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The capital managed by Nordic pension funds can play a significant role in driving a sustainable transition – both through the concrete effects of their investments and by sending signals to other investors. Yet, even as efforts are made to move in a more sustainable direction, pension capital continues to support unsustainable activities.

How are environmental and climate impacts considered in pension fund investments? How do pension funds respond to external demands – for example from environmental organisations or pension savers – to divest from fossil fuels? And how do sustainability officers and fund managers work with sustainability issues, and with what consequences for the future that pension capital is meant to help build? These are the questions examined by researchers in the project Fossil Free Futures – Divestment Across the Nordic Countries.

The research project is being carried out in Sweden, Denmark, and Norway, and the questions addressed intersect three major and complex areas: pension systems, climate change, and the global financial market. When global issues such as finance and climate meet national pension systems, both similarities and differences across the Nordic countries become visible – not least in how the issues are framed as political, ethical, or strictly economic.

– We have focused in particular on identifying the actors that draw attention to the issue of fossil fuels in pension capital, and studying how those who decide on or manage pension funds respond, says project leader and professor of sociology Linda Soneryd from Stockholm University.

To understand the forces driving change towards sustainability, we need to understand both who is pushing for change and what obstacles remain.

In Denmark, member-based pension funds have enabled the divestment issue to be driven forward by the members themselves – the pension savers. In Sweden, the issue has been pushed forward by pension managers, discussed in parliament, and scrutinized by environmental organisations.

This can be understood as the framework of shared knowledge: how much is left to financial actors to decide, what role experts play, who has access to information, and what democratic forums are available.

– It is also about the behaviour of financial actors in relation to broader climate policy. Norway has made large contributions to rainforest conservation, but in 2025 the Norwegian Oil Fund went against the advice of its own ethics council and invested in mining operations that threaten the Amazon rainforest. Such conflicts undermine public trust in decision-makers, says Soneryd.

Research on the ethical governance of the Oil Fund shows that an ethical framework can serve several functions. This is how Bård Lahn and Sebastian Svenberg, who belong to the Norwegian team in the project, explain it:

– The ethical framework has made it possible to engage actively with social and environmental issues, and it has also opened up space for criticism from the Norwegian public, who can now expect decision-makers to act in ways that are perceived as morally right.

More information:

Linda Soneryd
Stockholm University
linda.soneryd@score.su.se

Many individuals who have accumulated wealth in emerging sectors view the public sector as inefficient and dysfunctional. At the same time, it has provided them with opportunities to grow their own wealth.

A study entitled “Keeping New Money on Board: The New Nordic Wealth Elites and the Future of the Welfare Model”, part of the Future Challenges in the Nordic Countries research programme, examines the relationship between new economic elites and the Nordic welfare state in Finland and Sweden.

One of the key findings of the study is that a significant proportion of the new elites adopt a critical stance towards the welfare state. Their criticism is directed in particular at the inefficiency of the public sector and at the structures of social security, such as support for the unemployed or low-income groups.

– Many of those interviewed for the study believe that the public sector does not function properly. Instead, they see themselves as saviours who solve the public sector’s problems, says project leader Hanna Kuusela, Associate Professor of Sociology at the University of Jyväskylä.

The study has focused in particular on individuals who have recently accumulated wealth in the social and healthcare sector, the education sector and the technology sector. Their views have been explored through more than 70 research interviews. In addition, media materials have been used as a data source to examine how contemporary elites are portrayed or portray themselves in public debate. Public sources such as tax records, annual reports and company registers have also been utilised in the research.

However, many of the interviewees have a somewhat ambivalent relationship with the public sector, as it is often their companies’ largest client and a vital condition for their business operations.

According to the project’s preliminary findings in Finland, many young high achievers in the technology sector nevertheless stand out from the group, as many of them support the Nordic model. They are the subject of research at the University of Helsinki, where founders and executives of companies leveraging new digital technologies were interviewed. These leading figures of the new economy consider themselves to have benefited substantially from the Nordic welfare state and therefore regard its preservation as important for future generations as well.

In one of the two Finnish sub-studies, conducted at the University of Jyväskylä, the researchers interviewed around 90 further individuals, who have made large charitable donations. Their attitudes towards the Nordic social model are also often positive.

