We provide a range of sustainability-linked products and services within the financial markets and engage both with companies working for a brighter tomorrow and the investors that fund them.
"Part of our environmental responsibility as a leading investment bank is to promote and raise capital for renewable energy initiatives. We see substantial interest from both new and established clients for these types of projects, a trend we are sure will increase going forward. Our obligation to help meet this increasing demand is a great motivation for us. "
Justin FitzHugh, Head of Energy and Infrastructure
Working with clients and other companies
To reduce emissions we will advise our business relations on their potential to benefit from engaging with sustainability-linked projects, as well as assist companies operating in sectors such as recycling, renewable energy and clean technology in raising capital for investment and expansion.
Working with investors
We will facilitate investors seeking to make sustainable investments with introductions and analyses, and will include environmental and other related risks in our investment research. We will provide reviews on potential earnings implications where appropriate.
ESG implementation in research
Arctic's research desk has established an ESG group to devise a framework for ESG coverage, a direct response to the increasing impact this field has on capital markets. The goal was to capture the most important ESG factors for each company under coverage; and for the findings to be presented in a concise format. A first version of the framework was completed in late 2021 and is to be implemented in equity and credit research in 2022.
The ESG analyses will be part of the equity and credit offerings and will highlight the companies’ positioning based on relevant ESG metrics for any given sector. With the ongoing implementation of EU’s Action Plan for Sustainable Finance, the ESG framework seeks to uncover the latest developments on taxonomy eligibility and alignment for the companies’ activities.
Financing the green transition
Where we can make a difference.
Emissions avoided through the use of a particular product or service are referred to as "scope 4" emissions.
It is by this parameter we best capture how financial institutions can contribute; our advisory services, including capital raises, may ensure that the right companies are provided with the capital they need to make a difference.
This does not mean that we refrain from providing financial services to companies on other missions, but rather that we take pride in how our team of 35 dedicated in-house renewables specialists work towards a more sustainable future.
Our investment banking renewables team executed 21 transactions totaling NOK 10+ bn in 2021. These transactions include capital raises within hydrogen, solar energy, offshore wind and ammoniac amongst other industries, facilitating the transition to renewable energy.
The Arctic Renewables investment banking team is one of the largest of its kind in the Nordics, and is ready to assist legitimate players looking to contribute in the green transition.
Decision-making for Asset Managers
"We recognise that environmental issues have a significant financial impact for businesses. Companies contributing to direct environmental damage are often subject to significant repercussions including direct fines, the loss of operating licenses, lower revenues and reputational loss. On contrast, those that come up with new and sustainable solutions to environmental problems stand to gain.
That is why we systematically integrate sustainability as part of our fundamental, bottom-up investment process, which is integrated through internal scoring of ESG and sustainability KPI's for each company. A cautious approach is awarded with a high company score which makes investment more likely. Similarly, poor corporate governance, known environmental issues, and lacking social responsibility will lead to a lower overall company score which means that investment is less likely. It may even trigger a sale of any bonds or equities in clients' portfolios."
Lisbeth Gyland, CEO and Partner Arctic Asset Management