Breaking new ground

Sustainable action 2019 Sustainability Report of Landesbank Baden­Württemberg

With Updated Environmental Statement Sustainability Report 2019 Shaping the future

We live in a world full of upheaval. The advance of digitalization, ecological challenges, and polit­ ical turbulence require agility and foresight at the same time. As a mid-sized universal bank, we want to make an active contribution to ­positively shaping the future for people and companies in our region. Thinking and acting sustainably is a prerequisite and is firmly enshrined in our values. Table of contents

About this report 004

01 Strategy and management 005 ∙ Foreword by the Chairman of the Board of Managing Directors 006 ∙ The Company 009 ∙ Sustainability strategy and management 012 ∙ Communications 042 ∙ Sustainability ratings, awards, and memberships 046 ∙ Binding standards 054

02 Responsibility and commitment 069 ∙ Customers 070 ∙ Employees 114 ∙ Society 140 ∙ Environment 150

GRI Standards 178

03 Environmental verifier's declaration 186

Contacts 189 Publishing information 190

This symbol denotes the sections and subsections of this report UE that form LBBW's Environmental Statement for 2019.

The Company 009 Sustainability policy 013 Sustainability goals 014 Principles and guidelines 015 Materiality analysis 023 Sustainability program 2019 032 Sustainability program for 2020 and beyond 037 Communications 042 Sustainability ratings, awards, memberships 046 Scope of applicability and EMAS certification 054 Supplier management 057 Sustainable products, sustainable conduct 078 LBBW improvement process 139 Environment 150 Landesbank Baden-Württemberg 2019 Sustainability Report 4 is publishedannually. 2019. LBBW's previous sustainability report was publishedon22August 2019.Thereport The timeseriesfor environmental data generally refer to thecalendar years from 2015to L Reporting period About thisreport report for theirsupport. We would like to thank thenumerous colleagues whoparticipated inpreparing this be assumed for anyerrors oromissions intheinformation provided. our knowledge, thisinformation anddata are correct. Nonetheless, noliabilitycan All the information in this report was compiled with the utmost care. To the best of male and/orform, theterms usedapplyto allgenders. F Editorial notes tainability report therefore covers thispartof theLBBW Group. bilien GmbH),andLBBW Asset Management Invest-mentgesellschaft mbH.The sus ment GmbH,LBBW Corporate Real Estate Management GmbH(formerly BW-Immo- and thewhollyowned subsidiariesGastro Event GmbH,LBBW ImmobilienManage- Our sustainability management system appliesto LBBW (Bank)(includingBW-Bank) Scope of reporting harmony withsocialjustice andwithintheEarth's ecological limits. summit inSeptember 2015.Itlays thefoundations for globaleconomic progress in Agenda 2030,whichwas adopted by allof theUnited Nationsmemberstates ata respective Sustainable Development Goals(SDGs).These17goals are attheheartof Individual items of content inthissustainability report have beenallocated to the This report hasbeenprepared inaccordance withtheGRIStandards: core option. R BBW's 2019Sustainability Report covers theperiodfrom 1Januaryto 31December 2019. or thepurposesof equaltreatment, where thisreport refers to people inthefe- eport content - 01 Strategy and management

Accompanying change We are breaking new ground. We are actively and sustainably driving the transformation process within the Bank, in business, and in society. Our aim is to always be a step ahead and to open up new opportunities in the interests of our custom- ers – with trustworthy products for sustainable investments and as a reliable partner for compa- nies when it comes to developing and implement- ing business models that are fit for the future. “Transformation, innovation,­ and ­cooperation are the central catalysts of our sustainability strategy.”

RAINER NESKE, CHAIRMAN OF THE BOARD OF MANAGING DIRECTORS OF LANDESBANK BADEN-WÜRTTEMBERG their private life, health,andefficient work results. our employees to work productively andconsistently whileensuring anappropriate balance between our customers inthelongterm. To helpachieve this,we are creating theworking conditions to allow young talents andexperienced professionals will allow usto remain astable anddynamicpartnerfor employees. Ourgoal isto attract andretain thebrightest mindsfor ourBank.Theright combination of Our employees are akey elementof oursustainability strategy. Thisincludesencouraging talented year: around EUR21billion). tomers insustainable investments amounted to around EUR23billionattheendof 2019(previous to expand thevolume of sustainable assets Theassets under management. we manage for ourcus- is aim One Directors. Managing of Board the to reports quarterly and figures target clear including We systematically manage theobjectives of oursustainability strategy usingabalanced scorecard, energies. renewable to relates billion 2 EUR figure, this Of 2019. December 31 of as billion 6.4 EUR We have alsofurtherincreased theissue baseof ourgreen bondprogram from EUR5.9billionto ume of EUR2.7billion.We issued ourfirst socialbond(EUR500million)inSeptember 2019. health, drinkingwater supply, publicinfrastructure, andtransportation. Theeligibleassets have avol- LBBW Social Bond Program, which finances social and community projects in areas such as education, the developed we 2018, In refinancing. own our in bonds ESG using increasingly are we addition, In team to assist ourcustomers withtheirtransformation processes andtheassociated financing. loans, green Schuldscheins,andgreen bondissues. In2019,we alsoestablished aspecialadvisory leading role in this process. This is why we have long supported companies with sustainability linked a play to is aim our and future, distant too not the in norm the become will financing oriented cially become significantly more important as a result of the COVID-19 pandemic. We believe that green, so social issues andgood corporate governance are included alongside environmental aspects. This will of loans or via capital market instruments. Green finance is the keyword – or sustainable finance, when ergies alonerequires vast investments around theworld. Thisinvolves generating money intheform therelationshipAs bankfor ourcustomers, we have akey role to play. Thetransition to renewable en strategy. This iswhy transformation, innovation, andcooperation are thecentral catalysts of oursustainability • • • The key elementsof thisprocess: whom we intend to develop sustainable business modelsasareliable financingpartner. sistent withsustainability initsvarious dimensions.Thisappliesboth to usandto ourcustomers, for with clearobjectives. We are focusing onaprocess of transformation to business modelsthatare con- In recent years, LBBW has done a great deal to become increasingly sustainable. A clear strategy – Dear Readers, of Managing Directors by theChairmanof theBoard Foreword

Transformation demandscooperation, because thesechanges can onlybeachieved by working together. Transformation demandsinnovation to create change. Transformation demandsthewillto change. - -

Landesbank Baden-Württemberg 2019 Sustainability Report 7 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 8 Strategy and management Chairman of theBoard of ManagingDirectors of Landesbank Baden-Württemberg Rainer Neske Sincerely yours, I hopeyou findit to beaninspiring read. Our latest Sustainability Report describeswhatwe have achieved to date –andwhatliesahead. benchmark for us. ­expressly supportthetargets andprinciplesof theUNGlobalCompact,whichare alsoanimportant to ­ ­under control. At LBBW, sustainability remains oneof ourkey strategic objectives, andwe intend ­already initiated inmanyareas, asotherwise oursociety willnot succeed ingetting global­ ­unclear, itisimportant for companies to continue to pursue thetransformation processes they have Although thecoronavirus pandemichasoccupied usextensively anditsconsequences remain systematically press aheadwith thepositive developments we have madeinrecent years. We warming ­business areas, andthestates inwhichwe dobusiness. ­additional information includingourownership structure andlegal form aswell asouractivities, An extensive overview of thecompany can befound atwww.LBBW.de. Thissite alsocontains finance) supplement LBBW's portfolio of services. Group companies for specialproducts factoring, (leasing, asset real management, estate, andequity market entrance. providethat officeslocal entering networks on and German corporate them to customers advise and operatesCenters German LBBW also locations selected In solutions. marketknowledge,financial and York, Singapore, New Toronto, SãoPaulo, London, and Moscow –isinplace to assist customers in withcountry expertise, including – offices representative and branches of network global A abroad. LBBW supportsitsbusiness clients andthesavingsbanks' corporate customers indoingbusiness Bank's corporate customer business outside Baden-Württemberg isoperated undertheLBBW brand. BW-Bank brand. BW-Bank alsofunctions the asasavingsbankintheregion of thestate capital Stuttgart. The under Baden-Württemberg in companies medium-sized and small with business and Since 2018, the LBBW Group has operated its retail customer business, private asset management, partner business. it provides awiderange of products andservices for theirproprietary trading aswell astheir­ ­Saxony, andRhineland-Palatinate. partof As acontractual service partnership withthesavingsbanks, LBBW isalsothecentral bankfor thesavingsbanks inthecore markets of Baden-Württemberg, tions throughout Germany–andhasbeentherelationship bank of manyof itscustomers for ­ and thegreater Hamburgarea. Allinall,theGroup looks after itscustomers atmore than150loca leverages growth opportunitiesinattractive economic regions suchasNorth Rhine-Westphalia, ­ in itsregional core markets of Baden-Württemberg, Rhineland-Palatinate, andSaxony, and­ market capital and finance estate/project real­services, andassisting retail customers andsavings banks. TheLBBW Group doesbusiness ­ providing customers, corporate serving on focuses business The services.productsrangebroad and of a with universalbank mid-sized a LBBWis of 18.932 Baden-Württemberg), whichhasaninterest of 40.534 LBBW's capital isheldby Sparkassenverband Baden-Württemberg (SavingsBanks Association of offices are located in Stuttgart, Karlsruhe, Mannheim,andMainz. ­employees, Landesbank Baden-Württemberg is one of Germany's largest credit institutions. Its head With total assets of approximately EUR257billion(asof 31December 2019)andaround 10,000 Profile The Company temberg holdsitsinterest directly andindirectly viaLandesbeteiligungen Baden-Württemberg GmbH. %; andtheState of Baden-Württemberg witha40.534 UE %; theCityof Stuttgart, whichhasaninterest % interest. TheState of Baden-Würt selectively primarily decades. Bavaria, market ­model - -

Landesbank Baden-Württemberg 2019 Sustainability Report 9 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 10 Strategy and management sized universal bank and significantly improved its profitability once again. The Group's pre-tax Group's The once again. 11.4 by increased profitability ­profit its improved significantly and bank universal sized mid- a as model business solid its of basis the on growth profitable further enjoyed LBBW 2019, In Developments in2019 LBBW isdoingeverything itcan to beareliable partner to itscustomers. mid-sized a as hit hard by the impact of the coronavirus model pandemic in 2020. At difficult times like these business in particular, solid its with market ­universal the bank.However, the Germaneconomy asawhole, andhence alsothebankingsector, on willbe positioned well is it believes LBBW agility managers andcorresponding personnel development measures for employees. corporate culture – such as the use of agile organization and project methods, and the deployment of Last but not least, LBBW integrated more andmore aspects of agilityandagileworking methods inits ­paper together withthecustomer MEAG. ­t trade foreign of digitalization the addressing intensively also is LBBW Polo, Marco network finance ment ­ to theBank's service range. For retail customer customers, BW-Bank hasoffered anadditional,modernpay of digitalization the oriented. For with example, the new Corporates portal gives corporate customers easy, web-based ahead pressed systematically also ­interfaces and processes with the aim of LBBWmaking banking simpler, more efficient, and more customer- year,­ past the In many of thefacts, figures and examples onthe following pages. illustratedyear. past by is the This in sustainability of area the in profile its enhanced further LBBW with amarket share of 20 corporate Inthepast Schuldscheinsegment. year, LBBW reinforced itsleadingpositioninthisarea sought-after a also was ­partner for LBBW hedgingtransactions andaccompanying capital market transactions, particularlyinthe 2019. in finance project and estate real as well as customers retail For example, the focus on customer business led to growth in the credit volume with corporate and systematically since has it which sustainability), ­implemented. Itagain madeconsiderable and progress inthisrespect infiscal 2019. agility, digitalization, focus, ­(business Three years ago, LBBW adopted anew strategy onthebasisof itsfour key strategic ­ ­significantly in excess of the regulatory requirements. Tier 1(CET1)capital ratio of 14.6 fee andcommission income. LBBW maintained itsconservative riskpolicy. Withacommon equity successfulwaswasreflectedits improvedwhich customer business, in interest net net income and ransactions. Furthermore, LBBW conducted its first blockchain-based transaction in commercial transaction blockchain-based first its conducted LBBW Furthermore, ransactions. procedure since late 2019intheshapeof ApplePay. amemberof As theinternational trade % to EUR 612 million (2018: EUR 549 million). The main earnings driver earnings main The million). 549 EUR (2018: million 612 EUR to % % andaSchuldscheintransaction volume of more thanEUR12billion. % asof 31December 2019,LBBW's capital resources remained objectives ­access - Key figures of theLBBW Group Income statement (EURmillion) Net interest income Net fee andcommission income Net gains/losses onremeasurement anddisposal Other operating income/expenses Total operating income Administrative expenses Expenses for banklevy anddepositguarantee system Net income/expenses from restructuring Consolidated profit/loss before tax Income taxes Net consolidated profit/loss Key figures in% Return onequity(RoE) Cost/income ratio (CIR) Balance sheet figures (EURbillion) Total assets Equity Ratios inaccordance withCRR/CRDIV(after fullimplementation) Risk weighted assets (EURbillion) Common equityTier1(CET1)capital ratio (in Total capital ratio (in%) Employees Group of whichallowances for losses onloansandsecurities %) 01.01. –31.12.2019 01.01. –31.12.2019 31.12.2019 31.12.2019 31.12.2019 – 1,806 10,005 2,551 1,676 256.6 – 151 – 102 – 167 71.8 13.9 80.5 14.6 22.9 – 31 558 169 148 612 444 4.6 01.01. 01.01. – – 31.12.2018 31.12.2018 31.12.2018 31.12.2018 31.12.2018 – 1,773 10,017 2,424 1,558 241.2 – 141 – 136 73.1 549 413 13.2 80.3 15.1 21.9 – 89 – 12 513 213 140 4.3

Landesbank Baden-Württemberg 2019 Sustainability Report 11 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 12 Strategy and management our bankingbusiness. cally, environmentally, andsociallyresponsible development aspartof a shape economiconsistentlyfuturesustainableby- and promotingsustainable to is goal Our culture. corporate and policy busi-ness our of part integral an the is Sustainability region. for our in responsible companies and are ­people we (“Landesbank”), bank public-sector a As and management Sustainability strategy ­annual sustainability program. the in operation into goals put and overarching measures specific defined and targets individual has into down broken LBBW are which policy, sustainability the implementing of purposes the For ations, socialcommitment, andcommunication. development inthefollowing areas: strategy customers, andmanagement, employees, business oper into allourbusiness activities asawhole. Itencompasses LBBW's guidingprinciplesfor sustainable at the LBBW Group, thus forming the basis for integrating economic, environmental, and social issues The sustainability policysets out guidelinesthatconstitute aframework for all sustainability ­ and guidelines for theirimplementation Sustainability policyandgoals aswell as­ our environment, andthenatural world. They guideourday-to-day actions andensure thatwe act responsibly withregard to ­ To thisend,we have established regulations andstandards thatare bindingfor allLBBW employees. process, increasing agility and, above all, firmly enshrining sustainability in our thoughts and actions. manner,the targeted driving a in business customerstrengthening are We 2017: since The four key strategic objectives of Landesbank Baden-Württemberg (LBBW) have been Exclusion criteria ∙ ∙ ∙ ∙ Biodiversity LBBW's climate strategy Humanrights Compliance General principles Umbrella sustainability goals sustainability policy LBBW Group Guidelines ∙ ∙ ∙ ∙   Guidelinesfor lending Guidelinesfor investment Guidelines for business operations management Guidelines for humanresources Business area-specific guidelines principles ­clearly other people, ­digitalization activities

Principles and Guidelines ­defined for Implementing LBBW’s Sustainability Policy and Goals - LBBW sustainability policy lines for sustainable investment, humanresources lending, andbusiness management, operations. guide- the as to referred guidelines, specific business-area and biodiversity; and protection, ­climate criteria for certain business ventures; overarching principlesgoverning compliance, humanrights, exclusion specific comprise They business. day-to-day our in implementation on guidance ­concrete The “PrinciplesandGuidelinesfor ImplementingLBBW's Sustainability Policy andGoals”provide • • 3. Employees • • • • 2. Customers • • • • 1. Strategy andmanagement    development aspartof ourbankingbusiness. consistently promote sustainable andeconomically, environmentally, andsociallyresponsible key stakeholders. Fair, responsible action isthebedrock of ourbusiness policy. Ourgoal isto Landesbank Baden-Württemberg acts in the long-term best interests of its customers and other with ateam of healthy, motivated, andqualifiedemployees. We sustainably promote anddevelop ouremployees sothatwe can shapeasuccessful future to itsemployees. LBBW is committed on an ongoing basis to being an attractive employer of and reliable partner development, andreducing environmental pollution. We support our customers in strengthening their commitment to climate protection, sustainable We offer sustainable products andservices to allcustomer groups whenever possible. Sustainability issues are considered whenwe make lendingandinvestment decisions. long-term customer relationships. We want LBBW to beaskilled,effective, andreliable partnerto ourcustomers andaimto ­ It goes without sayingthatwe comply withallapplicable legal regulations. day business. ­provide ourmanagerial staff andemployees withconcrete guidance onhow to conduct every The “PrinciplesandGuidelinesfor ImplementingLBBW's Sustainability Policy andGoals” and therefore to take sustainability-related factors into account inallbusiness policydecisions. thought and action throughout the Bank, in all specialized divisions, subsidiaries, and branches, We endeavor to useoursustainability management system to put into practice sustainable UE establish -

Landesbank Baden-Württemberg 2019 Sustainability Report 13 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 14 Strategy and management LBBW’s sustainability goals 4.  • • 6. Communications • 5. Socialcommitment • • 4. Business operations 2.  1.  3.     ­procuring materials andawarding contracts. ­travel. We applysustainability criteria intheselection of products andservice providers when the CO reduce to efforts Our organization. our within resources of use the optimize further will We our Bank. ­opportunity. We intend to maintain andfurtherraise thehigheducation andtraining level in purpose. At LBBW, we ensure agood work-life balance, andpromote diversity andequal We keep ouremployees informed about sustainability andprovide sustainability training. to commitment its fulfilling in made progress­sustainability. the on regularly public the to reports LBBW environmental, education, andsocialprojects andinitiatives. We addvalue to society withoursustainable products andservices andpromote nature/­ option. ­viable providers inourpurchasing andprocurement processes wherever thisisaneconomically We give preference to sustainable products andsustainability-focused suppliers andservice protection targets. We continually work to furtherreduce ouruseof natural resources andset ambitiousclimate lending ­ and earningspotential for customers andtheBankinto account inour lending advice and all business areas –includinginourown investment portfolio. We take sustainability risks the greatest extent possible. Thegoal isto increase theshare of sustainable investments in We offer sustainable investment products to allcustomer groups andinallasset classes to positive impact onsustainability. policy. For this reason, we strive for an active focus on projects, products, and services with a We want to successively implementsustainability asanintegral component of ourbusiness We promote the health and performance of our employees with specific measures for this for measures specific with ­ employees our of performance and health the promote We ­protection andtransparency, andprovide high-qualityadvice. 2 emissions generated by our business focus usage on energy and business-related decisions. We treat ourcustomers fairly, collaboratively, andrespectfully, ensure data UE LBBW’s Sustainability Policy andGoals Principles andGuidelines for Implementing to us (such as renewable energies – especially wind power – and energy efficiency) and offer and efficiency) energy and ­related products andservices to ourcustomers. – power wind especially – energies renewable as (such us to way of doingbusiness. We builtexpertise atanearlystage inthefuture markets thatare ­ LBBW contributes actively to thetransition from agreenhouse-gas-intensive to alow-emissions LBBW’s climatestrategy ­suppliers, andother partners withwhomwe work. this is­ ­products, operating decisions,strategies, andplansof theLBBW Group. Oneimportant elementof to disregard basichumanrights. Thisappliesto alltypesof business, transactions, projects, ­Declaration of HumanRights. We endeavor not to work withanycompany orinstitution known partofAs theinternational community, we are committed to theUnited Nations'Universal Human rights ­compliance withthelegal requirements aswell asethical andsocietal standards. ­our code of conduct are the foundation for responsible action of every individual at LBBW in It goes without saying that we comply with all applicable legal regulations. Internal rules and Compliance 2.1 General principles 2. Guidelines investment products associated withagricultural commodities. LBBW does not finance the delivery of weapons of war to other countries. LBBW does not sell any ­munitions and/oranti-personnel mines,whichare prohibited by international conventions. LBBW doesnot enter into anybusiness relationships withcompanies thatproduce cluster 1. Exclusion criteria 6.  5.  tive dialogwiththem. We inform ourstakeholders about ourcommitment to sustainability andengage inaconstruc ­business, we supporteducation initiatives andvarious other socialprojects. to society. LBBW istherefore active asadonorandsponsor. Intheregions inwhichwe do In additionto providing ourbankingservices, we want to actively contribute to addingvalue unconditional respect for therights of children. Thisappliesto ourcustomers, employees, UE relevant - ­­­

Landesbank Baden-Württemberg 2019 Sustainability Report 15 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 16 Strategy and management ­(e.g. theWashington Convention (CITES)). World Heritage Sites, wetlands according to theRamsar Convention) andendangered species ­international protected status (e.g. High Conservation Value Areas, IUCN protected areas, and nature without addingecological value. Thisisparticularlytrueof projects inareas with LBBW doesnot supportprojects thatclearlyleadto large-scale destruction of theenvironment All companies directly orindirectly useservices thataffect biological diversity (“biodiversity”). Biodiversity power from renewable energiessince 2009. 25 by sions •  •  •  tomer: commit to thefollowing to theextent thatthisiscompatible withourresponsibility to thecus benchmarks such as the United Nations Principles for Responsible Investment (PRI). We therefore terest of ourclientsandstakeholders. Whenimplementingoursustainability targets, we apply cision-making processes ininvestment By banking. doingso, we act inthebest andlong-term in- We integrate ESG(environmental, social,andcorporate governance) topics into analytical andde- 2.2.1 Guidelines for Investment 2.2 Business Area-Specific Guidelines the Ramsar Convention) andendangered species(e.g. theWashington Convention (CITES to according wetlands Sites, Heritage World UNESCO areas, protected IUCN Areas, Value vationwe therefore set ambitiousclimate protection goals. LBBW aimsto reduce itsabsolute CO This isparticularlytrueofInaddition,we projects are committed inareas withinternational to protected operating our business inamannerthatisclimate friendly, status (e.g. HighConser and faction, motivation, andperformance. Theseactivities are basedonthefollowing principles: future. Sustainable human resources activities therefore focus primarilyonincreasing theirsatis Our employees are ourmost important resource. They are thekey factor inshapingasuccessful 2.2.3 Guidelines for HumanResources Management •  •  •  2.2.2 Guidelines for Lending • •  •  2.2.2 Guidelines for lending •  •  •  ­customer: fore commit to thefollowing to theextent thatthisiscompatible withourresponsibility to the benchmarks suchastheUnited NationsPrinciplesfor Responsible Investment (PRI).We there- interest of ourclientsandstakeholders. Whenimplementing oursustainability targets, we apply ­decision-making processes ininvestment By banking. doingso, we act inthebest andlong-term We integrate ESG(environmental, social,andcorporate governance) topics into analytical and 2.2.1 Guidelines for investment 2.2 Business area-specific guidelines – includinginourown investment portfolio. to customers. Thegoal isto increase theshare of sustainable investments inallbusiness ­ ment opportunitiesare available thatmeet thecriteria for other products andservices offered able investment products for allcustomer groups andinallasset classes, provided thatinvest WeInvestment) actively inthefinance industry. promote sustainable investments. In our business with customers we offer sustain- We work toward greater acceptance andimplementation of thePRI(Principlesfor Responsible basic values, we willenter into anintensive dialog withthecompanies concerned. them to provide transparent information about ESGfactors. Ifwe identifyanyviolation of our We support businesses and corporations in which we invest as active shareholders. We urge ness ­ offered to customers. Thegoal isto increase theshare of sustainable investments inallbusi- ­investment opportunities are available that meet the criteria for other products and services tainable investment products for allcustomer groups andinallasset classes, provided that We actively promote sustainable investments. Inourbusiness withcustomers we offer sus and biological diversity, andtherefore alsoimprove oursustainability performance. ­customer groups that positively impact the living conditions of allpeople, theglobalclimate,  We aimto actively gear thelendingbusiness toward transactions, projects, products, and for avoiding, identifying, andmanagingsustainability risks. During the process of analyzing and deciding whether to finance projects, we use suitable tools value-added. projects to be financed, such as environmental impact, human rights and labor laws, and social When makinglendingdecisions,we consider thekey sustainability factors associated with biological diversity, andtherefore alsoimprove oursustainability performance. tomer groups thatpositively impact thelivingconditions of allpeople, theglobalclimate, and WeInvestment) aimto inthefinance actively industry. gear thelendingbusiness toward transactions, projects, products, andcus We work toward greater acceptance andimplementation of thePRI(Principlesfor Responsible for avoiding, identifying, andmanagingsustainability risks. During basic values, we willenterthe into anintensiveprocess dialog withthecompanies concerned. of analyzing and deciding whether to finance projects, we use suitable tools them to provide transparent information about ESGfactors. Ifwe identifyanyviolation of our Wevalue-added. support businesses and corporations in which we invest as active shareholders. We urge projects to be financed, such as environmental impact, human rights and labor laws, and social When makinglendingdecisions,we consider thekey sustainability factors associated with areas – includinginourown investment portfolio. % by 2020 based on 2009 figures. We have been meeting our electricity needs with needs electricity our meeting been have figures. We 2009 on based 2020 by % ­UNESCO 2 emis areas ------­business-related layoffs isaprimaryobjective. Our humanresources planningisaimedatretaining employees for thelongterm. Avoiding Employee retention continuing education options for thispurpose. ­careers aswell asto leverage theirexisting potential. LBBW offers awiderange of training and We helpouremployees to continue to develop themselves andtheirskillsthroughout their Personnel development for profile requirement and managers shouldbestructured. Our culture. leadership appreciative ­managers ensures that there isauniform understanding of how cooperation and between employees respectful a values LBBW Management the right to exercise thefreedom of association andassembly throughout theGroup. have Employees trust. mutual and openness by characterized is Bank the and councils staff the We keep ouremployees informed about important andcurrent issues. Thepartnership between Communication andinformation and other family members. children their for caring for support as well as flexibly time working their managing for models To achieve thebest possible balance between work andpersonal goals, we offer ourstaff various Work-life balance made inasociallyresponsible manner. Employee co-determination isrespected andsupported. are changes Necessary organization. and conditions working improve continuously to strive We Change management ­structured flexibly. We provide anup-to-date, complete remuneration system inwhichsalarycomponents can be Compensation andbenefits faction, motivation, andperformance. Theseactivities are basedonthefollowing principles: future. Sustainable humanresources activities therefore focus primarilyonincreasing theirsatis Our employees are ourmost important resource. They are thekey factor inshapingasuccessful 2.2.3 Guidelines for humanresources management Attractive social benefits effectively express our appreciation for our employees. -

Landesbank Baden-Württemberg 2019 Sustainability Report 17 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 18 Strategy and management

•  •  partofAs itsclimate strategy, LBBW haspledged to furtherreduce CO 2.2.4 Guidelines for business operations orien­ ­regardless of theirsex, nationality, ethnic origin,religion orworldview, disability, age, sexual We guarantee anunprejudiced working environment free of bias.Allemployees are ­ Equal opportunityanddiversity and productive for thelongterm. Professional in-house healthcare management allows usto keep our employees healthy, ­ Promoting health trends. Our organizational structure is tailored to the age breakdown of our employees and Demographic developments •  •  we set ambitiousstandards for ourown resource use. fuel consumption of ourvehicle fleet. ­reduce thevolume of business travel. We are alsoworking actively to decrease theaverage By offering expanded videoconferencing andteleconferencing options, we strive to further our IT hardware inthedata centers andtheworkplace.and systems building our optimizing continually by consumption energy our reduce We ­social andenvironmental standards, whichallof oursuppliers are required to accept. we reserve theright to extraordinary termination intheevent of non-compliance withour ­information about product origin, manufacturing processes, and materials used. Furthermore, the sustainability criteria inour procurement standards, we require oursuppliers to provide key factors for uswhenselecting products andservices. Inorder to ensure compliance with Environmental friendliness, fair compensation systems, andprimarilyregional originare The highpercentage of recycled paperusedfor copies willbemaintained. tation, or identity. 2 emissions. Accordingly, ­demographic motivated, valued ­ ­ the core activities of financialinstitutions. into it integrating also is but authorities, supervisory financial and ministries finance of agenda the down into ten measures. Inthisway, theEuropean Commission isnot onlyplacingsustainability on concrete threedefines plan actionmeasures.of packageoverarchingThe objectives are broken that ­infrastructure –theninthSustainable Development Goalforming partof Agenda 2030–by way of a and innovation, industrialization, sustainable of implementation the and protection climate to tion the ­investments and innovations. Accordingly, the European Commission published its “action plan on comes to supportingecologically andsociallyresponsible it business activity anddrivingsustainable when role key a plays sector financial The economy. our and planet our of development in 2015, countriesment” around the world have committed to working toward the more With the Paris Agreement in 2016 and the United Nations' “2030 Agenda for Sustainable Develop Sustainability-related regulatory andsupervisoryrequirements for banks ­customers, andsavers. in ­ ­support for companies as they move to sustainable business models and reflect the growing interest on focus a side and socialstandards. these meeting goals. We initiated on change processes, developed sustainable products andestablished actions ecological our focused systematically and time first the for Group the for ­­targets sustain­ specific set we 2006 In now.years many for agenda our on been has Sustainability Sustainable corporate governance sustainable investment opportunitiesonthepartof professional investors, highnet-worth retail financing of sustainable growth” in March 2018 with the aim of making a significant contribu significant a making of aim the with 2018 March in growth” sustainable of ­financing customer business, digitalization, and agility. This means we provide even greater even provide we means This agility. and digitalization, business, ­customer Today, sustainability isoneof LBBW's four key strategic objectives along ­sustainable ability - - -

Landesbank Baden-Württemberg 2019 Sustainability Report 19 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 20 Strategy and management areas of responsibility: environment, social,andgovernance (ESGfor short). principles andprocedures set out intheguidance notice encompass allof thesustainability-related ­­take current andfuture ESGrisks into account intheirriskmanagement andstrategic controlling. The risk-oriented understanding of sustainability with thepublication of its“Guidance Notice onDealing of understanding action-oriented an by characterizedsustainability. By contrast, theGermanFederal FinancialSupervisory Authority (BaFin)adopted a is plan action Commission's European The Standard andtheecolabel for sustainable financialproducts (point2). system serves asabenchmarkfor furtherrequirements andstandards, suchastheEUGreen Bond classification The activity.economic an of sustainability ecological the determining for criteria form One of thekey elementsof theaction planistheTaxonomy Regulation (point1),whichsets out uni- Objective 3:Foster transparency andlong-termism Objective 2:Integrate sustainability into riskmanagement Objective 1:Reorient capital flows towards sustainable investment and points: The European Commission's action plan for sustainable finance encompasses the following objectives with Sustainability Risks” inDecember 2019,which recommends thatthesupervisedentities explicitly 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. Fostering sustainable corporate governance andattenuating short-termism incapital markets Disclosing sustainability information andaccounting Supervisory rulesfor banks andinsurance companies Sustainability duties of institutional investors andasset managers Incorporating sustainability into ratings andmarket analyses Developing sustainability benchmarks Incorporating sustainability whenproviding investment advice Fostering investment insustainable infrastructure projects Creating standards andlabelsfor sustainable financialproducts Establishing auniform classification system for sustainability activities (taxonomy)

Sustainability organization Strategy and management Strategy

In early 2019, the central sustainability project was translated into a new organizational structure. Since then, a member of the Board of Managing Directors of BW-Bank has been responsible for sustainability­ activities in the six action areas (lending, investment, carbon footprint, human resources, regulation, and sustainability management). The action areas defined as part of the project, which was originally time-limited to 2018, continue to apply.

Sustainability Steering Committee

Headed by a member of the BW-Bank Board of Management

Carbon Lending Investment Footprintfootprint HR 21 action area action area action area action area

Regulation action area

Sustainability management action area

The Board of Managing Directors of LBBW is responsible at the highest level for the sustainable ­corporate governance of the Group and compliance with the sustainability policy.

The Sustainability Committee is the communications bridge between the Board of Managing Directors­ and the specialized divisions. This body consolidates and drives the shaping of opinions within the Bank concerning strategic sustainability issues and prepares information to enable the Board of­ ­Managing Directors to make decisions. The head of the Sustainability Committee is a member of the Board of Managing Directors of BW-Bank. The members of the Committee are division heads ­(second ­manage­ment level) with responsibility for sustainability issues and the managing directors of key subsidiaries. The Sustainability Committee met five times in 2019.

The Sustainability Management & ESG (Environment, Social, Governance) Group consolidates the Group's many sustainability activities into a sustainability program that is drawn up annually. It coordinates all sustainability activities at LBBW, collects the relevant data, prepares statements for rating inquiries, prepares sustainability reporting, and initiates the further development of LBBW's sustainability policy.

