Case study: How Landkreditt works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Landkreditt partners with several key players in the agricultural sector to create and implement strategies aimed at reducing emissions and enhancing sustainable food production.

In partnership with Norsk Landbruksrådgiving and Klimaselskapet, Landkreditt has encouraged farmers to utilize climate calculators and follow climate guidance to decrease their carbon footprint.

The collaboration with the Norwegian Farmers’ Union has emphasized reducing climate emissions while also promoting health, safety, and environmental practices in agriculture.

Through alliances with Felleskjøpet, Norsk Landbruksrådgiving, Animalia, and research institutions such as NMBU and NIBIO, Landkreditt will host the Agricultural Sustainability Award and conduct sustainability seminars to disseminate knowledge about green initiatives and the latest research.

Internally, the Landkreditt boards have prioritized sustainable finance and prepared the bank to meet future reporting requirements.

Landkreditt also actively engages with the media to raise awareness of sustainable initiatives and the advantages of choosing Norwegian-produced food.

Collectively, these collaborations and initiatives have resulted in heightened customer awareness, increased investments in sustainability efforts from clients, and a positive influence on the Landkreditt’s portfolio.

How did Landkreditt work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2024 PRB Reporting and Self-Assessment Template Landkreditt reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Landkreditt Group focuses on the business areas and topics identified through its double materiality and impact assessment.  The bank has launched several initiatives aimed at engaging customers and promoting sustainable practices, with a strong commitment to facilitating the transition towards sustainable economic activities. This effort includes not only financial incentives but also consulting and informational initiatives. Below is a summary of how Landkreditt actively pursues these objectives:

Policies and Actions to Support Customers’ Transition to Sustainability

1. Green Agricultural Loans:
   • Landkreditt offers green agricultural loans with attractive financing terms to encourage investments aligned with the Climate Agreement of the agriculture sector and the Norwegian government.
   • To qualify for these loans, customers are required to use a climate calculator and/or consult with a climate advisor, along with adhering to ESG criteria.
2. Commercial Posts and Press Releases:
   • Landkreditt publishes commercial posts and press releases highlighting the profitability of sustainable investments within agriculture. This aims to raise customer awareness that sustainable practices are not just a responsibility but can also yield financial benefits.
   • Landkreditt also places emphasis on providing information on loss prevention, including risks linked to climate change, helping customers adapt and mitigate risks.
3. Implementation of Advisory Procedures:
   • To better inform customers about investments in sustainable practices, the bank is developing specific procedures for advisors. This includes training on ESG requirements and climate-related investments to enhance the advice provided to customers.
4. Direct Communication about Investments:
   • Landkreditt is exploring methods for direct communication with customers regarding relevant investment advice tailored to their specific production needs. This may involve personalized guidance and digital communication tools to customize investment recommendations.
5. Collaboration with Industry Players:
   • Landkreditt partners with key organizations such as the Norwegian Farmers’ Union, Norsk Landbruksrådgiving, Felleskjøpet, and Animalia to support the objectives outlined in the agricultural climate agreement.

Current Customer Engagement Indicators:

1. Utilization of Green Agricultural Loans:
   • The quantity and volume of green agricultural loans issued serve as indicators of how many customers are actively investing in sustainable solutions. Landkreditt can track the growth in loans with green conditions and make comparisons to previous years.
2. Compliance with ESG Requirements:
   • The percentage of customers meeting ESG requirements and utilizing a climate calculator or consulting a climate advisor is a key indicator of their commitment to sustainability. Notably, 98% of Norwegian farmers fulfill the ESG criteria. Landkreditt is dedicated to supporting all its customers, and if any customer encounters difficulties in meeting ESG standards, Landkreditt makes considerable efforts to assist them financially in achieving compliance. This initiative spans Landkreditt’s entire agricultural portfolio.

By integrating financial incentives, clear guidelines, advisory services, and industry collaborations, Landkreditt aims to establish a comprehensive approach to help customers transition to more sustainable practices.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Landkreditt, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.landkredittbank.no/contentassets/5ab09b233df14e289a2616a8994b33dc/prb-reporting-and-self-assessment-template-2024_landkreditt.pdf

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