Our ESG management

Sustainability is embedded at various levels, with the IBB Group’s ESG management playing a central role in driving the integration of and compliance with evolving legal requirements. We actively monitor the regulatory landscape to stay aligned with new regulations. Our practices are aligned with legal obligations such as the EBA Guidelines or the CSRD.

ESG management formulates and implements policies that embed sustainability at every level of our business. These policies are developed through a collaborative process that builds on our strategic vision, ensures compliance with binding legal standards, and aligns with best-in-class industry practices. ESG policies are not solely created by the ESG management team: all relevant departments contribute different perspectives to develop the most effective solutions. At the heart of our sustainability framework are the following key policies that guide our commitment to responsible and sustainable business practices:

• Sustainability guidelines of the IBB Group: Building on the embedding and steering instruments, these sustainability guidelines provide the framework for our sustainability efforts. They integrate sustainability into all aspects of our operations and define our mission, principles, and exclusion criteria for both our grant and loan portfolios.
• IBB treasury sustainability guideline: This guideline provides further details on our approach to sustainable investment and portfolio management, including exclusions, portfolio evaluation practices, our commitment to active shareholding and best-in-class company selection based on ESG factors.
• The IBB Group’s sustainable lending guidelines: These guidelines describe the IBB Group’s standards and approach to integrating ESG criteria and managing ESG risks in the lending activities of IBB and the IBB Group, based on the sustainability guidelines. They summarise the existing framework for identifying, assessing, and managing potential ESG risks in lending decisions. It is continuously reviewed by ESG management and adapted to new developments and findings as needed.

The IBB Group utilises a comprehensive set of qualitative and quantitative data points in accordance with the requirements of the European Sustainability Reporting Standards (ESRS) to systematically track progress across all areas of sustainability. Through the associated double materiality assessment conducted under the Corporate Sustainability Reporting Directive (CSRD), the material sustainability topics along with the corresponding ESRS data points to be reported are identified for the Group.

These data points allow us to monitor the achievement of set targets, observe developments over time, and ensure comparability with other organisations. The data collected from various departments and subsidiaries of IBB UV is consolidated into the Group Sustainability Statement and disclosed as part of the annual management report.

In close collaboration with the departments and subsidiaries, the ESG Management team ensures data quality through an internal control system. Results are regularly reviewed to track ongoing developments and enable comparisons through the years.

A key focus of product development is the direct integration of the IBB Group’s sustainability and climate strategy into the product development process, with the aim of contributing to the sustainable development of the State of Berlin. In this regard, the IBB Group places great emphasis on expanding its range of sustainable financing products, particularly with a view to fostering a climate-neutral and growing city. ESG management serves as an initial driver during the initiation and development phases of product development and is closely integrated through the “New Product Process” (NPP), which is implemented when new business activities are launched. Through the NPP, new products or product modifications are assessed with regard to various sustainability aspects. These include impacts on the IBB Group’s sustainability guidelines, the SDGs, or ESG criteria.

Additionally, the IBB Group collaborates closely with local stakeholders in product development. In the area of economic development, it works with Berlin commercial banks as well as other regional institutions, such as Berlin Partner and visitBerlin, to ensure the integration of sustainability aspects. In the area of real estate development, housing associations and tenant representatives are regularly involved in the initiative and development phase in cooperation with the State of Berlin, which in turn can comment on new funding conditions on behalf of its members. In an annual survey, housing market experts are also asked for their expert opinion on the situation on the Berlin housing market. The focus here is primarily on social criteria. The results are incorporated into the IBB Housing Market Barometer and the development of new funding products. The aim is to continuously improve the product portfolio in line with the needs of Berlin's population.

In order to take up supraregional and international impulses in the field of product development, the IBB Group has also been engaging in intensive exchange with other development institutions for many years through the VÖB and EAPB networks and takes new product ideas into account.

Each funding product is supported by specific guidelines, FAQs, or fact sheets that define which stakeholder groups (e.g. small and medium-sized or innovative companies, housing associations or private homeowners) can receive financing under which conditions, including various exclusions.

We see the focus of economic development on the sustainable growth of Berlin and supporting Berlin’s entrepreneurs and businesses in their sustainable transformation across all phases of business financing. A significant portion of activities involves EU structural funds (ERDF). The resulting funding products are compatible with the sustainability-oriented goals of the Europe 2021 strategy and the subsequent funding periods. Since 2021, the fund targets have been pursued “in accordance with Article 11 TFEU, promoting sustainable development, considering the UN SDGs, the Paris Agreement, and the principle of 'Do No Significant Harm'”. This results in guidelines and regulations, compliance with which is also monitored by independent bodies.

Corporate financing aims to foster entrepreneurship, innovation capacity, and productivity, particularly among small and medium enterprises (SMEs). Companies within the clusters of the joint innovation strategy of the states of Berlin and Brandenburg take centre stage. The clusters include the healthcare industry, ICT, optical technologies, mobility, and energy technology. Berlin-based customers and stakeholders from the clusters receive close support from the IBB Group's key account management team.