ESG financing and sustainability goals: The partnership between Frauenthal and RBI

Today, sustainability is more than a trend – it is an urgent necessity that is becoming increasingly important in the face of global challenges such as climate change and resource scarcity. Companies are realizing that sustainable business practices are not only required by law, but also represent a decisive competitive advantage.

Nicole Stolz, from Investment Finance Sales at Raiffeisen Bank International (RBI), talks in an interview with Erika Hochrieser, CFO of Frauenthal Holding AG*, about the increased promotion of sustainability under her leadership and how RBI is helping her company to achieve its climate targets.

Sustainability is a big issue in Europe, not only because it is required by law, but also because companies know that a transformation is necessary. In my opinion, however, it is not enough to tackle the issue in Europe alone, as this shifts a lot to Asia, where sustainability plays almost no role, as it does in America. If we really want to do something for the environment, then ALL of us really must – and globally! From a corporate perspective, I currently see sustainable business practices in Europe not just as a trend, but as a decisive competitive advantage. Those who tackle this earlier and more purposefully and find effective solutions will have better chances in the future.

Sustainability and responsible action are firmly anchored in our corporate strategy and we are resolutely pursuing our goals in this area. In 2023, the Frauenthal Group generated revenue of over EUR 1 billion with its two divisions and we have around 2,800 employees at locations in seven countries. Various investments are being made in both divisions to reduce the CO2 footprint, including the use of new trucks, conversion of heating systems and lighting, optimized production processes, awareness of business trips and intelligent route planning, use of renewable energies and expansion of PV systems.

We are also making our contribution to sustainability in many ways: by trading in renewable energy sources such as heat pumps and photovoltaics, we are playing a role in the switch to renewable energy sources. We are also promoting environmentally friendly deliveries and have successfully launched a pilot project in Vienna for deliveries of less than 3.5 tons using two electric vehicles.

Our stock market listing means we are highly transparent, and we have already published our seventh sustainability report (German only) for 2023. This intensive engagement with the topic has raised awareness throughout the entire group of companies enormously and is constantly bringing about improvements.

The topic is very close to my heart. I grew up in a rural area close to nature and want to create and preserve an environment worth living in for myself and future generations. When I think about it, our family lived more sustainably in this environment back then than we do today – with the exception of combustion engines, but that's a separate story. As a result of general prosperity, sustainability has become less and less important, people go on more long-distance trips - I'm not excluding myself here – live more lavishly and don't look at our resources enough. We should act in a more environmentally conscious way by using things more often or asking ourselves whether one thing or another is really necessary. I think the developments in renewable energy sources are great, especially solar energy. We rely on photovoltaic systems both in our Automotive locations and in our Retail division. I also recently purchased a photovoltaic system for my own home, and I'm really impressed with how well it works!

Investments in sustainability are massive investments for companies. This is why, for the first time in our history, we have used a financing instrument for sustainability in which environmental and social aspects as well as sustainable corporate governance also play a role. Specifically, we have concluded ESG financing for our Frauenthal Handel division for investments in energy efficiency and clean transportation.

We have already achieved many sustainability successes in the past and are now even more challenged to keep going.

RBI is a very trusted partner. I have been working with RBI since my first day at Frauenthal Holding AG – and that will be an incredible 20 years ago on July 1, 2024. RBI has also been a syndicate partner for over twelve years and has been the syndicate leader for our financing in the Frauenthal Handel division for four years. It is a bank that is always customer-oriented and promotes innovation. The relationship can therefore be described as sustainable in the best sense of the word. In the current ESG financing, RBI's expertise and flexibility, its responsiveness to our wishes, and its personal and appreciative support, which enabled us to reconcile Frauenthal's financing needs and sustainability goals, were decisive factors. In addition, the conditions were better than those of our competitors – for me as CFO, this is, of course, a prerequisite in addition to the first-class cooperation 😊.