Aava Isotalus Configurations for Sustainability: Exploring pathways to Carbon Footprint Reduction in Nordic Machinery Manufacturing Vaasa 2025 School of Technology and innovations Master’s thesis in Industrial Management 2 UNIVERSITY OF VAASA School of Technology and Innovations Author: Aava Isotalus Title of the thesis: Configurations for Sustainability: Exploring Pathways to Carbon Footprint Reduction in Nordic Machinery Manufacturing Degree: Master of Economics and Business Administration Programme: Industrial Management Supervisor: Jouni Juntunen Year: 2025 Pages: 97 ABSTRACT: This study explores how different sustainability strategies are configured in Nordic machinery manufacturing companies, with particular focus on those strategies associated with carbon foot- print reductions. Rather than assessing the impact of single actions in isolation, the study iden- tifies which combinations of sustainability strategies are linked to positive outcome. The study builds on the understanding that sustainability transitions are complex and often shaped by mul- tiple independent factors. To capture this complexity, the study uses fuzzy-set Qualitative Comparative Analysis (fsQCA). This method allows for the comparison of different combinations of conditions across multiple companies while acknowledging that more than one pathway can lead to the same outcome. The empirical data consist of 16 machinery manufacturing companies from Finland, Sweden, Norway, and Denmark. Data from 2019 to 2023 were collected from public secondary data, fo- cusing on annual and sustainability reports. The study examines four conditions: stakeholder and policy engagement, energy efficiency improvements, renewable energy adoption, and alignment with sustainable development goals. These conditions represent both technical measures and broader strategic engagement. The analysis reveals that carbon footprint reduction is not explained by any single factor, but by spe- cific combinations of conditions. Several distinct and effective configurations are identified, illus- trating the principle of equifinality, different pathways can lead to the same successful outcome. Some companies achieve reductions by focusing on internal efficiencies, while others rely on a combination of public commitments, stakeholder interaction, and targeted investments in re- newable energy. The findings contribute to the understanding of how sustainability transitions unfold in industrial context. They show that meaningful emission reductions are more likely when companies align technical improvements with strategic action. This configurational perspective offers both theo- retical insight and practical guidance for managers and policymakers aiming to support low-car- bon transitions in manufacturing. KEYWORDS: Sustainability, fsQCA, Carbon Footprint Reduction, Nordic Manufacturing, Re- newable energy, Energy Efficiency, Stakeholder Engagement, Sustainable Development Goals 3 VAASAN YLIOPISTO Tekniikan ja innovaationjohtamisen akateeminen yksikkö Tekijä: Aava Isotalus Tutkielman nimi: Configurations for Sustainability: Exploring pathways to Carbon Footprint Reduction in Nordic Machinery Manufacturing Tutkinto: Kauppatieteiden maisteri Oppiaine: Industrial Management Työn ohjaaja: Jouni Juntunen Valmistumisvuosi: 2025 Sivumäärä:97 TIIVISTELMÄ: Tässä tutkimuksessa tarkastellaan, miten erilaiset kestävyyteen tähtäävät strategiat rakentuvat pohjoismaisissa koneteollisuus yrityksissä. Erityinen painopiste on strategioissa, jotka liittyvät hiilijalanjäljen pienentämiseen. Yksittäisten toimenpiteiden vaikutusten sijaan tutkimus keskit- tyy strategisten kokonaisuuksien tunnistamiseen: mitkä yhdistelmät johtavat myönteisiin loppu- tuloksiin. Lähtökohtana on ymmärrys siitä, että kestävyyssiirtymät ovat moniulotteisia proses- seja, joita muovaavat useat rinnakkaiset ja toisiinsa limittyvät tekijät. Tätä monimutkaista kokonaisuutta lähestytään fuzzy-set laadullisen vertailuanalyysin (fsQCA) avulla. Menetelmä mahdollistaa useiden yritysten vertailun eri ehtojen yhdistelmien kautta ja tunnistaa, että samaan lopputulokseen voi johtaa useampi eri reitti. Empiirinen aineisto koostuu 16 koneteollisuusyrityksestä Suomesta, Ruotsista, Norjasta, ja Tanskasta. Aineisto kattaa vuodet 2019–2023 ja perustuu pääosin yritysten julkisiin vuosikertomuksiin ja vastuullisuusraportteihin. Tarkastelun kohteena ovat neljä keskeistä strategiaa: sidosryhmä yhteistyö, energiatehokkuuden parantaminen, uusiutuvan energian hyödyntäminen sekä sitoutuminen kestävän kehityksen ta- voitteisiin. Strategiat edustavat sekä teknisiä ratkaisuja että laajempaa strategista sitoutumista. Tulokset osoittavat, että hiilijalanjäljen pienentämistä ei selitä yksittäinen toimenpide, vaan tietyt yhdis- telmät eri tekijöistä. Useita toimivia konfiguraatioita tunnistetaan, mikä havainnollistaa periaa- tetta, jonka mukaan eri polut voivat johtaa samaan tulokseen. Osa yrityksistä saavuttaa päästö- vähennyksiä panostamalla sisäisiin tehokkuustoimiin, kun taas toiset nojaavat julkisiin sitoumuk- siin, aktiiviseen sidosryhmävaikutukseen ja kohdennettuihin investointeihin uusiutuvaan energi- aan. Tutkimuksen tulokset syventävät ymmärrystä siitä, miten kestävyyssiirtymät konkretisoituvat te- ollisessa ympäristössä. Tulokset korostavat, että merkittäviin päästövähennyksiin päästään to- dennäköisemmin, kun tekniset ja strategiset toimet yhdistetään tarkoituksenmukaisiksi kokonai- suuksiksi. Konfiguraatiolähtöinen lähestymistapa tarjoaa sekä teoreettista syvyyttä että käytän- nön työkaluja yritysjohdolle ja päätöksentekijöille, jotka pyrkivät edistämään vähähiilistä siirty- mää valmistavassa teollisuudessa. AVAINSANAT: Kestävyys, fsQCA, hiilijalanjäljen pienentämineen, pohjoismainen koneteolli- suus, uusiutuva energia, energiatehokkuus, sidosryhmävaikuttaminen, kestävän kehityksen tavoitteet. 4 Contents 1 Introduction 8 1.1 Background for the Study 8 1.2 Research Gap 11 1.3 Research Question and Objectives 12 1.4 Structure of the thesis 13 2 Literature review 14 2.1 Sustainability in the Machinery Manufacturing Sector 14 2.1.1 Global Sustainability Challenges in Machinery Manufacturing 15 2.1.2 The Role of Machinery Manufacturing in the Nordic Economy and Climate Goals 17 2.1.3 Configurations of Sustainability in Machinery Manufacturing 20 2.2 Evaluating Sustainability Strategies for Carbon Footprint Reduction in Machinery Manufacturing 22 2.2.1 Metrics for Assessing Carbon Footprint Reduction 22 2.2.2 Effectiveness of Sustainability Strategies 23 2.2.3 Configurations and Pathways to Carbon Footprint Reduction 24 2.3 Adoption of Renewable Energy Technologies in Machinery Manufacturing 25 2.3.1 Drivers and Barriers to Renewable Energy Adoption in Machinery Manufacturing 26 2.3.2 Empirical Evidence on Renewable Energy in Industrial Production 27 2.4 Energy Efficiency Improvements in Machinery Manufacturing 29 2.4.1 Technological and Process Innovations for Energy Efficiency 29 2.4.2 Energy Management Systems and Optimization in Industrial Operations 30 2.5 Stakeholder & Policy Engagement in Sustainability Strategies 32 2.5.1 Corporate Engagement in Sustainability Policies and Regulatory Frameworks 32 2.5.2 Industry Collaborations and Stakeholder Influence in Nordic Machinery Manufacturing 33 5 2.5.3 Public Commitments, Sustainability Disclosures and Reporting Standards 35 2.6 Sustainability Goals and Strategy Formulation 36 2.6.1 The Role of Value Chain Engagement in Machinery Sustainability 38 2.6.2 Strategic Commitment to Holistic vs Focused Sustainability Goals 39 2.6.3 The Impact on Multi-Dimensional Sustainability Strategies on Carbon Reduction 40 2.7 Literature-Based Insights for Further Analysis 41 3 Research methodology 43 3.1 Methodological Approach 43 3.2 Configurational model 45 3.3 Data collection 47 4 Results 49 4.1 Overview of the Data 49 4.2 Calibration of Data for QCA 55 4.3 Necessity Analysis: Identifying Essential Conditions 57 4.3.1 Necessity Test for the Positive Outcomes 58 4.3.2 Necessity test for the Negative Outcomes 60 4.4 Sufficiency Analysis: Identifying Pathways to Carbon Footprint Reduction 61 4.4.1 Intermediate Solution: Balancing Theory and Empirics 62 4.5 Sufficiency Analysis: Exploring Negative Configurations for Carbon Footprint reduction 67 4.5.1 Intermediate Solution: Theory-Guided view on Emission Reduction Failures 67 5 Discussion 73 5.1 Interpretation of results 73 5.2 Practical Implications 77 5.3 Limitations and future research 78 6 Conclusion 81 6 References 83 Appendix 1 97 7 Figures Figure 1: The 17 United Nations Sustainable Development Goals. Source: United Nations ........................................................................................................................................ 36 Figure 2. Bar chart for SDGA condition data .................................................................. 50 Figure 3: Bar chart for RET condition data ..................................................................... 51 Figure 4: Bar chart for EEI condition data ...................................................................... 52 Figure 5: Bar chart for SPE condition data ..................................................................... 53 Figure 6: Bar chart for Outcome variable data ............................................................... 54 Figure 7. Intermediate solution positive plot. ................................................................ 63 Figure 8. Intermediate solution negative plot. ............................................................... 68 Tables Table 1.Overview of the QCA methodology 45 Table 2. Qualitative thresholds of outcome and conditions. 55 Table 3. Fuzzy-set calibration table for 16 cases. 57 Table 4. Fuzzy-set Necessity analysis: Presence of conditions in positive outcomes. 58 Table 5. Fuzzy-set necessity analysis: Absence of conditions in positive outcomes. 59 Table 6. Fuzzy-set necessity analysis: Presence of conditions in negative outcomes. 60 Table 7. Fuzzy-set analysis: Absence of conditions in negative outcomes. 60 Table 8. Truth table. 62 Table 9. Configurations for positive outcome. 64 Table 10. Configuration leading to lack of carbon footprint reduction (negative out- comes). 69 8 1 Introduction As sustainability becomes a strategic priority across industries, understanding how com- panies approach emission reduction has grown increasingly important. In sectors with high energy use and global reach, the ability to reduce carbon footprints is not only a regulatory expectation but also a question of long-term competitiveness. While many companies have adopted various environmental initiatives, how these are combined into effective strategies remain under-explored. This study investigates how different sustainability strategies are configured in Nordic machinery manufacturing companies, with a particular focus on those strategies associ- ated with reductions in carbon emissions. Using Qualitative Comparative Analysis, (QCA), the study examines how combinations of renewable energy adoption, energy efficiency improvements, alignment of sustainable development goals, and stakeholder and policy engagement relate to emission performance. The study contributes to a growing body of literature that calls for a more nuanced understanding of corporate sustainability in complex sectors. It offers both empirical insight into Nordic machinery manufacturing sector and methodological value by applying a configurational approach to a field often dominated by case studies and regression models. Most importantly, the study responds to the need to understand how sustainability transitions unfold at the company level and how diverse strategic choices can together shape industrial progress toward climate goals. 