Business and Biodiversity Initiative

 With KfW Bankengruppe’s (KfW) environmental and social principles, high standards are set that require all of the parties involved to act “sustainably”. KfW assesses the ecological opportunities and risks of all projects and programmes it supports before making a decision on whether or not to provide financing. The Group takes a particular look at where the weak points in the environmental protection system lie to help partners solve environmental problems.

If projects are likely to result in an unacceptable environmental burden or social disadvantages, they are not considered for financing. This is why binding sustainability guidelines have been developed for all of the KfW’s business areas, setting out the requirements that the specific business areas have to fulfill when assessing how environmentally and socially sound particular projects are, as well as the processes required to implement them.

The sustainability management system is the structural umbrella for KfW Bankengruppe’s environmental and social commitments. It sets out the organisational framework, duties and responsibilities required to ensure sustainable products and processes. This sustainability management system also sets the framework for the implementation of the Leadership Declaration signed as a member of the ‘Biodiversity in Good Company’ Initiative.

KfW not only promotes environmental protection, it also demands it of itself. Extensive in-house environmental protection measures are implemented by an internal network of specialists. They ensure that energy and material flows are tracked, analysed and optimised in a systematic manner at all of the bank’s locations. To ensure that its employees act with as much environmental awareness as possible internal communication informs on in-house environmental protection issues. The package of measures includes extensive reporting on the intranet, training courses for all new employees and the provision of regular information to key bodies and target groups, e.g. the staff councils and operational management companies. Furthermore, an average of one trainee workshop per year is organised on issues relating to in-house environmental protection.

Biological Diversity: KfW Bankengruppe Involvement

Preserving biological diversity demands attention, money and international cooperation to combat the destructive exploitation of tropical rainforests, African savannahs as well as ocean ecosystems. Preserving the richness of species is vitally important for surviving on earth.

KfW, on account of the German government, has invested around € 1.4 million since 1990 into projects that preserve biodiversity. Many of their activities have already achieved great success. The local population is an integral part of any efforts to preserve biodiversity, as they not only directly profit from it, but they are also key actors in accomplishing sustainable change. An example of this concept is clearly depicted through KfW’s project in the Amazonian rainforest in Brazil. Here, KfW has been able to do its part to constrict areas being ruthlessly exploited from 20,000 km2 to 7,500 km2. Alongside newly created comprehensive protection areas, and monitoring for slash and burn and illegal logging activities, new sources of income are being offered to the local inhabitants. KfW is engaged in similar activities to protect endangered ecosystems such as tree savannahs in Africa and virgin forests in the Caucasus and Siberia.

The need for action is not only bound to dry regions on land. Warming, exploitation and contamination of the ocean is also rapidly endangering underwater habitats. Such destruction is heavily associated with serious consequences for mankind’s food sources. The giant coral reefs are the foundation of aquatic life. Imbalances in the health and stability of these offshore habitats can drastically influence fish stocks. The reality is that such reefs are instable because of rising temperatures, industry waste water, tourism, and fishing practices utilized by commercial fishers. Since 2010 KfW has been supporting the preservation of the world’s second largest coral reef – the Meso American Reef – off the Central American coast.

The preservation of biological diversity plays an integral role in KfW’s societal engagement. KfW cooperates with select partners and through these emphasizes the basic principle that making a global impact means first taking responsibility at home.

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