Our Contribution to the SDGs

The IBB Group is committed to the 17 global Sustainable Development Goals (SDGs) adopted by the United Nations in 2015. We integrate these goals transparently and measurably across all areas of our activities. By aligning our financing activities with the SDGs, we demonstrate how our funding contributes sustainably to the development of our environment.

In addition to SDG mapping, we have developed impact indicators based on our programs and their alignment with the SDGs. Between 2020 and 2030, the IBB Group aims to provide EUR 20 billion in sustainable funding aligned with the SDGs.

Methodology

In 2023, the IBB Group mapped its funding programs to the UN Sustainable Development Goals (SDGs). Recognizing that many programs contribute to several main and sub-targets of the SDGs, the Group, in collaboration with its specialist departments, identified one significant sub-target for each program, which was then assigned to the corresponding main goal. To ensure clarity, multiple allocations or double counting of a single program were avoided.

We recognize that our funding activities may have unintended negative impacts on certain SDGs. While this aspect is not comprehensively covered here, we actively address potential conflicts and strive to minimize adverse effects as much as possible.

Our goal is to highlight positive contributions to the SDGs while remaining transparent about the challenges arising from the complex interactions between economic growth, social development, and environmental goals. We focus on early identification of goal conflicts and work to find solutions that promote sustainable outcomes.

To enhance our understanding of SDG-related impacts, applications received after October 1, 2022, are individually classified at the application level, leading to more accurate and meaningful SDG mapping. From 2020 to 2030, the IBB Group will make a total of EUR 20 billion in sustainable financing based on the SDGs possible. In total, we have thus achieved a total SDG volume of EUR 15,160.2 million with corona support and a total volume of EUR 8,166.4 million without corona support from 2020 to 2023.

Financing and Impact Drivers

The year 2024 was marked by a continued series of crises and uncertainties, as well as a persistent economic stagnation in Germany; most recently, GDP declined by 0.2% in 2024. As a result, the broader economic environment provided little stimulus for Berlin's economy, noticeably slowing the capital’s economic development. Nevertheless, Berlin's economy continued to grow at an above-average rate and once again outpaced the national trend with a GDP increase of 0.8%. However, the gap between Berlin and the national average narrowed to just one percentage point—slightly below the long-term average of 1.8 percentage points. In addition to traditional core funding areas, COVID-19 relief programs were continued, and startups received financing.

In 2024, the IBB Group approved fincancing commitments for grants, loans, project financing, equity investments, and guarantees totaling €3.8 billion—a new record high. The divisions for Real Estate and Urban Development (€1.7 billion), Business Development (€2.0 billion, including €0.5 billion in traditional funding), and Labor Market Support (€35 million) together accounted for approximately €3.7 billion in new business. IBB Business Team, IBB Ventures, and IBB Capital approved an additional €51.9 million.

Together with €3.2 billion in additional funds from private and institutional partners, a total investment volume of €7 billion was enabled, supporting or securing 7,827 jobs in Berlin.

A key focus in 2024 was the IBB Group’s support the repurchase of the Berlin district heating system, backed by a loan volume of €1.5 billion—the largest single transaction in the institution’s history, and a major contribution to energy security and climate neutrality. Through the “IBB New Housing Construction Fund,” funding was approved for 5,188 new subsidized housing, with a total volume of more than €1.3 billion—surpassing the 5,000-unit mark for the first time.

Excluding non-investment-related expenses, 2.5 billion euros of funding supported investments in Berlin for new machinery and operating equipment, the construction and expansion or renovation of apartments or commercial real estate, and the rescue of companies and self-employed Berliners in difficulty due to the corona virus.

According to calculations by IBB economists, a total of around 9% of the private sector investments in Berlin in 2024 were attributable to projects supported and co-financed by the IBB Group and its partners. According to the supported companies, these investments are associated with the creation and preservation of a total of 7,827 jobs, of which 2,012 are newly created.

In addition to the primary effect of the investments in the companies supported by the IBB Group, the IBB economists also consider secondary sales and employment effects in upstream and downstream value-added sectors of the Berlin economy. This means that other Berlin companies benefit indirectly from the funding, for example by being able to provide additional construction work and services or preliminary products. These stimuli in turn have an impact on economic indicators such as growth, employment and public sector revenue throughout Berlin - and this will continue beyond the 2024 funding period.

According to a model calculation by IBB economists, the EUR 2.5 billion in financing initiated by the IBB Group and other stakeholders in Berlin will lead to an increase in Berlin's gross domestic product of EUR 3.2 billion in the period from 2024 to 2026. EUR 2.6 billion of this has already been spent in the 2024 funding period.