1.1 Background for the Study Industrial decarbonization has become one of the central challenges in the global effort to address climate change. The manufacturing sector holds a dual position as both a key economic engine and a major contributor to greenhouse gas emissions. Globally, manu- facturing industries account approximately 20% of direct CO2 emissions, largely due to energy-intensive processes and reliance on fossil fuels (IEA, 2023). In response, 9 increasing regulatory pressure, stakeholder expectations, and evolving market standards are pushing companies to adopt more environmentally responsible strategies. The tran- sition toward low-carbon manufacturing is no longer optional but essential for long-term competitiveness and legitimacy in both national and international markets (Porte & Kra- mer, 2011; Bocken et al., 2014). Within this global context, the Nordic region stands out as a leader in environmental governance and clean technology innovation. Counties such as Finland, Sweden, Norway, and Denmark have developed ambitions climate policies and sustainability agendas, of- ten positioning themselves at the forefront of global environmental efforts. This progres- sive stance is supported by strong public institutions, high levels of environmental aware- ness, and industrial policies that encourage innovation in clean energy and sustainable manufacturing systems (Nordic Council of Ministers, 2011). As a result, Nordic industries operate in a context where sustainability is not only a regulatory expectation but also a strategic opportunity. Despite this enabling environment, the decarbonization of indus- trial sector stays a complex, resource-intensive, and often uneven process. Machinery manufacturing is a relevant sector for sustainability research. It is one of the key economic contributors in all four Nordic countries and plays a central role in indus- trial value chains, both regionally and globally. At the same time, it is characterized by high energy demands, complex production systems, and often large-scale global opera- tions. The sustainability challenges facing these companies are not only technical but also strategic, requiring decisions about how to distribute resources, which technologies to adopt, and how to align operational practices with broader environmental goals (Lozano, 2013; Baumgartner, 2014). To meet growing expectations, companies are in- creasingly engaging in sustainability practices such as investing in renewable energy sources, improving energy efficiency, aligning with international frameworks like the United Nations sustainable development goals, and taking part in policy and stakeholder initiatives. The way these strategies are adopted varies significantly from one company to another. 10 A central observation appearing from both practice and scholarship is that sustainability in industry is rarely achieved through a single initiative. Instead, it involves the interac- tion of multiple strategic choices and actions that are embedded in company culture, structure, and market environment (Lozano, 2013). For instance, adopting renewable energy technologies might have limited impact if not supported by energy efficiency im- provements or coherent goal setting. Similarly, engaging in stakeholder dialogues may not lead to meaningful outcomes unless the company has internal mechanisms for trans- lating external feedback into operational change. This makes it important to not only look at what companies are doing for sustainability, but also to understand how they integrate and coordinate these efforts. Even though this issue is becoming more important, research has often looked at indi- vidual sustainability practices on their own, without fully considering how they fit into broader corporate strategies (Evans et al., 2017). There is a need for more holistic and configuration-oriented approach that acknowledges the complexity of real-world deci- sion-making and the possibility that different combinations of sustainability actions may lead to similar or diverging outcomes. This study addresses this need by focusing on con- figurations of sustainability strategies in Nordic machinery manufacturing and examining how these configurations relate to actual carbon footprint reduction. By applying Qualitative Comparative Analysis (QCA), the study aims to identify which combinations of conditions are associated with lower emissions among companies op- erating in the Nordic machinery manufacturing sector. QCA is well-suited for this type of analysis, as it enables the investigation of multiple causal pathways rather than relying on assumption of linear or additive effects (Ragin, 2008; Fiss, 2011). The aim is not to isolate individual drivers, but to uncover how companies build their sustainability strat- egies in practice, and how different patterns of action contribute to or hinder carbon footprint reduction. 11 1.2 Research Gap Although the sustainability literature in manufacturing is extensive, much of it examines individual practices in isolation. For example, there are studies on the effects of renew- able energy (IRENA,2020), stakeholder engagement (Freeman et al., 2007), or energy efficiency, but fewer studies look at how these elements interact withing broader com- pany strategies. This fragmented view can overlook the complexity and diversity of real- world decision-making in industrial context. Most existing studies apply linear or regression-based methods that are well suited for identifying average effects but may not capture how different combinations of condi- tions can lead to the same outcome, a concept known as equifinality (Fiss, 2011). In con- trast, the configurational approach used in this study acknowledges that companies may follow different but equally effective paths toward sustainability goals. There is also limited empirical research that focuses specifically on the Nordic machinery manufacturing sector, despite its strategic importance and potential as a global example in sustainable industrial practices. The need to better understand how companies in this sector navigate their sustainability choices, and what combinations of efforts lead to real carbon footprint reductions, stays unexplored. This study addresses these gaps by applying Qualitative Comparative Analysis (QCA) to identify which configuration of renewable energy adoption, energy efficiency improve- ments, stakeholder and policy engagement, and alignment with sustainable develop- ment goals are associated with carbon footprint reduction. By doing so, it contributes to both the academic literature on sustainable manufacturing and to the practical under- standing of industrial decarbonization in the Nordic context. 12 1.3 Research Question and Objectives The purpose of this study is to explore how sustainability strategies are configured in Nordic machinery manufacturing and how these configurations are linked to the meas- urable reductions in carbon emissions. Instead of focusing on individual strategies, the research takes a configurational approach to understand how companies combine vari- ous efforts in practice. By examining real-world patterns rather than isolated actions, the study aims to uncover how companies succeed in reducing their carbon footprint through different strategic pathways. The research is guided by the following question: What configuration pathways of renewable energy adoption, alignment with sustainable development goals, stakeholder & policy engagement and energy efficiency improve- ments lead to carbon footprint reduction in Nordic machinery manufacturing? This question reflects the aim of identifying different ways companies can achieve similar outcomes in terms of carbon footprint reduction. It also highlights the role of strategic alignment across multiple sustainability factors, rather than relying on a single factor or solutions. To address this question, the study sets the following research objectives: 1. To identify key sustainability strategies adopted by Nordic machinery manufac- turing companies, with a focus on renewable energy, energy efficiency, stake- holder & policy engagement, and sustainability goal setting. 2. To examine how these strategies are combined across companies and whether certain configurations are more often associated with reductions in carbon emis- sions. 3. To apply Qualitative Comparative Analysis to identify necessary and sufficient combinations of conditions associates with carbon footprint reduction. 4. To contribute to sustainability research by offering a configurational-based un- derstanding of industrial decarbonization pathways in a Nordic context. 13 Through these objectives, the study looks to provide insight into how different sustaina- bility efforts work together and how companies can develop more effective and coher- ent approaches to decarbonization. 1.4 Structure of the thesis Following this introductory chapter, the thesis is organized into 5 chapters that build to- ward a comprehensive understanding of how sustainability strategies are configured in Nordic machinery manufacturing and how these configurations relate to carbon foot- print reduction. Chapter 2 presents a literature review that outlines key theoretical and empirical perspectives on corporate sustainability, configuration theory, and decarboni- zation in industrial context. This chapter also discusses the role of energy efficiency, re- newable energy adoption, stakeholder and policy engagement, and sustainable devel- opment goals in shaping sustainability performance. Chapter 3 introduces the method- ological framework of the study, focusing on the use of Qualitative Comparative Analysis (QCA). It details the case selection process, calibration procedures, and the operational- ization fuzzy-set QCA approach. Chapter 4 presents the empirical results from the QCA, including necessity and suffi- ciency analyses for both positive and negative outcomes. The chapter explores how dif- ferent configurations of conditions are associated with reduced carbon footprints among the selected companies. Chapter 5 interprets these findings in the light of literature, of- fering theoretical reflections and practical implications for sustainability management in the Nordic machinery manufacturing sector. The closing chapter concludes the thesis by summarizing the key points. 14 2 Literature review This chapter reviews the body of literature on sustainability strategy in industrial con- texts, with an attention to the machinery manufacturing sector. The purpose is to find a conceptual foundation for examining how companies develop and implement practices aimed at reducing their carbon footprint. The review focuses on key themes, such as renewable energy adoption, energy efficiency improvements, stakeholder and policy en- gagement, and sustainability goal setting. It also reflects on the limitations of reduction- ist or linear analytical approaches in this domain and present configurational thinking as a more suitable alternative for capturing the complexity of sustainability in practice. 2.1 Sustainability in the Machinery Manufacturing Sector A pillar of world economic activity, the manufacturing sector greatly influences employ- ment, trade, and technology development. Still, its environmental effect still presents a difficulty. Due mostly to energy-intensive operations and reliance on fossil fuels, the manufacturing sector is responsive for more than 20% of global carbon dioxide (CO₂) emissions according to the International Energy Agency (IEA, 2021). Beyond carbon emissions, the industry creates waste and uses vast amounts of water, therefore aggra- vating global environmental issues including resource depletion and pollution (Rock- ström et al., 2009). Aiming to divorce industrial expansion from environmental damage, the immediacy of these concerns has resulted in worldwide calls for sustainability in manufacturing. This aim conforms to main international frameworks such as the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement. While SDG 12 emphasises the need of sensible consumption and production patterns, SDG 9 supports resilient infrastructure and sustainable industrialisation (United Nations, 2015). Addressing global sustainability challenges in the manufacturing sector requires adopt- ing sustainable practices that enhance resource efficiency, reduce emissions, and 15 promote responsible production. Innovations such as energy-efficient machinery, re- newable energy integration, and waste recycling systems have been identified as key enablers of sustainable manufacturing. However, the adoption of these practices differs widely across regions and industries, resulting in factors such as economic conditions, policy support, and organizational capabilities (Alayón et al., 2022). 