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corporAte sociAlresponsibility2007

CSR at DanSke Bank GRoup CoRpoRate SoCIaL ReSponSIBILItY 2007

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3 CSR at Danske Bank Group – from the inside out 4 about the Group 6 about this report 7 Stakeholder dialogue 8 Incorporating CSR into our business 9 Selected deliverables 200710 Selected objectives and focus areas for 200810 Implementing CSR in the organisation11 principles and guidelines12 Customers12 a single banking concept to meet various needs13 Meeting the 2007 objectives15 Customer objectives for 200816 employees16 Focusing on work-life balance18 Meeting the 2007 objectives20 one platform – different people22 employee objectives for 200823 employee data

24 environment24 Meeting the climate challenge26 Meeting the 2007 objectives28 environmental objectives for 200829 environmental data30 Society30 Improving financial literacy32 Meeting the 2007 objectives33 Society objectives for 200834 economic footprint35 Reporting principles

knowledge and expertise. For that reason we are placing knowledge at the core of our Corporate Social Responsibility programme. By pass-ing on our financial knowledge, we will assist our customers in making better financial decisions. And by combining this knowledge with our principles of responsibility, we can develop competitive products and help develop a healthy market for responsible banking.

In particular, we wish to show our commitment to sharing our knowl-edge by raising the level of financial literacy in the communities where we work. In early 2008, we will launch a Financial Literacy Pro-gramme comprising a range of ac-tivities, new products and services to be rolled out from 2008 to 2010.

We will not succeed in this without the participation of our employees. That is why the internalisation of the Group’s CSR principles is crucial in integrating responsibility into the

Welcome to the Danske Bank Group’s second report on corporate social responsibility (CSR). During the past year, we have worked sys-tematically to reach the goals set out in the 2006 report. Going forward, our commitment will be to put CSR at the centre of everything we do.

In 2007, we took the first import ant steps towards mainstreaming CSR into our core business. Time and resources were spent defining where the Group’s responsibility as one of the largest financial groups in northern Europe lies and how we can best contribute to the responsi-ble development of society.

To a large extent, the Group lives off serving communities with finan-cial products. This entails provid-ing financing, advice and a strong financial infrastructure that open up opportunities for our customers and other shareholders. Our suc-cess depends on how well we can apply our considerable professional

way we do business. In 2007, we in-creased our efforts to raise employee awareness of Group CSR policy and what it means to our employees in their daily work. We will continue to do so in 2008, when employees will contribute to achieving our goal of carbon neutrality by 2009.

The Group’s objective is to do what we do best – in a responsible way. Because we firmly believe that tak-ing responsibility for the social and environmental effects of our busi-ness and applying the same prin-ciples within our business are an investment in the future. This sec-ond report on CSR provides insight into the Danske Bank Group’s CSR results in 2007 and our ambitions for the years ahead.

Peter Straarup, Chairman of the Executive Board

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CSR at Danske Bank Group – from the inside out

CoRpoRate SoCIaL ReSponSIBILItY 2007 CSR at DanSke Bank GRoup

there is no single recipe for being a responsible business, but to the Danske Bank Group, being responsible means first of all taking

responsibility for the social and environmental effects of our business and applying the same principles within our business.

aBout the GRoup CoRpoRate SoCIaL ReSponSIBILItY 20074

ProfileThe Danske Bank Group provides essential financial services, cre-ates jobs and stimulates economic growth in Denmark, Norway, Sweden, Northern Ireland, Ireland,

about the Group

Present in 13 countries / 842 branches / 5.0 million banKinG customers / 23,632 emPloyees

Finland and the Baltic states. The Group focuses on retail banking by offering a wide range of financial services, including insurance, mort-gage finance, asset management,

keY FaCtS 2007 2006

Business operations (DKr m)

total income 45,063 43,074

operating expenses 25,070 22,640

profit before tax 19,306 20,918

tax 4,436 5,549

net profit 14,870 15,369

Income from foreign banking activities 15,304 13,630

Customers

Banking customers, end of year (millions) 5.0 3.4

percentage of loans and advances to retail customers, end of year (%) 40 39

number of branches, end of year 842 732

brokerage, real estate and capital markets products. The Group has more than 5.0 million banking cus-tomers and a significant share of the corporate and institutional markets.

the DanSke Bank GRoup’S CoRpoRate vISIon, MISSIon anD CoRe vaLueS aRe avaILaBLe at www.DanSkeBank.CoM/CSR

5 CoRpoRate SoCIaL ReSponSIBILItY 2007 aBout the GRoup

Present in 13 countries / 842 branches / 5.0 million banKinG customers / 23,632 emPloyees

keY FaCtS 2007 2006

Employees

number of full-time employees, end of year 23,632 19,253

percentage of women in workforce (%) 57 55

percentage of women in management (%) 31 28

employee satisfaction and motivation (scale 0-100) 72 -

absence due to illness (avg. number of illness days per employee)* 7.1 -

Environment

energy consumption (Mwh per employee)** 7.8 8.0

total transport by air (km per employee)** 1,813 1,506

Co2 emissions (tonnes per employee)* 2.9 3.4

Society

Donations to society (Dkr m) 29 27

hours of voluntary work (hours) 5,200 -

* Group excl. Baltic states and Finland.

** Data for 2006 cover Denmark only. Data for 2007 cover Denmark, Sweden, norway, Ireland and northern Ireland.

Diversified workforce In 2007, the Group acquired the Sampo Bank Group based in Finland. The integration of Sampo Bank’s systems and employees into

the Danske Bank Group poses a large and exciting challenge to us – not least from a human resources perspective. The expansion means that the Group’s workforce has

become bigger and more diversified. We made extensive efforts in 2007 to ensure the successful integration of our new employees in Finland and the Baltic states.

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• Howdowecollaboratewithorganisations, businesses and governments to ensure respon-sible economic, environmental and social development?

As in 2006, this report is organised around the four main areas of the Group’s CSR activities: custom-ers, employees, environment and society. This structure allows comparability with the information presented in the previous report and enables the reader to track the Group’s performance on selected issues and target areas. Each of the four main sections contains a status report on selected CSR objectives for 2007 as stated in the 2006 report and presents new objectives for 2008 and beyond. As a new feature, each section opens with an article that deals in depth with an issue of special concern and consequence to the Danske Bank Group.

The purpose of this report is to pro-vide stakeholders with a complete and balanced view of the Danske Bank Group’s CSR performance in 2007. The report is intended prima-rily for investors, analysts and corpo-rate customers with an interest in the Group at a strategic level. This report was published on January 31, 2008, along with the Annual Report 2007 and is also on the CSR Web site.

This report focuses on corporate social responsibility issues that are material to the Group and our stake-holders, including the following:

• Howdoourproductsandbusi-ness operations affect the natural environment and the lives of our customers?

• Howdowehelpdeveloptheemployees of the Danske Bank Group and secure them the best possible working conditions?

On our CSR Web site you can read about the Group’s policies, val-ues and other matters that were unchanged in 2007 but are still relevant to the overall picture of the Group’s CSR performance. In 2007, much of the information in the Cor-porate Social Responsibility 2006 report was moved to the Web site, where you can also see the complete list of objectives for 2007, a new CSR Fact Book and a Global Report-ing Initiative (GRI) index.

For information about the scope of this report, reporting principles and calculation of data, see page 35 of this report and specific reporting principles on our CSR Web site.

For further details on the Group’s financial results, see the Annual Report 2007.

aBout thIS RepoRt CoRpoRate SoCIaL ReSponSIBILItY 2007

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about this report

7 CoRpoRate SoCIaL ReSponSIBILItY 2007 StakehoLDeR DIaLoGue

It is vital for the Danske Bank Group to have an open and honest dia-logue with stakeholders on the way the Group does business. Naturally, this also applies to our Corporate Social Responsibility programme.

