At a recent PWC seminar on sustainability (mid Oct 2025), there was a very interesting panel discussion regarding what investors and corporates need to address with regards to companies’ sustainability efforts. The panel included, among others, Cecilia Daun Wennborg, a board member in several large Swedish listed companies. Also, Anette Andersson from SEB participated. Anette is a Senior sustainability investment specialist who works with private equity companies that aim to eventually become listed.

Client centricity & long-term competitiveness
Sustainability adoption is paramount for remaining competitive in the long run and producing valuable products and services that meet end clients’ demands. Clients include larger companies (B2B) who require transparent and reliable data from their sub-suppliers, often SMEs. Demands from clients with regard to sustainable alternative products and services remain high.

DMA and Incentives
Double Materiality Analysis (DMA) should result in a goal and plan for how companies can reduce perceived risks, both external environmental risks and internal financial risks that may arise from ESG issues. Incentives for company management should be closely connected to the goals set.

Board competence
Company’s nomination committees today look at competence surrounding sustainability as well as gender distribution on the boards. The board needs to understand the strategic importance of sustainability.

CSRD and regulation
Simplifying the regulatory CSRD requirements is seen as good. However, the ambitious overall goals should not change. It is also well noted that the ambitions of the companies have, in general, not changed much due to regulatory changes. Financial companies have, for long, had high regulatory requirements under SFRD (Sustainable Finance Disclosure Regulation) regarding transparency when investing in green companies.

Governance
The governance of companies is key in order to lead the companies in a sustainable direction. A suggestion brought forward was for companies to form an internal sustainability committee in order to get ESG on the board’s strategic agenda. The committee should continuously report to the board. Social sustainability with regard to, e.g., employees in the companies and among its sub-suppliers also needs to be addressed.