Corporate Social Responsibility and GRI

Economic impacts

Economic Performance

G4-EC1 Direct economic value generated and distributed

It follows naturally from OP Financial Group's dual role, brought about by customer ownership, that business profits and added value are channelled, via customer relationships, to its members and customers. Member cooperative banks use their profits for the benefit of their customers by providing loyalty benefits and other financial benefits and by maintaining and developing their service capabilities. In 2016, new OP bonuses totalled over EUR 200 million, up by 5% year on year. Furthermore a significant part of OP's economic impacts also involves indirect impacts on local and regional economic vitality. Examples of indirect economic impacts are:

  • Employment (creation of new jobs, work placements, summer jobs)
  • Procurement (purchases from local suppliers and service providers)
  • Investments (properties, maintenance, local infrastructure and building projects)
  • Financing (financing for start-ups, local financing, ethical lending criteria by sector) 

The member banks are often some of the largest taxpayers in their local municipalities, and OP as a whole is one of the biggest taxpayers in Finland. OP Financial Group's income taxes for the financial year 2016 totalled EUR 223 million (249). The effective tax rate was 19.6% (22.6).

OP’s tax footprint

G4-EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate change

OP's direct impact on climate change is minor. Environmental risks, on the other hand, including climate risks, can have direct impacts on OP’s operations, as well as indirect impacts through effects on customers and stakeholders. In emissions and energy intensive sectors, climate change and related regulation may have significant financial effects. Indirect effects on climate change are created through OP financing and investments.

Extreme weather is also an operational risk included in OP's own contingency planning. Concerns related to climate change may pose reputation risks if any conflicts with climate change prevention efforts should be identified in the operations of OP or even those of its partners or customers.

On the other hand, the general improvement in environmental awareness is bringing new business opportunities, for example in the form of investment products that emphasise environmental responsibility, and diverse property insurances. Our non-life insurance business continuously monitors the development of risks posed by climate change from the viewpoint of our existing and future insurance products. Our aim is to cover all insurable risks as extensively as possible, also in constantly changing circumstances. OP assesses the financial implications of climate change risks in its annual response to the CDP survey.


Finland 2013 2014 2015 2016
Direct economic added value created
a) Income 2,450 2,657 2,808 2,910
Breakdown of economic value added
b) Operating expenses 619 661 574 640
c) Personnel costs 791 741 781 762
d) Returns to owner-customers 193 195 195 206
e) Income tax 36 308 249 223
f) Donations and other community investments 3 4 3 6
For strengthening capital base and developing business 807 749 1,007 1,073

Indirect economic impacts

G4-EC7 Development and impact of infrastructure investments and service provided primarily for public benefit through commercial, in-kind or pro-bono engagement

OP has Finland's largest network of banking and non-life insurance services. This network seeks to ensure that customers have equal opportunities to carry out transactions. The service network covers both digital service channels (, OP-mobile and Pivo), telephone services and the network of branch offices. We are further developing our services by listening to our customers and their changing needs.

G4-EC8 Significant indirect economic impacts, including the extent of impacts

On 31 December 2016, OP Financial Group had 12,227 employees (12,130). Of these, 93 (93) per cent were permanently employed and 7 (7) per cent were fixed-term employees.

Furthermore, the Group employed a total of 492 summer employees and trainees during the year. OP is also a significant purchaser of goods and services. In 2016, the combined purchase volume of products, services, rights and the claims service partner network was approximately EUR 954 million (615), provided by over 20,000 suppliers. Apart from this, the Group’s functions look after their own fundraising and investment-related acquisitions.

OP is currently creating indicators for the assessment of its economic impact at community and regional levels. The purpose of this is to identify ways of measuring the economic impact of an individual bank or the whole Group at community and regional levels.