So, in this journey of
getting business impact
from your sustainability efforts,
what kind of results have Gunfoss
actually seen in terms of profitability,
growth and potentially other kinds of...
I think we can measure it many places actually.
First of all,
I see it again as a positioning statement,
right?
So we can differentiate ourselves from this one here,
right?
So
customers that demand it, right?
We can supply it.
It's a way for us to maintain our price position in the market.
That's at least one very visible place, right?
Secondly,
in our own portfolio settings,
in what happens inside the company is very much
also about how can we take cost out of the market.
And that's not just about cuts.
It's also about
if we can reduce two kilograms of aluminum in one of our products.
It is really positive on the sustainability impact,
right?
So this is about reducing,
let's say,
the whole footprint in our value chain.
That is something we have been working on for quite many years.
And we are definitely not stopping there.
So I would say that it's a way for us to maintain our price premium.
And it's,
of course,
also a way for us to differentiate.
But on the insights of Grunfors,
it's very much also attractive towards,
let's say,
improving our own profitability levels,
essentially.
On this sustainability journey that you have been
embarking upon for the last couple of decades,
what would be some of the
key learnings that
you have gained?
Key learnings, I think there are multiple.
And I think it will also be different
compared to who you ask in the organization,
right?
But my key learnings is that,
you know,
first of all,
start the journey.
And it's not that difficult.
You might think it's difficult,
but it actually is not difficult.
If you are afraid that you start too early,
I think it's also another mistake,
or at least learning,
if you start too late.
You could argue that when we started to
communicate about CO2 emissions 30 years ago,
or 20 years ago,
or 10 years ago,
even,
it was not natural to talk about those lines.
So, you know, in the market communication.
So people thought that was a little bit,
let's say,
different,
right?
But soon it actually became industry standard.
So at some point,
you know,
you have to start embracing it.
You have to start talking about it.
Maybe customers, or at least
the customers that you talk with on a daily basis is not used to
discuss sustainability with you.
So one of the learnings is also that you
will actually also meet new stakeholders.
stakeholders at your customers, right?
So instead of meeting the purchase department,
it might be that you actually get
access to maybe a sustainability office,
or at least it could be another one
from the senior management team there,
which actually is very interested in this agenda,
right?
So essentially, the learning is here that
embracing sustainability will also suddenly open up
towards new stakeholders that you haven't met before.
And that's back to that you will also have,
let's say,
new discussions and bring on new perspective
to new people, right?
So that is really a key learning here.
So very, very positive.
On a little bit negative side is also that,
you know,
it is quite surprising that it actually also can cost some money,
right?
It's not free of charge.
So it is really something that you as a company,
I think when you see the first bill,
it might look extremely expensive.
But imagine whatever happened if you simply lose your entire
market position,
because you are not embracing the sustainability agenda,
right?
So that is the balance you have to understand that
nothing comes for free and especially not sustainability.
But there are things you can do which are very classic compared to,
let's say,
in relation to sustainability.
I mentioned this about,
for instance,
reducing the footprint of a product,
trying to,
let's say,
keeping the same quality,
but maybe see if you can reduce some of the material
that you use in the product that has a super good impact.
It does maybe not cost that much to implement,
but
it is quite useful.
Another thing is,
for instance,
also that you can also look at,
you know,
can I,
for instance,
my waste in my production,
can someone else use that waste,
right?
That is also a learning that,
you know,
even though that
you believe that your waste is waste,
it might be that waste is actually
valuable resources to other companies,
right?
So the learning is also that
sustainability brings on new partnerships.
It brings on new companies and new relations.
And
it might be even also crazy enough that maybe you will talk with
competitors at some point in time or just want to formalize.
Maybe it could be the idea about how you actually calculate the CO2
emissions and how do you actually calculate the sustainability impacts.
I really foresee a future where the ecosystem around
sustainability is bringing new perspectives and
new companies to the dialogues we have in Grundfos.
And I look very much forward to that.
What could be some ideas of how do we start this journey?
How do we get going?
What's the first step?
Very natural,
it will be to understand your position in the value chain,
right?
