What are some of the key challenges CEC Bank Romania faces in promoting ESG and sustainability financing in Romania, and how is the bank working to overcome these challenges?

The main challenge is still related to awareness. From employees to consumers, suppliers, and all stakeholders involved, at this stage, this remains the main and utmost important issue to address. CEC Bank, alongside other banks, still needs to put continuous effort into providing further information in the market, to help players understand the requirements and implications by continuously addressing Greenwashing and Socialwashing risks; adapting to mandatory regulation and reporting; future development of geopolitical situations and energy crises; future risks - new trends, changes and monitoring of climate change risks.

Looking towards the future, what are CEC Bank Romania's ambitions for expanding its ESG and sustainability financing portfolio? Are there any specific sectors or areas of focus the bank is prioritizing?

Transition to climate neutrality will bring significant development opportunities, economic growth for new business models and markets, for new jobs and technological development. Achieving climate neutrality will, however, require overcoming challenges and includes appropriate instruments, incentives, support, and investment to ensure a cost-effective, just as well as socially balanced transition, taking into account different national circumstances.

This transition will require significant public and private investments, and banks have an essential role, by directing financing to such projects, either directly, or through complementary financing together with budgets allocated from public sources. That is why, in its capacity as a bank with the state capital, one of the largest financiers in Romania, and the player with the largest territorial network (over 1000 branches), CEC Bank aims to be a catalyst for financing the transition to a fair economy of large companies in construction, food, and agriculture, as well as energy projects.

In your view, how can ESG financing contribute to Romania's broader goals of achieving sustainable economic growth and development?

Considering the importance of ESG on Romania's and the European Union's agenda, the level of European funding granted to Romania to achieve strategic objectives on the 3 main pillars: Climate (41%), Digitalization (21%), and Social (38%), as well as the need Romania's ability to co-finance these projects, CEC Bank, in its capacity as a bank with state capital, aims to be one of the main supporters of transformation in the system.

The finance sector has a vital role to play in enabling us to respond to social and environmental challenges: providing capital, exerting positive influence on companies and other actors, and supporting government efforts to build a more socially and environmentally sustainable economy. In recent years, many banks in Romania have committed to sustainability through funding companies and activities that have positive impacts, encouraging others to better manage their impacts or develop new financing instruments. All these are contributing to the achievement of Romania's broader sustainable goals.

What role do you see CEC Bank Romania playing in educating and raising awareness among Romanian businesses about the benefits of ESG practices and sustainable financing options?

Most banks provide advice and expertise to clients interested in sustainable investments. This is especially important for companies and individuals who want to invest in projects with a real impact on the community, but need guidance and information. In addition, having the advantage of being the broadest territorial banking network, even in areas where no other bank has a presence, we plan to use our consultants and specialists to reach as many small businesses and people as possible. If larger companies have a higher level of access to information, small companies and the general public need support in understanding the importance of reporting, transparency, their business impact on society, and society's impact on their business.

What are the emerging trends you see in ESG financing in the Romanian market? How is CEC Bank Romania preparing to adapt and stay ahead of the curve?

Companies in Romania have become more aware, in recent years, of the need to integrate the sustainability strategy into their business strategy. This was possible, to a large extent, due to the framework provided by non-governmental organizations, and the opportunities for dialogue created between the business and political environments. As mentioned before, we, banks, still have an enormous responsibility to be leaders in supporting the transition to a greener and more inclusive economy and CEC Bank even more, as Romania's state bank. We are constantly preparing our teams so that we can finance, assist, and advise our stakeholders during our common ESG journey.