In line with the outcomes of the Paris Agreement and COP28 Climate Change Conference in Dubai, OP Financial Group will exclude oil and gas exploration and production from its financing, mutual fund investment and Pohjola Insurance activities. Exceptions can be made in the case of companies that have committed to switching towards a low-carbon economy and provide a concrete plan for operating in line with the goals of the Paris Agreement.
OP Financial Group will not finance or insure new corporate customers that engage in unconventional oil and gas extraction, or the exploration or production of oil or gas in Arctic areas.
“The adjusted policies are in line with OP Financial Group's sustainability programme and emission-reduction measures. This mainly involves the enhancement of current practices and clarification of our policy as a preventative measure. As the largest financial services group in Finland, we are playing our part to promote sustainable business and the green transition,” says Elina Erkkilä, ESG and Corporate Responsibility Director at OP Financial Group.
OP Financial Group has not been financing institutions or companies in Finland that practice oil and gas exploration or production. Its credit exposures abroad to businesses that benefit from unconventional oil extraction methods (shale heating and pyrolysis) are relatively small.
Direct equity and fixed income investments by OP mutual funds exclude institutions and companies involved in coal, oil and gas exploration and production. Exceptions are made for companies with a clear strategy for migrating to a more sustainable business model. In addition, Pohjola Insurance will no longer insure institutions or companies that engage in oil and gas exploration or production. This policy does not include insurance involving a statutory obligation to insure.