The Environmental, Social, and Governance (ESG) framework is used by businesses to self-assess investment sustainability and societal impacts. Organisations around the world strive to achieve ESG goals to improve reputation, reduce risks, save costs, innovate, and grow – IoT is here to help them achieve this.
With IoT being an umbrella term for countless technologies and products it should come as no surprise that in some way or another IoT can be effectively utilised to enhance a business, especially with their ESG goals. IoT helps organisations to streamline their operations, reduce costs across the board, accelerate decision-making, and enhance customer experiences just to name a few.
In fact, in today’s age, you would be hard-pressed to find a company not engaging with some form of IoT. One of the greatest ways a business can move forward quickly is by upgrading legacy systems with up-to-date IoT-enabled ones, almost instantly providing companies with energy and money savings as well as improved workflows.
How IoT is helping organisations to achieve their ESG goals
A variety of IoT products and technologies can be used by businesses to reach ESG goals.
IoT sensors can be utilised in environmental monitoring to collect a large amount of highly useful data regarding factors such as air and water quality, soil conditions, or pollution outputs. From this data, organisations can take actions based on concrete evidence to predict and improve the environmental impacts of their practices.
IoT sensors or devices can also see use in other areas like energy efficiency. By using these sorts of IoT devices, businesses can monitor and then optimise energy usage throughout their organisation’s structure. This optimisation can stretch from energy usage reduction in buildings or factories all the way to internal and external transportation. Successfully acknowledging and tackling energy efficiency issues using IoT technology can positively impact an organisation’s environmental and governance concerns as a part of ESG.
As mentioned previously, the transportation of goods internally or externally can also be improved via the use of IoT by providing a more sustainable supply chain model. IoT can be used in a multitude of ways to improve a business’s supply chain from tracking to analysis. Better tracking of the transportation of goods can unlock a world of transparency which can enable better efficiency and future analysis options. Beyond just this, a better analysis of the supply chain and its management using IoT can highlight potential environmental issues regarding the sourcing and fulfilment of products.
IoT monitoring technology can also be used to enhance one of the most crucial parts of any organisation, its social responsibility to its workforce. By utilising IoT to monitor working conditions a business can ensure that they are not only simply complying with labour laws and human rights standards but going that extra mile to provide a more productive and pleasant working environment.
Some examples of IoT x ESG initiatives
Transportation is probably the best and most widely IoT-influenced example of how IoT can be used to solve ESG concerns. The transportation sector has seen immense benefits that have stemmed from IoT technology. These include the optimisation of scheduling, routes, and methods, as well as improved monitoring of fleets to enhance transportation timing and efficiency. All these combined result in a transportation system with increased efficiency and working conditions whilst also reducing emissions.
Smart management is another rapidly growing industry utilising the latest and greatest of IoT that can help reach ESG goals. The implementation of AI to improve efficiency or the creation of smart factories and workspaces are two prime examples of this. Smart buildings, for example, can be used to improve a multitude of areas within a business such as reducing waste, optimising energy usage, maintaining temperatures, monitoring hazards, and guiding employees.
Indoor air quality (IAQ) monitoring is another ESG initiative gaining traction that aims to improve the environmental conditions we spend our time in. By using IoT IAQ monitoring systems organisations can make sure the work environments they offer are healthy ones, especially for those more vulnerable. Given not-so-distant major events such as the COVID-19 pandemic, air quality has never been a more relevant concern. IAQ monitoring can offer a reduction in the risk of airborne viruses, increase cognitive performance, reduce energy costs, and make a more pleasant working environment overall.
Final thoughts
To make an ending note, IoT technology can be and is being greatly utilised to help businesses around the globe to achieve ESG goals top-to-bottom. This article only scratches the very surface of all the different ways IoT can enhance an organisation’s environmental, social, and governance operation.
There’s also plenty of other environmental editorial at IoT Insider’s sister publication, Electronic Specifier. And you can always add to the discussion at our comments section below or on our LinkedIn page here.