“Our lending balance of around NOK 60 billion and our portfolio of projects and borrowers covering more than 40 countries give us a particular responsibility to ensure that environmental and social conditions are properly safeguarded in the transactions we finance,” says Fanny Fabricius Bye, sustainability manager at Export Credit Norway.
Export Credit Norway seeks to meet its social responsibility by asking relevant questions and including appropriate environmental and social requirements in transactions, to ensure that financed projects are executed with the necessary care.
For the company, correct handling of social responsibility is a precondition for the financing of Norwegian exports.
All financing applications received by Export Credit Norway are classified, assessed and followed up in accordance with a risk assessment covering corruption, money laundering, social conditions and environmental impacts.
Based on the risk profile of each transaction, Export Credit Norway specifies measures to be implemented during the loan disbursement and repayment period. Such measures may include conditions in loan documentation and mandatory independent reporting.
Pages 48 and 49 of the company’s annual report provide an overview of Export Credit Norway’s assessment processes relating to sustainability and responsibility, which are followed in all transactions.
Green financing products?
Internationally applicable rules under the OECD Arrangement on Officially Supported Export Credits include a separate sector agreement on renewable energy and climate technology projects. The agreement permits somewhat more favourable conditions for projects in these sectors, including repayment periods of up to 18 years and more flexible repayment structures. The objective is to provide special incentives for climate-friendly projects.
In the autumn of 2018, Export Credit Norway completed an assessment of how it can refine its sustainability efforts further and, in particular, what it can do to support green restructuring.
“Although the OECD Arrangement and the state subsidisation rules impose some restrictions on the introduction of green products which go beyond the scope of the OECD sector agreement, we will continue to evaluate opportunities to introduce green financing products to promote both Norwegian exports and a stronger sustainability focus among businesses,” says Fanny Fabricius Bye.
Published 27. May 2019