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Master’s students Ellen Eskelinen (Accounting) and Sebastian Koskinen (Finance) at Aalto University School of Business conducted a research project on the Finnish ESG* market for Euroclear Finland from April to June 2024. The primary objectives were to analyze the competitive landscape, anticipate upcoming regulations, and identify strategic opportunities for Euroclear in the ESG domain. (*ESG=Environmental, Social and Governance, sustainability)

Ellen and Sebastian engaged with a diverse range of stakeholders to gather valuable insights. Client interviews provided a practical understanding of the needs and expectations of reporting companies and brokers, while legal interviews clarified the regulatory framework impacting the ESG market. Internal interviews with Euroclear added another layer of depth to the study, ensuring that the research was aligned with the company’s strategic interests.

The academic supervisor of the project, Senior University Lecturer at the School of Business David Derichs was impressed by the students’ performance. ‘Sebastian and Ellen’s project management and execution skills were impressive, ensuring that all tasks were completed efficiently and on time. They exhibited great initiative by proactively engaging with the client and other involved stakeholders, which greatly contributed to the project's success. Their ability to communicate effectively, anticipate needs, and address challenges promptly was commendable. Overall, their professional approach and dedication were key factors in delivering high-quality results.’

New ideas on future development directions

The research findings were presented on June 12th, 2024, providing Euroclear Finland with a thorough understanding of the ESG market. Ari Heinonen, Head of Product Management at Euroclear, said that the students captured well the overall situation in the ESG market in Finland. 

‘Through valuable client interviews as well as competitive analysis, the study brought ideas on future development directions. The project highlighted Euroclear's potential opportunities in the ESG space, offering a strategic roadmap for future initiatives. The findings of the project support the current ESG strategy of the firm and provide additional evidence to support their pre-existing direction in terms of their services and offering.’

Ellen and Sebastian were surprised to see the large size and rapid growth of the ESG market. Furthermore, it unveiled the growing demand for ESG data pushed by the changing regulatory landscape. ‘This project has been an eye-opener about the pivotal role of ESG in shaping future business strategies. It underscored the importance of sustainability in driving market growth and regulatory compliance. The project has further deepened my interest in ESG, and I am eager to build a career in this dynamic and meaningful field,’ Ellen reflected. ‘It has been a true privilege to learn about such a hidden field as ESG data.’ 

‘Understanding the current offering, the growing needs within the financial and retail industries has sparked a true interest in the evolving ESG landscape. As we learned from our research and the many experts interviewed, ESG initiatives are not only a fad, but rather an emerging norm which is carving its place in firms’ core operations globally,’ Sebastian added.