Sustainable Finance: A case study of Swedish Banks' engagement in Sustainable Development Goals

Sammanfattning: Sustainable finance incorporates actions and policies for economic development, social inclusion, and environmental sustainability. The development of the Sustainable Development Goals (SDGs) by the United Nations became a guide for the transformation towards sustainability and social inclusion. This case study examines the motivations of Swedish Banks’ engagement in sustainable development issues by applying Rettberg (2016) three reasons for businesses’ engagement in issues outside the core business activities, “Need, Creed, and Greed”. The “need” to reduce risk exposure to the businesses because of climate-related factors but also secure new business opportunities; the “creed” could be the willingness to “do good” or “do no harm”, move beyond profit-making, and contribute to a healthier planet for future generations; and “greed”, as the necessity to keep operations running and protect revenue. The results of the study show that there is no single reason for engagement, rather the complex nature of exposure to sustainable risk is expressed by most as the leading reason for commitment to sustainable development. Emphasis is put on the need for stabilization of the financial system while considering the impact on the environment and society they operate in. In addition, government policies and regulations play a fundamental role in long-term engagements.