Corporate Responsibility Fact Book 2014 - Danske Bank

Corporate Responsibility Fact Book 2014 Supplementary information about Corporate Responsibility (unaudited)

Updated: 3 February 2015

Table of contents 1. Overview

4

2.3. Environment

16

1.1. Introduction and reporting principles

4

2.3.1. Reporting principles

16

1.2. Corporate Responsibility organisation

5

2.3.2. Resource consumption

17

6

2.3.3. Electricity target

18

6

2.3.4. Carbon neutrality

19

2.1.1. Number of customers and branches

6

2.3.5. Direct and indirect CO2 emissions

20

2.1.2. Customer satisfaction

7

2.3.6. Other emissions

21

2.1.3. eBanking on smartphone

8

2.3.7. Waste

22

2.1.4. eBanking on tablets

8

2.3.8. TelePresence

23

2.1.5. Investment products related to climate and environment

9

2.3.9. eMeetings

23

2. Focus areas 2.1. Business

10

2.3.10. Nordania Greenfleet

24

2.2.1. Number of full-time employees and employee turnover

10

2.3.11. Duplex printers

24

2.2.2. Staff diversity

11

2.2.3. Employee opinion survey

12

2.4.1. Donations and staff hours spent on volunteer activities

25

2.2.4. Work-life balance

13

2.4.2. Financial literacy

26

2.2.5. Health and safety

14

2.4.3. Value distribution

29

2.2.6. Robberies

14

3. Additional information

30

2.2.7. Competency profiles and intellectual capital

15

2.2. Employees

2.4. Society

25

3.1. Partnerships and indices

30

3.1.1. Selected partnerships

30

3.1.2. FTSE4Good Index 3.1.3. ECPI Indices

31 31

3.1.4. STOXX Global ESG Leaders Indices 3.1.5 Dow Jones Sustainability Index – Danske Bank rating overview

32 32 2

For further information, please contact Contact us Dorte Eckhoff Head of Corporate Responsibility [email protected]

Thea Messel Group Environmental Coordinator [email protected]

Corporate Responsibility department Holmens Kanal 2-12 1092 Copenhagen K Denmark Tel.: +45 45 13 08 36 E-mail: [email protected]

Cecilia Brandehoff Senior Communications Consultant [email protected]

Thomas H. Kjærgaard Head of Responsible Investment [email protected]

Disclaimer This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offers to purchase or sell any securities, currency or financial instruments. Whilst reasonable care has been taken to ensure that the content of this Disclaimer publication is not untrue or misleading, no representation is made as to its accuracy or completeness, and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff may perform business services, hold, establish, change or cease to hold positions in any securities, currency or financial instrument mentioned in this publication. The Danske Bank Group’s research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank is regulated by the FSA for the conduct of investment business in the UK and is a member of the London Stock Exchange. Copyright © 2015 Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission. 3

1. Overview

1.1. Introduction and reporting principles Introduction to the Corporate Responsibility Fact Book 2014 

The Corporate Responsibility Fact Book 2014 covers business information and corporate responsibility activities of Danske Bank Group. It is a supplement to the Corporate Responsibility 2014 report, which can be downloaded from the website at www.danskebank.com/responsibility.



The Corporate Responsibility Fact Book 2014 contains detailed and segmented data that is intended to give a transparent view of Danske Bank’s performance and to fulfil the Global Reporting Initiative’s G4 reporting guidelines. The GRI reporting currently complies with GRI level CORE requirements.



Data are not available for some areas of our business in the Baltic states (Lithuania, Latvia and Estonia), since the Corporate Responsibility programme has not yet been fully rolled out in these units.

Reporting principles 

To ensure data consistency and completeness, data have been defined and described in business procedures. Internal control procedures have been established to ensure that data are reported according to the definitions.



The reporting principles as well as any changes in the principles are presented with the data on the subsequent pages.



A full description of the reporting principles is available on the Group website at www.danskebank.com/responsibility.



The full GRI index is available on the Group website at www.danskebank.com/responsibility.



Environmental data that are included on the Group’s CO2 statement have been verified by PwC.

4

1. Overview

1.2. Corporate Responsibility organisation Danske Bank Business Integrity Board and Corporate Responsibility department 

In 2014, we established a new body, the Business Integrity Board, which replaced the Group Responsibility Board. Its mandate is to make formal recommendations on corporate responsibility strategies and policies to ensure that business decisions are implemented with a high degree of integrity.



Danske Bank Group’s Corporate Responsibility department acts as secretariat to the Business Integrity Board and is responsible for giving the Board advice and recommendations relating to responsibility aspects of business decisions. The department’s other responsibilities include the following: 

Trendspotting and external stakeholder engagement on corporate responsibility issues.



Coordination of corporate responsibility activities across the Group and reporting on achievements, including commitments to the UN Global Compact and UN Principles for Responsible Investment.



Raising awareness of corporate responsibility issues and supporting local units with expertise and knowledge of best practices, including support for financial literacy programmes.

5

2. Focus areas

2.1. Business 2.1.1. Number of customers and branches Customers, end of period Denmark (000s) Finland (000s) Sweden (000s) Norway (000s) Northern Ireland (000s) Ireland (000s) Baltics (000s) Personal Banking (000s)* Business Banking (000s)* Corporates & Institutions *

2012

2013 2,300 1,150 244 301 483 168 277 -

2014 3,396 442 1,411

-

Figures for banking customers and branches consist of data from Danske Bank in Denmark, Sweden, Norway, Finland, Ireland, Northern Ireland and the Baltics.

3,237 438 1,599

*The method for calculating the number of customers changed after the restructuring of the Group in 2012. For 2013 and 2014, the number of customers covers only customers from Personal Banking, Business Banking and Corporates & Institutions with at least one active banking account.

Branches , end of period Denmark Finland Sweden Norway Northern Ireland Ireland Baltics

2012 2013 2014 228 159 144 93 45 45 44 39 38 35 32 32 62 53 46 0 0 0 29 26 24

6

2. Focus areas

2.1. Business 2.1.2. Customer satisfaction For all the Group’s markets, the survey of business customer satisfaction is conducted in cooperation with Aalund Business Research, and the survey of personal customer satisfaction is conducted in cooperation with Epinion. The level of satisfaction among Danske Bank Group’s retail and corporate customers is the average of all customers’ overall assessment of Danske Bank on a scale from 1 to 10.

