This report summarises the findings of the EUA Learning & Teaching Thematic Peer Group "Digitally competent teachers in designing quality learning environments", which was active throughout 2022. Fostering teachers' digital competences is now an indispensable condition for imagining, designing and organising teaching formats, creating and sustaining learning design, assessing student learning, and promoting student engagement, all in the context of a rapidly expanding digital environment. This report explores how higher education institutions address the development of digital competences for teachers. The Thematic Peer Group identified common challenges and proposed a set of recommendations for institutions to develop digital competences with an ecosystem, holistic approach -- integrating a vision for innovation, organisational culture(s), leadership roles, strategy, policy and implementation. The group was organised in the context of the "Supporting European universities in their strategic approaches to digital learning" (DIGI-HE) project and EUA's Learning & Teaching activities.