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Oma Säästöpankin asiantuntija

Effects of climate change

An essential aspect of promoting sustainable development is the management of risks arising from climate change and the mitigation of climate emissions.

Risks and opportunities related to climate change

Climate change calls for new practices to limit the rise in global average temperature to 2°C in accordance with the Paris Agreement.

We want to participate in efforts to combat climate change, which is why we have identified the risks and opportunities arising from climate change for our operations at the various stages of the value chain. Almost all of the risks affecting the company are transition risks, which arise as economic operators reduce their emissions and decarbonise their operations.

Transition risks also bring with them numerous business opportunities, including the renewal of the product portfolio and increase in digital services. The company’s investment strategy can influence how assets are allocated to companies, projects and households in need of financing. Sustainable development is one of the guiding aspects in our financing decisions.

Transition and physical risks

Markets change and demand for climate-friendly products increases, which leads to the renewal of product portfolios. Assets are increasingly, and at a lower cost, invested in projects which aim to advance sustainability, and investments with negative impacts are avoided.

Legislation and other regulations tighten, which causes changes in daily work. Companies are expected to establish hands-on targets for climate-change related work.

Technology changes and the demand for digital services and service channels increases.

Stakeholder demands relating to sustainability change (e.g. green bonds), and more attention is paid to the origin of assets (climate and environmental aspects). Reputational risk arises if the markets do not meet demand as consumer expectations change. The importance of climate change abatement and other sustainability work is also highlighted in communication.

Rising temperature, extreme weather events and global pandemics may indirectly interfere with repayment capacity.

  • We generate value for customers sustainably by continuously developing new services and sustainable solutions (e.g. online housing transactions, changes in payment methods, climate-related credit products or home mortgages, offsetting the carbon footprint in the investment of assets).
  • We develop our personnel’s ways of working and ensure climate-friendly operations by assessing the carbon footprint of OmaSp’s operations and creating a roadmap to reduce emissions.
  • We increase and develop interaction and service and make sure that a personal contact is available in remote services. 
  • We develop customer communications by reporting on, for example, the financing of environmentally sustainable projects together with the European Investment Fund. We provide the OmaOnni and Yrityskylä services with material on climate and sustainability. 
  • We follow Finance Finland’s common climate targets. Our goal is to monitor and report on the climate impact of investments following TCFD’s reporting recommendations, as applicable. A further goal is to create a scenario analysis for the climate change risks of investments and financing.