Another step towards a low-carbon economy

Financial institutions have an important role to play in the transition to sustainability, not only through their own operations but also through the loans and investment opportunities they provide to households and businesses to drive the low-carbon economy. K&H's Sustainability Month has also raised awareness of the importance of protecting the environment and is contributing to an innovative future with digital financial solutions, according to the K&H Group Sustainability Report 2022.

Over the past year, both households and businesses have been particularly concerned about how to reduce their energy consumption, which can not only cut utility bills but also reduce the burden on the environment. At the same time, making the transition to sustainability requires significant investment, in which loans from banks play a key role. " We are convinced that everyone must contribute to the fight against climate change, and we see the role of the financial sector as key. In 2019, K&H, as a member of the KBC Group, made a major commitment to climate action by being one of the first banks to join the CCCA initiative (The United Nation’s Collective Commitment To Climate Action), a UN convention of financial institutions. In it, we committed to adapt our lending portfolios in line with the Paris Agreement to reflect and finance a low-carbon, climate-change resilient economy. This is necessary to keep global warming below 2°C, aiming at 1.5°C.," said Guy Libot, CEO of K&H Group.

Sustainable finance

The K&H Group's Sustainability Report 2022 shows that the Group has made significant progress in reducing its carbon footprint in its own operations and has developed innovative financial products that enable customers to operate and live a climate-resilient lifestyle. In line with the Hungarian National Bank's green capital requirement discount scheme, K&H was the first in the market to introduce a green mortgage loan that is available not only for new but also for second-hand homes, supporting sustainable development and providing an alternative to escalating utility bills. The uptake of electric cars is supported by K&H green car leasing, which, like hybrid cars, can be covered by favourable compulsory vehicle insurance. In addition, responsible investments are becoming increasingly popular: 11.2 percent of all capital invested at the financial institution is already contributing to a more sustainable future.

Raising awareness of sustainability

Last year, K&H also dedicated a special month to sustainability, when it raised awareness of the need to protect our planet through a series of unique programmes. In September, it turned off the exterior facade lights in 200 of its buildings, introduced energy-saving measures and launched the K&H Cooling Groves programme, under which a total of 555 trees and 1,110 shrubs will be planted in 100 educational institutions across the country by the end of May 2023.

Digital assistant to advise

Eco-friendly online banking is becoming increasingly popular among K&H customers: 88% of them are digitally active and make 3 million contactless payments every month. Last year, half of all bank account openings and 100 percent of personal loan applications were made online. And the latest innovative solution, a personal digital assistant called Kate, provided information to more than 154,000 customers last year.

Equal opportunities to do what they do best

K&H strives to create an environment not only for society, but also for its employees, where they can thrive and build a long-term career. Professional, personal and language skills development programmes ensure development, and equal opportunities are a key focus in recruitment, promotion and management training. As a result, the proportion of women managers in the Group was 45% at the end of last year.

The K&H Group Sustainability Report 2022 can be found here.


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