How IoT helps companies achieve sustainability goals faster

CSRD – the EU's new law for sustainability reporting – makes it business-critical to gain control over your environmental impact. It requires not only data, but insights and actions. Here IoT plays a crucial role. With smart sensors and real-time data, it becomes possible to effectively measure, analyze and improve the business's climate footprint – while complying with regulations.

If we turn back the clock three decades, our employees began their work by building wireless radio networks, radio networks that became the foundation of wireless communication networks. Networks that connected machines remotely, without cables or fixed infrastructure. These robust radio networks enabled data transmission long before anyone even mentioned the term IoT. The technology reduced travel, provided faster actions and saved money. Today we talk about smart, connected devices – but the goal is the same: efficiency, fewer trips and a better use of resources.

IoT as a tool for climate benefits

At the turn of the year 2024, sustainability was at the top of the agenda for many decision-makers. Despite political shifts in the world, the environmental issue has not lost its power. On the contrary. An older but still current report from the World Economic Forum shows that a full 85 % of all IoT initiatives support the UN sustainability goals.

Volvo Group, for example, was an early adopter of IoT in production and managed to reduce energy use by 30 %. From energy management to waste optimization – IoT is laying the foundation for sustainable development in all industries.

Digitalization in support of CSRD

The new EU regulation CSRD (Corporate Sustainability Reporting Directive) requires companies to report their climate impact. With the help of IoT, organizations can collect real-time data on, for example, energy use and water consumption – and create a data-driven decision-making basis for goals and actions. This not only makes reporting easier, but also benefits the company's competitiveness in the long term.

Preventive maintenance – smart and resource-saving

Back in 1999, Kevin Ashton talked about how technology could predict when something needed to be repaired. Today, it’s a reality. By predicting failures before they happen, you can avoid downtime and waste of resources. Deloitte shows that predictive maintenance can reduce maintenance costs by 10–20% and reduce downtime by up to 25%. The result? Less material consumption, fewer trips, and more sustainable processes.

Smart energy metering in existing buildings

Almost 20 % of Sweden's homes were built under the Million Program – they are fairly solidly built but often inefficient to heat. The EU's goal is to reduce greenhouse gases by at least 55% by 2030, but 75% of the buildings are energy-hungry. The technical challenge is that older properties often lack technical systems for remote monitoring.

The solution is to retrofit with smart metering equipment. IoT sensors provide property owners with accurate information on energy use and enables targeted investments to reduce climate impact.

AI and IoT for intelligent waste management

When AI is coupled with IoT new opportunities arise. Through sensors with cameras and image recognition, systems can classify waste in real time. These solutions improve sorting, reduce incorrect deliveries and save both time and money. Machine learning also means that the systems get better over time.

Reduce water consumption in properties

A leaking toilet can waste 400 liters of water per day, completely unnecessarily. IoT sensors make it easy to detect and fix water leaks before they become costly. With real-time data, it is possible to identify patterns and deviations – and act immediately.

In homes, sensors that measure shower time and provide direct feedback have been shown to reduce shower time by 33%. This means significant savings in hot water and energy.

IoT as the tool of the future for sustainability

IoT has already become a key to sustainable development, but the potential is even greater. With the support of AI, the systems of the future can not only measure and analyze, but also act automatically in real time. At the same time, this requires us to dare to take a stand for energy-efficient, circular and long-term IoT solutions.

The development of IoT must be based on responsibility. We must design smarter algorithms, reduce data volumes and choose energy-efficient components. It is important to focus on sustainable benefits and not technology for technology's sake.

From metrics to action

IoT has gone from being an efficiency tool to becoming a decisive factor for the climate. From smart buildings and predictive maintenance to water conservation and AI-based waste management – the technology creates both business and environmental benefits.

By not waiting to invest in IoT solutions can enable businesses, property owners and communities take real steps towards a sustainable future. The question is no longer if, but when.