Henrik Husman, Nasdaq Helsinki 16.1.2018, Assessing climate impacts of investments and climate-related financial risks, Sitra

1. Opening keynote
Henrik Husman
President of Nasdaq Helsinki
Sitra’s event:
Assessing climate impacts of
investments and climate-related
financial risks
January 16th, 2018

2. ESG Related
Investments and
ESG Data Reporting
Growing Fast

3. S&P 500 Companies Sustainability Reporting (G&A Institute, 2017)
The Rise of Sustainability Reporting
0
3

4. The Rise of ESG-Themed Investment in Europe
4 ESG REPORTING & THE MARKETS
European SRI Study
Eurosif (2016)

5. 5
A global survey on sustainablity reporting,
incl. 55 stock exchanges
Companies in Helsinki are World Class in ESG Reporting

6. Timeline source: PwC’s Corporate Responsibility Barometer 2017
A total of 544 companies and organizations were assessed, from the year 2016, published by June 2017
Sustainability Reporting in Finland
4/5 of the 100 largest
companies and
organizations in
Finland are reporting
on ESG criteria, others
not that active
Half of the companies
listed on Nasdaq
Helsinki main market
report on ESG
(2016 PwC report)
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7. Our ESG Commitment

8. Nordic Exchanges are Strong:
World Class Long Term Returns
Annualized Real Rate of Return for Equity Markets 1966-2016 (51 years)
Source: Credit Suisse.
All indicies are based on time series from (1966 - 2016)
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
TOP 20
Rank Country Annual return %
1 Sweden 8,62%
2 Finland 8,60%
3 South Africa 7,59%
4 Denmark 7,35%
5 U.K. 6,53%
6 Netherlands 6,43%
7 Norway 6,40%
8 Ireland 6,16%
9 Europe 5,86%
10 Australia 5,79%
11 Germany 5,62%
12 Belgium 5,57%
13 France 5,56%
14 New Zealand 5,55%
15 Switzerland 5,45%
16 USA 5,41%
17 World-ex U.S. 5,27%
18 World 4,96%
19 Canada 4,69%
20 Spain 4,45%
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9. Future of ESG Reporting –
We Believe Investor Interest Will Continue to Increase
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10. Working for better
markets

11. In 2015, Nasdaq Stockholm launched the first market for sustainable corporate bonds in the world
• Development so far has been driven by sustainable or ‘Green Bonds’.
• However, there is a growing progression towards sustainable bonds
with a wider focus on environmental and/or social positive impact.
Sustainable bonds are well suited for investors in search for sustainable investments
• The use of proceeds is earmarked for sustainable projects,
which makes it easy for investors to follow and clearly see what their investment achieved.
• Climate Bonds Initiative estimates that in order to reach current climate goals, the sustainable bond market
needs to grow to 1 trillion US dollars a year by 2020 (84 billion dollars raised in 2016).
Sustainable Finance
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12. ESG Reporting Guide
March 2017
Pilot Program for ESG Reporting
As of November 2017
• To test the guide and develop
ESG reporting practices
• Altogether 36 companies from all markets
(17 from Finland)
• Voluntary, flexible and
encouraging approach for
Nordic and Baltic markets
• Support tool for listed
companies to assist them with
ESG reporting.
• Especially for SMEs planning to
initiate ESG reporting.
• Not a new framework:
The guide does not add,
set aside, replace or substitute
any obligations or standards.
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13. Nasdaq Helsinki –
the First Green Office Exchange in the World
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WWF's Green Office = environmental program for offices
• Nasdaq Helsinki was rewarded with a Green Office Diploma in December 2010
• For personnel, Green Office stands for fun and daily actions
for a better tomorrow
How to reduce carbon footprint?
• Saving energy, traveling less by plane, Savings so far:
adding remote work and
carbon-free commuting
• Carbon footprint fully compensated:
• Nasdaq Helsinki is the only carbon
neutral Stock Exchange
in the Nordic region.
Electricity
consumption
- 60%
in seven years
Paper
consumption
- 66%
in seven years
Carbon
footprint
- 30%
in six years

14. THANK YOU

15. Disclaimer
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any of its affiliates or subsidiaries (collectively “Nasdaq”) assumes any responsibility for any errors or omission contained herein. The information
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decisions taken by any party, based on this information.