UmweltBank : Nachhaltigkeitsbericht 2022 in Englisch

Sustainability

and

Annual Report

2022

Almost

25,000

environmental projects financed since 1997, from wooden houses to wind farms.

19th

consecutive dividend payment in 2022.

332

employees.

44%

of managers are women.

Approximately

1,160,000

tonnes of CO2 avoided in 2022.

€6 billion

total assets in 2022.

1,000

people live in the ecological and affordable residential projects financed in 2022.

2022

	Letter from the Management Board	6
	Germany's greenest bank
1
About UmweltBank	12
Investing and providing for retirement sustainably	22
Financing for environmental projects	25
	Sustainable investments	37
	Germany's green bank share	40
	Responsible corporate governance	44
	Dialogue with stakeholders	56
	Analysis of the main sustainability aspects	58

People at UmweltBank

3	Member of the Management Board	100
Supervisory Board	103
Environmental Advisory Board	109
	Sustainable personnel policy	114

Contribution to the environment

2	Environmental management system	64
Environmental performance	68
Sustainability targets	88
	Report of the Environmental Advisory Board	91
	Contact the Sustainability Management	96
	Validation of the environmental statement	96

Annual Report

4	Report of the Supervisory Board	126
Management report	134
Balance sheet	174
	Income statement	176
	Notes to the financial statements	178
	Independent auditor's report	203

About this report	211
GRI content index	212
Publishing details and contact	217

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2022

to enable greater transformation.

Dear readers,

The year 2022 is a turning point for all of us in many respects. A war causing suffering and destruction has been raging in Ukraine for more than a year, with no end in sight. However, there are signs that a new era is dawning in Germany - especially in security and energy policy. The two are closely intertwined, as dependence on fossil fuels has made the country vulnerable. The federal government must now push ahead even faster with the expansion of renewable energies. For not only are they important for environmental protection, they also mean a bit of freedom. That is why we at UmweltBank have been financing wind power and photovoltaic projects for over 25 years - and will continue to do so in the future.

Monetary policy was also marked by a turnaround in 2022. In July, the European Central Bank raised interest rates for the first time in around ten years. Within less than 12 months, the key interest rate rose from 0.0% to 3.5%. Savers, but also banks, have been waiting a long time for the low-interest phase to end. The speed and level of the interest rate hikes are posing challenges in the short term, however. In the lending business, we hold a large portfolio of long-termfixed-rate loans with low interest rates. Our savings deposits, on the other hand, are mostly in accounts with short maturities and currently rising interest rates. Although the Bank can grant new loans and extensions at significantly higher interest rates than a year ago, the interest margin will only benefit from this in the medium to long term.

The past year also held a few surprises in store with respect to sustainability. For example, the Eu- ropean Parliament classified nuclear power and gas within the EU taxonomy as sustainable under certain conditions. And even the arms industry asserted a claim to be considered sustainable. Many people do not agree with this. We are making no compromises and continue to adhere to our strict sustainability criteria.

25 years of sustainable growth

Despite the challenging environment, UmweltBank performed very well last year. Total assets increased slightly to €6 billion. Overall, the Bank recorded a significantly increased interest, financial and valuation result in 2022, as well as a commission and trading result at the previous-year level. On the other hand, there were higher expenses for personnel and administration. Overall, UmweltBank ended the 25th year of its existence with a pre-tax profit of €39.2 million, compared to €38.1 million the previous year. With a cost/income ratio of 50%, UmweltBank continues to work very efficiently.

You, dear shareholders, should also benefit from this. We therefore propose a dividend of €0.33 for the 2022 financial year - the 20th distribution in a row.

Three focused business areas with plenty of potential

UmweltBank's core business is the financing of environmental projects. In addition, the Bank is successively expanding two high-growth business areas: investments in the equity of sustainable real estate and renewable energy projects via the subsidiary UmweltProjekt GmbH on the one hand and the green funds of the UmweltSpektrum brand on the other. All three pillars should make a significant contribution to commercial success in the future.

