The Internet of Things (IoT) is expected to transform the way we live, work, and learn. Using IoT could thus be a game-changer for municipalities towards sustainability. The Swedish municipality of Södertälje strives to develop IoT concepts and use open data for a sustainable and inclusive society. The goal of this study was to explore how IoT can enable route optimization and placement planning for increased operational efficiency. The goal was also to enhance the knowledge of the environmental and social benefits of IoT systems in the waste collection system in Södertälje. The analysis is based on Life Cycle Assessment (LCA) and interviews. The results show a minor climate change impact for the IoT solutions in the overall smart waste collection system. The major climate impact contributor was instead associated with the trash bags used. Additionally, the study showed that the performance of the system relies on smart planning of the operations and the transportations.