THE IMPACT OF ENERGY EFFICIENCY INITIATIVES ON OPERATIONAL PERFORMANCE IN NORDIC AUTOMOTIVE MANUFACTURING FIRMS

Abstract

This research investigates how the energy efficiency projects have affected the operational performance of Nordic automotive manufacturing companies, in this case, Volvo Group and Scania, in 2013-2023. The study examines the effect of the degree of energy intensity, investment in energy efficiency, and use of renewable energy on productivity and efficiency in operations. Quantitative longitudinal research design (secondary data analysis) was used to conduct a study. Annual reports, sustainability reports, and international data sources such as Eurostat and the International Energy Agency were used to gather data. Correlation analysis, regression analysis, and descriptive analysis were some of the statistical methods that were used to investigate relationships between variables. These results reveal that energy efficiency programs have a positive impact on improving productivity, reducing costs, and achieving sustainable operation. The research also sheds light on environmental regulation and technological innovation as important measures towards ensuring the generation of energy-efficient manufacturing systems. Overall, the study proves that energy efficiency can be a long-term capability that can be used to promote competitive advantage and sustainability. Looking at the results: energy efficiency investment was the most powerful motivator of operational results positively, with 97% of productivity differences attributable to energy saving initiatives for the 3 firms each firm used a different set of parameters to reach good results. And, future studies need to be extended to other larger geographic settings, more sampled companies and the increasing importance of electrification and supplies chain energy dynamics to further develop the arguments revealed by this research.

Keywords: Energy saving, functional performance, automobile production, sustainability, renewable energy, Nordic companies, productivity