Finance Norway is the umbrella organisation representing the finance sector in Norway, including the Norwegian Savings Banks Association. Member banks of Finance Norway are making a responsible contribution to the community through donations, the organisation of awards and scholarships, the implementation of financial education programmes, and making responsible investments.
- Savings banks’ donations
Given the legal structure of the savings banks and the savings banks foundations in Norway, a substantial part of their profit is redistributed to different NGOs in the community. The savings banks sector in Norway consists of 109 independent savings bank spread all over the country. In addition to the banks there are also 21 savings banks foundations, owning shares and equity certificates in savings banks. Annually savings banks and savings banks foundations contribute with approximately 800 million NOK (approx. 108 million Euro) of donations. The total amount ranks savings banks and foundations among the largest private contributors to sports, culture and voluntary work in Norway. Donations to non-governmental organisations (NGO’s) are an important part of the savings banks uniqueness. 800 million (NOK) is a significant contribution, benefiting thousands of smaller and larger projects and purposes all across the country. The donations represent a continuous history of 190 years, where the sharing of profits from banking operations with the local community has been a cornerstone of the savings banks' business model. The total amount of donations has grown rapidly in recent years, with the exception of 2009. For the last ten years the overall distribution of donations has exceeded 6 billion kroner (NOK).
- Awards and scholarships
Norwegian savings banks and foundations have also instituted around 250 prizes and scholarships, in support of local talents or enthusiasts.
- Financial Education
Finance Norway (FNO) and a large number of its members put considerable resources into information and education at schools nationwide. Finance Norway wishes to improve and promote financial institutions’ efforts in this area, and encourages members to work with schools. Financial education is a prioritized issue for Finance Norway. Finance Norway and many of its members cooperate closely with Junior Achievement - Young Enterprise Norway (JA-YE). The JA-YE enterprise and economic education programs are designed for young people and are implemented through a partnership between local businesses and schools. More than 60 banks and insurance companies in Norway cooperate with schools. Last year nearly 17,000 pupils in secondary schools were taught by employees from different banks throughout Norway. Through JA-YE different fields are covered such as “Economics for success” (for ages 13-15), company programs (15-18) and graduate programs (19+). The banks involved have their own websites.
1) Finance Norway also provides educational tools in order to facilitate financial education initiated by its members. These are aimed at secondary school level and cover personal finance, including basic insurance topics. In close cooperation with The Norwegian State Housing Bank and The Norwegian Labour and Welfare Service (NAV) Finance Norway has recently developed a digital tool for financial education, called Run your own life. (see link to website below). The main target group is youth within the age group 14-19 and the tool draws your attention to what will affect your ability to finance your first home. The consequences of short-term consumption on long-term savings are highlighted.
Based on the digital tool Finance Norway and Junior Achievement –
Young Enterprise Norway (JA-YE) have developed an educational tool meant for secondary schools. The tool draws the pupils’s attention to income, spending and savings and demonstrates the consequences of different financial choices.
2)
On your own - guide and financial literacy test
Together with the Consumer Ombudsman, Finance Norway has produced a guide for banks and their employees containing information that young people aged 16-25 need when they come of age, leave home and come to stand on their own two feet. Banks already have good information initiatives in place for this target group, but the Consumer Ombudsman and Finance Norway are keen to see a more systematic approach
Based on input from young people themselves the partnership with the Consumer Ombudsman has been extended. Youngsters themselves have suggested that a “financial literacy test” should be developed, and this test was launched in September 2013. It is digital and based on the topics presented in “On Your Own.” The test is intended for young people who want to check their own knowledge before making a visit to their bank. Bank staff can also use the test when working with young adult customers, and it may also be a useful aid for teachers and bank staff when assessing pupils’ knowledge of personal finance.
The financial sector in Norway accepts a shared responsibility for investee companies’ compliance with global minimum standards and ethical guidelines. Human rights, employee rights, the environment, anti-corruption, and weapons and tobacco production are the main focus areas. The financial industry’s guidelines for responsible investment are anchored in the UN Global Compact, the UN’s Principles for Responsible Investment (PRI) and the OECD’s Guidelines for Multinational Enterprises.
Responsible investment also builds on the premise that responsible business pays off in the long run: short-term gains can easily undermine long-term performance.
Negative screening
Some companies monitor the market continuously and intervene in the event of serious incidents or systematic failings. The idea is always to steer companies in a positive direction, giving them the opportunity to account for themselves and put things right. This process often involves the following requirements:
- The offending behavior must end.
- The behavior and its consequences need to be addressed responsibly.
- There must be systems and procedures to prevent recurrence.
- A third party must verify points 1 to 3.In the event of an unwillingness to put things right, the company will be excluded. This approach is known as negative screening.
Positive screening
Other financial institutions also use positive screening, where companies are compared and the best performers are chosen.
Companies are ranked on the basis of their environmental management systems, anti-corruption activities, corporate governance principles, approach to employee and human rights, and so on.
These institutions see negative screening as a first step and believe that more is required to ensure sustainable development in a world of strong population growth and struggling ecosystems.
Different practices
Practices vary when it comes to publishing analyses and assessments. Some institutions are open about their guidelines and about which companies are excluded and why.
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