Climate Change Data

NIBC Holding N.V.

Climate Impact & Sustainability Data (2020, 2021, 2022)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:1,033,749 tCO2e/year
Scope 1 Emissions:197 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Scope 3 Emissions:1,033,552 tCO2e/year
Renewable Energy Share:100% of total energy use
Total Energy Consumption:2,813,065 kWh/year
Water Consumption:1,158 m3/year
Waste Generated:42,796 tons/year
Carbon Intensity:21,055 EUR mln total estimated tCO2e per mln NIBC balance sheet

ESG Focus Areas

  • Climate Change
  • Human Rights
  • Responsible Business Conduct
  • Governance
  • Financial Inclusion

Environmental Achievements

  • Achieved 100% renewable electricity in own operations since 2012
  • 57% reduction in Scope 1 and 2 emissions since 2010
  • Launched Lot Hypotheken, a sustainable mortgage label

Social Achievements

  • Launched North Westerly VI ESG CLO, compliant with ESG best practices
  • Revised complaints procedure to align with UNGPs and OECD Guidelines
  • Continued support for vulnerable clients through Special Servicing Mortgages and financial coaching

Governance Achievements

  • Reviewed and updated all sustainability policies in 2020
  • Implemented a three lines of defense risk management model for sustainability
  • Launched a Sustainable Finance Framework and a Green Bond Framework

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions before 2050
Medium-term Goals:
  • At least 55% reduction in emissions by 2030 (EU target), at least 49% reduction (Dutch target)
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Quantifying climate risk and biodiversity risk for unlisted mid-sized corporates
  • Transparency into supply chains for mid-sized and smaller corporates
  • Data limitations in assessing transition risks related to energy use in retail portfolio
Mitigation Strategies
  • Developed experimental tools in Innovation Lab to analyze corporate clients' public reports
  • Engaged with NGOs, unions, and civil society stakeholders to deepen understanding of concerns
  • Used PCAF methodologies to estimate financed emissions, adapting these for NIBC's exposures

Supply Chain Management

Supplier Audits: Know Your Supplier (KYS) programme

Responsible Procurement
  • Supplier Code of Conduct
  • ESG requirements in vendor and supplier contracts

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Land subsidence
  • Drought
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Energy use and efficiency in retail portfolio
  • Job losses in fossil fuel-related activities
Opportunities
  • Development of energy-efficient products and services
  • Support for clients' transition to renewables

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 7 (Affordable and clean energy)
  • SDG 13 (Climate action)

Alignment of Sustainable Finance Framework and Green Bond Framework with SDG targets

Sustainable Products & Innovation

  • Lot Hypotheken
  • North Westerly VI ESG CLO
  • Sustainable Finance Framework
  • Green Bond Framework

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:4,536,901 tCO2e/year (operational and financed)
Scope 1 Emissions:176 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Scope 3 Emissions:4,536,725 tCO2e/year
Renewable Energy Share:100% of total energy use
Total Energy Consumption:2,717,346 kWh/year
Water Consumption:1,740 m3/year (Hague office only)
Waste Generated:38,649 tons/year
Carbon Intensity:200 tonnes CO2e/mln total balance sheet assets; 276 tonnes CO2e/mln attributed portfolio

ESG Focus Areas

  • Climate Change
  • Human Rights
  • Responsible Business Conduct
  • Governance

Environmental Achievements

  • Sold remaining Offshore (fossil fuel) Energy portfolio in July 2022, ending involvement in this asset class.
  • Achieved 100% renewable electricity in own operations since 2012.
  • More than 60% of real estate on NIBC's balance sheet achieved an energy efficiency label of C or higher by year-end 2021.
  • Estimated 57% reduction in Scope 1 and 2 emissions since 2010.

Social Achievements

  • Launched Lot Hypotheken, a sustainable mortgage label offering substantial benefits to customers wanting to make energy efficiency improvements.
  • Successfully launched North Westerly VII ESG CLO, growing market-leading ESG CLO program.
  • Launched EUR 750 million senior green preferred issuance, broadening investor base and attracting responsible debt investors.
  • Approximately one-third of NIBC’s new origination in the Infrastructure asset class involved “sustainability-linked” financing structures in 2021.

Governance Achievements

  • Joined UN Principles for Responsible Investment (UN PRI) in April 2022.
  • Updated Sustainability Policy and Environment and Climate Policy to exclude new financings of fossil fuel exploration and production (November 2021).
  • North Westerly VII ESG CLO awarded Global Capital ESG Deal of the Year (April 2022).