2.1.1 Global Sustainability Challenges in Machinery Manufacturing Although the machinery manufacturing contributes significantly to world economic de- velopment, it also affects the environment, runs out of resources, and creates social is- sues. Advancement of sustainable development and preservation of long-term eco- nomic and ecological balance depend on addressing these problems. A main cause of greenhouse gas emissions and resulting climate change are manufac- turing processes. Particularly because of energy-intensive manufacturing techniques and reliance on fossil fuels, the industry makes a significant share of world carbon dioxide emissions. Managing manufacturing emissions is essential for national and regional cli- mate targets in the Nordic area, where industrial output dominates the economy. Fur- thermore, resulting in pollution of air and water are industrial activities, which harm ecosystems and human health by means of their harmful effects on Natural resources, minerals, water, and energy, have a major impact on manufacturing. Exploitation of these resources disturbs the natural equilibrium and hinders the future generations of these people. Nordic nations have underlined circular economy ideas, investments in sustainable raw material sourcing and industrial symbiosis projects (Nordic Council of Ministers, 2022), therefore helping to slow down resource depletion. Waste creation is another issue in the manufacturing industry. Massive amounts of in- dustrial waste, including hazardous chemicals, present disposal issues and cause envi- ronmental damage. Pollutants can enter soil and water systems without effective waste management strategies, causing long-term environmental harm and public health risks (Ghisellini et al., 2016). Nordic manufacturers have been in the forefront of waste 16 reduction efforts, with Sweden, Denmark, and Finland ranking as global leaders in indus- trial recycling and material efficiency (European Environment Agency, 2023). Beyond environmental difficulties, the sector has significant social sustainability chal- lenges. In some industries, occupational health hazards, violations of labour laws, and bad working conditions continue to be prevalent. Maintaining corporate social respon- sibility and legitimacy in global supply chains requires corporations to ensure ethical em- ployment standards and safe working conditions (Jabbour et al., 2019). Nordic countries, known for their rigorous labour restrictions and high social standards, have established objectives for equal manufacturing employment (OECD, 2024). However, knowledge problems remain in the integration of sustainability into global supply networks on which Nordic enterprises rely for raw materials and components. Furthermore, limiting the general acceptance of sustainable manufacturing are eco- nomic restrictions. Small and medium-sized businesses may find it difficult to afford the often-large financial commitment needed for the shift to green technology. Although large multinational enterprises have the means to carry out sustainability projects, many smaller businesses might find it difficult to afford the high expenses of equipment up- grades and cleaner manufacturing methods (Bocken et al., 2014). Making sustainable investments more available to all manufacturing enterprises depends critically on gov- ernment incentives, subsidies, and regulatory systems. The intricacy of global rules hinders efforts at sustainability even more. Different nations have very different environmental legislation, which presents difficulties for multina- tional companies attempting to apply consistent sustainability standards. Inconsistent enforcement and regulatory uncertainty make it challenging for businesses to match their activities with worldwide environmental goals. Steps towards addressing these pol- icy issues are harmonising international regulations and establishing explicit sustainabil- ity criteria (Porter & Kramer, 2011). 17 Handling these several issues calls for cooperation among legislators, business execu- tives, and others. Approaches like support of worldwide cooperative projects, better manufacturing practices, and investment in sustainable research and development might assist to propel the transformation towards a manufacturing sector more sustain- able. Including social, environmental, and financial aspects into industrial processes helps the manufacturing sector enhance long-term sustainability and raise competitive- ness in a worldwide market. 2.1.2 The Role of Machinery Manufacturing in the Nordic Economy and Climate Goals The Nordic economy depends much on the machinery manufacturing industry, which also greatly influences industrial production, exports, and employment. Complementing the region's lofty standards for quality and sustainability, the sector specialises in ad- vanced engineering, industrial automation, and energy-efficient technology as a natural element of global supply chains (Johnsen et al., 2015). Including Sweden, Finland, Den- mark, and Norway, Nordic nations have built internationally competitive machinery in- dustries providing precision manufacturing, energy generation, and construction equip- ment (Lager et al., 2023). Driving technological innovation across the area and support- ing a highly qualified workforce, the industry is also a key employer (OECD, 2024). Though its economic value, manufacture of machinery is a significant contributor to in- dustrial greenhouse gas (GHG) emissions. Energy-intensive operations such metalwork- ing, machining, and material processing, which produce significant carbon emissions, are relied upon in the sector. Nordic companies have responded to these difficulties by using process innovations, electrification, and energy efficiency gains as well as by improving their own products. Sweden, for instance, has established a legally enforceable objective to reach net-zero emissions by 2045, therefore reducing significant emissions in indus- tries like machinery manufacture (Government Offices of Sweden, 201). Emphasising on improving energy efficiency and raising the use of renewable energy within its industrial sectors, Finland also an even more ambitious target to strive for carbon neutrality by 2035 (Ministry of the Environment, Finland, n.d.). 18 Changing to low-carbon materials is one of the most effective ways machinery manufac- tures may cut emissions. A substantial portion of the sector's carbon footprint comes from the manufacturing of steel and other metals utilised in industrial equipment. Nor- dic businesses are, for instance, funding green steel technologies that reduce the de- mand for iron produced from fossil fuels. Aiming to lower CO₂ emissions by up to 98% per metric tonne of steel compared to conventional blast furnace methods, the HYBRIT project, a cooperation between SSAB, LKAB, and Vattenfall—pioneers the use of hydro- gen in steel production (Åhman et al., 2018). This project might significantly lower Swe- den's overall carbon dioxide emissions, therefore supporting somewhat large national climate targets. Adoption of green steel is likely to have broad effects on machinery man- ufacture since it will let businesses create industrial equipment with less embedded emissions. The Nordic approach for sustainable machinery manufacturing depends critically on electricity. Although historically industrial processes have depended on fossil fuels, there is a significant movement towards electric substitutes. To lower operating emissions, companies in Finland, for instance, are using electric and hybrid-powered industrial gear more and more. General-purpose technologies like electricity and information and com- munication technology (ICT) diffused inside the Finnish industrial sector help to smooth this transition by increasing production and energy efficiency (Myllyntaus, 1985). Like- wise, Danish businesses have been leading in incorporating technology for energy-effi- cient automation. Building automation and control systems implemented in Danish buildings have proved to maximise interior environmental quality and energy consump- tion (Pedersen et al., 2022). These improvements complement the Industrial Strategy of the European Union (EU), which supports the acceptance of sustainable energy solutions throughout European industrial sectors (European Commission, 2020). Apart from reducing emissions, Nordic machinery manufacturers are also implementing circular economy methods to cut waste and enhance resource effectiveness. Re- 19 manufacturing and industrial symbiosis are two circular business concepts that are start- ing to show up in the area somewhat often. Re-manufacturing initiatives, renovating old machinery, and extending product lifecycles to lower raw material consumption have been investments made by businesses such Sandvik and Wärtsilä (Ghisellini et al., 2016). By cutting material prices and guaranteeing long-term resource availability, this strategy not only lessens environmental consequences but also increases economic competitive- ness. Another transforming power influencing Nordic machinery production's sustainability is digitalisation. Adoption of Industry 4.0 technologies, including artificial intelligence (AI), digital twins, and Inter-net of Things (IoT), has let manufacturers maximise production efficiency and lower waste (Chari et al., 2021). For example, AI-driven predictive mainte- nance solutions let businesses lower energy usage and machine downtime, so enhancing the general sustainability performance (Jamwal et al., 2021). With many businesses em- ploying AI-based process optimization technologies to lower resource use and improve production efficiency, Sweden's industrial sector has been exceptionally innovative in embracing digital solutions (Business Sweden, 2022). Even with improvements in sustainable methods, there are still great difficulties match- ing machinery manufacture with Nordic climate targets. The great expense involved in implementing sustainable technology, particularly for small and medium-sized busi- nesses, is a main obstacle. Although big companies have the financial means to invest in low-carbon technology, many smaller companies find it difficult to get the necessary money for green transition projects (Alayón et al., 2022). Although government subsidies and innovation grants have been very helpful in promoting sustainable investments, more policy actions would be required to hasten the decarbonisation of the industry (OECD, 2019). Sustainable machinery manufacturing suffers from supply chain dependencies. Nordic machinery manufacturing companies may source its raw materials and components 20 elsewhere, where environmental rules could be less strict. Achieving real sustainability in the sector depends on resources being respirally sourced and traceable. Several Nor- dic businesses have responded by using recycled materials more widely and working with suppliers to improve environmental responsibility across their value chains (Wiktorsson et al., 2008). To make sure Nordic machinery manufacture fits with climate objectives, future public- private cooperation, investment in green technologies, and legislative backing will be very vital. The Nordic area has great potential to lead worldwide in sustainable indus- trial production by using its strengths in innovation, digitalisation, and resource econ- omy. Even if there are still difficulties, the continuous shift towards electrification, cir- cular economy models, and digital optimisation offers a strong basis for the future of climate-friendly machinery production in the region. 