Nefco, the Nordic Green Bank, has updated its Environmental and Sustainability Policy and Guidelines. To clarify what can be considered green and sustainable, the policy sets out the commitments, principles, and obligations applicable to Nefco’s financing activities and internal operations. The policy also includes a list of exclusions, i.e. types of projects that Nefco cannot finance due to them not being regarded as sustainable. The guidelines describe how Nefco assesses the environmental and sustainability aspects of the projects it finances.
The new policy reflects Nordic priorities and Nefco’s strategy to accelerate the green transition and to increase support for concrete actions towards achieving carbon neutrality and a sustainable circular and biodiversity-positive economy.
One objective is to increase the portfolio’s share of the EU Taxonomy alignment and set clear boundaries on which activities Nefco is not willing to commit to. The exclusion list included in the policy is the first of its kind for Nefco. The list comprises exclusions related to fossil fuel, forestry, and husbandry, as well as ethical, legal, and convention matters.
Katariina Vartiainen, Senior Manager of Environment and Sustainability at Nefco: “The previous Sustainability Policy was from 2013, and even though Nefco has provided green financing and analyzed the environmental and sustainability aspects of its financing activities for more than 30 years, it was time to update the policy to reflect and document today’s priorities.”
Guidelines for applicants and project owners
The Environmental and Sustainability Guidelines give a more detailed view of how Nefco assess project proposals and verify the results both during and after the implementation of the projects.
The sustainability assessment covers not only the activity financed but also how sustainability is embedded throughout the client’s organization. NEFCO aim, through dialogue, to elevate and increase understanding of sustainability aspects in the client’s organization and to support effective implementation and management of its green projects.
“Our common vision is that all financing should be green. We are a truly transformational green bank that shall expect more than the return on investment: we shall expect a return on impact,” Vartiainen concludes.
Nefco’s task is to accelerate the green transition and work towards carbon neutrality and a sustainable, circular, and biodiversity-positive economy. Nefco’s financing activities contribute to the global Agenda 2030 via the universal Sustainable Development Goals, the EU Green Deal, and the Nordic Vision 2030.