Megatrends are global forces of change. They are challenges for us on the one hand, but on the other they offer new business opportunities. Neste, with its chosen strategy, can contribute to the development of the world around us and can do its part to create a more environmentally sound future. Megatrends are e.g.
- Climate change
The expected increase in world population to 8–10.5 billion by 2050, combined with significant economic growth in emerging economies will result in substantially increasing energy consumption. As standards of living increase, people want to travel and consume more. To be able to respond to the growing energy demand, we need to use natural resources more efficiently and increase the use of renewable energy, such as solar and biofuels. Increasing energy demand will pose challenges also to security of supply as resources are scattered around the globe.
Global warming caused by growing greenhouse gas emissions is gaining even more importance. Societies will need to adopt mutually agreed goals to limit the effects of climate change to sustainable levels. Energy use must be evolved accordingly. As traffic is one of the largest sources of greenhouse gas emissions, substituting fossil fuels with renewable fuels is an efficient way to reduce these emissions. Combating climate change has also become a policy priority and several countries, including EU member states, the United States, and China have committed themselves to targets related to reducing greenhouse gas emissions.
There is almost unlimited amount of information available. People are increasingly aware of environmental and other sustainability aspects related to their consumption and they demand sustainable alternatives for their daily products and services. Customers increasingly demand sustainable value chains from the raw material production to end use. In developed countries, consuming has changed from purchasing necessary goods to acquiring a certain lifestyle, thus creating your identity.
Technological development has resulted in more efficient operations in various fields of life and business. For example in transportation, modern engine technology enables people and goods to move with less energy and emissions, all around the world. Developments in process technology enable using larger scale of innovative energy sources, for example waste and residues that are used as raw material for renewable fuels.
Digitalization challenges companies to adjust their business and operating models by blurring the boundary between digital and physical activities. Developments in the area of digitalization offer companies opportunities to restructure their operations, add integration to supply chains, and engage with customers to offer them even better value. Digitalization has also shaped consumer behavior; people want to have choices in services and goods regardless of time and place. Companies that are able to meet the new digitalized customer needs are well-positioned to beat their competitors and even create new businesses.