In addition, a further 1,600 jobs have been secured, at least temporarily, in various sectors of the Berlin economy outside the subsidised companies. Together with the jobs registered in the IBB Group in this category, around 9,400 people were saved from unemployment. Without this job-saving effect, the average unemployment rate in 2023 would have been 10,1%, which is 0.4 percentage points higher than the official annual figure of 9.7% reported by the Berlin-Brandenburg Statistical Office.

In addition to the increase in Berlin's GDP, the impact on public sector revenues is of particular interest. On the one hand, the public sector will benefit from higher tax and social security revenues, but also from a lower reliance on transfer payments. Berlin's public revenues will increase by around EUR 344 million because of the IBB Group's subsidies.

In 2024, a large part of the economic growth effects was attributable to the main objective of ‘Industry, Innovation and Infrastructure’. Here, a supporting GDP effect of EUR 1.3 billion was achieved through the transmission channel of increased investment. At the same time, this objective accounted for a total of 4,889 jobs, 1,043 of which were newly created. The Sustainable Cities and Communities goal accounts for EUR 616 million in GDP effects and 2,245 jobs, 479 of which are newly created.

A further EUR 448 million in GDP is attributable to the ‘High-quality education’ objective, with 1,634 jobs secured and created.

The topic of ‘Decent work and economic growth’ accounts for EUR 128 million in GDP effects and 466 jobs.

The IBB Business Team offers a variety of funding opportunities, both in the form of grants and advisory services, to companies, start-ups, property owners and private individuals in Berlin.

The IBB Business Team addresses the Sustainable Development Goals (SDGs) 7 (Affordable and Clean Energy) and 8 (Decent Work and Economic Growth). At the same time, it makes an important contribution to SDG 1 (No Poverty) and SDG 11 (Sustainable Cities and Communities). The IBB Business Team promotes sustainable development and economic progress in Berlin through a wide range of programs.

Promoting entrepreneurship, creativity and innovation

The activities of IBB Ventures aim to improve the financing situation of micro, small, and medium-sized enterprises, thereby addressing SDG 8: "Decent Work and Economic Growth." The focus is on innovative companies with high growth potential. This results in the creation of a large number of new jobs in the clusters of the joint innovation strategy of the states of Berlin and Brandenburg.

In addition to this direct impact of the fund in the area of economic development, the business activities of a high proportion of the funded start-ups have an indirect impact on the SDGs. The focus is on the areas of health, decent work and economic growth, responsible consumption and production, education, sustainability and energy.

Focus on female founders

IBB Ventures is a member of the #startupdiversity initiative of the German Start-up Association and bitkom. The aim of the initiative is to strengthen female founders in the start-up ecosystem. The proportion of female founders in Germany is currently just 18.8 per cent. Among the start-ups financed by IBB Ventures for the first time in 2024, the proportion of companies with at least one female founder is 29 per cent.

Impact Investing

In 2022, an Impact VC fund was added to the existing range of funds. This fund is specifically aimed at Berlin-based start-ups whose business activities are not only focused on economic success, but also make a measurable, positive contribution to addressing the most pressing societal challenges. The focus is on the SDGs. he fund's investment focus is therefore likely to be primarily in the following areas:

• Health and Well-Being (SDG 3)
• Quality Education (SDG 4)
• Gender Equality (SDG 5)
• Affordable and Clean Energy (SDG 7)
• Industry, Innovation and Infrastructure (SDG 9)
• Sustainable Cities and Communities (SDG 11)
• Responsible Consumption and Production (SDG 12)
• Climate Action (SDG 13)

The Impact VC Fund has a volume of EUR 30 million. 60% of the fund's resources come from returns and profits from successful investments by IBB Ventures, while the remaining 40% comes from the European Union's ERDF funding for the funding period 2021 to 2027. The Impact VC Fund also aims to stabilise the fund offering through the reinvestment of returns and profits, as well as leverage through co-investment with private investors. This requires an appropriate balance between potential return and risk in the companies financed.

Promoting entrepreneurship and employment

IBB Capital's activities serve economic development by improving the financing situation of start-ups, thus addressingaddressing SDG 8: "Decent Work and Economic Growth."

In addition to this direct impact of the company in the area of economic development, the business activities of a high proportion of the funded start-ups have an indirect impact with regard to a variety of SDGs. The focus is on the areas of health, quality education, economic growth, industry, innovation and infrastructure, sustainability and energy.

Through the “BerlinInnoGrowth” program (BIG program) launched in May 2024, IBB Capital makes investments in innovative and fast-growing start-ups in the company's existing portfolio.

By mid-2025, 20 equity investments had already been made, including in the areas of “Health and Well-being” and “Quality Education”.