ODL is committed to implementing the climate policy and goals set out at the Paris Climate Conference. This means that achieving net-zero greenhouse gas emissions by 2050 will be the norm and a condition for our insurance and financial aid products.
In order to uphold responsible and sustainable business practices, which respect the environment, human rights, and contribute to the fight against corruption, money laundering and the financing of terrorism, ODL also supports:
- United Nations Sustainable Development Goals, especially goal 9, 14 and 15;
- Multilateral environmental standard and agreements, including the European Green Deal
- The OECD Guidelines for Multinational Enterprises
- World Bank Safeguard policies and IFC performance standards
- The Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (SFRD)
- The Directive 2013/34/EU of the European Parliament on the disclosure of non-financial and diversity information by certain large undertakings and groups
- The Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (Taxonomy)
- The Guidelines regarding the disclosure of sustainability reports by the businesses (CSRD)
- The environmental and social goals and commitments of the Luxemburgish Government
In addition to the OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and environmental and social due diligence, the Revised Recommendation of the Council on Bribery and Officially Supported Export Credits and the Recommendation on Sustainable Lending Practices and Officially Supported Export Credits, ODL has adopted in April 2022 an ESG procedure, in cooperation with its traditional client base. This procedure is applicable to all insurance and financial support applicants, as well as insurance requests taking into consideration governance, environmental and social criteria, and sustainable financing. The procedure is reviewed on an annual basis and will gradually reduce greenhouse gas emissions within the projects ODL supports.
Moreover, ODL supports the objectives outlined in the Council Conclusions on export credits approved on the 15th of March 2022. In accordance with these conclusions, ODL will not provide officially supported export credits to projects in the fossil fuel sector[1] except in limited and clearly defined circumstances that are consistent with a 1.5°C warming limit and the goals of the Paris Agreement:
- Activities or sectors that use fossil fuels for production, including but not limited to heavy industry with a need for high temperature (e.g. cement and steel production) or the transport sector;
- Maintenance or other services intended to ensure the continued safe operation of fossil fuel installations or infrastructure, thus maintenance dredging works that are essential in keeping the ports and their access channels safe and navigable;
- Infrastructure works, such as the construction or improvement of a road network that will not be used exclusively for the fossil fuel energy sector;
- the exploration, production, transport, storage, refining and distribution of the fossil fuels needed to ensure the country’s energy security, provided that they are part of an energy transition strategy aimed at reducing greenhouse gas emissions and integrating renewable energies.
The National Institute for Sustainable Development and Corporate Social Responsibility (INDR) promotes CSR and offers full support to companies. As a centre of expertise, it undertakes a normative role, distributes knowledge on CSR and collaborates with the main players in sustainable development. Link : https://indr.lu/fr.
To know the legal framework on sustainability and the financial aid available to finance your sustainable investment projects, please visit https://www.houseofsustainability.lu/.
[1] Namely projects of exploration, production, transportation, storage, refining, distribution of coal, crude oil, natural gas, and unabated power generation.