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NORWAY203040 +) COALITION

Partners – Agder Energi Coca-Cola European Partners DNV GL Hurtigruten Hydro IKEA Kongsberg Gruppen Marine Harvest Nordea Ruter Snøhetta SpareBank 1 Forsikring Statkraft Statnett Statoil Storebrand Telenor TINE Umoe Veidekke Elektroforeningen WWF-Norway Xyntéo ZERO

#Norway203040


203040 Building a coalition of like-minded organisations to accelerate progress towards Norway’s 2030 climate target to reduce greenhouse gas emissions by 40% Join the conversation on Twitter #Norway203040

This coalition of leading Norwegian businesses and supporting organisations includes Agder Energi, Coca-Cola European Partners, DNV GL, Hurtigruten, Hydro, IKEA, Kongsberg Gruppen, Marine Harvest, Nordea, Ruter, Snøhetta, SpareBank 1 Forsikring, Statkraft, Statnett, Statoil, Storebrand, Telenor, TINE, Umoe, Veidekke, Elektroforeningen, WWF-Norway, Xyntéo and ZERO.


Norway 203040 Coalition

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Content

BUILDING THE COALITION

THE THEMES

06 10 11 12 27

FOREWORD

2016: FROM OPPORTUNITY TO ACTION

MOVING FORWARD


04

Norway 203040 Coalition

Partners

EUROPEAN PARTNERS


Norway 203040 Coalition

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06

Norway 203040 Coalition

01 Foreword

The impacts of climate change are ever more difficult to ignore. 2016 is

Sometimes it seems like the challenge is simply too big for any

set to break all temperature records and become the hottest year ever.1

organisation to make a difference. But act on climate we must, for time

Sea levels continue to rise, while the concentration of atmospheric

is running out.

carbon dioxide is now over 400ppm – its highest level for millions of years.2

To achieve our big vision – a low-carbon, diversified and competitive Norway – we need to start with pilots projects. This will not be an

We – a coalition of Norwegian businesses – are encouraged by

simple process; neither will we get it right first time. However, with

substantial climate action at the global level. As of 5 October 2016,

iterative, experimental steps, we can begin to build momentum toward

77 countries have ratified the Paris Climate Agreement, which aims

a new and climate-compatible future.

3

to keep warming well below 2 °C. We support both the Norwegian government’s February 2015 commitment to reduce Norway’s

The organisations we represent have already started to take tangible

greenhouse gas emissions by 40% from 1990 levels by 2030, and its

steps to decarbonise their business models. IKEA has teamed up with

subsequent decision to sign the Paris Climate Agreement.

the tech start-up Ducky to empower its customers to reduce their emissions; TINE is improving the fuel efficiency and carbon-intensity of

Fossil fuel exports have made a significant contribution to Norway’s

its fleet of vehicles; Telenor and Ruter are exploring ways to make public

growth since the discovery of oil off its coast in the 1960s. However, as

transport more accessible, efficient and of higher quality; Veidekke is

the Paris agreement comes into force, and energy systems become less

replacing fossil fuel-based materials with renewable alternatives in its

carbon-intensive, we must find new ways to compete on a global stage

construction projects; Hurtigruten has committed to be the first cruise

and deliver value to Norwegian business and society.

line to offer carbon neutral voyages to the polar regions; and with a bold strategy to minimise the carbon-content of its investment portfolio,

We acknowledge that the transition to a low-carbon economy involves

Storebrand reduced its emissions by approximately 350,000 tons in

both risks and uncertainties, as does any process of change. But it

2015.

also offers tremendous opportunities. Driven by market forces, many businesses are already taking action to cut carbon from their business

These are just a few of the low-carbon initiatives the Norway 203040

models, taking advantage of the rising trend in green consumer

partners have been working on – we will showcase some of the other

preferences, and keeping one step ahead of regulators. Yet we are still

exciting projects we’re taking forward in next year’s report. Through

not moving fast enough.

these and other initiatives we are learning about the practical challenges of driving systemic change. They should act as ‘beacons’ to show the wider Norwegian business community what is possible. The coalition has now started to explore collaborative ‘themes’ – areas in which we can deliver impact at scale and inspire further action. This report’s intentions are threefold. Firstly, to detail what we have accomplished to date and outline what we hope to achieve in the future. Secondly, to demonstrate that it makes commercial sense for Norwegian businesses to pursue low-carbon growth opportunities. Thirdly, to send a clear signal to the Norwegian government that we continue to support its 2030 target to reduce emissions by 40%.


