GEDB and Stockholm Resilience Centre are partners in new 47 SEK million center to promote sustainable finance. The 5-year Vinnova funded center aims to boost focus on social and environmental sustainability of Swedish and international financial markets.

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The new center, Sustainable Finance Lab (SFL), is designed to create an internationally leading competence centre for sustainable financial markets. It will focus on, among other things, new thinking about risk and opportunities, sustainability norms and policies as well as transformation, technology and innovation.

Founding partners of the Sustainable Finance Lab are GEDB and Stockholm Resilience Centre, together with the Royal Swedish Institute of Technology (KTH) in Sweden, Luleå University, Gothenburg University, Stockholm School of Economics Institute for Research, and the Swedish Environmental Research Institute.

Sweden’s most influential researchers

The programme is funded for five years with the possibility of an additional five-year period, subject to evaluation. During the first five years, SFL will study how various financial decisions and products may lead to positive or negative impacts on both society and the environment.

SFL includes some of Sweden’s most influential researchers in environmental science and business sustainability studies. The management of the new programme is made up of two centre directors, and four vice directors. GEDB executive director Beatrice Crona will act as the vice director, with particular focus on science-based assessment of impacts.

“A great challenge with current financial market standards is that they do not take into account several social and environmental impacts,” says Beatrice Crona.

“Limited attention to these kinds of “externalities” has led to inefficient pricing in the market, and has made unsustainable projects more financially attractive than they are from society’s point of view. We are extremely excited about being able to push the research forward to address these pressing issues.”

Deep engagement with stakeholders

In addition to mobilizing a wide variety of resources within the respective partners’ networks, Sustainable Finance Lab will also involve a long range of diverse partners from industry, investment and civil society including:

Danske Bank

Swedish Financial Supervisory Authority

Swedish Central Bank

Nasdaq OMX Stockholm Exchange

Swedfund

World Savings Bank Institute

Skanska

WWF

An advisory council has also been put in place with the following members: Robert Eccles (Said, Oxford University), Karolina Ekholm (Stockholm University), Caroline Flammer (Boston University), Johan Rockström (Potsdam Institute for Climate Impact Research and University of Potsdam), and Darya Shaked (WeAct Venture).