This study investigates how digital technologies, including big data, blockchain, IoT, and artificial intelligence (AI), can help move from a linear to a circular economy. These technologies are essential to attaining environmental sustainability because they let businesses optimize resource use, improve supply chain transparency, and cut waste. However, their adoption has several ethical and environmental issues, such as labour displacement, energy consumption, e-waste generation, and data privacy concerns. This essay looks at these issues and how companies can balance the advantages of digital innovations with their moral obligations. The potential for blockchain to enhance supply chain transparency, AI's capacity to maximize resource management, IoT's function in real-time monitoring, and big data's influence on decision-making are some of the major conclusions. Subsequent investigations ought to concentrate on creating energy-efficient digital tools, ethical AI models, and legislative frameworks that promote responsible innovation. The study's conclusion highlights the significance of integrating digital technologies with ethical and sustainable practices, and it makes the case that stringent legislative and regulatory measures are necessary to guarantee the circular economy's long-term viability.