A reputable bank Corporate social responsibility 2020 - Amazon AWS
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Corporate social responsibility 2020
A reputable bank
This report is a CSR report for Spar Nord Bank A/S, company reg. (CVR) no. 13737584 for the period 1 January 2020 to 31 December 2020. The report is part of the management commentary section in Spar Nord Bank A/S’s annual report for 2020. With this report Spar Nord meets the requirements of sections 135a and 135b of the Danish FSA’s Executive Order on financial reports presented by credit insti- tutions and investment companies. The report represents Spar Nord’s first reporting to the UN on our progress in implementing the principles of the UN Global Compact, the UN Principles of Responsible Investment and the UN Prin- ciples of Responsible Banking. The contents and data of the report are generated from own data and supplier data and have been checked internally on a random basis. Deloitte provided assistance in performing these ran- dom checks of statements and data. Spar Nord Bank A/S welcomes feedback from the surrounding society, including suggestions, comments and questions. Please direct any feedback to Martin Bach, Senior Vice Pres- ident, Communication & Business Develop- ment, at mbc@sparnord.dk or tel. (+45) 25 27 01 40.
Corporate social responsibility 2020
Contents
2 A challenging year
3 Customers first
4 Our responsibilities
6 Strategic framework for CSR initiatives
7 Sustainable finance
10 Responsible investment
12 Local commitment
14 A greener bank
16 Responsible business relations
17 Countermeasures against money laundering and
financial crime
19 Data and cybercrime
20 A decent workplace
22 Data: Employees
24 Data: Climate and environment
26 Overview: Goals and actions at Spar Nord
Spar Nord Corporate social responsibility 2020 1
Corporate social responsibility 2020
A challenging year
It would be tempting to conclude that As a result, our own challenges did not
the best thing about 2020 is that it is now displace our focus on the challenges the
behind us. The global pandemic affected world is facing, and our work towards a
everyone's lives and tested the cohesion sustainable and responsible development
of our societies in every way imaginable. remained on track during the year. This
However, although 2020 was a challeng- also applied to our efforts to comply with
ing year, our employees and our business upcoming statutory sector requirements in
model demonstrated how strong we are the area.
when it really matters.
The lockdowns made for a challenging
The lockdown enacted in Denmark in year, but they also accelerated some of
March put the economy and markets in a the measures already underway. Carbon
state of emergency. Supply and demand emissions dropped because of less trans-
were hit simultaneously, and Danish banks port and more distance working, and new
assumed responsibility by making liquidity digital work methods proved efficient from
available to customers affected by the day one. Hence, the hurdles of the pan-
consequences of the pandemic. At Spar demic also contributed positively to the cli-
Nord, we benefitted from being a solid and mate, work efficiency and job satisfaction.
personal bank with in-depth knowledge of
our customers’ finances, which enabled us At the beginning of 2020, Spar Nord
to accommodate 99% of our retail cus- became a signatory to the UN Global
tomers’ and 95% of our business customers’ Compact (corporate responsibility), the
requests for extraordinary credits during UN Principles for Responsible Banking (UN
the pandemic. This contributed not only PRB) and the UN Principles for Responsible
to supporting our goal of helping create Investment (UN PRI). Consequently, this
opportunities and prosperity wherever we report describes our continued efforts to
are present, but also underpinned our goal implement these principles within our busi-
of being a reputable and responsible bank. ness, organisation and culture, while also
providing a status report on developments
While our business model stood its test, in our special focus areas.
our employees passed with flying colours.
Every day, they were challenged by lock- I hope you will find it an interesting read!
downs, distance working, online meetings,
childcare, quarantines and changing work
shifts. Nevertheless, mutual solidarity and Lasse Nyby Kjeld Johannesen
tolerance meant we were able to maintain Chief Executive Chairman
job satisfaction as well as productivity Officer
under these difficult conditions.
2 Spar Nord Corporate social responsibility 2020
Business model
AL OWNERSHIP
Customers first LOC
MAR
ND MAR KET C
SA KET AN
AN E ING VA
T PL OFIL , S SS
PO IN
R
EN P NS G,
M ESS OR
N
BU LOP
NE HI
SI
S
TWPS,
WE SHARE
VE
OR ETC
DE
KS .
,
Vision, values and strategy
S
Spar Nord is a nationwide bank with economic developments in the many local
ER AC TIVITIE
AND SHIP MANAGEMENT,
Policies and business procedures
335,000 retail customers and 49,000 communities in which we operate, we
Concepts and prices
business customers. Spar Nord offers all also share a responsibility for promoting
FINANCE
CUSTOM
types of financial services, consultancy and prudence and accountability in society in Our brand and overall marketing
products, focusing on retail customers and general.
N
RV TI O
Digital solutions and work processes
SMEs in the local areas in which the Bank is
SE EL A
IC E
ER R R
represented. Born as a local bank, we have nearly 200
M ME
TO TO
years’ experience showing we do our best
USCUS
W
Spar Nord currently has a nationwide by being as close to our customers as EL
L- E M
BE P
C
IN LOY
distribution network comprising 49 local possible. The core of our business model is G,
EM EE M A
PLO T TERS ALA
RY, ANC
E
YEE : RECRUITMENT, SERFORM
banks, which will be expanded to 51 local local commitment combined with strong DEVELO
PM E N T A N D P
banks in 2021. central support. Spar Nord consists of local
entities with extensive decision-making
As one of the country’s systemically im- powers in areas such as customer service,
portant banks, it is not only our duty to market canvassing and employee condi-
contribute to positive and sustainable tions.
Our decentralised and customer-focused
business model allows the local Spar Nord
branch to focus on customer proximity,
while our headquarters deal with high-
ly specialised tasks in areas such as the
development of responsible products,
centralised management and monitoring
of the credit area, investing, and in our ef- Risks
forts to combat money laundering, terrorist In line with all other banks, Spar Nord's business model is associated with a number of
financing and cybercrime. inherent risks.
