Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Development Goals (SDGs)
• Responsible Lending and Investment
• Social Sustainability
• Environmental Sustainability

Environmental Achievements

• Reduced carbon dioxide emissions from 342,000 kg in 2018 to 140,154 kg in 2020 (largely due to decreased travel from COVID-19 and a renegotiated electricity agreement).
• Launched a wind power fund investing in Finnish wind farms.
• Two environmentally friendly certified investment products (Nordic Ecolabel).

Social Achievements

• Continued operations, contributing to jobs and tax revenue in the Åland community.
• Maintained decent working conditions based on collective bargaining agreements and regulations.
• Actively promoted social sustainability, including inclusion, equal worth, and community commitment.
• Collaborated with Dreams to educate young people on sustainable finances.

Governance Achievements

• Board of Directors oversees strategic sustainability objectives and yearly monitoring.
• Executive Team continuously discusses corporate responsibility and leads strategic sustainability work.
• ESG Committee advises on sustainability and investment issues, monitors compliance with policies and guidelines.

Climate Goals & Targets

Environmental Challenges

• Identifying and mitigating potential negative impacts of targets on other dimensions of SDGs/climate change/society's goals.
• Refining methodology for impact analysis.

Mitigation Strategies

• Conducting materiality analysis to identify areas of significant positive and negative impact.
• Setting clear development targets and regularly following up.
• Planning to exclude fossil fuels from investment portfolios.
• Developing responsible investment policy aligned with EU sustainable finance regulation.
• Working to become a climate-neutral group.

Supply Chain Management

Responsible Procurement

• Code of Conduct discussed with suppliers and B2B clients

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Paris Climate Agreement

Certifications: Nordic Ecolabel (Svanen)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 13 (Climate action)
• SDG 14 (Life below water)

The bank's operations and initiatives are aligned with these SDGs through various programs and targets.

Sustainable Products & Innovation

• Åland Index
• Green Bond ESG and Global Equity Fund (fossil free)
• Wind power fund

Environmental Metrics

ESG Focus Areas

• Responsible investments
• Responsible lending
• Environmental responsibility
• Social responsibility

Environmental Achievements

• Reduced CO2e emissions by 9% compared to 2021 (restated figures)
• Increased share of environmentally certified electricity to 100% by year-end 2022
• EUR 550,000 contributed to Baltic Sea Project in 2022

Social Achievements

• Named Finland’s best Private Banking operator for the second year in a row
• Launched a share savings program for all Group employees with 69% participation
• Organized a Christmas gift drive for Ukrainian refugee children

Governance Achievements

• Established a climate strategy with targets for emission reduction and climate neutrality
• Improved data quality for future reporting requirements (Taxonomy Regulation, SFDR, CSRD)
• Initiated a prioritized project for the Corporate Sustainability Reporting Directive (CSRD)

Climate Goals & Targets

Environmental Challenges

• Data limitations in accurately calculating greenhouse gas emissions, especially Scope 3
• Increased customer fraud incidents requiring enhanced cybersecurity measures
• Managing climate-related risks (physical and transition risks) in a developing phase

Mitigation Strategies

• Developing models to monitor progress towards climate targets
• Continuous investment in cybersecurity measures and employee training
• Integrating climate risks into existing risk management processes

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Stranded assets

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment (UNPRI), UN Principles for Responsible Banking (UNEP FI), Net-Zero Banking Alliance (NZBA), Climate Action 100+, Greenhouse Gas Protocol (GHGP)

UN Sustainable Development Goals

• Goal 6: Clean water and sanitation
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 14: Life below water
• Goal 15: Life on land

The Bank's products and services affect various sustainability areas, both positively and negatively. Positive impacts are primarily linked to decent work and economic growth, and sustainable cities and communities. Negative impacts are primarily linked to climate and the environment.

Sustainable Products & Innovation

• Baltic Sea Account
• Åland Index
• Wind Power Fund
• Green Bond ESG fund

Awards & Recognition

• Finland’s best Private Banking operator (Kantar Prospera)

Environmental Metrics

ESG Focus Areas

• Responsible Investments
• Responsible Lending
• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Established climate targets supporting the Paris Agreement: Net-Zero Emissions by 2050, Climate-neutral by 2035
• Launched the Baltic Sea Project, contributing EUR 615,000 in 2023 and EUR 4.4M since 1997 to various environmental projects.
• Published Green Finance Framework in September 2021, receiving a medium green shading from Cicero Shades of Green. Avoided 4360 tonnes CO₂e in 2022.

Social Achievements

• High ranking in customer loyalty.
• Active work with social sustainability, focusing on inclusion, equal worth, sound values, and community involvement.
• Donates an amount equivalent to up to 0.2 per cent of deposits in Baltic Sea Accounts for environmental work.

Governance Achievements

• Signed the UN Principles for Responsible Banking (2019) and the Principles for Responsible Investment (2010).
• Joined the UN Net-Zero Banking Alliance as a founding signatory (2021).

Climate Goals & Targets

Environmental Challenges

• Geopolitical and inflation-related concerns, international banking sector turmoil.
• Rising oil and energy prices, inflation, rising interest rates/bond yields, and falling share prices affecting customer repayment capacity and collateral value.

Mitigation Strategies

• Issued a new T2 instrument (SEK 200M) and a new covered bond (EUR 250M) in 2023.
• Transfer of Swedish home mortgage loans to Borgo AB, freeing up liquidity and capital.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs, Paris Agreement, Green Bond Principles (GBP)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 14
• Goal 15

Awards & Recognition

• Ålandsbanken KortFöretagsränta named best Nordic fund in its category by Refinitiv Lipper