Sustainable funding. Financing for a long-lasting foundation and in view of consumer dangers

OP’s considerable number of products and services allows loan that is providing with comprehensive and safe funding solutions at reasonable price.

Funding on a long-lasting foundation and in view of consumer dangers

OP constantly takes an approach that is holistic lending to customers. The lending issues that are biggest deciding on individual clients connect with their debt-servicing capacity as well as the loan size. It is important to identify financial risks associated with their business or the project to be financed, and environmental risks when it comes to corporate customers.

Careful dedication of a person’s status once the foundation

We base our financing for personal clients on our Code of company Ethics and Code of Ethics for Lending. In this respect, we payday loans AK emphasis economic and responsibility that is social. In financing, we observe regulations on good financing techniques as well as the tips given by the Financial Supervisory Authority.

We aim at long-standing client relationships in financing to personal clients. When giving that loan, we carefully analyse an individual’s debt-servicing capability and fit the mortgage size to suit their payment ability. Our extensive array of services and products provides us having a basis that is solid provide loan candidates comprehensive and safe solutions at reasonable expense.

We advise clients whom get into financial hardships to get hold of their bank at the earliest opportunity, because early intervention results in there are more potential measures available for repairing the specific situation.

We now have indirect duty in businesses’ business

As a monetary solutions team, OP has responsibility that is indirect it comes to funding for business clients. Our funding choices simply just take account of social obligation and issues that are environmental. It is vital because of this assessment to recognize possible dangers related to major jobs and high-risk sectors.

As well as our personal analysis, we possibly may consult a separate specialist whom assesses ecological dangers pertaining to a person client or even a task become financed. The identified dangers play their part within our financing decisions.

ESG analysis

In 2019, OP business Bank developed its ESG analysis (ecological, personal & Governance) included in the assessment of business customers’ creditworthiness. This analysis examines busi-nesses and jobs looking for funding, including their results and dangers in terms of weather change, waterways or land use. In regards to governance and society, ESG analysis examines elements such as employee health, board independency and transparency of taxation. The analysis seeks to identify material ESG risks and possibilities for the bank’s corporate clients, which supports into the conventional credit evaluation.

Products

In 2019, OP business Bank developed two items in line with the worldwide framework for sustainable finance: the green loan and sustainability-linked loan. The cor-porate customer undertakes to use the borrowed assets for defined projects, whereas in sustainabil-ity-linked loans the corporate customer commits itself to sustainability performance targets that are jointly agreed at the lending stage in green loans. These objectives impact the loan margin. With your green loans and sustainability-linked loans, we encourage companies to boost their sustainability

OP?s obligation concepts in task finance

The Equator concepts (EP) is a standard into the economic solutions industry. It really is a danger administration framework for determining, evaluating and handling ecological and risk that is social tasks. OP Financial Group adopted the Equator axioms (EPs) towards the end of 2016. Tasks at issue are implemented in OP business Bank Plc. The appropriate personnel employed in task funding and relevant funding in OP business Bank’s business finance have already been trained to check out OP’s internal EP procedure.

In training, OP is applicable the EPs by performing the stages that are following

OP identifies the jobs whose nature and size autumn in the EP range. OP makes ecological and social assessments of the jobs material that is using by the consumer and where necessary, separate specialists and web site visits. On the basis of the supplied material, an EP expert employed in business finance assesses the project’s ecological dangers in addition to approaches to mitigate them. The EP specialist cooperates using the persons negotiating the task’s financing sufficient reason for appropriate solutions whenever drawing up the financing terms.

Alongside the individual in charge of funding, the EP expert gift suggestions the task in a decision-making human anatomy, compliant with the danger policy, whose committee verifies the EP danger level and action plan. The committee’s declaration on EP conformity is appended to your funding choice.

OP monitors the jobs yearly to make sure that the planned actions are implemented through the ecological and social viewpoint. The client must submit a report in the task’s progress. In the event of abuse, OP experiences the suitable measures with other financiers.

OP reports yearly the jobs within EP range towards the Equity Principles Association.