Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics and integrity
• Compliant conduct and anti-corruption
• Information security and data protection
• Management of ESG topics
• Social and environmental impact of financing and investments
• Diversity and equal opportunities
• Work/life balance
• Remuneration policy
• Occupational health and safety
• Emissions

Environmental Achievements

• Reduced CO2 emissions by 7.8% year-on-year to 9,452 t in 2018. Electricity consumption decreased by 9.3% and heating energy consumption decreased by 10%.

Social Achievements

• Increased percentage of women in the workforce to 49.6% (from 49.4% in 2017). Implemented various work/life balance initiatives, including part-time telecommuting, resulting in increased usage by both male and female employees.
• Offered various diversity programs focusing on work/life balance, women and men's equality, and teamwork/networking.

Governance Achievements

• Published a new Code of Conduct for the NORD/LB Group in 2017, setting out the framework for moral, value-oriented and fair behaviour.
• Established a whistleblower system with an external ombudsman to combat criminal and illegal acts.
• Implemented a compliance management system based on IDW PS 980.

Climate Goals & Targets

Environmental Challenges

• Lack of skilled employees, especially in IT.
• Income and cost pressure.
• Reducing payroll by up to 1,250 positions as part of the One Bank Transformation Programme.
• Decreased number of applicants to the apprenticeship program.
• Slight year-on-year increase in illness rate to 5.8% (from 5.3% in 2017).

Mitigation Strategies

• Enhanced training offerings for junior staff.
• Implemented the One Bank Transformation Programme to improve efficiency and profitability.
• Used social media and other targeted recruiting measures to attract potential candidates.
• Improved the quality of training and increased junior staff’s ability to adapt to change.
• Implemented proactive and preventive support tools through a professional corporate health management system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Inviting local and regional suppliers to tender for contracts.
• Adding sustainability-oriented office items to the electronic catalogue.
• Compliance with corporate and sustainability principles, including environmental protection, human rights, and labour practices.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, core option 1, UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green products

Awards & Recognition

• Focus Top National Employer (2018)

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Training and education
• CO2 emissions
• Ethics and integrity
• Compliant conduct and anti-corruption
• Information security and data protection
• Management of ESG topics and social and environmental impact of the financing business
• Work/life balance
• Remuneration policy
• Diversity and equal opportunity

Environmental Achievements

• Reduced CO2 emissions by 4.3% year-on-year to 5,692 t.
• Reduced energy consumption by around 10% to 14,853,837 kWh in 2021.
• Reduced heating energy consumption by around 2.9% to 20,655,237 kWh in 2021.
• Reduced paper consumption by 18%.

Social Achievements

• Reduced staff turnover due to resignation (employee resignations) compared to the previous year.
• Continued implementation of the #zukunftschaffen activation program to develop future-oriented competencies and renew corporate culture.
• Established and further developed flexible working models and workplace concepts.
• Implemented special measures to maintain employee health during the coronavirus pandemic.
• Launched Instagram channel “NORD/LB Karrierestart” to attract junior staff.

Governance Achievements

• Established a compliance management system based on the IDW PS 980 standard.
• Implemented a whistleblowing system with an external ombudsman.
• Concluded a new inclusion agreement between employer and employee representatives and the representative body for severely disabled employees.
• Integrated ESG components into target agreements of the Managing Board and leading employees.

Climate Goals & Targets

Environmental Challenges

• Demographic change and a lack of skilled employees.
• Climate change and the need to reduce CO2 emissions.
• Increasing financial crime and the risk of being misused for money laundering and terrorist financing.
• The need to manage climate and environmental risks.
• The need to integrate sustainability into all areas of the business.

Mitigation Strategies

• Implemented a company environmental management system based on ISO 14001 and DIN 50001.
• Developed and implemented a compliance management system.
• Established a whistleblowing system and an ombudsman.
• Developed ESG guidelines and a Sustainable Loan Framework.
• Implemented various basic qualification measures on ESG for employees.
• Developed a set of ESG Key Performance Indicators.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Inclusion of local and regional providers.
• Sustainability clause in standard and framework agreements.
• Integrity checks for service providers and suppliers exceeding defined annual order volumes.
• Sustainability-oriented office supplies in electronic catalogues.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Gradual climate change
• Environmental degradation
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Financing renewable energy projects
• Supporting customers in the transition to a low-carbon economy

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, DIN 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 13

Core business areas (real estate, agriculture, renewable energies) contribute to SDG 7 (Affordable and clean energy) and SDG 13 (Climate action).

Sustainable Products & Innovation

• Green loans
• Social loans
• Sustainability-linked loans
• SIP funds
• Löwen+ funds

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Climate Change
• Environmental Risk Management
• Social Responsibility
• Human Rights
• Employee Well-being
• Diversity & Inclusion
• Ethical Conduct
• Anti-Corruption
• Information Security
• Data Protection

Environmental Achievements

• Reduced CO2e emissions by 3.3% year-on-year to 5,503 t. Reduced paper consumption by 74.0%
• Implemented measures to reduce energy consumption in line with German Federal Government's Ordinance on Securing Energy Supply.

Social Achievements

• Launched "Mission WelCome Back" initiative to balance in-office and remote work.
• Achieved second place in Handelsblatt Mindshift Award for innovative methods in the new working world.
• Reduced employee resignations by almost 20% since 2020.
• Launched "Valuable Parental Leave" initiative.
• Provided various information and assistance on mental health on the intranet.

