Digitalization and Sustainability: How Sandvik Leads the Way

September 3, 2025

The future of sustainability is inextricably linked to digitalization, according to a recent discussion featuring Filip ivarsson, Sustainability Officer at Sandvik. Ivarsson emphasized that achieving genuine sustainability hinges on embracing digital technologies – and that reliable data forms the foundation of this shift.

The Scope of Sustainable Impact

Sandvik’s internal operations account for a surprisingly small portion – approximately two percent – of its total emissions. The vast majority, around two-thirds, stems from customers’ utilization of sandvik products, while an additional one-third arises from suppliers.This highlights a critical truth: a ample impact lies beyond direct control and necessitates a collaborative, external focus.

“Sustainable progress at Sandvik begins with empowering our customers,” Ivarsson stated. “We must facilitate their transition by providing innovative,sustainable solutions.”

Data as the New currency

Digitalization is acutely dependent on access to trustworthy data, a need that is growing more urgent as regulations like the European Union’s Corporate Sustainability Reporting Directive (CSRD) gain traction.These regulations, alongside mounting pressure from investors, demand verifiable evidence of sustainability efforts.

“The industry frequently relies on estimations and assumptions rather then concrete data,” Ivarsson observed.”We require enhanced access to real-time data, increased automation in data collection, improved predictive analytics, and stronger cross-industry collaboration.”

To address this need, Sandvik is participating in massive Plus, an initiative alongside Volvo, SKF, LKAB, IKEA, and Microsoft. This collaboration is focused on constructing a unified digital platform for emissions data, moving away from estimations and toward obvious, standardized reporting across entire supply chains.

Key Industry Collaborations for Data Transparency

Collaboration	Focus
Massive Plus	Standardized Emissions Data Reporting

Innovation Through Digitalization

digitalization is also sparking innovation in other areas. Sandvik is utilizing QR codes to assign digital identities to its machining tools, which allows the company to track their complete lifecycle. this capability supports reconditioning, recycling, and the development of novel business models.

“These digital IDs enable us to monitor tools throughout their entire lifespan and refurbish them rather of manufacturing new ones,” Ivarsson explained. “This also enables new business models like leasing, where maintaining ownership throughout the tool’s life cycle incentivizes extended use, leading to improved cost efficiency and enhanced sustainability.”

Artificial Intelligence (AI) is also playing a crucial role, especially in sectors like mining, machining, and manufacturing.

“By analyzing data from mining operations and machinery, we can provide informed recommendations to customers regarding equipment maintenance and efficient usage. Integrating these analytics and AI capabilities frequently enough results in substantial – frequently double-digit – productivity gains,” Ivarsson noted.

Did You know? According to a recent report by McKinsey, companies that invest in digital sustainability solutions are 2.5 times more likely to achieve their sustainability goals.

Future Outlook

Ivarsson emphatically believes that “Digitalization is not merely an enabler of sustainability transformation; it is indeed integral to the process. access to secure data sharing and high-quality information will unlock solutions where sustainability and profitability can coexist and flourish.”

Will digitalization truly be the key to a sustainable future? How can businesses effectively collaborate to achieve transparent and verifiable sustainability results?

The Rising Importance of ESG Reporting

Environmental, Social, and Governance (ESG) reporting is rapidly becoming a standard requirement for businesses worldwide. Investors and stakeholders are increasingly scrutinizing companies’ sustainability performance, making data-driven reporting essential for maintaining a positive reputation and attracting capital.

The trend towards ESG integration is expected to continue, with stringent regulations and increased transparency demands. Companies that proactively embrace digitalization and invest in robust data collection and analysis will be best positioned to succeed in this evolving landscape.

Frequently Asked Questions about Digitalization and Sustainability

• What role dose digitalization play in sustainability? Digitalization enables data-driven decision-making, improves resource efficiency, and facilitates transparency in sustainability efforts.
• What is the Corporate Sustainability Reporting Directive (CSRD)? The CSRD is an EU directive that sets stricter reporting requirements for companies on their environmental and social impact.
• Why is data quality crucial for sustainability? Accurate and reliable data is crucial for measuring progress, identifying areas for advancement, and demonstrating accountability.
• How can AI contribute to sustainable practices? AI can optimize processes, predict maintenance needs, and improve resource allocation, leading to significant sustainability gains.
• What are the benefits of digital product IDs for sustainability? Digital IDs enable traceability, facilitate refurbishment and recycling, and support circular economy models.
• What is the Massive Plus initiative focused on? Massive Plus aims to create a shared digital platform for transparent and standardized emissions data reporting across value chains.
• How can companies leverage digitalization for ESG reporting? By implementing digital tools for data collection, analysis, and reporting, companies can streamline ESG reporting and demonstrate their commitment to sustainability.