Norway 203040 Coalition

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08

Norway 203040 Coalition

Leadership

Tom Nysted

Stein Rømmerud

Remi Eriksen

Daniel Skjeldam

Svein Richard Brandtzæg

CEO

VP & Country Director

Group President & CEO

CEO

President & CEO

Agder Energi

Coca-Cola European

DNV GL

Hurtigruten

Hydro

Alf-Helge Aarskog

Snorre Storset

Bernt Reitan Jenssen

Partners Norway

v

Clare Rodgers

Geir Håøy

Country Retail Manager

CEO & President

CEO

CEO

CEO

IKEA Norway

Kongsberg Gruppen

Marine Harvest

Nordea Norway

Ruter

Tonje Værdal Frydenlund

Turid Grotmoll

Christian Rynning-Tønnesen

Auke Lont

Eldar Sætre

Managing Director

CEO

CEO

President & CEO

President & CEO

Snøhetta Oslo

SpareBank 1 Forsikring

Statkraft

Statnett

Statoil

Odd Arild Grefstad

Berit Svendsen

Hanne Refsholt

Jens Ulltveit-Moe

Arne Giske

CEO

EVP & CEO

CEO

Founder & CEO

President & CEO

Storebrand

Telenor Norway

TINE

Umoe

Veidekke

Frank Jaegtnes

Nina Jensen

Osvald Bjelland

Marius Holm

CEO

Secretary General

CEO

Managing Director

Elektroforeningen

WWF-Norway

Xyntéo

ZERO


Norway 203040 Coalition

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Strategists

Unni Farestveit

Nils Molin

Tine Hegli

Hanne Iversen Rye

Head of External Relations

Vice President Sustainability & CSR

Senior Architect

Senior Analyst ESG

Agder Energi

Kongsberg Gruppen

Snøhetta Oslo

Storebrand

Per Hynne

Hege Skryseth

Nina Juel Arstal

Natalie Folge

Head of Public Affairs

President Kongsberg Digital and

Claims Director

Project Director Strategy

and Communication

Group EVP Chief Digital Officer

SpareBank 1 Forsikring

Telenor Norway

Coca-Cola European Partners Norway

Kongsberg Gruppen Kjetil Lund

Ulrika Leikvang

Bjørn K. Haugland

Sverre Gotaas

Senior Vice President

Manager Environment and

Chief Sustainability Officer

Group Vice President Innovation

Public Affairs

Sustainability

DNV GL

Kongsberg Gruppen

Statkraft

Telenor Norway

Mette Vågnes Eriksen

Eivind Nævdal-Bolstad

Anne C. Bolle

Lars Galtung

Group Sustainability Manager

Public Affairs Manager

Head of Climate Policies

SVP Communication/CSR

DNV GL

Marine Harvest

and Public Affairs

TINE

Statkraft Anne Marit Bjørnflaten

Ola Helge Hjetland

SVP Communications

Communications Manager

Thor Erik Grammeltvedt

Silje Haugland Project Associate

Hurtigruten

Marine Harvest

SVP Strategy and Tariff Development

Umoe

Statnett Bjørn Kjetil Mauritzen

Thina Saltvedt

Head of Climate Office

Chief Analyst Macro/Oil

Bjørn Otto Sverdrup

Hege Hansesveen Senior Environmental Advisor

Hydro

Nordea Norway

SVP Sustainability

Veidekke

Statoil Anders Lennartsson

Frode Hvattum

Sustainability Manager

Chief of Strategy

Harald Holm

Hege Schøyen Dillner Executive Vice President

IKEA Norway

Ruter

Communications Manager

Veidekke

Sustainability Storebrand

Project team Per Øyvind Voie

Emma Micklem

Jon Evang

We would also like to thank SIKT

VP Governmental Affairs

Head of Partnerships

Communications Manager

Alumni and Haga Initiative4 for their

Elektroforeningen

Xyntéo

ZERO

valuable contributions to this project.

Karoline Andaur

Hugo le Breton

Dagfrid Forberg

Conservation Director Policy

Senior Advisor

Deputy Director

WWF-Norway

Xyntéo

ZERO

Lars Erik Mangset

Fergus Simpson

Marius Gjerset

Senior Advisor Sustainable Finance

Communications Advisor

Technology Manager

WWF-Norway

Xyntéo

ZERO


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Norway 203040 Coalition

02 Building the coalition

The Norway 203040 Coalition is built on a shared ambition to make a substantive contribution to Norway’s low-carbon transition. Collectively, we employ over 100,000 people and have been in operation for nearly 2000 years. In 2015 we identified opportunity areas – spheres in which we imagine Norway could, with bold and concerted collaboration between business and government, unlock new competitive positions. In 2016, our focus has been on the next step: identifying the most material themes we could take up and lead as a coalition to respond to these opportunity areas. This report explains what those themes are and the initial actions we’ve taken in each.

alongside civil society. Together these partnerships need to mobilise and share knowledge, expertise, technology and financial resources. This will not be straightforward – it will be an immensely challenging and, at times, frustrating process. But our future depends on it. That’s why we – a coalition of twenty businesses and four supporting partners – have come together. We cut across sectors from shipping and power generation to FMCG, food processing and telecommunications. By combining forces, we can innovate across the system, compete in global markets and help Norway flourish in a carbon-constrained future. Building our coalition In January 2015, in the first phase of the project, ten leading Norwegian businesses and three supporting partners identified opportunity areas6. These areas were:

The case for coalition Throughout its history, Norway has been hugely successful in managing

● High-tech industry

its natural resource stocks, notably oil, gas and fisheries. As a result, its

● Electric mobility

people have enjoyed some of the highest living standards in the world

● The bio-economy

– Norway ranked first place in the Human Development Index for the twelfth time in 20155.

And with finance highlighted as a key enabler.

However, as the world begins to transition away from hydrocarbons,

With the continued and concerted push from business to build a future-

Norway cannot continue to thrive simply by doing more of the same. To

fit Norway, this first phase has led to the continuation of the Norway

compete in a low-carbon world we must innovate, and on a grand scale.

203040 project. Phase two will now span a three-year period from 2016 until 2018.

In the past, most innovation has occurred within individual organisations. The companies we represent have already demonstrated

This second phase of the project brings together twenty businesses

their capacity to respond creatively to significant commercial and

and four supporting organisations. This coalition is the first of its kind

societal challenges – by developing new products, services and business

to bring together the assets, skills and reach of some of the most

models.

successful companies in Norway to accelerate progress toward the government’s climate target.

But what does it take to bring about systemic shifts and mobilise people and technologies toward a low-carbon future? The kind of game-

Our goals

changing innovation this requires cannot be achieved within the bounds of individual companies. Too many systemic variables need to change in

1. To maintain and continue to build the momentum toward

a coordinated manner.

Norway’s ‘203040’ climate target, seeking to support and develop new business opportunities towards a low-carbon economy.

Instead it will require a new and radical degree of teamwork that spans disciplines, sectors and industries.

