At Westermo we see sustainability as a system science, integrated at the core of our business strategy. We work continuously to ensure that our sustainability efforts are covering our whole value chain, leading to economic success and reduced environmental impact.

Collaboration brings perspectives together
Sustainability issues require different perspectives and competencies, making collaboration crucial both internally and externally. 

“Risks and opportunities are best managed where they arise. Our strategy is based on integrating sustainability into our core business and our various functional areas, from research and development to service and sales," says Lena Westerholm, Sustainability Manager at Westermo.

Finance and sustainability are closely intertwined
Identifying and addressing sustainability issues is essential for combating climate change and supporting the Paris Agreement. One step in the right direction is leveling up sustainability reporting. Johan Inestam, CFO at Westermo, explains how sustainability reporting can reach the same level of data and accuracy as financial reporting. 

"Through the CSRD we have found an effective sustainability reporting structure that allows us to generate data in many new areas. This enables decision-making and drive sustainability activities forward." 

Lena adds, "With the reporting structure in place we get the data needed to understand where we can make the biggest difference, and make the conscious decisions needed to ensure we move in the right direction.”

The work on leveling up sustainability reporting has also led to better collaboration within the organization and across various departments. Johan describes, "All functions are involved in different ways. We have gained more knowledge and raised our competence about our impact across the value chain."

Internal carbon pricing
An example of how collaboration across different functions - finance, procurement, and sustainability - drives development is Internal Carbon Pricing (ICP). 

"By assigning a monetary value to carbon emissions, we get a better understanding of the economic impact of our decisions. It provides an estimate in money of how our decisions impact," explains Johan.

The ICP makes it easier to compare emissions costs in relation to investments. This improves transparency and enables Westermo to make profitable and climate-conscious investments. 

"Westermo’s biggest climate impact lies in Scope 3, the use phase of our products and purchase of goods and services. The ICP gives us the foundation to stand on when the entire value chain is covered," says Lena.

Johan adds, "We show that we are taking leadership in climate issues and that the whole organization share responsibility for working on climate issues."

Investing in product sustainability
Westermo allocates significant resources to R&D, focusing on energy and resource efficiency and product lifespan – all important elements of circularity. 

"Our R&D investments focus on product lifespan and circularity. What we deliver today we want to take responsibility for in the future."  Says Johan.

Dialogues with stakeholders are crucial to make sure Westermo invest in the right things. Lena explains, "Continual dialogues with different stakeholders and customer audits guide us forward to ensure we meet their expectations, and that our product development process is leading to the secure and energy efficient network solutions that the market demands.” 

A sustainable future balances profit, planet, and people 
Westermo is committed to a future that balances economic success with responsibility for the planet and the people living here. 

“It is not about weighing things against each other. It pays off to invest in sustainability," Johan says and continues, "A product and service offering based on energy-smart and environmentally conscious choices is very attractive from a customer perspective, which leads to profitable growth for Westermo. Strong commitment to sustainability is not a contradiction to profitability; it is a prerequisite for profitability."

“With sustainability as a central part of both strategy and daily work, Westermo is building an even more profitable and sustainable business.” Lena says and concludes, "We are committed to a future in which economic success goes hand in hand with responsibility for the planet and society."