This podcast explores how district heating companies and municipalities can integrate social sustainability into their strategies, with insights from Kristina Lygnerud (University of Lund) and Johanna Aurault (Vienna University of Economics and Business). The discussion is moderated by Hanne Kortegaard Støchkel from DBDH to share key insights from the international project titled ”Can a Sustainable DH Business Model Be Decisive for Future Competitiveness?”
Published in Hot Cool, edition no. 6/2025 | ISSN 0904 9681 |
Social sustainability encompasses the positive and negative impacts a company has on its stakeholders, both internal and external, and across present and future generations. It ranges from fair and transparent operations to community engagement and shared value creation. For district heating, this can mean everything from equitable pricing to partnerships that benefit the wider community.
Research in Burnaby revealed unique local perspectives. Unlike in Europe, where discussions often focus on fuel poverty, Canadian stakeholders have linked district heating closely to health and resilience, particularly in response to heatwaves. The inclusion of diverse voices, such as architects and disaster management officers, highlighted how district energy influences and is influenced by broader urban and community planning.
While all stakeholders supported recovering waste heat as an environmental benefit, priorities diverged around space requirements, the importance of cooling, and the level of awareness of district heating projects. This underscored the need for tailored communication and engagement strategies to align diverse interests.
Social values can be integrated into every stage of the district heating value chain, from technical design to marketing and after-sales. Doing so requires recognising both the potential to create value and the risk of negative impacts if social considerations are neglected. A value chain analysis can reveal opportunities, risks, and areas for innovation.
Social Key Performance Indicators (SKPIs) help make impacts visible. While some SKPIs have clear monetary value (e.g., affordability), many, such as community education, inclusive urban design, or positive cityscape impacts, are intangible yet vital. These non-monetary benefits often create ripple effects, strengthening community trust and acceptance.
Internal drivers include competitiveness, talent attraction, and stakeholder relationships. External drivers encompass a range of factors, including legislation and procurement requirements, as well as growing societal expectations for fairness, transparency, and justice. Together, they create both pressure and opportunity for district heating companies to act.
Municipalities can set the framework for social sustainability through legislation, procurement criteria, and integrated planning. District heating companies, in turn, can internalise these drivers, proactively improve social impacts, and build partnerships that strengthen their business case. Failure to engage risks reputational harm and competitive disadvantage.
Incorporating social sustainability shifts the boundaries of a business model. It fosters new partnerships, sector coupling, co-investment opportunities, and deeper community anchoring. These people-centred approaches enhance resilience, acceptance, and long-term competitiveness.
Social sustainability is less about technology and more about relationships, collaboration, and a holistic view of energy in the urban context. For both municipalities and companies, embracing this dimension strengthens ties to the community, supports sector integration, and unlocks new business opportunities.
https://www.linkedin.com/in/kristina-lygnerud-6b36791/
Johanna Ayrault
PhD in Management Science, MSc in Executive Engineering https://www.linkedin.com/in/johanna-ayrault-ab998b134/
https://www.linkedin.com/in/hanne-kortegaard-st%C3%B8chkel-1a07123/
Read more about the project here
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