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Feminine Power in the Capital World: How Scandinavian Women Shape the Future of Business. A deep dive into the perspectives on sustainability held by financially influential Scandinavian women and their impact on the economy.
It's not just money in motion in Scandinavia – it's a powerful wave of financially influential women changing the game. A recent survey by Formue reveals that Scandinavian women are the driving force behind a sustainability revolution that will reshape both the financial industry and the green transition. The women at the forefront think holistically and long-term when managing their assets. By engaging in sustainable management and ownership, they not only strive for financial success but also address issues of equality, inclusion, and corporate social responsibility. How can women's choices to invest their money in companies that share their values impact the corporate landscape and its development?
Family businesses are shifting.
In Scandinavia, as in the rest of the world, family businesses constitute the dominant form of ownership. These businesses have often survived from one generation to the next. In 2022, Formue established a Nordic Center for Ownership and Sustainability, where specialists work collaboratively with families to develop sustainable strategies for businesses and ownership. Key questions such as 'Is it natural for us to continue being owners?' and 'Do we have the right skills to adapt the company to societal changes?' are now at the forefront as family businesses contemplate their future.
An interesting observation is that today's young women are taking early responsibility for family businesses, often before the generational shift has begun. Historically, women have had limited opportunities to influence ownership decisions, but the current generation of heirs has taken significant steps toward gender equality. Their demands on the company reflect their sustainable perspectives and commitment, acting as driving forces for strategic changes. This shift in dynamics anticipates a future where the business landscape is characterized by a sustainable and inclusive vision.
Women bring new perspectives and pose important questions that contribute to the development of owners, businesses, and families. Today's youth also take an active role by actively demanding that family businesses reflect their sustainable perspectives and commitment. Before the generational shift even begins, they initiate strategic changes that align with their visions for the company's future.
Power Expansion in the Nordic Region
Women's power over wealth is rapidly growing in the Nordic region. According to the Scan Her Wealth survey, women now control one-third of the world's total global wealth. In Western Europe, women hold over 4,600 billion euros, and this figure is expected to double by 2030. An increase in female entrepreneurs, more women in high-paying positions, and increased gender equality during generational transitions are some of the factors driving this growth. While the majority of financially influential women in Scandinavia have built their assets themselves, the number of women inheriting their assets, especially in Norway, is on the rise. However, it should be noted that this year's Scan Her Wealth survey shows a decrease in the percentage of women stating that they have created their financial assets themselves compared to previous years. The results vary between countries, with Denmark standing out with a higher percentage of women creating their own assets compared to Norway and Sweden.
Regardless of the source of their fortunes, women in this study agree on the importance of sustainable investments. Their overall trend is to be engaged in contributing to sustainable development while striving for a good return on their investments. Women's holistic view and long-term perspective on capital management and ownership are now changing the game for family businesses in the Nordic region. By integrating sustainable investments and taking social responsibility, women create a positive impact that extends beyond just the economic aspects. According to the latest Scan Her Wealth survey, women are not only passive owners but also active owners and board members. They have high expectations for the companies they invest in, thus creating a sustainable change that ripples through the business world like concentric circles.
The survey results also reveal that women have a significant impact on wealth inheritance. With women inheriting or creating their own assets, the total wealth controlled by women is expected to double by 2030. This phenomenon is driven by increased female entrepreneurship, enhanced gender equality efforts, and a longer life expectancy for women.
The New Nuances in Wealth Building
While women, in general, have built their financial assets through marriage, the responses vary between countries. Danish women seem to have a higher proportion of wealth built through marriage compared to their Swedish and Norwegian counterparts. Despite these variations, it is clear that women's commitment to sustainability and long-term returns transcends national borders and is a common driving force.
Formue's survey suggests a significant shift in the Nordic business landscape, where women play an active and central role in sustainable capital management and ownership. Their choice to invest in companies that share their values of sustainability and social responsibility becomes a catalyst for change, and this positive impact extends beyond the economic aspects as it reshapes corporate responsibility towards society. The shift in ownership and capital management, especially within family businesses, indicates a future where sustainability and inclusion become central components of business decisions. With this development, we can expect a future where businesses in the Nordic region are driven by a holistic view of sustainability and long-term perspective, with women's influence serving as a catalyst for positive changes.
Source: Formue Sverige och McKinsey & Company