Jyske Bank identifies sustainable lending areas
10% of Jyske Bank’s present business volume are considered having a positive effect in relation to greenhouse gas challenges. A new set of criteria for green lending activities have been determined to boost this proportion.
Jyske Bank has analysed and mapped Jyske Bank’s direct and indirect impact on carbon emission in society. Of the DKK 648 bn which account for the business volume analysed 70% are related to sectors with a possibility of reducing greenhouse gas emissions. 20% are of minor importance for the emission, and finally just above 10% of the Group’s present business volume are considered having a positive effect relative to greenhouse gas challenges.
At present, property, agriculture and transport are the areas of activity with the largest potential of reducing carbon emissions.
”There are areas where we can help our clients to make a difference to the benefit of the entire society. As from 2022 we must calculate the carbon footprints of our clients’ businesses with us. Consequently, it is in our interest that our clients endeavour to reduce greenhouse gas emissions” says Ole Sørensen, Senior Director at Capital Markets.
Here Jyske Bank’s money benefits the society most
The 10% with a positive effect consist today primarily of loans to sustainable buildings, the so-called A and B buildings, loans to sustainable energy production and the financing of low-emission vehicles. And it is through these businesses and products and the advisory services Jyske Bank offers its clients, that Jyske Bank can seriously make a difference for the green transition.
Consequently, Jyske Bank will launch a Green Finance Framework determining criteria for initially five green sustainable lending areas.
”We have designed the framework because we see increasing demand among both investors and clients who would like us to show which green and sustainable loans we already offer today. Moreover, we would also like to show in which direction Jyske Bank will move the loan portfolio in the coming years”, says Christian Bech-Ravn, Head of IR & Rating, Realkredit Balance Sheet Management.
Instead of offering green mortgage bonds Jyske Bank has decided to be transparent relative to its loans.
”Given our total size, we do not believe that it is the right thing for us or for our clients to issue green mortgage bonds. Instead we will show our carbon emissions for the entire mortgage credit portfolio”, concludes Christian Bech-Ravn.
The focus of the framework is not solely on carbon emission, but also other activities with sustainable initiatives. Currently, specific targets have been defined for the development of Renewable energy and Clean transportation. The framework will be dynamic in order to follow the trend in the sustainability agenda, and Jyske Bank's definitions of sustainable financing, objectives and initiatives will therefore be updated on an ongoing basis.
Read Jyske Bank’s impact analysis [PDF]
The five focus areas of Jyske Bank’s Green Finance Framework
- Renewable energy
- Green buildings
- Clean transportation
- Sustainable utilisation of natural resources
- Recycling and sustainable production
Ole Sørensen, Senior Director, Capital Markets, tel. + 45 23 31 74 22.
Christian Bech-Ravn, Head of IR & Rating, Realkredit Balance Sheet Management, tel. + 45 21 79 70 17.