2. To exchange knowledge of intrinsically low-carbon business models across the partner companies and their sectors.

The need for a multi-sector approach has been recognised by Sustainable Development Goal 17. Goal 17 emphasises the importance

3. To support innovative policy that can help accelerate the

of multi-stakeholder partnerships from the public and private sectors,

transition to a competitive, low-carbon economy.


Norway 203040 Coalition

03 2016: From opportunity to action

Over the course of this year we have been working together to identify

Design principles

the most material themes we could take up and lead as a coalition, based on the opportunity areas identified in phase one. We’ve then

Each theme was selected on the basis that it could address one or

started to develop ideas, pilots and action plans around them. We have

more opportunities which would:

prioritised six themes: ● Present an opening for new business growth ● Enhancing consumer awareness

● Generate jobs

● Electrifying transport

● Leverage existing technology

● Building a low-carbon neighborhood

● Cut CO2 emissions at home or abroad

● Advancing the circular economy

● Provide the opportunity to scale

● Financing low-carbon growth

● Appeal to at least two partners within the coalition

● Unlocking low-carbon growth in the maritime sector By combining forces to generate project ideas in these themes, we believe we can have a much greater impact than the sum of our individual efforts. These are just initial steps toward achieving our big vision. But introducing systems interventions of the magnitude required to create a low-carbon Norway must start with iterative pilots in which we can experiment and learn. Over the next two years we intend to expand the scale of our impact. And over time, we plan for these initial steps to make a substantial contribution toward meeting Norway’s 2030 climate targets.

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Norway 203040 Coalition

04 The themes

This report provides an overview of each of the themes the Norway

In 2016 we explored opportunities and barriers to electrifying transport

203040 partners have committed to work on. It outlines why the

among coalition members, with a focus on short-distance transport.

coalition is well placed to drive low-carbon growth in each of these

Our next step for 2017 is to have pilots in place to increase EVs among

areas. It lays out our main objectives for the next few years, and

coalition partners – to set an example to Norway’s wider business

describes the initial steps we’ve taken in 2016.

community.

We’ve also included an inspiring ‘success story’ in each theme. These

Success story: As part of an on-going commitment to enhance the

showcase examples of where coalition members have already started to

sustainability of its operations, TINE is taking initial steps to decarbonise its

realise commercial opportunities in stripping carbon from their business

fleet of delivery trucks. Find out more on p17.

models.

Summary

3. Building a low-carbon neighbourhood Cities are central to a solution to climate change. We’re focussing on urban areas because we have a very specific opportunity to make a

1. Enhancing consumer awareness

contribution: several coalition members have offices in Fornebu, one of

Consumer demand has a key part to play in Norway’s transition to a

Norway’s up-and-coming centres for IT. By working together our aim is

low-carbon economy.

to make Fornebu a showcase for low-carbon pilots in transport, building and energy.

Enhancing consumers’ awareness – to enable them to make more sustainable choices – is an important first step. What’s more, businesses

In 2016, coalition members have set up three pilot projects looking

like ours, many of which already play a role in people’s everyday lives,

into the potential of mobile data, beacons and self-driving vehicles to

are perfectly placed to do this.

improve public transport in Fornebu. In 2017 we’ll look to expand this suite of pilots. The hope is they can then be adopted in other cities in the

Our main focus so far has been on sharing best practice both between

future.

coalition partners and from external sources. As a coalition we’ve learnt about sustainable buying trends from the Sustainable Brand Insight.

Success story: Telenor and Ruter are working together to test the potential

And together we’ve launched the ‘Ask Us’ campaign, which encourages

of beacon technology to improve public transport in Fornebu and reduce the

consumers to ask coalition members about the sustainability of their

number of cars on the road. Find out more on page 19.

products and services. Next year we’ll expand on these initiatives, and explore opportunities to proactively promote sustainable consumer

4. Advancing the circular economy

behaviour.

With abundant hydropower, an emerging market for bio resources and considerable industrial expertise, Norway is well positioned to become a

Success story: Find out on page 15 how IKEA and Ducky are developing a

global leader in low-carbon and renewable materials.

‘climate calculator’ that will enable IKEA’s customers and co-workers to measure and reduce their emissions.

At an organisational level, many of our coalition partners have already gained knowledge in this area. Our aim is to bring this research and

2. Electrifying transport

development together and use it to develop new pilots for the benefit of

Norway has the most developed market for electric vehicles (EVs) in

Norwegian business as a whole.

the world. However, for a number of reasons, commercial use of EVs is lagging some way behind.

So far our focus has been on knowledge sharing. Our next step is to develop at least one new pilot in 2017.

The exciting thing is that, as a coalition of Norwegian businesses from over ten industries, the move to electric transport in the commercial

Success story: Find out on page 21 how Veidekke is using more sustainable

sector is a transition we can lead from the front.

materials – with up to 55% lower greenhouse gas emissions than steel and concrete – in its construction projects.


Norway 203040 Coalition

5. Financing low-carbon growth The financial sector in Norway is already beginning to integrate climate risks into its decision-making processes. As a coalition, we support this development. We believe that by factoring in the climate implications of investment decisions, Norwegian financial institutions can create a more resilient economy and realise new opportunities for low-carbon growth. Our first step will be to gather and share knowledge about national and international initiatives looking to address climate risk. Secondly, we’ll organise a workshop in 2017 to identify collaborative opportunities to advance a financial system that is fit for a low-carbon future. Success story: With a bold strategy to minimise the carbon-content of its investment portfolio, Storebrand reduced its emissions by approximately 350,000 tons in 2015. Find our more on page 23. THEME IN DEVELOPMENT As well as our five themes above, we have one theme in development. This is an area we are in the process of exploring and intend to take forward in 2017. 6. Unlocking low-carbon growth in the maritime sector Norway is a world leader in developing innovative maritime technologies. Important next steps will be to deploy available lowcarbon technologies and become a world leader in sustainable shipping. As our coalition includes five organisations directly involved in the maritime sector, we've prioritised it as one of our key themes from 2017 onwards. Success story: Hurtigruten has announced it aims to be the first cruise line to offer emissions-free voyages to the polar regions. Find out more on page 25.