To understand, you know,
how can you impact?
You know, as I said earlier,
if you believe that you cannot make an impact,
you have made a mistake,
essentially,
right?
And I really think it,
of course,
depends on the size of the company you are, right?
Are you a big one or a small one?
That really depends on the magnitude you can implement from day one.
But essentially,
it really starts with you understanding what is your position
in the value chain and what can you offer as part of that,
right?
So,
for instance,
can your waste be used for something else in other processes,
right?
That is quite important to understand.
Again,
if you look at that,
you don't think you have a role to play here,
it is really,
it's really not a good answer,
right?
So,
you have to start looking for,
you know,
even though you think the contribution is small,
you have to start identifying what the
role is that you want to play here,
right?
Look at competition.
What are they doing?
The closest peers you have or someone just next to it,
adjacent businesses.
What are they doing, right?
What are the big ones doing?
What are the closest local competitors?
What are they doing, right?
Look around, you know, just don't sit here
and narrow yourself down into your own silo.
Flink across, right?
And maybe look at some of the digital companies that is out there.
Maybe some of the big automation companies.
They are really trying to move ahead on this one here.
So, get inspiration, right?
And,
of course,
reach out to people that talks about this on social
media because I think that's really where it starts,
right?
So,
the key message is that everyone can play a role here,
but it starts with you as a company.
You understand
what is your role.
And,
of course, you can also invest into this.
So,
I would also say that you have to put the responsibility somewhere.
You can,
of course,
like Grunfors,
you can embed it into the core strategy.
But I think also what you also should do
is maybe to point towards responsibility.
It can be in the business development function.
It can be if you're a big company,
point out a sustainability officer if you don't already have that.
That is quite important to
at least take some steps.
And, again, remember, this is a cycle, right?
So,
even though that you make one or two mistakes right here,
right now,
you can,
of course,
change it.
But the biggest mistake is if you don't start the learning cycle.
That's my main takeaway here.
And if you were to conclude a few pieces of advice to our viewers,
what would that be?
So, a top three advice.
I think with a risk of coming back to some of the earlier points,
let me try to summarize these three points.
It really starts,
again,
by taking the first steps.
And I think you should,
as a company,
you should anchor it in your strategy.
You should talk about, you know,
how is it we want to play this?
What is our role as a company, right?
If you don't go in that direction,
if you just take this for granted and you just
take your brochure and put a sustainability logo
on the front page and do nothing else than that,
you are on the wrong path.
You have to change that.
So, that's at least the first step.
Number one is that whenever you are planning to
update your strategic ambitions or directions,
please have a session around this topic here.
I think that is quite useful for everyone here.
Second is that,
you know,
everyone has a role to play.
Even though that you believe that,
well,
that's maybe not so much for us or
I'm producing this piece of plastic and it really is not that
impacts full on the world if I change this.
Or if you believe you are a small
startup and produce something that is,
let's say,
significantly small,
then it's again a mistake if you
don't try to take this that seriously,
right?
So,
taking the first few couple of steps,
that's really,
really important to convey here to the viewers here.
I wish you have asked for 10,
but the last and third one here is essentially that,
you know,
it is something that does not come for free,
right?
It is something that you have to allocate
money for, right?
Of course,
it depends on which business you are from,
right?
But you have to accept that you will maybe not find
a business case on it here in year one that will
give you a two or three years return on investment.
It might be that a return on investment will come
after a few years.
But what you will see is that soon,
and that's why that the industry and,
of course,
sustainability is converting into the same field now,
is
that sustainable business
is soon also going to be profitable business.
So,
you have to accept that,
you know,
coming up with a business case,
it might not show a fantastic return on
investment year one or year two or year three.
But anyway,
to me,
that is really,
really important to say that
you have to accept that that's how it is,
because that's also part of the change and driving change.
And you cannot expect profitability from year one.
But again,
if you're not doing it,
I can ensure that at some point in time,
you will simply risk of losing your complete market
share in the market if you're not doing this.
So,
that's why it's super important that you start the journey.
Yeah.
Yeah.