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Industry 4.0 (I4.0) and sustainability are recent buzzwords in manufacturing environments. However, the connection between these two concepts is less explored in the literature. In the current business context, the future generation of manufacturing systems is greatly influenced by the rapid advancement of information technology. Therefore, this study aims to examine the drivers of I4.0 to diffuse sustainability in Supply Chains (SCs). This research identifies the most relevant drivers through the literature and discusses them with area experts. Afterwards, an empirical analysis is conducted to validate the key drivers. Finally, the Grey based DEMATEL method is employed to examine the influential strength of the identified drivers and to build an interrelationship diagram. ‘Government supportive policies’ and ‘Collaboration and transparency among supply chain members’ were reported as highly significant drivers of I4 …