As a consequence, we are especially focused on maintaining and developing an agile
organisation that adheres to sound practices and strengthens its resilience to the growing
threats against our business, our customers and society at large. We aim to hedge risks
335,000 retail customers through policies and actions that protect us from moving into zones that are grey from an
49,000 business customers ethical and legal perspective.
51 local banks Our credit policy states that we seek to avoid loan exposures that could potentially harm
1,545 employees the Bank’s reputation, and we have procedures in place to ensure that sub-contractors
Revenue DKK 3,326 million and chains of sub-contractors are screened as far back as possible to ensure that our
Profit DKK 737 million deliverables live up to Spar Nord’s code of ethics and legal standards.
Tax DKK 181 million
Spar Nord Corporate social responsibility 2020 3
CSR and organisation
Our responsibilities
UN Sustainable Development Goals, by order of priority
Affordable and Clean Energy Spar Nord has defined a strategic goal of
Using affordable and clean energy and goal of carbon neutrality being a reputable and responsible bank.
in 2021. Read more on page 14. This applies not only in relation to custom-
ers, employees and suppliers, but also from
a social and global perspective. Accord-
Decent Work and Economic Growth
ingly, we have committed to implement-
Actively engaging employees in a well-documented effort to ing responsible and sustainable business
continuously improve our employees’ health, safety and working practices across all business areas and
conditions throughout their working lives. to promoting a responsible, inclusive and
Read more on page 20. sustainable corporate culture.
In 2020, Spar Nord became a signatory to
Sustainable Cities and Communities
the UN Global Compact, the UN Principles
Promoting healthy communities and activities across the locations at
for Responsible Investment (UN PRI) and
which we do business, through donations and sponsorships of local the UN Principles for Responsible Banking
culture and sports. (UN PRB). This means the UN goals and
Read more on page 12. principles are now the overall benchmark
for our initiatives, while our daily work is
Responsible Consumption and Production governed by our business strategy and
prioritised through materiality analyses
Buying sustainably and reducing our waste while continuously implementing
and assessments of the areas where we
resource-saving initiatives across the organisation and encouraging a sustainable
can make the greatest difference. For 2020
corporate culture. onwards, we have selected six dedicated
Read more on page 14. areas of priority.
Climate Action While the UN principles are the backbone
Bringing down direct and indirect climate impacts by reducing our own footprint, implementing of our CSR efforts, national, European and
sector-specific requirements and initiatives
sustainable investing criteria and developing sustainable loan products.
are also emerging. Consequently, CSR
Read more on page 7.
activities are naturally anchored in our
management team.
Peace, justice and strong institutions
Countering money laundering, terrorist financing, economic crime and cybercrime by establish-
ing effective systems, a healthy employee culture and open collaboration with public authorities.
Countering violence, war and human rights abuse through responsible investment, responsible
financing and responsible supply chain management. Read more on page 17.
4 Spar Nord Corporate social responsibility 2020CSR and organisation
Our responsibilities The UN Principles for Responsible Banking
(UN PRB)
In 2021, we will make analyses and define priorities relative to the implemen-
tation of the UN principles in the Bank’s business procedures.
The first CSR report containing a full report in relation to the UN Principles for
Responsible Banking will therefore be the report for 2021.
CSR organisation
1 Alignment
The day-to-day management of Executive Board
We will align our business strategy to be consistent with and con-
Spar Nord’s various CSR initiatives is
tribute to individuals’ needs and society’s goals, as expressed in the
handled by our CSR organisation,
which is anchored in the Bank’s Finance & Sustainable Development Goals (SDGs), the Paris Climate Agreement
Investor Relations Facility Management
senior management team. The and relevant national and regional frameworks.
members of our CSR organisa-
tion meet on a regular basis 2 Impact and target setting
and constantly monitor risks, We will continuously increase our positive impacts while reducing the
opportunities and progress in CSR Steering negative impacts on, and managing the risks to, people and environ-
Spar Nord’s initiatives. Committee
ment resulting from our activities, products and services. To this end,
Business
The management of the CSR
Credit
Development we will set and publish targets where we can have the most signifi-
organisation determines which cant impacts.
measures and initiatives are
required to achieve the Bank’s 3 Clients & customers
current sustainability goals. We will work responsibly with our clients and our customers to encour-
HR Trading Division
age sustainable practices and enable economic activities that create
shared prosperity for current and future generations.
Risks
We are particularly attentive to: 4 Stakeholders
We will proactively and responsibly consult, engage and partner with
• the risk of the Bank’s services being
relevant stakeholders to achieve society’s goals.
used for money laundering, corrup-
tion and terrorist financing purposes;
5 Governance & culture
• the risk of taking part in non-sustain- We will implement our commitment to these Principles through effec-
able activity through our investment
tive governance and a culture of responsible banking.
activities;
• the risk of taking part in non-sus- 6 Transparency & accountability
tainable activity through our lending We will periodically review our individual and collective implementa-
activities; and
tion of these Principles and be transparent about and accountable
• the risk of taking part in non-sustain- for our positive and negative impacts and our contribution to socie-
able activity through our choice of ty’s goals.
suppliers.
Spar Nord Corporate social responsibility 2020 55CSR and organisation
Strategic framework for CSR initiatives
Responsibility A reputable bank
Strategy Business Society in general Employees Partnerships
UN Global Compact
Local commitment
Wellbeing
UN PRI
A greener bank
Diversity
UN PRB
Government climate partnerships
Employee satisfaction Responsible supplier relationships
CSR organisation
AML initiatives
Initiative Senior policy Collaboration with BankInvest
Sustainable finance
Measures to combat cybercrime
Employee development Collaboration with Totalkredit
Responsible investment
Climate neutrality
Physical and mental health
Data and cybercrime
UN sustainable development
Policy on sound business culture
goals
ESG
CSR policies
Foundation
Values
6 Spar Nord Corporate social responsibility 2020Corporate social responsibility 2020
Sustainable finance
At year-end 2020, Spar Nord’s total loans Spar Nord’s balanced credit policy was a Spar Nord’s credit policy includes climate
and advances to retail and business key reason for the Bank escaping relatively considerations and sustainability in the
customers stood at some DKK 138 billion unscathed from the financial crisis. Our assessment of business customers. As a Bank and leasing loans:
with bank and leasing loans accounting
for some DKK 44 billion and mortgage
lending policy has generally contributed
to strengthening our integrity and the per-
result of the policy, sustainable businesses
are considered to be better equipped to 2020 approx. DKK 44 billion
loans for some DKK 94 billion. By means of ception of Spar Nord as a socially respon- handle market demands for green transi- (DKK 44.136 billion).
its lending, the Bank helps finance a wide sible and sound bank. One of the corner- tioning and accountability.
range of activities that may affect people, stones of our lending policy is that we will
the environment and local communities, not use risk tolerance as a competitive Increased focus on sustainable finance Mortgage loans arranged
positively as well as negatively. Therefore,
Spar Nord is committed to developing and
parameter or do business with customers
who could potentially harm the Bank’s rep-
In very general terms, every krone we lend
has an environmental and climate impact.
