Our commitments

We are making a more sustainable future

Thinking about a more sustainable future also means adopting a business strategy that promotes sustainability, establishing the link between finance and the specific needs of the economy for the benefit of the planet and society.

Os nossos objetivos

We base our environmental, social and governance activities on the four strategic pillars of novobanco, defining new objectives for 2026 and 2030.

We therefore want to achieve sustainable performance for all our stakeholders.

We will reinforce the centrality of the customer in our operations. To this end we commit to two goals:

Green investment totaling 2,000 million euros by 2026
More than 60% of products with ESG characteristics, in accordance with articles 8 or 9 of the SFDR.

We are focused on reducing our negative impact on the environment, so we will ensure:

the reduction of own emissions (scope 1 and 2) by 50% by 2030, versus 2021.
the use of electrical energy entirely from renewable sources, by 2026, at the bank’s facilities.

We will continue to promote the well-being of our employees, which is why we will:

reduce the gender pay gap by function (equal pay), reducing it to below 5% by 2026.
increase engagement among our employees to 65%.

We focus our activity on a sustainable business model based on social values of equity, equal opportunities and gender and environmental values that guide us towards reducing the intensity of CO2 emissions in financing the main sectors of activity with climate impact. Our performance is monitored by the following indicators:

Representation of women in leadership positions to reach 40% by 2026.
Reach 100% in the energy generation, cement and commercial real estate sectors.

Our social dividend model

Based on the ESG axes, we have defined a Social Dividend model for 2022-2024 that incorporates the three dimensions of sustainability - environmental, social and governance- reflecting the way we develop the Sustainable Development Goals (SDGs). The aim of this model is to encourage the adoption of best sustainability practices and thus position ourselves as an ESG benchmark in Portugal.

Social dividend

Transition Plan for Carbon Neutrality

Novobanco's Carbon Reduction Commitments

Novobanco is focused on playing an active role in the transition to a low-carbon economy. Mirroring our Sustainability Policy, our business model aligns with this vision, namely, in our relationship with customers and society, in the context of supporting the transition and promoting socio-economic development, and in the management and continuous improvement of the environmental and social performance of our own operations, and the development of a sustainability strategy that fosters an effective governance model and the proper economic integration of all risks, including climate and environmental risks.

Novobanco's Carbon Reduction Commitments encompasses novobanco's goals for reducing the carbon footprint of its own operations as well as the financing portfolio, carried out with Science Based Targets, and presents the criteria for the commitments, as well as the monitoring and description of the activities to be developed to achieve these objectives.

Greenhouse Gas (GHG) emission reduction targets – SBTi Commitment

novobanco is the first Portuguese bank with SBTi - Science Based Targets Initiative-validated emissions reduction targets.

By signing the SBTi – Business Ambition for 1.5ºC commitment to limit the increase in global temperature to 1.5ºC above pre-industrial levels, novobanco aligns its decarbonization goals with those of the Paris Climate Agreement and thus also contributes to the effective fight against climate change. The initiative was created in collaboration between CDP, the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

novobanco is committed to reducing absolute Greenhouse Gas (GHG) emissions in its own operations by 54% by 2030, using 2021 as the base year (scope 1 and 2 GHG emissions).
Additionally, novobanco has also set carbon intensity reduction targets for the financing and investment portfolio, which represent 15% of the total assets on the balance sheet in 2021 (scope 3 GHG emissions). Sectoral commitments, applicable to large companies and to medium and long-term financing or investments, stand out for:

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Electricity generation

reduce CO2 emissions from the electricity generation sector within its project finance, corporate bond and loan portfolio by 74% per MWh by 2030 from a 2021 base year

Cement Industry

reduce CO2 emissions from the cement sector within its corporate loan and bond portfolio by 23% per ton of cementitious product by 2030 from a 2021 base year

Pre-analise imediata

Commercial Real estate

reduce CO2 emissions from its commercial real estate loan portfolio by 68% per square meter by 2030 from a 2021 base year

For novobanco this is an important commitment, aligned with our aim to promote sustainable finance and to support our customers in their energy transition journey.

Commitment: https://sciencebasedtargets.org/resources/files/Target-language-and-summary_Novo-Banco-S.A.pdf

SBTi – more info here: https://sciencebasedtargets.org/

Sustainability