The Green agenda and sustainable business are a must of our times and, regardless of all current macroeconomic and geopolitical challenges, they are highly ranked on the list of priorities of all leading world companies and developed economies. The transition to sustainable business models and responsible approach to the environment and society is a long-lasting process, similar to a marathon, that involves ups and downs, as well as challenges in adjusting long-term goals implying the sustainability principle with short-term objectives, whereby each company is expected to achieve the budgeted, primarily financial results.

The transition to new, sustainable technologies and new business models often implies significant investments in equipment, infrastructure and employee education, as well as increased operating costs. For banks, the focus on green financing often entails a departure from certain traditional financing segments or the extension of time necessary for loan approval, due to more complex and documented processes, which can sway clients into turning to standard lending models. Short deadlines and insufficient understanding of the ESG concept and sustainable business may result in unfavorable oscillations in market share, reduced profitability and shaken confidence in the ideas of sustainability, which highlights the importance of proper setup and organization from the very beginning and consistency in the implementation of the ESG concept and sustainability.

In creating and then implementing the ESG strategies, companies often confront numerous challenges. The ESG concept itself, with its three main components: “E” – environment, “S” -society and “G” responsible governance, as well as the sustainability concept, are so wide and may be viewed from so many different angles, that it is very easy to lost course in this multitude of ideas, good intensions and plans, with a high risk of gradually slipping into the so called greenwashing –the covering up of a lack of real results with nice and inaccurate assertions. A similar challenge comes from overambitious goals in the green agenda, either by setting a large number of simultaneous objectives or that exceed real abilities, or by defining unrealistic, usually shorter deadlines for their achievement.

A correct setting of sustainability goals therefore first requires an in-depth analysis of the macroeconomic context, market potential and regulatory framework – both national and international, especially for companies operating abroad or that are part of an international corporation. Understanding market trends, potential changes in customer behavior, as well as upcoming regulatory changes is crucial. Once this first step is handled, and upon assumption of good knowledge and an objective assessment of the strengths and weaknesses of one’s own business model, the structure of the ESG strategy can be conceived by adopting a top-down approach, i.e. from top management to each employee, with clear communication and understanding of each employee’s role in the new process. Defining the vision and mission is just the beginning. An effective ESG strategy must contain realistic, measurable goals and actions. The process of establishing these goals may require redefining — it is important to maintain a transparent approach, with clear explanations and constructive suggestions of further action. Once defined, ESG goals must be implemented within the organization, including continuous employee education on sustainable practices and acceptance of ESG as permanent values, which expectedly improves employee engagement and motivation. Education, training and workshops contribute to raising awareness of the importance of ESG and sustainability, which also contributes to the improvement of the overall corporate culture.

As early as in mid-2022, OTP banka Srbija defined its first sustainable business strategy. At the end of this year, in 2025, the Bank plans to successfully complete its first mid-term cycle, and is already preparing for a new cycle, boosted by the acquired experience and knowledge in the ESG area. This consistently leads to achieving the set goals of strengthening the leadership position in green financing and continuously reducing one’s own carbon footprint, which are closely related to goals involving building a stable framework for managing ESG risks, preserving the CSR leadership position and the status of responsible and preferred employer. Over the past three years, OTP Bank has achieved significant results in the “greening” of its loan portfolio in accordance with the green lending definitions applied by OTP Group, by maintaining a balance between financing renewable energy sources and energy efficiency, green buildings and clean transportation, whereby it met 75 percent of its strategic plan by the end of 2025, as early as in later 2024. In the same period, compared to 2022, the Bank significantly reduced GHG emissions (Scope 2) by 387 tons, i.e. 0.135 tons per employee, as well as energy intensity to 20.4 GJ per employee from 26.37 GJ in 2022. These results were achieved through continuous enforcement of proactive measures in the area of ​​energy saving and optimization of other resources. For the third time in a row, the bank has become the holder of the prestigious “Employer Partner” HR certificate, as well as the “Champion of Sustainability” accolade – an award granted for contribution to education, raising awareness and capacities to prevent climate change. Since as early as in 2017, through the Generator Lab, OTP Bank has been supporting micro, small businesses, startups, innovative entrepreneurs, as well as educators, who are ready to improve various business segments with innovative and sustainable ideas. The Bank also founded its Volunteer Club, with the aim of strengthening volunteer activism and systematizing the entire volunteer activity of the bank, i.e., contributing to building a more responsible attitude towards natural and social environment in which it operates. Since 2023, OTP banka has been a member of UNEP FI, ​​a financial initiative of the United Nations that focuses on responsible business operations and environmental protection. As sole signatory from Serbia, the Bank undertook to meet the highest standards of sustainability in its operations.

Monitoring the fulfilment of strategic goals, measuring results and preparing for a new cycle are part of daily activities of employees. In that context, honoring and implementing ESG standards has become the “new normality” of OTP banka Srbija and an integral part of its business model. Maintaining this focus requires constant effort and involvement of all employees, as success in the ESG strategy is directly linked to the commitment of the entire team to implement sustainable practice.

It is important to remember that the success of ESG strategy not only contributes to sustainable development and reducing adverse effects on the environment, it also additionally improves the company reputation and its rating and is conducive to better business performances. A timely elaboration of the ESG strategies and action plans, with regular reporting and monitoring, improves the resilience of the organization to external adverse effects, it increases its agility and adaptability to sudden changes. Cooperation, education and clear communication with all stakeholders, particularly employees, are crucial for introducing sustainability as central element of business operations, as major leap towards sustainability and a responsible future. OTP banka has long recognized this and courageously advances towards that goal.

Source: OTP banka