Greening the Financial Sector - Bridging Science and Practice to Inform Financial Decisions
|Coordinator||STIFTELSEN STOCKHOLM SCHOOL OF ECONOMICS (SSE) INSTITUTE FOR RESEAR - Stockholm School of Economics Institute for Research|
|Funding from Vinnova||SEK 2 300 000|
|Project duration||February 2017 - January 2019|
|Venture||Financial Market Research|
Purpose and goal
The project has created an innovative and solution-oriented research environment in which academia and financial sector have had the opportunity to meet. We have done this through an Action Lab where we brought together companies and analysts for improved ESG communication; designed and delivered a unique executive education program in sustainable finance; and demonstrated effects of shareholder engagement and divestment in fossil companies and the power sector.
Expected results and effects
1) Action Lab on Quarterly Conference Calls: We have collaborated with three companies to include ESG in their 3Q2017 call. Only one of them succeeded: Earnings calls are highly ritualized, and finance and ESG tend to not connect internally. 2) Executive Education on Green Finance: We have successfully designed and delivered a program in sustainable finance, which will be offered again. 3) Investing for Impact: Influence dialogues have had a limited direct effect on the power companies´ climate work, while divestment from fossil fuels had some effect on capital flows to companies.
Planned approach and implementation
1) Action Lab: Interviews with top management and analysts. Workshop with the companies was held before earning call. 2) Executive Education: Program delivery to 28 participants on 6-7 Nov 2018. 3) Investing for Impact: Engagement: We analyzed a database of all communication in 20 shareholder-company dialogues 2015-2018. Divestment: We analysed direct lending as well as equity and bond underwriting across 33 countries from 2000 to 2015.