Bene's 100% sustainable investment

Sustainability is no longer a sideshow for companies, but a central part of their business strategy. The aim is to comply with the constantly evolving environmental, social and governance (ESG) regulations and to make a tangible contribution to a better future.

But what does this mean in daily business practice? Once a sustainable project has been identified, the question of financing arises: What’s the ideal solution for my company? Which subsidies are available? How can I make my sustainable activities measurable and use them for my ESG reporting? 

Sustainable financing solutions that align with EU Taxonomy bring many advantages: Companies not only comply with legal requirements, but also optimize costs, drive innovation, and thus strengthen their competitiveness.

This best practice report showcases how Bene Büromöbel, in partnership with RBI, found an optimally tailored solution that is 100% sustainable, and in the process took on a pioneer role in Austria.

The production site of Austrian office furniture manufacturer Bene in Waidhofen/Ybbs becomes future proof: A thermal roof renovation has been underway on the production hall roof since May 2023. The existing cold roof covering is being replaced by a much lighter warm roof structure to enable the installation of a photovoltaic system with a total output of 3.045 megawatt peak. 

"We invest in environmentally friendly energy generation – not only to increase our independence from the energy supplier, but primarily to reduce our carbon footprint," explains Bene CFO Benedikt Wolfram.

Due to the higher insulation effect of the new roof covering, the heating requirement can be reduced considerably. This in turn significantly reduces the amount of wood chips required for the new heating system, and the chips can be sold as recycled goods. The need for heating oil is eliminated entirely.

Linking sustainable financing with sustainable investment projects has a key benefit: It not only provides capital, but also signals a measurable commitment to sustainability.

A common concern among companies: The perceived higher costs associated with integrating sustainable financing. However, studies show that sustainable practices can help save costs in the long run – for example, by investing in energy-efficient technologies, optimizing resource management, and applying circular economy principles. 

Financing solutions that offer monetary benefits or ESG-linked terms incentivize a company's sustainability performance and thus present further attractive options for businesses. 

For Bene, the 'RBI Sustainable Loan' was the optimal solution, as it offers attractive conditions for the overall package on the one hand and can be labeled as taxonomy-compliant financing in the company’s sustainability report on the other hand.

The tailor-made package that enabled Bene to implement its sustainable project was identified together with sustainable finance experts at Raiffeisen Bank International. "We wanted to offer our customer an all-in package," explains Maximilian Plank, Head of Business Development & Innovation for Export & Investment Finance at RBI, "with an optimal combination of subsidies and financing – and our support in the subsidy processing."

Which subsidies were relevant?

• OeMAG: Subsidy for category D photovoltaic systems
• Kommunalkredit Public Consulting (KPC): Subsidy for thermal roof renovation
• Austria Wirtschaftsservice (aws): Guarantee for environmental sustainability and digitization
  

For Bene, involving RBI in the coordination with subsidy agencies ensured transparent structuring.

How to align financing with EU taxonomy

• In general, the transaction must be in the scope of the EU Taxonomy ('eligibility').
• The transaction must meet technical criteria and conditions such as 'Do no significant harm' and 'Minimum social safeguards' – not just 'eligible', but 'aligned'. 
• The fulfillment of these criteria must be proven by the company (RBI prepared a questionnaire specifically for this purpose).

The transaction thus meets the strictest requirements of sustainable financing in the EU – a 100% sustainable project that benefits everyone.

Not only the project itself and its financing are sustainable – so are the lessons learned: RBI's experts maintain an internal and external network, with the help of which future EU Taxonomy transactions can be structured quickly and competently. "We make the sustainability journey together with Bene as a long-term partner," emphasizes Maximilian Plank. 

Bene CFO Benedikt Wolfram is pleased: "With Raiffeisen Bank International, we have found a reliable partner for the financing of our photovoltaic system. Our investment in this green project not only reduces costs, but also underlines our commitment to sustainability. We are taking a significant next step towards sustainable furniture production."

With this project, Bene is one of the trailblazers in Austria when it comes to sustainable investment financing: The renovation of the production hall enables its own environmentally friendly energy generation, and thus a smaller carbon footprint. The furniture manufacturer is therefore, with a reliable partner in tow, ready for the years to come.