2020 approx. DKK 94 billion
offering financial products that inspire our utation. Therefore, we continually monitor As part of our implementation of the UN (DKK 93.892 billion).
customers to make sustainable choices credit lines to ensure that the customer has Principles for Responsible Banking (UN PRB),
and also mitigate the negative effects of the willingness and ability to pay, and we we will therefore document the impact as
human activity on the environment, climate regularly pre-calculate loss risks. precisely as possible going forward. This Total volume of loans arranged
and social conditions. documentation will provide the foundation
for our future efforts to promote sustaina-
2020 approx. DKK 138 billion
bility through our lending activities. (DKK 138.028 billion).
Loans and advances 2020 2019
As a first step, we have chosen to focus our
DKKm % DKKm % sustainable finance efforts on specific loan
Public authorities 976 2.2 1,200 2.7
products, beginning with car and home
financing, and in future we will work with
Agriculture, hunting, forestry and fisheries 2,820 6.4 2,711 6.1
products targeting other areas.
Industry and raw materials extraction 2,337 5.3 2,556 5.7
Energy supply 1,712 3.9 1,573 3.5 By means of our sustainable finance
Building and construction 2,050 4.6 2,134 4.8 initiatives, we expect to make our custom-
Trade 3,044 6.9 3,788 8.5
ers conscious of their choices, reduce the
negative impact of our lending activity
Transport, hotels and restaurants 2,308 5.2 2,419 5.4
and generally improve our reputation.
Information and communication 184 0.4 225 0.5 We launched our first sustainable finance
Financing and insurance 2,906 6.6 2,950 6.6 product, BæredygtigBil (SustainableCar), in
Real estate 5,610 12.7 5,852 13.1 early 2020. At the same time, we started a In future CSR reports, Spar Nord will report
collaboration with Totalkredit and Forenet on our sustainable finance performance,
Other business areas 3,527 8.0 3,340 7.5
Kredit to make homeowners more aware of including the number and volume of sus-
Business customers, total 27,475 62.3 28,749 64.4
green construction and renovation. tainable loans.
Total retail customers 16,661 37.7 15,860 35.6
Total loans and advances 44,136 100.0 44,609 100.0
Spar Nord Corporate social responsibility 2020 7Corporate social responsibility 2020
Sustainable finance
Sustainable car loans
In Denmark, cars drive an average of
Risks 16,000 km a year, severely affecting the
Total loans and advances of DKK 138 billion entail a risk that the business activi- climate and the environment. Against this
ties we help finance have harmful effects on the climate, the environment and on background, Spar Nord has launched a car
human rights and conditions. This includes indirect effects, such as pollution and loan that contributes to reducing the glob-
other environmental effects of driving, and more direct effects resulting from, for al climate impact through purchases of
example, providing funding to companies that do not respect labour rights. carbon credits and investments in carbon
reduction projects approved by the UN. Green housing
The loan can be taken out for the purchase
of a new or used car, irrespective of fuel renovation
type, and an existing loan can be restruc-
Some 40% of Denmark’s energy consump-
tured into the sustainable variant.
tion derives from buildings, and a substan-
tial part of Spar Nord’s loan volume is for
When a customer finances a new or used
financing the construction or renovation
car (petrol, diesel or hybrid), the average
of buildings. Therefore, we participate in
annual carbon emissions of that type of
Totalkredit’s initiative to promote green
car may be compensated at a rate of 150%
construction and energy-friendly renova-
through the purchase of carbon credits.
tion projects. This is not only to the benefit
In this way, Spar Nord helps reduce the
of the climate and the environment, but in
total climate impact from carbon dioxide
the vast majority of cases also the most
emissions.
cost-effective solution for the owner.
At end 2020, the value of sustainable car
In 2020, around 2,600 persons used the
loans totalled DKK 105 million.
tool for calculating energy savings at
totalkredit.dk.
Results Results
At end 2020, the value of sustainable In 2020, more than 2,600 persons used
car loans totalled DKK 105 million. the tool for calculating energy savings
at totalkredit.dk.
8 Spar Nord Corporate social responsibility 2020Corporate social responsibility 2020
Sustainable finance
Oil furnaces phased out Collaboration on
Oil furnaces are being phased out as green loans
they are expensive and emit 70% more
CO2 than a heat pump. Consequently, Spar Nord is a shareholder of DLR, and
Spar Nord facilitates Forenet Kredit’s offer from the beginning of 2021 Spar Nord and
of a DKK 10,000 subsidy for replacing oil other shareholder banks will be arranging
furnaces, which ran at the end of 2020. green loans for the agricultural sector, ur-
During 2020, 116 certificates with a value of ban commercial property and for renewa-
DKK 10,000 were granted for the replace- ble energy projects. The loans are offered
ment of oil furnaces. The replacement of oil on attractive terms and conditions in order
furnaces with heat pumps is expected to to speed up the green transition. As DLR
reduce the carbon footprint from housing plays an important role in the financing of
in Denmark. the Danish agricultural sector and Danish
rental properties, it has particularly good
opportunities to contribute to the govern-
ment’s goal of achieving a 70% reduction in
Denmark’s carbon emissions by 2030.
