Nordic CFOs reflect on the current business environment

Treasurers are working in a challenging environment of higher interest rates and geopolitical tension. That was a recurring theme at Treasury 360° Nordic, the annual conference bringing together hundreds of finance professionals for a day of networking, inspiration and knowledge sharing in Copenhagen. 

The geopolitical situation was up front and centre with the opening keynote speech from former NATO Secretary General Anders Fogh Rasmussen. He emphasised the crucial role businesses play in global security, for example, by building resilient and sustainable supply chains.

“Brave new world” was the phrase used by Nordea’s Johan Trocmé to describe the current business environment when he introduced one of the event’s content tracks. He pointed to higher interest rates, macroeconomic uncertainty and unrest in parts of the world as key concerns. 

“The role of the treasury has shifted from process automation to risk management,” he said. 

‘We need to be more resilient’

In one panel session, “CFO Perspectives,” led by Henrik Immelborn from Nordea Debt Solutions & Loans, CFOs from three diverse Nordic companies – Matas, Epiroc and Zealand Pharma – reflected on the new world order. Asked about the difference compared to a few years ago, Epiroc CFO Håkan Folin noted that geopolitics are playing a bigger role than before. 

“We are thinking a lot more about the geopolitical landscape, where we should source and how we should set up our supply chain,” he said. “Things aren’t going to go back to where they used to be. We need to be more resilient.”

Zealand Pharma CFO Henriette Wennicke echoed that focus, given the biotech company’s reliance on third parties for manufacturing and clinical trials. She also noted that money is no longer “almost free” as it was a few years ago. The company is now also focused on limiting financial risk after its exposure to Silicon Valley Bank, the US bank that collapsed in 2023.

From a business perspective, it is all about scenario planning, said Matas CFO Per Johannesen Madsen. 

“As a CFO, you end up being close to the scenario planning process as you get questions from your banks about what’s going to happen next,” he said.

Sustainability in focus

All three CFOs emphasised the growing role of sustainability for the treasury function and the company as a whole. All agreed that this is driven by multiple stakeholders, such as consumers, regulators, shareholders and banks. 

Matas has recently committed to setting Science Based Targets and has also integrated sustainability into its financing with a sustainability-linked loan with three KPIs. Epiroc has an ambitious ESG policy of having 70% of its total long-term financing be green or sustainability-linked.

“With a number of reporting requirements coming closer, ESG will have an impact on our everyday work. We need to be auditors on these matters as well,” said Zealand Pharma’s Henriette Wennicke.

As insights shared on the panel and the wider conference made clear, resilience, innovation and foresight are key to thriving in the current business environment and turning challenges into opportunities.