For the second time, VB Consulting marked the end of the year with its VBC social day. Managers, securities officers and marketing executives were invited to spend a day devoted to social commitment. An important consideration in the VBAG Group’s cooperation projects and sponsoring is long-term, integrated concepts that allow more comprehensive support to be provided. Another factor of interest here is that sponsoring activities increasingly lead to cooperation projects and partnerships. This means that commitment is understood as a partnership to which both sides contribute and from which both sides benefit.

What makes the VBC social day special is that personal interaction and the social dimension of sustainability take centre stage and can be experienced “hands-on”.

Those who were interested in “networking differently” came in far greater numbers in 2010 than in the first year of the event and took the time to give the children of the “Am Himmel” charity’s centre for the disabled a day rich in diversity and enjoy an enriching experience in personal interaction themselves.

In the spirit of VBAG’s Corporate Responsibility project “We live responsibility”, VBC and all those who take part place emphasis on this day on the social dimension of sustainability.

The participants got to learn about the work of the “Am Himmel” charity’s centre for children and young people with intellectual and multiple disabilities. Following that, the shared experience of the Kunsthistorisches Museum became an unforgettable adventure enjoyed by the children and adults in equal measure. A scavenger hunt gave all the participants a totally different perspective on the museum.

The social day is therefore a networking event with a focus on social responsibility. It offers not only an opportunity to gain an insight into the strategic management of non-profit companies, but also the chance to get to know and to value people that Volksbank managers rarely get to meet in daily business life. The social day offers both donors and recipients the chance to engage in important and diverse communication, which will have an ongoing sustainable effect.

The first “Corporate Responsibility-Real Estate Dialogue” took place on 11 October 2010. It marked the launch of a series of events designed to promote and provide new impetus for the exchange of information on the subject of sustainability. The dialogue on the benefits of sustainable properties was initiated as part of CR management by the CR core team.

More than 50 staff from the Real Estate Financing department of Volksbank AG – Investkredit, Immoconsult Leasinggesellschaft m.b.H. and Premiumred Real Estate Development GmbH seized the opportunity to take part in this first discourse on sustainability.

Mirjam Ernst, Sustainability Representative at ÖVAG, spoke on the subject of “managing corporate responsibility”. The management of the real estate subsidiaries, Brigitte Fruhstorfer (Immoconsult) and Leopold Deufl (Premiumred), Klaus Scheitz, Head of Real Estate Financing at Volksbank AG – Investkredit, and Alexander Bosak of the real estate core team all highlighted the significance of the topic for the real estate sector in their speeches. Karl Resel and Clemens Rainer, CR experts from Denkstatt GmbH, reported on “Eco-housing and sustainable management”.

The public were offered the opportunity to take part in the discussion during a round table on “Sustainability – spin, or an integral part of corporate strategy?” The essence of the remarks was that sustainable development is in its early days in the real estate sector, but that the existing potential for development is recognised by all those involved here. This assessment is confirmed by a current survey* of actors in real estate management in Germany, Austria and Switzerland. Sustainable real estate is considerably more valuable: 73% of builders and investors and 86% of tenants are prepared to accept higher costs for this.

Study on “Sustainability in Real Estate Management”, Roland Berger, April 2010

Volksbank AG – Investkredit can boast more than 10 years experience in the financing of private international schools. 19 successful school projects have been implemented in more than 9 countries, from Vienna to Washington, from Brussels to Berlin, from London to Ljubjlana and Warsaw to Munich. Target clients are above all: international German and American schools, schools with an institutional background (UN, embassies) and schools with a commercial or religious orientation. These schools – mostly organised as associations – finance their income on the one hand through the annual school fees of the students and on the other hand through subsidies or grants from their sponsor organisations. Many of the schools are also staterecognised supplementary schools, which cover up to 30% of their running costs from guaranteed taxes. Through that, the students not only gain internationally recognised school-leaving certificates but also school qualifications that are accepted in the respective state. Benefiting from social changes and the current media debate about the quality and efficiency of the state school system, the demand for private school education continues unabated at home and abroad.