The Group’s stakeholders are bound together in a complex network of relations: an employee can also be a shareholder, a supplier can be a customer, and various stakeholders can enter into new constellations around a shared interest. This dy-namic situation sets high demands for the way we listen and talk to our stakeholders.

Our primary stakeholders are our customers, our employees and our investors. To ensure that their expectations are taken into consid-eration in our continuing efforts to develop our CSR policy and programmes, we enter into dia-logue with these important groups through a wide range of channels.In 2008, we will continue to develop

the dialogue with our stakeholders through existing and new communi-cation channels.

We also seek to engage with a broader base of stakeholders when relevant.

Customer and employee surveysEvery year, the Group carries out surveys to monitor the satisfaction of our most important stakehold-ers. As of 2007, we ask both our customers and employees how they view the Danske Bank Group as a responsible business. We also ask our employees whether they consider the Group to be a work-place that takes responsibility for its employees beyond what can be expected. The score of the employee survey on this issue was 68 out of 100 in 2007. Since there is no avail-able internal or external benchmark as yet, we are not able to evaluate these results until 2008. The results of the customer survey were on par with the sector average.

Partnerships on financial literacyIn accordance with the Group’s recently launched Financial Literacy Programme, the Group intends to form a number of partnerships with experts and interest groups within financial literacy. The purpose of these partnerships is to ensure that the initiatives and projects pur-sued by the Group are best in class in terms of relevance and scope for specific target groups. All new initiatives within the programme will therefore be developed in co-operation with at least one stake-holder. Since the target groups for the Group’s programme are children, teens and students, the stakeholders will be primarily within the field of training and education, for example the public school system, parents’ organisations and student organisa-tions.

Read more about the Group’s Fi-nancial Literacy Programme in the Society section on pages 30 to 34.

CUSTOM

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EMPLOYEES

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ChanneLSCustomer surveysDanske perspective magazineCSR reportCSR web siteLocal councilsCommunity grantspartnerships

ChanneLSemployee surveys

Intranet CSR site and blogenvironmental mailbox

Internal campaigns

ChanneLSCSR report

CSR web siteRoadshows

Questionnaires and surveys from analysts

and rating agencies

See a GRI InDex anD CSR FaCt Book on ouR weB SIte at www.DanSkeBank.CoM/CSR

Stakeholder dialogue

the way we manage our operations, and through our extensive contact with customers, employees, inves-tors and other stakeholders. This gives the Group a unique opportu-nity to use our financial knowledge to advance financial skills and economic growth.

Passing on knowledgeKnowledge is the largest and most important resource of the Group. And unlike most natural resources that become depleted when used, information and knowledge can be shared and can grow through appli-cation. We have therefore identified a key aspect of our Corporate Social Responsibility programme as the way we share our knowledge with our stakeholders. In CSR terms, we undertake to use our knowledge in a manner that benefits society at large.

In 2007, the Danske Bank Group engaged in the process of identify-ing our impact on society and how we can contribute to responsible de-velopment of the local communities in which we operate and the world at large. In other words, we sought to define what responsible banking means to the Danske Bank Group.

As one of northern Europe’s leading banks – and the world’s 400 larg-est companies – the Danske Bank Group has a considerable impact on our customers and employees as well as on society as a whole. This impact is inherent in our role as a provider of a financial infrastruc-ture that stimulates innovation and economic growth.

In our day-to-day business, we also affect society through the products and services we provide, through

Knowledge to develop opportu nities With our widespread local and re-gional presence in northern Europe, we can provide our customers with professional advice that enables them to make better financial deci-sions. Well-informed and competent customers are a prerequisite for increased and more responsible competition, innovation and prod-uct quality in the financial markets. Growing customer demands thus encourage us to keep working to integrate social and environmental considerations into our product development processes.

Knowledge from unleashing employee potential To generate innovative ideas, we need to unleash the potential of our staff. Employees are encouraged to constantly develop their profession-

InCoRpoRatInG CSR Into ouR BuSIneSS CoRpoRate SoCIaL ReSponSIBILItY 2007

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Incorporating CSR into our business

“an investment in knowledge always pays the best interest.”BenjaMIn FRankLIn, 1706-1790

9 CoRpoRate SoCIaL ReSponSIBILItY 2007 InCoRpoRatInG CSR Into ouR BuSIneSS

al and personal skills. As part of the new Financial Literacy Programme, we have developed activities to keep employees up to date with our CSR goals and principles. In turn, we believe that they will put their knowledge to work – both at work and in their private lives.

Knowledge to create solutions The Group’s responsibility also applies to the way we affect the external environment. As a large enterprise, we can contribute to the responsible development of society by setting an example in the way we manage our business operations. We aim to minimise our own environ-mental impact through a range of initiatives and activities outlined in the Group’s new Climate Change Strategy and by implementing an environmental management system in all units. Also, in future, we will

work to develop financial products that support environmental innova-tion and a healthy carbon finance market.

Selected deliverables 2007

The Danske Bank Group under-takes to respect and develop the principles that we have chosen to guide our actions in business and in social and environmental conduct; to help create sustainable solutions; and to conduct a dialogue with our stakeholders to share knowledge and support positive economic, social and environmental develop-ment. That is why we were able to deliver CSR results in 2007 – for our customers, employees, shareholders and society.

the GRoup CSR poLICY IS avaILaBLe at www.DanSkeBank.CoM/CSR

2007 highlights

• DevelopedGroupCSRstrategyfor the next three years

• JoinedtheUNGlobalCompact

• IntroducedStressManage-ment policy in Denmark

• DevelopedFinancialLiteracyprogramme

• ApprovedClimateChangeStrategy

• Implementedenvironmen-tal management system in Sweden, norway, Ireland and northern Ireland

• Approvedcodeofconductonbribery and corruption

• LaunchedinternalCSRsiteonthe intranet

“the Group wants to ensure fair treatment of its stakeholders, minimise its negative impact on the environment and contribute to mutually favourable financial results based on social responsibility.”

FRoM the DanSke Bank GRoup CSR poLICY

Implementing CSR in the organisation

In 2006, we set up a Group CSR board that draws on the expertise of four of our staff functions for the purpose of ensuring that CSR is embedded into all our decisions and routines. All members of the Group CSR Board are also members of the Group’s Executive Committee.

Based in the Group head office in Copenhagen, our CSR Secretariat is responsible for developing the CSR strategy, co-ordinating activities and reporting on the Group’s sustain-ability achievements.

InCoRpoRatInG CSR Into ouR BuSIneSS CoRpoRate SoCIaL ReSponSIBILItY 2007

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1Passing on knowledge and raising financial literacy

2 Taking on the climate change challenge

3 Expanding CSR-relatedHRprogrammes internationally

In 2007, a new CSR strategy was adopted by the Board of Directors. Building on this strategy, the Group has identi-fied three issues that will be the main focus of Group CSR efforts in 2008 and beyond:

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BaLtIC StateS

selected object ives and focus areas for 2008

11 CoRpoRate SoCIaL ReSponSIBILItY 2007 InCoRpoRatInG CSR Into ouR BuSIneSS

The Group’s ambitions and plans for responsible business growth are brought to life in all our branded divisions and other units. Some of these units have a strong national tradition of contributing to society through donations and commu-nity activities and thus serve as an inspiring model for the rest of the Group. To make sure that Group CSR policy and action plans are im plemented locally in all units, national CSR boards were established in late 2007. The Group CSR Board is also responsible for the Danish units.

Boards will be established in Fin-land and the Baltic states in 2008.

