Sustainability and social responsibility

Both Norway and the world community urgently need to restructure in the next few years in order to achieve the climate targets for 2030. As a regional savings bank, we have the power to influence, both through banking and through the projects we get involved in. This presents us with responsibilities and opportunities that we take very seriously. 

Sparebanken Møre was established in 1985 by the merger of a number of local savings banks. The oldest bank that was part of this merger was Herrøe og Røvde Sparebank, which was founded in 1843. Ever since the first banks saw the light of day, they have played an important social role in their various local communities. The same is true today. 

The savings bank model contains within itself both the strength and power to contribute to sustainable social development. Sparebanken Møre has also committed itself to being a driving force in this work through the bank’s vision of being the leading contributor to creative enthusiasm in Nordvestlandet. Every day. 

The vision entails us taking a leading role in developing our region. Through knowledge, engagement and returning a significant contribution back to the community, we shall create value for the benefit of people, business and society. 

In 1987, the Brundtland Commission defined sustainable development as the use of resources that meets today’s needs without destroying the chances of future generations to meet their needs. 

As a regional actor in Nordvestlandet we are interested in sustainability, growth and development in the communities of which the bank is a part and this will be our area of focus. We will also look at the bank’s sustainability work from a national and global perspective. 

An integral part of the strategy

During 2020, the bank both further intensified and structured its work on sustainability. Sustainability representatives have been defined for all relevant fields, and together they constitute the bank’s sustainability committee. 

A materiality analysis was conducted in order to focus our efforts on the areas of greatest importance for both stakeholders and the bank’s long-term value creation. Specific goals have been formulated based on this and these are included in an overall strategy for sustainability that has been approved by the Board. 

Sustainability has also been made a priority focus area in the bank’s group strategy for the period 2021-2024. The overarching objective is for Sparebanken Møre to be a driving force for sustainable development. The objective has been firmed up through special action plans and measures in all of the bank’s units/divisions. The work is in an initial phase and there will be a high level of activity within the area throughout the strategy period. 

Over the year, sustainability became better integrated into the bank’s governing documents and training measures were implemented throughout the organisation. Several internal processes were also initiated to implement sustainability considerations in the bank’s operations. A more detailed description of this can be found under ‘Material topics’. 

A green framework for the issuance of green bonds was also drawn up in 2020.

Sparebanken Møre will continue this work at full steam in 2021, both inside the bank and outside. We will do our bit for our shared future by being a driving force behind sustainable development in Nordvestlandet.  

Reporting standards 

The bank reports on its work on sustainability and corporate social responsibility (CSR) every year in connection with the annual report in line with section 3-3(c) in the Accounting Act. This stipulates requirements regarding human rights, labour rights and social conditions, the external environment and combating corruption in business strategies, day-to-day operations and in relation to stakeholders. 

In order to ensure it takes a systematic and structured approach, the bank reports in line with the GRI standard ‘Core’ option. This also means reporting the Group’s CO2 emissions in accordance with the Greenhouse Gas Protocol Initiative (GHG protocol). 

As a consequence of signing up to the UNEP FI Principles for Responsible Banking in 2019, in 2021 the bank is for the first time preparing a self-assessment that must be reviewed by an independent third party. 

In 2021, Sparebanken Møre will start work on reporting in line with the Task Force on Climate-related Financial Disclosures (TCFD).  

Sparebanken Møre will also comply with market practices as well as relevant recommendations, including Euronext’s ESG Guidelines for Issuers. The reported information must be accurate, balanced, understandable, comparable, timely and reliable. 

The bank’s sustainability reporting is included in its annual report. It will also function as a stand-alone document that is published on the bank’s website. 

Organisation of the work 

The Board is responsible for establishing guidelines and strategies for the bank’s sustainability work, while the CEO is responsible for implementing the strategies. 

In 2020, the bank established a dedicated sustainability committee, which consists of ten sustainability representatives from various areas in the bank. The committee is responsible for the preparation and follow-up of the bank’s sustainability strategy and reporting to the executive management group. The committee will with its multidisciplinary organisation contribute to disseminating sustainability to all employees. 

In connection with the establishment of a green framework for the issuance of bonds, a green bond committee has also been established that will ensure the follow-up of, and compliance with, the green framework. 

Sparebanken Møre has chosen UN Sustainable Development Goal 17 Partnerships for the Goals as a key priority area for its work on sustainability. We have a broad and complex group of stakeholders and believe that all of the groups are increasingly interested in how the bank addresses its social mission and how we can achieve the goals together.

Our stakeholders

We have defined the following as our main stakeholders:

Materiality analysis

The bank conducted a materiality analysis in 2020 to identify the sustainability topics that are important to our stakeholders and at the same time important for the bank’s capacity for long-term value creation. The analysis shows how the bank can reinforce its positive impacts and where it can reduce its negative impacts within sustainability. 

A survey was produced as part of conducting the analysis in which different topics within the environmental, social conditions and governance (ESG) criteria must be ranked (important, more important, most important). Internal respondents represented the bank’s various stakeholders in the survey based on their knowledge of what areas are important to the different groups. A supplementary document was produced that contained definitions of concepts to ensure that the respondents had a common understanding of the survey’s various topics. 

The stakeholders’ answers were then viewed in the context of the bank’s strategy and an assessment was made of the various topics’ impacts on the capacity for long-term value creation. The topics were discussed in the bank’s executive management group and were also presented to the bank’s Board of Directors. 

Based on an overall assessment, the following ten topics were defined as the most material for Sparebanken Møre’s sustainability work:

Topics that ended up in the areas at the bottom and furthest to the left were eliminated from the matrix. The remaining topics are regarded as the most material and are reported on in the annual report in line with GRI.  

Stakeholder engagement in 2020 

Engagement with our stakeholders is a high priority in Sparebanken Møre and during 2020 we were in contact with our stakeholders in various ways. A schematic summary of the main features of the stakeholder engagement is provided below:

The bank has signed up to several national and global sustainability initiatives, objectives and frameworks, all of which provide guidelines for the bank’s work within sustainability.

UN Sustainable Development Goals

Sparebanken Møre supports all 17 of the UN Sustainable Development Goals (SDGs). Based on insight work, stakeholder engagement and findings from a conducted materiality analysis, we have chosen five SDGs (SDG profiles) that we believe we have a real opportunity to have an influence on. These are SDGs 8, 9, 11, 12 and 17. We have also identified SDGs 3, 4, 5, 13 and 14 as targets that we also want to focus on through the multiple roles we play as an employer, social actor, investor, lender, facilitator, and provider of financial services. We will work on reinforcing positive impacts and reducing negative impacts within these SDGs. 

SDG 8: Decent work and economic growth

As a regional savings bank and the largest financial environment between Bergen and Trondheim, Sparebanken Møre is an important source of financial information and financial services for both people and businesses in Nordvestlandet. We take a systematic approach to entrepreneurship and innovation in order to reinforce value creation and employment in our region.

SDG 9: Industry, innovation and infrastructure

In order for Nordvestlandet to be an attractive region in the future, it is important that we work actively to build solid infrastructure, promote inclusive and sustainable industrialisation, and contribute to innovation. Sparebanken Møre wants to be both a driving force, and a supporter of, such activities. 

SDG 11: Sustainable cities and communities

Since its inception in 1843, Sparebanken Møre has contributed to making cities and communities inclusive, safe, resilient and sustainable. This is vital for quality of life, innovation, population growth and value creation. Society needs strong local communities to develop and Sparebanken Møre must be a supporter of local communities.  

SDG 12: Responsible consumption and production

In order to contribute to sustainable regional development, the public sector, the business sector and individuals must change their consumption. As a society, we currently consume more than is environmentally sustainable. Sparebanken Møre wants to help reverse this by increasing knowledge and awareness, setting requirements for customers and suppliers, contributing to research in the area, and taking steps in our own organisation. If we are successful, this could result in economic growth in the long term, mitigate climate change and improve the quality of life.

SDG 17: Partnerships for the goals

Strong new partnerships are needed in order to achieve the SDGs. The authorities, business and local communities must work together to achieve sustainable development. As a major regional player, Sparebanken Møre can make a difference. We want to encourage partnerships and help connect knowledge and relationships across disciplines and industries by creating and supporting various forums. 

Finance Norway – ‘Roadmap for Green Competitiveness in the Financial Sector’

Finance Norway has developed the ‘Roadmap for Green Competitiveness in the Financial Sector’. This expresses the following vision:

“The financial sector of 2030 is profitable and sustainable. We lend, manage and insure with the climate in mind, so creating value and contributing to green competitiveness.”
Sparebanken Møre supports the roadmap and will contribute to the work to achieve both national and global sustainability goals. 

