The sustainability agenda primarily focuses on the long-term impact generated through the MuniFin’s business, i.e., the products and services offered to MuniFin’s customers, the Finnish public sector and affordable social housing sector. It defines a clearer direction and objectives for the company’s sustainability efforts, extending up to 2035. The agenda helps in meeting future regulations and enhances communication and reporting with customers, investors, and other key stakeholders.
“The sustainability agenda is our way of measuring and communicating what we aim to achieve through our work. Our goals are now more aligned with what we are already doing and what we aspire to achieve in the future,” says Esa Kallio, CEO of MuniFin.
“We wanted to update our perspective on what is crucial for sustainability in the context of our business and core mandate. We also wanted to set goals and metrics that more clearly describe our essential role in the Finnish welfare society,” adds Mikko Noronen, the Sustainability Analyst involved in developing the sustainability agenda.
Key themes include supporting the welfare society and accelerating Finland’s green transition
The sustainability agenda consists of three parts. The first part addresses MuniFin’s business environment from the perspective of sustainable development and how our operations relate to national and international goals. The agenda’s second and most important part includes the actual themes, goals, and metrics for MuniFin’s sustainability efforts. The third part discusses the future of the company’s sustainability work.
The long-term metrics set include two related to sustainable finance and the company’s first emissions reduction target for financed buildings.
“MuniFin’s customers play a significant role in achieving Finland’s climate goals. Our most substantial positive impact comes through our business, i.e., the financing we provide. Therefore, we aim for at least one-third of long-term customer financing to be green and social finance by 2030. At the end of June, the share was 18%”, says Noronen.
During the development of the sustainability agenda, the maximum amount of margin discount offered for green financing was increased as an incentive for even more sustainable projects.
“However, the most notable change in our sustainability efforts compared to our previous initiatives is the establishment of emissions reduction targets for the buildings we finance. Our goal is to achieve a reduction to 8 kgCO2 per m2 by 2035, which represents a 38% decrease from the 2022 levels. To reach this target, we will maintain continuous monitoring, engage in ongoing dialogue, and facilitate knowledge exchange with our customers”, explains Noronen.
MuniFin has been developing emissions calculations for a while and, for example, joined the PCAF initiative in 2022. The network’s goal is to develop and implement a unified way of calculating and reporting financed emissions to promote the objectives of the Paris Climate Agreement. By joining, MuniFin committed to measuring and disclosing its emissions within three years.
In addition to MuniFin employees, customers, investors, and other key stakeholders participated in the development of the sustainability adenda.
“We conducted a materiality analysis, which helped clarify our goals and our role even further,” says Noronen.
In the agenda’s third part, which discusses the future of the company’s sustainability work, there is a commitment to review the goals within two years.
“Goal achievement will be monitored annually as part of our annual reporting, and goals may be expanded or tightened as necessary. The document will also be updated as business environment changes, such as changes in national or international legislation and best practices in the markets,” Noronen explains.
“Although the sustainability agenda largely focuses on our external means of impact, our employees remain the most crucial implementers of sustainability. Therefore, it is increasingly important for us to invest in developing a culture of sustainability and expertise,” says Kallio.
Explore MuniFin’s sustainability agenda:
MuniFin is a pioneer in sustainable finance in Finland
In 2016, the company became the first financial institution in Finland to offer green finance for climate and environmentally friendly projects and was the first Finnish issuer of green bonds.
In 2020, MuniFin was the first financial institution in Finland to issue social bonds, which is offered to projects that promote equality, communality, safety, welfare, or regional vitality.
For more information:
Head of Funding and Sustainability
+358 50 3700 285