not much time left to reach 55 percent reduction

Go for 55 percent! – this was the goal advocated by the European Union in the 2015 Paris Climate Agreement which aims to reduce greenhouse gas emissions by 55% by 2030 compared to 1990, thus helping to keep global warming below 1.5°C. However, according to the March 2024 report of the Carbon Disclosure Project, merely 20% of European companies are taking steps to make their products, suppliers and business strategies sustainable. So it is no wonder that experts believe that only 2% reduction can be realistically achieved.

“We only have six years left to reach the EU target for reducing GHG emissions. All economic players must contribute to that, because we can only create a sustainable and more climate-resilient economic environment through joint effort, said Guy Libot, CEO of the K&H Group. “Financial institutions play a pivotal role in this, as they can advance the sustainability transition through lending policies, as well as investment and retail products. The 2023 Sustainability Report of K&H shows that we place a strong emphasis on supporting renewable energy production in our lending. As to investments, we encourage our clients to choose our responsible funds. In addition, we help our customers make data-driven sustainability decisions with a range of green banking products, and with unique calculators that track emissions and energy use. Our innovative digital developments provide our customers with a convenient and seamless banking experience, while also helping them reduce their carbon footprint by decreasing paper use and travel.”

progress report in numbers

K&H customers are also open to sustainable solutions:

• the K&H energy calculator helped 3,000 people assess their real properties and get guidance for optimal renovation
• K&H has so far disbursed a total of HUF 4.5 billion in green housing loans for making homes more sustainable
• K&H granted a total of HUF 200 billion in loans classified as green by various frameworks amounts
• clients have invested more than HUF 500 billion in responsible funds by the end of 2023
• in 2023, K&H green car leases accounted for 22 percent of new car leasing contracts
• contracts for new corporate green loans amounting to more than HUF 70 billion were signed last year
• in 2023, 33 primary producers participated in the K&H green seeds programme; when taking out an agricultural loan, each of them received a 25 kg seed packet which helps maintain biodiversity and protect soil
• agricultural customers can also calculate their carbon footprint with the K&H agricultural CO2 calculator

The financial institution’s environmental social responsibility programmes continued last year: in two programs – the K&H Cooling Groves and the Animal Friendly Groves launched at the end of 2023 – green parks are created in the backyards of 130 schools and kindergartens, where children can learn about the benefits of plants and the life of animals. It should also be noted that in 2023, K&H entered into a partnership with WWF Hungary to support the rehabilitation and biodiversity of natural habitats.

The 2023 Sustainability Report of K&H Group can be viewed here: