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About doing business in the region 2019 Photo: Anders Wester Anders Photo: Welcome to Gothenburg, , billion one of the most rapidly expanding euros will be invested by 2035 regions in Europe and a hotspot for 100 innovation and entrepreneurship

As a hub for Swedish research and development, the Gothenburg region boasts TWO EXAMPLES OF INVESTMENTS BEING MADE a wealth of innovation clusters and world-renowned academic institutions. In recent Geely Innovation Centre years, locally-based companies like , the Group, AstraZeneca, Saab, Chinese car maker Geely is developing a new innovation centre of over 104,000 SKF and have invested heavily in developing new products and services. sqm in central Gothenburg. The new facility will gather staff working under the This, combined with the successful collaborations between industry, the public Geely umbrella and offer workspaces to other companies and the public. sector and academia, has helped make Gothenburg leading within for example areas of automotive, life science, logistics, ICT and urban development. GoCo Health Innovation City The life science and health cluster in Mölndal is expanding. A whole new neighbourhood The Gothenburg region is also in the middle of a historic period of urban develop- with space for 350 companies and 7,000 people is being developed and the vision ment and is making space for 105,000 new homes and 120,000 new jobs. With is an arena characterised by co-creation. construction plans worth EUR 100 billion, Gothenburg offers one of Europe's biggest centrally located urban investment opportunities. In short, the Gothenburg region’s business environment is flourishing – as you will notice in the following pages. And with the developments taking place and the lifestyle it offers, the region is attracting people, companies and investors like never before. Come join us and let’s shape the future together!

BUSINESS REGION GÖTEBORG is responsible for business development in the City of Gothenburg and represents thirteen municipalities in the region.

2 3 Contents

A REGION MOVING FORWARD Page 5 – 11 Gothenburg's labour market. 1. International and national competitiveness.

RICH EXCHANGE WITH THE WORLD Page 12–16 Import and export. Foreign-owned companies. 2. International visitors. 1. GROWTH AND LABOUR MARKET Page 17–21 Emerging industries. Largest employment growth. 3. Employment rate.

BUSINESS Page 22–27 Largest employers. Strong clusters. 4. Corporate climate and entrepreneurship. A region POPULATION, LIFESTYLE AND EDUCATION Page 28–30 moving forward Demographics. Level of education. Seats of learning. 5. Gothenburg is an attractive region which is experiencing growth through a number of exciting developments. This transformation is illustrated in both national and COSTS AND TAXES Page 31– 34 international comparisons. 6. Salary and rent levels. Tax regulations. Tax reductions.

CLIMATE, ENVIRONMENT AND SUSTAINABLE DEVELOPMENT Page 35 –38 7. Waste management. Air quality. Green Gothenburg.

4 Photo: Per Pixel Petersson / Göteborg & Co 5 A REGION MOVING FORWARD A REGION MOVING FORWARD

Growth in Gothenburg's Growth strategy – to strengthen labour market region since central Gothenburg and expand the year 2000 the labour market

The Gothenburg region is growing more rapidly than anyone could have predicted. In addition, major investments are being made in infrastructure and urban development, which in turn has increased commuters and new residents rapidly. By around 2030, it is likely that Trollhättan and Borås will be a part of Gothenburg's labour market. For this reason, local politicians in the Gothenburg region have adopted a new, offensive 48,000 Trollhättan region more establishments 75% growth strategy (Sustainable Growth). real exports growth

80% Borås region 81% real total wage sum growth real increase in GRP

Central Gothenburg Gothenburg region +45,000 +10,000 residents 2012–2030 residents per year Gothenburg’s Gothenburg’s labour market today labour market 2030 + 60,000 +120,000 55% jobs 2012–2030 jobs 2016–2035 1.2 1.8 increase in productivity 205,000 million residents million residents new residents

A local labour market is a division of Sweden based on commuting patterns. When commuting between municipalities reaches the extent that these municipalities can be seen to be dependent on one another, they form a labour market region.

THE FOLLOWING 18 MUNICIPALITIES ARE INCLUDED IN GOTHENBURG'S LABOUR MARKET: 147more jobs , 000 Ale, Alingsås, , , Gothenburg, Härryda, , Kungälv, , , Mölndal, , Partille, , Tjörn, , Vårgårda and Öckerö.

6 7 ww

A REGION MOVING FORWARD A REGION MOVING FORWARD

The Gothenburg region – a leading Innovations* research region which is highly REGIONAL INNOVATION SCOREBOARD 2017 competitive on the international stage INNOVATION LEADER AMONG 220 REGIONS Assesses the innovation performance of European regions. GLOBAL RANKING: R&D SHARE OF GDP is named in the report as a European innovation leader. Among other things, the region achieves distinctions for: 1, 2 … … 195, 196 • Increased employment within knowledge- 3 based professions Connectivity** • Process and product innovations within SME EUROPEAN CITIES AND REGIONS • Highly educated population • Export of high-technology goods OF THE FUTURE 2017/2018 Source: European Commission 2 OF 55 MID-SIZED CITIES

Ranks cities and regions in Europe SwedenOF SWEDEN'S TOTAL PRIVATE R&D INVESTMENTS based on their IT and logistics infrastructure. IN EACH SECTOR RESPECTIVELY OUR LEADING Among mid-sized European cities, INDUSTRIES ACCOUNT FOR: Gothenburg is ranked second in terms of Connectivity. Growth potential*

Automotive 61% Source: fDi PERFORMANCE INDEX 2018 Chemicals, hygiene products and pharmaceuticals 42% 31TH OF 182 REGIONS Knowledge-intensive business services 27% Assesses large European city regions with the best future growth potential. Competitiveness* The Gothenburg region scores highly in: • Economic growth of Sweden's total R&D investments within the EUROPE 2020 • Employment

private sector are made in the Gothenburg region* REGIONAL INDEX 2017 Source: BAK Basel 32% 27TH OUT OF 263 REGIONS * Refers to companies' R&D investments in Västra Götaland County. Source: Statistics Sweden Assesses how close EU regions are to their target strategies for achieving improved competitiveness. The Gothenburg region has achieved all of its established EU targets and is praised for, among other things: A NATIONAL CENTRE FOR Competence** • Employment AI-RELATED RESEARCH • Higher education level GLOBAL CITIES TALENT AND INNOVATION • R&D COMPETITIVENESS INDEX 2019 AI Innovation of Sweden was established in Source: European Commission 33RD OF 114 CITIES 2019 at Lindholmen, Gothenburg. The centre provides resources, knowledge, data and The index ranks cities on their capacity to capabilities that horizontally are of value attract, develop and retain competence. to partners and the Swedish AI ecosystem. Gothenburg's ranking is motivated by: The focus is on algorithms for applied • High quality of life problems and with possibilities to co-locate • Well-functioning ICT infrastructure in order to share ideas, data and resources • Well-educated population across a broad scope of application and * Indicators refer to West Sweden. Source: INSEAD and Adecco research areas in the private and public ** Indicators refer to City of Gothenburg.

Photo: Bengt Kjellin / BRG sectors as well as academia.

