THE ROLE OF THE FINANCIAL MARKETS Idar Kreutzer CEO Finance Norway

A changing global marketplace 2

Ecological estimates: Getting to one planet by the end of the 2050s Vision 2050 ecological footprint against business-as-usual How many Earths do we use? Source: Global Footprint Network and WBCSD Vision 2050,

”Those companies that wait to be forced into action or who see it solely in terms of reputation management or CSR, will do too little too late and may not even survive.” Paul Polman, CEO Unilever Increasing complexity of risk Changing consumer behavior Business Evolving framework conditions Rising cost of capital Fluctuating prices and availability of raw materials Source: World Business Council for Sustainable Development, Vision 2050 Business models need to be adjusted 4

Environment Economy Society Sustainable value creation A sustainable business model 5

Cost of capital – investor perspective The TIP-factors T echnologial change I mpacts P olicy ”These risk factors will be priced by the capital market on the same terms as more traditional risk factors” (Mercer/Norges Bank) 6

The strategic business perspective GoalsKey drivers Consumer behaviour Competitor behaviour Risk management Innovation Cost of capital – investors Reputation 1. Reverse the trends 2. Manage the consequences 7

Business domains for the next decade – Opportunities and overlaps 8

9 The fundamental risk “There are risks and costs to action. But they are far less than the long range costs of comfortable inaction”. John F. Kennedy