KommuneKredit
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:7 tCO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Green financing
- Sustainability
- Climate change adaptation
- Corporate governance
Environmental Achievements
- Issued green bonds totaling DKK 2.2 billion in 2021, bringing the total outstanding amount to DKK 19.1 billion by year-end.
- Approved 148 green loans totaling just under DKK 5 billion, primarily financing projects in district heating and water/wastewater management.
- Esbjerg Municipality's switch to electric buses, reducing CO2 emissions by 2,700 tonnes (70%).
Social Achievements
- Provided loans of DKK 135 million to 82 residential care facilities in Rødovre Municipality.
- Provided loans of DKK 3.4 million for climate-friendly facade cladding in Tønder Municipality.
- Leased 31 ambulances for the Central Denmark Region.
- Provided loans of more than DKK 4.5 million for Kystsikringslauget Nørlev Strand in Ålborg Municipality.
- Financed the establishment of Denmark's first refugee museum in Oksbøl.
Governance Achievements
- Published a corporate governance report to ensure transparency.
- Strengthened the Board’s initiatives based on recommendations of the Danish Corporate Governance Committee.
- Completed the Data Warehouse project, strengthening data quality.
- Outsourced the handling of collateral and undertaken quality assurance of all activities in subsidized loans.
- Modernized core systems relating to lending and leasing.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Increase the volume of sustainable financing.
Short-term Goals:
- Not disclosed
Environmental Challenges
- Uncertainty regarding the long-term basis for KommuneKredit to grant loans to district heating and waste energy sectors due to political decisions.
- Potential impact of political decisions on the green transition and the availability of KommuneKredit loans.
Mitigation Strategies
- Closely studying new EU state aid guidelines and using them to continue supporting local Danish plans for the green transition.
- Updating the framework for green loans and green bond issuance to include more sustainable projects.
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: Green Bond Principles of the International Capital Markets Association (ICMA)
Certifications: Null
Third-party Assurance: CICERO Shades of Green
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Green loans
Awards & Recognition
- Not disclosed
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:58 tCO2e/year
Scope 1 Emissions:0 tCO2e/year
Scope 2 Emissions:7 tCO2e/year
Scope 3 Emissions:51 tCO2e/year
Renewable Energy Share:93%
Total Energy Consumption:390 MWh/year
Water Consumption:893 m3/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Green and sustainable financing
- Environmental and climate considerations
- Diversity and job satisfaction
- Good business ethics
- Openness and communication
Environmental Achievements
- Reduced carbon emissions by 56% relative to 2018 (due in part to COVID-19 travel restrictions)
- 93% renewable energy share
Social Achievements
- Increased employee engagement and loyalty scores
- Implemented stress guide for employees and manager's guide to prevent stress
- Offered influenza and COVID-19 vaccinations to employees
Governance Achievements
- Established an internal ESG committee
- Integrated ESG considerations into Management Board’s decision-making processes
- Organized a company-wide ESG day
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Reduce carbon emissions related to our own operations by at least 55% by 2030 relative to 2018
Short-term Goals:
- Increase the share of sustainable loans in our lending portfolio to at least 25 per cent by 2025
- Map the climate footprint of our lending and investment portfolio by 2025
- Assess the feasibility of carbon emission reduction targets for our lending and investment portfolio by 2025
- Strengthen our inclusive company culture towards 2025
- Maintain a high level of employee loyalty and employee engagement
Environmental Challenges
- Not sufficiently meeting investors' expectations and demand for ESG data
- Greenwashing issues
- Not recruiting skilled employees from a diverse talent pool
- Dissatisfaction with indoor climate in historic office buildings
Mitigation Strategies
- Closely following new regulatory requirements and market developments within sustainable finance
- Updated Green Bond Framework
- Investing in leadership development and hiring Sustainable Finance Managers
- Assessing economic feasibility of solutions for more energy-efficient ventilation system
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Internal supplier guidelines on sustainability and responsibility
Climate-Related Risks & Opportunities
Physical Risks
- Storms and flooding affecting Danish municipalities and regions
Transition Risks
- Reforms related to financing, infrastructure etc., as Danish society transitions to a low-carbon society
Opportunities
- Increased demand for green financing
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 5
- SDG 8
- SDG 12
- SDG 13
- SDG 16
The report mentions SDG alignment for various initiatives throughout the document.
Sustainable Products & Innovation
- Green loans
Awards & Recognition
- Not disclosed