Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — Debt Investor Presentation (2024)
24 slides from Sparebank 1 Nord-norge's debt investor presentation, 2024
Slide 1: Sustainability at SNN
Sustainability at 1 Photo by: Petter Schive
Slide 2: Northern Norway as a strategic region for the sustainable transition
Photo by: Mats Gangvik Northern Norway as a strategic region for the sustainable transition • 1/3 of Norwegian fish exports in net value • 18% of Norway's power production … With only 9% of the Norwegian population Sources: SSB: 10482, Elhub.no
Slide 3: Driving force for a sustainable future in the north
As the world's northernmost financial group, we must be a driving force for a sustainable future in the north
Slide 4: SNNs business strategy
SNNs business strategy Vision “For Northern Norway” Mission We shall, better than anyone, understand and contribute to what is important for people and businesses in Northern Norway Financial goals 1. Profitability (RoE) 2. Efficiency (C/I) 3. Financial strength (Capital adequacy) 4. Dividends Strat
Slide 5: The Path Towards Net Zero 2040
The Path Towards Net Zero 2040 • Emission paths for SNNs → 2030 • Our most important instruments for cutting emissons • Green capital • Green lending • Green knowledge • Community dividend of 200 MNOK towards Local Green transition in 2023 (Samfunnsløftet) Road to Net-Zero 2040
Slide 6: Decarbonization targets 2030
Decarbonization targets 2030 Mortgages Commercial Corporate Own operations real estate portfolio -50% kgCO2e/m2 -30% kgCO2e/m2 -42% tCO2e -42% tCO2e Scope: 2 Scope: 2 Scope: 1 and 2 Scope: 1, 2 and 3 Method: SDA Method: SDA Method: absolute Method: Absolute contraction contraction The transition pat
Slide 7: Transition pathways
Transition pathways Corporate Portfolio Transition 600.000 Remaining sectors pathways 500.000 Wholesale and retail trade, hotels and 400.000 restaurants Transport 300.000 Agriculture and forestry 200.000 100.000 Manufacturing 0 Fishery and aquaculture Transition pathway Commercial Real Estate Transi
Slide 8: SNN's sustainability overview
SNN’s sustainability overview SNN has taken initiative on multiple fronts to integrate sustainability group-wide ESG ratings We report our performance related to Green Finance Framework is an extension of sustainability in accordance with CSRD and ESRS. Green SNN’s broader strategy and commitment to
Slide 9: SNN's Sustainability Objectives
SNN’s Sustainability Objectives Aligned with UN Sustainable Development Goals Liquidity management Products Credit To reduce Group greenhouse gas emissions by 6 % in 2024 in line with net zero ambition To make it simpler for the To reduce financed To contribute to a greener To work for a more custom
Slide 10: SNN Green Finance Framework 2024
SNN Green Finance Framework 2024
Slide 11: SNN's Green Finance Framework
SNN’s Green Finance Framework Rationale Framework description • SNN sees the commitment to decarbonization of the economy as a sustainability priority. By issuing green finance instruments, SNN intends SNN’s green finance instruments will finance/re-finance to align its funding strategy with its mis
Slide 12: Use of Proceeds
Use of Proceeds Environmentally Sustainable Green Buildings Renewable Energy Clean Transportation Management Of Living Natural (Residential & Commercial) Resources And Land Use Residential & Commercial buildings Solar power Land vehicles Aquaculture ▪ Buildings built ≥2021: NZEB-10% ▪ Low carbon veh
Slide 13: Project Evaluation and Selection Process
Project Evaluation and Selection Process SNN’s Green Finance Committee Contribution to EU Environmental Objective and EU Taxonomy • SNN’s Green Finance Committee consists of members from the following SNN takes the EU Taxonomy into due consideration. departments: Eligible loans should substantially
