Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Governance
• Social responsibility

Environmental Achievements

• Switched copier paper sourcing to recycled paper in 2021
• Main office building received platinum LEED certification
• Over 90% of electricity needs in office buildings met with renewable sources
• Offsetting unavoidable emissions to render banking operations climate neutral from financial year 2021

Social Achievements

• Launched a new employer brand campaign in 2021
• Offered employees and their families vaccination appointments
• Launched pilot phase of social volunteering programme in 2021 aiming for 1000 employee volunteering days by 2025
• Increased training/continuing professional development days to two per employee per year overall by 2025
• Aimed to ensure that more than 30% of all management positions are occupied by women and that the proportion of women in Helaba’s young talent and professional development programmes is increased to 50%

Governance Achievements

• Signed the Diversity Charter and the UN Global Compact
• Adopted a Code of Conduct
• Regular training sessions on Code of Conduct (mandatory every three years)
• Helaba and its subsidiaries were among the original signatories of the DSGV’s “Commitment by German Savings Banks to climate-friendly and sustainable business practices”
• Helaba Invest signed up to the UN Principles for Responsible Investment (PRI)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• War in Ukraine
• Supply chain disruptions
• High inflation
• Low interest rates
• Increasing geopolitical tensions
• ESG compliance in real estate portfolios
• Implementation of the German Act on Corporate Due Diligence in Supply Chains (LkSG)

Mitigation Strategies

• Adapted operations to new requirements of COVID-19 pandemic
• Provided testing and vaccination services for employees
• Implemented measures to reduce risk in portfolios affected by the pandemic
• Adjusted credit risk strategy
• Closely monitoring changes in relevant parameters
• Implemented precautionary and risk-mitigating measures in response to the Russian Federation’s attack on Ukraine
• Signed up to the “ECORE – ESG Circle of Real Estate” initiative
• Preparing for the implementation of the German Act on Corporate Due Diligence in Supply Chains (LkSG) as part of the HelabaSustained project

Supply Chain Management

Responsible Procurement

• Code of conduct for suppliers, including mandatory documentation of human rights observance

Climate-Related Risks & Opportunities

Opportunities

• Sustainable finance
• Renewable energy projects
• Energy efficiency projects
• ESG-linked loans/green loans

Reporting Standards

Frameworks Used: GRI, German Sustainability Code (DNK), UN Global Compact, UN Principles for Responsible Investment (PRI), EU Taxonomy Regulation

Certifications: LEED Platinum (Main office building)

Third-party Assurance: Independent auditor (limited assurance)

Sustainable Products & Innovation

• ESG-linked loans
• Green loans
• Sustainable promissory notes
• Green bonds

Awards & Recognition

• Multiple awards for 1822direkt (digital sales platform)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Business Performance

Environmental Achievements

• 100% electricity from renewable energy sources in Helaba's own real estate
• Reduced CO2 emissions from banking operations by approximately 800 tonnes compared to 2021

Social Achievements

• Launched ESG Integration sustainability project at Frankfurter Sparkasse involving over 30 employees
• Increased proportion of women in the workforce to 47%
• Implemented social volunteering program, aiming for 1000 days/year by 2025

Governance Achievements

• Became a signatory of the UN Principles for Responsible Banking in 2022
• Implemented a Sustainable Lending Framework, externally reviewed by ISS ESG
• Developed a Green Bond Framework, compliant with ICMA Green Bond Principles

Climate Goals & Targets

Environmental Challenges

• Climate change risks impacting borrowers' creditworthiness
• Transition risks from regulatory changes and market shifts
• Data limitations in calculating financed emissions

Mitigation Strategies

• Systematic ESG risk assessment in lending and investment decisions
• Development of decarbonization strategies for loan portfolio
• Implementation of Sustainable Lending and Investment Frameworks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for suppliers with environmental management systems and renewable energy use
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting borrowers

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Financing of renewable energy projects

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7, SDG 11, SDG 13, SDG 16

Helaba's activities in renewable energy, sustainable cities, climate action, and responsible governance contribute to these goals

Sustainable Products & Innovation

• ESG-linked loans, green bonds, sustainable promissory notes

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Governance
• Social responsibility
• Human rights

Environmental Achievements

• 30% reduction of own CO₂ emissions (t CO₂e) compared with the reference value for 2016 to 2019 (target)
• 51.5% share of sustainable business volume in the portfolio (actual)
• Published the Sustainable Lending Framework to define, measure and manage the sustainable lending business.

Social Achievements

• Increased proportion of women in management positions by 4.3% compared to 2020.
• 2.85 training/development days per employee per year (including 0.81 days mandatory training)
• 609 social volunteering days

Governance Achievements

• Consistently in C Prime top 10% in the peer group of 271 banks (ISS ESG rating)
• Improvement from 21.6 (medium risk) to 19.1 (low risk) – top 16% in the peer group of 362 banks (Sustainalytics rating)
• Established a Sustainability Board in 2023.

Climate Goals & Targets

Environmental Challenges

• Higher interest rates weakened the global economy and created turmoil on the real estate markets.
• Geopolitical tension in the Middle East and the conflict in Ukraine created challenges.
• Shortage of qualified labor, locally inadequate infrastructure and high energy prices in Germany.
• Declining real estate prices.

Mitigation Strategies

• Taking action to reduce risk in both new and existing business in the real estate sector.
• Close monitoring of developments at both the individual borrower and portfolio levels.
• Established mandatory Group-wide sustainability criteria incorporated into risk strategies.
• Developed specific lending criteria for critical sectors to rule out controversial business practices.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate-related and environment-related events

Transition Risks

• Transition risks in the context of default risk and real estate risk.

Opportunities

• Growth opportunities in sustainable finance.
• Supporting customers' transition to sustainable business models.

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Independent auditor (limited assurance)

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 9
• SDG 13
• SDG 4
• SDG 5

Helaba Invest uses the UN SDGs as guidance in achieving goals in its three defined areas for action: good governance, sustainable products and services, and being an attractive employer.

Sustainable Products & Innovation

• ESG-linked loans
• Green loans
• Sustainable promissory notes
• Infrastructure funds of funds