Podcast Summary

Podcast: In Good Company with Nicolai Tangen
Host: Nicolai Tangen, CEO of Norges Bank Investment Management
Guest: Jennifer Scanlon, President and CEO of UL Solutions
Episode Title: UL Solutions CEO: Evolving Safety Testing, AI, and Consumer Protection
Date: March 19, 2025

Overview

This episode features a deep-dive conversation between Nicolai Tangen and Jennifer Scanlon, CEO of UL Solutions. They explore the evolving world of safety testing in consumer and industrial products, the impact of AI and technology, global regulatory complexity, and leadership insights from Scanlon’s journey helming a 130-year-old company through its IPO and beyond.

Key Discussion Points & Insights

1. What UL Solutions Does

• Broad Product Testing: UL Solutions tests both industrial (B2B) and consumer (B2C) products, covering everything from household appliances to industrial equipment and medical devices.
• Testing Examples:
  • Physical impact (drop tests from six feet, anvils on helmets)
  • Fire safety (lighting materials on fire at their labs)
  • Water resistance (boots in water baths with sensors)
• “Anything you could possibly think of to test a product, we probably do.” — Jennifer Scanlon [01:56]

2. Why the Testing Market Is Growing [02:11–03:26]

• Consumer Transparency: More consumer access to information increases demand for safer and more sustainable products.
• New Risks: New materials and the integration of AI/software into products create "second order effects" that require updated testing standards.
• Examples:
  • Concern over volatile organic compounds in household products
  • AI in children’s toys and industrial controls
  • Outdated testing standards for things like wire and cable
• “It’s this exponential explosion of the things you have to think about when you’re testing product safety.” — Jennifer Scanlon [03:14]

3. AI and Embedded Technology in Products [03:31–05:41 & 21:12–25:45]

• Emerging Concerns:
  • AI in everyday items, e.g., kids’ toys and industrial systems
  • Challenge of validating safe and ethical AI algorithms
• Testing Approach:
  • Working with customers to anticipate regulatory requirements
  • Simulations and data-driven analysis
• AI-Verified Mark: UL Solutions launched a verification mark for AI-enabled PCs and servers, establishing a 10-category checklist for safety and data validation.
  • “There aren’t any standards or real regulations around [AI in products] today. What should they be thinking about?” — Jennifer Scanlon [22:00]
• AI for Efficiency: Use of AI to automate data entry for product attributes and to predict material performance in accelerated testing scenarios.

4. Global Regulatory Complexity [05:41–10:34]

• US vs. Europe: US is more heavily regulated (especially with third-party testing) than other regions.
• Harmonization & Localization:
  • Manufacturers want to streamline testing for global compliance
  • Even US states can have unique requirements (example: Minnesota’s rules on cadmium/lithium in products)
• Global Presence: 15,000 employees in labs across 110 countries. Labs are equipped to test for multiple markets’ standards.

5. Advancing Cybersecurity and Battery Safety [10:46–12:43]

• US Cyber Trust Mark: UL Solutions is the lead administrator for a new cybersecurity safety mark for connected products.
  • “Giving consumers a lens into the fact that products they’re purchasing have passed certain validation and standards to make them safe.” — Jennifer Scanlon [11:10]
• Lithium-Ion Battery Fires: Collaboration with New York City to create safety standards that were enacted into law, significantly reducing e-bike battery-caused deaths.

6. Global Trade, Supply Chains, and Retesting [12:43–14:50]

• Trade Tensions: Customers alter their supply chains in response to tariffs, often requiring retesting to new standards as suppliers or components change.
• "We just stay by our customer side to help them maneuver through the decisions they’re making in response to the shifting tariff climate.” — Jennifer Scanlon [13:18]

7. Competition and Reputation [13:47–16:08]

• Fragmented Industry: Tens of thousands of competitors globally, from niche academic labs to major companies.
• Why Customers Choose UL:
  • Brand reputation and technical expertise
  • Speed to market and facilitation (not bottlenecking)
  • “Our customers… want to know they can get their product to market quickly and safely.” — Jennifer Scanlon [14:55]