With the involvement of the German Federal Foreign Office in Berlin and the Weltverband Deutscher Auslandsschulen (World Federation of German Schools Abroad) in Berlin, Volksbank AG – Investkredit became the only bank in the world to conclude a global loan dedicated to the financing of international schools when it signed an agreement with the KfW banking group for EUR 60 million in the spring of 2010. The new global loan will be used to finance long-term investment projects (new buildings and extensions, sports and leisure facilities, science centres, etc.) at more than 130 German schools abroad over the next few years. Volksbank AG – Investkredit will take on the necessary credit assessment of the respective end borrower and, when the credit rating is positive, grant long-term borrowed funds that are refinanced by the KfW banking group at subsidised interest rates. In the first three months after the agreement was signed, direct contact with 20% of all schools was established, project volumes of EUR 136 million were discussed and a loan volume of EUR 35 million was offered. Financing of EUR 10 million has already been concluded.

The first financing in this project – a construction loan for a new science building – has already been concluded with the German School in Washington D.C. in cooperation with the KfW banking group. The total investment costs amount to USD 8,000,000, of which Volksbank AG – Investkredit is providing USD 6,000,000 on a long-term basis. The extension is being built according to LEED standards (“Leadership in Energy and Environmental Design” of the “US-Green Building Council”) and has been awarded the programme’s silver certification.

This assessment system defines precise standards in the areas of site concept, water and energy consumption, building materials and environmentally friendly interior construction. Founded in 1961, the German School Washington D.C. is the largest institution for German-speaking international students on the East Coast of the USA. More than two thirds of the pupils come from German, Austrian or Swiss families. The school, at which over 600 pupils are taught, offers an education programme that concludes in the 12th grade with the American High School Diploma and the German Abitur.

The large demand and the earnings potential make this market segment extremely attractive for Volksbank AG – Investkredit. The refinancing at favourable interest rates by the KfW and the market advantage that results from the cooperation will make a decisive contribution to the expansion of this business segment. The thematic leadership in this market segment forms part of the sustainability strategy of the VBAG Group – as does the commitment to the issues of the future such as youth and education.

As a “local bank with a cooperative identity”, VBI offers its customers the familiar standard of comprehensive
service and product packages in the spirit of a “primary bank” in Central and Eastern Europe. International
and local customers have access to individually tailored product packages. We define these product packages
using the CEE UNLIMITED marketing initiative, which includes an Internet platform, and through our employees
on the international desks of the VBI banks. For local customers, VBI offers special microfinance services
and corporate centres located throughout the countries.

VBI consolidates the offer available to the customers of our partner banks under the keyword “CEE UNLMITED”. Since the online launch of these specialised VBI websites in 2007, the number of users has continually increased. The service platform thus represents an important information tool as far as bank services in Central and Eastern Europe are concerned and acts as a multiplier for the CEE service of the VBI Group. The appearance and navigation were modernised in 2010 and the information presented in a compact and clear layout in order to appeal to end target customer groups.

Small and medium-sized enterprises are typical customers of the Volksbanks, and VBI makes it easier for them in particular to take the step across the borders. Care for customers continues to be provided by the tried and trusted local bank, while the multilingual VBI employees on the international desks accompany them into VBI countries step-by-step, from the opening of a CEE account to the settlement of the day-to-day business and financing.

The customer relationship managers of the VBI partner banks also receive information on the economic and legal conditions prevailing in the CEE countries, as before a customer can start their own business activity, bureaucratic hurdles have to be crossed and legal questions clarified. Through its network, VBI is able to provide the necessary contacts and information for the customer in an efficient manner and in good time.

Depending on the geographic and economic conditions in the individual countries, VBI offers tailor-made service packages locally for small and large corporate clients. In addition to the customer relationship managers in the branch offices, specific corporate centres in the larger cities of the respective VBI country also provide support for SMEs. Moreover, VBI is launching special service packages for SMEs in several countries. For micro-enterprises, this will take place in particular in cooperation with the French partner Coop-Est in order to strengthen the backbone of the economy in Central and Eastern Europe in a sustainable way.

