Is Green the New Black? A Study of the Role of Sustainability in Nordic Venture Capital

Sammanfattning: This thesis investigates the role of sustainability in Nordic venture capital. Using stakeholder interviews, the thesis aims to uncover the key drivers behind the industry sustainability momentum. The analysis concludes that the importance of, and commitment to, sustainability in the Nordic venture capital industry has increased strikingly in recent years, especially among general partners. Industry balance has started to shift from institutional limited partners pushing the sustainability agenda to general partners incorporating ESG into their investment theses to a larger extent. However, to what extent ESG is incorporated varies. In addition to regulation, which sets a baseline for sustainability incorporation, the increase in industry sustainability commitments can be attributed to three key drivers: sustainable business opportunities, the concept of future-proofing businesses, and the conviction that long-term financial return and sustainability go together. Challenges remain relating to regulatory changes and industry standardization regarding how to measure and track sustainability data. The thesis case study concludes that the key industry sustainability drivers are exemplified by Spintop's investment in Worldfavor. The investment demonstrates a business opportunity that has emerged from the transition toward a green economy, highlights that sustainability can help future-proof a business, and illustrates that economic viability and sustainability can coexist.