Principles and guidelines

Global CompactOn August 9, 2007, the Danske Bank Group joined the UN Global

Compact – the world’s most exten-sive initiative for corporate social responsibility. By joining the Global Compact, the Danske Bank Group wants to demonstrate its com-mitment to advancing corporate social responsibility globally. We are determined to integrate the Global Compact’s ten principles in the areas of human and labour rights, environment and anti-corruption into our business activi-ties and to commu-nicate our progress as we go along. The first measure we undertook was to formalise the Group’s position on corruption and bribery in a code of conduct that will be implemented in early 2008. This code of conduct is available on our Web site.

UNEP FI As a signatory to the United Nations Environment Programme Finance Initiative since 1992, the Danske Bank Group is dedicated to integrat-ing environmental considerations into all aspects of our operations.

Read more about this work in the Environment section on pages 24-29 or on our Web site at www.danskebank.com/csr.

the DanSke Bank GRoup CSR poLICY IS avaILaBLe on www.DanSkeBank.CoM/CSR

“For CSR to be an essential part of the Group’s way of thinking, it must be firmly rooted in the minds of all employees and

in every segment of our business.”

LaRS SjöGRen / DIReCtoR oF BuSIneSS DeveLopMent anD heaD oF CSR BoaRD SweDen

oBjeCtIveS FoR the FutuRe: • Reachcarbonneutralityby2009• Educatethenextgenerationofconsumersin

our primary markets on how to save, spend, borrow and manage money wisely• ExpandCSR-relatedHRprogrammesfor

all employees

Thanks to the Danske Banking Con-cept advisory tools and products, we are able to provide the required expertise to customers. The Danske Banking Concept is a shared plat-form for delivering exceptional cus-tomer experience: a unified model based on best practices to ensure

value-creating products and solutions and to increase accessibility to our services for all our customers.

Identifying best prac-ticesUsing a single banking concept enables us to run a retail business spanning various coun-tries and brands. It also

allows the Group to draw on experi-ence and get inspiration from all our markets for the benefit of

The Danske Bank Group’s custom-ers have increasingly high demands and expectations. In contemporary society, people face a growing array of options and opportunities, and some financial decisions may seem increasingly complex. Our custom-ers therefore rely on our expertise

for support in making financial de-cisions. We see this as an important challenge for the Group.

our customers. We can identify best practices in all our units and imple-ment them across the Group.

One key Group objective is to simplify our products and offer them through multiple channels. Our distribution network must ensure that our financial services are available and easily accessible to our customers. Across northern Europe, we provide vital access to financial services for 5.0 million customers through our branch networks in nine countries, online banking, telephone lines to our contact centres, ATMs and mobile banking.

Accessibility across channelsIn 2007, the Group focused on how to increase accessibility in all sales channels and access points within the Group. Above all, the

CuStoMeRS CoRpoRate SoCIaL ReSponSIBILItY 2007

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In 2007, the number of online banking customers rose with 9%. Log-on activity grew by 22%.

a single banking concept to meet various needs

customers

13 CoRpoRate SoCIaL ReSponSIBILItY 2007 CuStoMeRS

Group wishes to focus on solu-tions that allow customers to do day-to-day banking business from home. Other measures include, where feasible, enabling disabled customers to visit branches using wheelchair slopes and providing easy access through wide doors. People who are elderly or disabled should be able to execute financial transactions without difficulty. People who are simply busy should have access to the bank wherever they are and whenever they see fit. All customers should be able to get in touch with us regardless of place, time of day and communica-tions medium. Using cutting-edge technology and cross-channel design, we aim to make customer experience exceptional – no matter whether customers choose to visit a branch or manage their finances by PC or by mobile or fixed-line telephone.

In 2007, the Danske Bank Group introduced a range of new personal banking packages designed for on-line banking and containing various self-service options.

When branches closeIn many locations, the Group is redesigning branches to meet future needs, focusing more on ATMs, product advice and sales, and less on counter transactions. Still, in some cases it may be necessary to close a branch if it is not a sustainable operation. We will decide to close a branch only after careful thought, considering the needs of both our customers and our business. While these changes may adversely affect some of our customers in the short term, we believe that our long-term investment in a strong branch net-work, ATMs, telephone banking and online banking will provide the best possible services for our customers now and in future. n

Meeting the 2007 objectives

Improving customer service To support and strengthen our daily interactions with customers, in 2007 we introduced a new and improved method of learning more about cus-tomer experience and expectations.

Using the new analytical method, we strive to be proactive in ensuring that our customers receive high-quality advisory services whenever they interact with us. Our analysis is based on interviewing a random selection of customers about their experience of and satisfaction with a recent advisory meeting at a branch or by telephone. Because of this focus on immediate follow-up, the method is called Moment of Truth. In 2007, our Moment of Truth survey involved more than 150,000 customers, and we expect the survey to exceed 400,000 customer contacts across the Group in 2008.

“our shared business model, the Danske Banking Concept, is the key to realising our ambition to be the best local financial partner in all our markets.”

MoRten aLBæk / FIRSt vICe pReSIDent, ConCeptS anD IDeaS

For each of these focus areas, we are developing tools and identifying best practices that advisers can use in order to improve the quality of their advice.

Group-wide introductionIn 2007, Moment of Truth analysis was introduced in personal advis-ory and telephone meetings in Denmark, in advisory meetings with corporate customers in Denmark, in personal advisory meetings in Northern Ireland, and in personal and corporate advisory meetings in Norway. This programme will be extended to include Finland, Ireland and Sweden in 2008. In addition to the Group Moment of Truth analysis, 2008 will see the implementation of a new external benchmark at all branded div isions. It will allow us to compare our-selves with our competitors and benchmark across units and the most important channels.

The Group has defined minimum levels of what constitutes good customer service. Units performing below this level are offered training tools to improve their service, and we track their performance through quarterly reports in order to ensure improvement. On the other hand, units providing excellent service are selected as best-practice cases, and their experience is made available to all branches.

Moment of Truth analyses have shown, among other things, that we must focus on the following aspects of advisory meetings:

• Receivingthecustomeratthebranch office

• Theadviser’spreparation,solicitude and ability to explain things clearly for the customer

• Ensuringthatthecustomerexpe-riences a clear correspondence between price and quality

Raising the barThe Group takes low scores and customer dissatisfaction seriously. In 2008, we will introduce a sys-tematic approach to identifying and contacting customers reporting low levels of satisfaction with specific issues in our Moment of Truth mea-surements. The intention is to learn from customer experience and to improve our services.

Customer satisfactionIn general, the Group maintained its customer satisfaction levels in 2007 in relation to previous years. Danske Bank Sweden experienced a slight decrease in retail customer satisfac-tion, but an increase in corporate customer satisfaction. Danske Bank Denmark maintained the same level in both the retail and corporate seg-ments.

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aCtIvItIeS 2007 ReSuLt

Improve access to branches and online banking facilities

Implement Moment of truth analysis in Denmark, norway and northern Ireland

expand Danske Bank Denmark’s fee guide to include a “savings summary”

“with our environmentally friendly leasing concept, we try to stay ahead of customer demands.”

heLLa GeBhaRDt RønneBæk / BuSIneSS DeveLopMent, noRDanIa LeaSInG

15 CoRpoRate SoCIaL ReSponSIBILItY 2007 CuStoMeRS

Indirect effects In 2007, the Group also focused on the indirect social and environmen-tal effects of our financial business, including credit granting, invest-ment and leasing activities.

In credit granting, the Group envi-ronmental policy requires corporate customers to comply with existing environmental legislation as well as rules and regulations. Environmen-tal issues are also being integrated into our financial risk assessments. In 2007, we revised our business pro-cedures supporting this policy to put more emphasis on how to enforce the policy.

The Group seeks to provide custom-ers with responsible investment op-portunities that are also profitable. For example, in 2007 the Group introduced a range of investment products focusing on environmental and energy issues. We sold a total of DKr1,239 million worth of these products in 2007. The Group’s fund manager, Danske Capital, is cur-rently working to develop a range of new socially responsible invest-ment opportunities to be launched in 2008.

Green leasingIn 2007, the Group’s leasing com-pany, Nordania Leasing, developed

a new environmental concept for its corporate car leasing schemes. It includes reporting on emissions from cars, environmental ratings of cars and advice on how to set up an environmentally friendly car policy. The programme will be launched at the beginning of 2008.

Interactive fee siteAn interactive fee site allowing cus-tomers to compare services and fees was introduced in Denmark in 2006. More than half a million online banking customers visited the site in the first year.

oBjeCtIveS GoaLS anD aCtIvItIeS 2008

Identify and dismantle physical and language barriers for customers

Continue the efforts to increase accessibility in all sales channels. Introduce eBanking facilities for mobile phones in norway and Finland. these facilities are already available in Denmark.

ensure greater transparency for customers In norway, Sweden, Ireland and northern Ireland, identify current practices and needs for product and fee guides like the Danish product and fee guide.

Change the web site layout to provide more logical guidance and easier access to knowledge about the Group in general, product offers and services.

Implement new and improved method for surveying customer satisfaction

ensure that customer satisfaction with the main contact points is surveyed at all branded divisions.ensure that low-performing units systematically work at improving the level of their service quality.

Better utilise the Group’s competencies with specific customer segments

Implement and develop the Financial Literacy programme.

CuStoMeR SatISFaCtIon 2007 2006

Danske Bank Denmark (scale of 0-100), retail/corporate 72/76 72/77

Fokus Bank, norway (scale of 0-100), retail* 71 73

Danske Bank Sweden (scale of 0-100), retail/corporate* 73/75 75/72

See www.DanSkeBank.CoM/CSR FoR a FuLL oveRvIew oF the StatuS oF CuStoMeR oBjeCtIveS anD aCtIvItIeS In 2007

Customer objectives for 2008The Danske Bank Group wants to treat its customers professionally and

in accordance with their indvidual needs in every context.

This is reflected in the customer objectives for 2008.

*the statement method has been changed

The Group’s approach to the em-ployee-related areas of CSR – and work-life balance – is thus twofold, and we continued to develop our policies along this path in 2007.

What is work-life balance? The concept of work-life balance concerns the individual employ-ees’ ability to distribute time and resources between their work and other areas of life such as family, friends and hobbies.

While it seems obvious that people must allocate their time and re-sources between work and other activities, a number of people find this very difficult to manage in prac-tice. The Group’s employee opinion survey revealed that our employees generally experience a good balance between work and private life, but it also confirmed a high degree of variation among different employee groups. This means that while the

“Work-life balance” can serve as a common heading for many of the Group’s CSR activities in 2007. The Group’s focus on work-life balance issues fits with the CSR strategy, which acknowledges our responsi-bility as a demanding and perform-ance-oriented employer and our ambition to offer our employees the best working conditions possible.This is a precondition for reaching the Group’s business goals.

The Group considers CSR an op-portunity as well as a responsibility. Integrating CSR into the organisa-tion provides us with a framework for addressing important challenges arising from issues such as lifelong learning, new ways of organising work, equal opportunities and social inclusion. CSR is also a business driver for developing the potential of the people who create innovative products and services: our employees.

majority of the Group’s employees are very content, a segment of em-ployees requires attention.

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Focusing onwork–life balance

“Being busy is a positive thing, but the kind of stress caused by a lack of

balance between work and private life is a problem for both the Danske

Bank Group and our employees – and we must deal with it in a

proactive manner.”

LaRS MøRCh / heaD oF GRoup huMan ReSouRCeS

according to eurofond (a work-ing conditions body under the eu), work-life balance problems affect a large fraction of the eu-ropean labour force. eu reports state that while the majority of european employees are satis-fied with their work-life balance, 10% of men and women in the eu have difficulty fulfilling their family responsibilities several times a week because of the amount of time they spend at work. In particular, this affects employees with irregular work schedules and long hours. among those working more than 48 hours per week, as many as 44% state that they are unhappy with their work-life balance.

employees

17 CoRpoRate SoCIaL ReSponSIBILItY 2007 eMpLoYeeS

The experience of work-life balance is indeed subjective. The right balance varies according to the individual employee – and to the various stages of life. Getting older, having children or other major life events can change an employee’s priorities and needs. The Group tries to accommodate this by offer-ing flexible working arrangements such as working part-time, flexible working hours, leave of absence or jobs on special terms.

Stress – a shared responsibility In Danske Bank Group terminology, it is important to distinguish be-tween being busy and suffering from actual stress. The Group considers stress a condition that arises when conflicting demands from work and private life accumulate and cannot be reconciled. This broad definition of work-related stress is a central pillar of our efforts to develop stress management solutions.

It also entails a recognition that stress is a mutual problem for the Group and its employees: both are adversely affected by sickness and burnout – and the capacity to solve the problem also lies with both parties. Thus, by approaching these challenges with a holistic under-standing of work-life balance issues, the Group supports the develop-ment of a proactive culture of stress prevention.

New initiatives and measures In 2007, the Group implemented a stress management policy formalis-ing the way we prevent and handle stress. This includes an anti-stress kit that provides employees and managers with tools for jointly ad-dressing problems where and when they arise. The toolbox, available online to all employees, comprises three sets of advice and tools tar-geted at the various actions and information needed before, during and after a stress episode. n

once a year, the Danske Bank Group conducts an employee opinion survey. In 2006, the survey asked the employees to consider their work-life balance. In 2007, as in 2006, the employees’ satisfaction with their work-life balance stood at 77.

although we have no sector benchmark for this measure, it will enable us to monitor the trend and respond with the right tools.

Health and safety at workIn 2006, the Danske Bank Group launched a project called the “health and safety organisation of the future”. The project tests a new way of organising health and safety work in which the individual manager is responsible for such work with the assistance of external professional health and safety con-sultants. To begin with, the project covers 10% of the Group’s employ-ees in Denmark.

In 2007, Group business procedures and policies on health and safety at work were revised for the purpose of preparing application across the Group. This meant harmonising business procedures in Denmark, Ireland and Northern Ireland, sub-ject to mandatory national require-ments. Business procedures will be harmonised in Norway, Sweden and Finland in 2008.


Staff diversityIn 2006, the Group introduced a special development programme for potential female managers and exec-utives. Our endeavour is to provide equal opportunities and motivation for women to be considered for and appointed to managerial and ex-ecutive positions. The programme, Women in Progress, was launched in Denmark in June 2007 with 19 participants in two programmes – one for branch candidates and one for head office candidates. The pro-gramme will be extended to other countries in 2008.

In 2007, the Group continued to promote the employment of compe-tent immigrants in Denmark through the sector training programme. 25 immigrants have participated in the programme since 2005.

In 2007, the Danish workplace assessment programme was imple-mented on a trial basis in Sweden. The intention is to produce an international questionnaire for risk assessments that meets EU require-ments.

As described in the 2006 report, the Group has focused on pre-venting robberies at Danske Bank branches since 2003. The Group is cooperating with other stakeholders to raise the general level of security in the industry. These efforts have lowered the number of robberies, thus reducing work-related injuries.

See our CSR Fact Book for data on robberies and work-related injuries.


18


Introduce dialogue on work-life balance for staff 55 and older

Launch stress management policy, including a toolbox for prevention and remedy of stress-related illnesses

Start women in progress (talent development programme for women)

Complete competency profiles for all employees (the Group expects to meet the goal in 2009)


Work-life balanceIn response to work-life balance issues affecting our employees, in 2007 the Group introduced a stress management policy with an associ-ated toolbox for preventing and han-dling stress. So far, the policy has been implemented in Denmark, and it will be implemented across the Group. Another work-life balance initiative is a dialogue with senior employees on possible job adjust-ments to provide more flexible working conditions. In Denmark, more than 70% of our employees over 55 have attended such an interview.

Competency developmentA total of 61% of employees in Denmark and Norway now have an approved competency profile. The competency profile lists the specific professional and personal compe-tencies that an employee must have to meet the requirements of his or her job.

This enables us to evaluate the employee’s current skills for the purpose of offering targeted competency development – a key element in the Group’s policy on learning. With employees in Sampo Bank and the Baltic states joining theHRplatformin2008,theGroupis well on the way to reaching our goal of having a competency profile for all employees, thus providing a foundation for their further development.

Employee satisfaction In 2007, the index for satisfaction and motivation for the entire Group stood at 72, the same as in 2006, exceeding the average of 71 among our Nordic peers. While many units have a higher employee satisfac-tion level than the relevant external benchmarks, some units are still below their benchmarks.

“the programme is relevant, not because women’s leadership skills

differ from those of their male colleagues – but because the

conditions for obtaining a management position do.”

LISBeth MoSeGaaRD / paRtICIpant In the woMen In pRoGReSS pRoGRaMMe

See www.DanSkeBank.CoM/CSR FoR a FuLL oveRvIew oF the StatuS oF eMpLoYee oBjeCtIveS anD aCtIvItIeS In 2007

• giveemployeesaccesstolifelong learning

• secureemployees’abilitytowork

• ensureareasonablework-lifebalance

• exerciseresponsibilityconcerning outsourcing, staff reductions and other activities related to the takeover of new companies

• recruithighlyqualifiedem- ployees and support the diver-

sity of its staff and managers

From the Danske Bank Group CSR policy.

the Group will work to:

One platform – different people

The expansion of the Danske Bank Group into a number of new coun-tries provides experience on how to handle integration processes fol-lowing acquisitions. Some of these insights are hard-earned, however. While the migration to the Group’s shared platform, the Danske Bank-ing Concept, generates a mutually beneficial internal simplification of the acquired companies, it also subjects new employees to difficult changes.

Sampo Bank’s migration Recognising that uncertainty about the future is always a factor in inte-gration processes, the Group aims to make Sampo Bank’s 2007 and 2008 migration to the Group platform a


20

a hIGh LeveL oF InFoRMatIon thRouGh hIGh-teCh MeDIaat 9am on February 2, 2007, shortly after the authorities’ approval of the acqui-

sition of Sampo Bank, the employees are sitting in front of their pCs. a total of

3,500 employees from helsinki to oulu in Finland are watching peter Straarup,

the Danske Bank Group Ceo, and Ilkka hallavo, Sampo Bank Ceo, inform them

of the acquisition via a direct intranet webcast. and it is not just a one-way-com-

munication event. the announcements are followed by a live session where the

employees can ask questions.

this wide-scale event is followed by continued communication and exchange of

important knowledge with new staff. this includes Danske Bank executives’ par-

ticipation in staff meetings in helsinki, internal newsletters and an internal web

log in which managers urge the Finnish employees to speak their minds about

the integration process.


best-practice case in terms of stake-holder management. This includes extensive communication activities to provide our new colleagues with updated information.

Communications processFrom a CSR perspective, acquisi-tions and associated processes should be carried out with respect for all affected employees. Thus, since the approval of the acquisi-tion of Sampo Bank in early 2007, the Group has been making an effort to provide the new employees with targeted and relevant information through an open dialogue on their needs and concerns.

As part of this strategy, the Group aims to be open and honest. Re-ductions in costs and staff are an inevitable part of the process of

strengthening and developing the business. Naturally, these necessary elements make employees uncer-tain about the future. But rather than downplaying these conditions and allowing taboos and rumours to flourish, the Group is pursuing a process of open communications to provide a mutual framework for handling future challenges.

Several spot checks show that our communication efforts have received positive reviews from our Finnish employees, which is remarkable considering the usual shortage of information in such situations. This is reflected in the results of the 2007 employee opinion survey, with senior man-agement’s ability to inform staff scoring 72 from our employees in Finland. This exceeds the index

average of 63 for Finnish financial services providers. The favourable perception of our approach is also reflected in the index for employee satisfaction and motivation, where our Finnish colleagues’ satisfaction and motivation score exceeded the national sector benchmark by three index points.


22


ensure employee development and learning capacity Register skills in competency profiles.

Implement internationally.

provide healthy and safe working conditions Register and assess robbery and kidnapping risks in a formalised way.

ensure continued integration of employees with a non-Danish ethnic background at Danish units

evaluate projects from 2006 and 2007.

Implement follow-up activities.

Set up special projects, if required.

Increase the number of female managers and executives evaluate experience with the programme from 2007.

Implement new initiatives based on such experience, if required.

Internationalise special activities.

ensure a healthy, non-smoking workplace Revoke the exemption from the no-smoking policy in the Baltic states.

prevent and remedy stress-related illnesses Implement stress management policy internationally.

Improve working conditions for senior employees Implement and roll out senior policy.

Maintain level of employee satisfaction above sector average Make systematic measurements, action plans and initiatives.

Employee objectives for 2008

In 2008, we will focus on expanding our CSR policies and programmes to all units, taking the diversity of our employees into account. Because of the extent of our organisation, some units have developed measures or practices that might be ahead of the larger Group. In 2008 we will therefore start to collect these best practices for the benefit of all employees.


eMpLoYee Data GRoup 2007 CoMMentDenMaRk

2007DenMaRk

2006

Staff diversity

number of full-time employees, end of year 23,632 13,713 13,692

percentage of women in workforce (%) 57 52 53

percentage of women in management (%) 31 26 24

average age 42 43 43

average years of service* 15 17 17

Work-life balance

women working part-time 2,812 ex BaL 1,611 1,548

Men working part-time 408 ex BaL 254 189

number of flex jobs - 118 110

average number of employees on paid maternity leave during the year

- 195 196

average number of employees on paid paternity leave during the year

- 45 48

Leave of absence granted for other reasons (number of employees granted leave of absence during the year)

485 ex BaL, FI 355 374

Health and safety

average absence due to illness (average number of days lost through illness per employee)**

7.1 ex BaL, FI 6.3 6.0

Injuries or post-traumatic stress related to robberies 102 ex BaL, FI 95 154

other physical or mental injuries 89 ex no, BaL, FI 53 48

employees filing claims under medical expense insurance*** - 1,536 1,529

Competency development

number of approved competency profiles 8,626 Dk, no only 8,069 7,497

Share of employees with completed competency profiles (%) 61 Dk, no only 62 57

opportunities for professional and personal development as perceived by the employees (scale of 0-100)

73 76 74

Employee satisfaction

employee satisfaction and motivation (scale of 0-100) 72 75 75

employee loyalty (scale of 0-100) 79 80 -

employee turnover (%)**** 8.9 ex BaL, FI 8.4 7.9

* In the 2006 report the Group number was wrongly stated as a Dk number.

** this number was wrongly stated as 4.2 in the 2006 CSR report.

*** the statement method has been changed.

**** this number was wrongly stated as 7.1 in the 2006 CSR report.

See the CSR FaCt Book at www.DanSkeBank.CoM/CSR FoR MoRe eMpLoYee Data anD a BReakDown BY CountRY

Climate change threatens basic elements of life for people around the world – access to water, food production, health, use of land and the environment. The evidence of global warming is growing, and with the increase in extreme weather events, climate change also becomes a factor in our daily lives. The complexity of climate change makes it the single largest environ-mental challenge our society faces. Finding a solution therefore calls for concerted action from govern-ments, businesses and civil society. The solution incorporates a range of large and small elements: from gov-ernments making global agreements and legal frameworks to companies developing new technology and the individual consumer’s choice of energy-saving light bulbs. Every-body can contribute.

