MLP SE Sustainability Policy of MLP Banking AG | Version: March 2024 |
Foreword by the Executive Board
As a financial services provider, our mission is to be a reliable dialogue partner for individuals and companies in all financial matters, as well as to provide our clients with professional and transparent consulting services. We also recognise the great responsibility that comes with this in terms of sustainability. Accordingly, we wish to make a contribution to establishing a sustainable and worthwhile future. This notion shapes the core business of MLP Banking AG.
We share the conviction of the MLP Group that sustainable economic success can only be achieved in harmony with ecological and social responsibility. This understanding of sustainability is not only a cornerstone of the corporate strategy but also permeates all levels of our banking strategy. In accordance with the basic principles of the MLP Group, MLP Banking AG also underlines its commitment to the Sustainable Development Goals (SDGs) of the United Nations. In this vein, we are especially committed to the goals that we can directly influence with our core business, such as promoting education and equal economic opportunities, as well as protecting our environment and the climate.
This Sustainability Policy sets out the fundamental understanding and organisational framework for sustainability at MLP Banking AG. The fourth section of this Policy has been specifically tailored to our core business and provides in-depth insights into how we integrate sustainability in our banking business.
Reinhard Loose | Manfred Bauer | Carsten Soßna |
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Sustainability Policy of MLP Banking AG | Version: March 2024 | |||
Table of contents | ||||
Application scope & keeping the Sustainability Policy up-to-date | ||||
2.2. The SDG philosophy at MLP Banking AG follows that of MLP SE | ||||
Securing quality and sustainability in the investment consulting services of MLP Banking AG | ||||
4.1.2. | Querying sustainability preferences (MiFID II) | 11 |
4.2. The partner and product selection process for investment consulting in wealth
management | 11 | |
4.3. | Loans and mortgages | 11 |
4.4. | "Account and card" transactions | 12 |
4.5. | Proprietary trading | 12 |
4.6. | Transparent consulting quality | 12 |
4.7. | Making sustainability tangible | 12 |
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Sustainability Policy of MLP Banking AG | Version: March 2024 |
1. Sustainability principles
Global challenges - social and ecological, and thereby also economic - are growing constantly. Sustainability has therefore become a social and socio-political imperative, no longer solely advocated by supranational organizations like the United Nations or non-governmental organizations. It has now emerged as a central economic and political priority, aimed at catalysing global action.
In order to meet our social responsibility, we have anchored sustainability holistically in the company. This means: Sustainability is integrated into our business strategy and policy and thus flows programmatically into all parts and processes of the company.
In addition to our economic and social responsibilities, which we particularly embrace due to the long- term support we provide to our client groups and our role as a reliable employer, we also take responsibility for the environmental impact of our business
1.1. Basic principles and philosophy
Sustainability is an integral part of our core business and is becoming increasingly important in the financing and investment decisions being taken by our clients. We are therefore placing an ever greater focus on this in our financial advice. The scope of sustainability ranges from training and developing our consultants, ongoing refinement of our consulting process, inclusion of quality- certified product partners right up to individual products. Sustainable alignment of a company or a product can be reflected in economic, social, ethical and ecological aspects.
When determining general guidelines and substantiating relevant sustainability goals, MLP Banking AG focuses in particular, yet not exclusively, on the format of the "Sustainable Development Goals" (SDGs) defined by the United Nations.
The objective of this Sustainability Policy is to establish a clear fundamental understanding, define relevant standards and goals, and to derive conforming courses of action and rules of conduct on the topic of sustainability for our company and the core business.
1.2. Commitment to sustainability
We are firmly committed to sustainability and recognise the associated responsibility towards the environment, society and future generations. Our objective is to promote sustainable practices across all aspects of our company. This includes continuously reducing environmental impacts, promoting social justice and diversity, as well as sustainable development of our services. Through transparent communication and ongoing optimisation of our processes, we strive to make a positive contribution to a sustainable and liveable future.
1.3. Application scope & keeping the Sustainability Policy up-to-date
The fundamental principles of this Sustainability Policy apply to MLP Banking AG. MLP Banking AG performs regular checks to ensure that this document is always kept up-to-date. Whenever changes are made, the document is amended accordingly and the updated version is then published.
2. Sustainability at company level
2.1. Sustainability principles at MLP Banking AG
Our understanding of values is underlined by the following sustainability principles, which are the basis of all of our activities and objectives:
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- We generate values by enabling our client groups to make well-founded financial decisions through networking of different perspectives and expertise. In doing this, we take into account ecological and social aspects, as well as principles of good corporate governance.
- We provide long-term support for our client groups and develop sustainable financial plans.
- We make a significant contribution to intergenerational financial education.
- We combine goal driven entrepreneurship with social and societal commitment.
- We are committed to equal opportunities, diversity and work-life balance.
- We encourage and expect continuous learning.
- We maintain an open dialogue with all stakeholders and report transparently on our sustainable commitment.
