This study examines how firms’ human capital supports the Twin Transition through the use of digital technologies for environmental purposes. Building on the dynamic capabilities framework, we conceptualise “digital-for-green practices” as the extent to which firms deploy digital technologies across multiple environmental action areas. We argue that such practices rely on human capital, but that formal education and firm-specific training play distinct roles. Using a novel survey of Italian firms, we construct a multidimensional indicator based on a many-to-many mapping between seven digital technologies and four environmental domains. Logit and OLS models are estimated to analyse both the adoption (extensive margin) and intensity (intensive margin) of engagement, controlling for digital and green innovation capabilities and other firm characteristics. Results show that training-based human capital significantly fosters digital-for-green practices — particularly non-technological applications — whereas formal education has no independent effect once other capabilities are considered. Findings are robust to alternative specifications and a shift-share approach, highlighting important skill-based micro-foundations of the Twin Transition.

Keywords: Twin Transition; digital for green; eco-innovation; human capital; training; education; survey data; Italy;

JEL codes: O33; O32; Q55; J24; L25