🌿DNB Sustainable Finance Seminar🌿
On Tuesday, we welcomed 200 clients to our office to explore how financial markets can further support the #sustainable #transition, especially in light of current economic and political headwinds.
💡ESG is extremely important and nothing special💡
Our keynote speaker, professor Alex Edmans (London Business School), elaborated on his proposal for a fundamental shift in #ESG practices, focusing on ‘rational sustainability’. Integrating ESG risks and opportunities in investment practices is important for building long-term value creation, but it shouldn't be done in isolation from other value drivers and it’s not an automatic guarantee for higher returns. Together with Edmans, Ida Lerner (CFO of DNB) and Nina Ahlstrand (DNB Markets) we further explored the role of banks and investors in the transition, and the necessity of avoiding sustainability becoming a mere compliance and box-ticking exercise. Instead, it must be integrated in business models and support long-term strategic goals.
🏅Finding and scaling sustainable solutions🏅
Some companies are clear transition winners, whilst others offer scalable sustainable solutions. Are these companies rewarded by the capital markets? Is there a capital gap, or are we just lacking business model viability? Together with Eivind Fliflet (Norges Bank Investment Management), Marcus Svedberg (Folksam), Sven Faye Lindstad (Altor Equity Partners), Helene Kvilhaug Brøndbo (DNB Markets), and moderated by Anne Margrethe M. Platou (DNB Markets), we discussed how to identify transition winners and what investors want to see in terms of business model and market positioning to get a green light for investing.
⏭️The next phase of sustainable finance⏭️
♻️Banks and investors are becoming more mature in their approach to sustainability. Climate considerations have long been a key priority, but we are now exploring how to support the transition from linear to circular business models. Silje Lambrechts (Summa Equity), Camilla Skjelsbæk Gramstad (Elkjøp Nordic AS (part of Currys plc) and Stian Ueland, CFA (DNB Asset Management), moderated by Ulrik Hallén Øen (DNB Markets), reflected on how consumer demand and regulations are turning #circularity into a new value proposition for investors, with KPIs such as ‘circular share of business revenue’ becoming increasingly interesting.
⚓From a clear focus on #greenfinance, it is becoming evident that we need to find new solutions for financing the #transition. Henriette Kästel Bergesen (Odfjell SE) shared her experiences from launching a framework for #transitionfinance, financing investments needed to progress on their climate targets. Marthe Lamp Sandvik (DNB) also elaborated on DNB’s strategy of being a driving force for sustainable transition, and our recently launched framework for #transitionloans, further supporting clients in high-emitting sectors on their transition journeys.
