Digitalization and sustainability go hand in hand

Sustainability leaders harness the power of digital transformation

Digitalization and sustainability are closely intertwined. Our latest Future of Enterprise report, based on a survey of 4,500 decision-makers and an equal number of employees within companies across 15 markets, reveals a strong link between sustainability, financial success, and digital transformation.

The data indicates that companies excelling in sustainability are both more financially successful and better at attracting top talent. Sustainability front-runners, the top third of companies with the highest sustainability maturity, are also leading the way in making the most of digital opportunities.

• Investing in digital use-cases: The share of sustainability frontrunner companies investing heavily in digital use cases is more than 4 times higher than their sustainability laggard counterparts.
• Recognizing the value of mobile connectivity: 92% of sustainability front-runners say mobile connectivity creates value for their business, versus 37% of laggards.
• 5G driving innovation: 95% of sustainability front-runners view 5G as a catalyst for innovation, compared to 41% of laggards.

This research demonstrates that sustainability front-runners also tend to be technology front-runners, with ICT technology in general – and 5G in particular – playing a key role in driving both business success and sustainability.

Our research and partnerships have highlighted numerous ways in which 5G can enhance sustainability. This includes enabling decarbonization, reducing environmental impacts and improving conditions for employees. Below are some of the benefits that mobile connectivity offers:

For organizations with numerous vehicles and field workers, 5G provides widespread real-time access to corporate resources. For instance, while collaborating with a European law enforcement agency, we observed that switching to secure 5G connectivity allowed vehicles to transmit data on the go without returning to base, saving both fuel and time. This access to updated information for both field officers and central teams enhanced employee safety by improving coordination and enabling better decision-making based on accurate information.

Mobile connectivity also enables remote monitoring of vehicle performance. In collaboration with automotive technology supplier ZF, Ericsson explored use cases using IoT sensors on trucks and trailers. This allowed for proactive maintenance, preventing breakdowns, and improving fuel efficiency by 17% through tire pressure optimization.

5G allowed vehicles to transmit data in real time without returning to base, saving both fuel and time.

The need for flexible, hybrid work solutions has become essential for modern businesses. A wireless WAN utilizing a mobile network and cloud security addresses this by enabling employees to access critical company resources and collaborate from anywhere. This setup enables employees to work on the go and choose the most suitable locations for their tasks, in line with company policy, thereby enhancing productivity. By minimizing the need for commuting and business travel, remote work can also lessen environmental impact.

Mobile connectivity is particularly vital in areas with limited or unreliable fixed broadband access or for work on the go. Reliable, high-speed mobile connectivity can also promote low-carbon travel options. For instance, 5G-enabled rail corridors offer a compelling alternative to short-haul flights, encouraging more travelers to choose rail.

5G-enabled rail corridors offer a compelling alternative to short-haul flights, encouraging more travelers to choose rail.

Buildings account for 34% of global energy demand (UN Environment Programme & Global Alliance for Buildings and Construction), making energy efficiency a crucial focus for optimizing resource use. To address this challenge, Ericsson collaborated with building management solution provider Kiona to study how AI and wireless connectivity can drive improvements. The study examined 356 residential buildings in Finland and Sweden, where connected sensors monitored indoor temperature and humidity. Using this data, an AI platform predicted future heating energy needs and adjusted the systems accordingly, achieving an average 7% reduction in electricity consumption and a 6% decrease in CO2e emissions.

Resulting in an average reduction of 7% in electricity consumption and a 6% decrease in CO2e emissions

Since the study, the initiative has scaled to over 7,000 buildings, demonstrating that connectivity is both scalable and quick to install. This solution can be operational within hours, providing an efficient alternative to traditional energy-saving methods, such as upgrading insulation.

A partnership between Ericsson and a global fashion retailer demonstrated that mobile connectivity improves supply chain management by enabling real-time tracking of inventory across stores, warehouses, and distribution centers. This ensures timely delivery of the right stock, reducing unnecessary shipments. 

Mobile connectivity also plays a crucial role in enhancing traceability throughout the entire distribution process. DeltaTrak, a company specializing in cold chain monitoring for industries like food, vaccines, and pharmaceuticals, leveraged IoT sensors that can be tracked and traced globally in real time through a collaboration with Ericsson and Deutsche Telekom. This ensured cold chain integrity is maintained, helping to prevent waste.

Real-time tracking of inventory ensures timely delivery of the right stock, reducing unnecessary shipments.

Ericsson has long collaborated with Swedish mining company Boliden to leverage 5G in one of the most challenging environments: a mine. A private LTE network has allowed Boliden to remotely monitor and automate key operations. For example, drilling and blasting have been automated, removing workers from hazardous situations and enabling them to control processes from a safe location, greatly improving safety. Remote monitoring also enables proactive equipment maintenance, helping to prevent unnecessary breakdowns.

Through remote monitoring and automation workers can be removed from hazardous situations.

Real-time monitoring through 5G can also drive savings in less challenging environments. A research project at Italy’s Port of Livorno demonstrated the benefits of instant information sharing among stakeholders. This improved coordination reduced unnecessary movements during cargo handling, leading to a 24% reduction in CO2e emissions.

Ericsson has a long-standing commitment to sustainability, earning recognition as one of the world’s most sustainable companies by Corporate Knights. Through our experience, we have seen firsthand how digitalization, connectivity and sustainability are closely intertwined. It's not just about adopting new technologies, but about rethinking how we work and finding more effective ways to achieve better outcomes.

To make the most of these opportunities, we’ve identified three key steps based on our experience:

1. Integrated in business strategy. Sustainability and digitalization should be core priorities, driven by leadership and embedded in your company culture.
2. Monitor progress. Use reliable data to evaluate your efforts and measure the real impact of your changes.
3. Interconnected operations and value chains. Facilitate seamless information flow within your operational systems and across value chains and ecosystems to enable more efficient resource utilization.