European Investment Bank Group Sustainability Report 2020

EUROPEAN INVESTMENT BANK GROUP

2020

SUSTAINABILITY REPORT

THE 2020 SUSTAINABILITY REPORT provides an overview of the European Investment Bank Group’s operations and impact in supporting sustainable and inclusive growth in Europe and across the globe.

This report was prepared in accordance with the “comprehensive” option of the Global Reporting Initiative (GRI) Standards and should be read in conjunction with the “ Sustainability Reporting Disclosures 2020,” a separate document available on the European Investment Bank (EIB) website. The disclosures address relevant topics in a standardised and comparable form. They are meant for professional users of sustainability reports, such as financial and environmental, social and governance (ESG) analysts, civil society organisations, members of the academic community and any other interested parties.

The choice of topics follows a materiality assessment conducted in 2018 involving internal and external stakeholders to identify the topics of material importance to be included in the EIB Group’s reporting.

To accompany the Sustainability Report and GRI standards, we also published in 2020 a set of disclosures in accordance with the Sustainability Accounting Standards Board (SASB)framework, as well as the Group’s first report in line with the recommendations of the Task force on Climate-related Financial Disclosures(TCFD).

The EIB Group commissioned its external auditor, KPMG, to provide limited assurance on selected statements and figures in the Sustainability Report. These statements are marked with and highlighted in italics .

We trust readers will find the information in this report interesting and relevant. We welcome any comments or questions, which should be addressed to: csr@eib.org.

About the European Investment Bank

The European Investment Bank is the world’s biggest multilateral lender. The only bank owned by and representing the interests of the EU countries, the EIB finances Europe’s economic growth. Over six decades the Bank has backed start-ups like Skype and massive schemes like the Øresund Bridge linking Sweden and Denmark. Headquartered in Luxembourg, the EIB Group includes the European Investment Fund, a specialist financer of small and medium-sized enterprises.

FOREWORD

THE EIB GROUP

2020 IN FIGURES

CLIMATE BANK ROADMAP: PUTTING THE PARIS AGREEMENT INTO PRACTICE

SUSTAINABLE FINANCE

CLIMATE AND SUSTAINABILITY AWARENESS BONDS: PROVIDING CLARITY FOR INVESTORS

EMBEDDING SUSTAINABILITY IN OUR PROJECT DUE DILIGENCE AND RISK MANAGEMENT PROCESSES

CARBON FOOTPRINT OF EIB FINANCING

SUSTAINABLE INVESTING

ADVISORY SERVICES

2020 SPOTLIGHTS

BIODIVERSITY: PUTTING NATURE AT THE CENTRE OF THE SUSTAINABLE DEVELOPMENT AGENDA

THE EIB GROUP’S ACTIONS TO ADDRESS SOCIAL INEQUALITIES

OUR 2020 CONTRIBUTIONS TO THE SUSTAINABLE DEVELOPMENT GOALS

THE EUROPEAN INVESTMENT FUND SUPPORTS FRENCH FARMERS IN THE GREEN TRANSITION

GOOD CORPORATE GOVERNANCE

TRANSPARENCY AND ACCOUNTABILITY

COMPLIANCE AND INTEGRITY

COMPLAINTS MECHANISM

ENVIRONMENTAL MANAGEMENT

COMMUNITY ENGAGEMENT: THE EIB INSTITUTE

EMPLOYER OF CHOICE

INDEPENDENT ASSURANCE REPORT

Werner HoyerPresident European Investment Bank

Alain GodardChief Executive European Investment Fund

For most of the world, 2020 was a difficult year. One that was dominated by the coronavirus pandemic, the threats of climate change, catastrophic biodiversity loss and a growing awareness of systemic inequalities. As we struggle to recover from the coronavirus pandemic, we must remember the importance of continuing on our path towards a greener, more inclusive and just society, which focuses on the long-term sustainability of our planet and economy. At the EIB Group, we are delivering financial instruments and advisory services that support sustainable and innovative green activities in Europe, from large-scale corporate investments, to test plants featuring new technologies, to university spin-offs and start-ups.

While the COVID-19 crisis is putting countries across the globe under pressure, solutions for the health crisis are on the horizon, even if the economic consequences could last considerably longer. To address the pandemic, the EIB Group approved a €25 billion response package, leveraging existing EIB and European Commission resources to support the people affected and to deal with the immediate economic fallout. Our largest initiative, the European Guarantee Fund (EGF), will allow us to further unlock up to €200 billion of financing for European companies, in particular for the small and medium-sized businesses – and their employees – that are the backbone of Europe’s real economy.

However, even the most impressive support schemes will ultimately be in vain if we go back to “business as usual.” At the EIB Group, we are doing everything in our power to safeguard the health of our planet and the health of people, by preventing workers from losing their jobs, by backing vulnerable industries and by helping countries absorb the most violent economic shocks. But to be effective, recovery efforts also need to focus on more inclusive development which addresses the longer-term global crises we face. Simply rebuilding isn’t enough. We need to build back better.

Alongside the EIB Group’s response to the COVID-19 crisis, we renewed our commitment to climate action and environmental sustainability. We are a key partner in delivering on the European Commission’s NextGenerationEUrecovery package. While Europe must recover from the pandemic, we must do so in a way that does not sacrifice our commitment to more sustainable development. A return to “business as usual” would push global temperatures up. Instead, we must channel Europe’s massive recovery efforts to build a bulwark against climate change, environmental degradation, biodiversity loss and growing inequalities.

At the EIB Group, we are doing our part. Our aim is to support at least €1 trillion in climate action and environmental sustainability investments during the next decade, a critical period for climate and biodiversity. In 2019, we committed to raising the EIB’s annual financing for climate action and environmental sustainability to more than 50% of total lending by 2025, and to aligning all our activities with the Paris Agreement by the end of 2020. During 2020 we worked hard to put these goals into practice. In our role as the EU climate bank, the EIB Group set out a Climate Bank Roadmap, which was approved by the EIB Board of Directors and the European Investment Fund (EIF) Board of Directors in 2020. We also updated our EIB Climate Strategy, laying out plans to support the Paris Agreement goal of limiting the global temperature rise to 1.5°C.