Finance Norway also has working and reference groups related to sustainability and climate risk. Sparebanken Møre took part in these throughout 2020.

The EU’s Sustainable Finance Action Plan

The EU has prepared an action plan for sustainable development in which the EU’s taxonomy is one of ten instruments. In order to contribute to the target of ‘net zero’ greenhouse gas emissions by 2050, Sparebanken Møre will adapt to and follow up the expectations and requirements that follow from this with respect to our stakeholders. We also want to assume the role of driving force in our market area. 

The EU’s Sustainable Finance Action Plan reflects the fact that the financial services sector’s role in the development of society will have to change in order to support the global sustainability agenda. Sparebanken Møre can and will be an important stakeholder when it comes to supporting and facilitating the sustainable development of society. This entails the incorporation of climate and environmental considerations as well as social considerations, respect for human rights and economic responsibility in business activities.

UN Principles for Responsible Banking (PRB)

The UN Environment Programme (UNEP) has a partnership with the financial services sector called the United Nations Environment Programme – Finance Initiative (UNEP FI). The programme consists of six principles that are aimed at making the banking industry capable of assuming a leadership role in achieving the UN Sustainable Development Goals and fulfilling the Paris Agreement. 

Sparebanken Møre signed up to the UNEP FI Principles for Responsible Banking in October 2019. This entails a commitment to implement and carry out measures that support the six principles in the period up to 2023. The bank will publish a self-evaluation report that provides information about the status of this work in April 2021. The report will be reviewed by an independent third party.

UN Guidelines for Business and Human Rights/ OECD Guidelines for Multinational Enterprises

The guidelines are about the responsibility that businesses are expected to assume on behalf of people, society and the environment that are impacted by their activities. The government expects all Norwegian companies to comply with the UN Guidelines for Business and Human Rights (UNGP) and OECD Guidelines for Multinational Enterprises (OECD Guidelines). Sparebanken Møre is Corporate to comply with the guidelines, including through the bank’s ‘Code of Conduct and CSR Policy’. 

Based on the bank’s goal of being a driving force behind sustainable development, SDGs 8, 9, 11, 12 and 17, and material topics, Sparebanken Møre has the following strategic goals for the strategy period:

Us:

• We are actively working to reduce our greenhouse gas emissions (CO2) by at least 25 per cent in the period 2019 to 2025.
• We will become climate-compensated by the end of 2022 in line with the UN’s Climate Neutral Now initiative.
• We are actively striving for gender equality and diversity and have a long-term ambition of achieving at least 40 per cent of each gender at all levels.
• Sustainability is an integral part of all innovation and development processes.
• We emphasise openness and transparency in our communication. 

Customers and suppliers:

• We offer our customers sustainable products and services.
• Employees have the expertise to advise customers on sustainable options that contribute to restructuring and potential new business opportunities. 
• An ESG assessment is conducted at least once a year for corporate customers with credit exposure above a threshold. The development must be measured annually. 
• We will issue green bonds.
• Our major suppliers will submit an ESG supplier statement every year. 

Society:

• Sustainability is an important assessment criterion for the distribution of dividend funds for local communities.
• Sustainability is included as a separate point in all sponsorship agreements. 
• We take the initiative regarding, and support, good sustainability projects in Nordvestlandet.
• We actively contribute to reducing financial crime, money laundering and corruption.

The strategic targets cover areas within the environment (Environmental), society (Social) and governing factors (Governance). 

As a consequence of the materiality analysis that was conducted, our chosen SDGs and long-term strategy, ten topics have been defined as particularly important for both the bank and our stakeholders. This chapter presents the topics in more detail in accordance with the GRI standard. 

The most material topics are:

• Financial results
• Contribution to business development
• Supporter of the local community
• Open and ethical business
• Responsible lending
• Equality and diversity
• Expertise and restructuring
• Preventing financial crime and corruption 
• Requirements for vendor/suppliers
• Climate and environment

The descriptions of the various topics contain information about:

• Why the topic is important
• Measures implemented in 2020
• Planned measures going forward 
• Measurement and evaluation
• Responsible unit(s)
• Key governing documents
• GRI indicators 

Good financial performance is a prerequisite for the bank’s existence and is crucial when it comes to us being able to facilitate value creation in our area. The topic is, therefore, very important for both the bank and our stakeholders. 

We have owners who expect a return on their investments, and we have lenders who lend us money based on the bank’s profitability and financial strength. We also have customers who want competitive terms, at the same time as our employees are interested in having a good, reliable employer. Good financial performance is also important when it comes to us being able to support our local communities through the bank’s social engagement.

The financial targets for the strategy period 2020-2024 are a return on equity of more than 11 per cent and a cost income ratio of less than 40 per cent. The goal is also to achieve a lower level of losses than the average for Norwegian banks.  

There is detailed information about the topic ‘Financial results’ in the bank’s annual report, see the references in the GRI index.

The bank is a significant contributor to regional business development and value creation. Both through social engagement (entrepreneur programme, support for meeting places and the NÆRINGSTEFT concept) and through ordinary lending activities, participation in the Growth Guarantee Scheme and various skills development measures, we contribute to SDG 8 regarding economic growth, SDG 9 regarding innovation and infrastructure, and SDG 11 regarding sustainable cities and local communities.

Nordvestlandet has a competitive business sector and many of the companies are leaders within their industries. The bank’s corporate advisers are locals and have specialised in individual industries. We have done this to understand their needs and to be able to be active sparring partners in a company’s development. At the same time, the bank wants to create meeting places where companies in different industries and specialist environments can meet. This provides motivation and a basis for developing innovation and cooperation.  

Another important job the bank has is to contribute to the creation of new companies. Through the NÆRINGSTEFT programme, the bank is mobilising broadly to motivate spin-offs and create viable new companies. Implementation of the fourth round of NÆRINGSTEFT started in 2020 and a total of 484 companies have taken part in the programme since its inception in 2017. This has created new jobs through several companies in Nordvestlandet. 

Measures implemented in 2020

Sparebanken Møre has around 6,300 active corporate customers spread across three geographical units and six different branches. In 2020, our 49 corporate advisers invited to and conducted conversations with around 3,000 customers. We also have a separate customer service unit for the corporate market, which talks to the customers every day.

A close dialogue with the customers was particularly important in 2020 in order for us to be there and provide support to our customers in relation to the impact of Covid-19. As an immediate measure for customers, we introduced a simplified application process for interest-only periods to provide relief at a phase of the crisis that was fraught with uncertainty for companies. We maintained a close dialogue with the customers and followed up their use of the measures that were established. It was important for us to be a good sparring partner for the companies while they were facing an unclear situation and we therefore worked closely with companies in the region throughout 2020, both through one-to-one conversations and also through regular newsletters, articles and webinars.  

Programme for entrepreneurs, investors and growth companies

NÆRINGSTEFT is a skills journey and competition organised by Sparebanken Møre for entrepreneurs in an early phase in Nordvestlandet. Some 99 companies were part of the programme in 2019/2020. For 2020/2021, 64 companies are taking part. While this is fewer than the previous year, we are very pleased with the number of companies taking part in this year’s programme, which will be a purely digital programme due to Covid-19. Giving these entrepreneurs access to mentors from academia, public support systems, established business and investor environments gives them opportunities to develop with greater power and speed than they might have managed alone. The programme touches on SDG 8 regarding economic growth and SDG 9 regarding innovation and infrastructure. It also facilitates networking and collaborations across the companies in line with SDG 17 regarding partnerships. Generally, sustainability must be an integral part of the business ideas behind the companies taking part in NÆRINGSTEFT.

Together with Innovation Norway, PIR Invest, DNB and Startup Norway, we arranged the Angel Challenge course for investors who want to invest in startups. This is a place where early phase growth companies and local investors can meet. Increasing access to capital that is not risk averse in an early phase and engaging a broader range of investors, also increases the opportunities for more companies to grow.  At the same time, we are laying the groundwork that ensures a larger proportion of local capital can be invested in local new businesses. In 2020, 12 entrepreneurial teams took part in the skills programme, which has resulted in several new partnerships. In this programme, good forces come together to contribute to the development of the region in line with SDGs 8, 9 and 17.  

A Scale Up programme has also been conducted for 20 growth companies in cooperation with ProtoMore Kunnskapspark AS. This programme was largely reserved for entrepreneurs in Romsdal/ Nordmøre. The programme helps companies grow by contributing expertise and mentoring.

Meeting places

Business-related meeting places are important for inspiring innovation, cooperation and sustainable restructuring. Meeting places become highly relevant when they are targeted at individual industries. In 2020, Sparebanken Møre contributed to the Midsund Conference – fisheries, The Next Wave – marine industries, FARM – agricultural conference, IDC – industrial design conference and Byggebørsen – real estate, building and construction, to name just a few. In 2020, many of these paid extra attention to how the industries will be impacted by sustainability and how restructuring can take place. Many of them were organised differently due to Covid-19. 

Innovation Norway's Growth Guarantee Scheme

Innovation Norway has been testing the Growth Guarantee Scheme in collaboration with selected banks since 2017. Sparebanken Møre was admitted to the programme in 2018, and at that time received a budget of NOK 50 million that was earmarked for growth companies in an early phase in Nordvestlandet. In 2020, Sparebanken Møre’s grant was increased by NOK 125 million. Some 26 companies have received loans in Sparebanken Møre through the Growth Guarantee Scheme since 2018.

Cooperation

We also work with, among others, the cluster programme, NCE Blue Legasea. The project has three sub-projects that are contributing to the development of the marine/biomarine industry, sustainable development, increased value creation and meeting places for business. More and expanded collaboration with the business associations in the county has also resulted in industry-related activities. Sparebanken Møre is also involved in the associations’ boards.

Planned measures

The NÆRINGSTEFT programme will continue and the fourth round will end in March 2021. At that time, the three finalists and ultimate winner of NOK 1 million will be announced. Until then, 64 companies will continue on their skills journey, which is a digital one this time due to Covid-19. A new round of NÆRINGSTEFT is scheduled to start in autumn 2021. 

The local Angel Challenge programme will be evaluated in relation to being continued in autumn 2021. The Scale Up programme in cooperation with ProtoMore will be evaluated in relation to being continued from 2022. 

In line with SDG 17, contributions to meeting places and conferences are important for the development of the region and for sharing expertise and networking both within and across industries. Support and cooperation on these conferences are important and the plan is to hold them in autumn 2021. 

The collaboration with the cluster programme NCE Blue Legasea will continue in 2021. This is a cluster programme that is designed to promote the sustainable development of marine products in Norway. The programme is working towards SDGs 2, 3, 9, 12, 14 and 17.

Thematic seminars will be conducted for corporate customers within relevant topics. This will be a combination of a digital and in-person events. The good strong collaboration with the business associations will be continued and expanded to include more joint activities. 

The Growth Guarantee Scheme has proved to be a good offer and a good fit for growth companies. We are aiming to continue this scheme in collaboration with Innovation Norway for a new period. 

Measurement and evaluation

Our events attract a lot of interest and participants. We also always evaluate them and take the feedback from participants and partners into consideration in our subsequent work. Our activities are aimed at contributing to business development in the region. More knowledge about sustainability, innovation and restructuring capacity have therefore been important elements. 

Responsible unit(s) 

The Corporate Banking Division, Communications and Group Support Division, Communications and CSR Dept.

Governing documents

• 
  Møre 2024 (Group strategy)
• Guidelines for the use of dividend funds for local communities
• Credit Risk Strategy

GRI indicators: 

103-1, 103-2, 103-3, SBM-N1, SBM-N2

Sparebanken Møre has been deeply involved in building attractive and sustainable local communities for many years. In addition to the bank’s sponsorship agreements with more than hundreds teams and organisations in the region, Sparebanken Møre provides support for projects in the region, large and small, through its distribution of dividend funds for local communities. 

The dividend funds for local communities are made possible by the bank’s ownership structure. Sparebanken Møre has two groups of owners, equity certificate holders and local communities, and the bank’s dividend policy stipulates that the groups should be treated equally. Since the local communities in Møre og Romsdal own about 50 per cent of Sparebanken Møre, half of the bank’s profits are returned to the region through dividend funds for local communities for good causes. As a result, the bank is a significant contributor to good initiatives within culture, sports, the local environment, infrastructure, skills and business development in Nordvestlandet. The bank has chosen to divide the dividend funds for local communities into the following concepts: TEFT funds, TEFT grants and NÆRINGSTEFT. 

Measures implemented in 2020  

Sponsorships 

Sparebanken Møre is a major sponsor in Nordvestlandet and has agreements with around 120 teams and organisations, large and small, within sports and culture in our market area. All new sponsorship agreements signed in 2019 and 2020 included a section devoted to sustainability in which we emphasise sustainable financial management, measures for diversity and equality, and cutting greenhouse gas and environmentally harmful emissions in our follow-up. The football clubs Aalesunds FK and Molde FK, which we extended new general partnership agreements with in 2020, have corresponding obligations. This is about cooperation on sustainability projects with other partners and the clubs’ local communities. A result of the bank’s focus over several years.

TEFT funds

Clubs and organisations in Møre og Romsdal can apply for TEFT funds for good causes. NOK 141 million was allocated to dividend funds for local communities for the 2020 accounting year and the bank received a total of 1,622 applications, of which 1,144 were granted (70 per cent). Around 10 per cent of these went straight to Covid-19 related projects. Even though the number of in-person events was substantially smaller in 2020 due to Covid-19, the number of applications was about the same as before. We have seen many organisers adopt digital solutions to reach out to their target groups. This makes the bank an important supporter of the development of sustainable local communities. In addition to this, many of the projects involve initiatives related to good health and quality of life, equal opportunities, good education, less inequality and exclusion.

The applications cover a wide range of goals and include support for local outdoor measures such as building and improving hiking trails, constructing temporary forest shelters for hikers made of natural materials and other measures aimed at improving hiking destinations in the region. Sports clubs apply for support for maintaining facilities or constructing new ones and buying equipment, as well as support for hosting events. Cultural organisations generally apply for support to put on events and to purchase instruments, costumes and so on. The bank has previously supported organisations involved in various forms of relief work in the county, and in 2020 we formalised several such larger partnerships with the Church City Mission, the Norwegian Red Cross Search and Rescue Corps, and the Church’s SOS. We did so to help those who have been left behind and to support those who focus on physical health and exclusion. 

Examples of sustainability projects that Sparebanken Møre has supported in the past year:

Scoring municipalities’ sustainability performance with the U4SSC programme

During the summer and autumn of 2020, every municipality in Møre og Romsdal was scored on a number of sustainability indicators in line with the EU programme United for Smart and Sustainable Cities (U4SSC). It is the first county in Norway in which every municipality has been surveyed in this way and this helps to form a good picture of the sustainability challenges and opportunities in the region. 

In pursuit of the sustainability method

The ‘Jakta på bærekraftsmetoden’ [In pursuit of the sustainability method] project is an extension of the collaboration with the UN United Future Lab and KPI measurements of municipalities in Møre og Romsdal. Sparebanken Møre has contributed both funds and professional resources to this project. This is a pilot project being carried out in Møre og Romsdal with the goal of increasing the interaction between the public sector, academia and the business sector in order to accelerate sustainable development. The project has particularly focused on the circular economy, equalising disparities and waste. 

Sparebanken Møre is a partner of United Future Lab Norway

The lab has been established in Ålesund and is the second future lab for developing sustainable cities and local communities in line with the UN’s United for Smart and Sustainable Cities (U4SSC) programme. The first lab was established in Vienna. United Future Lab Norway has partners in a number of different industries and from different parts of Norway. The goal is for the lab to function as an ecosystem for green restructuring. Sparebanken Møre is on the cooperation board with the other partners and has also been selected together with six others to make up the Future Board. 

Self-initiated project – ‘Plastkonto’ 

Sparebanken Møre supports all forms of marine waste clean-up carried out by private individuals in clubs and associations. The ‘Plastkonto’ concept we established in late autumn 2020 is a special scheme for cleaning up tidal areas. Everyone who filled a container with marine waste received NOK 16,000 as a contribution to the voluntary organisation that organised the various clean-up projects. A total of 5,500 kg of marine waste was collected through the Plastkonto project in 2020. 

Clean up of marine waste

Roer Martin Helseth has trained young people in freediving for the purpose of cleaning up marine waste, with support from the Bank. We also continued our collaboration with the Summer Festival on Giske, which focuses on collecting ocean plastics and was started in 2019. The project involved buying festival passes with handed in ocean plastics and fulfils both the climate goals and the goal of reducing exclusion. The project gained a lot of international coverage in 2019 and inspired many others to do the same thing. In 2020, this amounted to 2,200 kg of marine waste. 

NOK 15 million for a PET scanner

In April 2020, Sparebanken Møre donated NOK 15 million for the purchase of a PET scanner at Ålesund Hospital. The association "Sjukhuset Vårt" started a fundraising campaign in 2019 with the goal of raising NOK 30 million for the purpose. The target was achieved towards the end of 2020, and a total of NOK 36 million was raised from local businesses and private individuals. Sparebanken Møre’s donation was a big step in realising the goal. 

