We’ve asked some of our speakers from across the world about sustainability reporting and its challenges, their best sustainability hacks and more. Read on for our first interview with Lars Løddesøl, Group CFO and Executive Vice President at Storebrand ASA.
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How can we collectively advance sustainability reporting and
sustainable finance?
“With better and more consistent reporting, it will be easier for investors to select sustainable investments - according to their individual preferences, and with improved transparency across different investment opportunities and fund providers. We can support this development through our own reporting, by demanding better reporting from the companies we invest in, and by supporting leading frameworks in sustainability reporting.
sustainable finance?
“With better and more consistent reporting, it will be easier for investors to select sustainable investments - according to their individual preferences, and with improved transparency across different investment opportunities and fund providers. We can support this development through our own reporting, by demanding better reporting from the companies we invest in, and by supporting leading frameworks in sustainability reporting.
In your opinion, what is the biggest challenge in sustainability
reporting and sustainable finance at the moment?
“The biggest challenge is probably the number of different standards and the amount of work necessary to obtain comparable numbers. To get a sustainability rating, companies need to spend significant resources on non-consistent and qualitative reporting. Furthermore, the different rating methodologies emphasize different elements which means that a company can be "sustainable" according to one rating and not according to another. A more standardized reporting framework would help solve this challenge.”
Are there any best practices, industry collaborations, or measurements
you would like to highlight?
“The Task Force on Climate-related Financial Disclosures (TCFD) reporting standard is one that focuses on the physical risk of not making the green shift, and the transition risk by making the necessary changes. The TCFD centers on what is relevant to each company, both in terms of risks and opportunities. Storebrand has been a part of the work to make the TCFD the golden standard for all Nordic companies. The Norwegian government and Oslo Stock Exchange now support the framework, and we hope more companies and institutions will follow. This standard is also likely to be central in the work of the International Sustainability Standards Board (ISSB) in developing new International Financial Reporting Standards (IFRS) for sustainability reporting.”
What do you consider to be the future of sustainable finance and/or
reporting?
“I can't really see a green transition and a sustainable world without sustainable finance at the core of these changes. The green transition requires massive investments, something which can only happen through sustainable finance. Both from a regulatory as well as a customer demand point of view, there is no doubt that sustainability reporting is imperative to facilitate the green transition and its financing.“
What's your best sustainability hack?
“From a professional point of view, I would encourage everyone to look at their own business and consider where you can best make an impact. What are your externalities, how is your supply chain, and where can you actually make a difference for the better, for the planet, and
for your stakeholders?”
“On a private note, we should all be conscious consumers in every aspect of daily life, choosing sustainable products and alternatives where we can. This goes for everything from choice of transportation, what products you buy, to your savings, your pension plan and your sustainable investments.”
reporting and sustainable finance at the moment?
“The biggest challenge is probably the number of different standards and the amount of work necessary to obtain comparable numbers. To get a sustainability rating, companies need to spend significant resources on non-consistent and qualitative reporting. Furthermore, the different rating methodologies emphasize different elements which means that a company can be "sustainable" according to one rating and not according to another. A more standardized reporting framework would help solve this challenge.”
Are there any best practices, industry collaborations, or measurements
you would like to highlight?
“The Task Force on Climate-related Financial Disclosures (TCFD) reporting standard is one that focuses on the physical risk of not making the green shift, and the transition risk by making the necessary changes. The TCFD centers on what is relevant to each company, both in terms of risks and opportunities. Storebrand has been a part of the work to make the TCFD the golden standard for all Nordic companies. The Norwegian government and Oslo Stock Exchange now support the framework, and we hope more companies and institutions will follow. This standard is also likely to be central in the work of the International Sustainability Standards Board (ISSB) in developing new International Financial Reporting Standards (IFRS) for sustainability reporting.”
What do you consider to be the future of sustainable finance and/or
reporting?
“I can't really see a green transition and a sustainable world without sustainable finance at the core of these changes. The green transition requires massive investments, something which can only happen through sustainable finance. Both from a regulatory as well as a customer demand point of view, there is no doubt that sustainability reporting is imperative to facilitate the green transition and its financing.“
What's your best sustainability hack?
“From a professional point of view, I would encourage everyone to look at their own business and consider where you can best make an impact. What are your externalities, how is your supply chain, and where can you actually make a difference for the better, for the planet, and
for your stakeholders?”
“On a private note, we should all be conscious consumers in every aspect of daily life, choosing sustainable products and alternatives where we can. This goes for everything from choice of transportation, what products you buy, to your savings, your pension plan and your sustainable investments.”