Finnvera plc
Climate Impact & Sustainability Data (2022, 2022-2023, 2023)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Green exports
- Renewable energy
- Green industry
- Green maritime
- Sustainable development
Environmental Achievements
- Reduced the share of oil and gas in the loan and guarantee portfolio from 80% to 28%.
Social Achievements
- Opened a new regional office in Stavanger and strengthened the office in Ålesund.
- Expanded its range of products for financing eco-friendly projects.
- Developed guidelines for categorising green projects.
Governance Achievements
- Implemented a new organisation and strategy in the first quarter of 2022.
- Conscientiously managed operational costs.
- Actively participates in negotiations on the restructuring of debt linked to distressed commitments.
Climate Goals & Targets
Long-term Goals:
- Cut climate gas emissions by 55% within 2030
Medium-term Goals:
- Increase exports outside O&G by 50% within 2030
Short-term Goals:
- Launch a new working capital product in 2023.
Environmental Challenges
- Disruptions in supply chains.
- War and high energy costs.
- Rising interest rates and global unrest.
- High energy costs and raw material prices in Europe.
- Risk of food shortages and debt crises in developing countries.
- Reduced production and economic decline in Europe.
Mitigation Strategies
- Being a predictable, proactive financing partner and risk-taker for all types of Norwegian exports.
- Ensuring stable and predictable access to long-term financing and guarantees through business cycles.
- Expanded financial services to export-oriented investments and introduced extra flexibility for eco-friendly projects.
- Offering revolving financial frameworks in cooperation with banks, facilitating working capital for small and medium-sized businesses.
- Continuously updating services in line with changing financial needs.
- Actively working on collecting receivables through the sale of mortgaged objects and loans.
- Restructuring solutions that contribute to reducing the final loss.
Supply Chain Management
Responsible Procurement
- Requirements set for customers and their suppliers
Climate-Related Risks & Opportunities
Opportunities
- Financing of renewable energy projects
Reporting Standards
Frameworks Used: OECD Arrangement on Officially Supported Export Credits
UN Sustainable Development Goals
- Goal 7
- Goal 8
- Goal 9
- Goal 12
- Goal 13
- Goal 14
- Goal 16
- Goal 17
Eksfin's financing has contributed to more projects with positive effects on a total of eleven SDGs. The results mirror transactions focusing on the green shift.
Reporting Period: 2022-2023
Environmental Metrics
Total Carbon Emissions:860,758 kg CO2-e (location-based); 535,837 kg CO2-e (market-based)
Scope 1 Emissions:37,810 kg CO2-e
Scope 2 Emissions:680,037 kg CO2-e (location-based); 362,970 kg CO2-e (market-based)
Scope 3 Emissions:142,912 kg CO2-e (location-based); 135,058 kg CO2-e (market-based)
Renewable Energy Share:35%
Water Consumption:10,660 kilolitres (corrected for water leak)
Waste Generated:17.8 tonnes to landfill; 0.3 tonnes co-mingled recycled; 7.5 tonnes cardboard recycled
ESG Focus Areas
- Climate Change
- Social Responsibility
- Governance
Environmental Achievements
- Provided $160m in finance to critical minerals projects.
- Provided a US$30 million loan to support VinFast to manufacture electric buses and enable a national charging network in Vietnam.
- Achieved net zero emissions by 2050 for Perdaman Urea Project (Scope 1, with mitigation and offsets).
Social Achievements
- Supported 36,434 Australian jobs.
- Reached more Australian SMEs, providing $314m to 137 businesses.
- Signed an MOU with Indigenous Business Australia (IBA) to support First Nations businesses.
- Women comprise more than 50% of executive and senior management team.
Governance Achievements
- Named a 2023 Australian Financial Review BOSS Best Places to Work.
- Certified as a 2023 Great Place to Work®.
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050 (for Perdaman Urea Project, Scope 1)
Environmental Challenges
- Economic turbulence fueled by labor shortages, higher interest rates, persistent inflation, and tremors in US and European banking systems.
- Potential environmental and social impacts of transactions, particularly Category A projects (e.g., Perdaman Urea Project).
Mitigation Strategies
- Applied better-practice environmental and social standards, including Equator Principles and IFC Performance Standards.
- Imposed contractual terms on entities receiving finance to address environmental and social issues.
- Monitored compliance with imposed conditions, including site visits for Category A transactions.
- Developed a detailed net zero strategy for the Perdaman Urea Project, achieving net zero Scope 1 emissions by 2050 (with mitigation and offsets).
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Opportunities
- Financing green renewable energy trade and infrastructure
Reporting Standards
Frameworks Used: Equator Principles, OECD Recommendation of the Council on Common Approaches, OECD Guidelines for Multinational Enterprises, IFC Performance Standards, TCFD (implicitly)
Certifications: Great Place to Work®
Awards & Recognition
- 2023 Australian Financial Review BOSS Best Places to Work
- 2023 Great Place to Work®
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:5.8 Mt CO2e (2022: 9.0 Mt CO2e)
Renewable Energy Share:38% (36%) of export exposures related to energy production
ESG Focus Areas
- Climate change
- Community impact
- Environment
Environmental Achievements
- Defined a climate target for operations to promote the Paris Agreement's 1.5-degree goal.
- Developed sector-specific criteria for identifying climate-positive export projects and launched financing incentives for them.
- Introduced Climate and Environmental Loan and Digitalisation and Innovation Loan to accelerate the green transition in domestic financing.
- Reduced emissions from financing operations by 35% compared to the previous year's report.
Social Achievements
- Updated values and corporate culture were introduced into daily work.
- Finnvera Academy established to improve employee understanding of the company's operations.
- Average of 21.8 hours of training organized for employees in 2023.
- Employee work energy remained at a high level (4.3/5).
Governance Achievements
- Introduced ESG reports from Suomen Asiakastieto in domestic financing to identify risks related to applicant companies’ business.
- Developed a framework for sustainable financing for the company's investments and achieved its targets in investment activities.
- Green, social, and sustainable bonds covered approximately 18% of long-term investments by the end of 2023.
Climate Goals & Targets
Long-term Goals:
- Measures that promote the Paris Climate Agreement goal of limiting global warming to 1.5 degrees.
Medium-term Goals:
- Define an emission reduction pathway to 2050 and start measuring performance with a CO2/EUR indicator.
Short-term Goals:
- Publish climate target, criteria, and incentives.
Environmental Challenges
- Economic downturn in Finland and the euro area, impacting investments and consumption.
- Decline in investments due to high interest rates.
- Deterioration of risk indicators in domestic financing, including increased payment difficulties and bankruptcies.
- Increased credit risk indicators for domestic financing.
Mitigation Strategies
- Introduced new financing products to improve access to financing for SMEs, including Climate and Environmental Loan and Digitalisation and Innovation Loan.
- Updated SME Guarantee with expanded uses.
- Introduced export credit for transactions worth less than EUR 20 million.
- Preparing for an increase in financial restructuring arrangements in 2024.
Supply Chain Management
Responsible Procurement
- Compliance with the Finnish Act on Public Procurement.
- Use of Hansel framework agreements.
- Consideration of corporate responsibility in procurements.
Climate-Related Risks & Opportunities
Opportunities
- Financing growth, exports, and investments in climate change mitigation and circular economy projects.
Reporting Standards
Frameworks Used: GRI
Certifications: ISO 9001