Climate Change Data

Intrum AB (publ)

Climate Impact & Sustainability Data (2020, 2021)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:6196 tCO2e/year
Scope 1 Emissions:59 tCO2e/year
Scope 2 Emissions:3532 tCO2e/year
Scope 3 Emissions:2604 tCO2e/year

ESG Focus Areas

  • Ethical collection
  • Sound economy for our clients
  • Attracting and retaining talents, including employee well-being
  • Reduced environmental footprint
  • Diversity and inclusion
  • Data security
  • Anti-corruption
  • Responsible selection of clients and portfolios
  • Sound transactions

Environmental Achievements

  • Reduced total reported CO2e emissions from 6,808 tonnes to 6,196 tonnes

Social Achievements

  • Employee turnover initiated by employees decreased to 13 percent
  • Employee engagement index increased to 79/100
  • Share of women in the Group Management Team increased from 18 percent in 2019 to 27 percent in 2020
  • Share of women in the organisation as a whole increased from 62 percent in 2019 to 63 percent in 2020

Governance Achievements

  • Adhered to the Swedish Code of Corporate Governance in its entirety

Climate Goals & Targets

Long-term Goals:
  • Achieve climate neutrality before 2030
Medium-term Goals:
  • Return Cash RoIC >10%
  • Cash EPS growth >10% p.a.
  • Net debt /Cash EBITDA 2.5–3.5
  • Culture Index >80
  • Client Satisfaction Index >75
  • Climate footprint –20%
Short-term Goals:
  • Increase average satisfaction index among clients over 75/100 by 2023
  • Increase the employee engagement index from 79 to durably above 80 by 2023
  • Achieve a more balanced gender distribution throughout the company (40/60) by 2023

Environmental Challenges

  • Covid-19 pandemic impacting operations with up to 75% of employees working remotely and low volume of new case inflow
  • Extended payment periods and delayed sales processes of portfolios with overdue receivables negatively affecting earnings
  • Varying systems between countries implying coordination needs for multinational clients
  • Risk of conflicts of interest in identifying solutions generating mutual value for clients and customers
Mitigation Strategies
  • Transitioning to remote working for three quarters of employees
  • Launching the ONE Intrum transformation programme to harmonize and simplify systems, processes, and working methods
  • Streamlining processes into a shared platform and globalizing parts of case management
  • Tailoring specific solutions for different industries to meet needs for flexible solutions
  • Developing specific guidelines for responsive treatment of customers
  • Implementing internal rules to guide employees when adopting difficult ethical stances
  • Developing a European Code of Conduct for data protection in the debt collection industry

Supply Chain Management

Responsible Procurement
  • All suppliers must sign the Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core, UN Global Compact

Third-party Assurance: EY (limited assurance)

UN Sustainable Development Goals

  • Goal 5
  • Goal 8
  • Goal 13

Intrum's contribution to the goals is described on pages 22-34.

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:5,510 tCO2e
Scope 1 Emissions:81 tCO2e
Scope 2 Emissions:3,262 tCO2e
Scope 3 Emissions:2,168 tCO2e

ESG Focus Areas

  • Ethical collection
  • Being a trusted and respected actor
  • Growing by making a difference
  • Climate Action
  • Gender equality
  • Decent work and economic growth

Environmental Achievements

  • Total reported emissions decreased from 6,866 tonnes to 5,510 tonnes (-20%)

Social Achievements

  • Implemented detailed guidelines, “Treating Customers Fairly Instruction”, applied throughout operations.
  • Completed first human rights due diligence in line with the UN Guiding Principles on Business and Human Rights.
  • Client satisfaction index rose from 75 to 77.
  • Employee Engagement Index increased from 79 to 81.

Governance Achievements

  • Declared support for the Task Force on Climate Related Financial Disclosures (TCFD).
  • Began reporting to the Carbon Disclosure Project (CDP).
  • Financed UN-certified projects creating positive climate value corresponding to the company’s greenhouse gas emissions in 2021.
  • Strong ESG ratings from Sustainalytics and MSCI.

Climate Goals & Targets

Medium-term Goals:
  • Achieve climate neutrality before 2030, cutting total emissions by at least 20% compared with 2019.
Short-term Goals:
  • Client satisfaction index consistently at 75 or above by 2023.
  • Employee Engagement Index consistently above 80 by 2023.
  • More balanced gender distribution at all levels within the company, with women making up at least 40 per cent of staff at management level by 2023.

Environmental Challenges

  • Pandemic-related uncertainty and its impact on the economy and the labour market.
  • Increased polarization of European consumers and financial gap between different groups.
  • Rising inflation and its impact on the ability to pay.
  • Increased competition and price pressure in the credit management industry.
  • Rapid technological development and emergence of new market players.
  • Varying laws and regulations across different countries and sectors.
  • Risks associated with portfolio investments, including overestimation of collection ability and underestimation of collection costs.
  • Information security risks and data protection.
  • Political and regulatory risks.
  • IT security risks.
  • Employee risks, including dependency on key individuals.
  • Corruption risks, including money laundering.
  • Reputational risks.
  • Epidemic and pandemic risks.
  • Climate risks, including physical risks and transition risks.
Mitigation Strategies
  • ONE Intrum transformation program to create a simpler, more digital and scalable business model.
  • Expansion of global front offices in Athens, Bucharest, and Malaga.
  • Increased digitization and automation of processes.
  • Development of sector-specific credit management solutions.
  • Implementation of detailed guidelines, “Treating Customers Fairly Instruction”.
  • Proactive involvement in discussions on the EU directive on non-performing loans.
  • Continuous monitoring of regulatory developments.
  • Strict credit limits and analyses of borrower’s credit status for payment guarantees.
  • Regular checks and monitoring of systems, security training, risk assessments, centralized logging, auditing and prevention of intrusion for IT security.
  • Skills development and health promotion measures for employees.
  • Succession planning activities and automation of working methods.
  • Competitive compensation and benefit package.
  • Zero tolerance of corruption and bribery, with internal instructions and training.
  • Regular information and training on risks inherent in operations.
  • Documented process for risk analysis and approval of new products, services, etc.
  • Continuity plans for all countries and units.
  • Cooperation with local authorities and following their recommendations.
  • Local environmental plans to reduce environmental and climate footprint.
  • Assessment of climate risks in relation to collateral when acquiring portfolios of secure assets.

Supply Chain Management

Responsible Procurement
  • Cooperation with companies that share Intrum’s values of good business ethics.

Climate-Related Risks & Opportunities

Physical Risks
  • Wildfires and flooding affecting asset values and insurance premiums.
Transition Risks
  • Emerging regulations on carbon pricing and other compliance requirements.

Reporting Standards

Frameworks Used: GRI Standards Core, UN Global Compact

Third-party Assurance: Deloitte (limited assurance)

UN Sustainable Development Goals

  • Goal 5: Gender equality
  • Goal 8: Decent work and economic growth
  • Goal 13: Climate action

Intrum's initiatives contribute to these goals through ethical collection practices, employee well-being programs, and climate change mitigation efforts.