Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by around 5,000 tonnes in the period from 2008 to 2018; aiming for a further reduction of 3,500 tonnes from 2019 to 2021.
• Switched to an electricity tariff based on renewable energy sources since 2018.
• Reduced waste volume at Kiel and Hamburg offices to around 130 tonnes in 2019.
• Reduced paper consumption through digitalization efforts.

Social Achievements

• Launched an interdisciplinary project to identify recommendations for action for the future strategic orientation of Hamburg Commercial Bank, focusing on the opportunities and risks involved.
• Implemented a comprehensive transformation program, including staff reduction measures, in a socially acceptable manner.
• Offered diverse internal and external training and qualification programs, focusing on digitalization and leadership development.
• Maintained a corporate health management program including individual counseling, seminars, and health days.

Governance Achievements

• Implemented a comprehensive transformation program to make the Bank's business model customer-centric and competitive.
• Strengthened the funding base through successful placement of a senior preferred issue.
• Established a reputation risk strategy based on the ten principles of the UN Global Compact.
• Implemented a know-your-customer process to comply with the Money Laundering Act and Banking Act.
• Implemented a guideline for transactions in new products and new markets (NPNM).

Climate Goals & Targets

Environmental Challenges

• Challenging agenda associated with transforming Hamburg Commercial Bank into one of the best banks in Germany.
• Significant staff reduction measures resulting from downsizing business activities.
• Deteriorating economic situation and cautious stance towards new business.
• Climate change and its impact on the Bank's scope of action.

Mitigation Strategies

• Implemented a far-reaching transformation process.
• Made a successful return to the capital market.
• Improved refinancing options.
• Focused on industry sectors with proven expertise and good growth prospects, including renewable energies.
• Implemented a comprehensive health management system, including social counseling.
• Incorporated ESG criteria into the lending process.
• Implemented measures to reduce energy consumption, mainly electricity and heat.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• HCOB Purchasing Principles
• Supplier Code

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy financing

Reporting Standards

Frameworks Used: German Sustainability Code (DNK)

Certifications: DIN EN ISO 50001 (Energy Management), DIN EN ISO 9001:2015 (Quality Management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Award from trendence Institut GmbH for high-quality trainee programs
• Seal audit work and family life
• Recognition for exemplary occupational safety system

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social
• Governance

Environmental Achievements

• Reduced energy consumption to 31,125 GJ in 2021 (2020: 44,061 GJ), mainly due to downsizing of premises.
• Reduced CO2e emissions (Scope 1 and 2) from 1,099 tons in 2020 to 640 tons in 2021.
• Reduced paper consumption to 6 tons (2020: 13 tons).
• Reduced water consumption to 7,218 m³ (2020: 15,543 m³).

Social Achievements

• Implemented a company-wide vaccination program for employees and their relatives.
• Offered a comprehensive donation package for charitable organizations in its home region.
• Maintained an active and constant dialogue with employees, including continuous and open dialogue with the works council.
• Average training budget per employee was €1,120 in 2021 (2020: €950).

Governance Achievements

• Established a Sustainability Committee chaired by the CEO and a Sustainability Office.
• Integrated ESG factors into the remuneration of the Management Board.
• Improved ESG rating positions with Sustainalytics, MSCI, Vigeo Eiris, and ISS.

Climate Goals & Targets

Environmental Challenges

• Data limitations and availability for EU Taxonomy reporting due to the lack of client data on Taxonomy-aligned activities.
• Geopolitical situation, particularly in Ukraine, impacting plans.
• Staff turnover due to the transformation process.

Mitigation Strategies

• Internal assessment of EU Taxonomy eligibility for all total assets.
• Ongoing assessment of the relevant regulatory and market environment.
• Social plan developed in collaboration with the works council for workforce reduction.

Supply Chain Management

Responsible Procurement

• HCOB Purchasing Principles based on best-practice approaches and BME recommendations.
• Supplier Code of Conduct based on HCOB’s Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Long-term business risks due to changes in weather and climate

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Financing of renewable energies and infrastructure projects.

Reporting Standards

Frameworks Used: GRI, DNK, TCFD, UN Global Compact, Principles for Responsible Banking (PRB)

Certifications: ISO 50001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)
• Goal 5 (Gender equality)
• Goal 14 (Life below water)
• Goal 12 (Responsible consumption and production)

HCOB’s business activities contribute to these SDGs through lending and investment activities, as well as internal operations.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Implemented ESG Scoring system based on EBA Action Plan on Sustainable Finance and BaFin Guidance Notice on Dealing with Sustainability Risks.

Climate Goals & Targets

Environmental Challenges

• Financing activities with negative sustainability impacts.
• Balancing sustainability goals with supporting partially non-sustainable companies in their transformation.

Mitigation Strategies

• Developed a three-layered blacklist (country, industry, company level) to exclude high-risk areas.
• Implemented an ESG decision matrix to guide loan origination and support sustainable transformation.
• Established an ESG scoring system for the loan portfolio.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EBA Action Plan on Sustainable Finance, BaFin Guidance Notice on Dealing with Sustainability Risks, UN Global Compact, Paris Climate Agreement, World Bank Group Environmental, Health and Safety Guidelines, Responsible Ship Recycling Standards, EU Ship Recycling Regulation, Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, United Nations (UN) Sustainable Development Goals, World Health Organization Framework Convention on Tobacco Control, Convention for the Suppression of the Traffic in Persons and of the Exploitation of the Prostitution of Others, Optional Protocol to the Convention on the Rights of the Child on the sale of children, child prostitution and child pornography, International Standards on Drug Use Prevention, European Drug Prevention Quality Standards, Chemical Weapon Convention (CWC), Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on their Destruction (Ottawa Treaty), Convention on Cluster Munitions (Oslo Convention), Non-proliferation Treaty of Nuclear Weapons (NPT), United Nations (UN) Food and Agriculture Organization (FAO) guidelines, Taskforce on Nature-related Financial Disclosures (TNFD), Forestry Stewardship Council (FSC), Marine Stewardship Council (MSC), Round Table on Responsible Soy Association (RTRS), Round Table on Sustainable Palm Oil (RSPO), International Union for the Conservation of Nature (IUCN) Red List, GMP+ (Good Manufacturing Practices for Food, Pharmaceutical & Cosmetic Products), EU Directive in the Protection of Animals used for Scientific Purposes, Royal Society for the Prevention of Cruelty to Animals (UK) standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Social
• Governance

Environmental Achievements

• Developed a Sustainable & Transformational Finance Framework to classify financing activities as sustainable or transformational, aligning with the EU Taxonomy and Paris Agreement.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Data availability issues for classifying general-purpose financing or credit lines.
• Ambiguities in aligning with EU Taxonomy and international principles.

Mitigation Strategies

• Utilizes counterparty's non-financial reporting for classification where use of proceeds cannot be determined.
• Best-effort approach to align with EU Taxonomy and international principles.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EU Taxonomy, PCAF standard

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• UN's Sustainable Development Goals (SDGs)

As a signatory to the UN Principles of Responsible Banking, Hamburg Commercial Bank has been actively pursuing the objectives of the Paris Climate Agreement and the UN's Sustainable Development Goals (SDGs) since 2020.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed