Corporate Governance of the IBB Group

The legal foundation of IBB UV is the Act on the Reorganization of the Legal Relationships of Investitionsbank Berlin dated June 7, 2021. This law establishes the operational principles and defines the responsibilities of IBB UV and IBB while adhering to the Second Agreement between the Federal Republic of Germany and the European Union. This agreement specifies the limited scope of activities for development banks benefiting from institutional backing, guarantor liability, and refinancing guarantees.

The IBB’s statutory mission as the development and structural bank for the State of Berlin includes supporting public initiatives through targeted funding programs. The sustainable development of the city is a declared goal of Berlin politics, and sustainability is therefore an implicit part of IBB's business model.

The bank's promotional business particularly reflects its commitment to improving economic, social, and ecological living conditions in the capital. Through its economic development offerings, IBB contributes to creating and securing jobs in Berlin. In the area of real estate and urban development, it enables the construction of affordable housing in Berlin through funding programs and, in light of the aging population, provides financial support to create age-appropriate and barrier-free apartments.

IBB also supports the state in achieving its climate policy goals for CO₂ reduction. In many areas, revolving funds are used, which benefit their respective funding purposes in the long term.

With its labor market promotion business area, IBB primarily focuses on supporting people and investing in equal professional opportunities. This segment includes numerous funding programs from the State of Berlin, which are co-financed with funds from the European Social Fund Plus (ESF+). This contributes to meeting the existing demand for skilled workers and strengthens people's participation in society through education and social inclusion. To implement these goals, the State of Berlin has provided a total of 16 funding instruments, some of which address multiple priorities.

From a legal perspective, the IBB Group constitutes a corporate group with IBB UV as the parent company. Key strategic subsidiaries for fulfilling the State of Berlin’s development mandate include Investitionsbank Berlin, IBB Business Team GmbH, IBB Beteiligungsgesellschaft mbH, and IBB Capital GmbH. As of 2023, the group consists of IBB UV and ten fully consolidated subsidiaries.

The public mandate of IBB UV encompasses managing its subsidiaries, overseeing IBB operations, and establishing or acquiring stakes in companies tasked with fulfilling IBB’s statutory responsibilities under Section 4 of the IBB Act. Additionally, it provides administrative services, such as management, personnel, and auditing, to its subsidiaries but does not engage in banking activities itself.

The overarching corporate goal of the IBB Group is defined by its statutory development mandate. IBB UV focuses on the following objectives:

• Adequately fulfilling its public mission.
• Managing investments efficiently and economically.
• Actively shaping the group’s transformation into an “Impact group” by expanding sustainability initiatives.

IBB UV has developed corresponding measures to achieve these goals. Its comprehensive business strategy also encompasses the banking-related development activities of its subsidiaries, such as IBB Beteiligungsgesellschaft mbH, IBB Business Team GmbH, and IBB Capital GmbH.

The brand name IBB Ventures is used for IBB Beteiligungsgesellschaft mbH, including its subsidiaries, in subsequent chapters.

Comprises the chairperson and two additional members. The executive board operates independently within the framework of applicable laws, the corporate charter, and guidelines established by the Supervisory Board.

The Supervisory Board of IBB UV consists of nine members, equally divided among representatives of the State of Berlin, members of the Works Council, and independent experts. The IBB Group engages in dialogue with the Supervisory Board on strategic issues and actively involves its members in the strategy process. As such, an annual extraordinary meeting focusing on strategy and the materiality analysis in accordance with the Corporate Sustainability Reporting Directive (CSRD) is standard practice with the Supervisory Board.

For IBB-specific topics, the Advisory Board supports the Executive Board and the Supervisory Board in general matters and advises the bank on its interests. Key topics in 2023 were the joint innovation strategy of the states of Berlin and Brandenburg (INNOBB 2025), which aims to establish the capital region as Europe's leading location for innovation and science, and in this context, the development of the EUREF Campus. Another focus of the Advisory Board's work was the discussion of ESG, impact, and sustainability in connection with implications for investments in start-ups, as well as IBB's labor market promotion business area and its impact on professional equal opportunities, securing skilled workers, education, and social inclusion. The Board's resolutions are of a recommendatory nature. Advisory Board meetings are held twice a year and focus on a core topic. The IBB Advisory Board typically has 20 members appointed by the Supervisory Board and represents additional stakeholder groups.

The Supervisory Board of IBB UV has adopted a suitability policy that establishes principles for the IBB Group regarding the selection, (re)appointment, suitability assessment, and succession planning of members of the respective management bodies (i.e., management or executive board) and supervisory bodies. Additionally, the policy regulates the procedures for selecting and assessing the suitability of key function holders within the IBB Group. Assessment criteria include knowledge, skills, and experience, as well as requirements and objectives for time availability, reliability (including handling conflicts of interest and impartiality), diversity, and performance. Group companies are required to specify this group policy through individual guidelines: accordingly, IBB UV, IBB, IBT, IBV and IBC have already issued individual guidelines.

Furthermore, the Supervisory Board of IBB UV has adopted a policy for handling conflicts of interest within the IBB Group. As the group's parent company, IBB UV is responsible for ensuring that the group has policies for dealing with conflicts of interest in all subsidiaries within the regulatory consolidation scope.

The introduction of the conflict of interest policy for the IBB Group establishes principles for defining, approving, and monitoring the implementation and maintenance of effective policies to identify, assess, manage, and mitigate actual and potential conflicts between the interests of the companies and those of employees, including members of the management and supervisory bodies, which may adversely affect the performance of their duties and responsibilities. Group companies are required to specify this group policy through individual guidelines: accordingly, IBB UV, IBB, IBT, IBV and IBC have already issued individual guidelines.