2.2. The SDG philosophy at MLP Banking AG follows that of MLP SE
The SDGs represent a central guideline for the activities and decisions taken at the company level of MLP Banking AG. Accordingly, all actions and measures are always guided by the overarching principles of the Group, but are substantiated and operationalised according to specific needs, client requirements and legal or regulatory provisions in each line of business.
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MLP Banking AG is fundamentally committed to the 17 Sustainable Development Goals (SDGs) of the United Nations. To this end, the corporate activities are continuously aligned with the SDGs. Five of these goals are particularly relevant for MLP Banking AG:
- SDG 4 - Quality education
- SDG 5 - Gender equality
- SDG 7 - Affordable and clean energy
- SDG 8 - Decent work and economic growth
- SDG 13 - Climate action
The objective is for all social and environmental activities at MLP Banking AG to have a direct connection to these five factors. The specific implementation can be tracked in the annual sustainability reporting at Group level.
SDG 4 - Quality education
Goal: to ensure inclusive, equal and high-grade education for all and promote lifelong learning
Education represents a core value for MLP Banking AG: As a knowledge-based service provider, the qualification and further training of both our consultants and employees
is a high priority. A high-quality range of educational programmes is therefore an essential prerequisite for high-quality financial advice for our clients. This is guaranteed by the extensive range of courses on offer at the MLP Corporate University (CU). The CU has multiple accreditations and certifications.
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We consider sustainability as an essential component for successful consulting activities. Our consultants serve as the primary conduit for explaining economic, ecological, and social product and investment strategies to our clients.
For this reason, we have been offering a new certification programme for our consultants as "Certified Sustainability Consultant for Finance (CU)" since the end of 2023. This qualification conveys the extensive knowledge and practical skills required for providing clients with comprehensive and integrative top-level advisory services on all sustainability issues. In addition to this, we continuously offer further qualification measures, through both the CU and our networks and external providers, to ensure that we are always in tune with the latest developments in the dynamic market environment.
Since 2024, lifelong learning has been promoted by MLP on a more systematic basis through a further education budget for employees. All employees receive a so-called "education wallet" of 20 MLP points, which means 20 hours of further education time over two years. The education wallet can also be used for external and self-organised further training measures.
SDG 5 - Gender equality
Goal: to achieve gender equality and empower all women and girls
MLP Banking AG benefits from the diversity of its employees and consultants, which is why it actively supports diversity and gender equality as a matter of course and establishes the necessary framework conditions to achieve this. Responsible conduct
and a respectful attitude towards others are always at the heart of our corporate culture. MLP Banking AG implements this in an open and team-oriented corporate culture. Accordingly, one of our objectives is to achieve a balanced gender ratio at the management levels of the company and to boost efforts to secure diversity when filling management positions. To this end, suitable promotional concepts have been developed within the company, in particular to support women in management positions.
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SDG 7 - Affordable and clean energy
Goal: to ensure access to affordable, reliable, sustainable and modern energy for all
Affordable and clean energy is an essential building block for countering global environmental and climate challenges. MLP Banking AG strives to use resources responsibly. Efficient environmental and resource management is therefore anchored
in the sustainability strategy. Affordable and clean energy is closely tied to climate protection. MLP Banking AG uses electricity from renewable energy sources.
SDG 8 - Decent work and economic growth
Goal: to promote inclusive and sustainable economic growth, employment and decent work for all
Sustainability is a social and socio-political imperative. Goal: companies must pursue the objective of remaining economically successful, while at the same time acting with
ecological, social and societal responsibility. MLP Banking AG accepts this responsibility with conviction. Sustainability is an essential component of the corporate strategy. Alongside economic and social responsibility, MLP Banking AG also assumes responsibility for the ecological impacts of its actions. Inclusive and sustainable economic growth therefore represents the foundations.
SDG 13 - Climate action
Goal: to take urgent action to combat climate change and its impacts
Another important social objective of MLP Banking AG is to act in the interest of climate change mitigation and therefore consistently reduce its own carbon footprint. The climate protection strategy of the MLP Group defines the framework of action for
climate protection activities. We record our carbon footprint every year in order to identify and implement emission reductions. In addition to this, we provide financial support to climate protection projects and thereby make a positive contribution to environmental protection.
2.3. Social commitment
We are convinced that the only way to make a difference is through commitment and working together - whether in a social, ecological or cultural respect. For this reason, we provide financial support for various local, nationwide and also international associations, institutions and projects in the areas of sport, culture and environment. In addition, we encourage the personal commitment of our employees as well as our consultants in the social arena.
2.4. Voluntary commitment - UN Global Compact initiative
MLP SE has been a member of the UN Global Compact initiative since July 2023 and therefore undertakes to integrate the 10 principles into its corporate strategy, culture and actions in order to make a contribution to achieving the Sustainable Development Goals (SDGs). You can read more on this in the Group Sustainability Policy.