Customers satisfaction (scale: 1–10 personal/business) Danske Bank, Denmark Danske Bank, Finland Danske Bank, Sweden Danske Bank, Norway Danske Bank, Northern Ireland Danske, Ireland

20121

20132 7.2/7.5 7.4/7.8 8.1/7.7 8.1/7.6 7.9/7.7 5.6/5.7

20142 6.7/7.1 7.0/7.9 7.7/7.8 7.8/7.6 7.9/7.8 -/-

7.1/7.6 7.3/8.5 7.6/8.2 7.2/8.0 7.4/8.2 -/-

1

Data for personal customers in DK, SE, FIN, NO and N.IR for 2012 have been restated because of a change in calculation methods for 2013 in order to ensure comparability. For business customers, only 2012 data have been restated. 2 There are no figures for Ireland from 2013 onwards because of the decision to refocus our business in the Republic of Ireland on Corporates & Institutions customers.

7

2. Focus areas

2.1. Business 2.1.3. eBanking on smartphones Danske Bank is working to give customers easy access to its services through various channels. The data below are based on the number of views of the mobile and tablet banking front pages.

Logons to application for smartphones (000s) Denmark

Norway

Northern Ireland

Finland

Sweden

Republic Of Ireland

200,000

160,799

150,000 100,000

115,207 65,091

50,000 0 2012

2013

2014

2.1.4. eBanking on tablets Logons to application for tablets (000s) Denmark

Norway

Ireland

Finland

Sweden

Northern Ireland

30,000

23,070

20,000 10,000

15,135 6,493

0 2012

2013

2014 8

2. Focus areas

2.1. Business 2.1.4. Investment products related to climate and environment Launched in October 2009, KlimaTrends (ClimateTrends) is a Danske Invest mutual fund focusing on companies that are expected to be well equipped for climate change challenges. ClimateTrends aims to achieve attractive long-term returns - not only from “green” companies but also from companies that can profit from climate change. Danske Invest also has a Sustainability Bond Fund and a Sustainability Equity Fund in Finland. The amounts invested in the funds are based on information registered at the end of the year.

Assets in Sustainability Equity Fund

Assets under management subject to the Group's IR Guidelines (DKK billions) 800 600

Assets under management (DKK)

596

Sustainability Equity Fund AUM — Return and dividends (%)

795

720

662

1,200

1,125

1,000

400

Sustainability Equity Fund (DKK millions)

903

1.150

20

761

800

10

600

200

0

400

0 2011

2012

2013

2014

200

-10

0

-20

2011

Climate Trends Fund: assets and returns Returns and dividends (%)

Sustainability Bond Fund — ROI (%)

400

30 316

20 232

10

197

200

164

0

400 300

-10

100

0

-20

0

2012

2013

2014

2013

2014

Sustainability Bond Fund (DKK millions)

15

327 294

273

298

10 5

200

100

2011

2012

Assets in Sustainability Bond Fund

Assets under management (DKK)

300

30

0 -5 -10 -15

2011

2012

2013

2014 9

2. Focus areas

2.2. Employees 2.2.1. Number of full-time employees and employee turnover The number of full-time employees (FTEs) at the end of the year is based on information from Annual Report 2014. Since Q4 2013, the full-time-equivalent staff figure no longer includes staff under notice and released from their duties. Comparative figures from 2013 and 2012 are restated. Employee turnover is defined as the number of employees who retired or resigned divided by the number of employees (converted to a percentage rate). The information covers the entire Group. The turnover rates are based on information registered for four quarters (from Q4 13 to Q3 14). In Ireland, the turnover rate was affected by the decision to close the Personal Banking and Business Banking units.

Employee turnover (%) 2012

2014

Personal Banking

8,016

6,856

6,617

Business Banking

3,772

3,759

3,608

Corporates & Institutions

1,499

1,571

1,643

Danske Capital

481

504

506

Danske Pension

799

766

772

5,466

5,409

5,257

20,033

18,865

18,403

20

93

257

75

10

20,126

19,122

18,478

Non-core Group total

60

54

50 40 30

8

9

7

10 10

8

9

Group

Total core

2014

Baltics

Other activities

2013

Sweden

2013

Finland

2012

Denmark

Employees — FTEs, end of period

Ireland

Northern Ireland

Norway

0

GRI G4-10: Workforce 10

2. Focus areas

2.2. Employees 2.2.2. Staff diversity Danske Bank Group wants to be an attractive place to work for all candidates with the right skills. The number of full-time employees (FTEs) is based on information registered at the end of the year in the Group’s registration system. Data on the average years of service, average age and gender breakdown were retrieved from the Group’s HR system at the end of 2014. Managers and executives are defined as persons with staff responsibility.

Gender breakdown 2014, managers (%)

2012 2013 2014 20,126 19,122 18,478 56 54 54 36 36 36 41 43 43 16 15 15

Male managers Female managers

29

42

37

35

47

33

Years of service breakdown 2014 (%)

21

25

21

11-20 years

Male employees

Over 20 years

Female employees

Employee age breakdown 2014 2012 7

2013

2014

7 12

12

7

30-39 years

26

26

26

20-29 years

13

29

30

29

40-49 years 50-59 years

25

25

25

Gender breakdown 2014, employees (%)

Above 60 years

52

35

48

55

33

48

65

52

45

67

63

28 72

37

Baltics

22

6-10 years

Ireland

20

18

10

12

Northern Ireland

15

62

3-5 years

16

28

Norway

15

30

0-2 years

Sweden

13 33

2014

Finland

2013

Denmark

2012

38

Baltics

67

Ireland

53

Northern Ireland

65

Norway

63

Sweden

58

Finland

71

Denmark

Employees — FTEs, end of period No. of full-time employees, EOY % of women in workforce (%) % of women in management (%) Average age Average years of service


2. Focus areas

2.2. Employees

2012 2013 2014

2.2.3. Employee opinion survey Every year, Danske Bank Group conducts a survey on the satisfaction, motivation and loyalty of its employees. The purpose of the survey, which is based on a European model known as the European Employee Index, is to identify the need for HR activities focused on specific areas in the coming years. The results of the survey are based on responses from employees across the entire Group. The employee loyalty index is based on replies to seven questions in the employee survey - three on loyalty, three on commitment and one on social capital.

Employee survey (scale: 0–100) Employee satisfaction and motivation Employee loyalty Employee perception of the Group’s social involvement and responsibility Social capital General atmosphere Physical working environment

79 78 72

80 80 72

82 81 73

100

Baltics

Ireland

Northern Ireland

Norway

0

Sweden

0

Finland

Index 50

74

70

73

72

81

75

82

Baltics

71

Index 50 Denmark

After a drop in employee perception of the Group’s social involvement and responsibility which may have reflected the negative publicity concerning the Group in 2012 and first part of 2013, the scores rose in 2014.

Ireland

68

Northern Ireland

73

75

Norway

75

72

Sweden

74

75

Finland

76

2014 76 81

Denmark

77

2013 74 80

Employee perception of the Group's social involvement and responsibility

Employee satisfaction and motivation 100

2012 74 79


2. Focus areas

2.2. Employees

2012 2013 2014

2.2.4. Work-life balance The number of part-time employees covers the entire Group and is reported as registered at the end of Q3 2014. Part-time employees are defined as persons with working hours equivalent to less than 90% of the standard working hours determined by collective wage agreement. The number of flex jobs covers activities in Denmark only and is based on information registered at the end of Q3 2014. The number of maternity and paternity leave days paid by Danske Bank covers four quarters (from Q4 2013 to Q3 2014). Data on employee perception of work-life balance are based on responses in the annual employee survey of the entire Group.

321

79

80

80

2,380 2,877 79

2,698 2,282 63

2,235 1,730 49

0

Ireland

526

80

Average number of days per paid paternity leave 200 100

47

72

33

66 7

0

0

Ireland

696

89

Northern Ireland

46

92

100

Northern Ireland

28

172

Norway

30

158

Norway

134

138

Sweden

131

200

Sweden

132

Average number of days per paid maternity leave

Finland

2,063 256

figures cover the entire Group except for the Baltic states. 2. The figures cover the entire Group except the Baltic states and Ireland. 3. A flex job is a Danish work arrangement for people with reduced ability to work.

2014

Denmark

2013 2,390 308

Finland

1. The

2012 2,644 233

Denmark

Work-life balance Women working part-time Men working part-time Avg. No. of days per paid maternity leave during the year1 Avg. No. of days per paid paternity leave during the year2 Leaves of absence granted for other reasons (No. of emp. granted leave of absence during the year)1 Work-life balance as perceived by employees (index scale of 0–100) Part-time schemes No. of employees on leave during the year1 No. of flex jobs3


2. Focus areas

2.2. Employees 2.2.5. Health and safety Health and safety

2012

2013

Absence because of illness (avg. No. of days lost through illness per employee)

8.0

7,5

6

Injuries or post-traumatic stress related to robberies1

179

67

73

Other physical or mental injuries

103

84

115

3,927

3,860

3,809

Employees who filed claims under medical expense insurance2

The Group wants to contribute to the general health of its employees. Tools used for this purpose are campaigns on a healthy diet, information about healthy working postures and an agreement on medical expense insurance that provides quick treatment in private hospitals or clinics. Absence is stated as time lost because of an employee’s illness, including pregnancy-related sick leave, and occupational accidents and diseases. The rate of absence is calculated as the average number of registered days of absence per employee. The data may be underreported if employees do not register their illness. The number of injuries is defined as the number of injuries reported to the authorities. The number of employees who filed claims under their medical expense policies is defined as the number of employees who received an insurance payout from the Group’s agreement on medical expense insurance. Only employees in Denmark are covered by medical expense insurance.

2014

1. These

figures includes incidents of violence and threats as well as robberies. are covered by medical expense insurance. The number may increase because of further notifications. 2. Only Danish employees

2.2.6. Robberies A robbery causes a tremendous amount of mental stress for the employees involved. As a result, the Group has introduced a number of initiatives to reduce the risk of robbery, such as time locks and cash-free branches. To our great satisfaction, the number of robberies has fallen steadily in recent years.

Trend in robberies and attempted robberies (number)

Robberies and attempted robberies by region (number) 40

40

2011

36 25

20

10

0

2011

2012

2013

2

-31% -60% -80%

2014

2012

20 8

0

3

20

00

0 0

0 0

0 0

Denmark Finland Sweden Norway Northern Ireland Ireland

0

2013 0

2014

Baltics

GRI G4-LA6: Rates of injury, occupational diseases, lost days, and absenteeism 14

2. Focus areas

2.2. Employees 2.2.7. Competency profiles and intellectual capital Data on the level of education are based on responses in the annual employee survey of the entire Group.

Level of education, 2014 (%) Denmark Finland Sweden Norway Northern Ireland Ireland Baltics Group

Elementary/ Trade/basic upper business Bachelor’s Advanced secondary college degree degree Other 13 4 25 11 32 2 5 13

12 36 9 18 31 29 9 16

47 32 45 42 26 26 51 43

26 28 16 28 8 40 33 26

2 1 4 2 2 2 2 2

Employees level of education, 2014 (%)

