Operations and strategy
1.7 Bank of Finland’s carbon footprint smaller in 2022 as result of emissions reduction measures and adjusted calculation method
The way the Bank of Finland and the Financial Supervisory Authority (FIN-FSA) calculated emissions in 2022 was more precise and comprehensive. Total emissions fell compared to the previous year, as a result of the more precise calculations but also due to the practical measures taken to reduce emissions, such as adjustments to the building services in the properties of the Bank and the FIN-FSA.
The carbon footprint of the Bank and the FIN-FSA was measured in 2022 using the same method as the previous year: the internationally approved and recommended Greenhouse Gas (GHG) Protocol guidelines.
In 2021, the Bank of Finland revised its emission calculation method to correspond to the approach employed by companies and other organisations in determining and reporting greenhouse gas emissions.
In 2022, seeking to further improve the method, adjustments were made in the calculation that reflected more closely the activities of the Bank and the FIN-FSA.
The greenhouse gas emissions from their activities are minimal. Most are indirect emissions occurring in the value chain.
Globally recognised GHG Protocol guides calculation of Bank of Finland’s carbon footprint
In 2021, the Bank of Finland switched over to using the recommendations of the international GHG Protocol methodology to calculate its emissions.
The new calculation method means that the results of the emission measurements for 2021 and 2022 cannot be directly compared to those for previous years, although, of course, the results for 2021 and 2022 are comparable with each other.
The GHG Protocol is the standardised method that is used the most in the international context to determine and report on the greenhouse gas emissions of companies and other organisations. This standardised method of calculation gives a firm structure to the process and helps identify the emission sources that are relevant to the operation.
To delineate direct and indirect emission sources, the GHG Protocol identifies three ‘scopes’ for GHG reporting purposes.
Scope 1: these are direct emissions that occur as a result of an organisation’s own operations, and they are the easiest to manage.
Scope 2: these are indirect emissions related to the purchase of energy, such as emissions from the generation of electricity.
Scope 3: these are other indirect emissions, such as those that result from logistics operations and waste management.
The ‘scope’ classification model reduces the risk of double counting, where different companies and organisations calculate emissions for partly the same operations.
Method for calculating emissions from construction investment revised in 2022
The emission sources from the operations of the Bank of Finland and the FIN-FSA (scope 1 and 2) include the fuel consumption of vehicles and equipment (owned or hired) used in the respective organisations and the consumption of purchased energy in their workspaces and facilities.
Indirect emissions from the generation of purchased energy (scope 2) were calculated using a market-based calculation method that took account of the production methods used by the Bank’s and FIN-FSA’s energy suppliers. The energy purchased by the organisation is more environmentally friendly than the average for the country.
Indirect emissions in the value chain (scope 3) relate to the purchases made by the Bank and the FIN-FSA, the services they use, construction investment, transport, office waste, business trips, commuting, working from home, and the energy consumption of tenants.
A new emission source was included in scope 3 in 2022 in the shape of emissions from the primary production of fuels purchased during the year.
Furthermore, the emissions calculation for construction investment included in scope 3 was revised as from 2022. Project-specific emissions data was available for 35% of the investment in construction and building repair projects.
The availability of emissions data on the project-specific consumption of materials and energy has meant that calculations for emissions from construction investment are now far more accurate. In future, the aim is to increase the share of project-specific emissions data in the calculation process. For now, investment in construction and building repair projects for which there are no project-specific emissions data will continue to be calculated based on cost, with reference to average emission coefficients.
Practical steps to reduce emissions and adjustments to the way they are calculated meant that the Bank of Finland’s carbon footprint was smaller in 2022
The combined carbon footprint for the Bank of Finland and the FIN-FSA was 8,284 tCO2e in 2022, and that was for the emissions from their own operations plus those in the value chain (excluding investment). In 2021 the carbon footprint figure was 10,120 tCO2e. Thus, the figure for 2022 was down by 18% on the previous year.
The emissions from the operations of both organisations combined (scope 1 and 2) amounted in 2022 to 1,293 tCO2e. This was a decrease of 19% compared to the previous year. In 2021 the largest emissions were mostly from the planned discharge of gas extinguishing systems.
The Bank of Finland’s car benefit policy was updated in 2022, and in future the organisation will only acquire plug-in or all-electric vehicles. The updated policy will reduce the operation’s scope 1 emissions.
At the Helsinki and Vantaa premises, some of the lighting has been replaced with LED lighting, which will cut energy consumption. At the Vantaa site, they have also adjusted the volume of air in the air conditioning system and replaced some of the glass façade with more energy-efficient materials, which will reduce overall energy consumption there. Total energy consumption in the Vantaa premises was down by 11% compared to the previous year.
The effect on emissions associated with energy consumption was less significant, however, because purchased electricity in 2021 was already virtually emission-free. The emission coefficient for district heating production was nevertheless greater in 2022 than in 2021.
Main indirect emission sources are associated with construction, energy consumption and procurement
The indirect emissions in the value chain (scope 3) account for most of the emissions in total (84%). The main indirect emission sources in the value chain were construction investment, energy consumption by tenants, procurement and purchased services.
In 2022, scope 3 emissions amounted to 6,991 tCO2e, which is 18% less than in 2021.
The reduction in emissions was particularly due to the revised, project-specific method for calculating emissions from construction and building repair projects, and, to a lesser extent, to a reduction in emissions from transport. All-electric cars will in future be used for the Helsinki and Vantaa sites’ postal and courier deliveries, which will help to further cut emissions from transport.
Scope 3 emissions were down overall, but emissions form procurement, purchased services and business trips made during the year were up on 2021.
The Bank of Finland and the FIN-FSA monitor the environmental impact of their operations using an indicator that presents emissions in proportion to operating expenses. It takes account of all the emissions from their own operations and those in the value chain (scopes 1–3).
Emissions in proportion to operating expenses in 2022 were 77 kg/tCO2e/EUR 1,000.
The impact on climate of the Bank of Finland’s investment activities is dealt with in its own section Responsible investment brings real emission reductions.