As a Franco-German bank, we are aware of our responsibility as a lender to finance sustainable growth. Ethical and responsible behaviour has always been at the heart of our business model. By providing sustainable financing, we actively support the transition to a sustainable society and accompany our customers on their way to a carbon-neutral industry and economy.
A comprehensive sustainability strategy includes financing. This is why more and more of our customers are opting for sustainable financing options. There are many different terms for sustainable financing products – ESG loans, green or social loans, etc. They all describe financing instruments that are only provided for sustainable purposes – i.e., for environmentally friendly, climate-friendly, resource-saving or social investments/projects.
The purpose of the framework for ESG-related financing (german version) is to provide a clear and transparent arrangement for the provision of green and social financing, covering the details of the use of funds, the selection and evaluation of projects, the monitoring of the use of funds and the ongoing reporting of ESG-related financing. Our framework for ESG-related financing is aligned with the Loan Market Association’s (LMA) Green Loan Principles and Social Loan Principles and refers to their four core components:
The E refers specifically to the environmental aspects of a company or organisation. It assesses how well the company addresses environmental issues such as natural resource management, climate change, waste management and the environmental impacts of its operations.
The S refers to the social aspects of a company or organisation. It assesses how the company interacts with its employees, customers, suppliers and society as a whole. Issues such as working conditions, human rights, diversity and inclusion, customer relations, product responsibility and community involvement are considered.
The G refers to how a company is managed and controlled. It assesses corporate governance, transparency, integrity and management accountability. Aspects such as the composition of the Board of Management, independence of oversight bodies, remuneration structures, business ethics and disclosure of information are considered.
Purpose of financing funds
Project evaluation and selection process
Monitoring the use of funds
Reporting