Expert Interview: Why sustainable finance is on the rise

What does the sustainable transformation involve for companies? How can this transition be financed? And what advantages can companies take advantage of?
We met Petra Rauscher, Head of Export & Investment Finance at Raiffeisen Bank International. In this interview, she tells us about the importance of sustainable financing, why it is becoming increasingly important – and what the future looks like from an expert's point of view.

Petra Rauscher: In recent years, we have observed that companies are becoming increasingly aware of the issue of sustainable transformation. Many companies recognize the urgency of positioning themselves more sustainably in order to reduce environmental impacts, assume social responsibility and ensure long-term business stability. 
More and more companies are increasing their focus on environmentally friendly practices, ethical supply chains and social initiatives. Approaches vary by industry and company size, but there is a clear trend toward integrating sustainability into business strategy.

PR: Corporate customers often ask questions about the practical implementation of sustainable investments and its optimal financing structure. Here we can support with our investment financing instruments, for example with OeKB Exportinvest Green, with loans linked to defined parameters (so-called KPI-linked loans), or with the Sustainable Loan developed by RBI. 
Some companies even go one step further with loans that are EU Taxonomy eligible or aligned, which can also be disclosed in their reporting and balance sheet. In addition, we advise on current subsidies to further optimize the financing structure for our clients. 
Customers are also interested in the criteria by which these products are assessed and the potential impact on their corporate balance sheets and sustainability reports.

PR: Sustainable financing goes beyond renewable energy – the awareness of that has increased greatly in recent years, across all industries or company sizes. It's not just about environmental aspects, but also about social and corporate governance factors – to cover all facets of ESG (Environmental, Social & Governance).

PR: Our advisory in terms of sustainable finance covers a wide range of services. We support companies in identifying sustainable projects, help them select suitable financing instruments, explain evaluation criteria, and thus accompany the entire process from structuring to finalization of the project. 

We also pay special attention to potential subsidies, as sustainable investments are often difficult without them. We are very well connected with all Austrian subsidy agencies and have a lot of experience with the process – this helps us find the ideal solution for our clients. We not only offer this service for Austria, but also draw on our local subsidy expertise throughout nearly our entire network.

PR: Companies benefit from sustainable financing on various levels. First, they can demonstrate their commitment to environmental and social responsibility, which strengthens their image and brand. Second, sustainable finance can facilitate access to capital, as investors show increased interest in such projects. Third, costs can be reduced through more efficient use of resources.

PR: The introduction of KPI-linked financing products, where interest rates are linked to specific sustainability targets, has been showing innovative approaches for some time. 

The opportunities we see in the context of OeKB financing are also worth mentioning: The more sustainable and ‘green’ the financing is, the higher is the OeKB liability. This is a great advantage for customers and has a direct impact on investment costs.

Our new cooperation with the European Investment Fund (EIF) under InvestEU (Innovation and Digitalization) to finance innovative startups via the 'RBI Growth Basket' is another example of our broad sustainable offering.

PR: ESG is likely to become even more important in the near future. Companies will be under increased pressure to implement sustainable practices, as investors, customers and regulators pay more attention to these aspects. 

Banks play a crucial role by not only offering sustainable financing solutions, but also by helping companies integrate ESG criteria into their business strategy – be it advising on finance and subsidy options or sharing knowledge on regulations and ESG reporting. 

Banks act as intermediaries between companies and sustainability-oriented investors – and must also take on their own role as responsible bankers, fair partners and engaged citizens, and thus help shape sustainability in a future-proof way.