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Norway 203040 Coalition

ENHANCING CONSUMER AWARENESS Consumer demand has a key part to play in Norway’s transition to a low-carbon economy. Enhancing consumer awareness to enable them to make more sustainable choices is an important first step, and businesses that already play a role in people’s everyday lives are perfectly placed to do this. This year we’ve learned from Sustainable Brand Insight, shared best practice between partners and launched the ‘Ask Us’ campaign. Next year we will expand on these initiatives and explore additional opportunities to promote sustainable consumer behaviour.

A growing voice

They can also encourage consumers to make

Consumers are becoming increasingly aware

more sustainable choices. This can help

of the dangers of unmitigated climate change.

boost sales at the same time as reducing

As a result, people are becoming more

environmental impacts.

interested in the sustainability implications of their purchasing decisions. The Sustainable

Initial actions

Brand Index 2016 estimated that the number of Norwegians taking part in conversations

Since enhancing consumer awareness

about sustainability has risen by

became one of our themes for action, we’ve

11 percentage points in just one year since

been gathering information from external

2015.

sources, and shared best practice with

7

each other. We’ve also begun to encourage This rise in conscientiousness represents

consumers to demand the information they

an opportunity for Norwegian businesses.

need to make more sustainable choices.

By providing clear, reliable and fact-based information about the sustainability of their

Drawing on external sources

products and services, they can build trust

In August 2016 we invited Sustainable Brand

with the Norwegian public.

Insight – the company that carries out


Norway 203040 Coalition

15

Scandinavia’s largest study of brands and

3. To change behaviour we must create

sustainability – to share the findings from its

a compelling narrative around more

most recent 2016 study7.

sustainable products.

This study was based on a sample of 30,000

4. People are more likely to change their

collaborative project with the tech

people. It found that consumers rate

own behavioural patterns when they see

start-up Ducky. Ducky is developing

companies highest for sustainability when

people that they can relate to changing.

a ‘climate calculator’ that will enable

Success Story: IKEA and Ducky IKEA Norway recently initiated a

IKEA’s customers and co-workers to

they demonstrate the following (shown in order of importance):

The ‘Ask Us’ campaign

measure and reduce their emissions.

One of our key aims within this theme is to 1. They offer products and services that

explore new ways of encouraging consumers

This not only has the potential

to make more sustainable purchasing

to reduce emissions, but also to

decisions. As representatives of Norway’s

demonstrate to consumers that

largest companies it’s a big opportunity for us,

IKEA is serious about climate action

and an important responsibility.

and is playing a positive role in

are safe and do not cause harm to

consumers. 2. They actively help consumers feel better,

Norwegian society.

live better and make positive choices. As a first step, earlier this year we created

3. They ensure good working conditions in

the ‘Ask Us’ or ‘Spør Oss’ campaign8. This

production countries and in their

provides consumers with an opportunity

domestic offices.

to ask coalition members about their sustainability practices. In the process, it aims

4. They manufacture products from

to give as many people as possible a better

understanding of the sustainable choices

materials that are not harmful to the

environment. 5. They reduce the carbon emissions and

environmental impacts of

their operations.

around them.

An ideal future Ultimately, our aim is a Norway where:

Learning from partners Storebrand recently analysed the factors

● Information about the

that underlie consumers’ decisions to buy

sustainability of different

more sustainable products and services. They

products and services is readily

shared the following four takeaways with the

available

coalition members:

● Consumers demand more 1. Consumers are more likely to select a

sustainably produced products

sustainable product if it can contribute

and services

to their general wellbeing, such as

through health benefits.

2. By employing an approach of

● Businesses are incentivised to

improve the sustainability

of their operations

As a leading FMCG player, we recognise there is need for us build awareness for more sustainable products and services among our consumers.

‘sustainability by design’, companies can

improve the sustainability of consumers’

Stein Rømmerud,

purchasing decisions. For example, IKEA

VP & Country Director,

now only sells energy-saving LED light

bulbs.

Coca-Cola European Partners Norway


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Norway 203040 Coalition

ELECTRIFYING TRANSPORT Norway has the most developed market for electric vehicles (EVs) in the world. However, for a number of reasons, commercial use of EVs is lagging some way behind. As a coalition of Norwegian businesses from over ten industries, the move to electric transport in the commercial sector is a transition we can lead from the front. By the end of 2017 we aim to have pilots in place to increase EVs among coalition partners – as an example to Norway’s wider business community.

The most mature EV market in the world

We believe that EVs offer considerable com-

Norway has the most mature and developed

reducing emissions, they reduce fuel use and

market for EVs in the world. As a result of rapid

operating costs when compared to petrol or

technological developments in batteries, motors

diesel alternatives. That’s why we’re working to

and charging, EVs are becoming increasingly

increase the uptake of EVs in our businesses, as

mainstream. Indeed, every fifth new vehicle

well as to remove barriers to more widespread

bought in Norway is an EV!9

commercial adoption.

To date, the demand for EVs has primarily been driven by private consumers.10 The commercial market for electric vehicles – including company cars, vans, trucks and buses – continues to lag behind.11 This is primarily due to a lack of incentives, infrastructure that cannot accommodate EVs, and low awareness of the options available.

mercial advantages to businesses. As well as


Norway 203040 Coalition

Initial actions

17

Success story: TINE

Having chosen electrifying transport as one of our key themes for action, we’ve focused

While EVs are not yet widespread in

in on short-distance transport as the EV

Norway’s commercial sector, that is

market with the most potential. Our first

beginning to change.

step is to pinpoint the barriers currently in the way of mass adoption.

