“The financial market is the climate’s best friend”
Published: 12 July 2023, 12:54 Updated: 17 July 2023, 15:06Savings, inflation and uncertainty characterize the markets right now. Then the expert advises companies to invest more in sustainability when the winds turn. – The financial market is the climate’s best friend, says Annika Winsth, chief economist at Nordea.Game-set-change, the path to a more sustainable society – read more and register hereIn connection with the Nordea Open in Båstad, Nordea invites you to a series of on-site and online panel discussions with profiles from the business world. One of the topics is sustainability. In an age where companies are turning every last penny, it can be easy to pull back on investments that don’t have an effect at the moment. But according to Annika Winsth, this is not a possible path. – Historically, crises have been a challenge for sustainability focus, but today we have come so far that there is no going back. Companies that don’t change simply won’t exist in the future as they won’t get access to capital, she says. So what has made the companies urged to stay the course even though the economy is faltering? Somewhat simplistically, it can be said that business has created important incentives: – Today there are completely different requirements than before. If you are going to borrow money for the business, you need to show how you work with sustainability issues, otherwise it will be difficult or expensive to get access to capital. There is not a bank that wants to lend or invest money in companies that pollute and do not have a plan on how to improve them for the simple reason that then the bank is not classified as sustainable. All industries are evaluated, she says.Peter Nilsson, CEO of the industrial group Trelleborg, also does not believe that sustainability issues can be brushed aside despite a pressured situation around the world: – Companies have already shifted towards sustainable development regarding both products and processes. That development will not be stopped because of geopolitical tensions, pandemics or recessions, he says and continues: – Our medical equipment and for dosing medicines or technology for pipe renovations that mean less water is wasted are needed regardless. At the same time, Peter underlines Nilsson that companies can only do a certain part, the public sector must also take the initiative: – Political signals are needed that create security for investments in the environment, climate and energy supply. A stable energy supply system, fewer complicated regulations and taxes that exist in the climate and environmental area is desirable. Precisely the regulations are something that can make sustainability work more difficult for companies. Winsth believes so and raises the dilemma that it is becoming increasingly complicated and expensive to meet the requirements: – Within the EU, intensive work with regulations is now underway and that is very good. But not least small and medium-sized companies need simple and clear guidelines for what applies in order to be classified as sustainable. Smaller companies do not have the opportunity to employ a sustainability officer, it becomes too expensive. The risk is therefore that the regulations will become such a big burden that the companies will not be able to comply. Society has a very big responsibility to simplify the work for companies to deal with all the rules that are now in place. She points out that sustainability cannot only be measured in environmental and climate goals, there is also a social aspect that is becoming increasingly important:- Now investors are increasingly looking at, for example, human rights, but it is also about people having access to work, education and, ultimately, food on the table. If this is missing, there is no motivation. If we are serious about sustainability, we need to take into account that people have the power to change. Winsth believes that sustainability issues are global and the regulations should also be so to the greatest extent possible: – The EU is far ahead in terms of regulations in a global perspective, but unfortunately, we see more and more tendencies towards protectionism in this matter. Countries like the US attract subsidies if the production is placed there. It is a very worrying development, not least for Europe.Annika Winsth and Peter Nilsson in a panel discussion at the Nordea Open in Båstad – read moreFACTS: PANEL CONVERSATION AT NORDEA OPENGame Set Change – the way to a sustainable societyFriday 14 July, 10.10-10.50 at Hotell Skansen in Båstad or onlinePeter Nilsson, CEO Trelleborg, Henrik Hallin, CFO Stena Addactum, Annika Winsth, chief economist Nordea, and Martin Persson, head of the business area large companies and institutions and part of Nordea’s group management, the conversation about sustainability continues. Welcome to Båstad or sign up for the webinar free of charge here The article is produced by Brand Studio in collaboration with Nordea and not an article by Dagens industri
