Climate Change Data

Environmental Metrics

ESG Focus Areas

• Gender equality
• Industry, innovation and infrastructure
• Decent work and economic growth
• Sustainable cities and communities

Environmental Achievements

• 100% of power demand at pbb’s headquarters has been met using renewable energy sources since 2011. All other German locations have also been using power from renewable energy sources since 2015, respective power supply is carbon-neutral.
• Annual General Meeting 2019, together with the Annual Press Briefing and the Analyst Conference, were also carried out in a carbon-neutral way; this is also planned for 2020.

Social Achievements

• Established a new KYC team (the Client Lifecycle Management Team) in January 2020, to support sales-related units in complying with legal requirements and audits.
• Introduced a “family service” for all employees based in Germany, which provides agency and selective advisory services. This new offering has been taken up by employees in particular for childminding, homecare and eldercare.
• Continued to back employees in balancing working and family life by providing practical support for everyday situations.

Governance Achievements

• Adjusted its remuneration system in 2019 to meet the requirements of the revision of the IVV as amended on 4 August 2017.
• Implemented a new workflow system in January 2018 to identify which norms and regulations apply to pbb and ensure adherence.
• Prepared another statement of compliance with the UK Modern Slavery Act in 2019.

Climate Goals & Targets

Environmental Challenges

• Increased need for specialisation and demographic change, as well as an environment marked by regulatory requirements, brings distinct challenges to pbb Group in its HR work.
• Increasing competition for experts with other employers.

Mitigation Strategies

• Implemented various initiatives to attract young talent and strengthen their capabilities, including better cooperation with key universities and using external resources and various recruitment strategies for hiring new employees.
• Implemented a far-sighted HR strategy, which translates the Group’s business and risk strategy (as well as its business model) into the HR world.

Supply Chain Management

Responsible Procurement

• Compliance Caution Framework (CCF Scout) used to check business partners for entries or any sort of conspicuous features

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: German Sustainability Code (DNK), German CSR Directive Implementation Act (CSR-Richtlinie-Umsetzungsgesetz)

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 9: Industry, innovation and infrastructure
• Goal 8: Decent work and economic growth
• Goal 11: Sustainable cities and communities

pbb Group defines sustainability as the self-conception, that its own actions provide an essential contribution to securing a long-term future and to consider the consequences for all stakeholders and the environment.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Corporate Governance
• Human Rights
• Employee Matters

Environmental Achievements

• Achieved carbon neutrality for company cars and business travel through emission certificate purchases.
• 100% of electricity consumed at German headquarters sourced from renewable energy since 2011.
• Most international locations also use primarily renewable energy.

Social Achievements

• Launched a new client portal to improve client interaction and transparency.
• Implemented a Code of Conduct for suppliers, including economic, social, and environmental responsibility aspects.
• Offered COVID-19 vaccinations to employees and their families.
• Implemented 'New Work' framework for flexible working arrangements post-pandemic.

Governance Achievements

• Established an ESG Committee in June 2021 to oversee ESG topics and risks.
• Implemented comprehensive regulations and processes to prevent money laundering and terrorism financing.
• Established safeguards to prevent fraud and other criminal acts, including corruption and bribery.
• Implemented a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting client contact and operations.
• Transitioning to a lower-carbon economy and managing associated risks (physical and transition risks).
• Data limitations in assessing taxonomy eligibility of financial assets.

Mitigation Strategies

• Implemented COVID-19 prevention measures, including remote working and vaccination programs.
• Integrated ESG risks into risk management system and portfolio analysis.
• Developed a Green Loan Framework and Green Bond Framework.
• Developed a scoring model for green loans, using EU Taxonomy as an alternative.

Supply Chain Management

Responsible Procurement

• Code of Conduct for suppliers implemented in 2021.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, heavy rain, storm surge, hail, storm, tornado

Transition Risks

• Pollution, contamination, property energy efficiency, carbon footprint, new regulations for the real estate sector/carbon pricing, market sentiment

Opportunities

• Offering sustainable financing solutions (green loans) and issuing green bonds.

Reporting Standards

Frameworks Used: German Sustainability Code (DNK), EU Taxonomy Regulation

UN Sustainable Development Goals

• SDG 5: Gender equality
• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation and infrastructure
• SDG 11: Sustainable cities and communities

pbb Group prioritizes these SDGs based on its ability to make a direct or indirect positive contribution or avoid negative impacts through its business activities.

Sustainable Products & Innovation

• Green loans, Green bonds

Environmental Metrics

ESG Focus Areas

• Climate and Environment (E)
• Social (S)
• Corporate Governance (G)

Environmental Achievements

• 100% of power demand at pbb’s headquarters has been met using renewable electricity since 2011. All other German offices have been powered exclusively by green electricity since 2015.
• Achieved a PUE of 1.6 in its Frankfurt-based data center since 2020.
• Reduced business travel related CO2 emissions to 315 tonnes in 2022 (from 63.3 tonnes in 2021), offsetting emissions through climate projects.
• Reduced company car CO2 emissions (below previous year's level).

Social Achievements

• Launched an ESG program in 2021, continued intensively in 2022, addressing all three ESG dimensions.
• Established an ESG Committee in July 2021 and an ESG Programme Management team.
• Developed a holistic ESG training concept in 2022.
• Established an ESG Office responsible for managing cross-divisional ESG tasks.
• Created a group to develop offers and formats to improve pbb’s ecological and social footprint (second half of 2022).

Governance Achievements

• Established an ESG Committee and an ESG Programme Management team in 2021.
• Implemented a Code of Conduct and Human Rights Guidelines.
• Introduced a Code of Conduct for suppliers in 2021.
• Implemented a Compliance Management System to ensure compliance with laws and regulations.
• Established a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Increased need for specialization, demographic change, and shortfall of qualified staff.
• Ever-changing regulatory requirements.
• Data collection on loan portfolio for comprehensive transparency and sustainability management.
• Managing transitory and physical risks associated with climate change.
• Insufficient consideration of governance factors.

Mitigation Strategies

• Far-sighted HR strategy to attract, retain, and develop employees.
• Active tracking of regulatory shifts.
• Development of risk analysis tools for ESG risks.
• Development and implementation of a holistic ESG data model.
• Systematic retrospective collection of client data relevant for climate management.
• Structured dialogue with clients to analyze their perception of sustainability and associated transformation pressures.
• Integration of ESG into governance structures.
• Shifting from a project approach to decentralizing ESG topics across divisions and core processes.
• Development of a holistic ESG training concept.
• Establishment of an ESG Office.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Heavy precipitation
• Storm
• Tornado
• Forest fires
• Drought
• Heat waves
• Earthquake
• Volcanic eruptions

Transition Risks

• Property energy efficiency
• Carbon footprint
• New sustainability and environmental regulations/carbon pricing
• Market sentiment

Opportunities

• Offering sustainable financing solutions
• Issuing green bonds
• Increased demand for ‘transformation loans’
• Advisory services

Reporting Standards

Frameworks Used: German Sustainability Code (DNK), UN Global Compact (UNGC), EU Taxonomy Regulation

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 9
• SDG 11
• SDG 5
• SDG 8

Funding to increase energy efficiency of buildings, funding for new housing, contributing to decarbonisation of real estate sector, promoting gender equality and decent work, economic growth.

Sustainable Products & Innovation

• Green loans
• Green bonds

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Sustainable finance
• Employee matters
• Corporate governance
• Client orientation

Environmental Achievements

• Achieved 73.6% transparency ratio in ESG evaluation of real estate portfolio by 31 December 2023; 29.6% of evaluated REF portfolio consisted of sustainable properties; 21.8% of overall portfolio consisted of green assets.
• Issued green loans totaling over €1.1 billion in 2023.
• Total outstanding volume of green bonds reached €3.13 billion by 31 December 2023 (increased from €2.86 billion in 2022).
• 100% of power demand at pbb’s headquarters has been met using renewable electricity since 2011; all other German offices have been powered exclusively by green electricity since 2015.

Social Achievements

• Launched Eco Estate GmbH, a green consulting joint venture with Groß & Partner, to support clients in their green transformation.
• Implemented a volunteering program with the Johanniter's Dominik Brunner House in Munich.
• Offered various health measures to employees, including preventive checkups, consultations, and vaccinations.

Governance Achievements

• Systematically integrated ESG into governance structures with an ESG Committee and ESG Office.
• Implemented a comprehensive Compliance Management System to ensure adherence to legal and regulatory requirements.
• Established a whistleblowing system for reporting statutory violations and undesirable conduct.

Climate Goals & Targets

Environmental Challenges

• Rapidly evolving regulatory requirements in the ESG context.
• Limited data availability for ESG risk assessment, particularly for SMEs and non-capital-market-oriented companies.
• Interpretational uncertainties in the EU Taxonomy Regulation.

Mitigation Strategies

• Established a data-based ESG ecosystem to holistically assess client perspective and ESG risks.
• Developed a decarbonisation tool to determine climate risks and pathways.
• Actively participates in working groups to promote the further development of sustainability standards.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers
• Compliance Caution Framework (CCF Scout)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storms
• Forest fires
• Heavy rainfall
• Heatwaves
• Landslides
• Droughts
• Volcanism
• Earthquakes

Transition Risks

• Low energy efficiency/high energy consumption
• High CO2 footprint
• New sustainability and environmental regulations
• CO2 pricing
• Market sentiment

Opportunities

• Offering sustainable financing solutions
• Issuing green bonds
• Increased demand for transformation loans
• Related advisory services

Reporting Standards

Frameworks Used: German Sustainability Code (DNK), EU Taxonomy Regulation, ICMA Green Bond Principles, LMA Green Loan Principles

Certifications: ENERGY STAR 7.1 (laptops), Blue Angel (printers)

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 5 (Gender equality)
• SDG 8 (Decent work and economic growth)
• SDG 11 (Sustainable cities and communities)
• SDG 13 (Climate action)

pbb Group's sustainability strategy actively incorporates these SDGs.

Sustainable Products & Innovation

• Green loans
• Green bonds

Awards & Recognition

• Fair Company seal