Lean manufacturing is now called Industry 4.0, in which traditional production tools are data-driven and have implications for corporate sustainability. Jidoka (JIDO) has been transformed into JIDO 4.0, which employs Internet of Things (IoT) systems and sensors to gather data from the production process for real-time monitoring and decision making. Based on three hypotheses, this study proposes a structural equation model (SEM) to examine the relationships between JIDO 4.0, digital sustainability (DISU), and environmental sustainability (ENSU) in manufacturing companies. The SEM was tested with data from 834 responses to a questionnaire for managers, engineers, and supervisors, validated using Lawshe’s content validity ratio and Aiken’s V. The Warp3 algorithm in WarpPLS 8.0 was used to detect nonlinear relationships between constructs. The results indicate that the three proposed hypotheses are supported, showing that JIDO has the greatest direct effect on DISU (β = 0.588), and DISU is the most influential predictor of ENSU (β = 0.553). The indirect effect of JIDO on ENSU, mediated by DISU (β = 0.325), was nearly equal to the direct effect (β = 0.342), indicating that DISU acts as a bridge between intelligent autonomy and environmental benefits. A sensitivity analysis based on conditional probabilities indicated that when DISU was high, the probability of achieving a high ENSU was 64.8%. These results indicate that JIDO is a data-driven organizational capability with direct and indirect effects on ENSU, and that it provides managers with empirical evidence to prioritize their investments in smart and lean technology.