Climate change is probably the largest

environmental challenge to society

today. the financial services sector

can contribute to a solution by provid-

ing a financial infrastructure that sup-

ports innovation and the reduction of

emissions. In 2007, the Danske Bank

Group developed a climate change

strategy committing us to taking ac-

tion against climate change.

For these reasons, the Group consid-ers climate change our key envi-ronmental issue and has therefore developed a climate change strategy for the years ahead. The strategy focuses on our ability to confront the climate challenge in our finan-cial business and operations and through dialogue with stakeholders.

Towards a low-carbon economyThe Stern Review calls climate change “the greatest and widest-ranging market failure ever seen”. Part of the solution is therefore to promote sound market signals on the price of fossil fuels and green-house gasses.

We believe that the financial ser-vices sector plays a vital role in pro-viding the financial infrastructure to support a low-carbon economy. The

envIRonMent CoRpoRate SoCIaL ReSponSIBILItY 2007

24

Meeting the climate challenge

env ironment

25 CoRpoRate SoCIaL ReSponSIBILItY 2007 envIRonMent

Danske Bank Group has therefore given priority to developing new products and services that support innovation and the reduction of emissions.

Carbon-neutral operationsAs a financial services provider, our own CO2 emissions are relatively low in relation to many other indus-tries. Given that the Group has more than 23,000 employees internation-ally, however, the Group’s total CO2 emissions are still significant. The emissions come primarily from energy consumption in offices and transport.

As part of the climate change strategy, the Group aims for carbon neutrality for all operations by De-cember 2009. The strategy builds on two main initiatives:

1 Energy-efficient operations The Group will increase energy

efficiency through behavioural change, a reduction in business travel, optimisation of buildings and the purchase of energy-efficient IT and office equip-ment. In order to strengthen the initiatives, the Group will hire a specialist in energy-efficient op-erations to coordinate the efforts.

2 Offsetting emissions The portion of emissions that

cannot be reduced will be offset through external projects. In 2008, we will seek to identify the projects to engage in and set up agreements.

Knowledge is the key to changeFirst of all, a transition to a low-carbon future demands a change in our mindset and in how we act in business and in our daily lives. As a large enterprise, the Danske Bank Group has the opportunity to engage with stakeholders to share knowl-edge on how to face the challenge of climate change.

The Group’s first initiative will be to launch a large employee campaign in early 2008. The focus will be on how to save energy at the office and in our daily lives. n

“Climate change is a global challenge that can seem rather overwhelming, but even small improvements in our daily lives count.”

anne SøGaaRD MeLChIoRSen / GRoup CSR ManaGeR, ReSponSIBLe FoR the GRoup CLIMate ChanGe StRateGY

the Danske Bank Group aims to be carbon neutral by 2009

tation is almost complete in all four countries. The internal audits to secure compliance with the system will not be finalised until the first quarter of 2008, however.

The EMS now covers 80% of Group operations, thus strengthening our systematic approach to reducing environmental impact. In 2009, the EMS will be extended to cover the Finnish and Baltic operations.

Connecting to reduce travelThe Group stretches across northern Europe. This creates a need for international meetings and coordi-nation, as evident in an upward trend in business flights over the past few years. In 2007, the Group recorded another increase in such flights after the acquisition of Sampo Bank.

Travelling is expensive and time-consuming; it has a negative impact on the environment; and it puts ex-tra pressure on employees’ work-life


The main focus of the Group’s en-vironmental efforts in 2007 was on developing a Group climate change strategy and on implementing an environmental management system for the Group’s units in Norway, Sweden, Ireland and Northern Ire-land. In addition, the Danish units worked to improve their environ-mental performance, with a focus on how to address environmental issues in relation to our business.

Environmental management In 2006, the Danske Bank Group implemented an environmental management system (EMS) for the Danish units adhering to the inter-national ISO14001 standard. The system helps us keep focused on regular improvements in resource consumption, waste reduction and increased recycling. In 2007, the system was enlarged to cover units in Norway, Sweden, Ireland and Northern Ireland as well. Implemen-

balance. Thus, there is a compel-ling business case for reducing the amount of travel to a minimum. The Group is therefore looking to find the best possible communications solutions as a substitute for such travel.

One measure is the introduction of eMeetings, allowing all participants to follow the same presentation and to communicate from their own personal computers. This form is particularly suited for giving updates and passing on information. In 2007, the number of eMeetings increased by 331% and proved particularly useful in the Group’s rollout of the new EU Markets in Financial Instru-ments Directive (MiFID).

In addition to eMeetings, the Group has decided to invest DKr30 million in new telepresence technology for virtual meetings. The project will provide the Group with 13 new conference rooms in 2008. The in-vestment is expected to reduce the demand for travel.


26


Implement management of direct environmental impact in the Group’s units in norway, Sweden, Ireland and northern Ireland

Launch a climate change strategy with the goal of reaching carbon neutrality for the entire Group in December 2009

Introduce energy-labelling initiatives, as planned, for 50% of all ventilation systems in Denmark

Reporting on waste at units in norway, Sweden, Ireland and northern Ireland (not yet available)

27 CoRpoRate SoCIaL ReSponSIBILItY 2007 envIRonMent


extend environmental management system ensure that the environmental management system is running in Denmark, Ireland, northern Ireland, norway and Sweden.

extend the environmental management system to cover Finland and the Baltic states by 2009.

Increase supplier requirements a total of 90% of the Group’s purchases of selected product groups must be made from suppliers with an environmental policy and an environmental management system. the Group expects to meet this target in 2011 at the latest.

Increase environmental requirements for specific products such as detergents and paint.

Reduce Group resource consumption and emissions Implement climate change strategy.

achieve carbon neutrality by December 2009.

Increase the environmental awareness of employees ensure that all Group employees are familiar with the Group’s environmental policy.

Run internal campaigns on energy savings.

See www.DanSkeBank.CoM/CSR FoR a FuLL oveRvIew oF the StatuS oF envIRonMentaL oBjeCtIveS anD aCtIvItIeS In 2007

Focus on paperElectronic solutions such as online banking help reduce the amount of paper used since fewer letters are sent to customers. From the beginning of 2008, around 400,000

Danish customers who use online banking will receive their account statements electronically. We ex-pect this change to save at least 80 tonnes of paper per year. In Nor-way, Ireland and Northern Ireland,

customers using online banking already receive their account state-ments electronically, and we plan to roll out the system in Sweden and Finland in 2008.


28

Denmark Finalise energy-labelling initiatives for all ventilation systems in Danske Bank’s head office in 2008.

Reduce the internal consumption of paper per employee by 30% of the level in 2006. the Group expects to meet the goal in 2011.

Ireland write and implement a recycling policy and waste management policy.

Make all marketing material available in a digital version. Insert a line on all account statements encouraging customers to move to eBanking and electronic mailbox services.

northern Ireland Draw up a recycling and waste management policy in 2008.

audit of northern Bank’s environmental performance by Business in the Community in 2008.

norway Implement initiatives for recycling waste in all relevant offices in 2008.

Review of energy consumption at head office in 2008 in order to identify potential major improvements.

Implement at least one initiative to reduce paper consumption in the credit process.

Sweden Implement a new policy for company cars to exclude all petrol-fuelled cars.

Revise policies on travel and meetings to reduce travel.

Introduce waste-recycling at all branches and head offices.

Re-assess contracts with suppliers whose products involve inefficient transport of goods.

Finland and Baltic states Initiate implementation of environmental management system.

