29-09-2023 08:00

Nordea best ranked among Nordic peers in Sustainalytics’ ESG Risk Ratings

Morningstar Sustainalytics’ ESG Risk Ratings are considered by the global investor community to be the most important assessment of a company’s management of environmental, social and governance risks. Following a significantly improved score, Nordea has been given a ‘low risk’ rating by Sustainalytics and is now best ranked among its Nordic peers.
Sunlight streaming through trees in forest

Covering more than 16,000 companies, Morningstar Sustainalytics has the widest coverage of analyst-based ESG Risk Ratings in the world. Sustainalytics’ ESG research and ratings are relied on by investors to evaluate financially material ESG issues that affect the long-term performance of their investments. After careful analysis, companies are given an ESG risk score and then separated into different categories – low risk (below 20 points), medium risk (20 to 30 points), high risk (30 to 40 points) and severe risk (above 40 points).

Following the release of updated research by Sustainalytics, Nordea’s ESG Risk Rating is now 16.1, moving from a previous score of 21.7. This places Nordea in the low-risk category for the first time and in the number 1 spot among Nordic peer banks and is reflecting our ambition to support our customers and developing the Nordic societies towards a more sustainable future. We have integrated sustainability into the core of our business strategy and into all aspects of our business, from our product offering and our investment decisions to our internal operations. We have also introduced measurable long-term objec­tives and medium-term targets to help drive a more sustainable future and are on a good path. 

Anja Hannerz, Head of Group Sustainability.

Anja Hannerz, Head of Group Sustainability, says: 

“It’s great to see that we have improved our ESG score quite significantly. Sustainalytics is a very important rating that is relied on by investors to give a clear picture of a company’s approach to ESG. Thanks to this great development we now have the lowest risk from an ESG perspective and the best score among our peers in the Nordics. For investors making investment decisions based on a comparison of ESG scores, it’s very welcoming to see that we have a rating that reflects the important initiatives we are undertaking at Nordea.”

What are ESG ratings and why are they important for banks?

In the broadest terms, an ESG rating measures the long-term sustainability and the future societal and environmental impact of a company and its business activities. It’s calculated considering a range of different factors. Each rating agency bases its reports on a different selection of indicators and they use varied methodologies to compile their ratings. 

Juho-Pekka Jääskeläinen, Senior Investor Relations Officer.

Juho-Pekka Jääskeläinen, Senior Investor Relations Officer, adds:

“The improved ESG Risk Rating profile follows intensive work at Nordea to update and clarify ESG-related policies as well as other significant ESG indicators. Among other activities, we updated our “responsible marketing” and “anti-bribery and corruption” policies and published them on nordea.com. As we have strong competence and capacity within ESG, we will continue to increase the transparency about the actions we take to enhance the dialogue with customers, investors and other stakeholders on how to transition to a more sustainable economy.” 

About Morningstar Sustainalytics

Morningstar Sustainalytics is an independent ESG and corporate governance research, ratings and analytics firm that supports leading institutional investors and corporations around the world. Sustainalytics’ ESG Risk Ratings are designed to help investors identify and understand ESG risks in their portfolio companies and how those risks might affect performance.

 

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