Share your thoughts on the role of technology in driving sustainability in the comments below!

How does Sandvik leverage IoT connectivity too minimize travel-related emissions and support faster equipment troubleshooting?

The Convergence of Digital Technologies and Environmental Duty

Sandvik has positioned itself as a frontrunner in demonstrating how digitalization can be a powerful engine for sustainability within heavy industries. This isn’t simply about adopting new technologies; it’s a fundamental shift in how resources are managed, processes are optimized, and value is created – all while minimizing environmental impact. The core of Sandvik’s approach lies in leveraging data, automation, and connectivity to drive resource efficiency, reduce waste, and promote a circular economy.

Sandvik’s Digital Solutions for a Sustainable Future

Sandvik’s commitment extends across its diverse portfolio, impacting sectors like mining, construction, manufacturing, and materials technology. Here’s a breakdown of key areas:

My Sandvik: This digital platform serves as a central hub for customers, offering real-time machine data, predictive maintenance insights, and remote support. By optimizing equipment performance and extending its lifespan, My Sandvik directly contributes to reduced consumption of materials and energy.

Automated Drilling & Excavation: Sandvik’s automated solutions, notably in mining, significantly improve precision and efficiency. This translates to:

Reduced fuel consumption.

Lower emissions.

Minimized waste rock excavation.

Improved worker safety.

Digital Twin Technology: Creating virtual replicas of physical assets allows Sandvik and its customers to simulate scenarios, optimize processes, and identify potential issues before they occur. This proactive approach minimizes downtime, reduces material waste, and enhances overall operational sustainability.

Sensor-Based Solutions: Integrating advanced sensors into equipment provides a constant stream of data on performance, wear, and environmental conditions. This data is then analyzed to optimize operations and predict maintenance needs, leading to proactive maintenance and extended equipment life.

Sandvik Materials Technology’s Digital Offerings: Beyond equipment,Sandvik’s materials technology division utilizes digital tools for alloy design and process optimization,leading to more durable and efficient materials,reducing the need for frequent replacements.

Optimizing Resource Management with Data Analytics

A cornerstone of Sandvik’s sustainability strategy is the clever use of data. Data analytics plays a crucial role in:

Predictive Maintenance: Identifying potential equipment failures before they happen minimizes unplanned downtime, reduces the need for spare parts (and their associated environmental impact), and extends the lifespan of valuable assets. This is a key component of sustainable operations.

Energy Optimization: Analyzing energy consumption patterns allows Sandvik and its customers to identify areas for advancement, reducing energy waste and lowering carbon footprints. This includes optimizing machine settings and implementing energy-efficient operating procedures.

Waste Reduction: Data-driven insights help identify sources of waste in processes, enabling targeted interventions to minimize material loss and improve resource utilization. This supports the principles of a circular economy.

Supply Chain Transparency: Utilizing digital tools to track materials throughout the supply chain enhances transparency and allows for more responsible sourcing decisions. This is increasingly crucial for meeting ESG (Environmental, Social, and Governance) criteria.

Case Study: Automated Mining and Reduced Environmental Impact

In several large-scale mining operations, Sandvik’s automated drilling systems have demonstrably reduced environmental impact. Such as, at a copper mine in chile, the implementation of Sandvik’s AutoDrill system resulted in a 15% reduction in fuel consumption and a 10% decrease in drilling cycle time. This translates to critically important reductions in greenhouse gas emissions and a lower overall environmental footprint. The increased precision also minimized waste rock excavation, further enhancing sustainability. (Source: Sandvik Sustainability Report 2023).

The Role of Connectivity and IoT in Sustainable Practices

The Internet of Things (IoT) is integral to Sandvik’s digitalization strategy. Connecting equipment and systems allows for:

Real-time Monitoring: Continuous monitoring of equipment performance and environmental conditions provides valuable insights for optimization.

Remote diagnostics & Support: Remote access to equipment data enables faster troubleshooting and reduces the need for on-site visits,minimizing travel-related emissions.

Over-the-Air Updates: Software updates can be deployed remotely, improving equipment performance and adding new features without requiring physical intervention.

Collaborative data Sharing: Securely sharing data with customers and partners fosters collaboration and enables the growth of more sustainable solutions.

Sandvik’s Commitment to Circularity

Sandvik actively promotes circular economy principles through:

Remanufacturing: Extending the life of components through remanufacturing reduces the demand for new materials and minimizes waste. Sandvik has established robust remanufacturing programs for many of its products.

* Parts as a Service: Offering