Industry 4.0 and the Environment: A Review of Ecological Implications and Integrated Mitigation Strategies

Authors

  • Loso Judijanto IPOSS Jakarta

DOI:

https://doi.org/10.59890/ijgsr.v4i7.295

Keywords:

Industry 4.0; Environmental Sustainability; Digital Transformation; Resource Efficiency; Circular Economy; Smart Manufacturing; Carbon Emissions; E-Waste; Environmental Governance; Green Innovation

Abstract

Industry 4.0 transformation offers opportunities to improve resource efficiency and environmental performance, but at the same time creates new ecological burdens through digital energy consumption, critical material needs, e-waste, and rebound effects. This article aims to analyze the positive and negative implications of Industry 4.0 on the environment and formulate integrated mitigation strategies that are relevant to companies and policymakers. The study uses qualitative literature review that is non-systematic, interpretive, and critical by synthesizing 55 verified journal articles published since 2020. Thematic analysis shows that environmental benefits mainly emerge through real-time monitoring, predictive maintenance, process optimization, energy and material efficiency, waste reduction, and strengthening the circular economy. In contrast, computing and communication infrastructure increases the need for electricity, water, hardware, minerals, and end-of-life management, while relative efficiency can be offset by production expansion. The end impact is conditional because it is influenced by energy mix, organizational capabilities, supply chain integration, product design, data governance, regulation, and measurement throughout the lifecycle. This article proposes the avoid–reduce–circularize–decarbonize–verify principle and eight mitigation pillars that link materiality assessments, absolute targets, technology selection, sustainable operations, circularity, decarbonization, governance, and verification. For Indonesia and developing countries, transformation needs to be carried out gradually and inclusively through support for small and medium-sized enterprises, extended producer responsibility, data interoperability, green incentives, and performance-based regulations

References

A. Aminoff and H. Sundqvist-Andberg, "Constraints leading to system-level lock-ins—the case of electronic waste management in the circular economy," J. Clean. Prod., vol. 322, p. 129029, Nov. 2021, doi: 10.1016/j.jclepro.2021.129029.

Á. Díaz-Chao, P. Ficapal-Cusí, and J. Torrent-Sellens, "Environmental assets, industry 4.0 technologies and firm performance in Spain: A dynamic capabilities path to reward sustainability," J. Clean. Prod., vol. 281, p. 125264, Jan. 2021, doi: 10.1016/j.jclepro.2020.125264.

C. Bai, P. Dallasega, G. Orzes, and J. Sarkis, "Industry 4.0 technologies assessment: A sustainability perspective," Int. J. Prod. Econ., vol. 229, p. 107776, Nov. 2020, doi: 10.1016/j.ijpe.2020.107776.

C. Chauhan, V. Parida, and A. Dhir, "Linking circular economy and digitalisation technologies: A systematic literature review of past achievements and future promises," Technol. Forecast. Soc. Change, vol. 177, p. 121508, Apr. 2022, doi: 10.1016/j.techfore.2022.121508.

C. Post, R. Sarala, C. Gatrell, and J. E. Prescott, "Advancing Theory with Review Articles," J. Manag. Stud., vol. 57, no. 2, pp. 351–376, Mar. 2020, doi: 10.1111/joms.12549.

D. Breslin and C. Gatrell, "Theorizing Through Literature Reviews: The Miner-Prospector Continuum," Organ. Res. Methods, vol. 26, no. 1, pp. 139–167, Jan. 2023, doi: 10.1177/1094428120943288.

D. Mytton, "Hiding greenhouse gas emissions in the cloud," Nat. Clim. Chang., vol. 10, no. 8, pp. 701–701, Aug. 2020, doi: 10.1038/s41558-020-0837-6.

E. Di Maria, V. De Marchi, and A. Galeazzo, "Industry 4.0 technologies and circular economy: The mediating role of supply chain integration," Bus. Strategist. Approximately., vol. 31, no. 2, pp. 619–632, Feb. 2022, doi: 10.1002/bse.2940.

F. Fan, H. Lian, X. Liu, and X. Wang, "Can environmental regulation promote urban green innovation Efficiency? An empirical study based on Chinese cities," J. Clean. Prod., vol. 287, p. 125060, Mar. 2021, doi: 10.1016/j.jclepro.2020.125060.

