Climate Talks #6: Turning commitments into action: How Tatra banka embeds sustainability into everyday banking. 🌱
As sustainability and sustainable finance become an integral part of modern banking, Tatra banka stands out with innovative solutions and a clear long-term vision.
In this interview, Nikoletta Kovacs , Leader of ESG Business Development and the strategic driver of the Climate and Environmental Business Strategy (CEBS) for retail banking, sits down with Tomáš Kvašňovský , Sustainability Officer at Tatra banka, to explore how the bank is translating its ESG commitments into actions. From the launch of the ESG Deposit to financial education for the next generation, they discuss how sustainability is being embedded across products, operations, and strategy – creating real impact for clients and society. 🙌
👉 Tatra banka’s ESG Deposit, designed specifically for corporate clients, represents a forward-thinking approach to integrating sustainability into traditional banking products. Could you elaborate on how this term deposit aligns with the bank's broader sustainability strategy and the specific environmental benefits it aims to deliver?
Tatra banka's ESG Deposit is the bank’s newest sustainable product introduced in mid-2024 that brings sustainability into the core of corporate banking. This term deposit is part of the bank's broader strategy to integrate environmental, social, and governance (ESG) factors into its offerings, making it easier for companies to contribute to a sustainable future.
The product is intended for clients – entrepreneurs who are interested in adding sustainable value their short-term financial resources. This not only supports the bank's role in driving positive environmental change, but also empowers businesses to align their financial activities with sustainable practices, creating a ripple effect of responsible investment across industries. The ESG Deposit is governed by its publicly available ESG Deposit framework, which includes second-party opinion from an independent third party expert.
The bank uses the funds from this deposit exclusively to finance clients' activities related to sustainability. An example of such financing is the financing of KPI-linked loans, which are loans tied to a company's performance on key sustainability indicators. These loans provide terms for businesses that meet specific environmental or social targets to improve their sustainability performance. By channeling deposits into such financial products, Tatra banka is not only enhancing its sustainability portfolio, but also offers tangible benefits to businesses that are committed to making a positive impact.
This approach ensures that the bank's financial services are not just about profit, but also about fostering a healthier planet and society. The bank will publish an Allocation and Impact Report on the use of deposits from the ESG Deposit.
👉 Your Green Bond Allocation and Impact Report showcases significant milestones, including a green bond portfolio of EUR 741 million and annual emission savings of approximately 60,611 tons of CO₂ equivalent. How do these achievements reflect Tatra banka’s long-term sustainability vision, and what additional measures are being implemented to amplify the environmental and social impact of your green financing initiatives?
Tatra banka's Green Bond Allocation and Impact Report is a testament to the bank's commitment to sustainability and its proactive approach to addressing climate change. It’s important to note that Tatra banka profiles itself as a leading green bond issuer on the Slovak market, having issued more than EUR 1 billion of green bonds to date. The latest published Green Bond Allocation and Impact Report dated as at 31 December 2023, covers the EUR 741 million green bond portfolio, which represents a significant investment in projects that are designed to reduce environmental footprints and promote sustainable development. Achieving annual emission savings of approximately 60,611 tons of CO₂ equivalent is not just a numerical milestone, but reflects the bank's long-term vision of fostering a greener, more sustainable future.
This accomplishment aligns with Tatra banka's strategic objectives to integrate sustainability into its core operations and financial products, thereby positioning itself as a leader in responsible banking. By focusing on impactful investments, Tatra banka is not only contributing to global efforts to combat climate change, but also setting an example for other financial institutions to follow.
To be more specific, the projects financed by the bond proceeds include green buildings, renewable energy, and clean transportation. 69% of the CO2 emissions saving comes from corporate real estate projects, 25% from renewable energy projects, and 6% from green retail mortgages.
👉 The TABI application, aimed at fostering financial literacy among children, is an innovative approach to engaging the next generation in responsible financial behavior. Could you give us an overview of how the application works and share insights into the initial feedback from customers?
The TABI application is a sophisticated tool designed to enhance financial literacy among children, providing them with the foundational skills needed for responsible money management. This innovative app offers an engaging platform where children can learn essential financial concepts such as saving, budgeting, and spending through interactive games and educational modules.
Notably, the educational section of the app can be used by children without having a bank account, allowing parents to decide when to involve their children in managing real money by creating a child account. Impressively, more than 40% of children using the app are actively saving, and three-quarters of them log in regularly. In just one week, more than 30,000 educational games were played, highlighting the app's popularity and effectiveness. Parents can actively participate by setting allowances, monitoring their children's financial activities, and guiding them through various money-related tasks. With features such as setting savings goals and expense tracking, TABI makes the learning process both practical and enjoyable.
This approach not only educates children, but also encourages the development of positive financial habits that will benefit them throughout their lives. Overall, the TABI application becomes a valuable tool in fostering financial literacy through innovative design and educational content.
👉 As sustainability continues to reshape the financial landscape, what are Tatra banka’s strategic priorities for expanding its portfolio of sustainable financial products? Additionally, how does the bank plan to anticipate and adapt to emerging trends and regulatory developments in the realm of sustainable finance?
As sustainability increasingly influences the financial sector and the life of our clients, Tatra banka is strategically focused on expanding its portfolio of sustainable financial products to meet market demand. As stated above, the latest addition to our portfolio was the ESG Deposit. The bank's future prospects include continued support for green bond offerings and sustainable financing.
To stay ahead of emerging trends and regulatory developments in sustainable finance, Tatra banka is committed to meeting the continuous market needs. The bank keeps ensuring its products and frameworks are aligned with the international standards of sustainability. In order to maintain its momentum in responsible banking and contribute to a more sustainable economic future, the bank operates in accordance with the internationally recognized environmental management standard ISO 14001:2015.
Additional information on the bank’s sustainability performance and strategies can be found in the bank’s Annual Report, which includes consolidated sustainability reporting in accordance with the ESRS standards. Tatra banka was the first company in Slovakia to disclose its sustainability reporting in line with CSRD requirements.
👉 In addition to supporting initiatives to combat climate change, Tatra banka has long been known for its social support in various areas, especially in the fields of art and education. Could you tell us more about this?
Through its sponsorship activities and the Tatra banka Foundation, Tatra banka has been a committed supporter of Slovak arts, education, and innovation for more than two decades. In 2024, the bank continued its long-standing partnerships with the Slovak National Theatre and the Slovak National Gallery, enriching the gallery's collections with contemporary Slovak art, including works by Juraj Gábor.
In addition, Tatra banka co-founded the Kempelen Institute of Intelligent Technologies, underscoring its commitment to advancing digital education. The bank also supported the Academy of Fine Arts and the Skyro School, the first high school in Central Europe dedicated to teaching AI tools.
In 2024, Tatra banka and its foundation supported 304 projects, individuals, and organizations with nearly EUR 1,900,000. This support extended to institutions like the Academy of Performing Arts and events such as the Viva Musica festival and TEDx Bratislava, highlighting the bank's role in fostering cultural and educational growth in Slovakia.
Furthermore, the 29th annual Tatra banka Art Awards honored the most significant artistic achievements of Slovak artists in categories such as theater, fine arts, literature, design, audiovisual, and music, showcasing the bank's ongoing commitment to celebrating and promoting Slovak art and culture.