2.1.3 Configurations of Sustainability in Machinery Manufacturing Sustainable manufacturing demands businesses to embrace configurations of technolo- gies, regulations, and operational strategies that support sustainability while preserving efficiency by including environmental, financial, and social aspects into production pro- cesses (Ghobakhloo, 2020). Although these setups differ across sectors, generally they reflect acceptance of circular economy ideas, digitalisation, regulatory compliance, and renewable energy sources (Bocken et al., 2014). Sustainability is progressively addressed in Nordic machinery manufacture by means of digitalised processes, low-carbon materi- als, and energy-efficient manufacturing techniques. National climate legislation, industry pledges, and technology capabilities all help to define these setups. The reconfigurable manufacturing system is one often used method that lets businesses change production capacity and functionality in response to sustainability needs (Koren & Shpitalni, 2010). Reconfigurable manufacturing system offers adaptive processes that enhance resource efficiency, lower waste, and enable the incorporation of cleaner 21 production technologies (Koren et al., 2018) unlike conventional mass production. For instance, the utilisation of modular manufacturing lines in automotive and electronics sectors enables enterprises to turn towards low-carbon operations without massive in- frastructure expenditures (Monostori et al., 2016). Another configuration includes circular economy practices, which focus on designing products for longevity, reusability, and recyclability (Geissdoerfer et al., 2017). The change from linear production models (take-make-dispose) to circular systems requires integrating re-manufacturing, industrial symbiosis, and closed-loop supply chains. Nor- dic machinery manufacturers have pioneered re-manufacturing programs that extend product lifecycles while reducing material waste and, for example, Finland has been an early adopter of resource-efficient business models in the metal and machinery indus- tries, aligning with EU sustainability regulations (Korhonen et al., 2021). The Fourth Industrial Revolution (Industry 4.0) technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, also play a significant role in sustainable manufacturing configurations (McKinsey & Company, 2023). Digitalized production processes enable Nordic manufacturers to optimize energy use, reduce emis- sions, and minimize material waste. AI-driven predictive maintenance systems, for ex- ample, are helping companies like Metso and Kone enhance operational efficiency while lowering carbon footprints (Jamwal et al., 2021) The World Economic Forum’s Global Lighthouse Network has recognized several companies that have successfully imple- mented AI-driven sustainability solutions, leading to substantial reductions in energy consumption and industrial waste (World Economic Forum, 2022). Regulatory and policy configurations also shape sustainability in manufacturing. Compa- nies operating in the European Union must follow with climate policies, emissions trad- ing systems, and corporate sustainability reporting standards (European Commission, 2020). These policies reward manufacturers to invest in low-carbon technologies, adopt lifecycle assessments, and integrate sustainability metrics into business operations (Kim 22 et al., 2022). With their strict environmental policies, Nordic nations have driven produc- ers of machinery towards ambitious carbon reduction plans. Sweden’s legally binding net-zero targets for 2045 and Finland’s carbon neutrality goal for 2035 create strong reg- ulatory incentives for sustainable manufacturing investments. Research shows that com- panies in countries with stringent environmental policies tend to adopt more proactive sustainability measures, compared to companies in regions with weaker regulatory en- forcement (Porter & Linde, 1995) 2.2 Evaluating Sustainability Strategies for Carbon Footprint Reduction in Machinery Manufacturing Reducing carbon footprints in machinery manufacturing is essential because of its mean- ingful environmental impact from energy-intensive processes (IEA, 2021). Nordic manu- facturers are at the lead to sustainability efforts, actively integrating renewable energy, energy efficiency, circular economy initiatives, and stakeholder engagement, driven by regulatory frameworks and technological advancements (Nordic Council of Ministers, 2022; OECD, 2022). Reliable evaluations methods and metrics as well as theoretical frameworks like configurational theory, which allow complicated strategy interactions and multiple paths lading to similar outcomes, help one to understand how these strat- egies and their configurations effectively reduce carbon footprints (Fiss, 2011). 2.2.1 Metrics for Assessing Carbon Footprint Reduction Effective evaluation of sustainability strategies depends on standardized and widely rec- ognized metrics. The Greenhouse Gas (GHG) protocol identifies emissions as direct emis- sions (Scope 1), indirect emissions from electricity use (Scope 2), and other indirect emis- sions within the value chain (Scope 3). Scope 3 often is the largest emissions share, en- compassing activities like supply chain logistics, product disposal, and employee com- muting (World Resource Institute, 2004; Pandey et al., 2010). 23 Carbon intensity, measuring emissions per production unit, is another essential metric. It reflects both environmental impact and resource efficiency, helping manufacturers as- sess improvements and align with international climate objectives like the Paris Agree- ment (Ke et al., 2024; UNFCCC, 2015). Also, renewable energy adoption metrics, such as the proportion of renewable energy in total energy mix or carbon dioxide reductions from renewable energy sources, provide crucial indicators of progress and transparency to stakeholders (IEA, 2021; CDP, 2023). 2.2.2 Effectiveness of Sustainability Strategies Empirical evidence highlights the effectiveness of targeted sustainability strategies in machinery manufacturing. Energy efficiency measures, such as adopting high-efficiency motors, automation, digital monitoring, and AI-driven optimization, consistently achieve significant emissions reductions (20-30%) in Scope 1 and Scope 2 emissions over a five- year period (Govindan & Hasanagic, 2018). However, achieving ambitious carbon emis- sion targets typically requires integrating energy efficiency measures with added strate- gies. Renewable energy integration is a complementary strategy that substantially reduces emissions. Companies sourcing over half their electricity from renewables shows signif- icantly lower Scope 2 emissions (Huang et al., 2018). Practices such as long-term renew- able power purchase agreements and onsite renewable energy investments help stabi- lize energy costs and reduce reliance on fossil fuels (Horbach et al., 2012). The combined use of energy efficiency improvements and renewable energy often leads to even greater reductions in overall intensity. Circular economy approaches also contribute to emissions reduction. Re-manufacturing, component reuse, and closed-loop recycling reduce lifecycle emissions by up to 40% compared to traditional linear production (Lieder & Rashid, 2015). Successful circular economy implementations often depend robust supply chain cooperation and 24 regulatory support, reinforcing the importance of strategic integration rather than iso- lated actions. Stakeholder engagement and policy alignment further amplify the effectiveness of sus- tainability strategies. Active participation in cross-sector collaborations, policy advocacy, and supplier sustainability programs enhances reductions especially in Scope 3 emis- sions. Companies engaged in voluntary disclosure and sustainability reporting typically outperform counterparts lacking such initiatives, partly because of the influence of rig- orous frameworks like the European Green Deal (Brammer et al., 2011; Pandey et al., 2011). 2.2.3 Configurations and Pathways to Carbon Footprint Reduction Although individual sustainability strategies give measurable results, variations exist in how these strategies are combined and configured by different companies, industries, and regions. Comparative studies show that industries tailor their sustainability strate- gies according to their technological capabilities, regulatory environments, and market conditions (Ghobakloo, 2020; Geissdoerfer et al., 2017). For instance, energy-intensive industries prioritize renewable energy adoption and process optimization, because pre- cision and high-tech sectors lean towards digital transformation and smart manufactur- ing technologies (Mattingly, 2020). Nordic manufacturers consistently improve carbon footprint reductions compared to global peers, influenced heavily by stringent regional regulations, governmental funding, and early adoption of sustainable practices like renewable energy and circular economy models (OECD,2022; Åhman, 2018). Companies in less regulated regions rely more often on voluntary initiatives and carbon offsetting programs, showing that regulatory con- texts shape the chosen sustainability pathways. Supply chain strategies also vary, with European and Japanese manufacturing embed- ding sustainability deeper through difficult audits, green procurement, and lifecycle 25 assessments, compared to North American manufacturers, who often prefer broader sustainability reporting standards (Wiktorsson et al., 2008; Kim et al., 2022). Digitaliza- tion plays an important role across industries in enabling sustainability configurations, with Industry 4.0 technologies, such as AI-driven predictive maintenance enhancing re- source efficiency and emissions reductions, especially in advanced manufacturing con- texts (World Economic Forum, 2022). While suitable empirical evidence exists on individual strategies, studies often overlook the complexity of strategy interactions. Configuration theory, operationalized through methods such as Qualitative Comparative Analysis (QCA), addresses this gap by empha- sizing the concepts of causal complexity, equifinality, and conjunctural causation (Fiss, 2011; Ragin, 2008). Recognising that different configurations of activities and contextual elements might produce identical environmental effects, QCA offers a methodical ap- proach analysing several sustainability strategy combinations. This theoretical viewpoint is relevant to the varied terrain of Nordic equipment production, where businesses em- ploy different configurations yet result in similar carbon footprint reductions (Misangyi et al., 2017). 2.3 Adoption of Renewable Energy Technologies in Machinery Manufac- turing As businesses strive to lower their carbon footprint and obey more stringent environ- mental rules, the use of renewable energy technology in machinery manufacturing be- comes an increasingly significant issue. Offering substitutes for fossil fuels, renewable energy sources such solar, wind, and bioenergy enable businesses to move towards more ecologically friendly manufacturing methods. Particularly in the Nordic area, where gov- ernments offer incentives to hasten the use of renewable energy, this transformation fits both company sustainability aims and more general policy frameworks (European Envi- ronment Agency, 2022). Excluding obvious advantages, there are also difficulties ranging 26 from high first investment costs to technical and operational limitations affecting the viability of extensive deployment. Since machinery manufacturing is an energy-intensive sector, using renewable energy may have a major impact on cost structures and operational effectiveness. Studies reveal that certain businesses struggle with integration owing to infrastructure constraints and energy intermittency even if some others obtain favourable financial and environmental outcomes by means of renewable energy technology adoption (Usman et al., 2024). Nor- dic nations well-known for their strong environmental goals offer a valuable setting for research on how equipment producers negotiate these challenges. Reviewing empirical data on the subject, the following sections investigate the main drivers and obstacles affecting the acceptance of renewable energy sources and provide case studies showing actual use in Nordic corporations. 