OTP BANK offers clients access to "green" programs with additional financial incentives
The integration of ESG standards into OTP BANK's own activities allows not only to improve internal processes, but also opens up access to "green" programs with additional financial incentives for clients, which are implemented jointly with international partners. This told ESG manager of the Bank Maksym Oliynyk during round table “ESG-transformation of banks: challenges, opportunities and prospects”, organized by Financial Club.
“More and more companies are implementing ESG in their activities. OTP BANK, which has been actively working in this direction since 2021, is ready to support Ukrainian enterprises that have embarked on a course for sustainable development through responsible business. In particular, we offer "green" products with the possibility of cashback and other financial incentives. Some of these programs are funded by international financial institutions that actively invest in supporting sustainable development in Ukraine. But this is not the only advantage that cooperation with the Bank gives companies: we care about our reputation as a responsible player in the market, carefully assess ESG risks, thereby reducing threats related to environmental and social impacts. For clients, this means reducing the risk of losing funds and working with a responsible partner. We are open in our financial operations and reporting, and this allows stakeholders to see where and for what we are directing resources," - said M. Oliynyk.
As the ESG manager noted, OTP BANK considers ESG as an effective tool for constant and continuous improvement of its own work, and also encourages clients to embark on the path of a "green" economy and reduce the negative impact on the environment and society.
OTP BANK provides special support for projects to increase the energy independence of Ukrainian businesses. Co-financing programs with international partners, in particular, with the European Bank for Reconstruction and Development (EBRD), allow enterprises to receive an additional advantage in the form of cashback of up to 15% of the project cost. There is a possibility of financing within the framework of the state program "Affordable Loans 5-7-9%", and if the company does not fall under the program criteria, the Bank, within the framework of the implementation of the Memorandum on lending for energy infrastructure restoration projects, offers special conditions at a preferential rate of 13.5%.
Maksym Oliynyk noted that the National Bank has also begun implementing ESG principles in the banking sector of Ukraine. At the same time, OTP BANK has been moving in this direction for several years in a row, focusing on the standards of the World Bank, the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and other organizations. The financial institution has already openly demonstrated the results of such activities. "This year we reported according to ESRS standards and also passed a non-financial audit conducted by EY (Ernst & Young) and will be published based on the results in 2024. For the Bank, ESG is an opportunity to create value and contribute to a sustainable future by offering responsible, ethical and safe financial solutions," he added.
To remind, Based on the results of the relevant comprehensive assessment, the Entrepreneurship Development Fund concluded that the environmental and social management system of OTP BANK meets World Bank standards.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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