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Impact investing – bang for the buck

During the past decade, a shift in how we view the corporate sector has taken place. While profit and return remain important, other aspects such as sustainability, responsibility, ethics, and impact are becoming increasingly important. It is no longer business as usual, but business as a means to drive change and impact.

While the integration of ESG factors in financial products and services has become somewhat of a hygiene factor for modern companies, impact investments take it one step further by covering a wide range of sometimes complex social and environmental objectives and aim to build a better future. Impact investing, coined by the Rockefeller Foundation in 2007, generate measurable, beneficial social or environmental impacts as well as the financial return.

According to the 2019 Annual Impact Investor Survey by the Global Impact Investing Network, the impact investing industry is growing and respondents answered that they were motivated to make impact investments because of – rather than in spite of – the potential financial return. Interestingly, over 90% of respondents to GIIN’s survey reported performance in line with or even exceeding both their impact and their financial expectations.

The challenges ahead are too many and too large to be solved merely by the public sector and we need passionate entrepreneurs teaming up with sustainable financial institutions to solve these

Last year, Nordea joined forces with some of Sweden’s biggest financial groups and representatives from the public sector and created the Swedish National Advisory Board for Impact Investing. Nordea’s Ylva Hannestad, Deputy Head of Group Sustainable Finance, is a member of the Swedish NAB’s board.

Ylva Hannestad

Ylva Hannestad, Deputy Head of Group Sustainable Finance at Nordea

”We see that the future holds great challenges and we need innovative, pioneering solutions. The challenges ahead are too many and too large to be solved merely by the public sector and we need passionate entrepreneurs teaming up with sustainable financial institutions to solve these,” says Ylva Hannestad. ”The effects of the COVID-19 pandemic this year has made it obvious that the impact investment community is needed to support those most vulnerable to its sometimes devastating consequences,” continues Ylva Hannestad and stresses that supporting and building the impact investing ecosystem is  important for a large bank aiming to have a positive contribution in society  such as Nordea.

As consumers, we demand bang for our buck in perhaps more holistic ways than ever before. Profits and returns are no longer enough, we expect the companies we invest in to reflect and share our values and consideration for societies and the planet. Many of us are on the lookout for organic or fair products, striving to impact the world through the consumption choices we make. As banking customers, we are dependent on the sustainable offerings our bank provides in order to make greener financial choices. At Nordea, we want to make it easy for our customers to make sustainable financial choices that have a positive effect on the planet and society.

Here you can read more about the sustainable products we currently offer and if you’re curious about our journey towards becoming a more sustainable bank, have a look in our latest sustainability report.

 

 

 

 

 

 

 

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