Sparebank 1 Ostlandet · OSL:SPOL
Sparebank 1 Ostlandet — SpareBank 1 SMN — Debt Investor Presentation (2020)
26 slides from Sparebank 1 Ostlandet's debt investor presentation, 2020
Slide 1: Sustainability within SpareBank 1 SMN & the Alliance
Sustainability within SpareBank 1 SMN & the Alliance
Slide 2: Norway’s path towards sustainability
Norway’s path towards sustainability Funding for Energy Savings Measures (150m High-level panel on Vote in Favour of NOK) ENERGIX sustainable ocean Paris Agreement economy Emission Programme Standards for Gas- Klimaløftet: BEEG: Baltic Fired Power: to Governmental More new EVs sold NREAP: National S
Slide 3: Sustainability governance within the Alliance
Sustainability governance within the Alliance • Ensures all 10 principles of sustainability are integrated in SpareBank 1 Alliance has signed day-to-day operations up for the United Nations • SMN reports annually about corporate social responsibility Global Compact and sustainability efforts based o
Slide 4: At the heart of Central Norway’s community
At the heart of Central Norway’s community We are the region’s leading financial group and we are present in 42 municipalities. We want to contribute to society’s value creation through responsible banking operations that give confidence to the people Savings bank Supporting local business and SMEs
Slide 5: Five strategic priorities for 2020-2023
Five strategic priorities for 2020-2023 Increase digitalisation and Exploit the power in our Create ‘One SMN’ use of insight Head up the Integrate sustainability ownership model development of Norway’s savings bank into the business system •Sustainable development • Strengthen the customer • Ensure
Slide 6: The bank’s strategy for sustainability shall enable our financial goals
The bank’s strategi for sustainability shall enable our financial goals and give the business areas guidance and flexibility Our financial targets 1. Return on equity among the best in the Nordics – currently at 12 % 2. Solid bank with Core Equity Tier 1 Growth Efficiency Simplification ratio at 16.
Slide 7: The banking group’s role in society is to stimulate sustainable development
The banking group’s role in society is to stimulate a sustainable development of the central part of Norway Financial house In these three dimensions the Driver for banking group shall play an green important role in opinion transformation formation in Central Norway «Together we’ll get Partner for
Slide 8: Priorities for SMN in its sustainability strategy towards 2023
Priorities for SMN in its sustainability strategy towards 2023 Facilitator for green transformation Partner for inclusive societal Guide for responsible business culture development Priorities in SMN Priorities in SMN Priorities in SMN Financial house (common) Financial house (common) Financial hous
Slide 9: SMN is clear on roles and responsibilities
SMN is clear on roles and responsibilities GROUP CEO DESIGNATES EXECUTIVE DIRECTORS/MANAGING DIRECTORS AS ‘AMBASSADORS FOR RESPONSIBLE BANKING’ EXECUTIVE DIRECTORS/MANAGING DIRECTORS APPOINT AN ESG MANAGER FOR THEIR RESPECTIVE BUSINESS LINES SpareBank 1 SMN – ESG MANAGERS OF EACH BUINESS Steering co
Slide 10: Incorporating Climate Risk in our credit process
Incorporating Climate Risk in our credit process • For 2021 our main focus will be on climate risk • Our aim is to further develop, intensify and flesh out this work in step with the increase in knowledge and maturity with regard to this theme in the organisation • We will utilise a risk analysis re
Slide 11: Sustainability is a strategic foundation of SMN
Sustainability is a strategic foundation of SMN Ambition to integrate sustainability into all aspects of the business Good ESG rating – but the ambitions are higher ISS ESG: C- (2020) 2nd Decile ranking (high relative performance) Sustainable Brand Index – 2019 & 2020 industry winner in Norway 11
Slide 12: Green Bond Framework
Green Bond Framework
Slide 13: SMN 2020 Green Bond Framework Highlights
SMN 2020 Green Bond Framework Highlights Rationale for structuring a Green SMN Green Bond Framework Bond Framework Highlights • Green Bonds contribute to global and • Use of Proceeds: national environmental objectives – Energy efficient residential and • Close alignment with sustainability ambitions
Slide 14: The four pillars of the Green Bond Framework
The four pillars of the Green Bond Framework 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds The net proceeds of the Green • The Green Bond Committee will • The proceeds of the Green Bond • Reporting will be based on the Bonds w
Slide 15: Use of Proceeds: Eligible Assets (1/2)
Use of Proceeds: Eligible Assets (1/2) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds New UoP Category Eco-efficient and Circular Economy adapted Green Buildings Clean Transportation Products, Production Technologies and Proces
Slide 16: Use of Proceeds: Eligible Assets (2/2)
Use of Proceeds: Eligible Assets (2/2) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds New UoP Category New UoP Category Environmentally Sustainable Management of Living Renewable Energy Natural Resources and Land Use • Agricult
Slide 17: Process for Project Evaluation and Selection
Process for Project Evaluation and Selection 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds The Green Bond Committee will oversee the entire Green bond process, including the evaluation and selection of Eligible Green Loans ori
Slide 18: Management of Proceeds
Management of Proceeds 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds • The proceeds of the Green Bond will be managed in a portfolio approach • SMN flags green loans through an internal monitoring system • Eligible Green Loans
Slide 19: Reporting - Overview
Reporting - Overview 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds Reporting will be based on the Eligible Green Loan Portfolio, which will be aggregated for all green bonds outstanding We have recently published our first All
Slide 20: Reporting – Allocation (FY2020)
Reporting – Allocation (FY2020) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds 20
Slide 21: Reporting – Impact (FY19) (1/5)
Reporting – Impact (FY19) (1/5) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds Residential Buildings Commercial Buildings Green Residential Buildings Portfolio [sq.m] Green Commercial Buildings portfolio [sq.m] 24% 29% 32% 20,2
Slide 22: Reporting – Impact (FY19) (2/5)
Reporting – Impact (FY19) (2/5) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds Clean Transportation SMN portfolio of EV vehicles Total emissions avoided Category Number of Sum km / year Sum person km vehicles / year (vs. averag
Slide 23: Reporting – Impact (FY19) (3/5)
Reporting – Impact (FY19) (3/5) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds Renewable Energy SMN portfolio of run-of-river hydropower plants Total emissions avoided Capacity Total Estimated production Expected production Cat
Slide 24: Reporting – Impact (FY19) (4/5)
Reporting – Impact (FY19) (4/5) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds Eco-efficient and/or circular economy adapted products, production technologies and processes Fisheries % of Stocks at or above Maximum Sustainable
Slide 25: Reporting – Impact (FY19) (5/5)
Reporting – Impact (FY19) (5/5) 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds Eco-efficient and/or circular economy adapted products, production technologies and processes Aquaculture (see qualitative analysis Impact Report) E
Slide 26: External Review
External Review 1 2 3 4 Process for Project Management Use of Proceeds Reporting / External Review Evaluation and Selection of Proceeds Sustainalytics is of the opinion that SpareBank 1 SMN’s Green Bond Framework aligns with the four core components of the ICMA Green Bond Principles 2018 • Sustainal