In 2019, action area owners were nominated for the four action areas of lending, investment, carbon foot- print, and human resources. In each case, the respective manager is assigned to departmental manage- ment level or higher and is responsible for managing and coordinating the operational working groups. Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Landesbank Baden-Württemberg 2019 Sustainability Report 22 Strategy and management and theGroup. Supervisory Board withregular, timely, andcomprehensive information about key developments attheBank ­Directors for information ordecision-makingpurposes.TheBoard of ManagingDirectors inturnprovides the (management review inaccordance withISO 14001).Key issues are presented to theBoard of Managing Once ayear, environmental/sustainability management atLBBW isevaluated by top-level management mental auditsensure thattherequirements for acertified environmental management system are met. ­with ISO14001andEMAS(Eco-Management andAudit Scheme).Independentinternal andexternal environ In terms of environmental management, a part of sustainability management, LBBW is certified in accordance estate andthevolume of ­ target figures. KPIs within the sustainability strategic objective include the volume of green bond-eligible real areThese ­quarterlythen basis. Group. Thisinvolves collecting internal Key-Performance-Indicators (KPI)for allthestrategic objectives ona Since 2019,abalanced scorecard hasbeenused to manage the four strategic objectives attheLBBW Division 1 Sustainable corporate governance to ensure compliance withthesustainability policy Responsible: Memberof theBoard of ManagingDirectors of BW-Bank Responsible: Chairmanof theBoard of ManagingDirectors of LBBW Division LBBW divisionheadsandmanagingdirectors of key subsidiaries 2 Strategic sustainability issues: from research to board paper sustainable investments. Concept, coordination, andproject management as Chairmanof theSustainability Committee ­reportedBoardtothe Directors of Managing compared and defined the with Sustainability Management &ESGGroup Division LBBW Board of ManagingDirectors 3 Sustainability Committee Action area owners Working Groups Division 4 Division 5 Division 6 Division ... - place for pilot customers inorder to allow usto compare thedata withthesector averages. ­and organizational optimization. compared with2009)andare continuously working to furtherreduce CO We currently expect to achieve ourCO ­­In thisway, we are contributing to UNSDG13oncombating climate change anditsimpacts. ­business operations andto supportlow-emission business activity through ourbankingservices. in areas withasubstantial effect onoursustainability performance. further sustainability activities. We identify and define appropriate sustainability measures primarily sustainabilityour etpageclassification13 (see This policy seq.). allows us determineto priorities for important role. Therelevant focus areas are geared toward international sustainability standards and issueswith ­sustainability rating agencies, thestandards andexpectations of ourstakeholders playaparticularly theindividual of the materiality ­regard to LBBW'son business modelandsustainability performance. Inadditionto therequirements of depending “significant”, or as “average”, classified are “minimal”, performance sustainability our on activities business our of effects potential The Materiality analysis of LBBW's credit portfolio for individual sectors (see page 110). In addition, ­medium term is set to be taken in 2020. As part of a pilot project, we calculated the ­various methods andproviders in2019,andadecisiononthecollection method to beusedinthe start by collecting to and intend controlling the We emission figures Bank. for a new loans and as loan finance extensions. We we investments the by caused emissions the is challenge bigger The ­Sustainability Policy andGoals”(seepage 15et seq.).We aimto reduce theCO LBBW's climate strategy forms part of the“Principlesand Guidelines for ImplementingLBBW's Climate strategy Stakeholder expectations Sustainability policy Materiality analysis UE 2 target for 2020(minus25 sustainability rating agencies and sustainability standards Regulatory requirements % interms of absolute CO Requirements of 2 emissions through ­ ­specific ­“financed 2 ­collection emissions of our 2 ­emissions”

­emissions ­examined technical

­will take

Landesbank Baden-Württemberg 2019 Sustainability Report 23 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 24 Strategy and management Analysis of sustainability issues inourbusiness activities Strategy andmanagement LBBW sustainability policy Customers LBBW focus areas Real estate Payments, cards, accounts consumer protection Product responsibility/ focus Financing withasustainable Sustainable investment products governance) socialissues, corporatement, investment business (environ- Sustainability standards in Corporate governance Regulation Compliance governance) socialissues, corporatement, financing business (environ - Sustainability standards in LBBW focus issues payment problems for youth, dealingwithcustomers with customers, personal finance education and excessive debt, fraud prevention for prevention of ­ regulations pertaining to advertising, projects, ­ construction standards for customer improve efficiency, energy sustainable consulting onbuildingrenovation to Real estate financing and financing, efficiency), positive incentive loans ­building renovation to improve energy and technologies (e.g. renewable energies, Promotion of climate-friendly projects asset management green bonds,social bonds),sustainable investment funds,structured products, Offering sustainable investments (e.g. exclusion criteria proprietary investments, definition of in business withcustomers andin Management of reputational risks corporate governance social responsibility, andresponsible ­implementing ency, creation of incentive systems for management structure, tax transpar Transparency inbusiness activities, ability themes ­society), cards oraccounts withsustain ­services ­ Financial inclusion(access to financial oriented Responsible salespractices, customer- lation Compliance withsustainability legis protection, corporate ethics tions, anti-corruption measures, data efforts, embargoes andfinancialsanc Internal andexternal fraud-­ exclusion criteria and working ­ ­environmental ­ Financing taking into account of sites to theirnatural state ups of existing contamination, and return ­ for disadvantaged groups in advice, compliance withlegal municipal ­ conditions, definition of environmental issues, issues, ­environmental poverty amongtheelderly protection, humanrights development, clean- prevention - - ­ - - ­performance sustainability Effect onour Significant Significant Significant Significant Significant Significant Significant Significant Average Average commitment to sustainability Influence onour ­banking secrecy, data protection needs-based advice, transparency, protecting ­safeguarding customer interests, excessive debt, Loss of confidence due to thefinancialcrisis, influencing laws Macro sustainability issues and related growth markets, UNSDGs species ­ ­forests ­ ­resources, destruction of nature reserves and policies, worldwide scarcity of raw materials and Disclosure of investment criteria andinvestment forests essential to life, UNSDGs ­resources, destruction of nature reserves and worldwide scarcity of raw materials andnatural change, biodiversity andloss of speciesdiversity, human rights ininvestment transactions, climate Environmental violationsand violationsof ­essential to life, UNSDGs ­destruction of nature reserves andforests scarcity of raw materials andnatural ­ diversity andloss of speciesdiversity, worldwide rights infinancingprojects, climate change, bio Environmental violationsand violationsof human resources, UNSDGs gies; worldwide scarcity of raw materials and and ­ Climate change; financingneedsininnovative issues social development: clearfocus onsustainability tions, UNSustainable Development Goals(SDGs), Loss of confidence inbanks, disclosure obliga- Data protection, avoidance of socialexclusion resources, climate change, efficiency energy Worldwide scarcity of raw materials andnatural ­sustainability taxonomy, BaFininformation sheet ­on Climate-related FinancialDisclosures (TCFD), action plan, recommendations of theTask Force German CSRDirective Implementation Act, EU Securities Trading Act (WpHG) GermanBankingActlaundering, (KWG), German and withlaws concerning business, anti-money Fraud, compliance withgenerally applicable laws promising sectors, projects andtechnolo- essential to life, biodiversity andloss of diversity, climate change, sustainability-­ resources, - FS 15-16 418-1, GRI indicators FS 10-11 FS 6-8, FS 10-12 FS 6-8, FS 6-8 412-3, 102-18 to 102-39 FS 7-8 412-3, 201-2, FS 16 418-1, FS 8 FS 307-1 418-1 206-1, 205-1 to 205-3, Making ourcommitment measurable ­BW-Bank guidelines, guidelinesfor retail customer advice at “Deutscher Werberat” (GermanAdvertising Council) Voluntary commitments inadvertising according to Banking in investment business, Principlesfor Responsible Investment (PRI)andguidelines for sustainability Warming” mutual funds,Principlesfor Responsible “LBBW Nachhaltigkeit ­ ­Code for the“LBBW Nachhaltigkeit Aktien”, ­ investment products, European SRITrans­ Share of total volume accounted for by sustainable munitions, Principlesfor Responsible Banking cluster munitions,anddelivery systems for cluster company exclusion list for anti-­ exclusion criteria for proprietary investments, guidelines for sustainability ininvestment business, Principles for Responsible Investment (PRI), ­Responsible Banking Compact, traffic light review, Principles­ ­for ­ personnel minesandcluster munitions,­ Lending rules,company exclusion list for anti-­ business, Principlesfor Responsible Banking strategy, guidelines for sustainability inlending buildings, LBBW green bond framework, climate accounted for by credit facilities drawn for green newable projects, energy percentage of portfolio ­accounted for by credit facilities drawn for re - Percentage of total project finance portfolio (as of March 2019) Regulations Sustainability Policy andGoals,LBBW Sustainability Principles andGuidelinesfor ImplementingLBBW's and voluntary commitments signed LBBW parameters, internal standards, Selected more detailed, internal the LBBW Group Code of Conduct, guidelinesondata protection at by ­ total commercial real estate financing accounted ­ buildings, LBBW green bondframework, share of Standards for construction of new sustainable ­objective of “Sustainability” atLBBW “Regulation” action area withinthekey strategic ­guidelines guidelines, fraud andcorruption prevention Code of Conduct, money launderingprevention energy-efficient buildings sustainability ­ in lendingbusiness, ­ Renten”, and“LBBW Global personnel mines, UN Global guidelines for parency

for to theSDGs Allocation

7, 9, 11, 12,13 11, 9, 7, 13, 14, 15, 16 15, 14, 13, 1, 2,3,6,8, 13, 17

8, 10 1-17 1-17 1-17 13

Landesbank Baden-Württemberg 2019 Sustainability Report 25 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 26 Strategy and management Analysis of sustainability issues inourbusiness activities Business operations and communication Social commitment Employees LBBW sustainability policy Resource useandCO Corporate culture Corporate citizenship Work-life balance Sustainable procurement LBBW focus areas and development Personnel hiring, management, Stakeholder dialog 2 emissions mobile working. clusion, co-­ sation models,occupational safety, in- sity, fair healthmanagement, compen- Equal opportunitiesandcultural diver childcare options Flexible working timemodels,offer of suppliers basedontrust procurement, long-term cooperation with supplier selection/evaluation andproduct Integrating sustainability criteria in LBBW focus issues native learningand working methods. women digital inmanagement, andalter ployee talent management, management, Training andcontinuing education, em- projects environmental, ­ ­volunteering, promoting nature-related/ Promoting foundations, corporate offsetting. construction of own buildings,carbon (including electric mobility),responsible sustainablemanagement, business travel hazardous materials, waste, vehicle fleet water, facility energy), management, Responsible useof resources (paper, groups insociety andemployees Exchange of opinionswithstakeholder determination by employees, education, andsocial - - ­performance sustainability Effect onour Significant Significant Average Average Average Average Minimal commitment to sustainability Influence onour Transparency Act (EntgTranspG) collective agreements, GermanPay Structure nation, co-determination rights, provisions of graphic ­ Social responsibility asanemployer, demo­ of collective agreements, demographic change Social responsibility asanemployer, provisions forests essential to life re­ worldwide scarcity of raw materials andnatural bio­ human rights atsuppliers, climate change, Environmental violationsandof and influencinglaws Macro sustainability issues responsibility asanemployer, UNSDGs Growing impact of demographic change, ­ species diversity, climate change, UNSDGs. forests essential to life, biodiversity andloss of resources, destruction of nature reserves and Worldwide scarcity of raw materials andnatural societal expectations of LBBW Transparency inbusiness activities, identifying LBBW locations Contribution to regional development of ­ sources, ­ diversity andloss of speciesdiversity, change, equalopportunity, discrimi- destruction of nature reserves and social

406-1 405-1 to 405-2, 403-8 to 403-10, 403-3 to 403-6, 403-1, 102-41 414-1 to 414-2 408-1, 409-1, 308-1, 407-1, GRI indicators 404-1 to 404-3 305-1 to 305-5 303-3 to 303-5, 301-1 to 301-3, 102-43, 102-44 102-40, 102-42, 413-1 Making ourcommitment measurable

for sustainability inhumanresources management Management positions,diversity charter, guidelines management guidelines for sustainability inhumanresources Number of spots inLBBW-internal daycare facilities, guidelines for sustainability inbusiness operations declaration for suppliers, product group strategies, Supplier information questionnaire, sustainability and voluntary commitments signed LBBW parameters, internal standards, Selected more detailed, internal women inmanagement ­sustainability ­ employee, ­ Personnel development measures for each data usingaccounting software business operations, recording of environmental Climate strategy, guidelinesfor sustainability in employee review rate, guidelinesfor in humanresources management, to theSDGs Allocation 3, 4,8,10 4, 5,8 8, 13 9, 13 5, 8

Landesbank Baden-Württemberg 2019 Sustainability Report 27 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 28 Strategy and management Dialog withcustomers concerns andwhatthey expect from ourBankandtheproducts we offer. we launchedadialogseriesto engage with various customer groups to learnabout theirparticular global changes willaffect LBBW andwhatourstakeholders expect of usinthisregard. Subsequently, future how out exercisefinding wasthis of objective main The 2014. in analysis” “materiality called In order to focus oursustainability activities more precisely onthecentral issues, we conducted aso- Dialog withcustomers andstakeholder communication •  •  •  •  challenges at state and municipal level. Political representatives, officers from public utility public from officers representatives, Political level. ­companies andexperts from theBankdiscussed thesocietal challenges involved insuccess municipal and state at and tasks associated ­challenges the and change climate addressed 2019 May 17 on dialog future first The goals. ­sustainability is to jointly develop potential solutions to thechallenges intheregion inlinewiththeglobal ­customer dialogseriestogether withpolitical representatives. Theaimof the“future dialogs”­ Start of the“future dialogs”for allcustomer groups in2019:We are continuing theexisting tional clientsdidnot have aclearpicture of theBank's commitment to sustainability. was generally viewed asareliable business partnerwithgood customer service. However, institu- of investors for reasons includinggrowing market demandandstakeholder expectations. ­ The key findings: The importance of sustainability issues will increase further from the perspective ­Around 40institutional clientsresponded to thesurvey. developments. In addition, we wanted to know how they perceive our commitment to ­importance of sustainability issues attheirinstitutions, thekey aspects, andtheiropinionof future 2017 institutional clients:We sentourinstitutional clientsawritten survey inquiringabout the a sustainable relationship between customers andtheBank. into be incorporated always should ­business policiesandactivities. Transparency, continuity, concept andtrust are thequalitiesatheartof an overarching as Sustainability findings: key The time, we asked ourbusiness partners whatthey expect of us. they are currently focusing onandtheeffect thisishavingontheirbusiness models.At thesame sustainability what out find to representatives company selected seven with held we sion 2017 corporate customers: “Sustainability: ChangingBusiness Models”was thetitleof thediscus credibility incommunication withcustomers are highly prioritized. expect theBankto actively take responsibility for theenvironment andsociety. Transparency and particular are very keen to usetheirown money to make adifference insociety. Above all,they products were not well known orcustomers were unaware of theirfullextent. Young customers in ­for the topic of sustainability, our commitment to sustainability and our sustainable investment The key findings: Although customers are knowledgeable and demonstrate a high degree of young ­ private ­between 18and29to theirown customer theBW-Bank dialog, Sustainability Around Summit. 20 and retail of groups with analysis ­banking customers. To materiality better identifytheneedsof young adults,we invited customers aged the of results the analyzed ­extensively 2015/2016 retail customers/private bankingcustomers: Inseveral rounds of discussions, we customers participated inthisevent. ­sustainability. ­affinity ­issues LBBW series ­fully - tainability andimprove communication withstakeholders. Thefollowing issues are themainpriority: We use the insights gleaned from past customer dialogs to further reinforce our commitment to sus In summary, theprevious dialogseriesindicates thefollowing: for institutional customers, suchasthesavingsbanks. Management Investmentgesellschaft mbHdescribedtheinvestment process andtherange of services and BW-Bank can helpretail customers inparticularto act sustainably. Representatives of LBBW Asset ness for the“Fridays for Future” initiative was alsodiscussed. Another topic addressed was how LBBW the transformation of theeconomy, sector and theenergy inparticular. Thehighlevel of publicaware cussion mainlyfocused onthefurther development of LBBW's sustainability strategy inconnection with The second dialogwiththe climate activists from Fossil Free Stuttgart took place inJuly2019.Thedis the dialogin2019. agreement continue to an with economy. ended the talks and sector The transformationfinancial the of the and redirection, capital divestment, included organization) (non-governmental NGO the and LBBW 2018. Theaimwas to better understand eachother's positions andmotivations. Thetopics discussed by We met members of theclimate protection group Fossil Free Stuttgart for aninitialdialoginNovember Dialog withNGOs •  •  •  •  •  •  •  Improving LBBW’s sustainability profile Intensifying sustainability asakey strategic objective for LBBW Stepping upcommunication withcustomers about sustainable products andservices Expanding ourrange of sustainable products Transparency, authenticity, andtrust are thekeys to asustainable relationship withcustomers. ­activities to date. LBBW andBW-Bank are heldinhighregard, but customers know littleabout oursustainability All ourcustomer groups are very interested insustainability andare addressing thistopic intensively. the market intheform of the“Stuttgart climate loan”(seepage 104). construction measures withanattractive interest rate was pursued andsubsequentlylaunchedon asespecially rewardsthat barriers low with loan municipal conceptregionalor the a of dialog, were identified and renovation ­important for climate protection inthelocal environment inparticular. construction Following onfrom thefuture Energy-efficient findings: key The promptly implemented withadirect positive influence. be can that measures specific on placed was focus particular A solutions. oriented ­shaping thetransition to renewable energiesinBaden-Württemberg andjointlypursuing future- ­energy-efficient - - -

Landesbank Baden-Württemberg 2019 Sustainability Report 29 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 30 Strategy and management of themost recent employee survey can befound onpage 129. We regularly survey ouremployees, whoconstitute another important stakeholder group. Theresults Employee survey trade fairs and conferences aswell as our own events (more information can befound onpage 44et seq.) We regularly share information withourretail andcorporate customers andinstitutional investors at Customer andinvestor communication ­activities. in dialog ­November 2019,representatives bilateral of theBankfrom various divisionsreported ontheirsustainable subsequent a In financing. and lending and investment, and saving ­governance, studythis wasand surveyed about sustainability-relatedspecific measures the in ­für nachhaltige Kapitalanlagen GmbH(NKI)evaluates thebiggest Germanbanks. LBBW ­ The “BankRating 2019”study publishedby WWF Germany(World WideFund For Nature) and­ Dialog withWWF andNKI ­areas participated in ­of ­corporate Institut The diagram below shows anoverview of LBBW's relevant stakeholder groups. Relevant LBBW stakeholder groups Young people, Trade unions, associations, Consumer Churches ­Society mental NGOs, Globalization Social NGOs Environ NGOs, NGOs and ­ Customers, Suppliers, ­Suppliers Retailers customers - Freelancers, ­employees, ­Employees ­employees Potential Salaried City of Stuttgart, Savings banks ­stakeholders State of BW, Potential Owners UN, EU, Regulatory authorities, City eral Stuttgart, State ­ German Fed ­Government, ­Politics of BW of Daily newspapers, Financial press - of of Media TV, and Rating agencies, Universities, ­researchers Institutions, Institutional ­Science Trend investors Analysts, markets ­research ­Capital

Landesbank Baden-Württemberg 2019 Sustainability Report 31 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 32 Strategy and management down by sustainability policyaction areas (seepage 13et seq.) alongwitheachproject's status. were partiallycompleted. Thefollowing tables provide anoverview of the2019program broken In 2019, the program comprised a total of 33 projects. 31 projects were completed, while two is informed about thestatus once ayear aspartof themanagement review. we document whether the projects have been successfully realized. The Board of Managing Directors forthe projects specific ­sustainability program. define Thesustainability team acts inanadvisorycapacity. At theendof eachyear, subsidiaries its and LBBW at divisions specialized responsible the Based onthe“PrinciplesandGuidelinesfor ImplementingLBBW's Sustainability Policy andGoals”, actively pursued andput into practice. environmental andsocialcriteria are integrated into theirbusiness activities thatsustainability can be The various departments play a significant role in the sustainability management system. It is not until­ Implementation of thesustainability program 2019 UE ­projects

√ Customers SDG 3,4,6,11 first socialbond (framework) for LBBW andissue of LBBW's Development of asocialbondprogram corporate sectors, CO studies onsustainability covering individual Publication of various “InFocus” spotlight Center (EBZ)andLBS eration withtheStuttgart Advisory Energy energy-­ Low-interest loansfor retail customers for SDG 7,11,13 bond-eligible property financing. (CRE =commercial real estate) ongreen Training of backoffice CREriskmanagers SDG 1–17 SRI funds. carry the FNGtransparency logo for retail the “LBBW GlobalWarming” ­ keit Renten” sustainable mutual fundsand ­Nachhaltigkeit Aktien”and“LBBW Nachhaltig Reapplication for certification of the“LBBW SDG 7,11,13 Supporting green bondtransactions SDG 1–17 sustainable climate change fund mutual fundsandthe“LBBW GlobalWarming” and “LBBW Nachhaltigkeit Renten” sustainable Code for the“LBBW Nachhaltigkeit Aktien” Re-signing of theEuropean SRITransparency responsible corporate governance. a framework for sociallyandecologically ten principlesof theUNGlobalCompact as office. The review criteria are basedonthe sustainability review of borrowers by front for corporate customer business for the Introduction of auniform review process (Forum for aSustainable Future) series. ­“Forum füreinenachhaltige Zukunft” ­ Organization of customer events inthe Plus Nachhaltigkeit” sustainable balanced fund. Start of marketing for the“LBBW MultiGlobal SDG 1–17 Development Goals(“Wertstrategie 50”). the implementation of theUNSustainable ability fundfor retail customers thatsupports Development andmarketing of asustain­ SDG 11,13 SDG 7,11,13 house standard) in the“Bahnstadt” area of Heidelberg(passive “urban ­ Construction of the“urban and element” Project general. ­terminology, andsustainable finance in

completed view” sustainable residential complex efficient building renovation in coop- ≈

partially completed 2 (“Stuttgart climate loan”). , key sustainability mutual ­ ×

fund to not completed

­ Finance ­Project &Transportation Risk Management Real Estate, Investmentgesellschaft mbH LBBW Asset Management Treasury Investmentgesellschaft mbH LBBW Asset Management Markets Financial Institutions & Investmentgesellschaft mbH LBBW Asset Management Corporate Customers II Key Account Banking Stuttgart Retail Customers/Private Responsible Asset Management Key Account Product Management and ment GmbH LBBW ImmobilienManage- Research

Status √ √ √ √ √ √ √ √ √ √ √ √ is valid from 06/2019until05/2020. ability Funds hasbeenconfirmed again and­ The European Transparency Code for Sustain- than 650corporate customers. light review hasbeenperformed for more Since itsintroduction inApril2019,thetraffic discussion evening. retail andbusiness customers atanexclusive Hans JoachimSchellnhuberspoke to 335 On 23September 2020,climate expert Prof. and theapartmentssold. Both construction projects were completed 30 September 2019(seealsopage 84). LBBW's first socialbond was issued on­ Nachhaltigkeit”. and isnow called “LBBW MultiGlobalPlus was expanded to includeasustainability filter In June2019,the“LBBW Multi-Global”fund in October 2019(seealsopage 80). marketed to retail customers for thefirst time The “Wertstrategie 50”sustainability fundwas ­Markets customers to download from theLBBW All of thestudies are available for ­ motive, telecommunication andfinance sectors. ­published, includingontheutilities, auto­ Ten “In-Focus” spotlight studies were loan” since August 2019(seealsopage 104). BW-Bank hasmarketed the“Stuttgart climate Training hastaken place (seealsopage 100). stars. obtained theFNGtransparency logo withtwo previous year, “LBBW GlobalWarming” also for thethird year insuccession. inthe As the FNGtransparency logo withtwo stars Nachhaltigkeit Renten” fundswere awarded The “LBBW Nachhaltigkeit Aktien”and“LBBW issues. In 2019,LBBW supported seven green ­ Implementation otl (www.LBBW-markets.de). ­portal registered bond

Landesbank Baden-Württemberg 2019 Sustainability Report 33 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 34 Strategy and management Employees √ SDG 5,10 ­management. upper levels of departmental anddivisional the ­ for women withtheaimof increasing Continuation of the mentoring program SDG 5 Service GmbH target list publishedby berufundfamilie of measures from the“berufundfamilie” audit life stage-friendly company Implementation Continuous improvement asafamily-oriented, Project Social, Governance). first “AM ESG (ESG=Environment,Academy” mbH (LBBW AM)andimplementation of the Asset Management Investmentgesellschaft platform for sustainability topics withinLBBW Conceptual development of aninformation SDG 4 respective studies. tuition fees are paidpriorto thestart of the ­examination days. Inaddition,50 already provided for classroom training and This entitlementisinadditionto theleave year to prepare for theirexaminations. given five days of paidleave per calendar Employees whoare studying onthejobare SDG 4,5,10 divisional management roles. preparing themfor internal ­ employees whoalready work for LBBW and aim of strengthening ­ and jointdevelopment measures withthe are given anambitiousrange of individual on promoting female managers. Participants talents. One of thesetalent groups is­ management withaview to promoting top Initiation of two talent groups aspartof talent

completed proportion of female managers atthe ≈

partially completed high-potential ­ competition for × % of thetotal

female not completed focused Responsible HR HR HR Investmentgesellschaft mbH LBBW Asset Management HR Status √ √ √ √ √ Implementation January 2019withnineparticipants. program for top managers was launchedin group for women withinthementoring The “Female Potential Top Managers” ­ divisional managers. mentors andninemalementors amongthe part intheprogram. There are four female communicated. Atotal of 13women took ­ program andtheapplication process was ­management level were informed viathe All divisionalmanagers andwomen at The re-audit was successfully passed in2019. as well asadditionalevents andtraining. format withatotal of around 80participants, accompanied by thenew ­ established withinLBBW AMin2019. Thiswas An internal information platform onESGwas paid 50 prepare for theirexaminations and­ ­advantage of theadditionalleave days to In total, more than80students took % of thetuition fees. “AM ESG-Academy” LBBW talent

­ Business operations CleverShuttle, etc.). stadtmobil (conceivably alsostella sharing, Now (formerly car2go), Flinkster, teilAuto, LBBW Group usingsharingconcepts like Share Expansion of themobilitymixwithin processes. with definition of clear responsibilities and (Bank strategy, budget, humanresources) introduction of management system anenergy Step 1:Clarification of the conditions for the Act Services onEnergy (EDL-G). also meeting therequirements of theGerman process with regard to efficiency energy while to helpcontrol thecontinuous improvement Introduction of management software energy continuously improving airquality working together to address thechallenge of ­for cleanairandwhoare committed to who are aware of theirshared ­ and consisting of majoremployers inStuttgart initiative runby thefederal state andthecity LBBW to jointheCleanAirAlliance, an case of replacement investments inside andoutside buildings,primarilyinthe extent available andappropriate) for lighting Continued transition to LEDtechnology (to the SDG 7,9 SDG 13 SDG 11 SDG 13 SDG 12 SDG 13 • • • • consumption inthearea of IT: Various measures aimedatreducing energy Project able cups. samples atthecompany restaurants to reus Conversion of thecupsusedfor food retention

completion of thetest) more quicklythanbefore following the allowing test systems to bereturned systems (arapid provisioning process New provisioning concepts for temporary another system) whether systems can be migrated to System deactivation (e.g. determining Printer consolidation identify optimization potential Review of system capacity usage to responsibility - Group Purchasing Management GmbH LBBW Corporate Real Estate Sustainability &ESG Management GmbH LBBW Corporate Real Estate LBBW Gastro Event GmbH Information Technology Responsible Status ≈ ≈ √ √ √ √ the building. changed for LEDlighting invarious areas of In 2019,fluorescent tubes were again ex The conversion to reusable cupsiscomplete. • • The following aspects have beenimplemented: The project hasbeenlargely completed. expenses claim. can thenbesettled viatherespective travel (formerly car2go) for business trips.Thetrips from thecar-sharing provider Share Now their disposalandcan now alsousevehicles have hadanadditionalmobilityoption at Since thestart of 2019,LBBW employees • • • ­external engineeringfirm,included: ­particularly withtheinvolvement of an Some of the measures performed in2019, Directors. Neske, Chairmanof theBoard of Managing of theClean AirAlliance was signedby ­ On 14February 2019,LBBW's membership • Implementation

Data center consolidation Server reduction/virtualization employee was appointed. ­organizational purposes, and an external assigned to facilities engineeringfor forecastingbilling, andreporting were In addition,alltasks relating to energy certified providers. Performance of amarket survey among tion concept Creation of asystem andimplementa- ­requirements (technical andorganizational) Summary of theinternal and­ Reduction in the numberof printers general

Rainer -

Landesbank Baden-Württemberg 2019 Sustainability Report 35 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 36 Strategy and management √ SDG 12,13 cases per year. Saving: 80sheets percase, approx. 1,400 data transfer. ­transmission to theauthorities viasecure banking ­ a digital process. Further processing in of ­ Switching from paper-based processing existing processes: Saving paperby digitalizing thefollowing SDG 13 now besolelyelectric. vehicles): Newly acquired poolvehicles will location to e-mobility(electric/plug-in hybrid Conversion of thevehicle poolattheStuttgart SDG 12,13 year (applyingaconversion factor of 4:1) ­theoretical savingof 7,500plastic cupsper to 500greturnable jars. Thisresults ina Switching theprovision of organic yogurt • • • • SDG 13 2021 LBBW andBW-Bank buildingsfor 2020­ Purchase of 100 SDG 7,9 Digital Infrastructure). ­German Federal Ministry of Transport and ­sustainable mobility(sponsored by the to improve traffic conditions andensure information andcommunication campaign Sciences, aresearch- andtechnology-based project of Heilbronn University of Applied Active participationinthe“PendlerRatD” Project SDG 12,13

completed

official requests for information to per year) (Saving: approx. 60,000sheets of paper Complaint process (Saving: approx. 72,000sheets peryear) from theposting service provider Processing of accompanying documents per year) (Saving: approx. 44,000sheets of paper ment process for credit card accounts Coordination andaccompanying docu- paper peryear) (Saving: approx. 110,000sheets of Account changingservice operations willbepaperless, with ≈

partially completed % green electricity for the ×

not completed and and Bank Services Group Purchasing LBBW Gastro Event GmbH Responsible Group Purchasing Group Purchasing Bank Services Status √ √ √ √ √ √ listed iscomplete. The digitalization of theinternal processes 2021. LBBW andBW-Bank buildingsfor 2020and 100 on e-bikes for four weeks. 80 participantsfrom LBBW eachrode to work Heilbronn University of AppliedSciences. ­ took first place inthe study conducted by 400 potential test cyclists LBBW taking part, With around 1,000LBBW employees and ­e-mobility (electric/plug-in hybrid vehicles). pool (LBBW pool)was fullyconverted to ofAs 31December 2019,the Stuttgart vehicle The conversion to returnable jars iscomplete. mation was switched over to adigital process. The processing of official requests for infor Implementation % green electricity was purchased for the

- √ Social commitment andcommunication deadline for thisreport. Other projects willbeaddedduringtheyear. detailed below inthesustainability program for 2020andbeyond by theeditorial The specialized divisionsof LBBW anditssubsidiarieshadincludedtheprojects Sustainability program for 2019andbeyond utiaiiy fair ­sustainability “LBBW ZukunftsInitiative”, aninternal Organization andimplementation of ­ Stuttgart electric scooter rental system): Cooperation withstella sharing(Stadtwerke SDG 17 business, andNGOs ­customers andrepresentatives of politics, ­dialogs ontopics with suchasenergy Organization andperformance of future • • SDG 4,9,12 Slam (“Nachhaltigkeits-Slam”) Organization of the 4th Stuttgart Sustainability Project

completed

logo Scooters to bebranded with­ Discounted rates for LBBW employees ≈

partially completed BW-Bank ×

not completed

Sustainability &ESG Sustainability &ESG Responsible PK/PVM Stuttgart Key Account Product Management and Status √ √ √ √ throughout theGroup. and attended by around 250colleagues from neutral events, heldon23September 2019 the motto of oneof LBBW's first climate-­ “Shaping theFuture. Acting Sustainably” was scooter rental system. stella Stadtwerke sharing, Stuttgart's electric Since April2019,LBBW hascooperated with took placeGermany” on17May2019. and theTransition to Renewable Energiesin The future dialogentitled“Climate Change Slam on23May2019. BW-Bank heldthe4thStuttgart Sustainability Implementation UE

Landesbank Baden-Württemberg 2019 Sustainability Report 37 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 38 Strategy and management Customers SDG 11 Bauen e. ­(“Deutsche GesellschaftfürNachhaltiges the GermanSustainable BuildingCouncil Mainz, withthegoal of certification by (“Rheinkontor”) inthe“Zollhafen” area of Construction of asustainable office building Project • • • SDG 7 SDG 11 goal of certification by theDGNB “LEO Business Campus” inStuttgart, withthe Construction of thesustainable office building SDG 5 personnel development). ­opportunity criteria (incl.diversity, ­ ­companies onthebasisof various equal Offering anindex certificate that­ SDG 1–17 sustainable climate change fund mutual fundsandthe“LBBW GlobalWarming” and “LBBW Nachhaltigkeit Renten” sustainable Code for the“LBBW Nachhaltigkeit Aktien” Re-signing theEuropean SRITransparency SDG 7,11,13 Supporting green bondtransactions SDG 7,13 SRI funds to carry theFNGtransparency logo for retail and the“LBBW GlobalWarming” mutual fund haltigkeit Renten” sustainable mutual funds Nachhaltigkeit Aktien”and“LBBW Nach- Re-application for certification of the“LBBW SDG 11,13 investors. of sustainability risks amongreal estate America withtheaimof increasing awareness example of thereal estate portfolio inNorth Analysis of sustainability risks basedonthe LBBW's commercial real estate (CRE)business: Early recognition of sustainability risks in SDG 13 dealing withtheEUtaxonomy (“BW Green”) Pilot project to supportcorporate customers in ­BW-Bank andStadtwerke Stuttgart: Expansion of thecooperation between

Stuttgart of photovoltaic system by Stadtwerke “Stuttgart climate loan”andinstallation Active advertising of BW-Bank's electric scooter rental system stella sharing(Stadtwerke Stuttgart Continuation of thecooperation with employees andcustomers tariffs from Stadtwerke Stuttgart for Special green electricity andgreen gas V.” (DGNB)) evaluates integration, LBBW Sustainability goal Goal 2:Customers Goal 2:Customers Goal 2:Customers Goal 2:Customers Goal 2:Customers Goal 2:Customers Goal 2:Customers Goal 2:Customers Goal 2:Customers 1 Target date 12/2020 12/2020 12/2020 12/2020 project Ongoing project Ongoing project Ongoing 12/2020 12/2020 Responsible specialized division(s) LBBW ImmobilienDevelopment GmbH Sustainability &ESG LBBW ImmobilienDevelopment GmbH Product Management andKey Account sellschaft mbH LBBW Asset Management Investmentge- Financial Institutions &Markets gesellschaft mbH LBBW Asset Management Investment Risk Management Real Estate Strategy andEquity Investments ­ 1 • • CO Development of astandard process for measuringthe SDG 13 to supportproduct marketing. Expansion of training onthe“Stuttgart climate loan”­ Project SDG 13 sectors (“green real estate financing”). sustainability: Publication of various “InFocus” spotlight studies on SDG 3,4,6,7,9,13 and SSAs. four asset classes of corporates, financials,sovereigns, Compass”, covering new issues of ESGbondsfrom the Launch of aregular publication type, “Green Bond SDG 1–17 The sustainability goals are listed onpage 14.

