Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Sustainability
• Customer Satisfaction
• Social Responsibility
• Environment and Climate
• Staff Diversity and Wellbeing
• Governance

Environmental Achievements

• Reduced the Group's carbon footprint by 10% by the end of 2011 through heat and power-saving measures.
• Achieved power savings of 110,000 kWh a year through energy-efficient lighting.

Social Achievements

• Social partnership with Mødrehjælpen (Mothers Help) and crisis centers, providing financial counseling to vulnerable women.
• New Network project assisting foreign residents in entering the Danish labor market.
• Improved customer satisfaction, with nine out of ten customers indicating they would remain Nykredit customers.

Governance Achievements

• Implementation of Nykredit Certification for all customer-facing staff.
• Plans to approve and implement an anti-corruption policy in 2012.

Climate Goals & Targets

Environmental Challenges

• Reduced customer demand for financing due to the financial crisis and economic downturn.
• Increased capital requirements for mortgage banks.
• Growing unrest in financial markets and decreasing prices in the housing market.

Mitigation Strategies

• Development of additional savings products.
• Adaptation of advisory tools and service concepts to new conditions.
• Introduction of a new price structure for mortgage loans reflecting risk.
• Sustainable mortgage lending initiatives to ensure stability and long-term lending capacity.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• European Steel Design Award 2011 (The Crystal)
• LEAF Award for best structural design of the year (The Crystal)

Environmental Metrics

ESG Focus Areas

• Financial Sustainability
• Customer focus
• Social responsibility
• Climate and environment
• Diversity
• Responsible investment

Environmental Achievements

• Reduced total CO2 emission from 10,821 t in 2012 to 9,511 t in 2013
• Launched climate strategy up to 2020 with climate and environment improvements for customers and internally
• Incorporated climate and environment considerations into advisory services, offering customers an energy check
• Formed a partnership with DONG Energy on offering energy renovation advice
• Established three new solar power systems in Aalborg, Kolding and Randers

Social Achievements

• Offered free and independent advice on social, financial and legal matters to battered and other vulnerable women through the 'Råd til Livet' project
• Arranged a mentorship scheme ('Nyt Netværk') aimed at non-ethnic Danes learning Danish
• Launched a pilot project ('Økonomisk Overblik') offering independent financial advice to previously deployed soldiers
• Spent about DKK 13m on sponsorships in arts, culture, sports and education
• Employed 6 elite athletes on special contracts

Governance Achievements

• Set targets for the percentage of women on the boards of directors of Nykredit's financial companies
• Developed a policy to raise the percentage of women at other management levels
• Implemented Nykredit Certification, a structured development programme for customer-facing staff exceeding legal requirements
• Introduced a Key Account Management training programme for commercial and personal customer advisers
• Maintained a good relationship with NYKREDS, its staff association

Climate Goals & Targets

Environmental Challenges

• Rising capital requirements due to Nykredit's designation as a systemically important financial institution (SIFI)
• Need for higher earnings to support increased lending and higher equity levels
• Structural differences in the Danish property market, with population growth concentrated in urban areas
• Managing the expiry of interest-only (IO) mortgage periods for customers

Mitigation Strategies

• Developed a new business strategy, "Nykredit 2015", to grow income and trim costs
• Implemented a conservative capital structure to ensure high credit ratings
• Introduced two buffers in Nykredit's capital policy: a growth buffer and a buffer for regulatory changes
• Provided detailed research and advice to customers whose IO periods are about to expire
• Supported research on development trends in the property market outside the cities

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• EFMA Innovations Awards 2013 for Nykredit Direkte

Environmental Metrics

ESG Focus Areas

• Financial stability
• Responsible lending
• Access to home financing
• Climate and environment
• Socially responsible investment
• Staff conditions
• Responsible procurement
• Compliance
• Combating tax evasion, money laundering and terrorist financing

Environmental Achievements

• Reduced CO2 emissions by 49% from 2012 levels by the end of 2016
• Financed more than 475 MWh of renewable energy in the energy sector
• Installed solar cell systems producing 1 million kWh of electricity (June 2016)
• Implemented energy-efficient LED lighting in several locations

