Surveying expectations from year to year

In 2018, we intensified dialogue with our stakeholders and set up a stakeholder panel. Using an annual survey of selected experts, we will regularly identify what stakeholders expect of KfW. We will then use the findings to strategically improve the sustainability management and to identify key sustainability issues for KfW.

To ensure the long-term success of KfW Group, we must engage with our stakeholders at regular intervals in predefined formats and seek feedback that is systematically incorporated into decision-making processes. We ask what is expected of us from the outside and what future developments we should already be aware of today. We find answers to these questions through dialogue with external catalysts. What we learn helps us to identify and develop the key issues related to sustainability management. In the process, we make sure to involve diverse stakeholders and obtain a broad range of opinions.

Picture of Dr. Günther Bräunig — **Dr Günther Bräunig**, Chief Executive Officer of KfW Group

We actively seek dialogue with our stakeholders in order to share opinions, perspectives and experiences. And controversial issues are also discussed. The stakeholder panel gives us the opportunity to engage in structured dialogue on a regular basis.

KfW stakeholder panel

To improve our stakeholder management, we set up a stakeholder panel in 2018. It consists of a defined group of representatives from business, politics and civil society. They are surveyed once a year about key issues of KfW Group.

We conducted the first survey in spring 2019 and interviewed nine stakeholders by phone. The interviews focused on the areas of action defined in the new KfW sustainability mission statement. The feedback helps us to better assess the relevance of the issues and the expectations of the stakeholder groups. The findings were presented to the CEO, Dr Günther Bräunig, and discussed together with him. They will also be a valuable basis for revising our materiality analysis in autumn 2019.

Overview of the KfW stakeholder panel and the main expectations

Goal

identification of key issues for the strategic further development of sustainability management

Respondents

nine representatives from the financial sector, non-governmental organisations, politics and associations

Method

expert interviews by phone

Sustainability management

Managing business development sustainably

All respondents welcomed the integration of sustainability management into the corporate strategy as it will underscore the strategic importance of sustainability. The multidimensional management concept arising from the internal “Roadmap Sustainable Finance” project is eagerly awaited. It is hoped that a best-practice example for suitable tools will be developed to measure environmental and social impacts.

Banking business

Consistent focus on sustainable financing

KfW is perceived as a credible financial player with the power to set standards as a pioneer for sustainable development in the entire sector. All respondents believe that KfW has an enormous leverage effect in the consistently sustainable focus of its financing business, emphasising the necessary conformity with the Paris Climate Treaty. As a result, KfW’s risk management should systematically assess climate risks and report them transparently.

Sustainability communication

Actively setting an example

The respondents agreed that, as a promotional bank, KfW must provide guidance and set an example. It could show other financial institutions ways to integrate sustainability. Stakeholders generally encouraged KfW to become more actively involved in social discourse and take a clear stance.

Banking operations

Highest standards for internal processes

Even if the impetus for sustainable development lies in the banking business, KfW is expected to achieve excellence in the areas of compliance, procurement and operational environmental management. This applies above all to good governance and compliance, as they are crucial to business development and are particularly sensitive for a banking institution like KfW.

Employer

Strengthening diversity

KfW’s future viability also depends on its appeal as an employer. This is closely linked to the promotion of diversity and the compatibility of work and private life. Equality is a particularly important issue in the financial sector – diversity in management should be visibly promoted beyond the issue of gender.