Reorient Croatian development bank's (HBOR) operations towards sustainable financing and green transitio

The Commission helped to improve HBOR’s capacity to finance sustainable projects through implementing the EU Taxonomy and relevant sustainability regulation, while in the longer-term contributing towards Croatia's transition to a low-carbon economy, resource efficiency and achievement of the Sustainable Development Goals.

Context

HBOR needed to have a clear understanding of the potential environmental and climate risks and implications for client and investee operations prior to transactions and needed make its contribution towards sustainability targets for Croatia. This project aimed to support the bank’s sustainability strategy.

Support delivered

• Diagnostic analysis of the key sustainable economic sectors and activities in Croatia, HBOR’s sustainable financing framework and sustainable finance regulatory environment applicable to HBOR
• Development of a comprehensive set of sustainable finance policies, procedures, tools and metrics supporting risk management and impact
• Data infrastructure to support HBOR’s sustainability reporting requirements and ESG disclosures
• Development of an action plan and roadmap for implementing HBOR’s sustainable finance strategy
• Development of internal communication and knowledge management tools
• Training and capacity building workshops

Expected results

The project has strengthened HBOR’s internal capacities to develop sustainable finance policies, procedures, tools and metrics in order to support Croatia’s transition to a low-carbon economy. HBOR have acquired new skills and knowledge on how to create sustainable financing opportunities for Croatian companies, measure and monitor their impacts.

Moreover, the Croatian entrepreneurs, investors, employees, credit institutions, exporters, public administration, local municipalities, regulators, credit and other financial institutions as well as the whole economy in general, are expected to indirectly benefit from the project.