Keys to a green future: Nykredit x Valified

In a world where sustainability is a non-negotiable for businesses and investors, banks play a crucial role in shaping our future. Banks now stand alongside the business world in a historic alliance where collaboration and partnership are the keys to a green future – and the partnership between Nykredit and Valified is a prime example of that.

Nykredit x Valified: A Shared Commitment for a More Sustainable Future

In this edition of our Innovation Through Partnerships Series, we delve into the strategic partnership between Nykredit , one of Denmark's leading financial institutions and a Corporate Partner at Copenhagen Fintech , and Valified , the preferred ESG platform for over 1,800 Danish companies and a Copenhagen Fintech Scale-Up Partner.

As we explore this collaboration, we will uncover the challenges, successes, and essential learnings that can serve as a blueprint for other companies looking to foster meaningful partnerships in the fintech space.

Nykredit’s Green Vision

Nykredit has a keen focus on sustainability and has embraced the responsibility of leading the green transition within the financial sector. Nykredit is different compared to other banks in Denmark. Owned by an association of customers and with a pledge to create a greener Denmark, Nykredit is uniquely positioned to give something back to their customers and society.?Their slogan, "It should be cheaper to be green than to be indifferent," encapsulates their dedication to fostering environmentally friendly practices among their customers.

Nykredit understands the importance of ESG criteria for its customers and works with businesses to help them meet these standards.

The Valified Partnership

Through Valified ’s ESG Platform, Nykredit assists companies in identifying ESG-related risks and opportunities, kickstarting their sustainability reporting.

We spoke with Patrick Christian Ballentin Laraignou , Partnership Manager, Strategic Partnerships at Nykredit , about how they work to achieve their vision. By partnering with Valified, Nykredit aims to lead by example, demonstrating a strong commitment to sustainability and empowering customers to adopt greener practices. Patrick said, ??? “Our unique ownership and societal commitment oblige us, so we’d like to take the lead and be quite ambitious on behalf of ourselves and our customers."

"So, when Valified approached us a couple of years back with a compelling idea: a solution to help our SME customers improve their ESG reporting, we were all ears.” - ??? Patrick Christian Ballentin Laraignou .

Recognizing the impending EU regulations and the significant role banks would play in driving sustainability, Nykredit saw the potential in this partnership.

The partnership enables Nykredit to offer valuable tools and support for sustainability reporting, giving clients a competitive edge in meeting regulatory requirements and improving sustainability practices.

Jesper Kring , CEO of Valified , shares ??? “Together with Nykredit, we can accelerate sustainable finance and avoid greenwashing. SMEs are an important part of the value chain but face significant pressure, putting their competitiveness at risk. Banks increasingly recognize that SMEs also pose a credit risk to their business portfolios."

"Valified’s ESG Platform is not only designed to meet ESG regulations and compliance; it is created to drive real change through collaboration and cooperation. It offers a user-friendly interface, reduces time wastage, and delivers high-quality ESG data.” - ??? Jesper Kring

Overcoming Challenges

The partnership initially faced challenges in adoption, particularly among SMEs that needed more time and resources to focus on sustainability reporting. Nykredit's advisors played a crucial role in promoting the benefits of Valified's platform, emphasizing how it could streamline their operations and improve their overall competitiveness.

Despite the slower start, increasing regulatory pressures and the rising demand for sustainable practices have driven growing interest in Valified's tools among Nykredit’s customers.

Recommendations and Lessons Learned

Several key learnings have emerged from the Nykredit-Valified partnership:

1. Agility and Decision-Making: Clear communication and realistic goal setting can bridge the difference in governance structures between a large financial institution and a more agile fintech company.
2. Trust and Transparency: Open, honest communication and setting clear expectations are vital for maintaining a strong and trustworthy partnership. Frequent meetings and discussions help address potential issues before they arise.
3. Empowerment of Bank Advisors: Nykredit's advisors now enhance their services with sustainability, enriching their interactions with customers. Through user-friendly tools and advisory services, they support businesses in understanding, adopting, and integrating ESG principles into their business strategies. This relationship goes beyond traditional advisory services, bridging the gap between finance and sustainability.

Looking ahead

Throughout 2024, both parties expect the partnership and collaboration to flourish and transform the way banks and businesses work together even more.

Nykredit is optimistic about their partnership's continued growth and impact. As more businesses recognize the importance of sustainability, the adoption of Valified's platform is expected to rise, further solidifying this collaboration's success.

A Successful Collaboration

The partnership between Nykredit and Valified demonstrates how fintech collaborations can drive meaningful change. By providing SMEs with the tools to improve their ESG reporting, Nykredit helps their customers become more sustainable and competitive. This benefits the businesses and aligns with Nykredit's commitment to leading the green transition in the financial sector.

Their collaboration exemplifies how established players and emerging fintechs can join forces to drive the green transition and support businesses in their sustainability journey. By leveraging each other's strengths, Nykredit and Valified are simplifying ESG reporting for SMEs and helping them become more competitive and resilient in a rapidly evolving market.

Through this series, we aim to inspire other companies in the fintech ecosystem to explore and cultivate partnerships that drive innovation and sustainability. The Nykredit x Valified story showcases the power of collaboration in creating a greener, more sustainable future for all.