Banks Will Offer More Favorable Loans to Those Who Follow Green Business Policies

Banks have taken on the role of guiding companies towards sustainable activities. They do this by offering more favorable interest rates on loans for projects that follow green business policies. This was stated by Nikolina Kolarić, director of the Office for Sustainable Business at Hrvatska poštanska banka, during a lecture held at the 12th International Conference on Controlling.

Environmental risk is the biggest global risk in the next ten years, which is why the EU has provided a regulatory framework aimed at reducing gas emissions into the atmosphere. Sustainability needs to be removed from the context of politics and ingrained in everyone’s consciousness. For example, a company can now decide not to cooperate with a supplier that pollutes the environment.

Croatia is in the process of adaptation, and we should be in the process of implementation, she added, which is why we are in a time crunch. Companies should first commit to a zero-emission policy in their business practices. This means, she emphasized, that a business strategy can no longer proceed without sustainability.

The Office for Sustainable Business at HPB was established three years ago.

– We identified 70 new business processes in the bank when we committed to this strategy. The real question is how to organize the departments that will work on these tasks. In a decentralized model, each organizational unit has a head, and above them is a coordinator of the administration. However, this often leads to problems, as it is difficult to align the needs of various departments, which slows down task resolution. From my experience, centralized management is much more efficient – said Kolarić.

She spoke to participants about what HPB has done so far regarding sustainability and shared the experiences they have faced. It was a strategic commitment and the foundation for business transformation. An organizational structure has been established, and responsibilities defined to effectively implement the business adaptation process and initiate positive changes.

– We are developing a data collection model for quality data management, analysis of sustainability factors, and comprehensive reporting. We are strengthening knowledge and internal expertise in the field of sustainability and strive to provide adequate training to clients and other stakeholders. In this regard, I advise everyone to develop internal expertise, as it is much more cost-effective in the long run than hiring an external consultant – said Kolarić.

HPB collaborates with organizations that gather companies with the same goal, and it reports on its progress clearly, transparently, and consistently. Principles of sustainability related to the ethical code and the policy of managing environmental, social, and governance factors have also been defined. In this sense, there are principles for suppliers, for sponsorships and donations, and for users of the bank’s products and services. Additionally, she mentioned principles of diversity and non-discrimination, protection of human and children’s rights, and a framework for developing sustainable products.

In the upcoming period, HPB will further focus, she announced, on the environment, society, and governance.