Social Achievements

• Launched Nykredit Home Project Support to assist customers with renovation projects
• Participated in social partnerships: "Råd til Livet" and "Økonomisk Overblik", providing financial mentoring
• All managers completed a management programme focused on change management skills

Governance Achievements

• Used ESG ratings in selecting companies to invest in (DKK 5.7bn)
• Active participation in AGMs of over 380 companies, voting according to sustainability principles
• Participated in the preparation of new recommendations of the Committee on Corporate Governance for institutional investors

Climate Goals & Targets

Environmental Challenges

• Changing financial services markets
• New market participants
• Evolving customer expectations
• New legislation
• Digitization of society
• Climate change

Mitigation Strategies

• Adapting business model to changing market conditions
• Investing in staff development and training
• Developing sustainable customer propositions and investment products
• Financing renewable energy
• Reducing energy consumption and transitioning to renewable energy sources
• Active dialogue with companies on sustainability issues

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Increasing the share of eco-labelled purchases

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Standards
• Environment
• Anti-corruption
• Climate Change
• Responsible Investment
• Financial Inclusion
• Community Development

Environmental Achievements

• Reduced carbon emissions by approximately 50% since 2012 (78% of 65% reduction target reached by end of 2017).
• Six Nykredit locations switched to biogas for heating.
• Financed wind turbines (13.2MW), district cooling systems (6MW), and battery-powered/hybrid ferries.

Social Achievements

• 44 staff volunteered as financial mentors for people in need.
• Launched a program to help battered women with financial advice.
• Provided financial counseling to returned veterans.
• Contributed to a framework for opening bank accounts for homeless people.

Governance Achievements

• Updated anti-money laundering policy.
• Updated anti-corruption policy.
• Updated tax policy to combat tax evasion.
• Implemented MiFID II regulations.

Climate Goals & Targets

Environmental Challenges

• Challenges in providing mortgage loans to all of Denmark, particularly rural areas due to demographic changes and economic difficulties.
• Risks related to business ethics, money laundering, and tax evasion.
• Risks associated with investments and procurement activities.
• Potential for climate change to impact customers' properties and Nykredit's business.

Mitigation Strategies

• Developed a "rural district loan" for creditworthy homeowners in areas with low property marketability.
• Engaged in dialogue with local and national politicians and rural organizations.
• Implemented strong policies and control systems to minimize risks related to business ethics and financial crime.
• Applied UN PRI principles, OECD Guidelines, and UN Global Compact principles in investment and procurement.
• Developed sustainable value propositions for customers to prepare them for climate change impacts.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for suppliers and subsuppliers addressing human rights, environment, labor standards, and ethics.
• Increased use of eco-labelled products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage to customers' properties.

Transition Risks

• Not disclosed

Opportunities

• Developing climate-friendly solutions and investment products.

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN PRI

Certifications: Nordic Swan Ecolabel (internal print centre)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainable value propositions for customers (Home Check-up, Homebuyer's Inspection, Home Plan, Home Project Support).

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Growth in all of Denmark
• Sustainable development
• Responsible business practices

Environmental Achievements

• Reached 97% of the target to reduce CO2 emissions by 65% by the end of 2020.
• Decided to purchase 100% wind turbine power in 2019.
• Implemented ISO 14001 environmental management system.

Social Achievements

• Lending growth in 96 out of 98 municipalities.
• Strengthened the Totalkredit partnership through Shared Valuation.
• Launched a new benefits programme, MineMål, returning DKK 2 billion to homeowners.
• Nykredit staff volunteered their time to advise battered women through the Råd til Livet program.

Governance Achievements

• Expanded risk management to include regularly addressing whether any conduct, propositions, products, advisory services, etc. are unexplainable or indefensible.
• Established an online whistleblower scheme.
• Mandatory training and special training of all staff relating to the prevention of financial crime and data protection.
• Increased dialogue with relevant authorities on financial crime.
• Implemented the requirements of the General Data Protection Regulation.