TINE is Norway’s largest producer, distributor and exporter of dairy

Identifying barriers

products, and one of the country’s

By the end of 2016, we aim to have gathered

largest transport operators. As part of

information about the current use of electric

a commitment made in January 2016 to

vehicles among coalition members. With

cut its emissions by 75% by 2020, TINE

this information, we’ll assess the barriers

recently ordered a hybrid Nikola One

currently prohibiting the uptake of EVs and

truck12.

identify measures to overcome them. This 1,000 horsepower vehicle has 2017: pilots

an impressive range of 200km and

By the end of 2017, we aim to have developed

consumes just 1.5 litres of biogas per

and tested pilots to increase the adoption of

mile. In addition, the generator used to

EVs among coalition members. Our end goal

power its batteries will run on hydrogen,

is to scale these pilots and stimulate further

which has the potential to reduce cost

demand for EVs in the wider Norwegian

and emissions even further.

business community.

Jens Ulltveit-Moe, TINE sees the strategic importance of

An ideal future

being an early adopter of low-carbon technologies – to maintain a position at

Within this theme, our objective is to

the forefront of innovation and adapt

increase the adoption of electric vehicles

to new business realities. Depending

among coalition members. And then

on the availability of incentives and

to use this to accelerate the use of EVs

infrastructure, TINE intends to expand its

in commercial transport more widely.

fleet of Nikola One trucks in the future.

Ultimately, the goal is a Norway where: ● EVs have replaced petrol and

diesel vehicles in commercial

transportation wherever possible

● Biofuels and hydrogen replace fossil

fuels in vehicles that can’t currently

be electrified, such as in heavy trucks

and aeroplanes

● Norway becomes a global hub for

low-carbon and innovative

new transport systems

● Incentives are no longer required for

EVs to compete on cost with fossil

fuel-based transport options

Nothing is more powerful than an idea whose time has come. Electrification of transport is such an idea – simple, emission free and low cost. Founder and CEO, Umoe


18

Norway 203040 Coalition

BUILDING A LOW-CARBON NEIGHBOURHOOD Cities are central to a solution to climate change. However, we’re focussing on urban areas because we have a very specific opportunity to make a contribution. Several coalition members have offices in Fornebu, one of Norway’s up-and-coming centres for IT. By working together, our aim is to make Fornebu a showcase for low-carbon pilots in transport, building and energy. The hope is these pilots can then expand to other cities in the future.

A focus on Fornebu

soon have 25,000 office spaces and over 10,000

Cities are home to over half the world’s people13

homes. It’s also a hub for sustainable thinking

and responsible for more than 70% of global

and collaborations – and several of the coalition

CO2 emissions14. Finding sustainable solutions

partners have offices in the area.

for energy use, transport, buildings and waste in urban areas will play a huge part in cutting

As a coalition, we see a great opportunity to

emissions and meeting our climate targets. The

work together to explore new systemic solu-

good news is many cities in Norway are now

tions in the Fornebu area. We can then use

taking climate action. For example, Oslo has

these solutions to improve the efficiency of our

an ambitious plan to reduce emissions by 50%

own operations, reduce emissions in Fornebu

by 2020 and 95% by 2030 compared to 1990

– and crucially use Fornebu as a showcase to

levels.15

guide action in other towns and cities in Norway and other countries.

The reason we are prioritising this theme is the coalition’s unique relationship with Fornebu, in the municipality of Bærum, Akershus. Fornebu is an up-and-coming centre for information technology and telecommunications that will


Norway 203040 Coalition

Initial actions

19

NHO Transport, alongside technology companies Acando and Telenor. The overall

Our initial focus has been on public

aim is to provide people with a more

transport. Ruter (the public transport

flexible connection to public transport

authority in Oslo and Akershus), Fornebu-

in Norway, and thus decrease the use of

headquartered Telenor, and SmartCity

private cars.

Bærum16, have already joined forces on three pilot projects.

An ideal future

The aim of these three pilots is to gather data on people’s travel habits in order to improve

Over the next few years we want to bring

public transport services and reduce the

together expertise and technology from

use of private cars. This alone would have

across the coalition and use it to develop

significant potential to reduce emissions:

pilots and explore low-carbon solutions

according to Nasjonal Transportplan,

in transport, building and energy. We’ll

switching from private to public transport

develop a more efficient public transport

can reduce the emissions of a person’s daily

system for the Fornebu area to reduce

commute by 30%. Moreover, if the public

the use of private cars. The ultimate aims

transport is electric, the reduction is closer to

are:

100%.

17

● An increase in public transport Pilot 1: mobility analytics

use in Fornebu

This pilot will investigate people’s behaviour around public transport to and from Fornebu.

● Fornebu becomes a low-carbon area

The pilot will use accessible data from Telenor’s mobile users, together with public

● Digital, green and low-carbon

transport passenger counting data from

Ruter. This information will then be used to

Fornebu

businesses are well-established in

make sure improvements in public transport services in the Fornebu area are suitable for

● Norway becomes a hub for high-

passengers’ wants and needs.

tech green businesses and jobs

The real success of a highperformance pilot is not how long it remains relevant, but how quickly it is superseded. The goal of our pilot projects in Fornebu is to impact policy, show future possibilities and set new market standards. Tonje Værdal Frydenlund,

Pilot 2: beacons The second pilot will explore the use of ‘beacons’ to provide data about public

Success story: Telenor, Ruter and SmartCity Bærum

transport use in Fornebu. Beacons are lowenergy Bluetooth devices that can trigger

Telenor and Ruter are working

smartphones when they enter the coverage

together to test the potential of

area of the beacon. The first phase of this

beacon technology to improve their

pilot will gather information about customer

understanding of how people use and

satisfaction, behaviour and travel patterns.

perceive bus services in Norway.

