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Sustainability and Finnish Government Bonds

The sustainability of a sovereign state is built on its environmental, social and governance policies. Finland is by many metrics a global forerunner in sustainability and ranks high especially in governance comparisons. In this section, we have gathered environmental, social and governance factors that describe the Finnish society.

Our approach to sustainability is holistic, focusing on government level targets and performance and recognising the social nature of budget spending. The focus of our funding strategy is on the liquidity of the benchmark bond curve, and thematic bonds are currently not part of the strategy.

Principle adverse impact indicators (PAIs)

Here you can find the relevant data for the Adverse Sustainability indicators for Finland.

UN Sustainable Development Goals

In 2023, Finland ranked #1 again in international comparisons that assess progress on implementing the 2030 Agenda and the Sustainable Development Goals.

World Bank Governance Indicators

See how Finland compares to other countries in areas such as control of corruption, government effectiveness, and the rule of law.

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Latest Credit Rating Reports

Rating reports and press releases listed from six credit rating institutions.

Climate and Nature

Finland’s main targets concern climate and biodiversity. In these policy areas, Finland is committed to international agreements and has both EU level as well as national level obligations that originate from legislation or government programme. The aim of Finland’s national climate policy is carbon neutrality by 2035. In 2022, this target was laid in law. In biodiversity, Finland is committed to the EU level strategy of halting the loss of biodiversity by 2030.

From a global perspective, Finland is well prepared for climate change. However, to reach the EU and national level targets, many decisions on policy, taxation and legislation must be made.

Carbon Neutral Finland 2035

Finland's climate targets require effective emission reduction measures, increasing carbon sinks and innovative clean solutions. Read more on the national work on climate.

Data and Facts: Energy transition

In Finland, the share of renewable sources of energy of the total energy consumption (42%) is the second highest in the EU.

Biodiversity in Finland

A new National Biodiversity Strategy is currently in preparation. The aim is to halt the loss of biodiversity by 2030 and turn the trend towards recovery by 2035.

Low vulnerability & high readiness to climate change

ND-GAIN Country Index (2022)

Finland: #2 in EU on environmental innovations

EU Eco-Innovation Index (2022)

Energy strengths "solid foundation for reaching climate targets"

Energy Policy Review by IEA: Finland 2023

Social Equality and Wellbeing

Finland is a highly equal society with a comprehensive social security system, small income differences and skilled labour force. In international comparisons, Finland continuously ranks high on the measures of mutual trust and social cohesion. In 2024, Finland occupied the top spot of the World Happiness Report by the UN for the seventh year running.

Finland’s key challenge is the demographic change that reduces labour force and weakens the economy’s growth potential. The longer-term outlook for the Finnish economy is subdued also by rather weak labour market productivity and, in Nordic comparison, modest employment rate. To address these challenges, the Finnish government is committed to a set of structural reforms. This section highlights some of the most important reforms through which the government seeks higher labour market participation.

Demographics

Finland seeks solutions to demographic pressures arising from an aging population. Read more on the policy reforms that are underway in Finland.

Labour Market Reforms

The government is seeking high employment through active measures as it seeks to prolong working careers at the beginning, middle and end.

State of Democracy

Finland has full scores (100/100) in the annual survey by Freedom House that tracks the state of democracy and civil liberties around the world.

Finland: happiest country in the world

UN World Happiness Report (2024)

Finland #3 globally in social progress

Social Progress Index (2024)

Finland: #1 in EU in digitalisation

Digital Economy and Society Index (DESI, 2022)

Governance & Competitiveness

Finland ranks high in many indicators and international comparisons focusing on sound governance and institutional strength. Governance factors have typically been Finland’s strength and a positive driver for Finland’s credit ratings. The quality of Finland’s governance is based on transparent and effective government, respect for the rule of law, control of corruption and political stability among other things.

Finland’s sound governance and high-quality institutions are also reflected on the business environment which ranks high globally. Additionally, Finland’s economy compares well with its international peers on its competitiveness.