With great impact comes great responsibility. Across their value chains, companies play a critical role in safeguarding and restoring the nature and biodiversity on which we all depend. This series features international companies setting the pace – companies that are part of the solution. This edition highlights Danske Bank and its efforts.
As Denmark’s largest bank and one of the leading financial institutions in the Nordics, Danske Bank is present in 10 countries around the world. With this scale comes an opportunity to address sustainability challenges that transcend borders — including nature loss and ecosystem degradation.
“With our size and presence, we have an opportunity to support the continued development of society by supporting our customers’ transition,” explains Thorbjørn Lundholm Dahl, Deputy Head of Group Sustainability at Danske Bank.
Anchored in Group Strategy, Guided by Materiality
In February 2024, Danske Bank launched its Group Sustainability Strategy as part of the Forward ’28 initiative. Nature and biodiversity were singled out as one of the three prioritized sustainability agendas.
The approach is rooted in materiality: first identifying and prioritizing sectors and companies with significant impacts and dependencies on nature, and second, deepening insights into those priority areas to guide effective action.
“Nature & biodiversity is one of the three prioritized sustainability agendas, reflecting our strategic intent to address the challenges posed by ecosystem degradation and biodiversity loss, and supporting our customers in this transition,” says Thorbjørn Lundholm Dahl.
From Assessment to Action in Daily Business
The strategy is made operational through a set of core measures that are used to translate commitments into day‑to‑day decisions. These include portfolio analyses to understand impacts and dependencies, engagement targets for selected customers and investee companies, and a continuous effort to increase insights into how priority sectors interact with nature and biodiversity.
“Nature & biodiversity aspects are considered in the credit risk assessment of selected sectors and in the transition risk assessment of our agriculture customers.”
Biodiversity is also embedded in responsible investment processes in Danske Bank. Inclusion, active ownership and exclusion procedures are guided by the Bank’s Responsible Investment Policy, Engagement Guidelines and Inclusion Instruction. Companies may be excluded based on biodiversity impacts — for example threats to endangered species, deforestation, water pollution, or damage to world heritage sites.
From Identification to Integration
This focus did not emerge overnight. Biodiversity was identified in 2022 as Danske Bank’s second key impact area following a Principles for Responsible Banking (PRB) impact materiality analysis. By 2024, it was formalized as one of the three prioritized sustainability agendas within the Group strategy.
“Following a materiality approach cutting across our lending and investment portfolios, biodiversity was first identified in 2022 as a relevant impact area and has since become one of our strategically prioritized sustainability agendas,” Thorbjørn Lundholm Dahl tells.
Extending the Agenda to the Supply Chain
Within its own operations, Danske Bank integrates biodiversity considerations into procurement through the Supplier Code of Conduct. All suppliers must sign this code, and for some sectors, additional sector‑specific environmental requirements apply.
“For certain relevant sectors, further sector-specific environmental requirements are specified, to which the supplier must adhere to.”
Benefits and Challenges
According to Thorbjørn Lundholm Dahl the nature & biodiversity approach offers several benefits: improved insights into customers and investee companies, better support for customers’ transition, improved risk management, and increased alignment with regulatory expectations.
Danske Bank recognizes the evolving external landscape and the uncertainty it creates regarding future policy, regulatory and market developments. Measuring actual biodiversity impacts and dependencies remains complex, as the geospatial data required for robust assessments is often not yet available.
“One of the main challenges is the evolving external landscape and the resulting uncertainty regarding future policy, regulatory and market developments. Clarity on these parameters will be important in enabling companies to make the long-term investments needed… Additionally, the complexity of measuring actual biodiversity impacts and dependencies also poses a challenge, since high quality data are still limited and geospatial data are needed.”
Looking Ahead: Focus, Collaboration, Adaptation
The way forward builds on three lessons, according to Thorbjørn Lundholm Dahl. First, focus on the most material areas — go in-depth rather than broad and superficial. Second, collaborate with knowledge experts, internally and externally, to develop a comprehensive understanding in the relevant business context. And third:
“Continuously monitor external developments and be prepared to adapt your strategy in response to these changes to support customers and transitioning of the real economy.” Thorbjørn Lundholm Dahl explains.
