BayernLB

Sustainability standards in the context of finance

World Bank standard as a basis

BayernLB complies with the environmental and social standards recognised by the World Bank for all relevant financing for which the intended purpose is known. These standards specify comprehensive requirements for the protection of the environment and compliance with labour law and human rights, for example in large infrastructure projects.

Since very wide-ranging legal regulations apply in Germany on the responsible management of the environmental and social effects of projects, monitoring compliance with the relevant national legislation represents the minimum standard for project finance there. More extensive checks relating to international standards, e.g. World Bank requirements and the Equator Principles, may be carried out on a case-by-case basis.

Provisions and exclusion criteria for controversial issues and industries

BayernLB has developed guidelines which exceed World Bank standards for particularly sensitive sectors and issues. BayernLB's own exclusion criteria exclude certain types of financing, such as the construction of new coal-fired power plants, the extraction of oil sands and the use of fracking. Clear guidelines define the criteria for other types of finance. The guidelines cover earmarked financing, for example relating to project finance, and also general corporate finance, such as operating loans. Infrastructure directly connected with projects is also taken into account for earmarked financing.

Guidelines are reviewed regularly and updated as necessary, for example in response to new technological developments. BayernLB also carries out ongoing analysis to determine whether any corresponding regulations are needed for other sectors and issues.

Finance experts at BayernLB are currently drafting guidelines for the following sectors and issues. Implementation of the guidelines will be supported by BayernLB’s sustainability management.

  • Nuclear power
  • Forestry management
  • Gambling
  • Coal mining & consumption
  • Oil & gas
  • Arms manufacture