There are at present two major external factors that affect organizations: Global challenges and sustainable development (Virakul & Russ-Eft, 2019). By now, most people are familiar with or have at least heard about, the UN 2030 Agenda and the Sustainable Development Goals. These goals are currently being incorporated into national and business policies and strategies worldwide. The EU has launched several important plans and directives to facilitate and ensure a European sustainable development, such as A new Circular Economy Action Plan For a cleaner and more competitive Europe (2020) and A European strategy for plastics in a Circular Economy (2018). Sweden has initiated the ambitious goal of becoming one of the first fossil-free welfare countries in the world (Fossilfritt Sverige, 2019), and recently launched a strategy for the transformation to a circular economy (Swedish Government, 2020). Furthermore, the IPCC report Global Warming of 1,5 degrees Celsius (2018), caught the public awareness and ignited environmental movements, like the famous Fridays for future led by Greta Thunberg.
Businesses need to adapt to this global movement, otherwise, they risk being outperformed by more innovative companies that can embrace and transform sustainability challenges into business opportunities. The question is how? As Alblas et al. (2014) point out, it is a challenge to even understand the concept:
``The complexity and fuzziness of sustainability as a concept complicate identifying a suitable scope and appropriate targets. For instance, should a company focus on recycling, on energy efficiency, on using biodegradable materials, or on all three options?``
The answer is that organizations first need to understand what sustainability means for their business and products (Alblas et al., 2014).