Leading Finnish financial services group OP Financial has pledged sustainability goals across climate, people and governance, to cut portfolio emissions and increase its sustainable finance.
OP Financial has launched an ESG programme to form a core of its operations, fed by customer and employee feedback.
ESG, especially emission reduction requirements, will be applied to its loan portfolio.
Rigorous adherence to sustainability goals and standards from leading financial services groups has a ripple effect.
Finland’s largest financial services group, OP Financial, has announced its sustainability programme, driven by the need of the financial sector to respond to the new requirements around sustainability.
Timo Ritakallio, President and Group Chief Executive Officer of OP Financial Group said that he wants to make his firm a “sustainability forerunner in the financial sector.”
Putting sustainability at the heart of OP Financial Group’s approach means that from now it will offer sustainable financing and investment products to its customers and decrease emissions across its loan and investment portfolios.
OP Financial plans to halve GHG intensity of investment-related emissions
By 2030 its target is to halve the GHG intensity of investments, and it will not have any direct investment in businesses related to coal mining or coal power generation. It will cut 25% of its corporate loan portfolio emissions by 2030 compared to 2022.
Net zero targets are 2025 for the company itself and 2050 for its corporate loan portfolios, and in funds managed by OP Asset Management and OP Fund Management Company. It is placing at least €8 billion for sustainable financing products by 2025.
It will aim to align its decisions in support of the circular economy and promote biodiversity and the wellbeing of nature.
Going beyond net zero
OP Financial has as many well-intentioned goals in the spheres of people and communities, as well as for its corporate governance. At least 40% of executive positions should be filled by women by 2025 it says. In terms of supply chains, it is requiring a Supplier Code of Conduct from all suppliers by 2025.
For the launch of its sustainable programme on 31st August, Ritakallio, said “Through our actions, we want to build a sustainable tomorrow and enable sustainable choices for our customers.”
OP Financial Group is the largest financial services group in Finland, offering banking, non-life insurance and wealth management services for over four million customers. The Group began its operations in its present form as the amalgamation of the Member Cooperative Banks
OP Financial has €72.7 billion in assets under management in corporate banking with a loan portfolio of €27 billion. In retail banking it has a loan portfolio of €71.1 billion. 47% of its business is in insurance. It has 2.1 million owner customers.