Goal 16 indicators: SDG 16 16 SDG A wake-up call.
Xu, Z., Niu, H., Wei, Y., Wu, Y., & Yu, Y. (2024). Impact and Mechanisms of Digital Inclusive Finance in Relation to Farmland Transfer: Evidence from China. Sustainability (Switzerland), 16(1). https://doi.org/10.3390/su16010408
Zairis, G., Liargovas, P., & Apostolopoulos, N. (2024). Sustainable Finance and ESG Importance: A Systematic Literature Review and Research Agenda. Sustainability (Switzerland) , 16(7), 1–14. https://doi.org/10.3390/su16072878
Zhong, X., Duan, Z., Liu, C., & Chen, W. (2024). Research on the coupling mechanism and influencing factors of digital economy and green technology innovation in Chinese urban agglomerations. Scientific Reports, 14(1), 1–19. https://doi.org/10.1038/s41598-024-55854-4