SeLeCteD natIonaL oBjeCtIveS FoR 2008 anD BeYonD

Within the framework of the Group’s environmental policy, each country organisation must apply Group objectives and also define its own environmental objectives and

activities. This approach is most appropriate since the infrastructure and environmental challenges differ from country to country. In Den-mark, for example, energy produc-

tion is based mainly on fossil fuels, whereas Norway gets most of its electricity from hydropower.

Environmental objectives for 2008

Environmental data

The following table provides an overview of the environmental impact of units in Denmark in 2006 and 2007, including the impact per employee in Denmark. It also shows the environmental impact of units in Sweden, Norway, Ireland and North-ern Ireland, which was calculated for the first time in 2007. In 2008 we will continue to develop our reporting

methods to increase data quality and expand coverage.

The large increase in heat consump-tion in Denmark was owing to a more comprehensive calculation covering consumption in both head offices and branches. The increase in paper consumption derived mainly from the closure of the BG Bank division

and the disposal of all paper with the brand logo. The increase in air travel was owing to the integration of Sampo Bank, Finland. The CO2, SO2 and NOX emissions from units outside Denmark were relatively low because electricity in Norway and Sweden is based primarily on water power.

29CoRpoRate SoCIaL ReSponSIBILItY 2007 envIRonMent

envIRonMentaLIMpaCt

DenMaRk2007

DenMaRk2006

peR eMpLoYee

2007

otheR unItS2007

CoMMentSto otheRunItS 2007

Resource consumption

electricity consumption (Mwh) 54,890 57,453 4,1 22,110

heat consumption (Mwh)* 59,490 26,912 4,4 5,564 ex no

water consumption (m3) 66,453 76,415 9,3 780 Se only

total paper consumption (tonnes) 3,436 2,803 0,3 363 ex no

transport by car (1000 km) 1,793 1,854 0,1 916 no, Se only

transport by own car (staff) (1000 km) 13,048 13,554 1,0 1,564 no, Se only

total transport by car (1000 km) 14,841 15,408 1,1 2,480 no, Se only

transport by domestic flight (1000 km) 743 711 0,05 4,006

transport by international flight (1000 km) 22,881 19,895 1,7 5,754

total transport by air (1000 km) 23,624 20,606 1,7 9,760

number of eMeetings 5.946 1,317 0,4 759

Emissions

Co2 emissions (tonnes)** 45,296 41,683 3,3 8,763

So2 emissions (tonnes) 18,9 16.2 0,0014 26.1

nox emissions (tonnes) 76,6 80.2 0,0057 20.6

See the CSR FaCt Book at www.DanSkeBank.CoM/CSR FoR MoRe envIRonMentaL Data anD a BReakDown BY CountRY

* Data for 2006 cover head offices in Dk only.

** this number was wrongly stated as 37.978 in the 2006 CSR report.

and make use of the information they receive when they purchase financial services. The problem is particularly profound among young people. Many are unable to balance a budget, and most simply

have no insight into the basic survival principles associ-ated with earning, spending, saving and investing.

At the Danske Bank Group, it is our ba-sic belief that when people understand their finances, their lives will work out

better. Imagine if the next genera-tion had the skills and knowledge to ensure their own financial well-being. This is the vision for the Group’s new CSR initiative: the Financial Literacy Programme. A higher level of financial literacy not only enriches the life of the

The statement below illustrates one of the most compelling challenges facing our world today: the lack of financial capability – especially among young people.

A recent Green Paper from the European Commission emphasised that numerous international surveys demonstrate a low level of under-standing of financial matters on the part of consumers throughout Eu-rope. An increasing number of con-sumers find it hard to understand

individual, but also benefits the fi-nancial markets and society at large: well-informed consumers help increase competition, innovation and product quality in the financial markets by motivating the develop-ment of new products and service concepts. Moreover, financially secure individuals, families and companies contribute to healthy economic growth in society. Finan-cial literacy will also help improve the general conditions of financially vulnerable or socially marginalised groups.

Using our core competencyTo help raise the level of finan-cial literacy in the Group’s home markets, we have used our core expertise – financial knowledge – in developing a new programme linking the customers, employees and society focus areas together. This programme aims to improve financial literacy across demo-graphic segments and age groups,

SoCIetY CoRpoRate SoCIaL ReSponSIBILItY 2007

30

Improving financial literacy

“when they say ‘current’ and ‘savings’, I don’t really under-stand what they mean.” FRoM “FInanCIaL exCLuSIon In IReLanD: an expLoRatoRY StuDY anD poLICY RevIew”, 2006

society

31 CoRpoRate SoCIaL ReSponSIBILItY 2007 SoCIetY

with an emphasis on children and young people. To a large extent, the programme will require the involve-ment of employees who share their financial knowledge and expertise through voluntary work during working hours.

From 2008 to 2010, the Group will spend more than €6 million on financial literacy initiatives aimed at children, young people and stu-dents. The initiatives will include developing surveys and analyses to provide more insight into the challenges and opportunities related to financial literacy in the target groups and developing new prod-ucts, advisory service concepts, educational materials and events aimed at stimulating financial skills and knowledge.

Into the schools We believe that financial literacy should be a mandatory school cur-riculum component. Giving chil-dren access to financial education

in schools is vital for building the knowledge, understanding, skills and responsibility that provide a sound basis for the financial deci-sions they will face in adult life. The Group will produce a free “toolbox” – offline as well as online – with educational material for schools. In addition, local Danske Bank branch staff will be trained to educate and inspire teachers about financial matters in order to enable teachers to in-clude financial literacy in school curricula.

To put further emphasis on financial literacy in the school system, we plan an annual theme day in schools with a focus on financial literacy. The Group will make a donation for every par-ticipating pupil. Donations will be earmarked for financial education programmes in developing coun-tries.

A major initiative to be launched in 2008 is a new educational Web site for children. The site will contain fun, educational online exercises for children, tips and advice for parents on how to educate children finan-cially, and teaching materials.Later in 2008, we will launch the

Group’s first socially responsible banking product in keeping with the Financial Literacy Programme, including free advisory services aimed at one of the most financially vulnerable groups in our markets. n

• Denmarkhasseena30%increaseincreditdefault registrations by 18-20-year-olds over the past two years.

• AccordingtoaNorwegiansurvey,thenumberof people who experience challenges with loan repayment is 50% higher for people under the age of 30 than for those over 30.

• Some20%-30%ofSwedishstudentsinthe ninth grade are not able to evaluate vital financial factors in their own lives as consumers.

• AccordingtoanIrishsurvey,36%ofsinglepar-ents currently borrow from moneylenders. and 60% of those who borrow only from moneylend-ers spend more than 20% of their income every week on loan repayments.

• IntheUK,29%of16-24-year-oldssaidtheydidnot know how to prepare and manage a weekly budget.

research shows that financial illiteracy is a general problem in all the Group’s markets. the following are just a few examples:

“Financial literacy can be defined as the ability to make informed judge-ments and take effective decisions about the use and management of money”. uk natIonaL FounDatIon FoR eDuCatIon ReSeaRCh, 1992.

secondary schools with a dona-tion of DKr205,000. In 2008, a new IT project for young people with dyslexia will be supported with a donation of DKr200,000.

Community grantsAfter the merger of BG Bank and Danske Bank, an amount of DKr1.3 million was allocated from “BG Banks Litteraturpulje” (BG Bank’s literature pool) to community grants. The articles of foundation for com-munity grants were amended to in-clude donations to literary projects.

Supporting enterprising youthNorthern Bank supports the Young Enterprise Company Programme involving over 1,200 students across Northern Ireland. The programme teaches students aged 14-18 how a company is set up and what is in-volved in day-to-day management.


Expanding study grantsIn 2007, the study grant project was implemented by several of the Group’s branded divisions. As part of our activities to promote knowledge, Danske Bank Denmark awards grants to students to assist their studies outside Denmark for one or more terms. The number of grants rose from 160 to 200 in 2007. Danske Bank Sweden also awarded study grants in 2007. Northern Bank and National Irish Bank will award study grants in 2008.

Alleviating reading difficulties In 2007, Danske Bank continued its support to projects managed by the Danish Knowledge Centre for Dyslexia. In 2006, the Book Buddies project was initiated in seven Danish primary and lower

Northern Bank staff volunteer during working hours as business advisers, trade fair judges, competi-tion judges, board members and guest speakers. The programme enables students to become adults who participate more fully in the economic life of North-ern Ireland. Also, the role models provided by Northern Bank are living proof of the success students can achieve by adopting enterpris-ing and entrepreneurial attitudes and by putting into practice the business skills they learn.

The Northern Bank Young Enter-prise Company Programme won the Business Education Award at the in-augural UTV Business Eye Awards.


32


Increase study grants

Support Book Buddies project

Develop Financial Literacy programme

volunteer programme planned for 2007 was postponed because all volunteer options will be part of the Group’s financial literacy activities (launch in 2008)

33 CoRpoRate SoCIaL ReSponSIBILItY 2007 SoCIetY

Soccer schools for thousandsIn 2007, National Irish Bank took over the support of a children’s football training programme entitled “The National Irish Bank FAI Sum-mer Soccer Schools” run over the summer months by the Football Association of Ireland. Targeting children aged 7-15, the schools are managed and operated by registered and trained coaches from the Foot-ballAssociationofIreland.Hugenumbers attended the 2007 pro-gramme, with over 20,000 children

taking part in more than 223 camps in all 26 counties.

The programme is leading the way in health measures in children’s summer camps in Ireland. For instance, all participating children received a special kit that included advice about a healthy lifestyle and nutritious food.

In 2007 National Irish Bank was awarded a “Passion for World Around Us” Award by Vodafone.

The award is a recognition of the bank’s community work on both the FAI Summer Soccer Schools and the Community Grants programme.

Society objectives for 2008

The Group developed a financial literacy programme in 2007. This programme aims to improve financial literacy across demographic segments and age groups, with an emphasis on children and young people.


Improve financial literacy

Launch a long-term programme for improving financial literacy among selected target groups at all branded divisions

present our long-term ambition to improve financial literacy in markets where the Danske Bank Group has retail banks. Finland and the Baltic states will be part of the programme beginning in 2009.

Conduct a range of activities with a special focus on children and socially vulnerable families in order to improve financial literacy education.

Enter into dialogue with stakeholders

Identify and join partnerships with major stakeholders to improve financial literacy education

Involve relevant stakeholders in the process of develop-ing products and activities under the Financial Literacy programme.

Develop a socially responsible product

Develop and market the Danske Bank Group’s first product with a specific focus on social responsibility in line with the Financial Literacy programme

Identify a group with special needs for a new product type.

In co-operation with relevant stakeholders representing this group, we will develop a suitable product, including special advisory services.

See www.DanSkeBank.CoM/CSR FoR a FuLL oveRvIew oF the StatuS oF ouR oBjeCtIveS anD aCtIvItIeS FoR SoCIetY In 2007

dividends of DKr5,940 million for its 306,603 shareholders.

CustomersFinancial services are vital to our customers’ ability to add value to their businesses and plan their private lives. By developing new products and services, the Group provides customers with financial possibilities and advice to enhance their way of living and gives them the opportunity to pursue their goals. In 2007, the Danske Bank Group had 5.0 million customers and generated DKr44,376 million in income.

SuppliersThe Danske Bank Group has close, long-term partnerships with its main suppliers. Supplier engage-ment includes a focus on environ-

Economic footprint

Creating value for stakeholdersAs part of our CSR policy, the Danske Bank Group wants to run a mutually value-creating busi-ness that contributes to the local communities in which we operate. Adding value takes many forms. It can be the return we provide to our shareholders, the sound advice that we give our customers or the knowledge that our employees bring to work. The economic stakeholder model shows these interactions and how mutual value is created.

ShareholdersShareholders provide risk capital for the Group to develop its business and are rewarded through dividends and capital appreciation. In 2007, the Danske Bank Group proposed

mental and social standards. See detailed information about supplier standards on our Web site. With payments to suppliers in 2007 amounting to DKr10,823 million, the Group indirectly contributed to the creation of jobs.

EmployeesThe knowledge and productivity of our 23,632 employees are essential to the Group’s value creation. In 2007, employees received DKr12,466 million in salaries (including pensions and social benefits). In addition, the Group’s investment in training and education benefits the employees and ensures their employability.

GovernmentsIn 2007, the Group’s corporation taxes amounted to DKr6,180 mil-


34

how we CReate vaLue FoR StakehoLDeRS

Goods and services

payments

paymentService

Business

environment

payment

Commitment and skills

Remuneration/reward

Capital

total shareholder

return

Social environmentInvestment

DanSke Bank GRoup

CuStoMeRS

SuppLIeRS

GoveRnMentS CoMMunItIeS

eMpLoYeeS

ShaRehoLDeRS

35 CORPORATE SOCIAL RESPONSIBILITY 2007 REPORTINg PRINCIPLES

A GRI index with references to relevant information in the report and on our Web site is available at www.danskebank.com/csr. The in-dex includes hyperlinks to relevant information accessible directly from the Web site and comments on indicators that we currently do not report on. For more detailed information about our application of the G3 Guidelines, please see the GRI index.

In August 2007, the Group joined the UN Global Compact. The GRI Guidelines principles and perfor-mance indicators correspond to the requests contained in the Global Compact’s mandatory annual Com-munication on Progress (COP). We will thus align the Group’s Global Compact reporting with the G3 Guidelines.

Reporting principles

The Corporate Social Responsibil-ity 2007 report covers the CSR activities of the Danske Bank Group, including subsidiaries. Detailed information about the calculation of data presented in this report appears on our Web site.

In 2007, the Group joined the Global Reporting Initiative’s platform for sustainability reporting. The GRI framework is widely recognised and well tested by hundreds of compa-nies around the world. In order to make our CSR reporting even more complete, relevant and comparable, we have prepared the content of this report in accordance with the Global Reporting Initiative’s G3 Guidelines. The Group currently applies GRI level C.

lion, corresponding to an effec-tive tax rate of 23%. Governments also benefited indirectly from the personal taxes of DKr3,055 million paid by Group employees.

CommunitiesThe Danske Bank Group is present in hundreds of local communities through its branches. The aim of the Group is to be the best local financial partner, and therefore com-munity involvement and under-standing of local conditions are key elements in the way we do business. The Group contributed DKr29 million in donations in 2007.

REPORTS ANd A gRI INdEx ARE AvAILABLE ON OuR WEB SITE AT WWW.dANSkEBANk.COm/CSR

See CSR Fact Book for the full calculation of the value distribution.

vALuE dISTRIBuTION2007

dkr m2007

%2006

dkr m2006

%

Income 44,376 100 43,558 100

Suppliers 10,823 24.4 11,242 25.8

Employees 12,466 28.1 9,636 22.1

management 37 0.1 36 0.1

governments 6,180 13.9 7,275 16.7

Shareholders 14,870 33.5 15,369 35.3

AdditionAl infoRmAtion

If you have questions about or comments on this report, please contact us by e-mail: [email protected]

or by letter post:

danske Bank A/SCSR SecretariatHolmens kanal 2-12dk–1092 Copenhagen k

Reports and a gRI index are available on our Web site at www.danskebank.com/csr.

dANSkE BANk A/S HOLmENS kANAL 2-12 / dk - 1092 COPENHAgEN k / TEL. +45 33 44 00 00

CvR-NR. 61 12 62 28 - køBENHAvN / WWW.dANSkEBANk.COm

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