CCG

Center for Corporate Governance

NFGS III

Nordic Finance and the Good Society III

THE PROJECT

The project aims to lead the frontier of research on financial institutions, markets and sustainability in the Nordic region. With 6 cutting edge research streams we aim to tackle current challenges at the core of the financial sector’s future. The new phase of Nordic Finance and the Good Society project launched in the late stages of 2023.

ESSENTIAL QUESTIONS AND CHALLENGES FOR THIS PROJECT

The financial sector in the Nordic countries is again being challenged at an unprecedented level, with financial turbulence across many asset classes, different actors coming from an environment with negative interest into record high inflation, geopolitical headwind and mounting pressure that the green transition must be financed and controlled with maximum regulatory uncertainty. Furthermore, management as well as shareholders are under increasing stakeholder pressure to determine what the future purpose of the sector should be and why the next generation should pursue a career given these framework conditions.

These headlines capture the key topics and themes discussed in the project:

  1. Financial Turbulence in Nordic Countries:
    • Challenges in the financial sector.
    • Unprecedented levels of financial turbulence.
    • Negative interest rates, record-high inflation, and geopolitical headwinds.
  2. Competitiveness of Nordic Countries:
    • Nordic countries among the richest globally.
    • Denmark rated number one in global competitiveness.
  3. Sustainability of Nordic Capital Markets:
    • Overview of Nordic capital markets.
    • Questions on sustainability and financing models.
  4. ESG Integration in Financial Institutions:
    • Increasing number of institutions integrating ESG or CSR objectives.
    • Challenges in balancing profit maximization and social value creation.
  5. Risk of Greenwashing and Regulatory Challenges:
    • Risks of greenwashing allegations for Nordic financial institutions.
    • Challenges in unclear regulations and wrong guidance.
  6. EU Initiatives and Political Pressures:
    • EU initiatives on Directors’ Duties and Sustainable Corporate Governance.
    • Political pressure on listed firms, EU taxonomy implementation confusion.
  7. Impact of Political Winds on Nordic Financial Institutions:
    • Shifting political winds in Europe affecting Nordic financial institutions.
    • Potential impact on sustainable financing, investment models, and board work.
  8. Effectiveness of Financial Sector Regulation:
    • Wave of regulation in the financial sector.
    • Questions about the effectiveness and impact of regulation.
  9. Attracting the Next Generation to the Financial Sector:
    • Challenges in attracting the next generation to the financial sector.
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