Realizing these aspirations
Due to both increasing extreme weather incidents as well as the changing technology, regulatory framework and customer demand, the business environment is changing. Exposed to a possible climate related risk, our customers need to make smaller or larger changes to their operations and business models. People need to change their lifestyle, ways of working and consuming. If not adapting, they might face increasing costs and revenue decrease consequences, for some of them leading eventually to the existential challenges.
It is our objective to walk on this journey together with our customers and ensure that those, who are exposed to high climate, social or governance risks have a plan and a strategy in place to ensure their resilience.
- Sustainability policy: We have a Sustainability Policy in place that ensures the achievement of our ESG strategic aspirations
- Exclusion list: We have defined our exclusion list in our Sustainability Policy.
- Requirements for our vendors and suppliers: In all our contracts, we include our Third Party Code of Conduct that require the Third Parties to have a written environmental policy and environmental management system, if required by applicable regulations, that is appropriate to the size, nature and risks of the Third Party’s operations; we require them to implement an effective system to identify and minimize potential hazards to the environment.
- Transformation to low carbon economy
Measuring emissions: We joined Partnership for Carbon Accounting Financials (PCAF) on 28.07.2021 and have implemented the accounting standard for GHG accounting of our financed projects´ and investments´ emissions. We expect to be able to disclose our emissions on Scope 1 (direct fuel use and waste generation), Scope 2 (electricity and heating use) and Scope 3 (influenced emissions such as supply chain emissions, business travel, employee commuting and our financed projects´ and investments´ emissions) in Q1 2022.
EU taxonomy: We are implementing EU taxonomy reporting and aim to disclose our EU taxonomy eligible portfolio in line with the regulatory expectations in the scope of our annual reporting.
Sustainable finance: We are determined to build a green product portfolio to support the transition to low carbon economy. Currently, we offer leasing for low emission cars, sustainable pillar 2 and 3 pension funds: Pension fund Luminor Sustainable Future Index and sustainable exchange traded funds (ETFs) with morning star sustainability rating through our Luminor Investor platform. We are building sustainable investment services and products that support sustainable development of businesses and incentivize homeowners to invest in energy efficient housing.
Environmental risk assessment: We perform an environmental and social impact assessment on the total consequences of large scale high environmental impact projects and customers.
Sector strategies: We are analyzing the industry segments, where we have high climate and/or social risk exposure to the clients and are developing sector specific strategies that outline the key risks per sector and the mitigation actions that we would expect our customers to undertake. Furthermore, we are developing a series of seminars with a partner to build climate risk and transition related knowledge among our customers.