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11 Dec 2019 – Articles

New Green Deal from EU: The financial sector plays a key role in the green transition


EU today announces a new action plan for making EU carbon-neutral in 2050. We support the new Green Deal, and are committed to drive the green transition of society through our core business.

Today, the EU is launching its Green Deal, an action plan that sets the course for the green transition of society. As part of the action plan, the EU will propose the first European Climate Law enshrining the objective of a carbon-neutral EU in 2050 into law. 

The action plan also includes a strategy for green financing, which is expected to be launched in June 2020.


The action plan is an important step in the green transition of society. As a bank, we recognize that we have a great responsibility due to our core business. The transition to a sustainable economy requires vast amounts of capital, and it is our job to contribute to new solutions within e.g. investments and lending.  

Berit Behring 

Head of Wealth Management and responsible for Societal Impact and Sustainability, Danske Bank



Green bonds 
A concrete example of a financial solution is green bonds, where the proceeds from the bond are earmarked for sustainability purposes.
Danske Bank is among the banks globally arranging most green bonds for customers, having arranged green bonds worth USD 15.4 bn in 2019 so far.


In March 2019 we launched our own green bond framework, which enables us to issue green bonds, and on that background Realkredit Danmark issued the first green mortgage bond in the Danish market. 

ESG in all investment and lending processes
Another important element is our ongoing work of analysing ESG (Environment, Social and Governance factors) in all investment and lending processes. Here, we focus on i.e. the companies’ climate impact, and enter a dialogue with them in order to make them address climate issues and reduce their CO2 emissions. Furthermore, we don’t invest in or lend to companies, where the majority of their revenue comes from coal or oil sands. It is our ambition that all our portfolio managers are able to explain, how they integrate ESG into their process before the end of 2020. 

We also offer two funds that invest in the green transition and clean water.

 

“In general, we wish to increase the amount of green financing and green products, so we can contribute to the acceleration of the green transition. The next natural step for us will be to set up quantifiable targets for this work, which is also on par with our signing of the UN Principles for Responsible Banking,” says Berit Behring.

Denmark in the lead with concrete recommendations for the financial sector
Danske Bank has been deeply involved in Finans Danmark’s preparation of 20 recommendations for the financial sector, which were launched last week, and will help the sector take part in the acceleration of the sustainable transition. 

Sustainability is part of Danske Bank’s core business

  • In 2018, Danske Bank defined climate as a cornerstone of its 2025 sustainability strategy. Here, we defined a range of strategic ambitions in regards to offering green loans and investments, the issuance of our own green bonds, and helping our clients issue green bonds.
  • So far, we have in 2019 arranged green bonds for our clients worth USD 15.4 bn. We have also increased the number of green loans and sustainability-linked loans to corporate clients. It is our ambition to grow the number of green loans and bonds in the years to come.
  • Danica has an ambitious target of increasing the customers’ investments in the green transition to DKK 100bn by 2030.
  • All our portfolio managers should be able to explain how they integrate ESG into their processes by 2020.