Sustainability risk refers to the risk of loss or lower future income due to sustainability-related events. This includes events in the three categories E, S and G: (E) environment – climate; (S) social – employees, social conditions, and human rights; (G) governance – financial crime and corruption, or circumstances that may have an impact on other risk categories in the operations.

Sustainability risks are not defined as separate risks within Resurs and are managed in accordance with Resurs’s ongoing risk management process, i.e. identification, measurement and evaluation, management, follow-up, and reporting. Resurs’s ambition is for sustainability risks to be managed using a risk-based approach and to be integrated into daily operations. These efforts are guided by national and external regulations and guidelines, particularly those issued by the EU.

Resurs’s most material sustainability risks relate to sustainable and responsible credit lending, the environment and climate, social conditions and human rights, personal data processing and anti-money laundering and terrorist financing.

RISK AREA RISK DESCRIPTION POTENTIAL RISK IMPACT ON RESURS RISK MANAGEMENT MEASURES
ANTI-CORRUPTION
  • Financial crime and corruption.
  • Suspected money laundering, financing of terrorism, fraud, bribery, tax evasion and other serious financial crime.
  • Negative consequences for society at large as well as for the bank.
  • Financial crime and/or corruption could seriously affect public, shareholder, customer, and employee confidence.
  • Loss of corporate and societal benefits.
  • Serious legal and reputational risks.
  • Legal consequences resulting in significant fines, or other sanctions or damages.
  • Resurs’s three levels of control functions, the three lines of defence, to manage the risk of money laundering and other corruption risks and to ensure that Resurs conducts business and enters business relationships on an ethical basis.
  • Special unit, Financial Crime Prevention, whose purpose is to enhance AML efforts and combat financial crime.
  • Continuous monitoring of trends and of financial transactions in Resurs’s systems.
  • Mandatory training to raise awareness among employees.
  • Whistleblower function.
ETHICAL AND RESPONSIBLE BUSINESS
  • Operational information risks and IT system failures.
  • Deficiencies in the management of personal and corporate information in terms of availability, accuracy, confidentiality and/or traceability.
  • Financial consequences resulting from fines or other sanctions or damages.
  • A deterioration of the company’s reputation and customer satisfaction.
  • Information security policies and guidelines in line with comprehensive industry requirements and technical security solutions.
  • Securing of data in accordance with GDPR legislation.
  • Employees’ ability to report via the Group’s proactive risk database.
  • Continual follow-up of events that occur both inside and outside the business.
  • Training of employees and customers to increase awareness of information security threats and risks.
SUSTAINABLE AND RESPONSIBLE CREDIT LENDING
  • Customer has insufficient repayment capacity.
The customer’s case is transferred to an external debt collection company.

  • Over-indebtedness and any non-payment records could have negative consequences for the customer, difficulties in entering contracts, mental illness, etc.
  • Lost income.
  • Damage to Resurs’s brand.
  • Well-documented and well-tested credit assessment models, where we use credit reports, information from the customer and internal data to make systematic assessments of our customers’ repayment capacity.
  • Use of scoring models to calculate and ensure the customer’s current and future repayment capacity.
  • Dedicated debt collection teams tasked with preventing a case from being transferred to debt collection companies at an early stage.
  • Policies and instructions for responsible credit lending.
CLIMATE In the event of climate change

  • Transition risk related to factors such as changes in legislation, changed demand for products and services, changed customer behaviour or other structural changes that take place to transition to a climate-neutral economy.
  • Physical climate risk such as property damage or damage to and decrease in value of assets and collateral.
  • Lost income, a smaller customer base, tarnished reputation, and potentially higher credit losses.
  • The risk of higher damages to and decline in value of assets and sureties as a result of climate change.
  • The operation is exposed to transition risks if Resurs does not succeed in adapting the operation to the sustainable economy of the future, which imposes higher environmental and climate requirements. This also applies to the demand for Resurs’s products and services.
  • Non-compliance with regulations that could lead to legal consequences in the form of fines or other sanctions.
  • Risk Committees identify, monitor, and proactively address potential risks and follow up on previously identified risks and approved actions.
  • Develop and improve the bank’s ability to identify, measure, manage and report risks associated with both physical climate risks and transition risks.
  • Ongoing stakeholder dialogue and inspiration for customers to make sustainable choices.
  • Policies and instructions for responsible credit lending.
ENVIRONMENT Environmental risks are associated with Resurs’s operations and suppliers, as well as the companies Resurs invests in and loans to. These risks may relate to direct environmental incidents, pollution or other negative impacts on the environment and ecosystems. Indirect, such as business relationships with companies whose activities are not in line with the transition to an environmentally sustainable economy or who are deficient in managing environmental issues in their operations. Lost income, a smaller customer base, tarnished reputation, and potentially higher credit losses.

  • Damage to Resurs’s brand and trustworthiness as an employer and a bank unless the company reduces greenhouse gas emissions that contribute to climate change.
  • The climate as a whole through Resurs’s products and services that contribute to consumption in society.
  • Non-compliance with regulations that could lead to legal consequences in the form of fines or other sanctions.
  • Target to reduce the direct climate impact of the operation by 50 per cent by 2030.
  • Sustainability policy, and guidelines in the following areas:

– Business travel: separate travel policy, follow-up of CO2.

– Code of conduct for suppliers.

– Electricity consumption: Choosing renewable electricity wherever possible.

  • Mapping of commuting habits at Resurs via survey.
  • Climate calculation according to the GHG protocol.
  • Risk Committees identify, monitor, and proactively address potential risks and follow up on previously identified risks and approved actions.
  • Ongoing stakeholder dialogue.
  • Policies and instructions for responsible credit lending.
SOCIAL CONDITIONS AND HUMAN RIGHTS
  • As an employer: risks related to social conditions, primarily working conditions, i.e. health and safety, workload, trade union rights, remuneration and benefits, equal treatment and equality, and occurrence of harassment and victimisation.
  • Difficulty in recruiting and retaining competent employees.
  • As a lender and investor and when purchasing goods and services, risks related to social conditions and human rights.
  • Non-compliance with regulations that could lead to legal consequences in the form of fines or other sanctions.
  • Employee commitment and desire to progress.
  • Failure to recruit, develop and retain competent employees with the necessary skills could affect Resurs’s ability to develop new or fast-growing operational areas and thereby deliver on strategy and objectives.
  • Skills gaps, efficiency losses and lack of continuity.
  • Resurs’s work environment.
  • Resurs’s brand and trustworthiness as an employer and a bank.
  • Customer relationships and the trustworthiness of the offering.
  • Equality targets.
  • Salary survey.
  • Whistle-blower function.
  • Employee surveys.
  • Development opportunities.
  • Strengthening the brand/employer branding.
  • Continual improvements and follow-up of the employee survey.
  • Performance and talent management processes in to develop and retain critical skills and talent for the future.
  • Skills-based recruitment process.
  • Mandatory training for employees and managers.
  • Code of conduct for suppliers.
  • Supplier review, revision and reinforcement of related processes linked to Resurs’s operations, product, and service offering.
  • Policies and instructions for responsible credit lending.