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Society's transition towards a sustainable state entails rapid and disruptive change in all sectors. This change is the source of profound uncertainty. From a company perspective, it can either pose existential threats if current practices or products enforce unsustainable development, or it can present opportunities if the company can provide solutions to the sustainability challenges humanity is facing. Such sustainability-related threats and opportunities, i.e., risks, can be related to, for example, reputation, legislative change, litigation, the ability to attract and retain talented employees, or the ability to meet customer needs on increasingly sustainability-driven markets. While more and more companies recognize the importance of building capabilities for sustainable product development to remain competitive, the relation between social and environmental aspects and economic performance is still oftentimes viewed as a trade-off where some profit must be sacrificed to be sustainable.Based on an interactive qualitative research approach, this thesis shows how a risk management lens can be used to support decision-makers at product development companies in understanding the dynamic interplay between socio-ecological sustainability aspects and business implications. The conceptual understanding of sustainability risks was advanced by identifying their characteristics and by proposing a new definition, utilizing literature review and the Framework for Strategic Sustainable Development. In the next step of the research, today's situation and preconditions at some product development companies in Sweden were studied. Using multiple data collection methods, current risk management practices were investigated and hypotheses for sustainability integration were derived. Based on interviews with industrial and academic experts, the hypotheses were further developed into key aspects for sustainability risk management that can be used as recommendations for practitioners. Utilizing the newly developed definition and key aspects, a conceptual approach for strategic risk management within the sustainability transition was conceived. This approach was then adapted and operationalized as a workshop method for multifunctional teams in the context of product portfolio planning. Finally, the Sustainability Impact and Effects Analysis was developed and tested through an action research approach to provide decision-makers in early phases of the product innovation process with practical support for identifying, assessing, and managing sustainability risks. Uncertainty is neither good nor bad – it is just an inherent part of reality. This thesis showed how a risk management approach can be used to guide decision-making in uncertainty within the sustainability transition in a product development company context. Thereby, companies can take the strategic leadership that is required to benefit from the opportunities that can be found in this time of deep uncertainty.

Both the ecological and social system are systematically degrading, resulting in decreasing capacities to support human civilization. Product development and manufacturing companies play a key role in driving society's transition towards a sustainable path. Besides moral arguments, the motivation for companies can be expressed as a matter of smart risk management, i.e. avoiding threats and exploiting opportunities. Such sustainability risks can be related to, for example, brand and reputation, legislative change, or attracting top-talented employees. But, more importantly, it is about understanding changes that are inevitable on markets to come. Based on Maxwell's interactive qualitative research approach and following the structure of the Design Research Methodology, this thesis aims to contribute (i) to knowledge by increasing the conceptual understanding of what sustainability risks are; and (ii) to practice by researching decision-support for how sustainability risks can be managed in a product development company context. The first study reviewed existing literature and identified characteristics of sustainability risks, which make them particularly difficult to manage. A following exploratory and descriptive study investigated companies' current risk management practices and preconditions for sustainability integration. It showed that the effects of uncertainty from the sustainability transition need to be identified, assessed, and managed in relation to how they can affect objectives anchored in both internal and external stakeholder value creation. In parallel, the Framework for Strategic Sustainable Development was applied as a lens to understand the implications of the sustainability transition for company risk management. This resulted in a new definition, stating that sustainability risks are threats and opportunities that are due to an organization's contribution or counteraction to society's transition towards strategic sustainable development. A questionnaire study then investigated some case companies' challenges and preconditions to build sustainability capabilities. Finally, a workshop method is proposed that aims to support design teams in early sustainable product development. Future research will leverage on the findings to develop and test decision support for how product development companies can manage sustainability risks on different organizational levels in practice to increase competitiveness, while taking leadership in the transition towards a sustainable society.

Integrating a strategic sustainability perspective in product development requires that decision-makers can connect socio-ecological sustainability aspects to tangible business implications in the short- and long term. Only then will there be the driving forces necessary for adopting sustainable product development practices. A risk management approach can be used to enable strategic proactivity by exposing the potential consequences of sustainability-related decisions, for example in relation to reputation, legislative change, the ability to attract top talent, or meeting customer needs. Through an action research approach and by building on previous findings and existing tools and methods, this study presents the Sustainability Impact and Effects Analysis. This novel method and risk management tool combines the familiar format of the well-established Failure Mode and Effects Analysis with a strategic sustainability perspective. Designed to be applicable in early stages of the product innovation process, this tool aims to increase decision-makers' awareness of sustainability risks and provide them with a practical way for how to identify, assess, and treat such risks. The tool was developed in close collaboration with industry and tested in two different companies. The results indicate the effectiveness of the tool for identifying and analyzing sustainability risks, as well as deriving and monitoring strategies for how to manage them strategically, also leading to an increased awareness of the interconnections between socio-ecological sustainability aspects and business implications. Thereby, it can provide support for companies in how to work with product development in a way that contributes to society's transition towards sustainability, while benefiting the own organization. © 2022 The Authors ; Open access.

