I've been working 100% remotely for a large company for a year and a half now. They shut down our office (and a bunch of others) to save money on real estate, but with software like Microsoft Teams (and I'm sure there are just as good alternatives, but this has a solid mobile app and Outlook integration, so it's pretty enterprise-friendly), it's not that hard to do.
We also VPN to the same network that we were on when we still had an office, so I still have access to everything we had and can remote into our other servers as needed, just as I could when I was at the office.
Obviously the environment is not a big factor to a lot of these companies, despite the lip service they may pay to it, but perhaps the government could provide incentives to facilitate the transition for several companies?
It really doesn't help that several of the biggest tech companies, which should be a model for how other companies could use tech for this benefit, have gone anti-remote in recent years though. I think that's shown other companies "Well it doesn't work for them, so it can't work for us." and has done a lot of harm as well.