Case study: How the Bank of Åland 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.

The Bank of Åland’s stakeholders have been recognized as part of the materiality analysis process. With the growing demand for transparency and external communication regarding corporate sustainability initiatives, these stakeholders are playing an increasingly critical role in sustainability efforts. Expectations for sustainability are now considered standard across the entire product line. In 2023, the Bank of Åland deepened its dialogue with stakeholders to better understand their needs and motivations behind their decisions. The primary stakeholders of the Bank of Åland include:

• Customers
• Shareholders
• Debt investors
• Employees
• Public authorities (regulators)
• Rating agencies
• Resellers
• Suppliers
• Partnership organizations
• Special interest organizations
• Media

The Bank of Åland maintains an ongoing dialogue with other local businesses through the sustainability network in Åland, Bärkraft.

To support its climate initiatives, the Bank of Åland collaborates with ‘Compensate’ and ‘2050.’ Additionally, the bank actively participates in the regional sustainable business network, Bärkraft. In 2022, the bank enhanced its communication with stakeholders by providing more information and training. New areas of responsibility have been identified and communicated. The sustainability information available on the websites has been expanded, and the climate goals have been publicly announced. Various customer events have also been organized, particularly focusing on renewable energy projects.

How did the Bank of Åland work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 PRB Reporting and Self-Assessment Template the Bank of Åland reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

With the growing demands for transparency and external communication regarding corporate sustainability efforts, the stakeholders of the Bank of Åland have assumed a more significant role in its sustainability initiatives. Expectations for sustainability are increasingly considered standard practice across the Bank of Åland’s product offerings. To better understand stakeholder needs, the Bank of Åland has engaged in communication through customer and brand surveys, as well as participation in business forums. In 2023, the Bank of Åland further enhanced its dialogue with stakeholders to gain deeper insights into their needs and motivations for making sustainable choices. Each business area also has its own processes for implementing sustainable practices.

A notable client engagement initiative for the Bank of Åland is The Baltic Sea Project, which aims to promote a healthier sea through funding innovative ideas and raising awareness about the condition of the Baltic Sea. Associated with this project is the Baltic Sea Card, a payment card linked to the Åland Index, which helps customers estimate the carbon footprint of their purchases.

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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References:

This case study is based on published information by the Bank of Åland, 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.alandsbanken.com/uploads/pdf/Koncern_PRB_self_assessment_1920x1080px_5104.pdf

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