Celebrating Five Years of Driving Sustainability: RBI's Journey in Sustainable Finance
Five years ago, the Sustainable Finance department was established at RBI. Since then, it has evolved into a central component of the bank, advancing our sustainability goals, and offering innovative solutions to clients in Austria and the CEE region.
Establishment and Development
The predecessor of the Sustainable Finance department was founded in 2008 to support Austrian Raiffeisen banks in their public sector operations and reduce funding costs in this crucial area. Over time, the offering expanded to include Cover Pool Management for mortgage loans and Raiffeisen Building Society ("Raiffeisen Bausparkasse"). Today, the department manages over €7 billion in cover pool assets.
In 2018, in collaboration with Head Office Treasury, the department developed the first Green Bond, positioning RBI Group as a leading Sustainability Bond issuer in Austria and CEE, with €5.7 billion in Sustainability Bonds groupwide. "Our journey began with a focus on reducing funding costs, but it quickly expanded to encompass a broader range of sustainable finance solutions," explains Markus Ecker, Head of Sustainable Finance. Further Sustainable Finance products, a Sustainable Finance Advisory team, and an ESG Competence Center were established to support all business lines.
Product Range and Changes
The product portfolio of Sustainable Finance includes a wide range of solutions that meet the environmental and social impact ambitions of our customers. This includes Green and Social Bonds, green and social use of proceeds loans as well as ESG-linked loans. “Over the past five years, products and requirements have significantly evolved. Initially, the focus was on simple use-of-proceeds loans, such as green loans for certified energy-efficient buildings or social loans for financing public schools in order to build up our green and social bond portfolios. Later, the evolution of our products reflected the growing importance of genuine sustainability,” says Vera Economou, ESG Group Competence Center Topic Lead. “We rigorously check transactions to mitigate ESG risks and ensure positive impact," says Shiwa Zarifi, Topic Lead for Sustainable Finance Structuring Corporate, and Benjamin Wohnhaas, Topic Lead Sustainable Finance Origination Corporate, adds that since 2021, there has been a strong trend towards KPI-linked loans, where borrowers commit to specific ESG KPIs to enhance their overall sustainability footprint.
Role in RBI’s Funding
Sustainable Finance is responsible for the sustainable funding program in Austria and CEE at RBI, managing over €7 billion in cover pool assets and having developed €5.7 billion in Sustainability Bonds groupwide. This involves writing sustainable bond frameworks based on the best market standards and obtaining second-party opinions. These efforts help attract funds from international investors and direct capital flows to sustainable projects. "Our sustainable funding programs are crucial in driving capital towards impactful projects, aligning with our commitment to sustainability," states Katsiaryna Souvandjiev, Topic Lead ESG Funding & Innovation.
Future Requirements
The future focus is on RBI’s Climate Transition Plan, which includes a group-wide greenhouse gas reduction target of 26.56% by 2030 compared to 2019 levels. This commitment is supported by a comprehensive execution plan across various areas, including business, risk, and finance. "We are dedicated to a 1.5-degree pathway and ensuring our business model remains relevant in a net-zero carbon economy," says Markus Ecker.
Conclusion
The past five years have demonstrated that Sustainable Finance at RBI is not just a trend but an integral part of RBI’s business strategy. With a clear focus on ESG goals and the continuous development of innovative products and solutions, the department is well-equipped to support the sustainability objectives of RBI and its customers in the future. We invite you to partner with us on this journey towards a more sustainable future. Find more information on our website about sustainable finance solutions: