Abstract:     In the context of "carbon peaking and carbon neutrality", enterprise digital and green transformations are crucial. Not only do they help drive comprehensive green transformation in economic and social sectors, but they are also key for enterprises to achieve sustainable development. This paper first calculated the level of enterprise digital and green transformations by using the entropy method and coupling coordination model. Subsequently, based on the panel data from 1659 A-share listed companies from 2010 to 2021, a two-way fixed effects model was constructed to explore the impact and underlying mechanisms of enterprise digital and green transformations on sustainable development performance, as well as the moderating effect of local low-carbon policies. This study found that: firstly, the concept of enterprise digital and green transformations should be redefined, which is a strategic synergy relationship characterized by mutual complementarity, support, and collaboration. Secondly, enterprise digital and green transformations significantly enhance sustainable development performance. Thirdly, these twin transformations improve sustainable development performance by optimizing resource allocation efficiency. Fourthly, the intensity of local low-carbon policies significantly strengthens the above relationship. This study will provide valuable insights for the sustainable development of enterprises, as well as for the implementation of low-carbon policies by local governments.

Key words:  digital and green transformations, transformation synergy, local low-carbon policy, enterprise sustainable development