This article has been translated with DeepL.
NEW RESEARCH | How to achieve a smooth sustainability transition
- Published: 10 Dec 2024,
- 3:15 PM
- Updated: 10 Dec 2024,
- 10:25 AM
Investing in green and circular innovations drives business benefits. But the path to sustainable business is often fraught with uncertainty and risk. So how do you overcome the biggest obstacles?
Many companies have now understood the importance of keeping up with the sustainability transition. Not least to be able to compete with others. Andrey Abadzhiev, Karlstad University, has in his doctoral thesis studied how Swedish companies can work with sustainability transitions and implement green and circular innovations.
– I have followed a number of Swedish construction companies that have invested in innovations that enable the use of wood in high-rise buildings instead of concrete and steel. This is to reduce the carbon footprint. The results can be generalized and also apply to other contexts, he explains.
Cooperation and knowledge sharing
The main reasons why companies choose to invest in sustainable innovations are to improve operational efficiency and to enter new markets.
– For many, the environmental aspect is not the main focus of a transition. Instead, they are driven by cost savings and new business opportunities.
At the same time, new markets and technologies bring uncertainties and risks, which can make companies hesitate to invest in sustainable solutions. Lack of knowledge is another common barrier that can hinder progress.
– That’s why it’s crucial to collaborate with actors from the entire value chain, from material manufacturers to architects and contractors in the construction industry, for example. This allows companies to share their risks and increase their capacity to implement sustainable solutions, says Andrey Abadzhiev.
Keys to sustainability integration
To succeed in sustainability transitions, the study has identified three key aspects that companies can work on.
– First, business models need to be developed that combine economic and sustainability values, and are relevant to multiple stakeholders, including customers and partners.
Furthermore, organizations need to continuously develop their skills to meet changing market demands and sustainability goals. And finally, knowledge needs to be translated into concrete actions and working methods.
– For example, companies can create internal training programs and strategies to ensure that sustainability permeates the entire business, from strategic planning to day-to-day operations, says Andrey Abadzhiev.
Contact andrey.abadzhiev@kau.se
Advice for policy makers
To support businesses’ transitions, policy makers need:
- Promote long-term visions for sustainability that are shared by the industry and based on science.
- Provide incentives and support structures to reduce the risks of investing in sustainable innovations.
- Create policies that stimulate cooperation between actors in the value chain.
More about the thesis
Andrey Abadzhiev will defend his doctoral thesis on December 12, 2024 at Karlstad University Managing business model innovation for sustainability transitions: Towards a theory-based typology.