Benefits of replacing oil furnaces:
• CO2 savings averaging 70%
• Typical annual savings of several
thousand kroner
• Public subsidies and subsidy from
Totalkredit
• Often improves the value of the
home and energy-labelling
Spar Nord Corporate social responsibility 2020 9Corporate social responsibility 2020
Responsible investment
Spar Nord offers proprietary and facili- as we do. Consequently, we require that
tates third party investment products for asset managers and unit trusts meet our
retail and business customers. Investment own standards for responsible investment.
always involves a risk of direct or indirect In 2020, Spar Nord screened all portfo-
co-financing of activities which have an lios in which Spar Nord has a mandate
adverse impact on meeting the UN Sus- to invest on behalf of its customers. We
tainable Development Goals. We therefore carried out a screening of ESG issues and
share a responsibility for ensuring ac- compliance with international standards
countability in proprietary and facilitated and conventions, and the results showed
investments. We have defined responsible that we generally succeeded in selecting
investment requirements in our own invest- investments that perform well in terms of
ment policies and for investments made by ESG and compliance with conventions. Our
our business partners. screening procedures thus only resulted in
a few divestments and exclusion of stocks
Committee for responsible investment in our portfolios.
At the beginning of 2020, we became a
signatory to the UN Principles for Responsi- Sustainable investment product
ble Investment (UN PRI), which are now the In 2020, Spar Nord started to offer its cus-
backbone of our responsible investment tomers the sustainable investment product
efforts and our development of responsible BankInvest Global Equities Sustainable
investment offers to customers. In 2020, we Development. The investment fund is an
also set up a Committee for Responsible eco-labelled investment product with very
Investment anchored in the Bank’s senior ambitious targets for overall ESG perfor-
management. The committee is charged mance, carbon emissions and compliance
with implementing our policy on respon- with the UN SDGs. In 2020, Spar Nord’s cus-
sible investment and the UN Principles for tomers invested more than DKK 1.35 billion
Responsible Investment (UN PRI), including in BankInvest Global Equities Sustainable
monitoring the normative screening of pro- Development.
prietary and facilitated investments, moni-
toring the exercise of stewardship, defining Spar Nord also collaborates with Bank-
targets and maintaining exclusion lists. ernes EDB Central (BEC) and other banks
on developing and launching custom- Risks
Ongoing screening and stewardship er-oriented digital tools which, in com-
As a large proportion of the investment Spar Nord manages its own and its customers’ investments in companies all over the
pliance with upcoming EU legislation for
products Spar Nord offers its customers world. This exposes Spar Nord and its customers to the risk of investing in companies that
sustainable investment, help customers
is developed and managed by suppliers have an adverse environmental and climate impact or violate human rights. Moreover,
define their own sustainability profile with a
and business partners, it is paramount for Spar Nord and its customers risk suffering financial losses on investments, which may result
view to prioritising ESG issues when making
us that suppliers and partners meet the in impeded customer and business opportunities.
investment decisions.
same standards for responsible investment
10 Spar Nord Corporate social responsibility 2020Corporate social responsibility 2020
Results in 2020
• 100% ESG screening of Spar Nord’s The UN Principles for Responsible Investment (UN PRI)
managed portfolios
• 100% ESG screening of suppliers’ We will incorporate ESG issues (i.e. environmental/climate and social issues and
1
portfolios responsible management) into investment analysis and decision-making
• About 13% of our “Stjerneinvest” processes.
investment concept is placed in
the eco-labelled fund BankInvest We will be active investors and incorporate ESG issues into our
2
Global Equities Sustainable Devel- investment policy.
opment.
• Implemented stewardship policy We will seek appropriate disclosure on ESG issues by the entities
relative to Danish equities 3
in which we invest.
We will promote acceptance and implementation of the Principles
Goals for 2021 4
in the financial sector.
• Contributing to advancing sustaina-
ble investment products We will work together, where possible, to enhance our effectiveness
5
• Engaging in dialogue and par- in implementing the Principles.
ticipating in forums for the devel-
opment of methods and tools to
6 We will each report on our activities and progress towards implementing
promote sustainable investment the Principles.
• Advancing sustainability issues in
system support aimed at customers
• Advisory training for employees with
respect to sustainable investment
• Finalising implementation of stew-
ardship setup for the entire invest- Risks
ment landscape
Any uncritical investment approach would entail a risk not only of contributing to breach-
• Preparing exclusion list for Spar ing international conventions, but also a risk of directly or indirectly promoting activities
Nord’s portfolios that could be harmful to human relations, the climate, the environment and anti-cor-
• Preparing Spar Nord’s first UN PRI ruption initiatives. In addition, we risk jeopardising our reputation and thereby impair our
report market position.
Spar Nord Corporate social responsibility 2020 11Cohesion
Local commitment
Spar Nord builds on a locally-rooted very valuable to local communities. In 2020,
business model, and we are committed the Spar Nord Foundation donated DKK
to entering into healthy and sustaina- 40.7 million to support 681 different projects
ble relations with the local communities across Denmark, while Spar Nord signed for
in which we operate. The locally-rooted a total amount of DKK 20.6 million.
model allows us to build better customer
relations, and it facilitates the creation of Associations and the pandemic
local community cohesion through active Danish associations were dealt a hard
participation in and support for local blow when the pandemic struck. Many
associations, initiatives and institutions. of them were just about to open for the
We want to continue and strengthen these summer season, and in many associations
initiatives as they contribute both finan- the membership income was threatened.
cially and in terms of human value creation Many members were in doubt as whether
in society and in our bank. We believe that to sign up because nobody knew how long
our role in society is to stimulate healthy the restrictions would last. As a result, the
and sustainable associations at all of our Spar Nord Foundation decided to con-
bank locations. tact to local associations and institutions
encouraging them to seek donations, while
Associations – be they local, regional or the Bank, using its network, marketing and
national – are the centre of attention for advertisements in local media, encouraged
the Spar Nord Foundation, which each everyone to protect and support their
year makes donations of DKK 40-50 million local associations. These initiatives led to
for small and large initiatives across Den- donations and sponsorships despite the
mark. The Spar Nord Foundation owns 20% challenges of the pandemic.