Climate Goals & Targets

Environmental Challenges

• Risk of losses on loans to personal and business customers impacting performance and ability to lend.
• Risk of becoming too prudent and restricting lending.
• Climate change risks to asset values due to extreme weather or transition to a sustainable society.
• Risk of financing and investment activities having indirect negative impacts on climate and environment.
• Risk of investing in companies violating human rights or obstructing the green transition.
• Data security breaches harming society and violating individual privacy.
• Risk of Nykredit being misused for financial crimes.
• Lack of diversity and uneven gender composition hindering potential.
• Slow progress in housing stock renovation.

Mitigation Strategies

• Striking a balance between active lending and solid capital and credit policies.
• Professional credit assessment of all customers.
• Mapping climate impact of lending activities, focusing on sustainability of mortgaged properties.
• Sustainability assessments of all products.
• Financing for energy efficiency improvements and value propositions to help customers with renovation.
• Sustainability analyses in active asset management and risk assessment of portfolios.
• Dialogue and engagement with companies in breach of standards, exclusion from investments if no improvement.
• Initiatives to enhance IT security, including risk assessments and vulnerability testing.
• Mandatory training and certification programs for staff on data protection and IT security.
• Continuous improvement of financial crime prevention setup, including risk scoring model adjustments and internal controls.
• Initiatives to increase female management representation, including internal recruitment and mobility programs.
• Developing products to incentivize homeowners to invest in energy-efficient homes.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on ISO 26000 and UN Global Compact.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions impacting asset values.

Transition Risks

• Regulatory changes and market shifts affecting asset values.

Opportunities

• Energy renovation increasing home values and lowering energy bills.

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 11
• SDG 13
• SDG 16

Nykredit's activities contribute to these goals through sustainable lending, investments, responsible business practices, and financial crime prevention.

Sustainable Products & Innovation

• Hyve project (air quality monitoring device).

Awards & Recognition

• Nykredit Invest Bæredygtige Aktier received the Nordic Swan Ecolabel.

Environmental Metrics

ESG Focus Areas

• Development and growth throughout Denmark
• Sustainable development
• Responsible business practices

Environmental Achievements

• Reached 2020 target of reducing the Group's carbon emissions by 65% relative to the level of 2012.
• Became 100% carbon neutral as of January 1, 2020 by compensating for remaining unavoidable emissions.

Social Achievements

• Launched a special discount on car loans for electric and hybrid cars, resulting in more than doubled lending for these cars.
• Improved staff satisfaction scores across various parameters.

Governance Achievements

• Integrated corporate responsibility into the Group's updated strategy, Winning the Double 2.0.
• Strengthened governance by integrating corporate responsibility into the Group's governance model and balanced scorecard.
• Performed a Conduct Risk Self-Assessment to identify ethical dilemmas.

Climate Goals & Targets

Environmental Challenges

• Climate change poses both opportunities and risks.
• Need to reduce the carbon footprint of activities financed and invested in.
• Addressing ethical dilemmas identified in business operations.
• Maintaining active lending while maintaining sound capital and credit policies.
• Accelerating energy renovation of the housing stock to meet climate targets.
• Addressing risks related to climate change, including physical and transition risks.
• Ensuring compliance with legislation and regulation in the financial sector.
• Maintaining customer trust in the face of challenges to confidence in financial institutions.
• Protecting customer data and maintaining high IT security.
• Strengthening diversity and representation of women in management.

Mitigation Strategies

• Integrating climate considerations into risk management, credit assessment, and investment processes.
• Developing sustainable products and services to encourage green choices.
• Implementing a Conduct Risk Self-Assessment and addressing identified dilemmas.
• Maintaining a strong capital position and sound credit assessment practices.
• Developing financing solutions to support energy renovation.
• Integrating climate risks into credit and risk policies.
• Implementing conduct management and management training programs.
• Strengthening IT security and staff training in data protection.
• Launching initiatives to improve gender balance in management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct based on ISO 26000 and UN Global Compact
• Increased use of Nordic Swan Ecolabelled products
• Eco-challenges to influence suppliers towards more sustainable practices

Climate-Related Risks & Opportunities

Physical Risks

• Flooding of low-lying properties

Transition Risks

• Regulatory changes, technological advances, changes in consumer behavior impacting businesses and agricultural customers

Opportunities

• Financing of energy-efficient buildings and green solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UN Principles for Responsible Banking

Certifications: ISO 14001

Third-party Assurance: Force Technology (partial)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Nykredit's activities contribute to various SDGs through lending, investment, and operational practices.