2%

Elementary/upper secondary school 13%

Trade/basic business college

26%

Bachelor’s degree 16%

Advanced degree Other

43%

15

2. Focus areas

2.3. Environment 2.3.1. Reporting principles The reporting period for the year 2014 extends from 1 October 2013 to 30 September 2014. •Direct CO2 emissions (scope 1) comprise emissions from electricity, heat and steam generated by the organisation (within the organisational boundaries). The Group uses fuels such as oil and gas for heating to only a very limited extent. Indirect CO 2 emissions (scope 2) comprise emissions from electricity, heat or steam consumed by the organisation (energy supplied from outside the organisational boundaries). Other indirect CO 2 emissions (scope 3) include emissions from purchased goods and services, paper and business travel by air and car. •Electricity and heat consumption are based on automatic data transfers from smart meters or quarterly meter readings or are calculated on the basis of statements from energy companies and lessors on a regularly basis during the year. In Sweden, heat consumption is calculated on the basis of information from Boverket (energy labeling of buildings). The consumption figure is calculated on the basis of the Group’s share of floor space in the various buildings. According to this method, the heat consumption at properties without real consumption in Finland and Norway is calculated by using the key figures for Sweden because of similar consumption patterns in the branches. In Norway, heat at the branches is covered mainly by electricity consumption. •Transportation in company cars includes transport in the bank’s own cars, and the measurement is based on odometer readings from drivers. •Transport in employees’ own cars has been calculated as km based on paid mileage allowance divided by mileage allowance payable according to current government tariffs. •Transport by air has been calculated on the basis of quarterly kilometre and CO 2 statements from our external travel agency, American Express. •Paper consumption has been calculated on the basis of volumes purchased and covers copying and printing paper, letterhead and envelopes with logos as well as other printed matter. •Water use is calculated on the basis of quarterly meter readings and covers only the head offices in Denmark and Finland and all locations in Lithuania. •Waste data are divided into waste sent to landfill, incineration and recycling. Waste is calculated on the basis of weights registered in the waste management system. In Denmark, data on waste cover all waste from the head office and paper from the branches. In Sweden, data on waste volumes cover the head offices in Stockholm and Linköping and paper to be recycled from the branches. In Norway, the waste volume of paper for recycling covers the head offices in Trondheim and Oslo and all branches. Waste consumption in Northern Ireland and Ireland covers head offices. •The data on floor area cover all properties – both own and leased premises – that the Group and its subsidiaries use for their own activities in the various countries. •The number of full-time employees (FTEs) is based on an average figure for the year 2014 for Ireland, Northern Ireland, Sweden, Norway, Denmark, Finland and Lithuania. •The figures for resource consumption are based on data from Ireland, Northern Ireland, Sweden, Norway, Denmark, Finland and Lithuania. CO2 emissions are calculated for all operational activities in Denmark, Finland, Sweden, Norway, Ireland ,Northern Ireland and Lithuania. The Group does not have any measured consumption in Latvia, Estonia, Poland, Germany , Luxembourg , USA and Russia. The Group has therefore used extrapolations to estimate the CO2 emissions of the operational activities in these countries on the basis of the number of FTEs and the average CO 2 emissions per employee of the calculated consumption. •CO2 emissions in Denmark, Finland, Sweden, Norway, Ireland , Northern Ireland and Lithuania were calculated on the basis of electricity, heat and paper consumption data as well as data for transport by car and air. Specific emission factors from relevant energy companies were used when possible; otherwise, average emission factors for electricity in the region were used. For transport by car, specific emission factors were used for Danske Bank’s company vehicles to the extent that such emission factors are known. The emissions from employees’ own cars are based on average emission factors from www.ukconversionfactorscarbonsmart.co.uk • CO2 emissions from paper are based on an emission factor from Force Technology. •

16

2. Focus areas

2.3. Environment 2.3.2. Resource consumption 2014 Resource consumption Floor area — square meters occupied (average)¹ Full-time employees (FTEs)² (average) Energy consumption in total (MWh)

Total 2013

Total 2014

Change (%) 2013–2014

606,230

572,123

-6%

329,994

97,893

51,247

42,037

31,012

6,381

19,261

18,114

-6%

11,067

2,079

1,247

1,178

1,509

215

819

139,373

121,216

-13%

76,986

16,773

8,690

6,411

8,088

1,228

3,039

Denmark

Finland

Sweden

Norway

Northern Ireland

Ireland

Lithuania 13,559

Energy consumption per employee (MWh/FTE)

7.2

6.7

-8%

7.0

8.1

7.0

5.4

5.4

5.7

3.7

Energy consumption per square meter (kWh/m2)

230

212

-8%

233

171

170

153

261

192

224

14,466

10,831

-25%

7,477

329

0

0

2,903

122

0

124,907

110,385

-12%

69,510

16,444

8,690

6,411

5,185

1,106

3,039

69,568

61,355

-12%

35,936

8,703

4,114

4,448

5,185

1,106

1,864

Electricity consumption per employee (MWh/FTE)

3.6

3.4

-6%

3.2

4.2

3.3

3.8

3.4

5.1

2.3

Electricity consumption per m2 (kWh/m2 )

115

107

-7%

109

89

80

106

167

173

Electricity consumption — head office (MWh)

34,836

33,792

-3%

20,792

4,267

2,070

1,836

2,607

853

Electricity consumption — branches (MWh)

34,732

27,563

-21%

15,144

4,436

2,044

2,612

2,578

253

496

Heat consumption — total (MWh)

69,805

59,861

-14%

41,051

8,071

4,576

1,964

2,903

122

1,175

4

3.3

-9%

4

4

4

2

2

1

1

Direct energy consumption (MWh) Indirect energy consumption (MWh) Electricity consumption — total (MWh)

Heat consumption per employee (MWh/FTE)2 2

2

1,368

115

105

-9%

124

82

89

47

94

19

87

Heat consumption — head office (MWh)

32,941

28,907

-12%

19,993

3,287

1,723

1,616

1,444

0

843

Heat consumption — branches (MWh)

36,864

30,953

-16%

21,057

4,783

2,853

347

1,459

121

332

Road transport — total (1,000 km)

16,712

16,643

0%

7,459

2,792

2,852

613

1,299

44

1,585 1,936

Heat consumption per m (kWh/m )

Road transport per employee (km/FTE)

868

919

6%

674

1,343

2,287

520

861

204

Company vehicles (1,000 km)

1,833

1,714

-6%

35

166

1,161

-

-

-

352

Employees cars (1,000km)

14,879

14,929

0%

7,424

2,626

1,691

613

1,299

44

1,233

Air transport — total (1,000 km)

51,219

52,662

3%

28,255

7,377

5,128

7,068

2,762

489

1,582

Air transport per employee (km/FTE)

2,659

2,907

9%

2,553

3,548

4,112

6,000

1,830

2,276

1,932

Paper consumption - total (tonnes)

2,227

1,726

-23%

1,039

197

121

58

237

49

24

116

95

-18%

94

95

97

49

157

228

29

Water consumption — total (m3 )

76,872

82,483

7%

62,835

11,932

-

-

-

-

7,716

Train transport — total (1,000 km)

1,604

1,654

3%

-

-

1,617

-

26

11

-

Paper consumption per employee (kg/FTE)

1. The total figures cover

employees in Ireland, Northern Ireland, Sweden, Norway, Denmark , Finland and Lithuania. 2. The average heat consumption per employee varies greatly throughout the Group. This may be caused by the following reasons: varying use of electricity for heating, varying weather conditions, and differences in buildings.

