An SKF employee examines some sheet metal. The company received a high ranking in the 2010 Sustanibility Yearbook. Photo: Sandvik
Corporate responsibility is used to describe the work that companies do voluntarily that has a positive impact on society, the environment or the economy. The EU Commission uses the term corporate social responsibility (CSR) and defines it as a concept “whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” Efforts to lower emissions of carbon dioxide, promotion of equal career opportunities and involvement with local communities are examples of such initiatives.
Sweden is doing more than most, and has been doing so for some time. Back in 2007, in the final State of Responsibility Competitiveness report by international nonprofit organization AccountAbility, Sweden topped the Responsible Competitiveness Index. The index was based on a range of parameters covering climate, working environment, corruption and social issues among companies in 108 countries. In particular, the report highlighted gender equality in Sweden.
Leading in cleantech
Yet as awareness of corporate responsibility has matured, the scope of reporting has had to be redefined. AccountAbility states that the topic is now too broad to cover accurately in only one index, so it has refocused its research on specific areas. One of its reports, the Climate Competitiveness Index 2010, acknowledges the Nordic countries to be in the forefront of combating climate change and promoting the development of “cleantech,” an umbrella term for innovations that reduce emissions or energy consumption.
Gender equality
When it comes to gender equality, the World Economic Forum’s Global Gender Gap Report 2010 states that Sweden and the other Nordic countries “emerge as top performers and true leaders on gender equality … and thus serve as models and useful benchmarks for international comparisons.” The Report benchmarks national gender gaps based on economic, political, education and health criteria.
Gender equality is one important aspect of the way companies work with corporate responsibility. They can promote equality, for example by making it possible for parents to combine work and family, encouraging shared participation in childcare, and giving women and men equal opportunities to rise to leadership positions.
Equality in the workplace is one way for companies to work with corporate social responsibility. Photo: Bildarkivet.se
Global sustainability leaders
Swedish corporations are often praised for their far-reaching work with corporate responsibility. Several recent studies list Swedish companies in this perspective:
• Corporate Knights analyzes companies for their environmental, social and governance performance. In the 2010 Global 100 study, it ranked the Swedish companies H&M (4), Atlas Copco (34) and SCA (63) among the 100 most socially and environmentally responsible companies in the world. Parameters included carbon dioxide emissions, leadership diversity and taxes paid.
• The Dow Jones Sustainability World Index also assesses business performance. Only companies that meet the highest requirements within environmental protection, and worker and human rights are included. In 2010, 392 companies representing 29 countries were listed. Atlas Copco, Electrolux, Sandvik, SKF, SCA, Swedbank, TeliaSonera and Volvo were the Swedish companies chosen. The Sustainability Yearbook 2010 provides the basis for the Dow Jones Sustainability Indexes. It listed three Swedish companies as gold or silver class leaders: Electrolux (gold), SKF and SCA (silver).
• The global investment banking and securities firm Goldman Sachs and financial services company UBS generally rank Swedish companies highly when it comes to sustainable operations. Goldman Sachs’ Sustain Research Team includes ABB and Atlas Copco as its absolute global favorites, but Volvo and SKF are also among the top ten in the industrial sector. The bank says the Swedish companies’ leading positions are largely thanks to their transparency and extensive public information regarding environmental and social issues. UBS is also impressed by the Swedish industrial sector and recommends Assa Abloy, Atlas Copco, Sandvik, and SKF as its sustainability favorites.
Government inspires improved sustainability for Swedish companies
By placing requirements on its own enterprises and promoting sustainable initiatives in general, the Swedish Government aims to inspire all companies to increase their sustainability efforts.
The Swedish Government encourages the private sector to follow the OECD’s guidelines for multinational companies, and to apply the ten principles regarding respect for human rights, employee rights, environmental responsibility and anti-corruption from the UN Global Compact.
Leading by example, Sweden became the first country to have a coordinated government function for corporate responsibility when the Ministry of Foreign Affairs launched its Global Responsibility unit in 2002.
Compulsary reports
Sweden was also the first country to demand sustainability reports from state-owned enterprises. The reports have to comply with guidelines from the Global Reporting Initiative (GRI). The GRI seeks to uphold global standards in sustainability reporting and make it easier to assess and compare companies from social, environmental and economic perspectives.
A survey has shown that compulsory sustainability reporting has raised awareness among companies and led to greater sustainability efforts.
Four of the funds in the national Swedish pension system – AP1, AP2, AP3 and AP4 – collaborate through their Ethical Council. The council works to produce positive change in companies outside Sweden associated with violations of international conventions on environmental and human rights.
Environmental initiatives
Strict environmental legislation combined with high levels of environmental awareness and knowledge have led Swedish companies to be environmentally innovative and efficient in their operations. Environmentally friendly production techniques, in particular within industrial production, are now often exported to other countries.
Swedish companies are developing world-leading cleantech solutions, such as solar cells. Photo: Scanpix
Swedish companies also occupy world-leading positions within the field of cleantech. Cleantech is a term used to describe products or services that improve operational performance, productivity or efficiency while reducing costs, inputs, energy consumption, waste or pollution. It also helps promote competitiveness and growth in Swedish industry.
Companies setting good examples
Indiska
The fashion and home furnishing chain has influenced working conditions and production processes in the factories where its goods are produced for many years. Representatives have carried out more than 400 factory visits over the past five years. Indiska strives to build long-term relationships with suppliers, cooperating closely with them to improve working conditions and fulfill the requirements in its code of conduct.
www.indiska.com
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Home design from Indiska.
Photo: Indiska |
IKEA
Cotton is one of the most important raw materials for IKEA, and the company wants all cotton used in its products to come from more sustainable cotton production. The Better Cotton Initiative helps IKEA create lasting and large-scale improvements in conventional cotton cultivation. Besides reducing environmental and social impacts, Better Cotton decreases production costs for farmers. This helps IKEA offer competitively priced products that satisfy consumers’ needs as well as IKEA’s ambitions to provide responsibly sourced products.
www.ikea.com
H&M
H&M is a clothing company with about 2,000 stores around the world. It has a new eco-clothing line called Conscious Collection. H&M works actively with its suppliers to promote labor rights and reduce environmental impacts. Around 700 suppliers manufacture H&M products, many of them in countries where issues such as child labor and workplace safety can pose problems. H&M has an audit team of 70 people that monitor suppliers’ compliance with the H&M code of conduct. To improve working conditions, H&M also provides training to its suppliers.
www.hm.com
Coop
The supermarket chain has more than 1,700 organic products in stock. Coop has a market share of 21 percent, but sells 30 percent of the organic food in Sweden (2009). It is easy to find organic products in the stores thanks to special labels on the shelves, and the share of organic products in each purchase is clearly marked on the receipt. Coop is also working to expand its range of fair trade goods. In 2011, Coop was named Sweden’s most sustainable brand.
www.coop.se
Publisher:
Swedish Institute
Published:
August 2011
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