Why nature is becoming a strategic issue for the industry’s transition

The industry’s transition to net zero is not just about reducing emissions. A report from the Confederation of Swedish Enterprise shows that nature-related risks such as water scarcity, extreme weather, and biodiversity loss can have far-reaching consequences for production, energy supply, and global supply chains. For Swedish industry, resilience is therefore becoming an increasingly important part of competitiveness.

For a long time, companies have been able to rely on relatively stable natural and climatic conditions. But that is changing. According to the Confederation of Swedish Enterprise, approximately 75 percent of European companies are directly or indirectly dependent on nature and its ecosystem services, while more than half of the world’s GDP is linked to functioning ecosystems. For industry, this involves access to raw materials, water, energy, and transportation, as well as functioning supply chains and stable markets.

At the same time, the risks are increasing. The World Economic Forum estimates that environmental risks will be the most likely and serious threats to the global economy over the next ten years. Extreme weather events are ranked as the greatest global risk, followed by biodiversity loss and ecosystem collapse.

– Natural hazards are complex issues that affect entire systems, from raw materials and energy to global value chains. “The report is an important contribution to understanding how climate transition, natural resources, and industrial competitiveness are interconnected, and it is valuable that the Confederation of Swedish Enterprise highlights both the challenges and opportunities in a broad and knowledge-based way, says Sofia Wieselfors, program director for Net Zero Industry.

Resource efficiency strengthens both the climate and competitiveness

The report highlights that global demand for energy and materials is increasing as a result of population growth, urbanization, and technological development. Since 1970, global resource extraction has increased by about 400 percent and is expected to rise by another 60 percent by 2060. As dependence on natural resources and ecosystems grows, nature is under increasing strain, which risks having significant consequences for supply, the economy, and competitiveness. This makes resource efficiency and secure access to materials increasingly important for Swedish industry.

– Companies that succeed in creating more value with fewer materials will not only reduce their carbon footprint but also emerge stronger as the world becomes more uncertain, says Sofia Wieselfors.

Innovation Is Key to Resilience

The report also highlights innovation as a crucial factor in building resilient industrial systems. New materials, digital tools, circular business models, and smarter production processes can reduce both resource consumption and risk exposure.

At the same time, it is not enough to simply optimize one’s own operations. Risks spread throughout entire value chains, making collaboration between companies, research organizations, and the public sector increasingly important.

– No single company can solve many of the challenges facing the industry on its own. That is why we need innovation partnerships that strengthen entire systems – from raw material supply and energy systems to new circular business models, says Sofia Wieselfors.

>> Read the full report on the Confederation of Swedish Enterprise’s website (only in Swedish)