Banque Internationale à Luxembourg
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:5185 tCO2e (operational footprint, 2021)
Scope 1 Emissions:980 tCO2e (19% of total, 2021)
Scope 2 Emissions:0 tCO2e (2021)
Scope 3 Emissions:4105 tCO2e (81% of total, 2021)
Renewable Energy Share:100% (electricity consumption at headquarters)
ESG Focus Areas
- Sustainable governance and strategy
- Sustainable products and services
- Responsible employer
- Positive impact
Environmental Achievements
- Launched a green bond framework, issuing eight green bond transactions totaling EUR 92 million in 2022, including a successful EUR 25 million retail green bond.
- Measured operational carbon footprint (5,185 tCO2e) and financed emissions (402,504 tCO2e) for 2021.
Social Achievements
- Launched BIL Corporate Finance, a dedicated team providing lending and advisory services to entrepreneurs and family-owned corporate clients.
- Donated EUR 50,000 to ten Luxembourg NGOs.
- Launched internal social media network “Blink” to improve employee dialogue.
- Dedicated June 2022 to health and well-being initiatives.
- Deployed a Leadership program for managers and conducted sustainable development training for 400 key employees.
Governance Achievements
- Enforced SFDR disclosure requirements, including website, pre-contractual, and periodic reporting disclosures.
- Implemented a questionnaire for collecting clients’ sustainability preferences and trained advisors on sustainable investment opportunities.
- Finalised the ECB’s 2022 Climate Risk Stress Testing Exercise.
Climate Goals & Targets
Environmental Challenges
- Improving data quality for ESG reporting and enlarging the scope to other assets.
- Lack of data granularity to identify projects such as financing energy renovation works.
- Meeting regulatory requirements arising from the European Commission's Sustainable Finance Action Plan.
Mitigation Strategies
- Initiated work on improving non-financial data quality.
- Implemented a phased ESG Risk roadmap to meet regulatory expectations (Phase II to be rolled out until 2024).
- Developed a dedicated ESG team and engaged key stakeholders in the Towards Sustainability program.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI
Sustainable Products & Innovation
- Climate loan
- Photovoltaic loan
- Green bonds
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:17,539 tCO2e (location-based); 14,529 tCO2e (market-based)
Scope 1 Emissions:1,526 tCO2e
Scope 2 Emissions:3,169 tCO2e
Scope 3 Emissions:12,844 tCO2e
Renewable Energy Share:67.50% (location-based); 66.30% (market-based)
Total Energy Consumption:11,863.63 MWh
Water Consumption:23,920 m3
Waste Generated:202.93 tons
Carbon Intensity:23.0 tCO2e/EUR million (location-based); 19.1 tCO2e/EUR million (market-based)
ESG Focus Areas
- Climate Change Mitigation and Adaptation
- Sustainable Finance
- Responsible Employer
- Positive Social Impact
- Data Privacy and Security
- Human Capital Management
- Product Governance
- ESG Integration
- Corporate Governance
- Business Ethics
Environmental Achievements
- 10% reduction in operational carbon footprint in 2023
- 100% renewable energy used in BIL’s headquarter building
- 58% share of electric vehicles in BIL’s leasing fleet
- EUR 442.7 million outstanding of green bonds issued
Social Achievements
- Signature of the Women in Finance Charter
- 43.64 average training hours per employee; 1,927 employees trained in the framework of the Bank’s new Core Banking System
- Community support through donations (EUR 99,720) and sponsorships, volunteering programmes, and awareness-raising sessions
Governance Achievements
- Establishment of a new ESG Strategic Steering Committee
- Setting of first ESG targets & definition of an ESG Dashboard
- Sustainalytics ESG Risk Rating of 11.2 (low-risk)
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050
Medium-term Goals:
- Achieve 30% share of sustainable investments in Bank’s portfolio by 2025
- Align share of electric cars in new consumer loans and finance leases with new car registrations in Luxembourg by 2025
Short-term Goals:
- Reduce water consumption by 3% by 2024
- Reduce electricity consumption by 3% by 2024
- Reduce operational carbon footprint by 2% per year until 2025
- 100% EPC collection for new residential properties by 2024
- Increase share of A/B energy class in new loans to 50% by 2024
- 100 new renewable energy loans by 2024
Environmental Challenges
- Reliable ESG data
- Dependence on clients’ transition
- Bringing clients on board and training staff
Mitigation Strategies
- Investment in improving data environment and appointing an ESG Data Officer
- Close collaboration with clients
- Comprehensive training programs and ongoing awareness-raising initiatives
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Code of Conduct for Providers encompassing ESG principles
- Minimum labour, health and safety, environmental, and ethical standards
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: GRI Standards (Core Option) 2021, European Sustainability Reporting Standards (ESRS), UN Principles for Responsible Banking (UN PRB), UN Global Compact
Certifications: Luxflag ESG Label, SuperDrecksKëscht Label
Third-party Assurance: None in 2023; aiming for external assurance starting in 2025
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through sustainable finance, energy efficiency improvements, and reduction of carbon footprint.
Sustainable Products & Innovation
- Green bonds
- Green loans
- Sustainable investment funds
Awards & Recognition
- Not disclosed