Case study: How Kommunalkredit works with its clients and customers to encourage sustainable practices
Kommunalkredit specializes in financing infrastructure and energy projects. In collaboration with customers and partners, the bank strives to enhance quality of life. It supports the development and operation of infrastructure facilities by aligning the financial needs of project sponsors and developers with the increasing number of investors seeking sustainable investment opportunities. Kommunalkredit is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities. Tweet This!
This case study is based on the 2023 PRB Reporting and Self-Assessment Template by Kommunalkredit, 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:
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- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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With this case study you will see:
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- How Kommunalkredit proceeded with stakeholder identification and consultation, and
- How Kommunalkredit worked with its clients and customers to encourage sustainable practices and enable sustainable economic activities
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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.
Kommunalkredit’s sustainability commitments for its business operations and loan portfolio are informed by a materiality analysis and align with international standards, in addition to stakeholder expectations.
Following an examination of Kommunalkredit Group’s value chain and portfolio, workshops were conducted to assess the depth of various sustainability issues, resulting in a comprehensive list of topics that could affect the company, society, or the environment. A survey was carried out on selected sustainability themes to gather stakeholders’ perspectives. Relevant stakeholders were invited to rate each sustainability topic on a scale and were also encouraged to identify the five most important topics, providing qualitative feedback on what aspects of sustainability matter most to them.
How did Kommunalkredit work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2023 PRB Reporting and Self-Assessment Template Groupe Kommunalkredit reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
Responsible business management is fundamental to Kommunalkredit’s long-term success. Kommunalkredit adheres to professional standards and ethics as part of its daily operations, which are outlined in its Code of Conduct. This Code is mandatory for all entities, staff, and employees of the Kommunalkredit Group in their interactions with stakeholders and in every business context.
To minimize the most significant potential negative impacts of its activities, Kommunalkredit has established a set of exclusion criteria that apply to all new business ventures (financing and investment) and are implemented through specific policies.
Moreover, through its subsidiary, Kommunalkredit Public Consulting, Kommunalkredit assists companies in their climate mitigation efforts by providing voluntary carbon offset projects as part of the Climate Austria initiative.
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 Kommunalkredit, 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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