1、 Jyske Bank, 2020 Green Finance Framework 2 Green Finance Framework Jyske Banks targets and measures for selected areas of sustainable finance Jyske Bank will finance the generation of a further 2 TWh of renewable energy in 2025 equivalent to 6% of Denmarks electricity generation in 2018 Jyske Bank

2、will develop products to encourage and motivate clients to renovate their properties in a way that increases their energy performance 40% of new loans for finance will be for low-emission vehicles in 2025 3 Green Finance Framework Contents Background . 4 The Jyske Bank Green Finance Framework . 4 Gr

3、een and sustainable areas of lending . 5 Renewable energy . 6 Green buildings . 7 Clean transport . 8 Sustainable use of natural resources . 9 Recycling and sustainable production . 10 Reporting . 11 Green and Sustainable bonds . 12 4 Green Finance Framework Background Jyske Bank is one of the large

4、st financial institutions in Denmark. This is a position that obliges us to act accordingly also in terms of sustainable development of the society. With the new EU Taxonomy for Sustainable Finance Regulation, the financial sectors role will change in order to support the global sustainability agend

5、a. By becoming a signatory to the six UN Principles for Responsible Banking1, aligned with the Paris Climate Agreement and the 17 UN Global Sustainable Development Goals2, Jyske Bank is committed to being a major player in supporting and facilitating the desired and necessary sustainable development

6、. The Jyske Bank Green Finance Framework In Jyske Bank we have implemented several measures to reduce the direct climate footprint of the Jyske Bank Group3. But the real difference will be made through the business models and products we, as a financial group, offer our clients. In the advice we pro

7、vide to clients, we can put focus on sustainability and ensure that our clients are offered a range of products that incentivise sustainable investment and behaviour. That is the reason why we are launching our Green Finance Framework. Under this Framework, we will regularly set criteria to define w

8、hich types of financing provided by the Jyske Bank Group contribute to a green and sustainable transformation of society. We will regularly report on the financing of activities that meets the sustainability criteria both in terms of aggregate amount and in terms of changes in Jyske Banks lending ba

9、lance. We will also report on positive climate impacts of the finance af these activities. We will set specific targets for developments in Jyske Banks financing of activities with green and sustainable purposes. Targets that define the direction in which Jyske Bank wants to steer the portfolio over

10、 the coming years, while at the same time contributing to ensuring that Jyske Bank supports the 17 UN Sustainable Development Goals. We will implement measures to support financing of the changes our clients want to make to move their activities towards greener and more sustainable activities. This

11、Framework will be dynamic to enable us to monitor the progress of the sustainability agenda and the technological developments. Therefore, Jyske Banks definition of sustainable finance, targets and measures will be updated regularly. 1 https:/www.unepfi.org/banking/bankingprinciples/ 2 https:/sustai

12、nabledevelopment.un.org/?menu=1300 3 5 Green Finance Framework Besides providing clients with sustainability advice, Jyske Bank can, through our capital market access, ensure that clients financing green and sustainable activities have optimum access to attractive finance via capital markets. This c

13、an be effected through issuance of specific bonds from Jyske Bank or Jyske Realkredit, where the net proceeds of which are allocated to finance green and sustainable activities. Such finance can be provided through the issuance of green or sustainable bonds from Jyske Bank and in the form of Jyske R

14、ealkredit covered bonds. Green and sustainable areas of lending Jyske Bank has selected five areas where increased focus and finance from Jyske Bank will have a significant impact on the transition to green and sustainable development. These areas are relevant since they play a key role in the trans

15、formation towards green and sustainable solutions for the benefit of society. It is financing of activities in these areas, that leads to lower emissions of greenhouse gasses and a lower carbon footprint in the society. Renewable energy Green buildings Clean transport Sustainable use of natural reso

16、urces Recycling and sustainable production The specified areas of finance can be classified into two categories. In the first three areas, reductions in greenhouse gas emissions can be measured through the finance provided, either directly or relative to alternative financing of activities where the

17、 emissions of greenhouse gasses are larger. In the latter two areas, activities financed by Jyske Bank will not necessarily result in lower direct greenhouse gas emissions, but will rather serve a general sustainable purpose. Going forward, there will be reductions in carbon emissions for these two

18、areas as well. For each of the five areas, Jyske Bank defines the types of activities that support the green and sustainable transition. For each area, it will be defined how Jyske Bank will measure the impact of the finance in question. For each area, we have identified at least one of the 17 UN Su

19、stainable Development Goals supported by financing of activities under the area in question. 6 Green Finance Framework Renewable energy Globally, we are using more and more energy. But a significant amount of energy generation relies on the burning of fossil fuels, resulting in greenhouse gas emissi

20、ons. When it comes to minimising greenhouse gas emissions, production of renewable energy to replace fossil fuels plays a key role both locally and globally. Consequently, renewable energy generation is also essential in ensuring that Denmarks energy consumption becomes more sustainable and may ulti

21、mately be a key element in achieving Denmarks goal of reducing carbon emissions in 2030 by 70% relative to emissions in 1990. Types of financing Impact indicator UN Global Goals Wind energy Solar energy Geothermal energy Biomass and biogas Transmission and energy storage Manufacturing, installation

22、and repair of renewable energy facilities Power generation (MWh/year) Greenhouse gas savings (tonnes/year) Renewable energy target Jyske Banks target is to finance a further 2 TWh of renewable energy generation by 2025. Production of 2 TWh electricity generated from fossil fuels in Denmark in 2018 l

