What characterizes successful companies in 2025

Top 5 risks for the global economy are all related to the environment

The World Economic Forum annual meeting was held in Davos In January 2020. In their report of the most likely risks that will affect the global economy, all of the top 5 risks are related to the climate and environment:

  1. increased occurrences of extreme weather
  2. the after effects that will follow if we fail to act on the climate changes
  3. natural disasters
  4. loosing biodiversity and ecosystems
  5. environmental disasters caused by human

We wanted to know better how companies should act in this wave of sustainability change needed. And what characterizes a successful company in the year 2025 (5 years from now and 5 years left to reach the goals of agenda 2030)

4 trends that affect companies with regards to sustainability

In Sweden we have identified 4 trends that affects companies with regards to sustainability and pushes an increased focus on it regardless what company or industry.

International & institutional capital flows towards sustainable investments

The biggest owners on the Swedish stock market are putting their weight behind sustainable investments.

One example is BlackRock that emailed all the CEO’s that climate risks are investment risks

Another example is Swedbank Robur who issued a new policy in november for sustainable investments

Regulatory expansion within multiple areas

EU taxonomi is to be implemented in 2021. And of course we have Agenda 2030.

In Sweden we recently received an updated version of the Swedish Code of Corporate Governance that includes stricter regulations around sustainability reporting.

Customer behavior changes with increased awareness

The Greta-effect. And it is not just B2C. For B2B consumption there are now more demands on suppliers.

Even though the end consumer is aware, they are not consistent in the purchasing behavior. This indicates that we are in the early phases of this trend.

Transparency is required for all stakeholders

Both B2C and B2B consumers want to know that the product and services they buy are sustainable.

Employees and partners want to know how the companies act.

Broad study of 40 of the largest and most well known Swedish companies

These trends definitely have a big impact on companies. With this in mind we wanted to understand better how far companies have gotten and what they think of the future.

We interviewed 40 of Sweden’s largest and most well known companies across multiple industries. The interviews were conducted with Owners, Board members, CEOs & Sustainability directors.

  • finance
  • insurance
  • construction
  • energy
  • real estate
  • infrastructure
  • forest industry
  • car industry
  • manufacturing industry

The interviewed individuals and companies are kept anonymous to get as honest picture as possible.

The result of the study lead to 6 main observations that both brings up the current situation and what they think is critical in the future to still be a successful company in the year 2025.

Want to have a successful company in 2025? Then these are the 6 areas to work with

You best-before-date

It’s about profit

Smooth choice

Keep it real

Bye bye silo

Measure and score

Conclusions

We are in the midst of a huge shift. You need to be prepared for when the wave hits in your industry so you are able to ride on the wave of change happening.

Your company need to go from business as usual to a constant “business as unusual”

Do you know when you get hit by a tipping point?

How long will you be relevant for customers, employees and investors?

For how long will you be able to continue with your current business model?

We have a ton more interesting material that we would like to share and help your company transition and become a successful company in 2025! Contact me if you want to meet and discuss more.

 

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