Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Ecological Sustainability
• Social Sustainability
• Human Rights
• Diversity
• Compliance
• Corporate Governance

Environmental Achievements

• Reduction of overall power consumption by 744,640 kWh and CO2 emissions by 548 metric tons compared to 2009.
• Installation of a solar water heating system saving approximately 31,000 kilowatt hours and 17.7 metric tons of CO2 emissions per year.
• Reduction in paper consumption below the Austrian average for financial services providers.
• Significant reduction in the volume of non-recyclable waste per employee.

Social Achievements

• Launched the New Chance Account, aimed at combating discrimination and social exclusion, with over 7,700 customers by the end of 2010.
• Improved customer satisfaction.
• Implemented Workplace Health Promotion initiative.
• Launched the branch offensive, expanding access to banking services throughout Austria.
• Supported various social activities through sponsoring and donations (e.g., Caritas, Diakonie, RED NOSES).

Governance Achievements

• Established a detailed, Group-wide Anti-Corruption and Gift Acceptance Policy.
• Voluntarily submitted to the provisions of the Austrian Code of Corporate Governance.
• Improved corporate governance through organizational restructuring and new policies.
• High resolution rate for customer concerns (more than three-fourths resolved on the same or next business day).

Climate Goals & Targets

Environmental Challenges

• The consolidation of locations and branch offensive required many resources, hindering the further development of the environmental strategy.
• Difficulty in accurately calculating emissions due to varying base values used by energy suppliers.
• Inability to record all desired data (e.g., kilometers travelled by train for business purposes).

Mitigation Strategies

• Plans to achieve considerable progress and significant improvements in environmental efforts in the coming years.
• Will exclusively use data provided by ÖGUT starting in 2011 for emissions calculations.
• Aims to collect all relevant data for sustainability reporting in the medium term.

Supply Chain Management

Supplier Audits: Media screening before contract conclusion

Responsible Procurement

• Supplier Code of Conduct requiring compliance with applicable laws, respect for employee basic rights, environmental protection, and prohibition of child labor.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Energy savings and reduction generating earnings

Reporting Standards

Frameworks Used: GRI

Certifications: Eurosif Transparency Code (for BAWAG P.S.K. Öko Sozial Rent and BAWAG P.S.K. Öko Sozial Stock)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• BAWAG P.S.K. Öko Sozial Stock
• BAWAG P.S.K. Öko Sozial Rent
• Klimaschutz Garant Zertifikat
• New Chance Account

Awards & Recognition

• GOLDEN CAREER’S BEST RECRUITER (first place in banking sector)
• Several awards for BAWAG P.S.K. INVEST products

Environmental Metrics

ESG Focus Areas

• Responsible action
• Dialogue with stakeholders
• Customer orientation
• Staff development and training
• Environmental protection
• Civic engagement and personal commitment

Environmental Achievements

• Reduced power consumption by 7% (1.4 million kWh) compared to the previous year.
• Reduced energy consumed for space heating in branches by 13% (370,000 kWh) due to location optimization measures.
• Reduced greenhouse gas emissions by 24% compared to 2014.

Social Achievements

• Continued the "New Chance" account, serving approximately 34,000 customers.
• Continued investment in the development of the business model to ensure high-quality customer service.
• Expanded digital offerings with new products and online/mobile services.
• Implemented a Women’s Promotion Plan to promote equality between women and men.
• Organized a Women’s Mentoring Program.
• Maintained family-friendly company status.
• Completed 7,418 seminar days of employee training.

Governance Achievements

• Established a Non-Financial Risk Management & Regulatory Compliance division.
• Implemented a Group-wide management approach for non-financial risk and compliance.
• Maintained membership in Transparency International (Austrian Chapter).