2 emissions of theproperties financed across all on key sustainability terminology (banks, sovereigns, SSAs, insurance companies). (e.g. automotive) andfinancialinstitutions ­ on individualcorporate sectors

Goal 2:Customers Goal 2:Customers Goal 2:Customers Goal 2:Customers Sustainability goal 1 Target date 12/2020 12/2020 12/2020 12/2020 Sustainability &ESG Sustainability &ESG Responsible specialized division(s) Research Research

Landesbank Baden-Württemberg 2019 Sustainability Report 39 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 40 Strategy and management Business operations 1 SDG 13 buildings. systems andevaluation options for allcentral ment recording includingthecorresponding Full implementation of automated measure- Step 3: central building. options asapilot schemefor atleast one the corresponding systems andevaluation Automated measurement recording including Step 2: (see sustainability program 2019) Continuation of step 1 Act Services onEnergy (EDL-G). also meeting therequirements of theGerman process with regard to efficiency energy while to helpcontrol thecontinuous improvement Introduction of management software energy Reduction in absolute CO Project SDG 13 Target: 100 pool. Purchase of low-CO SDG 9,13 with novehicle pool. stadtmobil (replacing Sixt)for rural branches Cooperation withthecar-sharing provider SDG 9 (“stella+” for companies) employees inStuttgart for business purposes electric scooters (non-floating) to beused by and ­ provider: Expansionof thecooperation Stadtwerke­sharing, Stuttgart's sharing Expansion of thecooperation withstella SDG 7,13 Mainz (runningon100 the headoffices in Karlsruhe, Mannheimand carbon footprint of theLBBW vehicle fleet at for guests andemployees to improve the fleet: Expansion of charginginfrastructure Promotion of e-mobilityintheLBBW vehicle SDG 12 disposable cupsperyear. Saving:approx.with lidanddeposit. 15,000 tables in thecafeterias to reusable glasses Conversion of PLAcupsfor fruitandvege- SDG 13 case of replacement investments inside andoutside buildings,primarilyinthe extent available andappropriate) for lighting Continued transition to LEDtechnology (to the SDG 7,13 in 2018) by theendof 2020(compared withemissions hybrid). fully converted to e-mobility(electric/plug-in vehicles (LBBW/departments/branches) to be LBBW's­ The sustainability goals are listed onpage 14. establishment of acompany poolof vehicle pool:New/replacement pool % electric/hybrid vehicles inthe 2 vehicles throughout % green electricity). 2 emissions by 20 % Goal 4:Business operations Goal 4:Business operations Sustainability goal Goal 4:Business operations Goal 4:Business operations Goal 4:Business operations Goal 4:Business operations Goal 4:Business operations Goal 4:Business operations 1 ni 12/2021 ­until extended 12/2020 ­until extended until 12/2020 extended 12/2019 12/2022 Target date 12/2020 12/2020 12/2020 12/2020 project Ongoing 12/2020

Responsible specialized division(s) ment GmbH LBBW Corporate Real Estate Manage- Group Purchasing Group Purchasing Group Purchasing Group Purchasing LBBW Gastro Event GmbH ment GmbH LBBW Corporate Real Estate Manage- Group Purchasing “Ongoing” projects thatare not yet integrated into aregular process are includedinthesustainability • • • • • • • • • • • • sustainability program. Theseinclude: 1 Employees

Projects carried out inthepast andnow runningpermanentlyare nolonger includedinthecurrent program onlyiffurtheractivity isrequired. SDG 5 (from the2019re-audit). GmbH andimplementation of theprogram of action familie auditconducted by berufundfamilie Service stage-friendly company: Continuation of theberufund- Continuous improvement asafamily-oriented, life Code of Conduct, riskculture, compliance risks, etc. ­employees can bemadeaware of topics suchasthe management andcompliance coordinators sothat Performance of classroom-based training for senior SDG 13 provider JobRad. Introduction of e-bike leasingfor allemployees viathe Project

The sustainability goals are listed onpage 14. Nesting aidfor falcons Extensive green roofing Sustainability initiatives inthecompany restaurants, suchasfair trade andorganic coffee “Gesund führen” (Healthy Leadership) moduleasanintegral partof management training Recycled paperasstandard copy paper Incentive system for service vehicles to promote models that produce low CO Bicycle showers, parking, andlockers atthemainoffices Video conference rooms inthemainoffices to reduce business travel Utilization of waste heatatthedata center Automatically turningoff workstation computers andlaptops atnight (Wake-on-LAN) Switching off lights automatically atthemainoffices Waste planwithcolor-coded routing system, incl.collection of organic waste at themainoffices, organic certification at two restaurants Goal 3:Employees Goal 3:Employees Goal 3:Employees Sustainability goal 1 Target date 12/2020 12/2020 12/2020 Personnel development Group Compliance Group Purchasing Responsible specialized division(s) 2 emissions

Landesbank Baden-Württemberg 2019 Sustainability Report 41 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 42 Strategy and management auditor and brought to theattention of theBoard of ManagingDirectors andtheSupervisoryBoard. human rights, and efforts to combat corruption. LBBW's non-financial report is Diversity Information regulates reporting on environmental, employer, andsocial­ employees andgenerating impetus atnumerous events. our among awareness raising topics, current on information external and internal regularproviding by day-to-daybasis a on taken is responsibility that ensure We sphere. public the in and walls four own our within ness aware- social and ecological strengthening to contribution active an make Sustainability is not an empty phrase as far as we are concerned. We seek to Communications ­1994, andcommunication­management, criteria. LBBW hasbeenincludedintheranking since it­ large 69 ­reports of ­ the among bank best the LBBW makes ­corporations ­ This future. Research association Economy business Ecological the for and Institute (IÖW) the by published ranking” report sustainability “2018 LBBW's 2017Sustainability Report took fourth place inthe“large corporations” category inthe ­standards of theGlobalReporting Initiative (GRI,seewww.globalreporting.org). on theLBBW sustainability portal. Thesustainability report isbasedontheestablished reporting comprehensive sustainability report. This is published online and supplemented by current news We provide information about oursustainability activities onoursustainability website andinour Sustainability reporting linie-Umsetzungsgesetz”)DirectiveCSR The 2017. April ofDisclosure19 the on of Non-­ (“CSR-Richt Act Implementation Directive CSR German the accordance with in report non-financial a Large, 2017. fiscal since report non-financial ­market-­ a included has report management LBBW's The publications can bedownloaded from www.LBBW.de/sustainability. LBBW” isalsoavailable. A compact overview of sustainable products atLBBW, entitled“At aGlance: Sustainable Products at overview of ourcommitment to sustainability. “Understanding andAction: Sustainability atLandesbank Baden-Württemberg” provides a16-page ­improving its position from 33 oriented companies andlarge credit institutions andinsurance companies are required to issue companies inGermanysince 2005based onanextensive range of social,ecological, included intheevaluation. TheIÖW hascompared andevaluated the­ rd in 2005 to fourth in 2018. No ranking was published in 2019. UE ­audited by a concerns, ­ sustainability Financial respect for ­statutory began­ ­capital ­and ­ in - ­mutual exchange atmore than 20dialogevents in2019. ­with members of theBank's Board of ManagingDirectors. Employees took upthe­ event ­ ­parental leave –andourretired employees. year. Thenewsletter alsoallows usto update ouremployees whoare onlong-term leave –suchas The researcher Prof. HansJoachimSchellnhuber. is theimpact of regulatory developments on ourbusiness? Theevent endedwithalecture by climate LBBW's sustainability policy and what does this mean for the investments and loans we offer? What What are we doing to improve our carbon footprint? What future-oriented approaches form partof ­sustainability andLBBW's activities andget involved themselves. Thequestions answered included: fair stands, presentations andworkshops, they had the opportunityto inform themselves about first LBBW's around 1,000hitsevery day. accessed around 4,500timesevery day. Theinternal community for cross-divisional networking gets Exchange andcooperation viatheintranet are alsoproving collaboration popular:The“Wiki” tool is ­Directors directly usingadedicated e-mailaddress. More than100messages are received every year. ­­­ Employees can address important suggestions and requests to the Chairman of the Board of ­ • • • • • ­Blue.net­ Our intranet –known asBlue.net –provides technical information andlatest news from theBank. We inform ouremployees solelyviaonlinechannels. ­reports. Thetopics covered in2019included: ­information about theBank's sustainability activities inaround 250articles,videos,andmarket Internal communication

A videoabout LBBW's sustainability commitment The BW-Bank Sustainability Slam,providing scientific entertainment onthe topic of sustainability LBBW's first socialbond to boost thescooter scheme The electric scooter sharingproject stella sharing:BW-Bank iscooperating withStadtwerke­ mobility project to make itmore attractive to travel to work by bicycle The cooperation between LBBW andHeilbronn University of AppliedSciences onthePendler-RatD “Einblicke” (Insights) e-mailnewsletter compiles the most interesting intranet posts four­ times format “X-Change –Dialogwith…”allows ouremployees to enter into aface-to-face ­­ isaccessed around 110,000timesadayby some10,000employees. We alsoprovide ­ sustainability fair inSeptember 2019was attended by around 250 colleagues. At trade opportunity ­ discussion Managing Managing Stuttgart The for a

Landesbank Baden-Württemberg 2019 Sustainability Report 43 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 44 Strategy and management

• at trade fairs andconferences aswell asanentire seriesof LBBW's own events. We regularly share information withourretail andcorporate customers andourinstitutional ­ Customer andinvestor communication • • • • • • •

4 ­e-mobility andnew transition, business models,energy andresource efficiency. which LBBW presented new grant programs in the fields of innovation and digitalization financing, 300 salesexperts of savingsbanks inBaden-Württemberg, Rhineland-Palatinate, andSaxony, at Information sessions for savings banks: In 2019, six information sessions were heldfor some ­sustainable investment strategies, andsustainability-oriented portfolio analysis. several webinars for investors covering the development of the sustainable investment market, and other institutional investors/companies). intheprevious As year, LBBW AMalsoarranged ­conferences andevents for awiderange of customer groups (private investors, savingsbanks, Conferences andwebinars: In2019,LBBW AMwas again represented withpresentations at 2019­ the “Grünes Geld”(Green Money) and“Fair handeln”(Trading Fairly) trade shows inStuttgart ­ Trade fairs: LBBW Asset Management Investmentgesellschaft mbH(LBBW AM)again exhibited at (PRI) to discuss current issues relating to theimplementation of thisvoluntary commitment. Dialog onPRI:LBBW regularly participates inthedialogonPrinciplesfor Responsible ­ of promoting energy-efficient building renovation in Stuttgart. loan”. BW-Bank andtheStuttgart Advisory Energy Center (EBZ)are working together withtheaim Board of Management of BW-Bank responsible for sustainability presented the“Stuttgart climate and hadaninformation stand atthecongress. Withaview to transformation, thememberof the German Sustainability Award: LBBW/BW-Bank was apartnerof theGermanSustainability Award 2019 information andwarnings andprovided impetus for thelively discussion thatfollowed. the audience withhislecture entitled“Climate Crisis:TheHistory of Disruption”, which­ ­Joachim SchellnhuberatBW-Bank on23September 2019.The renowned climate expert ­ Sustainability discussion evening: Around 350retail customers attended apresentation by ­ ­ ­increasingly findingits way into alltheirbusiness processes. the presentation madeitclearthatthistopic hasnow fullyreached insurance companies andis investments thatwillbeintroduced by theEUtaxonomy. Theintensive discussion attheendof ­EuropeanCommission action thereplan, was focusparticular a strictthe on criteria defining green with ­regardrequirements regulatory of status current the on presented It BW-Bank. at digitalization and more welcoming­than 100representatives of insurance companiestime, anddiscussing thetopics of ­ second the for Actuaries) of Association German = (DAV forum insurance the to host played customers institutional for Advisory LBBW 2019, September 24 On results. At theendof theevening, theaudience voted onthebest contribution. scientific presenting at bestmostly young peoplewithfascinating shortpresentations on theirsustainable ideas and­ the is Who question: the ask to­entertainment onthetopic of sustainability? Five “slammers” delighted anaudience of around 350 time again was it 2019, May 23 th ttgr Ssanblt Sa i te utmr oe o B-ak t lie Shoslt: On Schlossplatz: Kleinen at BW-Bank of foyer customer the in Slam Sustainability Stuttgart , showcasing itssustainable product range andpresenting onsustainable investments. ­ to theintegration of sustainability into investment Inadditionto andriskmanagement. the “DAV vor Ort” vor ­“DAV sustainability Investment captivated Prof. Hans delivered investors research in ­ expected new issues. ­provides insights into thelatest developments onthegreen bondmarket andforecasts concerning In 2019,LBBW Research alsolaunchedthenew monthlyformat “Green BondCompass”. Thepublication and “Agreement Reached ontheEUTaxonomy”. ­customers. The studies published in 2019 included “Sustainability andCredit Ratings –AnAnalysis” LBBW Research analysts regularly publish studies on issues thatare of particularinterest to our • • • • • • • • sector (e.g. automotive, thetopic energy), of CO Additional sustainability-related studies andinformation were published onthebankingandcorporate LBBW research studies onsustainability issues •

point of view? How do I find qualified and reputable tradesmen? What measures really make sense from a technical LBBW In-Focus: ABCof Sustainability LBBW In-Focus Utilities:CO LBBW In-Focus: Sustainable Perspectives for Real Estate LBBW In-Focus Corporates Transport andLogistics: IMO2020–New Regulations for MarineFuels LBBW In-Focus Corporates: Digitalization andSustainability inTelecommunications LBBW In-Focus Financials:UKGreen Finance Strategy andTCFD of Stuttgart, theEBZandLBS(Landesbausparkasse), was alsopresented. Theevent endedwith­ ­supply as part of workshops. The “Stuttgart climate loan”, jointlydeveloped by BW-Bank, theCity ­themselves andtheirproduct solutions for sustainable buildingrenovation andsustainable energy ­Advisory Center (EBZ).TheEBZbrought partners from theskilledtrades together to present suggestions, experience tips andproducts and atclose quarters. Theevent was developed together withtheStuttgart see ­ to opportunity the – owners and managers property – evolution of theformer Forum for Communities of Residential Owners. Itgives thetarget group the represents event Living” and Renovation Energy-efficient Forum: “Future The Forum: Future Agency Outlook (H22019): Issue Volume OnTarget –Strong Growth InSustainable Bonds LBBW In-Focus Corporates Automotive: TheCO panel discussion andquestions suchas“Renovation –how shouldIproceed?” WhomshouldIturnto? 2 Prize Widely Criticized 2 , key sustainability terminology, and sustainable finance: 2 Cost of Transport –Why MobilityWillGet Expensive ­specific Energy Energy a

Landesbank Baden-Württemberg 2019 Sustainability Report 45 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 46 Strategy and management awards, andmemberships Sustainability ratings, utiaiiy iso prud y u mngmn ae ouetd by documented ­independent sustainability ratings andawards. are management our by pursued mission the sustainability and services and products own our of quality The industry. services financial the in important increasingly becomes sustainability that ensure Therefore, we participate ininitiatives inGermanyandinternationally to this out live to continue to aim WeLBBW. at principle guiding a is responsibility taking Actively trend. a just than more is Sustainability • • • our ranking, thisislisted aswell. the editorial deadlinefor thissustainability report (30April2019)are describedbelow. Ifwe know The most recent results thatLBBW has achieved inthevarious ratings andthatwere known to usby also conventional institutional investors. increasingly but organizations, charitable only not include These investors. sustainability-oriented by investors. They are an important basis for decision-making for the constantly growing number of ­ratings measuring financial strength, are not commissioned by the companies being rated but instead ­commitment to sustainability isreviewed by neutral rating agencies. Sustainability ratings, unlike Just aswe evaluate thesustainability performance of companies, partners, andsuppliers, our Sustainability ratings

­expertise datingback40years. analyses andratings inthearea of environmental, socialandgovernance (ESG),withresearch onascale from toAA CCC. AAA MSCIESGResearch istheworld's largest provider of ­ LBBW regularly receives top rankings inMSCIESGResearch's ratings. In2019,it obtained arating of ist for tailored sustainability research. ­(as of March 2020).imugisoneof theleadingGerman sustainability rating agencies andaspecial- ­issuer of public-sector Pfandbriefe and“positive” (BBB)asanissuer of mortgage Pfandbriefe Landesbank sector. In addition,LBBW received GermanLandes anassessment of “extremely positive” (A) asan in the evaluated ten institutions bank andsavingssector. LBBW was ranked second in aEurope-wide comparison withinthe the among first it places This (BB). “positive” In theimug2020Sustainability Rating of BankBonds,LBBW received anoverall assessment of as “Prime”. is and ESG ISS by defined performancesustainability forstandards stringent the meets Regional Banks” segmentandsecond place among Germanbanks (asof November 2019). LBBW LBBW took fourth place out of the 209 banks analyzed internationally in the “Financials/­ ­investment gave segment, LBBW anoverall grade of C+onascale of A+ to D-. Thisresult meant ISS ESG(formerly ISS-oekom), agloballyrenowned research andrating agency inthesustainable ­conviction. sustainability UE ­classified Public & - “LBBW Global Warming” (seepage 80) “LBBW Nachhaltigkeit Aktien”and“LBBW Nachhaltigkeit Renten” (seepage 79) Awards • • Rankings •

the areas of climate achieved arelatively good score. TheFair Finance Guideseesparticularroom for improvement in ecologically motivated consumers. ­investors, the Fair Finance Guide is designed to provide independent assistance for ethically and (which scored between 20 met. ­ A score of 100 and church sustainability specialist five after overall, banks. The ratings are based solely sixth on the policies of the banks as published in official documents. ranked is and evaluated 14 the ­of ­­(www.fairfinanceguide.de)­ LBBW No ranking was publishedin2019. future. This makes LBBW the best bank among the 69 large corporations included in the evaluation. 2018 ranking of the Institute for Ecological Economy Research (IÖW) and the business association LBBW's 2017 Sustainability Report took fourth place inthe“large corporations” category inthe ­investment services specializing in the analysis and evaluation of companies' sustainability performance. ­institutions evaluated (asof May2019).Sustainalytics isanindependentprovider financial of responsible international 338 the of out 12th and institutions financial German among second ranked LBBW received 83out of 100possible pointsintheSustainalytics sustainability rating, meaningit At ­ made significant progress in the fourth update of the Fair Finance GuideGermany Finance Fair the of update the fourth in progress significant made between 60 % indicates thatall of thecurrent evaluation criteria of theFair Finance Guideare

% to 79 protection, taxes, remuneration and bonuses, transparency and in May 2019: with a score of 48 of score a with 2019: May in % and39 %, LBBW's policiesoncorruption, humanrights andworkers' rights %). Unlike sustainability ratings, whichare primarilyaimedat %, LBBW is the best commercial bank commercial best the is LBBW %, ­accountability ­​

Landesbank Baden-Württemberg 2019 Sustainability Report 47 Strategy and management

HumanPersonalpolitik resources (siehe policy Seite (see 114 page ff. )114 et seq.) Strategie und Management Strategie

Strategy and management Strategy Personalpolitik (siehe Seite 114 ff.) Strategie und Management Strategie

EnvironmentUmwelt (siehe (see Seite page 150 150 ff.) et seq.)

48 48 48

Ratings (siehe Seite 46 f.) Ratings (see(siehe page Seite 46 46 et f.seq.))

9 9 Württemberg 201 Württemberg

- Württemberg 201 Württemberg

-

Nachhaltigkeitsbericht der Landesbank Baden Landesbank der Nachhaltigkeitsbericht Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der Landesbank Baden Landesbank der Nachhaltigkeitsbericht

Memberships andinitiatives UNEP Finance Initiative • • • Since 2019,VfU hasoffered arange of new dialogformats inwhichLBBW alsoparticipates: ­forum “ESGimKreditgeschäft” (ESGinLending). of 2019, In forums. and workshops for example, we sharedin information oncredit checkprocesses (includingthefurtherdevelopment role active an play we(www.vfu.de), VfU the of member a As Association for Environmental Management and Sustainability in Financial Institutions (VfU) for forum a ­table in ­ as table round annual an initiated ­dialog (VfU) Institutions Financial in Sustainability and In additionto itsglobalactivities, UNEPFIalongwiththeAssociation for Environmental ­ ­Sustainable Development Goals. banks to systematically align withsocialobjectives like theParis Agreement andtheUnited Nations PRB provides a uniform framework for integrating sustainability in all areas of business. This allows sign to bank universal German up to the “Principles for Responsible (PRB), a new Banking” voluntaryfirst initiative of UNEP FI. The the became also LBBW 2019, In levels. all at companies their goal­ ­a partnership between the UN's Environment Programme and over 200 companies worldwide. LBBW isanactive memberof theUnited NationsEnvironment Programme Finance Initiative ­ “Sustainable Lending inPractice”. ­participated­

and theEU. Afactsheet iscirculated inadvance. ­current developments in legislation and regulation in the context of sustainable finance in Quarterly “Regulatory PublicAffairs” teleconfer current developments, events, publications andprojectsdiscuss inthecontext of sustainable finance. and information obtain can Members teleconference: Latest) (VfU Aktuell” “VfU Monthly Focus teleconference onthetopic of “coal”. an saw 2019 example, For banks. financing the for criticism attract could that topics on “ESG Risk Monitor Industry Focus” teleconferences at irregular intervals: Additional calls are ­ internal credit standards and taking climate risks into account in the lending portfolio) at the VfU the at portfolio) lending the in accountinto risks climate taking and standardscredit ­internal of this partnership is to support financial institutions in integrating sustainability issues into issues sustainability in integrating institutions financial support to is partnership this of with financial services providers in German-speaking countries. The theme of theround theme The countries. in German-speaking providers services financial with December 2019was “Sustainable Finance –Regulation, Innovation, Transformation”. ­ intheannualconference withpresentations on“Changes Industry” and intheEnergy ence: Thisconference provides anoverview of Management (UNEP FI) ­Germany ­Industry offered LBBW ­The ,

Landesbank Baden-Württemberg 2019 Sustainability Report 49 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 50 Strategy and management and NGOs,aswell as30interested individuals. banks, investment companies, insurance companies, rating agencies, asset managers, include financial members 170 than more Its 2001. since Switzerland and Liechtenstein, Austria, Germany, in ­Investment Forum (FNG).TheFNGhasbeentheprofessional association for sustainable investment LBBW Asset Management Investmentgesellschaft mbHisamemberof theGermanSustainable German Sustainable Investment Forum and other areas. improvements efficiency management, project revitalizationsustainability, in expertise its provides building sustainable residential complexes andcommercial space. aservice As provider, thecompany and designing in specializes company development GmbH's Management Immobilien LBBW (DGNB). LBBW ImmobilienDevelopment GmbHisamemberof theGerman Sustainable BuildingCouncil German Sustainable BuildingCouncil Württembergische Equity GmbH(BWEquity) hasalsosignedupto theUNPRI. has also signed the PRI for the Investment Manager category. a subsidiary of As LBBW, Baden-­ (ESG) issues in our investment activities. LBBW Asset Management Investmentgesellschaft mbH these principles,we voluntarily undertake to address environmental, social,andcorporate ­ LBBW isasignatory of theUnited NationsPrinciplesfor Responsible Investment (UNPRI).Under Principles for Responsible Investment governance advisors ­advisors that promote the general goals of the United Nations, particularly the Sustainable Development Goals. (including investment, andourown lending, investment activity) andto participate inpartnerships the following ten principlesinto ourcorporate strategy, corporate culture, andday-to-day business We signedtheUNGlobalCompact inDecember 2017.Thismeanswe have undertaken to integrate sharing for platform ideas (globalcompact.de, a unglobalcompact.org). offer and markets and communities, people, all of benefit the for ­economy This openforum aimsto initiate change processes for thedevelopment of asustainable global The United NationsGlobalCompact istheworld's largest responsible corporate governance ­ UN GlobalCompact for theuseof theissue proceeds. in market development. To thisend,theGreen BondPrinciplesprovide recommendations, including guidelines for the issuing process to promote standardization and transparency and reinforce define Principles Bond Green (ICMA) Association's Market Capital International The issues. LBBW adheres to theGreen BondPrinciples,thuscontributing to buildingthemarket for ­ Green BondPrinciples sustainable ­voluntary initiative. ­integrity

Landesbank Baden-Württemberg 2019 Sustainability Report 51 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 52 Strategy and management The Ten Principles of theUNGlobalCompact Communication onProgress required by theprinciplesof theUnited NationsGlobalCompact. The disclosures anddata contained intheLBBW Sustainability Report corresponds to theannual help companies contribute to sustainable development andreport transparently about their ­ The UNGlobalCompact andtheGlobalReporting Initiative (GRI)are complementary initiatives that 10  Anti-Corruption 09  08  07  Environment 06  05  04  03  Labour 02  01  Human Rights Businesses shouldwork against corruption inallitsforms, includingextortion andbribery. encourage thedevelopment anddiffusion of environmentally friendlytechnologies. undertake initiatives to promote greater environmental responsibility, and Businesses shouldsupportaprecautionary approach to environmental challenges, the eliminationof discriminationinrespect of employment andoccupation. the effective abolition of childlabour, and the eliminationof allforms of forced andcompulsory labour, of theright to collective bargaining, Businesses shouldupholdthefreedom of association andtheeffective recognition make sure thatthey are not complicit inhumanrights abuses. human rights and Businesses shouldsupportandrespect theprotection of internationally proclaimed progress. travel by bicycle, conducting mobilitycampaigns, andexpanding theoptions for working from home of view to improvinga thequalityof life andpreventing abanonEuro 5dieselvehicles. Thecatalog to help ensure compliance with the thresholds for nitrogen dioxide and particulate matter with Baden-Württemberg state capital. Themembers share theaimof taking individualandjoint­ the in traffic of proportion large a for account deliveries and travel commuter and business whose The alliance bringstogether thecityandstate authorities andthebiggest employers intheregion, The CleanAirAlliance was initiated in2019withtheaimof improving theairqualityinStuttgart. Clean AirAlliance fair competition withother enterprises andfair business practices withrespect to consumers. ­environmental management andapplytheprudence principle. They shouldgenerally seekto ensure ­factors that their business activities can be foreseen to involve. Enterprises should introduce efficient their business activities, including compliance with environmental and social standards and the risk For example, itstates thatmultinational enterprises shouldreport publicly onallkey aspects of ­environment, corruption, andtransparency. ­Economic Cooperation andDevelopment (OECD) to business ontopics includinghumanrights, the contains thecommon recommendations addressed by thememberstates of theOrganisation for the include these OECD Guidelinesfor MultinationalEnterprises. ThisCode of Conduct for responsible business ­ Organization, Labour International the of standards labor core the and Compact recognizedinternationally UN on standardsthe based voluntary commitments.Alongside and In additionto statutory requirements andprovisions, ourinternal guidelinesandinstructions are OECD Guidelines for MultinationalEnterprises and theachievement of thetargets set out intheParis Agreement. ­contribution to theimplementation of theUnited Nations'“2030Agenda for Sustainable ­ ­offsetting projects indeveloping andemergingcountries. LBBW supportsthealliance aspartof its the world. Theactivities of thealliance partners are voluntary andincludeparticipatingin­ ­development policywhilealsoincreasing publicawareness of theimpact of globalwarming around the Alliance for Development and Climate, which is tasked with promoting climate protection and In fall 2018,theGermanFederal Ministry for Economic Cooperation andDevelopment launched Alliance for Development andClimate the and mobilework. Inadditionto LBBW, themembers include theState of Baden-Württemberg, the the measures includes expanding the proportion of electric vehicles in the company fleet, promoting fleet, company the in vehicles electric of proportion the expanding includes ­measures ­Marienhospital. City of Stuttgart, Daimler, Porsche, Bosch,Mahle, Audi, AOK, EnergieBaden-Württemberg, and Development” measures activity carbon ­Global

Landesbank Baden-Württemberg 2019 Sustainability Report 53 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 54 Strategy and management Binding standards and part-time employees expressed asfull-time employees). with atotal of 7,074 employees (6,342.41full-time equivalents =numberof full-time (FTEs) ­ who usepartsof ourbuildingsandwhoseconsumption data cannot bedetermined separately. ­included inourenvironmental performance statement. Incertain cases, thisalsoappliesto tenants ­The usage data for subsidiarieslike Gastro Event GmbHwhichoperate inLBBW buildingsistherefore we compile data onelectricity, heatingenergy, andwater consumption for each site individually. Whereas data onpurchasing, business trips,andwaste quantitiesiscollected andmanaged ­ 31 December 2019,atotal of 277individualswere employed by theLBBW Group outside Germany. of As included. not are collected not is data whose Germany outside offices LBBW's and tenants to the buildingsextensively usedby LBBW inGermany, includingbuildingswe lease. Buildingswe lease The environmental performance statement andtheenvironmental indicators andtimeseriescover all Environmental performance statement ­Management ­ ­Corporate Real Estate Management GmbH(formerly BW-Immobilien GmbH),and LBBW Asset the ­ Our sustainability management system isapplicable to LBBW (Bank)(includingBW-Bank) and Scope of applicability andEMAScertification • • • • • ISO 14001: followingThe areexternalvalidated audit. and ­internalaccordingcertified according and EMAS to an to of means by year a once verified is standard ISO and Scheme since the system of implementation management The environmental 1998. certified a maintained have and 14001 ISO and (EMAS) We have committed to complying with the standards of the Eco-Management and Audit Scheme EMAS certification ­regulations andlaws are observed. external and internal all that ensures team management criteria. compliance sustainable Our observe to required also are providers service and specified have we binding standards for activities, many of the Bank's units and activities. management Our sustainability our of part As

the Augustaanlage 33 buildinginMannheim the KleinerSchlossplatz 11buildingin Stuttgart, and the Königstrasse 3buildinginStuttgart, the Fritz-Elsas-Strasse 31building (known asthe“Bollwerk” building)inStuttgart, four buildingsat“Am andtwo Hauptbahnhof” buildings at“Pariser Platz” inStuttgart, wholly owned subsidiariesGastro Event GmbH,LBBW ImmobilienManagement GmbH,LBBW Investmentgesellschaft mbH.Environmental performance statement ­suppliers UE employees centrally, Stuttgart Strategy and management Strategy

6 5 7 3

2 4 1

3 55

4

2

1 Landesbank Baden-Württemberg Building ➅6 Am Hauptbahnhof 2, 70173 Stuttgart Heilbronner Strasse 28, 70173 Stuttgart

Building ➁2 Building ➆7 Am Hauptbahnhof 7 – 9, 70173 Stuttgart Pariser Platz 7, 70173 Stuttgart (SüdLeasing building) Building ➂3 Am Hauptbahnhof 11, 70173 Stuttgart 2 Bollwerk service center Fritz-Elsas-Strasse 31, 70174 Stuttgart Building ➃4 Am Hauptbahnhof 8, 70173 Stuttgart 3 Educational center Königstrasse 3 – 5, 70173 Stuttgart Building ➄5 Pariser Platz 1, 70173 Stuttgart 4 Kleiner Schlossplatz, BW-Bank Kleiner Schlossplatz 11, 70173 Stuttgart Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Mannheim

Strategy and management Strategy E3 - F1 elstr. Ba g r. S5 T6 Heb ss t R3 . . E2 Q1 r erm in r P s t s t lan lz s an s s k a z n- e e f R4 National n L n E1 p Q2 D3 r e S6 Theater R pflin- u . K R5 r hö t D2 Q3 s P1 str. c tr. Ko S thes R R6 g Goe lp a n in P2 i D1 Q4 . t g r r h - t Parade- S e n platz P3 Q5 R7 a s Luisenpark C2 u tr. Lameygarte n - ystr. P4 Q6 Lameystr. Charlotten-Lame C1 - s r e platz . Stadthaus O3 P5 h tr c in V P i l ic s la r r to N1 n d r O4 k e Be ia en P6 Q7 Tu st ri l r. r. N2 F la O5 - st r. National B1 t K r- r. s N3 a K p Theater s e st o lz u t n . lp z O6 r er tr in a in He . h f Kapuzinerplatz e - c s g- p M1 rp id P7 Rosengarten- a rd r la el L e u nk be nn W K en rg platz st W s N4 er ma r. e tr M2 e rd . M3 N5 Rosen- s e V F e r- ic ri r to e garten t - r d S Er l ia ric zb l st L1 M4 N6 O7 St hs Christus- er o r. r. pla ge M tz kirche rs gerstr. L2 tr. Erzber Wasser- tr. p r. hs la r. t M5 turm bet tz t S L3 lisa -S Lauer- N7 E B ig e Soph - Bi e OSTSTADT w k sm grten t ie d c a L4 h ns e rc Friedrichsplatz o t M Lu B k Fr v r. ax l- str M6 ie en im r . L6 d - i a - ric lia K h n to sp - t g la S O tz o Universität L8 in s r Au tr. p Schloss M7 Kunst- g h u i . st e r L5 L10 halle a- n st s z t . r. ni r F r. L7 t r t s ib M s . s t L12 o - r. l n K r Le . tk o e L9 - r a r t e- o d s r r se R l e a i S - Ric n e S h l Bi ck ar W a L12 t g sm Ka e s d- e L11 nh tr r a . . W r eim a . ck - er g r s l n t r. tr l e s t L13 . a r- N s s St 1 ie r S r. S tz e t s t c. r. c t h h a str w e- Willy- T e . t r r. z St t - Brandt- Bismarck- räcker in R l- S z o g h . l - i L15 T e str o g n Platz platz e i i b r n M r. i st S häuser - w e r. t s d St L r l . u A . - . e tr S r z b s ec L ug t n Ga ke l- u s a ger nh r st L S er e a k- a- Haupt- t b im K c r. e e Augarten- r B bahnhof r- Ri le platz ch h- ep - ar c R K to d- an Heinri e t la ic r. O W ge h st ag s n k . e a r r- l- Hauptpost n G t e z a SCHWETZINGERSTADT s St n l li r. n e le W r i s- St e u -Müller-Str. s u sp T r 56 tr ik . i . n R A r. - n- H er h u st h r-Str. .-v p e g c Jos.-Kelle o o in a n- K S häuser r Ba St c te M e h n . p A w s .- tr st e h Lindenhof- a m e r- t s -S r. e r o n- tz u . J n platz r S e i te d - f tr. r n it y s e ik g ra a B r l ra d a e T H e . n r hm n tr s e S S 0 ss n s t t t tr 500 m f r r r r . e . s . . R o t h r. ' Ralf Brennemann

1 Landesbank Baden-Württemberg Augustaanlage 33, 68165 Mannheim

German Sustainability Code

Landesbank Baden-Württemberg signed the German Sustainability Code (GSC) on 20 March 2013 and updated its declaration of conformity in 2015. The code was initiated by the German Council­ for ­Sustainable Development, which supports the German federal government on all ­sustainable ­development issues and aims to make sustainability efforts visible, transparent, and more ­readily ­comparable. To comply with the GSC, users create a declaration of conformity with twenty GSC ­criteria and the supplementary non-financial performance indicators selected from the Global ­Reporting ­Initiative (GRI) and the European Federation of Financial Analysts Societies (EFFAS) in the GSC ­database. Additional information: www.deutscher-nachhaltigkeitskodex.de Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank for allof ourbusiness relationships andtransactions. ability rulesandethical responsibility documented inourCode of Conduct are theguidingprinciples community issues inallareas of theirbusiness activities to thesamedegree asLBBW. Thesustain- We expect oursuppliers to commit to taking responsibility for environmental, economic, social,and ­formulated. were discernible there which of childlabororforced at labor. Furthermore, there were identified noviolationsof theother requirements were suppliers no 2019, In notice. without rights abusessuch aschildlabor)must accept thisviolationasgrounds for termination of the­ furniture. office in used compounds organic volatile the for levels emission maximum as such groups product In addition to these exclusion criteria, there are also specific exclusion criteria that apply is to work instruction Work” wood, produced usingchildlaborormanufactured underinhumane orinequitable working ­ of Award and Procurement ­applicable to purchases of“Sustainable non-ITproducts. We therefore donot purchase products madeof ­ the in specified criteria The environmentally andsociallyaware policiesandbusiness practices by ourbusiness partners. LBBW meets the highest sustainability standards possible. On the other hand, it allows us to promote is chosen.Ontheonehand,thisenablesusto guarantee thatthemanufacture anduseof products at ­alternatives with comparable quality and cost are available, the best product interms of ­ that sustainability issues are factored into investment decisionsand,incases where several product Ce Purchasing standards or ­ ­example, we expect oursuppliers to ensure fair working conditions. Anysupplierviolatingthe­ ­suppliers to comply withwhatwe consider to beessential environmental andsocialcriteria. For ability Agreement for LBBW Suppliers whenacontract isagreed. Thisagreement compels our Every supplierregistering withLBBW isadditionallyrequired to acknowledge andsigntheS­ sustainability reports. ­employees onenvironmental issues, waste disposalplans,andthepublication of environmental or ­questions relate to issues suchasenvironmental andsocialmanagement systems, thetraining of only ifthey answer questions concerning sustainability matters ontheLBBW SupplierPortal. The Activities withoursuppliers are basedonsupplierregistration. Suppliers are accepted by LBBW Supplier assessment volume of around EUR627.2million(previous year: around EUR618million). vehicles and other meansof transportation, travel, logistics, andbuildings/technology, hadatotal fleet supplies, office services, other and marketing advisory,software, and hardware as such 2019, ­service providers withlong-term contracts. Theproducts externally sourced by Group Purchasing in amajorcorporation,As we maintain business relationships withmore than1,600suppliers and Supplier management tal ognzd ucaig prtos n bnig akwd sadrs nbe s o ensure to us enable standards Bank-wide binding and operations purchasing organized ntrally environmental standards contained intheSustainability Agreement (e.g. prohibition against ­ UE sustainability ­indications conditions. ­individual contract tropical ustain­ human social

