Sustainability strategy

A sustainability strategy for the entire banking group

CLIENT

Association of regional banks

EXPERTISE

SERVICE

Integrated strategy with a self-assessment tool and implementation toolkit

PARTNER

Eurogroup Consulting (EGC)

01 INITIAL SITUATION

The banks within a regional network wanted to take a joint stance on sustainability for the first time.
As the banks are independent entities, the strategy had to be equally applicable to each one.
At the same time, regulatory requirements were increasing, for example regarding the management of sustainability risks in lending.
For some of the banks, a requirement for sustainability reporting was also emerging.
Sustainable account models were already standard amongst competitors, but the network itself had yet to establish its own positioning.
The banks saw their lending activities, rather than their own operations, as the greatest lever for sustainability.

02 APPROACH

STEP 01

Review of current situation

A preliminary survey of the participating banks, together with an analysis of the regulatory framework and the competitive landscape, revealed where the group currently stands. We identified the relevant sustainability issues using a materiality analysis.

STEP 03

Goals and measures

For each of the identified areas for action, we have developed and set specific targets, complete with key performance indicators and a timetable – ranging from sustainability criteria in lending to future reporting.

STEP 02

Positioning

A sustainability strategy and a shared definition of sustainability were developed through a series of workshops. In addition, seven UN Sustainable Development Goals were selected as priority areas.

STEP 04

Implementation

Together with the banks, we developed and tested a self-assessment tool and an implementation toolkit. We then agreed the strategy and guidelines with the management teams.

03 RESULTS

A strategy for the entire banking group

The strategy applies to all banks without the individual institutions having to adapt it. It is adopted annually by the executive boards, with the supervisory boards involved in the process.

Clear goals by 2030

The group aims to achieve the selected sustainability goals and become climate-neutral in its own operations in terms of Scope 1 and 2 emissions by 2030. The target for the investment portfolio is to achieve carbon neutrality by 2050.

Tools for every bank

With 23 questions covering all areas of action, every bank can assess its own progress. The implementation toolkit provides appropriate measures, complete with examples from the sector.