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 4.0 (Core "In Accordance")

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• "New Chance" account
• Sustainable investment funds

Awards & Recognition

• Euromoney's "Austria’s Best Bank"
• The Banker's "Bank of the Year" in Austria
• "Digitale Helden Zukunftspreis 2016"
• Career’s Best Recruiter 2016/17

Environmental Metrics

ESG Focus Areas

• Responsible action
• Dialogue with stakeholders
• Customer orientation
• Staff development and training
• Environmental protection
• Civic engagement and personal commitment

Environmental Achievements

• Reduced account statement envelopes by more than 15%
• Used only office paper certified with the EU Ecolabel

Social Achievements

• Continued Women’s Promotion Plan to promote gender equality
• Offered occupational psychology services to employees
• Provided various employee benefits (travel allowances, pension fund contributions, anniversary bonuses, etc.)
• Launched the ES GEHT! initiative to support individual initiatives and community projects

Governance Achievements

• Established a Non-Financial Risk Management & Regulatory Compliance division
• Implemented a Group-wide compliance and non-financial risk management approach
• Revised and renegotiated the women’s promotion plan in 2017

Climate Goals & Targets

Environmental Challenges

• Fundamental changes due to acquisitions and growth in the DACH region made direct comparison of indicators with previous years difficult
• Risk of human rights violations indirectly in the area of financing and investments
• Risk of violating anti-corruption regulations

Mitigation Strategies

• Reliance on the Human Rights Matrix and internal guidelines to identify and prevent human rights risks
• Implemented a detailed anti-corruption guideline
• Provided regular anti-corruption training for all employees
• Established a Non-Financial Risk Management & Regulatory Compliance division to manage non-financial risks

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (Core), UN Global Compact, UN Global Compact Women’s Empowerment Principles (WEP)

Third-party Assurance: KPMG Advisory GmbH

Sustainable Products & Innovation

• Sustainable investment funds

Awards & Recognition

• Bank of the Year in Austria (The Banker)
• Digitale Helden Zukunftspreis 2016 (Digital Heroes Future Award 2016)
• Best Recruiter 2016/17

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced paper use by over 2.1 million A4 pages through digitalization.
• All BAWAG Group locations in Austria and Switzerland are supplied with green energy.

Social Achievements

• Donated over €104,000 to various initiatives and social projects.
• Launched a two-part self-learning module for employees on sustainability.
• Implemented a new recruiting platform providing greater access and visibility for applicants.

Governance Achievements

• Established a Non-Financial Risk & ESG Committee at the Managing Board level.
• Launched revised, mandatory anti-corruption self-learning program for employees.
• Improved MSCI ESG Rating from BB to BBB within one year.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business activities and employee work routines.
• Supply chain disruptions due to COVID-19 (minor delivery delays).

Mitigation Strategies

• Provided critical infrastructure and economic support during the pandemic (bridging loans, payment deferrals).
• Implemented safety measures in branches and promoted digital banking.
• Established cross-divisional COVID-19 taskforces to coordinate measures.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct (covering human rights, anti-corruption)

Climate-Related Risks & Opportunities

Opportunities

• Transition to a resource-efficient economy
• Increased demand for sustainable products and services

Reporting Standards

Frameworks Used: GRI Standards (application level “in accordance with: core” option)

Third-party Assurance: KPMG Austria GmbH

UN Sustainable Development Goals

• SDG 1
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 16

Various initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• Amundi ESG-focused funds
• Savity Green investment strategy
• easy green energy products
• easy laden e-mobility product

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Customer Responsibility
• Social Responsibility
• Employee Well-being

Environmental Achievements

• Reduced Scope 1 and 2 CO2 emissions by >50% by 2025 (target)
• 100% green electricity supply across all sites
• Removed single-use plastics from offices in Austria and Germany

Social Achievements

• Launched and continued various social inclusion accounts
• Donated over €250,000 to social projects and initiatives
• Increased corporate volunteering hours
• Implemented debt collection policy focused on sustainable solutions