8 9 A REGION MOVING FORWARD A REGION MOVING FORWARD

A strong growth engine Sweden's leading logistics hub

Swedish regions show strong economic growth among selected benchmark That ’s largest port is located here is just one of the reasons the Gothenburg regions in Europe. Top of the list is the Wolfsburg region, with an annual growth region is such a prominent logistics hub. Some of the reasons the region is ranked as rate of just over 8 per cent. In the Gothenburg region the economic growth Sweden’s number one logistics location are: over the period was just above 3 per cent. • Direct ocean freight services to 130 destinations • An effective rail freight system to other parts of Sweden and ANNUAL ECONOMIC GROWTH IN BENCHMARKING REGIONS 2011–2017 * Refers to West Sweden. • New large logistics facilities Source: Eurostat 99 • Short distances between the import dock to warehouses result in low logistics costs 88 • Access to leading competence within logistics 77 • Advanced and rapidly growing transport infrastructure with an environmental focus 6 6 Wolfsburg region • National centre for R&D within sustainable logistics solutions and transportation Munich region 5 Source: Intelligent Logistik

5 region region Stuttgart 44 Hamburg region Gothenburg region* Gothenburg region Frankfurt region EU28 region Sheffield region 3 Vienna region

3 Liverpool region region Lyon region 2

2 regionLille regionMilan Navarra region

11 region Turin Valencia region Valencia % 00

Growth in Swedish metropolitan regions The metropolitan regions* drive growth in Sweden. Among the metropolitan regions, Gothenburg’s labour market exhibits the strongest growth in employment. The robust growth in jobs in Gothenburg’s labour market is largely driven by the high value added generated by the region’s goods and services. Gothenburg’s labour market also sees the strongest growth in total wage sum. The most significant growth in value added (gross regional product) is seen in the labour markets of Gothenburg and Stockholm. The three metropolitan regions are clearly growing better than Sweden as a whole. Photo: of Port Photo: * Refers to statistics for labour market regions. Source: Statistics Sweden

Source: Statistics Sweden SWEDEN'S TOP 10 NORDIC COMPARISON OF CARGO Gothenburg region LOGISTICS REGIONS 2019 HANDLED IN 2017** Stockholm region VOLUME OF GOODS, 1,000 Malmö region RANKING* REGION RANKING / CITY / (COUNTRY) TONNES Sweden 3.8 % 1 (1) Gothenburg region 1 Gothenburg (Sweden) 40,518 3.3 % 3.8 % 2 (1) Örebro region 2 Helsinki () 14,226 3.2 % 3 (4) region 3 () 8,399 3.1 % 3.1 % 4 (3) Östgöta region 4 Fredericia (Denmark) 7, 294 1.6 % 2.8 % 2.7 % 5 (6) Jönköping region 5 Oslo (Norway) 5,878 1.5 % 6 (6) region 6 Stockholm (Sweden) 5,079 1.4 % Source: Eurostat 7 (5) Stockholm North 1.1 % 8 (10) Malmö region * Figure in parentheses indicates ranking in Logistikläget 2018. Employment Total wage sum Gross regional product 9 (8) Stockholm South ** Statistics refer solely to full service ports. Annual growth in number Annual real growth in total Annual real growth in gross regional 10 (9) region of employees 2000–2017 wage sum 2000–2018 product 2000–2016 Source: Intelligent Logistik

10 11 RICH EXCHANGE WITH THE WORLD

Exports to the region’s KEY EXPORT DESTINATIONS 2018 largest trading partners VALUE OF EXPORTED RANK COUNTRY GOODS, MSEK Despite the record development seen in 2017, trade and industry performed even better in 2018. 1 Norway 34,285 The real value of the Gothenburg region’s goods 2 USA 27, 359 exports increased by a full 6 per cent between 3 26,071 2017 and 2018. Norway is an important export market for businesses in the Gothenburg region, 4 21,993 followed by the USA. Other key destinations are 5 UK 17,686 Germany, China and the UK. 6 France 12,159

Source: Statistics Sweden 7 Denmark 11,898

8 Finland 11,440

9 Netherlands 8,854

10 Japan 5,401 The region's 4,300 Västra Götaland County total 292,407 export companies constitute approximately two thirds Gothenburg region total 238,286 of Västra Götaland County's total export companies and Gothenburg region's share of Swedish exports 17 % 2. just over 9 per cent of all Sweden's export companies Imports of goods from the KEY IMPORT ORIGINS 2018 region’s key trading partners VALUE OF IMPORTED RANK COUNTRY GOODS, MSEK In contrast to the Gothenburg region’s goods exports, goods imports into the region grew 1 Germany 45,158 more slowly between 2017 and 2018. Real 2 Norway 21,574

growth for the Gothenburg region was 3 per cent, 3 Netherlands 17,661 while for Sweden as a whole growth was just 4 UK 16,627 over 10 per cent. Germany is the largest country of origin in terms of import volumes, followed 5 Denmark 15,436 by Norway. Other key countries of origin for 6 China 15,370 imports are the Netherlands, the UK, Denmark 7 France 9,728 and China. Rich exchange 8 USA 5,952 Source: Statistics Sweden 9 Japan 5,670

10 Finland 5,095 with the world Västra Götaland County total 259,701 Gothenburg region total 205,618

Shipping and international trade have been integral to the Gothenburg region's share of Swedish imports 15 % Gothenburg region for almost 400 years. Of course, the traded content has changed somewhat over the years, but the flow of goods continues to play a critical role for the development and The composition of EXPORTS AND IMPORTS OF GOODS, imports and exports BY PRODUCT GROUP 2018 growth of the region’s companies. Exports have risen sharply The majority of the Gothenburg region’s Motor vehicles and other transport equipment exported goods comprise vehicles and other in recent years and every fifth employee in the Gothenburg Other machines and manufactured goods means of transport – an industry which is also Chemicals, pharmaceuticals, rubber and plastics region works in a foreign-owned company. At the same time, the largest in terms of import value. The product new records are being set for travelling to and from the region. groups ‘Other machines and manufactured Computers, electronics and optical products Value of exported goods’, ‘Chemical, pharmaceuticals, rubber and Coke and petroleum goods, MSEK Value of imported plastics’, and ‘Computers, electronics and optical Wood, paper and printing services goods, MSEK Unless otherwise specified, the statistics in this and the chapters to come refer products’ account for substantial shares of the Basic metals and fabricated metal products goods exchanged with trading partners. ‘Other to the 13 member municipalities in the Gothenburg region’s municipal association: Textiles and clothes machines and manufactured goods’ accounted Ale, Alingsås, Göteborg, Härryda, Kungsbacka, Kungälv, Lerum, Lilla Edet, Mölndal, Products connected to services for the largest percentage increase in goods Partille, Stenungsund, Tjörn and Öckerö. Food, beverages and tobacco exports between 2017 and 2018. In absolute ! terms, goods exports in automotive increased Products of agriculture, forestry and fishing most growing by more than SEK 18 billion. Mining and quarrying

Source: Statistics Sweden 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000

12 Photo: Mostphotos 13 RICH EXCHANGE WITH THE WORLD RICH EXCHANGE WITH THE WORLD

Strong growth in goods exports ANNUAL REAL GROWTH IN GOODS EXPORTS IN Many foreign-owned NUMBER OF FOREIGN-OWNED COMPANIES from the Gothenburg region THE GOTHENBURG REGION AND SWEDEN 2010–2018 companies in the region AND ESTABLISHMENTS 1990–2017 Since 2010, the business environment in the 2020 Since 1990, the number of foreign-owned 35003,500 Gothenburg region has seen strong exports companies in the Gothenburg region has grown Establishments growth. In 2017, the region recorded a real 1515 steadily. In 2017 there were approximately Companies 30003,000 increase in goods exports of 13 per cent. This 2,400 foreign-owned companies in the 10 was followed by a further 6 per cent increase 10 Gothenburg region. These foreign-owned 2,500 in 2018. companies accounted for approximately 2500 55 Source: Statistics Sweden 3,000 establishments in the Gothenburg % 0 0 region. From 2016 to 2017, the number of 20002,000 foreign-owned companies in the Gothenburg -5 -5 region increased by around 100 companies. 1,500 Sweden 1500 -10-10 Gothenburg region Source: Statistics Sweden 10001,000 -15-15 2010 2011 2012 2013 2014 2015 2016 2017 2018 0

500 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6% -20 in real export Employees in foreign-owned NUMBER OF EMPLOYEES IN FOREIGN-OWNED growth between companies COMPANIES 1990–2017 2017 and 2018 The number of employees in foreign-owned 9000090,000 companies almost quadrupled in the period 8000080,000 1990–2017. In 2017, some 88,000 people were employed by foreign-owned companies 7000070,000 in the Gothenburg region. Of these, Chinese 6000060,000 companies employ the most, followed by companies from the USA, Norway and Denmark. 5000050,000 Source: Statistics Sweden 4000040,000 3000030,000 2000020,000 1000010,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 2015 2016 2017 Photo: Port of Gothenburg of Port Photo:

Norway top of the list – Denmark TOP 10 FOREIGN OWNERS OF COMPANIES IN THE REGION The highest value of goods EXPORTS IN SEK PER EMPLOYEE IN THE PRIVATE SECTOR showing most growth IN METROPOLITAN REGIONS AND SWEDEN 2018 NUMBER OF NUMBER OF exports per employee The list of countries with foreign ownership in COMPANIES COMPANIES CHANGE RANK* COUNTRY 2016 2017 2016–2017 That the Gothenburg region’s companies are 700,00070 the Gothenburg region is dominated by the export-intensive can be ascertained by studying northern parts of Western Europe. Norway tops 1 (1) Norway 407 410 3 exports per employee in the private sector. 600,00060 the list as the country of ownership for the most 2 (2) Germany 269 268 -1 In 2018, the value of exports from companies foreign-owned companies, followed by Germany 3 (4) Denmark 218 241 23 in the Gothenburg region corresponded to 500,00050 and Denmark. Denmark represented the largest SEK 634,000 per employee in the private increase in the number of foreign-owned 4 (3) USA 222 224 2 sector. This is substantially higher compared 400,00040 companies in 2017, while the UK represented 5 (5) UK 215 202 -13 to the other two metropolitan regions and the largest decrease. 6 (7) Luxembourg 123 136 13 Sweden as a whole. 300,000 30 Source: Statistics Sweden Source: Statistics Sweden 7 (6) Netherlands 123 128 5 200,00020 8 (8) Finland 120 120 0 9 (9) France 92 102 10 100,00010 10 (10) Switzerland 73 81 8 0 Gothenburg region total 2,284 2,378 94 Sweden Gothenburg Stockholm Malmö region region region * Figure in parentheses refers to rank in 2016.

14 15 RICH EXCHANGE WITH THE WORLD

Record numbers of trips NUMBER OF AIR PASSENGERS AND GUEST NIGHTS to and from the region and IN THE GOTHENBURG REGION 2000–2018 overnight stays 700007 Gothenburg Landvetter Airport once again set Millions of air passengers a new record in 2018 with more than 6.8 million Millions of guest nights air passengers. Never before have so many air 600006 travellers journeyed to and from the Gothenburg region’s airport. The region’s hotels, holiday 500005 cottages and hostels also experienced a strong 2018, once again recording a record number of overnight stays, more than 4.8 million. Norwegians40000 4 are the most numerous visitors, followed by German, British, American, Danish and Chinese travellers. 3 Source: Swedish Transport Agency and Statistics Sweden 30000

2

20000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Approximately 7 million air passengers travelled to and from the Gothenburg region in 2018 3.

Growth and labour market

Illustration: Sweco/Swedavia The business environment in the Gothenburg region is characterised by global, knowledge-intensive manufacturing Growing international FOREIGN-BORN RESIDENTS 2018 companies such as Volvo, SKF and AstraZeneca. The total wage population in the region NUMBER NUMBER CHANGE 2017–2018 sum in the Gothenburg region is growing at a faster rate than In 2018, the Gothenburg region had about LAND 2017 2018 IN NUMBER IN PER CENT 211,000 foreign-born residents (just over Sweden as a whole and other metropolitan regions. Above all, 16,078 16,457 379 2.4% 20 per cent of the region’s population). this growth is most prominent within construction and services. Compared with the previous year, this is an 15,718 16,325 607 3.9% Overall, employment in the region is growing at a faster rate than increase of just over 10,500 foreign-born 10,479 11,774 1,295 12.4% residents, equivalent to an increase of just the national average. A rapidly expanding knowledge-intensive Finland 10,686 10,439 -247 -2.3% over 5 per cent. Iraq, Iran and Syria top the list of countries of birth among the 9,198 9,856 658 7. 2% business services sector supports the manufacturing companies, Gothenburg region’s foreign-born population. 9,283 9,495 212 2.3% and the region’s business environment is gaining further nuance In terms of changes between 2017 and 9,023 9,112 89 1.0% 2018, foreign-born residents from Syria through growing businesses in information and communication, represent the largest increase, in both Former Yugoslavia 8,243 8,148 -95 -1.2% hotels and restaurants, construction and real estate. percentage and number. 5,356 5,600 244 4.6%

Source: Statistics Sweden Norway 4,947 4,958 11 0.2%

Gothenburg region total 200,232 210,825 10,593 5.3%

16 Photo: Superstudio / Göteborg & Co 17 GROWTH AND LABOUR MARKET GROWTH AND LABOUR MARKET

The Gothenburg region ANNUAL REAL GROWTH IN TOTAL WAGE SUM 2001–2018 Care and healthcare sector EMPLOYMENT +16 YEARS OF AGE, BY SECTOR 2017 – a Swedish growth engine the largest employer 6 GOTHENBURG In 2018, total wage sum in the Gothenburg 6,0 Care and healthcare is the sector with the most Gothenburg region Sweden SECTOR REGION % SWEDEN % region grew by 4 per cent in real terms. 5,5 employees in the Gothenburg region, followed by 5 Health care and care 78,991 14.9 812,138 16.5 The Gothenburg region experienced a higher 5,0 business services, which has experienced strong rate of real growth in total wage sum than 4,5 employment growth in recent years. Compared Business services 78,232 14.8 591,664 12.0 4 Sweden as a whole, which increased by 4,0 to Sweden as a whole, the Gothenburg region has Commerce 67,3 3 4 12.7 587,529 12.0 2.9 per cent. a larger share of employees in business services, 3,5 Manufacturing and mining 64,783 12.2 551,353 11.2 commerce, manufacturing, transportation, Source: Statistics Sweden 3,03 2,5 and information and communication. However, Education 55,082 10.4 534,694 10.9 compared to Sweden as a whole, the Gothenburg 2 Construction 35,354 6.7 354,443 7. 2 2,0 region has a smaller proportion of employees Transportation 28,484 5.4 229,479 4.7 1,5 in care and healthcare, public administration, 1,01 education, construction, and finance and Public administration 27,929 5.3 293,087 6.0 0,5 insurance. Information and communication 25,123 4.7 202,898 4.1 % 0 2002 2003 2004 2005 2006 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0,0 2001 2007 2008 Source: Statistics Sweden Personal and cultural services 22,237 4.2 213,418 4.3