With a volume of €3.7 billion, loans for renewable energy projects and sustainable construction projects form the core of UmweltBank. The projects financed are ecologically as well as socially valuable, yet at the same time harbour low risks and offer high returns. In 2022 alone, UmweltBank financed around 400 sustainable projects with a volume of over €600 million. We also see excellent opportunities for our core themes in the future. The expansion of renewable energy sources and of affordable and ecological accommodation are essential building blocks for the sustainable transformation of our society.

In addition, we consider the securities business to be a growth area. We now offer three in-house funds under the UmweltSpektrum brand. UmweltBank guarantees uncompromising sustainability in the selection process, while experienced fund companies are responsible for economic management. In three years, the fund volume has grown to over €130 million. in 2022, the funds already contributed around €1.7 million to the result. We want to continuously expand this in the coming years.

UmweltBank also invests in sustainable and high-yield projects. The wholly owned subsidiary Umwelt- Projekt GmbH bundles these investments with a current volume of around €750 million. The solar, wind power and residential projects throughout Germany largely remain in the portfolio for the long term and provide increasing recurring income. The project portfolio will be further expanded in the years ahead. Sales of projects are also possible given attractive market conditions. For example, the sale of a wind farm in 2022 resulted in special proceeds of around €20 million.

We are increasing our contribution to a world worth living in.

For more than 25 years we have been proving that ecology and economy can be an excellent com- bination. In total, UmweltBank contributed to avoiding over 1,160,000 tonnes of CO2 in 2022. This is roughly equivalent to the annual CO2 emissions of the inhabitants of a large city like Erlangen or Jena. Last year alone, the Bank financed affordable and ecological homes for over 1,000 people. For another 350 people, care places were created in schools, daycare centres and nursing facilities. Gender justice is also close to our hearts. In 2022, 56% of the employees of UmweltBank were female while 44% were male. Our share of women in leadership positions is 44%. Last August, Heike Schmitz became the first

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2022

woman to join our Management Board.

We are getting fit for the next 25 years

UmweltBank has grown strongly over the past 25 years. The demands of our clients, the staff and the supervisory authorities have also grown over this same time. To do justice to all these demands, we are launching an extensive transformation process. With the umwelt.neo project, UmweltBank is setting the course in 2023 and 2024 for continued successful growth.

The core of umwelt.neo is the migration of the core banking system. In the current financial year alone, we will invest around €10 million in this. In addition, we are reviewing our range of products and services, as well as existing structures and processes. For the UmweltBank of tomorrow combines proven strengths, such as a focused product world and lean structures, with a modern and high-performance IT infrastructure. The investments are extensive, but they are necessary and will pay off - for customers, for our employees and, in the medium to long term, for you as well, dear shareholders. Because after the two transition years, we will switch back into growth mode with a sharpened strategy beginning in 2025. Thank you for your trust and loyalty. Continue to accompany UmweltBank and join us in shaping a world worth living in for us and future generations.

Your UmweltBank Management Board

Goran Bašić	Jürgen Koppmann	Heike Schmitz
Member of the	Spokesperson of the	Member of the
Management Board	Management Board	Management Board

Jürgen Koppmann	Goran Bašic´	Heike Schmitz
Spokesperson of the	Member of the Management Board	Member of the
Management Board		Management Board
Areas of responsibility:	Areas of responsibility:	Areas of responsibility:
Customer Care &	Financing Energy and Infrastructure	Accounting,
Account Management	Projects	Taxes & Operations
Securities & Pensions	Financing Real Estate Projects	Reporting, Risk &
Information Technology &	Financing Private Customers	Analytics
Project Management	Investments	Back Office Credit
Customer Care & Service	Legal & Compliance
Personnel
Marketing & PR	Organisational Management
Treasury & Sustainability
	Internal Audit

25years of UmweltBank

Learn more about the exciting development of UmweltBank in its multimedia company history. It tells the story of the Bank using data, facts and figures, but also photos and personal interviews with contemporary witnesses. To the company history: www.umweltbank.de/25jahre

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