250 tablets computers for hospitals and 24-hour care sheltered homes

Bans on visiting nursing and care homes were introduced early on in the Covid-19 pandemic. Many seniors lost the opportunity to spend in-person time with their families for a long time. Sparebanken Møre bought 250 tablets that were distributed to nursing and care homes to strengthen family contact. This was done in cooperation with the Development Centre for Home Services and Nursing Homes in Møre og Romsdal (USHT) and the Arena for Learning about Welfare Technology (ALV), which will also carry out research into how important tablet use is for family contact. 

Møre og Romsdal Red Cross 

In spring 2020, Sparebanken Møre contacted Møre og Romsdal Red Cross with a wish, because of Covid-19, to support in particular the work the Red Cross Search and Rescue Corps were doing in the region. As a result of this, 13 defibrillators, four whiteboard charts for rescue missions, etc. and four tablet computers were purchased for use in their daily work. 

A boost for women’s football in the county

Through dialogue and cooperation with Sunnmøre Fotballkrets, Nordmøre and Romsdal Fotballkrets, Molde FK and AaFK Fortuna, Sparebanken Møre has been an important conversation partner and premise setter for women’s football in the county. We donated NOK 8 million to this effort for the period 2019-2021 and measures have been implemented in districts, grassroots clubs and elite clubs. The initiative is intended to equalise disparities and fulfil both SDG 5 regarding gender equality and SDG 10 regarding reduced inequalities.

Collaboration with academia and research

TEFT-lab

TEFT-lab is a research project with the Norwegian University of Science and Technology (NTNU) in Ålesund and a hub for research and development within service innovation, entrepreneurship, finances and technology. In this we are researching the opportunities the technological shift is presenting and taking an active part in education, research, innovation and dissemination in the intersection between economics and technology. TEFT-lab has brought together seven PhD candidates, one of which is a business candidate from Sparebanken Møre. In addition, 15 researchers from NTNU are linked to the research environment in TEFT-lab. 

Support for research projects at NTNU

In 2020, Sparebanken Møre supported two research projects at NTNU Ålesund related to climate change in oceans. The first project uses big data and machine learning to model plastic in the ocean in Møre og Romsdal, while the other project ‘Microfish’ has three goals. Research into pollutants and microplastics in fish is one, while opening up the university to children and young people and disseminating knowledge to them about active participation in a real research project is the second. In addition to this, it will research what raw data children and young people can collect for analyses of pollutants and microplastics in fish. 

Teaching personal finances and entrepreneurship

As Young Entrepreneurship Møre og Romsdal’s main partner, we are helping to improve the personal finances skills of pupils in both primary and secondary schools. Every school year, nearly 3,000 pupils receive training through the ‘Economy and Career Choices’ and ‘Boss of Your Life’ programmes. Around 50 authorised financial advisers contribute to the teaching in schools. As a result of Covid-19, most of the courses planned for 2020 were postponed until 2021. Sparebanken Møre also participates as a supervisor and jury in the entrepreneurship programmes of Young Entrepreneurship. 

Greater interest in science

Through supporting the establishment of the Newton Room and several creator workshops, as well as the First Lego League – the world’s largest technology tournament for children, we also want to contribute to the joy of learning and scientific expertise. We also regularly visit schools to give talks on both economics and macroeconomics. 

NÆRINGSTEFT

NÆRINGSTEFTis a skills journey and competition for entrepreneurs aimed at contributing to a greater diversity of entrepreneurs and growth companies in the region. Some 64 teams of entrepreneurs took part in 2020. Otherwise, see the supplementary information about NÆRINGSTEFT in the section on ‘Contribution to business development’. 

TEFT grants

Talented young people are good role models for the people around them and through TEFT grants we give young people an opportunity to pursue their talent within the categories of sports, culture and an open class. In 2020, the grants were for NOK 50,000 and 15 young people were awarded a total of NOK 750,000. In our experience, the scholarships are very important for the recipients’ development, and we maintain a close dialogue with, among others, the districts in the county in the jury work. The recipients themselves express delight in being seen and say that this motivates them to do work beyond the scholarship. Since its inception in 2007, more than 350 talented locals have received TEFT grants. Previous recipients include Sigrid Raabe, Karsten Warholm and Sebastian Foss Solevåg.

Planned measures

Sparebanken Møre plans to continue a number of the measures mentioned above, and also constantly reviews new measures directly related to priority sustainability goals. We also give weight to projects in which multiple stakeholders are working together to achieve the goals.  

Because of the cancelled classes in schools in 2020, a digital version will be established that can be implemented in 2021. This will ensure that we can make sure that the pupils will not miss out on valuable skills. 

Responsible unit(s)

The Communications and Group Support Unit is responsible for strategy, follow-up and reporting. 

Measurement and evaluation 

Sustainability is a topic in meetings with the bank’s sponsorship recipients. These are conducted at least once a year.  

Reports on dividend funds for local communities are submitted to the Board twice a year. All of the projects awarded funds are subject to evaluation, both underway and prior to any extension of support. A close dialogue is maintained with the larger projects and Sparebanken Møre also participates itself in several of the projects. 

Key governing documents 

• Møre 2024 (Group strategy)
• Guidelines for the use of dividend funds for local communities 
• Code of Conduct and CSR Policy 
• Procedures for sponsorship work

GRI indicators:

103-1,103-2,103-3,413-1,SBM-L1

Sparebanken Møre’s activities depend on the trust of customers, public authorities and the rest of society. The bank therefore works systematically and diligently to secure this through high ethical standards and openness about its intentions, viewpoints, activities and future prospects. 

Sparebanken Møre must demonstrate professionalism and capability throughout its operations. This applies to both the Group’s business operations and the conduct of each individual. All employees and employee representatives must act with due diligence, integrity and objectivity, and must refrain from actions that could diminish trust in the Group. Managers and employee representatives have a particular responsibility and must act as good role models for others.

Measures implemented in 2020

Sparebanken Møre has committed itself to complying with the ‘Good practices in advice and other customer service’, an industry standard administered by FinAut. All employees in contact with customers have reviewed this and there will be a mandatory course for new employees. There will also be a focus on this for both training and control purposes. The bank’s strategy and ‘Code of Conduct and CSR Policy’ provide guidelines for how the bank’s employees should conduct themselves and handle situations involving ethical judgements, human rights, labour rights, equality, social factors, the external environment, and combating money laundering and corruption. The guidelines were updated in 2020. The guidelines are also gone through with all new employees. 

In addition to this, ‘Guidelines for identifying and managing conflicts of interest’ were established. The purpose of these guidelines is to describe the organisational and administrative procedures for identifying, preventing and managing conflicts of interest when financial services are offered, or other activities performed in Sparebanken Møre. 

As a listed group, it is important for Sparebanken Møre to ensure that market participants receive correct, clear, relevant and concurrent information. The bank has its own guidelines for reporting financial and other investor information, and in 2020 the bank’s IR pages were improved to ensure easy access to current information regarding corporate governance, price development and financial results.

The bank’s website was also updated in 2020 to ensure that it complied with the anticipated new EU universal design requirements. We have started work on upgrading the online and mobile banks to adapt to the criteria in the EU web directive. The goal of this work is to make the site more user-friendly, both for those with disabilities (vision and hearing) and for every other customer who uses our pages.

Internally, Sparebanken Møre wants to facilitate an open culture of free speech. It is important that illegal situations, wrongdoing and other adverse situations are uncovered and followed up as early as possible. Sparebanken Møre updated its ‘whistleblowing procedures’ in 2020 and every employee took a NanoLearning course.

Sparebanken Møre is also a signatory to the UNEP FI Principles for Responsible Banking (PRB), which contribute to openness through regular status reporting on ESG factors.

Planned measures

In 2021, the bank will work on developing the bank’s reporting on sustainability and corporate social responsibility further. As a result of the bank signing up to the UNEP FI Principles for Responsible Banking, Sparebanken Møre will publish a self-evaluation including the status of the work in April. The information will be reviewed by an independent third party and made available on the bank’s website. 

An updated version of the ‘Code of Conduct and CSR Policy’ will be presented to the bank’s Board in the first quarter of 2021. The document will then be reviewed by every employee via NanoLearning and published on the bank’s website. In 2021, every employee will take a NanoLearning course on the ‘Guidelines for identifying and managing conflicts of interest’. Reminders will be sent out to ensure as high a completion rate as possible.

Measurement and evaluation

Every employee of Sparebanken Møre takes regular ethics refresher courses. The Code of Conduct is a topic in employee performance and development interviews. Ethics is also part of the mandatory annual updating for every financial adviser in the Retail Banking Division, Corporate Banking Division and customer service who has to complete the authorisation scheme.