– In these people’s discourse, private philanthropy does not compete with the welfare state; rather, it is seen as part of an ethos of shared responsibility, Kuusela says.

There are some differences between the two countries in terms of the background of the interviewees, as in Sweden, the study conducted at the University of Stockholm includes individuals who have become wealthy in the education sector. In Sweden the marketization of education has created new wealthy elite groups and has been an object of broad public discussion. This new "corporate welfare elite" regard themselves as entrepreneurs who offer the Swedish school sector innovation, cost efficiency and good results in terms of education – but they remain the subject of much public critique.

– In Finland, there is currently hardly any discussion at all about opening up primary or secondary education to the market, Kuusela notes.

The research project will publish, among other outputs, the English-language book Rich Radicals, to be released later this year, which examines Finnish elites and their views on the Nordic model. Several research articles will also be published as the project approaches its conclusion.

Further information:

Hanna Kuusela
Associate Professor, University of Jyväskylä
hanna.r.kuusela@jyu.fi

Changes that digitalization has brought to students’ lives are greater and more striking than expected, researchers say. In particular, the interaction between teachers and students after school hours comes as a surprise.

Digitalization has led to major changes in everyday school life. This is evident from the material collected by researchers behind the project Nordic Basic Schools as Past Present and Future Sites for Solving the Challenges of Making Diverse Inclusive Knowledge-based Societies. The project focuses on four lower secondary schools in four different Nordic countries.

Although the project won’t be completed until 2027, the researchers have finished collecting material and it offers several new insights. Among other things, researchers were surprised to find that many teachers are in contact with their students via chats even after 8 p.m. This can for example involve help with various school assignments.

– This was new to us and it’s something we don’t think others have looked at much either, says Project Leader and Professor Fritjof Sahlström at the University of Helsinki.

Is help distributed equally?

Sahlström emphasizes that digitalization has brought a lot of good with it. At the same time, it brings forth new challenges, particularly when it comes to the original ambitions of equality in Nordic comprehensive schools.

– Classrooms before digitalization were special in the sense that everyone could see what was happening and whether the teacher was helping someone. There were no secrets. But with screens, it becomes silent.

It’s no longer clear to everyone who is helping whom. Meeting places have become fewer and less accessible.

– There is reason to suspect that some of the schools’ equality goals are not being met. This type of interaction between students and teachers may not be distributed very fairly – teachers might be more inclined to contact certain students in the evening than others.

With adults chatting with students outside school hours, there might also be a need to discuss boundaries: how much and in what way is it okay to be in contact with students late at night?

Overall, it’s clear that school and students’ spare time are increasingly intertwined today. People from one area of the student’s life are present in others.

– We have interesting documentation, like screenshots, showing how students might chat with grandparents at school, for instance, and then use school contact apps late at night. This is a significant and clear change, says Sahlström.

Enlightening Walk-Along Interviews

The research project consists of three sub-studies. In addition to examining what digitalization has meant for today’s students, researchers have looked at educational history: how Nordic comprehensive schools of this type came to be. They have also looked at what significance the comprehensive school had for students who are now in their fifties. Researchers conducted walk-along interviews, during which they walked around the school and its surroundings with former students.

– We can see that the school’s significance as a social space has been enormous for these students. This became very clear when they reflected on what the school meant for who they were and who they became.

Both attending school as well as how the school was organized – for example, the placement of corridors and special education classrooms – was important.

The results of the project will be compiled into a book. The book will be published in 2027.

More information:

Project Leader Fritjof Sahlström
Professor in pedagogy at University of Helsinki
fritjof.sahlstrom@helsinki.fi

How Can Automated Decision-Making Be Used in the Public Sector Without Undermining Legal Certainty and Public Trust?

AI-driven decision processes are gaining ground in Nordic welfare states, promising to simplify and streamline public administration. At the same time, they pose major challenges concerning transparency, legal certainty, and trust.

These shifts in the relationship between the welfare state and its citizens are examined in the interdisciplinary research project The Automated Administration: Governance of Automated Decision-Making in the Public Sector, led by Stefan Larsson, Associate Professor at Lund University. The project focuses on governance, law, and policy development in Sweden and Finland.