G. Amjadi, T. Lundgren, and W. Zhou, "A dynamic analysis of industrial energy efficiency and the rebound effect: implications for carbon emissions and sustainability," Energy Effic., vol. 15, no. 7, p. 54, Oct. 2022, doi: 10.1007/s12053-022-10059-4.

G. Beier, A. Ullrich, S. Niehoff, M. Reißig, and M. Habich, "Industry 4.0: How it is defined from a sociotechnical perspective and how much sustainability it includes–A literature review," J. Clean. Prod., vol. 259, p. 120856, 2020.

G. Beier, S. Niehoff, and M. Hoffmann, "Industry 4.0: a step towards achieving the SDGs? A critical literature review," Discov. Sustain., vol. 2, no. 1, p. 22, Dec. 2021, doi: 10.1007/s43621-021-00030-1.

G. Yadav, A. Kumar, S. Luthra, J. A. Garza-Reyes, V. Kumar, and L. Batista, "A framework to achieve sustainability in manufacturing organisations of developing economies using industry 4.0 technologies' enablers," Comput. Ind., vol. 122, 2020, doi: 10.1016/j.compind.2020.103280.

H. Peng, N. Shen, H. Ying, and Q. Wang, "Can environmental regulation directly promote green innovation behavior?—— based on situation of industrial agglomeration," J. Clean. Prod., vol. 314, p. 128044, Sep. 2021, doi: 10.1016/j.jclepro.2021.128044.

I. Laskurain-Iturbe, G. Arana-Landín, B. Landeta-Manzano, and N. Uriarte-Gallastegi, "Exploring the influence of industry 4.0 technologies on the circular economy," J. Clean. Prod., vol. 321, p. 128944, Oct. 2021, doi: 10.1016/j.jclepro.2021.128944.

J. Dai and Q. Zhu, "ESG performance and green innovation in a digital transformation perspective," Am. J. Econ. Sociol., vol. 83, no. 1, pp. 263–282, Jan. 2024, doi: 10.1111/ajes.12541.

J. Oláh, N. Aburumman, J. Popp, M. A. Khan, H. Haddad, and N. Kitukutha, "Impact of Industry 4.0 on Environmental Sustainability," Sustainability, vol. 12, no. 11, p. 4674, Jun. 2020, doi: 10.3390/su12114674.

J. Paul and A. R. Criado, "The art of writing literature review: What do we know and what do we need to know?," Int. Bus. Rev., vol. 29, no. 4, p. 101717, Aug. 2020, doi: 10.1016/j.ibusrev.2020.101717.

K. Ejsmont, B. Gladysz, and A. Kluczek, "Impact of Industry 4.0 on Sustainability—Bibliometric Literature Review," Sustainability, vol. 12, no. 14, p. 5650, Jul. 2020, doi: 10.3390/su12145650.

K. Richardson et al., "Earth beyond six of nine planetary boundaries," Sci. Adv., vol. 9, no. 37, Sep. 2023, doi: 10.1126/sciadv.adh2458.

L. Huang and Z. Lei, "How environmental regulation affect corporate green investment: Evidence from China," J. Clean. Prod., vol. 279, p. 123560, Jan. 2021, doi: 10.1016/j.jclepro.2020.123560.

L. Li, "Digital transformation and sustainable performance: The moderating role of market turbulence," Ind. Mark. Great., vol. 104, pp. 28–37, Jul. 2022, doi: 10.1016/j.indmarman.2022.04.007.

M. A. Shabur, "A comprehensive review on the impact of Industry 4.0 on the development of a sustainable environment," Discov. Sustain., vol. 5, no. 1, p. 97, May 2024, doi: 10.1007/s43621-024-00290-7.

M. Beltrami, G. Orzes, J. Sarkis, and M. Sartor, "Industry 4.0 and sustainability: Towards conceptualization and theory," J. Clean. Prod., vol. 312, p. 127733, 2021, doi: https://doi.org/10.1016/j.jclepro.2021.127733.

M. Ghobakhloo, "Industry 4.0, Digitization, and Opportunities for Sustainability," J. Clean. Prod., vol. 252, p. 119869, 2020.

M. Ghobakhloo, M. Iranmanesh, A. Grybauskas, M. Vilkas, and M. Petraitė, "Industry 4.0, innovation, and sustainable development: A systematic review and a roadmap to sustainable innovation," Bus. Strategist. Approximately., vol. 30, no. 8, pp. 4237–4257, Dec. 2021, doi: 10.1002/bse.2867.

