Summary report of the kick-off webinar Nordic Board Leadership for Boards Impact Forum, the Nordic Chapter of the Climate Governance Initiative in collaboration with World Economic Forum

1. NORDIC BOARD LEADERSHIP
Summary from webinar March 22
BOARDS IMPACT FORUM 2021
Despite being small, the Nordic region is comparably stable. It
is highly ranked in many aspects and contains many of the
world’s happiest countries due to the reinforcing factors like
strong democracy, low corruption & reliable welfare
governance. The introductory insights was shared by Svante
Forsberg, Chair of the Swedish IoD, experienced auditor & NED
.
By Liselotte Engstam, Mats Magnusson & Akshat Jain
NORDIC COUNTRIES IN
TOP IN INNOVATION &
SUSTAINABILITY
RANKINGS
NORDIC BUSINESSES
HAVE STRONG & ACTIVE
OWNERS
NORDIC CORPORATE
GOVERNANCE MODEL
UNDERPINS SUCCESS
NORDIC BOARDS NEEDS
TO COLLABORATE FOR
NEXT IMPROVEMENT
KEY TAKEAWAYS
NORDIC BOARD LEADERSHIP,
SUSTAINABILITY, INNOVATION & NORDIC
CORPORATE GOVERNANCE

2. BOARDS IMPACT FORUM 2021
The webinar recording can be found via
https://boardsimpactforum.com/event-list/
The way the companies in the Nordic region are governed has a major impact and is thus an essential point of
discussion.
This position of strong governance and innovation
is something that the Nordic countries have to
defend, and one critical way is to help boards to get
better at by learning from each other.
For the Nordic region to become the most
sustainable region globally by 2030, it has to
integrate sustainability into its companies’
operations.
As of now, the governance of sustainability is one of
the weakest areas. Many board members have less
knowledge about the risks and opportunities
associated with ESG, and they need to come
together to increase their insights and share good
board practices.
The governance model followed by the
companies in the Nordic region is called the
Nordic Corporate Governance Model. It is a highly
self-regulating model and has a history of
minority owner protection. Moreover, this type of
governance increases the representation of
different stakeholders in the board.
Compared to the 1 tier and 2 tier models, the Nordic
model balances the guidance with the supervision,
takes in the broader stakeholder interest while still
keep a key focus on value creation for all, including
shareholders, and looks at both the long and short-
term goals while making decisions and is thus quite
effective.
The Nordic region has also been very active in sustainability and innovation and more than 10% of the top
sustainable companies are from Nordic region.

3. BOARDS IMPACT FORUM 2021
Webinar recording can be found via
https://boardsimpactforum.com/event-list/
The panel pointed out that it is helpful to have a strong purpose, which the board needs to confirm. To
believe in a world that runs on green energy and do things that are as sustainable as possible, will be an
important mission for boards.
The next step will be to take sustainability into the supply chains and working actively and jointly with the
suppliers. This will put pressure on new types of thinking and governance. To put up high targets also for
the suppliers, and understand enough about what it takes to get there. Sometimes to ensure that your do
joint innovation programs with them. As Thomas Thune Andersen further exemplified:
" O n s u s t a i n a b i l i t y -
I t h i n k i t a l l s t a r t s
w i t h p u r p o s e ”
said Thomas Thune Andersen, Chair and
former winner of the Corporate Knights as
a leader of the most sustainable energy
company in the world.
"These are big challenges,
and nobody will fix it on their own"
The success of the Nordic model was referenced to depend on social trust and the responsible large
shareholders. But also panellists also noted that young people have an expectations on companies and
their boards. Chair Thomas Thune Andersen filled in
" I t i s n o t e n o u g h t o s a y w e s h o u l d b e c a r b o n n e u t r a l , w e h a v e t o p a y
b a c k t h e C O 2 w e h a v e d o n e ! "
" T h e y o u n g p e o p l e a r e a l r e a d y t h e r e , w a i t i n g f o r u s t o m a k e t h e s e
d e c i s i o n s , l i s t e n t o t h e m ! "
The panel was facilitated by Lise Kingo, NED and former CEO of UN Global Compact, and consisted of
highly experienced Chairs and NEDs from major Nordic corporations, including Thomas Thune
Andersen, Chair Orsted, Lloyds Register et al, Adele Pran Norman, Chair Zalaris, NED Yara, ABG Sundal,
Harri-Pekka Kaukkonen, Chair YIT, Londstrom group, NED TIetoEvry and Anna Mossberg, NED
Swisscom, Swedbank, Schibsted and Yara, and Svante Forsberg, Chair Swe IoD, NED.
The panellists agreed on the complexity of the issues and that increased discussion and collaboration are
needed, as Lise King Noted in her introduction:
Additionally, boards need to increase their competence and understand how significant a disruptive
factor climate change is. Chair Adele Pran Norman noted:
" C l i m a t e c h a n g e i s r e a l l y a v e r y d i s r u p t i v e
b u s i n e s s f a c t o r f o r m a n y c o m p a n i e s "
The webinar recording can be found
https://boardsimpactforum.com/eve

4. BOARDS IMPACT FORUM 2021
www.boardsimpactforum.com
It is time that different groups form partnerships, bring their innovation together, and all act together in
the right way to drive changes in the industries. The current risk approach needs to be considered jointly
with opportunities, so use the approach to evaluate how companies can manage the risks and turn them
into business opportunities, and consider the full risks including the risk of transition.
All panelists were in full agreement on the importance on including the sustainability and climate
transition into the business strategy. Following a more structured approach in the sustainability focus of
the board will facilitate that. The discussion around sustainability takes time and needs to take time also
at the board level.
An additional approach was highlighted through the role played by banks and investors, where
sustainability can be accelerated through the requirements put on companies when receiving financing.
As Anna Mossberg, NED at several listed companies said:
" Y o u h a v e t o a s k y o u r s e l f - h o w c a n w e
b u i l d t h i s c o m p a n y t o b e f u t u r e p r o o f ”
said Adele Pran Norman, Chair and
NED at multiples
" T o m o v e t h e s u s t a i n a b i l i t y a g e n d a , b u i l d o n
p e o p l e a n d c u l t u r e , m a k e b o l d t a r g e t s a n d
i n c r e a s e t h e p a c e ”
It was also noted that the situation varies between different industries,
and therefore boards can actually learn from each other, but need to adjust to the specific situation.
Competence was highlighted as a major need, at both boards and in companies.
Sustainability needs to be incorporated into the DNA of the company including target setting, behaviour
and culture. There is a need for brave boards and brave companies. As Harri-pekka Kaukkonen, Chair at
several, noted:
" I t b e g i n s w i t h s e t t i n g s u s t a i n a b i l i t y a t t h e c o r e o f
y o u r s t r a t e g i c f o c u s , a n d c r e a t e a g o v e r n a n c e
s t r u c t u r e t h a t g o e s b e y o n d w o r d s . "
" T h e q u e s t i o n i s i f y o u h a v e t h e
a m b i t i o n s t o s e t t h e o b j e c t i v e s h i g h
e n o u g h t o m a k e t h i s m o v e ”
A final takeaway to make the Nordic Corporate Governance Model even better suited for improved
sustainability and innovation is to have proper dialogues with all the stakeholders involved and pressure
them to deliver results. Moreover, it is crucial that the companies listen to the need also of society and
make good plans together and execute on them. Svante Forberg said:
" B e b o l d a n d a m b i t i o u s , s e t t h e g o a l s t h a t a r e
r e a l l y r a d i c a l a n d i n n o v a t i v e .
I t h i n k w e k n o w p r e t t y m u c h w h a t t o d o ,
s o l e t s g e t o n w i t h i t ! ”
Lise Kingo concluded
the webinar by stating