2.3.1 Drivers and Barriers to Renewable Energy Adoption in Machinery Manufactur- ing Many factors inspire the use of renewable energy technologies in the machinery manu- facturing. Regulatory systems are very important with policies like carbon reduction tar- gets, subsidies, and tax incentives inspiring businesses to go towards sustainable energy sources (International Energy Agency, 2021). Nordic governments have created aggres- sive energy policies that promote renewable integration by helping companies involved in clean energy solutions financially (Pereira et al., 2019). Beyond environmental issues, the industry has major social sustainability challenges. In some sectors, occupational health dangers, labour rights breaches, and poor working conditions still rule. Maintain- ing corporate social responsibility and preserving legitimacy in worldwide supply chains depends on companies guaranteeing ethical labour standards and safe working condi- tions (Jabbour et al., 2019). Renowned for their strict labour regulations and excellent social standards, Nordic nations have set goals for equitable manufacturing employment (OECD, 2024). Knowledge challenges, however, remain in integrating sustainability into global supply networks Nordic companies depend on for raw materials and components. 27 Technological developments help to assist the change by raising the dependability and efficiency of renewable energy sources. Various energy storage, smart grid, and energy management system improvements have lessened certain associated issues with renew- able energy (IEA, 2021). Long-term cost cuts are also a major motivator as businesses investing in renewable energy can eventually lower power costs, therefore reducing the risk associated with fluctuating fossil fuel prices (Raventós et al., 2022). Despite these benefits, adoption is hampered in certain ways also. Mostly for small and medium-sized businesses without significant financial means for large-scale investments, the high upfront costs of building renewable energy infrastructure remain one of the key challenges (Gielen et al., 2019). Especially in older industries not built for distributed energy sources, integrating renewables into current production processes might be chal- lenging. Another obstacle is energy intermittency as industrial activities depend on con- sistent, uninterrupted power supply, which can be challenging with varied renewable sources like solar and wind (Pappas, 2018). Adoption of the new energy systems is fur- ther hampered by organizational opposition to change and the necessity of qualified people to oversee them (Kemp et al., 2022). To enable a more seamless shift towards renewable energy in industrial environments, these obstacles call for concerted initia- tives incorporating regulatory support, technological developments, and financial re- sources. 2.3.2 Empirical Evidence on Renewable Energy in Industrial Production Empirical studies on the acceptance of renewable energy sources in industrial produc- tion offer insights on both the advantages and difficulties in switching to sustainable en- ergy sources. Many studies reveal that businesses including renewable energy into their manufacturing operations save long-term costs, have better energy security, and im- prove environmental performance (Raventós et al., 2022). Companies investing in on- site renewable energy generation—such as solar photovoltaics or wind turbines—report 28 cheaper power prices and less dependency on outside energy sources, therefore strengthening general resilience (Traxler et al., 2020). Companies employing a broad renewable energy portfolio, including solar, wind, and bi- oenergy, achieved more consistency in energy supply compared to those depending on a single energy source, according to a study concentrating on Nordic industrial sectors (Dancker et al., 2021). Furthermore, evidence points to the notion that including renew- able energy sources into industrial processes supports environmental rule compliance and improves stakeholder relations, hence aiding larger business sustainability initiatives (Pereira et al., 2019). Empirical studies also point to certain difficulties. Studies on industrial energy transitions emphasise that, while small manufacturers sometimes struggle with money and techno- logical capability, larger multinational corporations have the financial and technical means to invest in renewable energy (Usman et al., 2024). Integration of renewable en- ergy sources is effective depending on several elements including regional grid infra- structure, availability of storage technologies, and consistent policy. Sometimes regula- tory uncertainty or market changes have made it impossible for businesses to guarantee consistent renewable energy sources (Pappas, 2018). Although the acceptance of renewable energy sources in industrial production shows obvious advantages, overall empirical results imply that the success of such projects de- pends on a combination of economic, technological, and policy-related elements. Inves- tigating how various industrial sectors maximise renewable energy utilisation and mini- mise adoption difficulties is still much required. 29 2.4 Energy Efficiency Improvements in Machinery Manufacturing Reducing growing energy prices, carbon emissions, and the demand for sustainable pro- duction depends on machinery manufacture improving its energy efficiency. Two main areas of development have evolved when industrial operations change to fit these de- mands: systematic energy management strategies and technical and process advances. 2.4.1 Technological and Process Innovations for Energy Efficiency Often driven by indirect or peripheral energy usage rather than the core material trans- formation itself, industrial operations in the machinery manufacturing industry consume a lot of energy. While machining involves material removal and shaping, only a small part of the total energy consumed is dedicated to this transformation. Instead, a sizable part is dedicated to activities like cooling, lighting, and machine standby (Fysikopoulus et al, 2013). As a result, focusing energy improvements at the process and machine-tool levels offers a significant opportunity to reduce total energy demand. Tooling innovations, smarter control systems, and more efficient machine configurations can all help to re- duce direct and indirect energy consumption. Adjusting process parameters like feed rates, cutting speed, and depth of the cut, for example, can result in more efficient en- ergy utilization while maintaining product quality. Technological advantages in digital infrastructure have also played an important role. As Hong et al. (2024) demonstrated in semiconductor manufacturing, real-time monitoring of energy consumption via IoT sensors and machine learning models allows facility man- agers to gain granular insights into energy usage. These findings support targeted inter- ventions, particularly at the tool and chamber levels, where variations in energy use are often overlooked in aggregated reporting. While originally developed for semiconductor fabrication, such data-driven methods are increasingly applicable to machinery manu- facturing, particularly in operations with complex tool sets and batch variability. The adoption of variable speed drives in chilled water systems, for example, has yielded 30 energy reductions of up to 30%, while upgraded coolers have delivered 40-50% effi- ciency improvements (Hong et al.,2024). In addition to direct energy savings, many of these interventions provide non-energy benefits. These may include increased process stability, higher product quality, less ma- terial waste, and lower maintenance costs. Worrel et al. (2003) discovered that in their review of over 70 industrial case studies, these non-energy benefits often outweighed the financial value of energy savings, especially in capital-intensive industries. Energy efficient technologies can increase overall productivity by reducing downtime and im- proving yield consistency. In the machinery manufacturing industry, where dependability and uptime are critical performance indicators, incorporating non-energy benefits of in- vestment evaluations can alter the perceived cost-benefit ration of energy efficiency pro- jects. 2.4.2 Energy Management Systems and Optimization in Industrial Operations While individual technological upgrades can result in measurable improvements, it is only by integrating these innovations into a structured energy management frameworks that manufacturers can fully realize their potential. Energy management systems, such as those defined by ISO 50001, provide a structured and repeatable method for identi- fying, tracking, and improving energy performance over time. According to Ioshchikhes at al. (2025) the energy management systems framework is based on a Plan-Do-Check- Act (PDCA) cycle, which includes identifying significant energy uses, setting up baselines, and implementing corrective measures based on real-time or historical energy data. Expert systems have appeared as complementary tools within energy management frameworks to aid decision-making in increasingly complex production environments. These systems mimic human expertise and enable consistent, rule-based decision-mak- ing in identifying inefficiencies and proposing interventions. Expert systems assist to in- stitutionalise energy knowledge while also lessening dependence on human expertise in manufacturing environments when trained energy engineers may be rare. Using such a 31 system in a metalworking manufacturing line, Ioshchikhes et al. (2025) showed how well it lowered energy usage while preserving operational flexibility. Along with pointing out areas for improvement, the system encouraged knowledge transfer across organisa- tional levels, auditability, and openness. Especially in relation to dynamic power price, manufacturing schedule optimisation is another crucial area for raising energy efficiency. Time-of-Use power rates, in which costs change depending on peak and off-peak hours, have given firms incentives to move high- energy operations to less expensive tome windows. Investigating this in flexible flow shops, Zhang et al. (2019) created a multi-objective optimisation model weighing make span against electricity cost. Their methodology produced a more whole view of opera- tional energy consumption by including setup energy, standby energy, and active pro- cessing energy. They produced Pareto-optimal answers balancing cost minimisation and production efficiency by use of a stronger Pareto evolutionary algorithm. This approach shows how closely production planning should match power pricing to lower running costs and improve sustainability measures. Limited technical knowledge, budget constraints, and lack of data availability often sty- mies energy efficiency efforts. Ketenci and Wolf (2024) proposed a practical framework that combined energy flow analysis and greenhouse gas accounting and is specifically designed for non-energy-intensive small and medium-sized companies. Their application in two European case studies resulted in energy saving of 16% and 22%, respectively, thanks to cost-effective inventions that did not require large capital investments. These findings demonstrate that even small companies with limited resources can make im- provements in energy efficiency when guided by structured and transparent evaluation methodologies. Such frameworks increase operational personnel awareness and owner- ship of energy performance, thereby contributing to the development of an efficient cul- ture over time. 32 2.5 Stakeholder & Policy Engagement in Sustainability Strategies Stakeholder and policy engagement also play an important role in companies’ sustaina- bility strategies, especially in industries with high environmental impacts, such as Nordic machinery manufacturing. Companies in this sector operate in a complex landscape where sustainability performance is shaped by regulatory requirements, industry collab- orations and higher stakeholder expectations. Drawing on stakeholder theory (Freeman, 1984), this section explores how companies engage with sustainability policies, industry partnerships, and public commitments to improve their environmental and social per- formance. 