Borås Energi & Miljö AB

Running a Fossil Free City

Authors

Si Ying Tan

Si Ying Tan

Yusi Zhang

Yusi Zhang

xiaomeng Gao

xiaomeng Gao

Wenxi Lyu

Wenxi Lyu

School

Jönköping International Business School

Jönköping International Business School

Professor

Guenola Nonet

Guenola Nonet

Global Goals

7. Affordable and Clean Energy 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 12. Responsible Consumption and Production 13. Climate Action

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Summary

One of the unique strategies utilized by Borås Energi & Miljö AB is the Borås recycling model where classifications of waste are made via black and white bags, for food and burnable waste respectively. In fact, the company was the first to introduce such classification in Sweden. Back in 1988, when the first invention of the bag was used to dispose off waste, the system has been constantly re-innovated for thirty years to achieve today’s standards of having another category, sorting the household waste into two different bags.

Innovation

The black and white bags are collected by the biogas-powered refuse collection vehicles from households and transported from Borås to Sobacken, where the facility plant is located. The bags are then classified with the help of the optical sorting machines. This could potentially be one of the greatest innovations in the field of food waste to biogas conversion. The company will soon be able to provide “a system that enables subdividing garbage into 7-10 fractions, either in a new optical sorting machine or with 1-2 dustbins with different compartments” (Borås Energi & Miljö AB, 2018).

In recent years, the company has been looking increase the number of categories beyond the black and white ones. However, with market research done on consumers’ preferences, the local population seemed to have a penchant for the conventional black and white classification instead of newer and greater variety of classifications.

Running a Fossil Free City

Inspiration

Since the beginning of the 1990s, the people of Borås have sorted their household waste into two categories, one in a black bag and one in a white bag. The black bag is for food waste and the white bag is for combustible waste. This was the most important innovation in making it possible to convert foodwaste to biogas. In the beginning of 1990s the citizens were not used to sorting trash, and Boras was the first in Sweden to set up this kind of optical sorting system. Today people are more mentally prepared to sort their garbage and may soon be to adapt to sorting garbage in 7-10 categories. As Marie said, "We are constantly trying to develop and improve this recycling model. It will never be finished, it is constantly developing."

Overall impact

Supporting SDGs of UN improves the reputation and recognizability of Boras Energy. In term of benefits for the people, the contribution by Boras Energy has improved the city government’s prestiges with it being one of the leaders in the local market.

Business benefit

According to the company's annual review, the net sales have been fluctuating around 900,000 SEK with a stable trend that means it kept its consumers in five years. 2017 was the first year where they invested abundant capital in new facilities such as the new CHP facility. The increase in the number of the employees is also an investment for the company, since employees are essential building blocks of an organization. The investment is the foundation for better and profitable development in the future and is another step towards achieving the company’s goal.

As a matter of fact, the annual turnover of Boras energy is 950 million SEK, it is a profitable company. However, as a company with social responsibility and sustainability awareness, in order to achieve their goal of creating a city free from fossil fuels, there are steps which they have to take. The investments by the company become crucial if the company is committed to developing the clear and green alternative to fossil fuel.

Social and environmental benefit

During the interview, we learned that the company is owned by the city government, people of Boras and its employees, which means that they are expected to shoulder social responsibility. Additionally, as a local energy company, it is their nature to accelerate sustainable development by devoting themselves to investigating, creating and developing new means of recycling and saving resources. The profit made by the company will be used to make new investments in the city’s sustainable development or contributed back to the city. The process of understanding and practicing SDGs offers more opportunities to Boras Energy to enhance current technique and systems. New creation and innovation are able to make higher profits for stakeholders.

Interview

Marie Bom, Environment Manager

Photo of interviewee

Business information

Borås Energi & Miljö AB

Borås Energi & Miljö AB

Borås, SE
Business Website: http://www.borasem.se
Year Founded: 1894
Number of Employees: 201 to 500

At Borås Energi & Miljö AB, they utilize communal resources such as waste and transform them into benefits, providing warmth and comfort for the people of the city. These benefits come in the form of district heating, district cooling, biogas and electricity. Founded in 1894, the company maintains the motto “owned by the people and for the people,” the people of the city are their greatest priority.