ESG

The Corporate Sustainability Reporting Directive (CSRD) requires companies to provide comprehensive reports on their environmental, social, and governance (ESG) performance. ESG reporting is crucial for transparency and offers insights into how companies address sustainability and social responsibility.

Environmental:

Companies must report their environmental impact, such as CO2 emissions, energy consumption, and waste management.

Social:

Reports should include information on social issues such as working conditions, human rights, and diversity and inclusion.

Governance:

Companies must disclose their governance practices, including corporate management, ethics, and anti-corruption measures.

The new ESG provisions apply to corporate clients who refinance or are provided with a loan or credit as from March 2025.

The bank did not have a legal basis to agree with clients on binding ESG-related conditions. This basis is necessary as ESG is becoming increasingly important in the bank’s policy and in legislation and regulations. The provisions in the General Credit Provisions and the credit agreement provide a legal basis for requesting ESG data from clients, for example. The new provisions also make it possible to agree on client specific ESG-related arrangements in the future. In addition, the bank can set ESG-related conditions for our products, for example that collateral meets certain ESG standards. The new ESG provisions make it transparent for the client what the consequences could be if specific ESG arrangements agreed with client are not complied with. An example could be not renewing or providing a credit in the future.