Banks will be inevitable in the circular economy

Sustainability and ESG aspects now go far beyond mandatory compliance: they are the cornerstones of the future of the economy. K&H and KBC are convinced that the financial sector not only meets regulatory requirements, but also actively shapes the direction of sustainable development. Financial institutions are also setting an example in their own operations: the digital transition has drastically reduced paper use, and electronic administration results in both more efficient and more environmentally friendly operations. Within this, digital transformation is a key element of sustainability.

According to international experience, several large banks have implemented a full digital program in order to significantly reduce their paper-based operations. The transition not only increased internal efficiency, but also gave their customers the opportunity to manage their finances faster and with less environmental impact. Elsewhere, a separate framework has been developed to measure office paper usage, which, together with the expansion of digital customer service, has resulted in a significant reduction in the carbon footprint.

Specific examples

However, the real weight of the financial sector is given by its financing activities. Banks play a key role in building a circular economy worldwide. Many financial institutions, including K&H, would like to achieve full carbon neutrality in their operations as soon as possible. Banks are also using innovative solutions in supply chain financing: partners who can demonstrate reductions in waste generation or energy consumption can obtain more favorable credit terms.

Levente Suba, K&H’s Sustainability Manager, mentioned the specifics and said:

“The award-winning agricultural greenhouse gas calculator created by K&H is becoming increasingly popular among agricultural companies. This free online calculator provides agricultural businesses with the opportunity to assess their own greenhouse gas emissions, whether they are engaged in crop production or animal husbandry. The calculator performs its calculations based on scientific criteria and specifically examines the emissions of greenhouse gases of agricultural origin – e.g. carbon dioxide, methane and nitrous oxide.”

The expansion of K&H’s range, which now includes corporate green loans and the so-called green car leasing, which can only be used for the purchase of purely electric passenger cars, is also aimed at sustainability and the creation of a circular economy. He also added that these are just a few examples, K&H and its parent bank, KBC, are both striving to facilitate the transition in all areas of the economy.

A never-ending story

Levente Suba said that focusing on sustainability is not a one-time task. It requires a long-term commitment, essentially an endless story, because the economy can always be operated in a more resource-efficient and sustainable way.

He highlighted:

“Responsibly operating companies not only contribute to a more livable future, but can also access more favorable financing conditions. Sustainability is not a burden for us, but an opportunity. As a catalyst, we are able to give direction to other actors in the economy and together build a more sustainable economy that is not only more livable in the long run, but also more competitive and cost-effective.”