Sustainability Report 2018
Given Kommuninvest’s business concept, vision and position, naturally we volunteer to take responsibility for our impact on society from an economic, environmental and social perspective. Our Sustainability Policy states that this is to be respected throughout the operations, in terms of both direct and indirect impact.
Kommuninvest supports its members’ high sustainability ambitions through efficient and appropriate financing, as well as in its consultancy work. The principal tasks in our sustainability work include responding to the needs and expectations of our members and customers. Other important areas include our own environmental responsibility, being a responsible employer and conducting operations pervaded by professionalism, stringent ethical requirements and good business practices.
Direct and indirect influence
Within the framework of a situation assessment conducted in 2018, Kommuninvest’s direct and indirect sustainability impacts have been mapped. Kommuninvest owns the direct influence, meaning this lies within the Company’s direct decision-making mandate and efforts can provide concrete qualitative and quantitative effects. Direct influence includes, for example, customer and employee relations, business travel, office premises, local collaboration, etc.
Kommuninvest’s indirect impact is defined as its sustainability impact through its lending to local government groups/ its balance sheet and business relations with borrowers, investors and counterparties. The impact is mainly related to the local government authorities’ choice of investments and how these contribute to a sustainable society.
The survey shows that the sustainability work conducted by the Company is beneficial in several regards. The development needs that have been identified relate primarily to the indirect impact. It is also important for the Group to continue reducing its direct environmental impact.
Kommuninvest has relationships with a range of stakeholders who, in different ways affect – and are affected by – our operations. It is very important that we listen to our stakeholders to identify the issues that Kommuninvest’s activities affect and that stakeholders consider essential.
Kommuninvest’s stakeholder dialogue involves, for example, systematic meetings with customers and owners, discussions with personnel representatives and representatives from central government ministries and authorities. In addition, Kommuninvest conducts regular surveys among owners, customers, employees and investors. Kommuninvest’s members own and control our operations but are also our customers when they choose to borrow from us. In the 2018 customer survey, Kommuninvest received a SCI of 88, an improvement by two points since the 2016 survey and a very high result.
The dialogue with our members, in their capacity as owners, is mainly conducted with elected politicians. In dialogue with our members, in their role as customers, we mainly interact with specialists in economy and finance.
The ongoing dialogue with other societal actors – central government ministries, regulatory bodies and supervisory authorities – takes place largely through meetings in person and exchanges of information. The dialogue with investors and the capital market takes place through meetings in person and presentations, both nationally and internationally. The dialogue with employees is conducted in both formal and informal formats, between managers and employees and at regular information meetings.
Through the stakeholder dialogue, Kommuninvest forms an idea of which sustainability issues the Company should work with. In the stakeholder survey on sustainability that was conducted in 2016, external and internal stakeholders were asked to prioritise which initiatives Kommuninvest should prioritise. Environmental aspects of lending and funding were the issues considered most important by stakeholders. The intention is to implement the stakeholder survey again in 2019.
Governance of sustainability work
The Sustainability Manager is responsible for managing, developing and reviewing Kommuninvest’s sustainability work in close cooperation with the Executive Management Team and the department heads, who are responsible for taking sustainability aspects into account within their respective areas of responsibility. Guidelines for sustainability work are detailed in a Sustainability Policy adopted by the Company’s Board of Directors, and are further specified in supplementary policies and instructions relating to occupational and personal safety, IT security, equality and diversity, competence supply, bribery and hospitality, and regulatory compliance.
Green Loans and Green Bonds
|Granted volumes Green Loans||Green Loans disbursed||Green Bonds outstanding|
Green Loans by project category
|Renewable energy 27 (37) %||27%|
|Energy efficiency enhancement 1 (1) %||1%|
|Green buildings 51 (48) %||51%|
|Sustainable transport 5 (2) %||5%|
|Water treatment 15 (12) %||15%|
|Waste management 1 (0) %||1%|
Funding supporting the Paris Agreement and the Sustainable Development Goals
Green Loans permit financing of environmental and climate-related investment projects in Kommuninvest’s member municipalities and regions. At the end of 2018, SEK 39.5 billion in Green loans had been granted for 232 projects and 109 members. These projects and their funding can be linked to nine of the UN’s global Sustainable Development Goals, and all of the overall goals of the Paris Agreement.
Partnership increases knowledge and drives development
Attaining ambitious sustainability goals demands collaboration and partnership. Coordinated efforts facilitate the transition, improving its accuracy. Based on this, Kommuninvest entered into strategic collaborations with SABO and SNS during the year.
During the autumn of 2018, a climate initiative was launched in the public housing sector, whereby SABO member companies seek to make public housing fossil-free by 2030. A focus area within the initiative involves the lifecycle perspective and climate requirements in the construction of multi-dwelling buildings. The intention is for the requirements to be used for procurement and as criteria for being able to obtain Green loans from Kommuninvest.
To enhance knowledge of how the build-out of Swedish welfare works and how it could function better, Kommuninvest supports SNS’s research project Community Building. The project serves to bring enhanced knowledge and to propose measures in various areas of policy, based on scientific studies and proven experience.
Yet another example is the “Nordic Public Sector Issuers’ Position Paper on Green Bonds Impact Reporting” that Kommuninvest has headed since 2016.