Challenge Areas: Finance for Greater Good – Nordea

Challenge Areas: Finance for Greater Good – Nordea

Disrupting sustainable finance models

The last four to five years have witnessed an explosion of ESG investments. The investing community has increasingly incorporated ESG performance of businesses in their investment strategies (84% of investors are at least “actively considering” integrating ESG criteria according to Morgan Stanley). Despite that, we are lagging in financing the SDGs. There is a need to disrupt the current financing models and drastically accelerate the investment in initiatives that will help achieve the SDGs.

 

Democratising impact investing

Millennials are more likely to invest in companies with social or environmental missions, that any other generation (77% high-net-worth millennials currently own or are interested in so-called impact investments according to Bank of America). Despite that, this is still an emerging discipline and no solutions at scale has successfully been implemented. There is a new to find new ways to democratise impact investing opportunities that included a wider population.

 

Measuring impact and compensating emissions

Impact investments require verified data to validate outcomes and to improve how impact is realized. Moreover, accurate impact measurement increases accountability and helps improve efficiency of delivery. Despite that, there are few approaches to produce, measure and value impact-related data at scale. There is a need to create new strategies that are cost-effective and useful, that support the efficient allocation of resources and improve the way we compensate for the damage we are causing.

 

Raising awareness and understanding of sustainable finance

The last four to five years have witnessed an explosion of ESG investments. The investing community has increasingly incorporated ESG performance of businesses in their investment strategies (84% of investors are at least “actively considering” integrating ESG criteria according to Morgan Stanley). Despite that, low public awareness and understanding of sustainable finance from both household customers and corporate customers is hindering its uptake. There is a need to find new ways of building consumer awareness and knowledge of sustainable finance.

Xynteo
communications@xynteo.com
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