Case study: How MBH Bank identifies and works on strategic business opportunities to increase positive and reduce negative impacts

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.

MBH Bank has maintained an ongoing, structured, and two-way relationship with its stakeholders, actively incorporating their feedback to better understand their perspectives on sustainability issues. While stakeholder opinions indirectly influence the development of MBH Bank’s strategy and business model, MBH Bank does not formally document specific changes or planned actions based on stakeholder groups and their viewpoints.

MBH Bank’s internal stakeholder groups include owners, management, and employees, while key external stakeholders comprise clients (retail and corporate), suppliers, competitors, professional organizations, regulatory authorities, government agencies, civil society organizations, local communities, and the media. MBH Bank communicates with these groups through various channels tailored to each specific audience.

In 2024, MBH Bank conducted its first-ever group-level double materiality assessment as part of its sustainability reporting under the CSRD framework. This process aimed to identify significant impacts, risks, and opportunities related to ESG factors. It involved identifying both internal and external stakeholders who are affected or may be affected by the Bank’s operations or value chain. Detailed descriptions of these impacts were provided to assessors via an online questionnaire and reinforced through a supporting workshop. Stakeholders contributed to evaluating the material topics relevant to MBH Bank. Climate stability was identified as a key material topic; however, the impact of biodiversity has not yet been assessed at the Group level and is planned for future evaluation. Currently, MBH Bank is treating the group-level double materiality assessment and the impact analysis of the UN Principles for Responsible Banking (PRB) separately. Moving forward, MBH Bank intends to align these processes, including reassessing the materiality of biodiversity topics during the next double materiality assessment.

Additionally, regarding biodiversity and healthy ecosystems, MBH Bank plans to further refine its stakeholder identification process and engage relevant groups. This may include clients operating in sectors with high biodiversity impact, identified through the Nature Key Sectors screening phase. The Hungarian National Bank is a significant stakeholder in this context, given its ongoing work on nature-related guidelines, risk assessment methodologies, and workshops.

How did MBH Bank identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2025 PRB Responsible Banking Progress Statement MBH Bank reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

The identified business opportunities allow MBH Bank to re-evaluate its business model and decision-making processes in line with ESG considerations. In 2024, key opportunities included adopting financial strategies that promoted climate change adaptation, which could open new markets and bolster the resilience of the asset portfolio. By building a sustainable portfolio, MBH Bank can diversify its offerings and attract clients interested in responsible financial services. Additionally, integrating ESG factors into the overall business strategy enhances investor confidence and helps mitigate long-term operational risks, thereby strengthening MBH Bank’s competitiveness.

MBH Bank’s activities are governed by both European Union regulations and national laws, with a strong focus on implementing the EU Taxonomy within its ESG strategy. At the same time, the Bank has taken into account the Green Recommendation issued by the Hungarian National Bank, which offers guidance on sustainable banking practices and reporting. In line with these frameworks, MBH Bank has developed its Green Lending and Bond Framework, adhering to international standards and aligning with market expectations and regulations concerning project selection and evaluation, resource management, and reporting.

MBH Bank has introduced green loan products and digital lending solutions that support the sustainability goals of both retail and corporate clients, helping to reduce environmental impacts. The launch of its Green Bond Framework has played a crucial role in aligning MBH Bank’s financing activities with its sustainability commitments, improving communication with investors, and diversifying its green financing instruments. This framework is currently under review as the Bank actively updates it to meet evolving market demands.

MBH Bank aims to be a leader in corporate green lending, particularly in renewable energy production and green bond investments, with its green bond portfolio expected to surpass 101.2 billion HUF by the end of 2024. The Bank also plans to increase the share of green loans, recognizing that clients focused on ESG factors typically present lower credit risks. Key corporate lending products include financing for renewable energy projects, support for green real estate developments, and paperless account management solutions.

For retail clients, MBH Bank offers various sustainability-focused products and initiatives, such as the Green Home Program and ECO preferential mortgage loans. The Bank seeks to raise awareness among retail customers about green products and support sustainable home-building. Digital tools like the BUPA financial assistant, online invoicing, and paperless account management packages contribute to achieving sustainability goals for SMEs. Future plans include further enhancing digital services and expanding access to green products.

MBH Bank’s commitment to sustainability and business stability is vital for its future success. By developing a sustainable portfolio and fundraising strategies, the Bank supports global and European sustainability initiatives, including the UN Sustainable Development Goals (SDGs)—specifically SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action)—while creating new business opportunities to meet the rising demand for sustainable products.

Business opportunities concerning the impact area of biodiversity will be further recognized and evaluated as part of the ongoing steps in MBH Bank’s target-setting process.

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 MBH Bank, 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://www.mbhbank.com/sw/static/file/PRB_Responsible_Banking_Progress_Statement_new.pdf

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