Governance Achievements

• Established a dedicated ESG Committee at the Supervisory Board level
• Implemented a Group-wide tax strategy
• Published a Group-wide human rights policy
• Published a political involvement policy
• Improved ESG ratings in 2022

Climate Goals & Targets

Environmental Challenges

• Data availability and quality for calculating financed emissions
• Attracting and retaining the right mix of employees
• Maintaining low exposure to high-emitting GHG sectors

Mitigation Strategies

• Started collecting ESG data from customers to disclose financed emissions in 2023
• Implemented initiatives to promote women in management positions (Women's Advancement Plan, Women's Mentoring Program)
• Implemented lending criteria for selective industries with high ESG risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Preference for more sustainable companies with same price/performance ratio

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events decreasing collateral value
• Flood risk in mortgage business
• Sea level rise risk in the Netherlands

Transition Risks

• High depreciation on carbon-intensive assets
• Changes in consumer behavior
• Uncertainty about future technologies/laws

Opportunities

• Green financing
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: KPMG Austria GmbH

UN Sustainable Development Goals

• 1, 4, 5, 7, 8, 9, 12, 13, 16

Initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

• Social inclusion accounts
• Green financing products
• Paperless account opening

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic success
• Ethics and integrity
• Responsibility towards customers
• Sustainability in core business
• Social responsibility and personal commitment
• Employee promotion and development, diversity and equal opportunities
• Environmental and climate protection

Environmental Achievements

• Reduced own Scope 1 and Scope 2 CO2 emissions by >50% vs. 2020 (target for 2025)
• 100% green electricity supply for all sites
• Full transition of car fleet to electric cars (target for 2025)
• Significant reduction in paper use through digitization

Social Achievements

• Launched and continued various financial education programs for diverse demographics
• Increased corporate volunteering hours among employees
• Continued support to underprivileged communities through donations and volunteer work
• Implemented a debt collection policy focused on sustainable financial assistance solutions

Governance Achievements

• Established a dedicated ESG Committee at the Supervisory Board level
• Expanded internal organizational structure to manage and monitor ESG progress
• Implemented a revised, mandatory anti-corruption self-learning program for employees
• Integrated ESG risks into ESG strategy and business model

Climate Goals & Targets

Environmental Challenges

• Data availability for comprehensive climate-related risk assessment
• Low coverage and relatively high share of low EPC labels in real estate portfolios
• Attracting and retaining the right mix of employees
• Addressing the gender pay gap

Mitigation Strategies

• Continuous enhancement of data infrastructure to improve quantification methods
• Initiatives to increase EPC coverage in Austrian portfolio
• Women’s Advancement Plan, Women’s Mentoring Program, flexible working time models
• Offering women-specific trainings, workshops, and mentoring

Supply Chain Management

Supplier Audits: 80% of spending went to local suppliers in 2023

Responsible Procurement

• Supplier Code of Conduct; preference for more sustainable companies with same price/performance ratio

Climate-Related Risks & Opportunities

Physical Risks

• Water stress, river flood, heatwave, coldwave, tropical cyclone/hurricane, wildfire, coastal flood/sea level rise

Transition Risks

• Policy and legal risks, technological developments, market changes

Opportunities

• Growth opportunities associated with resource-efficient economy and environmental protection

Reporting Standards

Frameworks Used: GRI Standards

Certifications:

Third-party Assurance: KPMG Austria GmbH

UN Sustainable Development Goals

• 1, 4, 5, 7, 8, 9, 12, 13, 16

Initiatives contribute to these goals through various programs and policies.

Sustainable Products & Innovation

• Green lending products, digital products and services

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Decarbonization
• Green Lending
• Workforce Diversity
• Board Diversity

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Data limitations on ESG metrics, particularly from customers.
• Availability of ESG data from customers broadly impacts the banking industry.

Mitigation Strategies

• Constantly improving data collection capabilities and infrastructure.
• Implementing automated creation of energy certificates.
• Including mandatory provision of energy performance certificates in contracts (beginning 2024).

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed