UmweltBank : Read here

Sustainability and

Annual Report

2021

Almost

25,000

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

18th

consecutive dividend payment in 2021

300

employees.

45%

of managers are women.

More than

1,200,000

tonnes of CO avoided in 2021.

5.9 billion

total assets in 2021.

900

people live in the ecological and aordable residential projects financed in 2021.

2021

Letter from the Management Board

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1Germany's greenest bank

About UmweltBank

Investing and providing for retirement sustainably

Financing for environmental projects

Ecological participating interests

Germany's green bank share

Responsible corporate governance

Dialogue with stakeholders

Analysis of the main sustainability aspects

3	People at UmweltBank
Management
Supervisory Board
Environmental Advisory Board

Sustainable personnel policy

2Contribution to the environment

Environmental management system

Environmental performance

Sustainability targets

Report of the Environmental Advisory Board

Contact the Sustainability Management

Validation of the environmental statement

4 Annual Report

Report of the Supervisory Board

Management report

Balance sheet

Income statement

Notes to the financial statements

Independent auditor's report

About this report

GRI content index

Publishing details and contact

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2021

25 years of UmweltBank:

founded in 1997, made for the challenges of today

Dear readers,

2022 is a special year for us. 25 years ago - on 29 January 1997 - UmweltBank was granted a full banking licence and thus the permission to conduct banking business. The 30 initial employees have since grown to 300. To date, we have financed nearly 25,000 sustainable projects throughout Germany. And it just so happens that we are one of Germany's most profitable banks. That is not a given, particularly when we think back to how sceptical the financial world - from other banks to the supervisory authorities - regarded the founding of the green bank.

Today UmweltBank is a pioneer in a world in which everybody is talking about sustainability. And the green bank's core topics are more topical than ever before. The expansion of renewable energy sources and the creation of aordable and ecological accommodation are essential building blocks for the sustainable transformation of our society. And the current crises have further accelerated this development.

We view sustainability through dierent eyes

Our vision is to contribute to a world worth living in. For us, the cornerstones of such a world are peace, freedom and democracy. We are shocked by the inhuman and brutal attack of the Russian Federation on Ukraine. What we considered unthinkable became bitter reality on 24 February 2022. A war broke out in the middle of Europe, and there is no end in sight. The humanitarian, economic and geopolitical consequences will be enormous.

The war also highlights our own vulnerability. We continue to purchase huge amounts of oil and gas from Russia every day. We have become dependent on Russian energy over the past decades. We must now quickly change course and view renewable energy sources through dierent eyes. For not only are they important for environmental protec - tion, they also mean a bit of freedom. UmweltBank alone has funded more than 13,000 photovoltaic and over 400 wind power projects so far. And we will continue to do so.

We continue to grow sustainably

Despite the challenging environment, UmweltBank performed very well last year. Total assets increased by 20% to 5.9 billion. One driver was our core business - the financing of environmental projects - in which we were again very successful. In 2021 alone, the Bank financed over 600 sustainable projects with a volume of 845 million - a new record. The securities business also developed positively. The volume of securities under management at the end of 2021 was nearly 950 million, an increase of over 250 million since the beginning of the year. Contributing to this development was our first own fund, UmweltSpektrum Mix, which after just 24 months has a fund volume of over 100 million. We want to continue this success story with our two new UmweltSpektrum funds 'Mensch' and 'Natur'.

Overall, the Bank recorded an increased interest, financial and valuation result in 2021, as well as a significantly increased commission and trading result. On the other hand, there were higher expenses for personnel and administration. Overall, net income rose slightly to 19.4 million, after 18.5 million in the previous year. With a cost/income ratio of 47.7%, UmweltBank continues to be one of Germany's most ecient banks. Our shareholders benefited from this, such as with the 18th dividend payment in a row.

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

For 25 years we have been proving that ecology and economy can be an excellent combination. We measure our positive impact on people and the environment through our contribution to the United Nations Sustainable Development Goals (SDGs). Three examples:

1. SDG 13 - Climate Action: In total, UmweltBank contributed to avoiding over 1,200,000 tonnes of CO in 2021. This is roughly equivalent to the annual CO emissions of the inhabitants of a large city like Erlangen or Jena.
2. SDG 11 - Sustainable Cities and Communities: Last year alone, UmweltBank fi- nanced aordable and ecological homes for over 900 people. For another 350 people, care places were created in schools, daycare centres and nursing facilities.
3. SDG 5 - Gender Equality: 57% of the employees of UmweltBank are female while 43% are male. Our share of women in leadership positions is 45%.

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2021

We are getting fit for the next 25 years

We want to continue UmweltBank's success story over the next 25 years. The foundation for this is a high-performance IT infrastructure. After an extensive review phase, we decided to change the core banking system. Over the next two years, we will be setting the course for the digital future of the Bank with this investment. The new infrastructure enables improved user-friendliness, more digital services and new products. This will make UmweltBank even more attractive for both new and existing customers.

The prospects for our core business are also attractive: loans for solar and wind farms as well as ecological real estate. The new German government is clearly committed to climate protection and is accelerating the expansion of renewable energy sources in particular. The coalition agreement calls for the annual expansion of photovoltaics to be 15 GW by 2030. In 2021, the expansion was just roughly 5 GW. In addition, the coalition wants to designate 2% of the land area in Germany for wind power. Currently, this figure is only around 0.5%. Planning and approval procedures are also to be significantly accelerated.

Over the past 25 years, UmweltBank has undergone impressive growth. We are certain that the best years are still to come. With organic growth, modern IT and political backing, UmweltBank will achieve its full potential in the coming years.

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 Bai

Jürgen Koppmann

Jürgen Koppmann	Goran Baic	Heike Schmitz
Spokesperson of the Manage-	Member of the Management	Chief Representative
ment Board	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 & Analytics
Internal Audit	Financing Private Customers	Back Oce Credit
Information Technology &	Participating Interests	Legal & Compliance
Project Management	Personnel	Central Services &
Management Board Support		Real Estate
Oce	Treasury & Sustainability
Customer Care & Service	Marketing & PR

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. Link to the company history: www.umweltbank.de/25jahre

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