M. Javaid, A. Haleem, R. P. Singh, R. Suman, and E. S. Gonzalez, "Understanding the adoption of Industry 4.0 technologies in improving environmental sustainability," Sustain. Oper. Comput., vol. 3, pp. 203–217, 2022, doi: 10.1016/j.susoc.2022.01.008.

M. Sharma, S. Kamble, V. Mani, R. Sehrawat, A. Belhadi, and V. Sharma, "Industry 4.0 adoption for sustainability in multi-tier manufacturing supply chains in emerging economies," J. Clean. Prod., vol. 281, p. 125013, Jan. 2021, doi: 10.1016/j.jclepro.2020.125013.

M. T. Islam et al., "A global review of consumer behavior towards e-waste and implications for the circular economy," J. Clean. Prod., vol. 316, p. 128297, Sep. 2021, doi: 10.1016/j.jclepro.2021.128297.

N. P. Nguyen and T. Thanh Hoai, "The impacts of digital transformation on data-based ethical decision-making and environmental performance in Vietnamese manufacturing firms: The moderating role of organizational mindfulness," Cogent Bus. Great., vol. 9, no. 1, Dec. 2022, doi: 10.1080/23311975.2022.2101315.

O. Yavuz, M. M. Uner, F. Okumus, and O. M. Karatepe, "Industry 4.0 technologies, sustainable operations practices and their impacts on sustainable performance," J. Clean. Prod., vol. 387, p. 135951, Feb. 2023, doi: 10.1016/j.jclepro.2023.135951.

Q. Xu, X. Li, and F. Guo, "Digital transformation and environmental performance: Evidence from Chinese resource‐based enterprises," Corp. Soc. Responsib. Approximately. Great., vol. 30, no. 4, pp. 1816–1840, Jul. 2023, doi: 10.1002/csr.2457.

R. Agrawal, V. A. Wankhede, A. Kumar, S. Luthra, and D. Huisingh, "Progress and trends in integrating Industry 4.0 within Circular Economy: A comprehensive literature review and future research propositions," Bus. Strategist. Approximately., vol. 31, no. 1, pp. 559–579, 2022, doi: 10.1002/BSE.2910.

R. Brozzi, D. Forti, E. Rauch, and D. T. Matt, "The Advantages of Industry 4.0 Applications for Sustainability: Results from a Sample of Manufacturing Companies," Sustainability, vol. 12, no. 9, p. 3647, May 2020, doi: 10.3390/su12093647.

S. Jayashree, M. N. H. Reza, C. A. N. Malarvizhi, and M. Mohiuddin, "Industry 4.0 implementation and Triple Bottom Line sustainability: An empirical study on small and medium manufacturing firms," Hell, vol. 7, no. 8, p. e07753, Aug. 2021, doi: 10.1016/j.heliyon.2021.e07753.

S. Kraus et al., "Literature reviews as independent studies: guidelines for academic practice," Rev. Manag. Sci., vol. 16, no. 8, pp. 2577–2595, Nov. 2022, doi: 10.1007/s11846-022-00588-8.

S. Kumar, R. D. Raut, E. Aktas, B. E. Narkhede, and V. V. Gedam, "Barriers to adoption of industry 4.0 and sustainability: a case study with SMEs," Int. J. Comput. Integr. Manuf., vol. 36, no. 5, pp. 657–677, May 2023, doi: 10.1080/0951192X.2022.2128217.

S. Lange, J. Pohl, and T. Santarius, "Digitalization and energy consumption. Does ICT reduce energy demand?," School. Econ., vol. 176, p. 106760, Oct. 2020, doi: 10.1016/j.ecolecon.2020.106760.

S. M. Al-Salem et al., "On the implementation of the circular economy route for E-waste management: A critical review and an analysis for the case of the state of Kuwait," J. Approximately. Manage., vol. 323, p. 116181, Dec. 2022, doi: 10.1016/j.jenvman.2022.116181.

S. Ma, W. Ding, Y. Liu, S. Ren, and H. Yang, "Digital twin and big data-driven sustainable smart manufacturing based on information management systems for energy-intensive industries," Appl. Energy, vol. 326, p. 119986, Nov. 2022, doi: 10.1016/j.apenergy.2022.119986.

