“Sustainable finance is not only about managing financial risks, about stability. Sustainability is also about change. About making better choices for a better world.” That was the message of Klaas Knot in his lecture at One Planet, where he spoke to an audience of mainly students.Read more
By making our investments more sustainable we contribute to a sustainable economy. In our investment policy, we emphasize climate change. That is why we started investing in green bonds.
DNB has its own reserves. For example, shares and bonds. For these, we apply a socially responsible investment policy. In our investment choices, we take sustainability into account. Such as the financial risks of climate change. This is how we want to use our investment to contribute to a sustainable economy. The size of our investment portfolios is too modest to bring about major changes. But we do want to set a good example and thus contribute to the sustainability of the entire financial sector. That is what really carries weight. Read more about our reserve management.
Investment policy – ESG
Sustainable investment is based on ESG criteria. ESG stands for Environmental, Social and Governance. Based on these criteria, we measure the sustainability of an investment. The inclusion of ESG criteria is one of the pillars of our sustainable and responsible investment policy (see infographic). Read more about our policy in our Responsible Investment Charter.
The five pillars of our sustainable investment policy
No Controversial weapons
We apply a filter to our investment and our (potential) counterparties to ensure that they meet our ESG criteria. This means that we do not invest in companies engaged in the production of cluster munitions, landmines or chemical, biological and nuclear weapons insofar as they violate the Treaty on the Non-Proliferation of Nuclear Weapons. We also want our counterparts to adhere to certain internationally applicable ethical standards, such as the United Nations Global Compact principles. Therefore, we screen these parties on the basis of such standards.
Investing in green bonds
In recent years, we have been investing more in green bonds. These bonds for example stimulate investment in energy efficiency improvements. At the beginning of 2022, DNB had approximately € 460 million in green bonds. Our intention is to invest a further € 80 million in green bonds this year. This is how we want to contribute to greening the economy, which is necessary to achieve the targets of the Paris Climate Agreement.
Purchasing programmes at European level
DNB aims to make its own financial reserves more sustainable. In addition, we participate in the ECB's large-scale purchase programmes. In doing so, we follow their policy. In July 2021, the ECB decided to further incorporate climate change considerations into its monetary policy framework. This means that they will take climate change criteria more into account when purchasing corporate bonds. They will also consider these criteria in their risk assessment and collateral framework. Read more about the ECB's action plan to include climate change considerations in its monetary policy strategy.
Sustainability high on the agenda – PRI
DNB is committed to promoting financial stability and sustainable prosperity. That is our mission. Climate change threatens our prosperity and stability. Sustainability is therefore high on our agenda. To underline this, we were the first central bank to sign the Principles for Responsible Investment (PRI) in 2019. This enables us to strengthen our investment policy and improve our accountability. Read more about the significance of the PRI for our policies and reports.
Sustainability: development and cooperation
We are constantly improving our responsible investment. In doing so, we value collaboration and partnership, because we are facing major challenges. And far more is needed: more research, measurement methods and data. We work together with other central banks, supervisors and the financial sector. We do so at a national and international level. For example, we are one of the pioneers of the international Network for Greening the Financial System (NGFS). We also initiated the Platform for Sustainable Finance. Read more about the development of sustainable finance and our cooperation with other parties.
Podcast on sustainable investment
Want to know how we put sustainable investment into practice? Our colleagues Lisanne and Rianne explain this to you in the podcast.
The Biodiversity Working Group of the Sustainable Finance Platform, together with the Erasmus Platform for Sustainable Value Creation, today published its study “Financing regenerative agriculture”.Read more
Speech Steven Maijoor - “On how climate-related and environmental risks affect banking and its prudential supervision”
On 11 May, Steven Maijoor spoke at the AFME European Sustainable Finance conference. He talked about how climate-related and environmental (C&E) risks affect the financial system and about how supervisors and banks must respond to these risks.Read more