The Savings Banks Group promotes the transition to regenerative agriculture

The Savings Banks Group has signed a Baltic Sea commitment with the Baltic Sea Action Group (BSAG) to promote the transition to regenerative agriculture. Agriculture plays an important role in the development of the green transition. Agriculture accounts for 16% of Finland’s total emissions, and the net emissions of farmland further increase its climate impact. Climate change and biodiversity loss increase the risks for agriculture, which is dependent on nature and plays an important role in the green transition. At the same time, the sector is facing significant challenges, such as the weak economic situation, dependency on subsidies, and rising production costs.

Supporting the green transition of corporate customers reflects the Savings Banks Group’s long-term commitment to sustainability. In agriculture, the savings in production inputs, better crop yield reliability and increased carbon sequestration brought about by regenerative farming support not only the continuity of the business but also the achievement of climate targets. Regenerative agriculture offers a solution to multiple sustainability challenges: climate, biodiversity, water bodies, business profitability and the security of supply.

"Sustainability is an integral part of the Savings Banks Group’s strategy. Supporting our agricultural customers in the green transition is a concrete example of how we promote environmental responsibility at the practical level," says Kai Koskela, CEO of the Savings Banks’ Union Coop.

The Savings Banks Group Baltic Sea commitment

The Savings Banks Group broadly promotes sustainable development. One step in this respect is to support agricultural customers in the green transition and enter into the Baltic Sea commitment together with the Baltic Sea Action Group. This represents the Savings Banks Group's commitment to reducing its climate impacts and promoting biodiversity efforts.

The Savings Banks Group is joining the BSAG Carbon Action network to support the protection of water bodies and Savings Banks' customers' knowledge and competence related to regenerative agriculture. The Savings Banks Group's Baltic Sea commitment includes creating financing criteria for regenerative agriculture, increasing the competence of financial specialists and agricultural customers, and communicating about regenerative agriculture. This supports the mitigation of the environmental impacts of the agricultural sector and the improvement of risk management and profitability in the agricultural business. It also supports the continuity of the general security of supply in Finland.

In order to achieve its environmental responsibility goals, the Savings Banks Group wants to support the operations of the Baltic Sea Action Group by making a three-year Baltic Sea commitment for the period 2025–2028.

In addition to the development of a financing solution, competence development and supporting the broader transformation of the industry are key:

1. Financing criteria for regenerative agriculture

• The Savings Banks Group commits to promoting regenerative agriculture in Finland in accordance with the criteria laid down by BSAG. In cooperation with BSAG, the Savings Banks Group will create financing criteria for regenerative agriculture and, based on the criteria, launch a new financing solution that provides incentives for transitioning to regenerative agriculture. The criteria will be freely available for use in the financial sector, and the Savings Banks Group encourages their use and development.
• With the Baltic Sea commitment, the Savings Banks Group joins BSAG’s Carbon Action network.

2. Know-how for promoting regenerative agriculture

• The Savings Banks Group will provide its agricultural customers with access to various resources produced by the Carbon Action platform, which support the transition to regenerative agriculture.
• The Savings Banks Group will organise training for its personnel on the themes of the Baltic Sea commitment so that the financial specialists have the best possible expertise to support agricultural customers in the transition to regenerative agriculture and understand its diverse benefits for the agricultural sector.

3. The Savings Banks Group will communicate that regenerative farming is an important part of the green transition of the agricultural sector

• The Savings Banks Group commits to actively communicating its efforts related to the criteria and the financing solution to the stakeholders concerned.
• In addition, the Savings Banks Group commits to communicating more broadly about regenerative agriculture to the general public in a positive and understandable way.

More information

Kai Koskela
CEO of the Savings Banks' Union Coop
kai.koskela@saastopankki.fi
+358 40 549 0430