Responsible unit(s) 

The requirement for open and ethical conduct applies to all employees of Sparebanken Møre. The Organisational Development Unit is responsible for the document ‘Code of Conduct and CSR Policy in Sparebanken Møre’.

Key governing documents

• Code of Conduct and CSR Policy
• Guidelines for identifying and managing conflicts of interest
• Guidelines for reporting financial and other investor information
• Whistleblowing procedures
• Overarching sustainability strategy

GRI indicators:

103-1, 103-2, 103-3, 417-2, 417-3, 418-1

Providing loans for retail and corporate customers is the bank’s core activity. Our long-term profitability depends on our customers making responsible choices. As a lender, we have the influence to contribute to sustainable initiatives and solutions. ESG assessments will also be important from a risk management perspective in this work.

The bank’s credit risk strategy stresses that customers’ creditworthiness should be viewed from a long-term perspective. Sparebanken Møre must conduct itself in accordance with high ethical standards and shall not be associated with activities, customers or industries of dubious repute. Sparebanken Møre is open to all types of customers within defined market areas and will not discriminate against customers based
on age, gender, nationality, religion or marital status. 

A number of enterprises the bank has made loans to have operations that will have an impact on the environment. The bank’s provision of credit gives it an indirect opportunity to impact the external environment. Sparebanken Møre must not provide financing to customers:

• with operations within tobacco, pornography, controversial weapons or to companies with significant activities in coal and oil sands
• that we have reason to believe do not comply with the bank’s Code of Conduct or that in some other manner operate activities that conflict with general perceptions of good ethical conduct
• that have acted dishonestly in their dealings with the bank or that are known to have acted dishonestly in their dealings with other stakeholders or where it is known that the company or owners have been involved in criminal activities
• that operate in violation of public acts, regulations and mandatory environmental requirements

Measures implemented in 2020

Sparebanken Møre’s loan portfolio is made up of approximately 70 per cent retail customers and 30 per cent corporate customers. The corporate portfolio is broadly composed within the trade/service industry, industry, marine, real estate and offshore/supply industry sectors. Although the corporate portfolio only accounts for 30 per cent of the bank’s total loan portfolio, it is in relation to corporate customers that the bank can have the greatest influence with respect to sustainability/ESG.

In 2020, we made sustainability a priority on our internal agenda in the bank with respect to granting credit to corporate customers. The year was spent improving expertise and raising awareness, and the topics has, among other things, become one of the bank’s industry strategies. At the very end of the year, the bank also started a project aimed at establishing guidelines and requirements for ESG assessments in connection with granting credit to businesses. A special assessment tool has been developed for this work, which should help to map the bank’s customers in relation to ESG. Analyses and assessments must be documented and included in the basis for making decisions when granting credit or conducting annual reviews of credit commitments. All of the dimensions (ESG) will be included, although the main focus will still be on our customers’ impacts (positive and negative) on the environment and climate. This work will continue in 2021.

We maintain a good dialogue with our customers regarding financing such that they do not through their activities damage the environment, breach human rights or labour rights, and to ensure that they work for anti-corruption and transparency. The goal is to avoid harm to people, society and the environment. This will be further strengthened in 2021 through, among other things, implementing ESG assessments in credit ratings that will address the requirements of PRB, OECD and other frameworks. 

We established our first green framework in 2020. The green framework encompasses both Sparebanken Møre and its wholly owned subsidiary Møre Boligkreditt AS. Funds in the green framework will be used to finance and/or refinance loans linked to energy efficient homes and commercial buildings, renewable energy, as well as loans to environmentally efficient and circular economy adapted products and services, and processes in the aquaculture industry. Swedbank helped to draw up the framework, Multiconsult submitted its technical report and the framework has been independently assessed by Sustainalytics. 

The Covid-19 situation and shutdown of Norway in March left many companies and retail customers in an uncertain situation. Several companies had to close their doors or experienced decreases in customer numbers, resulting in a drop in earnings and also furloughs for some. Many abruptly faced uncertain future prospects. As an immediate measure, the bank introduced web-based applications for interest-only periods for loans to customers facing such a situation. This provided rapid relief for those who needed it. Interest rate cuts were also moved up in order to make life easier for customers. The customers were followed up closely and via various measures, one-to-one interviews, newsletters, articles and webinars, we focused on providing good support in a difficult situation. 

In 2020, the bank established a sustainability committee, in which the credit environment is represented by the head of credit, the head of corporate banking staff and the head of retail banking staff.

Planned measures

We will continue to focus on training and improving the skills of employees who work with credit in the bank. 

Corporate Banking Division

The work on sustainability within the corporate market will be intensified in 2021. The aforementioned project in which guidelines and requirements for ESG assessment are being established will be completed and implemented during the first half of the year. The objective is to ensure that all loan customers with commitments in excess of a threshold value will be subject to an ESG assessment via a set of questions and evaluations that will be conducted in relation to the individual customer. The assessment form will have a general and an industry-specific part. Unit leaders and advisers are taking part in the preparation of the assessment form. The ESG assessment will result in a customer score and if this indicates a high risk the customer will be required to establish measures/take actions that mitigate its ESG risk. The bank will follow up these measures with the customer. The ESG assessment will be updated at least annually, with more frequent follow-up in high-risk cases. We may find that the bank’s customers’ levels of skills in relation to these issues vary and a good close dialogue with the customers is, therefore, important. 

Further comprehensive training will be provided in connection with the implementation of ESG assessments of the bank’s cooperate customers (loans). The focus will be on learning more about assessing climate-related risks. 

The bank’s industry strategies will also be sharpened in relation to ESG and climate risk assessments in 2021.

Retail Banking Division (RM)

For the Retail Banking Division, sustainable finance is a specific topic in the authorisation scheme. All advisers in the Retail Banking Division are authorised or in the process of gaining authorisation. This means all of them have to complete a sustainability module in their knowledge tests and further knowledge updates. More training modules will also be offered within sustainability-related topics via the Møre Academy in 2021. Several of these will be compulsory modules. 

In 2021, the Retail Banking Division will focus on improving its expertise in sustainability for the benefit of customers, society and the bank through the provision of good customer advice and engagement in sustainability. We will work to ensure that sustainability forms a natural part of the dialogue with the customer. We have to provide customers with good advice that helps them make good, sustainable choices, whether it concerns upgrading homes or investing their funds. The Retail Banking Division must also offer green investment options as well as develop and launch green loans. 

The Retail Banking Division should encourage local trade, use dividend funds for local communities in a smart and sustainable manner, provide training and make customers, school pupils and the rest of society more responsible. Ensuring that customers have a good overview and control of their spending is also an important task for the bank.

The bank currently offers customers several products and services with a social profile. 

• Student loan (consumer loan for study purposes at a lower price)
• Deposit account
• First home mortgage
• Møre young mortgage (cheaper mortgages for customers aged 18-33)
• Mastercard young (credit card for customers aged 18-33 with a lower credit limit and stricter repayment terms)

At year end 2020, the total figures for this portfolio were just under NOK 11 billion, or around 24 per cent of the RM portfolio. 

Customers in the Retail Banking Division also have a personal adviser who follows them up every year with general advice. Our advisers in the Retail Banking Division are authorised for the entire range of services (investments and savings, non-life insurance, personal insurance and credit).

Measurement and evaluation

Around 80 per cent of Sparebanken Møre’s customers have been assigned an account manager who follows them up via a chat at least once a year. In addition, commitments in the Corporate Banking Division exposed to more risk are followed up extra closely. 

The follow-up was close throughout 2020 due to Covid-19 in order to provide assistance in the challenging and unresolved situation that still exists. This has resulted in a deeper understanding of the situations of both our retail and corporate customers.

When we start conducting ESG assessments of corporate customers in 2021, we will be able to tell even more about their status and identify which measures should be implemented in both the short and long term. 

Responsible unit(s) 

Risk Management and Compliance Unit and the Credit Department. 

Key governing documents

The most important governing documents for responsible lending are the credit strategy and credit manual. The credit risk strategy is revised annually. The target frameworks in the strategy and status of credit risk must will be monitored, including through the bank’s monthly risk reports. The credit manual is subject to constant updating/revision. 

GRI indicators:

103-1, 103-2, 103-3, FS7, FS8

This section on equality and diversity and the following section on expertise and restructuring together represent the bank’s reporting in relation to its activity and disclosure duty. 

Equality means equal worth, equal opportunities and equal rights. Diversity in the workplace entails us reflecting the society of which we are a part. 

In Sparebanken Møre, equality and diversity must be integral and natural elements of our personnel policy. Everyone should have equal opportunities, and this must be reflected in our procedures for the working environment, recruitment, pay and working conditions, facilitation, development and promotions. A diverse working environment helps to improve decision-making processes, increases innovation and improves the customer experience. From an external perspective, we want to exercise influence by stipulating requirements for suppliers, customers and partners.

