The 'why' comes before the 'how'
He described the movement towards societal impact as stemming from from the paradigm shift away from transactional banking towards relationships and purpose. This shift, he said, requires investors to investigate how they will incorporate ESG into their investment decisions
We are not in a transactional world but in a relational world that requires transparent communication and trusting relationships, where positive societal impact through investment is increasingly expected. The purpose of investment was always to make money. But there is no social utility and that sort of purpose. Investors must ask themselves, what is the ultimate goal - the why? Making money, sure, but through which means and to what ultimate end? The purpose of investment was always to make money. But there is no social utility and that sort of purpose. Investors must ask themselves, what is the ultimate goal - the why?Colin Melvin
Founder, Arkadiko Partners
Figuring out the why and road mapping how to achieve the desired outcome rests on the shoulders of customers, investors and companies alike, and it paves the way for a new way of investing.
Ulrika Hasselgren, Global Head of Sustainability & Impact Investment at Danske Bank, talked about this as she unfolded Danske Bank’s new strategy for sustainable investment and the important of having ESG embedded into the investment processes.
In 2018 Danske Bank, developed and introduced a new strategy for Sustainable Investment. We want to bring ESG inside our investment processes, our products and our advisory. This is easily said but hard work to do. It is a great challenge but we are committed. The appetite in the market for impact and measuring impact is growing. We believe in active ownership where we as an investorcan influence change and improvement, just as our customers and their expectations similarly impact us. It is a healthy dynamic of expectations that moves us all forward.Ulrika Hasselgren
Global Head of Sustainability & Impact Investment, Danske Bank
More on ESG
Environmental criteria may e.g. consider how a company performs in relation to its environmental footprint. Social criteria may e.g. examine how a company manages relationships with employees, suppliers, customers and the communities in which it operates. Governance deals mainly with a company’s leadership, executive pay, audits, internal controls and shareholder rights.
Read more about Danske Bank’s approach to sustainable investments