• Energy Research

Abstract The 21st Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC) marked a milestone in the course of international efforts on global climate action. As part of the COP21 side events, on December 4th the Lima Paris Action Agenda presented a half-day of presentations and round table discussions titled Focus on Private Finance. The event was supported by the Secretary-General of the United Nation, Caisse des Depots, and the I4CE Institute for Climate Economics. This conference report summarizes the findings of the session and the messages delivered by finance industry representatives. Significant investment in low carbon assets is required to maintain global temperature increases below 2 °C. The two resounding themes throughout the session were that in order to attract capital for low carbon investments fossil fuel subsidies must end and a higher carbon price is needed to incentivise investment. Furthermore, accounting and regulatory bodies need to implement more stringent disclosure and reporting requirements so that climate risk is properly understood by investors. There is significant appetite for investment in the low carbon sector which is demonstrated by the growth in the green bond market. Financial institutions have a role to play in aggregating, structuring and de-risking investments to facilitate private finance investment. Policy makers also need to improve the investment environment by creating consistent and stable long term policies which will give investors' confidence.

This study utilizes a recently developed framework for the well-being economy to evaluate the impacts of COVID-19 in the sparsely populated Westfjords region of northwestern Iceland. A total of 42 semi-structured interviews were conducted with a broad spectrum of local community members, nearly all undertaken in October 2021. Local impacts to human and social capital were very evident, whilst economic consequences to individuals and business were largely mitigated through national economic packages. The remoteness of the Westfjords and pre-existing challenges, such as exposure to nature disasters, a harsh climate, and limited infrastructure, provided a bedrock of resilience with which to tackle the pandemic. This underpinned the sustainability of the communities, and flexible approaches to work and education constrained some of the worst potential effects of social distancing and isolation. Nevertheless, some socio-demographic groups remained harder hit than others, including the elderly in nursing homes and non-Icelandic speaking foreigners, who were marginalized via isolation and lack of information provision in the early, most severe outbreaks of COVID-19. The study demonstrated the coping mechanisms and solutions that were adopted to sustain subjective and community well-being, whilst reinforcing the importance of utilizing local community strengths in tackling the many challenges induced by a pandemic crisis.

Sustainable development is growingly being developed in universities around the world. The United Nations presented eight Sustainability Key Competencies (SKCs) that represent cross-cutting competencies crucial to advance sustainable development and achieve Sustainable Development Goals. The aim of this research is to know to what extent the University of Iceland courses seem to include the emphasis of the SKCs, either in the course description text or the learning outcomes. Data collection took place in early 2020 and included analysing every single university’s course description text and learning outcomes using a curriculum analysis key for SKCs. Results show that proportionally, most signs of SKCs were found for SKC 3 (Normative competency) in 53% of courses in the university, and SKC 6 (Critical thinking competency) in 46% of the university’s courses. For individual schools of the university, the far highest proportion of signs of SKC was found for the School of Education (5.0 signs per course) and the relatively fewest for the School of Humanities (1.1 sign per course). The results are discussed both in relation to identified competencies needed for the pressing sustainability problems humanity faces, and in the light of a discrepancy appearing between the university’s ranking according to Times Higher Education University Ranking by citations, research, and teaching, and the proportional signs of individual SKCs within the University of Iceland.

The development of major economic sectors can provide the bedrock on which long-lasting national economic prosperity is formed. Iceland’s tourism sector is an example of a rapidly expanded industry in recent years, to the extent that it has become the largest sectoral contributor to the nation’s economy. The growth of the sector has led to a number of sustainability impacts, thus presenting opportunities and challenges in terms of meeting the seventeen Sustainable Development Goals (SDGs) of the United Nations. Using the case study of Iceland, this paper aims to advance conceptual understanding of the synergies and trade-offs between a nation’s tourism sector and performance across the 169 targets of the SDGs. Empirical results were derived from four theme-based focus groups, comprised of expert participants, who were tasked with completing scoresheets concerning their perception of the extent of synergies and trade-offs for each target. The majority (126 in number) of the mean scoresheet outcomes for the SDG targets revealed neither synergies nor trade-offs. However, 32 synergies and 11 trade-offs were identified. Many of the target synergies related to new economic opportunities, such as jobs, employment and training for young people. Target trade-offs tended to be environmental and social. In particular, concern was voiced about the greenhouse gas emissions of the Icelandic tourism sector, which derives from international aviation, cruise ships and rental car usage. The outcomes of this study are of particular relevance to tourism companies, policy-makers and governance institutes, all of whom are increasingly endeavouring to link their activities with the fulfilment of the SDGs, maximising synergies, mitigating the extent of any potential trade-offs, and potentially transforming trade-offs into synergies. Furthermore, the results are likely of interest to academics focused on researching the broad sustainability impacts of economic sectors and their contribution to meeting the visionary goals of the SDGs.

