IoT: driving optimization and transparency
For years, technological innovation was seen mainly as a way to boost profitability and speed. Today, IoT sensors help optimize routes, adjust inventory in real time, and reduce delivery times. They also make it easier to maintain cold chains, reduce waste, and ensure continuous traceability of goods. These advances help reduce unnecessary trips, improving transport energy efficiency. However, this same technology also raises challenges related to energy consumption and data management.
While IoT enables better resource management, its large-scale deployment raises concerns about its own environmental footprint. Sensors, GPS trackers, and RFID devices require rare materials, energy-intensive production, and end-of-life management that remains challenging. Additionally, the constant data flow processing relies on communication infrastructures and data centers, which consume significant amounts of electricity. According to the International Energy Agency, data centers and communication networks accounted for about 1% of global electricity consumption in 2022. Without regulation, this share could double by 2030. These are critical factors to consider for anyone aiming to make IoT a true ally in the environmental transition.
Making IoT a true ally
IoT can be a key driver for more circular logistics. By enabling better tracking of reusable packaging, improving traceability of recycled materials, and optimizing reverse logistics, connectivity helps extend product lifecycles and reduce waste. Some companies now integrate smart sensors into their containers to monitor usage and prevent losses. Combined with reuse strategies, this approach could significantly lower the supply chain's carbon footprint.
Beyond optimizing logistics flows, the design of electronic devices must evolve to meet corporate social responsibility (CSR) standards. Integrating renewable energy sources, such as solar power or ambient energy harvesting, is a major step forward for powering IoT sensors. Additionally, miniaturizing components helps reduce the use of rare raw materials and lowers the environmental impact of production. Lastly, adopting eco-design principles, favoring recyclable materials and modular structures that can be easily enable disassembled and reused, is essential to aligning IoT with a circular economy approach.
Can IoT be an ally for CSR in logistics? The answer depends largely on the choice of solutions and how they are used. Poorly designed connectivity, relying on energy-intensive devices and an excessive number of sensors, could increase the sector’s environmental footprint. On the other hand, a strategic and targeted use of IoT, focused on efficiency and sustainability, can be a powerful tool to balance economic performance with environmental responsibility. For the logistics industry, already subject to regulations like the CSRD in Europe and soon the Chinese CSDS standard, the challenge in the coming years will be to identify and adopt technologies that are truly designed with sustainability in mind.