Hotels and restaurants 19,184 3.6 169,199 3.4

Property 9,314 1.8 80,130 1.6

Financial services and insurance 7,657 1.4 95,089 1.9 Construction and services Energy and the environment 4,483 0.8 50,390 1.0 have grown the most Unknown 3,586 0.7 52,831 1.1 The average annual growth in total wage sum in the Agriculture, forestry and fishing 2,613 0.5 96,551 2.0 Gothenburg region during the period 2000–2018 was 78,991 Summa 530,386 4,914,893 3.5 per cent. In terms of individual sectors, the largest A good measure of regional growth is growth has been seen in the construction sector, followed employees in the care and healthcare to assess the development of the by the services sector. The construction sector has many sector in the Gothenburg region in 2017 total wage sum. The wage sum can major development projects in the region during the coming go up as a result of increased years. In addition, the highly refined services offered by productivity or by more various companies and a growing public sector are The number of employees is growing faster in people being employed. contributing more and more to the region’s economy. the Gothenburg region than Sweden as a whole Source: Statistics Sweden In 2017, more than 530,000 people were working in the Gothenburg 530,386 region. This represents an increase of 33 per cent since the year 2000, the number of people employed in or 132,000 people. the Gothenburg region in 2017

AVERAGE ANNUAL REAL GROWTH IN TOTAL WAGE SUM BY Source: Statistics Sweden SECTOR IN THE GOTHENBURG REGION 2000–2018

EMPLOYMENT GROWTH IN THE GOTHENBURG REGION AND SWEDEN 2001–2017

44 Gothenburg region Sweden 5.1% 4.0% 33 22 CONSTRUCTION SERVICES 11 %00 -1–1 -2–2 -3–3

3.4% 1.6% –4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -4 PUBLIC SECTOR MANUFACTURING

18 19 GROWTH AND LABOUR MARKET GROWTH AND LABOUR MARKET

Greatest job growth in PERCENTAGE CHANGE IN EMPLOYMENT Small companies PERCENTAGE CHANGE IN EMPLOYEES, business services BY SECTOR 2009–2017 experiencing the most rapid BY SIZE CATEGORY 2008–2018 All sectors in the Gothenburg region have growth in employees Business services 4040 seen an increase in the number of employees Since 2008, companies with 1–4 employees Information and communication following the financial crisis in 2008. Swedish have experienced the strongest growth in the manufacturing and mining has experienced Public administration Gothenburg region. During the period 2008–2018, 30% 30 negative growth, while the Gothenburg region’s Construction employees in companies with 1–4 employees 30 manufacturing and mining industry is heading Hotels and restaurants increased by 30 per cent. Companies with 5–19 23% in the other direction. Much of this development Education and 20–199 employees and the region’s largest is explained by the fact that the Gothenburg companies also demonstrate strong growth in 20 18% Property 20 17% region’s knowledge-intensive manufacturing terms of employees. However, in absolute terms, industry has made very strong progress in Health care and care companies in the region with 20–199 employees recent years. However, business services has Personal and cultural services and the very largest companies report the largest 1010 experienced the most growth in the Gothenburg Commerce increase. Some 59,000 people were hired by region, followed by information and communi­ Gothenburg region companies in these two size categories during Financial services and insurance Sweden cation. Compared to Sweden as a whole, the the period 2008–2018. Gothenburg region has clearly experienced Energy and the environment % 0 Source: Statistics Sweden 0 more growth in employment within information Transportation 1–4 5–19 20–199 200> employees employees employees employees and communication, manufacturing, business Manufacturing and mining services and construction. –10-10 -5–5 0 5 1010 1515 20 25 30 3535 4040 % Source: Statistics Sweden Small companies account for the majority of the region’s establishments Lowest unemployment among UNEMPLOYMENT AMONG 16–64 YEAR OLDS, 117,238 The Gothenburg region’s numerous small companies provide the majority of ANNUAL AVERAGE 2000–2018 metropolitan regions establishments in the region’s establishments (approximately 87 per cent of the establishments In 2007, both the Gothenburg region and Sweden 1010 the Gothenburg region in 2018 have less than 5 employees). The sector with the largest number of establish- as a whole reported largely similar unemployment. Gothenburg region Sweden ments, more than 26,000, is business services, with a clear majority made The positive development seen in employment in up of smaller establishments. Commerce and personal and cultural services the Gothenburg region from the year 2010 onwards also have many establishments in the region. Commerce, however, has more has resulted in a continued fall in unemployment. establish­­­ments in the size category 5–199 employees. The share of establish- 8 Unemployment in the Gothenburg region averaged 8 ments with 200 or more employees is largest within public administration, 5.6 per cent in 2018, the lowest among the care and healthcare, transportation, manufacturing and education. country’s metropolitan regions, and some 1.5 Source: Statistics Sweden percentage points lower than the national average. Source: Swedish Public Employment Service and Statistics Sweden 6 ESTABLISHMENTS IN THE GOTHENBURG REGION IN 2018, BY SECTOR AND SIZE CATEGORY

ESTABLISHMENTS 1–4 5–19 20–199 200+ SECTOR WITH NO EMPLOYEESA EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES TOTAL % 4 2008 2014 2012 2018 2010 2016 2017 2000 2004 2003 2009 2002 2005 2001 2007 2013 2011 2015 4 2006 Business services 16,565 7,575 1,539 656 52 26,387

Office-based Commerce 7,572 4,301 2,463 611 18 14,965 employees in the Gothen- Personal and cultural services 11,198 2,287 597 152 7 14,241 burg region will increase by Property 8,893 1,345 243 75 4 10,560 100,000 Construction 4,705 3,195 1,133 372 9 9,414 from today's 150,000 Agriculture, forestry and fishing 8,033 230 49 5 0 8,317 employees to around Information and communication 4,594 2,259 460 208 16 7,5 37

Healthcare and care 2,675 1,332 905 531 49 5,492

250,000 Manufacturing and mining 2,737 1,092 594 266 31 4,720 employees in 2035 Education 2,432 509 856 612 24 4,433 Source: Evidens Hotels and restaurants 1,177 1,293 833 186 2 3,491

Transportation 1,506 1,051 461 250 25 3,293

Financial services and insurance 2,179 529 164 49 7 2,928

Unknown 647 68 3 0 0 718

Energy and the environment 273 86 49 40 2 450

Public administration 17 34 58 150 33 292

Gothenburg region total 75,203 27,186 10,407 4,163 279 117,238 Photo: Mostphotos Photo:

20 21 BUSINESS

Knowledge-intensive LARGEST COMPANIES IN THE GOTHENBURG REGION industries are largest BY NUMBER OF EMPLOYEES The majority of the largest companies in the Gothenburg region engage in research and RANK COMPANY NUMBER OF EMPLOYEES 2018 development at a world-leading level. Volvo 1 Volvo Cars 16,475 Cars, with its development and production in 2 * 4,375 , is the single largest private employer in the Gothenburg region. Volvo Cars is also 3 Chalmers University of Technology 3,275 the company that had the greatest increase 4 SKF 2,450 in number of employees during 2018. In total, 5 Postnord 2,375 the Volvo Group has over 12,400 employees in the Gothenburg region. New on the top-10-list 6 AstraZeneca 2,125 in 2018 is . 7 Samhall 1,875

Source: Statistics Sweden 8 Ericsson 1,725

9 Skanska 1,625

10 Essity 1,425

* Part of the Volvo Group, which employs a total of 12,400 people in the Gothenburg region.

