Nordic Finance and the Good Society

THE FUTURE OF FINANCE 

Newsletter - June 2024

Is the EU regulating itself to poverty and becoming an open-air museum?

The EU now appears to have a significantly lower growth rate than both the US and China, which has increasingly received significant political attention. But, what is the fact of this debate, and why does regulation play such a central role?

The EU's growth figures are a mathematical average for 27 countries with a total population of 446 million inhabitants and an annual average growth rate of 1.6% since 1996. However, this figure masks large regional differences, where the 5 Nordic countries, in the same period, had an average growth of 2.2% (Source: Nordic Statistical Database). The economic success is remarkable, as several of these countries (Denmark, Norway and Sweden) were already some of the richest countries in Europe at the beginning of the period, and therefore began with a high economic starting point.

At the same time, according to IMD and IMF, the Nordic countries are some of the most competitive nations globally. However, this position is undoubtedly threatened, as highlighted by a number of leading Nordic business leaders, including Lars Rebien Sørensen (Novo Nordisk Foundation), Börje Ekholm (Ericsson) and Nicolai Tangen (The Norwegian Oil Fund). The question is whether the Nordic Region can lead the EU in the right direction or whether it will be caught in a low-growth trap and, due to over-regulation, end up in a position where many local firms and especially the financial sector will not have a competitive edge anymore?

Lars Ohnemus, Project Leader, Nordic Finance and the Good Society  

Preliminary thoughts about the project

The project The Future of Finance aims to lead the frontier of research on financial institutions, markets and sustainability in Denmark and the Nordic region. With six cutting-edge research tracks, we aim to tackle current challenges at the core of the financial sector’s future.

The Nordic financial sector is at a critical juncture, struggling with challenges ranging from financial instability to regulatory uncertainty amidst the green transition. As the region's prosperity hinges on sustainable growth, it is imperative to navigate these complexities effectively.

With Denmark leading global competitiveness rankings, the stakes are high for the Nordic financial sector's future trajectory. Our project aims to delve into pivotal questions surrounding sustainable finance and corporate governance in the region. We will explore how financial institutions balance profit motives with societal impact, the implications of ESG integration, and the regulatory landscape's evolving dynamics.

Our research themes span sustainable finance, corporate governance, executive remuneration, pension fund regulation, greenwashing, and shareholder democracy. Through an interdisciplinary approach and collaboration with experienced scholars, we seek to shed light on these pressing issues.

With an endowed professorship in Sustainable Finance and Corporate Governance and a dedicated research team, we are ready to generate significant insights and foster dialogue through workshops, seminars, and digital platforms. Our mission is to advance knowledge, foster cross-border collaboration, and elevate awareness of sustainable finance and Nordic corporate governance on a global scale.

Join us on this journey as we unravel the complexities of the Nordic financial landscape and pave the way for a more sustainable future.

Upcoming event 

NCGN Workshop 2024 

The Nordic Corporate Governance Network (NCGN) and Copenhagen Business School is pleased to invite you to a 2-day workshop in Copenhagen on August 23-24, 2024.

The workshop is a forum for academics from the Nordic countries to present and discuss ongoing corporate governance research.

VENUE

Copenhagen Business School, Solbjerg Plads 3, 2000 Frederiksberg, Denmark. Room:  Coloplast SPs07

KEYNOTE SPEAKERS

• Prof. Sirimon Treepongkaruna, University of Western Australia, “Shareholder Litigation and Carbon Emissions”.
• Prof. Jette Steen Knudsen, Copenhagen Business School, “Regulating the financial sector for sustainability – A Nordic Perspective.”
• Jesper Berg - Retired Director General Financial Supervisory Authority, "The EU regulatory machine"

Any questions regarding the workshop may be directed to Trine Vestergaard, ccg@cbs.dk

The six research tracks 

Below, you can gain an overview of the various research tracks

Research team and track leaders

A diverse research team 

The Future of Finance brings together an impressive group of researchers from various universities and research institutions around the world. Our research team consists of leading scientists from a number of renowned universities, including: Copenhagen Business School, Phillips-Universität Marburg, Lund University, Oslo Metropolitan University and University College London. This diversity ensures that we can leverage a broad spectrum of expertise, which is crucial for addressing the complex challenges our project aims to solve.

The six track leaders 

The project will be led by a strong, interdisciplinary team of experts in their respective fields and will be structured around six teams. Each team will focus on one of the project's six core tracks and will be led by a designated track leader. Interested in learning more about the six track leaders? Read a brief description of each track leader below: