Project name: Preparation of the Sustainability Report for the Croatian Bank for Reconstruction and Development 2023
Client: HBOR
Period: 3/2024 – 10/2024
Location: Croatia

The goal of the project was to prepare the Sustainability Report for 2023. While the initial plan was to rely exclusively on the GRI standard, it was subsequently decided that the report would be based on ESRS standards, particularly the requirements of ESRS 1 and ESRS 2, to the greatest extent possible. At the end of the report, tables for ESRS and GRI were published to provide clarity on the transition process.
A SharePoint platform was established to facilitate the collection of data and relevant information for the project. Separate Excel templates were developed for collecting data on environmental, social, and governance aspects. Additionally, Excel tables were prepared for value chain mapping and meeting the requirements of ESRS 2. To ensure a deep understanding of CSRD directive and ESRS standards, thematic workshops and presentations were conducted. These included two general presentations on key CSRD and ESRS requirements and four thematic blocks dedicated to discussing specific significant impacts, risks, and opportunities for HBOR.
The initial value chain analysis followed the position of the European Banking Authority (EBA) from its consultation process with EFRAG. The focus was on identifying material impacts, risks, and opportunities and describing the key participants in the value chain. However, due to the complexity of the value chain and the identification of multiple parallel chains, this description was not included in the final version of the 2023 Report. The value chain analysis focused on areas where impacts, risks, and opportunities were most likely to occur, considering the nature of activities, business relationships, and other key factors.
The sustainability context was analyzed by reviewing material impacts, risks, and opportunities of comparable banks, as well as the outcomes of the Sustainable Finance project. Nature was recognized as a “silent stakeholder,” with key documents such as IPCC reports, the National Energy and Climate Plan, Copernicus data, UNEP FI guidelines, and analyses from the European Central Bank and other relevant sources being reviewed. HBOR’s strategy and business model were further analyzed to provide a detailed overview of HBOR’s exposure to impacts, risks, and opportunities throughout the value chain. The report includes a description of the key elements of HBOR’s strategy and business model, emphasizing direct and indirect business relationships and the main value chain participants.
Material impacts, risks, and opportunities for HBOR were identified and prioritized based on sustainability factors covered by thematic ESRS standards (ESRS 1 AR 16), as well as specific factors related to HBOR’s business sector. The assessment included the results of ongoing consultations as part of regular business activities and targeted stakeholder engagement during the preparation of the report. A link was established between material impacts, risks, opportunities, and HBOR’s new strategy.
For the first time, an analysis of greenhouse gas emissions from Scope 1 and Scope 2 was conducted using the GHG Protocol methodology and ISO 14064-1:2018 standard. This formed the basis for assessing the significance of HBOR’s operational impacts. Impacts were more clearly delineated into three categories: those from HBOR’s own operations, impacts on the development of the Croatian economy, and risks and opportunities within the portfolio.
The recommended structure of the sustainability report was adjusted in accordance with ESRS (Annex F, ESRS 1). Since it was determined that the recommended framework posed challenges for financial institutions, a new Chapter 4, “HBOR’s Sustainability Related Business Activities,” was added. Additionally, in collaboration with Abilis komunikacije d.o.o., a new visual identity for the report was developed and approved, emphasizing the materiality of information by highlighting its significance and relevance.
More than 15 versions of the report were delivered, with numerous comments analyzed and incorporated. Throughout the project, areas requiring significant improvement in sustainability reporting were identified to inform future enhancements. Comprehensive recommendations and proposals for improving sustainability reporting were prepared at the end of the project, including a detailed adaptation plan with timelines.