Key performance indicators (KPIs) must be recalibrated to transform environmental, social, and governance (ESG) objectives into commercially viable strategies. This shift necessitates a comprehensive change in metrics at all organizational levels.
During the ESG panel session at the NextGen Nordics conference in Stockholm, Angela Hultberg, Global Director of Sustainability at Kearney, emphasized the importance of integrating sustainability into business initiatives. She stated, “Costs should be assigned to actions, and responsibility must be clearly defined.” Hultberg encouraged organizations to take charge of their supply chains, noting that reducing Scope 1 and 2 emissions can create avenues for commercialization. She cautioned that simply undertaking projects will not suffice to achieve net-zero targets.
Echoing Hultberg’s sentiments, Philip Haglund, Founder and CEO of Gimi, advocated for setting clear targets and articulating the ‘What?’ and ‘How?’ of sustainability efforts. He remarked, “Profitability is a natural aspiration, but we must find purpose in our work,” highlighting that 80% of university graduates prioritize financial success.
Haglund strongly believes in education as the foundation for change, asserting that ambitions and values are cultivated in school and college environments. He pointed out that even successful startups, which often begin with a strong sense of purpose, can become overly focused on profits due to the prevailing consumerist mindset.
Asa Nilsson Billme, Head of Diversity and Inclusion at Nordea, outlined a comprehensive approach to ESG, stating, “Inclusion is the key to leveraging diversity.” She stressed the importance of harnessing varied experiences to drive change across product teams and organization-wide initiatives. “Without buy-in, meaningful change will be elusive,” she warned.
Despite the growing interest and momentum surrounding ESG topics in recent years, Hultberg observed that many organizations still approach these issues merely as compliance requirements. She remarked, “For some, it is seen as a hygiene factor necessary to attract investors, reflecting a superficial understanding of the potential for financial gain.”
The panelists agreed that the current piecemeal project approach to sustainability could pose challenges as future regulations are implemented. These regulations are expected to simplify and standardize the metrics used in sustainability reporting, paving the way for more cohesive and reliable assessments.