The OP Pohjola name is the recent rebranding (as of October 28, 2025) of Finland’s largest financial-services group, formerly known as OP Financial Group or OP Ryhmä. The Group’s new name emphasises its expertise in banking, asset management and insurance. Owned by its approximately two million owner-customers and organised through approximately 100 cooperative banks, OP Pohjola employs roughly 14,000 staff. Established in 1902, the Group today actively leverages decades of experience in serving individuals, small and medium-sized enterprises (SMEs) and large corporations. In addition to its cooperative banks, the Group owns several specialised subsidiaries. OP Pohjola’s stated mission is to promote the sustainable prosperity, security and well-being of its owner-customers and their regions.
OP Pohjola operates in three main sectors: retail and SME banking, corporate and institutional banking and insurance. This integrated approach positions the institution as one of the few Nordic providers capable of delivering a full range of financial services—banking, wealth management and insurance—within a single organisation.
OP Pohjola continuously demonstrates strong financial performance and enjoys top-tier credit ratings, underpinned by its substantial deposit and lending operations. The Group proactively pursues strategic alliances to broaden its service offerings, including partnerships with major international asset managers.
In our recent interview, OP Corporate Bank’s chief executive officer, Katja Keitaanniemi, shared insights into the bank’s extensive and evolving efforts to promote sustainability in its operations and those of its clients.
Ms. Keitaanniemi, it’s a pleasure to speak with you today….
Ms. Katja Keitaanniemi, Chief Executive Officer, OP Corporate Bank and Member of the Executive Management Team, OP Pohjola
What do you regard as the key pillars and/or objectives of the bank’s sustainability programme? Does this programme have specific targets, particularly related to the bank’s lending decisions?
OP Pohjola’s sustainability programme is built on three main pillars: climate and nature, people and communities, and corporate governance. It focuses on reducing emissions and promoting biodiversity, supporting social inclusion and well-being, and ensuring responsible governance practices, such as ethical data use and diversity in governance bodies. Its objectives go beyond environmental responsibility—they aim to embed sustainability into every aspect of daily business operations.
The programme sets clear targets that directly influence lending decisions. These include committing at least €11 billion to sustainable financing by 2028, aiming for market leadership in electric-vehicle financing and ensuring that 80 percent of fund assets are in responsible investment products by the same year. Additionally, OP Pohjola has pledged to achieve net zero emissions by 2050, which shapes its credit and investment portfolio strategies, and has sector-specific goals, such as reducing financed emissions in the energy, agriculture and housing sectors by 2030. These objectives demonstrate the strong link between its sustainability ambitions and lending policies, ensuring that financing decisions actively support the transition to a low-carbon, socially responsible economy.
By aligning strategic goals with operational practices, OP Pohjola ensures that responsibility is not just a principle but a practical, measurable part of its core business.
The programme has been approved by OP Cooperative’s Board of Directors and confirmed by its Supervisory Board, both of which monitor progress toward the set targets on an annual basis. Progress on these goals is also reported as part of OP Pohjola’s sustainability reporting.
How does the bank successfully integrate ESG (environmental, social and governance) factors and considerations into its credit origination and product-development processes?
OP Pohjola integrates ESG considerations into its credit origination and product-development processes through a comprehensive, risk-based approach that is embedded across all business lines. ESG-risk management is treated as a core element of decision-making rather than an add-on. The bank conducts systematic materiality analyses and sector-specific reviews to identify and assess environmental, social and governance risks. These insights inform its credit policies, collateral requirements and procurement practices, ensuring that sustainability factors are considered.
In credit origination, ESG factors are assessed for corporate customers through ESG analysis, and the findings (ESG scores) directly influence their credit terms and risk classifications. This integration ensures that lending decisions support both financial stability and long-term sustainability objectives.
Product development is equally aligned with the bank’s sustainability strategy. OP Pohjola has set ambitious targets, including €11 billion in sustainable financing by 2028 and ensuring that 80 percent of fund assets are invested responsibly. These goals drive the creation of its products, such as green loans, sustainability-linked loans, renewable-energy financing and electric-vehicle solutions. By embedding ESG principles into its product design and portfolio management, OP Pohjola ensures that its offerings actively contribute to the transition toward a low-carbon economy.
