This study investigates the role of digital twins (DTs) in sustainable performance within the context of Industry 5.0. Employing a multiple case study approach, the study explores how DTs contribute to sustainability benefits and identifies the challenges that companies face in their implementation. The findings demonstrate that DTs enable real-time monitoring, process optimization, and resource management, resulting in reduced waste, improved energy efficiency, and enhanced environmental reporting. However, challenges such as data standardization, integration complexities, and scalability persist, particularly for small- and medium-sized enterprises (SMEs). The study concludes that while DTs offer significant potential for enhancing sustainable performance in Industry 5.0, addressing implementation barriers and fostering technological synergies are crucial for widespread adoption and maximization of the benefits of DTs.