Raiffeisen Group

RATING

SECTOR

Banking

WEBSITE

CONTACT

Am Stadtpark 9 Vienna, 1030 Austria
Phone: +43-1-71707-0
Fax: + 43-1-71707-1715

STOCK EXCHANGE

LISTING

  • #768 Global 2000 2021
  • #1220 Sales in Global 2000 2021
  • #777 Profit in Global 2000 2021
  • #192 Assets in Global 2000 2021
  • World’s Best Banks 2021

EMPLOYEES

45,414

CHIEF SUSTAINABILITY OFFICER

Sara Foršek

AWARDS

  • Bronze Business Impact Award at the Best of Swiss Apps Award 2020
  • Refinitiv Lipper Funds Award
  • Straight Through Processing Awards

CONTENT SOURCE

FURTHER READING

Report created by Ellie Weiss

Raiffeisen Group

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Raiffeisen is the cooperative of all 246 independent Swiss Raiffeisen banks, with 896 branches in total. The company was founded in 2010 and is based in Vienna, Austria. They are the densest branch network and third largest bank in Switzerland, with 3.8 million clients. 1.9 million of their clients are cooperative members, meaning they are co-owners of the banks. 

The bank works in banking and financial solutions, providing a range of products including financing, leasing, hedging, trade and export finance, cash management, payment and fund, and securities and card services. They have segments in Central Europe, Southeastern Europe, Eastern Europe, Group Corporates & Markets, and the Corporate Center.

  • The Central Europe segment covers banking markets in the Czech Republic, Hungary, and Slovakia.
  • The Southeastern Europe segment covers banks and leasing companies, capital management, asset management companies, and pension funds operating in Albania, Bosnia, Herzegovina, Bulgaria, Croatia, Kosovo, Romania, and Serbia.
  • The Eastern Europe segment covers banking services for corporate and retail customers in Belarus, Kazakhstan, Russia, and Ukraine.
  • The Group Corporates & Markets segment covers operating business booked in Austria. The Corporate Center segment refers to central management functions at the head office and other units. 

Company Sustainability Activity

Raiffeisen bases its sustainability efforts on ten strategic guiding principles.

  • Set strategic goals –  The bank identifies the most important areas to focus on to reduce their negative effects and maximize positive effects and then sets clear goals with specific measures. 
  • Strengthen governance – They implement specific systems to ensure corporate responsibility and sustainability. 
  • Ensure transparency – Raiffeisen is committed to being transparent about its sustainability and corporate responsibility efforts. 
  • Respect the legal framework – The bank abides by its applicable laws and Swiss values.
  • Be economically successful in the long term – They strive to create long-term added value for their customers, employees, investors, and other partners.
  • Create sustainable products and services – They want all of their products and services to be compatible with sustainable development. 
  • Maintain open and fair dealings with customers – Raiffeisen’s products are understandable, priced fairly, and communicated transparently so that customers can make their own well-informed decisions. The bank also ensures that customer data is protected as well as possible. 
  • Curb climate change – Raiffeisen supports the Paris Climate Agreement and Switzerland’s climate-neutral energy transition. 
  • Promote skills and diversity among employees – They have extensive and continuous training and development programs. The company reflects diversity in society and discrimination of any kind is not tolerated. 

Sustainability Governance

  • Raiffeisen strives for strong organizational systems, processes, and responsibilities for effective sustainability management. All 225 of the banks implement sustainability at the local level as they focus on sustainability-related risk management, further developing the range of sustainable financial products, representing sustainability issues to stakeholders, and supporting all banks on sustainability-related problems. 

Anti-Corruption

  • The bank has a special focus on fighting against corruption, money laundering, and financing of terrorism. They use preventative measures to ensure safety. Their strict guidelines and training helped them to implement their mechanisms to detect corruption in 100% of their banks and branches. 

Creating Sustainable Products and Services 

  • Raiffeisen promotes sustainability in their mortgage business by sensitizing their customers to the potential for increasing energy efficiency and reducing carbon dioxide emissions. They were the first bank to systematically integrate energetic property valuation into mortgage advice. All pension and investment customers are asked about their affinity for sustainability when they open custody accounts. 
  • They also raise awareness of sustainability issues in corporate banking as they award regional entrepreneur prizes for prudent and responsible business models. 

Climate Change

  • Raiffeisen supports the Paris Climate Agreement goals as well as Switzerland’s climate-neutral energy transition through their “net zero” goal by 2050, if not by 2030, which they are currently aiming for. They are reaching this goal through complying with standards on energy, mobility, resources, and procurement. The remaining emissions are offset. 

Promoting Skills and Diversity Among Employees

  • The bank promotes skills and diversity among employees as part of its sustainability strategy. Their corporate culture consciously promotes diversity. 