What are some of the key regulatory challenges the bank faces at present when incorporating ESG factors into its retail-banking operations? Do you view ESG-related regulatory and compliance requirements as significant?
While regulatory challenges are significant, they are manageable—and OP Pohjola is well positioned to navigate them successfully.
Incorporating ESG factors into retail-banking operations presents some regulatory challenges. The most significant obstacle is the lack of standardised and reliable ESG data, particularly for retail customers and small businesses. Without consistent disclosures, assessing environmental and social risks often requires banks to rely on estimates or proxy indicators. This data gap complicates credit-risk evaluations and product design, making it the single greatest challenge.
Beyond data limitations, regulatory requirements demand structural changes in governance, risk management and reporting. Enhanced disclosure obligations, stress testing for climate-related risks and the need to embed ESG considerations into lending policies all add layers of complexity. These expectations are substantial, but they are not excessive. OP Pohjola views them as an opportunity to strengthen its sustainability framework rather than as a burden. By investing in better data collection, refining risk methodologies and embedding ESG principles into core processes, the bank is confident in its ability to meet compliance standards while continuing to innovate in sustainable finance.
OP Pohjola provides financing across a broad range of sectors, including energy production. In what key ways are you aiming to reduce financed emissions in this sector over the coming years? And do you have any established timelines for completely phasing out financing for fossil-fuel-based energy production?
OP Pohjola is committed to supporting Finland’s rapid green transition, where approximately 95 percent of electricity is already generated from fossil-fuel-free sources. Our financing strategy focuses on accelerating this shift by prioritising renewable-energy projects and clean technologies. At the same time, we apply strict ESG criteria to all new lending in the energy sector to ensure alignment with climate goals.
Regarding fossil fuels, OP Pohjola has adopted a clear exclusion policy. We do not finance or insure new corporate customers engaged in coal, oil or gas exploration or production. Direct investments in coal, oil and gas exploration and production are excluded from our mutual funds. Exceptions are applied only to companies that have credible transition plans aligned with the Paris Agreement. We require large companies subject to high climate-transition risks to prepare emission-reduction plans, and we assess the credibility of those plans.
These measures, combined with our long-term goal of net zero emissions by 2050, ensure that our portfolio actively supports the decarbonisation of the energy sector and reinforces Finland’s leadership in sustainable energy.
OP Pohjola Headquarters in Helsinki, Finland
When providing financing for the agriculture and forestry sector, in what specific ways does the bank support clients in adopting climate-smart technologies and enhancing carbon-sequestration efforts? I understand that by 2030, OP has targeted a 30-percent decrease in financed emissions within this sector. How will you accurately measure such a reduction to ensure you hit your target?
OP Pohjola supports clients in the agriculture and forestry sector primarily by channelling sustainable finance toward projects that demonstrably lower emissions and enhance removals. In practice, this means prioritising financing for energy-efficiency upgrades (e.g., energy‑saving equipment and on‑farm renewable heat and power), land‑management improvements and forestry interventions that increase long‑term carbon stocks and biodiversity. These actions are guided by the bank’s sustainability programme’s commitment to offer sustainable financing and to reduce portfolio emissions over time, including a specific objective to cut the emissions intensity of the agriculture portfolio by 30 percent by 2030 (versus 2022).
Progress against the 2030 target is measured annually using OP Pohjola’s greenhouse‑gas accounting aligned with the Partnership for Carbon Accounting Financials (PCAF) Standard (GHG Protocol Scope 3, Category 15). The bank calculates financed emissions for relevant asset classes and tracks changes against the 2022 baseline; method updates and portfolio shifts are transparently reflected in the results. OP has formalised PCAF‑based principles and governance to improve data quality and coverage over time, enabling robust attribution and consistent portfolio‑level metrics for agriculture and forestry exposures. Materiality analyses identify agriculture and forestry as significant sources of financed emissions in business loans, further sharpening the targeting of engagement and financing toward climate‑smart practices.
Energy efficiency plays a major role in OP’s ESG strategy. How exactly is the bank supporting higher levels of investment in energy-efficient buildings? And how is it promoting low-emission transport solutions?
For corporate banks, we promote investments in energy-efficient buildings through green financing products with favourable terms for properties that meet high energy standards or are undergoing efficiency upgrades.