Sustainable Products & Innovation

• Green bonds
• Discount on car loans for electric and hybrid cars
• Nykredit Invest Bæredygtige Aktier (sustainable equity fund)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Development and growth throughout Denmark
• A greener Denmark
• Responsible business practices

Environmental Achievements

• Reduced own carbon emissions by 84% relative to 2012 levels.
• Launched green home loans (0% interest), green car loans (1% interest), and green machinery financing (0% interest) to incentivize sustainable choices by customers.
• Allocated DKK 200 million from Forenet Kredit for green initiatives.

Social Achievements

• Launched special COVID-19 initiatives to support customers with responsible advice and financial aid (DKK 5 billion in loan commitments).
• Maintained lending growth across all 98 Danish municipalities despite the COVID-19 crisis.
• Improved staff satisfaction across all parameters.

Governance Achievements

• Integrated corporate responsibility and sustainability into key business area strategies.
• Incorporated sustainability into credit and risk management practices.
• Implemented conduct management initiatives to identify and address conduct risks.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting the Danish economy and customers' financial situations.
• Climate change and its impact on the carbon footprint of financed activities and investments.
• Data security breaches.

Mitigation Strategies

• Launched special COVID-19 initiatives to support customers.
• Developed and launched green products to incentivize sustainable choices.
• Strengthened IT security measures and staff training.
• Implemented a conduct management framework to identify and mitigate conduct risks.

Supply Chain Management

Responsible Procurement

• Nykredit's Supplier Code of Conduct (ISO 26000 and UN Global Compact standards).
• Eco-challenges with selected suppliers to find more climate-friendly solutions.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding of low-lying homes and buildings.

Transition Risks

• Regulatory changes, technological advances, changes in consumer behavior.

Opportunities

• Financing energy renovations, renewable energy projects, and electric vehicles.

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UN Principles for Responsible Banking

Certifications: ISO 14011

Third-party Assurance: FORCE Certification A/S

UN Sustainable Development Goals

• SDG 8
• SDG 11
• SDG 13
• SDG 7
• SDG 2
• SDG 15
• SDG 16

Nykredit's activities contribute to various SDGs through lending, investments, and operational practices.

Sustainable Products & Innovation

• Green home loans, green car loans, green machinery financing.

Environmental Metrics

ESG Focus Areas

• Development and growth throughout Denmark
• A greener Denmark
• Responsible business conduct

Environmental Achievements

• Reduced emissions from operations by 21% per FTE.
• Installed four solar cell systems.
• More than 1,800 customers made home energy renovations financed by a green home loan (Grønt BoligLån).
• More than 50% of all car financing provided by Nykredit was for electric or plug-in hybrid cars.
• Removed the case handling fee for farmers withdrawing low-lying land areas from agricultural use.
• Increased volumes and new types of assets in green bonds after the launch of the extended Green Bond Framework.

Social Achievements

• Launched a remote work pilot scheme.
• Trained all managers in preventing and handling harassment.
• Maintained high staff engagement and outperformed external benchmarks in most areas.
• Launched a new tool facilitating dialogue between staff members and their supervisors on maternity or paternity leave.
• Increased the number of women when filling middle-management positions.

Governance Achievements

• Adopted a data ethics policy.
• Strengthened organisation and systems to combat financial crime.
• Improved transaction monitoring systems and processes.
• Implemented several controls related to personal data and IT security.
• Adopted a governance structure for conduct risk and conduct management.

Climate Goals & Targets

Environmental Challenges

• Data quality is one of the challenges of working with the green transition.
• Data accessibility and data quality continue to pose a huge challenge.
• Climate change exposes Nykredit’s business activities and our customers to new risks and opportunities.
• Sustainability risks are increasingly being integrated into Nykredit’s risk management.
• Conduct risks exist where Nykredit’s practices are within the letter of the law, but where there is a risk that they will be perceived as being at odds with the spirit of the law.

