Statement from Vinnova - Swedish Innovation Authority and co financier:
The cities' ability to engage in change is central to our capacity to achieve both national and international climate and sustainability goals. This capability depends on cities and municipalities being able to secure the funding required to make such a move. By directly addressing the lack of standardised and transparent financial measures for climate and sustainability aspects, this project can provide important conditions for the capital supply of necessary investments to ensure a more sustainable future. With the ambition of developing an open and transparent framework, as well as a strong constellation of players with the necessary knowledge, networks and tools, there is potential for concrete progress towards a sustainability-adapted financial system.
The goal of the project is:
Develop decision support analysis for expanded management of sustainability goals with increased understanding of the financial sector, municipalities and the business community on measures, sustainability, investments and priorities in the direction of agenda 2030 which at the same time provide conditions for scalability in Europe and the rest of the world.
A tool for integration of sustainability measures in financial analysis - part of the solution for the cities' climate agreement
The project aims to accelerate urban and business investments in line with climate and sustainability goals by facilitating capital supply and managing investments in a sustainable direction. The project contributes to this by demonstrating, developing and using as a background a tool and framework that uses scientific sustainability measures that enable objective, comparable and quality-assured information used for integration of sustainability aspects in financial and economic analysis and decision-making processes, such as financing, investment, budget and asset management.
The pilot project is conducted through cooperation and co-creation of important partnerships that cover all sectors and areas of society with the ambition of developing an open and transparent framework based on the necessary skills, networks and tools. A concrete step to accelerate a sustainable financial system, which is pioneering and mission-oriented towards meeting the next generation governance level.
- An analysis and decision support tool and system platform that integrates quantifiable sustainability measures in the calculation and evaluation of qualitative and quantitative measures. The tool uses a database with AI strategy.
- The project will visualise and demonstrate the integration of sustainability information in financial and economic assessment during the spring semester 2021 and includes design theory, categories of sustainability criteria, sustainability measures in a mathematical model with high reliability, comparability, transparency and quality assurance for risk and impact analysis.
- The project identifies pilot tests with its partners for economic decision-making and financial assessment with an initial focus on climate change in cities.
- Cities by integrating sustainability into the flow of capital can more easily evaluate and prioritize governance to benefit society and its citizens without compromising the future.
- The work takes place through dialogue meetings, workshops, collection and transformation of sustainability data and integration of these in financial and economic analysis.
- The project contributes towards Agenda 2030 goals, the EU Green Deal and the EU regulations for climate reporting.