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Purpose

This study aims to examine the impact of digital transformation on the sustainability reporting of Romanian small- and medium-sized enterprises (SMEs), focusing on environmental sustainability objectives.

Design/methodology/approach

The hypotheses were validated using a quantitative survey of SMEs and structural equation modeling.

Findings

Digital technologies create opportunities for collecting and analyzing sustainability data; however, SMEs face challenges such as limited resources, insufficient technological expertise and regulatory uncertainty.

Practical implications

The findings offer decision-makers and SME managers valuable insights into integrating digital technologies to enhance sustainability reporting and emphasize the need for financial and technical support.

Originality/value

This study contributes to digital transformation and sustainability reporting research in SMEs, focusing on the underexplored Romanian context.

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