Twin Transition studies have gained widespread attention. Understood as a coupling between two parallel concepts, “environmental” and “digitalization” transitions, there remains a limited understanding of what Twin Transitions entail for SMEs. This gap can be attributed to the lack of a consolidated and widely accepted definition of the Twin Transition concept. Furthermore, there is ambiguity surrounding the process through which SMEs undertake this transformation and the factors that drive it. This report aims to address these gaps by helping the conceptualization of Twin Transitions for SMEs in Europe and by offering recommendations on how to measure Twin Transitions for SMEs in Europe. This report was built upon an integrative literature review, drawing from academic databases, governmental reports, and consulting materials. Centrally provide a definition of Twin Transition as “two parallel and mutually reinforcing digital and environmental transitions, which amplify each other leading to sustainable competitiveness for firms”. We contribute to the literature on Twin Transitions by presenting a series of measurement scales that can be utilized to analyze the degree to which SMEs can accomplish digital and environmental transitions. The report introduces a range of examples that exemplify how digitalization enhances the achievement of environmental and sustainability objectives while fostering SMEs’ competitiveness.