The Bulgarian and Swedish UN Global Compact Networks, together with Connect Nordics, held a webinar on "Sustainability: The Winning Strategy". The event focused on how sustainability efforts in business are evolving, what are the main drivers and key issues. The Swedish and Bulgarian perspectives on sustainability were shared based on the practical experience of leading companies such as Volvo Group and Telelink Business Services.
Perspectives for sustainability in Sweden and Bulgaria
The two UN Global Compact local networks presented an overview of business opportunities for increasing sustainability as a competitive advantage.
SWEDEN
The Swedish business perspective on sustainability was presented by Vide Richer, Head of Strategic Engagements and Partnerships at the Swedish Network of the UN Global Compact.
"Our network covers over 580 companies from over 30 sectors. 51% of them are large companies and 44% are small and medium enterprises. This spring, we conducted a survey together with Ipsos to find out what views Swedish business has on sustainability. The research was not limited to only companies from the network - 828 companies took part in it," said Richer.
The survey results have outlined several trends. In general, Swedish business is betting on sustainability because:
- its goals, vision and values;
- the need to comply with regulations;
- drive for competitiveness;
- the expectations of its customers.
Another aspect of the research shows that in Sweden 82% of companies pay attention to environmental issues (44% strongly and 38% very strongly), 75% are committed to the labor rights of employees (36% strongly and 39% very strongly). As they are extremely prevalent in Swedish law, human rights and anti-corruption policies receive less attention – 29% strongly and 20% very strongly for the former and 31% strongly and 31% very strongly for the latter respectively.
The companies also answered the question: "What will be the driving force for businesses to move towards a sustainability policy in the next 5 years?"
66% indicated that these will be the requirements from the customers, 65% believe that political decisions at the EU level will have a great weight. Next with 51% are requirements and expectations from owners and investors, as well as political decisions at the local level. 38% see the driving force towards sustainability in new technologies and artificial intelligence, and only 35% – in public opinion.
"In general, I can draw the following conclusions - almost all Swedish companies have already integrated sustainability into their business strategies. This is mainly due to three reasons - sustainability guarantees competitiveness, makes companies attractive for good personnel, and of course the regulatory environment in which companies are located is also very important. If foreign companies are planning a partnership with a Swedish company, they must place an extremely serious focus on sustainability. This will certainly be a mandatory requirement," Wiede Richer concluded.
BULGARIA
Darinka Georgieva, executive director of the Bulgarian Network of the UN Global Compact, spoke about the prospects for sustainability in our country.
“Naturally, there are differences between the two local networks. We are trying to communicate to Bulgarian businesses that sustainability is a concept based on the principles of ethics, values and responsibility, but it can also be a successful business strategy. In my view, the key word is ambition, not so much compliance, and the big task is to meet the Sustainable Development Goals. At this stage, the Bulgarian network is smaller than the Swedish one, but it is not that small - it covers over 50 companies from 20 sectors", said Georgieva.
She cites a European study in which the Bulgarian Network of the UN Global Compact also took part. According to him, 52% of Bulgarian companies are deeply familiar with the Sustainable Development Goals of the United Nations (69% in Europe). 43% of Bulgarian businesses have integrated the SDGs into their strategies (59% in Europe). 72% of companies in our country will use the SDGs when reporting on CSRD (87% in Europe). The most important goals for Bulgarian companies are good governance and anti-corruption (#16), good healthcare (#3) and poverty elimination (#1).
Georgieva also pointed out the main advantages of sustainability as a business strategy - competitive advantage, reduced prices and risk management, good image and strong brand, compliance with regulations and access to financing.
Transformation – a matter of complete symbiosis
The business perspective from the Swedish side was presented by Karin Svensson, Volvo Group's Chief Sustainability Officer.
The Volvo Group (not to be confused with Volvo Cars) is one of the world's largest manufacturers of commercial vehicles. The company manufactures trucks, buses, construction equipment, and also offers energy solutions for marine and industrial applications, financial services that increase customer uptime and productivity.
The Volvo Group develops and offers electrified and autonomous solutions for the benefit of customers, society and the environment. Globally, the company has 104 employees, production is concentrated in 000 countries, and products are available in almost 18 markets.
