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Sustainable supply chains in Swedish industry

A picture of metal laser.



The project studied models and approaches that large companies used to promote an upstream sustainable supply chain, identified success factors, and developed a new, unique model for supplier sustainability assurance.

Sweden's manufacturing industry is today characterized by a few large companies, so-called focal companies, which are often at the end of the supply chain, and a very large number of small and medium-sized companies (SMEs), whose core business often primarily consists of production as a subcontractor to the large the companies. In order to achieve a more efficient and low-carbon production, a holistic approach needs to be taken that includes the entire supply chain.

More efficient industrial energy use is one of the most cost-effective ways to reduce greenhouse gas emissions and thereby counteract the threat of increased global warming. Large companies often have both resources and capital to work with this. For small and medium-sized companies, there are usually not the same resources available. Common challenges are lack of time and other priorities. In addition, a lack of customer demands for increased energy efficiency is highlighted as a reason why profitable energy investments are not carried out.

Primary actors and objectives

Primary actors

There are three primary actors that can promote and motivate more efficient industrial energy use among SMEs:

  • The Energy Agency's promotional activities, e.g. energy auditing support and the energy efficiency network programme.
  • Regulatory authorities, e.g. The Swedish Environmental Protection Agency and county administrations can demand energy mapping, energy plans and require the company to implement measures.
  • The large companies (focal companies), i.e. the clients of small and medium-sized companies, who can place sustainability requirements on the small and medium-sized companies (suppliers) and thereby promote increased energy efficiency in industrial processes with reduced emissions as a result.

    In addition, banks have the opportunity to make demands on their borrowers.

    The benefit of large companies taking overall responsibility for promoting a sustainable supply chain is that they can act both as promoters of energy efficiency and as demand setters.

Objectives

The project's overall goal was to facilitate the development of sustainable supply chains in Swedish industry, where energy became a strategic issue for small and medium-sized enterprises. More specifically, the project studied models and approaches that large companies used to promote an upstream sustainable supply chain, identified success factors, and developed a new, unique model for supplier sustainability assurance.

Together with the University of Gävle, the project was conducted in close collaboration with several of Sweden’s leading companies in sustainability work: Volvo Construction Equipment, Electrolux Professional, and Tekniska verken in Linköping AB. The project was led by Linköping University.

Publications

Xavier, B. M., Thollander, P., Hilletofth, P., & Johansson, M. (2024). [Review of Exploring energy management integration into upstream supply chains : a systematic literature review]. Frontiers in Energy Research, 12. Published.

Hilmola, O.-P., Fobbe, L., von Haartman, R., & Hilletofth, P. (2025). Energy efficiency of manufacturing supply chains: Swedish survey findings. Frontiers in Energy Research, 13. Published.

Researchers

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Organisation