Landesbank Baden-Württemberg 2019 Sustainability Report 57 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 58 Strategy and management products) continue to beprocured by Group Purchasing atLBBW. ­before an application is approved for use. Banking-specific software and standard software (e.g. office ­­a ­ issues thatwere already applicable atLBBW were incorporated into thecontract. For instance, systems, etc.) have been purchased by FI-TS. In thecourse of negotiations withFI,key ­ Since theoutsourcing of ourITactivities, new hardware andtechnical software (databases, operating ­between thetwo companies. as anadvocate for FI within theBank,whichisa key condition for acollaboration inpartnership FI-SP. Thisdepartmentrepresents LBBW's interests towards itsstrategic ITpartners. It also­ ecological safety. contain anextensive list of guidelineswithregard to theconstruction materials andtheirhealth Tenders issued by LBBW Corporate Real Estate Management GmbH for real estate used by theBank contracts. residential buildings. Sustainability issues are alsotaken into account intenders andtheawarding of and, for example, ensure theuse of wood from sustainable forestry andhealthy indoor­ ­Residential Buildings” are applied. These internal standards are alignedwithselected DGNB bilien GmbH Development “LBBW Immobilien the internal ­Standard for New Construction of Sustainable Office and planned, Administrative Buildings” and “LBBW Immo- explicitly not is certification DGNB administrative, and residential buildings, primarily according to DGNB standards. In ­Management departmentisresponsible for coordinating theservices of FIandits­ and oneof thelargest European providers of ITservices to banks. TheProvider and­ (FI), the IT service provider to the German Savings Banks Finance Group (“Sparkassen-Finanz­ ofAs 1September 2013,LBBW outsourced most of its IT activities to Finanz Informatik GmbH & Co. KG IT outsourcing products andservices we procure are from Germansuppliers. use suppliers from Baden-Württemberg andourother core business territories. More than90 to prefer we transported, distance the minimize and boost a economy regional our give to order In ­(“Deutsche Gesellschaft für Nachhaltiges Bauen e. LBBW ImmobilienDevelopment GmbHisamemberof theGermanSustainable Building ­ Sustainable Construction Materials gives preferred status to smaller, regional suppliers. In selecting suppliers, oursubsidiaryGastro Event GmbH,whichrunsoursixcompany restaurants, Gastro Event GmbH: requested to submitthesafety data sheets of thedetergents usedandshallbesubject to checks. are offices.companies The our in used supplies cleaning any in included be not may substancesthat training insustainability issues, amongother things.Cleaningcompanies are suppliedwithalist of sufficient receive employees their that ensure and regulations relevant environmentally applicable (formerly BW ImmobilienGmbH)service contracts thatrequires service providers to comply withall We have developed aspecialsustainability clausefor LBBW Corporate Real Estate Management GmbH LBBW Corporate Real Estate Management GmbH: Service provider andsupplierselection atLBBW subsidiaries sustainability clausefor suppliers was agreed. Software ergonomics are still reviewed by LBBW Development GmbH Standard for New Construction of Sustainable Office,Sustainable of Construction New for Standard GmbH ­Development V.” (DGNB)). It builds and certifies sustainable

subsidiaries FI-TS ­ ­Administrative,and sustainability ­cases where climates in Production functions gruppe”) % of the Council ­criteria ­office, and and ­ and specific recommendations for action, as well asaseparate chapter onthewhistleblower system. Among other things,thenew code contains examples of situationsfrom theBank's everyday business in theeveryday business of the Bankandhave changed theinternal Code of Conduct ­ ­In recent years, digitalization, sustainability and stricter regulatory requirements have become a and societal standards. TheGroup Compliance divisionupdated theCode of Conduct inMay2020. responsible behavior by each individual that satisfies the legal requirements and is in line with subsidiaries. Theaimof thecode isto create areliable, normative frame of reference orguidance for has beenadopted asanoverarching guideline. Thisbehaviorandethics code appliesto LBBW andits foundations of sustainable corporate governance. ACode of Conduct ­ ­statutory provisions andinternal rulesaswell astheintegrity of eachindividualemployee ­ authorities, and not least to its own employees. For this reason, unconditional compliance with all meets itsresponsibility to customers, shareholders, competitors, business associates, the­ Sustainable business success isbasedontrust. Inthelongterm, LBBW willonlybecompetitive ifit Code of Conduct of work dueto long-term illness orwere changingjobsbetween divisions. The small number of employees who did not complete2019). the training were either outDecember completion of therespective web-based training programs currently averages around 98 markets must becompleted of dependingontheemployees' area of responsibility.percentage The been bindingfor allemployees inanannualcycle since August 2019.Thetraining program on­ three years. The training programs on anti-money laundering and financial sanctions/­ All employees are required to complete thefraud prevention andsustainability training program ­ Compliance training supports theirimplementation. and requirements and rules internal about time good in departments and divisions specialized the issues. TheOutsourcing Evidence Center isresponsible for plannedoutsourcing activities. Itinforms point of contact for employees intheoperating unitsandinthebranches for allcompliance-relevant divisions and the central Group Compliance division. The aforementioned coordinators provide a and subsidiaries, as well as LBBW compliance coordinators The who serve embargoes. as a and link between sanctions ­compliancethe structure financial includes compliance as officers who well are responsible for as compliance at acts, the punishable other and fraud ­matters relating to capital market andreal estate compliance, theprevention of money ­ LBBW's Group Compliance divisiontakes aproactive approach. Inparticular, itprovides advice on and protection monitoring of financialsanctions. data ensuring as well as trading, insider and corruption, fraud, financing, ­terrorism ­Effective compliance management primarilyprevents criminalacts suchasmoney laundering, Responsible corporate action isbasedoncompliance withexternal andinternal rulesandlaws. Compliance (www.LBBW.de/code-of-conduct) embargoes have ­decentralized constitute the accordingly. supervisory supervisory laundering, laundering, ­specialized ­branches % (asof ­ethical capital ­factor every

­ ­

Landesbank Baden-Württemberg 2019 Sustainability Report 59 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 60 Strategy and management ­procedures. on anongoing basis,andtheircompliance ismonitored usingappropriate andeffective risk-based identified are Bank the to applicable standards and regulations legal 9/2017. The workflows. and ­processes Circular in Risk Management (“Kreditwesengesetz”) Act for Banking LBBW German hasacompliance function thatmeets MaRiskrequirements andisdirectly involved in­ the Requirements on based and Minimum providers institutions credit­services the for (MaRisk)) Risikomanagement” defined das an precisely ­(“Mindestanforderungen more (BaFin)) aufsicht” For this reason, the Federal Financial Supervisory Authority (“Bundesanstalt für Finanzdienstleistungs compliance culture thatmodelsaresponsible riskculture. risk-related information, informative riskreporting, andagileriskmanagement but alsoacorporate able to make well-founded decisionsbasedonreliable data. Thisincludesnot onlyrapid processing of Tod Compliance function according to MaRisk(MinimumRequirements for RiskManagement) combinations dueto sustainability andreputation risks). ­relevant for cross-border business (sanction andembargo regulations andcritical industry-country A country andproduct matrixontheLBBW intranet ispartof theinternal sustainability standards and IT-based verification procedures required to dosoare already firmly established inhouse. of internal company exclusion lists for cluster munitionsandanti-personnel landmines.Theprocesses compared every day against Germanand international sanction andembargo lists. Thesameistrue internal the in guidelines. For instance, allcross-borderdefined paymentsandtheentire LBBW customer list are ­ are Group the and Bank the for requirements organizational and Measures and payments,whereas embargoes limitthefreedom of foreign trade. sanctions andembargo regulations. Financialsanctions result inrestrictions oncapital movements LBB Financial sanctions andembargoes anti-money laundering officer inthenew products process. of customer data, andcontinual monitoring of business relationships aswell astheintegration of the with ­politically exposed persons, theprocess for relationships accepting applications from new customers, the updating on rules example, for include, These financing. terrorism and laundering money appropriate Group-wide business andcustomer-related securitysystems andcontrols for preventing funds to conduct partiallyorwhollyterrorist activity. Accordingly, theLBBW Group hasdeveloped of terrorism misusesbanks to collect fundsthathave beenacquired legally orillegally andusethese illegal origin of the funds in order to “launder” them back into the legal economic cycle. The financing to is conceal the aim The acts. trafficking,through punishable organizedcrime,drug fraud,other and Money launderingdescribes thepractice of integrating into legal circulation assets acquired illegally Preventing money launderingandcombating thefinancing of terrorism ay more thanever, itisimportant for companies to react quicklyto critical developments andbe W is obligated to initiate measures to ensure compliance with national and international financial automatically ­financial material ­ ­posing asgrandchildren/police officers) were prevented thanks to theattentiveness of branch staff. tips onprotection against telephone scammers. In2019,63cases of attempted fraud (peoplefalsely State Office of Criminal Investigations has also published the “Attention: Baden-Württemberg Rip-offs” the brochure LBBW, of help the With losses. financial against protecteffectively to how branches, informs customers about current crimepatterns (e.g. fraud, scams) andprovides tipson ­(How BW-Bank Customers Can Keep TheirMoney FirmlyinTheirPockets), whichisissued by the A flyer entitled “Typisch BW-Bank Kunden: Lassen sich das Geld nicht aus der Tasche ziehen” Tasche der aus nicht Geld das sich Lassen Kunden: BW-Bank “Typisch entitled flyer A traffic offenses involving vehicles registered intheBank's name). the exceptionwerefines levied (with processsustainabilitymanagement finesno for the into of and In 2019,nocorruption proceedings were conducted against LBBW (Bank)orthesubsidiaries­ to external third parties(e.g. LBBW's customers, business partners, andsuppliers). Group inthebranches andsubsidiaries.Since January2019, theombudsmanhasalsobeenavailable activity anonymously via an external ombudsman. This option is implemented across the LBBW perks (gifts,invitations, events), for example. Employees mayalsoreport irregularities and ­ activity). These standards are implemented intheframework instruction for givingand receiving reporting for options (e.g. requirements organizational general and measures preventive The rulesandregulations for theBankandGroup for combating criminalactivity includeall­ recommendations oncorruption prevention. to theoverarching OECD Guidelinesfor MultinationalEnterprises (seepage 53),whichalsocontain ­evaluated, andsuitable preventive measures are developed onthisbasis.Inaddition,LBBW adheres in and controls are implemented. Inanannualthreat analysis, allpossible internal andexternal risks customer-relatedsecurity and transaction and tracked, are indicators leading analyzed, are of LBBW oritscustomers to theriskof loss orthatcould harmtheLBBW Group's reputation. Risks L At Fraud prevention (andother punishableacts) connection with prosecutable offenses relevant to the Bank and the Group are identified and identified are Group the and Bank the to relevant offenses prosecutable with ­connection BBW the purpose of fraud prevention is to prevent criminal acts that could expose the assets ­containing suspicious ­suspicious integrated ­systems major

Landesbank Baden-Württemberg 2019 Sustainability Report 61 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 62 Strategy and management events isincludedintheannualGroup data protection report. Each LBBW subsidiary has its own data protection officer. Information about key processes and major internal audit. to theBoard of ManagingDirectors memberresponsible for Group riskmanagement, compliance, and (“Mindest Transparenz­­­ Transparency und Organisations- Verhaltens-, and weiteren die Organization, und Compliance-Funktion Conduct, die an anforderungen of Rules Governing Requirements ­Additional The Capital market compliance and 368requests for deletion (previous year: 46). there were 20customer complaints (previous year: 46),121requests for information (previous year: 66), The rights granted to data subjects continued to bewidelyused.In2019(asof 31December 2019), penalties andexpanded disclosure anddocumentation obligations. ­introducing stricter corporate responsibilities. Theseinclude, for example, stricter rulesregarding The laws generally reinforce therights of consumers, e.g. by expanding theright of objection and ­protection officer duringthe year. Compliance withstatutory data protection requirements ismonitored duringauditsby thedata data protection officer reports to the LBBW Board of Managing Directors and regularly of personal data isguaranteed by way of compliance withtheapplicable rulesand­ Confidentiality inthehandlingof customer data enjoys theutmost importance atLBBW. The­ Data protection function according to MaComp are available to in helpidentify, avoid, andmanage conflicts of interest. interest of conflicts MaComp, to according ­connection withsecuritiesandrelated function services must beavoided. Ouremployees inthecompliance compliance the for rules the to According employee trading andfor avoiding insidertrading andmarket manipulation. Markets inFinancialInstruments Directive (MiFIDII).Itcloselymonitors observance of therulesfor EU revised the in out set regulation market financial on provisions the with compliance ensure and Another responsibility of thecompliance function according to MaComp isto prevent market abuse according to MaComp works with the relevant divisionsto bringtheminto conformity withtherules. branches, advisorycenters, andcentral units.Ifanyshortcomings are found, thecompliance function centralized to reviews of documents,processes, anddirectives, addition monitoring isalsoconducted onsite, e.g. atthe In regularly. monitored is standards internal and external with Compliance regulations andananalysis of individualrisks. A riskanalysis isperformed once ayear. Amongother factors, thisfocuses ontherelevant statutory To thisend, it issues internal guidelinesandwork instructions thatserve asguidingprinciples. ­observance of statutory rulesapplicable to securitiestrading andrelated regulatory ­ compliance function according to the MinimumRequirements for theCompliance Function and pflichten für Wertpapierdienstleistungsunternehmen” (MaComp)) is responsible for isresponsible (MaComp)) Wertpapierdienstleistungsunternehmen” für pflichten regulations. ­ ­reports requirements. protection ensuring ­ensuring ­directly LBBW's ­ ­

structures whoseprimarypurposeisevidently to avoid tax. the primarypurposeof tax avoidance anddoesnot participate intransactions involving international amatterAs of principle, LBBW doesnot advisecustomers to establish international structures with (see “Country by country reports” atwww.LBBW.de). • • • • • • ­Germany –broken down by European Unionmemberstates andthird countries: outside branch a have or domiciled are they if even – statements financial consolidated LBBW's in consolidated fully companies the for published is information following the (“Kreditwesengesetz”), In accordance withSection 26asubsection 1sentence 2et seq.of theGermanBankingAct ­authorities. tax ­ L Tax compliance mental lawwere uncovered. with statutory from non-compliance resulting ­environmental regulations. During internal and external audits, no substantive penalties violations of environ- or fines any incur not did LBBW 2019, In Violations of environmental law BBW does business and pays taxes primarily in Germany and is committed to fulfilling all its all fulfilling to committed is and Germany in primarily taxes pays and business does BBW Revenue Public subsidiesreceived Taxes onprofit orloss Profit orloss before taxes Number of waged andsalariedemployees expressed infull-time equivalents Company name, nature of activity, andgeographical location of branch(es) obligations inGermanyandabroad. LBBW receives noadvantages whatsoever from thetax

Landesbank Baden-Württemberg 2019 Sustainability Report 63 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 64 Strategy and management Board comprises eight independentmembers includingtheChairman. same time, independent expertise isdrawn onthrough thesupervisorybodies.LBBW's ­ Board of ManagingDirectors make theirdecisionsindependentlyof anyexternal ­ way as for a stock corporation even though this is not LBBW's legal form. The members of the LBBW responsibilities of LBBW's AnnualGeneral Meeting andSupervisoryBoard are regulated inthesame At LBBW management andsupervisoryrulesapplicable to corporations are observed. For instance, the in thecode but doapplyto LBBW. special provisions for corporate governance inbankingsupervisorylegislationthatare not included and other committees concerning manyof therecommendations of theDCGK. Furthermore, there are are special­ ­LBBW's ­ therefore beapplied only analogously to Landesbank Baden-Württemberg. Interms of content, institution ­Landesbank Baden-Württemberg, whichisanunlisted credit institution established asapublic-law Due to itsemphasisonlisted stock corporations, thecode isnot applicable inallrespects to standards for good andresponsible corporate governance, includingintheform of recommendations. recognized internationally and nationally contains and companies listed German of monitoring and ­Governance Kodex” (DCGK)). Thisisaset of essential statutory provisions governing the­ LBBW adheres to key aspects of theGermanCorporate Governance Code (“Deutscher Corporate Corporate governance ­Supervisory Board can befound inthe2019remuneration report. Information ontheremuneration of themembers of theBoard of ManagingDirectors andthe ­ (see page 14et seq.). Additional information oncorporate governance atLBBW isavailable inthe2019annualreport corporate governance adheres very closelyto thespiritof theDCGK. For thisreason, there ­under German law (“Anstalt des öffentlichen Rechts”). Some provisions of the DCGK can provisions intheLBBW Act, intheordinance, andinthebylaws of theexecutive bodies instructions. At the management Supervisory

• • • • We have implemented thefollowing measures to date: the samein2018. signed theUNPRIfor the Investment Manager category. Another LBBW subsidiary, BWEquity, did ­USD 90trillion.In2017,LBBW Asset Management Investmentgesellschaft mbH(LBBW AM)also up to these guidelines. Taken together, they currently have assets under management of around In addition to LBBW, more than 2,600 signatories from over 50 countries have voluntarily signed processes for ourinvestment activities. ­society aswell astheprinciplesof corporate governance (ESG)into theanalysis anddecision-making agreed to increasingly incorporate aspects relating to ourresponsibility for theenvironment and Since signingtheUnited NationsPrinciplesfor Responsible Investment (UNPRI)in2009,we have Principles for Responsible Investment 1

­applies to violationsby thecompany itselfaswell asitssuppliers/subcontractors that seriouslyviolate third parties'rights to self-determination; actions thatseriouslydisregard cultural rights to self-determination orcultural dignity. Thisexclusion criterion ­customers,health/life;trafficking;threatsetc.their tohuman serious to severe of use force; such activepopulation, of of use support and/or force actions hiring the againstand third parties the expose deliberately that actions includes particular,this In above). rights” workers' of “Violation (see Work at Rights and Principles Fundamental on ­Declaration recognized internationally breach egregiously to violation a considered is it means ­principles like theUNUniversal Declarationthat of HumanRights, provided they donot exclusivelylevel, relate to governmentalcompany obligations andare not already covered by theILOa At etc. religion, of freedom movement, of freedom privacy, ­torture, rights: At country level, it isconsideredhuman a violation if human rights in the respective country areof severely restrictedViolation with regard to political arbitrariness, subcontractors. hours) even ifthey donot relate directly to thefour ILO conventions. Thisexclusion criterion appliesto minimumstandard violationsby thecompany itselfas well asits­ labor core the or forced of bargaining, compulsory labor,collective principles childlabor,and fundamental and/ordiscrimination.Itisalsoconsideredassociation aviolationto systematicallyconcerning circumvent four minimumlaborstandardsWork”) (e.g. inhealthandsafety,at the pay,Rights ­ of and Principles one Fundamental least on Declaration at (“ILO breach Organization Labor flagrantly International to the of violation ­standards a considered is it level, company At safety. and health hours, working wages, regardtopoor, with especially arerespectiveparticularly country the in conditions working if violation considereda is it level,countryAt rights:workers' of Violation workers' rights (where child laborforms partof theexclusion criterion). labor: At countryChild level, it is considered a violation if the employment of children is widespread in the respective country. At company level: see the exclusion criterion for  Depository Account A(LBBW's bankingbook). ­Climate-related FinancialDisclosures) Climate Impact Report isalsoprepared by ISS-ESG for LBBW and covered aninvestment volume of EUR30.5billion.ATCFD-compliant (TCFD =Task Force on rating agency ISS-ESG (formerly ISS oekom). Thelast audittook place asof 31December 2019 ­countries withauthoritarian regimes. Ourinvestments are audited annuallyby the­ on coal producers. At thelevel of government investments, we refrain from doingbusiness in ­the fundsare managed by LBBW AM. 300 company contacts were madein2019. takes theform of individualconversations, meetings, andparticipation inconferences. More than e. by theGermanInvestment Funds Association (“Bundesverband Investment undAsset ­ service provider intheexercise of voting rights. Thevoting rulesare basedontheguidelines­ general meeting andviadirect contact LBBW withthemanagement. AMworks withan­ behalf of its customers. This is done through the transparent exercise of voting rights at the on invests it which in companies the on influence exerts AM LBBW management, active its With its investment funds.Thiscriterion isbasedonthe two relevant UNconventions. LBBW AMexcludes investments inproducers of anti-personnel minesandcluster munitionsfrom disputed human rights and workers' rights ­revised ever since. In2019,theexclusion criteria atthelevel of corporate investments ­ been have and 2011 in defined were investments LBBW's for criteria Sustainability Compliance withthecriteria isregularly audited by thesustainability rating agency ISS ESG; ­LBBW's additional retirement pension plan (ZVK-LBBW) have been subject to sustainability criteria. Since 2011new investments orreallocation of fundsfor thecompany pensionsystem through V.” (BVI)) as well as the German Corporate Governance Code. Direct contact with management with contact Direct Code. Governance Corporate German the as well as (BVI)) V.” 1 , controversial environmental practices, and sustainability encompassed Management ­continuously ­restrictions external ­annual issued suppliers/ ­minimum working

Landesbank Baden-Württemberg 2019 Sustainability Report 65 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 66 Strategy and management are adhered to strictly. In this regard, we primarily follow the basic advertising, suchastheprohibition against advertising containing dishonesty or­ BW a nt sud n sntos fns o wrig de o o-opine with advertising to non-compliance due warnings or ­regulations in2019. fines, sanctions, any issued not was LBBW lines of theGermanAdvertising Council (“Deutscher Werberat” (seewww.werberat.de)). est (www.unpri.org). ­website (LBBW AM)to publishanannualtransparency report. Thisreport can beinspected attheUNPRI Implementing theUNPRIrequires LBBW andLBBW Asset Management Investmentgesellschaft mbH • • values andtheprevailing opinionsabout decency andmorals insociety. Legal ­ We take care to ensure thatallmarketing measures fall withinthescope of generally ­ Voluntary commitments inadvertising

or agreed to beboundby comparable sustainability criteria. ­invest­ ­review process for theRetail Customers/Private Asset Theissuers Management or segment. The “Sustainable Focus of theIssuer/Investment Firm”criterion hasbeenaddedto the­ associated funds) with agricultural commodities. investment and certificates (e.g. products investment any sell not does LBBW ment companies mentionedinourcurrent product recommendations have signedtheUN­ ­commercial regulations ­ misleading ­ ­communication guide- accepted ­ pertaining to statements, product societal PRI ­workers' rights (seepage 57et seq.). W • things. ­projects withanegative environmental impact constitutes ariskto LBBW's reputation, among­ down by theBoard of ManagingDirectors. Unsustainable action onthepartof ourcustomers or including reputation risks, withinthescope of LBBW's potential to bearriskandthestrategy laid risks, manage to tools of comprehensive range a of use the as defined is LBBW at management Risk Risk management/reputation riskmanagement • • • • • • • • where thesehave beenratified by the respective country: employees Group's LBBW all for conditions working equitable governingwww.ilo.org) Organization, We comply withtheeight core laborstandards set out intheILO Declaration (International Labor Equitable working conditions

e alsoexpect oursuppliers andtheirsub-contractors to comply withthesehumanrights and department, andthe“Sustainability­department, Management” team. Marketing/­ Non-transaction-related riskmanagement istheresponsibility of the“Group Communication/­ Worst Forms of ChildLabor Convention Minimum Age Convention Discrimination (Employment andOccupation) Convention Abolition of Forced Labour Convention Equal Remuneration Convention Right to Organise andCollective Bargaining Convention Freedom of Association andProtection of theRight to Organise Convention Forced Labor Convention Board of Managing Directors'BoardManaging ofOffice” Corporate “Regulatory and the division, ­Compliance” other

Landesbank Baden-Württemberg 2019 Sustainability Report 67 Strategy and management Landesbank Baden-Württemberg 2019 Sustainability Report 68 Strategy and management goals inconnection withriskmanagement. risks withintheLBBW Group andform thebasisof auniform Group-wide understanding of theBank's The riskmanagement guidelinesset out themainprinciplesfor theconsideration of opportunitiesand • • et seq.). A detailed riskandopportunityreport can befound inthe2019annualreport (page 43et seq.,page 94 Wording of guidelines for reputational risk(asof January2019)

their everyday business. in risks reputation and sustainability transaction-related assessing and identifying in units office The Group Compliance divisionandtheSustainability Management team assist therelevant front management. for OTC-traded (over-the-counter) derivatives for interest rate, foreign exchange, and­ (NPP) andloanapplication process. Aproduct approval process iscarried out priorto theNPP ­conducted decentrally by the front office units, especially in the course of the New Products The transaction-related management of reputation risks, suchasevaluating new business, is the environment andnature without addingecological value. arule,rules. As LBBW doesnot supportprojects thatclearlyleadto large-scale destruction of internal Bank's the restrictions in todefined subjectare issuessustainability critical other and The financing or hedging of deliveries of arms and defense or dual-use goods to other tax evasion oractions inviolationof tax compliance andcriminalactivities. investments. Itgoes without sayingthattheBankdoes not supportanyunlawfulacts, suchas protection, andanti-corruption efforts are taken into account whengranting loansand making At theLBBW Group, ethical aspects suchashumanrights, working conditions, environmental not offered ortraded. own nameandincustomer relationships. Products thatare inbreach of such requirements are Tax and regulatory requirements are considered whenconcluding transactions intheBank's avoided. Thesustainability policyof theLBBW Group must beobserved. Transactionsarethat toliable jeopardize Bank'sthe reputation for sustaineda be should basis The LBBW Group acts inthebest long-term interest of itscustomers andstakeholders. commodities ­countries ­Process 02 Responsibility and commitment

Commitment to sustainability Digitalization has revolutionized our lives – and it will still be some time before we can foresee many of the consequences for business and society.­ However, one thing is certain: our everyday lives are becoming more flexible and more mobile. And we all need to be more energy-efficient and more environmentally­ aware in doing business so that we can slow the pace of climate change and ­maintain our living conditions. As a public-sector bank (“Landesbank”), we are responsible for the people and companies in our region. We ­combine financial values with ecological and social ­value added. Our aim is to be a reliable partner for our customers, our employees, and the citizens of our country in order to help drive successful, sustainable­ change. Customers

Financing social projects

Investing and doing good: LBBW's social bond ­program makes it possible. It allows our EUR ­customers to invest in social and ­community projects in a targeted manner in areas such as ­education, health, drinking water supply, 2.7 and public infrastructure. The first bond with a ­volume of ­EUR 500 million was successfully billion ­issued in 2019. The program has a total volume of EUR 2.7 billion. LBBW's green bond program Social bond program has been financing environmental and climate protection projects since 2017.

Rewarding sustainable business activity

We encourage our borrowers to pursue ­ecological and social sustainability in their business activity.­ Positive Since 2019, we have offered special loans incentives ­(“positive incentive loans” or “sustainability-­ linked loans”) whose conditions are linked to Incentive loans the respective company's sustainable business generate impetus performance.­

Driving digital innovation

We achieved another milestone using block- chain technology: LBBW realized its first ­legally Blockchain ­effective digital securities transaction on the ­basis of blockchain without a parallel process in Quick and secure paper form. The investor was MEAG, the ­asset transactions manager of Munich Re and ERGO. In a block- chain, all postings are recorded in a chain of data sets, encrypted, and stored on multiple ­servers. This technology ensures transparency, prevents manipulation,­ and enables streamlined and ­secure transactions in near-real time. Landesbank Baden-Württemberg 2019 Sustainability Report 72 Responsibility and commitment ➔ Customers Customers future asareliable andresponsible partner. sustainable a to way their on customers our supporting innovations, digital the change process with sustainable investment products, green finance, and right now. Climate change andtheenergytransition are amongthebiggest challenges Top performing, reliable, basedonpartnership ­focus inthefuture. butThe timesmaybechanging, theindividualneedsanddesires of ourcustomers willremain ourkey Butand mobilebanking. we alsoplace emphasis onface-to-face discussions andholistic advice. ­security for We onlineshopping. are always there for ourcustomers – 24 hours adaythanks to ­ for community projects andassociations andare enablingpaymentmethods thatprovide optimal fully effective, a legally ­digital securities transaction using this new technology. We have initiated crowdfunding facilitating platforms Schuldschein, blockchain-based we first pioneer, market the financial realized a ­successfully As innovations. digital of development the promoting also are We bring their ideals to live with a foundation or make their dream of an energy-efficient home a reality. ­investors, i.e. for allof ourcustomers. Andwe provide advice andassistance for thosewhowishto ­managed securitiesfundthatwas previously onlyavailable withinasset management for retail bond. Because investing sustainably should not be a privilege, we have opened upa We alsoexpanded ourrange of sustainable investments to includenew fundsandastepped coupon The successful launchof ourgreen bondprogram was followed by asocialbondprogram in2019. for ­ ­targeted incentives with innovative financing instruments that offer attractive conditions as a reward key our are ensuring thatthechange process inbusiness andsociety isasuccess needs for thelongterm. We deliver customers' our on focus ­strategic objectives. afuture-oriented targeted As universal bank,we want to make anactive commitment to a and agility, digitalization, Sustainability, ­financing solutions andassistance with regard to riskmanagement. which ­ ­processes often require substantial investments which must be well thought through. At this timein and models business conventional analyze make themsustainable across critically theboard. Inconjunction withdigital transformation, thesechange to need They shareholders. and employees, doing business. Companies are undergrowing pressure to act –from politicians,society, ­ to comes it when day the of order the efficiency, are awareness, fairness environmental Energy and sustainable business activity. fundamental decisionsare beingmade, we act asareliable partnerfor companies, providing Digitalization is progressing rapidly. Our aim is to actively shape shape actively to is aim rapidly.Our progressing is Digitalization ­professionally consumers, online • • • • LBBW customer andProduct groups

included in this segment. included inthissegment. business activities connected withLBBW's function asthecentral bankfor savingsbanks are also such asasset securitiesaccount management, andfoundation management, Selected management. solutions, investment advice, andspecial services, particularlyfor highnet-worth ­ and tradespeople. The product range extends from checking accounts and card segment serves both the business and private requirements of medical practitioners, ­ are alsoallocated partof As to acomprehensive thissegment. customer­ ­requirements. Business customers includingmedical practitioners, freelancers, andtrades­­ banking inadditionto services for highnet-worth private clientswithmore extensive ­ GmbH, SüdLeasing GmbH,MMVBankandSüdFactoring GmbH. focus for sourced from ourcorporate customers are alsoreported Inlinewiththebusiness inthissegment. Theresultsmanagement. of capital ­ The ­allocated to thissegment. as themanagement of strategic investments andcover funds.ThesubsidiaryLBBW AMisalso the specifics of IFRS in connection with refinancing, FX management and hedge lending/deposittaking operations and balance sheet structure ­ management, Capital Markets Thisprimarilycomprises Business segment. the central ­ corporate with transactions market ­assigned to theCorporate Customers Inaddition,alltreasury segment. activities are ­ financial from results All activities. trading governments, insurance companies, andpensionfunds,thesegmentincludes­ management services andcustodian bankservices. Alongwithallcustomer ­ asset with along debt, and equity of field the in market primary the offeredon also are ­solutions In addition, the segment includes products and services for international business. ­currencies, credit risk,andliquidityfor theinstitutional, banks, andsavingsbanks ­ The ­allocated to thissegment. also is AM) (LBBW GmbH Management Immobilien LBBW subsidiary The financing. transport and infrastructure projects, major for provided are solutions financing finance, project of area the In ­supplementary range of liability products and interest rate and currency management products. financing corporate and portfolio, Property, on structures UK. are offered to real estate clientsasanarranger orsyndicate the bank,together witha focuses and financing Canada, US, estate the real in areas commercial ­metropolitan Germany, of market core the Alongside ­including business with real estate and housing companies in addition to structured project The areasof in the cash interest management, rate, ­ services provides also segment This financing. off-balance-sheet to ­structured the and ­greater Hamburgarea. Thissegmentalso­ well asother attractive ­ with afocus onthe core ­ The Retail Customers/Savings Corporate Real Estate/Project Finance segmentprimarilyfocuses oncommercial real estate business, Capital Markets Business segmentoffers products for themanagement of interest rates, public sector. On the financing side, the side, financing the On sector. ­public ­corporate customers, the segment primarily includes the subsidiaries Süd Beteiligungen segment comprises business with small and medium-sized and small with businesscomprises Customers segment economic ­ markets of Baden-Württemberg, Saxony, andRhineland-Palatinate as Banks currency andcommodities ­ segment comprises allactivities withprivate ­ regions suchasNorthRhine-Westphalia, Bavaria, andthe market business ­ includes ourbusiness withkey corporate accounts ouin ofrd ag fo casc through classic from range offered ­solutions products andforeign business products management, andassetmanagement, and­ management approach, the investment of own funds, liquidity ­ activities withbanks, ­business to ­accounting, as well customers in­­ customer groups. allocated to the private clients, utmr are ­customers corresponding management, management, ­enterprises, freelancers, ­Financing ­financing advisory ­selected pension ­finance. people retail

Landesbank Baden-Württemberg 2019 Sustainability Report 73 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 74 Responsibility and commitment ➔ Customers ­reliable personal advice isthebest basisfor asustainable andtrusting customer relationship. that know we Because this? all do we do Why lives. their of phase every in matters financial all on unit systems atLBBW for assessing salesandrevenue targets. We adviseandsupportourcustomers Our advisors are not assigned sales targets for individualsecuritiesproducts. There are nopointor documentation nolonger applies. ­decision. The“Suitability Report” hasbeenrequired by lawsince 2018.Theprevious consultation respective investor. This allows our customers to review the recommendation before making their writing why therecommendation we have made–e.g. to buy aorsellproduct –issuitable for the any associated risks. After eachconsultation, we prepare a“suitability report” in whichwe set out in We provide detailed andreadily understandable information about various forms of investment and financial plan. Long-term wealth accumulation andportfolio optimization are atthe forefront here. preparepersonalized subsequently a beyondand investingthose – including – exploregoalsto their needs isextremely important to us.Ourcustomer relationship managers work together withinvestors The goals andwishesof ourcustomers are ourtop priority. Integrated advice tailored to the­ Advisory approach • first. theadvisory for the framework ­Product ­ provide guidelines process and instructions work ­Specific for systematic and review are set out inthe“Guidelines therules for Retailand Customer Advice atBW-Bank”; see (www.bw-bank.de). services advisory financial to approach sustainable Our The adjustments as well as the reconciliation of internal financial control data to external financial to external data. data control ­reporting financial internal of reconciliation the as well as ­adjustments from effects earnings the former Credit final Investment portfolio. Reconciliation/Consolidation includespure consolidation the Bank's portfolio include the also segment of the for figures prior-year management The buildings. and of investments financial the include these particular, In Corporate Itemssegmentcomprises allbusiness activities not includedintheabove ­ selection guidelinesandreview mechanismsensure that we always put our customers' interests implementation ­implementation customer's segments. ­process. of theinvestor, MEAG, theasset manager of MunichRe andERGO. transaction onthebasisof blockchain technology without aparallel process inpaperform onbehalf operator,platform effective securities the legally digital first As its realizedLBBW2019: followed in schein for thetelecommunications company “Telefónica Deutschland” in2018.Another milestone Schuld- a by followed was This (“Sparkassen-Finanzgruppe”). Group Finance Banks Savings German chain block using Schuldschein a realize successfully to market German LBBW the on example, provider first the for ­became 2017, In involved. parties the for efficient more processes associated the and of years, we have intensively addressed digital innovations for the distributed, tamper-proof Blockchain technology makes transactions quicker, more secure, and more transparent. In recent Blockchain financing ­customers ­ ­technology. We offer paymentmethods thatprovide blockchain optimal securityfor Our onlineshopping. resource-saving using transactions securities and financing corporate to comes it when online crowdfunding platforms for community projects andassociations andare are adigital pioneer that forces the As other. each ­shaping ourfuture, impact they both form partof ourkey strategic objectives. Accordingly, and we have ­ linked closely are sustainability and Digitalization as possible. our customers withmore services, convenience, andsecurity–whileconserving resources asmuch and protect people's private lives posefurtherchallenges. Against thisbackground, we aimto provide necessarily result in improved resource efficiency. Issues such as the need to responsibly handle data Intelligent networking opens up a wealth of opportunities but also carries risk: Digitalization does not Things allows devices andmachinesto communicate andinteract witheachother. every partof life andbusiness. Smartcars, smartfactories, smarthomes,cities:theInternet of tailored precisely to customer needs. Digital transformation promotes technological innovations in networkedbeing is Data channels. moremore, and improving solutionsefficiency enabling be and to transparency. Information exchange is being accelerated and intensified by new digital more flexibleare andlives moreOur mobile.society. Quick andand easycompanies, accessmarkets, tochanging information throughis thedigitalization internetof is advance The Future-oriented solutions save paperandtime –italsoreduces CO ­communicating, and­ that make our­ by orinperson attheirlocal branch. videochat, Thisiswhy we have developed digital ­ continue offering our customers the best possible service and high-quality financial advice while advice financial high-quality ­actively shapinga­ and service possible best the customers our offering ­continue green ­purchasing the potentially ­ ­business transactions – distributed ledger technology (DLT) – in order to make financing ­technology together with the auto manufacturer Daimler and participating investors from the expect usto bethere for them–whether they are bankingonlineorusingamobile­ services available around theclock.Conducting transactions, obtaining ­ larger lcrct. u am s o eeae h opruiis fee b dgtlzto to digitalization by offered opportunities the leverage to is aim Our ­electricity. sustainable future through innovation. documenting andarchiving bankingactivities electronically doesmore thanjust ­carbon footprint caused by greater electricity usage for digital processes by 2 emissions by allowing peopleto drive less. We offset ­communication information, ­instruments ­improving ­becoming ­recording initiated options device, -