In retail banking, our energy-renovation loan is designed to help households finance improvements that enhance energy efficiency and reduce emissions. The goal is to support customers in upgrading insulation, installing heat pumps or adopting other energy-saving technologies, thereby lowering energy consumption and costs. This product aligns with OP’s broader sustainability strategy by promoting climate-smart investments in the residential sector and accelerating Finland’s green transition.
For transport, OP supports the shift to low-emission mobility by offering competitive financing for electric vehicles and investing in charging infrastructure, aiming to lead the Finnish electric-vehicle market.
What are the main pillars of OP’s Green Bond Framework, and how actively has OP issued green bonds this year? What are some of the most important projects and initiatives that the bank has financed due to issuing green bonds?
OP Corporate Bank plc is one of OP Pohjola’s two issuing entities. As of December 31, 2024, OP Corporate Bank had issued three green bonds: a €500-million green bond in 2019, which matured in February 2024; a €500-million green bond in 2022; and a €500-million green bond in 2024.
OP’s Green Bond Framework is built on four core pillars: use of proceeds, project evaluation and selection, management of proceeds and reporting. These pillars ensure that all green bonds finance projects that contribute to a low-carbon, climate-resilient economy. Eligible categories include renewable energy, energy efficiency, green buildings, pollution prevention and sustainable water management, with strict exclusion criteria aligned with international standards, such as the International Capital Market Association’s (ICMA’s) Green Bond Principles and the EU taxonomy.
The proceeds have financed major initiatives, including renewable-energy projects, energy-efficient building developments and pollution prevention and control. These projects are selected through a rigorous process to ensure measurable environmental benefits and alignment with OP’s sustainability targets.
What are some of your most significant challenges when collecting ESG data, such as energy performance certificate (EPC) details? Are you generally satisfied with the quality of such data?
Especially in the retail sector, one of the most significant challenges in collecting energy performance certificate (EPC) details is that the information is still incomplete for a large portion of the building stock. Many properties, especially housing, lack standardised EPC documentation. However, the situation is improving steadily as Finland’s building stock renews and regulatory requirements drive better disclosure. Each year, more EPC data becomes available, reducing reliance on estimates and proxies.
While the quality of the current data is not yet fully satisfactory, OP Pohjola is actively investing in systems and governance to improve data collection and accuracy.
What main challenges confront the bank in managing ESG risks, such as climate-related risks? Are you satisfied that the bank is effectively managing such risks at present?
The biggest challenges in managing ESG risks, especially climate-related risks, are the complexity of forward-looking risk modelling and the lack of complete, reliable customer data. These factors make it difficult to assess long-term impacts accurately. Despite this, OP Pohjola has embedded ESG-risk management into its credit policies, investment decisions and governance frameworks. While data gaps remain, the bank is confident its current approach effectively addresses these risks and will continue to improve through better data collection and advanced analytics.
What do you view as the most significant trend in Finland’s sustainable development over the coming years? And do you believe that OP is well positioned to capitalise on it?
Finland’s green transition is set to continue at pace, and OP Pohjola is committed to supporting this transformation through targeted financing and advisory services. The country already leads globally in renewable-electricity production, and the next major steps will involve scaling up hydrogen-economy initiatives and accelerating investments in sustainable heat production. Hydrogen is expected to play a critical role in decarbonising heavy industry and transport. Similarly, significant investments in district heating and other low-emission heat solutions are essential to reduce reliance on fossil fuels and biomass in thermal energy.
OP Pohjola’s strategy focuses on channelling capital toward these sectors while maintaining strict ESG criteria to ensure projects deliver measurable climate benefits. By prioritising renewable energy, new technologies and sustainable heating systems, the bank reinforces its commitment to Finland’s carbon-neutral goals and helps drive the next wave of innovation in the green transition.
Sustainability regulation in Europe is undergoing a major transformation, with efforts focused on simplifying reporting requirements for companies. Despite this shift toward easing compliance, sustainability continues to be viewed primarily as a source of competitive advantage. Our clients take sustainability leadership seriously, recognising that being ahead in this area strengthens trust, drives innovation and creates long-term value.
OP Pohjola is definitely setting the sustainability standard for other banks to follow. Thank you again for your time today, Ms. Keitaanniemi.