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The Nordic countries: Denmark, Finland, Norway, and Sweden, collectively account for roughly 1% of global GDP and only 0.3% of the world’s population. Yet, their economic contributions have punched far above their weight, producing an impressive array of global business giants. From Denmark’s Lego, the world’s largest toy manufacturer by revenue, to Sweden’s Ikea, the leading furniture producer and even the sixth-largest restaurant chain globally (thanks to its famous Swedish meatballs), Nordic companies have become leaders across diverse industries. These include machinery (Atlas Copco), telecom (Nokia and Ericsson), safety belts (Autoliv), and elevators (Kone). The region has also birthed innovative tech leaders like Spotify, the global music streaming giant, and Klarna, the dominant “buy now, pay later” service. Outpacing Europe in Performance Over the past decade, Nordic companies have outperformed their European counterparts. Publicly listed non-financial firms in the region have delivered higher shareholder returns than the European average. Today, Nordic companies make up approximately 13% of the MSCI Europe Index, which ranks the continent’s most highly valued firms, a notable rise from 10% just five years ago.   The Key to Nordic Success What drives this remarkable success? Four key factors explain why Nordic businesses thrive:

1. Global Reach and Diversification

Nordic companies excel at expanding internationally. Among the ten highest-valued Nordic firms with available data, only 2% of median revenue is generated domestically. This contrasts sharply with 12% for European peers and 46% for U.S. firms. Nordic companies have mastered the art of globalization, relying less on local markets and more on overseas opportunities.

2. Enthusiasm for New Technology

Nordic firms have long been early adopters of cutting-edge technology, a legacy evident in the region’s flourishing startup ecosystem. Stockholm, for instance, attracts more venture capital than most European cities, trailing only London, Paris, and Berlin despite its smaller population. Entrepreneurs in the region benefit from robust social safety nets, including unemployment benefits and publicly funded healthcare and education. This environment encourages risk-taking and innovation.

3. Economic Freedom with Supportive Policies

Despite their reputation for high taxes funding generous welfare systems, Nordic countries maintain competitive corporate tax rates similar to those in the United States. This policy balance—combining economic freedom with strong government support—creates a fertile ground for business growth and entrepreneurship.

4. Long-Term Ownership and Patient Capital

A distinctive hallmark of Nordic companies is their long-term focus, backed by patient and stable ownership. According to McKinsey, 80% of Nordic large-cap firms have long-term ownership structures, compared to 60% in Europe and just 20% in the United States. Family dynasties like Møller (Maersk) and Kristiansen (Lego) maintain significant influence in their companies, even as external professionals manage daily operations. In Sweden, the Wallenberg family, with its roots in banking, holds significant stakes in companies like Atlas Copco and Ericsson. Foundations also play a prominent role, with entities like the Carlsberg Foundation and Novo Nordisk Foundation ensuring stability and enabling long-term investments. These structures shield Nordic firms from foreign acquisitions and allow them to prioritize sustainable growth. A Formula for Success The Nordic region’s unique blend of global ambition, technological prowess, supportive policies, and long-term focus has made it a model of innovation and resilience. As these companies continue to grow and shape industries worldwide, they exemplify how small economies can achieve outsized influence on the global stage.   Source of information: The Economist, Published: December 30, 2024

