Transparency of the remuneration policy with respect to the consideration of sustainability risks

In implementation of Article 5 of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector, the savings bank subsequently publishes Section 3.2.4.1 of its rules on remuneration referring to the integration of identified sustainability risks into the remuneration policy:

It corresponds to the culture, values and strategies of the savings bank to act as diligently as possible and in the best interest of its customers (end investors) in order to achieve its aim of establishing a long-term and sustainable customer relationship.

The savings bank’s remuneration policy and practice, which can contribute to this objective, are in line with an effective and sound risk management which also considers identified sustainability risks resulting from events and conditions in the fields of environment, social affairs and corporate governance (ESG risks) and which may entail negative (financial) impacts for customers (end investors) but also for institutes and other stakeholders.

Among other things, it is the intention of the remuneration structure defined in the remuneration policy not to encourage excessive risk-taking by employees towards customers (end investors) with regard to sustainability risks identified by the savings bank. Therefore, no remuneration incentives are provided which may contribute to staff taking risks in general and in this context in particular sustainability risks which are not covered by the savings bank’s risk strategy and defined risk appetite.

Furthermore, the savings bank’s rules on remuneration provide the possibility to define sustainability targets within the scope of the variable remuneration component which may encourage the integration of and transparency on identified sustainability risks as well as the consideration of potentially adverse impacts on sustainability in general and/or in particular with respect to advising customers (end investors).