Focus ESG

How can you imagine this audit?

This can be illustrated wonderfully using the example of a construction loan. First of all, we generally check whether the project is in line with our positive and exclusion criteria. Next, we request extensive information on the sustainability of the project with a questionnaire. This data flows into our ‘Environmental Rating Construction Financing’, which we developed together with the German Sustainable Building Council. We use it to evaluate the ecological and social criteria of the project – from energy efficiency and the integration of renewable energies to accessibility.

Achieving one of three creditworthiness classes is a prerequisite for a financing commitment. The following applies: the more sustainable the project, the lower the interest rate.

How far have you got with the implementation? What steps still need to be taken?

The term sustainability is always changing. That is why we are also constantly developing in this area, whereby we naturally want to be pioneers. Basically, we at UmweltBank – as our company name implies – are very sustainable. Of course, it is an advantage for us that we have anchored sustainability in our corporate strategy since our foundation 25 years ago. This runs through the entire company – from core business to personnel policy to office equipment. In contrast to many other banks, we do not have any legacy burdens on our balance sheet, such as loans for armament companies, coal-fired power plants or animal fattening facilities.

Many companies complain that the EU taxonomy makes implementation difficult.

First of all, we find it regrettable that natural gas and nuclear power are also considered sustainable under the EU taxonomy. We at UmweltBank see it differently and will continue to consistently exclude these business areas in the future. In addition, we see major challenges, especially in the processes and reporting. Measuring the impact of the data is sometimes very difficult, and a lot is demanded of the companies here. In some cases, however, the data material is simply lacking: it is sometimes very difficult to find out whether a day care centre for which we implement real estate financing meets the goals of the Paris Climate Protection Agreement.

People often complain that the implementation of ESG focuses on the “E” – what does Umweltbank do in the “S” and “G” areas?

We also have the topic of social taxonomy on our radar. Social criteria for the subsequent use of the property are also included in our environmental rating, which we mentioned earlier. For example, we give a positive rating if properties are offered at reduced rent prices.

As far as the “G” for governance is concerned, this is the basis for us anyway, without which the rest cannot function.