Sparebank 1 Nord-norge · OSL:NONG
Sparebank 1 Nord-norge — ESG Presentation (2023)
29 slides from Sparebank 1 Nord-norge's sustainability presentation, 2023
Slide 1: Sustainability at SpareBank 1 Nord-Norge
Sustainability at SpareBank 1 Nord-Norge
Slide 2: Business strategy
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 Strategic
Slide 3: As the world's northernmost financial group, we must be a driving force for a sustainable future
As the world's northernmost financial group, we must be a driving force for a sustainable future in the north Reduce demographic risk in the region Green transition in Focus on the Arctic ocean Northern Norway
Slide 4: Sustainability targets for 2030 and 2040
70 % of exposure to Marine and Aquaculture sector should qualify for Green Frameworks in 2030 Net zero emission in a Contribute to a net / our credit portfolio by positive population growth 2040 in Northern Norway by 2030 ry 7 i eee,
Slide 5: 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 the GRI. The Green SNN’s broader strategy and commitment to r
Slide 6: Sustainability and ESG is part of our Governance
Sustainability and ESG is part of our Governance 6
Slide 7: Our approach to Sustainability
Our approach to Sustainability Sustainability and climate risk are embedded in the Group’s business and risk strategy Sustainability and climate risk are incorporated in the Group’s overarching governance documents and core processes, including financing (credit), liquidity management and corporate
Slide 8: The group is committed to a Net-Zero 2040 target
The group is committed to a Net-Zero 2040 target Illustration of a linear path to NET-ZERO 2040. The group will work and disclose on how we expect reach this goal during 2023. 8
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 40% from 2016 to 2026 To make it simpler for the To reduce financed To contribute to a greener To work for a more customer to make emissions
Slide 10: SNN's Commitment to Climate Action (1/2)
SNN’s Commitment to Climate Action (1/2) Transparent reporting aligned with TCFD (Task Force on Climate-Related Financial Disclosures) • SNN ha s a dedicated Strategy and Risk Management i n place SNN has started the work to keep track of the carbon exposure in its credit on tra nsition a nd physica
Slide 11: SNN's Commitment to Climate Action (2/2) FY21
SNN’s Commitment to Climate Action (2/2) FY21 Carbon exposure in the credit portfolio Sector’s share of Share of loan Sector’s share of Share of loan Sustainability Goal Sustainability Goal total emissions portfolio SNN total emissions portfolio SNN 1 Aquaculture 0% 4% 12 Sale and operation of real
Slide 12: CO2 emissions intensity benchmark
CO2 emissions intensity benchmark A comparison between nordic banks that disclose under the PCAF standard. (Note that our emissions are estimated for 2022 while the peer's disclosed emissions are from 2021.) Corporate book emissions intensity (Scope 1 + 2) in TCO2/mNOK 20 18 16 14 12 10 8 6 4 2 0 SN
Slide 13: SNN's Green Product Framework
SNN’s Green Product Framework Greening the asset base In 2020 The Framework was developed with a basis in criteria Ci cero a ssigned the set by Green Bond Principles, Green Loan Principles and the fra mework its top Climate Bond Initiative and other established market s core of ‘Excellent’ standards
Slide 14: From Product to Finance Framework
From Product to Finance Framework Accessing capital markets • SNN’s Green Product Framework ha s a focus on greenifying SNN’s l oan asset base. The Framework was es tablished to strengthen The Group’s work on climate ri s k i n the portfolio, i ts conformance with new regul ation and requirements, a
Slide 15: SNN Green Finance Framework
SNN Green Finance Framework SpareBank NORD-NORGE
Slide 16: SNN's Green Finance Framework
SNN’s Green Finance Framework Rationale Framework description • SNN intends to align its funding strategy with its mission, sustainability and climate strategy and targets SNN’s green finance instruments will finance/re-finance Use of Proceeds Eligible Green Loans • With this Green Finance Framework