Slide 14: Management of Proceeds
Management of Proceeds Description of SNN’s approach 1 The net proceeds of the green finance instruments issued under this Framework will be managed by SNN in a portfolio approach SNN will strive, over time, to achieve a level of allocation for the Eligible Green Loan Portfolio 2 which matches or ex
Slide 15: Reporting
Reporting SNN will make and keep readily available reporting on the allocation of an amount equal to the net proceeds to the Eligible G reen Loan Portfolio and wherever feasible reporting on the impact of the Eligible Green Loan Portfolio, at least at the category level, to be renewed annually until
Slide 16: Reporting – Allocation
Reporting – Allocation Based on 31 Dec 2023 numbers Eligible Green Loan Portfolio Green Funding Amount Instrument Due Amount Issuance Date (NOKm)2 (ISIN) Date (NOKm)1 Green Residential Buildings 7,789 NO0012626987 22.08.22 22.08.25 1,000 Green Commercial Buildings 1,408 NO0012534017 27.05.22 27.05.2
Slide 17: Reporting – Impact (1/5) (FY 2023)
Reporting – Impact (1/5) (FY 2023) Green Buildings Residential Buildings Commercial Buildings Green Residential Buildings Portfolio [sq.m] Green Commercial Buildings Portfolio [sq.m] 18% 11% 10% Office buildings 11% Retail/commercial buildings Apartments Small residential houses Hotel and restaurant
Slide 18: Reporting – Impact (2/5) (FY 2023)
Reporting – Impact (2/5) (FY 2023) Renewable Energy SNN’s portfolio of hydropower and wind energy plants Total emissions avoided Capacity Total capacity Estimated production Expected production [MW] [MW] [GWh/yr] [GWh/yr] (vs. baseline) Small 1.4 – 23 334 1,027 870 hydropower Wind 2.4 – 41 63 212 21
Slide 19: Reporting – Impact (3/5) (FY 2023)
Reporting – Impact (3/5) (FY 2023) Clean Transportation SNN portfolio of EV vehicles Total emissions avoided Number of Sum km/yr Sum person vehicles km/yr (vs. average vehicle with Passenger vehicles 3,368 28.6 mill. 48.7 mill. tailpipe emissions) Light Duty Vehicles 86 0.96 mill. 1.4 mill. Heavy-du
Slide 20: Reporting – Impact (4/5) (FY 2022)
Reporting – Impact (4/5) (FY 2022) Environmentally Sustainable Management Of Living Natural Resources And Land Use Use of MSC certification % of Stocks at or above Maximum Sustainable Yield (MSY) Indicator World ex- 100 % Norway World Norway 90 % Seafood volume covered by MSC certification in 1,306,
Slide 21: Reporting – Impact (5/5) (FY 2023)
Reporting – Impact (5/5) (FY 2023) Environmentally Sustainable Management Of Living Natural Resources And Land Use Global Aquaculture Continues To Grow Average effort-adjusted environmental non-conformity score for salmon in Norway 2 1,5 Farming of salmon is significantly lower in carbon impact 1 co
Slide 22: External Review - Second Party Opinion (1/2)
External Review - Second Party Opinion (1/2) ISS ESG SPO, 31 January 2024 SNN commissioned ISS ESG to assist with its Green Finance Instruments by assessing three core elements to Evaluation determine the sustainability quality of the instrument: Linking the transaction(s) Consistent with issuer’s s
Slide 23: External Review - Second Party Opinion (2/2)
External Review - Second Party Opinion (2/2) Contribution to SDG assessment GBP/GLP Category SDG Green Residential Buildings Contribution to SDG 7 and 13 Green Commercial Buildings Contribution to SDG 7, 11 and 13 Renewable Energy Contribution to SDG 7 and 13 Clean Transportation Contribution to SDG
Slide 24: EU Taxonomy Assessment: TSC, DNSH & MS
EU Taxonomy Assessment: TSC, DNSH & MS Assessment performed by Eligible Green Asset Category Green Residential Buildings Green Commercial Buildings Renewable Energy Clean Transportation Geography Norway EU activity 7.7 7.7 4.1, 4.2, 4.3, 4.5, 4.10 6.3, 6.5 TSC alignment = 77% 1 Alignment with the Te
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