Position statement Danske Bank 4 April 2016

Transcription

1 Climate change Position statement Danske Bank 4 April

2 Introduction About Danske Bank Group Danske Bank is a Nordic universal bank with strong regional roots and close ties to the rest of the world. We serve more than 3.5 million personal, business and institutional customers, and in addition to banking services, we offer life insurance, pension, mortgage credit, wealth management, real estate and leasing services and products. Our vision is to be recognised as the most trusted financial partner, and we are driven by a desire to create long-term value for our customers, investors and the communities we serve. Danske Bank and corporate responsibility Financial institutions play a key role in maintaining financial stability and contributing to economic growth. It is our responsibility to conduct our business in a manner that creates long-term value for all our stakeholders. International agreements lay the basis for how we conduct our business in a responsible and transparent manner and provide a framework for our dialogue with stakeholders. The initiatives that the Group endorses include the following: UN Global Compact OECD Guidelines for Multinational Enterprises UN Guiding Principles on Business and Human Rights UN-supported Principles for Responsible Investment UN Environment Programme Finance Initiative Purpose and scope of position statements Danske Bank works continually to improve its business practices, and we encourage those we work with to do the same by taking environmental, social and governance (ESG) aspects of their business into consideration. Our position statements clarify how Danske Bank works and establish a shared framework for a proactive and forward-looking dialogue about risks and opportunities with our customers, business partners and the portfolio companies we actively invest in (the portfolio companies ). The statements apply in all the markets where we operate and encompass all the operations of Danske Bank Group. 2

3 Existing policies and position statements The international agreements that Danske Bank has signed lay the foundation for several of our policies and procedures, including our Responsibility Policy, Responsible Investment Policy, Supplier Policy and the ESG principles in the overall Credit Policy as well as the Arms and Defence Credit Policy. We also have position statements on the topics of arms and defence, climate change, mining and metals, and forestry. Engagement, feedback and contact Please visit our website at for more information about how we work in this area. You are also welcome to contact Dorte Eckhoff, Head of Corporate Responsibility, Danske Bank with further questions or feedback. 3

4 Climate change POSITION STATEMENT DANSKE BANK 1. Introduction Climate change is a global challenge that poses major environmental, economic and societal risks worldwide. According to UN s Intergovernmental Panel on Climate Change (IPCC), the average surface temperature has risen degrees worldwide in the past century, and consequences have already been observed across continents and oceans. The International Monetary Fund estimates that further increases in the temperature may pose the largest threat to the world economy in the 21st century, and scientists and organisations such as IPCC believe that it will require substantial and sustained reductions in greenhouse gasses going forward to stop global warming. Climate change is fundamentally altering the risks that businesses and the financial sector face throughout the world. While the physical impact of climate change already affects companies, many companies also face even more acute non-physical risks, such as shifting market trends and public policies that accelerate a global transition to a low-carbon economy. New opportunities also arise as investments in renewable energy and energy-efficient solutions can combine sound financial returns with environmentally sound behaviour. 2. Our approach Danske Bank acknowledges that the financial sector plays a role in supporting the transition to a low-carbon economy both directly through our own operations and indirectly through our cooperation with customers, portfolio companies and business partners. We therefore work systematically to minimise the negative environmental impact of our business operations. We assess the environmental risks of our business activities on the basis of internationally recognised standards, and we provide sustainable opportunities for investors through selected products. 3. Implementation To support the transition to a low-carbon economy, we have implemented a number of measures listed below. We will continue to review our efforts in order to meet our customers and stakeholders needs. 4

5 We are guided by international agreements Our business conduct is guided by a number of international agreements related to environmental issues that we encourage our customers, business partners and portfolio companies to adhere to as well (see the list in section 4). We consider environmental risks On the basis of these international agreements and conventions, we consider ESG risks in our investment, lending and procurement practices. We assess the environmental risks of our investments as part of our overall screening and ESG risk analysis, and in our investment decisions, we consider the risks of adverse environmental impact. As part of our general credit process, we assess possible ESG risks associated with our lending in collaboration with customers, and we clarify our expectation of responsible business conduct that is consistent with recognised international agreements. We provide sustainable opportunities We provide opportunities for investors to allocate capital to sustainable products by making it possible to include emissions data and measuring the climate footprint and carbon intensity for selected investment funds. We enable our customers to set up a platform to issue green bonds for their sustainable projects and thereby help to build a market for green bonds. We collaborate with the investment community We collaborate with the rest of the investment community as a member of the Institutional Investors Group on Climate Change (IIGCC). At IIGCC, we are committed to promoting low-carbon and climate-resilient investments. And we support long-term international climate-related policies that cultivate a stable investment environment that is crucial for a low-carbon economy. We invest in green bonds and energy efficiency Since 2014, Danske Bank Group Treasury has invested DKK 1 billion in green bonds that are issued for large renewable energy projects and climate protection, for example. We are evaluating new opportunities to invest in green bonds on an ongoing basis. In the period until 2020, Danica Pension will invest a total of DKK 200 million in energy efficiency in order to reduce energy consumption in our property portfolio by 30%. In the same period, we will invest DKK 100 million in 18 large solar cell parks at Danica Pension s properties. We reduce our own carbon footprint Since 2009, Danske Bank has been carbon-neutral, and we continue to reduce our negative impact on the environment. An essential part of this work is our environmental management system, which adheres to the ISO standard. We adjust our operations to make them more energy-efficient, and we source green electricity for our operations. The emissions that we cannot eliminate, we offset by the purchase of carbon credits for projects that guarantee a real reduction in CO2 emissions and that are verified according to international standards, such as the Gold Standard. 5

6 When we use an external supplier, we assess the risks on the basis of our Supplier Policy and our environmental requirements, which are based on internationally recognised agreements. If a supplier cannot live up to the requirements, we initiate a constructive dialogue with the company to find a better solution. 4. Agreements and conventions Danske Bank s business conduct is guided by a number of international agreements and conventions: UN Global Compact OECD Guidelines for Multinational Enterprise UN-supported Principles for Responsible Investments UN Environment Program Finance Initiative Institutional Investor Group on Climate Change CDP (formerly the Carbon Disclosure Project) UN Framework Convention on Climate Change The Montreal Protocol on Substances that Deplete the Ozone Layer 6