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3. Governance
3.1. Structures and responsibilities
Defining and complying with the Sustainability Policy are top priorities at MLP Banking AG. Responsibility for corresponding activities is assumed directly by management and the relevant specialist departments.
In this vein, a long-term strategic programme was launched in 2022 with the objective of permanently integrating sustainability into the core business in all relevant areas of MLP Finanzberatung SE and MLP Banking AG. This affects the consultancy services for private and corporate clients, as well as the partner and product selection process. Key components include the training and qualification of consultants, additional quality criteria in the partner and product selection process, and systematic integration of sustainability in consultations.
In addition to this, further aspects of sustainable and responsible corporate management are monitored and pursued at a superordinate level:
1) Sustainability Committee:
The Group-wide Sustainability Committee comprises representatives from all relevant parts of the Group. It coordinates sustainability activities, discusses trends and stakeholder requirements, updates the materiality analysis, develops proposals for sustainability management and the sustainability mission statement, and also monitors the implementation of measures and company-related ESG reporting. You can read more on this in the Group Sustainability Policy.
2) Legal and compliance organisation:
The Group-wide legal and compliance organisation is responsible for supervising and checking all compliance-related topics, as well as ensuring compliance with legal requirements for responsible advisory services. In this function, all legal, regulatory and industry-specific projects and measures that have a specific reference to the topic of sustainability are monitored together with relevant aspects.
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3.2. Securing quality and sustainability in the investment consulting services of MLP Banking AG
MLP Banking AG considers the topic of sustainability as an integral part of a successful business model. Accordingly, all areas at MLP Banking AG are involved in the implementation and integration of sustainability aspects and goals.
Key tasks include assessing sustainability preferences during all investment consulting meetings and expanding the sustainable product portfolio.
All areas across all divisions are involved not only in the transformation of business operations, but also in advancing performance towards an even more sustainable business model. Key areas in this regard are product management across all product categories, which are responsible for managing partners and products and are in intensive communication with numerous external product partners (stakeholders) in this function.
The consultant service supports our consultants as the first point of contact for technical questions in and around topics relating to sustainable finances. In addition, numerous decision-makers from the MLP Corporate University are engaged in the constant development of training and qualification programmes, and are collaborating with MLP Sales to refine consulting services in line with MLP consulting guidelines.
Colleagues with responsibility for the consultant workplaces, sales processes and customer relations facilitate the step-by-step creation of new online experience worlds in the MLP Financial Home and the consulting applications.
4. Sustainability in the core business
MLP is the dialogue partner for all financial matters - from wealth management to old-age provision and insurance. This is our core business. Our mission consists in enabling people and companies to make better financial decisions.
Sustainability factors such as the environment and social aspects are playing an increasingly important part when selecting financial products and are an integral part of our work. The comprehensive analysis of product providers, as well as financial products, is a key component of our service. In advising and supporting our clients, we utilize the offerings of all relevant product providers in the market. In addition to this, clients can take care of all their important banking business at MLP. This ultimately leads to sustainable financial concepts that are tailored specifically to the individual wishes of our clients.
To succeed in sustainability, it is crucial to assess both the risks and opportunities across our entire value chain. This is about more than just reducing our carbon footprint and the associated negative impacts. In fact, we can effect genuine and positive change with our handprint by rendering services that make a contribution to sustainability.
Thanks to our positioning, we are ideally placed to capitalize on the resulting opportunities, such as the increasing customer demand for sustainable solutions. Indeed, we have corresponding product offerings in all fields of consulting: wealth management, loans & mortgages and banking (accounts and cards). These are always embedded in the overall service provided by MLP - hand in hand with the special disciplines of MLP Finanzberatung SE.
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4.1. Regulatory framework conditions
MLP Banking AG is subject to numerous regulatory requirements, which themselves are subject to continuous amendments and updates. We would therefore like to take this opportunity to specifically address the regulations in the field of ESG that are particularly relevant for our core business.
4.1.1. Sustainable Finance Disclosure Regulation (SFDR)
The aim of the Sustainable Finance Disclosure Regulation (EU 2019/2088) is to make it easier for investors to select a sustainable financial product by providing a higher degree of transparency. Insurance investment products and funds have included information on the sustainability of the respective product since March 2021.
As such, fund companies (providers) are required to provide a statement regarding the extent to which they are integrating sustainability into their investment process. Accordingly, investment products (such as funds) are broken down into three categories:
The corresponding classifications are listed in the sales brochures and fact sheets made available by the providers.
At company level, MLP Banking AG has been obligated to publish the following information since March 10, 2021:
- Information on the integration of sustainability risks in consulting processes and investment decisions.
- Information as to what effects sustainability risks can have on the profitability of a product.
- Information on the extent to which the compensation policy aligns with the integration of sustainability risks.
The MLP Group meets this obligation by publishing the stated information in the legal notices on its homepages (MLP Banking AG).
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MLP SE published this content on 29 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2024 08:41:00 UTC.
