Storebrand: Building ESG Integration Through Data Excellence

For Nordic asset manager Storebrand, the journey toward genuine ESG integration began long before it became an industry imperative. 

With roots stretching back to the 1700s, this Norwegian institution has been quietly revolutionising sustainable investment practices since 1995, well ahead of the current ESG wave sweeping through financial markets.

Few financial institutions can match Storebrand's sustainability heritage. The firm has spent more than two decades developing comprehensive approaches to active ownership, exclusions and product integration. 

This long-term commitment has evolved into a sophisticated framework that extends far beyond simple environmental considerations.

Today, Storebrand manages approximately £91bn (US$118bn) across a diverse range of products, from traditional equity and fixed-income funds to alternatives including private equity, real estate and infrastructure investments. 

This breadth of offering has helped drive remarkable growth, with assets under management nearly tripling over the past decade from NOK500bn (US$45bn) to NOK1.3tn (US$$118bn).

Organisational structure and sustainability integration

The transformation journey at Storebrand has been marked by strategic innovation in structure and operations. The firm's multi-boutique approach allows different brands within the group to maintain distinct identities while sharing core operational platform.

Each boutique focuses on specific market segments and investment strategies, from traditional public market funds to specialised alternative investments, while benefiting from centralised data and technology resources.

“When I came here, there was a sense of strong heritage, stability and resilience. Since then, the company has become even more ambitious and expanded into the Nordics,” explains Eigil Ingebretsen, Head of Investment Control and Analytics at Storebrand. “I knew Storebrand was quite large locally, but I was surprised by its ambitions outside our home markets.”

The firm's commitment to sustainability permeates every level of operations through a carefully designed cascade approach. 

Starting at the strategic level, sustainability goals flow down through tactical implementation and into day-to-day operations. This systematic approach ensures consistency whilst allowing for specialisation within each boutique.

“People come to work with Storebrand because we have strong recognition within the sustainability area,” Eigil reveals. “The organisation has a strong ownership committed to sustainability and our mission to deliver to our clients in a way that focuses on a brighter future.” 

This commitment recently gained global recognition when Storebrand Asset Management’s CEO represented the financial industry at COP16's nature negotiations. 

However, converting such high-level ESG ambitions into meaningful action requires sophisticated data infrastructure and governance frameworks.

The firm's approach to ESG integration begins with comprehensive data collection and analysis. 

Portfolio managers work directly with ESG data points in their investment processes, moving beyond simple screening to incorporate sustainability metrics into fundamental analysis. This integration extends across all asset classes, from public equities to private markets.

Data infrastructure and technology transformation

For Storebrand, the key to genuine ESG integration lies in its data governance and technology infrastructure approach. 

Several years ago, the firm decided to simplify its system architecture, moving away from a best-of-breed approach towards an enterprise platform strategy. This decision has proved particularly valuable as regulatory requirements have grown more complex.

The move to cloud infrastructure marked a significant milestone in this transformation. Beyond mere cost savings, the cloud migration has enabled more flexible data analysis and improved collaboration across teams. 

The firm's technology teams worked closely with business units to ensure the new infrastructure met specific operational needs rather than following industry trends.

“One trap to fall into regarding regulations is to only focus on the regulatory transparency requirements, but not on process integration – therefore missing the requirements for having a more integrated approach to ESG,” Eigil says. 

“Having a clear structure and focus on data models and governance is obviously important, but focusing on process integration has been the most vital part.”

This insight led to a long-term partnership with investment management platform SimCorp, dating back to 1998. 

The relationship has helped streamline operations and reduce integration complexity, particularly crucial as regulatory requirements have increased. The firm has built significant internal expertise around the platform, enabling rapid adaptation to new requirements.

The transformation has included comprehensive modernisation of technology infrastructure across every aspect of operations. 

“We made substantial changes and improvements,” Eigil notes. “Upgrading to a cloud-based infrastructure has been important, but the enterprise approach to systems has been crucial to building a strong supporting platform for scalable, robust and effective processes.”

This foundation has proved invaluable as the firm tackles increasingly complex regulatory requirements and client demands for transparency. 

Each new regulation or reporting requirement is approached systematically, with teams across the organisation collaborating to ensure compliance while maintaining operational efficiency.

Storebrand's approach to artificial intelligence (AI) exemplifies its pragmatic stance on technology adoption. 

Testing AI in areas like RFP response automation has been valuable in itself, but has not led to significant shifts in the way Storebrand operates - yet. 

While these trials haven't always delivered the expected value, they've provided valuable insights into practical applications of AI in asset management.

“Given AI being at the top of the Gartner Hype Cycle, you expect this to be a tool that can solve a lot, but you tend to start with the tool and not the problem,” Eigil observes. 

“At this point, it's about trying to identify different use cases, trying out different aspects of AI and technology, then failing fast and moving on, not quite the substantial impact we initially expected.”

Talent management and technical evolution

The shift towards technology-driven operations has fundamentally changed how Storebrand approaches talent management. Traditional boundaries between IT and business roles have blurred significantly, creating new challenges in recruitment and team development. 

The firm now seeks candidates who can bridge the gap between technical and investment expertise.

“Whenever we approach new talents and recruit analysts, we need to consider their technical capabilities to a greater extent than before,” Eigil explains. 

“Understanding tools and technology is almost equally important as knowledge of products and markets. Having that understanding of technical capabilities makes it easier to collaborate with colleagues supporting our technical platform.”

The evolution in talent requirements reflects broader changes in how investment firms operate. Technology expertise is no longer confined to IT departments but must permeate throughout the organisation. 

This shift has prompted Storebrand to incorporate technical capabilities as a key component in all employees' growth and development plans that ensure all team members can effectively work with both financial and technical systems.

International expansion and future outlook

International expansion presents its own unique opportunities. Beyond the Nordic region, clients often have different expectations and requirements for both investment products and sustainability reporting. Storebrand's approach involves carefully adapting its offerings whilst maintaining consistent standards across markets.

“We definitely want to grow outside our home markets,” Eigil explains. “That means we need to approach clients based on local needs and expectations and make sure that we have products that appeal to those clients. We want to have solutions in place for them and make sure that we can be a true partner.”

The firm's acquisition strategy focuses on identifying companies that can enhance its capabilities whilst aligning with its sustainability-focused culture. 

“We are constantly looking at opportunities to grow non-organically,” Eigil reveals. “Seeing what kind of capabilities could be attractive for us to have in the group and then evaluating potential acquisitions that align with our values. It's about finding the right cultural fit as much as the right business fit.”

This requires continuous optimisation of processes and technology infrastructure, balanced against the need for robust controls and governance. The firm's simplified system architecture helps manage costs whilst maintaining high service standards.

Yet, Storebrand's early commitment to sustainability and data excellence has positioned it well for these challenges. 

“The ambition level that we have is as high as ever,” Eigil concludes. “We are always looking for room for improvement. Our sustainability approach is no different.”

“We will definitely keep pushing the boundaries of what we can achieve with our integrated approach to ESG and data excellence.”

Through its journey from traditional Nordic asset manager to international sustainability pioneer, Storebrand demonstrates how careful attention to data governance and technology infrastructure can support ambitious growth while maintaining strong environmental and social commitments. 

As the firm continues to expand beyond its home markets, this foundation will prove increasingly valuable in meeting evolving client needs and regulatory requirements.

Explore the latest edition of FinTech Magazine and be part of the conversation at our global conference series, FinTech LIVE. 

Discover all our upcoming events and secure your tickets today.

FinTech Magazine is a BizClik brand