Investigating the Impact of Digitalization on Resource Use, Energy Use, and Waste Reduction Towards Sustainability: Considering Environmental Awareness as a Moderator

Today’s world is characterized by rapid technological advancements and escalating ecological concerns including soil and water contamination, acidification, biodiversity loss, excessive waste, etc.; a need is continuously increasing to mitigate these issues and promote sustainability. This study investigated the impact of digitalization on resource use, energy use, waste reduction, and the moderating role of environmental awareness towards sustainability in the manufacturing sector of Pakistan. A quantitative-based approach was used and primary data were collected from the 650 managerial-level manufacturing sector employees from Pakistan by using a closed-ended questionnaire and purposive sampling. Structural equation modeling (SEM) using SmartPLS-4 was employed to analyze the data. Digitalization showed positive and significant effects on energy efficiency, waste reduction, and optimal resource utilization—all of which were significantly associated with sustainability. In addition, the results also showed that environmental awareness functions as a moderator, influencing the impact of digital technologies on resource use, energy use, and waste reduction. The study highlights the potential of digitalization for promoting sustainability by enhancing resource consumption efficiency in the manufacturing industry. It also underscores the importance and need for environmental awareness in adopting digital transformation. The study has major implications for governments, engineers, policymakers, and researchers to promote digital transformation in the manufacturing sector and provide support in accomplishing the Sustainable Development Goals, i.e., SGD-7, SDG-9, SDG-11, and SDG-12.