4. LARGEST COMPANIES IN THE GOTHENBURG REGION Home to Sweden’s two largest companies BY TURNOVER The list of the companies* reporting the highest turnover is topped by the Volvo Group, which is RANK COMPANY TURNOVER 31-12-2017, MSEK in fact the company with the highest turnover 1 AB Volvo 336,291 in Sweden. In second place is Volvo Cars, 2 Volvo Cars 214,166 Sweden’s second largest company by turnover, followed by SKF, the Stena sphere and Carl 3 SKF 77,93 8 Bennet. 4 Stena sphere* 55,388

* Only companies with their head office in 5 Carl Bennet** 49,784 the Gothenburg region. 6 Bilia 25,509 Källa: www.va500.se Business 7 Cellmark 24,435 8 Ekman & Co 16,003

The Gothenburg region is home to a broad and 9 Capio 15,425 multifaceted business environment. 92 per cent of 10 Mölnlycke Health Care 10,710 Sweden's industries are represented here, with a total * Reported here as group including Stena, Stena Metall, Stena Sessan and Concordia Maritime. ** Reported here as a group including Getinge, Lifco, Elanders, Dragesholm and Symbrio. of 752 industries identified in the region. Some of the world's leading companies within their sectors are headquartered in the region. The Gothenburg region Companies with the highest LARGEST COMPANIES IN THE GOTHENBURG REGION is also characterised by a strong entrepreneurial spirit market value BY MARKET VALUE One more way of assessing a company's size and over 7,100 companies were started in 2018. is to consider its market value*. Of the companies RANK COMPANY MARKET VALUE 31-12-2018, MSEK based in the Gothenburg region, the Volvo Group 1 AB Volvo 300,059 tops the list followed by the investment company 2 Latour 78,764 Latour, SKF and the real estate companies Balder, Castellum and Wallenstam. The real 3 SKF 74, 025 estate company Platzer improved from 10th 4 Balder 51,624 on the list in 2017 to 8th in 2018. 5 Castellum 48,247

* Only companies with their head office in 6 Wallenstam 29,947 the Gothenburg region. 7 Getinge 29,225 Source: Avanza 8 Platzer 8,959

9 Bilia 8,506

10 Collector 5,175

22 Mostphotos Photo: 23 BUSINESS BUSINESS

Every tenth start-up NUMBER OF START-UP COMPANIES Commerce and manufacturing TURNOVER IN MSEK BY SECTOR 2017 IN THE GOTHENBURG REGION 2000–2018 is established in the have the highest turnover INDUSTRY TURNOVER 2017, MSEK PERCENTAGE Gothenburg region 1000010,000 In 2017, the total turnover in the Gothenburg Commerce 392,339 31.0% The Gothenburg region is making great region was over SEK 1,267 billion. Commerce Manufacturing and mining 294,665 23.3% efforts to facilitate the start-up process and manufacturing and mining accounted for for entrepreneurs. Since 2000, the number 80008,000 more than half of the region’s total turnover. Business services 165,147 13.0% Business services, transportation and of start-ups has nearly doubled. In 2018, Transportation 96,696 7.6% over 7,100 new companies were started construction also constitute a significant Construction 88,772 7.0% in the Gothenburg region, corresponding to portion of the region's turnover. 60006,000 11 per cent of all start-ups in Sweden. Source: Statistics Sweden Information and communication 63,557 5,0%

Source: Growth Analysis Real estate 45,053 3.6% 40004,000 Finance and insurance 26,854 2.1% Unknown 19,976 1.6%

Energy and environment 18,298 1.4% 2,000 7 119 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Hotel and restaurants 17,010 1.3% start-ups in 2018 Personal and cultural services 12,099 1.0%

Education 11,822 0.9%

Healthcare and care 9,166 0.7%

Agriculture, forestry and fishing 2,947 0.2%

Public authorities 2,943 0.2%

Gothenburg region total 1,267,342 100.0%

The region’s private sector VALUE ADDED IN MSEK BY SECTOR 2017

generated high value added VALUE ADDED The highest value added in the Gothenburg INDUSTRY 2017, MSEK PERCENTAGE region comes from business services, followed Business services 127,277 23.6% by manufacturing and commerce. Together they Manufacturing and mining 95,007 17.6% 92% contribute nearly three-fifths of the region’s total of all industries in Sweden value added, which amounts to SEK 540 billion. Commerce 81,531 15.1% are represented in the A reason why business services contributes Construction 45,014 8.3% greatly is that companies such as Volvo Cars, Gothenburg region Real estate 40,068 7.4% Photo: Frida Winter / Göteborg & Co the Volvo Group, AstraZeneca, SKF and Ericsson have sub-activities that are included in this Transportation 39,171 7.3% specific sector. This is also a sign that the Information and communication 33,944 6.3% traditional industrial production has integrated Health care and care 16,139 3.0% a growing number of technology services as the Investments in housing INVESTMENT VOLUME IN BSEK IN OFFICES, FACILITIES goods for the final consumer become more and Hotel and restaurants 14,512 2.7% and offices in the AND HOUSING IN THE GOTHENBURG REGION 2009–2019 more advanced. Finance and insurance 13,895 2.6% Gothenburg region 7070 Source: Statistics Sweden Personal and cultural services 10,757 2.0% Large construction projects will proliferate Office premises Facilities Energy and environment 10,245 1.9% in the coming years. During 2017 over SEK 60 19 60 Housing 18 60 billion was invested in facilities, housing Education 6,308 1.2% 17 and office premises in the Gothenburg region. 5050 15 Unknown 3,376 0.6% The forecast for 2018 indicates investment 11 13 15 Agriculture, forestry and fishing 2,456 0.5% volumes totalling SEK 66 billion. Between 4040 15 10 10 Public authorities 9 0.0% 2016 and 2035, investment volumes in the 11 12 13 30 9 12 Gothenburg region are expected to amount 30 10 Gothenburg region total 539,708 100.0% 7 9 to over SEK 1,000 billion. 8 6 8 6 2020 38 38 Source: Swedish Construction Federation 33 29 24 1010 19 21 20 18 19 20 SEK billions 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 forecast forecast

24 25 BUSINESS BUSINESS

Strong clusters in the TRANSPORTATION AND LOGISTICS Gothenburg region Employees: The Gothenburg region is Scandinavia’s most important logistics hub. Here you find leading competence within logistics and advanced transportation infrastructure. The region is the national centre for R&D In the Gothenburg region there are many clusters that contribute to 30,500 within sustainable logistics and transportation solutions. the region's strong innovation capacity and competitiveness. Here are several examples.

