Reduced climate impact protects your profits

All companies today face a crucial transformation: reducing dependence on fossil resources. Climate impact is a central focus, and the cost of using fossil resources continues to rise. Companies that fail to transition risk higher costs, lower profits, and reduced interest from customers and investors.

We spoke with Per Hökfelt, Head of Sustainability at Gunnebo, about why companies need to reduce their reliance on fossil resources to remain competitive and protect their bottom line.

Fredrik: Hi Per! Why is it important for companies to integrate sustainability into their business models?

Per: Because “the fossil alternative” – fossil fuels and materials – is becoming more expensive. With increasing fees from emissions trading and decreasing fossil subsidies, companies that stick with fossil options face higher costs and shrinking margins. Reducing your climate impact is pure business logic – it’s essential for maintaining competitiveness and protecting profits.

Fredrik: How will this affect businesses?

Per: The majority of today’s companies rely on fossil resources. If they continue business as usual, rising costs for fossil fuels and materials will reduce profitability. By aiming for a fossil-free business model, companies can boost profitability without the extra costs tied to fossil resources. It’s about creating a business model where you can grow sales without increasing your fossil footprint.

Fredrik: What role do suppliers play?

Per: A significant role! Even if our own direct emissions are small, the indirect emissions – from purchased materials and services – make a big difference. That’s why we need to look at the entire supply chain to reduce our climate impact.

Fredrik: What’s required for companies to reduce their reliance on fossil resources?

Per: We need to work on multiple fronts. First, we need to increase the use of recycled materials. But in many industries, that won’t be enough. Steel, for example, which is critical for us at Gunnebo. That’s why we’re looking at fossil-free steel, which will hit the market in 2026. Designing products that can be sold or rented out multiple times is also key. Circular products allow us to increase revenue without new material costs. Servitization is another approach – offering products as services instead of one-off sales creates long-term value and reduces climate impact.

Fredrik: So, the goal is to be both sustainable and profitable?

Per: Exactly. Reducing reliance on fossil resources isn’t just about the environment – it’s crucial for protecting profits and future-proofing the business. It’s a win-win solution for both the environment and the company.

Fredrik: It sounds like important work! Any final thoughts about the future?

Per: Reducing climate impact is not optional – it’s a necessity. By taking responsibility for our climate impact, we’re building a sustainable and profitable business model that benefits both the environment and the company. Future-oriented businesses think long-term – and those who want to stay relevant in tomorrow’s market start their transition today!