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4. Sustainability

4Sustainability

The gap between where we are in terms of emissions and where we need to be to reach climate targets has widened. In order to limit global warming to a maximum of two degrees Celsius compared with pre-industrial times by 2030, countries all over the world must triple their measures to address climate change, according to a UN report released in late 2018. We are now seeing stricter regulations and ambitious sustainability initiatives in most industries, a development that creates both more and new types of jobs.

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“Those companies that do not act sustainably will not exist in the future.”

Mia Kleregård, former CEO, Plantagon Sverige

The re-era

From linear to circular

A paradigm shift is currently underway in industry. While sustainability initiatives in the past have entailed reducing negative climate impacts, the present and future are about regenerating, restoring the ecosystem and rebalancing the climate. More and more companies are transitioning from linear to circular models. Business cycles based on the sale of new raw materials and products are being abandoned in favour of recycling, regardless of whether they involve energy, textiles, food or plastic. Major investments in the circular economy are also being made at the political level. In April 2018, Sweden appointed a circular economy delegation. The aim of the delegation includes identifying obstacles, as well as the need for education and information about the circular economy. And in December 2018, EU member states reached a provisional agreement with the European Commission and the European Parliament to ban items such as plastic cutlery, plastic plates, straws and food packaging made of certain types of plastics. If everything goes as expected, the measures will go into effect in 2021.

As in other movements, the sustainability trend is reflected in the use of language. For example, in 2018, the term “single-use” was at the top of the list of words of the year of the British Collins Dictionary, as usage of the term had quadrupled since 2013. Meanwhile, in Sweden, also in 2018, “zero waste” – the goal of not producing any waste that cannot be recycled or composted – was on the list of new words maintained by the Swedish Language Council and the publication Språktidningen.

“The Paris Agreement and other global commitments mandate a shift in industry. We will no longer be able to use virgin materials as we have done to this point – textile reuse and recycling must grow. Because production of virgin materials has been so inexpensive until now, the technology to recycle materials lags behind. Economically competitive alternatives are needed to achieve a faster transition towards a circular industry.”

Harald Cavalli-Björkman, head of communications, Re:newcell.

Job-creating green sectors

Sustainability initiatives create both new and more jobs. According to the International Labor Organization (ILO), efforts to achieve the Paris climate agreement targets will create 18 million jobs by 2030, while adoption of the circular economy will create an additional six million jobs.

As previously mentioned, the green transition is occurring in all sectors. Here we have selected some areas that we think are particularly exciting, and which show how sustainability solutions can create more and new types of jobs.

Green energy

Over the past decade, renewable energy has made rapid progress, creating jobs around the world. According to the International Renewable Energy Agency, in 2017 half a million new jobs were created worldwide in the renewable energy sector. In the US, the Bureau of Labor Statistics estimates that the occupations of solar panel installer and wind turbine technician will increase by 105 and 96 per cent, respectively, between 2016 and 2026, making them the country’s two fastest-growing occupations.

In Sweden, which is well ahead of the curve, researchers estimate that renewable energy investments will create 40,000 completely new jobs. All over the country, a number of start-ups have created innovative solutions that are driving the development of renewable energy. One example is Modvion, which uses a modular wooden structure to build wind turbines that are taller, less expensive and generate more electricity. In 2019, the company will test a prototype in the Gothenburg archipelago.

8 of 10 Swedes believe it is important to create a world that is fully powered by renewable energy

Green AI

Blockchain technology is a new technology that is expected to create both sustainability solutions and jobs within an array of industries. In May 2018, blockchain knowledge was the fastest-growing skill among over 5,000 skills on the Upwork freelance platform. During the first quarter of the year, the skill increased by 6,000 per cent on the Upwork Skill Index compared with the same period in 2017.

A World Economic Forum report identifies over 65 different ways a blockchain can be applied to the world's most acute climate challenges, for example through automatic disaster preparedness. The report also identifies eight “game changers” through which blockchain technology can fundamentally transform how the world manages its natural resources, for example by decentralising administration of natural resources, and by creating more transparent supply chains. In the food industry, blockchain solutions are described as a way to create both safer and more sustainable food chains. In the fall of 2018, the IBM Food Trust, a blockchain solution for the food industry, was launched, enabling the entire supply chain to be mapped and tracked. A number of major players such as Nestlé, Dole Food, Tyson Foods, Kroger and Unilever have joined the platform.

Just what is a blockchain?

A blockchain can be described as shared information that is maintained and updated by a network of computers rather than a central authority. It can be viewed as a glass box, in which everyone can see all transactions that are and will be protected using advanced cryptography.

Green consultation

Since the turn of 2016/2017, large companies in Sweden have been required to provide a sustainability report in addition to their annual report. This has helped to raise the status of sustainability, which is now both a priority and a strategic issue at most companies. According to a new report from PwC in which over 400 Swedish companies, municipalities and non-profit organisations were interviewed, more than eight out of ten responded that they have set sustainability targets.

Meanwhile, although most organisations have set ambitious sustainability goals, internal expertise lags behind. The same study showed that only 16 per cent of respondents fully agreed with the assertion that they possessed the necessary in-house skills. Many companies therefore turn to external parties for assistance. According to the Confederation of Swedish Enterprise (Svenskt Näringsliv), the number of sustainability consultants has surged since the sustainability issue has come into focus. Currently, several communication agencies specialise in sustainability issues, such as Futerra and Exponentials. Another example is the environmental consultancy firm Normative, which uses AI to find out whether companies are investing in appropriate environmental and climate improvements.