Driving sustainable change
A look at how the bank has advanced its ESG efforts in recent years, helping businessesand its own operations become more sustainable
In 2023, as the bank celebrated 20 years of operating in Kosova, it chose to mark this milestone not only with celebration, but with meaningful action. The result was the ESG Summit, an event that brought together a diverse range of voices, including local leaders, international institutions, businesses, and NGOs.
Since then, the bank has taken concrete steps to support the transition to a greener economy, focusing on financing sustainable projects, improving its internal energy efficiency, and strengthening social responsibility within the communities it serves.
These efforts reflect a growing recognition of the role financial institutions play in leading to positive change. Yet for the bank, ESG is more than a collection of initiatives or a response to evolving expectations.
As Vesa Paca, ESG Lead at our bank, explains: "The ESG Summit was a turning point for us. It was about integrating sustainability into the core of our operations and culture. We see it as a fundamental responsibility to our customers, our communities, and the environment, not just a strategic choice.”
Thanks to this ongoing focus on sustainable practices, the bank was named Best Bank for ESG in Kosova at the Euromoney Awards for Excellence 2025, a prestigious recognition in this field.
Strategy built on four pillars
ESG stands for Environmental, Social, and Governance, three key dimensions used to assess an organization’s sustainability performance and long-term impact.
The environmental dimension examines how a company manages its impact on the planet, including areas such as carbon emissions, resource consumption, and waste management. The social dimension focuses on relationships with employees, customers, suppliers, and communities, emphasizing fair treatment, inclusion, and social responsibility. Governance refers to how a company is directed and controlled, covering areas such as transparency, ethics, accountability, and effective oversight.
For banks, integrating ESG means supporting sustainable economic growth while managing risks linked to environmental and social challenges. Ultimately, it is about building stronger businesses, more resilient communities, and a more sustainable future.
At our bank, ESG is integrated across the organization through four key areas: Core Business, In-house Ecology, Community Investments, and Employees.
Through its core business activities, the bank supports the transition to a more sustainable economy by offering green and ESG-linked financing solutions, integrating ESG criteria into lending decisions, and helping clients better understand sustainable business practices.
In-house ecology efforts focus on reducing environmental impact through energy efficiency, waste reduction, and responsible resource management.
Beyond banking, the bank invests in initiatives that support local communities, education, and social development, while also fostering an inclusive workplace that promotes employee wellbeing, development, and engagement.
Increased awareness and maturity among Kosovo businesses
Although ESG is a relatively recent topic, awareness among the public and businesses in Kosova is steadily growing. This is reflected in the rising share of sustainability-related loans. In 2025, the bank’s ESG portfolio reached 14.2% overall - 16% in corporate business and 11.6% in Retail - demonstrating increasing maturity within the country’s business community.
Our €141 million ESG portfolio in 2025 delivers measurable environmental and social impact, supporting financing across renewable energy, energy efficiency, pollution prevention, and circular economy initiatives.
Paca shares her optimism when discussing these results. “These figures reflect increasing awareness and maturity within the business community, and we’re glad to support this ongoing progress.”
She says for this success, the bank also counts on strong partnerships with local and international organizations, including financing agreements with institutions like the EBRD, which help support the country’s green transition.
Our in-house ecology at a glance
Environmental sustainability is an important part of how we operate as an organization. While banks are not traditionally associated with large industrial emissions, we recognize that our own operations have an environmental impact and that we have a role to play in reducing it.
Across our branches and offices, we continue to take practical initiatives to improve energy efficiency, reduce emissions, optimize resource consumption, and promote more sustainable ways of working. These efforts form part of our broader commitment to responsible business practices and support our long-term sustainability goals.
The figures featured here highlight some of the progress achieved during 2025 and show how improvements across different areas can collectively make a meaningful difference.
· The bank reduced energy consumption by 25% across our branches and offices through efficiency upgrades. In addition, solar panels at our main offices in Prishtina contribute to our renewable energy use, while nearly 6% of the electricity purchased from KESCO comes from renewable sources
· 4.75% decrease in total CO₂ emissions, cutting 93.9 tons compared to 2024.
· Transitioned over 97% of our vehicle fleet to hybrid models, reducing transport-related emissions.
· Offset carbon emissions from 143 business flights, totaling 316.3 tons of CO₂
· Implemented improved waste reduction and recycling programs for electronics, paper, and other materials.
Flagship initiatives supported by the bank
Beyond lending and internal efforts, the bank actively supports environmental initiatives. One such initiative is the Green Wings project. Implemented by Sustainability Leadership Kosova, this initiative utilizes drone technology to support reforestation efforts at a critical time when land degradation is increasingly affecting Kosovo’s natural environment.
Over the course of two years, the initiative has successfully covered more than 15 hectares of degraded land, demonstrating measurable progress in habitat restoration. Other initiatives in the field of environmental sustainability include support for urban greening in Prishtina, promotion of green-focused festivals, and efforts to encourage public transportation.
Alongside these, the bank implements and supports a wide range of social and employee focused programs, and programs that promote education, inclusion, employee wellbeing, and community development - further strengthening its commitment to responsible and sustainable growth.
Looking ahead
The bank will continue collaborating with international partners to expand green financing options, enhance internal sustainability practices, and strengthen relationships with clients and community organizations. The goal remains to support Kosova’s transition to a more sustainable and resilient economy while fostering inclusive growth.
Vesa Paca emphasizes the bank’s long-term commitment: “Sustainability is not a one-time effort but an ongoing responsibility. We are dedicated to continuously improving our practices and working closely with our clients, partners and communities to create lasting value”, she says.
With a clear strategy and growing momentum, the bank is well-positioned to lead by example.
[This article was originally published in July 2026 as part of the 6th edition of the bank’s newsletter, RaiMagazine. The edition mainly focused on ESG topics and included, among other content, an interview with our Board Member Deyan Ivanov on several ESG-related subjects. The interview can be found here]