Landesbank Baden-Württemberg 2019 Sustainability Report 75 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 76 Responsibility and commitment ➔ Customers ­Finance Group (“Sparkassen-Finanzgruppe”). Banks Savings German the of initiative finance trade blockchain the of part as chains supply and trade companies. More accelerate theprocesses involved ininternational transactions whilesimultaneously reducing risk. intend to expand their use to increasingly include areas such as trade finance in order to This iswhy we want to drive aheadtheuseof distributed ledger technologies. Inthenext phase, we DLT protocol. Inparticular, thissaves timeandtransaction costs for themarket participantsinvolved. transaction can ensure therequired anddesired level of transparency by selecting acorresponding industry, whichrequires ahighdegree of securityandcomplete documentation. Thepartiesto the finance the to suited particularly definedtherefore are a technologies ledger with Distributedaccordance principle. consensusin only made be can Changes secure. and network the in distributed is onthe decentrally – is stored ­computers of the market participants involved and continuously checked. This means the torepayment payments interest through instrument financing a of ­instrument in a tamper-proof manner. The sequence of all transactions – e.g. from the origination a recordoftocomplete chain serving valuethe blocks of chain clear the forexample,with A blockchain isachainof data sets. Thesechainedblocks can contain information ontransactions, ­account information atanytimeand use theappfor on-the-go securities trades. news aswell asforecasts andanalyses by LBBW Research. Customers can alsoaccess securities keeps users continually updated oncapital market developments by providing business and­ Pe AssetGo –theinvestment app CO ­customers a trip to their branch or (to prove their identity) to the post office, thereby eliminating the new onlineaccounts orsignupfor products. Communicating by screen isconvenient andsaves branch. Anadditionalservice offered isvideoidentity authentication for customers wishingto open but alsoby text thereby orvideochat, providing thefullrange of advisoryservices of a­ Our advisoryteam attheBW-Bank Service Center isavailable for customers not onlyby telephone Video advice also reduces CO ­securities andcredit card Thispractice billing. isenvironmentally sounderthanpaperprintouts and BW- Online andmobilebanking convenience andabetter overview. of receipts (for guarantee orwarranty claims)directly intheaccount balance display, offer greater other functions, suchasphoto-based banktransfers, scanning of transfers viaGiroCode, andstorage balance queries,wire transfers, andaccount-to-account transfers ontheirsmartphones.Numerous The BW mobile banking app allows customers to access core online banking functions such as account a secure exchange of information, withtheoption of attaching filesas required. ople who are interested in securities can use the AssetGo investment app for smartphones. The app 2 emissions generated by driving. Bank's onlinebankingservices include electronic account statements, loanstatements, and ­efficient finance network powered by DLT. We are also working on concepts for international trade international for concepts on working also are DLT. We by powered network ­finance In 2018 LBBW joined the Marco Polo network, the world's largest and fastest-growing goods, money and credit flows are particularly important to export-oriented German 2 emissions by eliminating the need to deliver mail. The electronic mailbox guarantees conventional ­simplify and ­information economic ­financing fund for thispurpose. in ­contribution to each successful project. Every month, atotal Tübingen of EUR1,500isplaced into aproject from team rugby financial wheelchair a makes BW-Bank help, to other.people Bulls Tomotivateeach against play teams mixed the which by organized event sporting inclusive an for of purchase ­climbing andsportingequipment for theschoolyard of the“Silberwald”the Waldorf Schooland­ including Baden-Württemberg, in realized be to projects 220 allowed already has charitable, andcultural projects viatheinternet. Almost EUR800,000hasbeenraised to date. This (www.bw-crowd.de). Since 2014we have supported efforts to raise fundsfor small-scale ­ M crowd bw • • • • • • • • • • among others: paydirekt continually monitors retailers, thereby ensuringexclusion of thefollowing typesof sellers, are refunded theirmoney. Extensive buyer protection isoffered aswell: Ifasellercannot provide proof of customers shipping, data, whichisprocessed exclusively inGermanyaccording to Germandata protection requirements. and password are allthatisrequired to paywithacheckingaccount. TheBankalways controls the easily andsecurely shopontheinternet: once auserisregistered for ausername onlinebanking, B paydirekt W-Bank customers can use paydirekt, an online payment system for banks and savings banks, to

aking adifference together isthebasicideabehindcrowdfunding platform bw crowd by producing anddistributing mind-altering substances Co (e.g. prostitution) Online providers and/orservice providers thatare connected withorcondone thesex trade Pol services financial and transfers, cash ­providers established underaspeciallegal form orproviders of private hawala investment vehicles illegal of brokers exchanges, money unregulated Unregulated financial services providers, payment service providers without the necessary ­accordance withtheGermanAct onOut-of-Court Legal Services (“Rechtsdienstleistungsgesetz” (RDG)) Col 69a et seq.of theGermanForeign Trade Regulations (“Aussenwirtschaftsverordnung” (AWV)) Suppliers of goods orservices incountries subject to embargo actions inaccordance withSections Germany P sporting andhuntingfirearms andaccessories of dealers of exception the with war, of weapons and/or firearms of manufacturers and Dealers Online gaming providers thatconvert cash into virtualcurrencies (surrogates) games of chance, onlinecasinos Non-state licensed andnon-state monitored gambling establishments, betting orlotteries, online arties that do not fall under the Political Parties Act (“Parteiengesetz”) of the Federal Republic of FederalRepublic the (“Parteiengesetz”) ActofParties Political the under fallnot do that arties pne o idvdas h voae h Gra Nrois c (“Betäubungsmittelgesetz”) Act Narcotics German the violate who individuals or mpanies lection agencies not registered withthelocal court orregional court withlocal jurisdiction in itically/religiously/ideologically radical groups orhate groups community, support permit, ­permit,

­ ­

Landesbank Baden-Württemberg 2019 Sustainability Report 77 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 78 Responsibility and commitment ➔ Customers been collected for 15clubsandschoolssince Xavin GmbH was launched. already has 880,000 EUR institutions. social and non-profit other and schools private financing also ­traded asaseparate company since 2018.Thestart-up primarilyworks withsportsclubsbut isnow for regional andemotional investments, was launchedwiththeassistance of LBBW in2016andhas club willget to train inabrand-new open-airsportshallinthefuture. Xavin, thedigital platform “JFVthe at Rhein-Hunsrück” people young playground,and adventure their love club sports riders in Hegnach now have a new floor surface in their indoor arena, children at the “MTV Stuttgart” example, For themselves. member a as infrastructure improved from benefiting even or project ful ­receive not just an attractive monetary profit, but also the emotional return of supporting a meaning infrastructure projects. Fans and supporters can help their club by providing a loan and, in return, easily and quickly to possible it makes (www.xavin.eu) Xavin platform investing crowd The Clubs andassociations are an important pillarof oursociety andahubfor friendshipsand­ Xavin –crowd investing for clubs/associations andtheirmembers ­report prepared inaccordance withthe standards of theGlobalReporting Initiative (GRI). For large companies andmultinationalcorporations, we require thepublication of asustainability of clauseson compliance withtax criteria. inclusion the as well as criteria, tax and rights gender-specificwomen's criteria, to applies same The compliance withthesecriteria intheagreements they conclude withsubcontractors andsuppliers. ­protection, combating corruption, humanrights, andworkers' rights. We alsoexpect themto demand environmental, to integrate expected are ­social, andgovernance finance criteria into theiroperating policies,includingcriteria concerning climate we which or invest we which in companies The take care to protect theenvironment andupholdbiodiversity. corruption, among other things. In our investment and lending business (including project finance), we ­ensures compliance withallinternal andexternal rulesandlaws andprevents criminalactions and the peoplewithwhomwe dobusiness, eitherdirectly orindirectly. Group Compliance proactively We assign top priorityto dealinghonestly andcorrectly withourcustomers, employees, andallof respect to sustainability andallow usto leverage thecorresponding opportunities. are basedonourGuidelinesfor Sustainability (seepage 16et seq.),whichhelpusto reduce riskwith ­concept of sustainability atourinternal andexternal events. Allourinvestment andlendingservices We actively encourage thisinterest insustainable investments andraise publicawareness of the traction inGermany. targetsin financial of achieving idea The ­conformity withapersonal ethical stance aswell associalandenvironmental objectives isgaining my money?” with financing bank my is “What ­question, Is mymoney invested well? Thisconsideration nolonger refers simplyto returns but alsoto the Sustainable products, sustainable conduct UE competition. ­booster ­finance - • • as investors withadditionalethical requirements, suchaschurches andpensionfunds. way, they meet therequirements of sustainability-oriented private andinstitutional investors aswell the best-in-class method iscombined withextensive exclusion criteria (negative screening). Inthis LBBW AM's four sustainable mutual fundsfollow anextremely strict sustainability concept inwhich LBBW AM's sustainable mutual funds of aninnovative approach. within asset management (seepage 80).Itexplicitly integrates alltheUNsustainability goals aspart October 2019.Managed by BW-Bank, thissustainable strategy fundwas previously only­ In addition, retail customers have been able to invest in the “VV-Strategie Wertstrategie 50” fund since one of theworld's leadingindependentrating agencies inthesustainable investment segment. funds are selected onthebasisof thesustainability ratings publishedby ISS ESG(formerly ISS ­ four sustainable mutual fundsandonesustainable thematicfund.Theinvestment universes for these ­institutional investors, LBBW Asset Management Investmentgesellschaft mbH(LBBW AM)manages In additionto several sustainable specialinvestment fundsandasset management mandates for Sustainable mutual funds/environmental funds multipliers withinthesalesunitsinourretail customer business. In 2019,we alsoconducted numerous information events andtraining initiatives for the­ program. in Advisory Business) seminarispermanentlyavailable to oursalesemployees aspartof our­ and our sustainable products in particular. The “Nachhaltigkeit im Beratungsgeschäft” (Sustainability We usespecialtraining courses to extensively inform ouremployees about sustainability ingeneral commitments, among other things. voluntary through criteria sustainability with portfolio our align We organizations). and institutional investors (e.g. insurance companies, investment companies, foundations, andchurch W Sustainable investment products

e offer anextensive portfolio of sustainable investment products for retail andcorporate customers ­transparency logo for sustainable mutual fundsand,asintheprevious years, theAustrian ­ This fundhasalsobeen awarded theFNGtransparency logo withtwo stars, theEuropean ­corporate andsovereign bondsthatexhibit above-average performance interms of ­ The “LBBW Nachhaltigkeit Renten” bondfundinvests ingovernment bonds,Pfandbriefe, and European the and stars two with Switzerland) and Austria Germany, in investment ­sustainable ­transparency logo (FNG:“Forum Nachhaltige Geldanlagen”, theindustry association ­ to their above-average involvement in sustainability issues. The fund has been awarded the FNG The has alsoreceived theAustrian Ecolabel. ­transparency logo for sustainable mutual intheprevious funds.As years, ­ “LBBW Nachhaltigkeit Aktien”equityfundinvests incompanies worldwide thatstand out due “LBBW Nachhaltigkeit-Aktien” sustainability. sustainability promoting available Ecolabel. oekom), training

­

Landesbank Baden-Württemberg 2019 Sustainability Report 79 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 80 Responsibility and commitment ➔ Customers BW LBBW AM's thematicfunds • • • •

European transparency logo for sustainable mutual funds. of theUNGlobalCompact.Ithasbeenawarded theFNGtransparency logo withtwo stars andthe criteria exclusion minimum the meets fund The risks. 100 climate sector-specific as well on as ­indicators based companies of performance climate the evaluates which weak ­ in investments eliminates that filter” change “climate a through put are ­securities and ­ The “LBBW GlobalWarming” thematicfundprimarilyinvests incompanies offering ­ and iscontrolled usingadynamicvalue preservation strategy. Thefundwas relaunched in2019. ­companies andpublicissuers thatexhibit above-average performance interms of sustainability and certificates, securities, ­money market instruments, as well as up to 30 fixed-income in worldwide invests primarily investors, ­institutional The defensive mixed fund“LBBW MultiAsset Defensiv Nachhaltigkeit”, whichisaimedat two stars andtheEuropean transparency logo for ­ ­performance interms of sustainability. Thefundhasbeenawarded theFNGtransparency logo with in upto50 as ­equities. Its portfolio includes companies that stand out thanks to their above-average well as instruments, market and money certificates, securities, fixed-income in The balanced mixed fund“LBBW MultiGlobalPlusNachhaltigkeit” primarilyinvests worldwide ­requirement. ­threshold of 92 risk of loss to 8 ­cooperation withdata analysts from ESGScreen 17GmbH.The fund ismanaged soasto limitthe ­All 17of the SDGsare weighted equally. Theinnovative sustainability approach was ­ of theircontribution to theattainment of theUNSustainable Development Goals(Agenda 2030). business activities andpractices are excluded. Theremaining companies are then evaluated in terms equities, taking sustainability criteria into account. Firstly, all companies involved in controversial “VV-StrategieThe Wertstrategie invests50” diversifieda widely in portfolio up and bonds of 50 to ­low-­ -Bank's sustainable mutual funds ­sustainability issues, as well as bonds from public-sector issuers that exhibit above-average carbon riskstrategy andisalsosubject to exclusion criteria basedonsustainability. ­ services thatcounteract ormitigate theconsequences of globalwarming. Thefund­ ratings interms of climate-relevant issues. Thisanalysis isbasedonthe“Carbon Risk­ % doesnot represent aminimumvalue guarantee. There isnominimuminvestment % of thevalue atthestart of theyear where possible. However, thislower value % in equities. The fund focuses on instruments from sustainable mutual funds. any industry-specific ­mainly companies with ­companies The The developed in ­involvement individual ­individual follows a products Rating”, in % % % construction andrenovation. 23.5 million as of 31 December 2019. The funds were primarily used to grant loans for energy-efficient new fundstotaling EUR0.3millionintheBW ZukunftsSparbrief, meaningthatthetotal volume was EUR a secure annualreturn over aterm of three andthree-quarter years. In2019,ourcustomers invested ­community, and scientific organizations in the public sector. The BW ZukunftsSparbrief gives customers criteria for awarding assistance to projects were developed alongwithprominent environmental, ­forest ­renovation, ­ through­ ­contribute greatly to ensuringabright future andgood qualityof life intheStuttgart region and savings bond.Each euro invested promotes lendingto sustainable projects andinnovations that Retail customers can help finance community and environmental projects with the BW BW ZukunftsSparbrief • • • • Awards T or ecological standards. institutions thatsystematically violate humanrights, workers' rights orcentral political, social, ­Austrian Ecolabel maynot invest innuclearpower, arms,genetic andcompanies engineering, or their policies. as well ­investment as processes research and criteria investment their disclose that funds ­recognizes The European transparency logo for sustainable mutual funds,whichisawarded by theFNG, sustainable fundsworldwide. evaluates and analyzes company Swiss The investments. sustainable as funds these recommends haltigkeit Aktien” and “LBBW Nachhaltigkeit Renten” funds to the SRI universe in 2012, meaning it the sustainable investing committee of Swiss Care Group AG already added the “LBBW Nach- Socially responsible investment (SRI):Havingpreviously addedthe“LBBW GlobalWarming” fund, (German Sustainable Investment Forum) thatestablishes aqualitystandard for ­ The FNGtransparency logo isarenowned qualitysealawarded by “Forum Nachhaltige Geldanlagen” the responsible partiesattheindividualcompanies. achieved by thefundmanager, for instance through theinvestment strategy andcritical dialogwith particularly withregard to transparency andresearch quality, aswell asthesustainability impact developments intheareas inwhichitdoesbusiness. Theassessment alsoincludesproduct standards, looks atinstitutional credibility, inother words thedegree to whichacompany promotes sustainable that exceed theminimumrequirements. Theseare evaluated by ­ particularly follow funds Certified countries. German-speaking in he Austrian Ecolabel isanindependentenvironmental andqualitylabel.Funds bearingthe management, ­management, and natural cosmetics as well as projects by non-profit organizations. The out Baden-Württemberg. These include investments in energy-efficient construction and and construction energy-efficient in investments include These Baden-Württemberg. out

renewable energies,environmental technologies, organic food, green IT, green mobility,

independent auditor Novethic, which ­ambitious sustainability strategies ­sustainability sustainable ­ ­ZukunftsSparbrief investments selection ­selection

Landesbank Baden-Württemberg 2019 Sustainability Report 81 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 82 Responsibility and commitment ➔ Customers or service, aswell assustainability-relevant innovations for themarket. new standards transparency, setting of for the certificate especially quality, market, the of behalf on for the issue of the first stepped coupon sustainability bond. This award recognizes accomplishments to supportclimate policyobjectives. We aim to continuously expand the financing capacity for the United Nations development goals and green andsocialbond programs isEUR3.7billion(asof 31December 2019). be soldortransferred to LBBW eachtrading day. can and term fixed no has It 2017. December 27 on issued was Index FavoritesStock ­Sustainability capitalization marketResearch LBBW the large tracking certificate index open-end with LBBW turnover.The market companies stock high sustainableand on focus investments Our weekly. “Prime” ­index as classified has agency rating ­according to environmental, social, and ethical criteria. We sustainability review the composition of the LBBW independent the that universe ­investment the performance in toparticipate Favorites Stock Index. Our analysts typically select ten equities for this index from the ISS ESG customers our allows of certificate index open-end LBBW The Sustainable investment certificate e financial institution market segment, LBBW is the second-largest issuer of ESGbonds issuer the second-largest (“sustainability bonds”)outside China(asof 2019). is LBBW segment, market institution financial In the social,governance)ESG bonds(ESG=environment, On 28November 2019,therating agency Scope Analysis GmbHpresented LBBW withthe“Special Award ­particularly Goal7“Affordable andGoal13“Climate andCleanEnergy” Action”. contributes indirectly to the achievement of theUnited Nations'Sustainable Development Goals, bond Nachhaltigkeit” Stufenzins-Anleihe “LBBW Our goals. environmental support to them allowing bond framework. Thisprovides customers withregular interest income thatincreases over timewhile accordance LBBW's in greenrenewable and with energies energy-efficient buildings as such projects of use funds available sustainable for smallerprivate investment volumes. the Theproceeds are invested make insustainable to market German the on bond structured first the is It 1,000. EUR of sustainability coupon steppedbond hasgiven investors access to “green” forms of investment starting Nachhaltigkeit” from aninvestment amount Stufenzins-Anleihe “LBBW the 2019, October Since Stepped coupon sustainability bond

sustainable equities. The certificate tracks the performance of the LBBW Research LBBW the of performance the tracks certificate The equities. sustainable

Theoutstanding transaction volume of LBBW's ­Sustainability ” portfolio-wide basis. also ­ with theICMAGreen BondPrinciples(ICMA=International Capital Market Association), whichare The impact of our green bonds is published annually in an impact report prepared in accordance ­Development Goals(particularlyGoal7“Affordable andGoal13“Climate andClean Energy” Action”). Our green bondsare therefore contributing to theachievement of theUnited Nations'Sustainable prevention andcontrol, andhealthy ecosystems. ­adaptation, sustainable useandprotection of water andmarineresources, circular economy, pollution that satisfy at least oneof thesixenvironmental objectives: climate protection, climate change investments and activities sustainable ecologically or green define to intended is taxonomy EU ­The sector asannounced intheEUaction plan in March 2018andcarried out withthe EU ­ developmentsregardintegrationthe political sustainabilitywith ofthe in the to supporting market development and broad implementation of sustainable finance solutions. In this way, LBBW is In continuously expanding ourgreen bondactivities, we are makinganactive contribution to the The utilization rate of theprogram is49.7 The share attributable to renewable energiesincreased by EUR700millionto EUR2billionin2019. to EUR6.4billion.Renewable energieshave beenincludedinthegreen bondportfolio since 2018. ofAs 31 December 2019,we furtherincreased theissue baseof thisprogram from EUR5.9billion werealso bonds Green ­issued inPfandbriefissues. format andinUSdollars. byfurther was followed It properties. commercial energy-efficient green bond issue to date by a European commercial bank. The proceeds were initially used to finance 2017, thus expanding December its investor baseto includeleadinginternational ESGinvestors. in Thiswas thelargest million 750 EUR of volume a with bond green unsecured first its issued LBBW and theenhancement of thedata collection methods are performed by external consultants. the actual useof funds was prepared by thesustainability rating agency ISS ESG.Impact reporting The accompanying second-party opinion(SPO)independentlyverifying theecological standing and A cross-divisional “Green BondCommittee” ensures thetransfer of expertise withintheBank. the market andbroadening theirimplementation. the Climate of the criteria Bonds Standard and reflects green business with goals. This forms thein basis accordance for integrating ESG bonds into assets green finances which approach portfolio the the “LBBW green bond program” in 2017. LBBW was the first commercial bank in Europe to In linewithourdesire to actively drive aheadthedevelopment of thegreen bondmarket, we launched Green bonds are used to finance specific projects in the area of environmental and climate protection. Green bonds ­market standard andwhichmakes iteasierfor institutional investors to consolidate CO of theICMAHarmonisedFramework for Impact Reporting, whichhasbecome established asthe recognizedthe accordance with in reported is dioxide carbon of volume The 2019). of (as tons 1,323,655 to amounts energies renewable and properties commercial sustainable of ­financing incorporated into theEUGreen BondStandard. Allinall,theannualCO

% withEUR3.2billioninoutstanding green bonds. 2 reduction dueto the 2 savingsona taxonomy. ­principles ­introduce ­financial

Landesbank Baden-Württemberg 2019 Sustainability Report 83 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 84 Responsibility and commitment ➔ Customers Social bonds certification as standard, this with comply also will ­signifies the conformity of aninvestment withthe goals of the Paris Agreement. issues Future Agreement. Paris the the of to conforms goals bond green a that signifies it things, other Among investors. oriented ­sustainably and qualifying commercial properties in Germany. This certification enjoys special recognition among Bonds Initiative (CBI) for a green bond transaction for the development of a method of the from certification obtain to bank commercial European first the became LBBW 2018, In • • • • Asset investments includethefollowing assets: corporate customers, andinstitutional clients. BW-Bank andthesavingsbanks asinvestment opportunitiesfor highnet-worth private ­ Following an intensive review andplacement approval, we offer alternative asset investments through was property certified environmentally an with ­concluded withinvested equityamountingto EUR30million. purposes foundation serving fund a There isgrowing demandfor sustainable options inthearea of asset investments. In2019,for ­ Alternative asset investments by BWEquity withasustainability focus Nations' United the Goal 6“Clean Water andSanitation”, andGoal11“Sustainable CitiesandCommunities”. of the achievement for spectrum ­Sustain­ financing our expands program bond social The Development Goals.Impact reporting isperformed by theexternal service provider Prognos AG. Sustainable Nations' United the integrating analysis sustainability a involves also this time, first the responsible for the second-party opinion verifying factors such as the social benefit of the bonds. For program buildsonoursuccessful green bondprogram. Theindependentrating agency ISS ESGisalso bond social LBBW The eight years. of term a and million 500 EUR of volume a with bond social first folio have avolume of EUR 2.7billion(asof 31December 2019). InSeptember 2019,we issued our health, drinkingwater supply, publicinfrastructure, andtransportation. Theeligibleassets intheport education, as such areas in projects community and social of range wide a finances which program, the opportunityto invest insocialprojects. In2018,we therefore developed theLBBW socialbond apublic-sectorAs bank(“Landesbank”) andapublic-law institution, we alsowant to give investors

Means of transportation (e.g. airplanes,aircraft components orspare parts,trains) Real estate in Germanyandabroad (e.g. office buildings,shopping centers, orapartmentbuildings) Private equity (off-market equityinvestments incompanies) wind farms, Power plantsandtheinfrastructure usedby theaforementioned assets (e.g. photovoltaic systems, able Development Goals,particularlyGoal3“Good HealthandWell-being orhydroelectric plants) ” Ga 4 Qaiy Education”, “Quality 4 Goal , ­successfully investors, ­recording example, ­Climate - ­­ ment fundsupports10of the17United NationsSustainable Development Goals. of andinfrastructure energy assets since thestart of 2020.Thisfullyregulated alternative invest For example, “BVT Concentio Energie & Infrastruktur” has allowed our investors to invest in a funds thatconsolidate multipleasset investments across various asset classes. signed theUNPRIin2019.Derigo performs portfolio management for Concentio, aseriesof umbrella ­existing guidelines.For example, thepartnerasset management company derigo GmbH&Co. KG Product partners of BWEquity are required to develop theirown sustainability principlesorapply • • • ­additional sustainability criteria andexclusions. Itdoesnot invest in: the Group's sustainability principlesandguidelines.Theseinternal obligations are supplemented by BWEquity itselfisasignatory of theUNPRIand,asasubsidiaryof LBBW, isrequired to observe the United Nations'Principlesfor Responsible Investment (UNPRI)). and ­ related criteria (e.g. green building), management (e.g. assessment of thetenant usingsocial/ethical tobusiness inaddition For example, thefollowing dimensionsare closelyexamined for commercial properties: Property-­ that, process review certified ­aspects, a explicitly alsotakes into account environmental, social,civic,andethical/moral principles. to according investments the select We

green genetic etc.); engineering, ethically andmorally dubiousprojects (e.g. investments intobacco, alcohol, nuclearenergy, arms, ecological value; projects that clearly lead to large-scale destruction of the environment and nature without adding projects withethically controversial business practices (e.g. violationsof humanrights orworkers' rights). environmental criteria), andthesustainability approach of themanager/advisor (e.g. signature of ­portfolio -

Landesbank Baden-Württemberg 2019 Sustainability Report 85 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 86 Responsibility and commitment ➔ Customers ­auditor ALS­ more precious ­ German the by marketed and SA Valcambi company refining metal precious Swiss the by produced ­international ­ for example. The­ o e xmlr. o eape te uies aaie ou Mny ae u a “excellent” as (test us inissue 48/2019). rated Money Focus magazine business the example, For exemplary. be to ­sustainability criteria. Independent tests have repeatedly found our asset management ­ ­mandates. BW Premium mandates for individualsecuritiesmanagement have beenconcluded as­ We that comes solely from certified mines in the Nevada desert. Production is subject to strict subject is Production desert. the Nevada in ­guidelines: mines certified from solely comes that Under theResponsible Goldbanner, BW-Bank offers itscustomers sustainably produced gold Responsible Gold • • 17 United ­ – are issuers that from ­companies ­ bonds) and government corporate ­contribute to theattainment of theUnited Nations'Sustainable Development Goals.Firstly, all (Pfandbriefs, securities fixed-income and We alsooffer two sustainable strategy funds.Both of theseactively managed fundsinvest in­ and classify financialinstruments and/orissuers according to transparent sustainability criteria. criteria. To thisend,BW-Bank works withproviders andasset management c We offer ourcustomers asset management solutions taking into account ethical, social,and­ Asset management according to ethical, social,andenvironmental criteria emissions. ­account inthe­ ­ensures in­ that,

been ableto invest inthisfund(seepage 80). of 2018.Equities are limited to amaximumof 50 start the at sustainability “VV-Strategieto convertedthe fund strategyWertstrategiefully We50” and ­Equities are non-profit limited to amaximumof 30 foundations particularly i.e. investors, tax-exempt for specifically The “VV-Strategie Stiftungen Wertstrategie 30 ESG” strategy fund was launched at the start of 2018 are alsoseeingageneral upturn indemandfor sustainable investments: Around 20 ­excluded. The remaining companies are thensorted onthebasisof theircontribution to the ­expensive metal trader ESGGmbH&Co. KG. Thesales price includesasmallsurcharge to cover the As ofAs 31December 2019, we managed assets of around EUR1.15billionbasedon Nations ­ involved incontroversial business activities –suchastobacco products, gambling orarms ­A Mining isrequired to involve sparing useof chemicals like mercury andminimalCO Inspection UKLtd. regulations (e.g. thoseissued by theUN).They are paidunionwages. The gold bars are special ­ selection process. Theriskof loss islimited. addition to ecological aspects, socialandeconomic considerations are taken into ­production process and the monitoring of production by the independent British miners work underconditions thatcomply withallhuman rights requirements and Sustainable Development Goals.Allof the17SDGsare weighted equally. This environmental impact system ensures thatthewater qualityisnot endangered, %. %. Since October 2019,retail customers have ­ ­­ompanies thatassess environmental environmental ­organizations. sustainability % of allnew activities equities equities also 2

than 100speciallyselected, industry-specific criteria. ­performance of companies aspartof theISS ESGCorporate Rating process isbasedonmore issues inthe industry andaverage ratings. Theassessment of thesocialandenvironmental ­violations of exclusion criteria (suchashumanrights violations),aswell askey ­ Interested customers receive information about thestrengths andweaknesses of companies, teams atthesavingsbanks andBW-Bank withanextensively researched sustainability ­ In addition to a conventional financial analysis, this partnership provides the financial but alsointerms of theirsocial,ecological, andethical performance. and bondsare evaluated not onlyonthebasisof criteria includingreturns, risk,andliquidity, cooperation withtherating agency ISS ESG(formerly ISS oekom). Some350issuers of equities customers abroad range of sustainability research asanaidfor makinginvestment decisionsin L Sustainability research for savingsbanks andBW-Bank customers BBW is the first German public-sector bank (“Landesbank”) to offer savings banks and sustainability ­BW-Bank ­advisory analysis.

Landesbank Baden-Württemberg 2019 Sustainability Report 87 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 88 Responsibility and commitment ➔ Customers Sustainable investment products ataglance 8 Corresponds to approximately 12.7 7 Corresponds to approximately 14.3 6 Period from 2001to 31December 2018. 5 Period from 2001to 31December 2019. 4 Corresponds to approximately 27.7 3 Corresponds to approximately 27.3 2 FOS Rendite undNachhaltigkeit (Deutsche OppenheimFamily Office strategy fund);adefensive mixed fundmanaged by DWS. 1 SPKED=Sparkasse Erding-Dorfen: exclusively launchedfor thiscooperation partner;abalanced mixed fundmanaged inlinewithsustainable aspects. EUR million Funds LBBW Asset Management Investmentgesellschaft mbH(LBBW AM) LBBW open-endindex certificate tracking theLBBW Research Sustainability Favorites Stock Index Total investment “VV-Strategie-Stiftungen Wertstrategie 30ESG” ISS oekom) Total assets managed undersustainability-oriented criteria according to ISS-ESG (formerly Asset Management Total funds invested “BW ZukunftsSparbrief” “VV-Strategie Wertstrategie 50” “FOS Rendite undNachhaltigkeit” Alternative asset investments inrenewable funds(includingforest energy funds) BWEquity GmbH LBBW stepped coupon sustainability bonds LBBW Certificates Total “LBBW Nachhaltigkeit Renten” “LBBW Nachhaltigkeit Aktien” SPKED Invest “LBBW MultiAsset Defensiv Nachhaltigkeit” “LBBW GlobalWarming” “LBBW MultiGlobalPlusNachhaltigkeit” Capital placed Borrowed capital (assumed initialleverage of approx. 70 Sustainable direct investment mandates LBBW AM:“Spezialfonds Nachhaltigkeit” 1

% of thetotal AuM of Asset Management asof 31December 2018. % of thetotal AuM of Asset Management asof 31December 2019. % of thetotal AuM of LBBW AMasof 31December 2018. % of thetotal assets undermanagement (AuM) of LBBW AMasof 31December 2019. 2 %) 21,683.7 1,154.6 16,474.2 4,834.2 331.1 231.8 2019 99.3 128.3 133.3 182.4 34.0 17.9 18.2 41.8 23.5 47.5 43.7 2.3 0.2 3 5 5 7 5

19,855.4 15,807.2 3,847.2 261.4 913.8 373.4 2018 109.3 116.5 112 37.5 54.2 32.7 23.2 36.5 2.8 - - - - 6 6 8 6 4

­sustainability multipliers was revised. was expanded to includethelatest content andsustainability topics andthetraining concept for the annual training program. In2019,thispractice-oriented basicseminaronsustainable investment asa “Nachhaltigkeit inderBeratung” (Sustainability inAdvisory Activities) seminarisintegrated into our of BW-Bank unit office front every in advisor ­multiplier for sustainable investments andprovided therequisite one furthereducation andtraining. This least at named have we years, recent In to encourage anincreasing numberof investors to trysustainable products. In addition, we organize events on sustainability issues and participate in trade shows on the subject processes. ­structuring more andmore ESG(environment, social,governance) aspects into our product selection and of ­ ­economic viability of investment projects in manyother asset classes. well As as this, we take Sustainability criteria are alsoplayinganincreasingly important role intheassessment of the and “Deka-ImmobilienGlobal” –withportfolios comprising are more than70 buildings and sustainable energy-efficient certified example, ­becoming established as the standard. We offer for our retail customers two funds –­ funds, estate real of case the In (Source: FNGMarket Report 2019,asof 31 December 2018). 4.5 to amounts now and recent in years significantly increased has whole a marketas German the By way of comparison, the proportion of sustainable investments (investment funds and mandates) approximately 14.3 ­sustainably managed assets inAsset Management amounted to EUR1.15billion.Thiscorresponds to This ­ ­invest­ ­managed sixsustainable mutual funds,several sustainable specialinvestment fundsanddirect ofAs 31December 2019,LBBW Asset Management Investmentgesellschaft mbH(LBBW AM) and therefore intend to market sustainable products inadditionalasset classes. ways of investing their money. We still see enormous potential in the field of sustainable investments tomajor Inaddition ­institutional investors, anincreasing number of retail customers years. are becoming interested in­ recent in significantly grown has investments sustainable for Demand sustainability criteria inourconventional investment products andare attempting to ­ corresponds to approximately 27.3 ment ­ mandates inaccordance withsustainable criteria withatotal volume of EUR21.68billion. % of thetotal invested capital inAsset Management. % of LBBW AM's total assets under management. The volume of of % of LBBW AM'svolume total assets The undermanagement. % certified properties. “WestInvest InterSelect” incorporate sustainable ­account %. ­in

Landesbank Baden-Württemberg 2019 Sustainability Report 89 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 90 Responsibility and commitment ➔ Customers sustainable fundraising. their work. Almost 400foundations are currently taking advantage of thisopportunityto boost their publicizing for platform a foundations offers (https://stiftungen.bw-bank.de) portal foundation Our ­effectively according to ESGcriteria (ESG=environment, social,governance). on ­ and theever-changing nature of foundation law. Italsoserves asavaluable source of information of numerous foundation executives when it comes to navigating substantial societal ­ who wishto become donors withnew ideas andprojects. Itprovides targeted supportfor the­ ment – Inspiration for Foundations), hasbeenpublished for 17years now, providing donors andthose Our publication, whichiscalled “Stiftungsmanagement –ImpulsefürStiftungen” (Foundation Manage- supported by BW-Bank's foundation management team. worked intheaerospace industry for more than30years andisacampaigner for gender equality, is ­mathematics) andpromote young talents. Thefounder of thefoundation, ClaudiaKessler, whohas aims to get women andgirlsinterested intheSTEM subjects (science, technology, and engineering, which foundation, Astronaut) German Female (First Astronautin” deutsche “Erste the by financed is her keynote speechon the socialrelevance project of her mission. Costing aroundthe EUR50 million, the first female German astronaut to fly to the International Space Station, captivated the motto “Unsere Demokratie” (OurDemocracy). Meterologist InsaThiele-Eich,whoistraining to become Deutscher Stiftungstag 2019,Europe’s largest foundation conference, was heldinMannheimunderthe to itstop positionintheannualranking, BW-Bank alsodefended its first place inthe“all-time list”. out its wide range of services and well-considered investment proposals for in the“Fuchs Report”. Thejuryacknowledged BW-Bank's “strong performance atafair price”, singling countries. The ranking is performed annually by the renowned Fuchs-Richter Prüfinstanz and In 2019,BW-Bank was again rated asthebest foundation expert inGermanyandthe­ 850 ­ ­customized solutions that extend far beyond standard banking services. We currently advise the around deserve they ­BW-Bank helps donors environment, effectively realize their commitment. the To do so, our or team of experts society of good best ­ the for capital their use citizens When Foundation management foundation andtax law-related issues andtipsfor investing foundation assets sustainably and foundations withtotal assets of approximately EUR5.0billion. possible support. Frompossible support. theinitialideathrough forming afoundation to managingassets, ­particular praise. Thanks German-speaking ­audience with challenges ­published ­develops actions business relationships. corporate loans or assessed at an at assessed and ­mandatory internal review processes and a comprehensive set of rulesto ensure that reputation W Management of environmental andsocialrisks to documentoursustainability performance inourfinancingbusiness (seepage 106 et seq.). some instruments with incentives to do business sustainably. We have established standardized KPIs expanding our range of financing products with sustainable added value and, since 2019, have linked LBBW supports the objective of a fair, environmentally-friendly economy. such, we As are ment to agreater extent. Banks are aimsto playingakey role inimplementingtheaction plan. 2018 in Commission manage- the European risk into sustainability integrate and by investment sustainable towards flows capital ­reorient published finance sustainable for plan action The Increasing regulatory requirements home to beenergy-efficient. their designing to through car electric an financing fromalike, projects small and large for expertise We alsohelpourretail customers to live inamore environmentally aware manner. We offer themour international trade activities by structuring tailored export finance solutions. support secure footing. We a on financing the place totogether work weprojects, renewable energy ­future. From environmentally-friendly production facilities anddigitally connected infrastructures to partner andadvisor. auniversal As bank,we alsohelpnumerous SMEsto invest inasustainable to drive forward good ideasandmake innovation areality. Thisiswhere we come inasareliable Change involves more thanjust anew way of thinkingandastrong will–italsorequires the­ strategy. ­sustainability future. apublic-sector As bank,we seethistask asourresponsibility to society. Itisakey aspect of our is thinking in We change ­required. A now. right challenges the of some just are globalization and ­digitalization, Our economy isgoing through aperiodof upheaval. Thetransition to renewable energies, Financing e are aware of our corporate responsibility in all financing projects. This is why we apply why is This projects. financing all in responsibility corporate our of aware are e sustainability risks relating to the environment, society, or ethics are identified, analyzed, and analyzed, society,identified, areenvironment, ethics the or torelating ­sustainabilityrisks support our customers in transitioning to sustainable business models that are fit for the the fit for are that models businesssustainable totransitioning customers in our ­support early stage in the process of deciding on extending credit, such as exportas extendingsuch credit,processon the deciding stageofin ­early ­project finance. This can result in LBBW rejecting such transactions or ­increasingly ­terminating ­financing, capital

Landesbank Baden-Württemberg 2019 Sustainability Report 91 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 92 Responsibility and commitment ➔ Customers Agency (MIGA), orthedevelopment bankIFC itself. (IBRD), theInternational Development Association (IDA), theMultilateral Investment Guarantee and Reconstruction for Bank International the by financed those as such particular The IFC standards must beobserved for projects indeveloping nationsandemergingeconomies in ­conditions attached, e.g. acontractual obligation to dismantleequipment. is ensured dowe disburse aloan. Where applicable, we alsoextend loanswithenvironmental Only whenaproject hasbeenapproved andcompliance withenvironmental protection standards ments thatare subject to anenvironmental impact assessment: credit export with only Under Germanlaw, theapproving authority must take thefollowing aspects into account for invest finance project provide we ­insurance (e.g. from Euler Hermes)thatincludesanextensive review countries, of environmental standards. non-OECD In apply. ­standards and of Western countries the ­Central Europe andNorthAmerica, where particularlystrict statutory in environmental and­ finance project provides mainly LBBW Germany, to addition In the designof globallyfinanced projects andprograms. Group withtheaimof ensuringthatminimumenvironmental andsocialstandards are observed in of theInternational Finance Corporation (IFC). TheIFC standards were developed by theWorld Bank (OECD =Organisation for Economic Co-operation andDevelopment) andthePerformance Standards ­Alongside theUNGlobalCompact,theseincludeOECD Guidelinesfor MultinationalEnterprises standards andvoluntary commitments for itsinternal guidelinesandoperating procedures. internationally to adheres LBBW provisions, and requirementsstatutory to addition In ­financing business. the “Guidelines for Lending” contained therein form thebasisfor thesustainability standards in O Sustainability standards infinancingbusiness • • • • • • • ur “PrinciplesandGuidelinesfor ImplementingLBBW's Sustainability Policy andGoals”

Change inorganic substance, soilerosion, compaction sealing, Land usage Impact onflora and fauna Impact onindividualsandthepopulation cultural landscapes Impact onhistorically, architecturally, orarchaeologically important sites andstructures andon Hydromorphological changes, changes inthequantityorqualityof water Changes to theclimate, e.g. dueto greenhouse gas emissions, changes to themicroclimate atthelocation ­Development ­recognized social - September to December 2018. ­customers. ­introduction program), International Unionfor Conservation of ­ the international Ramsar Convention onwetlands, ­ project islocated inaspeciallyprotected area (e.g. UNESCO World Heritage Sites, sites covered by using theprotected planet database (www.protectedplanet.net) to ­ the Switzerland), Austria, (Germany, region DACH the outside projects governance, itisnolonger permitted to dobusiness withtherespective ­ due to extensive violationsof therequirements for sociallyand­ model, eachquestion isanswered withgreen, yellow, orred. Ifthisresults inared ­ a Using governance.corporate responsible ecologically and socially for framework a as was ­specific review office processes). front The review by criteria is borrowers are that finance based of project and onexport review the (excluding business ten sustainabilitycustomer corporate principles for ­introduced of the the for UN process uniform a 2019, early In Traffic light review and “ISS ESG”, aswell astheESGduediligence ­ ­sustainability team refers to databases from renowned ­ taken into account inthelendingdecision.Whenitcomes to ­ If so, thecorresponding compliance/sustainability analyses are includedintheloanapplication and ­advisor responsible for thetransaction initiallydecides­ and/or compliance the by analysis corresponding a Following destruction, speciesandbiodiversity conservation, climate change, workers' rights, andhumanrights). ­sustainability risks (including areas suchasarms,genetic nuclearpower, engineering, ­ moneyterms of in compliance (including identified risks anomalies any and If oneof theseprotected areas isinvolved, the­ all of findings the relationship, business the of purpose and nature the team. A standardized application form is used to record information including all the persons involved, rules or review criteria, an opinion may be requested from Group Compliance and/or the on internal lendingrules.Inthecase of uncertainty ortopics for whichthere are not yet any­ Financial advisors examine loanapplications interms of compliance andsustainability risks based Review processes for corporate andproject finance We have implemented thefollowing review processes: ­In the previous year, a total of 146 companies were reviewed during the pilot phase from in April 2019, the traffic been light reviewthe has 2019, April ­in information ­ Nature (IUCN)Category Ia,borIIprotected ­ sustainability team must beconsulted. UNESCO MAB(UNESCO's “ManandtheBiosphere” sustainability agencies such as“imug|rating” whether thetransaction shouldbepursued. service “RepRisk”. performed for more than 650 corporate650 ­performedthan formore approving sustainability aspects, the utiaiiy xet, h financial the experts, ­sustainability ecologically ­ examine whether therespective review process also includes also process ­review ­research company. For investment laundering and fraud)or and ­laundering responsible ­ conducted to date, to ­conducted (negative) score ­Global environmental ­sustainability traffic light ­traffic subject to ­subject corporate ­Compact Since its binding areas).

