Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Human Rights
• Anti-corruption
• Environmental Sustainability
• Employee Well-being
• Diversity and Inclusion
• Community Investment

Environmental Achievements

• Reduced CO2 emissions by 25% in the car pool (weighted average CO2 emission of 119.78 g/km)
• Reduced fuel consumption by approximately 10% compared to the previous year.
• Implemented space optimization project resulting in reduced space usage and consequently lower electricity and heating consumption.
• Introduced LED lighting as standard across the network.
• Implemented a sophisticated video conferencing system to reduce business travel.

Social Achievements

• Continued and further developed the corporate volunteering program, with over 370 employees (12%) participating.
• Over 5,000 individuals benefited from the ‘Addiko Cares’ CSR strategy.
• Active participation in financial literacy programs, reaching over 55,000 participants.
• Full certification for a family-friendly workplace in Slovenia.
• Introduced work-from-home options for employees in Austria.

Governance Achievements

• Implemented a Code of Business Conduct and Ethics applicable group-wide.
• Established a whistleblowing procedure.
• Implemented policies to address conflicts of interest.
• No incidents of corruption discovered or recorded in 2018.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of banking operations.
• Maintaining high ethical standards across the group.

Mitigation Strategies

• Space optimization, energy-saving initiatives (LED lighting), travel management guidelines, digital banking promotion, paper reduction.
• Code of Business Conduct and Ethics, whistleblowing procedure, conflict of interest policies, anti-corruption measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Bank of the Year in Croatia 2018
• Best banking service from Qudal (Bosnia and Herzegovina)

Environmental Metrics

ESG Focus Areas

• Climate-related and environmental risks

Climate Goals & Targets

Environmental Challenges

• Climate-related and environmental risks impacting macroeconomic indicators and potentially affecting asset quality of clients in affected industries.

Mitigation Strategies

• Climate & Environmental risks materiality assessment performed, identifying industries potentially impacted by climate and environmental risk. Measures are being put in place to monitor and limit such exposures. Measures defined to recognize potential impact of climate and environmental risk on asset quality.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increased damages from extreme heat events
• Increased damages from river and coastal floods
• Increased water restrictions
• Sea level rise
• Flooding risk
• Precipitation and drought risk
• Biodiversity loss
• Air pollution
• Soil contamination

Transition Risks

• Regulatory changes and policies targeting cleaner fuel standards and technological advancement
• Shift in consumer preferences
• Shift of other sectors and end users to alternative energy sources
• Changes in the eligibility-criteria of bonds pledged used for refinancing at central banks

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Governance
• Employee well-being
• Responsible banking

Environmental Achievements

• Transitioned to 100% renewable energy at Addiko Bank AG Vienna (Austria); Group level renewable energy share is 28%
• Replaced 12% of the car fleet with electric and hybrid vehicles
• Achieved an additional 7% reduction in the number of cars and a further 2.2% reduction in office space
• Implemented environmentally friendly banking services like End-2-End online lending
• Enabled 18 green partnerships focusing on green products and services

Social Achievements

• Strengthened diversity policies, resulting in 56.6% women in executive and middle management positions in Addiko Group
• Enabled employee participation in well-being activities, mental healthcare, and health promotion activities
• Provided an average of 22.05 training hours per employee in 2023
• Supported communities through employee volunteering programs and charity work
• Incorporated sustainability aspects into the incentive scheme of Addiko employees

Governance Achievements

• Published the first ESG Strategy
• Updated internal guidelines to include ESG-related matters
• Successfully integrated ESG risks into the decision-making process for Corporate clients, sovereign and financial institutions
• Became a partner of PCAF (Partnership for Carbon Accounting Financials)
• Enhanced compliance efforts aimed at existing and new ESG-related regulatory requirements

Climate Goals & Targets

Environmental Challenges

• Data availability for better quantifying physical and transition risks
• Comprehensive reporting of direct and indirect relationships in the upstream and downstream value chain requires careful assessment and data gathering

Mitigation Strategies

• Initiated efforts to collect GHG financed emissions data from the PCAF organization
• Undertook a thorough assessment to identify material impacts from upstream and downstream value chains; incorporated material impacts into the report
• Committed to continuous improvement in sustainability reporting practices; future reports will progressively include deeper insights into the broader value chain

Supply Chain Management

Responsible Procurement

• Transparent, neutral, and non-discriminatory supplier selection process
• Incorporation of social and environmental standards into internal procurement policies
• Review of supplier ESG compliance with regulations and anti-corruption policies

Climate-Related Risks & Opportunities

Physical Risks

• Increased damage from river and coastal floods, droughts, extreme heat events, and ecosystem disruptions

Transition Risks

• Climate policy changes, technological and behavioral changes

Opportunities

• Supporting clients in their green transition journeys
• Enhancing risk identification by integrating C&E risks into lending and investment decisions

Reporting Standards

Frameworks Used: CSRD, ESRS (voluntary best-effort basis), NaDiVeG (Austrian Sustainability and Diversity Improvement Act), UN Sustainable Development Goals, OECD Due Diligence Guideline on Responsible Business Conduct, PCAF

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Addiko's 15 initiatives contribute to these goals through various actions related to employee well-being, diversity and inclusion, economic growth, and climate change mitigation

Sustainable Products & Innovation

• Environmentally friendly banking services
• Green partnerships

Awards & Recognition

• Družini prijazno podjetje (Family friendly company certificate)
• Top Employer in financial sector in Bosnia & Herzegovina
• Wellbeing Recognition
• Golden bam award for digitization of banking services
• UEPS awards
• Customer Friend Certificate
• Best Buy for fast loans
• Responsible Taxpayer in the Finance Sector
• Rezilijent well-being award