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Essem Design

Essem Design designs and manufactures different hallway interior products, such as hat racks, shoe racks, and hooks. The company was part of a foundry founded by Gunnar Bolin when he designed the first hat rack, Nostalgi, in 1937, using melted-down scrap aluminum. Since then, the company has developed several classical designs, such as the Classic and Nostalgi series, that are still the best-selling series today. 

In 2002, the quality manager, Sten-Roger Bladh, took over the reins and acquired the product rights through a spin-off from the foundry business. Sten-Roger retained the traditional artisan production in Anderstorp, but he also aspired to develop new products under the name of Essem Design with consistent product functionality and durability. At approximately the same time, his daughter, Frida, also started helping with the business, such as assembling “Dekorativ” hangers and cleaning the office during her summer holidays.

When Frida finished her studies in 2013, Sten-Roger invited her to work on a new project to help the firm obtain ISO certification on environmental management and quality control because he wanted to develop formal documentation of their quality control. Meanwhile, customers also started requiring more sustainability elements from their products. Since then, the business has experienced a major sustainability transition.

The transition was further strengthened after Sten-Roger’s son and Frida’s brother, Robert, joined the family business in 2015 and adopted sales and marketing functions. When both children started working in the same family firm, Sten-Roger started the succession process by gradually transferring shares to them. In 2020, Sten-Roger transferred his CEO position to Robert, while Frida held the CFO position. Today, their parents still remain on the board, along with a nonfamily chairperson and another non-family director.

Country

Sweden

Greening processes

Green marketing/ labels

Greening input

Renewable energy, Sustainable raw materials

Greening outputs

Offering green products

Company size headcount

>50

Company size turnover

< Around 10m

Interviewed

Incumbent (senior generation), Sibling

Industry

Manufacturing

Sustainability transition

Since its founding, the company has already incorporated the concept of sustainability in developing its first product. Robert described:

“From history, we have always had this kind of product. Our most common selling product is from 1937, and the product is made of recycled aluminum and wood. It is very easy to take apart and change spare parts. It is in our DNA.” 

The family continues this sustainability tradition by taking more initiatives that customers demand. In addition, governments such as the European Union (EU) have provided additional financial support to companies following the European Green Deal. Importantly, family members have a concerted dedication to developing new sustainability practices. Specifically, Frida, Robert, and Magdalena, the nonfamily production manager, make the annual plan together and propose it to the board. Once the board approves, their father fully supports the implementation, focusing on the products, local communities, and energy.

Product sustainability and transparency

The family has been careful in selecting the right materials since the start of their production process. In addition, certification requires them to track the materials each product contains and keep such information transparent. They have obtained not only ISO certification but also national certification, such as Byggvarubedömningen, Environmental Product Declarations, and RISE tests for non-toxic and sustainable building materials in Sweden. These certifications enable them to better show their sustainable products to their customers.

Moreover, the family has innovated product design so that they can pack products compactly without leaving much empty space. In addition, they have tried to reduce their environmental footprint by creating new products from waste and selling spare parts. By doing so, the family can improve the effectiveness of transportation and waste management. 

The family has faced some challenges while making their products and production more sustainable. One main challenge lies in the variance of certifications. Specifically, different industries and customers have their preferred certification systems that may not follow the same tracking procedures. For instance, Byggvarubedömningen is mainly for the construction industry, while the furniture industry prefers another certification system, Möbelfakta. The family currently prioritizes construction certification since their largest customers are in that industry.

Another main challenge is the heavy administrative workload, such as collecting relevant data to accurately calculate Scope 1–3 emission and material contents of each product. As the family firm has limited resources available, collecting various types of data from different suppliers tends to be both costly and time-consuming. 

Close collaboration with the local community

The family has emphasized collaboration with the local community where the firm is located. Such collaboration entails having local designers design their products, working with local suppliers using local resources, and relying on local transportation to deliver the products. Such collaboration enables the family to reduce the carbon footprint of their production by relying less on imported materials, to better develop the local community by using local resources, and to build a strong Swedish brand that can benefit their image on the market.

Increasingly reliance on renewable energy

Another main sustainability practice focuses on transforming the family firm’s energy portfolio. Since 2013, the family has updated the heating system at the site by replacing oil pan with geothermal heating and buying only green electricity. In addition, in 2018, one-third of their electricity already came from solar energy. In 2024, after building a larger factory with additional solar panels, all their electricity now comes from solar energy. 

Learning points and actions to consider

Looking back at these experiences, the family identifies some key learnings. The first important thing is to pay attention to what the customers demand and whether the family considers it the right thing to do. If there is a demand and the idea is in line with the family’s value, the family suggests direct action on the idea, including collecting related data and implementing the project early rather than implementing many postponed projects all in once in a short period of time, which would otherwise be overwhelming. They highlight that sustainability projects take time to have impacts. As Frida described: 

“We are not environmental heroes, but we try to make an impact where we can. The most important thing is to take action and go forward in small steps towards your sustainability goals.”

Another important learning is to have functional teams where family members of different generations and nonfamily members can effectively collaborate. For instance, involving both Frida and Robert in the firm gives their father confidence that they can share tasks and steer the business in the right direction. In addition, Robert highlighted the value of engaging nonfamily members in making sustainability decisions because they “have experience outside the family and can also get a better talking and discussions in the board.” Nonfamily directors’, managers’, and employees’ input helps ensure the connection between the planned project and the real needs of the market.

Frida and Robert are now fully in charge of the family business. Even though their sustainability practices have worked well thus far, new activities require resources, including financial investment, field knowledge, and human resources, that the family may not necessarily have. Therefore, they wonder how they could develop more sustainable products based on their existing product portfolio and network with local business partners. Another question lies in their communication. Many of their sustainability practices, such as product design, factory infrastructure, and transportation, remain in the background, but customers may not be fully aware of their sustainability efforts. Hence, they wonder how they could better communicate about their sustainability practices, such as the scope of greenhouse gas emissions associated with their products.

Reflections

  • How can they develop more sustainable products based on their existing product portfolio and network of local business partners?
  • How can they better communicate sustainability practices, such as the extent of greenhouse gas emissions associated with their products?