The latest issue of SEB's Sustainable Finance Outlook explores how sustainable finance can play an important role in long-term security beyond just defence. The report maps the investment areas at the intersection of sustainable finance and security -including, but not limited to, renewable energy, resource efficiency, disaster preparedness, and cybersecurity.  

"It is now clear that Europe will pursue geopolitical independence" says Thomas Thygesen, Head of Strategy and Sustainability in SEB Equity Research. "This means security of supply will now drive energy investment. This will require significant investment not only in renewable energy, but also in grids, storage, AI, security/cybersecurity and resources." 

"An independent, secure and green energy system will require big investments, but it can be done.", Thygesen continues. "It will be expensive and difficult to achieve, but Europe has a big saving surplus to tap into for funding, and the starting point is not as bad as many appear to believe." 

The report also features an update on the sustainable finance market and its synergies with security investments.  

"The sustainable debt market is contracting, with new labelled bond and loan volumes declining across almost all categories and markets." says Gregor Vulturius, Lead Scientist and Senior Advisor in Climate & Sustainable Finance at SEB. "This decline in sustainable debt is particularly challenging for Europe, which needs to raise significant capital to strengthen its security." 

"Investments in security today go beyond military defence, requiring an integrated approach to interconnected risks like climate change, resource scarcity, and infrastructure vulnerabilities.", stresses Vulturius. "Scaling up investments in these areas can drive long-term sustainable development while enhancing resilience to both current and emerging security threats." 

The report also summarises recent actions by the European Commission to align key policies including its Sustainable Finance Framework to strengthen security. In addition, the report also contains insights from energy investment company Copenhagen Infrastructure Partners and Lithuanian energy transmission company EPSO-G on building a cleaner and more secure energy system. Finally, the Stockholm International Peace Research institute shares its views the implications of cybersecurity regulation on the private sector.  

About the Sustainable Finance Outlook  
The Sustainable Finance Outlook delivers insights and market intelligence for navigating the sustainability transition. Issued five times per year, the report engages a readership exceeding 2,500, comprising financial institutions, corporates, and other influential decision-makers within SEB's primary markets. Renamed from The Green Bond, this change underscores the significant evolution of sustainable finance, which now extends far beyond traditional fixed income to embrace a diverse spectrum of financial products, markets, and stakeholders.