Press release -
KommuneKredit achieves improved ESG-rating
In September 2019, ISS ESG upgraded KommuneKredit’s ESG rating from D+ to C. This means that KommuneKredit now belongs to the ESG Prime category of companies (best-in-class approach) within its industry at ISS ESG.
Companies are categorized as Prime if they achieve/exceed the sustainability performance requirements (Prime threshold) deﬁned by ISS ESG for a speciﬁc industry in the ESG Corporate Rating. According to ISS ESG, prime companies are sustainability leaders in their industry and are better positioned to cope with material ESG challenges and risks, as well as to seize opportunities, than their Not Prime peers.
Overall, an ESG-rating (Environment, Social and Governance) is a rating of a company’s responsibility/CSR profile. Managing Director at KommuneKredit, Henrik Andersen, comments:
“Responsibility is an inherent part of KommuneKredit’s business model. Our main objective is simply to contribute to financial latitude in Danish municipalities and regions by offering funding and financial advice at the lowest possible cost. We put great effort into supporting as well as aligning with the responsibility ambitions of our members, i.e. Danish local authorities. As a special credit institution within the Danish society, we are particularly pleased to be categorized within the best in class group of financial institutions when it comes to responsibility.”
With a loan portfolio totaling DKK 186bn, KommuneKredit is the largest lender to Danish municipalities and regional authorities. Most of the loans have a green or social objective. For example, KommuneKredit provides finance for climate proofing, coastal protection, public transportation, energy efficiency for public buildings, housing for the elderly, local sports centers, schools, city halls and sustainable investments in the utilities sector. In that sense, KommuneKredit plays an important role in the green transition of the Danish society. Since 2017, KommuneKredit has offered green finance for selected areas of the overall loan portfolio by issuing green bonds.
The ISS ESG rating scale ranges from D- to A+. Among the 82 financial institutions that have been evaluated, approx. 32% have received the grade C or higher. Currently, the highest grade within the industry is B.
KommuneKredit is an association, whose purpose is to provide lending to municipalities and regions and companies with a 100% municipal guarantee.
The association is the municipalities and regions own credit institution and exist solely for our clients.