Case study: How Norion Bank takes action on its PRB targets: climate change mitigation and financial inclusion and health
Norion Bank focuses on delivering financial solutions to both corporate clients and individuals, with a special emphasis on supporting small and medium-sized enterprises (SMEs). Its corporate services encompass real estate financing, business loans, factoring, and payment solutions. For private individuals, the bank offers personal loans, invoice and instalment payment services, credit cards, and savings accounts. The majority of Norion Bank’s customers are corporate clients, complemented by approximately 52,000 private customers. Norion Bank is a signatory of the Principles for Responsible Banking (PRB) and has, accordingly, set and published two targets which address two different areas of most significant impact that Norion Bank identified in its impact analysis. Tweet This!
This case study is based on the 2023 PRB Reporting and Self-Assessment Template by Norion Bank, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking (PRB) addressed in this case are:
- Principle 2: Impact and Target Setting
- Principle 4: Stakeholders
Abstract
Norion Bank has set targets for climate change mitigation and financial inclusion and health. In order to show that it has implemented the actions it defined to meet the set targets, Norion Bank took action on:
- SMART Target 1: Climate change mitigation
- SMART Target 2: Financial inclusion and health
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With this case study you will see:
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- Which are the PRB targets Norion Bank has set and published;
- How Norion Bank proceeded with stakeholder identification and consultation, and
- What actions were taken by Norion Bank on its PRB targets
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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.
Norion Bank engages with its stakeholders through various channels. In 2023, this involved ongoing discussions with customers and prospects about ESG matters. Additionally, Norion Bank incorporated ESG considerations into its Corporate Accelerator program and enhanced its partnership with Junior Achievement. By maintaining regular, open communication with its stakeholders, Norion Bank can align with their expectations, respond to a dynamic environment, and ultimately bolster its sustainability and long-term success.
What actions were taken by Norion Bank on its PRB targets, climate change mitigation and financial inclusion and health?
In its 2023 PRB Reporting and Self-Assessment Template Norion Bank reports that it took the following actions on its PRB targets, climate change mitigation and financial inclusion and health:
- SMART Target 1: Climate change mitigation
- Norion Bank’s primary strategy for reducing carbon emissions within its loan portfolio involves collaborating with its customers to support their transition and minimize their carbon footprint. In 2023, Norion Bank engaged in regular dialogue sessions with its clients to facilitate this process.
- Throughout the year, Norion Bank initiated an analysis of its credit portfolio to estimate the bank’s climate footprint (Scope 3 downstream), a project that continued into 2024. Norion Bank initially concentrated on segments where it believed the financed emissions were highest, such as the Real Estate and Corporate sectors. Norion Bank is also continuously refining its methodology for assessing customers’ ESG risks and opportunities and has implemented further systematization of its internal processes.
- Additionally, in 2023, Norion Bank conducted a comprehensive Scope 3 greenhouse gas (GHG) inventory to evaluate indirect emissions and other environmental impacts across its entire value chain. In 2024, Norion Bank performed environmental risk assessments focusing on climate-related risks—both physical and transitional—in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) framework, to better understand the climate-related physical and transitional risks within its credit portfolio.
- SMART Target 2: Financial inclusion and health
- In 2024, Norion Bank initiated the implementation and monitoring of actions aimed at achieving this target.
- Examples of such KPIs included:
- The total number of jobs created.
- The number of jobs generated in regions with unemployment rates above the national average.
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.
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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 Norion Bank, 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:
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