The Hungarian Bankholding has developed its environmental, social and governance (ESG) strategy. The objectives of the Hungarian banking group include financing investments that contribute to sustainability, reducing the company's ecological footprint and further increasing the number of female executives.

The aim of the Hungarian Bankholding Ltd, one of Hungary’s largest banking groups and a market-defining actor, is to take the lead in the domestic banking sector in terms of sustainability. As a first step towards this end, the banking group has created its ESG strategy, the Hungarian Origo news portal reports.

„The banking sector, as the driving force and financier of the economy, plays a particularly important role in achieving sustainability goals. The banking group is committed to playing a key role in creating a sustainable economy in Hungary,”

said Andras Puskas, chief advisor to the chairman of the Hungarian Bankholding Ltd.

Strategy built on stable foundations

The integration of ESG aspects into banking operations is increasingly becoming a priority in global financial activities. The ESG criteria, used internationally, aims to monitor and encourage companies to operate in a socially and environmentally sustainable manner.

The member banks of the Bankholding – Takarekbank and MKB Bank, which joined Budapest Bank through a merger – have launched a number of exemplary initiatives in recent years that have provided the basis for the group’s ESG strategy. Budapest Bank’s Green Programme, the MKB group’s Sustainability and Climate Strategy and the Takarek Mortgage Bank’s Green Covered Bond Framework are all the results of their existing strong commitment to sustainability.

The objective is carbon-neutral operation

The Hungarian Bankholding’s ESG aspirations stem from its role as a responsible financial institution on the one hand, and from its role as a responsible corporate group on the other.

“We consider it important to provide a strategic framework in line with our existing and future initiatives. We not only want to comply with the current regulatory requirements, but we also want to meet the future needs of consumers. In fact, we endeavour to actively shape attitudes among our customers and employees,” Andras Puskas added.

As a key market player, Hungarian Bankholding prioritises the agricultural sector – which contributes to Hungary’s food security – as well as the renewable energy sectors and the financing of environmentally friendly real estate. ESG risk considerations will be given greater emphasis in the assessment of loan applications.

The member banks of Hungarian Bankholding will continue to offer ESG investment funds and plan to increase their share in the portfolio of products.

The banking group plans to incorporate as much green energy as possible into its energy mix, and will also review the energy needs of branches and office buildings. An important element of the ESG strategy is to achieve carbon neutrality, which includes assessing the ecological footprint of the banking group and then developing a detailed plan for continuously reducing it.

Hungarian Bankholding is committed to the well-being of its employees and attaches great importance to the preservation of their physical and mental health. The group plans to launch various programs to increase ESG awareness and knowledge of employees to shape perspectives. In terms of the number of female senior executives, the banking group is still one of the market leaders and is committed to further increasing the proportion of female executives under the strategy.

International and domestic environment add additional support

The international and domestic legal regulations and requirements prescribe clear and increasingly strict conditions for market participants regarding sustainability. In line with EU regulations, the Hungarian National Bank (MNB) has become more active in recent years in making the domestic financial system and, indirectly, the entire economy climate-friendly. There is also a growing consumer expectation for banks to be as sustainable as possible, to pay attention to the environment and to contribute to a more liveable future.