Digital transformation is reshaping the creative and cultural industries (CCI), offering new opportunities but also posing challenges to business sustainability. Small and medium-sized CCI enterprises must adapt to rapid technological changes despite limited resources and knowledge. This study explores the intersection of digital transformation and environmental sustainability in the CCI context, with a focus on the role of corporate identity and its management in navigating this complex dynamic environment. Using a qualitative research design that combines a systematic literature review with ten semi-structured expert interviews, the study examines how CCI companies can align digital innovation with sustainability goals. The literature review reveals a research gap: few studies explicitly address the links between digital transformation, sustainability, and corporate identity within CCI. Expert interviews with professionals from Latvia provide practical insights into emerging strategies and ongoing challenges. Thematic analysis shows that while digital technologies can support sustainability practices, they also introduce new complexities. A strong corporate identity grounded in sustainability values is essential in guiding digital transformation in an environmentally responsible direction. Findings suggest that companies with clearly defined sustainability-oriented identities are better positioned to implement digital innovations that align with environmental goals. The study concludes with recommendations for how CCI firms can strengthen their corporate identity to integrate sustainability into digital strategies better. Although limited to Latvia and a small expert sample, the research offers valuable implications for practitioners and policymakers. Future studies should expand across regions and sectors to deepen understanding of this emerging field.