of Spar Nord Bank, and the dividends from
this ownership interest are channelled back 2019 donations from the Spar Nord Foun-
into society. dation: DKK 58,788,519 for 705 initiatives
The Foundation and the Bank remain 2019 sponsorships from Spar Nord Bank: Risks
focused on working with many local, small DKK 23,367,000
The digitalisation of business and social relations represents a risk to the local cohesion
donations and sponsorships – partly to
and the personal relations and commitments required to create positive change and pro-
reach out to more individuals, and partly 2020 donations from the Spar Nord Foun-
gress in local communities. Failure to stimulate meetings in person and practical collab-
to make it easier for dedicated locals to dation: DKK 40,692,552 for 681 initiatives
oration in local communities entails a risk of reduced attractiveness of a local community
reach their goals. In 2019, we studied the
and jeopardise the well-being of the citizens – to the detriment of citizens’ opportunities
socio-economic impacts of the Spar Nord 2020 sponsorships from Spar Nord Bank:
and Spar Nord’s business. However, the autonomous and decentralised commitment of
Foundation’s donations and our sponsor- DKK 20,573,000
each individual bank in local communities also involves a risk of favouritism and nepotism
ships, and we clearly saw that local dona-
in relation to sponsorships and donations
tions and sponsorships are important and
12 Spar Nord Corporate social responsibility 2020Corporate social responsibility 2020 Spar Nord Corporate social responsibility 2020 13
Climate and environment
A greener bank
Carbon-neutral banking operations in 2021
Climate and environmental impacts are a that goes beyond work-related efforts. This installing an initial two charging points for
major challenge to our society, and Spar applies, for example, to transport, where electric vehicles, by pursuing a climate-fo- Results in 2020
Nord takes an interest in and co-responsi- we joined the “Let’s bike to work” cam- cused travel policy that encourages the
bility for tackling this challenge. According- paign of the Danish Cyclists Federation in use of public and/or environmentally • Drop in company car emissions of 41
ly, Spar Nord is a signatory to the UN’s Sus- 2020, which prompted a large number of friendly transport solutions, and by hold- tCO2e
tainable Development Goals (SDGs) (UN employees to leave their car and get on ing online meetings instead of travelling • Total drop in air travel emissions of
Global Compact), which forms the founda- their bikes. whenever possible. We also encourage 191 tCO2e
tion for our efforts to reduce our negative our employees to carpool and to reduce
• Two vehicle charging points installed
carbon footprint. As a part of Spar Nord’s In 2020, Spar Nord contributed to the work-related mileage in their own vehicles.
strategy plan, operations should eventually biodiversity of the local area around its • 93% of the Bank’s company cars
be carbon neutral. Our goal was originally headquarters by planting wild flowers to Reduced and greener energy consumption were A-labelled in 2020
to achieve carbon neutrality by 2025, but simulate biodiversity and the insect fauna. Starting in 2020, Spar Nord uses only certi- • Emissions from the treatment of
in 2020 we came a major step closer to our fied green power from Danish wind turbines, waste and spillage in 2020 were 3
goal by purchasing green power and opti- COVID-19 pandemic accelerated the complemented by energy from our own tCO2e.
mising energy consumption. Consequently, transition. solar cell panels. As part of our endeav- • Emissions from water consumption in
we are now working to be carbon neutral The global pandemic in 2020 accelerated ours to become carbon neutral in 2021, 2020 were 6 tCO2e.
by the end of 2021. a number of changes that were already Spar Nord is making a dedicated effort to
underway. This included the widespread energy-optimise the interiors and exteriors
Green culture use of internal online meetings, which not of company-owned buildings and rented
Spar Nord is continuously working to build only reduced transport needs, but during premises. These efforts include reducing en- Results in 2020
climate awareness among its employees the lockdown also showed the way forward ergy-losses from new and existing buildings
to a different and less capacity-intensive and implementing solar energy at suitable • 100% use of certified green power
organisation of our work. It also extended locations. The consumption of procured from Danish wind turbines. Expected
to customer meetings, most of which had energy is reduced through improvements to saving of just under 3,000 tCO2, cf.
to be held online, reducing our customers’ buildings’ thermal envelopes and through the market-based method (GHG)
transport needs. The number of online the use of intelligent optimisation systems • 520 sqm of solar cells installed on
meetings was thus 6-7 times higher than for managing heating, ventilation, cooling the roof of head office building in
in 2019. The experience gained is now and lighting systems. At the same time, we Aalborg
being reviewed with a view to reaping the are implementing sustainable technologies, • System for energy monitoring fully
benefits of online meetings and distance such as the solar power-driven ice bank extended throughout the Bank in
working more quickly than we originally for cooling Spar Nord Hadsund and the 2020
planned. conversion to LED light sources across the
• New and energy-friendly servers
organisation. In addition, we are working
Transport and travel to optimise our combined building stock by • Savings of 85,285 KWh, equal to
Spar Nord promotes sustainable transport letting excess floorage, through the flexible approx. 20 tCO2 from optimising
solutions by buying environmentally friendly use of office areas and via the relocation of ventilation system
company vehicles (93% of the Bank’s ve- activities to smaller and more energy-effi- • Total energy savings of 555.4 MWh
hicles in 2020 were energy-labelled A), by cient buildings.
14 Spar Nord Corporate social responsibility 2020Corporate social responsibility 2020
Reduced resource waste and All paper and all cleaning agents were
environmental impact eco-labelled in 2020, and measures are
Spar Nord works systematically to reduce regularly taken to avoid unnecessary use
resource consumption and to step up of paper and toner, for example by printing
recycling efforts – through encouragement on both sides and by avoiding large colour
and campaigns, through waste sorting for areas in documents sent for printing. The
recycling purposes and through initiatives use of bottled water is being phased out
such as giving away replaced furniture to and, where possible, replaced by tap water
various associations. For example, we now fountains.
collect food waste that is processed into
biofuel for use in local public transport. In 2020, we installed 520 sqm of solar cells
on the roof of our head office building.
