Could you give me an overview or some key headline figures from your “The Power of Science and Sustainability” Report?
Sustainability is a key part of Arxada’s strategy, with a focus on reducing greenhouse gases and waste. Our long-term goal is net zero by 2050, and by 2030, we aim for a 30% reduction in Scope 1 and 2 emissions and a 28% reduction in Scope 3 emissions. We are ahead of schedule, already achieving a 58% reduction in Scope 1 and 2 emissions. This isn’t just about hitting targets; it's also economically beneficial. Many of our projects drive both environmental and financial returns. For example, we’re working with customers and suppliers to reduce their carbon footprints, which in turn helps us meet our Scope 3 goals. This aligns with broader trends like supply chain resilience, where companies are looking to reduce carbon footprints while optimizing their logistics.
How tied to sustainability is Arxada’s founding, especially as it was carved out in 2021?
Sustainability has been central to Arxada from the start. Our financial structure is directly linked to sustainability targets, meaning we benefit financially when we meet environmental goals. This integration of sustainability into the company’s financial fabric was intentional from the outset. We are also focused on creating sustainable products that reduce CO2 emissions and waste while improving customer outcomes. Our innovation centers on making products more efficient and eco-friendly, whether through lower concentrations or reduced waste, helping us meet both sustainability and cost-saving goals for our customers.
Can you help us visualize the sort of sustainable products you have commercialized?
One example is our work in wood preservation. Wood is a sustainable material, but it deteriorates quickly without protection. Our products extend its lifespan, making it a more viable alternative to high-carbon materials like cement. We’ve developed a more environmentally friendly alternative to creosote, and it's already being adopted in Europe ahead of the 2029 regulatory deadline. In the paint industry, we have created a biocide that complies with new European regulations to reduce harmful chemicals while maintaining performance. This product meets regulatory requirements and lowers costs for customers. We’re also offering natural alternatives in personal care products like shampoos, which meet consumer demand for fewer chemicals without compromising on microbial protection.
What is the greatest challenge you face today around sustainability, and what key challenge would you like to solve?
The biggest challenge is how quickly we can commercialize sustainable innovations across different markets. While the market is ready and regulations are pushing for greener solutions, the speed at which we can execute internally is key to maximizing our impact. Internally, it’s about prioritizing the right projects. We are a for-profit company, so while sustainability is important, we also need to focus on areas with strong business cases. Fortunately, the market’s demands for sustainability and cost-effectiveness align with what we can offer, positioning us to meet both objectives effectively.
Are there any recent developments in sustainable product development that particularly excite you?
Many of the products we have discussed, like the wood and shampoo solutions, are already in the market and growing rapidly. We're also launching new paint products and hospital solutions aimed at reducing infections, both of which are in the final stages of commercialization. At the same time, we’re working on long-term innovations that could transform entire industries. These breakthroughs are a few years away, but they represent significant advances in sustainability and cost efficiency, making this an exciting time for our company.
What does the next three to six months hold for Arxada in the US, especially given the regulatory landscape?
While regulations matter, many of our products are adopted because they’re both sustainable and cost-effective. Global companies, particularly those with strong sustainability goals, are adopting these solutions early, often ahead of regulatory deadlines. This trend is likely to continue in the US.
California often sets the pace for US regulations, which then influences nationwide adoption. Large companies won’t make separate products for different states, so what starts in California often drives broader change. We expect to see continued adoption of our products in this environment.
You have 400 scientists developing products. Is there ever a risk of investing too much in R&D, particularly in light of current trends in other industries like semiconductors?
It is not just about how much you invest in R&D; it’s about the return on that investment. Some industries focus on R&D spending as a percentage of revenue, but the real question is the value you're getting for that spend. We’re very focused on ensuring our R&D investments have clear business cases behind them. As long as there’s a strong business case, we’ll continue to invest in R&D aggressively. The focus is on creating value, not just the optics of high R&D spending.
What do you hope to achieve in Arxada’s 2025 sustainability report?
By 2025, I hope to see advancements across three areas: planet, people, and innovation. We aim to continue progress on our emissions goals, but innovation will be the main driver. The ability to launch sustainable products that meet both environmental and business objectives will be critical. On the people front, we are building a high-performance culture while emphasizing well-being. By 2025, I expect to see further clarity and progress in these areas, with significant contributions from both innovation and our people toward achieving our sustainability goals.
