What will it take for industry to achieve net zero?

Swedish manufacturing companies have ambitious net-zero targets and see clear long-term competitive advantages in the transition. However, progress is being hampered by weak demand and political uncertainty. These are among the findings of a new report from Net Zero Industry, which was presented and discussed at a seminar on 3 November.

How ready is Swedish manufacturing industry to achieve net zero by 2040? This was the central question when Net Zero Industry brought together industry representatives to discuss the findings of its new report, The Swedish Manufacturing Industry’s Path to Net Zero 2040.

The report shows that 62 per cent of companies have set targets to achieve net-zero emissions by 2040, while three in four have strategies or action plans in place to reduce their emissions. As many as eight in ten see the transition as a competitive advantage in the longer term, but significantly fewer recognise similar benefits in the short term.

At the same time, companies highlight several barriers. A lack of predictability in climate and energy policy, alongside weak demand and limited willingness to pay for products with a lower carbon footprint, are among the greatest challenges.

What is needed to accelerate progress?

During the seminar, Jonas Hellman, Senior Adviser at Geelmuyden Kiese, presented the report’s key findings. This was followed by a discussion moderated by Sofia Wieselfors, Programme Director at Net Zero Industry, with Maria Rosendahl, Director of Industrial Policy at Teknikföretagen, Peter Bryntesson, CEO of FKG, and Åsa Granli, Head of Marketing and Sales, Nordics at ABB. The discussion focused on what the findings mean for the industry’s continued transition and competitiveness.

– I recognise much of what the report describes. The ambition is high, but progress is slow. I don’t believe the way forward is for large companies to lower their ambitions. Instead, we should be driving the transition and taking responsibility, including by working with our suppliers to find solutions to reduce emissions. When large companies take a more active approach to Scope 3 emissions, suppliers that are leading the way in the transition also gain a competitive advantage, says Åsa Granli, Head of Marketing and Sales, Nordics at ABB.

However, the conditions for the transition vary depending on company size.

– There is a significant difference between large and small companies. Small and medium-sized enterprises often have a planning horizon of no more than six months. This means that the transition must also make business sense in the short term. I believe there may now be an opportunity for companies to place even greater emphasis on sustainability as trade in many areas shifts from global to more regional markets, says Peter Bryntesson, CEO of FKG.

All speakers agreed that a stable, long-term climate policy would make the transition easier for companies of all sizes.

Read the report: The Swedish Manufacturing Industry’s Path to Net Zero 2040

Watch the recording here: