The IMPACT Awards judges were impressed by Nordea's impact reporting 'with relevant impact indicators', with one judge explaining to Environmental Finance: "it is very interesting to have impact integrated into the valuation models".

The €229.7 million Nordea 1 – Global Impact Fund invests across three themes 'resilient economy', 'liveable planet' and 'strong communities'.

The investor applies a bespoke impact framework to measure the positive social and/or environmental outcomes of each portfolio company, including the revenue exposure to UN SDGs.

The investor integrates each of its investment's impact profiles within its valuation model – an in-house Discounted Cash Flow Model – adjusting based on the environmental and social impact outcomes. It also sets tailored key performance indicators (KPIs) to monitor the social and environmental outcomes of each investment.

"We are thrilled and deeply honored to receive the 2024 IMPACT Award Fund of the Year – Listed Equity for Nordea 1 - Global Impact Fund. We strongly believe that adding the impact dimension to the traditional financial 'risk-return' model creates an opportunity for strong financial and non-financial performance," the fund's impact lead Solène Eveillard, told Environmental Finance.

"By formalising our intention to contribute to sustainable transformation, we are able to further align with our client values and organizational mission of returns with responsibility."