Slide 17: Use of Proceeds
Use of Proceeds Environmentally Sustainable Green Buildings Renewable Energy Clean Transportation Management Of Living Natural (Residential & Commercial) Resources And Land Use Existing Buildings belonging to the ▪ Solar energy projects Land Vehicles Aquaculture: top 15% most energy-efficient ▪ Wind
Slide 18: Project Evaluation and Selection Process
Project Evaluation and Selection Process SNN’s Green Finance Committee Adherence to EU Taxonomy and EU GBS • SNN’s Green Finance Committee consists of members from the following departments: Corporate and Credit Treasury In its asset selection, SNN takes into account Retail Banking Do No Significant
Slide 19: Management of Proceeds
Management of Proceeds Description of SNN’s approach 1 The net proceeds of the green fi nance instruments issued under this Framework will be managed by SNN i n a portfolio approach SNN will s tri ve, over ti me, to a chieve a level of allocation for the Eligible Green Loan Portfolio 2 which matches
Slide 20: Reporting
Reporting SNN will make and keep readily available reporting on the allocation of an amount equal to the net proceeds to the Eligible Green Loan Portfolio and wherever feasible reporting on the impact of the Eligible Green Loan Portfolio, at least at the category level, to be ren ewed annually until
Slide 21: Reporting – Allocation
Reporting – Allocation Based on Q4 2022 numbers Eligible Green Loan Portfolio Green Funding Amount Instrument Due Amount Issuance Date (NOKm) (ISIN) Date (NOKm) Green Residential Buildings 6.786 NO0012626987 22.08.22 22.08.25 1.000 Green Commercial Buildings 3.188 NO0012534017 27.05.22 27.05.27 250
Slide 22: Reporting – Impact (1/5) (from 2021)
Reporting – Impact (1/5) (from 2021) Green Buildings Residential Buildings Commercial Buildings Green Residential Buildings Portfolio [sq.m] Green Commercial Buildings Portfolio [sq.m] 15% 10% Office buildings 34% Retail /commercial buildings Apartments Small residential houses Hotel and restaurant
Slide 23: Reporting – Impact (2/5) (from 2021)
Reporting – Impact (2/5) (from 2021) 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 0.7 – 25 140 566 508 hydropower Wind 45 45 153 153 Sum
Slide 24: Reporting – Impact (3/5) (from 2021)
Reporting – Impact (3/5) (from 2021) 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 1,189 13.0 mill. 22.1 mill. vehicles tailpipe emissions) Light Duty 27 0.3 mill. 0.4 mill. Vehicles Sum por
Slide 25: Reporting – Impact (4/5) (from 2021)
Reporting – Impact (4/5) (from 2021) Environmentally Sustainable Management Of Living Natural Resources And Land Use % of Stocks at or above Maximum Sustainable Yield (MSY) MSC eligible fisheries in SNN portfolio 100 % 29% 90 % 80 % 70 % 71% 71,00% 66,90% 60 % Trawl / Whitefish Purse seine / Pelagic
Slide 26: Reporting – Impact (5/5) (from 2021)
Reporting – Impact (5/5) (from 2021) Environmentally Sustainable Management Of Living Natural Resources And Land Use Improvement of conformity with the ASC standard in Norway for salmon Average effort-adjusted environmental non-conformity score for salmon in Norway 2 1,5 Farming of salmon is signifi
Slide 27: External Review - Second Party Opinion (1/2)
External Review - Second Party Opinion (1/2) ISS ESG SPO, 11 August 2021 SNN commissioned ISS ESG to assist with its Green Finance Instruments by Evaluation assessing three core elements to determine the sustainability quality of the instrument: Green Finance Instruments’ Consistent with issuer’s li
Slide 28: 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 Significant contribution to SDG 13 Limited contribution to SDG 11 Green Commercial Buildings Significant contribution to SDG 13 Limited contribution to SDG 11 Significant cont
Slide 29: EU Taxonomy Assessment: TSC, DNSH & MS
EU Taxonomy Assessment: TSC, DNSH & MS High level assessment Green Buildings Eligible Green Asset Category (Residential & Solar Power Wind Power Geothermal Power Hydro Power Transmission Systems Land Vehicles Maritime Vessels Commercial) Geography Norway Top 15% - (via Building code / Development of