This study examines the role of digital transformation in enhancing corporate sustainability within Palestinian institutions through the Environmental, Social, and Governance (ESG) framework. The study is based on a structured analytical review of relevant international and local literature, with a focus on digital transformation, ESG indicators, and the Palestinian institutional context. It identifies key structural and institutional challenges facing Palestinian organizations, including limited digital infrastructure, a shortage of digital skills, and the absence of integrated policies aligned with ESG indicators. The study demonstrates that digital transformation can support sustainability outcomes in the Palestinian context when accompanied by strategic alignment, investment in digital capacity building, and the development of national frameworks for assessing digital maturity and ESG integration. The paper offers policy-oriented and institutional recommendations to support policymakers, organizations, and development actors in advancing a resilient and sustainable digital transformation agenda.