3rd July 2023


Knowledge about impact has effects on society

Sustainable investments have been a growing focus area for a long time, especially for institutions and foundations, and now we are seeing growing interest among retail investors, too. This is especially apparent among the younger generation, which sets great store by ESG metrics in their investment decisions.

Carnegie is the advisor that has participated in the highest number of initial public offerings on the European market in recent years. In 2021, which was one of the most active years in history, Carnegie broke all records by participating as an advisor in 111 ECM transactions. Sustainability has become increasingly important for investors, and Carnegie has worked with many clients to integrate sustainability goals into their overall strategy when looking for investors. Lena Österberg, Head of Sustainability Strategy & Advisory supports Carnegies clients with their work to align strategy with ESG related topics and goals ahead of the company’s IPO.

“Knowledge about the impact of capital allocation has grown and more investors want to understand and influence the effects on society which will have a substantial impact in the long run,” says Lena Österberg. “Sustainability and ESG aspects are included early in the process leading up to an IPO, both as part of the research and our assessment of the company.”

Lena explains the importance of involvement in every aspect of a company’s work, from capital raising and market listing to the research process: “We come in early in a process to educate about sustainability and governance, review how well the strategy aligns with sustainability goals and the impact on various stakeholder groups. Ahead of every IPO, we provide advice on the the sustainability sections to identify both risks and opportunities. After the IPO, we continuously track how companies are delivering on their sustainability targets and provide relevant and reliable data to investors.”

In parallel with the increased interest, several new regulations related to corporate reporting and disclosures have begun to take shape, including the EU Corporate Social Reporting Directive (CSRD). The directive will be applied from 2024 to large companies currently required to issue sustainability reports and from 2026 for listed small and medium sized companies. ”It is also good that many small and medium cap companies are given a bit more time to comply, as comprehensive disclosures are going to be required to make it possible to revise the sustainability report and include it as part of the board of directors’ report” says Lena Österberg

“The new regulations are incredibly positive for our industry and are going to make it easier to analyse and compare companies.”

The demand for ESG advisory continues to grow and Carnegie works proactively with initiatives to increase knowledge in the area, both internally and externally.

“We advise clients about how the EU Taxonomy and other ESG related regulations are affecting demand in the market or their planned transactions. For example, clients intending to list a company on the stock market are stepping into a new world of requirements and expectations related to sustainability. They need advice on matters including ESG, where we have the strong knowledge”, says Tony Elofsson, CEO of Carnegie.

Carnegie Sustainability Award

Since 2019 Carnegie has awarded companies for their sustainability work with the purpose of shining a light on sustainability metrics that create shareholder value and presenting good examples to inspire companies and investors.

“Companies with ESG integrated into their business models and with ambitious sustainability targets continue to capture investor interest. Several new regulations aiming for market transparency will impact investor decisions even more in the future and make companies like the winners of the 2023 award attractive investments,” says Lena Österberg, Head of Sustainability Strategy & Advisory.

“The winners of the 2023 award; Novo Nordisk, AF Gruppen and Kempower are good examples of companies that are not only successful in integrating sustainability in their business model, but they have also shown a high ambition to make a positive impact and reduce their environmental footprint,” Österberg continues.

Read more about the award https://www.carnegie.se/nyheter/novo- nordisk-af-gruppen-and-kempower-winner-ofcarnegie-sustainability- award-2023-2/