Corporate social responsibility

In accordance with the legislative framework, Finansiel Stabilitet is required to contribute to ensuring financial stability in Denmark. This is achieved in part by preventive measures in the form of preparation of resolution plans and identification of any obstacles, and in part specifically by restructuring and resolving failing banks. In periods of financial turmoil, Finansiel Stabilitet provides security with respect to customers’ access to their accounts and other payment infrastructure by taking over failing institutions, provided this is assessed to be in the public interest. In addition, Finansiel Stabilitet organises crisis management based on the principle that the risk of losses to taxpayers is to be minimised.

In the crisis management of failing institutions, Finansiel Stabilitet is also focused on securing the highest possible value of assets taken over, thus minimising losses incurred by creditors and owners.  Moreover, when winding up an institution, Finansiel Stabilitet ensures that the disposal of activities is adapted to prevailing market conditions.

Finansiel Stabilitet aims for business with the Group’s customers taken over from failing institutions to continue under the auspices of other institutions to the extent possible or under the auspices of purchasers who are obliged to manage the customers in accordance with the Executive Order on good business practice for financial undertakings.

Finansiel Stabilitet takes over the customers of a failing institution on the existing terms and conditions and with a focus is on ensuring appropriate continuation of activities and subsequent resolution.

In recent years, Finansiel Stabilitet has taken on a number of new tasks on behalf of the government. They include the issue of guarantees for loans to install heat pumps and to buy property in rural districts and the operation of a debt coun­selling scheme for former mink farmers who remain insolvent after having received compensation from the government. Most recently, Finansiel Stabilitet has been assigned the task of managing the sale and otherwise managing assets that the government takes over from mink-related businesses in continuation of the payment of government compen­sation.

As part of its purpose of contributing to ensuring financial sta­bility, Finansiel Stabilitet has a responsibility to ensure that the activities of a company are managed in a way that, from an ove­rall perspective, is ethical, responsible and beneficial to society.

Finansiel Stabilitet and its subsidiaries strive to live up to their responsibility as employers, business partners and consumers of natural resources. The approach is based on its core activities being conducted in a manner that will minimise any negative environmental, social, human rights and anti-corruption impacts.

Finansiel Stabilitet’s core activities, including the potential takeover of failing institutions and the management of the Deposit Guarantee Scheme and the Resolution Fund, are per definition activities of critical importance to society. As a result of a new EU Insurance Recovery and Resolution Directive (IRRD), Finansiel Stabilitet and the Danish FSA have been jointly appointed as the resolution authority. Finansiel Stabilitet’s other activities comprise the special activity areas which are handled on behalf of the government in dialogue with the Ministry of Industry, Business and Financial Affairs. When carrying out these societal activities, Finansiel Stabilitet seeks to the extent possible to take into account related sustainability and social responsibility aspects.

As a result of the statutory activities, Finansiel Stabilitet, when taking over assets, whether in the case of a failing credit institution or special assets taken over for the government, may be required to “accept the estate with all assets and liabilities”. Finansiel Stabilitet cannot refuse to take over an asset by referring to e.g. environmental matters.

Finansiel Stabilitet is not subject to the Corporate Sustainability Reporting Directive (CSRD) for the 2024 financial year, but may become subject to the CSRD in future. For the time being, Finansiel Stabilitet will work with sustainability reporting on a voluntary basis.

Finansiel Stabilitet will comply with the requirements of relevant recognised standards, first and foremost by ensuring that Finansiel Stabilitet in its work respects human rights and ensures decent working conditions. This requires transparent processes and an ethical approach to the resolution of assets taken over, taking into account the rights and interests of the parties involved.

Finansiel Stabilitet is also focused on using suppliers who comply with applicable and relevant standards in the specific area. This applies in relation to social responsibility as well as to matters relating to reducing any negative environmental impacts of the activities conducted.

It is a key priority for Finansiel Stabilitet that the company’s employees are familiar with the conduct and work ethics expected of them in order that Finansiel Stabilitet may maintain the highest standard of personal and organisational integrity and prudence – both internally and externally.

Finansiel Stabilitet has prepared a number of policies for the prevention of financial crime and has initiated a number of preventive measures related thereto.

The purpose of the policy on measures to prevent money laundering and financing of terrorism is to ensure that the Finansiel Stabilitet Group complies with the legislation in force from time to time and that the Group organises risk manage­ment of known risks and manages of new risks in the area. The policy is also intended to minimise the risk of Group being misused for money laundering or terrorist financing.

