POSTBANK ESG STRATEGIC VISION

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POSTBANK ESG STRATEGIC VISION

Environmental pollution and climate change are among the biggest challenges of our time. They define the quality of life and the future of our planet. They impact all businesses and increasingly affect households. They also cause a number of social issues. Turning all these into opportunities requires the application of best governance practices.

At Postbank, we place environmental protection and fighting climate change at the heart of our beliefs. As a responsible financial institution, we have stepped up to undertake the role that our time is calling for by embedding climate-related and environmental criteria in our management philosophy and key decision-making processes.

We are convinced that our success as a financial institution is tied to taking into consideration the vast social aspects that our operations have and aspire to apply best governance practices to ensure our values are observed.

We believe that climate change and the physical and transition risks associated with it provide a broad spectrum of opportunities for innovative solutions to the challenges they pose, and we are ready to offer financial solutions to help to alleviate them. We also acknowledge that business opportunities and possibilities to contribute to society are the opposite sides of the difficulties we are facing. We aspire to maintain and expand our position as a leader in sustainability in Bulgaria by undertaking a proactive approach to ESG matters.

Our commitment

Postbank has been a leader in sustainable finance in Bulgaria for the past decade and we commit to maintaining this position by developing further our ESG policies and translating them into actions to support our clients and stakeholders. To this end, we are committed to:

  • Offer the best sustainable finance products to our customers;
  • Help turn sustainability challenges ahead of our customers into opportunities by providing them with suitable financial solutions;
  • Enhance our sustainability impact by providing innovative financial approaches to market demands;
  • Act responsibly by closely monitoring ESG risks in our activities;
  • Increase staff and stakeholder awareness on ESG issues through involvement in various ESG activities;
  • Ensure a positive and inspiring work environment for our staff;
  • Manage actively our environmental footprint by maintaining a robust resource efficiency program;
  • Add value to society by contributing to various social initiatives.

    We implement our ESG vision by:

  • Orienting our core business activities towards sustainability;
  • Managing ESG risks across our commercial portfolio;
  • Demonstrating care for the environment through efficient use of internal resources and implementing green procurement practices;
  • Enhancing awareness on ESG matters across our staff, stakeholders, and the broader society by acting as an agent of change;
  • Investing in human capital by initiating and supporting an array of training and educational programs in sustainability and ESG issues.

Realizing our important role in tackling the pressing environmental, climate, economic and social challenges, we have implemented an ESG management model that facilitates our efforts in the three ESG areas. We have set up an ESG Management Committee chaired by the Chief Executive Officer and comprising members of the top management of the Postbank with the purpose to:

  • provide strategic direction on ESG initiatives;
  • review the Bank’s ESG strategy;
  • integrate the elements of the ESG strategy into Postbank’s business model & operations;
  • measure and analyze the progress of the ESG goals and performance targets; and
  • ensure the proper implementation of ESG related policies and procedures, in accordance with supervisory requirements and voluntary commitments.

In addition, we have created a dedicated ESG Department reporting to the CEO, with the purpose to promote the ESG principles and culture across the Bank. The ESG Department is also responsible for monitoring the Bank’s operational impact and for the coordination of the ESG strategy implementation.

We have also established a special Climate and ESG Risks Department within Risk Division, whose overall responsibility is to identify, measure, monitor, control and integrate climate related and ESG risks into the Bank’s risk management policies and procedures, so that we are able to manage the relevant risks and comply with supervisory requirements. The unit reports to the Chief Risk Officer and is independent of the business units. 

To enhance internal awareness, since 2008 we have set up Green Board – an informal internal organization of volunteers which aims to foster awareness on environmental matters and to come up with initiatives in the area of responsible banking. Throughout the years of its existence, the Green Board has proven to be an efficient channel of innovative ideas from the bank employees.

We have also invested in our own internal program Green Together. Our bank is funding green initiatives which are implemented with the voluntary work of our employees.

Engagement with third parties

Postbank has been a United Nations Environmental Program – Finance Initiative (UNEP FI) member since 2013. In 2020, we also became a signatory of UNEP FI’s Principles for Responsible Banking. We are the first, and to date the only, bank in Bulgaria that is a member of this leading international financial initiative promoting sustainability and advanced ESG practices. In addition, Postbank is a member of the United Nations Global Compact Network Bulgaria.

Drawing on international expertise and best practices through engaging with these international organizations enhances our internal expertise and gives us access to a knowledge, tools and resources for developing innovative ideas and possible solutions to tackle the ESG challenges we face.