1.4 Environmental impact of Bank of Finland’s activities in 2023

The Bank of Finland aims to continuously improve its protection of the environment and to increase the efficiency with which it uses energy and materials. The total emissions of the Bank of Finland and the Financial Supervisory Authority (FIN-FSA) fell significantly in 2023 as a result of energy saving measures in the various properties and changes in construction investment.

The carbon footprint of the Bank and the FIN-FSA has been measured since 2021 using the internationally approved and recommended Greenhouse Gas (GHG) Protocol guidelines.

No significant changes have been made to the emission calculation for 2023 in comparison with the previous year’s calculation. The emission results for 2021–2023 are comparable with each other as they all use the new method of calculation. However, these results are not comparable with emissions data from earlier years.

Bank of Finland’s carbon footprint in 2023

Globally recognised GHG Protocol guides calculation of Bank of Finland’s carbon footprint

The GHG Protocol is the standardised calculation method that is most widely used internationally to determine and report on the greenhouse gas emissions of companies and other organisations.

The GHG Protocol divides emissions into direct and indirect emissions using three different emission categories or ‘scopes’.

Scope 1: these are direct emissions that occur as a result of an organisation’s own operations, and they are the easiest to manage. The Scope 1 emission sources of the Bank of Finland and the FIN-FSA relate to fuel consumption in vehicles and equipment owned or hired by the organisation.

Scope 2: these are indirect emission sources related to the use of purchased energy in the organisation’s workspaces and facilities, such as emissions from the generation of electricity.

Indirect emissions from the generation of purchased energy were calculated using a market-based calculation method. The calculation therefore takes into account the power generation method used by those supplying energy to the Bank and the FIN-FSA. The energy purchased is more environmentally friendly than the average for Finland as a whole.

Scope 3 covers the emission sources for the organisation’s entire value chain. Indirect emissions in the value chain relate to the purchases made by the Bank and the FIN-FSA, the services they use, construction investment, primary production of fuels purchased, transport, office waste, business trips, commuting, working from home and the energy consumption of tenants.

Energy saving measures

The Bank of Finland’s carbon footprint decreased in 2023 due to energy saving measures and despite the global political situation

The combined carbon footprint for the Bank of Finland and the FIN-FSA in 2023 was 5,514 tCO₂e, which covered emissions from their own operations and from the value chain. This was a reduction of 33% from the previous year’s total.

The emissions from the operations of both organisations (Scope 1 and Scope 2) amounted to 1,229 tCO₂e in 2023, representing a reduction of 5% on the previous year’s figure.

Scope 2 emissions were affected by several factors. A number of energy saving measures were made at the Vantaa premises in 2023, reducing overall electricity consumption. However, emissions from energy production in Finland rose as a result of Russia’s war in Ukraine, making both heat and electricity generation more carbon intensive than previously, and renewable energy sources were used less in production than before.

Energy production will continue to focus on low-emission forms of production. The reduction in electricity consumption will also be reflected in lower emissions in Vantaa.

Some of the lighting at the Vantaa premises was replaced with LED lighting, and frequency converters were installed in the air conditioning system to reduce energy consumption. Thermal insulation of the premises was improved by renewing some of the external glazing with more energy efficient material and by improving the insulation of the building’s facade.

These measures reduced electricity consumption by 11%, but differences in heat consumption are likely to be seen only in the years ahead, due to annual temperature fluctuations.

Energy saving measures were also carried out at the Helsinki premises, though their impact on emissions will be seen only after a time lag. Restoration work on the main doors of the Rauhankatu premises and renewal of its main ventilation blowers, and the addition of frequency converters to control them, will reduce energy use, as will the air source heat pumps installed at the Lower Villa in Ramsinniemi.

Bank of Finland’s largest sources of emissions in 2023

Most of the emissions from the Bank of Finland are generated in the value chain

Most of the emissions from the Bank of Finland and the FIN-FSA are generated in the value chain (i.e. they are Scope 3 emissions). Scope 3 emissions in 2023 amounted to 4,286 tCO₂e, or 78% of total emissions. The most significant emission sources were construction investment, procurement, purchased services and business travel.

Scope 3 emissions decreased by 39% compared with 2022, particularly as a result of the significantly lower number of construction and renovation projects in comparison with the previous year. In addition, energy saving measures at the Vantaa premises had an impact, which also significantly reduced the indirect emissions of tenants.

Only the emissions from business travel increased significantly compared to the previous year’s calculation. This is explained by natural variations from one year to the next and by the post-pandemic normalisation of working practices.

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 from the value chain (Scopes 1–3).

The 2023 figure for emissions in proportion to operating expenses was 48 kg/tCO₂e/EUR 1,000.