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When black becomes green: Circle K wants to also be sustainable

Danish companies have sustainability high on the agenda – regardless of the industry they come from. One of the companies that is in the process of turning its business onto the green path is the global gas station chain Circle K. They want to be part of the future's solutions – instead of part of the problem.

Tekst af Marie Louise Plenborg / Fotograf: Rikke Mønster

The sustainability agenda has gained traction in Danish business life: More and more Danish companies place sustainability at the top of the agenda and set strategic goals for how they want to create positive change. This is what Steen Vallentin, associate professor at CBS and academic co-director at CBS Sustainability Centre, a centre for sustainable research at CBS, tells us:

"Sustainable development has been under way for the last 20 years in the Danish business community. In the past, there was a tendency for companies not to set the bar too high for fear of not being able to meet their goals, they now present ambitious goals. Now, they present ambitious goals, join the debate and want to be part of the solution to the world's challenges. The genie is out of the bottle," says Steen Vallentin and elaborates that this is not least due to the fact that there is extreme public attention in the area:

"We have climate activists like Greta Thunberg who attract attention. A climate act is being debated, which will oblige companies to make changes. We have the The Global Goals. And then our children are taught sustainability and climate at school. It's hard to ignore. Even if you are a company.”

According to Steen Vallentin, sustainable business thinking is not reserved for certain industries, and there are no limits to who lets sustainability and climate stand as a headline in the strategy:

"We see it in companies such as Novo Nordisk, Carlsberg and Mærsk, but also in e.g. the agricultural sector and among companies such as Danish Crown, which have not previously been associated with sustainability or climate considerations. But you only succeed if you actually put action behind the words.”

One of the companies that has not traditionally been associated with sustainability, but which has now taken sustainability into its strategic objectives, is the global convenience and fuel supplier Circle K, which also has activities in Denmark and accounts for a fifth of Denmark's total oil consumption for transport, industry and heating. The company has an ambition to become part of the solution to the world's challenges in climate and sustainability – instead of being part of the problem.

"Transport has had and has an enormous importance for modern society, because it is what connects people. But the transport industry is also part of the problem, as it accounts for 30 percent of total CO2 emissions. Therefore, we have an obligation to take responsibility and run our business in a more sustainable direction. We think so ourselves, and so do our customers," says Mette Uglebjerg, CEO of Circle K Denmark.

Sustainable fuel on tap

The work with sustainability has an impact on several layers of Circle K's business. Not least in relation to the fuel that flows out of the taps at petrol stations. Circle K will help to introduce a new type of fuel in Denmark specifically targeted at heavy transport, i.e. means of transport such as trucks, planes and ships. This means saying goodbye to the black petrol and diesel, which have otherwise formed the foundation of the company's business.

"We strongly believe that electric cars will be a large part of the future of private transport. But a very large part of the CO2 emission comes from the heavy transport, which many years into the future will be dependent on liquid fuels, because the battery technology that will be used for electric cars cannot power the heavy
means of transport over long distances," says Mette Uglebjerg and continues:

"In order to solve the challenges of heavy transport, we believe that electrofuels, which are a form of liquid electricity, are an important part of the solution. It arises from the combination of CO2 and hydrogen. The good thing about Electrofuels is that with a few adjustments you can use it in the existing car fleet, and then it is CO2 neutral. And we would like that fuel type to be widespread throughout the industry. The technology is there, now we are working to get politicians and society on board.”

However, Circle K cannot develop the fuel type. But the company can help pave the way for it and offer it to customers, says Mette Uglebjerg. Therefore, they have entered into a partnership with, among others, an energy company in Hobro, which has taken the first steps to produce electrofuels.

According to Steen Vallentin, collaboration is essential – because Circle K cannot cope with the transition alone:

"It is clear that the innovation of sustainable fuel must take place elsewhere than at Circle K. And they will also only be successful in a sustainable context if they phase in new forms of fuel that all businesses in the market can sell. Because otherwise it doesn't solve the problems. And it must be fuel that many consumers can use," says Steen Vallentin.

When the perception needs to change
The work to become more sustainable and to be recognised as a legitimate and leading player within the energy agenda is not without challenges, acknowledges Mette Uglebjerg.

"There is no doubt that customers associate us with the gas station of the past. And we still have a long way to go to change that perception before we can be associated with a company that is at the forefront when it comes to developing future energy solutions. But we are working hard on it - among other things by training selected salespeople who go into the business market, so that they can be experts in tomorrow's fuel and engage in that dialogue with our business customers," she says.

Steen Vallentin understands if Circle K experiences extra challenges in moving onto the green path:

"For many, brown or black energy is the very essence of the problem. So when Circle K says that they would like to be a leading player in developing energy solutions, one may well be afraid that it is like letting the wolf herd sheep. But the fact is that we are dependent on fuel, and therefore you can't just ask them to turn off the taps. It's more about thinking that something new needs to be phased in," says Steen Vallentin.

"IT REQUIRES AN ENORMOUS CHANGE IN THE ENTIRE ORGANIZATION WHEN YOU WANT TO MAKE A COMPREHENSIVE CHANGE IN A MORE SUSTAINABLE DIRECTION"

METTE UGLEBJERG, CEO I CIRCLE K DANMARK

Adjustment is enormous - the payoff is rewarding

Where fuel is one leg of Circle K's core business, convenience is the other. And Circle K is also working to become more sustainable in that part of the business.

"We fully agree that we as an industry are not known for serving fresh and sustainable food. But we are working to become a sustainable business all round, and here we also want to pull convenience in a more sustainable direction. This means, among other things, that we serve Danish meat in our burgers, that we have fair trade products, and right down to having sustainable lids on our coffee cups," says Mette Uglebjerg.

She believes that Circle K is on the right track and that their business can survive the shift towards a greener future. It requires hard work and that all parts of the organisation support the vision and the journey, says Mette Uglebjerg:

"After all, it requires a huge change in the entire organisation when you want to make a sweeping change in a more sustainable direction. Both at a strategic level and down to the day-to-day operations in the stores. Everyone must be on the journey if this is to succeed. We have an overall strategic plan, and here we are continuously working to get sustainability more firmly rooted in it.”

Mette Uglebjerg does not think that there is a clear answer to how long it takes to convert to being a green company.

"We must constantly develop and work in a more sustainable direction. And some efforts take longer to achieve than others. But now and here, there is no doubt that it means a lot to the company and to us who work in it, that we help to influence the sustainability agenda in our industry. I am personally very proud of that," she says

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When black becomes green: Circle K wants to also be sustainable

"IT REQUIRES AN ENORMOUS CHANGE IN THE ENTIRE ORGANIZATION WHEN YOU WANT TO MAKE A COMPREHENSIVE CHANGE IN A MORE SUSTAINABLE DIRECTION"

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