Companies realize that focusing on Environmental, Social and Governance (ESG) is not only good for the planet and society, but it also benefits their bottom line.
Showing clear progress towards the achievement of ESG goals improves a company’s reputation, enhances risk management, saves costs, attracts new customers and investment, and drives long-term profitability. But how can this be most efficiently done?
IoT = ESG data
They say, “what gets measured gets managed,” which is why businesses are turning to the Internet of Things (IoT) to:
- Gather ESG-related data.
- Align their practices with these three core sustainability areas.
- Hit their ESG targets.
IoT involves the connection of physical objects (“things”) to the internet, thus allowing the objects to collect and exchange information with each other and with us. The real-time and granular data produced can be used by businesses to gain better understanding of their operations and make smarter decisions on how to improve sustainability, reduce environmental footprint, and meet ESG goals.
“Organizations are just starting to harness the full potential of IoT, and this will mean better ESG data, more robust ESG reporting and stronger outcomes.”
IoT + the E in ESG
Corporate Environmental Sustainability —or, how a company’s activities impact the environment— is a key aspect of ESG. This includes a company’s waste creation and management, carbon footprint, pollution levels, and resource consumption.
There are many examples of how IoT can be used to achieve ESG goals, including:
- Fleet management. IoT technology can be used to track fuel consumption, engine performance and to optimize the routes and the way the fleet is being used to achieve sustainability objectives easier.
- Water management. IoT systems can be used to check water consumption and flow patterns in real time, which helps detect leaks and reduce waste through immediate corrective action. Furthermore, IoT technology can help prevent water pollution by measuring, among others, levels of PH, Nitrogen, Phosphorous and oxygen.
- Soil conditions. IoT sensors can be used to oversee the properties of irrigation water, to measure the moisture and nutrient levels of the soil and to detect harmful chemical substances and heavy metals, thus helping identify and address potential environmental issues.
- Carbon footprint. IoT technology can be used to measure and monitor carbon capture, use and storage (CCUS) activities to ensure the effectiveness of their management and performance.
- Energy Efficiency. IoT systems can help businesses optimize energy based on changing day-to-day situations including occupancy levels, production periods during high-demand and weather data, thus resulting in energy savings and reduced carbon footprint.
ESG Energy Monitoring
Energy is a fundamental need of businesses and a growing opportunity area for improvement. In that sense, businesses are centering their ESG goals around programs aimed at energy efficiency.
The first step in achieving energy efficiency goals is: understanding when and how energy is consumed by the business. With this knowledge, a company can identify improvement opportunities and eventually achieve ESG annual targets across all their facilities.
With an IoT Energy Monitoring solution, energy use from multiple systems is combined into a single-source application where it can be mapped, analyzed, and visualized in real time to:
- Benchmark the energy efficiency of each business facility against each other or compare the overall performance with the average industrial standards.
- Find out which facility could improve energy efficiency the most and manage it proactively.
- Track the largest energy consumers in a facility and detect opportunities to reduce the energy used by replacing inefficient equipment or modifying operation settings.
- Seamlessly adapt to ever-changing business requirements or shifts.
IoT provides you with the path to fast-track ESG goals when data indicates the need for modifications. Needed changes can also be automated to make the process in achieving your goals easier.
The IoT solution for your ESG goals
If your sustainability or ESG goals are not being met or you are starting, IoT can be the right path forward.
With over 15 years of experience, EVALAN is a leading IoT solutions provider. Recognized among the 100 most innovative enterprises in the Netherlands and present in over 50 countries, we help clients to solve challenges and make data-driven decisions allowing them to improve efficiency, save costs and achieve sustainability goals.
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