Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 Østlandet — Debt Investor Presentation
26 slides from Sparebank 1 Ostlandet's debt investor presentation
Slide 1: Green Bond Investor Presentation
GREEN BOND INVESTOR PRESENTATION
Slide 2: Sustainability Strategy
SUSTAINABILITY STRATEGY
Slide 3: SpareBank 1 Østlandet's overarching sustainability strategy
SpareBank 1 Østlandet’s overarching sustainability strategy Sustainability strategy 1. Actively support customers’ 1. All employees are aware sustainability efforts and Consider of our commitment to promote external sustainable Be a driving sustainability in sustainability innovation force behind bo
Slide 4: SpareBank 1 Østlandet's sustainability overview
SpareBank 1 Østlandet’s sustainability overview Newly inaugurated green bond framework is an ESG ratings extension of the Bank’s Sustainability / ESG broader strategy & Disclosure Sustainability commitment to Reporting Green Bond Framework sustainability External Sustainability Global Initiatives Su
Slide 5: Commitment to Climate Action
Commitment to Climate Action Sustainable granting of Internal climate and Responsible investment and Sustainability requirements credit and establishment of environmental work ownership for suppliers and partners customer relationships •Become climate neutral •Work continuously towards •We will inve
Slide 6: Strengthened climate initiatives in 2020 and ambitions going forward
Strengthened climate initiatives in 2020 and ambitions going forward • The bank was on of the first bank to conduct and publish the ambitious Impact analysis from the UNEP FI (The United Nations Environment Program Finance Initiative) Principles for Responsible banking., showing that climate and res
Slide 7: Specific ESG and climate targets
Specific ESG and climate targets Retail Division • By 2050, 40 % of residential buildings built before 2012 (TEK 10) has been upgraded and has improved their energy efficiency by 30 %. • By 2050, 80 % of Residential buildings built from the 1st January 2021 are in line with the EU taxonomy. • By 202
Slide 8: Embedding Climate Risk within the bank & our credit processes
Embedding Climate Risk within the bank & our credit processes Climate Risk assessments in the credit process We have started to incorporate climate risk into the credit process. This is not just climate work, but also good banking practice. Climate risk is particularly prominent in three areas where
Slide 9: ESG DD assessment at loan origination (example)
ESG DD assessment at loan origination (example) Due diligence assessment 9
Slide 10: Loan book CO2 reporting (Scope 3) - carbon-related credit exposure
Loan book CO2 reporting (Scope 3) - carbon-related credit exposure* Carbon-related credit exposure • 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 indus
Slide 11: Sustainable Products - Mortgages
Sustainable Products - Mortgages 1 Green Mortgages • SpareBank 1 Østlandet offers Green Mortgages for environmentally friendly and energy-saving measures in new and old homes • Ydalir is built as part of ZEN (Zero • The loans have favourable interest rates Emission Neighbourhood) – a research projec
Slide 12: Sustainable Products (continued)
Sustainable Products (continued) 2 Green Agricultural Loans 3 Green Car Loans • For agricultural customers, the bank wants to • The Bank’s subsidiary, SpareBank 1 Finans contribute to lower emissions and the Østlandet, provides Green Car loans for adjustment to a more sustainable society electrical
Slide 13: Sustainability ratings
Sustainability ratings ESG 100 – The Oslo Stock Exchange • A- CDP • A MSCI • A (scale AAA-CCC) Sustainalytics • 20.27 ESG Risk Rating • 86% Fair Finance Guide • #3 rank out of 14 Norwegian banks • In September The Governance Group published the report «ESG 100 – The Oslo Stock Exchange». The report
Slide 14: Green Bond Framework
pee i y N N N BOND FRAMEWORK
Slide 15: Green Bond Framework - Highlights
Green Bond Framework - Highlights • Follows best market practice and in line with • Pre-issuance impact reporting calculated by the ICMA Green Bond Principles (GBP) specialist consultant Multiconsult • Prepared by the Green Bond Committee, • Cicero second party opinion: Medium Green including repres
Slide 16: Use of Proceeds
Use of Proceeds Strict Eligibility Criteria in line with ICMA Standards, best market practices and upcoming EU regulation ICMA GBP 1 Eligible Category Description of the Eligible Loans UN SDGs EU Objectives • Residential buildings in Norway ✓ Before 31s t of December 2020: Buildings belonging to the
Slide 17: Process for Project Evaluation and Selection
Process for Project Evaluation and Selection Loan selection process: Eligible loans should: • Contribute to at least one of the EU Environmental Objectives 1. Applications include both ESG dialogues with customers and ESG due diligence analyses • Not significantly harm (‘DNSH’) any other EU Environm
Slide 18: Management of Proceeds
Management of Proceeds Approach • Allocate amount equal to net Assets Liabilities 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 Net Green Bonds Loans Proceeds • Pendi
Slide 19: Allocation Reporting (FY20)
Allocation Reporting (FY20) Residential Buildings (NOK m) Green Bond Portfolio 904 NOK (m) % Green Residential Buildings 21,802 84% Residential buildings built from 2012 (TEK10, TEK17) Green Commercial Buildings 2,250 9% Residential buildings (older than 2012, with EPC A or B) Forestry 843 3% Renewa
Slide 20: Impact Reporting (FY20)
Impact Reporting (FY20) Direct Indirect Estimated Estimated Estimated emissions emissions annual Eligible reduced renewable Total CO2 Eligible Project Eligible Project Share of Total Eligibility for avoided vs avoided vs reduced portfolio energy energy Storage Category Subcategory Financing Green Bo
Slide 21: 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 22: Appendix
SpareBank 1 @STLANDET
Slide 23: General and Sector specific guidelines
General and Sector specific guidelines Nature & Agriculture Power/Energy Production Retail Market Corporate Market Mutual Funds • Consider whether • Encourage customers to • Encourage customers to We do not lend to • Work with industry to operations have switch from fossil to save more and consume b
Slide 24: External sustainability initiatives
External sustainability initiatives For external goals the bank needs to cooperate with customers and society in general to achieve them • UN Sustainable Development Goals, with specific focus on SDGs 4, 8, 9, 12, 13, 15 and 16. And with goal 17 on cooperation as the guiding method. • UN Global Comp
Slide 25: Sustainability reporting
Sustainability reporting SpareBank 1 Østlandet follows global reporting standards and obtains third party verification • SpareBank 1 Østlandet follows the Global Reporting Initiative, the leading international standard for sustainability reporting, and GRI reporting is an integral part of the Bank’s
Slide 26: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although SpareBank 1 Østlandet believes that the expectations reflected in such forward-looking statements are reasonabl