Smart Factory Transformation Using Industry 4.0 toward ESG Perspective: A Critical Review and Future Direction

The future manufacturing system is rapidly developing owing to the advances in artificial intelligence, the Internet-of-Things, robotics, big data, and cloud-computing technologies. Recently, company valuation using environmental, social, and governance (ESG) evaluation indicators has drawn the attention of many companies and is becoming an essential condition for sustainable development and attraction of investments. However, few studies have quantitatively evaluated smart factories using ESG indicators. Therefore, by reviewing the current status of smart factories, this study evaluates how ESG evaluation indicators are reflected in the implementation and operation of smart factories. Therefore, we reviewed and summarized the literature on the 4M core elements of smart factories: men/women, machines, materials, and methods. In addition, evaluation indicators related to smart factories were selected and classified from the ESG evaluation indicators, and the correlations between them were summarized quantitatively. Based on this, we analyzed how ESG is reflected in current smart factories and revealed core element technologies that have not yet been associated with ESG evaluation indicators. Finally, for the sustainable development of smart factories in the future, the development of smart factory technology and factors that should be considered from the perspective of ESG management are suggested.