AUTOMOTIVE The automotive cluster in the Gothenburg region is world leading in Employees: ICT safety, electrification, autonomous engineering technology and connected vehicles. The region's automotive cluster is home to OEMs The Gothenburg region is home to cutting edge expertise in several Employees: such as Volvo Cars, the Volvo Group, Geely, CEVT and NEVS, as well as 35,000 fields. The ICT companies in the region hold a strong position in areas to many large and specialized tech, design and service suppliers to the such as embedded systems, infrastructure and cloud, microwaves, automotive industry. mobile technologies as well as visualisation and gaming. 29,000

LIFE SCIENCE Life science is one of the fastest growing industries in Gothenburg. Employees: Here you find one of Europe’s largest university hospitals and one of CLEANTECH Astra Zeneca’s three globally strategic R&D centres. In the coming years, the life science cluster will be further strengthened with major The cleantech cluster is strongly linked to other industries in the 7,000 investments being made in Sahlgrenska Life and the new health Employees: Gothenburg region in areas such as energy efficiency, renewable fuels cluster GoCo Health Innovation City. and renewable energy, electromobility, waste systems and air and water treatment. The companies are suppliers in these areas with both technology and service production. The City of Gothenburg has long 8,600 been at the forefront in setting environmental and climate requirements and this has driven the development in the cleantech cluster.

ENERGY MARITIME The energy production in the Gothenburg region is complete with power Gothenburg is the leading port in the Nordics and the city is a centre Employees: generated from wind, water, solar, nuclear and waste. Gothenburg is a Employees: for research and development within marine energy extraction, world leader with its extensive district heating network and has the biotechnology and maritime operations as well as fisheries and world's most efficient energy recoveries from waste. The region is also aquaculture. 6,600 home to Sweden's largest existing and planned solar cell parks. 11,300

Source: Statistics Sweden and Business Region Göteborg, all statistics refer to employees in 2016

26 27 POPULATION, LIFESTYLE AND EDUCATION

Population growth continuing POPULATION IN THE GOTHENBURG REGION 2000–2018 AND For many years, the Gothenburg region has FORECAST FOR THE PERIOD 2019–2035 had birth and migration surpluses. In 2018, 12500001,250,000 the region’s population increased by about Population 16,000 residents. If the annual growth rate 12000001,200,000 Population forecast of around 10,000 residents continues, the 1,150 ,000 region will be home to just over 1.2 million 1150000 people in 2035. 11000001,100,000 Source: Statistics Sweden and Västra Götaland region 10500001,050,000 10000001,000,000 950000950, 000 900000900,000 1,028,248 850000850,000 800,000 2000 2005 residents in the Gothenburg 800000 2010 2015 2020 2025 2030 2035 5. region during 2018 Living in a growing region ANNUAL POPULATION GROWTH 2000–2018 Every year since 2000, the Gothenburg region’s 2,02.0 population has increased by around one per Gothenburg region cent, with the region seeing greater growth than Sweden Sweden as a whole throughout the entirety of the 2000s. In 2018, the population increased 1,51.5 the most among the 25–34 age group, with some 5,000 additional people within this cohort. A large increase was also seen in the 5–14 age 1,01.0 group, with more than 2,600 new residents.

Source: Statistics Sweden Population, lifestyle 0,50.5

% 0 and education 0,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010 2012 2013 2014 2015 2016 2017 2018 More and more people are choosing to live in the Gothenburg region and in 2018 its population was more than one million people. The population is relatively Younger than the national POPULATION BY AGE GROUP 2018 average young and more highly educated than the national average. 3535 Access to academic education and world-class companies A comparison with Sweden’s average Gothenburg region Sweden age breakdown for 2018 shows that the 3030 makes the region more attractive. The Gothenburg region’s Gothenburg region has a relatively young two universities collectively have around 60,000 students. population. The 0–44 age group is larger 2525 than the national average while the 45–65 In terms of human capital and lifestyle, Gothenburg ranks age group is smaller. 2020 highly among mid-sized European cities. Source: Statistics Sweden 1515 1010 55 % 00 0–24 years 25–44 years 45–64 years 65+ years

28 Mostphotos Photo: 29 POPULATION, LIFESTYLE AND EDUCATION

Higher level of education HIGHEST LEVEL OF EDUCATION COMPLETED, AGE GROUP 25–64, 2017 than the national average Compared to Sweden as a whole, a larger Tertiary education and research education proportion of the 25–64 age group in the Gothenburg region has a post-secondary education, up to the level of doctoral Secondary education studies/research education.

Source: Statistics Sweden

Primary education

Gothenburg region Sweden

0 0 1010 2020 3030 4040 5050 6060 %

Most common professions among the population 2. Public sector 3. 1. Primary school teacher and preschool teacher 1. 2. Assistant nurse 3. Childcare worker and teaching assistant Assistant nurse Childcare worker and 6. 4. Attendant, carer and personal assistant Primary school teacher teaching assistant 5. Nurse and preschool teacher 2. Private sector 1. Retail staff 2. Engineer 1. 3. 3. Insurance advisor, salesperson and purchaser 4. IT architect, system developer and testing manager Civil engineer 5. Office assistant Insurance advisor Shop assistant Source: Statistics Sweden, relating to 2017 and purchaser Costs and taxes The Gothenburg region is a competitive location 10th place The world’s for businesses. The corporate tax rate is low and Among Europe’s medium- sized cities, Gothenburg ranks second-smartest city the rental market is among the hottest in Europe. tenth in the category Human The Future Today Institute ranks In addition, foreign key workers in Sweden are Approximately Capital and Lifestyle. Gothenburg as the world’s second-smartest Source: fDi city. The assessment is based on a number granted a certain degree of tax relief. of indicators, such as access to free Wi-Fi, 60,000 smart solutions in public transport and The region’s two largest seats of learning are 4G and 5G network connectivity. the , with some Source: Future Today Institute 48,000 students, and Chalmers University of Tech- nology, with just over 10,000 students. Both universities are among the world’s best in several research fields. 1 billion Source: University of Gothenburg and Chalmers University of Technology SEK was the net cost for culture in the Gothenburg region in 2017. Per inhabitant, the Gothenburg region’s 7,000 cost for culture is just over SEK 1,100, So many highly-educated which is higher than the corresponding technology workers cost per inhabitant in the switch employer each year in Stockholm region. the Gothenburg region – benefiting productivity. Source: Swedish Agency for Cultural Policy Analysis Source: Statistics Sweden and CIRCLE

30 Photo: Frida Winter / Göteborg & Co 31 COSTS AND TAXES COSTS AND TAXES

Employer contributions STATUTORY EMPLOYER CONTRIBUTIONS Office rental OFFICE RENTS BY AREA IN GOTHENBURG, QUARTER 4 2018

All employers pay social security contributions % OF WAGE/SALARY 2019 Office rental prices vary considerably SEK/m2 per year for their employees. These comprise contribu- Retirement pension 10.21 between different districts in Gothenburg. 3, 500 tions for pensions, health care and other social The map below provides an overview of the benefits. The contributions amount to a total Survivor's pension 0.60 various areas of Gothenburg, with a summary 3,000 of 31.42 per cent. Health insurance 3.55 of rental prices for these areas listed to the right. The highest rents are in the Central Source: The Swedish Tax Agency Parental insurance 2.60 Business District (CBD), while the lowest 2,500 Occupational injury insurance 0.20 rents are observed in West Gothenburg. 2,000 Unemployment insurance 2.64 Source: JLL

