Case study: How Arbejdernes Landsbank takes action on its PRB targets: climate change mitigation and financial health and inclusion

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.

The implementation of the UN Principles for Responsible Banking is integrated into Arbejdernes Landsbank’s reporting and management of material topics in accordance with the Corporate Sustainability Reporting Directive.

Arbejdernes Landsbank employs a structured approach to gathering input that supports its business model and ensures that its activities generate positive outcomes for key stakeholders. The primary stakeholder groups involved include employees, customers, local communities, investors, regulatory authorities, suppliers, business partners, and workers within the value chain.

In preparation for the sustainability statement, Arbejdernes Landsbank conducted a double materiality assessment. This process engaged several employees who also provided perspectives representing the interests of the Group’s stakeholders.

No external stakeholders, including affected communities, were consulted during the double materiality assessment. Instead, internal stakeholders, given their expertise and roles, were able to represent the views of external stakeholders such as customers and investors.

What actions were taken by Arbejdernes Landsbank on its PRB targets, climate change mitigation and financial health and inclusion?

In its 2024 PRB Progress Statement Arbejdernes Landsbank reports that it took the following actions on its PRB targets, climate change mitigation and financial health and inclusion:

• SMART Target 1: Climate change mitigation
• Arbejdernes Landsbank is actively working to align its strategy and business model with the transition toward a sustainable economy and the goal of reducing global warming in accordance with the Paris Agreement. It has committed to achieving climate neutrality by 2050, with several interim targets established for the period up to 2030. These include goals for reducing greenhouse gas emissions from its own operations (scope 1 and 2) as well as emissions related to its financed activities (scope 3). Details of these targets can be found on page 93 of the Group’s annual report.

• SMART Target 2: Financial health and inclusion
• Arbejdernes Landsbank provides advice and services to hundreds of thousands of customers, including individuals, businesses, and associations.
• As society becomes more digitalized and technological innovations advance, an increasing portion of the Group’s services are being transformed into digital formats. Currently, Arbejdernes Landsbank’s primary focus is on promoting financial inclusion for private customers who may be at risk of exclusion if they are unable or unwilling to participate in the digital transition for various reasons.
• To support financial inclusion among its private customers Arbejdernes Landsbank implements several initiatives, such as a nationwide network of branches and ATMs, user feedback on digital services, and the provision of basic banking services free of charge.
• Arbejdernes Landsbank is in the process of developing a social program that aligns with the bank’s overall strategy and initiatives. This work is ongoing. As a result, AL Group has not yet established baseline metrics or set specific targets related to financial health and inclusion.
• For more information, please see the Group’s annual report on pages 120-123.

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 Arbejdernes Landsbank, 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.al-bank.dk/media/uobn5jh4/arbejdernes-landsbank-un-prb-progress-statement-2024.pdf

Note to Arbejdernes Landsbank: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us