We finance projects with a positive impact on the environment and society

We are committed to various commitments and initiatives that affect our business

Responsible financing

We are committed to the future and believe that our funding of meaningful projects will help to protect the environment and promote sustainable business. We appreciate our clients' efforts to mitigate environmental impact and support projects that help nature and society.

We have set up the KB Advisory special consulting team at Komerční banka to provide advisory services in the areas of subsidies, energy, renewable resources, circular economy and waste management.

In 2020, we made 140 investment loans with an environmental or socially positive purpose to corporate clients and entrepreneurs.  Their total volume amounted to CZK 6.7 billion. The largest share of these loans (31%) was for water projects, such as drinking water supply systems, new sewerage systems and sewage treatment plants, followed by renewable energy projects - solar, wind and hydroelectric power plants (30%), public healthcare facilities (17%) and energy saving projects (6%).

We have launched the Sustainable together website, which provides news and examples of good practice from the world of sustainable corporate finance. In addition to completed projects, you will also find inspiration from the areas of technology, legislation, grant advice and our corporate services on the website.

Our commitments

As its parent company, Société Générale, Komerční banka is aware of the need to look for responsible ways of financing.

When managing clients’ funds, we therefore do not take into account their prosperity only, but also respect for environmental and social principles. Thus, we are knowingly helping to minimize the negative impacts on the environment and society.

Equator Principles: In the financing of large infrastructural and industrial projects the entire SG Group follows  Equator Principles, a set of voluntary guidelines of financial sector for assessing the environmental and social risks of major projects based on the World Bank’s international standards.

Global Partnerships: The SG Group is one of the founders of UNEP-FI - United Nations Environmental Programme Financial Initiative, a programme of global partnerships between the UNEP and the financial sector.

Implementing the Sustainable Development Goals: In 2019, the SG Group was a founding signatory of the Principles for Responsible Banking, committing to strategically align its business with the Sustainable Development Goals set by the United Nations and the Paris Agreement on Climate Change.

Memorandum for Sustainable Finance

In 2021, we signed the CBA Memorandum for SustainableFinance in which we and other banks reaffirmed our commitment to creating a business environment conducive to sustainable and socially responsible development of the Czech Republic.

Climate strategy in the coal sector: In 2019, the SG Group adopted its Climate Strategy as part of contributing to the fight against the climate change. In the strategy, the SG Group commits to refrain from providing new financial products and services to companies that have majority of their revenue linked to the coal sector (coal extraction and transport, coal trading, and coal use for electricity and heat generation). In addition, the SG Group is committed to progressively reduce to zero its exposure to the thermal coal sector by 2030. Komerční banka has therefore decided to proactively support clients’ projects for the transition to greener and renewable energy sources. 

Sustainable Development Goals

The SDGs, or Sustainable Development Goals were adopted in 2015 by all UN member states and serve as guidance to ensure prosperity and peace for all, build partnerships, provide a dignified life without poverty and inequality, or protect the environment. 

We selected those goals that we believe are most important to us and our stakeholders and that can have a truly positive impact on the society in which we do business.

If you want to find out more about SDGs and their implementation into our business, read the Sustainability Report 2020

Our commitments in practice

The objectives and requirements arising from the voluntary commitments are included in the Environmental and Social General Principles which are applicable across the SG Group. The general principles are complete with sectoral policies setting out the Group’s detailed environmental and social rules and standards for funding business activities and projects in 12 sensitive industrial and energy sectors:

The bank refrains from financing the activities that are not in line with its social or ethical standards (e.g., coal extraction and burning, manufacturing of certain types of weapons or export of arms and military equipment to controversial countries or war zones, or to countries with an increased risk of illegal arms trade) or the companies that fail to comply with environmental regulations.

A system for E&S risk management in corporate sector financing

At the beginning of 2020, Komerční banka put in place a system for screening and managing environmental, climate change and social risks of corporate clients, primarily companies operating in sensitive sectors. KB’s environmental expert conducts the assessments of the clients identified as high-risk clients. The objective of the system is to ensure that the clients’ businesses satisfy the requirements of environmental, labour and social regulations and that there is no increased reputational and related credit risk associated with the client/transaction.

Sustainability in the financial services sector

In compliance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (SFDR), Komerční banka discloses specific information on the integration of sustainability risks and on the consideration of adverse sustainability impacts.

Through the publication of the following statements, we do not only enhance the transparency of our policy but also provide information on the manner in which we consider impacts on sustainability factors.

Statement on Human Rights: Société Générale Group (SG Group), including KB, is committed to respect for and promotion of human rights. Since these are one of the foundations of its Environmental and Social (“E&S”) Risk Management System and also constitute a sustainability factor, KB has issued a statement on human rights. KB supports respect for human rights and also addresses specific issues concerning the financial sector.

Statement on protection of biodiversity: Aware of the increasing pace of biodiversity loss worldwide, KB is committed to respect for and preservation of biodiversity and has issued a statement on protection of biodiversity. SG Group strives to comply with the legal and regulatory provisions of the territories in which it operates regarding the protection of species, habitats and ecosystems, and expects similar compliance from its suppliers and clients. 

Statement on climate change: Since climate issues are a key area of focus of SG Group’s governance and strategy, both in terms of its management and governance focus and its strategy. Since SG Group is committed to align its activities with the goals of the Paris Climate Agreement, KB has issued a statement on climate change

Following documents related to SFDR describe the approach of Komerční banka to the integration of sustainability risks and adverse sustainability impacts:

Note: The documents attached are free translations and reflect to the maximum extent the Société Générale group policy. In case of any inconsistency between these documents and the documents published and updated on the Société Générale website, the original of the text published on the Société Générale website shall prevail.

Ten Commandments of Ethics

  1. In our business, we follow the principles of ethics and laws and regulations; we approach our trade partners and customers with respect.
  2. We follow our internal steering documents that rely on applicable and effective laws and regulations, the relevant acts of the European Union and the United Nations, and the SG group code of conduct (SG Code of Conduct).
    Société Générale Group Code of Conduct (PDF, 575 kB)
    Société Générale Group Code of Conduct (PDF, 229 kB)
  3. We take into account other companies’ rules of ethics and internal documents (if in the public domain and unless they are contrary to laws and regulations and the SG Code of Conduct), and we expect the same from our trade partners and customers.
    Société Générale Group Code of Conduct (PDF, 575 kB)
  4. We do not support or tolerate fraudulent conduct, corruption, anti-competitive practices, discrimination, and harassment in any form. We fully respect the SG Group’s code governing the fight against corruption and influence peddling.
    Société Générale Anti-Corruption and Influence Peddling Code (PDF, 311 kB)
  5. We do not accept or provide any unusual advantages of any kind.
  6. We prevent and prohibit potential conflicts of interests between personal activities and the job position.
  7. We are doing our best to prevent abuse of our services for any purposes of money laundering, terrorism financing, and trading in arms, ammunition and other products and technologies that are classified as military materiel.
  8. Our conduct is apolitical and non-partisan; we do not support any action or initiative with an exclusively or predominantly political goal.
  9. In our commercial activities we respect the right to competition and competition law, being convinced that solely fair competition and transparent market can freely develop society as such.
  10. We care for the quality of the natural and social environment; under the SG Group’s rules we are scaling down the provision of financial products to areas having a potentially negative impact.