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions before 2050 for financings and operations
Medium-term Goals:
  • 55% reduction in financed emissions by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Data collection for EU Taxonomy alignment, particularly for companies not reporting under NFRD.
  • Lack of access to actual energy and emissions data of clients due to GDPR.
  • Quantifying transition risks related to retail mortgages.
  • Transparency in supply chains for mid-sized and smaller businesses.
Mitigation Strategies
  • Voluntarily using Annexes provided in Article 8 disclosures Delegated Act to guide EU Taxonomy reporting.
  • Developing new monitoring tools and dashboards to strengthen due diligence and monitoring of environmental and human rights risks.
  • Engaging with clients and other stakeholders to promote transparency and collect data.
  • Working with peer banks and stakeholders to improve data sourcing, quality, and comparability of emission and other ESG-related figures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct requiring adherence to regulations, international conventions, standards, and guidelines on human rights and the environment.
  • ESG requirements embedded in vendor and supplier contracts.
  • Supply chain ESG due diligence, monitoring, and engagement with external stakeholders.

Climate-Related Risks & Opportunities

Physical Risks
  • Rising sea levels
  • Land subsidence
  • Inland flooding
  • Extreme weather events
  • Drought
  • Water stress
Transition Risks
  • Regulatory changes
  • Energy cost fluctuations
  • Stranded assets
  • Technology risks in the transportation sector
Opportunities
  • Sustainable mortgages
  • Sustainability-linked lending
  • Green bond issuance
  • Financing renovations to improve energy performance of properties

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact, EU Taxonomy

Certifications: Null

Third-party Assurance: Internal Audit; third-party assurance for Green Bond Allocation Report

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Initiatives such as sustainable mortgages, green bond issuance, and support for clients' transition to net zero are aligned with these goals.

Sustainable Products & Innovation

  • Lot Hypotheken (sustainable mortgage)
  • North Westerly ESG CLO
  • Green Bond Framework

Awards & Recognition

  • Global Capital ESG Deal of the Year for North Westerly VII ESG CLO
  • Gouden Lotus award for Lot Hypotheken and NIBC Direct

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:100% (own operations)
Total Energy Consumption:2,629,704 kWh (renewable)
Water Consumption:3145 m3
Waste Generated:38,691 kg

ESG Focus Areas

  • Climate change
  • Responsible business conduct
  • Regulatory change and compliance
  • Information and data security

Environmental Achievements

  • Exited financing of fossil Offshore Energy exploration & production
  • Reduced financed emissions by 62% since 2019
  • Achieved operational carbon neutrality through offsetting

Social Achievements

  • Launched PACE (Professional, Adaptive, Collaborative and Entrepreneurial) corporate values system
  • Achieved 50/50 gender balance in Managing Board
  • Continued support for employee well-being initiatives (flexible working, training, etc.)
  • No incidents of discrimination reported in workforce

Governance Achievements

  • Shifted oversight responsibility for ESG to the full Supervisory Board
  • Modernized Code of Conduct and Compliance Framework
  • Implemented Green PACE project to improve ESG data and reporting

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions before 2050 (Paris aligned, 1.5°C scenario)
Medium-term Goals:
  • Continue to reduce emissions and fossil fuel use in core asset classes
  • Continue to improve data quality for ESG metrics
Short-term Goals:
  • Revisit and establish new intermediate climate targets
  • Achieve PCAF data quality score of 1 or near 1 across corporate asset classes

Environmental Challenges

  • Increasingly complex ESG-related regulatory requirements
  • Macroeconomic developments (monetary policies, cost of living, energy prices, war in Ukraine)
  • Data quality limitations for ESG metrics, particularly in retail mortgage and corporate sectors
  • Alignment of financial activities with the EU Taxonomy
  • Potential long-term climate transition and physical risks
Mitigation Strategies
  • Implemented an integrated ESG assessment toolkit for 100% of new corporate transactions
  • Integrated ESG as a driver of financial risk in risk appetite framework
  • Implemented stress testing to meet supervisory expectations
  • Developed Green PACE project to improve data collection and reporting
  • Collaborating with peer institutions to improve data quality
  • Focusing on practical implementation of EU Taxonomy with clients

Supply Chain Management

Responsible Procurement
  • Know Your Supplier (KYS) programme
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Inland flooding
  • Land subsidence
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
  • Energy price fluctuations
  • Changes in property values
Opportunities
  • Financing energy-efficient renovations
  • Developing sustainable finance products

Reporting Standards

Frameworks Used: GRI Standards, SASB Materiality Framework, TCFD recommendations, UN Global Compact, EU Taxonomy, UN SDGs, Equator Principles

Third-party Assurance: ESG information is not assured

UN Sustainable Development Goals

  • SDG 7 (Clean Energy)
  • SDG 8 (Economic Growth)
  • SDG 9 (Industry & Innovation)
  • SDG 11 (Sustainable Communities)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)
  • SDG 5 (Gender Equality)
  • SDG 3 (Good Health)

Embedded SDGs in Green Bond Framework; aligning eligible categories to SDG targets; supporting community development projects

Sustainable Products & Innovation

  • Sustainability-linked loans
  • Energy-efficient mortgages

Awards & Recognition

  • Top ranking in 2023 Eerlijke Bankwijzer for climate change policies and actions