Making Funds Sustainable

  • Raiffeisen is now putting most of its funds into its sustainability brand, Futura. They increased their percentage of funds in the brand from 73% to 95%. They are also digitizing these funds to further their sustainability. 
 

Highlights

  • The bank organizes and prioritizes its sustainability actions with its ten principles; Set strategic goals, Strengthen governance, Ensure transparency, Respect the legal framework, Be economically successful in the long term, create sustainable products and services, Maintain open and fair dealings with customers, Curb climate change, Promote skills and diversity among employees. 
  • They create strong sustainability governance with their focus on organizational systems, processes, and responsibilities relating to sustainability. 
  • They fight against corruption with strict guidelines and training.
  • Raiffeisen promotes the development of sustainable products and services.
  • The bank fights against climate change by reducing and offsetting its emissions. 
  • They push skill development and diversity through their corporate culture.

Targets

  • Raiffeisen aims to achieve net-zero carbon dioxide emission by 2050 at the latest, currently, they are trying to reach it by 2030. 
  • They aim to strengthen governance in sustainability management according to ISO 26000 by 2021. 
  • They aim to have a systematic ESG review of all Raiffeisen products and services and disclosure of the relevant ESG information from 2022, along with a continuous strengthening of the range of proven sustainable products and services. 
 

Progress

  • Raiffeisen went from using 70,027,000 kWh of building energy in 2018 to 67,551,000 kWh in 2020.
  • Business dealings transport in km went from 19,590,000 in 2018 to 11,915,000 in 2020.
  • Paper consumption went from 1,090 t in 2018 to 751 t in 2020.
  • Water consumption went from 162,000 cubic m in 2018 to 144,000 cubic m in 2020.
  • Greenhouse gas emissions from energy, transport, paper, and water went from 13,673 t carbon dioxide in 2018 to 11,357 t carbon dioxide in 2020.

Certificates

Raiffeisen Group has no sustainability-related certificates. 

UN Sustainable Development Goals

UN SDGs Compliance

The Impakter Index aligns current sustainability initiatives with the Un Sustainable Development Goals.

SDG 8: Decent Work and Economic Growth

  • They strive to create long-term added value for their customers, employees, investors, and other partners.

SDG 9: Industry, Innovation and Infrastructure

  • They were the first bank to systematically integrate energetic property valuation into mortgage advice. All pension and investment customers are asked about their affinity for sustainability when they open custody accounts. They also raise awareness of sustainability issues in corporate banking as they award regional entrepreneur prizes for prudent and responsible business models. 

SDG 10: Reduced Inequalities

  • They have extensive and continuous training and development programs. The company reflects diversity in society and discrimination of any kind is not tolerated. 

SDG 11: Sustainable Cities and Communities

  • All 225 of the banks implement sustainability at the local level as they focus on sustainability-related risk management, further developing the range of sustainable financial products, representing sustainability issues to stakeholders, and supporting all banks on sustainability-related problems.

SDG 13: Climate Action

  • Raiffeisen supports the Paris Climate Agreement goals as well as Switzerland’s climate-neutral energy transition through their “net zero” goal by 2050, if not by 2030, which they are currently aiming for. They are reaching this goal through complying with standards on energy, mobility, resources, and procurement. The remaining emissions are offset. 

SDG 16: Peace, Justice and Strong Institutions

  • Raiffeisen’s products are understandable, priced fairly, and communicated transparently so that customers can make their own well-informed decisions. The bank also focuses on fighting against corruption, money laundering, and financing of terrorism, with preventative measures. Their strict guidelines and training helped them to implement their mechanisms to detect corruption in 100% of their banks and branches.
 

Evaluation

Raiffeisen overall has a fair amount of sustainability-related projects, ranging from more environmentally focused ones to those targeting supporting society and the economy. They report every year on their initiatives, but they do not line them up with the UN SDGs. In their most recent report, they went as far as to mention SDGs that they had some focusing on, but did not align any specific practices with any of the goals. 

The bank also reported on a lot of their progress over the past three years with specific analytics. 

The company has a clear lack in the awards, listings, and certification areas to give their projects extra credibility. 

Because they do not have clear alignment with the UN SDGs, have little outside credibility, and have a lot of room to have more environmentally focused initiatives, Raiffeisen is receiving a “C” rating. 

Analyst Outlook: Positive

They have good intentions to reduce their emissions and eventually become net carbon neutral. They wrote a handful of more specific goals for them as well to help them achieve this commitment. Because of this, they are receiving a “positive” outlook. 

Key Points

  • They have a lot of projects relating to many different sustainability-related issues. 
  • The bank does not line up its work with the UN SDGs.
  • Raiffeisen would benefit from more outside support and credibility. 
  • They have made strong progress and set goals, especially with becoming carbon neutral. 
Share this Post