2.5.1 Corporate Engagement in Sustainability Policies and Regulatory Frameworks Stakeholder theory, originally introduced by Freeman (1984), provides a conceptual foundation for understanding the strategic role of external engagement in sustainability. It highlights that businesses should consider the interest of multiple stakeholders beyond shareholders, including regulators, policy makers, customers, and local communities (Donaldson & Preston, 1995). This is relevant in sustainability governance, where corpo- rate engagement in regulatory frameworks and policy approval is essential for aligning business practices with environmental goals. (Freeman et al., 2020). As already mentioned, Nordic countries have implemented strict climate policies, requir- ing companies to follow emission reduction targets, energy efficiency regulations, and extended producer responsibility programs (Meckling & Nahm, 2019). The European Un- ion’s Corporate Sustainability Reporting Directive further directive transparent disclo- sure of sustainability performance, reinforcing corporate accountability (European Com- mission, 2023). Many Nordic machinery manufacturers go beyond compliance by actively implementing sustainability policies. This includes participation in government-industry dialogues, lob- bying for incentives supporting green technologies, and contributing policy discussions 33 on circular economy initiatives (Zomer et al., 2022). By integrating sustainability into cor- porate strategies, companies increase their legitimacy, mitigate regulatory risks, and strengthen relationships with key stakeholders. 2.5.2 Industry Collaborations and Stakeholder Influence in Nordic Machinery Manu- facturing Stakeholder engagement in sustainability extends beyond compliance and regulation to include voluntary collaboration, knowledge sharing, and co-development of solutions. From the perspective of stakeholder theory, such multi-actor collaboration is a strategic response to stakeholder expectations and environmental complexity. Partnerships with government bodies, NGOs, academic institutions, and industry peers enable companies to jointly address sustainability challenges, reinforce legitimacy, and build collective ca- pacity for environmental performance (Ansari et al., 2013). The GreenOffshoreTech project, a European Union-funded initiative that connects com- panies, research institutions, and public sector actors from several countries, including Nordic and Baltic regions, is a well-known example of collaborative sustainability efforts in the Nordic region. This alliance aims to accelerate the development and adoption of environmentally sustainable offshore technologies by providing small and medium-sized businesses with innovation funding, cross-border collaboration, and shared R&D re- sources. Participating companies are encouraged to experiment with new materials, im- plement energy-efficient systems, and develop sustainable production methods, espe- cially in the maritime and offshore manufacturing sectors, where individual actors may lack the resources or expertise to innovate their own (GreenOffshoreTech, 2023). These kinds of initiatives demonstrate how industry alliances can both drive technological in- novation and advocate for supportive regulatory frameworks and financial mechanisms that promote long-term environmental responsibility in industrial development (Euro- pean Commission, 2022). 34 Beyond formal industry alliances, machinery manufacturer also engages with suppliers, customers, and competitors in sustainability-focused partnerships. Supply chain sustain- ability initiatives are becoming increasingly important, as companies recognize that their environmental impact extends beyond their direct operations. Strict green procurement rules help Nordic equipment businesses to guarantee that their suppliers follow sustain- ability standards include using recycled materials, lowering carbon emissions, and using energy-efficient technologies (Lozano, 2015). By allowing businesses to build more trans- parent and responsible value chains, collaborative supply chain solutions help to reduce environmental risks and raise general industry sustainability (Engert et al., 2016). Stakeholder engagement in Nordic machinery manufacturing also involves non-govern- mental organizations and consumer advocacy groups, which plays an important role in holding companies accountable for their sustainability commitments. Organizations such as the Nordic Council for Sustainable Industry actively check corporate sustainabil- ity performance and push for more ambitions environmental policies. This external pres- sure encourages companies continuously improve their sustainability practices, adopt circular economy models, and invest in long-term sustainability strategies (Bocken et al., 2014). Institutional investors are increasingly integrating Environmental, Social, and Govern- ance criteria into their investment decisions. Investors following the Principles for Re- sponsible Investment prioritize companies with strong sustainability policies, pushing companies to align their business strategies with global environmental objectives (Eccles et al., 2020). As a result, many machinery manufacturers are enhancing their environ- mental, social and governance disclosure practices, implementing carbon reduction ini- tiatives, and aligning their operations with the United Nations Sustainable Development Goals. Cross-sector collaborations between Nordic machinery companies and technology pro- viders are driving sustainability innovation. By investing in digitalization, artificial 35 intelligence, and data analytics, companies can optimize resource use, reduce waste and support predictive maintenance strategies that contribute to energy efficiency improve- ments. The integration of Industry 4.0 technologies allows manufacturers to minimize emissions and process efficiency, leading to more sustainable production methods (Bel- trami et al., 2021) 2.5.3 Public Commitments, Sustainability Disclosures and Reporting Standards From a stakeholder-oriented perspective, public sustainability commitments and corpo- rate disclosures are not only tools for transparency but also a mechanism for building trust, legitimacy, and long-term stakeholder alignment. Stakeholder theory frames sus- tainability reporting as a strategic activity through which companies demonstrate re- sponsiveness to the expectations of investors, customers, employees, and regulators (Freeman et al., 2020; Kolk et al., 2017). Nordic machinery manufacturing companies are aligning more and more with world- wide reporting guidelines such the EU Green Taxonomy, Task Force on Climate-related Financial Disclosures, and Global Reporting Initiative (Kolk et al., 2017). These models give stakeholders organised instructions for revealing corporate sustainability perfor- mance, therefore enabling them to evaluate the environmental effect and risk manage- ment strategy of a corporation. Apart from official reporting, businesses improve open- ness by means of interactive environmental, social, and governance dashboards, sustain- ability conferences, and outside validation of environmental performance (Awa et al., 2024). The integration of sustainability metrics into financial disclosures further under- scores the increasing recognition of sustainability as a strategic business priority, rather than an outlying concern. Through strategic stakeholder engagement, industry collaborations, and transparent sustainability reporting, Nordic machinery manufacturers strengthen their resilience, 36 align with regulatory expectations, and reinforce their leadership in sustainable indus- trial practices. 2.6 Sustainability Goals and Strategy Formulation As sustainability transitions become a requirement, companies in the Nordic region are increasingly aligning their strategies with the United Nations Sustainable Development Goals (SDGs) (Figure 1). Specifically, SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate action) are central to guiding sustainable industrial practices. The alignment in sustainability goals, encom- passing renewable energy adoption, energy efficiency improvements, stakeholder en- gagement, and carbon footprint reduction, reflects the need for a comprehensive ap- proach to sustainability in industrial settings (Engert & Baumgartner, 2016). Figure 1: The 17 United Nations Sustainable Development Goals. Source: United Nations (2019). 37 SDG 9 focuses on promoting sustainable industrialization and innovation, which are im- portant for reducing the environmental impact on manufacturing. However, energy-re- lated CO2 emissions reached a record 36.8 billion metric tons in 2022, underscoring the urgent need for cleaner production needs (United Nations, 2023). While high-tech in- dustries are expanding in developed regions, least developed countries are falling behind in industrial growth, making it difficult to implement sustainable technologies at scale. SDG 12 highlights the disproportionate environmental footprint of high-income coun- tries, where material consumption per capita is 10 times higher than in low-income na- tions (United Nations, 2023). Fossil fuel subsidies stay a major barrier to sustainability, nearly doubling from $375 billion in 2020 to $732 billion in 2021. Corporate sustainability efforts have improved, with sustainability reporting tripling since 2016, but stronger pol- icies are needed to shift industrial production toward climate-friendly solutions (United Nations, 2023). SDG 13 focuses on reducing emissions and improving climate resilience, both important for sustainable manufacturing. The world is projected to exceed 1.5°C warming by 2050, necessitating 43% emissions reductions by 2030 and 60% by 2040 to mitigate severe climate impacts (United Nations, 2023). However, developing nations need $6 trillion in climate financing by 2030, far beyond the $803 billion currently available annually. Also, sea-level rise has doubled in the past decade, posing risks to industries reliant on coastal infrastructure (United Nations, 2023). To achieve sustainability objectives, companies often adopt either holistic or focused strategies. Holistic sustainability strategies integrate environmental, social, and govern- ance factors into corporate decision-making, securing a balanced approach to sustaina- bility. Targeting certain sustainability features, like supply chain carbon reductions or en- ergy efficiency improvements, focused sustainability strategies help businesses to get desired results more effectively (Baumgartner & Ebner, 2010). This section investigates 38 how multi-dimensional sustainability approaches, strategic commitment, and value chain involvement help to lower carbon footprint in Nordic equipment production. 