Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Østlandet — Debt Investor Presentation (March 2022)
25 slides from Sparebank 1 Ostlandet's debt investor presentation, March 2022
Slide 1: Green Bond Investor Presentation
Green Bond Investor Presentation March 2022
Slide 2: Agenda
Agenda • Green Bond Framework • Highlights • Use of Proceeds • Allocation Report • Impact Report • EU Taxonomy Assessment • ESG and Sustainability in SpareBank 1 Østlandet • Sustainability Overview • Strategy Plan 2022-25 • The Path to Net Zero • ESG Assessment in the credit process • Sustainable Pr
Slide 3: Green Bond Framework
Green Bond Framework SpareBank O@STLANDET
Slide 4: Green Bond Framework - Highlights
Green Bond Framework - Highlights • Follows best market practice and in line with the ICMA • Pre-issuance impact reporting calculated by specialist Green Bond Principles (GBP) consultant Multiconsult • Prepared by the Green Bond Committee, including • Cicero second party opinion: Medium Green repres
Slide 5: Use of Proceeds
Use of Proceeds Strict Eligibility Criteria in line with ICMA Standards, best market practices and upcoming EU regulation ICMA GBP1 Eligible Category Description of the Eligible Loans UN SDGs EU Objectives • Residential buildings in Norway ✓ Before 31st of December 2020: Buildings belonging to the t
Slide 6: Management of Proceeds
Management of Proceeds • Allocate amount equal to net proceeds from the issue of Green Bonds to Eligible Green Loan Portfolio • Size Eligible Green Loan Portfolio should match or exceeds balance of net proceeds from outstanding Green Bonds • Pending allocation of net proceeds of any tranche of Green
Slide 7: Eligible Green Asset Allocation
Eligible Green Asset Allocation • Eligible Assets NOK 18,018 million NOK 18,018 million • NOK 18,018 million Clean Transportation 6% • 14.9 % of Gross Lending to Customers Renewable Energy 4% Forestry 5% • Green eligible assets transferred to SB1 Boligkreditt 20% • NOK 9,644 million Commercial build
Slide 8: Allocation Report 4Q2021
Allocation Report 4Q2021 Own Balance
Slide 9: Impact Report 4Q 2021
Impact Report 4Q 2021 1Relates to the Annual Increase in CO2 Storage of the financed assets. The mean (50%) has been taken from Multiconsult’s estimated range, which is considered a conservative approach given that Multiconsult states: “the annual sequestration capacity of forest-based loan portfoli
Slide 10: EU Taxonomy Assessment: TSC, DNSH & MS
EU Taxonomy Assessment: TSC, DNSH & MS High-level assessment1 vs EU Taxonomy Delegated Acts (June 2021) 1 Taxonomy alignment assessments presented within Cicero’s SPO may differ to the above, as Cicero’s EU Taxonomy assessment is b ased on the outdated penultimate draft EU Climate Delegated Acts (pu
Slide 11: Allocation Report 4Q2021
Allocation Report 4Q2021 Included eligible green loans transferred to SpareBank 1 Boligkreditt
Slide 12: External Review
External Review • SpareBank 1 Østlandet has obtained an independent Second Party Opinion from Cicero, confirming the validity of the Green Bond Framework & compliance with the ICMA Green Bond Principles • Green Shading given per Use of Proceeds category, where overall Framework has received: Medium
Slide 13: ESG and Sustainability
ESG and Sustainability SpareBank @)
Slide 14: SpareBank 1 Østlandet's sustainability overview
SpareBank 1 Østlandet’s sustainability overview Green Asset Ratio: Introducing eligibility Assets: reporting 19 % In scope ESG ratings 81 % Out of scope Sustainability Reporting Green Bond Framework External Sustainability Initiatives Sustainable Edge: ESG risk Climate risk assessment implementation
Slide 15: Creating together
Business idea We exist so that people and businesses can succeed Together we create sustainable growth and development in Eastern Norway Vision Creating together Targets 2025 We know our customers We create tomorrow’s We are a significant We have one of the most and we create the best relationship b
Slide 16: Sustainable operations and development
Sustainable operations and development Extend and develop a running theme through our history of more than 175 years The Bank will take a leading role in the green transition, both as a facilitator and a driver for sustainable solutions: • Green lending and funding • Advisory services • Responsible
Slide 17: We are a driver for sustainable transition
We are a driver for sustainable transition This means that we We have succeeded in 2025 if • Contributes to a sustainable transition in our market • We have contributed to a sustainable zero-emission society by reducing CO2 emissions from our business and in our • Ensures that sustainability is an i
Slide 18: The Path to Net Zero
The Path to Net Zero Energy and Climate in our business operations Specific ESG and climate targets 1,000 691.3 750 tCO2e Retail Division 500 691.31 tCO2e • By 2050, 40 % of residential buildings built before 2012 (TEK 10) has been 250 upgraded and has improved their energy efficiency by 30 %. • By
Slide 19: Climate Risk assessments in the credit process
Climate Risk assessments in the credit process Incorporation of climate risk, as well as other ESG-risks into the credit process have been prioritized. Relevant sector specific questions are asked at each credit approval. But this is still a work in progress. All relevant parts of the bank include c
Slide 20: ESG due diligence assessment at loan origination
ESG due diligence assessment at loan origination Example
Slide 21: Loan book CO2 reporting (Scope 1, 2 & 3)
Loan book CO2 reporting (Scope 1, 2 & 3) Carbon-related credit exposure – 4Q 2021 • Method: Based on proportion of lending by Norwegian banks and financial institutions the Bank accounts for, then multiplied by total emission from individual industry. • Assumptions: Individual industry’s borrowing n
Slide 22: Sustainable Products and ESG Advisory Service
Sustainable Products and ESG Advisory Service Green mortgage Do you own, or are considering buying a home with EPC level A or B? You get lower interest rates with a green mortgage. Green car loan Green agricultural loan How to have the right focus Are you buying an electrical car? We give you Instal
Slide 23: Sustainability Ratings
Sustainability Ratings • A ESG 100 – Oslo Stock Exchange • #1 among savings banks • A- CDP – Carbon disclosure project • 1 of 9 Norwegian companies MSCI • AA Sustainalytics • 12.3 ESG Risk Rating (“Low Risk”) • #3 Overall Fair Finance Guide • #1 Among Norwegian listed banks For more information on o
Slide 24: Contact details
Contact details Bjørn-Erik R. Orskaug Investor Relations +47 922 39 185 bjorn-erik.orskaug@sb1ostlandet.no Cathrine Mordal Head of Treasury +47 480 02 537 cathrine.mordal@sb1ostlandet.no Karoline Bakka Hjertø Head of Sustainability +47 992 27 303 karoline.hjerto@sb1ostlandet.no Runar Hauge Portfolio
Slide 25: Creating together
Creating together We have worked for more than 175 years for people and businesses to succeed Our work continues
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