Climate accounts of Spar Nord 2020
Unit 2020 2019
Key figures for greenhouse gas emissions
Total Scope 1 emissions tCO2e 123 164
Total Scope 2 emissions (location-based method) tCO2e 2,077 2,039
100% certified green power purchased in 2020 tCO2e 0 2,662
Total Scope 2 emissions (market-based method) tCO2e 1,451 3,762
Total Scope 3 emissions tCO2e 248 536
Total (location-based method) tCO2e 2,448 2,737
Total (market-based method) tCO2e 1,822 4,463
Results in 2020 Goals for 2021
• Emissions from the treatment • Climate-neutral banking operations
of waste and spillage in in 2021
2020 were 3 tCO2e • Continued energy optimisation
• Emissions from water con- • Advancing sustainable employee
sumption in 2020 were 6 tCO2e culture
• Continued responsible resource
consumption
Spar Nord Corporate social responsibility 2020 15The sustainable value chain
Responsible business relations
Spar Nord buys goods and services from Complying with the code of conduct
hundreds of Danish and international sup- In 2020, all major suppliers were asked to
pliers. Consequently, Spar Nord takes joint consider Spar Nord’s code of conduct for
responsibility for maintaining good and suppliers. The code defines requirements
transparent supplier relationships, which for suppliers in terms of adherence to laws,
underpin the Bank’s good reputation, help conventions and principles for the envi-
attract good suppliers and retain and ronment and the climate, for human rights,
attract customers. for labour rights and for anti-corruption.
Furthermore, a number of major suppliers’
Code of conduct for suppliers position on and compliance with a range
Spar Nord requires that its suppliers main- of specific issues were uncovered through
tain high environmental standards, respect questionnaires. In 2020, 86% respond-
human rights and pursue anti-corruption ed to the questionnaires, and the replies
measures. We also require major suppliers were generally satisfactory and did not
to support the UN Sustainable Develop- give rise to criticism or termination of the
ment Goals and the ten principles of the collaboration. The remaining suppliers will
UN Global Compact. To ensure this, Spar participate in 2021, when the survey will be
Nord launched a code of conduct in 2019 continued and extended.
for major suppliers, which, with systematic
follow-up from 2020, became a natural
part of the Bank’s central procurement
processes and supply chain management.
Risks
If Spar Nord engages with suppliers whose conduct is not sustainable, we risk promoting
inexpedient conduct that could be harmful to the environment, the climate or human
relations and rights. We would also risk irresponsible supplier conduct adverse affecting
Spar Nord’s reputation and business.
16 Spar Nord Corporate social responsibility 2020Responsible banking
Countermeasures against money laundering and financial crime
Countermeasures against money launder- The role of the employees
ing, terrorist financing and financial crime Consequently, it is the duty of Spar Nord
start with responsible banking. It is about to contribute actively to reducing the risk Principles of conduct
putting the customers’ interests first with of money laundering and terrorist financ-
respect to advisory services and product ing, and, to that end, we have defined a • We commit to combatting finan-
innovation, about complying with appli- money laundering policy and a number of cial crime in a loyal and responsi-
cable laws and regulations and about preventive measures which are regularly ble manner.
ensuring that compliance and general adapted to legislation and the current
• We recognise that the prevention
conformity with the law form an integral threat scenario. The policy, which, among
and combatting of money laun-
part of the Bank’s strategy and business. other things, serves to ensure that finan-
dering and terrorist financing is not
Responsible banking is paramount given cial transactions, customer relationships,
a competition parameter and that
that the existence of cross-border finan- employee matters and agreements are
collaboration and joint solutions
cial crime and international terrorism is a screened when entered into and are
are desirable..
basic condition for all banks. The risk of the monitored on an ongoing basis, outlines a
Bank being abused for purposes of money low risk exposure in the area. Consequent- • We will ensure that our manage-
laundering and the financing of terrorism ly, we regularly implement risk-mitigating ment and staff adhere to these
is present every day, and the threat level is measures and initiatives to strengthen the six principles and relevant instruc-
rising. Bank’s systems and employee capabilities tions::
in this area. A dedicated policy in this area
sets out a number of measures. The policy 1. We always prioritise ethics over
encompasses six principal areas: profit.
1. Know Your Customer procedures 2. We comply with the spirit and
2. Duty of investigation and recording the letter of the law.
3. Transaction monitoring
4. Duty of notification 3. We welcome oversight.
5. Duty of record-keeping
4. We have a targeted corporate
6. Screening against sanction lists and
culture commitment.
AML assessment of special risks
5. We assume managerial respon-
Adhering to Finance Denmark’s principles sibility and ensure that all staff
of conduct take responsibility for AML/CTF
Spar Nord cooperates with the banking efforts
industry and the authorities to ensure
responsible banking and conduct with 6. We have constructive part-
respect to preventing money launder- nerships with all stakeholders,
ing and financial crime. To that end, we including the authorities.
adhere to Finance Denmark’s principles of
Spar Nord Corporate social responsibility 2020 17Responsible banking
conduct on anti-money laundering and
counter-terrorist financing in the Danish Reporting to the State Prosecutor
financial sector. for Serious Economic and
International Crime (SØIK)
PhD project financed by Spar Nord
Spar Nord is continually monitoring
Spar Nord supports research into methods
transactions for irregularities and
to counter money laundering and financial
reports any suspicious issues to the State
crime, and in 2020 we sponsored the PhD
Prosecutor for Serious Economic and
project Machine Learning for Anti-Money
International Crime (SØIK), The number
Laundering, which examines and devel-
of reports is rising.
ops advanced machine learning models
to combat money laundering. The project
Reporting to the State Prosecutor for
is a three-year collaboration between
Serious Economic and International
Spar Nord and the University of Aarhus
Crime (SØIK)
on Machine Learning and Computational
Intelligence and is 100% financed by Spar
Nord. The support will continue until 2023. 2019 1,750
2020 2,048
Risks
It is a basic condition for all banks that
their services and products are at risk
of being abused for money launder-
ing, terrorist financing and financial
crime. This risk is considered high, and
the threat is a global one. If the Bank’s
services are used for harmful activities,
the Bank risks indirectly contributing to
such activities and damaging its rep-
utation, losing business relations and
incurring losses due to fines.
