SUSTAINABLE DEVELOPMENT AND RESPONSIBILITY
The role of Municipal Guarantee Board as an authority requires that it supports the achievement of the EU’s climate goals in accordance with Article 4.3 of the TEU and takes into account the obligations imposed by the Finnish Climate Act (423/2022). In addition, pursuant to Sections 1 and 8 of the Act on the Municipal Guarantee Board, MGB must take into account the principles of sustainable development in its operations.
The promotion of climate goals in the MGB system is especially based on the formation and targeting of public support included in the guarantee. It is essential for MGB to ensure that the credit institution issuing the credit appropriately assesses the sustainability risks and adverse sustainability impacts of funding operations as well as the measures and plans related to their management.
The legal obligation has been confirmed in the framework agreement between the Municipal Guarantee Board and Municipality Finance Plc. In accordance with the framework agreement, the credit institution must take into account the sustainability risks and impacts of its operations and contribute to achieving the objectives of the European Climate Act (EU) 2021/1119.
The credit institution is committed to complying with the sustainability reporting requirements pursuant to the CSRD Directive (EU) 2022/2464 and implemented in national law. This requires taking into account the principle of double materiality and consulting stakeholders when defining material sustainability themes. In accordance with the framework agreement, the credit institution treats the Municipal Guarantee Board as a stakeholder group within the meaning of CSRD reporting and hears it when preparing the report.
MGB emphasises the significance of the support and added value it provides as part of the value chain of joint funding by municipalities. The value chain includes the Municipal Guarantee Board and its member organisations, the credit institution and its owners, investors and customers as well as supervisory authorities, municipal operators and other partners.
MGB has created an assessment procedure that will enable it to systematically monitor and assess the credit institution’s management of sustainability risks and the implementation of the sustainability work. The assessment is based on the credit institution’s sustainability reporting and it is carried out annually.
The principles governing sustainability have been included in MGB’s strategy.
As part of its sustainability work, MGB regularly reviews the sustainability of its investment operations and surveys the views of its stakeholders on the operations of the Municipal Guarantee Board.