17

2. Focus areas

2.3. Environment 2.3.3. Electricity target Electricity continues to be the main source of our environmental impact. In 2014, it accounted for 46% of the Group’s total CO2 emissions and thus constitutes an important area for improvement. At the end of 2014, the total reductions since 2009 amounted to 37%.

Ahead of the electricity target (MWh) 104,000

Annual objective Realised electricity consumption

97,034 96,000 90,438 88,000

91,212 85,891 85,390 79,568

80,000

75,967 72,000

-37% 73,746 69,568 67,925

64,000 0 2009

61,355

2010

2011

2012

2013

2014 18

2. Focus areas

2.3. Environment 2.3.4. Carbon neutrality 2014 Total 2012

CO2 emissions 1

CO2 from electricity (tonnes)

Total 2013

Total 2014

Change (%) 2012–2013

Change (%) 2013–2014

Denmark

Finland

Sweden

Northern Ireland

Norway

Republic of Ireland

Lithuania

19,858

15,786

16,717

-21%

6%

13,548

1,888

0

778

0

0

503

CO2 from heat (tonnes)

9,881

9,696

8,350

-2%

-14%

5,062

1,699

390

145

712

24

317

CO2 from road transport (tonnes)

3,351

2,925

2,827

-13%

-3%

1,406

497

320

116

246

8

234

CO2 from air transport (tonnes)

4,818

6,217

5,979

29%

-4%

3,074

817

615

948

302

59

164

CO2 from paper consumption(tonnes)

3,092

2,918

2,262

-6%

-22%

1,362

258

159

76

311

64

32

41,000

37,542

36,135

-8%

-4%

24,452

5,159

1,484

2,063

1,571

155

1,250

1,795

1,626

1,672

-9%

3%

Total CO2 emissions for neutralisation (tonnes)

42,795

39,168

37,807

-8%

-3%

Neutralised by carbon credits from projects²

-42,795

39,168

37,807

Neutral

Neutral

Neutral

Total registered CO2 emissions (tonnes) Estimated CO2 emissions from operations without registered data (tonnes)

Result 1. Electricity in

Sweden, Northern Ireland, Republic of Ireland comes from renewable sources; that is why there were no CO 2 emissions in those regions.

². We neutralise emissions by investing in certified carbon credit projects. Read more about the projects at www.danskebank.com/responsibility.

Change in CO2 emissions, 2013 to 2014

Breakdown of CO2 emissions by source 2012 8

2013

6 82

8

12 16

7

2014

91

48

238

16

17 42 17

Increase

39,168

7 6 6 1 44

931

Decrease

Total

1,346 656

98

46

37,807

16

Heating from consumption of oil and gas

Air transport

Use of company vehicles

Paper consumption

Electricity from external suppliers

Use of employees’ cars

Total CO2 CO2 from CO2 from CO2 from CO2 from CO2 from CO2 Total CO2 emissions air electricity heat paper road estimated emissions 2013 transport consumption transport 2014

Heating from external suppliers G4-EN15: GHG resulting from business travel 19

2. Focus areas

2.3. Environment 2.3.5. Direct and indirect CO2 emissions Direct CO2 emissions (scope 1) comprise emissions from electricity, heat and steam generated by the organisation (within the organisational boundaries). The Group uses fuels such as oil and gas for heating to only a very limited extent. Indirect CO 2 emissions (scope 2) comprise emissions from electricity, heat or steam consumed by the organisation (energy supplied from outside the organisational boundaries). Other indirect CO2 emissions (scope 3) include emissions from purchased goods and services, paper and business travel by air and car. Direct & indirect emissions

Total 2012

Total 2013

2014

Total 2014

3,881

3,575

Denmark Finland Norway Sweden Northern Ireland Republic of Ireland Lithuania 2,713 1,577 113 0 220 712 24 67

3,175

3,255

2,387

1,570

81

0

0

712

24

0

706

321

325

7

31

0

220

0

0

67

26,563

22,227

22,680

17,040

3,505

924

390

0

0

821

19,858

15,786

16,727

13,548

1,888

788

0

0

0

503

6,705

6,441

5,961

3,492

1,618

145

390

0

0

317

10,555

11,740

10,742

5,835

1,541

1,140

874

858

132

362

Air transport (tonnes) 2 Paper consumption (tonnes)

4,818

6,217

5,980

3,074

818

948

615

302

59

164

3,092

2,918

2,262

1,362

258

76

159

311

64

32

Use of employees' cars (tonnes)

2,645

2,604

2,503

1,400

466

116

100

246

8

167

1,795

1,626

1,672

-

-

-

-

-

-

-

42,794

39,168

37,807

24,452

5,159

2,064

1,484

1,570

156

1,250

CO2 direct (tonnes) Heating from consumption of oil & gas (tonnes) Use of company vehicles (tonnes) CO2 indirect (tonnes) Electricity from external suppliers (tonnes) Heating from external suppliers (tonnes)

1

Other CO2 indirect (tonnes)

Estimated CO2 emissions, direct and indirect, from operations without registered data (tonnes) Total CO2 emissions (tonnes)

Breakdown of CO2 emissions by scope (%) 2012

26

2013

9

2014

7.5

10 31

65

29.7 59

Scope 1 (Direct CO2 emissions)

62.8 Scope 3 (Other indirect CO2 emissions)

Scope 2 (Indirect CO2 emissions) GRI G4-EN15: GHG resulting from business travel 20

2. Focus areas

2.3. Environment 2.3.6. Other emissions We have calculated SO2 and NOx emissions on the basis of electricity and heat consumption data as well as data for transport by car and air. The source of emission factors for the various types of consumption is www.Key2Green.dk, except for air transport, for which the source is www.sas.dk.

