Nastassja Cernko heads the sustainability department at the Austrian Control Bank (OeKB). She and her team played a key role in creating an Austria-wide sustainability platform for companies and banks as well as in issuing a 2023 sustainability bond worth 500 million euros. She is a jury member of the Upper Austrian sustainability award Feronia from OÖN, Oberbank and State of Upper Austria.
OÖN: What role does the financial sector play in transforming the economy towards carbon neutrality and a circular economy?
Cernko: With the EU Green Deal, with which Europe wants to become the first climate-neutral continent, the financial sector has been given a central role in making the economy sustainable. Investments must be channeled into appropriate projects. This doesn’t just happen voluntarily and the variety of new rules is constantly growing. In some cases this is very short-term and dynamic, a challenging field in the interaction between financing organizations and the real economy.
How can you imagine that?
CSRD has been in effect since January 2023. This regulation covers many more companies that are now required to report. But many companies are only indirectly obliged to deal with the topic: because customers or suppliers who already have reporting obligations on sustainability demand this from companies. Smaller companies in particular are becoming aware that reliable data is needed from all companies on the subject of sustainability. More and more transparent information on environmental and social standards is required from all stakeholders in a supply chain.
How should small and medium-sized businesses, i.e. the majority of our economy, cope with this?
It is an incredible challenge, especially for SMEs. It is also difficult to find out in this regulatory jungle who might come with which questions. That’s why we have launched a central data platform, the ‘OeKB-ESG Data Hub’. 660 companies are already registered here (44 percent large, 24 percent medium-sized, 32 percent small). They have filled out questionnaires about their ESG measures and can make this data available to banks, insurance companies and credit reporting agencies. Since 1.1. By 2024, around 80 percent of the Austrian banking sector will use the hub. (ESG = Environmental Social Governance, guidelines for environmental, social and corporate governance, note)
What is the advantage for companies of exposing themselves or presenting themselves in this way?
On the one hand, know-how is gradually being built up in the companies. A smaller company also sees the questions of this data hub for medium-sized companies, which is free in the basic version, and can thus better prepare for growth and the associated ESG requirements. Banks increasingly need this information. The questionnaire is filled out once and can then be shared multiple times. Every update of the data happens automatically for those institutions that have been granted access to the data by the company. Participating companies receive the ESG report as a PDF and can use it for their own communication.
Should companies wait or get to work straight away?
I would only recommend that everyone deal with the issue of sustainability as quickly as possible. ESG is here to stay. The cup will not pass by anyone, even for companies that do not need financing, because their supply chain partners need it. The topic of sustainability is also playing an increasingly important role in the recruiting of young employees.
What is the OeKB sustainability bond?
In 2023, OeKB launched a bond of 500 million euros for major international investors, which will finance 85 percent environmental projects and 15 percent social projects. It was our fourth sustainability bond. These bonds attract a broader investor base and greater demand, so a slight improvement in financing conditions is expected.
Why should companies apply for the Feronia Prize?
If sustainability activities have already been implemented, participation is definitely recommended. It’s good to find out where you stand in comparison. The publicity through reporting has a positive effect, and you can position yourself with the topic of sustainability among customers and employees and motivate them.
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