Sustainability as a driver of digitalization: a Czech study

Many previous studies have addressed the relationship between sustainability and digitalization. However, the impact of the EU Corporate Sustainability Reporting Directive (CSRD), which mandates extensive data disclosure, on corporate digitalization remains underexplored. This paper examines whether the CSRD acts as a driver of digitalization through correlation analysis and multivariate regression on a sample of Czech energy sector companies likely to fall under the CSRD in 2025. Due to the chosen selection criteria, the sample also includes companies with ties to the energy sector, such as representatives from the metallurgical and mining industries. Sustainability is represented by the quality of non-financial information (NFI) disclosed, assessed through the lens of the CSRD, while the level of digitalization is assessed through digitization indexes constructed based on the textual analysis of the annual reports and the asset-based approach. The findings show a weak but positive correlation between the quality of NFI and the level of digitalization, although this correlation is not statistically significant, which does not fully support previous researchers' findings. Thus, the methodological limitations are discussed in detail, and further research is recommended. Alternative methods of assessment of the level of digitalization, such as questionnaire surveys, can help provide a more comprehensive understanding of the sustainability-digitalization nexus. The theoretical contribution of this paper lies in offering a new perspective on methods for evaluating digitalization levels and linking digitalization progress to CSR development within the EU context. Practically, this paper highlights the relationship between digitalization and CSRD, providing valuable insights for companies and policymakers.