“We want to understand how the state can use AI in a way that is both efficient and fair, without citizens losing confidence in public authorities,” says Larsson.

Technology Outpacing Legislators

Both technology and legislation are evolving at breakneck speed. The EU’s AI Act has changed the playing field, and researchers are studying how this regulation affects national governance. A key challenge is the so-called pacing problem – the fact that rapid technological development creates a moving target for lawmakers.

“Legislators want to regulate AI but leave much open for later adjustments. This is understandable given howgenerative AI made a huge leap during the legislative process, but it challenges the need for legal predictability,” Larsson explains.

According to him, it is particularly interesting that the research project has taken place during such a formative period. The team has identified national differences, with Sweden and Finland pursuing different strategies.

“Finland was quick to introduce AI guidelines, while Sweden has historically been more cautious. Despite a common EU framework, the law takes different shapes in the two countries, and we are exploring what that means.”

New Methods for Physical Prototyping

The research group has worked across disciplines, combining political science, legal studies, and other social sciences. One example of methodological innovation was a workshop in Helsinki where the concept of a ‘kill switch’ in AI systems was explored through physical prototyping, led by Associate Professor Riikka Koulu. A kill switch (also called an emergency stop button) is a feature that allows an AI system to be shut down if it behaves unexpectedly.

“It was a new way of approaching legal theory. Embodying concepts with tape and sticks sparked different ideas than we get at the desk. These often human-shaped but metaphorical understandings of what AI is, and how it can or cannot be regulated, ultimately shape legislation – with all its strengths and weaknesses.”

The researchers have also studied how AI affects citizens’ interactions with the state, for example through chatbots. They have followed the establishment of Sweden’s new Payments Authority (Utbetalningsmyndigheten), which, despite its name, investigates irregularities rather than deciding on benefit payments. According to Larsson, this reflects both conceptual and practical shifts in how technology’s role is framed and described, as well as broader changes in the citizen–state relationship:

“We must not forget who public administration is meant to serve when studying trust and fairness in the meeting between technology-driven change and its legal governance.”

The project maintains close contact with public authorities and has organised several seminars to foster dialogue between research and practice. The goal is to contribute to a public administration where AI is used responsibly, with the citizen at the centre.

More information:
Project Leader: Stefan Larsson,
Associate Professor at Lund University
Email: stefan.larsson@lth.lu.se

Researchers are looking into how precarious and informal jobs are shaping people’s lives. Is the Nordic welfare state truly equal for everyone who works within it?

Professor Lena Näre at the University of Helsinki leads the research project Managing Precarious and Informal Work in the Nordic Countries, which examines precarious employment in Finland, Sweden, and Norway through in-depth interviews with those directly affected.

– We want to understand what precarity means in a Nordic context and how it shapes everyday life in practice, Näre emphasizes.

The project brings together Nordic and interdisciplinary perspectives with a strong focus on concrete realities. The research targets sectors where working conditions often iare nsecure: cleaning, construction, and platform-based work. Migrant workers’ experiences are at the heart of the study, their voices otherwise being frequently absent from official statistics.

– Migrant workers often occupy the most vulnerable positions, which is why it is crucial that their voices are heard, says Näre.

The Rise of the Working Poor

According to Professor Markus Jäntti at Stockholm University, mapping the scope of precarious work and its evolution over time is challenging. The study reveals a clear trend: low-wage employment is increasing across the Nordic region.

– Statistics mainly cover the household population, meaning people with permanent residence permits. But our analyses show that the share of low-paid workers has grown in all Nordic countries, and so has the number of working poor. In the past, it was almost impossible to be poor while working full-time. That reality has changed.

Exploitation in Key Sectors

Interviews uncover severe exploitation in construction, including underpayment, unpaid wages and manipulated working hours. In cleaning, piece-rate systems drive harsher work rhythms and unpaid overtime. Platform work often disguises employment as self-employment, stripping workers of social security and even jeopardizing their ability to renew residence permits.

– These are not isolated cases, they reflect a broader structural problem. We need stronger oversight and a critical review of how residence permit systems create dependency on employers, Näre stresses.

Declining Union Membership

Trade unions remain important but struggle to reach migrant workers.

– Unions do their best, but membership has dropped sharply across the Nordic countries, Näre notes.

