The financial sector plays a key role in the fight against climate change, particularly in financing and investment operations, but also as part of sustainable insurance and claims management. We want our operations to have a positive effect on the climate and our environment and to enable change towards a more sustainable future together with our customers. We support our customers’ preparation for the effects of climate change and their shift towards low-carbon operations. We offer our customers green loans tailor-made for projects beneficial to the climate and environment.
We at OP Financial Group have set climate goals for our own operations and customers’ business activities. The required climate actions are part of work under the Paris Agreement and of the Principles for Responsible Banking under the United Nations Environment Programme Finance Initiative that OP Financial Group signed as a Founding Signatory in 2019.
Initial climate transition plan
OP Financial Group published its initial climate transition plan in December 2024. The initial climate transition plan, in accordance with the CSRD, includes the policies and objectives approved by the Cooperative’s Board of Directors and confirmed by OP Cooperative’s Supervisory Council, on how OP Financial Group will adapt its operations towards the targets of the Paris Climate Agreement. This transition plan outlines the key actions and timelines by which OP Financial Group aims to reduce greenhouse gas emissions and direct financing towards sustainable development projects.
OP Financial Group's initial climate transition plan
2025: A carbon neutral OP
At OP Financial Group, we aim to make our operations carbon neutral regarding emissions from energy and fuels (scope 1 and scope 2) by 2025. This target was reached one year ahead of time, mainly by improving energy efficiency and increasing the proportion of renewable energy used in facilities.
The emissions included in the reduction target for OP Financial Group's own operations encompass emissions from the energy consumption of facilities that are in OP Financial Group's own use. These emissions are generated by heating oil, oil used in stand-by generators, electricity, district heating and district cooling.
Currently, 99 per cent of the electricity consumed in the facilities used by OP Financial Group is generated by Finnish wind power. Likewise, 99% of district heating is produced using renewable fuels or equivalent energy sources such as waste heat.
As an operator critical to security of supply, OP Financial Group must secure the electricity supply of its facilities. This is a key reason for it being impossible for us to reach full zero in emissions from our own operations. Security of supply is guaranteed by stand-by generators, which run on light fuel oil. We have sought to minimise emissions in this respect as well, and since the beginning of 2024, OP Financial Group has been using Finnish renewable fuel oil, with a carbon footprint around 90% smaller than traditional light fuel oil.
2030: Reduction of emissions associated with investments and credit portfolios
Our core business – financing and investment products sold to customers – and the associated emissions are the keys to achieving our climate and environmental goals.
Regarding investments, we will halve the greenhouse gas emissions intensity of OP Asset Management’s mutual funds by 2030 (compared to emissions intensity in 2019). This target was achieved in the beginning of 2024 but continues to be monitored and reported.
65% of OP funds’ direct equity and bold holdings in material sectors are Aligning to Net zero, Aligned to Net Zero or Net zero by the end of 2028.
75% of OP funds’ direct equity and bold holdings in material sectors are Aligning to Net zero, Aligned to Net Zero or Net zero by the end of 2028.
Our corporate loan portfolio emissions will be reduced by 25% by 2030 compared to 2022. We have set sector-specific emissions reduction targets for the three most carbon-intensive industries: the energy, agriculture and residential property sectors. Together, these form 90.6 per cent of emissions related to OP Financial Group’s credit portfolio.
OP Financial Group has now set emissions targets for these three sectors, based on a materiality analysis.
OP Financial Group's sector-specific emissions reduction targets:
- In energy production, a 50% reduction of emissions intensity from the 2022 level by 2030
- In agriculture, a 30% reduction of absolute emissions from the 2022 level by 2030
- In home loans, a 45% reduction of emissions intensity from the 2022 level by 2030
2050: Carbon neutral mutual funds and corporate loan portfolios
OP Corporate Bank is committed to achieving carbon neutrality in its corporate loan portfolios, and in funds managed by OP Asset Management and OP Fund Management Company, by 2050. A corresponding goal has been set for OP cooperative banks’ corporate loans.