Payroll contribution 11.62 25% 1,500 tax relief for foreign key staff during Total statutory employer contribution 31.42 E20 their first three years in Sweden NORRA 1,000 ÄLVSTRANDEN Source: The Swedish Tax Agency MARKET SALARY STATISTICS 2018* CBD* 500 MONTHLY SALARY (SEK) EAST GOTHENBURG PROFESSION 10TH PER- 40TH PER- 60TH PER- 90TH PER- CENTILE CENTILE CENTILE CENTILE OTHER INNER CITY 0 Salary levels in Economics and finance managers 38,500 56,700 69,100 110,300 CBD* Other Norra Other West East Mölndal Inner City Älvstranden Hisingen Gothenburg Gothenburg Economics and finance operations the Gothenburg region 38,000 51,400 60,700 89,100 E6 managers WEST Presenting income distribution using percentiles GOTHENBURG MÖLNDAL * Central Business District. Human resources managers 40,000 55,300 68,200 104,800 gives a good picture of the most common wage Human resources operations levels. In this table, the figure in the column for 40,000 53,000 62,500 91,500 managers the 10th percentile corresponds to the maximum wage earned by 10 per cent of that category. Management and planning managers 46,400 66,100 80,000 148,000 An example, 10 per cent of the sales persons in Management and planning CORPORATE TAX RATES – A EUROPEAN COMPARISON 2019 34,200 45,300 52,500 80,000 Competitive corporate tax operations managers commerce earn SEK 23,800 or less, whereas In a European context, Sweden’s corporate Sales and marketing managers 42,600 58,900 68,300 101,500 60 per cent of the same profession category tax rate is competitive. The corporate tax rate StorbritannienUK earn SEK 30,400 or less. Sales and marketing operations 39,500 54,900 63,900 83,300 in Sweden was reduced to 21.4 per cent as Finland managers Finland *The numbers are rounded to the nearest hundred. of 1 January 2019 and will be further reduced Sweden IT managers 45,600 61,200 71,700 109,800 in the run-up to 2021. Sweden Source: Almega, September 2018 Denmark IT operations managers 43,100 58,000 64,300 82,900 Source: KPMG, 2019 Denmark Managers in information, Italy 41,500 62,400 76,200 111,300 Italien communication and PR Netherlands Operations managers in information, Nederländerna 39,600 52,600 59,700 82,700 communication and PR SpanienSpain* Managers in purchase, logistics * Small and new companies can benefit from 35,600 52,900 63,200 88,800 Germany** and transport lower corporate tax. Tyskland Operations managers in purchase, ** The corporate tax rate in Germany varies France* 35,700 49,200 59,100 79,600 Frankrike* logistics and transport between 22.83 and 36.83 per cent depending on geographical location. 0 5 1010 1515 2020 2525 3030 3535 % Auditors, accountants and 27, 20 0 37,50 0 45,000 63,700 economists Organisation development experts 33,800 44,000 51,100 69,600 Market analysts and marketing 32,200 41,800 48,500 65,600 specialists Comparison of taxes WITHHOLDING TAX RATES* 2018 Systems analysts and software 36,000 46,100 51,100 62,400 engineers Since 2013, Sweden has become one of the most attractive places in the world for holding Software and systems developers 31,500 40,000 45,300 55,700 companies. Sweden offers more than 80 tax Engineers and technicians 29,000 34,400 39,000 52,600 in construction agreements in addition to the low corporate tax rate. Sweden's tax climate also holds up TYPE OF TAX Engineers and technicians in SWEDEN DENMARK FINLAND FRANCE GERMANY NETHERLANDSUK USA 29,800 37,000 42,000 54,700 electro technology well in comparison to other countries, as Interest 0% 0% 0% 0% 0% 0% 20% 0% Engineers and technicians in companies are not taxed on interest income, 29,500 36,200 41,200 53,700 chemistry and chemical engineering share dividends and royalties. Dividends 0% 0% 20% 30% 25% 0% 0% 30%

Computer technicians 26,000 33,900 38,400 47,60 0 Source: Deloitte, 2018 Royalties 0% 22% 20% 33% 15% 0% 20% 30% Company sales staff 27,9 0 0 38,100 44,800 58,900

Purchasers 30,800 38,900 43,900 58,700 *Rates apply to payments to non-residents.

Administrative assistants 22,100 28,400 31,500 40,200

Sales person in commerce 23,800 28,000 30,400 40,300

32 33 COSTS AND TAXES

Nordic cost comparison 2019

STOCKHOLM

SEK 120 OSLO

SEK 190 SEK 1,425

SEK 3,400 SEK 7,500

SEK 4,900 SEK 93,400 SEK 81,500 7. HELSINKI

OSLO STOCKHOLM

GOTHENBURG

SEK 100

SEK 1,425 GOTHENBURG HELSINKI

SEK 3,400 SEK 125

SEK 61,200 SEK 3,000 COPENHAGEN Climate, environment SEK 4,300 and sustainable SEK 76,500 COPENHAGEN SEK 170 development

SEK 3,300 The Gothenburg region boasts world-leading competence in sustainable development and clean technology solutions. The region SEK 2,800 has numerous partnerships involving energy, smart urban development, SEK 66,300 transport and waste management, aiming to reduce impact on the A cheaper meal environment. An area that has met considerable success is district heating and district cooling. Another sign that the region is heading Maximum monthly fee for 1 child at preschool in the right direction in its work with the environment, climate

Office rent per m2 CBD / year and sustainable development is that the interest in green bonds has been huge, and new issues of green bonds have been proliferating Average price per m2 for a city apartment at record pace.

Sources: Numbeo, each city's official homepage, JLL and Global Property Guide. Exchange rates from NOK to SEK, DKK to SEK and Euro to SEK retrieved on 26 March 2019.

34 Photo: Kjell Holmner / Göteborg & Co 35 CLIMATE, ENVIRONMENT AND SUSTAINABLE DEVELOPMENT CLIMATE, ENVIRONMENT AND SUSTAINABLE DEVELOPMENT

AIR QUALITY IN GOTHENBURG 1982–2017* Better air quality in CO2 emissions are DEVELOPMENT OF REAL GROSS REGIONAL PRODUCT (GRP) AND CO2 Gothenburg decreasing in spite of increased IN THE GOTHENBURG REGION, 2000–2016 (INDEX 2000 = 100) 60 For decades, Gothenburg has worked actively 60 Nitrogen dioxide economic activity 190 Particulate matter level (PM10) 190 to continuously improve the city’s air quality. The Gothenburg region’s emissions of carbon Real BRP 50 Sulphur dioxide 180 Sulphur emissions have been cut by almost 50 180 dioxide have been at a constant level for most of CO2 170 100 per cent and are close to zero. Over the the 2000s, but in recent years these emissions 170 40 longer term, Gothenburg has reduced airborne 40 have decreased. At the same time, the region’s 160160 nitrogen dioxide levels. During the past 10 economic growth stands at around 85 per cent, 150150 years, the city has even managed to reverse 30 and the population has increased by over 18 30 140140 the upward trend in coarse particulate matter per cent, meaning that the emissions per growth levels (PM10). 130 20 unit have decreased*. Since 2000, carbon 130 20 120 * Annual average unavailable for certain years due dioxide emissions in the region have decreased 120 to insufficient data documentation. Air quality by 6 per cent, despite the three large refineries 110 10 110 is based on statistics obtained from the ‘Femman’ 10 in Gothenburg and the chemical plants in 100 measuring station in Gothenburg. 100 Stenungsund. Altered production patterns in µg/m3 0 90 Source: Environment Administration, City of Gothenburg 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 90 0 energy production meant that CO2 emissions Index 80 spiked in both 2010 and 2016, but the 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 general trend is downward.

