The Nordic region is renowned for its ambitious sustainability goals and innovative approaches. This commitment is reflected in their strong environmental policies, high renewable energy uptake, and effective governance, which consistently place them at the top of various sustainability indices. 

Sweden, for instance, aims to be climate-positive by 2030, boasting more than 38 times more impact startups than the global average and the most unicorns after Silicon Valley.

Iceland running almost entirely on renewable energy

Finland aims to be carbon-neutral by 2035, Denmark targets a 70% reduction in carbon emissions by 2030 compared to 1990 levels, while Iceland is running almost entirely on renewable energy, and nearly all new cars sold in Norway are electric. These ambitious goals highlight the region's dedication to sustainability and provide a benchmark for other European countries.

The sustainability landscape in the Nordics is characterised by groundbreaking regulations, heightened public awareness, and strong corporate responsibility.

Key regulations and change drivers such as the EU Green Deal, the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) emphasise the importance of transparent and comprehensive sustainability reporting.

The Nordics implement these initiatives faster than other EU markets, leading to higher supplier demands. This rapid pace of change requires companies exporting to the region to be agile and proactive in their sustainability efforts.

Culturally, the Nordic countries have a deep-rooted emphasis on sustainability, characterised by a strong connection to nature, trust, and equity. Public awareness and expectations on corporate responsibility are high, driving companies to integrate sustainability into their core missions. This cultural backdrop creates a supportive environment for businesses to innovate and lead in sustainability.

The private sector in the Nordics is stepping up to drive innovation, leverage supply chain influence, and set bold industry standards. Nordic companies are integrating sustainability in a holistic and meaningful way, investing in data-driven reporting, engaging stakeholders, and committing to continuous improvement.

For example, IKEA sources 100% of its wood from more sustainable sources, Novo Nordisk uses 100% renewable power for global production, and Maersk aims for carbon-neutral vessels by 2030. This proactive approach is essential for meeting growing sustainability requirements and expectations, enabling companies to stay ahead of regulatory changes and market demands by fostering a culture of continuous improvement.

Strategies for Irish businesses

For Irish businesses looking to align with the sustainability expectations of Nordic companies, several strategies can be adopted:

1. Embed sustainability into the core business model: Companies should take a serious approach to sustainability and make it a fundamental part of their operations. This involves integrating sustainability into the company's mission and across the entire value chain.

2. Address the full ESG spectrum: Conducting a Double Materiality Assessment is crucial for many companies. This assessment, mandated under EU regulation, helps identify relevant ESG issues by evaluating both financial impacts on the business and broader social and environmental effects.

3. Stay updated: Keeping track of regulatory updates, innovations, and industry leaders' practices is essential. This ensures that companies remain compliant and competitive in the rapidly evolving sustainability landscape.

4. Communicate transparently: Open and honest communication about sustainability efforts is vital. Companies should share their successes and challenges, avoid greenwashing, and ensure their messaging reflects core values. This transparency builds trust with stakeholders and demonstrates accountability.

5. Pursue certifications and eco-labels: Obtaining sustainability certifications and eco-labels, such as B-Corp, ISO14001 and ISO26000 and Nordic Swan Ecolabel, can greatly enhance a company's chances of success in the Nordic markets. These certifications build trust with eco-conscious consumers and stakeholders, showcasing a commitment to sustainability.

Best practices in environmental sustainability include carbon footprint tracking and reduction, resource efficiency, circular initiatives, and sustainable sourcing of materials. Equally important is social sustainability, which emphasises employee well-being, human rights, ethical labour practices, and community engagement. Good governance is also crucial, involving strong sustainability leadership, ethical business practices, and robust risk management.

By understanding and adopting these strategies, Irish companies can successfully navigate the Nordic sustainability landscape, aligning with the region's high standards and contributing to a more sustainable future. If you are interested in learning more about the Nordic sustainability landscape, you can reach out to Ioanna Sidiropoulou at Ioanna.sidiropoulou@enterprise-ireland.com.