SeeNext spoke with Bilyana Mladenova – Mileva, Manager ESG Strategy at UniCredit Bulbank, about the lender’s ESG strategy and its implementation. Mrs. Mladenova-Mileva was appointed as Manager ESG Strategy in March 2023. She has extensive experience of more than 20 years in the financial sector in Bulgaria. From 2016 to 2023 she was Head of Corporate Credit Administration and Head of Corporate Development and Sales Management in one of the big commercial banks on the local market. Mrs. Mladenova-Mileva has a master’s degree in International Economic Relations from the University of National and World Economy in Sofia.
What is the key differentiator of the ESG strategy of UniCredit Bulbank?
As part of a pan-European financial group, UniCredit BulBank is fully aligned with the strategy and targets of UniCredit Group. One of the main drivers is to integrate all ESG factors into the bank’s governance, core business and processes, taking into account both the risks and the market opportunities and to provide transparency to all stakeholders. The right management of all ESG dimensions - environment, social and governance – stands at the core of our clear business targets and key strategic actions towards providing transparent results.
The ESG strategy of UniCredit is based on four main principles: to lead by example, aiming at the same high standards required of those we work with; to set ambitious ESG targets, in order to support the need for change of our clients; to provide the right conditions, knowledge and skills for helping clients and communities in managing the environmental and social transition through strategic actions; and to invest in the resources, necessary for the execution and achievement of mid-term and long-term targets, such as net zero emissions, equal pay, achieving financial prosperity and inclusion, in order to give way to a more just and sustainable society. The right combination of those four is crucial to our development.
In line with its strategy, UniCredit joined the Net Zero Banking Alliance (NZBA) in October 2021, having the target to align its loan and investment portfolios to net zero emissions until 2050, or earlier, in accordance with the most ambitious targets set in the Paris Climate Agreement.
How will you achieve this target?
We have clear business goals at both the group and local levels that are related to the financial solutions which we provide to our current and potential customers.
Moreover, we are committed to spreading awareness about ESG both internally and externally.
In this sense, we have focused internal communication aimed at engaging colleagues and constantly boosting the sustainability awareness culture across the bank. We are proud to have piloted in 2021 an internal ESG training programme which included a series of activities and partnerships, in accordance with the needs of the respective target groups. Our main partner is the Economic Faculty of Sofia University and together we created the ESG Academy. Moreover, together with Denkstatt, one of the most experienced ESG consultancy companies, we piloted internal ESG sessions for our servicing bankers, with the main goal of boosting awareness about the sustainability factors in some of the main sectors. Thus, we have prepared our colleagues to be able to support the analysis and the ESG decision-making process of the business leaders of our corporate clients.
UniCredit Bulbank also became the official partner of the faculty’s newest master’s degree, “Responsible and sustainable governance”, which aims to support Bulgarian companies, public institutions and civil organisations in their transition to a green and solidarity economy. The new Master’s has attracted a record number of candidates for the faculty. The bank demonstrated its commitment to the university and the topic of sustainable business development by covering the Master’s degree fee for all employee participants. The ESG Learning Journey is an initiative which we started responsibly, with a structured programme with all employees of UniCredit in Bulgaria. This journey will have to happen in each company and organisation. That is why our target and ambition is to gradually expand the ESG topic to our partners and clients in order to create a strong, educated and sustainable society.
We also have several external communication initiatives, starting with ESGpresso – our podcast on sustainable development for people, companies and businesses. Earlier in 2023 we launched the #GreenWednesday communication initiative on our LinkedIn page. It is focused on sharing facts and figures on ESG developments. We also support Earth hour. We are partners of Teach for Bulgaria, Junior Achievement and other reputable organisations spearheading the sustainable growth of the educational system. Above all, as a bank, we are making an impact through our financial products and services.
How do you implement the ESG strategy in your products and services?
One of the main priorities of the ESG strategy of UniCredit Bulbank is the constant development and enrichment of the ESG product portfolio. We are focused on product simplification, development of green and social financing alternatives, and financial inclusion, as well as active utilisation of guarantee schemes. The constant digitalization of our service model is part of our DNA. We have the commitment, responsibility and courage to accommodate more and more sustainable transactions in our loan portfolio, supporting investments in renewable energy sources (RES), energy efficiency, and electric vehicles. We piloted and are maintaining unique product expertise in the area of specialised insurance solutions for renewables, provided by our subsidiary - UniCredit Insurance Broker. This is a comprehensive insurance solution for the entire life of a RES project, through which the investment is fully protected no matter the stage of its development. It is part of our vision to meet and exceed customer expectations by enhancing the product mix and expanding the financing opportunities in our portfolio.
We also support small and medium-sized enterprises as well as micro companies in disadvantaged areas.
As for individuals, we created green mortgage loans and green consumer loans as well as solutions for private individuals from more vulnerable social groups, such as consumer loans for clients in retirement age and student loans.
Are there any ESG initiatives related to the bank’s day-to-day activities?
We have analysed and developed different initiatives to decrease our carbon footprint as one of our principles is to lead by example. We have already achieved the group’s plastic-free target in our main buildings. We continue to work on energy saving initiatives such as the replacement of all lightings in the bank’s premises with LED ones, contributing to around 85% of overall energy efficiency savings in 2022. In the area of green mobility our goal is to transform our fleet and to have mainly electric and hybrid vehicles as well as four EV charging stations installed in our headquarter buildings. We are making headway with our goal for completely paperless processes and are proudly contributing to the expansion of digital signing options.
In 2022, UniCredit Bulbank started to replace the current Visa Debit & Visa Gold debit cards with cards of a new generation, produced by 84% environmentally friendly materials (PLA). The initiative is being implemented in partnership with Visa in Bulgaria. The biodegradable debit cards are created by a new technology that allows for the production of a debit card with the solidity and longevity of the familiar PVC cards but, thanks to the natural materials used, they are fully degradable and do not exude toxic fumes when burned.
We remain committed to digitalisation and developing different tools to assist our clients and partner communities in navigating the environmental and social transition. Our ambition guides our daily actions to be the bank for Europe’s future.