2.6.1 The Role of Value Chain Engagement in Machinery Sustainability In machinery manufacturing, sustainability depends on interaction with the value chain as it promotes cooperation among manufacturers, suppliers, consumers, and legislators to lower environmental effects. Promotes circular economy ideas, improves efficiency gains, and reduces emissions across manufacturing and distribution systems by means of sustainable value chain management (Gualandris et al., 2014). This fits SDG 12, which emphasises responsible resource usage and sustainable manufacturing methods. Companies in the Nordic setting have progressively set sustainability requirements for procurement strategies by choosing low-carbon footprint suppliers and enforcing rigor- ous environmental performance standards. Furthermore, included into their procure- ment policies are life-cycle assessments including life-cycle evaluations of materials and components by Finnish and Swedish producers of machinery. Research shows that com- panies actively engaging suppliers in sustainability efforts can reduce indirect emissions (Scope 3 emissions) by up to 20%, demonstrating the importance of collaboration across the value chain (Beske & Seuring, 2014). Technological advancements allow real-time tracking of energy consumption and emis- sions across the value chain. Nordic companies using blockchain technology for trans- parent supply chain monitoring have improved traceability and accountability in their sustainability initiatives, making sure of compliance with regulatory frameworks such as European Union Green Deal and Fit for 55 policies (Jabbour et al., 2018). However, align- ing sustainability priorities across diverse stakeholders stays a challenge. While Nordic companies are leaders in sustainable procurement, suppliers in region with less stringent environmental regulations may not align with similar sustainability standards, necessita- tion capacity-building efforts and supplier incentives to improve sustainability perfor- mance across the entire supply chain (Glover et al., 2014). 39 2.6.2 Strategic Commitment to Holistic vs Focused Sustainability Goals The commitment to sustainability in Nordic machinery manufacturing varies based on whether companies adopt holistic or focused sustainability strategies. Holistic strategies, aligned with sustainable development goals, highlight the simultaneous pursuit of envi- ronmental, social, and governance aims, creating long-term resilience and sustainability leadership (Baumgartner & Rauter, 2016). These strategies integrate carbon reduction, circular economy initiatives, employee well-being, and corporate social responsibility ef- forts into business operations. Studies show that companies implementing holistic sus- tainability frameworks tend to outperform their competitors in long-term financial sta- bility and regulatory adaptability (Bansal & DesJardine, 2014). Holistic strategies require remarkable financial investment, organizational change, and sustainability governance mechanisms to align various aspects of sustainability with corporate operations (Engert et al., 2016). Conversely, focused sustainability strategies allow companies to direct resources to- wards specific sustainability challenges (Engert & Baumgartner, 2015). Several Danish and Finnish machinery manufacturers have, for example, successfully reduced emissions over 30% thought targeted investments in renewable energy technologies and process optimization (Wiesenthal et al., 2012). Such strategies align closely with SDG 13, which calls for urgent efforts to reduce emissions and mitigate climate change. Despite the benefits of focused strategies, they risk overlooking broader sustainability issues, such as equity, biodiversity loss, and resource depletion (Darnall et al., 2008). Companies adopting narrow sustainability objectives may find it challenging to adapt to appearing regulatory challenges, especially as governments introduce more comprehen- sive environmental, social and governance reporting requirements. Therefore, the deci- sion to pursue on factors such as regulatory pressures, industry expectations, and cor- porate sustainability maturity (Jenkins, 2008). 40 2.6.3 The Impact on Multi-Dimensional Sustainability Strategies on Carbon Reduc- tion Multi-dimensional sustainability strategies, which include environmental, economic, and social aspects of sustainability, offer a systematic approach to carbon footprint reduction in the machinery manufacturing sector. Research highlights that companies adopting multi-pronged sustainability strategies achieve larger carbon footprint reductions com- pared to companies focusing on single sustainability dimensions (Hussain et al., 2016). These strategies align with SDG 9 and SDG 13, as those promote innovation in sustaina- ble industrial practices and emphasize climate action. One of the most effective approaches to carbon footprint reduction in Nordic machinery manufacturing is the integration of energy efficiency improvements, renewable energy adoption, and circular economy principles (Korhonen et al., 2017). Studies indicate that companies implementing comprehensive sustainability programs, including green pro- curement, eco-design and closed-loop supply chains, experience remarkable reductions in emissions and energy use (Seuring & Müller, 2008). For example, Norwegian machin- ery manufacturing companies that have integrated closed-loop recycling systems for metal and electronic components report up to 40% reductions in material waste, con- tributing directly to SDG 12. The implementation of multi-dimensional sustainability strategies also comes with chal- lenges related to operational complexity and stakeholder alignment (Lozano, 2013). A key issue is interdepartmental coordination, where different business units operate with competing priorities, making it difficult to integrate sustainability into core business functions. Also, companies that are missing clear sustainability reporting mechanisms are most likely to struggle to measure and communicate the impact of their sustainabil- ity initiatives (Boons & Lüdeke-Freund, 2012). To address these challenges, companies have increasingly adopted third-party sustainability certifications and reporting frame- works, such as Science-Based Targets initiative and ISO 14001, ensuring larger transpar- ency in their sustainability efforts (Hertin et al., 2008). 41 By using a multi-dimensional approach to sustainability, Nordic machinery producers may significantly lower their carbon footprints and match world sustainability targets. Companies may attain long-term competitive advantages, improved regulatory compli- ance, and more stakeholder confidence by means of holistic value chain participation, strategic sustainability planning, and integrated carbon reduction projects (Hart & Dow- ell, 2010). The lessons from these businesses may be used as useful models for world- wide sustainability changes in manufacturing sectors as the Nordic area keeps leading to sustainable economic practices. 2.7 Literature-Based Insights for Further Analysis This literature has explored how sustainability is approached in machinery manufactur- ing, with a focus on the Nordic region. Due to its energy- and emissions-intensive oper- ations (IEA, 2021; Kannan et al., 2023), the industry is both a main driver of environmen- tal strain and a major actor in the economy. Growing legislative demands and stake- holder expectations have impacted how businesses handle climate-related issues, usu- ally by means of many strategic actions. High regulatory standards, encouraging policy frameworks, and a developed culture of environmental responsibility (OECD, 2022; Nor- dic Council of Ministers, 2022) shape these reactions in Nordic nations. The research emphasises how businesses are negotiating difficult trade-offs between operational needs, carbon reduction, and long-term sustainability pledges (Alayón et al., 2022). Some trends in how businesses approach to-wards sustainability objectives show them- selves throughout the studied issues. Key initiatives usually seem to include renewable energy integration, energy efficiency improvements, circular economy models, and dig- ital innovations (Jamwal et al., 2021; Geissdoerfer et al., 2016). These are joined with public sustainability pledges, policy alignment, and stakeholder involvement (freeman et al., 2018). Many businesses use multidimensional approaches spanning environmental, social, and financial concerns rather than viewing sustainability as a single goal. These 42 combinations show the necessity to accommodate several contexts, including institu- tional contexts, technical capacity, and supply chains architectures (Lozano, 2015). A recurring concept in the literature is that sustainability transitions are not linear or uniform. Companies rarely follow identical paths but apply different combinations of strategies based on their specific circumstances (Baumgartner & Ebner, 2010; Hussain et al., 2018). This has caused more people's curiosity in seeing sustainability from a config- urational standpoint. Recent research stresses the need of how various variables com- bine to provide desired results instead of separating separate elements (Fiss, 2011). Such an approach better captures the diversity of sustainability practices and recognizes that related results can be achieved through multiple pathways (Ragin, 2008). Taken this all together, the reviewed literature provides a broad yet detailed foundation for understanding sustainability in machinery manufacturing. It underlines the relevance of analysing not only which strategies are used, but how they are combined, adapted, and embedded within broader policy and market context. These insights support the move toward more nuanced methods of analysis that reflect the complexity of sustain- ability practice, and the form the basis for the following chapters, which examine these patterns. 43 3 Research methodology The research methodology chapter provides an exploration of the approach taken to in- vestigate the pathways to carbon footprint reduction in Nordic machinery manufactur- ing companies. This chapter outlines the research design, the selection of conditions and configurations, the data collection process, and the data analysis techniques employed in this study. By adopting Qualitative Comparative Analysis (QCA), this research aims to identify the combinations of conditions that lead to successful carbon footprint reduc- tion in the Nordic machinery manufacturing sector. 3.1 Methodological Approach The design of this study is an important aspect of answering the central research ques- tion: What configuration pathways of renewable energy adoption, alignment with sus- tainable development goals, stakeholder & policy engagement and energy efficiency im- provements lead to carbon footprint reduction in Nordic machinery manufacturing? the order to address this question, the research follows case-based research design, where the sustainability practices of 16 companies from Finland, Sweden, Denmark, and Nor- way are analysed. The objective is to examine how various conditions interact and com- bine to produce the outcome of interest: carbon footprint reduction. This research applies Qualitative Comparative Analysis (QCA), as the core methodologi- cal approach. QCA is particularly well-suited for small-N case-oriented research, where the goals are not to generalize statistically but to uncover causal configurations, different combinations of conditions that can lead to the same outcome. (Ragin, 1987; Schneider & Wagemann, 2012) Unlike conventional statistical methods that isolate the effect of individual variables, QCA enables the exploration of how multiple factors interact simul- taneously to influence outcomes (Rihoux & Ragin, 2009). This makes it a powerful tool for identifying causal complexity, such as situations where renewable energy adoption contributes to carbon footprint reduction only when paired with energy efficiency or stakeholder engagement (Schneider & Wagemann, 2012). 