Nine out of ten new vehicles sold in Norway are electric. This represents a massive systemic and sustainable change in an impressively short time period. It has got me thinking about how countries - and businesses – can successfully make big change happen. We are all wrestling with ESG issues that seem too large to tackle. So what can we learn from the Norwegian approach to make our businesses ESG slicker, quicker?
Clear, ambitious goals
Norway set a clear goal for zero emissions vehicles back in 2017 and have stuck with it. Thinking about how your business can get to net zero? Set a clear science-based goal, with tracked and published milestones. 2040 or 2050 as a target is too far away to be 'todays problem' for most employees, so incremental targets are needed. Explain to business functions why they are needed and co-create the deliverables. Build gateway successes into managers performance objectives. Don’t be tempted to make the targets too weak. It will just push the inevitable change further down the track whilst indicating to your stakeholders (internal and clients) that climate risk isn’t a priority for your organisation.
Incremental incentives, useful disincentives
Norway used a mixture of EV incentives and tax disincentives to drive change. For example EVs are allowed to drive in bus lanes, so users get a clear incentive in dodging the traffic. Want to make meaningful change on sustainable travel within your own organisation? Identify the incentives and disincentives. Simply whacking a policy in place banning unnecessary travel is likely to go down badly. Providing perks and benefits for those with a low carbon footprint whilst 'taxing' high emission travel - perhaps to fuel a sustainability innovation fund within your organisation - is more likely to achieve change. Data is critical here, you need the carbon figures embedded in your systems to allow people to make the right choices.
Infrastructure
Norway has invested heavily in EV charging infrastructure, meaning per 100.000 people it has 447 EV chargers compared to 89 in the UK. Systemic change often requires infrastructure investment. A business looking to decarbonise can 'patch up' its buildings with new lighting or HVAC to find carbon gains. But sustainability need to be built into your wider ‘infrastructure’ investments to do the hard yards. Consider your big spend decisions coming up, and methodically build in carbon and environmental criteria. For example - what sustainability standard (e.g. NABERS) should your next office have? How will you weight sustainability criteria in supplier retenders? How will your next career framework build responsible business acumen into roles? All of these elements contribute to a businesses infrastructure. All can be strategically aligned to drive more focused change.
Awareness campaigns
As a final example, the Norwegian government conducted extensive public awareness campaigns to educate their citizens about the benefits of EVs. Business need to do the same. Looking to increase diversity representation within your business? Then you need to use training, internal comms and leadership messaging to make it clear how a lack of diversity ‘bites’ your organisation and how increased diversity benefits. Use different messaging for different audiences. Human impact, talent attraction, innovation, bottom line. The proof points already exist, use them to drive the change.
ESG challenges can often seem like mountains that are too big to summit. But our Norwegian friends have shown how big change in a short time scale is very possible. We can all take inspiration; and add some charge to our change.
Norway is the world leader when it comes to the take up of electric cars, which last year accounted for nine out of 10 new vehicles sold in the country.