Sustainability in industry 4.0 and 5.0: Environmental, Social, and Governance (ESG)-driven practices
Abstract
Industry 5.0 and the integration of the digital transformation with sustainability imperatives brings these two worlds closer together and creates a unique dilemma for the modern industry which comes under pressure from both sides. Classic Environmental, Social and Governance (ESG) investing is not equipped to deal with the complex, interrelated problems of climate change, social inequality and corporate accountability that come hand-in-hand with a digital economy that few understand or can square off. This review of literature studies how ESG implementation, reporting and performance measurement are being redefined across industries due to the advent of emerging technologies such as artificial intelligence, machine learning, blockchain and internet-of-things. The systematic PRISMA approach was used by analyzing a pool of 97 studies. The research shows significant progress in predictive analytics for environmental impact assessment, AI-driven sustainability reporting and blockchain-based supply-chain transparency, as well as the application of machine-learning techniques to ESG risk. The results indicate that smart technology, predictive analytics, and responsible use of technology are key enablers in sustainable supply chain management and renewable energy implementation as well as overall sustainability reporting. This study contributes to the theoretical development and practical application of ESG-driven strategies in digitally empowered industrial environments and provides a deeper understanding of governance models, investment patterns, and performance-testing methods promoting economic prosperity while preserving the environment and ensuring social responsibility, thereby progressing the global sustainability agenda in an increasingly inter-dependent yet technology-enabled era.
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References
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