ESG sustainability ratings: BayernLB enjoys an above-average rating.

Sustainability ratings – independent and transparent

Investors are paying increasing attention to sustainability performance

Between 60 and 70 percent of institutional investors these days look carefully at whether the issuer of the shares or bonds in which they are investing their capital, and thereby including in their portfolio, is giving active consideration to social and environmental issues. Their motives range from considering their objectives and values even in terms of their capital investments – for example church-related investors and charities – to believing that consideration of sustainability criteria can have a positive effect on the risk-return profile of a capital investment. A number of empirical studies support this hypothesis.

Comprehensive sustainability check by ratings specialists

In the light of this already high and ever-increasing market share of sustainable investors, it is becoming increasingly important for issuers to qualify their securities as sustainable capital investments. This requires a good performance in the sustainability ratings of specialised ESG rating agencies. They provide institutional investors, or the investment managers they have instructed, with information on the sustainability performance of issuers, which they need to implement their sustainable investment strategy.

The sustainability ratings cover 150 or more individual criteria that refer to all areas of business activity, including measures for corporate environment protection, the environmental quality of products, dealings with employees and suppliers and social commitment. When compiling their catalogue of criteria, good ESG rating agencies take account of the various challenges relating to sustainability faced by individual industries.

BayernLB – above average in the sustainability ratings

The leading ESG rating agencies confirm that BayernLB's commitment to sustainable development is above average when compared with the industry as a whole. For example, the BayernLB Group has achieved a top 10 position in the sustainability rating issued by ISS ESG, which rates a total of 95 international banks. ISS ESG has awarded the Group the prestigious Prime Status in recognition of this performance. This is given exclusively to banks which work particularly hard to achieve sustainable development.

According to the assessment made by ISS ESG, the subsidiary bank DKB has also put in an outstanding performance. Since 2015, the subsidiary has been rated separately and is currently rated “B”, this being the best rating for the industry. It is thus awarded the accolade of “Industry Leader”. Förderbank BayernLabo is also rated separately and also qualifies for the top status.

As at Rating Ranking/ Investment Status Benchmark
(sector average)
12/2020 C+ "Prime" -
Vigeo Eiris
As at Rating Ranking/ Investment Status Benchmark
(sector average)
04/2021 54 14 out of 97 -
As at ESG
Risk Rating
Ranking/ Investment Status Benchmark
(sector average)
07/2021 24.9 95 out of 417 -
As at Rating Ranking/ Investment Status
(sector average)
10/2021 A sector average A