The bank practises zero tolerance for all forms of discrimination, including verbal, physical and sexual harassment, discrimination on the basis of gender, pregnancy, parental leave or adoption, care obligations, ethnicity, age, language, religion, life stance, gender identity, gender expression, sexual orientation or physical disability. We are also interested in practising good, easily accessible whistleblowing procedures.

Of the Group’s total 369 employees in 2020: 223 were women (60.43 per cent) and 146 men (39.56 per cent). The table below shows the gender ratio per position level, stated as percentages (GRI 405-1): 

In 2020, the age composition per position level and stated in percentage was as follows (GRI 405-1). 

The table below shows women’s pay as a percentage of men’s pay in a 100 per cent position at different position levels (GRI 405-2).

Sparebanken Møre must help ensure employees can take statutory leave and wants to promote a more balanced ratio of work and family life among parents. The table below shows the use of parental leave in total number of person-days and as percentage of own gender (GRI 401-3).

Sparebanken Møre wants to contribute to low work-related sick leave through systematic HSE work, good management and a good working environment. We have seen a low doctor-certified sick leave rate over time, which was 3.86 per cent in 2020. The table below shows doctor-certified sick leave as the total number of person-days and as percentage of own gender.

The bank recruited 19 new employees in 2020 (GRI 401-1 a).

16 employees left the bank in 2020 (GRI 401-1 b).

Sparebanken Møre wants to enable employees to work reduced hours if they need to for health, social or welfare reasons. In 2020, 39 out of a total pf 369 employees worked in a reduced position. The bank also had 18 temporary employees. The table below shows recruitment by contract type for the bank and for Møremegling (GRI-102-8).

Measures implemented in 2020

In connection with the stricter requirements for the activity and disclosure duty, all personnel policy documents and procedures have been reviewed in order to identify harassment and discrimination risks. Some measures have either been implemented or plans are being made to implement them in 2021. Part-time employees have also been surveyed. None of the bank’s employees reported working part-time involuntarily. An overview of our general personnel policy procedures and the measures that were implemented in 2020 is provided below.

Working environment

Sparebanken Møre wants to lay the groundwork for jobs created by interested and engaged employees. We are committed to achieving a good working environment through personnel policy measures, employee involvement and development, and well thought through feedback. Good feedback on this and a high level of employee satisfaction will in turn be reflected in a perception of us as an attractive employer.

We measure employee satisfaction every year and analyse the working environment, engagement, management and communication, as well as the risk culture in Sparebanken Møre. The results provide us with an understanding of what we are good at as an organisation and where we could improve. For 2020, we scored 8.3 on a scale from 1-10 in the employee satisfaction survey, which indicates a very good working environment. The results also show that our employees were highly likely to recommend Sparebanken Møre as a place to work.

Recruitment

Sparebanken Møre has designed and applies a recruitment process based on a DNV certified model. The process takes into account the requirements of the Working Environment Act and the Equality and Anti-Discrimination Act. This means, among other things, that it is illegal to discriminate against applicants on the basis of gender, ethnicity, religion, life stance, family planning, disabilities, sexual orientation, gender identity and gender expression. The interview templates used by the HR Department take these matters into account.

Pay and working conditions

The levels of remuneration in Sparebanken Møre should contribute to the Group’s achieving its targets and encourage appropriate conduct. 
Furthermore, the levels of remuneration should act as a means of good management and control in relation to the Group’s risk, counter unwanted risk-taking and contribute to the avoidance of conflicts of interest.

The pay of Sparebanken Møre’s employees is determined by individual agreements, collective bargaining (collective agreements) or administrative decisions. Sparebanken Møre has established key principles for the Group’s remuneration strategy.

The bank’s annual pay review process is intended to minimise the pay gap between women and men. In addition to rewarding good performance, the pay settlement in 2020 focused on equalising larger pay disparities. Health insurance was also introduced as standard for all employees. 

The following components can be included in Sparebanken Møre’s remuneration (GRI 401 -2): 

• Fixed salary
• Variable one-off remuneration based on delivery and performance
• Bonus
• Pension scheme
• Personal insurance
• Common benefits

Promotion and development opportunities

Sparebanken Møre wants to facilitate career development, with both a management and technical orientation, and will focus on both career paths. Quarterly reviews are carried out of substitutes and potential successors of executive personnel. This work must take the breadth of the organisation into account. Annual reviews of the organisation with substitutes and potential successors are also conducted by the bank’s remuneration committee. 

A minimum of four follow-up calls are made each year, one of which is an employee performance and development interview. The working environment survey showed that 95 per cent of those surveyed had employee performance and development interviews in 2020 (GRI 404-3). The information provided to employees in connection with employee performance and development interviews in 2020 highlighted that family planning, sick leave, reporting harassment, ethnicity, religion, life stance and political views must not result in discrimination in connection with promotions and development opportunities. 

Facilitation and balancing work and family life

Sparebanken Møre is working to be an inclusive workplace for employees in all age groups and phases of life. The bank promotes a healthy workplace and encourages physical activity through an active corporate sports club, SMIL, as well as by support employees’ own exercising. Workstations and duties must be adapted when health or other causes dictate it.

Sparebanken Møre must facilitate good corporate health services. The corporate health services provider reports on any areas requiring improvement with respect to the working situation/ergonomics once a year, at an organisational level. As a supplement to the corporate health service, Sparebanken Møre has also signed an agreement on psychologist assistance with an external party.

Sparebanken Møre wants to facilitate a good balance between work and family life. Employees who are on parental leave for a minimum of 5 months are entitled to rise at least one pay grade upon returning to work. The purpose of this provision is to ensure that employees who are on parental leave for a long time do not get left behind as far as pay is concerned, and to motivate people to take longer periods of leave.

We have a flexi-time scheme and practice what we call ‘flexibility both ways’. Employees can also work from home when circumstances dictate. Overall, Sparebanken Møre wants its operations to be based on limited overtime work. We have good social schemes such as a corporate sports club, good personal insurance policies and company cottages/apartments that employees with family can use.

Whistleblowing 

Sparebanken Møre wants to facilitate an open culture of free speech. A good climate for free speech is important for the working environment, the well-being of individuals and in achieving the best possible operations. It is important that illegal situations, wrongdoing and other adverse situations are uncovered and followed up as early as possible. Sparebanken Møre focuses on making employees feel confident that addressing adverse situations is a natural element of an individual’s responsibilities in the workplace.

Sparebanken Møre has good whistleblowing routines that are designed to facilitate secure and proper whistleblowing. Employees have a statutory right pursuant to the Working Environment Act to report unacceptable conditions in the workplace, and in some cases employees also have a statutory duty to report, including in case of suspected bullying, harassment or discrimination. The whistleblowing procedures are made available to all employees via the intranet. All employees also receive regular training in our whistleblowing procedures via e-learning courses. No notifications or reports of cases of discrimination were received in 2020 (GRI 406-1). 

Planned measures

The overall impression from reviewing the personnel policy documents and procedures is that Sparebanken Møre has good guidelines, principles and standards that address diversity, equality and non-discrimination considerations. Naturally, these will, therefore, continue to guide our personnel policies going forward. 

We can, however, see areas where improvements are needed that will be included in the plans for next year. Sparebanken Møre currently has no specific guidelines for its work on equality and diversity, and it therefore plans to draw up specific guidelines for this in 2021. The guidelines should provide a framework for both its internal work and for its work with suppliers, customers and partners. 

Working environment

Sparebanken Møre will strive to maintain the good working environment in the organisation and has set itself the goal of keeping employee satisfaction and loyalty high in 2021. 

Sparebanken Møre has a tradition of involving employees in implementing the bank’s strategy through the preparation of separate departmental plans with associated employee or management agreements. For 2021, it has set itself the goal of ensuring that employees are also more involved in the actual formulation of the bank’s strategy. 

Recruitment

The gender ratio between women and men shows that the largest proportion of women can be found at level 5 (73 per cent) while the largest proportion of men is at level 2 (67 per cent). Sparebanken Møre wants a more even gender composition and, therefore, has set itself a long-term goal of having at least 40 per cent of each gender at all levels in the bank.

It will also conduct a separate project related to diversity in the context of recruitment. The purpose will be to encourage more groups of applicants to apply for vacant positions in the bank to ensure that we can better promote inclusion and reflect the diversity of the population. 

Interview templates used by the HR Department take account of the requirements of the Working Environment Act and the Anti-Discrimination Act. In 2021, we will also provide all of the bank’s employees who participate in the recruitment process clearer information about the questions people cannot be asked.