18 Spar Nord Corporate social responsibility 2020Protection of customer data
Data and cyber security
Security in relation to data, IT systems and customer data from the outside by way of
their use is a prerequisite for Spar Nord’s fraud. Consequently, Spar Nord has sought
credibility and competitiveness. Our busi- to draw attention to the problem through
ness depends on our ability to keep our IT the media and by directly contacting older
systems operational and our lines of com- customers in particular via traditional mail,
munication open, while at the same time as isolated older people are more exposed
protecting our customers’ and the Bank’s to fraud and social engineering during the
vital data from unauthorised parties. pandemic.
Spar Nord has implemented an extensive IT Increase in IT security investment
security policy to prevent abuse, IT-related In 2020, the Bank significantly increased
crime, loss of data and operational failures. its IT security investments. The high level
The policy covers Spar Nord, our subsidiary of investment was driven partly by the
as well as all business partners, including increased risk of cybercrime and the dy-
sub-contractors and partners who have namic threat scenario, and partly by the
access to Spar Nord’s network and data fact that Spar Nord is now designated a
internally and externally. systemically important bank in Denmark.
It is paramount for the public’s confidence
Given that the level of threat in respect of in Spar Nord that we maintain a respon-
the Bank’s data and IT systems is con- sible level of security relative to the threat
stantly changing, we regularly perform scenario and that the level is at least equal
risk assessments and adjust our IT security to that of our peers. This work will continue
policy accordingly. Any material change in 2021, as we expect a further rise in threat
in Spar Nord’s IT platform and IT systems level.
is always based on a risk assessment that
includes an assessment of confidentiality,
integrity and accessibility. We incorporate security in each and
every component of our systems, our
Pandemic brings greater threat solutions and our conduct. Risks
During the pandemic in 2020, the threat That is a precondition for operating a While Spar Nord generally has secure and updated IT systems, like all other banks we
against IT security increased because the reputable bank. are under the constant threat of IT crime. User behaviour with respect to our systems
opportunities for conventional crime de- John Lundsgaard represents a risk. There is a risk of human error by ourselves or by our suppliers, and, in
crease when everyone stays at home and Managing Director particular, there is a risk relative to our customers, where especially the skills of the older
many businesses are closed. This causes
generation in IT and IT security represents a risk. Furthermore, there is a general risk that
criminals to increasingly turn to IT crime,
process automation, the use of algorithms and the launch of artificial intelligence will
which is often performed by attacking
increase the personal distance between advisers and customers, aggravate the negative
consequences of system errors and make it difficult to allocate responsibility precisely.
Spar Nord Corporate social responsibility 2020 19A healthy working environment
A decent workplace
Spar Nord’s most important resource is its logical working environment, we launched
employees. Therefore, Spar Nord continues a comprehensive information campaign
to take responsibility for creating a healthy about health in the home office. Preliminary
and progressive working environment measurements of health and well-being
in which all employees can unfold their show that changing working conditions
professional and personal potential in the have not had an adverse effect on the
best possible way. However, Spar Nord is health of our employees and that they have
responsible not only for regulating employ- in fact enhanced their well-being. Con-
ee conditions in a proper manner, but also sequently, we will in 2021 seek to draw on
for promoting a culture in which employees these experiences by implementing the best
consistently act responsibly towards cus- new practice where relevant. We will also
tomers, colleagues, the Bank and society continue to monitor well-being and health
in general. At the beginning of 2020, Spar closely, as the situation could change due
Nord became a signatory to the UN Global to prolonged lockdowns or future reshuffles.
Compact, and over the course of the year,
we implemented an updated responsible Organisational diversity
working environment policy in which we We believe diversity is beneficial for devel-
disclose that we respect the UN’s Universal oping both business relations and colle-
Declaration of Human Rights. gial relations. Spar Nord therefore aims
to strengthen its customer services and
Health and well-being during the competitive strength by attracting as skilled
pandemic employees as possible with respect to
When the pandemic broke out in March professional and human qualities. It follows Risks
2020, Spar Nord adhered to all recommen- from this that prejudice based on gender,
dations with a view to preventing COVID-19 age, skin colour, religion, sexual orientation, Employee matters are affected by many factors which are outside Spar Nord’s
from spreading. As a result, staffing at our physical appearance or ethnic origin is a control, including legislation and cultural trends. Consequently, Spar Nord involves
headquarters and at individual branches barrier not only to developing our business, its employees in defining policies governing employee conditions. Failure to do so
was periodically limited to essential func- but also to ensuring a healthy working envi- would lead to a risk of the Bank being out of step with cultural and social practice,
tions, while the government’s recommen- ronment and a good reputation. which in turn could damage our reputation, the well-being of our employees, the
dations on gatherings, meetings, number ability to attract labour and our business in general. If we fail to comply with the
of employees per area, ventilation, the use Women in management and as board policies for employee matters, we also risk discriminating or wearing down employ-
of sanitisers and canteen operations were members ees physically and mentally. The physical working conditions represent a risk in the
implemented. Currently, the Bank has defined a goal form of accidents or attrition, and Spar Nord is therefore proactive in terms of pre-
that women should represent at least 33% venting accidents, illness and attrition. In 2020, the COVID-19 pandemic represented
Most employees worked from home during of board members by 2024. At the end of a special risk in terms of employee health and public health in general. Conse-
the lockdown, and meetings had to be held 2020, this goal was not achieved with wom- quently, Spar Nord complied with all government recommendations for containing
online, while our annual health week was en representing 22% of board members. The the spread of COVID-19 and will continue to do so in 2021.
cancelled. As this gave rise to concerns reason was that a female board member
about our employees’ physical and psycho- resigned from the board in 2020.
