The so-called small cap segment of the Swedish stock market consists of smaller companies in terms of market capitalization. Their activities span widely from transportation to medical technology and from real estate to high-tech and computer games development.

“The common denominator for smaller Swedish companies is their general focus on sustainability, but during the last couple of years, their focus on leveraging sustainability as a business driver in order to capitalise on it, has increased,” says Petter Löfqvist, Senior Portfolio Manager and responsible for Danske Bank’s Swedish small cap fund. He continues: “Obviously, large, global companies have a longer track record in working with sustainability from a business perspective compared to the smaller companies. However, across the board they are all raising the bar and looking to gain a competitive advantage by embedding sustainability into their business model.”