Responsibility at MuniFin

Responsibility guides choices

MuniFin’s mission is to build a better future in line with the principles of responsibility and in cooperation with its customers. Through its work, the company promotes the achievement of nearly all of the sustainable development goals (SDG) set by the United Nations. In the review year, the company focused particularly on mobilising the Responsibility Policy in practical work.

MuniFin and its stakeholders, customers, investors and Finnish society need the decisions and operations of the company to be sustainable. Through its work, the company promotes the achievement of nearly all of the sustainable development goals (SDG) set by the United Nations and the focus areas of the Finnish government’s Agenda 2030 implementation plan, which include a carbon neutral, resource-wise and competent Finland where non-discrimination and equality are secured. Responsibility is built into the company’s operations and financed projects are used to build the Finnish welfare society.

Due to its wide social impact, MuniFin is also building partnerships and cooperation with other key stakeholders in a goal-oriented manner. These include the Association of Finnish Local and Regional Authorities, Keva, the Housing Finance and Development Centre of Finland (ARA), the Ministry of the Environment, the State Treasury, the Finnish Environment Institute (SYKE), universities and other higher education institutions, commercial banks, and many others.

Kuntarahoitus - Vastuullisuus

The municipal sector plays a large role in the implementation of Finland’s objectives for sustainable development. MuniFin’s green finance supports the carbon neutral target by encouraging municipalities to engage in more environmentally friendly construction. An impact assessment of green finance projects is carried out.

MuniFin contributes to building the foundations of Finnish welfare. In its work, it focuses particularly on promoting education and learning, health and wellbeing and the safety and accessibility of housing. Non-profit housing construction accounts for about 40% of MuniFin’s financing annually. In addition to providing affordable apartments and housing for people with special needs, non-profit housing construction can prevent inequalities between regions and people.

The company supports Finnish universities and other higher education institutions through donations and competence sharing, especially with regards to municipal sector finances and investments. Together with the cities of the Greater Helsinki Area and the Association of Finnish Local and Regional Authorities, MuniFin has donated Finland’s first professorship of urban economics to Aalto University to provide expertise and knowledge on urban vitality and industrial policy issues.

In 2018, new projects were launched with parties such as the University of Helsinki. At the Mini Challenge, a weekend-long workshop organised in December by MuniFin, the University of Helsinki and Helsinki Think Company, participants examined the building blocks of wellbeing and designed solutions for assessing the impacts of investments. With the University of Helsinki, MuniFin also prepared the Hyvä (yhteis)kunta (Affluent Society) Master Class programme that will be held in 2019 on the theme of sustainable wellbeing in the municipalities and cities of the future. MuniFin also teamed up with Yrityskylä to support its activities in educating sixth-graders about working life, the economy and society. More information on partnerships and cooperation projects is available in the Responsibility Report.

Forerunner in sustainability

Long-term value creation through responsible products and services

Developing well-being at work

Strong corporate governance


The Responsibility Policy applies to everyone

In March 2018, the company published its first Responsibility Report. Covering 2017, the report discusses the main principles, objectives and indicators of responsibility at MuniFin. The Responsibility Report for 2018 will be published in March 2019.

In February 2018, MuniFin ratified a company-level Responsibility Policy (previously referred to as Code of Conduct). It was also published on MuniFin’s internet site. The Responsibility Policy applies to all aspects of MuniFin’s operations and employees. The policy defines how the company operates and what is expected from its employees. With the Responsibility Policy, MuniFin aims to reduce the risks to which the company and its employees are exposed, in particular operational and reputational risks, which can have a considerable adverse impact on the company’s operations and profitability.

Three training events on the Responsibility Policy were organised for employees during the year. These events paid particular attention to identifying ethically unclear situations and what to do in such situations. In addition, each employee must pass online test on the Responsibility Policy.

Responsibility in all areas of operations

MuniFin grants financing only when the investment decision is deemed to be sustainable in the long term for the customer’s finances. MuniFin helps customers to find the solution that is the best fit for their changing needs and finances, not only now but also in the later phases of the financing lifecycle.

In funding, responsibility is most apparent in green bonds and other sustainable bonds that the company may issue in the future. Integral aspects of MuniFin’s operations in the international capital markets include openness, transparency, predictability, avoidance of high-risk products and, above all, acquiring financing for Finnish customers at the most cost-effective price. MuniFin also monitors the responsibility of its investments based on an ESG score calculated on a quarterly basis.

At MuniFin, significant efforts are put into the well- being and job satisfaction of employees as well as offering equal opportunities. The company monitors defined targets and indicators for the development of well-being at work. MuniFin’s employees feel that their work is meaningful. The company is making greater use of partners, especially in system development. Responsibility is also taken into consideration in the selection of partners and development efforts. Development projects that support responsibility are prioritised. For more information on responsibility at MuniFin, see the company’s Responsibility Report.