Pay and working conditions

In addition to rewarding good performance, there will be a greater focus on equalising larger pay disparities in2021. 

Promotion and development opportunities

In order to achieve the equalisation of gender differences at the different levels in the bank, the bank has an ambition for each list of successors to contain at least 40 per cent of each gender. It has also been proposed in the bank’s strategy that employees’ career plans and the development of talented people should be followed up more systematically and uniformly in the Group.

Facilitation and balancing work and family life

In the Covid-19 survey, more than 80 per cent of the employees who have been working from home responded that they want to continue this option to increase the flexibility in their working day. In 2021, Sparebanken Møre will draw up guidelines for working from home in a normal situation. The guidelines will ensure greater flexibility in people’s everyday lives and at the same time safeguard the secure and efficient operations of the Bank.

Measurement and evaluation

Gender distribution and pay situation per position level, use of parental leave, sick leave, number of full-time and part-time employees, number of reports and the results of the working environment survey will be followed up every year. Equalising gender disparities per level is an important strategic objective for the bank and there will, therefore, be a greater focus on this in the annual evaluation of measures. 

Responsible unit(s) 

Measures for equality and diversity are initiated and followed up by the Organizational Department. Significant changes to rights that affect the bank’s employees must be approved by the executive management group and employee representatives, and possibly be considered by the remuneration committee and approved by the bank’s Board of Directors.

The remuneration committee is elected by and from among the Board’s members and is intended to contribute to thorough and independent consideration of matters relating to the remuneration of executive personnel, etc. in the bank. A recruitment committee has also been established in line with the main agreement between Finance Norway and the Finance Sector Union of Norway. The committee deals with pay and working conditions upon recruitment and assesses employees’ pay conditions on an annual basis. 

Both of the above committees must take account of gender equality and non-discrimination in relation to pay and working conditions.

Governing documents

The governing legislation is the Working Environment Act and the Equality and Anti-Discrimination Act. The employees’ conditions are also governed by the main agreement between Finance Norway and the Finance Sector Union of Norway. The most important governing documents are the Company Agreement signed between the executive management group and employee representatives in Sparebanken Møre, the Personnel Handbook, the guidelines for remuneration system, the Code of Conduct and CSR Policy and the bank’s strategy. 

GRI indicators:

102-8, 103-1, 103-2, 103-3, 401-1, 401-2, 401-3, 405-1, 405-2, 406-1

Expertise and restructuring should contribute to good corporate governance, high quality advice, and the bank meeting changes in customer behaviour, regulatory changes, and changes in the competition situation in a good, effective manner.

Measures implemented in 2020 

Employees who advise customers are authorised within various technical areas defined by FinAut. The bank has 243 employees authorised within savings and investments, 179 authorised within non-life insurance, 191 authorised within credit and 141 authorised within personal insurance. Knowledge is maintained through annual update tests and 900 tests were taken in 2020.

18 new employees started the authorisation process in 2020. Good mentor schemes have been established with experienced advisers, which provide employees with a good start in their role of adviser. 

In 2020, 46 training measures were implemented, with 17 morning meetings via Skype to reach out to all employees in our decentralised office structure. Relevant topics included unstructured data, CRM, digital customer surfaces, personal insurance policies and sustainability. Short e-learning courses were conducted each month within information security, AML and HSE. Advisers in the Retail Banking Division have completed a training course within pensions and all employees have taken a learning module on sustainability. A communication course has been conducted involving theory and practical training with a case tailored to the employee’s specific work situation.

The bank has its own development programme for managers and employees involving a practical approach to everyone’s workday and what they need and want to develop in relation to. The programme includes topics within management and communication. Three management values have been implemented in the organisation. To achieve our objectives, we depend on managers who inspire employees to achieve their goals, develop effective teams, as well as the employees’ skills and confidence, and who perform through their employees with the help of follow-up and clear feedback.

In 2020, employee appraisal and development interviews were carried out with an in-person meeting, followed by a digital meeting. As a result of the Covid-19 pandemic, the bank’s managers received specific information on managing people working from home and managing at a distance. Webinars on mental health were also conducted as provision for the entire organisation, which garnered a good response.
 
Skills enhancement in specialist and technical roles are systematically directed to learning arenas such as conferences, workshops and studies/further education. During a 5-year period, 24 employees have participated in higher education courses with support from the bank, including a PhD candidate in industrial economics and technology management, as well as a study contract for the programme ‘Sustainability as a competitive advantage’. The gender distribution among those who have taken further education is 70 per cent women and 30 per cent men.

Planned measures

The skills plan for 2021 is based on the new skills requirements based on important future competencies. Management development, training programmes, sustainability, learning environment and teamwork will be important. Key basic competencies will be digital skills and defined personal characteristics. There will still be a need for greater skills within advice on inheritance, tax and pensions. Legislation and regulations are matters we assume we will have to take account of. 

Authorisation in your own role is a requirement for new recruits, and many new employees have to complete a programme of courses in up to four authorisation schemes. Those who are already authorised have to undergo annual skills refreshers. Authorisations will be an ongoing, priority task in 2021 as well.

Measurement and evaluation

The skills work is steered by the Møre Academy’s steering group through decisions on the annual skills plan and follow-up in steering group meetings. The Compliance Department conducts a review and reports to FinAut annually. The CEO’s executive management group and the bank’s Board of Directors evaluate and approve the skills budget and strategy within organisational development.

The skills work is highlighted and measured using the Møre Academy’s annual wheel. This is a practical monitoring tool for initiating and completing skills measures. The skills work is also measured through authorisations achieved and completed skills updates, e-learning courses and other skills measures. Reports are produced on the completion of key skills measures.

Responsible unit(s) 

Skills development is carried out under the auspices of the bank’s own Møre Academy. It has a steering group that consists of senior managers who assist in the skills work and prioritise targeted skills measures.

Governing documents

The bank’s organisational development strategy provides a framework for the focus on skills. The skills work is managed via an annual skills plan based on development needs within priority skills areas. The skills updates in the four schemes are managed by FinAut and updated subject plans every year. This is followed up by the internal company coordinator. Further education is regulated by separate study contracts.

GRI indicators:

103-1, 103-2, 103-3, 402-1, 404-1, 404-2, 404-3

Combating financial crime, including the laundering of proceeds from criminal activities or the financing of terrorist activities, is demanding and important work. Ensuring that the industry is not exploited for illegal purposes through its services and products is part of the financial services industry’s social mission, and as a financial institution we are subject to a number of laws and requirements linked to combating corruption and other types of financial crime such as fraud, work-related crime and money laundering. 

This is a high priority area in Sparebanken Møre. Our goal is to reduce the financial losses suffered by society, the bank and the bank’s customers, and all of our stakeholders must be confident that we have a high level of expertise and secure services and solutions.

Sparebanken Møre itself must demonstrate high ethical standards and we practise a policy of zero tolerance regarding internal irregularities. We must not be associated with activities, customers or industries with questionable reputations. 

We detect fraud, crime and rapid transfers of proceeds on a daily basis. This means that we need to be vigilant in our work and monitor in order to prevent both the bank and customers being exposed to fraud and swindles. 

Measures implemented in 2020 

The work on combating financial crime requires a high degree of expertise and during 2020 extensive work was done on the bank’s guidelines and training employees in relation to these. The training takes place in, for example, forums and departmental meetings, as well as via digital tools. The year 2020 was marked by the Covid-19 pandemic and the government’s support and compensation scheme can be tempting for criminals. The bank has carried out extra checks on customers who used these schemes.  

In 2020, the bank also strengthened its efforts in the area by establishing a new Financial Crime Department. The department has a comprehensive responsibility to identify and manage the risk picture. Sparebanken Møre has also appointed a dedicated anti-money laundering coordinator.

Sparebanken Møre registers instances of internal and external fraud. No instances involving internal fraud were registered in 2020, while 394 instances involving external fraud were registered. The number of fraud cases in the bank where someone has, or has tried to, deceive customers is stable. The bank assists customers who report fraud to us. 

Internal risk assessments have also been carried out, including for money laundering and terrorist financing and operational risk, with associated risk mitigation measures. These are broadly anchored in the bank and result in good discussions and help to improve the employees’ expertise and vigilance. The risk of internal fraud and corruption is assessed but is considered insignificant. The bank did not identify any cases of corruption in 2020.

Planned measures

The bank will prioritise its work on combating money laundering and terrorist financing in cooperation with the authorities. In connection with the establishment of our dedicated Financial Crime Department, we will further strengthen and coordinate the work on dealing with fraud. In 2021, we will continue the job of raising employee awareness about this important topic and various training measures will be continued and implemented. We are constantly working to prevent fraud and unwanted criminal activities. 

