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For WestLB, sustainability management means minimising ecological and social risks and, through this, seizing economic opportunities and ensuring the Bank's continued growth. At the same time, we want to be a role model and contribute to the economically stable, ecologically responsible and socially fair development of our society. These objectives are integral elements of our corporate strategy. All divisions of the company are encouraged to align their areas of work accordingly, both organisationally and in terms of content.

WestLB Policy for Environmental and Social Issues

The Policy for Environmental and Social Issues forms the framework for our sustainability activities and has been mandatory for all business units and all new business since 2007. It is based on internationally accepted human and employee rights and environmental standards. In 2010, the Policy was revised in cooperation with the business units and with non-governmental organisations operating in the fields of environmental protection and development and finally approved and adopted by the Managing Board in April 2011. The revision focused on the updating of the underlying standards, the inclusion of a description of reputational management and of strategies for a critical and constructive dialogue with our clients to improve our sustainable business practice.

Existing obligations resulting from its participation in national and international initiatives such as the Equator Principles remain valid.  

WestLB Policy for Business Activities Related to Coal-Fired Power Generation

As a leading bank financing projects in the energy sector, WestLB feels especially committed to progressing the change towards a sustainability-oriented energy supply. This change requires high investments in the energy infrastructure, which must be made both within a short period of time and e aimed at achieving a balance between energy and energy security and climate protection. Against this background, WestLB has revised its, “Policy for Business Activities related to Coal-Fired Power Generation”. WestLB was the first large international bank to develop such a policy to define a minimum standard in 2009. Several major banks followed this approach and defined similar minimum criteria. With the current revision WestLB now defines more justifiably country groups for each of it different minimum or exclusion criteria exist and which are applied to financings. Now taken into account, for example, are greenhouse gas emissions per capita of a given country in relation to its gross domestic product and state of economic development (UN Human Development Index), but also its energy mix as well as the changes related to this.

Policy for Business Activities Related to Offshore Oil Drilling and Production

WestLB has developed a first-of-its-kind Policy for Business Activities Related to Offshore Oil Drilling and Production defining minimum standards und exclusion criteria. The policy applied to financings requires best available technology and highest safety management standards and practices (capacity, contingency plans, maintenance practice and cycles, training of staff, ongoing monitoring etc.); both must be confirmed by an independent third party. Furthermore a detailed description of insurance coverage for accident risks, remediation measures, associated costs etc. has to be provided. Financings of exploration or production activities within the Arctic and Antarctic region are excluded.

Further Standards and Principles

In 2003, the WestLB Managing Board adopted Group-wide “Sustainability Action Areas”. They form the basis on which economic, ecological and social aspects will be integrated into all corporate activities going forward. Also in 2003, WestLB endorsed the Equator Principles, to whose development the Bank made an important contribution. These Principles have since been taken into account in all of WestLB’s project financing. The Bank has also been an active member of the Financial Institutions Initiative of the United Nations Environmental Programme (UNEP FI) since 2002. In March 2005, the WestLB Managing Board signed the United Nations' Global Compact, thus clearly demonstrating its commitment to advancing responsible corporate citizenship on a global scale. The Asset Management branch of WestLB Group, WestLB Mellon Asset Management, is signatory investor to the Carbon Disclosure Project for many years now. At the beginning of 2006, we also implemented the German Corporate Governance Code – irrespective of the fact that this is mandatory only for listed companies. Starting 2011, the business units of WestLB have been obliged to consider sustainability-relevant issues in their business planning in a systematic and provable manner in order to identify opportunities that arise from the challenges of sustainable development at an early stage. As a result, WestLB now operates clear regulations for the integra-tion of sustainability aspects at four levels.

Sustainability Management at WestLB

• means reconciling our activities with all pertinent economic, ecological and social aspects;
• is an integral element of our entrepreneurial mission and is subject to constant further development;
• calls for the development of sustainable products for our clients and the encouragement of sustainable activities on the part of our clients;
• ensures compliance with recognised standards of sustainability.
  

Key Action Areas

WestLB's sustainability strategy focuses on the following action areas, to which we will continue to gear our strategic development:

• Minimise risks and conflicts relating to environmental protection and social justice in our core business
• Exploit growth opportunities with the help of forward-looking products
• Provide products and services that support the sustainable success of our clients
• Cut costs and the consumption of resources through effective in-house environmental management
• Exploit the development opportunities of a corporate culture characterised by respect and fairness

Organisation

The Sustainability Management Department, which is part of the Group Development Business Unit, is the central organisation responsible for the ongoing development, implementation and control of WestLB’s sustainability programme. In this function, it is involved in all sustainability-relevant business decisions such as the review and categorisation of project financings. The Department cooperates closely with the decentralised business units of the Bank. This integrated approach ensures that the sustainability activities are closely integrated with the market requirements and the responsibilities for the respective business activities. The activities of the client and product units are additionally supported by sustainability officers at the international locations. The analysts who address reputational risks are also an integral element of the management of sustainability aspects in day-to-day business. The organisational structure is rounded off by the environmental management unit for operational sustainability.

Results

WestLB´s sustainability approach has also continuously met with a positive response in external assessments. Sustainability rating agencies recommend the bank and its securities issues to sustainability-oriented investors. Latest rating from Sustainalytics ranks WestLB 9th among 63 financial institutions surveyed. Compared to the previous year, WestLB improved its score by 5 points to 66 and is ranked far above the industry average in all relevant sustainability categories. Rating agency oekom research awarded WestLB “Prime” status in 2010, thus placing the Bank at the top of the sustainability league table of Germany’s financial institutions. Rating agency imug also placed WestLB above the average and awarded the Bank a “Positive” rating with a focus on bond issues.

In 2011, WestLB won its seventh consecutive “Top Employer” listing. This means that every year since 2005, WestLB has been ranked among Germany’s top 105 employers by the Corporate Research Foundation (CRF) in co-operation with “karriere“ magazine and the geva-Institut. In 2011, WestLB also won “karriere” magazine’s “Fair Company” seal, which shows that WestLB offers fair conditions to career starters.