IoT: Unlocking Increased Sustainability

Fujitsu / May 20, 2025

AI Digital Transformation Global Responsible Business

With Increasing levels of environmental awareness, we have seen both governments and organizations increasingly committing to enhancing their sustainability and to achieve Net-Zero emissions targets. The Internet of Things (IoT) when combined with AI is increasingly seen as playing a key role in enabling organizations to become more sustainable and helping them achieve their sustainability commitments.

Understanding IoT and its Sustainability Impacts
IoT and Energy Efficiency
Waste Reduction and Resource Management
Enabling Circular Economies
Challenges and considerations
Conclusion

Understanding IoT and its Sustainability Impacts

The Internet of Things or IoT refers to the network of physical devices embedded with sensors, software, and other technologies to connect and exchange data with other devices and systems over the internet. The applications of IoT range widely, from smart thermostats in homes to sophisticated monitoring systems in large industrial facilities. With its ability to facilitate real-time insights and optimize processes, IoT has emerged as a critical tool in achieving sustainability goals, particularly in the context of reducing energy consumption, minimizing waste, and enhancing resource efficiency.

In 2020, the International Energy Agency (IEA) identified digital technologies, including IoT, as crucial enablers of the energy transition. By embedding sensors in key infrastructure such as buildings, vehicles, and energy grids, IoT devices can provide granular data that help monitor and optimize energy usage, identify inefficiencies, and implement corrective actions. Such capabilities are critical to curbing the global rise in energy demand and emissions while also increasing the efficiency of renewable energy sources.

IoT and Energy Efficiency

One of the most immediate ways IoT contributes to sustainability is through improved energy efficiency. Across industries, energy consumption is a major driver of both cost and environmental impact. IoT enables organizations to monitor and manage their energy usage in real time, allowing for rapid adjustments to reduce waste and enhance efficiency.

For example, in the manufacturing sector, IoT sensors can track equipment performance and detect anomalies that may indicate inefficiencies or malfunctions. Rather than relying on periodic inspections, manufacturers can use predictive maintenance, enabled by IoT, to ensure machinery operates at optimal efficiency. This approach can lead to significant reductions in energy consumption, lower operational costs, and longer equipment lifespans, all contributing to sustainability.

Similarly, in commercial buildings, IoT enabled smart systems can control lighting, heating, ventilation, and air conditioning (HVAC) systems based on real-time occupancy data. These systems reduce energy consumption by automatically adjusting to the needs of the building’s occupants, such as dimming lights in unused rooms or optimizing HVAC settings to balance comfort with efficiency. According to a report from McKinsey, smart building technologies have the potential to reduce energy consumption by up to 20%.

The benefits of IoT are particularly relevant to the energy grid itself. As renewable energy sources like wind and solar become more prevalent, the inherent variability of these sources presents a challenge to maintaining a stable energy supply. IoT devices can play a key role in balancing supply and demand on the grid by enabling smart metering, demand response, and energy storage solutions. By integrating these systems, grid operators can better forecast energy needs, optimize energy flows, and reduce reliance on fossil fuel-based backup power.

Waste Reduction and Resource Management

Beyond energy efficiency, IoT also plays a critical role in minimizing waste and optimizing resource use, both of which are central to sustainability and achieving Net Zero targets. In industries such as agriculture, logistics, and waste management, IoT is being used to monitor resource use, track emissions, and reduce inefficiencies.

In agriculture, for instance, IoT sensors are deployed to monitor soil conditions, weather patterns, and crop health. This data allows farmers to make data-driven decisions about irrigation, fertilization, and pest control, reducing the use of water, chemicals, and other inputs. By using resources more efficiently, farmers can improve crop yields while minimizing environmental impact. The World Economic Forum estimates that precision agriculture, enabled by IoT, can reduce water usage by up to 30% and fertilizer use by up to 25%, significantly lowering the carbon footprint of farming operations.

In the logistics and supply chain sectors, IoT tracking devices allow companies to monitor the movement of goods in real time. By optimizing routes, reducing idle times, and improving fleet management, companies can reduce fuel consumption and emissions. Furthermore, IoT sensors in warehouses can help monitor inventory levels and storage conditions, ensuring that perishable goods are stored correctly and reducing food waste.

Waste management is another area where IoT is driving sustainability gains. Smart waste bins equipped with sensors can track fill levels, enabling waste collection services to optimize their routes and schedules. This reduces fuel consumption and emissions from collection vehicles, while also ensuring that waste is collected more efficiently. Moreover, IoT-enabled recycling systems can help sort and process waste more effectively, reducing the volume of materials sent to landfills and promoting a circular economy.

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Enabling Circular Economies

The concept of a circular economy is gaining momentum as a key strategy for achieving sustainability and reducing environmental impact. A circular economy focuses on designing out waste, keeping products and materials in use for as long as possible, and regenerating natural systems. IoT plays a critical role in enabling this shift by providing the data and insights needed to extend the life of products, improve resource recovery, and optimize recycling processes.

In manufacturing, IoT-enabled asset tracking and condition monitoring allow companies to implement more effective maintenance and repair strategies, extending the lifespan of machinery and equipment. Additionally, IoT can support product-as-a-service models, where companies retain ownership of their products and offer them to customers on a subscription basis. By continuously monitoring product usage and performance, companies can ensure that products are used more efficiently, reducing the need for frequent replacements, and promoting a more sustainable consumption model.

IoT is also essential in waste tracking and resource recovery efforts. In a circular economy, materials that would traditionally be discarded are recovered, recycled, and reused. IoT sensors can track the flow of materials throughout the supply chain, ensuring that valuable resources are captured and redirected for reuse rather than ending up in landfills. For example, in the electronics industry, IoT enabled devices can monitor the composition of e-waste, facilitating more effective recycling and recovery of precious metals and other valuable materials.

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Challenges and Considerations

While IoT holds tremendous potential for driving sustainability and achieving Net Zero, several challenges must be addressed to fully realize its benefits. One significant concern is the energy consumption of IoT devices themselves. As the number of connected devices continues to grow, an estimated 30 billion devices are expected to be in use by 2030, and the cumulative energy demand of these devices could become a concern. To mitigate this issue, advancements in low-power IoT technologies and energy-harvesting solutions will become increasingly important.

The upfront costs of implementing IoT solutions can also be a barrier for some organizations, particularly smaller businesses. However, as IoT technologies continue to mature and economies of scale drive down costs, the financial and environmental benefits of IoT are expected to outweigh the initial investment.

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Conclusion

The Internet of Things represents a powerful technology in the global effort to increase sustainability and achieve Net Zero. By enabling real-time monitoring, optimization, and control of energy usage, resource management, and waste reduction, IoT is driving efficiency gains across industries. Its ability to integrate with renewable energy systems, support circular economy initiatives, and provide valuable insights into environmental performance positions IoT as a critical enabler of the sustainability transition.

So, why not talk to Fujitsu and find out how we can help you harness the power of IoT to enhance your sustainably?

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Nick Cowell

Principal Consultant & Fujitsu Distinguished Engineer / Technology Strategy Unit/ Fujitsu

Nick is a technologist and futurist with extensive experience in hardware, software, and service development, having previously worked for leading technology providers across the USA, Europe, and Oceania.