Nordic companies have been at the top of sustainable business rankings since the early 2010s. Some of them are energy companies that have adopted Corporate Social Responsibility to have a positive social impact and become carbon neutral. However, limited literature has analyzed the barriers that Nordic energy companies face while implementing Corporate Social Responsibility. This article aims to identify and categorize the barriers faced by Nordic energy companies. The research is based on empirical data obtained from interviews involving high-level managers from the largest suppliers of energy in the Nordic region. A model is developed, which identifies and categorizes seven barriers at the individual level, seven at the organizational level, and three at the institutional level of analysis. The findings suggest that barriers can be of a direct and indirect nature and can be found across the three levels of analysis. The main contributions of this article are: (1) it identifies and categorizes the barriers that Nordic energy companies face; (2) it defines the barriers as direct and indirect based on their interaction with the company; (3) it presents two models of the barriers and provides empirical evidence that complement the literature; and (4) it contributes to the literature by focusing on the Nordic countries, a region that has received limited attention by scholarly research.

The need for more studies on the dynamics of business models has been recognized, especially when considering how business models need to transform to support the transition toward sustainable development and a circular economy. System dynamics business model simulations can explore relationships between business strategy, daily operations, strategy implementation, and stakeholder interactions. This study aims to synthesize and analyze findings from existing literature on system dynamic modeling of business models. Following the PSALSAR systematic literature review framework, the results highlight a noticeable focus shift in the evolution of sustainable business model strategies. Before 2016, scholars focused on resource maximization strategies and sustainable scale-up solutions. Post-2016 emphasis has revolved around strategies delivering functionality, adopting a stewardship role, and closing the resource loop. The findings support that system dynamics is a powerful tool for business model innovation, allowing risk-free testing of scenarios and helping to identify leverage points, such as regulations, policies, and product/service design. System dynamics advance the business model paradigm, especially for implementing sustainability strategies. Consequently, this study has implications for scholars, policymakers, and the business community, given its application to furthering sustainable development and the circular economy.

The aim of this paper is to advance research on sustainability within the fashion industry by explaining the combinations of social, environmental, and economic values that form the basis of sustainable business models in the Nordic fashion industry and to identify the main challenges fashion companies face in developing such models, given the limitations in current literature. Through an industry-focused case study of the Nordic fashion industry, recognized for its homogeneity and sustainability leadership, this study investigates how Nordic fashion companies collectively create value through the lens of the value mapping tool. The study adopts an inductive approach through eleven in-depth interviews with experts, managers, and owners. Additionally, it integrates secondary data derived from published information, enhancing the understanding of what sustainable business models in the Nordic fashion industry entail. The analysis enabled the identification of twenty-six elements related to the durability and longevity of products and gender-neutral and timeless design. The results suggest that a more holistic approach to sustainability is needed to facilitate the companies’ move from unsustainable business models to more sustainable ones. This article contributes to the literature by identifying broader patterns of value creation, value delivery, and value capture within the Nordic fashion industry. Furthermore, it enhances knowledge of social and environmental actions surrounding and examines barriers to sustainability activities. The practical contribution arises from the provision of a better understanding of the key elements in sustainable fashion business models of Nordic fashion companies, and thus, it is relevant to academia, practitioners, and policymakers.

The five Nordic nations and three autonomous territories, clustered together, make up the 11th largest economy in the world, with 27 million inhabitants and ranking high, regionally and globally, regarding many measures of well-being, gender equality, university-level education, and financial affluence. Nordic nations value highly sustainable development and have agreed upon sustainable development indicators. This chapter presents findings from two Nordic nations, Denmark and Iceland, respectively, but make an interesting comparison since one is a fairly populated, located in mainland Europe and a member of the European Union, while the other is a sparsely populated, non-European Union nation, located in the middle of the Atlantic Ocean. The GLOBE research has, with regards to factors such as language, history, religion, and technological development, categorized both Denmark and Iceland within a Nordic-cluster group. Other common factors are welfare state models, common history, and culture. The hierarchical differences are small within organizations, where decentralized and democratic characteristics distinguish the management of employees. With regards to CSR and competitiveness of Nordic businesses long-term sustainability is emphasized and international co-ordination, such as by promoting and implementing international standards, policy-frameworks, and guidelines.