In the early 90s, I landed my first job in sales, selling wireless networks via proprietary radio systems. That job set me on a lifelong journey in the IoT industry, using technology to reshape the world. The radio networks we built 30 years ago formed the backbone of wireless communication, bridging distances with powerful and flexible solutions that enabled machines to talk to each other—without cables or existing infrastructure. We created robust wireless networks that allowed machines to exchange information over long distances. The advantages of remote connectivity were obvious: less travel, faster technician response times, better and faster real-time analytics, drastically reduced costs, and improved quality. These systems were the forerunners of IoT, where intelligent devices are connected to the open internet to exchange information. The similarities with IoT today are striking. Back then, we pitched fuel savings as a cost benefit; today, the focus is on reducing environmental impact.
How IoT Reduces Environmental Impact
At the beginning of 2024, sustainability topped the agenda for many business leaders. However, after a shift in the U.S. presidency, the focus shifted to tariffs and reshoring (bringing companies back to the U.S.). But sustainability hasn’t been put on pause—on the contrary, it is more crucial than ever. A few years ago, a report from the World Economic Forum indicated that an impressive 85% of IoT initiatives address sustainability goals, highlighting the technology’s potential to support sustainable development. Even though the report is a few years old, its key points remain relevant. For example, Volvo Group was one of the first companies to integrate IoT into its production methods, reporting a 30% reduction in energy consumption compared to pre-IoT implementation.
From smart energy management to waste reduction and resource optimization, IoT enhances sustainability across many industries. According to numerous studies, sustainability is often a top priority when organizations initiate IoT projects.
How digitalisation helps companies meet CSRD requirements
The new EU regulation, the Corporate Sustainability Reporting Directive (CSRD), imposes stringent requirements on companies to report their environmental impact. IoT-driven insights enable businesses to analyze their current status and track efficiency improvements, providing a data-driven foundation for sustainability reporting. IoT devices collect real-time data on energy consumption, water usage, and waste management from different parts of an operation.
By continuously measuring and improving sustainability metrics with IoT solutions, companies can not only comply with CSRD requirements but also enhance their long-term competitiveness by creating a transparent, measurable, and sustainable business model.
So, what does this look like in reality? Let’s explore a few real-world examples from my daily work.
Predictive and proactive maintenance in industry
Back in 1999, Kevin Ashton famously said: “If we had computers that knew everything there was to know about things… we could greatly reduce waste, loss, and costs. We would know when things needed to be replaced or repaired.”
This was the early vision of predictive maintenance. By identifying potential issues before they result in failures, predictive maintenance—enabled by sensors and connected processes—can boost production capacity by 5–10%. A Deloitte report shows that predictive maintenance can reduce maintenance costs by 10–20% and cut downtime by 20–25%. This naturally lowers environmental impact by reducing travel, material consumption, and operational disruptions—leading to less stress for employees.
A solution for energy-hungry buildings
Many of Sweden’s older buildings were constructed in an era with different standards—nearly 20% of all housing was built during the Million Program years. While solidly built, these structures lack modern materials, efficient insulation, and intelligent property systems. The EU aims to reduce greenhouse gas emissions by at least 55% by 2030 across society, and buildings are a major contributor to emissions. Nearly 75% of EU buildings are energy inefficient.
To achieve the EU’s 2030 goals, the building sector must drastically cut emissions. However, older, inefficient buildings often lack connectivity and technical infrastructure. Retrofitting these properties with smart measurement and analysis systems provides property owners with detailed insights into energy use, enabling informed investments in sustainability. Sensors help monitor energy flows and optimize consumption, allowing owners to target inefficiencies and implement energy-saving measures.
AI takes control of waste management
As I discussed in my previous post on IoT trends for 2025, AI and IoT make a powerful combination. IoT sensors with built-in cameras and AI create products that merge multiple aspects of IoT. Through advanced image recognition and adaptive machine learning, an AI-powered camera can analyze and categorize waste and recyclables.
Real-time recognition enables systems to classify and list different material types, measure waste amounts, and identify contamination or mis-sorted materials. Optimized processes and reduced workload lead to significant cost savings and more streamlined operations. AI-supported sensors continuously improve through data collection and analysis, enhancing sorting accuracy over time.
Every drop counts
I often emphasize that the hardest part of IoT is not collecting data but using it to change behaviors. Water is one of our most valuable resources, yet many property owners unknowingly lose money due to leaks. A single leaking toilet can waste up to 400 liters of water daily, and 250 liters can silently flow into the sewer.
Shower time monitoring is another crucial area. One effective model shortens the time between data collection and feedback. A simple in-shower sensor with a display provides immediate feedback, helping users adjust their behavior. Tests show this real-time feedback can cut shower time by 33% in homes, saving significant amounts of hot water and reducing carbon emissions. While it’s difficult to quantify Sweden’s total annual shower consumption, estimates suggest that 5% of our energy usage goes to heating water for showers. Reducing shower time by 33% translates into massive energy savings for society.
Future opportunities
IoT is already a major driver of sustainability, but there is still much work to be done. The next step involves integrating IoT with AI to develop even more intelligent, self-optimizing systems. Future IoT systems will not only measure and analyze data but also act proactively—optimizing resources in real-time without human intervention. As IoT continues to evolve, it will have an even greater impact on sustainability goals and become more tightly connected to the circular economy.
Challenges and balance
Despite IoT’s potential, we must also acknowledge its challenges. Manufacturing IoT devices requires energy and raw materials, and the increasing volume of electronics risks contributing to e-waste if solutions don’t reach their full potential. It’s about producing technology that truly benefits humanity.
The vast amounts of data collected by IoT systems also come with energy costs for storage and processing. IoT must be designed for maximum efficiency, minimizing data generation—perhaps through smarter algorithms within IoT devices. AI could help, but if AI’s energy consumption outweighs its benefits, it could have a negative environmental impact.
I would love to see more devices powered by energy harvesting—solar panels, ambient light charging, and so on. Too many devices still rely on primary batteries that need disposal after 8–10 years, which is inefficient for long-term sustainability.
From data collection to action
IoT has evolved from being a tool for efficiency and cost savings to becoming a key enabler of sustainability and climate impact reduction. From smart buildings and predictive maintenance to water conservation and waste management, IoT provides solutions that save both money and the planet. By not delaying investments, IoT can help businesses, property owners, and society take faster steps toward a greener future. If you’re interested in more inspiring examples, I recommend checking out Nature.com’s articles on how IoT is transforming agriculture, poverty reduction, and more.