"In today's landscape, marked by climatic and social instability, sustainable development is not just a choice, but a necessity. As a financial institution, we are crucial in redirecting capital flows towards activities that accelerate the transition to a sustainable economy. This report, published for the 15th consecutive year, is yet another proof of our commitment to contributing to the well-being of local communities, the natural environment, and the Romanian economy”, said Zdenek Romanek, President & CEO, of Raiffeisen Bank Romania.
Responsible Banking: 2023, the Year of Sustainable Lending and Financial Planning
In 2023, Raiffeisen Bank issued the first senior non-preferred euro bonds in a sustainable format in the Romanian banking sector on the international capital market, totaling €300 million. These complemented the bank's portfolio of green and sustainable bonds, reaching a total of 7 bond issues worth almost €1 billion by the end of 2023. ESG-linked loans to corporations grew by 75% in 2023 compared to 2022, and 20% of the corporate portfolio consisted of financing sustainable projects. Approximately 39% of new mortgage loans were granted for financing buildings with A-class energy performance.
With the support of the European Investment Fund, Raiffeisen Bank supports the largest investment plan dedicated to SMEs in Romania in recent years, through two guarantee schemes worth €400 million. This financing helps transition to a sustainable economy and reduces regional inequalities by strengthening the competitiveness of small and medium-sized enterprises.
Additionally, over 100 projects registered in the factory by Raiffeisen, the program dedicated to supporting early-stage entrepreneurs, were financed with €4.9 million in 2023. In 2023, Smart Market became the first banking loyalty app in Romania with an integrated carbon footprint calculator. Also, since the summer of 2023, the app has included the "Care for the Environment" section.
Raiffeisen Bank Romania continued 1:1 discussions with clients about personal financial planning. By the end of 2023, clients with habits related to investments, voluntary pensions, and life insurance with a savings component saw an increase of over 108% compared to 2021. Regarding the supply chain, Raiffeisen Bank supports the local economy: 77% of supplier expenses were directed towards over 89% of local suppliers.
Progress in Energy Efficiency and Reducing Emissions from Operations
In 2023, the bank continued to take measures to reduce its direct negative environmental impact, recording an approximate 8% reduction in direct emissions from its operations (Scope 1 & 2 emissions according to the Greenhouse Gas Protocol Corporate Standard).
It invested approximately €700,000 to modernize its vehicle fleet: it purchased 17 electric vehicles, 2 hybrids, and 7 gasoline vehicles compliant with Euro 6 standards, replacing diesel vehicles. Progress was also made in energy efficiency. Raiffeisen Bank continued the process of replacing air conditioning systems, starting in 2021, investing 719,000 lei in more energy-efficient technologies, resulting in annual energy savings of 359 MWh. The bank also emphasized purchasing energy from renewable sources, with 42% of total electricity consumption coming from renewable sources.
As a result of efforts to reduce the use of primary resources, 20% of the PVC used in new card production was recycled PVC, a significant increase from less than 1% in 2022. For 2024, Raiffeisen Bank aims to increase the percentage of recycled PVC to 90% of the total PVC used for newly issued cards.
The year 2023 saw intensified efforts for diversity and inclusion, which materialized through an internal survey and the definition of strategic pillars. Throughout 2023, all over 4900 Raiffeisen Bank employees received training, performance evaluation, and career development plans; 99% of them completed the Diversity and Inclusion Pillars course, with an average training duration per employee of nearly 6 days. Over 55% of management positions were held by women.
In 2023, Raiffeisen Bank invested over €5 million in community projects and programs that act as catalysts for positive societal changes. Of this amount, €1 million was directed to 20 NGOs through Raiffeisen Communities, one of the bank's flagship programs transformed into a sustainability NGO accelerator in 2023. Additionally, Raiffeisen employees contributed over 600 hours of volunteer work to support communities.
"We remain a banking partner that understands the sustainability journey is undertaken together. Whether we are talking about our colleagues, partners, suppliers, or especially our clients, with whom we collaborate daily, we know their support is essential for advancing the bank's sustainability goals, as well as achieving European and global objectives. This sustainability report reflects our joint efforts, and we thank everyone involved for their dedication and continuous support in this endeavor”, said Roxana Barbato, ESG & Sustainability Director, Raiffeisen Bank Romania.
Raiffeisen Bank Romania's 2023 Sustainability Report can be consulted in full here.
The report was developed by the Global Reporting Initiative (GRI) 2021 Standards and complies with the provisions of the National Bank of Romania's Order No. 7/2016, the Ministry of Public Finance Order 3456/2018, and the information provided by EU Regulation 852/2020 (Taxonomy).
