With a focus on business establishments across Europe and Central Asia, this study investigates the connection between digital engagement and circular economy practices. We examine whether businesses that use digital technology also show greater involvement in sustainability and circular economy activities than their less digitally integrated counterparts. Employing a two-sample z-test for proportions technique, we assess whether the adoption rates of sustainable practices differ significantly between these two independent groups. To understand these effects, we analyze firms by their size: micro, small, medium, and large. Drawing on data from the 2018–2019 Business Environment and Enterprise Performance Survey (BEEPS) conducted throughout the region, this study highlights the potential of digital engagement as a catalyst for sustainable development.