Pilot 3: Self-driving buses

This information will enable them to

The third pilot tested using a self-driving

make public transport more accessible,

bus in the Fornebu area. It is part of a bigger

efficient and higher quality, and reduce

project to increase the uptake of self-driving

the number of cars on the road. This, in

buses in Oslo. This collaborative pilot

turn, will reduce carbon emissions from

brings together several public transport

the transport sector.

organisations including Flytoget, Ruter and

Managing Director, Snøhetta Oslo


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Norway 203040 Coalition

ADVANCING THE CIRCULAR ECONOMY With abundant hydropower, an emerging market for bio resources and considerable industrial expertise, Norway is well positioned to become a global leader in low-carbon and renewable materials. At an organisational level, many coalition partners have already done a lot of work in this area. Our aim is to bring this research and development together and use it to develop pilot projects and unlock new opportunities for low-carbon growth.

New materials for business, new jobs for Norway

However, there are still lots of untapped

The production, use and disposal of materials

in Norway. For example, the Club of Rome

are significant sources of carbon emissions.

estimates that by transitioning to a circular

Each year the production of plastics alone

and zero-waste economy, Norway could create

opportunities to advance the circular economy

generates 1.5 billion tons of carbon dioxide –

50,000 new jobs, cut emissions by 7% and

equivalent to five percent of global emissions.

18

The cement industry is responsible for an additional five percent.19 Our country has made substantial progress recycling bottles and aluminium cans.20 It is also developing some innovative methods for using recycled aluminum in production processes.21

improve the balance of trade by 2%.22


Norway 203040 Coalition

Actions and outcomes

Aluminium:

Success story: Veidekke

● Hydro aims to be carbon neutral by In 2016 our focus has been on sharing

2020. It will achieve this by reducing its

partners’ knowledge of low-carbon

emissions embedded in aluminum

‘Massive wood’, or cross-laminated

materials, recycling methods and

production, increasing recycling and

timber, offers considerable sustainability

procurement systems. Next year our aim is

developing products that enable

benefits when compared to fossil

to develop at least one coalition-led pilot

emissions savings.

fuel-based materials. Its embodied life

project. And we will continue to be a voice advocating for green policy.

cycle energy is low and it is capable of ● Hydro’s plant in Holmestrand currently

sequestering significant quantities of

carbon dioxide.

recycles 430 million cans per year.

26

Collecting and sharing knowledge Our first step on this theme has been to share

Construction:

The construction and civil engineering

knowledge across the coalition – in particular

● Veidekke and Snøhetta have taken part

company Veidekke is using massive

strategies to increase the uptake of low-

in several construction projects acclaimed

wood to build a housing complex for 632

carbon and sustainable materials, and ideas

for their outstanding use of renewable

students at Moholt in Trondheim. The

on how to push for sustainable, low-carbon

materials. Powerhouse, for example, is a

project, due to be finished in November,

public-procurement systems.

building that, over its full lifecycle,

is expected to produce 55% less

produces more energy than it consumes.

27

2017: a collaborative pilot

built using steel and concrete.

We aim to develop at least one new pilot

Advocating green policy

project next year. Several coalition partners

We want to play a leading role in making

are already taking bold steps towards more

low-carbon, recycled and renewable materials

circular business models. Our hope is that the

cost-competitive in Norway. Next year and

pilot will build on the innovative work that’s

beyond we’ll be advocating for greener public

already been done (examples of which are

procurement, higher sustainability standards

below), and find new and effective ways to

and policies that favour low-carbon materials

bring different ideas together.

and solutions for the circular economy.

Fast-moving consumer goods: ● Coca-Cola introduced its PlantBottle TM

technology in 2010. This bottle uses

22.5% plant-based material and 25%

recycled material23.

An ideal future Our end-goal is a Norway where: ● Renewable, recycled and low-carbon

● In 2016, TINE introduced milk cartons

materials become mainstream in all

produced using 100% renewable

manufacturing sectors

materials. Its aim is to produce all its milk

cartons this way by the end of 2017.24

● IKEA aim to use 100% renewable and

recycled materials in all its home-

furnishing products by 2020.25

greenhouse gas emissions than if it was

● Norwegian companies realise the

growth opportunities of using

modern and ‘future-fit’ materials

● Norway becomes a global hub

and exporter of low-carbon, recycled

and resource-efficient materials and

technologies

Hydro has an ambitious climate strategy, aiming to be carbon neutral by 2020, and aluminium recycling plays a central part in this strategy. Svein Richard Brandtzæg, CEO, Hydro

21


22

Norway 203040 Coalition

FINANCING LOW-CARBON GROWTH The financial sector in Norway is already beginning to integrate climate risks into its decision-making processes. As a coalition, we support this development. We believe that by factoring in the climate implications of investment decisions and insurance, Norwegian financial institutions can create a more resilient economy and realise new opportunities for low-carbon growth. Our first step will be to gather and share knowledge about national and international initiatives looking to address climate risk. Secondly, we’ll organise a workshop in 2017 to identify collaborative opportunities to advance a financial system that is fit for a low-carbon future.

An emerging discipline

financial institutions subsequently formed a

The financial sector has developed

task force to advance climate-related financial

comprehensive models to measure a broad

disclosure29. In Norway there are financial

range of credit, market and operational risks. It

institutions that have been measuring,

is now beginning to recognise the importance

assessing and reporting on climate risk in

of integrating climate risks into these models.

their investment portfolio for several years.

