Green Bonds

As a mortgage provider, NN Bank wants to contribute to the reduction of greenhouse gas emissions in houses, by offering financing options to make homes more sustainable. NN Bank believes that Green Bonds are an effective funding tool to channel financing to projects that have demonstrated clear environmental or climate benefits and contribute to the achievement of the UN Sustainable Development Goals. By issuing Green Bonds, NN Bank intends to align its funding strategy with its mission and sustainability strategy.

Green Bond Framework

In order to address environmental and sustainability challenges where NN Bank can drive positive change, NN Bank has established a Green Bond Framework for issuing Green Finance Instruments to finance Green Buildings. The Framework was first published in June 2021 and since then, Green Bonds have become a significant component of the Bank’s funding mix. To reinforce its sustainability ambitions, NN Bank has decided to update its Framework in
February 2024. Under this Green Bond Framework, NN Bank may issue Green Bonds to
finance and/or refinance mortgages for energy efficient residential properties
in the Netherlands. See NN Bank unsecured funding and NN Bank Soft Bullet Covered Bond Programme webpage for all Green Bond issuances including Final Terms.

Reporting

NN Bank will report annually on the allocation of the Green Bond net proceeds to the Eligible Green Loan Portfolio until full allocation and on the environmental impacts of the Eligible Green Loan Portfolio funded with the Green Bond proceeds. In addition, a limited assurance report by the auditor on the allocation of proceeds will be published on an annual basis.

Energy Efficient Mortgage Initiative / Label

NN Bank and Woonnu are members of the Energy Efficient Mortgage Initiative (EEMI) and the Energy Efficient Mortgage Label (EEML). The objective of the initiatives is to stimulate and finance investment in energy efficient buildings and energy saving renovations, and by doing so help to secure a greener and more sustainable future for all. Contributing to regulatory alignment, such as EU taxonomy, Mortgage Credit Directive, CRR etc., and greater transparency regarding climate risks and portfolio resilience will benefit access to energy efficiency financing and green bond markets. The Harmonised Disclosure Template is reported by Woonnu to support such transparency. See also the EEML website.