*We can only measure emissions produced in Source: Statistics Sweden and Swedish National Emissions Inventory the Gothenburg region. Recycled energy keeps WASTE INCINERATION* IN GOTHENBURG 1992–2018 us warm 600 Gothenburg is highly competent when it comes 600 to waste management. Even though the city incinerates more waste than before, emissions 500500 are decreasing over time. The heat from waste incineration represents a third of the district 400400 heating in the region and approximately 5 per cent of the electricity demand in Gothenburg. Incinerated (kilotonnes/year) 300300 In addition, 60 per cent of electricity produced comes from biogas. 200200 *Statistics in the figures refer to Sävenäs waste treatment facility. Photo: Frida Winter / Göteborg & Co 100100

DISTRIBUTION OF GREEN BONDS IN GOTHENBURG, MSEK 0 0 1992 1993 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2012 2013 2014 2015 2016 2017 2018 Cleaner air with smart Green bonds contribute to PROJECT 2013 2014 2015 2016 2017 2018 sustainable growth heating and cooling Source: Renova Ultrafilter 150 420 The City of Gothenburg issues bonds to finance In order to supply Gothenburg with heat, GOBiGas 300 620 -920 SUPPLIED ENERGY INCLUDING PRODUCTION METHOD FOR various environmental initiatives within renewable we have a far-reaching district heating Electric vehicles 30 19 11 19 15 system used to distribute energy from GOTHENBURG'S DISTRICT HEATING SYSTEM 2018 energy, public transport, water treatment, energy different heat sources. The district heating efficiency, smart power grids, urban planning Nitrogen emission reduction 47 110 164 32 3 network in Gothenburg measures about and waste management. Green bonds valued Tree planting 8 6 5 6 8 1,230 km in length. It heats 90 per cent Recovered energy 73 % at about SEK 1.2 billion were issued in 2018. of the apartment buildings in Gothen­burg, Cogeneration 23 % The market shows great interest in green bonds Celsius district heating 5 some 12,000 houses and countless 12% Industrial surplus heat 32 % Pedestrian city 50 10 17 32 factories, offices, shops and other public Waste water 8 % and since the start in 2013, green bonds totalling Flue gas condensation 10 % some SEK 7 billion have been issued. buildings. The district heating system Cycling city 60 28 28 65 enables us to utilise a large amount of 15% Source: City of Gothenburg energy that would otherwise dissipate Renewable energy 15 % Effective traffic lighting 49 42 37 43 Cogeneration (bio mass) 3 % into the atmosphere or the sea. Some Boiler (bio mass) 5 % Sustainable construction 382 314 498 588 707 70 per cent of our district heating Purchased heat (bio mass) 3 % comprises heat recovered from other Energy-efficient housing 388 427 544 830 Electricity to waste activities, such as waste incineration and 73% water heat 3 % 170 91 41 industrial processes. In recent years, a Auxiliary electricity Kodammarna water district cooling network has also been (pumps etc.) 1 % 35 80 developed for offices, hospi­tals, factories pumping station and other buildings. The technology is Fossil 12 % Solar farm 38 simple, quiet and resource efficient, with Cogeneration Selma 239 the cooling coming from recovered energy (natural gas) 12 % and the cold water of the river Göta Älv Boiler (natural gas, oil) 0 % Annual total 480 881 1,609 1,344 1,397 1,181 in Gothenburg. Source: Göteborg Energi. Source: Göteborg Energi Total allocated 480 1,361 2,970 4,314 5,711 6,892

36 37 CLIMATE, ENVIRONMENT AND SUSTAINABLE DEVELOPMENT

More travel fuelled by PERCENTAGE OF VEHICLE KILOMETRES RUN ON RENEWABLE FUEL renewables IN PUBLIC TRANSPORT IN THE GOTHENBURG REGION 2007–2018 MORE FROM US!

More and more people are using public transport. 100 96% 96% 100 93% In 2018, some 287 million trips were made in HVO Learn more about the business environment and doing business Electricity the Gothenburg region, an increase of 5 per 85% in the Gothenburg region from Business Region Göteborg's Biogas 80% cent over the previous year. Parallel to this, an 80 other reports and publications available on our website: 80 Biodiesel 73% increasing share of vehicle usage runs on rene- www.investingothenburg.com wable fuel. In 2007, about one third of public 60 59% transport in the Gothenburg region was powered 60 50% Economic Outlook by renewable fuels. By 2018, this figure had Published quarterly, Economic Outlook provides a summarised view exceeded 96 per cent. Biodiesel, electricity 40 37% 40 of the economic situation in Gothenburg in comparison to other and biogas have contributed the most to 32% 30% 29% Swedish metropolitan regions. The report presents many up-to-date phasing out non-renewable fuels in the region’s performance indicators for trade and industry, including those public transport. Recently, however, tall oil and 20 20 linked to the labour market. animal waste (HVO) have replaced biodiesel. Today, HVO is the largest source of fuel for % 0 public transport in the Gothenburg region. 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Invest in Gothenburg Source: Västtrafik This publication presents the Gothenburg region’s key industries, investment opportunities and assets for doing business.

Did you know… Come join us This brochure provides information on what it's like to live, work and study in the Gothenburg region.

Solevi … 1% Retail Guide … opened in Gothenburg in 2018 of heating in Gothenburg Retail Guide is an annual publication that presents retail and became Sweden’s largest solar is powered by oil. opportunities in Sweden and the Gothenburg region, and provides farm. It generates 5.5 MW which facts and information about the market, demand and supply. Source: Göteborg Energi is enough energy to meet the Quiet & emission needs of 1,100 houses. free transport Source: Göteborg Energi Following several successful years of electric buses on route 55 in Gothenburg, Electricity has expanded with two electric buses operating on route 16. At the same time, Fed up! work is continuing to strengthen Gothenburg's position as a leader in The Fossil-free Energy Districts electric mobility. project, FED, aims to decrease the use of energy and the dependence on fossil Source: AB Volvo fuel in buildings. The FED system is a digital 2020 marketplace that uniquely connects the three will see Landvetter Airport's carbon energy carriers – electricity, heating and dioxide emissions reach zero. The airport cooling – at Chalmers' Campus Johanneberg. is already taking strict measures to reduce The buildings that are part of the system STAY UPDATED! consume, produce and store energy via, its environmental impact and carbon dioxide among other things, solar cells, emissions have sunk drastically. The airport News, stories, analyses and more. Sign up for our newsletter thermal inertia and batteries. is certified to the highest level according and follow us on social media to stay updated on what’s happening to an international standard for its in Gothenburg’s business environment. Source: Johanneberg 90% of all apartment work to reduce emissions. www.investingothenburg.com/follow-us buildings in Gothenburg Source: Swedavia have district heating

Gothenburg is a world leader in district heating. District heating contributes to better air while making it possible to use heat that would otherwise be lost.

Source: Göteborg Energi

Photo cover: Mostphotos, Frida Winter/Göteborg & Co, Anders Wester.

38

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