How to improve your sustainability reports with IoT data

Making sustainability measurable

Sustainability is no longer a "nice-to-have", but a must for companies. Investors, customers and regulatory requirements - above all the EU taxonomy and ESG requirements - demand transparent reporting on environmental and social aspects. But how can CO₂ emissions, energy consumption and resource efficiency be recorded precisely? This is where the Internet of Things (IoT) comes into play. With networked sensors and IoT platforms, companies can record and analyze data in real time and use it for sustainability reporting.

Challenges in the preparation of sustainability reports

The preparation of sustainability reports poses problems for many companies:

• Manual data collection: Data often has to be collected from different systems and departments.
• Data gaps: Lack of information, e.g. on the carbon footprint of production processes.
• Lack of standardization: Different calculation models for energy efficiency or CO₂ emissions.
• Regulatory requirements: The EU taxonomy and ESG requirements demand detailed environmental, social and corporate governance reports.

Without digital support, creating reports quickly becomes a lengthy process. But this is exactly where IoT technology comes in.

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How IoT improves the sustainability reporting process

1. CO₂ transparency in real time

IoT sensors can be used to monitor emissions from machines and processes in real time. Consumption of electricity, gas, water or other resources is automatically recorded and converted into CO₂ equivalents. This gives companies a clear view of their carbon footprint - transparent, precise and up-to-date.

Example:
A production plant can use IoT sensors to track the energy consumption of individual machines. The consumption data is converted into CO₂ emissions in real time via an IoT platform. This makes annual reporting in accordance with EU standards much easier.

2. energy efficiency measurement using sensor technology

IoT sensors not only monitor energy consumption, but also identify potential savings. They detect inefficient machines or unnecessary energy consumption. Thanks to these insights, companies can improve their energy efficiency, which not only reduces electricity costs but also optimizes sustainability figures.

Example:
A production plant runs continuously in standby mode, even though it is not needed at night. An IoT system detects this unnecessary consumption and suggests automatic shutdowns. This not only reduces energy costs, but also improves the company's sustainability figures.

3. resource efficiency through digital process monitoring

Resources such as raw materials, water and consumables can be monitored using IoT technology. Sensors measure the use of materials and enable precise analyses of reject rates, material waste and recycling potential. This information can be integrated directly into the sustainability report.

Example:
A company uses IoT systems to measure how much raw material is wasted during the manufacture of a product. The introduction of a digital monitoring system leads to a 10% reduction in the scrap rate. This progress can be verified with reliable data in the sustainability report.

How IoT meets the EU's ESG requirements

The EU taxonomy requires companies to provide detailed sustainability information that goes far beyond energy consumption. Companies must state how "green" their production processes and products are.
Thanks to IoT technology, it is possible to automate extensive ESG data. Companies no longer have to rely on manual spreadsheets or estimates.

This is how IoT supports ESG reporting:

• Environment (E - Environmental): Recording of energy consumption, emissions, waste management, recycling rates.
• Social (S - Social): Proof of occupational safety measures by monitoring dangerous machinery.
• Corporate governance (G - Governance): Automated reports promote transparency, making compliance with regulatory requirements verifiable.

Conclusion: Taking sustainability reports to the next level with IoT data

IoT technology is revolutionizing the way companies create their sustainability reports. It transforms manual data collection into an automated process that collects and comprehensively analyzes data in real time. CO₂ transparency, energy and resource efficiency are no longer estimates, but measurable key figures that can be substantiated with IoT data.

With a clear view of their emissions and resource use, companies can not only meet the requirements of the EU taxonomy, but also increase their competitiveness. Investors and customers are increasingly demanding clear, robust sustainability reports. IoT is the key to automating reporting, achieving ESG targets and securing competitive advantages.

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About cap-on

cap-on is a FinTech company founded in 2021 with a focus on industrial Asset-as-a-Service (AaaS) solutions. With innovative IoT solutions, cap-on supports companies in the automation of processes and the collection of ESG-relevant data. Using networked IoT sensors, a central cloud platform and advanced analytics, cap-on enables precise monitoring of CO₂ emissions, energy and resource efficiency.

Thanks to cap-on's end-to-end solution, companies can automate their sustainability reporting, meet EU ESG requirements and continuously improve their production processes. Use the full potential of IoT data to achieve your ESG goals and position your company more sustainably.