Companies' Pivotal Role in Driving Sustainable Transformation: Interviewing Carl Lindgren
Meet Carl, the fourth member of the Combient Pure Advisory Council, who was actively involved in the founding of Combient Pure and currently serves as a board member at Combient. Carl brings a wealth of experience to the Advisory Council, as his career spans both the corporate and nonprofit sectors. Carl will share his insights about companies' crucial role in driving sustainable transformation in this blog post.
1. How would you describe the current discourse on climate change? I addition, which pressing issues do you believe require immediate attention in today's world?
The global discourse on climate change has shifted from debating its existence to acknowledging it as an undeniable reality. While the focus on mitigating its effects has become more pronounced, the sense of urgency remains lacking. Currently, discussions primarily center around adaptation, such as how to accept and live with global warming, a perspective that I find disheartening. It's equally as important to simultaneously engage in conversations about proactive measures.
Human nature tends to struggle with addressing long-term issues that will impact us in the future. On the contrary, we excel at crisis management when facing immediate crises. However, the lack of urgency is sadly missing, and addressing issues with long-term consequences is challenging, especially when the effects will unfold over the next 30-40 years.
The realization of the necessary lifestyle changes for a sustainable future hasn't fully entered our collective consciousness, which brings two things to my mind that need immediate and continuous attention. Firstly, there is a need for an accelerated transition to a more sustainable energy supply. While an energy revolution is underway, progress is slow, making the swift transition to fossil-free solutions a priority. The second need is the development of a circular economy. Although various initiatives are in progress, I haven’t seen one that would have made a substantial difference. We need more impactful pilots to see which ones will stick. We often overestimate what we can do in two years and underestimate things we can do in five years.
2. How do you see the companies' roles regarding these themes you just mentioned?
To me, the discussion often revolves around companies driving change, but I don’t subscribe to that view. Companies, in my opinion, can act as highly efficient agents of change, but they don’t inherently drive change. Instead, they respond to various pressures, such as market dynamics, consumer demands, and political regulations. Forward-thinking companies anticipate the trajectory and proactively adapt to the evolving landscape, staying slightly ahead of the curve. This said, companies play a crucial role in adaptation due to the changing business environment. However, they are not merely driving change; rather, they embody the change itself. The true drivers of change, I believe, are consumers, coupled with the political and regulatory framework. These external forces steer the direction of change. Risk mitigation becomes essential in this context.
The strength of companies lies in their ability to adapt to changing circumstances efficiently.
Companies play a significant role in these transitions, and the impact varies across different businesses. If even only 10% of consumers alter their behavior and demand more, it suffices, as companies aim to cater to 100% of their clients. The key lies in the passion and commitment of these consumers, rather than their sheer numbers.
3. In creating sustainable business value, what kind of transformation is required from companies both in the short- and long-term?
Many companies operating in the Nordic region function within a notably transparent environment, where their actions are visible to the world, placing them under constant pressure. Resource efficiency is ingrained in their DNA. We should look at companies based on what they enjoy doing and what they excel at. Carbon pricing is brilliant in this context because it transforms into a cost resource, pushing them to adapt and innovate remarkably. There's no need for companies to undergo a specific transformation for this; it's part of the ongoing adaptation to external pressures, just one facet of a broader transformation. Foresight is essential, but challenging, given the dynamic landscapes shaped by geopolitics, wars, and rapidly evolving technologies like digitalization. The most successful companies excel at adoption, a crucial skill in this ever-changing environment.
4. As an advisory council member, what do you see as the Combient network's value?
Combient is a brilliant concept that leverages the collective knowledge of various companies and taps into the combined experience of diverse actors, reducing the cost of experimentation. In our current landscape, taking calculated risks is essential, and trying out new initiatives without certainty is necessary. The Combient network facilitates sharing experiences among members, enabling mutual learning. This collaborative approach also lowers the cost of innovation, which serves as a distinct advantage.
5. Talking about multi-company collaboration as a driver of sustainable transformation, what is the most inspiring business case you have seen?
It is challenging to find such initiatives in my immediate surroundings. The most promising examples I have seen occur when companies within an industry, often driven by regulatory pressure, collaboratively establish reuse or recycling systems. In various sectors, there exist areas where prioritizing shared infrastructure outweighs pursuing a competitive advantage (cases Switch or BankID). Similar strategic considerations should be applied in sustainability, with the forest industry serving as a notable example of effective collaboration.
6. What strategies can companies implement to transition towards a circular economy model and promote resource efficiency?
Most manufacturing companies seek commercial reasons to alter the product lifecycle. I firmly believe it's about building on that foundation and fostering a lifecycle-oriented perspective. From the company's standpoint, resource efficiency is straightforward. If being resource-efficient is profitable, companies will naturally adopt it. On the contrary, if it's not financially viable, implementing it becomes challenging. Changing the regulatory landscape and engaging in lobbying can be instrumental in making resource efficiency more meaningful for companies.
7. How do changing customer preferences and increasing investor scrutiny affect a company's sustainability strategy and practices?
I still observe a significant amount of "greenwashing," where companies use misleading communications to present their actions to customers and investors without genuinely altering their practices. While there have been positive changes in practices, the improvement hasn't been drastic, while the shift in communication has been that. We have reached a phase where individual investors or customers find it challenging to assess sustainability-related matters, leading to confusion. This will evolve - inconsistencies between what is communicated to customers and investors and actual actions will increasingly be exposed. And this, if you run a company, is what should keep you sleepless at night!
8. Lastly, could you share an inspiring message or story for companies looking to accelerate their low-carbon transition?
I worked with a company in the financial sector, which made me realize that in Scandinavia, environmental considerations are very ingrained in our culture. When outside Scandinavia, we are often perceived as environmentally friendly. Observing how the world views us and companies originating from our region is intriguing. By simply being from our region, the rest of the world expects us to be at the forefront of environmental responsibility. As a Scandinavian, I find this gratifying but also disheartening. It's both satisfying and concerning that the rest of the world sees us as a gold standard, a dynamic that raises my worries about the state of the planet.
Introducing Carl Lindgren
Currently, Carl Lindgren contributes as a board member to several companies and nonprofits, including his roles as a board member at Combient and the Tenure Facility, Chairman of the Board at Plan International in Sweden, and Senior Advisor for the Global Challenges Foundation. Carl has a background in the finance and audit industries and has also served as a chairman of the board in KPMG.
Stay tuned for more climate-related conversations in our ongoing blog series