Karin Svensson talks about Volvo Group's experience and initiatives to achieve a fossil fuel-free future, focusing on cross-sector cooperation and supply chain sustainability, as well as managing supply chain sustainability strategies:
"Sustainability has long been not just a goal for companies, but a winning formula. Regardless of the field of business, sustainability is able to create jobs, ensure growth, and last but not least, improve the lives of people all over the world.
The Volvo Group is a strong supporter of the Paris Agreement, but also of Sweden's ambition to become a climate-neutral country by 2045. In this regard, we want to be a leader, to be at the forefront of change. And we are confident that we can reduce our impact on the environment and improve people's lives, while at the same time experiencing economic growth. But how can this be achieved?
We have been working with the principles of sustainability for many years and have long seen them not as obligations but as business opportunities. Transportation and infrastructure are critical to any society these days. I can even say that there is a distinct tendency for transportation and the need for it to grow. This is mainly due to the increase in e-business as well as the number of middle class people. Of course, the above factors can only please a company from the point of view of business operations. But there are other important considerations in transportation, as this industry is one of the largest generators of greenhouse gases. That's why our ambition is to be 100% safe, sustainable and productive.
Our sustainability strategy is based on climate, resources and people. We aim to reduce our climate footprint and maximize our societal impact. We have mapped out our path to net zero so that it will be successfully completed by 2040. Of course, this is not only about our company's operations, but also throughout our supply chain. To deliver on this ambitious promise we need to be aware of where our emissions come from. In the case of the Volvo Group, 95% of our emissions are generated by our products – for example, when our trucks are in motion or when our construction equipment is operating on a site. 4% of our emissions come from the supply chain and only 1% is generated by our own actions – for example for electricity.
What can we do to reduce emissions in these three pillars? In the first, the answer is the production of electric vehicles, but also the use of biofuels or hydrogen. Here the main focus falls on electrification. This is nothing new to us – we have been selling electric buses for at least ten years. We are currently developing a model that will be able to travel 600 km without charging. In the second pillar, we must pay attention to materials and components that are associated with intensive generation of emissions. This requires exceptional supply chain oversight. Our procurement of materials and services is $36 billion each year, so there is a lot to do on pillar two decarbonisation. To this end, we have a Partner Code of Conduct, which is based on two principles - requirements, but also the drive to reduce emissions. On the third pillar, although it is negligible, we are also working hard, aiming to rely more and more on renewable energy.
We have to be realistic – this transformation is a very complex process that is not moving as fast as we would like. For this to happen, a complete symbiosis is needed - between business, partners, customers and society."
Karin Svensson also pointed to an example of successful cooperation on the way to net zero:
“Steel is the Volvo Group's most used material. Of course, all the production and subsequent use of steel generates a huge volume of emissions. We had a problem. And the steel company SSAB had a solution - green steel. We have entered into a partnership that benefits not only both parties, but also the environment and society. Of course, this is just one good example. We continue to strive to create successful and beneficial partnerships with partners and even competitors in our and other areas of business. I am sure we will be able to redefine the idea of transportation. It will become an environmentally friendly industry."
Sustainability can only be profitable if it is part of the company's self-awareness and culture
The first point of view of the business from the Bulgarian side was presented by Daniela Sokolova, Sustainability Director for Management, Risk and Compliance at Telelink Business Services.
"Our company was established 23 years ago and offers services in the IT sector and cyber security. We first heard about the ESG concept in 2019 and showed a lot of interest. At that time, neither ESG nor the Sustainable Development Goals were talked about in Bulgaria, nor did anyone understand these concepts. I can safely say that our business was not mature then. So we decided to go slower. In 2021, we adopted our first Sustainability Charter, which focused on the 4 Sustainable Development Goals. Then in 2023 we developed our 2030 strategy, which already addresses 11 of the Sustainable Development Goals. However, the process is complex and must be handled carefully. This year we developed our own methodology for calculating the carbon footprint," said Sokolova.
She also indicated the company's recipe for success - sustainability can only be profitable if it is part of the company's self-awareness and culture.
At the end, Iskra Yovkova, founder and managing director of uIMPACT took the floor.
"We are all convinced that sustainability is not a wish, but a must. We have already witnessed how companies with a sustainable strategy have better opportunities for profitable partnerships, for access to financing on better terms. In addition, sustainability is an attractive force for both customers and personnel, and it provides easier entry into already sustainable markets," said Yovkova.
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