LJUBLJANA - Nova Ljubljanska Banka (NLB) Group has significantly improved its Environmental, Social, and Governance (ESG) risk rating, according to a recent assessment by Morningstar Sustainalytics, a prominent ESG research and data firm. NLB's new rating of 10.5 indicates a low risk of material financial impacts from ESG factors, placing the bank in the top 5th percentile of all banks evaluated by the firm.
This marks the third consecutive year that NLB Group has enhanced its ESG rating. In the previous year, the bank received a rating of 16.0, which was itself an improvement from 2022's rating of 17.7. The current improvement reflects a 34% increase from last year's score, attributed to NLB's enhanced performance and a recent update to Sustainalytics' rating methodology.
The bank has made significant strides in areas such as Data Privacy, Cybersecurity, Responsible Marketing Policy, and Responsible Asset Management. These efforts have been recognized and have contributed to the improved rating. The updated methodology by Sustainalytics also played a role, with the introduction of two standalone Material ESG Issues for Corporate Governance and Stakeholder Governance and an expansion in the content of existing Data Privacy and Cybersecurity Material ESG Issues.
This progression in ESG performance is particularly notable as NLB was previously the first bank headquartered in Southeast Europe to obtain an ESG risk rating from Sustainalytics and the first among companies listed on the Ljubljana Stock Exchange.
The ESG risk rating is akin to a credit rating but focuses on a company's adherence to environmental, social, and governance standards rather than creditworthiness. Such ratings are increasingly important to investors who are looking to gauge the sustainability and ethical impact of their investments.
The bank's improved ESG performance is a testament to its commitment to responsible operations and creating a positive impact in these critical areas. It is important to note, however, that the information provided by Sustainalytics does not constitute investment advice nor an endorsement of any product or strategy, and is solely for informational purposes.
The data and methodologies used by Sustainalytics are proprietary, and the firm, along with its content providers, accepts no liability for their use or for any trading decisions or losses related to their use. The information is based on a press release statement and is subject to conditions outlined by Sustainalytics.
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