Case study: How Creand Crèdit Andorrà takes action on its PRB targets: mitigation of climate change and financial inclusion and education

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

The key stakeholders identified by Creand Crèdit Andorrà include customers, who are central to its business decisions and purpose; shareholders, as the owners of the entity; employees, recognized as its most valuable asset and essential for overcoming challenges; the community, which Creand Crèdit Andorrà aims to positively influence through economic, social, and environmental progress; suppliers, whose role is crucial in ensuring quality and reliable service; and the media, for its ability to inform and shape societal perspectives in an increasingly transparent environment.

At the end of 2023, the Bank conducted a new materiality analysis to review, identify, and prioritize factors that could significantly affect Creand in economic, social, and environmental (ESG) dimensions. Creand Crèdit Andorrà adopted a dual materiality approach in line with the new requirements outlined in the relevant standards. One aspect is impact materiality, which examines the actual and potential effects of the bank’s activities on the environment and stakeholders. The other is financial materiality, which evaluates the potential economic implications for the bank of ESG risks and opportunities.

To conduct this analysis, it is vital to maintain a continuous dialogue with the public and the bank’s stakeholders. Accordingly, consultations were held with shareholders, the management team, employees, customers, suppliers, and the community. Furthermore, to enhance the dual materiality analysis, a workshop was organized with the Bank’s employees to gather insights and expectations from participants across various departments and positions within the organization.

Apart from this materiality analysis process, the Bank currently lacks systematic processes or mechanisms to engage with customers or other stakeholders on matters related to its impacts or the implementation of the Principles for Responsible Banking.

What actions were taken by Creand Crèdit Andorrà on its PRB targets, mitigation of climate change and financial inclusion and education?

In its 2023 PRB Reporting and Self-Assessment Template Creand Crèdit Andorrà reports that it took the following actions on its PRB targets, mitigation of climate change and financial inclusion and education:

• SMART Target 1: Mitigation of climate change
• Throughout 2023, Creand Crèdit Andorrà undertook several initiatives to advance the bank’s efforts in meeting its climate change mitigation target.
• Initially, the Sustainability Unit was strengthened, receiving direct oversight from senior management. This Unit is responsible for integrating sustainability practices both internally and externally, facilitating the incorporation of ESG considerations into various business sectors.
• In this context, the bank has developed a Green, Social, and Sustainable Bond Issue Framework, establishing the structural foundations for this type of financial product. Consequently, the bank issued its first sustainable bond, ensuring that all capital raised through this instrument will be invested in sustainable activities. This initiative aims to help reduce Scope 3 – Category 15 emissions, which can be quantified in future reporting periods. The bank also offers products designed to enhance energy efficiency, such as the Refurbishment Loan.
• Regarding its operations, since 2022, Creand Crèdit Andorrà has been awarded the Llum Verda seal by FEDA, confirming that all energy consumed by the bank is sourced from renewable resources. This achievement has led to a 100% reduction in Scope 2 emissions (market-based). Additionally, the bank has undertaken a project to install photovoltaic panels on two of its buildings to attain energy autonomy and self-sufficiency in electricity consumption.

• SMART Target 2: Financial inclusion and education
• In 2023, Creand Crèdit Andorrà introduced the Teens Creand package, a product aimed at young people aged 12 to 17, designed to promote financial inclusion by encouraging learning and fostering savings habits. This initiative features controls and monitoring tools that enable parents to supervise and ensure appropriate use of the payment and savings platforms.
• As part of Creand Crèdit Andorrà’s financial education efforts, several activities were organized, including:
  • Two talks in the Financial Education Cycle, attended by a total of 214 participants.
  • Four talks during financial markets conferences, drawing 494 attendees.
  • One private discussion on generational transitions in banking and finance, with 20 participants.
  • Fifty opinion pieces and 33 interviews conducted as part of the Creand Experts programme.
  • Additionally, two sessions of the Talks Cycle were held focusing on the global geopolitical situation and entrepreneurship, attracting 339 attendees. These events are part of the Bank’s broader initiative to enhance financial education for the public. The Creand Talks aim to showcase the synergies with the IESE Business School and emphasize the Bank’s commitment to knowledge-sharing through the involvement of distinguished speakers. The goal is to advance these initiatives to achieve the established SMART targets.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

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References:

This case study is based on published information by Creand Crèdit Andorrà, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://creandgroup.com/wp-content/uploads/Creand_ING_web_0708.pdf

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