ESG and Green Bonds
A lending portfolio that stands out
Landshypotek Bank finances farming, forestry and living in the countryside in Sweden. Farming and forestry are two unique sectors, as they have both positive and negative impacts on the climate.
Climate impact, grounded in data
We conducted a portfolio analysis to calculate the climate footprint of the bank’s credit portfolio for farming, forestry and living in the countryside. The analysis is based on standardised data adapted to the bank’s credit portfolio.
The analysis incorporates a number of assumptions, including the average number of livestock units across different farming activities, greenhouse gas (GHG) emissions from cultivated land, and energy consumption associated with various types of farming activities.
The findings show that the bank’s credit portfolio has a positive climate impact — in other words, the underlying properties, along with their associated activities and operations in the bank’s credit portfolio together sequester more carbon dioxide than they emit.
Material sustainability topics
Our material sustainability topics are the foundation of Landshypotek Bank’s sustainability agenda.
- Climate change (E1)
- Biodiversity and ecosystems (E4)
- Own workforce (S1)
- Governance (G1)
See our latest Investor presentation (pdf) for further details within each topic.
ESG information
| Climate target 2045 | Net zero in 2045 |
| Scope 1 (tCO2e) | 0 |
| Scope 2 (tCO2e) | 46.1 |
| Scope 3 (tCO2e) | 53.9 |
| Green Bonds | 11.5 bn SEK |
| Gender Distribution (men/women): | |
| – total | 112 (43%) / 124 (53%) |
| – managers | 12 (48%) / 13 (52%) |
| – management group | 6 (75%) / 2 (25%) |
| – board | 5 (71%) / 2 (29%) |
| Employee turnover | 6% |
| Employee commitment, eNPS | 44 |
Green Bonds
Landshypotek Bank has issued green bonds with a total volume of 11.5 billion SEK. Both bonds are covered bonds that finance sustainable forestry. Swedish sustainable forestry reduces carbon emissions and preserves biodiversity, while also contributing with wood-based products that replace fossil materials.
The first bond, issued in 2018, was historic in more than one way. At the time of issuance, it was the world’s first Green Covered Bond in SEK based on sustainable forestry.
Landshypotek Bank Green Bond Framework
The Landshypotek Bank Green Bond Framework is aligned with the Green Bond Principles. Landshypotek Bank has obtained an independent second opinion from CICERO (Center for International Climate and Environmental Research – Oslo) on the Green Bond Framework and policies for considering the environmental impacts of their projects. Based on the assessment of project types, policies, goals, and reporting standards, Landshypotek Bank Green Bond Framework has received a Dark Green shading by CICERO.
In order to be part of Landshypotek Bank green assets, either condition A or B below needs to be fulfilled.
A:
- (i) Compliance with the Swedish Forestry Act;
- (ii) an up-to-date green forest management plan, including nature conservation action plans for at least five per cent of productive area (section nature protection (NO) and habitat management (NS)). A green forest management plan provides a detailed inventory of the forest land holding and is an important tool for the forest owner to manage the forest in an active and sustainable way; and
- (iii) a minimum target of five per cent deciduous tree noted in the green forest management plan. Deciduous trees are beneficial to many species and make the forest more resistant in the event of storms.
B:
- A certification through the Forest Stewardship Council (FSC) and/or the Programme for the Endorsement of Forest Certified (PEFC) which means that criteria (i), (ii) and (iii) above is fulfilled
We have the opportunity to include Renewable Energy and Green Buildings as Green Assets but have not yet done that. Our green asset pool does only include assets fulfilling the conditions for Sustainable Forestry.
Business Conduct
Please find our policies and guiding documents that further describe how we aim to work to reduce ESG related risk and encourage a sustainable culture within Landshypotek Bank. Since we only operate in Sweden and corporate language is Swedish, they are all in Swedish (sorry about that).
Full list of governing documents (in Swedish)
Contact