2014 Direct & indirect emissions

Total 2012

SO2 total (kg)

Total 2013

Total 2014

Denmark

Finland

Sweden

Northern Ireland Ireland

Norway

Lithuania

12,961

12,753

12,000

8,035

1,940

441

551

594

32

407

SO2 from electricity (kg)

4,557

4,174

4,420

3,582

499

0

206

0

0

133

SO2 from heat (kg)

7,150

6,980

6,041

3,663

1,230

282

105

515

17

230

42

39

35

18

6

4

1

3

0

3

1,211

1,560

1,503

773

205

155

238

76

15

41

NOx total (kg) NOx from electricity (kg)

68,292

72,509

64,907

40,692

10,044

3,646

4,655

3,265

275

2,328

21,264

17,392

18,419

14,926

2,081

0

858

0

0

554

NOx from heat (kg)

25,026

24,431

21,146

12,820

4,303

988

368

1,803

60

804

5,614

5,181

5,009

2,491

881

567

206

436

15

414

16,388

21,000

20,334

10,455

2,779

2,091

3,224

1,026

201

556

SO2 from road transport (kg) SO2 from air transport (kg)

NOx from road transport (kg) NOx from air transport (kg)

GRI G4-EN15: GHG resulting from business travel 21

2. Focus areas

2.3. Environment 2.3.7. Waste In Denmark, data on waste cover all waste from the head office and paper from the branches. The data are divided into waste sent to landfill, incineration and recycling. Waste is calculated on the basis of weights registered in the waste management system. In Sweden, data on waste volumes cover the head offices in Stockholm and Linköping and paper to be recycled from the branches. In Norway, the waste volume of paper for recycling covers the head offices in Trondheim and Oslo and all branches. Waste consumption in Northern Ireland and Ireland covers head offices and branches.

Waste Waste total (tonnes) % of waste to recycling Waste to landfill (tonnes)

Total 2012

Total 2013

2014

Total 2014

Denmark Finland Sweden

Norway Northern Ireland Ireland Lithuania

2,919

3,103

2,630

2,114

N/A

183.2

77.3

210

46

N/A

53%

50%

52%

55%

N/A

87%

51%

N/A

N/A

N/A

0

6

20

12

N/A

N/A

8

N/A

N/A

N/A

Waste to incineration (tonnes)

1,005

1046

954

654

N/A

22

22

210

46

N/A

Waste to recycling (tonnes)

1,555

1555

1,366

1,167

N/A

160

40

N/A

N/A

N/A

Segment from paper for recycling (tonnes)

1,119

1030

1050

861

N/A

158

31

N/A

N/A

N/A

Segment from electronic waste (tonnes) Other (tonnes)

22

31

14

12

N/A

0.9

0.8

N/A

N/A

N/A

414

495

302

293

N/A

1.3

7.8

N/A

N/A

N/A

G4-EN23: Waste streams 22

2. Focus areas

2.3. Environment 2.3.8. TelePresence Danske Bank Group has implemented a type of videoconference known as TelePresence meetings. The Group invested in 43 new studios during 2014. In total, the Group has now invested in 82 TelePresence studios in order to reduce travel time and increase efficiency. The TelePresence meetings should help reduce travel, which is both expensive and time-consuming and has a negative impact on the environment. For example, holding a TelePresence meeting instead of a conventional meeting between a person in Helsinki, Finland, and a person in Copenhagen, Denmark, reduces CO 2 emissions by 297 kg (www.sas.dk).

Effect of Telepresence on CO2 emissions (tonnes) 7,000 6,000 5,000

6,217

5,978

CO2 from flights

4,818

6,063

Reduction in CO2 from TP

4,000 3,000 2,000

3,480 2,874

1,000 0 2012

2013

2014

2.3.9. eMeetings In 2006, the Group introduced the interactive communication tool eMeeting in all of its branches. In comparison with telephone conference calls, eMeetings provide a better overview and visual contact. Some examples of meetings that are held as eMeetings are regional meetings at the executive level, advisers' status meetings, meetings with large corporate customers and meetings with IT developers in India.

Participants in eMeetings 915,905

1,000,000 500,000

435,195

439,047

2012

2013

0 2014 23

2. Focus areas

2.3. Environment 2.3.10. Nordania Greenfleet In 2008, the Group’s leasing company, Nordania Leasing, launched a new environmental programme for its corporate car leasing schemes. The programme includes reporting on emissions from cars, environmental ratings of cars and advice on how to set up an environmentally friendly car policy. The figures shows the number of cars involved and the estimated number of tonnes of C02 saved annually from all the customers who have selected the Greenfleet programme.

Cars in Greenfleet +38%

8,900

10,600

2012

+37%

12,300 6,350

Cars (number)

7,830

2013

2014

8,700

Reduction in CO2 per year (tonnes)

2.3.11 Duplex printers In 2006, Danske Bank Group began replacing internal printers with duplex printers for the purpose of ensuring better paper usage by printing on both sides of the paper.

Duplex printers in the Group, end of period (%) 100

84

91

96

Duplex Not duplex

80 60 40 20

16

9

4

2013

2014

0

2012

24

2. Focus areas

2.4. Society 2.4.1. Donations and staff hours spent on volunteer activities The money donated through grants, funds, prizes and the like (excluding marketing costs) is counted where the funds are distributed (in the regions, branches or divisional head office).

Total donations* (DKK millions)

6

Staff hours spent on volunteer activities**

5,5 4,8

5

4,7

4

20.000

18.277

15.000

3

10.000

9.843

9.429

2012

2013

2 5.000

1

0

0

2012

2013

2014

* Total donations for 2013 and 2012 have been adjusted because of a calculation error.

2014

** The number of hours rose sharply in 2014 because volunteer activities in the Baltic countries are included in total number of hours for that year.

