DIRECT ECONOMIC VALUE During the most recent business cycle, Handelsbanken paid dividends to our shareholders every year, while remaining one of the largest payers of corporate tax in Sweden. INDIRECT ECONOMIC EFFECTS Through our lending to companies in our six home markets, Handelsbanken helps finance growth and increased employment. Handelsbanken is the largest player in terms of lending to companies in Sweden. By enabling households to finance home purchases, the Bank helps them move to locations with better employ- ment prospects, for example. The Handelsbanken Group finances more than a fifth of households’ mortgage loans in Sweden. Distribution of economic value Salaries 9.3 Allocation to profit-sharing scheme 0 Social security costs 5.1 Suppliers 8.2 Corporate tax, net (current tax and deferred tax) 4.9 Fees resolution fund, etc. 2.2 Dividend 10.7 Reinvested economic value 0.9 SEK bn 0 10 20 30 40 50 -10 2019 2018 2017 2016 2015 The preliminary allocation to the Oktogonen profit-sharing foundation made in 2018 and reversed in the first quarter of 2019 is not shown in the above diagram. THE BANK’S ROLE IN THE COMMUNITY HANDELSBANKEN | SUSTAINABILITY REPORT 2019 23
Relevant SDGs Handelsbanken’s main contributions to the Sustain- able Development Goals are indirect, through our financial services and products. Lending and financing, such as green loans, contribute to Goals 11 and 13. In the management of asset and pension management, our products are clearly linked to several of the Sustainable Development Goals, such as 5, 8, 9, 11, 13 and 16. Responsible financing & The Bank’s main opportunity to contribute to sustainable development is via our business in the form of credits, investments and the services we provide.
Responsible investment &
Responsible financing For us, sustainability means acting responsibly and with a long-term perspective in areas where the Bank can make a difference. One of our greatest opportunities to make a difference is through responsible financing and lending. Responsible lending Lending to households and companies makes up a substantial part of Handelsbanken’s operations. The Bank considers it paramount that lending is based on an assessment of the individual customer’s repayment capacity, which means that the Bank does not grant credit to customers who cannot repay their loans. Weak repayment capacity can never be justified by arguments that the customer is prepared to pay a high interest rate or can offer the Bank satisfactory collat- eral. Our approach protects the individual customer from running into financial difficulties due to excessive debt. This benefits the Bank, the customer and society at large. PRINCIPLES WHEN GRANTING CREDIT Sustainability aspects are vital to the Bank’s credit pol- icy. The policy states that the Bank’s lending must be responsible and meet high demands for sound ethical standards. Handelsbanken respects human rights, fundamental principles of working conditions and envi- ronmental and climate considerations, and supports anti-corruption measures regardless of where in the world the Bank operates. The Bank supports interna-
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