Mitigation Strategies

• Working closely with Finance Denmark to further develop the financial sector’s CO2e model.
• Integrating new risks and opportunities into Nykredit’s risk management practices and into all relevant Nykredit policies in the areas of credit, valuation and risk management.
• Launching a two-pronged initiative: 1) Risk management initiatives where we identify, assess and act on the Group’s conduct risk as part of the ongoing risk management practices. 2) A broad initiative for all staff members to increase awareness of responsible business conduct and train managers and staff in identifying, discussing and responding to irresponsible business conduct.
• Strengthened our organisation to embed knowledge and simplify processes.
• Improved the systems that monitor transactions so that suspicious transactions are detected and addressed.

Supply Chain Management

Responsible Procurement

• Nykredit’s Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Risk of flooding of low-lying homes and buildings

Transition Risks

• Businesses and properties receiving loans from Nykredit may have a negative impact on the climate and the environment.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001

Third-party Assurance: FORCE Certification A/S

Sustainable Products & Innovation

• Green home loan (Grønt BoligLån)
• Green car loans (Grønt Billån)
• Green machinery leasing (Grøn Maskinleasing)
• Green bonds

Environmental Metrics

ESG Focus Areas

• Development and growth throughout Denmark
• A greener Denmark
• Responsible business practices

Environmental Achievements

• 76% of owner-occupied dwellings in Nykredit’s portfolio have a heat source other than oil and gas-fired boilers (target 85% by 2025)
• 47% of new car loans were for electric cars in 2022 (target 50% by 2023-2025)
• Emission intensity from owner-occupied dwellings and real estate decreased
• Investment portfolio emission intensity decreased from 5.7 tCO2e/DKK million in 2021 to 5.3 tCO2e/DKK million in 2022
• Reduced Nykredit Group’s energy consumption by 10%
• Reduced office printing by 16%
• Increased recycling of waste fragments to 56% (target 80% by 2023)

Social Achievements

• Offered mothers, fathers, and co-parents 26 weeks of paid maternity/paternity leave
• High colleague engagement remained at the same high level as in 2021
• Improved scores on diversity and inclusion statements in colleague engagement survey
• Launched basic sustainability training for all colleagues

Governance Achievements

• Integrated ESG risks into risk management practices
• ESG factors included in credit analysis of all business customers
• Updated Nykredit’s Corporate Culture Policy and Code of Conduct
• Improved transaction monitoring to detect and address suspicious transactions
• Optimized customer due diligence (KYC) procedures
• Implemented governance structure in relation to Data Ethics Policy

Climate Goals & Targets

Environmental Challenges

• Data accessibility and data quality continue to pose a huge challenge
• Rising energy prices weigh on many homeowners
• The green transition of the agricultural sector may have an impact on the financial situation of farms
• Conduct risks related to sustainable financing (greenwashing)
• Data ethics challenges related to machine learning and artificial intelligence
• Cybersecurity threats

Mitigation Strategies

• Launched a series of initiatives to obtain and improve the data necessary for sustainability efforts
• Offered Totalkredit customers replacing their old oil- or gas-fired boiler with a heat pump a cash contribution of DKK 10,000
• Developed partnerships with SEGES and Valified to improve data quality for agricultural customers and SMEs
• Introduced a special green step in its product approval process
• Increased focus on ESG in investment advisory services and sustainability training for all colleagues
• Conducted an extra cyber hygiene check-up and intensified cybersecurity monitoring

Supply Chain Management

Responsible Procurement

• Nykredit’s Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding of low-lying homes and buildings

Transition Risks

• Changes in regulatory requirements and consumption patterns

Opportunities

• Financing of renewable energy and infrastructure

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: FORCE Certification A/S (for resource consumption and greenhouse gas emissions from operations)

Sustainable Products & Innovation

• Green home loans
• Green car loans
• Green savings account
• Green bonds

Awards & Recognition

• Ranked 20th on Universum’s list of most attractive employers in Denmark

Environmental Metrics

ESG Focus Areas

• Development and growth throughout Denmark
• A greener Denmark
• Responsible business practices

Environmental Achievements

• Reduced emission intensity from owner-occupied dwellings
• Reduced emission intensity from residential real estate
• Reduced emission intensity from commercial real estate
• Reduced energy consumption by 11%
• 84% reduction in greenhouse gas emissions from operations since 2012
• 71% of new car loans were for electric cars in 2023
• Updated Green Bond Framework
• New Fossil Fuels Policy resulting in divestment from over 60 oil, gas and coal companies and exclusion of 483 companies from investment universe
• Introduced waste stations for improved recycling at all locations

