2. Materiality

The company discloses the aspects of its business operations that have a significant impact on sustainability issues and what material impact sustainability issues have on its operations. It analyses the positive and negative effects and provides information as to how these insights are integrated into the company’s processes.

In January 2020, Rentenbank introduced a materiality analysis in order to identify, evaluate and prioritise relevant sustainability issues. During this review, both the impacts of Rentenbank’s business activity on sustainability (inside-out perspective) and the impact of sustainability on Rentenbank business activities (outside-in perspective) were analysed.

Inside-out perspective (business activity impacts)
The promotional business division at Rentenbank has the greatest impact on the environment and society. As a result, our promotional business is defined as a key issue for sustainability. With the help of SDG flagging, Rentenbank has disclosed the contributions it has made to promoting sustainable development and how its promotional business can be made even more sustainable. These reference points from within our statutory mandate and its implementation relate to the following SDGs:

SDG 2 (end hunger, achieve food security and improved nutrition and promote sustainable agriculture): SDG 7 (ensure access to affordable, reliable, sustainable and modern energy for all):
SDG 9 (build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation):
SDG 12 (ensure sustainable consumption and production patterns):
SDG 13 (take urgent action to combat climate change and its impacts):
SDG 15 (protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss):

Outside-in approach (opportunities and risks)
A risk inventory is used to obtain a structured overview of all risks that have a negative impact on Rentenbank’s net assets, capital resources, results of operations, or liquidity situation. Opportunities and risks resulting from changes within environmental, social and governance (ESG) risk are also considered here. However, sustainability risks are not a standalone type of risk. Rather they are a part of other types of risks that are already known (drivers of risk). The impact of sustainability risks on the risk-bearing capacity has already been assessed by means of scenario analyses. Several projects dealing with ESG opportunities and risks are in progress.

Rentenbank currently sees the greatest outside-in risks in climate-change related risks.
Opportunities for Rentenbank from sustainability issues are in the following areas:
Rentenbank has developed its Sustainability framework plan by consolidating the risk assessment, the inside-out approach and the opportunity analysis (cf. objectives, criterion 3).