44 The selection of QCA is therefore justified by its ability to analyse combinatory effects and identify multiple pathways to carbon footprint reduction. With a sample of 16 com- panies, QCA enables the analysis of different sustainability strategies without requiring large-scale quantitative data. It is especially appropriate here, as the effectiveness of sustainability actions often depends not on anyone condition in isolation, but on how practices are configured together in specific organizational contexts. The company sample includes four companies from each of four selected Nordic coun- tries. These companies represent a cross-section of the machinery manufacturing sector, varying in size, geographic location, and sub-sector (e.g., heavy equipment, precision machinery, or components). All companies included are considered prominent and well- established in their respective national markets. This sampling approach ensures a di- versity of cases, allowing the study to capture a broader range of sustainability practices and to explore contextual variation in how companies pursue carbon reduction. To carry out the QCA, the analysis was conducted using the statistical software R. R pro- vides a flexible and transparent environment for processing both crisp-set and fuzzy-set QCA, enabling the construction of truth tables, calibration of data, and minimization of configurations. The use of R ensured that all analytical steps, from data transportation and condition scoring to the identification of sufficient and necessary configurations, were carried out systematically and reproducibly. It also allowed for the integration of numerical data from multiple sources and the handling of logical contradictions or lim- ited diversity, which are common in configurational analysis. The software’s capacity to display detailed outputs, including consistency and coverage scores, XY plots, and solu- tion tables, supported both the rigor and clarity of the results presented in this study. 45 Table 1 of the QCA methodology Stage Description Data collection Secondary data gathered from sustainability re- ports and annual reports and upright project da- tabase of 16 companies Calibration Data calibrated fuzzy scores based on company performance in each condition Truth table construction The truth table identifies all possible combina- tions of conditions and the outcome (carbon foot- print reduction Analysis Identifies which combinations of conditions are sufficient and necessary for carbon footprint re- duction Consistency and Coverage The analysis evaluates consistency (how consist- ently the combination of conditions leads to the outcome) and coverage (how well the combina- tion of conditions explains the outcome). 3.2 Configurational model For this study, four key conditions were identified as factors influencing the outcome condition carbon footprint reduction in Nordic machinery manufacturing companies. These conditions were selected based on existing literature on sustainability practices and industry reports that highlighted drivers of environmental performance in manufac- turing industries. The conditions explored are as follows: The first condition, Renewable Energy Technologies (RET), examines the extent to which companies have adopted renewable energy sources such as wind, solar, and bioenergy. The transition to renewable energy is central to reducing carbon emissions, especially in energy-intensive industries like machinery manufacturing, where reliance on fossil fuels has traditionally been high. Companies that adopt renewable energy can reduce their 46 carbon footprint, and this condition measures the percentage of energy used by the company that comes from renewable sources. The second condition, Stakeholder & Policy Engagement (SPE), assesses the company's degree of participation in policy advocacy for sustainability and with outside stakehold- ers like government, NGOs, and industry groups. Active participation in these fields indi- cates a company's congruence with worldwide sustainability models and its support of group projects aimed at mitigating climate change. Companies that are more engaged in such initiatives are typically more proactive in adoption ambitious sustainability prac- tices. In this study, SPE values were collected from the Upright Project’s net impact model, specifically summing the impact scores for ‘Societal Infrastructure’ and ‘Societal stability’. These two dimensions reflects how a company supports societal systems and contributes stability through its operations and external collaborations. Higher summed scores indicate that companies are more engaged in forming and promoting sustainabil- ity discourse, so they get better values in the QCA calibration. The third condition, Alignment with Sustainable Development Goals (SDGA), measures the extent to which companies align their business strategies with the United Nations Sustainable Development Goals (SDGs) based on a percentage sum of the most aligned goals. Comprising environmental, social, and economic elements, the SDGs offer a com- plete sustainability framework. Strong linkage to multiple SDGs helps companies to apply sustainability strategies addressing carbon emissions with more general targets like so- cial responsibility, economic resilience, and environmental conservation. As the Up-right Project reports, the rating for this condition is based on the total percentage alignment with the most important SDGs. Companies with higher summed alignment percentages to key sustainability goals—such as SDG 13 (Climate Action), SDG 9 (Industry, Innovation, and Infra-structure), and SDG 12 (Responsible Consumption and Production)—get higher scores; companies with lower overall alignment percentage score lower. 47 The fourth condition, Energy Efficiency Improvements (EEI), focuses on the efforts made by companies to improve energy efficiency across their operations Energy efficiency is one of the most straightforward ways to reduce carbon emissions, since it includes using less energy to create the same result, which is a crucial lever for lowering environmental impact. Companies that implement energy-efficient technologies, optimize production processes, and reduce energy consumption contribute directly to carbon footprint re- duction. The scoring for this condition is based on the percentage change in energy con- sumption per unit of revenue between 2019 and 2023. A negative percentage indicates improvement, as the company is using less energy per euro of revenue, while a positive EEI value means that energy consumption has increased relative to output – reflecting a decline in energy efficiency. The outcome condition, carbon footprint reduction, is measured as the percentage re- duction in scope 1 and scope 2 (market-based) emissions per unit of revenue (€ billion) from 2019 to 2023. This metric captures both operational improvements and structural changes. The scoring of this condition is based on the level of emissions reduction achieved relative to revenue, where higher reduction corresponds a higher score. 3.3 Data collection The data collection process for this research relied entirely on numeric secondary data, drawn from publicly available sources. The core of the dataset was built using the sus- tainability and annual reports published by the selected companies for the years 2019 and 2023. These two years were chosen to allow a five-year comparison, offering a meaningful timeframe to observe measurable changes in sustainability performance. 48 The reports provided standardized and detailed figures on key environmental metrics such as total energy consumption, scope 1 and 2 (market-based) greenhouse gas emis- sions, renewable energy usage and financial data including revenue. These indicators formed the basis for calculating each company’s energy efficiency improvement and car- bon footprint reduction over the period. Because this study focuses on identifying pat- terns through QCA, the availability of consistent numeric values was essential to ensure comparability across cases and accuracy in the calibration process. In addition to the company reports, this study used data from the Upright Project’s Net Impact Model, which served as valuable external data source for standardized sustaina- bility metrics. The Upright Project provides scores for various impact areas, including the company’s connection to sustainable development goals. The use of Upright Project data ensured that all conditions, even those traditionally evaluated qualitatively or doesn’t have similar reporting standards in annual/sustainability reports, were expressed in a numeric format and thus suitable for calibration into QCA. 49 4 Results This chapter presents the empirical results of the Qualitative Comparative Analysis (QCA) conducted to understand how different sustainability strategies contribute to carbon footprint reduction performance among Nordic machinery manufacturing companies. The analysis is based on a sample of sixteen companies from Finland, Sweden, Norway, and Denmark, representing a cross-section of the Nordic machinery manufacturing sec- tor. Using Qualitative Comparative Analysis, the chapter explores both necessary and sufficient conditions, with attention to the presence and absence of specific strategy combinations in cases of high and low emissions reduction. 4.1 Overview of the Data The dataset consists of four key conditions: Energy efficiency improvements (EEI), Stake- holder and policy engagement (SPE), Alignment with sustainable development goals (SDGA), and Adoption of renewable energy technologies (RET). These conditions were selected based on them represent the main strategic areas in which manufacturing com- panies may reduce their environmental impact and promote long-term sustainability. The SDGA condition captures the extent to which companies align their operations with global sustainability frameworks. A higher SDGA score reflects a broader commitment to sustainability, encompassing environmental, social, and economic dimensions. As illus- trated in Figure 2, there is a notable variation among companies in their sustainable de- velopment goals alignment. Vestas leads with score of 245, demonstrating strong com- mitment to multiple SDGs, followed by Danfoss (111) and Wärtsilä (87). On the lower end of the spectrum, Epiroc (36), Volvo (33), and Sandvik (30) display more limited SDG engagement, suggesting narrowed focus on sustainability initiatives. Similarly, Nilfisk (38) and Metso (37) show only moderate alignment 50 Figure 2. Bar chart for SDGA condition data The RET condition data reveals significant differences in the extent to which Nordic ma- chinery manufacturing companies have integrated renewable energy into their opera- tions. As shown as in figure 3, Vestas and Kone exhibit the highest levels of renewable energy adoption, surpassing 90%, indicating a strong commitment to sustainability and decarbonization efforts. These companies have likely invested heavily in renewable en- ergy procurement or on-site generation to minimize their reliance on fossil fuels. In con- trast, companies such as Nilfisk and Valmet report considerably lower adoption rates, with Nilfisk displaying the lowest renewable energy share at just over 6%. The distribution of RET adoption also reflects broader industry trends and strategic dif- ferences in sustainability approaches. Companies with moderate adoption levels, such as Atlas Cocpo, Wärtsilä and Yara International, indicate a partial shift towards renewa- bles but still rely on conventional energy sources to some extent. The findings highlight that while renewable energy adoption is important factor in reducing carbon footprints, its implementation varies significantly among companies, emphasizing the need for tar- geted policy support and internal capability building. 51 Figure 3: Bar chart for RET condition data The EEI data illustrates how effectively companies have reduced their energy consump- tion relative to revenue over the period from 2019 to 2023. As shown in Figure 4, nearly all companies reported negative EEI values, indicating improvement in energy efficiency. The more negative the value, the greater the reduction in energy used per unit of output. Metso and Kongsberg stand out with the most substantial improvements, showing re- ductions of over 65%, suggesting strong efforts in optimizing energy use. Other compa- nies, such as Sandvik, FLSmidth, and Yara international, also show notable improvements, reinforcing the importance of energy efficiency as a key sustainability measure. In contrast, Aker Solutions is the only company with positive EEI value, indicati