You need to integrate sustainability into a business strategy. Not something you can add on top. You need to make sure it goes into the core of the company. For Scania, for example, we do not have sustainability strategy. We have a sustainable strategy for the whole company, which brings everything together. I personally believe if you are not taking sustainability as a business opportunity and transforming yourself, you will soon not be relevant because no one will want to buy your products or services, no one will invest in you, and no one will like to work for you. It's about sustainability for the company as well, to transform yourself to survive. We are witnessing digitalization enabled shift to sustainable solutions in various fields. Use solutions will have an effect on how we evaluate offerings in the future. In order to understand the value of an offering, we need to address and reflect on four different value dimensions; value creation, value delivery, value capture, and of course, the customers. What questions should we ask ourselves? Value creation, what sustainable solutions can we offer to our customers, which also benefit their and their customers businesses? Value delivery, how should activities and processes be deployed to deliver a promised sustainable value? Can we ensure long-term sustainability? Value capture, why is our revenue model financially viable and sustainable? Customers, who are target customers? Does the offering contribute to our environmental, social, and our economic capital? By processing these four dimension, we can revise and even re-design value related processes and reduce negative impacts. I would say the main challenge when it comes to moving towards more sustainable solutions is in here because we are, for example, using a language that is affecting our way of thinking a lot. We're talking about waste, we're talking about second hand products, we're talking about ownerships, and we're talking about the consumers. We should talk about uses. We should not talk about waste. We should talk about resources. We should talk about having products that have a long life and so on. We should talk about positive things because if we, instead of talking about all the problems we have now when it comes to environmental issues and instead focusing opportunities, that will also change our mindset. If we can take away main concepts like consuming is destroying and talk about uses and access instead of ownership, that will trigger new ways of thinking. But if we also can then focus on looking on this in positive way, this will be more interesting to work with, rather than working with problems because no one wants to work with problems. Focus on environmental challenges and opportunities, I will say data is the key. There many innovation opportunities if we focus on sustainable value. Values that often depend on digitalization to be realized. Yet it is important to look at the full effect. Less costly solutions could increase overall consumption, which leads to high demand on limited resources. This is what we call the rebound effect. It is also important to understand how changes in the socio-technical system affect resource efficiency. We often focus on technology, but change and effects come when we integrate digital solutions into business system and into the customer's context. The Ellen MacArthur Foundation has define six business actions that can support circular economy. It is called the resolve framework, where each action represent new business opportunities. Regenerate refers to the shift to renewable energy and materials, where we reclaim, retain, or restore the health of ecosystems. For example, energy companies are supporting the restoration of land, of retaining forest areas after harvesting the forests are also similar business actions. Share refer to the share of assets such as car, rooms, appliances, think of Airbnb, carpools, [inaudible]. It can also refer to expanded technology called lifetime, such as second-hand and repairable items. Optimize refers to the increase in efficiency, performance, and quality. Industrial lean processes are very much in line with this perspective. Still, it is important to realize that optimization can also be done in cooperation, not only within the company. It should have a sustainable approach. With the support of digitalization and for example, machine learning, we can secure higher efficiency. Loop refers to the remanufacturing of products and components or the recycling of materials. This works very well in some areas, such as newspapers and bottles. But it becomes more and more difficult with additives and products with composite materials, which are more difficult to recycle. There is a problem, for example, with small integrated circuits in electronic appliances and computers, which are very difficult to separate into different materials. Visualize refers to delivering virtually or as a service There are traditional B2C services such as Spotify, conference calls on Skype, e-books on Kindle. As for B2B offerings, remote monitoring would support a predictive maintenance. Is also good example. Exchange refers to the replacement of the old with new sustainable technologies or sustainable energy sources, or simply the choice of new products; ready to meet solar cells, fuel cells. What we can use the result framework for is to develop offerings better adapted to circular economy and not based on the linear logic, such as take, make, dispose. This ask for change in business models. Just as many companies need to revise or redesign value related processes and reduce negative impacts.
