Policy for Corporate Social Responsibility and Sustainability

1. Objective

KommuneKredit’s mission is to create financial latitude for Danish local authorities by providing funding and financial advice at the lowest possible cost. With a separate policy, KommuneKredit wishes to clarify the general principles for our social responsibility and sustainability activities.

 

To KommuneKredit, social responsibility means the company integrates environmental, social, ethical and governance (ESG) considerations in all aspects of its business – in lending, funding, investment, operations and governance.

 

KommuneKredit aims to contribute to sustainable developments and play a key role in the green transition of Danish society.  KommuneKredit’s main contribution is created through green and sustainable lending and bond issuance, which form the core of the company’s social responsibility efforts.

 

2. Target group and scope

The policy serves as a guideline for all KommuneKredit’s managers, employees and activities.

 

3. Liabilities

The policy builds on KommuneKredit’s support for:

 

  • recognised principles for responsible corporate governance;
  • the UN 2030 agenda for Sustainable Development and the 17 Sustainable Development Goals;
  • the UN climate goals for reducing greenhouse gases (the Paris Agreement) and Denmark’s climate goals; and
  • the EU Action Plan on Sustainable Finance.

 

4. Principles for corporate social responsibility and sustainability

The policy comprises a number of principles providing a guideline for KommuneKredit’s social responsibility and sustainability activities.

 

Green and sustainable financing: KommuneKredit will support the sustainable transition ambitions of Danish local authorities by offering green and sustainable financing options and advice pursuant to applicable standards.

 

Environmental and climate considerations: KommuneKredit will work to mitigate its own environmental and climate impact of businesses in connection with the operations and procurement activities of the company.

 

Diversity and job satisfaction: KommuneKredit will support inclusiveness, diversity, professional development and job satisfaction and takes a zero- tolerance approach to any form of discrimination and harassment.

 

Good business ethics: KommuneKredit will at all times demonstrate good corporate governance through responsible and effective management and takes a zero- tolerance approach to any form of bribery and corruption.

 

Openness and communication: KommuneKredit will create transparency through open and clear communications about both the positive and the negative environmental and social impacts caused by the company’s activities.

 

The policy will translate into focus areas and specific targets to be decided by the Management Board.

 

5. External reporting

KommuneKredit publishes an annual responsibility report, which is approved by the Board of Directors. The report describes KommuneKredit’s activities and results within its focus areas and specific targets for corporate responsibility and sustainability and provides details on key ESG indicators.

 

6. Commencement, publication and revision

The policy will take effect once it has been approved by the Board of Directors and must be publicly available on www.kommunekredit.dk. The policy will be revised when required, and any amendments must be approved by the Board of Directors.