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Responsible Funding

As a state-owned promotional bank, KfW can fund its business in the capital market at very good conditions and pass these loans on to retail customers, enterprises, non-profit organisations and municipalities at favourable rates. This is due to the guarantee of the Federal Republic for its business  but also to the good reputation which KfW has built up as a respected and reliable actor in the capital markets over more than 60 years.

The capital market is KfW's most important funding source

Today the capital market is KfW's most important funding source, where it raises more than 90% of its funds. Other sources include budget funds from the federal government. They are added to loans provided in economically or developmentally important areas, but are also given in the form of non-repayable grants. Combined with the profit generated by KfW, they help to lower the interest rates of a loan programme.

In finance, sustainability plays a prominent role in two respects

As a promotional bank, KfW wants its loans to achieve as great a sustainable impact as possible when it invests in environmental and climate protection, in education and in the creation of jobs.

But sustainability is also crucial where KfW invests its own funds. KfW is a signatory to the UN Principles for Responsible Investments (PRI) and acts as a Social Responsible Investor (SRI). Accordingly, it invests almost exclusively in bonds from issuers that comply with high environmental, social and governance standards.

This commitment is acknowledged, as evidenced by awards granted by renowned, independent SRI agencies. Oekom classified KfW as "Prime", one of the best ratings awarded in the group of financial institutions. Sustainalytics has ranked KfW third among non-listed banks worldwide and as the best development bank.

Responsibility is a duty

KfW has undertaken to orientate its investment practices towards sustainability, to encourage other market players to make sustainable investments and to report on their sustainability related activities in an appropriate manner.

Sustainable Investment


KfW Group

Palmengartenstrasse 5-9

60325 Frankfurt am Main



+49 69 74 31 0


+49 69 74 31 29 44


Sustainability Rating

KfW awarded top ratings by sustainability rating agencies.

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