Landesbank Baden-Württemberg 2019 Sustainability Report 93 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 94 Responsibility and commitment ➔ Customers LBBW isalsocommitted to theUnited NationsGuidingPrinciplesonBusiness andHumanRights. Declaration of HumanRights. amemberofAs theinternational community, LBBW iscommitted to theUnited Nations'Universal included ontheCITESlists to becritical. List of endangered species.LBBW alsoconsiders trading intheendangered plantandanimalspecies negative impacts onpopulationsornumbers of plantandanimalspeciesincludedontheIUCN Red With regard to wildlife and species protection, we expect ourcustomers andtheir suppliers to avoid Human rights andworkers' rights finance, project finance, exportfinance): corporate general (including financing of types all for apply guidelines cross-industryfollowing The Cross-industry guidelines ­convictions. ­strategies, and plans of the LBBW Group. Human rights are an integral part of our values and rights. Thisapplies to alltypesof business, transactions, projects, products, operating decisions, We endeavor not to work withanycompany orinstitution known to disregard basichuman tation of thefollowing Sustainable Development Goals: ­areas are essential for sustainable development and make a significant contribution to the implemen- Ramsar Convention) andendangered species(e.g. theWashington Convention (CITES)).­ the to according wetlands Sites, Heritage World UNESCO areas, protected IUCN (HCVA), Areas Value This is particularly true of projects in areas with international protected status (e.g. High ­ ­projects thatclearlyleadto large-scale destruction of biodiversity without addingecological ­ All companies directly or indirectly use services that affect biodiversity. LBBW does not support Biodiversity principles andspecies protection ­affected landusers. land rights, we expect thisto take place withthefree, priorandinformed consent (FPIC)of the that way a in resources natural extract finance we which or investwe which in companies If end, we have defined specificindustry guidelines forourlendingbusiness (seepage 95 etseq.). aware thatcertain sectors could involve greater riskpotential interms of humanrights abuses. To this ­aspects of human rights into ourinvestment andcredit process to thegreatest possible extent. We are

Inorder to identify, prevent andreduce humanrights violations,we have integrated

Conservation Protected ­affects value. merely asabroker between theimporter andexporter. documentary transactions (e.g. letters of credit, guarantees, andsureties) inwhichtheBankfunctions undergone an environmental/social review. Also excluded from the review process are high-volume federal government oranother state export credit agency inanOECD country, asthesehave already subject to a careful process to weigh the risks. One exception is financing that includes considered critical andoperating inraw materials extraction, import/export, orprimary­ Financing projects involving companies outside Germanyinanindustry-country combination thatis financing subject to asustainability review. international in risks sustainability paper, crudeoil/natural mining, incertain gas, andbioenergy) at-risk countries for possible theseindustries are assess and analyze, ­arrangements, loanapplications inindustries considered particularlyrelevant inthisregard (wood/ identify, to order In Industry-country risks relating to wood/paper, crudeoil/natural mining, gas, andbioenergy Industry-specific guidelines occupied areas inaccordance withinternational humanitarian law. the for ­participation, andself-administration. Inthisrespect, LBBW places particularemphasisontheneed ­(territory), legal equality including the right to culturally adapted education and healthcare, political ­processes. Thisappliesinparticularto theareas of land,natural resources andenvironment affected groups andto actively involve thegroups intheirdecision-makingand­ ­(“Indigenous Peoples”). We expect themto obtain free, prior, andinformed consent (FPIC)from the customers to act inaccordance withthegoals andrequirements of IFC Performance ­ Where we identify potential impacts on indigenous peoples in project finance, we expect our ­Performance Standard PS5(“Land Acquisition andInvoluntary Resettlement”). ­national laws andregulations and–where applicable –withInternational Finance Corporation (IFC) If resettlement isunavoidable, we expect ourcorporate customers to act inaccordance with region, andlandrights. ­account factors suchascompliance withhumanrights, theecological consequences for theaffected and theircultural heritage. Where business hasanimpact onindigenous peoples,LBBW takes into their ancestors. In our project finance, we therefore take particular care to protect indigenous We are aware of theneedto protect indigenous populationgroups andtheirconnection to thelandof Indigenous peoples Protocol. ­Nagoya in theUnited NationsConvention onBiological Diversity andtheassociated BonnGuidelinesand ­engineering only take place in accordance with the approval andprocessing requirements set out fulfilled. being ProtocolLBBW alsoplaces emphasisonensuringthatactivities inthearea of genetic material and­ Cartagena the of requirements the of all to subject and country ­importing the of approval the with traded or produced be only should organisms modified genetically Living companies it finances or invests in to refrain from establishing or supporting settlements in settlements supporting or establishing from refrain to in invests or finances it ­companies implementation ­security by the Standard PS7 processing are ­corporate ­peoples genetic ­

Landesbank Baden-Württemberg 2019 Sustainability Report 95 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 96 Responsibility and commitment ➔ Customers change. Burningcoal isoneof themainsources of theCO of causes significant most the of one is gas and oil, coal,like fossilfuels of use immense The The aforementioned industries are reviewed regarding thefollowing issues inparticular: 5 • • Coal miningandcoal-fired power plants 4 3 2 1 LBBW doesnot finance anyprojects thatare identifiable tousinGermanyorabroad by power plants: coal-fired and mining coal of financing the for place in are Accordingly, guidelines ­warming. specific • • • • • • • • • Wood/paper of large quantities of excess rock and soil, and the release of heavy metals, which can contaminate rivers and groundwater. The resulting dust emissions are also classified as classified also are emissions dust resulting groundwater. carcinogenic.The and rivers contaminate ­potentially can which metals, heavy of release the and soil, and rock excess of quantities large of This ischeaperthansurface miningbut leadsto thedestruction of thearea's landscape andecosystems. Other negative consequences of thismethod includethe­ Mountaintop removal mining(MTR)describesaspecialform of miningusedincoal extraction, inwhichthemountaintop isremoved to provide access to thehard coal seams­ International Council onMining&Metals. Coal miningmethod usingexplosives to remove mountaintops. endangeredE.g. flora and fauna inaccordance withthe Washington Convention onInternational Trade inEndangered Species of Wild Fauna andFlora (CITES). wetlands according to theinternational Ramsar Convention onwetlands. InternationalE.g. Unionfor Conservation of Nature (IUCN)protected areas; United NationsEducational, Scientificand Cultural Organization (UNESCO) World Heritage Sites;

(ILO core laborstandards) Fair working conditions servation, erosion protection) duction processes (e.g. soilcon- Environmentally friendlypro- Existing landuserights rights Human Rehabilitation/recultivation management Waste Endangerment of biodiversity Activities inprotected areas of virginforests logging/deforestation Illegal mining companies in connection with utilities inconnection with • • • •

is beingimproved oremissions are beingreduced. the expansion of the capacity of coal-fired power plants unless effectiveness or fuel efficiency the construction of new coal-fired power plants(of anykind), particularly destructive miningmethods suchasmountaintop removal mining(MTR) involves technical modernization to improve theenvironmental orsocialconditions onsite, the construction of new orexpansion of existing coal mines(of anykind),unless theproject

1

2 Mining • • • • • • • • • •

Compliance withICMM (ILO core laborstandards) Fair working conditions Existing landuserights rights Human removal Mountaintop Activities inprotected areas facilities ­production of Decommissioning management Waste consumption Land prevention Accident (in surface mining) principles

3 4

1 Crude oil/natural gas • • • • • • • •

(ILO core laborstandards) Fair working conditions Existing landuserights rights Human Activities inprotected areas of ­ tar sands intheprovince In Canada: extraction of facilities ­production of Decommissioning management Waste prevention Accident Alberta (surface mining) 2 emissions thatcontribute to global 1 Bioenergy • • • • • • • • •

(ILO core laborstandards) Fair working conditions Existing landuserights rights Human management Waste plants Use of genetically modified Handling of chemicals Endangerment of biodiversity Activities inprotected areas of food production) (e.g. through thedisplacement directly orindirectly forests orwetlands, either Changes inlanduseof virgin 5.

accumulation ­climate below. 1 2 Nuclear power general corporate financing to companies that clearly perform mountaintop removal bridging technology for acertain timeinorder to maintain thesecurityof supply. We donot ­ the transition to renewable energies.We are aware thatelectricity generated from coal willremain a promoting of aim the with suppliers energy support we financing, corporate general our of part As is prohibited to theextent thatthisisidentifiable to us. removal, mountaintop as such methods, mining destructive particularly involving financing Export Otherwise, financingisonlypossible if 1 • • • new nuclear of construction the to related ­power plantsorexpansion of existing nuclearcapacity identifiably inother countries. Thismeans: are that projects support not does LBBW ­construction of new nuclear power plants. There is therefore no need for rules regarding this as a bridging technology. In Germany, the decision to end the use of nuclear power precludes the ­LBBW's business practices are alignedwiththeprevailing political view ontheuseof nuclear­ accidents occur, andtheunsolved problem of how to permanentlydisposeof radioactive waste. Nuclear power is extremely risky due to the incalculable health risks of radiation, especially when • • • • only possible if is Germany outside coal-fired plants or power mines coal services to and goods for financing Export OECD = Organisation für Economic Co-operation and Development

if certain thresholds regarding thetotal investment amount ornominalvolume are exceeded. No financing or security for goods or services is provided for nuclear power plants outside new nuclearpower plantsorexpansion of existing nuclearcapacity inother countries. No financing is provided for specific projects by energy suppliers that promote the construction of 25 %. than outside Germanyiftheshare of nuclearpower legally attributable to total plantoutput isgreater power operate plants nuclear that suppliers General providedcorporate not energy is to financing are reduced orcoal-fired power plantsare dismantled. effectiveness/fuelthe efficiency of coal-fired increased substantially, is power plants emissions or modernization orcoal minesare dismantled,or the environmental orsocialconditions of coal minesare demonstrably improved through ­ certain thresholds withregard to thetotal investment amountornominalvolume are not exceeded. provided by anOECD ECA cover (export insurance from agovernmental export credit agency, e.g. Euler Hermes)­ 1 memberstate or ­activities ­Germany technical ­scenario. ­directly. provide power is

Landesbank Baden-Württemberg 2019 Sustainability Report 97 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 98 Responsibility and commitment ➔ Customers This means: not comply withtheseenvironmental andsafety standards andhealthprotection measures. do that companies mining uranium of suppliers to finance export providing from as well as mining, hence refrains from engaging in business activities that we can identifyas directly involving uranium and measures, protection health and standards safety and environmental sufficient andseriously without mining people of thehealth endangers ­pollutes theenvironment intheentire region surrounding themines.LBBW doesnot supporturanium therefore and exposure radiation significant with Uranium mining(for nuclearpower plants,nuclearweapons oreven medical purposes)is­ Uranium mining When providing project finance intheminingindustry, LBBW generally takes into account a whole. The aforementioned rulesoncritical industry-country combinations applyto theminingindustry as Mining to guarantee plantsafety (technical modernization projects). intended investments or plants power nuclear decommissioning for financing on limits no are There 1 • • • • • • • • 2 OECD =Organisation fürEconomic Co-operation andDevelopment ­excess rock andsoil,therelease of heavy metals, whichcan contaminate rivers and groundwater. Theresulting dust emissions are alsoclassified aspotentially carcinogenic. surface miningbut leadsto thedestruction of thearea’s landscape andecosystems. Other negative consequences of thismethod includetheaccumulation of large quantities of Mountaintop removal mining(MTR)describesaspecialform of mining inwhichthemountaintop isremoved to provide access to thehard coal seamsbelow. Thisischeaperthan 

labor standards, IFC Safety Guidelines,Voluntary PrinciplesonSecurityandHumanRights). ment Series)18001,ICMM(International Council onMining&Metals), UNGlobalCompact,ILO core with healthandsafety standards (e.g. ISO14001, OHSAS (Occupational Health andSafety Assess land restoration measures. with International Labour Organization (ILO) standards, compliance withminimumstandards of occupational safety andworking conditions inaccordance compliance withhumanrights, particularlytherights of local communities andindigenous peoples, the protection of HighConservation Value Areas andUNESCO World Heritage Sites, ­introduction of toxic chemicals, processing of excess rock andsoil), the way inwhichthecompany operates themine(e.g. environmental pollution through the ­submitted (see above). certain nominalvolume ifnorelevant proof of compliance withhealthandsafety standards is a exceed that mining uranium in used services or goods for provided is security or financing No with healthandsafety standards issubmitted (seeabove). of proof relevant no if projects mining uranium specific for provided is financing No least 1 General corporate financing is not provided to companies that engage in uranium mining, % of theirrevenue from suchactivities, anddonot provide therelevant proof of ­ compliance ­compliance ­generate at associated - • • • • Arms toforeign comes it when combination industry-country ­financing projects (see table onpage 96). acritical as defined also is high pressure, e.g. to extract shale gas). The extraction of tar sands in the province of sands, oil drilling in the Amazon rainforest, or fracking (crude oil/natural gas drilling operations tar and oil ofextraction the drilling), (ArcticArctic the in gas natural or oil crude for drilling as such gas (upstream). This means it is not involved in financing controversial crude oil extraction LBBWprojectnotengagein does finance in the with connection extraction production and and oil of Crude oil/natural gas

ponents (e.g. plutonium, highlyenricheduranium, mustard gas) orenrichmentfacilities. ­ these of production the to ­systems relating with companies that transactionswe can identify as being any involved in the production into of WMDs, key com enter- not do We ­environment. (WMDs), destruction the and population civilian mass the to threat significant a of pose they because internationally banned weapons are as known also weapons, chemical and biological, Nuclear, member NATOstates. or EU of case the in only possible is Germany outside facilities military to goods such of exports for security and Financing ammunition). guns, e.g. lists, exportBAFA toaccording There are strict standards and limits for the export of other arms (not falling under the German the if even bombs), ­Federal tanks, Office for Economic Affairs andExport Control (BAFA) warships, hasapproved their export. e.g. (KrWaffKontrG), Act Control War of Weapons notLBBWfinance the does export of weapons of (according war the supplement to the to weapon systems. production, maintenance, development, the on the basis of ISS ESG's controversial weapons into the automated embargo monitoring system of the Bank. The also is and LBBW)by owned majority subsidiaries all and (Bank) LBBW (= Group­entire the throughout applies that list exclusion company a with level operational the at this ensure We areprohibitedwhich mines, byanti-personnelinternational clusterand/or munitions LBBW does not enter into any business relationships with companies involved in the • • •

No financing or security is provided for exports of WMDs (see exclusion of weapons exports). revenue from WMDs. 5 than more generating companies to provided not is financing corporate General components, orenrichment facilities. key WMDs, of production the with connected projects specific for provided is financing No ­storage, ­research. Among etn, n tasotto of transportation and ­testing, ­other things, this screening ­exclusion list is ­updated ­Alberta ­KrWaffKontrG ­production ­controversial ­conventions. This means: ­companies' ­integrated % of their of % ­processes ­regularly ­(Canada) ­includes ­German ­weapon ­under of of

Landesbank Baden-Württemberg 2019 Sustainability Report 99 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 100 Responsibility and commitment ➔ Customers ­Sommer, aconsulting firmspecializinginthe construction and real estate sector. at thebranches outside Germany. Thetraining concept was developed withthesupportof Drees & on trained were Mainz and green Mannheim bond-eligible property financing. Karlsruhe, During 2019, this was Stuttgart, expanded to include customer in area business Estate Real the from Between November 2018andJanuary2019,atotal of 120customer advisors andriskmanagers customer advisors. corporate mostly employees, 220 than more of participation the with finance of forms ­sustainable by extensive information material ontheintranet. Itkicked off withalive webinar ongreen and ­topic of sustainable finance through various communicative measures throughout 2020, The “Green Finance” salescampaign was launchedin late 2019withtheaimof intensifying the ­Customers segmentintheform of a live webinar. inour and product developments beingpresented to 120 employees93) andmanagers from theCorporate page (see review light traffic ­lending business. The monthly market call also focused on sustainable newfinance, with the latest the on training webinar-based completed ­segment In 2019,around 175corporate customer advisors andmanagers from theCorporate ­ on theLBBW experts office back and advisors ­intranet. financial Information onchanges isalsoprovided ontheintranet andinnewsletters. all to available are These rules. lending All the sustainability principles and review processes for financing are set out in the Bank's Training andcommunication LBBW doesnot provide financing for controversial forms of gambling. Gambling ucts, theoperation of brothels, theprovision of sex tourism andpornographic telephone hotlines, etc. prod- pornographic of sale and production the with connection in financing provide not does LBBW Pornography ­projects withproducts suchasthe“Stuttgart climate loan”. of the implementation the targeted EU and market finance sustainable the of development the for company's sustainable business performance. Inthis way, we are delivering additionalimpetus since 2019andgreen Schuldscheinssince 2017,theconditions of whichare linked to the­ ­To this end, we have offered special loans (“positive incentive loans” or “sustainability-linked loans”) Weinnovativeuse instruments encouragefinancing to more business do companies to Sustainable financingproducts action plan for sustainable finance. We also support retail customers in realizing sustainable in realizing customers retail support also We finance. sustainable for plan ­action ­accompanied ­sustainably. ­mandatory respective Customers ­advisors ­market • • ­financing solutions off theground. Particular highlights in2019included: effective get and discussions constructive initiate to order in events own our organizing as well as able energies.In2019,we were represented atnumerous paneldiscussions, conferences andforums We regularly participate inpublicevents withaview to actively drivingthetransition to renew options. we work withexternal partners to calculate thesavingspotential anddetermine theavailable ­ regard, this In request. on providers service efficiency energy to customers corporate our refer We workshops andwebinars andwork together to designnew financingsolutions. developers. We ensure thatourteam isupdated onenergy-related topics through internal industry wide basisinorder to ensure closeintegration between research, sales,riskmanagement, and­ ­expertise onthelatest challenges inthetransformation process industry intheenergy onaBank- Headed by asector specialist for energy, utilities, andwaste disposal,we have consolidated our parks to energy-efficient designinthehome. We supportourcustomers inalltheirprojects, whether large orsmall–from sustainable industrial aim is to provide stable, reliable financing solutions in order to help the energy transition to succeed. companies, andprivate householdsbut alsowhenitcomes to thepenetration of electric mobility. Our of powerful storage technologies is essential not only in terms of supply to energy municipalities, improvetoefficiency. developmenthelping aremetering The smart controlusing demand intelligent sustainable solutions is being accelerated by the onset of digitalization: smart grid infrastructures and private householdsswitching to sustainable generation technologies. The intelligent networking of and facilities production companies, municipal more and more seeing now are we first, at ­energies a ­ photovoltaic for systems and turbines wind as such projects energy renewable financing been have The transition to renewable energiesisakey lever aswe move toward asustainable future. We Financing theenergytransition ­“Responsible Consumption and Production”, andGoal13:“Climate Action”. ­“Industry, Innovation andInfrastructure”,Goal 9: Goal11:“Sustainable CitiesandCommunities”,Growth”, Goal12: Economic and Work “Decent 8: Goal Energy”, Clean “Affordableand 7: Goal particular: in Development Goals Sustainable UN following the products contribute to financing sustainable Our

number of years. Whereas itwas suppliers mainlythelarge thatinvested energy inrenewable ­society discussed the opportunitiesandrisks of structural change. on1 October 2019. Following a keynote Leipzig presentation, experts from in politics, business, research andoffices LBBW's at held Turm” im “Talk panel discussion top-class the of topic the Talk imTurm: “Changes Industry inthe Energy –TheChallenges of Transition” theEnergy was uue ilg Ognzd y BW te uue ilg nild Kiaadl n de deutsche die und solutions withaparticularview to theState of Baden-Württemberg. “Klimawandel entitled dialog discussed thesocietal challenges involved transition intheenergy andhighlighted future- future­ the LBBW, ­Energiewende” by (Climate Change andtheTransition to Renewable EnergiesinGermany)on17May2019 Organized dialog: Future oriented product funding - ­

Landesbank Baden-Württemberg 2019 Sustainability Report 101 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 102 Responsibility and commitment ➔ Customers strategy. The better theperformance, themore favorable thefinancing conditions. correspondingto the company-specific or of ratingagencies part targets as level of development. The conditions are linked either to the ratings issued by renowned incentivize sustainable business as a means of bringing the market for sustainable finance to its next sustainability component, known as“positive incentive loans”or“sustainability-linked loans”. They Sustainable business activity shouldbe rewarded. Thisistheprinciple behindLBBW's loanswith a Positive incentive loans work ­ ­sustainable financing instruments, an area in which LBBW already played a leading role in 2019, and ­This allows usto provide ourcorporate customers withourexpertise intransactions ­ the value chainintheelectricity market: The diagram below illustrates thelarge numberof players currently active atthevarious stages of complex political, economic, andsocialchallenges involved can onlyberesolved by working ­ We intend to continue to make anactive contribution to thetransition to renewable energies,asthe was ­sustainable financing solutions was consolidated in the “Sustainability Advisory” specialist unit, which In order to provide customers witheven more targeted advice inthefuture, theexpertise on Sustainability Advisory Corporate Customers Cogen =Cogeneration Decentralized RG =Decentralized renewable generation IPP =Independentpower producers, i.e. operators of power plantsandother power generation facilities without theirown power grid Energy industry |electricity sector Customer group Energy serviceprovider Distribution companies Grid operator Municipal utilitie Trading companies IPPs Project developers Energy suppliers Suppliers sector Electricity established on 1 March 2020. The unit combines sustainability with LBBW's with sustainability combines unit The 2020. March 1 on ­established together to create additionalsustainable financing solutions. value chai s Stage of s n s

renewable generatio Conventional generatio Convent Centralized generatio i n ona n l Renewabl generatio n Electricity trading& risk management n e Storage Transmission Retailers grid s This stageofthevaluechainisnotservedbyallcompaniesinenergysector A ll companiesintheenergysectorareactiveatthisstageofvaluechain Transmission Distributio Storag grid grid s s e n Decentralized Distributio RG /Cogen grid s ­borrower'ssustainability n Marketin Marketin ­financing g g ­sustainability Serv Services involving ­products. together. ices oa population. ­local the with together Canada in projects energy several realized already has which Windenergie, WEB Saint JohnRiver, andSWEB Development, asubsidiaryof theAustrian public ­ First Nation, the descendants of the North American Maliseet people who projectenergy intheCanadian province of New Brunswick. Theproject was developed by Woodstock wind MW 18 an Energy, Wisokolamson of operation and construction the financed we example, for of renewable energies but increasingly also in the field of sustainable infrastructure solutions. In 2019, We have been financing national and international projects for a number of years, mainly in the area Sustainable project finance finance green buildingsandcleantransportation. LBBW also accompanied another green Schuldschein transaction for Volkswagen Immobilien GmbH to ­Dr. h.c.F. Ing. Porsche AG's investment initsall-electric sportscar model“Taycan”. Together withING, green Schuldschein to date, encompassing a volume of EUR 1,000 million, for the financing of financing the for million, 1,000 EUR of volume a encompassing date, to Schuldschein green ­conditions are linked to CO In April,Stadtwerke Münchenwas granted acredit facility for EUR500millionwhoseinterest the agency ISS ESG(formerly ISS oekom). of thecommission for thesurety (guarantee/surety) dependsonthesustainability rating issued by facility with the technology group Voith that contains a cash tranche and a surety tranche. The amount Wegranted first late January, positivethe In incentive 2019. in loans LBBW bilateral agreed a able projects, such as for the filter specialist Mann + Hummel GmbH & Co. KG and VW Immobilien VW and KG GmbH. Co. & We achieved anotable landmarkin2019:LBBW ledthelargest GmbH transaction involving a Hummel + Mann specialist filter the for as such projects, able LBBW hasalready accompanied numerous green Schuldscheinswithproceeds to beusedinsustain- by LBBW, BNPParibas, andUniCredit. donate theamountof the interest saved asaresult. Thetransaction was arranged inNovember 2019 to sustainability linked also ­performance. are The annual fibers, rating is issued cellulose by the wood-basedagency MSCI. If ofits rating improves, producer Lenzing intends leading to the AG, Lenzing A Schuldscheinplusregistered bondswithatotal volume of EUR500millionfor theAustrian ­ conditions. ­criteria like carbon dioxide emissions and water consumption, as well as aspects such as fair working ­company’s ­marketed EUR200millionintheform of sustainable tranches whoseinterest rate istiedto the company tofirst applythisprincipleto aSchuldschein.InJune2019,LBBW andINGarranged and world's the is AG Dürr company engineering plant and mechanical The mechanisms. ­incentive In additionto bilateral andsyndicated loans,sustainable Schuldscheinscan belinked to positive Sustainable/green Schuldscheins carbon-neutral by 2040. whole of Munich. The utility company also intends to make its coverage of demand for district Stadtwerke Münchenintends to generate enoughgreen electricity from itsown plantsto supplythe Stadtwerke Münchenpays alower interest rate. LBBW isoneof four lendingbanks. By 2025, ­sustainability rating. The rating issued by the EcoVadis agency takes account of ecological 2 savings: If production of green electricity reaches the defined the reaches electricity green of production If savings: ­traditionally lived along the participation company company ­heating ­targets, ­credit

Landesbank Baden-Württemberg 2019 Sustainability Report 103 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 104 Responsibility and commitment ➔ Customers banks with its products and services – such as sustainable finance products – via its meta business after business meta its via – products finance sustainable as such – services and products its with banks sustainability a analysis viaLBBW license Research. Interms of theirbusiness withcorporate ­ can banks savings analysis, financial LBBW's to addition In management. asset sustainable and bonds, sustainability coupon stepped index, sustainable a on based certificates as such banks, such as their retail customer business, LBBW offers the sustainable mutual fund as well as products sustainabilityownthe realizestandards.areasoftobusiness their other them allowFor the that customized provides and screening portfolio sustainable with banks savings supports LBBW bonds, andsustainable mutual fundsaswell asspecialinvestment fundsissued by LBBW. related products andservices. Interms of theirown investments, thisincludesthesocialbonds,green with savingsbanks associations. LBBW therefore focuses onsavingsbanks withitssustainability-­ ­topics, such as a “green cover pool” for the issue of green Pfandbriefs, are addressed in cooperation and strategically integrate sustainability topics into their business and operating processes. New to Sparkassen-Finanzgruppe the institutionsofway, member this the In activelyLBBWhelps arranged attherequest of individualsavingsbanks. ratings, sustainable retail products, sustainability inlendingbusiness, andsustainability reporting are for sustainable products intheareas of asset management Workshops andlending. onsustainability experts LBBW by topic the with familiarized are (“Sparkassen-Finanzgruppe”) Group Finance Banks ­committees. At theassociations' sustainability conferences, multipliers from theGermanSavings Banks of cooperation between LBBW andsavingsbanks. LBBW actively supportstheGermanSavings Long-standing expertise and a strategic business focus on sustainability are opening up new forms Sustainability for savingsbanks from theStuttgart Advisory Energy Center (EBZ). respective the ­customers can alsoapplyfor asubsidyfrom theCityof Stuttgart of andobtain aprofessional evaluation amount the in pre-financed is that Südwest LBS from plan savings energy-efficient more replacement, window insulation, ­technologies, roof andsolarpower generation. Theclimate loanisbasedonan“Express” ­ and wall as such measures efficiency standards in order to reduce their CO their to reduce order in standards efficiency BW-Bank assists homeowners inStuttgart whowishto bringtheirhomesinlinewiththelatest ­ Stuttgart climate loan ­cover modernization additionalcapital requirements, includingsmallloanamounts. future for capital accumulate ­activities viaahomeloansavingsplan,allowing themto obtain afavorably priced homeloanto to customers helps Modernisierungsvorsorge” “BW loan” isavailable for owner-occupied properties inthestate capital (seebelow). leased properties atlow interest rates andwithout unnecessary bureaucracy. The “Stuttgart climate vehicle. Thisenablesretail customers to carry out energy-saving renovations inowner-occupied or “small-scale loans”, with whichare anticipatory loanscombined withanLBShomeloansavingsplanastherepayment 50,000 EUR to up projects smaller of financing straightforward the facilitate We work (DEN). and ofbuildings modernization ­arrange therelated advisoryservices energy Advisors' inpartnership withtheGermanEnergy Net and renovation energy-efficient the in customers retail assist We Energy-efficient renovation of residential properties Retail customers Association (DSGV) and the regional savings banks associations as a member of their expert their of member a as associations banks savings regional the and (DSGV) ­Association 2 emissions. The“Stuttgart climate loan”­ customers, LBBW provides savings tariff homeloan contract. Our ­contract. ­structures supports ­heating savings ­savings ­control energy energy - individual loanagreements. manner. Anew business volume of EUR255 million was approved in2019,comprising around 2,225 and ­ 58 ­digitalizationthrough ownits distribution marketa banks,holding savings the and channels share of LBBW isthemarket leaderinBaden-Württemberg whenitcomes to promoting innovation and banks organization received more than50 EUR 1,489millionandsome1,361individualloanagreements. InLBBW's core markets, thesavings efficiency, energy and the savingsbanks remained atahighlevel asof 30December 2019withanew business volume of environmental (including for or channels distribution own its purposes via LBBW by arranged defenses) flood and ecological energies, ­renewable for loans commercial The Baden-Württemberg, Rhineland-Palatinate, andSaxony. as well asthesavingsbanks, meaningitremains theclearmarket leaderinitscore markets of channels distribution own its via measures efficiency energy private for agreements loan ­separate In 2019,LBBW approved anew business volume of EUR1,370millioncomprising around 8,525 hoods. development urban projects projectsfinancing and in ­participateto restructure neighbor residential also We housing. affordable and energy-efficient of availability the to contribute to us enables this programs. Inaddition,we assume riskwhenpassing through theapproved KfW funds.Indirectly, We helpresidential real estate companies andprivate investors to applyto KfW development loan Residential development loanprograms generated withdevelopment loansinthearea of efficiency. energy able subsidiesandapplyfor development loans.In2019,themajorityof new business was again from government development loanprograms, e.g. KfW. We helpourcustomers to explore theavail- subsidies financing obtain can projects corporate and private sustainable conditions, certain Under Development loans ­institutions suchasKreditanstalt fürWiederaufbau (KfW). from loans development through financed are customers bank savings by investments Many bank. conducting asustainability consultation withtherespective customer inconjunction withthesavings Development loansfor private energy-efficiency measures Arranged by LBBW directly andviasavingsbanks New business volume (EURmillion) Commercial development loans of whichfor promoting innovation anddigitalization %. The newly launched programs for financing new and sustainable business models and digital and models business sustainable and new financing for programs launched newly The %. innovative investment projects were placed withinvestors quickly, successfully, andinatargeted % of thetotal fundingvolume in2019. 30.12.2019 1,370 1,489 255 30.12.2018 1,208 1,288 955 30.12.2017 1,413 1,349 634 -

