NIB launches Responsible Investment Framework

NIB has published a Responsible Investment Framework, setting out the principles for integrating environmental, social and governance aspects into the Bank’s treasury operations. The framework enters into force on 7 May 2021.

NIB became a signatory of the United Nation Principles for Responsible Investment (PRI) on 6 March 2020, and has thus committed to incorporate environmental, social and governance (ESG) factors into its investment analysis and decision-making processes.

NIB will use external data to assign ESG scores to all investments. Findings based on the ESG scores will be used either to avoid or to favour investments being evaluated. For other treasury activities, NIB will as part of the overall selection process use external controversy monitoring services when assessing counterparties for transactions.

The responsible investment approach covers all assets and activities of NIB Treasury, strengthening the objectives of mitigating risk and generating stable earnings. The framework consists of the following five approaches: 1. Exclusion list 2. Best-in-class approach to tilt the portfolio holdings towards higher ESG performance 3. Sustainable thematic investments 4. Counterparty selection and controversies monitoring 5. Active engagement with the issuers and counterparties.

“The setting up of a Responsible Investment Framework is a natural step for NIB given that its mission is to finance projects that improve productivity and benefit the environment of the Nordic and Baltic countries, Now we have a solid framework to make sure that also our Treasury activities contribute to our mission” says Björn Ordell, CFO and Head of Treasury & Finance at NIB.

The mission, given to NIB by its Nordic and Baltic owner countries, addresses future challenges such as climate change, the protection of marine environments, promoting economic and technical progress, high quality education, health care, and resilient infrastructure.

“NIB is committed to continuously improve and embed sustainability further into all the Bank’s operations. This new framework brings treasury operations onboard the journey and strengthens our dialogue with investors and treasury counterparties on material ESG issues” says Luca De Lorenzo, Head of Sustainability and Mandate at NIB.

NIB is preparing to report according to the PRI commitment in the first quarter of 2022.

The PRI is an investor initiative that works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions (www.unpri.org).

You can read the NIB Responsible Investment Framework here.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Björn Ordell, CFO, Head of Treasury & Finance, at +358 10 618 0210, bjorn.ordell@nib.int

Jukka Ahonen, Head of Communications, at +358 10 618 0295, jukka.ahonen@nib.int