The twin transition: Driving sustainability through digital transformation in manufacturing

In the context of increasing global competition and rising environmental and social demands, manufacturing companies are under pressure to pursue sustainable growth while maintaining competitiveness. Although the convergence of digitalization and sustainability, known as the “twin transition”, has gained significant attention, understanding how digital technologies concretely support sustainability initiatives remains fragmented. This study explores the role of digital transformation in advancing sustainable practices within the manufacturing sector, drawing on empirical evidence from an industrial cluster. The findings reveal that while digital tools offer significant potential for improving resource efficiency, reducing emissions, and supporting sustainable operations, companies face persistent barriers such as stakeholder resistance, high initial costs, limited customer willingness to pay for sustainable products, and fragmented data utilization. Furthermore, organizational challenges, including low digital maturity, cultural resistance, and difficulties in aligning supply chain partners, continue to hinder progress. The study highlights the importance of employee engagement, transparent sustainability reporting, and strategic data management as critical enablers for the successful integration of digitalization and sustainability. By identifying both opportunities and challenges, the paper contributes to a deeper understanding of the systemic changes needed to leverage digital technologies for sustainable manufacturing and outlines avenues for future research across broader industrial contexts.