One of the key measures that can be taken to protect the climate is to reduce energy consumption. The heating requirement of the VBAG Group’s office buildings represents one of the Group’s major direct environmental impacts. The decision on what type of energy is used is of critical importance here. In Vienna, district heating is one of the most environmentally friendly forms of energy use.

By the end of 2010, the proportion of the Group’s office space supplied with district heating had been successfully increased from 45% to 95%. By 2012, it will be possible to record the energy consumption data of all locations owned by VBAG and of the Group’s new headquarters without any gaps.

Historical background: The Group’s old headquarters as well as the properties in Renngasse and Wasagasse were already connected to the district heating network of Wien Energie AG. The way that the district heating pipelines were laid in Liechtensteinstraße, however, meant that the buildings at Kolingasse 15-19 and at Peregringasse 2 and 4 could not be connected to this network.

With the decision to convert and rebuild the Group’s headquarters, a project to examine the infrastructure supply of the building site was initiated. The factors to be reviewed included the security of supply, environmental compatibility, sustainability – in terms of balancing social, economic and ecological goals from a long-term perspective – investment and operating costs as well as effects on and synergies for the rest of the neighbouring properties.
The stated goal: to supply all properties with district heating. To this end, a pipeline was laid from the main
pipeline in Liechtensteingasse that goes through the new building and across Peregringasse to the building
at Peregringasse 2. A converter station was erected by Fernwärme Wien GmbH here that supplies the new
headquarters and the buildings at Peregringasse 2, Peregringasse 4 and Kolingasse 15-19. Pipelines to the
boiler plants of the individual buildings then allowed these to be connected to the district heating supply in
September 2010. Old, sometimes malfunctioning gas boilers were dismantled and disposed of. The proportion
of the Group’s own properties that are supplied with district heating now stands at around 95% for the
winter 2010/2011 heating period. After the conversion works have been completed, it is planned to connect
other smaller areas in the building at Kolingasse 17 in 2011, with the result that the upgrading will cover
around 98% of the properties.
Thanks to this improvement, the targets that have been set for reducing CO2 emissions and for simple,
low-maintenance operations management will be met. And that is a situation which will increase the value of
the properties.

The VBAG signed the “Diversity Charter” together with 10 other national and international companies on 26 November 2010. By pioneering this charter in Austria, the signatories clearly expressed the value they place on and the respect they have for diversity. The model for the charter was provided by countries that have been active in the European Union for several years: Germany, France, Switzerland, Italy and Spain. In France, more than 3,000 companies have already signed the “Charte Diversité”.

The goals of the Diversity Charter are clearly defined and provide a guideline for the signatories. The principles raise awareness on the broad benefits of diversity in the economy and in society and promote discourse between the different interest groups. At the same time, they stand for the removal of taboos surrounding people and groups that have been and remain economically and socially disadvantaged. The signatories advocate an increase in mutual respect, tolerance and esteem with regard to diversity in the organisation. In addition, the Diversity Charter creates new networks and possibilities for cooperation.

Diversity management increases the motivation and commitment of employees and promotes creativity and innovation. By signing the Diversity Charter, VBAG has sent out a clear signal. This signal also has an impact internally. It has had a positive effect among many employees and has been interpreted by project staff as a sign that their work is valued.

The use of different corporate cultures took centre stage for the Group in 2010. Following the decision to merge VBAG and Investkredit Bank AG, a variety of dialogue-based formats – at both employee and management level – were initiated to promote exchanges as part of a professional and employee-orientated change management process.

It has been proven that the Diversity Project has laid a good foundation – many employees are already very familiar with the work and the use of differences. In return, the change measures, with their focus on creating a new, common corporate culture, are having a positive effect on the dimensions and the complexity of the themes associated with diversity. The relocation of the new customer service centre is a symbol of the successful merger of the two companies.