Sustainable Tech or Greenwashing? The IoT Industry’s E-Waste Reckoning
The Internet of Things (IoT) has become a defining feature of the modern digital economy, embedding smart devices into offices, factories and homes across Europe and the world. While the promise of interconnected devices is efficiency and innovation, the rapid proliferation of IoT has precipitated a mounting environmental crisis: electronic waste, or e-waste. The challenge for the tech industry is no longer simply to innovate, but to do so sustainably, ensuring that the benefits of connectivity do not come at the expense of the planet.
The scale of the problem is daunting. According to the Global E-Waste Monitor 2024, only 22.3% of e-waste in the European Union is properly collected and recycled, leaving the vast majority to contribute to pollution and resource depletion. The EU’s Circular Economy Action Plan and the forthcoming Ecodesign Regulation, effective from 2025, aim to address these challenges by imposing robust requirements on product design, repairability and recyclability. Under the new rules, connected devices must receive software updates for at least seven years, feature standardised repairability scores and meet high recyclability thresholds. These measures are designed to extend device lifespans, reduce waste and promote a circular economy in which materials are reused rather than discarded.
Legacy manufacturers face significant hurdles in meeting these new standards. Siemens Energy’s recent recall of 400,000 non-compliant building sensors is a case in point, illustrating the difficulties of retrofitting existing product lines to comply with evolving regulations. Meanwhile, innovative startups such as FairCircular are pioneering biodegradable smart sensors, demonstrating that sustainability and technological advancement can coexist. The Circular WEEE Platform, launched to enhance the collection and recycling of e-waste across Europe, provides a user-friendly online tool for coordinating waste management, connecting producers, collectors and recyclers and fostering the principles of a circular economy.
Supply chain transparency is another critical frontier. The Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to audit their suppliers’ environmental practices rigorously, ensuring that sustainability is embedded throughout the value chain. Apple’s 2025 audit revealed that 61% of its Asian component suppliers failed to meet mineral sourcing standards, prompting a €23 billion overhaul of its supply chain. Such revelations underscore the need for robust due diligence and the risks of superficial “greenwashing” claims.
Innovative solutions are emerging to tackle these issues. Helsinki’s CircularID consortium employs blockchain technology to track device components throughout their lifecycle, enhancing accountability and facilitating recycling. In Barcelona, the GreenTech Hub retrains former oil industry workers in e-waste recycling, exemplifying how sustainability initiatives can also drive social impact. Urban mining, the recovery of valuable materials from discarded electronics, is gaining traction as a strategy for reducing resource exploitation and supporting the circular economy.
As environmental concerns become central to corporate strategy, companies must move beyond superficial claims and demonstrate measurable progress in sustainability. The IoT industry’s ability to deliver on circular economy promises will be a litmus test for responsible technology in the coming decade. The stakes are high: the world generated 62 million tonnes of e-waste in 2022, with projections reaching 82 million tonnes by 2030 if current trends continue. For technology companies, the message is clear: sustainability is no longer optional and those who lead on this front will define the future of responsible innovation.
References:
European Commission: Circular Economy Action Plan
ENISA: Guidelines for Securing the Internet of Things
University of Manchester: Centre for Data Science and AI
Circular WEEE Platform
Corporate Sustainability Due Diligence Directive (CSDDD)
Waste from Electrical and Electronic Equipment (WEEE) – European Commission