25

2. Focus areas

2.4. Society 2.4. 2 Financial literacy At Danske Bank Group, we believe that a higher level of financial literacy and education not only enriches the life of the individual but also contributes to healthy economic growth in society. Back in 2007 we launched the extensive Financial Literacy Programme. Our ambition with the Programme is to give the next generation of consumers a basic education in personal finance. Moneyville In 2008, we launched our first initiative – Moneyville – a fun, non-branded, educational website for 5-7 year-olds. In 2009 we expanded Moneyville with a new universe for 8-9 year-olds. In developing Moneyville, we drew upon the knowledge of more than 25 experts in northern Europe to ensure its appropriateness and educational relevance for the intended age group.

Moneyville, No. users registered Denmark Northern Ireland Norway Ireland Sweden Lithuania Estonia Finland Total

2012 2013 2014 3,506,920 2,233,346 53,309 212,470 213,251 1,519,544 24,396 112,339 73,759 383,074

2,327,181 225,935 1,580,689 118,138 399,333

172,067

588,096

632,042

77,289 153,400 1,118,163

353,239 188,564 5,590,573

372,307 197,844 5,853,469

For 2014 we set the objective of 200,000 downloads of the Moneyville app across the Group. We exceeded the objective. The Moneyville app was downloaded more than 300,000 times. Moneyville can be downloaded on both iOS and Android devices.

Average No. of logons per user 2012

6

5

5

4

4

3

3

2013 4

2014 5

5

Estonia

Finland

2 0 Denmark

Sweden

Norway

Northern Ireland

Ireland

Lithuania

26

2. Focus areas

2.4. Society

2012

2014

2013

2.4. 2 Financial literacy Control Your Money Control Your Money is an online learning universe for young people aged 10 to 15. It is designed so that maths teachers can use it as a supplement to personal finance curricula. The site is non-branded, free and available to everyone. Control Your Money has been launched in Denmark, Finland, Sweden, Norway, Lithuania , Estonia and Northern Ireland.

No. of classes registered

Missions completed

3,000 1,500

20,000 1,191

104

0 Denmark

Finland

17 Sweden

61

10 Northern Ireland

Norway

261

10,000

5,881

325

0 Lithuania

Denmark

Finland

76 Sweden

4 Northern Ireland

No. of teachers registered

Missions completed per class signed up

1,000

10

500

446 43

0 Denmark

11

Finland

Sweden

41

10 Northern Ireland

Norway

5

131

3

4

6

118 Norway

26 Lithuania

4 1

1

0 Denmark

Lithuania

Finland

Sweden

Northern Ireland

Norway

Lithuania

Teaching financial literacy In 2010, in conjunction with the launch of Control Your Money, we launched the Teaching Financial Literacy website to help prepare teachers for teaching financial literacy to 5-15 year-old pupils. The site is free for everyone, non-branded, and it consists of tutorials and other material for the users. The site – developed on the basis of expert knowledge – includes information, teaching tips and exercises. There are large differences in the usage from country to country.

Visits 2012

4,000 2,000

2013

590

503

0 Denmark

Finland

64 Sweden

191 Northern Ireland

497

2014

Norway 27

2. Focus areas

2.4. Society 2.4. 2 Financial literacy Mind Your Money In 2010, Mind Your Money, for 18-27 year-olds, was rolled out in Denmark, Sweden and Norway. Its purpose is to improve the financial skills of young adults by providing financial information closely related to relevant life situations, such as travelling, starting studies, starting a home and having children.

In 2013 , a budget app was launched as part of the Mind Your Money universe. The budget app can also be found on the Mind Your Money facebook page.

Visits 15,000

2012

Visit the Mind Your Money universe on facebook. www.facebook.com/MindYourMoney

2013

10,000

2014

5,753

5,000

1,291

0

Denmark

Norway

In 2014 ,we reached more than 30,000 followers on the Mind Your Money facebook page. During the year, we held two live chats in which young people had the opportunity to interact with an adviser from Danske Bank and get advice in a more informal context.

188

Sweden

Dream On

Dream On is the most recent initiative in Danske Bank Group’s Financial Literacy programme. It was launched in 2011. Its purpose is to stimulate young people’s interest in and knowledge about personal finance. Players face challenging questions and dilemmas based on their own dreams, and the game focuses on the principle that sound personal finances better enable people to take advantage of opportunities in planning their lives and to reach their financial dreams. The primary target group for Dream On is 15-17 year-olds.

Dream On 2014 Denmark

6,000 4,000 2,000

Percentage of games finished (%)

4,434

2012

60

2013

40

2,062

588

676

20

2014 13

0

0 Logons Games Games Friends created finished invited

Denmark 28

2. Focus areas

2.4. Society 2.4.3. Value distribution DKK millions

At Danske Bank, we want to run a value-creating business that contributes to the local communities where we operate. Adding value takes many forms. It can be the return we provide to shareholders, the sound advice we give customers, or the knowledge that our employees bring to work. The economic stakeholder model shows these interactions and how mutual value is created. The value distribution is based on data from Annual Report 2014 and Fact Book Q4 2014. Value distribution (Core business)**

2014 DDKm

Income

2013 %

43,866 100.00%

Suppliers Employees Management

2012

DKKm

%

DKKm

39,740

100.00%

%

45,662 100.00%

4,724

10.77%

5,478

13.78%

5,274

11.55%

12,533

28.57%

12,960

32.61%

13,168

28.84%

59

0.13%

52

0.13%

52

0.11%

1

45,662

Operating expenses

22,641

23,794

24,642

Profit before loan impairment charges

12,126

15,947

21,020

Loan impairment charges

2,788

4,111

7,680

Goodwill impairments

9,099

-

-

Profit before tax, core

9,338

11,836

13,340

Profit before tax, Non-core

-1,503

-1,711

-4,801

Profit before tax

7,835

10,059

8,539

Tax

3,989

2,944

3,814

12,945

7,115

4,725

Government

6,702

15.28%

5,594

14.08%

6,270

13.73%

Operating expenses

Investors

3,846

8.77%

7,115

17.90%

4,725

10.35%

Staff costs

20,000 10,000 0 2014 Suppliers 1 Figures in this table

5,478

Employees

5,274

12,960 52 5,594 7,115

2013 Management

13,168 52 6,270 4,725

2012 Government

Investors

are for illustrative purposes only. In case of discrepancies, the audited financial information in the annual

report prevails. ** Figures for 2012 , 2013 and 2014 do not add up to 100% because the value distribution is reported only for core business operations. See Annual Report 2014.

