For a country of just over 10 million people, Sweden consistently produces a stream of sustainability companies. And they are by no means small-scale eco-brands, but rather heavy-hitters across the industrial, climate, energy and aviation sectors.
Sustainability has long been embedded into the country’s national policies and is reflected in its consumer culture. The startups that we are seeing from here have the potential to reshape entire industries.
Sweden As A Global Sustainability Leader
Sweden has a long history of being a climate leader. In fact, it was one of the first countries to introduce carbon tax back in 1991 – a decision that has led to most of its electricity coming from low-carbon sources today.
The country has committed to reaching net-zero greenhouse gas emissions by 2045 and aims to be one of the world’s first fossil-free welfare states where economic growth and environmental responsibility are closely tied together.
With the government’s support of green innovation and venture funding, sustainability startups have been able to scale quickly and internationally.
Top Sustainability Startups In Sweden
Swedish startups are innovating in a range of areas from lithium batteries to carbon emission tracking systems. Here are the companies leading the sustainability charge.
1. Northvolt
Northvolt was founded in 2016 by former Tesla executives. The company manufactures lithium-ion batteries for electric vehicles and energy storage systems. Not only are they on a mission to produce batteries, but to produce the world’s greenest batteries.
They are also building Revolt, a closed-loop recycling system where valuable metals such as lithium, nickel and cobalt will be recovered from old batteries and fed back into production.
Northvolt has raised over $10 billion in funding from major investors including Volkswagen, Goldman Sachs and BMW.
2. Epishine
Epishine is a startup that develops printed organic solar cells which capture not just sunlight, but indoor light as well. They can then power small electronics ranging from IoT sensors and remote controls to wireless keyboards and smart home devices.
So instead of needing to replace batteries constantly, these devices harvest energy from indoor lighting.
Battery waste has been an ongoing environmental issue, with billions of small batteries being discarded every year. However, their solution has reduced battery production, hazardous waste and carbon emissions from disposable power sources. They have raised multiple funding rounds, including support from the Swedish Energy Agency.
3. Normative
It’s rather tricky to reduce your carbon emissions if you can’t measure them. Normative has created a carbon accounting platform which assists companies with measuring their Scope 1, 2 and 3 emissions as well as analysing supply chain data and generating climate reports.
This is especially useful because Scope 3 emissions, being indirect emissions from suppliers and value chains, are often the biggest yet most challenging to track.
The company has raised millions of dollars from European venture capital firms, allowing them to expand into the UK and other European markets.
4. CarbonCloud
The food industry remains one of the biggest culprits when it comes to global emissions. CarbonCloud designed a SaaS platform which calculates the carbon footprint of a range of food and beverage products. Their system is able to track emissions from farming, transport, processing, packaging and distribution.
Even though consumers want low-carbon emissions, it’s difficult for companies to know where to improve without having data. Fortunately, CarbonCloud enables transparent product labelling and climate-aligned procurement, now expanding beyond Sweden into the rest of Europe.
5. Heart Aerospace
Heart Aerospace is on a mission to tackle the issue of decarbonising aviation head-on. They are developing a hybrid-electric regional aircraft, called the ES-30, which is designed for short-haul routes. With these aircraft, emissions can be reduced dramatically as well as enabling quieter flights with lower operating costs.
The company has been able to combine battery systems, electric propulsion and hybrid backup systems to make electrified aviation commercially viable.
They have been able to raise substantial funding from investors, including Breakthrough Energy Ventures, and have expanded internationally.
6. Aira
Aira supplies solar panels, heat pumps and smart energy systems through a vertically integrated model. Instead of just selling the equipment, they also provide the financing, installation and ongoing maintenance. This approach makes clean energy more accessible and affordable, thus making it easier to adopt.
A lot of homeowners want to make the switch to solar however the upfront costs have always been a barrier. Aira aims to simplify this transition, encouraging more people to take action.
The company has already expanded out of Sweden into other European countries as they continue to focus on accelerating household electrification.
7. Absolicon
Industrial heat is often powered by fossil fuels. Absolicon produces solar thermal collectors which generate high-temperature heat for industrial processes. Their systems are able to replace gas-fired boilers, oil-based heating and coal-driven industrial steam.
Heavy industry has always been notoriously difficult to decarbonise because electrification doesn’t always work for high-temperature processes. However, solar thermal systems can provide a direct renewable heat source.
To date, Absolicon has sold production lines internationally and partnered with various energy companies to further the deployment of their systems.