Measurement and evaluation

The work is monitored closely and reported on by employees, the bank’s management, internal and external auditors and the Financial Supervisory Authority of Norway.

Annual internal evaluations are conducted when revising guidelines and procedures, and period independent evaluations of the area’s compliance with the management system conducted by auditors or supervisory authorities.

Responsible unit(s)

Business Support Unit, Financial Crime Department. 

Key governing documents

Activities are governed by legislation, guidelines and procedures intended to prevent it from being used for corruption, money laundering, tax evasion or terrorist financing. The most important internal documents are the following:

• Guidelines for the work on combating money laundering and terrorist financing
• Measures against money laundering and terrorist financing when establishing and expanding customer relationships
• Code of Conduct and CSR Policy

GRI indicators:

103-1,103-2,103-3, 205-2, 205-3

Sparebanken Møre wants to be a total provider of the best financial services and have the best partners, and the bank has chosen a contract banking strategy. This gives it the flexibility to choose to operate and develop services for itself, or together with partners where this is considered to be the best option. 

Overall, Sparebanken Møre has 150 regular suppliers, large and small, which means that the bank has the power to push development in the right direction by influencing how the various stakeholders take responsibility for sustainable development and value creation. Through setting requirements, following up and cooperating, we want to ensure that our suppliers and partners comply with Norwegian law and recognised norms of corporate social responsibility, as well as binding international agreements and conventions. 

Goods and services that are delivered to Sparebanken Møre must be produced in circumstances consistent with the requirements enshrined in the bank’s Code of Conduct and corporate social responsibility. These are followed up in dialogues with our suppliers. We want to further formalise our follow-up in this area so that customers can feel confident that the bank has control over its entire value chain, including where we use partners to deliver products and services. 
 
As far as the bank’s fund providers are concerned, there is a close dialogue between the bank and the various providers throughout the year. Sparebanken Møre does not manage funds itself, rather it provides funds to customers through its fund providers: Alfred Berg Kapitalforvaltning, DNB Asset Management and Holberg Fondsforvaltning. The bank must help fund managers encourage the various companies to deliver good long-term returns while also ensuring sustainable development. Our fund providers have signed the following commitments: 

• Holberg – UN Principles for Responsible Investments (UNPRI) 
• Alfred Berg – Socially Responsible Investment (SRI) 
• DNB - UN PRI, UN Principles for Responsible Investments

Measures implemented in 2020

In 2020, efforts were made to incorporate requirements and attitudes related to sustainability. Procedures and guidelines have been established to ensure that sustainability is surveyed and assessed in purchasing processes for ICT solutions, and that sustainability is one of eight criteria that are applied when considering new partners. 

Partner meetings have been held with all of the bank’s fund providers, all of which presented the measures they have implemented and the goals they have defined for sustainable investments. We have also entered into agreements with new fund providers, Storebrand Asset Management and SKAGEN, which will be launched in the first quarter of 2021. These have worked diligently and systematically on sustainability for many years, which was a key factor in our overall assessment. They have also signed up to UN PRI. 

Sustainability is high on the agenda in the follow-up of other suppliers as well. The following environmental criteria apply when purchasing physical products:

• Suppliers must, wherever possible, use products that can be reused
• Products must have a life cycle with a low environmental impact 
• Unnecessary packaging must be avoided
• Suppliers must actively work to minimise their negative impact on the external environment
• Shipping options that have a low environmental impact must be chosen

Planned measures

In 2021, the bank has a clear goal of obtaining an even better overview of how our main suppliers work within various ESG areas. The bank will require suppliers of products and services to submit a self-declaration that explains their work within the environment, social conditions and corporate governance. 

Methods and tools will also be developed in order to follow up suppliers from an ESG perspective.

By 2021, all of the bank’s fund providers will mark their funds in line with EU requirements that define what can be marked as sustainable. Once this is in place, the bank will also mark its funds in order to enable customers to make good, informed choices for themselves and their investments.

Responsible unit(s)

The Business Support Unit is responsible for system, product and service providers. The Treasury and Markets Unit n is responsible for partners for external finance and equity, including risk coverage.

Measurement and evaluation 

The guidelines are subject to annual evaluation, for example the Code of Conduct and CSR Policy are undergoing revision at the start of the new year.  The work is currently measured through dialogues with our suppliers and customers. 

Key governing documents 

• Møre 2024 (Group strategy)
• Procedure for purchasing ICT systems. 
• Partners assessments 
• Code of Conduct and CSR Policy

GRI indicators:

103-1, 103-2, 103-3, 308-1

As a financial services group, Sparebanken Møre has an active relationship with environmental and climate challenges. The Group’s overarching goal for its sustainability work is to ‘be a driving force behind sustainable development’. The Group is committed to contributing to the restructuring work society needs to do to achieve the climate goals for Norway that are set out in the Paris Agreement. Sparebanken Møre’s goal is to become a climate-compensated for group by the end of 2022, in line with the UN Climate Neutral Now initiative. We will also stipulate requirements for customers, suppliers and partners. This will allow us to help achieve the expressed climate goals, both directly and indirectly.  

In order to reduce environmental impact, we both use and invest in technology, including in order to reduce the need for travel. Employees must have the skills necessary to make eco-friendly choices and encourage our stakeholders to do the same. 

Measures implemented in 2020

Sparebanken Møre prepares energy and climate accounts based on the international standard ‘A Corporate Accounting and Reporting Standard’ developed by the Greenhouse Gas Protocol Initiative (GHG protocol). The climate accounts show tonnes of CO2 that are direct and indirect emissions related to the Group, and provide information about greenhouse gas emissions from, for example, from travel, waste management and energy consumption. 

In 2020, the bank significantly intensified its sustainability work and specific targets were established for cutting greenhouse gas emissions from its own operations. Among other things, electricity agreements with guarantees of origin were signed for a majority of the bank’s branches. More recycling stations were installed in its branches during the year and this work will continue in 2021. 

Sparebanken Møre modernised several of its branches in 2020 and the work has been permeated by a conscious attitude towards eco-friendly material choices and the reuse of furniture in line with SDG 12 regarding responsible consumption and production. For example, we reupholstered 36 sofas rather than buy new ones. The work was carried out by a local company (LK Hjelle) and this created ripple effects by inspiring others.

The climate accounts for 2020 show a 38.6 per cent reduction from 2019 to 2020, mainly due to Covid-19 and some minor environmental measures. The Group’s emissions totalled 185.2 tonnes of CO2 equivalents (tCO2e) in 2020. Greenhouse gas emissions were distributed as follows in 2020:

Planned measures

The bank’s climate accounts provide information about the impact of the various sources on the external environment. This provides a good, important starting point for preparing reduction plans. During the course of 2021, we will identify how we can cut our greenhouse gas emissions further and a concrete action plan will be drawn up in line with the requirements of Climate Neutral Now. 

In 2021, we will also start conducting ESG assessments of our corporate portfolio. This will be an important tool for identifying and reducing climate risk in the existing portfolio, and for mapping which sectors, and projects contribute to restructuring and new earning opportunities. We will also stipulate clearer ESG requirements for our suppliers. In the longer term we will also comply with the requirements in TCFD.

We have incorporated sustainability principles into all of our sponsorship agreements and one of these is about having a conscious attitude and measures for cutting greenhouse gas emissions from sports clubs’ activities. We will follow this up with measures for improving understanding for clubs/organisations in 2021 and 2022.

When we upgrade further branches, there will be a focus on reuse and eco-friendly material choices in line with SDG 12 regarding responsible consumption and production and SDG 13 regarding climate action. 

Responsible unit(s) 

Accounts Department, Property Management Department, HR Department, and Communications and CSR Department are responsible for the bank’s climate accounts. 

The bank’s sustainability committee is responsible for preparing concrete action plans to cut the bank’s CO2 emissions. The various measures must state the responsible department. 

Measurement and evaluation 

The climate accounts for 2020 were established in line with the Greenhouse Gas Protocol Initiative (GHG Protocol) for Sparebanken Møre. Given that 2020 was heavily impacted by Covid-19, we will look at the basis from 2019 when we assess measures that can help to cut greenhouse gas emissions further.  

Key governing documents 

• Code of Conduct and CSR Policy
• Overarching sustainability strategy

GRI indicators:

103-1, 103-2, 103-3, 305-1, 305-2, 305-3, 305-4, 305-5, 307-1

The Global Reporting Initiative (GRI) is the leading standard for sustainability reporting. The GRI guidelines consist of principles, guidance and performance indicators that can be used by companies to measure and report on financial, environmental and social factors. 

Sparebanken Møre will report in line with the GRI standard, ‘Core option’, from and including the 2020 accounting year. More information about GRI can be found on globalreporting.org. 

General disclosures

Specific disclosures