Many of the most important business and economic risks are directly linked to environmental and social issues. This includes both threats and opportunities, not only in relation to reputation, which is often mentioned in this context, but, even more importantly, in relation to innovation capability and legislative change on inevitably more and more sustainability-driven markets. It is, however, unclear through which mechanisms such sustainability risks currently affect companies and how they can be systematically identified and managed. Based on the Framework for Strategic Sustainable Development, this study investigates the dynamics and implications of society's sustainability transition from a company risk management perspective. In addition, exploratory and descriptive studies were conducted at two large product innovation companies to identify current risk management practices and preconditions for sustainability integration. The results reveal that a society moving closer towards a collapse of environmental and social systems leads to increasing sustainability-related threats for unsustainable businesses and increasing opportunities for sustainable businesses. Also, risk management is found to be a promising way for maneuvering in a smart zone between being too passive and being too pro-active in relation to sustainable innovation.The study participants at the case companies were knowledgeable about risk management in general but were largely unfamiliar with risks associated with sustainability and no processes or support tools exist to work systematically with such risks. Key steps to accomplishing an integration of a strategic sustainability perspective into risk management are proposed as: (i) identifying the effects of sustainability issues on internal and external stakeholder value; (ii) actively including sustainability in objective setting and cascading objectives across the levels of the organizational hierarchy; and (iii) developing concrete support for identifying, assessing, and managing economic sustainability risks. Thereby, companies can enhance their competitiveness while providing leadership in the sustainability transition. ; open access ; Sustainability Implementation Package

Numerous examples have shown how environmental and social issues can affect companies to an existential level. In fact, today's most urgent business risks, e.g. brand value, legislative change, litigation, and supply chain disruptions, are directly linked to sustainability issues. These risks need to be systematically identified and strategically managed on both strategic company-and operational product development level in order for a company to be long-term competitive. Based on literature review and interviews at case companies, this paper investigates the current state for integrating a strategic sustainability perspective in risk management processes and related support tools. Results show that sustainability risks are not consciously identified and managed at the companies. Research is at an early stage and few frameworks and tools exist. Based on the findings, the study identifies and provides a comprehensive analysis of challenges for sustainability integration, which work as a foundation for future research. Finally, key steps to advance understanding and methods in sustainability risk management are suggested.

Society's transition towards sustainability comes with radical change, which entails significant threats and opportunities for product development and manufacturing companies, for example related to new legislation, shifting customer preferences, and increasing raw material prices. Smart risk management therefore plays a key role for successfully maneuvering society's sustainability transition. However, from a company perspective, it remains challenging to connect the macro-level societal change with tangible risks for the business on the micro level. Based on interviews with academic and industrial experts, this study identified 21 key aspects for sustainability risk management. Drawing on these results and research from the areas of transition design, strategic sustainable development, and sustainability risk management, a conceptual approach for strategic risk management within the sustainability transition is presented. It builds on layered, double-flow scenario modelling in which backcasting from a vision, framed by basic principles for sustainability, is combined with forecasting from the present. The implications of such scenarios, i.e., risks, can then be identified and managed. By doing so on different scales, connections between macro- and micro-level change can be established. Thereby, product development companies shall be supported in making sustainability an intrinsic part of decision-making across the strategic, tactical, and operational levels to increase competitiveness while contributing to the transition towards a sustainable society. ; open access

The transport sector's dependence on fossil fuels is one of the biggest challenges in a shift towards a climate-neutral and sustainable society. This roadmap report aims to investigate how electric vehicle systems can contribute to a faster transition to sustainable passenger transport in Southeast Sweden, as well as to present a methodology for guidance of similar work for faster transitions in other regions and sectors. This work has been guided by a scientifically designed and proven Framework for Strategic Sustainable Development (FSSD). Specifically, answers are given to four research questions structured in relation to the four subsystems 'Politics and instruments', 'Users and markets', 'Vehicles and infrastructure' and 'Energy and materials': What could a sustainable vision for passenger transport in Southeast Sweden look like? What could be a milestone goal for 2030? What is the current reality in relation to the 2030 goal and the vision? How could the gap between the present, 2030 and the vision be bridged? The report's results show that today's focus on fossil independence and measures against climate change must be broadened to cover the whole sustainability challengeso that other sustainability issues are addressed and so that solutions to some of the sustainability issues do not create new ones. The report also clarifies that it is necessary, practically possible and economically advantageous for Southeast Sweden to make a faster sustainability transition of passenger transportthan what has been proposed in previous studies and investigations. It is also likely that the same applies to the entire transport system and for the whole of Sweden and the world. Even geopolitical benefits are likely. A global transition to transport and energy systems based on energy from widely available flow resources like sun and wind instead of the limited fossil fuels would likely reduce the conflicts risks in the world.Restricted cobalt, lithium and platinum resources that battery and fuel cell cars depend on, and other metals needed for solar cells and wind turbines can, however, give rise to similar conflict risks. This roadmap report's recommendations on reduced transport needs and car dependency and its focus on resource efficiency counteract these conflict risks by striking against underlying resource-driving mechanisms. Should this roadmap be translated into practical policies, the forthcoming transition would therefore likely be made considerably more 'future-proof'. ; GreenCharge Southeast