Landesbank Baden-Württemberg 2019 Sustainability Report 105 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 106 Responsibility and commitment ➔ Customers ­allows us to determine a This sustainability ranking, ranging factors. from governance) “highly sustainable” to social, “not (environment, ESG incorporate also that flows) cash and property, location, (market, categories four in criteria account into take we value, estate real assessing When and resource efficiency programs for business and corporate customers. Energy-­ Refurbishment, development loan programs from Landeskreditbank Baden-Württemberg (L-Bank) Energy-efficient such as the energy the including efficient Construction, Solar and Power Generation programs. addition, In we offer (KfW), the corresponding German the Corporation by offered programs Loan grant the ­Reconstruction is point focal One of public-­ consultations. during theavailability grants about sector properties ofcommercial owners the inform specifically also We bond program for fundingenergy-efficient commercial real estate since 2017(seepage 83 et seq.). green own its had has LBBW purposes. funding for demand growing seeing are bonds Green business. There is a growing focus on the financing of sustainable projects, including in the commercial real Commercial real estate business LBBW didnot finance anyprojects inthearea of hydroelectricity/dams in2019. additional gas projects were financed onaselective basisinthepast year. energies, conventional of area the In projects. photovoltaic financing to comes it when ­Netherlands are currently There farms. wind large-scale no extremely financing in involved is LBBW Sweden, In 9 around by declined Germany in projects renewables of proportion the whereas year, the previous in than financed were Germany excluding Europe in projects energy renewable more 2019, In 1 Project finance by region andindustry 2019 of project finance sector intheenergy was issued for renewable energies. of balance sheet assets. The third-largest sector was infrastructure and logistics projects.2019, theshare Around 80 In energies. of renewable area ­attributable to these projectsthe was 52.4 in is LBBW by financed project second Every Project finance ofremaining the volume quantifies broadly and ­capital after collateral isdeducted. financing of scope the on exposure information Net ­provides sectors. industrial and goods, consumer retail, automotive, the in exposure of levels the has LBBW seq.), et 61 page Report, Annual 2019 (see sectorexposurebynet of terms In Data onsustainable finance (As of(As 31Dec.2019) in EUR ­balance sheet assets Project finance USA/Canada Germany Europe excl. Germany Total Other Renewable energies:wind,solar/photovoltaic, biogas, geothermal suitable spaces for such major projects in Germany. LBBW is currently the market leader in the in leader market the currently is LBBW Germany. in projects major such for spaces ­suitable

1,444,939,458 2,458,156,971 914,637,196 Renewable 81,338,701 17,241,616 energies 1 192,283,722 229,245,371 446,655,615 23,202,272 1,924,250 ­energies Conven tional tional %. Public-private partnerships account for more than a quarter - 276,349,892 342,623,869 63,171,354 grids, and structure, pipelines 3,102,622 logistics, Infra- 0 46,765,591 46,765,591 materials industry Raw 0 0 0

­partnerships 1,302,429,581 462,608,066 839,821,516 private Public- 0 0 24,431,305 67,150,197 95,344,008 3,762,506 Other 0 ­sustainable”. 1,972,643,128 2,331,250,870 4,691,975,634 343,875,242 44,206,394 ­highest ­estate Total %. %

Kundinnen und Kunden Kundinnen Kundinnen und Kunden Kundinnen

Bilanzaktiva Projektfinanzierungen nach Region

Kundinnen und Kunden Kundinnen Bilanzaktiva Projektfinanzierungen nach Region

➔ BilanzaktivaBilanzaktiva ProjektfiProjektfinanzierung nanzierungenen nachnach RegionRegionen ➔ Kundinnen und Kunden Kundinnen Project finance balance sheet assets by region

➔ Bilanzaktiva Projektfinanzierungen nach Region

➔

As of 31 December 2019 As of 31 December 2018 Total volume: EUR 4.69 billion Total volume: EUR 4.66 billion Responsibility and commitment ➔ Customers and commitment Responsibility Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung

Germany (50 %) Germany (59 %)

Europe excl. Germany (42 %) Europe excl. Germany (33 %) USA/Canada (7 %) USA/Canada (5 %)

Other (1 %) Other (2 %)

106 106 107 106 106 106

und Kunden Kundinnen

und Kunden Kundinnen

Kundinnen und Kunden Kundinnen Bilanzaktiva Projektfinanzierungen nach Sektoren BilanzaktivaBilanzaktiva Projektfinanzierungen Projektfinanzierungen nach nach Sektoren Sektoren Kundinnen und Kunden Kundinnen ➔

➔ Kundinnen und Kunden Kundinnen ➔ Bilanzaktiva Projektfinanzierungen nach Sektoren und Kunden Kundinnen

BilanzaktivaBilanzaktivaBilanzaktiva ProjektfinanzierungenProjektfi Projektfinanzierungen nanzierungen nach nach nach Sektoren Sektoren Sektoren und Kunden Kundinnen ➔

Project finance balance sheet assets by sector und Kunden Kundinnen Bilanzaktiva Projektfinanzierungen nach Sektoren und Kunden Kundinnen ➔

➔ Bilanzaktiva Projektfinanzierungen nach Sektoren ➔ ➔ ➔

As of 31 December 2019 As of 31 December 2018

Total volume: EUR 4.69 billion Total volume: EUR 4.66 billion

Württemberg 2019 Württemberg Württemberg 2019 Württemberg - - Verantwortung und Engagement und Engagement Verantwortung Württemberg 2019 Württemberg Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Württemberg 2019 Württemberg Verantwortung und Engagement und Engagement Verantwortung - Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung andesbank Baden andesbank andesbank Baden andesbank andesbank Baden - andesbank andesbank Baden andesbank

Renewable energies (wind, solar/photovoltaic, Renewable energies (wind, solar/photovoltaic, biogas, geothermal) (52 %) biogas, geothermal) (53 %)

Conventional energies (10 %) Conventional energies (8 %)

Infrastructure, logistics, grids, and pipelines (7 %) Infrastructure, logistics, grids, and pipelines (8 %)

Commodities industry (1 %) Commodities industry (1 %) 107 107 107 107 107 107 Public-private partnerships (28 %) Public-private partnerships (26 %) 107 107 107 Other (2 %) Other (5 %) chhaltigkeitsbericht der L der chhaltigkeitsbericht chhaltigkeitsbericht der L der chhaltigkeitsbericht chhaltigkeitsbericht der L der chhaltigkeitsbericht Na chhaltigkeitsbericht der L der chhaltigkeitsbericht Na Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Na

Na

Württemberg 2019 Württemberg - Württemberg 2019 Württemberg - Württemberg 2019 Württemberg Württemberg 2019 Württemberg - - Württemberg 2019 Württemberg - Württemberg 2019 Württemberg Württemberg 2019 Württemberg - - Württemberg 2019 Württemberg Württemberg 2019 Württemberg - - andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank

Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

der L Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

der L Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

Kundinnen und Kunden Kundinnen Bilanzaktiva Projektfinanzierungen ➔ Kundinnen und Kunden Kundinnen Kundinnen und Kunden Kundinnen Erneuerbare Energien nach Regionen

BilanzaktivaBilanzaktiva Projektfinanzierungen Projektfinanzierungen ➔ ➔ Kundinnen und Kunden Kundinnen Kundinnen und Kunden Kundinnen

ErneuerErneuerbarebare Energien Energien nach nach Regionen Regionen Bilanzaktiva Projektfinanzierungen ➔ ➔ Kundinnen und Kunden Kundinnen und Kunden Kundinnen

ProjectBilanzaktiva Erneuer financebare ProjektfinanzierungenProjektfiEnergien balance nachnanzierungen sheet Regionen assets ➔ RenewableErneuerErneuerbare bare energies Energien by nach region Regionen ➔ Bilanzaktiva Projektfinanzierungen Energiesektor nach Energiearten As of 31 December 2019 As of 31 December 2018

Total volume: EUR 2.46 billion Total volume: EUR 2.45 billion Responsibility and commitment ➔ Customers and commitment Responsibility Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung

Verantwortung und Engagement und Engagement Verantwortung Verantwortung und Engagement und Engagement Verantwortung

Germany (37 %) Germany (46 %)

108 Europe excl. Germany (59 %) Europe excl. Germany (49 %)

108 108 USA/Canada (3 %) USA/Canada (2 %)

108 108 Kundinnen und Kunden Kundinnen und Kunden Kundinnen Other (1 %) Other (3 %) Kundinnen und Kunden Kundinnen 108 ➔ ➔

108 109 107

und Kunden Kundinnen

➔

BilanzaktivaBilanzaktiva Projektfinanzierungen Projektfinanzierungen ➔

EnergiesektorBilanzaktivaEnergiesektor nach Projektfinanzierungen nach Energiearten Energiearten Bilanzaktiva Projektfinanzierungen Energiesektor nach Energiearten BilanzaktivaEnergiesektor Projektfi nach Energiearten nanzierungen Project finance balance sheet assets

EnergyEnergiesektor sector bynach energy Energiearten type

As of 31 December 2019 As of 31 December 2018

Total volume: EUR 2.90 billion Total volume: EUR 2.83 billion

Württemberg 2019 Württemberg Verantwortung und Engagement und Engagement Verantwortung und Engagement Verantwortung - Verantwortung und Engagement und Engagement Verantwortung Württemberg 2019 Württemberg Württemberg 2019 Württemberg Verantwortung und Engagement und Engagement Verantwortung - - Württemberg 2019 Württemberg Württemberg 2019 Württemberg - - Württemberg 2019 Württemberg Württemberg 2019 Württemberg - andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank andesbank Baden - andesbank

Solar/photovoltaic (33 %) Solar/photovoltaic (38 %) 109 109 109

Wind (52 %) Wind (49 %) 109 Gas (10 %) Gas incl. small proportion of oil (7 %) chhaltigkeitsbericht der L der chhaltigkeitsbericht Coal (5 %) Coal (6 %) Na chhaltigkeitsbericht der L der chhaltigkeitsbericht chhaltigkeitsbericht der L der chhaltigkeitsbericht Biogas (0.01 %) Biogas (0.2 %) Na Na chhaltigkeitsbericht der L der chhaltigkeitsbericht

chhaltigkeitsbericht der L der chhaltigkeitsbericht Waste (0 %) Waste (0.3 %) Na Na chhaltigkeitsbericht der L der chhaltigkeitsbericht Geothermal (0.02 %) Geothermal (0.03 %) Na Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

Württemberg 2019 Württemberg 2019 Württemberg - - Württemberg 2019 Württemberg - Württemberg 2019 Württemberg - andesbank Baden andesbank Baden andesbank andesbank Baden andesbank andesbank Baden andesbank

Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

der L Nachhaltigkeitsbericht

Kundinnen und Kunden Kundinnen Bilanzaktiva Projektfinanzierungen Erneuerbare Energien nach Energiearten ➔ Renewables project fi nance balance sheet assets by type of energy

As of 31 December 2019 As of 31 December 2018 Total volume: EUR 2.46 billion Total volume: EUR 2.45 billion Responsibility and commitment ➔ Customers and commitment Responsibility Verantwortung und Engagement und Engagement Verantwortung

Wind (61 %) Wind (56 %)

Solar/photovoltaic (39 %) Solar/photovoltaic (44 %)

Biogas (0.01 %) Biogas (0.2 %) 109 Geothermie (0.02 %) Geothermie (0.04 %) 109

Württemberg 2019 Württemberg - andesbank Baden andesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank

Landesbank Baden-Württemberg 2019 Sustainability Report 110 Responsibility and commitment ➔ Customers The pilot study identified a slight reduction between 2018 and 2019, probably as a result ofa a as 2019, probably and 2018 ­reduction between intheaverage CO reduction a slight identified study pilot The preliminary estimate basedonthemethodology selected for thepilot study. figure does not represent the actual volume of CO for LBBW in the region of 20 million tons, with the largest share attributable to sector. the energy This more sustainable business activity through corresponding product developments. actively contribute ourexpertise to thedevelopment of corresponding market standards, and­ In thefuture, we willengage withadditionalinitiatives andmethods for calculating Scope 3­ global warming set out intheParis Agreement. on limit the achieve to order in higher significantly be to need would emissions in reduction annual often unableto quantifytheirCO However, we believe there are still anumberof challenges to beovercome. For example, SMEsare for collecting emission data atportfolio level. Furthermore, thecontrolling relevance of CO ­addressing theissue of calculating theCO banking activities inatransparent andcomprehensive mannerinthefuture, we are intensively In order to alsoallow usto determine andcontrol thedownstream climate-relevant impact of our Financed emissions The assumptions madeaspartof thepilot study result inenergy- andprocess-related CO ­receivables from andcommitments to borrowers (incl.secured portions)for 2018and2019. by investment the borrower. or MACS baseditsapproximation project onLBBW's gross exposure,financed i.e., thetotal of allopen the to attributed directly emissions 2 Scope and 1 Scope the to Category15, within they fall which ­ where 3), (Scope chain value the downstream to emissions ­financed and theWorld Business Council for Sustainable Development (WBCSD).TheGHGProtocol ­ is the“Greenhouse GasProtocol” (GHGProtocol) coordinated by theWorld Resources ­ MACS by applied basis methodical The project. pilot a the of part as calculate exposure financing its of to emissions sustainability, in specializing firm consulting a GmbH, Water & Energy MACS from accepted has direction, it this first an in a step actively As questions.LBBWaddressingis these view, thefinancialindustry isonlyjust beginning to engage withsuchmatters. our In focus. sustainability future company’s the reflect necessarily not do figures past as case, the ­remains unclear: Although they may be an indicator of a company's sustainability, this is not always includes investments by financialinstitutions. TheScope 3emissions of thelender correspond 2 emissions of many of theeconomic sectors inwhichLBBW invests. The 2 emissions, andthemarket hasyet to adopt auniform standard 2 msin o te rjcs n ivsmns e finance. we investments and projects the of emissions 2 emissions financed by LBBW, but merely an initial Institute (WRI) 2 emissions emissions, 2 promote figures assigns ­offer Additional information: www.extendshop.de. ­conditions. Stadtwerke Stuttgart offers adiscounted tariff for green electricity, natural gas, andbiogas. the “Call aBike” bicycle rental system andtheelectric scooters from stella sharingat­ alleged infringement of provisions monitored by BaFin)ortaking legal action. Customers alsohave theoption of eitherlodgingacomplaint withBaFin(iftheircomplaint relates to an board viatheonlineplatform of theEuropean Commission atwww.ec.europa.eu/odr. To resolve disputes relating to contracts concluded online, consumers mayalsorefer to anarbitration request. TheBankparticipates inthe dispute resolution proceedings. providedon be can which board,arbitration VÖB procedurethe ofof rules the in found be can ­details arbitration board inthecase of disputes relating to paymentservices andelectronic money. Further refercustomersalso Businesscan this toBank. resolveorder to the (VÖB) disputesin with Germany in Consumers mayalsorefer to the consumer arbitration board of theFederal Association of PublicBanks ­appropriate periodandwithaview to findingasolution. at anLBBW orBW-Bank branch.LBBW responds to thesecomplaints orally orinwritingwithinan can stakeholders and employees customers, All ­approach LBBW withcomplaints by telephone, by letter, follows: usingouronlinecontact form, orinperson as organized are processes complaint Our for acomplaint management system. requirements regulatory the fulfilled hence and precautions organizational appropriate implemented and adopted whole, a as has, Bank the that confirmed year calendar 2019 the forreport auditor's The and customer retention for thelongterm. in order to resolve recurring errors orproblems, thereby ensuringahighlevel of customer satisfaction that customer complaints are dealtwithappropriately andpromptly. Complaints received are evaluated L Complaint management Among other things,BW extend account holders can usetheFlinkster andShareNow car- offered atareasonable monthlyflat rate includingahost of attractive benefits. For many years, BW-Bank's customers have benefited from BW extend, a value-added checking account BW extend value-added checkingaccount BBW haslongsince hadawell-established complaint management system withtheaimof ensuring ­sharing preferential systems,

Landesbank Baden-Württemberg 2019 Sustainability Report 111 Responsibility and commitment ➔ Customers Landesbank Baden-Württemberg 2019 Sustainability Report 112 Responsibility and commitment ➔ Customers the analysis of training requirements. of basis to the on in order 2020 in offered be will unit qualifications Additional office motivation. and frontsolidarity ­increase every in held were activities Team-building customer. the on focus a self-confidence and with selling on a focus with measure qualification first the conducted and team in theBusiness Customers In2019,we segment. determined thetraining requirements of thisyoung ­Corporate Customers, Private Asset andCentral Management, Business Customer Management with- ­business andprivate To banking. thisend,we recently consolidated employees from theareas of We offer consulting and service from a single source for the customers who entrust us with their a LBBW trendsetter makes inGermanythisfield. certification This course. the in topics the of one also is Sustainability ­perspective. detail into goes program training about subjects includingcurrent customer requirements andcovers The certain topics from the­ Consultants”. Corporate “Certified designated are ­lecturers this ­ ­program culminating in corporate banking certification. Customer advisors who successfully LBBW's Corporate Customers segment has also worked with a university to develop a training quality. level­knowledgeconveyed. high of recertifiedare a advisors maintain three every Financial to years ­context, includingcurrent customer andmarket requirements. Sustainability isalsopartof the­ knowledge- provide advisors able customer service. Thecourse conveys theoretical knowledge financial andadvisoryskillsinapractical 450 roughly BW-Bank's that ensures Baden-Württemberg) The in-service “BW-Bank Certified Financial Advisor” training course (certified by even holdfurtherqualifications as“FinancialPlanners” or “Certified FinancialPlanners”. ­mandatory for theapproximately 250asset managers atBW-Bank. Manyof ourinvestment advisors The seven-month “FinancialConsultant” course attheFrankfurt Schoolof Finance &Management is of advice thatwe provide, we invest continually in theprofessional expertise of our employees. in initiatives aimedatimproving LBBW's services andadvice. Inorder to maintain thehigh­ and workshops in discussed and analyzed systematicallyare purchases test of results branches. Thisprocedure isusedprimarilyto test thequalityof the advice andservices provided. The In additionto customer satisfaction surveys, BW-Bank regularly conducts “mystery atits shopping” Continual commitment to quality overall satisfaction withBW-Bank, we survey satisfaction intheindividualfront office units. Our retail customers are surveyed every year by an independent market research firm. In addition to Customer satisfaction program consisting of lectures, workshops/case studies, andpresentations by LBBW and­ ­Sparkassenakademie ­implemented customer ­complete external subject quality staff, to construction measures andtheoption of housecalls. number of criteria ranging large from needs-based andage-appropriate services, to theservice provided a by on based was decision panel's review The 2021. through certificate Service” ­“Senior-friendly the display to entitled are and 2018 September in years three further a for recertified were ­Stuttgart concepts suchasonlinebankingoptions andusingtheonlineaccount manager to interested customers. explain we which in seniors for workshops banking digital organizing began we 2017, attorney.In of wire transfers, cash withdrawals, andaccount transfer services to securitiestransactions andpowers from – questions and matters financial of types all with residents help regularlymanagers service and traveling to theirlocal BW-Bank branch but still want to retain theirindependence. BW-Bank advisors In 2012, we established “bank office hours” at retirement facilities to reach seniors who have difficulty Bank office hours for seniorcitizens Stuttgart(“StadtSeniorenRatof city Stuttgarte.the ofcouncil seniors' the 2013, May In Certification: Senior-friendly Service BW-Bank's branches in the state capital as senior-friendly for the first time. The branches in branches The time. first the for senior-friendly as capital state the in branches BW-Bank's V.”) ­certified all

Landesbank Baden-Württemberg 2019 Sustainability Report 113 Responsibility and commitment ➔ Customers

Employees

Promoting health

We are committed to ensuring our employees'­ health and well-being in the workplace. The ­latest audit by the prestigious Corporate Health 90.4 % Award confirms that our company health ­management meets this high standard: LBBW Excellent again achieved “Excellence” status with an result in the overall­ result of 90.4 %, an improvement of Corporate 3.4­­ percentage points. Health Award

Strengthening female leadership

We appointed top female managers to three of the five positions that were newly filled at brand board member, divisional board member and ­divisional head level in 2019. At all levels More of management, we actively encourage ­women women in order to improve their career opportunities. ­Almost one in every five managers at LBBW in management positions ­today is female – and we are working to make ­female leadership even stronger in the future.

Realizing potential

In 2019, we launched no fewer than three Group- wide talent groups for the promotion of ­excellence Young in order to allow us to make more ­internal talents ­appointments to key positions in the ­future. One of the groups is designed ­specifically for talented young employees with high potential.­ 18 young Development program professionals were ­specially selected by the full for young professionals Board of Managing ­Directors. Over a three-year period, they will not only ­expand their expertise, strategic thinking and team ­spirit, but also be supported by mentors in order to develop­ their skills and personality. Landesbank Baden-Württemberg 2019 Sustainability Report 116 Responsibility and commitment ➔ Employees Employees human resources management. room for their private lives. This is our motivation for pursuing sustainable our employees to be able to enjoy working for us while also having enough want We competition. the against succeed can responsibly acts and ahead Lifestyles and ways of working are changing. Only an agile team that thinks that places ahighdegree of importance onsustainability inthefuture. vital to LBBW's long-term business success. Thisiswhy we intend to remain anattractive employer intense over the coming years. We are aware that professional, dedicated, and loyal employees are from ourmentoring program for women. Competition for thebrightest mindswillbecome even more program for young employees with high potential. We have successfully filled management positions take responsibility for theircolleagues andtheirBank.In2019,for example, we launchedatalent promoting andencouraging talented young employees andfuture managers whoare ready to ­ ­professional abilitiesandenhance theirsoft skillsthroughout theirentire career. We are increasingly Our sustainable humanresources management helpseachandevery employee to grow their our corporate culture to life. orientations within ourGroup, whichbringstogether and cultural peoplefrom 66different countries. Diversity iswhatbrings skills, backgrounds, varied the from benefit We cooperation. hierarchical to address complex challenges withastrong team spiritandincreased cross-divisional andcross-­ Digitalization and shifting values are changing the world of work. We are working with our which aimsto determine andprioritize specificwishes for improving everyday working life. ­example, anumberof areas are working together ontheBank-wide “Employee Journey” project, For process. efficient, this in more employees our and involving actively flexible are We technically. more and organizationally lifeboth working everyday launched numerous making wehave at Bank, aimed a projects as and ­initiatives agile more to become In endeavoring change. to flexibly The onlyway for usto develop successfully andsustainably isby acting withforesight and­ and new working methods. digitalization as well as sustainability and tradition about enthusiastic is who anyone for ­company launched in May 2019, we are positioning LBBW both internally and externally as an attractive ­together withemployees whoare ambitiousandresponsible. Withthenew employer brand we LBBW isandintends to remain anattractive employer. We want to shapethefuture of banking Dedicated, agile, diverse

responding ­employees actively 1 Personnel figures for theLBBW Group (as of 31December of each year) The following tables contain annualcomparisons of allpersonnel figures. counted 8,230employees asof thisreporting date. The numberof employees intheLBBW Group totaled 10,005asof 31December 2019.LBBW (Bank) Personnel figures Employees, total according to IFRSs Employees Age breakdown Full-time employees Part-time employees Average of length service (inyears) Other [“Duale Hochschule”] students) (including Cooperative State University Apprentices Graduate trainees Temporary employees Fixed-term employees Average age (inyears) Age ­MKB and GmbH Management Immobilien LBBW including not (i.e. subgroup the excluding Group LBBW the employees refer to of service of length and age the on figures All thereof: women thereof: men thereof: women thereof: men 0 years > 60 0 years 51 –60 0 years 41 –50 0 years 31 –40 0 years 25 –30 5 years < 25 Mittelrheinische BankGmbH). 1 1 1 3,144 (34 5,191 (52 3,050 (33 4,814 (48 1,792 (19 7,133 (71 2,872 (29 2,582 (90 304 (3.0 290 (10 294 (3 730 (8 260 (3 10,005 2019 18.8 45.5 83 45 %) %) %) %) %) %) %) %) %) %) %) %) %) 6

,1 (33 %) 3,015 ,2 (52 %) 5,227 ,5 (34 %) 3,155 ,9 (48 %) 4,790 ,1 (20 %) 1,816 ,0 (72 %) 7,206 ,1 (28 %) 2,811 ,5 (91 %) 2,552 7 (2.8 %) 278 0 (3 %) 304 0 (8 %) 706 7 (3 %) 272 5 (9 %) 257 10,017 2018 18.5 45.3 59 55 6

,4 (31 %) 2,947 ,3 (53 %) 5,431 ,9 (34 %) 3,296 ,9 (47 %) 4,895 ,3 (20 %) 1,935 ,2 (71 %) 7,323 ,0 (29 %) 3,003 ,5 (90 %) 2,653 0 (2.9 %) 300 5 (10 %) 350 1 (3 %) 312 8 (8 %) 781 2 (3 %) 325 10,326 2017 18.4 44.8 66 18 46

,0 (29 %) 2,908 ,8 (52 %) 5,689 ,7 (34 %) 3,477 ,5 (48 %) 5,150 ,6 (21 %) 2,160 ,2 (73 %) 7,925 ,1 (27 %) 2,914 ,3 (90 %) 2,636 9 (3.6 %) 394 7 (10 %) 278 7 (3 %) 274 9 (9 %) 895 7 (4 %) 374 10,839 2016 17.8 44.3 91 27 41

,4 (26 %) 2,649 ,3 (53 %) 5,839 ,7 (35 %) 3,575 ,8 (47 %) 5,281 ,3 (23 %) 2,332 ,1 (75 %) 8,315 ,3 (10 %) 1,039 ,0 (25 %) 2,805 ,8 (92 %) 2,587 7 (4.2 %) 471 1 (2 %) 216 0 (4 %) 409 1 (8 %) 218 11,120 2015 17.0 43.4 167 23 46

Landesbank Baden-Württemberg 2019 Sustainability Report 117 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 118 Responsibility and commitment ➔ Employees Personnel figures for LBBW (Bank)(as of 31December of each year) Average of length service (inyears) Women onfamily care leave Men onfamily care leave Women onfamily year leave Men onfamily year leave Women onparental leave/family year Men onparental leave/family year Part-time executive staff atlevels 1to 3 Other 5 years < 25 0 years 51 –60 0 years 25 –30 years 31 –40 years 41 –50 0 years > 60 Age breakdown Average age (inyears) Age Group heads Department heads Management Rate of absence dueto illness Temporary employees Men whohave left the company Division heads(includingbrand board members) Fixed-term employees Women whohave left thecompany Graduate trainees University [“DualeHochschule”] students) Apprentices (includingCooperative State Part-time employees Full-time employees employees withequivalent status (reporting date) Employees withdisabilities/ and severance agreements Turnover rate, includingearlyretirement Board of ManagingDirectors Total employees Employees   thereof: women thereof: women thereof: women thereof: women thereof: men thereof: women thereof: men thereof: women working duringparental leave thereof: menworking duringparental leave thereof: women

1,542 (19 2,741 (33 2,810 (34 4,283 (52 2,502 (30 5,728 (70 3,947 (48 2,252 (90 282 (3.4 419 (5.1 105 (22 250 (10 54 (0.7 245 (3 640 (8 252 (3 470 (6 22 (13 174 (2 6 (0.1 9 (17 0 (0 2019 8,230 4.0 5.1 19.3 45.5 113 579 210 201 204 13 23 21 17 80 %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) %) % % 3 2 7

4

,7 (19 %) 1,577 (35 %) 2,845 (33 %) 2,690 ,9 (52 %) 4,299 ,4 (30 %) 2,446 (70 %) 5,786 (48 %) 3,933 ,2 (91 %) 2,228 6 (3.2 %) 260 (5.0 %) 415 0 (22 %) 105 2 (0.6 %) 52 5 (3 %) 257 1 (7 %) 610 5 (3 %) 253 7 (6 %) 479 2 (12 %) 22 7 (2 %) 178 1 (9 %) 218 (0.1 %) 6 (13 %) 7 (0 %) 0 2018 8,232 3.8 % 6.3 % 19.4 45.3 635 241 254 252 13 37 88 23 21 52 8 3 4 2

,8 (20 %) 1,689 (35 %) 2,993 (31 %) 2,622 ,0 (53 %) 4,507 ,4 (31 %) 2,647 (69 %) 5,927 (47 %) 4,067 ,3 (88 %) 2,338 8 (3.3 %) 281 (5.0 %) 432 1 (20 %) 110 0 (12 %) 309 0 (0.6 %) 50 0 (4 %) 308 9 (8 %) 692 7 (3 %) 270 4 (6 %) 544 9 (10 %) 19 8 (2 %) 184 (0.1 %) 6 (12 %) 6 (0 %) 0 2017 8,574 3.0 % 7.4 % 44.8 18.9 726 250 304 286 13 47 97 11 21 11 60 7 1 5

,1 (21 %) 1,915 (35 %) 3,141 (29 %) 2,589 ,3 (52 %) 4,735 ,8 (29 %) 2,583 (71 %) 6,447 (48 %) 4,295 ,3 (91 %) 2,338 6 (4.1 %) 369 (4.8 %) 437 2 (19 %) 122 9 (0.5 %) 49 5 (4 %) 358 9 (9 %) 795 3 (3 %) 232 2 (7 %) 626 1 (11 %) 21 9 (2 %) 196 4 (9 %) 245 (0.1 %) 6 (10 %) 5 (0 %) 0 2016 9,030 3.6 % 4.6 % 44.2 18.3 103 766 231 229 173 17 52 12 20 20 86 9 0 2

,0 (23 %) 2,103 (35 %) 3,263 (26 %) 2,408 ,6 (52 %) 4,868 ,9 (27 %) 2,490 (73 %) 6,801 (48 %) 4,423 ,0 (92 %) 2,302 4 (4.8 %) 449 (4.7 %) 435 3 (10 %) 938 2 (19 %) 124 8 (0.5 %) 48 9 (4 %) 392 8 (2 %) 187 5 (7 %) 655 2 (11 %) 22 0 (2 %) 200 8 (8 %) 188 (0.1 %) 7 (10 %) 5 (0 %) 0 2015 9,291 3.7 % 3.4 % 43.4 17.5 135 743 219 167 119 160 15 15 76 12 24 15 1 2

1 1 1 Change Change 31.12.2018 LBBW (Bank) Employees by location 31.12.2018 LBBW Group Employees by location AT Remuneration structure by gender LBBW (Bank) Personnel development measures by topic (no.) (not including apprentices) (7.8hrs./day) Seminar hours peremployee (not including apprentices) Seminar days peremployee Personnel development measures, total Personnel development G 7 –9 TG Up to TG 6 31.12.2019 31.12.2019 thereof: men thereof: women thereof: men thereof: women thereof: men thereof: women LBBW Group excluding thesubgroup (i.e. not includingLBBW ImmobilienManagement GmbH andMKBMittelrheinische BankGmbH) TG (“Tarifgruppe”) =Wage group AT (“Aussertariflich”) =Not subject to collective bargaining agreements Employees intheTVöD civilservice collective bargaining agreement category (2.4 2017 and2016:incl.training sessions ontheintroduction of anew ITcore bankingsystem PC userseminars IT seminars Language seminars Methodological expertise Office skillstraining Long-term seminars (courses of study) Other specialist seminars Management seminars Sales seminars Specialist bankingseminars 1 1

Stuttgart Stuttgart 5,462 6,284 5,477 6,312 15 28 1

Mannheim Mannheim 273 287 270 284 – 3 – 3 17.1 hours

2.2 days %) were assigned to therelevant bank-specific wage group. Karlsruhe Karlsruhe 2019 2019 2,875 1,140 2,037 8,999 42 73 27 40 35 65 18 18 82 233 492 389 874 462 484 13 % % % % % % % % % – 22 – 23 341 350 319 327

18.9 hours

2.3 days 2018 2018 2,466 1,659 2,077 8,598 Mainz Mainz 41 % 74 % 26 % 40 % 35 % 65 % 19 % 17 % 83 % 136 295 395 521 654 383 12 448 469 440 460 – 8 – 9

28.1 hours 3.6 days Leipzig Leipzig 15,342 2017 2017 1,593 1,119 1,588 1,770 7,799 40 % 75 % 25 % 40 % 36 % 64 % 20 % 17 % 83 % 133 432 481 419 – 10 – 11 8 234 284 224 273

24.2 hours Branches Branches 3.1 days 14,230 2016 2016 1,574 1,557 1,982 6,166 1,259 1,342 38 % 75 % 25 % 39 % 38 % 62 % 23 % 17 % 83 % 1,259 1,337 106 837 607 942 452 – 5 7 0

Germany Germany Outside Outside 25 hours 3.2 days 12,611 2015 2015 1,959 1,607 2,036 4,075 37 % 76 % 24 % 39 % 39 % 61 % 23 % 18 % 82 % 178 860 708 749 427 215 252 241 277 25 26 12

Landesbank Baden-Württemberg 2019 Sustainability Report 119 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 120 Responsibility and commitment ➔ Employees t 19.3 %. to 14.7 % proportion of women inmanagement positionsincreased onlyslightly duringthesameperiod,from of ­ have more thantripledthenumberof daycare places for employees' children since 2007.The­ We staf. our for flexible more balance work-life good a arranging made have we years, recent In ­regularly documentkey performance indicators (KPIs). ­implementation of theguidelinesfor sustainability inhumanresources policymeasurable, we The best foundation for business success isasustainable humanresources policy. Inorder to make Key performance indicators –humanresources executive staff atlevels 1to 4 centage of female part-time staff atlevels 1to 4/Per executive No. of female part-time staff atlevels 1to 4 age of part-time executive staff atlevels 1to 4/ No. of part-time executive Ratio of part-time employees Daycare places Foundation every three years ­certification by theHertie “berufundfamilie” audit 3. Work-life balance no. of employees *100) (no. of events [team workshops]/ ­Indicator Key Performance management consulting Percentage of measures by and severance agreements) (not includingearlyretirement initiated resignations ­ Percentage of employee-­ 2. Change management 9.19/hour) (wage EUR/hour*100/EUR to minimum wage Ratio of lowest salarygroup 1. Compensation andbenefits part-time employees hasrisenfrom just under20 Percent

- - personal lives balance theircareers and working timemodelsto advantage of flexible … ouremployees take personal lives balance theircareers and working timemodelsto advantage of flexible … ouremployees take personal lives balance theircareers and working timemodelsto advantage of flexible … ouremployees take parents to work our employees whoare … we make iteasierfor be family-friendly consider ourcompany to … independentinstitutions the employer company are furthered by … change processes inthe extent to which is anindicator of the conditions organization andworking satisfied withthe work … employees are wage … we ensure afair living ... 25 (18 Re-audit 34 (5 186.0 drop-in (incl. 5 (incl. 5 spots) spots) 2019 1.0 1.7 30 96 %) %) % % % % ­ % to 30

(incl. 5drop- 3 (17 %) 23 in spots) 1 (4 %) 31 2018 2.1 % 1.9 % 30 % % inthepast ten years. However, the 90 -- --

(incl. 5drop- 5 (19 %) 25 in spots) 6 (7 %) 56 2017 1.7 % 1.9 % 31 % 92 -- -- (incl. 5drop- 8 (19 %) 28 Re-audit in spots) 4 (6 %) 54 2016 2.2 % 1.6 % 29 % 90 -- (incl. 5drop-in 6 (17 %) 26 8 (4 %) 38 ratio 2015 spots) 1.6 % 1.8 % 27 % 86 -- --

1 intranet who can access thecompany Percentage of employees 4. Communication andinformation ­Indicator Key Performance 5. Management vey regarding information Results of theemployee sur ment seminars/workshops Participation rate inmanage- Employee review percentage measures/no. of employees) (no. of personnel development ­measures per­ Personnel development 6. Personnel development of employees) (total no. of ­ Seminar days peremployee period/no. of hires *100) terminated in­ (employment relationships Early turnover rate 7. Employee retention employees perage group) ­(resignations/average no. of structure (age cluster in Turnover rate by age (in years) Average of length service ­ (results of employee survey) Employee satisfaction ­ New measure since 2019:Average score across allemployee survey respondents, onascale from 1(lowest) to 10(highest). seminar days/no. employee ­ probationary

%)

1 - 1 with theiremployer … employees are satisfied ciently informed … employees feel suffi- tant events employees about impor … theemployer informs

leadership skills further develop their management duties and … executives discuss their every three years a review was conducted employees withwhom … thepercentage of employees' skills … we furtherdevelop our employees' skills … we furtherdevelop our nel choices … we make good person - ­remain withthecompany … young employees

long term our employees for the … we are ableto retain is anindicator of the extent to which ­ ...

