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For Our Investors

IBB combines responsible financial practices with sustainable investing to create long-term value. On this page you can learn more about our approach to investing liquid assets and issuing social bonds. ESG principles - Environmental, Social and Governance - guide our investment decisions and ensure the transparency and sustainability of our financial strategies.

Social Bond

Investitionsbank Berlin (IBB) serves as an extension of the State of Berlin, tasked with implementing key measures to support the State’s strong commitment to sustainability. As a development bank, IBB’s core mission is to contribute to Berlin’s sustainable development through its financing activities. The issuance of social bonds fits well with IBB's identity and mission, helping the bank to reduce inequalities and improve living conditions, particularly in Berlin.

In 2024, IBB established its Social Bond Framework in accordance with the ICMA Social Bond Principles (SBP), which were updated in June 2023. Based on this framework, IBB can issue social bonds to (re)finance eligible loans with social benefits in the following categories:

  • Affordable Housing
  • Accessible Basic Infrastructure
  • Access to Essential Services
  • SME Financing and Job Creation

Through these bonds, IBB addresses the following United Nations Sustainable Development Goals (SDGs):

  • 1 - No Poverty
  • 3 - Good Health and Well-being
  • 4 - Quality Education
  • 8 - Decent Work and Economic Growth
  • 9 - Industry, Innovation, and Infrastructure
  • 11 - Sustainable Cities and Communities

The Second Party Opinion (SPO) issued by ISS Corporate confirms that the IBB’s Social Bond Framework complies with the ICMA SBP and aligns with the IBB’s sustainability strategy.

The IBB Treasury intends to be a regular issuer of Social Bonds in the market.

Sustainable Investment of Liquid Funds

The IBB Treasury takes a comprehensive approach to sustainability in order to promote sustainable capital markets as an investor, trading partner and issuer. This approach is based on four elements inspired by ESG investment styles: Norms-Based Screening, Best in Class, Active Ownership through Engagement, Thematic Investment. Transparent communication with stakeholders and ESG rating agencies complements this approach.

  1. Compliance with exclusion criteria (Norms-Based Screening)
    IBB has implemented a review process to ensure compliance with exclusion criteria, as outlined in its Treasury Sustainability Guidelines. This process applies to relevant issuers in the corporate portfolio. Additionally, public-sector partners are assessed to meet further norms-based criteria.
  2. Sustainability in liquidity portfolios (Best in Class)
    The overall portfolio is managed with targets for an average ISS ESG Performance Score.
  3. Engagement Calls (Active Ownership)
    Engagement calls are conducted with all partners that fall below IBB's minimum ISS ESG Performance Score. This includes partners with credit lines as well as trading partners supporting interest rate hedging and IBB's own issues.
  4. Dedicated ESG Investments (Thematic Investment)
    IBB welcomes the increasing integration of environmentally and socially sustainable practices in the capital markets. To support this trend, IBB actively invests in green, social and sustainable bonds. The bank has set an ambitious investment target of EUR 1 billion for dedicated ESG bonds that meet relevant standards. Detailed information on the dedicated ESG portfolio and other important aspects can be found in the IBB Treasury Sustainability Report and other documents available in the Download Centre.