Case study: How IKB identifies and works on strategic business opportunities to increase positive and reduce negative impacts
Using a comprehensive approach that integrates regional sales, sector, and product groups, IKB guarantees its customers receive tailored, solution-focused support. On-site personal assistance is available through a sales network spanning six locations across different regions. IKB’s customer services primarily concentrate on lending, credit advisory, and structuring advice, including capital market products. As a specialist, IKB provides its clients with access to public loan programs. Additionally, since April 2024, IKB has been offering project financing to its customers. As of December 31, 2024, IKB employed approximately 592 full-time staff members. IKB is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, identifying and working on strategic business opportunities to increase positive and reduce negative impacts. Tweet This!
This case study is based on the 2024 PRB Reporting and Self-Assessment Template by IKB prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking addressed in this case are:
- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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- How IKB proceeded with stakeholder identification and consultation, and
- How IKB identified and worked on strategic business opportunities to increase positive and reduce negative impacts
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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.
IKB’s sustainability communication emphasizes consistent, proactive, and ongoing engagement with its stakeholders. The bank’s primary stakeholders include customers, creditors, owners, employees, supervisory authorities, the general public, rating agencies, and media representatives. IKB maintains regular communication with institutional bond investors through its Investor Relations team, conducting one-on-one meetings and investor calls. In preparation for the CSRD, the bank collaborated with internal stakeholders throughout the reporting period.
How did IKB identify and work on strategic business opportunities to increase positive and reduce negative impacts?
In its 2024 PRB Reporting and Self-Assessment Template IKB reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:
Sustainability is already deeply embedded in IKB’s product offerings. In 2023, the IKB Sustainable Finance Framework was introduced, providing a comprehensive overview of IKB’s positioning in sustainable products. As an additional driver for industry transformation, ESG Advisory was launched to complement the existing sustainable product portfolio. This service supports customers in meeting regulatory requirements and includes awareness workshops. Combined with IKB’s advisory services for public programme loans, this enhances awareness of sustainable finance.
In fiscal year 2024, IKB added project financing as a new financing tool for transformation initiatives. This form of financing is crucial for advancing sustainability, as it enables the funding of large-scale, long-term projects. These include transformation efforts such as renewable energy plant construction, investments in the circular economy, and environmentally friendly infrastructure measures. Such projects significantly contribute to reducing greenhouse gas emissions and conserving natural resources. The vital role of project financing in the green transition is further underscored by its close integration with government support programs.
In 2024, sustainable finance products financed under the IKB Sustainable Finance Framework amounted to approximately €0.7 billion, mobilizing a total of around €1.7 billion.
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.
FBRH Principles for Responsible Banking (PRB) Assurance:
First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience
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- FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
- FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
- FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.
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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.
References:
This case study is based on published information by IKB, 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:
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