In a recent insightful conversation, the Swedish Chamber of Commerce had the privilege of speaking with Matthijs van der Meiden, Managing Director of Patron Member NEFAB, a global leader in industrial packaging and logistics solutions. This interview delves into NEFAB's journey in the Netherlands to achieve Platinum status in the Responsible Business Alliance (RBA) certification, shedding light on the company's commitment to sustainability, employee engagement, and health & safety. The Journey Toward RBA Platinum Certification The road to RBA Platinum certification was not an easy one, but it was undeniably transformative. Matthijs shared that while NEFAB always prioritized sustainability, achieving RBA Platinum involved dedication and effort at every level of the organization. "This isn’t just about putting together a few policies or doing a one-time exercise," Matthijs explained. "It requires full commitment to embedding health, safety, and sustainability into every facet of the company. It becomes part of the culture, part of how we operate daily." The journey was initially triggered by requests from NEFAB’s global key accounts, who are members of the RBA and require their supply chains to comply with these standards. “We didn’t think it would be easy, but we thought it would be relatively simple to comply since we already had a high standard in sustainability, health and safety, and ethics, as it always has been at the core of our business. However, RBA goes further than for instance Dutch legislation, especially in terms of fair treatment and health and safety, and that took us by surprise,” Matthijs noted. It took three years of rigorous effort, and the NEFAB Netherlands team is proud to have earned this prestigious certification. Employee Engagement: A Key to Success One of the most striking aspects of NEFAB's transformation was the high level of employee engagement. Matthijs emphasized that engagement was not a top-down directive but a company-wide initiative. Employees were actively involved in the process of change, whether through safety walks, training sessions, or process updates. “It’s not just about management saying health and safety are important," Matthijs pointed out. "It’s about showing action, following through, and ensuring our employees are fully on board. If you don’t engage them, they won’t take the process seriously.” "Employee engagement was crucial for success. Everyone’s responsibility in the organization mattered," Matthijs shared. "We updated processes, implemented health and safety protocols, changed production layout, and made building adjustments. We informed and included employees, arranged training, education, and provided information."   Measurable Results: Sustainability and Resource Efficiency NEFAB's commitment to sustainability generated tangible results: such as enhancing air quality in its production environment by extracting heat from machinery and circulating fresh air throughout the building, conserving energy while improving employee comfort. “We noticed some areas of the building had lower air quality than we wanted,” Matthijs explained. “Instead of accepting it, we innovated—focusing on heat extraction and fresh air circulation to create a healthier, more sustainable environment.” Waste management also saw progress. NEFAB transitioned from quarterly to monthly waste assessments, allowing for a more granular and effective approach to waste reduction. Additionally, the company used Greencalc, a lifecycle assessment tool, to measure the CO₂ savings of its packaging solutions. This not only helped optimize NEFAB’s internal processes but also enabled the company to guide clients in reducing their environmental footprint. Overcoming Organizational Growth Challenges A unique challenge for NEFAB was maintaining compliance with RBA standards while managing rapid organizational growth. Matthijs reflected on the difficulty of ensuring that new employees were onboarded with a full understanding of NEFAB’s sustainability standards and the RBA requirements. “Many people were entering, needing onboarding and training about RBA, health and safety, and sustainability,” Matthijs explained. "Documenting processes on paper, not just in someone’s head, was crucial. But as we expanded, it became more challenging to keep everything aligned." This organizational growth necessitated extra investment in time, effort, and human resources, underscoring the importance of long-term commitment to achieving and maintaining high sustainability standards.   Looking to the Future: Innovation and Collaboration Looking ahead, Matthijs sees NEFAB’s future intertwined with innovation and collaboration. The company’s long-standing focus on sustainability and safety now extends to exploring cutting-edge technologies such as battery innovations—key areas that align with global sustainability goals. "The future is not just about what we do in our own operations, but also about how we help our customers and industries reduce their environmental footprint," Matthijs reflected. "The Netherlands and Sweden, for instance, share a similar strategic vision when it comes to sustainable technology, which opens up exciting collaboration opportunities."   Conclusion: The Road Ahead NEFAB’s journey to achieving RBA Platinum status has been marked by clear, measurable outcomes and a culture of continuous improvement. From enhanced safety protocols to resource optimization and innovative packaging solutions, this success story highlights the company’s deep commitment to both people and the planet. Matthijs concluded, “It’s not about a certificate—it’s about transforming how we do business, how we treat people, and how we contribute to a better world for tomorrow.” As NEFAB continues its efforts to lead by example, the journey toward sustainability and innovation remains an ongoing process—a journey that will inspire many others in our community.