Social Achievements

• Offered 26 weeks of paid parental leave to all parents, resulting in increased paternity leave among male colleagues
• Expanded colleague engagement surveys to include a focus on minorities
• Increased female representation in management from 33% to 37%
• Implemented a new pay system aimed at counteracting unequal pay
• Recruited five students with refugee experience and ethnic minority backgrounds

Governance Achievements

• Integrated ESG risks into risk management practices
• Updated Corporate Culture Policy
• Annual reporting to the Board of Directors on compliance with the Corporate Culture Policy
• Implemented a new platform to strengthen responsible supply management for selected suppliers

Climate Goals & Targets

Environmental Challenges

• High inflation, interest rate increases, energy crises, geopolitical tensions, and war in Europe and the Middle East
• Data accessibility and data quality for sustainability assessments
• Climate change risks for customers and assets
• Transition risks for business customers
• Conduct risks related to sustainable transition, transparency in products and pricing, and AI
• Financial crime
• Data breaches and loss of personal data
• Attracting and retaining skilled employees
• Achieving gender balance in management and on boards

Mitigation Strategies

• Strong earnings base and robust capital position
• Continuous improvement of sustainability data and methodologies
• Integration of ESG risks into credit and operational risk management
• Development of alternative sourcing strategies
• Implementation of a Fossil Fuels Policy and Sustainable Investment Policy
• ESG training for employees
• Strengthened infrastructure to prevent financial crime
• Improved customer due diligence procedures
• Upskilling initiatives for employees
• Targeted initiatives to promote gender diversity in management
• New pay system to address unequal pay
• Flexible working arrangements

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on ISO 26000 and the UN Global Compact; membership in Ecolabelling Denmark's network for green procurement; implementation of a platform for ESG data collection from suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, storm surges, coastal erosion, groundwater rises

Transition Risks

• Regulatory changes, technological advances, changes in consumer behavior

Opportunities

• Financing of renewable energy and energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: FORCE Certification A/S (for resource consumption and greenhouse gas emissions from operations)

UN Sustainable Development Goals

• All 17 UN SDGs

Nykredit's investments and activities aim to contribute to all 17 UN SDGs.

Sustainable Products & Innovation

• Green home loans, green car loans, green savings account, green bonds

Awards & Recognition

• Danish Consumer Council's award for cheapest mortgage products; Member of the Year in the network for green procurement

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature Risk
• Human Rights
• Corporate Governance
• Sustainable Development Goals

Environmental Achievements

• Commitment to climate neutrality by 2050 for investments
• Aim to reduce carbon intensity of investments by 60% from 2020 to 2030
• 100% of assets under management to comply with Net Zero Investment Framework principles by 2030

Social Achievements

• Not disclosed

Governance Achievements

• Adherence to UN PRI since 2009
• Endorsement of UN Global Compact since 2008
• Member of UN Principles for Responsible Banking since 2019
• Supporting signatory to the Task Force on Climate-related Financial Disclosures (TCFD)
• Active participant in Climate Action 100+
• Member of Institutional Investor Group on Climate Change (IIGCC)
• Member of Net Zero Asset Managers Initiative

Climate Goals & Targets

Environmental Challenges

• Balancing societal considerations with investment returns
• Managing climate-related physical and transition risks
• Addressing nature risks and biodiversity loss
• Ensuring human rights are respected throughout supply chains

Mitigation Strategies

• ESG integration into investment processes
• Stewardship through voting and engagement
• Exclusions of certain investments
• Collaboration with international organizations and frameworks
• Monitoring and reporting on sustainability performance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN PRI, UN Global Compact, TCFD, IEA Net Zero Emissions by 2050 Scenario, Science Based Targets initiative, Net Zero Banking Alliance, Net Zero Asset Managers Initiative, OECD Guidelines for Multinational Enterprises, Paris Agreement, UN Guiding Principles on Business and Human Rights

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• All 17 SDGs

Investing in sustainable measures and encouraging companies to assume responsibility for achieving the goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed