Climate Change Data

Credit Europe Bank N.V.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Healthy and Stable Bank
  • Responsible Tax Strategy
  • Compliance and Anti-fraud
  • Effective Financial Risk Management
  • Embracing Technology and Innovation
  • Value-adding and responsible products
  • Human Capital Management
  • Agile, Adaptive and Resilient Organization
  • Data Governance
  • Corporate Culture
  • Transparency
  • Information and Operational Risks
  • Diversity, Equity and Inclusion
  • Employee Experience
  • Responsible Remuneration
  • ESG Strategy
  • Sustainable Finance
  • Stakeholder Engagements & Public Relations
  • Managing Environmental Risks and Impact on Nature
  • Financial Inclusion

Environmental Achievements

  • Exit from thermal coal financing by the end of 2024
  • Activities related to extraction/infrastructure of Coal and Oil & Gas are prohibited
  • Adoption of ESG-based risk acceptance criteria for Marine Finance and Commercial Real Estate lending, aligning with IMO and EPC standards respectively.
  • Reduced foreclosed assets by approximately 50%.

Social Achievements

  • Launched Corporate online and mobile banking, and retail mobile banking app 'Monet' in Romania.
  • Introduced virtual cards in Romania.
  • Implemented a digital platform for Supply Chain Finance transactions.
  • Offered Unconscious Bias Trainings to all employees and established ‘CEB United’, a Diversity & Inclusion Working Group.
  • Donation to fund the establishment of a child rehabilitation center in Turkey.

Governance Achievements

  • Improved data centralization and reporting capabilities, enhancing risk monitoring efficiency.
  • Revised Risk Appetite Policy and enriched limit monitoring framework with LGD-based concentration limits.
  • Revised IFRS9 ECL calculation framework for Corporate Customers.
  • Changes were made to the organizational structure of the Bank’s Compliance Division to ensure effective group-wide compliance oversight.
  • Completed actions addressing comments from regulatory authorities resulting from AML/CTF examinations conducted in 2022.

Climate Goals & Targets

Medium-term Goals:
  • Enhancing the value proposition of international trade finance
  • Strengthening Project Finance and Supply Chain Finance
  • Increasing the franchise value of the retail banking business in Romania
  • Further improving synergy and cooperation among business lines
  • Embedding digitalization into the entire organization
  • Continuously investing in people and company culture
  • Further optimizing our corporate and capital structure
  • Extending the Bank’s ESG management framework by incorporating further environmental and social aspects and developing a roadmap for carbon emission reduction.
Short-term Goals:
  • Further decrease the NPL ratio
  • Cut more than 70% of the remaining foreclosed assets over the next three years

Environmental Challenges

  • High interest environment
  • Slowdown in commodity markets
  • Geopolitical tensions (including the war in Ukraine and conflicts in the Middle East)
  • High employee turnover rates
  • Tight labor market
  • Increasing inflation levels
Mitigation Strategies
  • Continuous efforts in diversification of trade finance portfolio.
  • Shift of risk appetite towards Western European markets for Corporate Lending.
  • Investment in digitalization to improve customer services and increase product spectrum.
  • Compensation adjustments to minimize the impact of inflation on employees.
  • Initiatives to decrease turnover rates (detailed in the report)
  • Cultural program to improve cooperation and collaboration among colleagues.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Wider introduction of and increase in carbon price
  • Increase in capital requirement
  • Stricter regulatory requirements to combat climate change
  • Failure to comply with risk assessment and disclosure requirements
  • Reputational and litigation risks

Reporting Standards

Frameworks Used: EU Taxonomy

Third-party Assurance: KPMG Accountants N.V.

UN Sustainable Development Goals

  • SDG 8

Promoting inclusive and sustainable growth.