S. Zhao, L. Zhang, L. Peng, H. Zhou, and F. Hu, "Enterprise pollution reduction through digital transformation? Evidence from Chinese manufacturing enterprises," Technol. Soc., vol. 77, p. 102520, Jun. 2024, doi: 10.1016/j.techsoc.2024.102520.

T. A. Kurniawan, M. H. Dzarfan Othman, G. H. Hwang, and P. Gikas, "Unlocking digital technologies for waste recycling in Industry 4.0 era: A transformation towards a digitalization-based circular economy in Indonesia," J. Clean. Prod., vol. 357, p. 131911, Jul. 2022, doi: 10.1016/j.jclepro.2022.131911.

T. Ahmad et al., "Artificial intelligence in sustainable energy industry: Status Quo, challenges and opportunities," J. Clean. Prod., vol. 289, p. 125834, Mar. 2021, doi: 10.1016/j.jclepro.2021.125834.

T. Roh, K. Lee, and J. Y. Yang, "How do intellectual property rights and government support drive a firm's green innovation? The mediating role of open innovation," J. Clean. Prod., vol. 317, p. 128422, Oct. 2021, doi: 10.1016/j.jclepro.2021.128422.

U. Awan and R. Sroufe, "Sustainability in the circular economy: insights and dynamics of designing circular business models," Appl. Sci., vol. 12, no. 3, p. 1521, 2022, doi: 10.3390/app12031521.

U. Awan, R. Sroufe, and M. Shahbaz, "Industry 4.0 and the circular economy: A literature review and recommendations for future research," Bus. Strategist. Approximately., vol. 30, no. 4, pp. 2038–2060, May 2021, doi: 10.1002/bse.2731.

V. Braun and V. Clarke, "One size fits all? Quality practice in reflexive thematic analysis," Qual. Res. Psychol., vol. 18, no. 3, pp. 328–352, 2021.

V. S. Patyal, P. R. S. Sarma, S. Modgil, T. Nag, and D. Dennehy, "Mapping the links between Industry 4.0, circular economy and sustainability: a systematic literature review," J. Enterp. Inf. Manag., vol. 35, no. 1, pp. 1–35, Feb. 2022, doi: 10.1108/JEIM-05-2021-0197.

W. M. Lim, S. Kumar, and F. Ali, "Advancing knowledge through literature reviews: What, why, and how to contribute," Serv. Ind. J., vol. 40, nos. 7–8, pp. 481–513, 2020.

W. Yu, P. Patros, B. Young, E. Klinac, and T. G. Walmsley, "Energy digital twin technology for industrial energy management: Classification, challenges and future," Renew. Sustain. Energy Rev., vol. 161, p. 112407, Jun. 2022, doi: 10.1016/j.rser.2022.112407.

X. Chen, M. Despeisse, and B. Johansson, "Environmental Sustainability of Digitalization in Manufacturing: A Review," Sustainability, vol. 12, no. 24, p. 10298, Dec. 2020, doi: 10.3390/su122410298.

X. J. Deng, M. Q. Yuan, and C. Y. Luo, "Corporate digital transformation, market competition, and the environmental performance—Microevidence from Chinese manufacturing," Bus. Strategist. Approximately., vol. 33, no. 4, pp. 3279–3298, May 2024, doi: 10.1002/bse.3660.

Y. Li, J. Dai, and L. Cui, "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," Int. J. Prod. Econ., vol. 229, p. 107777, Nov. 2020, doi: 10.1016/j.ijpe.2020.107777.

Y. Liu, A. Wang, and Y. Wu, "Environmental regulation and green innovation: Evidence from China's new environmental protection law," J. Clean. Prod., vol. 297, p. 126698, May 2021, doi: 10.1016/j.jclepro.2021.126698.

Y. Yang and J. Han, "Digital transformation, financing constraints, and corporate environmental, social, and governance performance," Corp. Soc. Responsib. Approximately. Great., vol. 30, no. 6, pp. 3189–3202, Nov. 2023, doi: 10.1002/csr.2546.

Downloads

Published

2026-08-04

How to Cite

Judijanto, L. (2026). Industry 4.0 and the Environment: A Review of Ecological Implications and Integrated Mitigation Strategies. International Journal of Global Sustainable Research, 4(7), 767–792. https://doi.org/10.59890/ijgsr.v4i7.295

Issue

Section

Articles