Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social

Social Achievements

• Developed a SDG Housing Bond Framework to finance affordable housing, aligning with the Social Bond Principles 2018 and focusing on low-income households.

Climate Goals & Targets

Environmental Challenges

• Risks associated with environmental and climate impacts of construction, economic or physical displacement of people, exacerbated inequality if social programs are not well-targeted, and community support or opposition.

Mitigation Strategies

• Relying on internal policies, external guidelines and regulations, a Human Rights Policy, environmental commitments, participation in initiatives like the UN Global Compact, and a whistleblower scheme. Lending only to housing organizations guaranteed by the Dutch Social House-building Guarantee Fund (WSW).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Social Bond Principles 2018, GRI

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 11: Sustainable Cities and Communities

Providing loans to social housing providers will lead to positive social impacts and advance the UN Sustainable Development Goals.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions from business operations to 1.2 tonnes CO2(eq) in 2021 from 1.5 in 2020.
• 86% of the car fleet was emission-free in 2021.

Social Achievements

• Implemented a hybrid working arrangement focusing on employee physical and mental health.
• Organised Diversity Day and a session on cultural differences.
• Filled three internship positions.

Governance Achievements

• Organised bank-wide training courses on market abuse and Customer Due Diligence.
• Updated the diversity and inclusion policy.
• Updated the occupational health and safety policy.

Climate Goals & Targets

Environmental Challenges

• Higher absenteeism in 2021 due to long-term illnesses caused by the COVID-19 pandemic.
• Limited savings measures possible in a compact office organization.
• Difficulty in quantifying waste due to limitations in waste processor's information.

Mitigation Strategies

• Made a budget available for equipping employees' home workplaces with health and safety-certified furniture.
• Exploring measures like installing a heat pump and LED lighting in the office building.
• Engaging in dialogue with suppliers to improve sustainability arrangements.

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: GRI, UN Global Compact, UN Guiding Principles on Business and Human Rights, UN SDGs

Certifications: ISO 27002

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green loans
• Sustainable project finance
• Sustainable loans
• Sustainable mortgages
• NWB Bank Green Bonds
• NWB Bank Social Bonds

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions from business operations to 0.9 tonnes CO2(eq) in 2022 from 1.2 in 2021. Target is <2.0 tonnes CO2(eq).
• Achieved an A energy label for the office building in 2022.
• 100% of the car fleet is emissions-free.

Social Achievements

• Implemented a hybrid working arrangement focusing on employee physical and mental health.
• Spent an average of €3,453 per employee on training in 2022.
• No reports of discrimination within the organisation in 2022.

Governance Achievements

• Organised bank-wide training courses on integrity and Customer Due Diligence.
• No incidents of corruption relating to NWB Bank reported or identified.
• Adherence to the collective labour agreement for the banking industry.

Climate Goals & Targets

Environmental Challenges

• Higher absenteeism in 2022 due to long-term illnesses and a general increase in illness nationally.
• Limited savings measures for the office building due to roof size. Investigating PV panels and heat pump installation.

Mitigation Strategies

• Budget available for equipping home workplaces with health and safety-certified furniture.
• Workplace surveys by occupational health experts available to employees.
• Appointment of a prevention officer in 2023 to focus on a healthy working environment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Dialogue with suppliers to improve sustainability arrangements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Guiding Principles on Business and Human Rights, Equator Principles

Certifications: ISO 27002

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green loans
• Sustainable project finance
• Sustainable loans
• Sustainable mortgages
• Sustainable financing
• NWB Bank Green Bonds
• NWB Bank Social Bonds
• Sustainable funding

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Social Impact
• Circular Economy
• Governance

Environmental Achievements

• Reduced climate footprint of loan portfolio by 26% since 2019
• Achieved 16% absolute and 25.5% relative CO2e emission reduction since 2018
• 91.9% of loan portfolio climate impact calculated using PCAF methodology

Social Achievements

• Issued €2.3 billion in SDG Housing Bonds to finance social housing
• Provided €5.3 billion in loans to housing associations
• Organized client days for water authorities and housing associations
• No complaints received in 2023

Governance Achievements

• Completed Lighthouse change programme
• Improved internal controls
• Ranked fourth in the Transparency Benchmark for CSR reporting

Climate Goals & Targets

Environmental Challenges

• Limited quality and timeliness of sustainability data from clients
• Many public sector clients not yet reporting in line with EU taxonomy
• Limited absorption and adaptation capacity of the organization
• Political dynamics
• Changing role of government in guarantees
• Increasing operational complexity (e.g., cybersecurity)
• Limited earnings capacity (partly due to high tax burden and supervision costs)

Mitigation Strategies

• Developed a climate action plan with year-on-year reduction targets
• Engaging with clients on sustainability and setting sustainability-linked loans (SLLs)
• Investing in knowledge, staff, and systems
• Strengthening internal controls
• Implementing the Lighthouse change programme
• Proactive dialogue with stakeholders

Supply Chain Management

Responsible Procurement

• Use of sustainable building materials

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• Heat stress
• Sea level rise
• Water quality and availability

Transition Risks

• Regulatory changes
• Market shifts
• Energy shortages
• Grid availability
• Housing sustainability

Opportunities

• Financing renewable energy projects
• Offering sustainability-linked loans

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Independent auditor’s report and Assurance report of the independent auditor on the non-financial information

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 11
• SDG 13
• SDG 14
• SDG 15

Lending activities contribute to these goals through financing water management, renewable energy, social housing, climate action, biodiversity conservation, and circular economy initiatives.

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Climate Change Adaptation
• Biodiversity
• Water Management
• Circularity
• Social Inclusion
• Affordable Housing
• Energy Poverty

Environmental Achievements

• Reduced CO2e emissions in loan portfolio by 23% (water authorities) and 31% (housing associations) compared to 2018.
• 68% of flood defenses meet 2050 standards by 2022.
• 98.7% of wastewater discharges meet standards by 2022.

Social Achievements

• Launched NWB Water Innovation Fund to support innovative water projects.
• Working towards building 250,000 new social dwellings by 2030 (housing associations).

Governance Achievements

• Embedded ESG into primary processes across the organization.
• Established an ESG data control framework and regularly conducts ESG gap analyses.

Climate Goals & Targets

Environmental Challenges

• Data quality and timeliness issues for ESG impact and risk management.
• Lack of standard benchmarks for ESG assessment in some sectors.
• Uncertainty in clients' ESG targets and their alignment with the Paris Agreement.
• Limited data availability on biodiversity and circular economy from clients.

Mitigation Strategies

• Established an ESG data control framework and regularly conducts ESG gap analyses.
• Engaging with clients and umbrella organizations to set clear targets and action plans.
• Using guidelines from SBTi and other reputable parties for target setting.
• Developing sector-specific approaches to ESG impact and risk management.

Supply Chain Management

Responsible Procurement

• Application of Equator Principles where relevant for renewable energy projects.

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Heat stress
• Extreme weather
• Flooding

Transition Risks

• Energy transition
• Changes in regulations (e.g., WFD)
• Stranded assets

Opportunities

• Financing renewable energy projects
• Sustainability-linked loans

Reporting Standards

Frameworks Used: CSRD (Corporate Sustainability Reporting Directive), SBTi (Science Based Targets initiative)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 6 (Clean Water and Sanitation)

The bank's strategy and activities contribute to these SDGs through financing of sustainable infrastructure, renewable energy, and water management projects, as well as promoting affordable and sustainable housing.

Sustainable Products & Innovation

• Sustainability-linked loans