Business-minded

Sound lending and good customer relations should permeate our business - this helps us achieve sustainable development by minimizing risks and creating positive outcomes for our stakeholders. We know that access to capital is important, both for private individuals and companies. Credit is a crucial financial instrument in society and sustainable lending is fundamental in our business model. We therefore give great importance to clear and transparent processes, ensuring that our lending takes place on the right basis, in order for us to contribute in a positive way to development of society. 

As a bank, we have a responsibility to contribute to a more sustainable economy for our customers and the society in which we operate. We want to help companies and people grow through access to financing solutions, business support and smart savings. At the same time, we want to contribute to limiting global warming to below 1.5 degrees in accordance with the Paris Agreement, by playing our part where we can in reducing climate and environmental impact. 

We understand that our biggest impact on the outside world lies in our credit portfolio, and by integrating sustainability into the credit process, we as a bank can contribute to the reduction of climate emissions. Corporate lending is part of our core business and for us it is essential that our lending operations are based on a customers' ability to repay back their loan. By integrating ESG aspects (Environmental, Social, Governance-aspects) into the credit process, we take into account the company's relevant sustainability risks. By setting sustainability requirements, we can contribute to increased respect for human rights, better working conditions and greater climate consideration. In this way, we enable sustainable development while being a professional partner to our customers.

Sustainable lending

At Norion Bank, we have a clear picture of what we want to finance and what we choose not to finance. As a step in this, the bank has established an exclusion list, the "Red List", which describes companies and economic activities that the bank does not finance. If a credit case is deemed to be close to one or more criteria in the Red List, either product-based or standard-based, the case must be addressed with the Ethics Committee. The Ethics Committee functions as a decision-making forum established by the CEO to handle sustainability issues of complex matter.

Sustainability is an integral part of our lending process. At the end of 2024, 84 percent of the company portfolio was systematically reviewed with regard to sustainability and sustainability-related risks, which means more than doubling the outcome compared to in 2023. . This review is based, among other things, on TCFD's recommendations which are also taken into account in the credit granting process. Fortunately, it turns out that several of the bank's customers are working to identify and implement credible transition plans in line with the Paris Agreement. The work with reviewing the credit portfolio in a systematic way with regards to sustainability is ongoing since 2022. It will continue in 2025 to increase the proportion of the corporate portfolio that has been reviewed, and to provide us insights in how to support our customers in their sustainability work.

Impact of the corporate and real estate portfolio

The Bank's largest climate impact comes from the financed emissions of our corporate and real estate clients. In the 2024 Sustainability Report, we present for the first time a comprehensive overview of all the Bank's financed emissions according to the PCAF methodology. Obtaining reliable figures requires extensive data collection. In the real estate segment, we have been able to use property-specific data, resulting in a relatively lower impact than in the corporate segment, where calculations are mainly based on emission factors.

The Bank's largest climate impact is via financed emissions through our corporate and real estate customers. In the 2024 Sustainability Report, we present for the first time a comprehensive overview of the bank's financed emissions in accordance with the PCAF methodology (fotnot PCAF: Partnership for Carbon Accounting Financials). Obtaining reliable figures requires extensive data collection. Within the real estate segment, we have used property-specific data, which has resulted in a relatively more accurate and lower impact than for the corporate segment, where the calculations done based on estimates from the companies' Nace code and geographical domicile. The results for the other corporate categories are therefore more of approximations.