– This investment reflects the growing importance of sustainability issues in financial markets and the recognition that workable solutions will build on science and practical expertise. We are proud that Vinnova has entrusted us with the task of starting the Sustainable Finance Lab and I am looking forward to building on the excellence of our team, says IVL-researcher Mark Sanctuary, one of the initiators who will be the Deputy Director of the Lab.
The ambition of the Sustainable Finance Lab is nothing less than the renewal of financial practice to further sustainability objectives, both in Sweden and internationally. To achieve this, the center will focus research on risk, impact, norms and policies, as well as transformation, technology, and innovation. Four basic issues underpin the activities of the Lab:
- What impact do different financial practices and products have on the sustainable development of society?
- What risks are created in the financial market if society does not operate sustainably?
- How must financial market norms/policies change to better support sustainable development?
- What steps can be taken to phase out financial market support for unsustainable companies, and increase support for start-up and more sustainable alternatives?
The Sustainable Finance Lab brings together leading sustainability researchers from six Swedish universities and research institutes; KTH (host), IVL Swedish Environmental Research Institute, Stockholm Resilience Center, University of Gothenburg, Luleå University of Technology and Stockholm School of Economics. Also participating are organizations such as Sweden’s central bank, leading Nordic commercial banks, and small start-up companies such as Nordic Credit Rating, to support and provide input to operations and research.
– We will be working at the absolute cutting edge of the field, and close collaboration between researchers and companies is essential to deliver the next generation of financial tools and insights needed in the transition to a more sustainable society, says Mark Sanctuary.
The consortium has received funding via Vinnova’s call for Financial market research for a sustainable economy with Euro 4.6 million allocated over a first five year period, and a potential extension for an additional five years.