Governance Achievements

• Developed new ESG governance structures in 2022.
• Incorporated ESG goals into target agreements of the Managing Board and senior employees.
• Established four centers of expertise for ESG: Management, Risk, EU Taxonomy & Disclosure, and CO2 Accounting.
• Updated Code of Conduct in August 2022.
• Developed an overarching ESG framework in 2022.

Climate Goals & Targets

Environmental Challenges

• Intensified competition in the labor market.
• Demographic change and digitalization.
• Data availability and quality for ESG reporting.
• Setting targets for a climate-neutral portfolio.
• Customer and stakeholder engagement on ESG issues.
• Implementing the German Supply Chain Due Diligence Act.

Mitigation Strategies

• Launched Project CARE to integrate ESG into the organization and meet regulatory requirements.
• Developed ESG key performance indicators (KPIs) and key risk indicators (KRIs).
• Developed a climate strategy (aligned with TCFD recommendations) and a Sustainable Loan Framework.
• Implemented various basic qualification measures for employees on ESG.
• Intensified dialogue with ESG rating agencies and stakeholders.
• Established a whistleblowing system and an external ombudsman.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Inclusion of local and regional providers.
• Sustainability clause in standard and framework agreements.
• Compliance with environmental, human rights, and labor criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Gradual climate change
• Environmental degradation

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Financing of green projects and low-carbon technologies.

Reporting Standards

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

Certifications: ISO 14001, DIN 50001:2018

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance for sections 2.1, 2.2, 2.3, and 5.1 of the PRB report)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 11 (Sustainable cities and communities)
• SDG 13 (Climate action)

Investments in renewable energy projects contribute to these goals.

Sustainable Products & Innovation

• Green bonds
• Sustainable investment funds (SIP and Löwen+)

Awards & Recognition

• Second place in Handelsblatt Mindshift Award (Corporate Culture)

Environmental Metrics

ESG Focus Areas

• Climate and energy
• Diversity and equal opportunities
• Corporate responsibility and governance
• Corruption, financial crime and anti-competitive behaviour
• Digital responsibility and data security
• Economic impact

Environmental Achievements

• Reduced CO2 emissions by 25% compared to the previous year to 4,127 tonnes (market-based method).
• Increased use of renewable energy in electricity consumption.

Social Achievements

• Launched LGBTQI+ network BUNT/LB, which received the Rising Star Award from the PROUT AT WORK Foundation.
• Extended the declaration of principles on respect for human rights to include suppliers.
• Published a policy statement on the German Supply Chain Due Diligence Act (LkSG).

Governance Achievements

• Finalized and adopted the ESG framework and a holistic ESG strategy.
• Introduced mandatory basic sustainability training for all employees.
• Established three centers of expertise: E1 ESG Management, E2 ESG Risk Centre, and E3 EU Taxonomy and Disclosure.

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions in financing.
• Supply chain disruptions (implied, not explicitly stated).

Mitigation Strategies

• Developed and implemented measures to reduce Scope 1 and Scope 2 emissions (e.g., increasing office space density).
• Developed decarbonization strategies for emission-intensive sectors.
• Developed an ESG score for wholesale and retail business to assess ESG risk in credit decisions.
• Developed a classification tool for sustainable loans (Sustainable Loan Framework).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with ecological criteria, human rights criteria, and labour practices.
• Sustainability clause in standard and framework agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Gradual climate change
• Environmental degradation
• Natural disasters

Transition Risks

• Political measures to protect climate and environment
• Technological progress
• Changes in market sentiment

Opportunities

• Financing green projects
• Supporting customers in transition to climate-neutral economy

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 14001, DIN 50001:2018

Third-party Assurance: PricewaterhouseCoopers GmbH (limited assurance for PRB sections 2.1, 2.2, 2.3, and 5.1)

UN Sustainable Development Goals

• SDG 7
• SDG 11
• SDG 13

Financing renewable energy, commercial real estate, and other sustainable projects.

Sustainable Products & Innovation

• Green bonds
• Sustainable loans

Awards & Recognition

• Rising Star Award (BUNT/LB)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced own CO2 emissions (scope 1-3) by 3.3 percent to 5,503 tonnes in 2023

Social Achievements

• Established a Code of Conduct to ensure ethical behavior and combat corruption.
• Implemented diversity management initiatives aligned with international standards and legal requirements.
• Maintained company health management (BGM) programs for employee well-being.
• Supported social commitment through financial donations and employee volunteer work.

Governance Achievements

• Established an ESG governance model with seven dimensions for anchoring ESG within the bank organization.
• Created three centers of expertise: ESG Management, ESG Risk Center (incl. CO2 Accounting), and EU Taxonomy & Disclosure.
• Developed the ESG Academy with mandatory training for all employees.

Climate Goals & Targets

Environmental Challenges

• Physical risks in the agricultural sector due to climate change (e.g., droughts).
• Transition risks related to sectors like agriculture, non-renewable energies, real estate, aviation, food, and automotive.

Mitigation Strategies

• Developed extended risk management and risk control.
• Integrated an ESG score into credit decisions.
• Conducted sector analyses and derived corresponding sector strategies.
• Advised clients on the transition.
• Diversified loan portfolio (including geographical diversification).
• Integrated transition risks into lending decisions.
• Developed sector strategies and defined thresholds.
• Implemented limit management at the portfolio level.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Heat, temperature changes, forest fires, rise in sea level, storms & hurricanes, varying precipitation, heavy rain & flooding, droughts, loss of biodiversity

Transition Risks

• Politics & law, technology, market, reputation

Reporting Standards

Frameworks Used: TCFD