1.3 Bank of Finland’s climate impacts

In their emissions calculations for 2024, the Bank of Finland and the Financial Supervisory Authority (FIN-FSA) modified the calculation of value chain emissions, but otherwise followed the same principles as in previous years. The total combined emissions of the Bank and the FIN-FSA were lower than in 2023, which was attributable particularly to the more accurate emissions data on construction and building repair projects.

The combined carbon footprint of the Bank and the FIN-FSA has been calculated since 2021 using the internationally recognised and standardised Greenhouse Gas (GHG) Protocol guidelines.

In 2024, the Bank and the FIN-FSA updated the emission factor coefficients in their emissions calculations and broadened the coverage of the calculations in respect of the value chain’s indirect emission sources, particularly from the primary production of fuels and purchased energy.

Overall, the greenhouse gas emissions from the operations of the Bank and the FIN-FSA are minimal. Most are indirect emissions occurring in the value chain.

Calculation of Bank and FIN-FSA carbon footprint follows GHG Protocol framework

The GHG Protocol used as the standard for the calculations divides emissions into three categories known as 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.

Scope 2: these are indirect emission sources related to the consumption of purchased energy.

Scope 3: these are emission sources in the organisation’s entire value chain. 

The emission sources in 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 leased by the respective organisations, refrigerant leaks, and the consumption of purchased energy in the organisations’ workspaces and facilities.

Indirect emissions from the generation of purchased energy (scope 2) relate to the consumption of electricity and heating. These indirect emissions were calculated using a market-based calculation method that accounts for the production methods used by the Bank’s and the FIN-FSA’s energy suppliers. 

Emission sources in the value chain (scope 3) in 2024 include the purchases made and services used by the Bank and the FIN-FSA, investments in construction and building repairs, primary production of fuels, purchased energy and transport, treatment of office waste, business trips, employee commuting, working from home, and the energy consumption of tenants.

Total emissions decreased in 2024

The combined carbon footprint of the Bank of Finland and the FIN-FSA in 2024 was 5,040 tCO2e. This represents a decrease of 11% in total emissions compared with 2023.

The combined emissions from the operations of both organisations (scope 1 and 2) in 2024 amounted to 1,346 tCO2e, an increase of 9% from the previous year.

This moderate growth in emissions from operations was attributable to scope 2 emissions, specifically the production of purchased district heating. The district heating consumed in some of the premises was more carbon intensive than the previous year, which meant an increase in the Bank and FIN-FSA emissions from district heating.

The main premises of the Bank of Finland and the FIN-FSA have a supply contract for renewable electricity. The electricity purchased and consumed on this basis has been 100% renewable energy in the past couple of years. 

Calculation of emissions from construction investment more accurate than the previous year

The calculation of construction investment emissions under scope 3 was significantly more accurate in 2024 than previously.

Construction investment in 2023 was calculated entirely on the basis of costs using information on average emissions found in academic literature. In 2024, project-specific emission data was available for an estimated 53% of the investments in construction and building repair projects. The availability of emissions data on the project-specific consumption of materials and energy resulted in the calculations of emissions from construction investment being significantly more accurate than the cost-based calculations. 

In the case of construction investments for which no exact emissions data was available, emissions were calculated using cost-based information and project-specific emissions data from other projects.

The calculations for 2024 had a broader coverage regarding the calculation of emissions from primary production of the fuels and purchased energy that were consumed. Furthermore, emissions from the primary production of fuels used in business trips and employee commuting were taken into account for the first time in the calculations of the Bank and the FIN-FSA.

Largest emission sources of the Bank and FIN-FSA located in the value chain

Most of the emissions from the Bank of Finland and the FIN-FSA were generated in the value chain (scope 3). These scope 3 emissions in 2024 amounted to 3,694 tCO2e, which was 73% of the total combined emissions.

The most significant emission sources in the value chain were procurements and purchased services, business trips, and the energy consumption of tenants in the Vantaa leased premises.

Scope 3 emissions decreased by 16% compared with 2023. This was attributable particularly to the more accurate emissions data on construction and building repair projects than previously. In the future, the aim is to further increase the share of project-specific emissions data in the calculations.

In the value chain emissions, the emissions from business trips and from leased premises increased moderately in comparison with 2023. The increase in emissions from business trips can be explained by the inherent variability between the years, while the increased emissions from the Vantaa leased premises are due to a rise in the carbon intensity of the district heating consumed in comparison with the previous year.

The Bank and the FIN-FSA monitor the environmental impacts of their operations using a metric that incorporates operating costs.

The metric takes account of all the emissions from the Bank and FIN-FSA operations and value chain (scopes 1–3). In 2024, the figure for emissions relative to operating costs was 43 kg/tCO2e/EUR 1,000.

Read more about the climate impacts of the Bank of Finland’s investment activities.

The Bank of Finland’s carbon footprint from its own operations shrank by 11% in 2024.