Stockholm (NordSIP) – A recent report by Storebrand Asset Management and GIST Impact highlights that the 100 largest Nordic companies exhibit a lower impact on nature compared to global benchmarks, with a 42% reduction relative to major corporations worldwide. However, despite their relative progress, these companies are still contributing to increasing pressure on ecosystems, with impacts rising approximately 1% annually since 2017.
“The good news is that the largest Nordic companies are ahead of the curve. The urgent news is that even leaders are still moving in the wrong direction, increasing their environmental pressures year on year. As investors, we can use this data to move beyond broad policies and pinpoint exactly where value is at risk, and where we need to drive meaningful change at a company-level,” says Emine Isciel, Head of Climate and Environment at Storebrand Asset Management, on this occasion.
The analysis underscores that most of the biodiversity footprint is concentrated in key sectors such as manufacturing, food production, automotive, textiles, and freight transport, many of which depend heavily on water resources. Over half of the manufacturing assets in the portfolio are located in drought-prone regions, heightening operational and financial risks associated with water stress. Additionally, a significant number of facilities operate near protected areas and Indigenous lands, raising concerns over land use and community engagement.
The report emphasises that advanced data and location-specific insights now make it feasible for investors to identify high-risk sectors and regions, improving risk management and incentivisng responsible corporate behaviour. The findings suggest that most impacts are driven by activities in vulnerable areas, including forests and Indigenous territories, with risks linked to deforestation, water scarcity, and social concerns.
As global biodiversity goals remain distant, with $7 trillion annually still financing ecosystem degradation, the report encourages Nordic companies to leverage their leadership position to drive change. Storebrand plans to use these insights for targeted engagement, emphasising areas such as water management, sustainable land use, and transparency in biodiversity reporting.
“Nature-related risks, whether from ecosystem degradation, water stress, or litigation, have direct implications for companies, affecting valuations, operational stability, and long-term resilience. Understanding how portfolios interact with nature helps us pinpoint financial risks and drive meaningful change through targeted engagement,” Isciel concludes.