Finansiel Stabilitet is also focused on preventing corruption and bribery associated with various elements, such as gifts, do­na­tions, conflicts of interest, third-party providers, and customer-related transaction risks. Compliance with the company’s policies is ensured through codes of conduct, business procedures, advice and communication, which are available to all employees of Finansiel Stabilitet.

Finansiel Stabilitet has established a whistleblower scheme, which is accessible via the website www.fs.dk.

Finansiel Stabilitet acknowledges its role and the responsibility it has in Denmark towards owners and employees. Finansiel Stabilitet has adopted and signed policies and business procedures which all employees are required to read and stay regularly updated on.

Finansiel Stabilitet has combined selected guidelines for its employees in a code of conduct, which is available on Finansiel Stabilitet’s website. This code of conduct provides clarity as to Finansiel Stabilitet’s position on independence, conflicts of interest, etc.

Finansiel Stabilitet wants to contribute to a good and challenging working life for the employees during their employment. Finansiel Stabilitet’s corporate culture encourages an open, proper and equal dialogue with emphasis on measures of individual freedom under accountability and common sense. At the same time, Finansiel Stabilitet focuses on continuous skills enhancement for its employees by offering courses and other relevant supplementary training.

Finansiel Stabilitet has a working environment organisation, the focus of which is to provide the framework for a good working environment and to ensure that employee surveys are carried out, including an annual employee satisfaction survey and a workplace assessment at least every three years. The surveys result in action plans, which are regularly followed up on. All employees of Finansiel Stabilitet have the option of contacting a working environment representative or management representative if they want the working environment organisation to take up a matter.

Finansiel Stabilitet’s workforce is adjusted on an ongoing basis to fit the scope of work. In 2024, Finansiel Stabilitet had an average of 48 full-time equivalent employees.

In performing its business activities, Finansiel Stabilitet seeks to limit its negative environmental and climate impact. As a result of Finansiel Stabilitet’s current business volume, the company’s own environmental and climate impact is relatively limited. 

As the primary objective of Finansiel Stabilitet is the resolution of activities, Finansiel Stabilitet will not be able to safeguard the same incentive management considerations expected of other financial enterprises. Finansiel Stabilitet nonetheless makes efforts to measure its impacts on the surrounding environment and set targets for reducing any negative impacts.

In the Deposit Guarantee Fund and the Resolution Fund, Finansiel Stabilitet will place a part of its assets in securities, which, in addition to complying with the set risk limits of future, newly established mandates, will also comprise provisions on responsibility and sustainability.

In performing its activities, Finansiel Stabilitet seeks to support a high level of data ethics. In order to ensure transparency and reliability in terms of data processing, Finansiel Stabilitet has drawn up a data ethics policy, which reflects the relatively simple use of data in the Company. Finansiel Stabilitet regularly arranges IT awareness activities to ensure focus on data ethics in the organisation.
An annual review with subsequent reporting is performed.

Finansiel Stabilitet seeks to promote relevant diversity in terms of e.g. age and gender at the Group’s management levels. Against this background, Finansiel Stabilitet has adopted a policy on diversity and balanced gender composition on the Group’s boards of directors and other management levels. This policy is available on Finansiel Stabilitet’s website.

The target is for the proportion of the underrepresented gender on the companies’ boards of directors and at other management levels to be at least 40%.

Three of the seven members of the Board of Directors of Finan­siel Stabilitet are women. Women thus account for 43%, and Finansiel Stabilitet meets the gender composition target set for this area. The chairmanship consists of one woman and one man.

Of the board members of Finansiel Stabilitet’s subsidiaries FS Finans V-VI and Broinstitut I and II, the gender composition is one woman and two men. Women thus account for 33% with the number closest to 40%, and the gender composition target is met. In FS Ejendomsselskab, the gender composition is three women and two men. Men thus account for 40%, and the gender composition target is met. Finansiel Stabilitet thus meets its gender composition target with respect to the subsidiaries.

The company also aims to ensure an appropriate gender composition at the Group’s other management levels. The Group’s employees should feel that they have the same career opportunities and opportunities to be considered for management positions, regardless of gender.

The day-to-day management is composed of two women and three men. Women thus account for 40%, and the gender composition target is met.