MuniFin has unveiled a sustainability agenda, which sets the framework and goals for the company’s long-term sustainability efforts. The company commits to increasing the proportion of sustainable finance and, for the first time, sets emission reduction target for financed buildings.
The sustainability agenda of MuniFin defines a clearer direction and objectives for the company’s sustainability efforts, extending up to 2035. The agenda helps in meeting future regulations and enhances reporting and communication with customers, investors, and other key stakeholders.
“The sustainability agenda is our way of measuring and communicating what we aim to achieve through our work. Our goals are now more aligned with what we are already doing and what we aspire to achieve in the future,” says Esa Kallio, CEO of MuniFin.
At least one-third of long-term customer financing green and social finance by 2030
The sustainability agenda consists of three parts: The first part addresses MuniFin’s business environment from the perspective of sustainable development and how the company’s operations relate to national and international goals. The agenda’s second and most important part includes the actual themes, goals, and metrics for MuniFin’s sustainability efforts. The third part discusses the future of the company’s sustainability work.
“MuniFin’s customers like municipalities and affordable social housing organisations play a significant role in achieving Finland’s climate goals. Our most substantial positive impact comes through our business, i.e., the financing we provide”, says Mikko Noronen, Sustainability Analyst at MuniFin.
MuniFin aims for at least one-third of long-term customer financing to be green and social finance by 2030. The company has also established its first emissions reduction target. Its goal is to achieve 8 kgCO2 per m2 by 2035, which represents a 38% decrease from the 2022 levels. The majority (56%) of MuniFin’s long-term customer financing has been allocated to real estate.
MuniFin has been developing emissions calculations for a while and, for example, joined the Partnership for Carbon Accounting Financials initiative (PCAF) in 2022. The network’s goal is to develop and implement a unified way of calculating and reporting financed emissions to promote the objectives of the Paris Climate Agreement.
MuniFin monitors goal achievement annually as part of its annual reporting, and goals may be expanded or tightened as necessary. The document will also be updated according to changes in the business environment.
The MuniFin Sustainability Agenda
Further information:
Antti Kontio, Head of Funding and Sustainability, tel. +358 50 3700 285, antti.kontio(at)munifin.fi
MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The owners of the company include Finnish municipalities, the public sector pension fund Keva and the Republic of Finland. MuniFin Group also includes the subsidiary company, Financial Advisory Services Inspira Ltd. The Group’s balance sheet totals approximately EUR 48 billion.
MuniFin builds a better and more sustainable future with its customers. Our customers include municipalities, joint municipal authorities, wellbeing services counties, joint county authorities, corporate entities under the control of the above-mentioned organisations, and affordable social housing. Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.
MuniFin’s customers are domestic, but the company operates in a completely global business environment. The company is an active Finnish bond issuer in international capital markets and the first Finnish green and social bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.
Read more: www.munifin.fi
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