The global leader in ESG ratings, Morningstar Sustainalytics, gave Luminor an ESG risk rating of 10,5, thebest rating among major banks in the Baltics.
The Sustainalytics analysis concludes that Luminor Bank has very strong ESG Reporting and has assigned responsibility for overseeing ESG issues at the board level, signaling strong accountability to investors and the public.
Additionally, the company’s executive compensation is tied to ESG performance targets. Furthermore, Luminor Bank has a strong environmental policy, and its whistleblower program is adequate. The company’s overall management of material ESG issues is strong. Luminor´s rating is available here.
“This top rating in Sustainalytics` extensive rating process marks a significant milestone in our steep evolution curve in ESG matters. It shows that our teams are committed, innovative, persistent, and effective in building a sustainable future for our customers, employees, and the environment,”
says Kadri Vunder, Luminor’s Head of Sustainability.
“This also demonstrates that we are on the right track in contributing to the transition to a low carbon economy.”
Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. Their multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of ESG risk, i.e, a total unmanaged ESG risk score or the ESG Risk Rating, comparable across all industries.
“For all the issues in focus, Sustainalytics concludes that the Luminor´s established controls and governance to manage these risks is above the average,”
stated Vunder.
According to Sustainalytics, Luminor Bank has set up a very strong Data Protection Policy and governance structures for managing privacy issues and cybersecurity. Luminor conducts regular employee training on data privacy management and cybersecurity issues. Also, Sustainalytics highlights Luminor Bank’s strong and detailed policy on responsible marketing, informing and educating consumers about all aspects of a product, including negative consequences, and targeting appropriate customers.
For Business Ethics, Sustainalytics concludes that Luminor Bank has adopted a very strong Anti-Bribery and Anti-Corruption Policy. The policy is enforced by a solid program, which includes conducting regular bribery and corruption risk assessments and undertaking due diligence measures before starting a business relationship. The company maintains strong anti-money laundering commitments. Furthermore, employees and external parties can anonymously report suspicions of ethical violations by using the company’s whistleblowing channel without fear of retaliation.
Morningstar Sustainalytics is a global leader in ESG research, ratings, and data, serving the world’s leading institutional investors and corporations. Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes.
Luminor is the leading independent bank in the Baltic states and the third largest provider of financial services in the region. We provide financial services to individuals, families and enterprises. We are new, dynamic and forward-looking just as Estonian, Latvian and Lithuanian markets.
Additional information:
Inese Kronberga
Luminor Public Relations Manager
Tel.: 29215409
E-mail: Inese.Kronberga@luminorgroup.com
