What does ESG mean for BRD?

Sustainability has already become an essential aspect of a bank's business approach anywhere in Europe. As you know, our country, along with the other members of the European Union, has committed to certain targets for sustainable transition, which have become legally binding as of June 2021. The European Climate Act sets the targets of reducing emissions by 55% by 2030 and achieving climate neutrality by 2050. In this context, the targets that have been set cannot be achieved without the full involvement of economic actors, and banks are key players with a major impact in this process, playing a dual role of both facilitator and filter for projects receiving funding.

BRD has placed sustainable development – and energy transition in particular – at the heart of our strategy. We want to contribute to a transition that is both proactive and responsible, by accompanying our clients and the real economy towards carbon neutrality. The bank has set concrete targets for green financing, aiming to exceed €1 billion in sustainable lending by 2025. We are already well-known for the large financing operations carried out by our bank - I recall, in the context of the recent listing on the Stock Exchange, the financing granted to Hidroelectrica, a client we are proud of, and the range of green loans for individuals, which is already attracting interest.

We conceive business development only in close connection with our customers, paying attention to their needs and responsibly considering the impact of this on the environment and resources.

Since 2021, we have issued an Annual Sustainability Report that captures the essence of our efforts in this field. Earlier this year, we published its second edition, which follows the requirements of the GRI standards. This report is the result of hard work by many of my colleagues in BRD, whom I admire and value, and seeks to reflect for all those interested in the work of the entire BRD team in 2022, the performance and impacts, as well as the targets and the path to achieving them.

What is the value of the green loans granted by BRD Romania to date?

BRD has strengthened its involvement in financing the transition to sustainability, with the total volume of new sustainable financing reaching over RON 1.2 billion (€240 million) in the first half of 2023.

Out of the total green loans extended to retail clients, approximately 25% were granted through digital channels.

In the corporate customer segment, BRD provides financing instruments (loans, bond issues, letters of guarantee) aimed at financing the transition to a low-emission economy. 

Thus, we grant green loans or loans linked to sustainability objectives, for activities that contribute to de-carbonization agendas, namely for the installation and operation of renewable energy installations (corporate financing), clean mobility, public and private energy efficiency projects, development, ownership or acquisition of green buildings, efficient use of natural resources (circular economy), etc. In this respect, we mention the largest green finance transaction granted in the form of a bilateral green loan in favor of Hidroelectrica (€257 million), the financing of the acquisition of renewable energy assets, the structuring and financing within a banking syndicate of the acquisition of a green building (€30 million) or the development of a green real estate project (€24 million), to name only a few transactions.

Our bank also issues letters of guarantee dedicated to such sustainable development projects and can help issue and structure corporate green bonds or bonds linked to sustainable development objectives.

For individual customers, last year we launched two new loan products - the Expresso Verde consumer loan and the Habitat Verde mortgage loan.

The Expresso Verde loan supports customers in the purchase of both electric or plug-in hybrid cars that generate carbon emissions below 50gCO2/km and equipment that reduces the carbon footprint or improves the energy efficiency of a building such as electric bicycles/ scooters/ mopeds/ scooters, solar/ photovoltaic panels, heat pumps, including auxiliary installations, convectors, storage units for thermal and electrical energy produced from renewable sources, double glazed windows, central heating plants including auxiliary installations and boilers, air conditioning equipment, etc.

Through the Habitat Verde loan, we finance the purchase of green homes, certified by RoGBC (Romanian Green Buildings Council) and classified as class A energy efficient, according to the Building Energy Performance Certificate. Green housing is sustainable housing that meets the latest design, construction, and operation requirements to minimize the impact of housing on the environment and therefore on its inhabitants.

Do you have a target regarding the reduction of water and energy consumption in the BRD offices?

Yes, we have a target set by the Group which is to reduce our carbon footprint by 50% in 2030 compared to 2019, but our ambition is to achieve this target in 2025. In 2022, we reached a 25% decrease in energy consumption vs. 2019, so we are very positive that we will attain our target. We launched a series of projects to reduce energy and water consumption (solar panels on our own buildings, replacing old equipment with energy-efficient equipment for cooling and heating, LED lighting system, optimizing set-point in temperature for warm(25grC) and cold(21grC) season, new generation IT equipment, intelligent bathroom faucets in modernization projects, etc.)

BRD supports chamber music concerts, through association with various Romanian architectural works. Can you give some examples in this regard? What kind of projects are you involved in for this year?

Indeed, culture is, chronologically, the first area we became very attached to and to which we made our best efforts to support. We created Fundatia9 with the mission to support new generations of cultural and educational creators, and courageous thinkers, to develop a great community able to remind us why culture and education are vital for a free, responsible, bold, empathetic, and supportive nation.

Today, in 2023, Scena9 is a landmark in both cultural journalism and Residenta9, a cultural hub with countless cultural events. Together with Galateca, we set up NeoArt Connect, the first national art and science network.  

Music is naturally connected to culture, and we have linked our name to meaningful events such as the Stradivarius Tour made by violinist Alexandru Tomescu, Sonoro Conac and Sonoro Musikland, Violoncellissimo, the chamber ensemble led by maestro Marin Cazacu, Un Pian si Un tambal, Euphonia, Orgile Romaniei. All these are projects that we passionately support, bringing them close to the people, in Romania's big and small cities and even in a number of rural areas, with special significance for Romanian culture, music, or history.

BRD has also become a partner of George Enescu International Festival, and this year we intend to bring classical music even closer to the public, gathering communities under the sign of generosity and harmonies.

And, since we are talking about music, I cannot pass under silence our pride and joy, the BRD Choir, led by the fantastic conductor Andrei Stanculescu. BRD Choir gave our music-loving colleagues the opportunity to be together, singing wonderful pieces of classical music and representing the bank in an extraordinary experience, unique in the European banking landscape - Playing for Philharmonie, a series of choral concerts at the Philharmonie de Paris, in a project that brings together colleagues from all Société Générale branches around the world. BRD Choir also sang in Romania, at the Athenaeum, or on the stages of various philharmonics around the country.

We also support sports and young athletes because sports build a nation's health, self-confidence, and pride. Thus, for almost 10 years we have been a solid partner of Romanian handball.

Driven by the same vision, we are also supporters of the "GoScholarship" program, unique in Romania, which supports high-performance athletes 14 to 18 years old, from various sports, to improve their professional and educational training.  

The above examples are only a few of the projects in which BRD is involved together with its partners.

I will also mention two other projects directly related to the environment. The first is the Climate Change Summit, the most important sustainability event in Southeast Europe, a platform that we use in order to talk about the challenges of the green transition.

The second is related to community reconstruction. It is called "Intre Vecini / Between Neighbours" and provides free photovoltaic panels on blocks of flats, as well as support for the implementation of sustainable actions, the beneficiaries of the project being urban communities living in blocks.