These include the possible impacts of low-

However, the credit and insurance industries

carbon policies on asset portfolios, physical

are lagging behind, operating with models

damages from extreme weather events, and

that do not accurately incorporate the climate

the revenue effects of changing consumer

risks we see emerging in the world today.

preferences. As a coalition, we believe organisations An increasing number of organisations are

that do not incorporate climate risks into

starting to recognise the importance green

their decision-making processes will leave

finance. Notably, 2016 was the first year the

themselves exposed to volatility in the long-

topic was addressed at the G20 summit . 31

run. Moreover, we see that climate-smart risk

26


Norway 203040 Coalition

23

models can help businesses become more competitive and realise new opportunities for

An ideal future

low-carbon growth. Our ultimate goal is a Norway where: What’s important now is to determine where best to focus our efforts. In a recent

● Norwegian companies report

study, the United Nations Environmental

on climate risk in a way that is

Programme (UNEP) proposed that promising

transparent, accurate and

areas include aligning standards for disclosure,

consistent – thus enabling

developing methods to stress-test sustainable

investors, lenders and insurers

investments, and incorporating environmental

to make well-informed investment

risks into global banking standards. In order

decisions

30

to harmonise with global efforts already underway in this area, we will base our work

● Capital is deployed to projects

going forward on the international standards

that advance the green

being developed by the Task Force on Climate-

shift and to businesses that are

related Financial Disclosures and the UNEP

well positioned to thrive in the

Finance Initiative.

new climate economy

As we develop this theme in 2017, we will explore these and other opportunities to

Success story: Storebrand

create a financial system fit for a low-carbon future.

Storebrand’s investment strategy is based on a comprehensive sustainability

Initial actions

analysis of all the investment options available to it. The financial services

To focus our efforts over the next two years,

company takes this approach because

we have decided to prioritise two areas for

it recognises both the risk of carbon-

action.

intensive assets becoming ‘stranded’, as well as the opportunity of a more

1. Although this is a theme in development

sustainable, low-carbon economy.

for our coalition, there has already been

substantial work by international

With a bold strategy to minimise the

institutions looking to address climate

carbon-content of its investment

risk in the financial sector. Our first step

portfolio, Storebrand reduced its

will be to collect and share this knowledge

emissions by approximately 350,000

across the coalition.

tons in 2015. Storebrand achieved this by discontinuing its investments in over 60

2. Our second step will be to run a

companies that did not meet its criteria

workshop with external stakeholders

for sustainability – and transferred these

in 2017. Its objectives will be twofold:

investments to companies that are

firstly, to learn more about how climate

contributing to a low-carbon future.

risk affects both lenders and insurers;

and secondly, to identify collaborative

opportunities for coalition members

to increase the uptake of climate-centred

risk models in Norway.

Climate change is one of the greatest risks we face; tackling it is also one of our biggest economic opportunities. It is in the interest of the business community to take steps towards a low-carbon economy and to push policymakers to take further action. Snorre Storset, CEO, Nordea Norway


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Norway 203040 Coalition

THEME IN DEVELOPMENT:

UNLOCKING LOW-CARBON GROWTH IN THE MARITIME SECTOR Norway is a world leader in developing innovative maritime technologies.28 Important next steps will be to deploy available low-carbon technologies and become a world leader in sustainable shipping. As our coalition includes five organisations directly involved in the maritime sector, we've prioritised it as one of our key themes from 2017 onwards.

The Green Coastal Shipping Programme

Several coalition partners, including DNV GL,

Norway is a world leader in developing new

carbon projects in Norway's shipping industry.

and innovative maritime technologies. This

We hope to explore ways that the coalition can

includes new engines, hulls and propellers,

realise additional commercial opportunities in

but also alternative fuels such as LNG, biofuel

this area.

and electricity – solutions which are needed to radically improve the efficiency of shipping and reduce greenhouse gas emissions. The government is supporting this process through the Green Coastal Shipping Programme, which brings industries, ministries and state departments together to implement a new maritime strategy.31 The primary goal of the programme is for Norway to be a world leader in environmentally sustainable and efficient shipping.

have significant experience advancing low-


Norway 203040 Coalition

Big challenges but promising steps

25

Renewable energy solutions The maritime sector promises to be a key area

While this is a theme in development from

of growth in Norway, especially in the context

our coalition’s point of view, the green

of the challenges presented by declining

shift is already well under way in Norway’s

productive volumes of oil and gas off the

maritime sector. Norway has started

Norwegian continental shelf.

to implement several hundred energy optimisation projects using energy-saving

Promising areas for this growth could be

propulsion technologies, hull optimisation

renewable energy solutions and infrastructure

and efficient on-board equipment.

projects. Could we, for example, find

Additionally, it is home to over 50 LNG-

synergies between offshore aquaculture

powered ships, ten hybrid vessels and the

and marine wind power? As a country, a key

world’s first all-electric battery-powered

consideration going forward must be how

ferry32.

we apply our existing – and considerable – knowledge and expertise in the maritime

However, most Norwegian vessels still use

sector to a new and low-carbon economy.

fossil fuels as a primary energy source. They continue to emit high quantities of carbon

Success story: Hurtigruten

dioxide, as well as nitrogen and sulphur oxides. As a result, the maritime sector continues to be a major contributor to

At the Paris Climate Conference in 2015,

Norway’s total emissions (9% as of 2014).

33

Hurtigruten announced its vision to be the first cruise line to offer emissions-

Shore power

free voyages to the polar regions.

