The Cooperative Financial Network upholds its responsibility to support the transition to a more sustainable economy and, as part of its sustainability guidelines, has set itself the objective of playing its part in mitigating climate change and achieving the UN’s sustainable development goals. In doing so, the Cooperative Financial Network is pursuing its strategy of doing business sustainably for the benefit of society, the environment, and the regions in which it operates. The Cooperative Financial Network derives its strength from shared cooperative values and an open and transparent culture.

In accordance with their remit to provide development finance, the cooperative banks focus their corporate strategy on the long-term success of their members and customers. For more than 170 years, they have been supporting, encouraging, and advising local people and companies through their financial services and playing their role as a financial services provider for the real economy through lending based on responsible principles. They operate and do business on the basis of mutuality: Each cooperative bank belongs to its members, who benefit from the strength and solidarity of a power­ful community. And, in a wide variety of ways, the local cooperative banks share their economic success with the region in which they are based. For example, they play a proactive role in the economic, social, and cultural development of their local area. They expand their cooperative network structure through donations, sponsorship, and the voluntary activities of their employees in the community. At the same time, the remit to provide development finance defines the sustainable value creation process at the core of their day-to-day business. The institutions in the Cooperative Financial Network continue to pursue their goal of updating their values-based business model for the future, in dialogue with their members and for their benefit.

The implementation of sustainability requirements calls for effective collaboration between the institutions of the Cooperative Financial Network, associations, and other cooperative partner companies, their service providers, and specialist organizations. Back in 2020, the BVR and its partners in the Cooperative Financial Network therefore undertook, in the context of the sustainability guidelines, to play a greater part in supporting global sustainability objectives.

At the end of 2023, the BVR Association Council, on which the aforementioned stakeholders of the Cooperative Financial Network are represented, recommended the implementation of specific levels of ambition for the environmental, social, and governance (ESG) dimensions:

• Environmental: achieve climate neutrality (net zero) in operations by 2045
• Social: maintain the engagement volume in the region at no less than its current level
• Governance: aim for a membership ratio of 75 percent in the long term

More granular key figures are still being discussed.

To coordinate collaboration within the network more efficiently, the BVR established a center of excellence for sustainability in 2022. Its responsibilities include the strategic coordination of sustainability as an interdisciplinary topic, the further development of the sustainability strategy, the implementation of the sustainability guidelines, and taking on a leading role regarding sustainability-related advocacy activities and providing support for the sustainability committees.

Various supporting projects were implemented on this basis, including the development of an online sustainability portal that the BVR offers in conjunction with its network partners and other associations and is now used by around 580 institutions. The portal includes a sustainability cockpit, which is a tool for systematic self-assessments, and numerous sustainability-related offerings from the Cooperative Financial Network, such as product solutions incorporating sustainability aspects, training, and examples of best practice at institutions.

Based on insights gained from our ongoing dialogue with the cooperative banks, the factors that are driving the institutions in the Cooperative Financial Network to further enhance the integration of sustainability into their management processes are not purely of a regulatory nature. The focus is not only on sustainability risks that could have an impact on financial performance but also on those emanating from the institutions’ own operations and investment activities. These complex matters require the institutions to devote significant resources to transformation. The BVR and the specialized service providers in the Cooperative Financial Network therefore provide support services for the cooperative banks.

In 2024, one key focus of the BVR’s activities was the integration of sustainability aspects into the core business of the institutions. This included developing a framework for sustainable financial solutions. This framework specifically addresses the customer group of small and medium-sized enterprises (SMEs). With regard to meeting regulatory requirements, the focus is on embedding sustainability aspects in bank management processes.

An extensive portfolio of sustainability products is becoming established across the Cooperative Financial Network. These products are distributed by the cooperative banks. The entities in the DZ BANK Group have also established various products, concepts, and processes that are based on environmental, social, and ethical criteria. Details can be found in the DZ BANK Group’s sustainability report.

The Cooperative Financial Network’s climate initiative ‘Morgen kann kommen’ (we’re ready for tomorrow) has been running for a number of years and pursues two objectives. Firstly, the initiative aims to consolidate communications in connection with the member institutions’ many local climate action projects. Secondly, the cooperative banks support a large number of charitable projects each year and wish to increase the proportion that relate to the environment.

The two Germany-wide projects launched in partnership with woodland protection organization Schutzgemeinschaft Deutscher Wald (SDW) have seen strong take-up. Under the auspices of the ‘Wurzeln’ (roots) project, along with other tree planting schemes at local level, more than 1.2 million saplings have been funded by the Cooperative Financial Network over the past four years. Up to February 2025, the cooperative banks had also provided funding for more than 960 elementary school classes as part of the climate education project ‘Wir und der Wald’ (the forest and us), which was launched in June 2023.

All in all, around 280 institutions participated in local climate projects. Information on these engagement activities is published online at https://klima-initiative.vr.de.

Every year, the BVR conducts a survey of all member institutions in order to record Germany-wide information on corporate citizenship in the Cooperative Financial Network. This provides tangible proof of how the many different engagement activities in the regions combine to create a force to be reckoned with at national level and highlights the particular contribution that the Cooperative Financial Network makes to society (CSR reports and CSR portal of the local cooperative banks, www.vielefuerviele.de).

An internal survey found that the Cooperative Financial Network continued to fulfill its role as a champion of the regions in all kinds of ways in 2024. The institutions of the Cooperative Financial Network provided financial assistance totaling €176 million to people in Germany. Around €112 million of this amount was disbursed in the form of donations; €49 million was in the form of sponsorship and €15 million was in the form of income for charitable foundations for the benefit of people in local communities. The institutions provided an additional amount of just over €16 million in the form of benefits in kind – such as donations of goods and free services – for the benefit of local people and organizations.

The foundation assets of the Cooperative Financial Network amounted to €391 million as at December 31, 2024. This sum has been rising steadily for years. In line with the sustainability and long-term orientation of the Cooperative Financial Network’s business philosophy, this commitment to charitable foundations represents a very durable way of backing local projects.

Further matters close to the heart of the Cooperative Financial Network are promoting financial literacy and raising awareness of sustainable practices – among its employees, their children, and in society at large.

The identity principle is what makes the cooperative different from all other types of company structure. Like members of any cooperative, the members of the cooperative banks are its owners as well as its customers.

The cooperative banking remit to provide development finance entails collaboration in a spirit of partnership. It also defines the strategic focus and how it is underpinned by ethical business practices: According to section 1 of the German Cooperative Act (GenG), the nature of the business has to be oriented to the long-term success of its members. One factor in achieving this objective is to avoid sustainability-related risk and seize sustainability-related opportunities. Based on the cooperative principles of partnership, personal responsibility, and helping people to help themselves, cooperatives and cooperative banks are called upon to support their members through sustainable transformation processes.

Cooperative advocacy, along with the annual general meeting or general assembly of representatives and the supervisory boards of the individual cooperative banks (whose members are mostly businesspeople and distinguished persons from the relevant region), underpins the regional control of the individual banks. It provides opportunities for involvement in the democratic process and seeks to encourage dialogue within society on economic, social, and environmental issues, especially in view of current challenges in the sustainability sphere.