ESG strategy and objectives

KommuneKredit’s business model is essentially about giving Danish municipalities and regions more financial leeway by offering funding and financial advice at the lowest possible cost.

Nearly all the loans we issue or lease agreements we enter into serve green or social purposes, such as climate and coastal protection, public transport and energy efficiency in public buildings, or contribute to the establishment of elderly housing, local sports centres, schools and district heating. In that sense, sustainability is an inherent part of KommuneKredit’s business model.

Danish municipalities and regions have high ambitions for the sustainable transition of Danish local communities. All Danish municipalities have developed climate action plans to deliver on the Paris Agreement.

We are dedicated to offering instant and straight­forward access to finance projects that ensure local growth and support the green transition across Denmark, with equal opportunities and terms for all.

The total value of our loans exceeds DKK 175 billion, and we continuously strive to increase the proportion of green loans.

As a financial institution that facilitate welfare and green transition across Denmark with our low-cost financing it is natural for us to focus our primary ESG efforts on lending, leasing agreements and investments, which are our core business areas. However, we are also committed to making a difference by managing our business responsibly, reducing the climate impact of our operations and ensuring good working conditions for our more than 100 employees.

We have established nine ESG objectives that, together with our Policy for Corporate Social Responsibility and Sustainability and our Code of Conduct, form the foundation of our work. These objectives set the direction and help us achieve results from our ESG efforts across the business.