23、ed to emissions of approx. 1.4m ton of CO2. Renewable energy measures Support development of wind and solar energy. 7 Green Finance Framework Green buildings Energy consumption in properties accounts for a large percentage of Denmarks total energy consumption4. Heat is generated both by direct heat

24、generation (burning of gas and oil at the property) and through decentralised heat generation (for instance central heating). The efficiency of the energy consumption of properties must be enhanced, by changing the heat sources, to reduce greenhouse gas emissions (including carbon emissions) per ene

25、rgy unit, but the total energy consumption of properties must also be reduced, and potentially reallocated to other sectors, to ensure that Denmark can achieve the target of a 70% reduction in carbon emissions by 2030 relative to 1990 levels. Types of financing Impact indicator UN Global Goals Prope

26、rties with energy label(ECP) A and B Properties with a reduction of the energy consumption by a minimum of 30% when renovated Housing loans for energy efficiency measures in existing properties Greenhouse gas savings (tonnes/year) Energy savings (GWh/year) Building measures Jyske Bank will support b

27、uilding owners in their efforts to improve the energy efficiency of existing residential and commercial properties, including assisting them in meeting energy policy measures implemented by the Danish government. Jyske Bank will develop products to encourage and motivate clients to renovate their pr

28、operties in a way that increases their energy performance. Each quarter, Jyske Bank will calculate changes in greenhouse gas emissions for properties financed by Jyske Realkredit, in Jyske Realkredit Sustainable Transparency Template5. 4 https:/ens.dk/en/our-responsibilities/energy-savings 5 8 Green

29、 Finance Framework Clean transport In a global world, we need to transport both people and goods within as well as across national borders. According to Statistics Denmark6, transport of people and goods accounts for a relatively large percentage of Denmarks total greenhouse gas emissions, including

30、 carbon emissions. To minimise greenhouse gas emissions, it is essential to ensure that the different forms of transportation becomes less reliant on fossil fuels and more reliant on renewable energy. Types of financing Impact indicator UN Global Goals Low-emission passenger cars and vans (electric,

31、 hybrid, biogas and hydrogen) Low-emission passenger transport (electric, hybrid, biogas and hydrogen), including buses, trains and ferries Low-emission goods transport (electric, hybrid, biogas and hydrogen) Infrastructure to support clean transport Greenhouse gas savings (tonnes/year) Clean transp

32、ort target Passenger cars/vans: 40% of Jyske Banks new finance must be for low-emission vehicles in 2025. Passenger transport: 40% of Jyske Banks new finance must be for low-emission vehicles in 2025. Goods transport: 20% of Jyske Banks new finance must be for low-emission vehicles in 2025. 6 https:

33、/www.dst.dk/da/Statistik/bagtal/2018/2018-12-06-fakta-om-danmarks-udledning-af-drivhusgasser-samt- energiforbrug 9 Green Finance Framework Sustainable use of natural resources In a world with a constantly growing population, sustainable food production is essential. Food producers will increasingly

34、have to take natural resources into consideration, and sustainability in this area is not only a matter of greenhouse gas emissions, but also of, for instance, nitrate and pesticide emissions to the groundwater and excessive use of the worlds natural resources. Types of financing Impact indicator UN

35、 Global Goals Certified sustainable agriculture Certified sustainable forestry Certified sustainable fishery Planting of areas/production for renewable energy Processing of certified products Greenhouse gas savings (tonnes/year) Certified organic production under EU and national legislation Forest S

36、tewardship Council (FSC) Marine Stewardship Council (MSC) Aquaculture Stewardship Council (ASC) 10 Green Finance Framework Recycling and sustainable production In order to put our resources to optimum use, it is essential that we are able, to a large degree, to recycle all or parts of existing produ

37、cts. To enable recycling, new processing of the existing product is often necessary. Consequently, it is important to finance businesses specialising in recycling existing products when these are no longer used for their current purpose (circular economy). And waste products that cannot be recycled

38、must be managed responsibly to minimise pollution. Types of financing Impact indicator UN Global Goals Production from recycled existing materials Circular economy Waterworks and wastewater management and treatment Waste sorting Pollution prevention and control Greenhouse gas savings (tonnes/year) 1

39、1 Green Finance Framework Reporting Jyske Bank will update activities financed within the five areas defined under this Framework annually. Jyske Banks reporting will include activities financed within the individual areas and the development in finance since the last reporting period, including gre

40、enhouse gas reductions from the activity, where possible. The reporting will also show the progress made by Jyske Bank in terms of delivering on the targets set in the Framework. Targets and measures under the Framework will be updated regularly. When calculating the reduction in greenhouse gas emis

41、sions from the financing of activities, Jyske Bank will perform a ceteris paribus calculation. The calculation of the reduction in emissions will be performed relative to the alternative where energy would be generated using a mix of fossil and renewable energy sources. The reporting will be publish

42、ed on 12 Green Finance Framework Green and Sustainable bonds To target financing directly at sustainable activities, Jyske Bank will be able to issue bonds7 to finance activities meeting the definitions of assets in this Framework. The issuance of bonds must comply with the Green Bond Principles: Vo

43、luntary Process Guidelines for Issuing Green Bonds, issued in 2018 by the International Capital Market Association (ICMA)8. With each green or sustainable bond issued, Jyske Bank will comply with ICMAs Green Bond Principles for 1. Use of proceeds, 2. Project evaluation and selection, 3. Management of proceeds, 4. Reporting and 5. External review. 1. Use of proceeds An amount equal at least to the amount issued will be applied to finance or re-finance activities that meet the definitions under the current Jyske Bank Green Finance Framework. The underlying fi