Contents strategy
Thinking and acting sustainably have always been integral elements of Oberbank’s value-based strategy. As an independent regional bank, we are deeply rooted in our markets and support local communities and businesses.
Our values form the central basis for our strategy. This has allowed us to maintain our independence for more than 150 years. Because this is the only way to ensure that Oberbank, in its actions, can strike a balance between the interests of customers, employees and shareholders – now and in the future. All other strategic goals pursued by Oberbank are aligned with this principle. It serves as the foundation for our unusually successful development in now five countries – Austria, Germany, the Czech Republic, Slovakia and Hungary.
A modern sustainability strategy with clear goals and successful sustainability management are of great importance for the further development and future success of Oberbank. The sustainability strategy is therefore a fixed component of Oberbank’s overall banking strategy.
Guidelines
Oberbank not only follows existing guidelines, but also sets its own high standards for compliance with ethical principles. These are set out, among other things, in our Code of Conduct for all employees. Exclusion and positive criteria for our financing operations are also a key aspect.
Commitment to the Austrian Corporate Governance Code (ÖCGK)
As a listed company, Oberbank AG is committed to the ÖCGK as amended from time to time.
Code of Conduct for employees
The Code of Conduct applies to all Oberbank employees. Oberbank is expressly committed to always acting in a responsible, ethical and appreciative manner, both internally and externally. This generally relates to dealing with people, be it employees, customers or stakeholders. But it also means taking into account ecological and economic aspects and finally dealing responsibly with all legal framework conditions. Ethical principles are the foundation of each and every decision and action.
To the Code of Conduct for employees
Code of Conduct for suppliers
In addition to the general Code of Conduct for employees, Oberbank also has a Code of Conduct for suppliers and business partners, which extends the rules and measures mentioned in the Code of Conduct to the collaboration with external partners. All suppliers of Oberbank AG must comply with these principles, which include compliance with the law, respect for human rights, various environmental regulations and the prohibition of corruption and bribery.
Strictly excluded business
Oberbank distances itself from industries, companies and business practices that, in its view, could result in unacceptable impacts on the environment, social aspects and governance (ESG). The following exclusion criteria based on sustainability aspects are mandatory for new customer business as well as for new fields of business that existing customers may enter into, and they are not subject to any option for approval.
Oberbank will not enter into a business relationship and/or will distance itself from individual companies if violations of labour law and human rights, or illegal and controversial business or environmental practices are known or become known in the course of the business relationship.
1. Oberbank will not enter into a business relationship and/or will distance itself from companies if violations of labour law and human rights or the employment of children are known or become known in the course of the business relationship.
Details:
Criterion |
Example |
Labour rights violations |
If there is a violation of at least one of the four fundamental principles of the “ILO – Declaration on Fundamental Principles and Rights at Work” (Declaration on Fundamental Principles and Rights at Work)
e.g. if working conditions, especially with regard to minimum wages, working hours, safety and health are unreasonably poor, forced labour is practised, or minimum standards are systematically bypassed. |
Human rights violations |
If human rights are violated in the meaning of nationally and internationally recognised legal bases (e.g. ECHR, UN Charter of Fundamental Rights, etc.).
These include, among others, interference through political arbitrariness, torture, restriction of privacy and freedom of expression, or systematic interference with religious freedom, such as activities that negatively affect indigenous peoples and their livelihoods. |
Illegal business practices |
Products or activities that are considered illegal under applicable laws or other provisions of the respective national legal system or international conventions and agreements (e.g. money laundering, fraud, corruption, financing of terrorism, etc.). |
Controversial environmental behaviour |
Controversial environmental practices that violate applicable national environmental laws and international environmental agreements and are incompatible with general sustainable values and the preservation and promotion of biodiversity (e.g. systematic behaviour leading to contamination or pollution, projects with a major negative impact on the environment, encroachment on protected areas). |
2. Oberbank considers the following economic activities and industries to have an increased ESG risk potential and excludes them.
Details:
Industry / Criterion |
Exclusion of |
Nuclear energy |
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Illegal substances (narcotics) |
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Harmful substances |
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Gems and conflict minerals |
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Fishing |
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Trade in protected animals or export leather, as well as animal testing |
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High volume fracking and Extraction of oil sands
Crude oil |
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Coal |
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Controversial and heavy weapons |
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Embryo research |
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Pornography (adult entertainment) |
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3. Exclusion criteria for countries
In keeping with the principle of regionalism, Oberbank focuses on companies in those countries in which it is active or which have their registered office in the EU or belong to a UNIDO member state. In addition, we do not engage in proprietary transactions with central governments, which are excluded by the following criteria:
Details:
Criterion |
Excluded |
FATF list
EU liste of high-risk countries |
Countries on the black, dark grey or grey list of the Financial Action Task Force on Money Laundering (FATF). |
Climate protection |
Countries that have not ratified the 2015 Paris Climate Agreement. |
Freedom of the press and media |
Countries in which press and media freedom is massively restricted. (Reporters without Borders blacklist). |
Sanctions |
Countries subject to EU sanctions unless specifically defined policies and procedures are in place at Oberbank to migrate the risks in question to an appropriate extent and in a legally compliant manner. |
Oberbank Sustainable Corporate Lending Framework
To contribute to the sustainable development of our environment and our society the Oberbank Sustainable Corporate Lending Framework was developed as a new basis for analysing lending operations in terms of their environmental sustainability. It is aligned with the assessment criteria of the EU taxonomy as well as our exclusion criteria (see exclusion criteria).
The objective of this framework is to define clear sustainability criteria for investment and project financing in the corporate client sector. Furthermore, a second party opinion was obtained from the International Shareholder Services Inc.(ISS).
Oberbank Sustainable Corporate Lending Framework (English)
Second Party Opinion von ISS ESG (English)
Strategic sustainability goals for 2025
In governance
- We are committed to the Paris Climate Agreement’s 1.5 degree goal.
- We pursue a clear sustainability strategy. It is part of our overall banking strategy.
- We actively participate in ESG initiatives and establish new partnerships, thereby reaffirming our high compliance standards regarding ethical principles.
- We cultivate a regular exchange with our stakeholders.
In finance and in lending policy
- By 2025, we will have provided sustainable private financing (energy-efficient housing) in the amount of at least 1.5 billion euros. This corresponds to more than 50 percent of newly granted housing loans.
- We identify and assess ESG risks in our loan portfolio and implement appropriate decarbonisation measures through the application of limits, exclusion and positive criteria, etc.
- Impact reporting: We measure and report annually on the impact (CO2 reduction) achieved through our sustainable financing.
- By 2025, more than 50 percent of all new Oberbank issues will comply with ESG criteria.
In asset management
- We are increasing the volume of the sustainable 3BG mutual funds to more than EUR 1 billion by 2025.
For society
- We are committed to the principle of regionalism: 95 percent of our sponsorship and donation budget goes to projects in our markets. In procurement, we work primarily with partners from our regions.
For the environment
- We will be climate neutral (in Scope 1 & Scope 2) by 2025 and contribute to limiting the temperature increase to 1.5 degrees.
- The carbon footprint per employee will be less than 1 tonne by 2025.
For our customers
- We have an excellent customer experience management: high customer satisfaction rate of more than 60 points (NPS).
- We support our clients in the digital transformation of banking services. The degree of digitalisation is greater than 80 percent.
For our employees
- Next generation: We offer young potentials the opportunity to advance their development. We fill 80 percent of management positions from our own ranks.
- Gender balance: 30 percent female executives in 2025, 40 percent female executives in 2030.