7,115

4,725

23,794

24,642 14,726

14,121

14,538

1,184

1,124

950

Depreciation and amortisation charges

2,542

2,573

2,908

Suppliers

4,724 12,583 59 6,702 3,846

3,846 22,641

VAT Impairment charges

30,000

2012

39,740

Net profit for the year

40,000

2013

43,866

Net profit for the year before goodwill impairment charges and tax

Trend in value distribution

2014

Total income

Staff costs Financial services employer tax & social security costs Remuneration of BoD Remuneration of Ex. Board Employees Remuneration of BoD Remuneration of Ex. Board Management

70

81

784

4,724

5,478

5,274

14,121

14,538

14,726

1,529

1,526

1,506

9

9

9

50

43

43

12,533

12,960

13,168

9

9

9

50

43

43

59

52

52

Tax Financial services employer tax & social security costs VAT

3,989

2,944

3,814

1,529

1,526

1,506

1,184

1,124

950

Government

6,702

5,594

6,270

Investors

3,846

7,115

4,725

29


3.1. Partnerships and indices 3.1.1. Selected partnerships UN Global Compact: On 9 August 2007, Danske Bank Group joined the UN Global Compact – the world’s most extensive initiative for corporate social responsibility. As a multi-stakeholder initiative, the UN Global Compact brings together all relevant actors – government, business, labour and civil society – to advance universal principles in the areas of human rights, labour standards, the environment and anti-corruption. UN PRI: Danske Bank Group is also a signatory to the Principles for Responsible Investment, which was initiated by the UN to promote increased dialogue between investors and companies. This objective is reflected in our work and experience with SRI issues. UNEP FI: As a signatory to the United Nations Environment Programme Finance Initiative (UNEP FI), Danske Bank Group is dedicated to integrating environmental considerations into all aspects of its operations. UNEP FI is a unique global partnership between the United Nations Environment Programme (UNEP) and the private financial sector. UNEP FI works closely with around 200 financial institutions that are signatories to the UNEP FI Statements and a range of partner organisations to develop and promote linkages between the environment, sustainability and financial performance. UNI Global Union: Danske Bank Group Union has become the first European financial company to sign an agreement with UNI Finance, a division of UNI Global. The framework agreement outlines the Danske Bank Group’s commitment to ensuring fundamental employee rights within areas such as equal remuneration, competency development and safety as well as the right to association. UNEP Climate Neutral Network: In 2008, UNEP launched a Climate Neutral Network. The aim of the network is to support the exchange of information and networking to promote a transition to a low-emission and eventually a climate-neutral society. The Group joined the network on 4 December 2009, the date on which we announced our carbon-neutral status. Carbon Disclosure Project: Danske Bank Group is signatory to the Carbon Disclosure Project (CDP) and has reported to CDP since 2006. CDP is an independent not-for-profit organisation working to promote greenhouse gas emissions reduction and sustainable water use by businesses and cities. CDP provides a transformative global system for thousands of companies and cities to measure, disclose, manage and share environmental information.

GRI G4-16: Memberships of associations

30


3.1. Partnerships and indices 3.1.2. FTSE4Good Index Since 2009, the Group has been included in FTSE4Good, one of the world's leading sustainability indexes. The index contains companies with a strong corporate responsibility performance. It is managed by the Financial Times and the London Stock Exchange. Read more about the index at www.ftse.com/products/indices/FTSE4Good.

3.1.3. ECPI Indices Since 2008, Danske Bank Group has been included at the ECPI Ethical Index Global and the ECPI Ethical Index Euro. The ECPI SRI Screening Methodology is based on a two-step approach. The first step is a positive screening based on about 100 tests on ESG (Environmental, Social and Governance) indicators. The second step entails excluding companies active in controversial sectors such as tobacco, military/ defence, alcohol and gambling. The final outcome of the analysis is expressed in a synthetic rating. Read more on www.e-cpartners.com.

3.1.4. STOXX Global ESG Leaders Indices Since 2013, Danske Bank Group has been included at the STOXX Global ESG Leaders Indices. The STOXX Global ESG Leaders index offers a representation of the leading global companies in terms of environmental, social and governance criteria based on ESG indicators provided by Sustainalytics. The index is a composite of the following three ESG sub-indices: the STOXX Global ESG Environmental Leaders, the STOXX Global ESG Social Leaders and the STOXX Global ESG Governance Leaders indices. Read more on www.stoxx.com.

31


3.1. Partnerships and indices 3.1.5. Dow Jones Sustainability Index — Danske Bank rating overview The scores reflect the company's performance across economic, environmental and social criteria. They are compared with the industry average, the best score in the DJSI World and DJSI Europe indexes and the worst score in the company's industry in each index. The values for the total score and the dimension and the criteria scores are shown on a scale from 0% to 100%. The dimension weightings in the total score are shown in the last column. The DJSI Guidebooks on www.sustainability-index.com contain further information on the assessment methodology.

Dow Jones Sustainability Index results, 2014 (%) Total scores

DJSI companies Danske Bank Average score score

Total score

76

60

Dimension scores (%)

Best score

Lowest score Lowest score Weighting in DJSI World DJSI Europe total score

93

77

78

100

DJSI companies

Danske Bank Average score score

Best score

Lowest score Lowest score Weighting in DJSI World DJSI Europe total score

Economic dimension

88

70

97

74

82

41

Environmental dimension

63

53

91

69

80

23

Social dimension

71

52

91

69

71

36

Danske Bank Group dimension scores 100

89 85 81 88

50

2011

65 63 54 60

68 66 67 71

2012 2013 2014

0

Economic Dimension

Environmental Dimension

Social Dimension 32