Finland-based financial services company OP Financial Group announced today the launch of its new sustainability program, unveiling a series of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. goals, including targets to reduce emissions in its loan and investment portfolios and boost its sustainable finance deployment.
The new program is built around three key sustainability themes, including “Climate and the environment,” “People and communities,” and “Corporate governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights..”
Timo Ritakallio, President and Group Chief Executive Officer of OP Financial Group, said:
“Sustainability lies at the core of OP Financial Group’s business and mission. Our new sustainability programme aims to further strengthen the role of OP Financial Group as the sustainability forerunner in the financial sector. Through our actions, we want to build a sustainable tomorrow and enable sustainable choices for our customers.”
OP Financial’s portfolio emissions reduction goals fall under the Climate and environment category, and include targets to cut 25% of corporate loan portfolio emissions 50% of greenhouse gas emissions in OP funds by 2030. By 2050, OP Corporate Bank is committed to carbon neutrality in its corporate loan portfolios, and in funds managed by OP Asset Management and OP Fund Management Company.
The company also unveiled a goal to have sustainable financing products account for at least €8 billion of commitments by the end of 2025, and by 2030 the company has committed to not engage in direct and active investment in businesses related to coal mining or coal power generation.
Commitments under the sustainability program’s socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. themes include diversity goals to have at least 40% representation of each gender in executive positions by 2025, a pledge to carry out a self-assessment of the human rights impacts of its operations, and a target to have 100% of contract suppliers in the company’s supply chains commit to a supplier code of conduct by 2025.
OP Financial also committed to provide reliable and easy to understand sustainability reporting, and to link ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. factors to the group’s risk reporting by the end of next year.
Annina Tanhuanpää, Head of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and Corporate Responsibility at OP Financial Group, said:
“Based on the views of our stakeholders, our sustainability programme emphasises factors such as responsibility for the environment, OP’s role in society to promote financial literacy, and caring for the wellbeing of our employees.”
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