Leadership and Culture

8. Transforming UL Solutions [16:08–18:58]

• From Quiet To Public: Scanlon joined in 2019, led UL through a transition from a “sleepy, under-the-radar” company to a rebranded, publicly listed company.
• Cultural Shift:
  • Listing improved talent attraction, extended branding, and enhanced growth prospects.
  • “Being listed has taken us above the radar and helped us attract talent. It’s helped extend our brand and our value with customers.” — Jennifer Scanlon [18:28]

9. Data Analytics as a Differentiator [18:58–21:12]

• Software Revenue: ~10% from software solutions, helping customers manage chemical compliance and supply chain risks.
• Data Leverage: Billions of products’ data—used for insights into sustainability, regulatory compliance, and to support new product development through digital twins and simulation.

10. Leadership Philosophy [25:45–30:50]

• Evolution: Scanlon’s leadership style evolved from internal promotion (USG Corp) to leading a new team and industry at UL.
• Decisiveness: Experience increases decisiveness and reduces patience for known issues and repeated patterns.
  • “The longer you’re in this chair, the less patient you become.” — Jennifer Scanlon [27:35]
• Voice and Impact: Learned the power of her words and intent—importance of deliberate communication.
  • “People never forget the way you make them feel.” — Jennifer Scanlon [33:14]
  • Story about complimenting an employee’s jacket, learning how her praise traveled and impacted team morale [29:01–30:50].
• Balancing Critique and Praise: Inspired by her father (“sometimes you gotta throw the jacket”)—use strong language/gestures sparingly for impact.

11. Fostering Honesty and Connection [34:28–35:38]

• Candid Feedback: Difficulty increases with seniority, so senior leaders must deliberately seek honest input.
• Corporate Culture:
  • 130 years of tradition but evolving to balance risk-aversion with innovation
  • Strong sense of mission: “Over 80, I think 85% of our employees said that our mission matters to them personally. Working for a safer world matters to them.” — Jennifer Scanlon [36:25]

Memorable Moments & Quotes

• On the Weirdest Testing:

  • “We stacked up 2 million soda pop cans... and dropped a lighted piece of paper. Instead of collapsing, they exploded outwards—failed test, but a lot of information for the customer.” — Jennifer Scanlon [07:56]

• On Safety Mindset:

  • “My daughters said the headline should be: Mom, Safety Freak Runs Safety Company.” — Jennifer Scanlon [37:18]
  • “Three points of contact. Absolutely. ... If you’re walking down a hallway with me... and you’re not holding the rail, you’re going to hear me say, ‘Three points of contact. It will save your teeth. Maybe a concussion.’” [38:42]

• On Early Influences and Drives:

  • “When I was a kid, I organized the neighborhood into teams or games or put on the show. I’ve always wanted to feel like I was making a difference.” — Jennifer Scanlon [39:16]

• On Career Advice:

  • “Take the time to listen. ... You will learn what matters and you will learn what motivates and drives people.” — Jennifer Scanlon [40:51]
  • “Become a really good project manager. Figure out first and foremost what problem are you trying to solve... because so many times people solve the wrong problem.” — Jennifer Scanlon [41:45]

Timestamps for Key Segments

• Product Testing 101: [00:50–02:11]
• Growth of the Testing Market: [02:11–03:26]
• AI & Evolving Standards: [03:31–05:41, 21:12–25:45]
• Regulatory Complexity: [05:41–10:34]
• Cybersecurity & Battery Safety: [10:46–12:43]
• Supply Chain & Retesting: [12:43–14:50]
• Competition: [13:47–16:08]
• Transition to Public Company: [16:08–18:58]
• Leadership & Communication: [25:45–30:50]
• Positive Culture & Mission: [35:38–37:05]
• Safety Mindset Stories: [37:05–39:12]
• Career Advice: [40:51–42:16]

Wrap-Up

Jennifer Scanlon’s candid discussion with Nicolai Tangen reveals the constant evolution required to keep products—and people—safe in a tech-driven global economy. The episode weaves together the practicalities of product testing, the rise of AI, global standards, the importance of brand and speed in a legacy business, and profound reflections on leadership and culture in a mission-driven enterprise.