Sustainable development goals

In its commitment to sustainable development, BIL is asserting its position as a responsible bank through various initiatives. Alessandra Simonelli, Head of Sustainable Development at BIL, tells us all about them.

These days, being a responsible bank means having a positive impact on both the environment and the society. As a financial intermediary, the bank can offer clients sustainable investment products and services. It must also deliver its services responsibly, for example, by ensuring that its governance and infrastructures are in line with a sustainable approach. It’s also about being aware of one’s responsibility as an employer and ensuring staff well-being and development. “The aim is to act ethically with all stakeholders,” reveals Alessandra Simonelli. This manifold commitment is today encompassed by what is called ESG criteria, or Environmental, Social and Governance.

BIL is fully aware that it has a role to play in fostering balanced economic growth and creating an inclusive, circular economy. The financial approach which governs how companies operate must be balanced and also takes certain non-financial elements into consideration over the long term.

“This global awareness resonates with our clients. Today, almost everybody is thinking about how they consume and how they can improve,” observes the Head of Sustainable Development. And this also applies to how we invest our money. “In this ever-changing world of climate, health and financial crises, investors are looking for meaning, and BIL is stepping up and moving in this direction,” maintains Alessandra Simonelli.

The Bank has a range of diversified Patrimonial funds which adhere to an SRI (Socially Responsible Investing) strategy, thus contributing to sustainable development. BIL also offers loans to help businesses make the transition to renewable energy sources. For personal customers, loans with favourable financing conditions are available for purchasing electric or hybrid vehicles. “We want to encourage clients to consume more responsibly,” Alessandra Simonelli explains before adding: “We have a role to play in financial education amongst the population, by explaining how money invested can have a greater, more positive impact.” In fact, the Bank launched the website my-life.lu several years ago to present this issue to a wider audience.

BIL also contributes to the local economy by financing and supporting businesses, as well as getting involved in local educational, healthcare and cultural projects - even more so since the start of the ongoing health crisis.

So what are BIL’s short-term objectives? To ensure that these criteria are fully integrated into the Bank’s strategy in the near future. To measure and communicate its impact in its non-financial information report.

While the banking sector’s image has been tarnished by previous financial crises, banks today are part of the solution, not the problem. “BIL’s commitment is the start of a transformation process which will only accelerate, to create a genuine ESG culture in line with stakeholders’ expectations,” concludes Alessandra Simonelli.

+1 billion

the total amount of Covid moratoria on business loans at the height of the crisis in June 2020.

+31%

the percentage increase of the number of BIL employees who took part in a training session in 2020. Most training sessions aimed to help staff during the crisis, to find the right work balance at home and manage professional relationships remotely.