Volksbank

ESG and Creditworthiness: The Volksbank Case 

A strategic project to integrate ESG data into credit assessment: find out how Volksbank started a sustainable transformation journey starting from a regulatory obligation.

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Case Volksbank

The customer

Volksbank (founded in 1886) with headquarters in Bolzano, operates as a regional bank not only on the market of origin of South Tyrol but also in the North-East of Italy in the provinces of Trento, Belluno, Treviso, Pordenone, Vicenza, Padua, Venice, Udine and Verona. Volksbank has over 160 active branches and employs more than 1,400 people. The Bank’s positioning is as follows: “We are the strongest Bank in relationships, always close to the customer at every stage of life, for a more sustainable society in the North East"

“We have built an innovative ESG tool, designed to truly support SMEs. The collaboration with Deda Bit has been fundamental to effectively integrate technology and sustainability.”

Manuela Miorelli - Head of Sustainability, Volksbank

The Strategic Lever

Sustainability as a strategic lever in creditworthiness

Today, sustainability is no longer just a matter of regulatory compliance, but a key element for business competitiveness. Volksbank has embraced this vision, transforming ESG data management into a key asset to assess creditworthiness and to guide companies toward a more sustainable future.

The Challenge

Volksbank's approach: ESG data to evaluate and support companies

For Volksbank, the main challenge was to directly engage its clients and manage the vast amount of available ESG data.  Collecting, recording, and meaningfully interpreting this data is crucial to build solid strategic insights. Volksbank chose to use sustainability as a strategic lever, making it understandable, measurable, and accessible to all users, from internal advisors to clients.

The value

The Added Value of ESG: How We Support Sustainable SMEs

Thanks to the partnership between Deda Bit (for the technological aspect) and BDO (for the academic and regulatory approach), the platform developed for Volksbank involves the Credit, Commercial, and Sustainability departments, bringing together data collected directly from companies, especially SMEs, useful for ESG evaluation, risk analysis, and CSRD reporting. Tangible support for clients and consultants, in a shared path towards sustainability.

The solution

  1. Sustainability Data Collection- The implemented system collects essential data for four main purposes:
  • Client ESG scoring: ESG assessment for clients, based on direct company declaration data.
  • CSRD reporting: provide the data necessary for the bank's sustainability report, organized by taxonomic objectives and in line with regulations.
  • Risk: provides the elements for the climate risk assessments of counterparties to be used by risk management.
  • Advisory and Support: providing advisors with the tools to guide clients, especially small and medium-sized enterprises, on their sustainability journey.

2. Direct Data Request to Companies - Volksbank has chosen to directly ask its clients, especially SMEs, for information on their non-financial accounting. This approach is essential to understand their actual level of awareness with respect to environmental, social and governance sustainability factors.

3. Integration and Interpretation - The collected data, although not always structured like those from data providers or external sources, is interpreted to provide a clear view of each company’s ESG profile. The goal is to support clients along a journey, rather than simply obtaining a static “snapshot.”

The implementation of this solution aims to generate numerous benefits, particularly in the following areas:

  • Credit Assessment - The ability to integrate ESG factors into the assessment of creditworthiness allows Volksbank to have a more complete and forward-looking view of sustainability related risk and opportunities
  • Tangible Support for SMEs - Volksbank not only assesses but actively supports small and medium-sized enterprises on their sustainability journey, providing tools and advisory to improve their ESG performance
  • Regulatory Compliance and Transparency - The solution facilitates compliance with sustainability regulations such as the CSRD, ensuring greater transparency
  • Strenghtened Customer Relationship - Direct dialogue with clients on ESG topics strengthens the bank-business relationship, positioning Volksbank as a strategic partner for sustainable development.

The Volksbank case demonstrates how technological innovation, combined with a clear strategic vision, can transform sustainability from a regulatory burden to a powerful lever for business success and a positive impact on society. We are proud to have contributed to this important project, confirming our commitment to offer cutting-edge solutions to support the transition a sustainable future.