20 Spar Nord Corporate social responsibility 2020A decent workplace
In terms of its general management, Spar employees of all ages and at all life stages candidates within our organisation. In 2020,
Nord works systematically to identify and to develop and thrive in their job at Spar despite lockdowns and distance working
Results in 2020
motivate employees with leadership po- Nord. because of the pandemic, at least 7,000
tential regardless of gender and to improve hours of training were carried out, which • Consistent compliance with all
the retention of managers of both genders Dialogue on special needs we consider satisfactory under the given government recommendations on
by offering opportunities and flexibility in Spar Nord aims to obtain close relations, conditions. prevention of spreading of COVID-19
relation to work-life balance. confidence and a fruitful collaboration
• The share of women board mem-
between managers and employees, so as Recruitment and promotion
bers was 22%
Spar Nord has defined a goal that there to enable employees to express their wish- Being a large and important employer
should be at least five qualified appli- es and seek help for special needs. This in the industry and the region, Spar Nord • The share of women in executive
cants for managerial positions in the Bank, applies where there is a difficult situation has a joint responsibility for ensuring that and executive mid-level positions
and that at least two of these should be in the employee’s personal life, which the job candidates are treated equally and was 21.8%
women. The long-term objective of the Bank may help to resolve, and also with with an open mind. We aim to be fair and
Bank is to shift the gender breakdown at respect to wishes for training and career exemplary by ensuring equal opportunities • Highest level of employee satisfac-
executive and executive mid-level towards development. To achieve this, the dialogue for job applicants and access to the best tion in the Bank’s history
a more equal distribution between men between employees and management has possible candidates. We, therefore, look • Recruited more new graduates
and women – from 21.8% women currently been formalised as ongoing status inter- closely at the qualifications, experience, within economics, and finance as
in the Bank’s executive team to 25% women views and annual appraisal interviews. personal capabilities and social skills of well as academia
by 2024. As the above-mentioned goals candidates.
were not fully achieved in 2020, the Bank Training and education • Implemented senior policy
will focus on HR initiatives to support the Society, technology, behaviour and cus- In 2020, we focused strongly on recruiting
intended developments in 2021. tomer requirements are changing con- recent graduates within economics, and
stantly, and Spar Nord, therefore, shares a finance as well as academia. We consider
Goals for 2021
Work-life balance responsibility for ensuring that employee reaching out to educational institutions
Spar Nord wants its employees to live a skills are continuously being updated and and offering student jobs to young people • Achieve a share of 25% women in
happy and balanced life, which in turn developed, enhancing the Bank’s com- to be a social obligation and a business the Bank’s executive team
enables them to be a valuable resource at petitive strength and the employee’s value advantage.
and to their workplace while also having both to us and to others. This applies to • Continue efforts to achieve the goal
time for family and friends. To achieve professional and personal as well as social Spar Nord has a responsibility for and of 33% women board members
this, Spar Nord takes joint responsibility skills, which help ensure efficient collabora- an interest in being a stimulating work- • Continue efforts to achieve a high
for ensuring a healthy work-life balance tion and well-being. place offering good career opportunities. level of well-being, satisfaction and
in all stages of life and career. In 2020, we Consequently, we are making dedicated personal development among the
adopted a senior policy, which lays down However, Spar Nord’s training and edu- efforts to promote internal mobility among Bank’s employees
rules on considerations for the needs of cation initiatives are not only focused on our employees, and we have defined
older employees and their health at the skill-maintenance. We attach importance fully transparent guidelines, which specify • Continue to comply with govern-
workplace. Spar Nord also has a staff to accommodating requests for devel- the efforts and results that may lead to ment recommendations on preven-
handbook, whose recommendations oping skills and talent, as this will give us upgrading to another pay bracket and tion of spreading of COVID-19
contribute to ensuring possibilities for flexibility, mobility and good management one-off payments.
Spar Nord Corporate social responsibility 2020 21Employees
Well-being and satisfaction Image – Reputation 2020 2019 2018
Spar Nord has a good reputation 94 96 92
Each year, Spar Nord measures employee well-being and satisfaction on a number of pa-
Other people consider Spar Nord a good workplace 97 93 90
rameters. Based on these measurements, new initiatives and efforts are planned together
I am proud to work at Spar Nord 95 91 87
with the employees. For entities and departments whose measurements are significantly
lower than the average, special initiatives and efforts are developed in order to improve At Spar Nord “we walk the talk” with respect to our values 83 77 67
well-being and satisfaction levels. The initiatives are monitored through interim measure- I identify with Spar Nord’s values 95 92 89
ments. The results of our job satisfaction survey in 2020 showed an increase in well-being in Total score 92 75 70
all ten metrics and a total well-being score of 88%, which is the highest to date. 93% of our
employees participated in the survey.
Professional and personal development
Effort Participation 93 % 2020 2019 2018 I find that I can use my knowhow and my skills in my job 93 92 90
Strategy 81 75 70 I am able to attend training and develop my job skills 85 82 81
Reputation – Image 92 90 85 I find that changes take place at a pace that I can keep up with 74 73 65
Immediate superior 90 84 81 Spar Nord has good long-term prospects 92 89 85
Collaboration 89 87 84 Spar Nord is good at adapting. 70 64 59
Professional and personal development 84 81 78 In the past 12 months, my immediate superior conducted an
89 89 91
appraisal interview with me
Daily assignments 84 77 75
My immediate superior and I have scheduled a meeting to
Satisfaction 91 84 82 86 78 79
discuss my future development (development plan)
Motivation 93 88 85 Total score 84 81 78
Loyalty 95 89 86
Commitment 85 82 80
Satisfaction and motivation
Well-being index 88 84 81
I am generally satisfied with my job at Spar Nord 94 90 85
I am satisfied with my work-life balance 88 79 80
Strategy
Spar Nord is the ideal workplace for me 92 85 81
Spar Nord has a clear strategy for its direction going forward. 86 81 78
Total score satisfaction 91 81 78
I am familiar with Spar Nord’s strategy and vision. 87 82 81
I receive adequate information about what is going on at Spar Nord 70 62 53
I feel motivated in my job 90 84 79
Total score 81 75 70
I nearly always look forward to going to work 92 83 81
The work I do is important to Spar Nord 97 96 95
Total score motivation 93 81 78
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