One of the most interesting ways to reduce emissions in ports is through the use of

It has now placed an order for what will

'shore power'. This enables docked vessels to

be the world’s first two hybrid expedition

plug into the electricity grid on the mainland

ships, built at Kleven Yards in Norway.

and turn off their engines. Shore power has additional potential to reduce emissions by

This technology, combined with an

providing power to fleets of fully electric and

efficient hull design and electricity

hybrid vessels in the future.

system, will reduce each ship’s fuel consumption and emissions by 20%,

We believe shore power could offer

amounting to a total of more than 6,000

substantial commercial and environmental

metric tonnes of carbon dioxide per year.

benefits in the harbours at Oslo, Kristiansand, Stavanger and Bergen. However, realising this opportunity will require the support of local port authorities, local administrations and the government. The challenge is too great for any business – or even a coalition of businesses such as ours – to realise by working alone. Collaboration between stakeholders that span the value chain will be essential to develop our shore power capabilities in ports as well as on board vessels.

As a long-term partner to the global maritime industries we actively promote safe, efficient and sustainable solutions. In Norway, the public-private partnership for green shipping is unique. It brings opportunities for growth, strengthens competitive advantages in the international arena and reduces emissions – all of which can contribute to several of the Sustainable Development Goals. Remi Eriksen, Group President & CEO, DNV GL


26

Norway 203040 Coalition


Norway 203040 Coalition

05 Moving forward

This report marks the end of the first year of the Norway 203040 Coalition. We hope that it will contribute to the important discussion around how businesses can realise the opportunities inherent in the lowcarbon transition. And how together we can move forward towards the ultimate aim of meeting the Norwegian government’s 2030 target to reduce emissions by 40%. Over the next 24 months, we'll be combining forces across sectors to exchange knowledge of low-carbon business models as well as to develop, pilot and scale project ideas around the themes explored in this report. We will also be looking to support innovative policies that can help accelerate the transition to a low-carbon, diversified and competitive Norway. We took initial steps toward this goal at a leadership roundtable held on 1st November 2016 in Oslo, which brought together CEOs from organisations participating in the Coalition, along with Vidar Helgesen, the Norwegian minister for climate and environment, Idar Kreutzer, managing director of Finance Norway, and Paul Polman, CEO of Unilever. The business opportunities that have come out of this CEO-led roundtable are plentiful and exciting. There is still so much more to come. To learn more about the coalition, to give feedback or become involved in any other way, please contact communications@xynteo.com.

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Norway 203040 Coalition

End notes

1.

13.

http://www.nasa.gov/feature/goddard/2016/climate-trends-continue-

http://www.iclei.org/

to-break-records 14. 2.

https://ruter.no/m2016

http://www.climatecentral.org/news/antarctica-co2-400-ppm-millionyears-20451

15. Ruters miljøstrategi 2014-2020

3. http://unfccc.int/paris_agreement/items/9485.php

16. http://www.smartcitybaerum.no/Pages/default.aspx

4. http://hagainitiativet.se/en/

17. https://www.regjeringen.no/no/dokumenter/meld-st-26-20122013/

5.

id722102/

http://hdr.undp.org/sites/default/files/2015_human_development_ report.pdf

18. Bioplastic report, ZERO 2014 ("Klimaløsning: Bioplast! - Status, barrierer

6.

og virkemidler for fornybar plast. ZERO, 2014.)

https://issuu.com/xynteo/docs/n203040_-_report__english__2015_231 19. 7.

http://blogs.ei.columbia.edu/2012/05/09/emissions-from-the-cement-

http://www.sb-index.com/2016-official-reports/

industry/

8.

20.

https://storage.telenorexpo.no/wl/?id=H4MBQFMROjFlYigeR7B6XuzW

http://www.miljodirektoratet.no/no/Nyheter/Nyheter/2015/Juni-2015/

VgdYLU3f

Fa-bokser-og-tomflasker-pa-avveier/

9.

21.

http://www.ofvas.no/bilsalget-i-september/category700.html

http://www.hydro.com/no/Hydro-i-Norge/Var-virksomhet/forskningog-utvikling/Resirkulering/

10. http://elbil.no/elbil-2/elbilens-fordeler/

22. http://www.avfallnorge.no/artikkel.cfm?pArticleId=46794&pArticleColl

11.

ectionId=3918

http://www.dn.no/privat/dnBil/2015/07/01/1628/Nye-biler/n-vilelbilene-ta-av-ogs-som-firmabil

23. http://www.coca-colacompany.com/plantbottle-technology

12. http://www.dairyreporter.com/Manufacturers/TINE-looks-to-new-

24.

Nikola-One-truck

http://blogg.zero.no/2016/01/100-fornybare-melkekartonger/


Norway 203040 Coalition

25. http://www.ikea.com/ms/en_US/img/ad_content/2015_IKEA_ sustainability_report.pdf 26. http://www.hydro.com 27. http://www.powerhouse.no 28. https://www.regjeringen.no/contentassets/ cffd547b30564dd9a2ae616042c22f26/grunnlagsdata_for_skipstrafikk_ og_drivstofforbruk.pdf 29. http://unepinquiry.org/wp-content/uploads/2016/09/The_Financial_ System_We_Need_From_Momentum_to_Transformation.pdf 30. http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID =27058&ArticleID=35902&l=en 31. http://www.marhub.no/?p=page&pid=13 32. https://www.dnvgl.com/news/norwegian-joint-effort-to-ensure-greencoastal-shipping-9918 33. http://www.siemens.com/innovation/en/home/pictures-of-the-future/ mobility-and-motors/electromobility-electric-ferries.html

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Norway 203040 Coalition


Norway 203040 Coalition

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Partners – Agder Energi Coca-Cola European Partners DNV GL Hurtigruten Hydro IKEA Kongsberg Gruppen Marine Harvest Nordea Ruter Snøhetta SpareBank 1 Forsikring Statkraft Statnett Statoil Storebrand Telenor TINE

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Norway 203040 Coalition