The Financial Stability Authority’s sustainability report for 2021

Management’s endorsement of the report

The Financial Stability Authority’s Management Group is committed to the sustainability work undertaken by the Authority. It has been involved in the selection of sustainability goals and judging the progress that has been made in achieving those goals in 2021.

The Authority’s Director General approved its first sustainability report on 26 April 2022.

Sustainability in the work of the Authority

The Financial Stability Authority is an independent body set up in 2015 to act as Finland’s national resolution and deposit guarantee authority.

Read more about the work of the Authority.

In many ways, sustainability is linked to the Authority’s core functions. We are a responsible operator that promotes the stability of the financial market and confidence in that market and the banking sector, and that endeavours to make public administration more effective through a continuous assessment and improvement of the viability of the deposit guarantee system and resolution framework. The Authority also ensures that the administrative fees are used appropriately by the Authority in accordance with the law and suggests areas in which public administration may be made more efficient through its association with the administrative branch of the Ministry of Finance.

Sustainability management

Preparations for the sustainability report for 2021 began by identifying what would be the Financial Stability Authority’s sustainability goals. Two experts and the Authority’s Management Group were involved in this process.

Since the start of 2022, the authority’s chief economist has had the responsibility for monitoring issues connected with sustainability, in particular the green transition, and for exploring what aspects of the subject are the most relevant for the resolution and deposit guarantee authority. The chief economist will later also be responsible for monitoring the achievement of the sustainability goals and drafting the sustainability report.

The chief economist will be reporting to the Management Group on the work connected with the sustainability goals as it progresses. The chief economist will also report to the Management Group on matters such as the risks identified at meetings of experts and the proposals for action to be made. The Management Group will decide on the policies to be adopted in response to the chief economist’s proposals and what the work of the Authority should focus on next.

As and when required, the chief economist will organise discussion meetings with the entire staff to hear ideas on how to develop sustainability work and evaluate the achievements made.

The Authority’s values have been identified and specified in collaboration with the entire staff. Sustainability is one of them. Everyone at the Authority can promote sustainability in their own activities, in partnership with other authorities and the institutions that are under the Authority’s jurisdiction. Staff commitment to the organisation’s values is measured each year in the job satisfaction barometer.

The Authority staff adhere to the organisation’s ethical guidelines in everything they do. The purpose of the guidelines is to ensure the independence and impartiality of the staff and the high ethical standards that must apply. The Director General and the deputy to the Director General are also bound by the Code of Ethics that applies to the Members of the SRB’s Plenary Session.

The approach employed in drafting the report

In spring 2021, the Financial Stability Authority selected the UN’s Sustainable Development Goals that are relevant to the work of the resolution and deposit guarantee authority. The proposal for the Authority’s sustainability goals was put before the Management Group and adopted on 10 May 2021. The goals identified were made known to the State Treasury on 13 May 2021.

In early 2022 the chief economist and the experts involved in the work defined the indicators that they would employ in monitoring and identified the progress that had been made in 2021 to achieve the sustainability goals chosen. In addition, the descriptions of the Authority’s roles and performance on the form for the identification of pertinent sustainable development goals completed in Spring 2021 were reviewed and incorporated in the separate goal descriptions given hereinafter. A draft of the sustainability report was then produced and presented to the Management Group in April 2022.

In the years to come too, implementation of the goals will be examined as from the start of the year and the Authority’s sustainability report will be drafted and released no later than in April. At the same time consideration will be given to whether the selected goals or targets and the indicators used need to be reviewed

The sustainability goals

The Financial Stability Authority has identified four UN Agenda 2030 Sustainable Development Goals of relevance to its work:

The footprint: the adverse impact on the operating environment

The main adverse impacts of the operations of the Financial Stability Authority result from business travel, the use of office space and equipment and the provision of services. The Authority’s procurement carbon footprint in 2021 was 0.2 million kg CO2eq, according to Hansel’s calculations.

Cutting business travel to a minimum during the pandemic reduced the Authority’s carbon footprint substantially. The Authority worked remotely for almost the whole of 2021. This also lowered the Authority’s footprint, as the staff were not coming into the office. The Authority will encourage remote attendance at international meetings and will allow people to work from home on several days a week, so that the organisation’s carbon footprint does not return to pre-pandemic levels. The Authority has also introduced the option of using sports and cultural tokens as work perks to pay for public transport services.

The pandemic has also meant that less and less paper is being used in the office. The use of paper will decrease too when the Authority starts to use an electronic case management system and electronic archiving system in 2022.

The size of the Authority’s carbon footprint is also affected by the use of the business premises and equipment, the maintenance of the data centre for IT purposes, and the provision of other services. The equipment and IT services used by the Authority are leased from the Government IT Centre Valtori. The Authority’s office space is rented from Senate Properties. The led lighting at the office is energy-efficient, and the ventilation and cooling systems and electricity and cable networks now entirely meet current requirements.

Conclusion

The Financial Stability Authority’s work in matters of sustainability continues. The Authority will continue to promote the credibility of the deposit guarantee scheme and resolution framework and develop them further. Other matters to attend to in 2022 include updating the working time decision where it concerns remote work, updating the guidelines on the Authority’s travel arrangements and switching to an electronic case management system.