Nordea AM CEO: it’s time for fully integrated ESG portfolios

    Nils Bolmstrand, chief executive of Nordea Asset Management, wants to give clients the chance to hold a complete profile of funds with a sustainable finance tilt.

    ‘There is demand for being able to build entire portfolios with sustainable finance taken into account, and that means you need to go broader than the traditional equity portfolios in your product range,’ he told Citywire Selector.

    ‘We have been building out our offering so that we can allow clients to build a portfolio with a sustainable finance tilt,’ Bolmstrand (pictured) added.

    This is a reflection of the growing momentum behind sustainable finance, which the financial sector is now hoping to cater to. ‘I definitely think that clients, the media and the regulators have identified that there is a need for the financial industry to be part of the solution to the problems that civil society faces,’ he said.

    Tipping point

    Bolmstrand argued that ESG investing is on the brink of mainstream adoption as a result of growing awareness of climate change risk.

    ‘I think we are very close to some form of tipping point, and I think the climate challenge has the greatest likelihood of taking us across the threshold.

    ‘When a challenge like climate change faces civil society, that will have and should have an impact on the financial sector and the asset management industry,’ Bolmstrand said.

    The growth of sustainable investing has resulted in advances in how asset managers work with, quantify and report on ESG, according to the CEO. ‘We will see managers getting better and better at linking the true risks to the company from the ESG perspective and how that manifests itself in share prices as well.

    ‘We will be better at understanding ESG and responsible investing too, and we’ll continue to translate that into a tangible benefit to our clients,’ Bolmstrand said.