In Finland, unionisation fell from 74% in 2000 to below 60% in 2019 – a trend mirrored in Sweden. This decline weakens workers’ bargaining power and increases the risk of exploitation.

Rethinking the Welfare State

In Sweden, new forms of grassroots organizing have emerged, often based on direct democracy—a model researchers believe could strengthen future labor rights.
The project’s findings will be published in international journals and open-access thematic issues. Researchers also plan short videos, columns, and articles to reach a wider audience.

– We hope this sparks a debate about what kind of welfare state we want to preserve – and for whom.

For more information, please contact:
Professor Lena Näre, Project Leader
University of Helsinki
lena.nare@helsinki.fi

In today's Nordic region, borders are both passageways and filters, where work at national crossings has become a tool for patching up ‘the cracks in the external Schengen borders’.

The practical work at the borders and how it is affected by new technology is the focus of the interdisciplinary research project Unpacking the Conventions Between Openness and Security in the Nordic Region: Digital Public Surveillance Practices at Three State Borders. It is led by Elena Raviola, Torsten and Wanja Söderberg Professor of Design Management at the University of Gothenburg.

“National borders have always been political objects that define countries’ jurisdictions. They have been moved through war, annexation or colonisation and politicised with slogans such as ‘strong borders’. But what does this actually mean in an integrated Nordic region?” says Raviola.

The Schengen Agreement's promise of free movement of people, goods and services has meant that border work constantly balances openness against security. The research team has reviewed a large number of documents and reports related to borders in Europe and the Nordic region, brought to the fore by various crises over the past 20 years.

There are many practical issues. In Sweden, the physical borders extend over large areas. Administrative work increases, for example, when railways cross borders, involving different owners and authorities.

Schengen increased border work

Against this backdrop, the long history of Nordic cooperation becomes particularly interesting. Raviola mentions the Nordic Passport Union from the 1950s and the Nordic Council of Ministers' goal of making the region the most integrated in the world by 2030. In parallel with this, the EU is strengthening its external border controls, including requirements for biometric identification of non-Schengen citizens, which is leading to growing European databases.

“The internal borders have become tools for catching what the Schengen border has missed – ‘the cracks in Schengen's external border’, as one informant put it. Border work is being ramped up again after a period of dismantling. This is where new technology comes in, with the hope of being able to monitor borders without closing them,” says Raviola.

Human cooperation at the border was a surprise

Surveillance is difficult to organise in practice. Closing all borders increases the burden on those who have to decide locally who is allowed to pass. The countries' systems differ and information sharing is often bureaucratic and slow.

This makes personal contacts and networks valuable. This is shown by the research group's interviews with officials at the border between Denmark and Sweden and along the 1,630 km long Swedish-Norwegian border – Europe's longest land border. In addition to customs and police, the researchers interviewed airport staff, border committees and other stakeholders.

Elena Raviola says that the discovery of how important human cooperation between states was came as a surprise.

“When border colleagues from different countries work closely together, work routines are created that help them filter and share information more quickly.”

There are several cross-border initiatives. On the Swedish-Norwegian border, the countries share the police station for the municipalities of Eda and Eidskog. Between Sweden and Denmark, a police group rotates between the countries.

Technology records everything – but interprets poorly

Technology also requires interpretation. Number plates can become illegible due to weather conditions or be linked to incorrect data.

A new Swedish law has expanded the powers of the police in certain border areas, including permission for ANPR cameras. For example, they record all vehicle passages and automatically link the data to other databases. This not only extends the boundaries geographically, but also in time, as the information is stored and can be used much later.

The researchers also aimed to explore the politically and ethically charged dimensions of borders through public engagement. In spring 2025, the project partnered with the Röhsska Museum in Gothenburg on an initiative focused on biometric surveillance. The program featured artworks, seminars, and role-playing activities with students. For example, participants were asked to narrate the story of an object encountered at a border crossing

“Rather than pointing fingers, we wanted to use speculative methods to concretise the issues. Crossing the boundaries between art and research opens up new spaces for discussion about the development of society.”

On 23 October, the innovative initiative will continue with the seminar Borders, Bodies and Databases at the IT University of Copenhagen.

For further information, please contact:

Professor Elena Raviola
University of Gothenburg
elena.raviola@gu.se