Green bond investor presentation August 2020 Disclaimer This - PowerPoint PPT Presentation

Green bond investor presentation August 2020

Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for Nordea include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. This presentation does not imply that Nordea has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 2

Sustainability at Nordea 3

Nordea’s sustainability journey • Enhanced weapon policy • Fixed income STARS fund • New corporate values framework • Excludes investments • Green bond framework companies involved • Inaugural green bond • CDP in nuclear weapons issuance • Excludes cluster • EITI • • • Climate change position UNEP FI Principles for Emerging STARS munitions • • • PRI IIGCC Water engagement statement responsible banking fund • Annual CSR • UNEP FI initiated • • • First sustainable finance Green corporate loans Excludes reporting • • Global compact Excludes companies • conference Green mortgages investments in • Equator heavily involved in • Green car loans & leasing soft commodities Principles coal 2010 2012 2014 2008 2016 2018 2007 2015 2017 2019 2009 2011 2013 • • • Initiates Swedish STARS Global STARS fund • • engagement fund Systematic ESG Sustainable finance • Nordic STARS fund activities screening of large becomes a group function • • Own ESG method ESG integrated in • corporate customers Group level Sustainability established traditional analysis policy • Sector guideline defence industry Our ambition is to • CHRB be acknowledged • BA sustainability leads as a leading European bank in the transition towards a sustainable future 5

A strong sustainability governance Board Operations and Compliance Committee Board committee established 2017 Group Executive Management CEO decides on strategic sustainability direction and Signatories to international conventions focus areas including plans, targets and KPIs Business Ethics and Values Committee Decision-making committee Sustainability Committee Operational sub-committee to Business Ethics and Values Committee Nordea also follows the United Nations’ Universal Declaration of Human Rights, ILO- conventions and the OECD Guidelines for Multinational Enterprises in our operations and business. Group Sustainable Finance Centre of Excellence regarding sustainability working for the overall benefit of Nordea and its customers Personal Commercial & Asset & Wealth Wholesale Group Banking Business Banking Management Banking Functions 6

Selected Polices & Publications You can find all Policies of these • A part of code of conduct documents on • Sustainability Policy Nordea.com • Responsible investments policy /sustainability Position statements & sector guidelines • Climate change • Fossil fuels industry • Defence industry • Shipping industry • Gambling industry Reports & Brochures • Annual Sustainability Reports • Annual Responsible Investment Reports • Annual Green Bond Reports • Thematic engagement reports • Informative brochures e.g. ESG 7

Nordea Climate Work and Commitments Implementing TCFD Some Quantified Results ▪ Nordea Group will have fully implemented ▪ Lending: 1 273 795 tonnes of CO2 in avoided annual emissions through the Recommendations from the Task Force our EUR 2.6 billion Green Bond Asset portfolio in 2019 on Climate-related Financial Disclosures by ▪ Investing: In 2019 Nordea Life and Pensions reallocated EUR 2.5 billion year 2023 which includes reporting material climate risk in annual filings to reduce carbon emissions from those investments by -46% ▪ The Governance, Strategy, Risk ▪ Own Emissions: Less air travel by Nordea employees to internal Management, Metrics & Targets structure meetings in 2019 helped reduce CO2 emissions from air travel by 11% will be used to minimise transition and physical climate risks whilst maximising opportunities in a coordinated and organised fashion Collective Commitment to Climate Action Net Zero Asset Owner Alliance ▪ The collective commitment between 33 banks with EUR 11 trillion in assets ▪ Nordea Life & Pension is member of the Alliance committed to transitioning will help Nordea align our portfolios to reflect and finance our part of a their investment portfolios to net-zero GHG emissions by 2050 consistent with a maximum temperature rise of 1.5°C above pre-industrial transition required to limit global warming to well-below 2, striving for 1.5°C ▪ Signatory banks aim to harmonize reporting, develop common KPI’s and temperatures metrics to ensure comparability, tracking and collective communication of ▪ Together we advocate for and engage on corporate and industry action as progress ▪ We will critically assess limitations of existing methodologies and develop a well as public policies for a low-carbon transition of economic sectors 8 consistent methodological approach, including scenarios chosen, for ▪ We drive the development of industry best practice through our investment measuring alignment of portfolios with Paris Agreement ▪ We will set and publish sector-specific, scenario-based targets for portfolio mandates alignment (2022) ▪ Represents over EUR 4 trillion in owned assets 8

Current sustainability focus at Nordea As part of our future direction, the Principles for Responsible Banking will be our main guiding framework. Sustainable finance will enable Nordea to be a strong bank and a positive contributor in society. A selection of our targets for 2020 are presented below. Sustainability targets Perform an impact analysis in Significantly increase AuM in Decide on climate strategy for Develop and launch accordance with the Sustainable Selection. the fund offering. sustainability training to Principles for Responsible establish stronger local Banking. expertise amongst advisors. Develop ESG risk data in the Analyse climate risk in the Identify and assess climate Launch a Position Statement Group, taking account of large corporate lending risk exposure in the mortgage on tax and sector guidelines industry data available and portfolio as part of the UNEP portfolio. for the Extractive Industries the materiality of lending FUC TCFD Phase 2 Banking and for Agriculture. portfolios. Pilot. For each recruitment to Introduce diversity and Decrease air travel for Revise the company car leadership positions, there inclusion unconscious bias internal meetings with 30% policy to reduce carbon should be at least one female trainings for people leaders. compared to 2019. footprint. and one male candidate shortlisted. 9

Our products and capabilities Investment Financing Green bonds Star funds Finance specific investments with environmental benefits and give Proactively selected high-quality ESG companies. Done by a our customers the opportunity to address climate change in their combination of ESG analysis, company dialogues, thematic financing. research, engagement and field trips. Climate and Environmental Fund Green corporate loans Invests in companies which, through their climate solutions. The whole value chain is sustainable; the product is based on green It focuses on businesses operating in resource efficiency, market funding and the customer commits to using the financing environmental protection and alternative energy. for a sustainable investment. Sustainable model portfolio Green mortgages Offer discount on the interest rate for environmentally certified homes. Green car loans & leasing All funds are negatively screened Offer discount on the interest rate for electric cars to both private and corporate customers. 10