1 6 yrs. 60 – 51 1 5 yrs. 50 – 41 1 4 yrs. 40 – 31 5 3 yrs. 30 – 25 6 yrs. 60 > 2 yrs. 25 < 97.1 52.9 15.7 2019 1.8 2.5 1.8 4.4 7.1 19.3 18 74 7.5 7.3 1.1 1.9 % % % % % % % % % %

1 6 yrs. 60 – 51 1 5 yrs. 50 – 41 1 4 yrs. 40 – 31 5 3 yrs. 30 – 25 6 yrs. 60 > 2 yrs. 25 < 98.5 % 49.8 % 20.1 % 2018 3.6 % 2.5 % 5.4 % 9.2 % 19.4 94 % 92 % 31 % 74 % 1.0 2.3 0 %

1 6 yrs. 60 – 51 1 5 yrs. 50 – 41 1 4 yrs. 40 – 31 5 3 yrs. 30 – 25 6 yrs. 60 > 2 yrs. 25 < 37.12 % 24.96 % 98.5 % 5.33 % 3.10 % 6.30 % 8.46 % 2017 18.9 91 % 85 % 58 % 77 % 1.8 3.6 0 %

1 6 yrs. 60 – 51 1 5 yrs. 50 – 41 1 4 yrs. 40 – 31 5 3 yrs. 30 – 25 6 yrs. 60 > 2 yrs. 25 < 98.5 % 27.6 % 22.4 % 2016 2.0 % 2.0 % 4.5 % 6.4 % 18.3 52 % 80 % 1.5 3.1 2 % -- --

Not calculated due to change 1 6 yrs. 60 – 51 1 5 yrs. 50 – 41 1 4 yrs. 40 – 31 5 3 yrs. 30 – 25 of system of 6 yrs. 60 > 2 yrs. 25 < 98.5 % 22.7 % 15.1 % 2015 1.4 % 1.6 % 2.9 % 5.0 % 17.5 94 % 93 % 82 % 1.3 3.2 6 %

Landesbank Baden-Württemberg 2019 Sustainability Report 121 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 122 Responsibility and commitment ➔ Employees 2 9. Promoting health workforce equivalent status inthe employees/employees with Percentage of disabled non-German nationality Percentage of workforce of (levels 1to 4) leadership positions Percentage of women in ­employees Percentage of female 10. Equal opportunityanddiversity of apprentices intotal *100) job offers to apprentices/no. Apprentice hiringratio (no. of no. of employees *100) (number of graduate trainees/ Graduate trainee ratio ­employees *100) (no. of students/no. of schule”) students University (“DualeHoch - Ratio of Cooperative State (age clusters in Age breakdown ­ (in years) Average age of theworkforce 8. Demographic developments Indicator Key Performance employees *100) (number of apprentices/no. of Training ratio Corporate HealthAward Degree of success inthe days *100) days/target working timein absences dueto illness in (with physician’s note) (total Rate of absence dueto illness New formula from 2016onward, meaningthatfigures from 2016are not comparable withprevious years. %)

2 ­

prospects sionals long-term career … we offer young profes German DisabilitiesAct in accordance withthe disabilities inour­ … we employ peoplewith of nationalorigin opportunities regardless … we provide equal of gender opportunities regardless … we provide equal of gender opportunities regardless … we provide equal sionals internally … we train young profes sionals internally … we train young profes employees ­younger ratio of olderand … we ensure abalanced sionals internally … we train young profes employees ­younger ratio of olderand … we ensure abalanced

Germany of companies throughout it ranks inacomparison health standards andhow management fulfillshigh … ourcompany health absent dueto illness … ouremployees are is anindicator of the extent to which company company - - - - ...

1 6 yrs. 60 – 51 5 3 yrs. 30 – 25 yrs. 40 – 31 yrs. 50 – 41 “Excellence” 2 yrs. 25 > yrs. 60 > Re-­ 90.4 19.3 2019 status 100 audit 5.1 6.1 1.0 1.0 2.4 4.0 with 45.5 34 19 33 52 8 3 3 % % % % % % % % % % % % % % % %

1 6 yrs. 60 – 51 5 3 yrs. 30 – 25 yrs. 40 – 31 yrs. 50 – 41 “Excellence” since 2016 2 yrs. 25 < yrs. 60 > 92.6 % 18.7 % 2018 status 5.0 % 5.7 % 0.6 % 1.0 % 2.1 % 3.8 % 45.3 33 % 19 % 35 % 52 % 87 % 7 % 3 % 3 %

1 6 yrs. 60 – 51 5 3 yrs. 30 – 25 yrs. 40 – 31 yrs. 50 – 41 “Excellence” since 2016 2 yrs. 25 < yrs. 60 > 97.0 % 17.2 % 2017 status 5.0 % 5.6 % 0.7 % 1.2 % 3.3 % 3.0 % 44.8 31 % 20 % 35 % 53 % 87 % 8 % 4 % 3 %

1 6 yrs. 60 – 51 5 3 yrs. 30 – 25 yrs. 40 – 31 yrs. 50 – 41 “Excellence” 2 yrs. 25 < yrs. 60 > Re-audit status 95.5 % 16.9 % 2016 4.8 % 5.6 % 1.0 % 1.2 % 2.9 % 3.6 % 44.2 with 29 % 21 % 35 % 87 % 52 % 9 % 4 % 3 %

1 6 yrs. 60 – 51 1 4 yrs. 40 – 31 yrs. 50 – 41 5 3 yrs. 30 – 25 “Excellence” since 2012 2 yrs. 25 < yrs. 60 > 81.3 % 16.6 % 2015 status 4.7 % 5.4 % 1.7 % 1.3 % 3.6 % 3.7 % 43.4 26 % 23 % 35 % 52 % 10 % 84 % 4 % 2 %

opportunity to analyze their personal risk due to inadequacies in their diet. Interested employees Interested diet. with anelevated riskwere offeredtheir additionalmeasures withtheinvolvement of external experts. in inadequacies to due risk personal their analyze to the ­opportunity had employees all months, following the In part. took Stuttgart and Mannheim, Mainz, Leipzig, appropriate and healthy concerning findings were communicated inanentertaining latest manner. Around 650 employees atthelocations inKarlsruhe, the dietitian, external an ­involving year for 2019was “Crime Scene Health–AMetabolism Thriller”. Beginningwithakick-off event Playing on the name of the classic German police drama “tatort”, the health promotion theme of the We alsopartnerwithfitness studios throughout Germany. ­preventive healthcare activities ifthecosts are not completely covered by healthinsurance plans. offered courses preventive about by intranet the on informed are Mainz or Leipzig, Karlsruhe, heim, and relaxation during lunch). Employees whowork more than30kilometers from Stuttgart, Mann- well as as courses health-promoting of different workplace exercise andrelaxation anumber sessions suchas“Bewegte undentspannte Mittagspause” ­ run regularly offices LBBW larger All borneby were costs The offer. ofthis LBBW infull. advantage took locations five at employees 1,021 season. 2019/2020 the for vaccination influenza quadrivalent latest the employees its offered also LBBW ­using agilemethods. new the enter they phase of life as thatistheircareer. Thisyear, issues theevent focused ondeveloping health health-related topics about people young among awareness raising of aim ­specific the with entry-levelemployeesfor Day Health a held again we 2019, In units. organizational the of and customized were eating healthy and exercise,promoting stress, with dealing (Focus onHealth)in2019. Over aperiodof ayear, modulesonhealth-related topics suchas­ “Fokus in part employeestook 700 totalof a with units organizationalfour Stuttgart, In ment department. approach andisledby LBBW's headoccupational physician, whoisalsoheadof theHealth Manage- support in their private as well as professional life. The CHM therefore pursues a multi-disciplinary tothe through training, communication of important resilience lifestyle factors for vitality andwellbeing and,inparticular, and ­ situations conflict with dealing teamwork, communication, the immediate physical designof theirworking environment andsoft factors like leadership ­ for healthmanagement atLBBW. However, theservices we offer ouremployees go muchfurther:from Modern insights from traditional ergonomics, includingoccupational psychology, are the­ representatives, functions asanadvisoryandinformation committee. activities, whiletheHealthRound Table, comprising representatives from various unitsandemployee The Health Management Steering Committee is the organizational unit that manages all health-related employees intheworkplace, thereby maintaining andimproving motivation andperformance. Company healthmanagement (CHM)atLBBW istasked withpromoting thehealthandwellness of Health ­statutory health insurance plans. Financial assistance is provided to support these individual presented to each to ­presented psychosocial Gesundheit” ­Gesundheit” ergonomics, foundation behavior, (Exercise ­nutrition

Landesbank Baden-Württemberg 2019 Sustainability Report 123 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 124 Responsibility and commitment ➔ Employees Occupational healthservice ratio of 90.4 fulfillment a with further even resultoverall its improvedAwards” and “CorporateHealth the at the SÜD “TÜV association supervisory technical the “Handelsblatt” newspaper ­daily comparison of companies conducted by EuPD Research Sustainable theGerman Management, Our efforts to ensure ahealthy company were again audited externally in2019.Ina­ prevent occupational incapacity orto reconcile health andworking requirements following longer ­(previous year: 41 such asexhaustion anddepression aswell aspsychosocial helpfollowing majorphysical illness 18 ­restructuring, 2019, andwork performance (previous year: 27 in provided consultations total the Of counseling centers, clinics,orpsychotherapists. subsequent illnesses andmissed work. Inindividualcases, employees can also bereferred to external ­services department offers direct emergency psychological helpthatcan prevent ormitigate possible ­offered. After acute crises (such as serious accidents, sudden death, or bank robbery), the social issues (such asthedeathof aloved one).Preventive advice onresilience andhealthcare isalso and ­difficult situationsconflicts, atstress, work,as mental healthsuch issuestopics (like burnouton andemployees depression),branch addiction, and as well as Leipzig and Mainz, Mannheim, The socialservices department advisesemployees and executives atthesites inStuttgart, ­ Social services department and ­after aphysical ormental illness, theoccupational healthservice isalsoavailable for behavioral privilege. In­ ­employees infundamentally allhealth-related matters whilemaintaining strict physician-patient theprimarypointofAs contact, theoccupational healthservice supports andadvisesallour with preventive health measures. (“G-BA”) of theGermanstatutory healthinsurance funds.Inthisway, LBBW supportsitsemployees of themedical screenings andpreventive check-ups recommended by theFederal JointCommittee Under theframework collective agreement, employees are alsoentitledto timeoff work to attend all occupational healthservice for healthadvice and medical treatment around 14,000times. as of occupational nurses inStuttgart are available to every employee. In2019,employees usedthe well as Mainz and Mannheim, Karlsruhe, Stuttgart, in locations LBBW's at physicians of services The that our­ offered by thesocialservices departmentandLBBW's healthpromotion activities to create amodel as well asgeneral medical care andvaccinations. These services are closelyintegrated withthose ­ias Group, LBBW's company health management achieved the prestigious “Excellence” status ­environmental employees can access to develop theirown personal healthstrategy. addition to typical workplace andsocialmedicineissues suchasreturning to work % (previous re-audit in2016:87 %). Integration management in the workplace is increasingly required in order to interventions, first aid, emergency medical care/services, and travel medicine, travel and care/services, medical emergency aid, first ­interventions, %). cnend oklc ise sc a conflicts, as such issues workplace concerned % %), while47 % related to mental health­ Akademie”, and­Akademie”, Germany-wide Karlsruhe, ­personal issues The conditionsThe of workplaces are examined duringon-site inspections, andpossibilities for ­ and renovations, andthedevelopment of buildingstandards. in workplace-related decisions such as the purchasing of furniture new andITequipment, For instance, occupational safety experts andoccupational physicians are involved intheearlystages ­productive work environment. much more thantheminimumrequired by law in order to offer ouremployees a safe, and pleasant, Occupational safety atLBBW isgoverned by anumberof statutory regulations. However, we do Occupational safety onresilience and departments,reaching atotal of 239employees. The workshops customers. with situations ­enjoyed healthy demandthroughout theBankandwere successfully conducted difficult indifferent groups with dealing or prevention out ­managers workshops, training courses, andpresentations covering psychosocial issues suchasburn- In additionto one-on-oneconsultations, thesocialservices departmentoffers allemployees and health andleadtheirteams inahealthy way. the training program. Four half-day modulesgave managers suggestions onhow to protect theirown Boosts Performance) seminar was held successfully for the second time and is now an integral part of psychosocial issues hasremained high. The “Gesund führen –Leistung erhalten” (Healthy Leadership management-level employees whoseekout thesocialservices departmentto discuss ways to handle (previous year: 729).Thenumberof consultations was 2,391(previous year: 2,081).Theshare of In 2019,thesocialservices departmentwas consulted by atotal of 721employees andmanagers ­(previous year: 9 for loved ones(previous year: 22 periods of incapacity. In25 number of fire safety assistants ateachlocation. further. Inadditionto thetraining thatwasreinforced still required, work began ontheregular review also of the was protection fire in involved GmbH Management Estate Real Corporate LBBW of departments the with Cooperation safety regulations. fire updated Bank's the of communication and publication, implementation, the was protection fire of area the in point focal year,one past the In issues. quarterly and represents LBBW's entire workforce, dealswithallkey occupational healthandsafety In itsfunction asanadvisoryandcoordination body, ouroccupational safety committee, whichmeets place, safety work officers were trained to be“Ergo Scouts”. the in ergonomics improve further to order In officers). safety and representatives, employee regular training was provided for employees involved inoccupational safety atLBBW (e.g. executives, ­sessions onworkplace ergonomics were carried out in 2019ona scheduled or ad-hoc basis. In addition, are examined asnecessary. Numerous safety-related on-site inspections andindividual­ %). % of cases, theconsultations related to personal issues suchascaring %), with support following acute crises accounting for 6 improve­­ ­construction % of cases consulting ment ment -

Landesbank Baden-Württemberg 2019 Sustainability Report 125 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 126 Responsibility and commitment ➔ Employees Personnel development from work were registered (previous year: 32).Nowork-related illness was reported to usin2019. the industry average. A total of 34 reportable accidents sustained by employees onthe way to or rate of The ten). year: (previous workplace accidents per1,000employees five was therefore 0.6(previous year: 1.2),whichiswell was ­ 2019 in accidents workplace reportable of number The oa team. ­local ­experience everyday working life inanother departmentfor upto aweek andto connect withthe the option of temporary work shadowing. Thisgives employees andmanagers theopportunityto organizational another in unit inorder to understandstructures different perspectives andgain fresh momentumfor theirown jobhaveand processes work the know to get to want who Employees e-learning programs onsuccessful conflict resolution andoptimizing personal organization. andthedivision- training programs. We also offer digital learning for methodological andsocial skills,suchasthe banking knowledge for program training the general in integrated firmly that suitsthem.Web-based training, includingawiderange of instructional videosandexercises, is ­digital self-study scripts to allow users to determine thecontent andpace of theirlearninginaway In additionto conventional web-based self-study programs, we are increasingly usingvideosand offices outside Germany. ­internal andexternal training opportunitiesoffered by LBBW can alsobeusedby employees inthe the sustainability policy, sustainable investment, thelendingprocess, andhumanrights aspects. The program every three years. Thesustainability section of thetraining program includescontent on programs. All employees are required to complete the fraud prevention and sustainability training as such topics on (e.g. divisions ­money fraud laundering, specialized prevention, data protection, etc.). Theseare generally self-directed responsible ­ the by held and organized is ­regulations are ­personnel planning together with the specialized divisions. The individual training needs of The needfor training andcontinuing education atLBBW isdetermined inthecourse of ­ The topics covered seminarson includemanagingandstructuring work for teams thatcollaborate virtually. numerous added have we the future, flexible­modern, methods leadership and work employeesfor managers training and our to program. shape proactively and change to flexibly and were usedaround 9,000timesin2019(previous year: 8,598).To allow usto respond more ­ ­training andcontinuing education are crucialfor career advancement. Thetraining measures ­ We offer abroad range of seminars for allouremployees. Thisisbecause we are convinced that a separate development program for top talents. ­employees intheirefforts to develop theirskillsandabilitiesthroughout theirentire careers. We ­ and committed employees isadecisive factor inbusiness competitiveness. We actively supportour We pursue asustainable personnel development policyastheabilityto recruit andretain skilled identified in discussions with their supervisors. Training that is mandatory dueto mandatory that is Training supervisors. their with discussions in ­identified ­employees ­statutory training ­specific offered quickly annual below offer of our trainees. In 2019, five apprentices (previous year: eleven) made use of the opportunity to theopportunity of use made ­broaden theirsocial horizons inthisway. eleven) year: (previous apprentices five 2019, In trainees. our of ductory and follow-up sessions, this time is a valuable, personally enriching experience for many disabled, or ill. Alternatively, they can work on an environmental project. Along with organized intro ­ servicefacility for weektherebya and firsthandlearn life about daily are the who people of In cooperation withthesocialservice agency mehrwert gGmbH,ourapprentices can work inasocial apprentices take partintheirsecond year of training. Savings Banks Association's stock market simulation game (“Planspiel Börse”), in which all ­ Social andecological criteria are alsotaken into account whenassessing investment strategies inthe efficient construction from KfW and L-Bank). and the accompanying financing concept (specific residential development loan programs for energy-­ ability withregard to purchasing aproperty values, (energy wellbeing, environmental protection) the training oninvestment products. Thetraining on“houseandhome” includesaspects of sustain- are products bank and ­regard to sustainability aspects. For example, practiced LBBW's sustainable investment products form partof are concepts advisory holistic and sustainable University State Cooperative and assistants, financial specialists, banking banking- all in enshrined firmly now is sustainabilityofconcept: topic The ­seminar dayonsustainability thatwas previously offered once ayear was replaced withanew ­ LBBW aspartof training events duringtheirinduction weeks. In2019,theadditional­ State University students andgraduate trainees are already informed about ­ Sustainability isanintegral partof anytraining atLBBW. Ournewly appointed apprentices, ­ 2019 was 83. professional andpersonal skills.Thenumberof graduate trainees attheLBBW Group attheendof offer first-rate graduate trainee programs to optimally foster talented young people and develop their Training theyounger generation isanimportant success factor for LBBW's future. For thisreason, we ­Cooperative State University (“DualeHochschule”). Theapprentice hiringratio in2019was 100 in the bank management and business information sys-tems programs at Baden-Württemberg (Bank): 3.4 ­people were beingtrained intheLBBW Group (previous year: 278).Thetraining rate was 3.0 LBBW takes itsresponsibility for training young peopleseriously:At theendof 2019,304young Training sustainability identity. ­employees from different divisions to actively participate in the discussion on topics such as LBBW's at the welcome event. Additionally, several sustainability workshops were held in 2019 to allow New LBBW employees are informed about oursustainability commitment aspartof apresentation %). Each year, LBBW provides at least 110training positionsand38places for ­ ­specific ­students. sustainability topics at training forfuture­training cuiie with ­scrutinized ­Fundamentally LBBW (Bank) Cooperative voluntary % (LBBW students training ­elderly, %. ­

Landesbank Baden-Württemberg 2019 Sustainability Report 127 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 128 Responsibility and commitment ➔ Employees the ­ ­female managers inorder to ensure thatthey are taken into account to aneven greater ­ ­Directors act asmentors. Oneof thesetalent groups hasbeenspeciallydesignedto ­ ­demanding individualandjointdevelopment measures. Members of theLBBW Board of ­ ­female ­ at thecompany. InJanuary2019,two top management talent groups were launchedwithten significantly to is aim Our management. high-potential employees inorder to helpthemto compete for key talent positionsandhence keep them our of part as talents top ­encouraging In order to remain competitive inthefuture, we alsoplace particularemphasisonpromoting and central guidelinesfor targeted development measures aspartof ourholistic talent management. provides also model The managers. of potential the analyzing or traineesgraduate appointing when working life. We systematically applythe“LBBW Competence Model”inourselection processes, e.g. down to behavioral level andtranslated into key issues, serve aspointsof reference for everyday clear guidance asto theexpectations LBBW hasof itsemployees. Thecompetences, whichare broken selves havingto dealwithgrowing andchangingdemands.The“LBBW Competence Model”provides them- find who employees and managers our for consequences direct in resulting is evolve.This to The conditions inwhichbanks dobusiness have changed drastically inrecent years andare ­ Skill andexecutive development through life-long learning. Consequently, we are ableto overcome preconceptions, strengthen teams, and maintain productivity colleagues, while older employees benefit from the fresh input and skills of their younger coworkers. way, younger participantshave anopportunityto learnfrom thewealth of experience of theirolder conditions applying to all age groups. Our seminars are characterized by a mixed age structure. In this age. Ourrange of training courses isbasedonjobrequirements, withthesameinternal andexternal Life-long learningispartof our corporate culture. Thisappliesto allouremployees regardless of their Older employees ­departmental level, ­ and implementchange processes together withthedivisionsonaproject-specific basis. HRdevelopment,management, andtalent management aswell asagilecoaches consult on,design HR from experts LBBWagility. and digitalization, focus, business of objectives its on focusstrategic ­developed onaconsolidated basisinprojects inorder to shapechange processes aspartof LBBW's Methodological, structural andcultural changes are supported professionally asrequired and paths ­ forsupport talented young ­talented young ­ competition for ­ require specialskills.They participate intalent programs withslight modifications. candidates andseven malecandidates. They are prepared for internal competition by way of employees withhighpotential. 18employees are We taking part. alsoprovide ­ management positionsinthefuture. Whileboth of thesetalent groups start at another three-year talent program thatwe launchedinlate 2019­ ­employeesdifferentin businessareas of Groupthe whose specific ­specific career focuses on ­strengthen continuing Managing extent in promote targeted rate of 74 of rate ness, and digitalization. 6,131 employees took part in the survey, corresponding to a stable ­following issues: cooperation, leadership, information, atmosphere, satisfaction, agility, competitive­ The sixthBank-wide employee survey was conducted in2019.Thequestionnaire again covered the Employee survey relationships, leisure activities, andsocialinvolvement. (Retirement –WhatNow?), whichexplores theprocess of retiring andhighlights future ­ employees to participate inafour-day seminarentitled“Ausstieg ausdemBeruf–Aufbruch wohin?” retirement receive supportfrom theBankintheirtransition to thisnew phaseof life. We ­ Employees who plan to reduce their working hours shortly before retirement or who enter services to maintain theirwork performance, andactively andjoyfully participate inworking life. physicians and the social services we department, offer older employees a program, company andtheconsultations healthmanagement, andsupportprovided by our­ Our experience withthistypeof active integration hasbeengood. Thanks to ourcontinuing ­ ­independent onlinesurvey, asurvey of Xingmembers, andcurrent reviews onkununu. best ­ bythe review platform ranking kununuand theonlinesocialnetwork LBBW Xing. hasbeenranked as“one of the the in the reflected with cooperation in also prepared is which is Business, Focus employer magazine career and an ­business as LBBW with satisfaction of level high The groups. analyses were prepared for members of theBoard of ManagingDirectors, divisions,departments,and The results for the Bank as a whole were published on the intranet. In addition, over 700 on the­ or comments ­rating thanintheprevious year. Around 22 by 0.3points.The categories of information, atmosphere, andsatisfaction alsoachieved a­ with the­ rating. Onascale from 1(very poor)to 10(very good), theaverage was 8.4,up0.3points­ best the achieved work autonomous self-organized, for scope The categories. all in year ­previous The results of the2019employee survey atoverall banklevel improved compared withthe in thesurvey process onthepartof employees. 2011. The continued high participation rate serves to underline the active interest and ­ employers since inGermany” 2016,andthiscontinued in2019.Therating isbasedonan previous survey. previous survey in 2018. Theaverage rating inthemanagement category alsoincreased

% (previous year: 74 year:(previous % suggestions for improvement in a blank field provided for this purpose – up slightly up – purpose this provided for field blank a in improvementfor ­suggestions

%). This is ten percentage points higher than for the first survey in survey first the for than higher points percentage ten is This %). % of allparticipantstook theopportunityto include ­comprehensive range of opportunities for encourage these occupational involvement participation ­participation early or full ­early or full compared ­individual education ­employer higher

Landesbank Baden-Württemberg 2019 Sustainability Report 129 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 130 Responsibility and commitment ➔ Employees complaint inaccordance withtheGermanGeneral Anti-DiscriminationAct. the complaints board in2019.Following areview, itwas established thatthere were nogrounds for be reached, thecomplaints board can berequested to resolve theissue. Onecomplaint was brought to to divisionheadlevel inwhichthestaff council mayalsoparticipate ifdesired. Ifnoagreement can orthecomplaintsment, board. For purposesof resolving theseissues, meetings can berequested up ­representatives for employees with disabilities, the responsible manager, thesocialservices depart ment intheWorkplace”, employees whofeel discriminated against mayturnto thestaff council, According to the“Works Agreement onProtection from DiscriminationandaCooperative Environ- and aCooperative Environment intheWorkplace”, aswell asourCode of Conduct. Among other things,we ensure thisthrough the“Works Agreement onProtection from Discrimination it comes to allforms of gender discrimination,includingverbal, physical, andsexual harassment. customers, business partners, suppliers, or other persons. LBBW pursues a zero-tolerance policy when LBBW doesnot tolerate any form of discriminationwithintheBankorwithrespect to its­ new addition, In employees. all ­executives are provided withinformation onthistopic inbasicmanagement training. for mandatory is (AGG)) Gleichbehandlungsgesetz” (“Allgemeines at LBBW. efforts Completing ane-learningtool for implementingtheGermanGeneral opportunity Anti-DiscriminationAct equal and diversity support and supervise to assigned is officer diversity A ensure aworkplace free of prejudice for allemployees. “Diversity Charter” initiative (www.charta-der-vielfalt.de) since 2008.Thisinvolves acommitment to at achieving gender balance inmanagement positions.LBBW (Bank)hasalsobeenamemberof the In 2018,LBBW signedupto the“Chefsache” initiative (www.initiative-chefsache.de), anetwork aimed nationality, ethnic origin,religion orworldview, disability, age, sexual orientation, oridentity. createa must their employees of and skills ­working environment free of prejudices. All employees should be valued regardless of their gender, knowledge the from benefit to want that Companies Equal opportunityanddiversity helps usto establish andmaintain contacts throughout theworld. 6.1 is (Bank) LBBW at figure workforce;the the globework intheLBBW Group. Employees of non-Germannationality make up6.5 biographies, skills,andcultural orientation of itsworkforce. Currently, peoplefrom 66­ As a financial institution working across industries and cultures, LBBW benefits from the diverse Cultural Diversity %. This diversity is extremely valuable for the company and and company the for valuable extremely is diversity This %. countries across % of thetotal employees, ­interests, - New hires serves onthemanaging board at32of the100bankinginstitutions analyzed. companies (interms of total assets or premium income) attheendof 2017.At least onewoman around 9 According to astudy by theGermanInstitute for Economic Research (DIW),women accounted for year: 18.7 The proportion of women inthetop four management levels of LBBW (Bank)came to 19.3 At theendof 2019,women accounted for 52 for careeropportunities improve tocontinually women andincrease theirnumbers inspecialist andexecutivewant staff positions. We or female. male whether ­qualifications, LBBW provides thesametraining andpromotion opportunitiesto allemployees withequivalent Women andMen 1 level, includingsixwomen. board anddivisional head, division member, member level in 2019, including three women. There were board a total of 16 new hires at department head at brand hires new five of total a were There Managers atLBBW (Bank)(asof 31Dec. of eachyear) Managers by gender Level 3: Level 2: Level 3:  Proportion of women atlevels 1 oa lvl 1 –4 levels Total Level 4: Managers by gender Level 1: Level 2: Managers atlevels 1 Employees taking upanew level 2orlevel 3position intheperiodunderreview.  Department heads + divisionheads ­divisional board members Brand board members, Group heads heads Department + divisionheads Brand board members of Managing Directors Members of theBoard % of managingboard members atthe100largest Germanbanks and60largest insurance %). We are aimingfor aproportion of women inmanagement positionsof atleast 25 1 – 3 – 3 3

105 (22 31 (13 22 (13 Women Women 9 (17 (19.3 %) 0 (0 136 %) %) %) %) %) 2019 6 3 2019 365 (78 152 (87 45 (83 6 (100 Men (80.7 %) Men 568 %) %) %) %) 10 2

% of thetotal staff attheLBBW Group (LBBW (Bank):52 Women 0 (22 %) 105 Women 30 (12 2 (12 %) 22 (18.7 %) (13 %) 7 (0 %) 0 134 2018 %) 7 2 2018

7 (78 %) 374 5 (88 %) 156 5 (87 %) 45 (100 %) 6 Men Men (81.3 %) 581 26 7

5 (10.4 %) 25 1 (20 %) 110 Women Women 9 (10 %) 19 (17.2 %) (12 %) 6 (0 %) 0 135 1 1 2017 2017 3 (80 %) 434 6 (90 %) 165 4 (88 %) 44 (100 %) 6 Men Men (82.8 %) 649 13 2

6 (10.4 %) 26 2 (19 %) 122 Women Women 1 (11 %) 21 (10 %) 5 (16.9 %) (0 %) 0 148 0 0 % (previous 2016 2016 %. 0 (81 %) 504 7 (89 %) 175 4 (90 %) 44 (100 %) 6 Men Men (83.1 %) 729 %). %). 15 6

Landesbank Baden-Württemberg 2019 Sustainability Report 131 Responsibility and commitment ➔ Employees

RemunerationVergütungsstruktur structure nach by Geschlecht gender, LBBW für die (Bank), LBBW as (Bank) of 31 zumDecember 31. Dezember 2019 1 20191 Mitarbeiterinnen und Mitarbeiter Mitarbeiterinnen

➔ AT (42 %) 27 % 73 % Responsibility and commitment ➔ Employees and commitment Responsibility

TG 7 - 9 (40 %) 65 % 35 %

Upbis to TG 6 (18 %) 82 % 18 % Verantwortung und Engagement und Engagement Verantwortung

FrauenWomen MännerMen

1 Employees 1 Beschäftigte in theim »Tarifvertrag TVöD civil service für den collective Öffentlichen bargaining Dienst« wurdenagreement der entsprechendencategory were assignedTarifgruppe to imthe Banktarif relevant zugeordnet.bank-specific wage group. AT =(“Aussertariflich”) Außertariflich. = Not subject to collective bargaining agreements.

TG =(“Tarifgruppe”) Tarifgruppe. = Wage group. 132 132

Bei außertariflich vergüteten Tätigkeiten überwiegt der Anteil männlicher Beschäftigter, im Tarifbe- A larger percentage of male rather than female employees hold jobs whose remuneration is not reich dagegen der Frauenanteil. ­subject to collective bargaining agreements (AT). The reverse is true for jobs subject to collective ­bargaining agreements. Ein Vergleich der geschlechtsspezifischen Vergütung zeigt, dass die Vergütungsdifferenz im Inland außerhalb des Tarifbereichs im Jahr 2018 zwischen 10 % und 13 % betrug. Zu beachten ist hierbei A comparison of remuneration by gender shows that the difference in remuneration for jobs not allerdings die geringere Basis des Frauenanteils in den Führungsebenen. Bei den AidA-Vorständen ­subject to collective bargaining agreements was between 10 % and 13 % in Germany in 2018. It should

(AidA = Anstalt in der Anstalt = BW-Bank), LBBW-Bereichsvorständen und -Bereichsleitungen liegt der be noted that the percentage of management-level positions held by women is low. In the case of the Verdienst der Frauen auf gleicher Höhe. AidA Board members (AidA = institution within the institution = BW-Bank), LBBW divisional Board members and division heads, women earn the same. Die LBBW ist bestrebt, jeder und jedem Beschäftigten eine faire, diskriminierungsfreie Vergütung zu gewähren und unterstützt daher die Ziele des Entgelttransparenzgesetzes (EntgTranspG) vom 6. Juli LBBW aims to provide all employees fair, non-discriminatory remuneration and therefore supports 2017. Das Gesetz verbessert die Transparenz von Entgeltstrukturen und will so das Gebot des gleichen the objectives of the German Pay Structure Transparency Act (EntgTranspG) of 6 July 2017. The Entgelts für Frauen und Männer bei gleicher und gleichwertiger Arbeit in der Praxis sicherstellen. law improves the transparency of pay structures with a view to ensuring equal pay for women and Württemberg 2019 Württemberg

- Durch unsere klare Funktionsstruktur, die sowohl die Beschreibungen der jeweiligen Hauptaufgaben men performing the same or equivalent work in practice. Thanks to our clear functional structure, als auch der jeweiligen Anforderungen an Ausbildung, Kenntnisse, Fähigkeiten und Erfahrungen ent- which includes descriptions of key responsibilities and the required education, knowledge, skills, and

Baden hält, sind wir für alle Auskunftsansprüche gut aufgestellt. In Verbindung mit der jährlichen Prüfung ­experience, we are well prepared for all requests for information. Along with the annual review to der Angemessenheit der Vergütung gegenüber den Marktgegebenheiten sind wir in der Lage, unseren ­determine whether the remuneration we provide is appropriate compared to market conditions, we Führungskräften transparente und objektive Anhaltspunkte für Vergütungsentscheidungen zur Verfü- are in the position to offer our executives transparent and objective parameters for remuneration gung zu stellen. ­decisions. andesbank andesbank Um Chancengleichheit von Männern und Frauen in der LBBW zu ermöglichen, treiben wir maßgeblich When it comes to facilitating gender equality at LBBW, we adress two topics in particular:­ the active­ pro- zwei Themen voran: aktive Frauenförderung und die Vereinbarkeit von Beruf und Privatleben. 2019 motion of women and ensuring a healthy work-life balance. In 2019, we adopted­ a focus­ on “women and haben wir dabei den Schwerpunkt »Frauen und Karriere« gesetzt. So wurde das »audit berufund- career”. For example the berufundfamilie audit was ­conducted with a view to ­identifying effective­ ­starting familie« unter dem Aspekt durchgeführt, wirkungsvolle Ansatzpunkte aufzuzeigen, um Führungsposi- points for making management positions­ attractive­ for women. Five workshops were held with partici- tionen für Frauen attraktiv zu machen. Es fanden fünf Workshops mit Teilnehmenden aus unterschied- pants from various areas. The ­catalog of measures developed in the process will be implemented over the lichen Bereichen statt. Den daraus erarbeiteten Maßnahmenkatalog werden wir in den nächsten drei next three years. We also specifically aim to promote women as part of our talent management activities. Jahren umsetzen. Auch im Talentmanagement berücksichtigen wir gezielt die Förderung von Frauen. Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

consultations withtheemployer LBBW, thestaff council, andthegeneral staff council. support duringinternal andexternal jobinterviews assistance andhiring, withworkplace design, and The representatives have thefollowing responsibilities, amongothers: personal advice and­ representative regional six and (GSBV) Disabilities with Employees for Body ­Representative LBBW employees whoholdseverely disabledstatus are advisedandrepresented by theGeneral ­processes. qualifications their provided are preference, equivalent. TheLBBW Representative Bodyfor Employees withDisabilitiesisintegrated given into all are disability a with applicants job hires, ­selecting ­external jobopeningsto theFederal Employment Agency (“Bundesagentur When fürArbeit”). equivalent status. Thiscorresponds to 5.1 ofAs 31 December 2019,LBBW (Bank)had419 employees withsevere disabilitiesorwho heldthe People withDisabilities ­formation in2007. different­ positions. The network hasprovided valuable impetus and implemented ideas since its patron of theinitiative. Thewomen's network includesaround 350women withawiderange of LBBW's women's network. TheChairmanof theBoard of ManagingDirectors of LBBW isthe­ Equal opportunitiesfor both genders andanimproved work-life balance are thecore objectives of ­seminars in2019. (Conscious Communication) seminars for women are alsocontinuing. 58women attended these kommunizieren”“Bewusst and Planning) Career and (LifeKarriere” und “Lebensplanung head).The for female group headswhocan envisage taking leadership roles atmanagement level 3­ Tried andtested methods remain inplace: For example, we are continuing withthementoring ­ and can develop theirown strengths. ­mentor-mentee tandems. Theyoung women gain aninsight into therole of specialists andmanagers ­proportion of women in demanding sales positions. The one-year program was launchedwith twelve and Private Asset Management division in Stuttgart and the region. The goal is to increase the entitled “Women Career” for young female employees withhighpotential intheRetail ­ program mentoring new a launched we 2019, October In positions. key for need they ­qualifications ­talent group was already initiated in2018withtheaimof providing female employees withthe Within the development program for top managers, a dedicated “Female Potential Top Managers” In order to increase thequota of peoplewithdisabilitiesemployed atLBBW, we report our­ % of theworkforce (previous year: 5.0 %). (department assistance, Customers honorary program current ­bodies.

Landesbank Baden-Württemberg 2019 Sustainability Report 133 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 134 Responsibility and commitment ➔ Employees ­investments andexpenses amounted to EUR122million(previous year: EUR130million). employees willreceive atleast theamountcontributed. In2019,LBBW's company retirement plan of any positive performance. If performance is negative at the settlement date, LBBW guarantees that full the receiveEmployees model. lifecycle a to according funds multi-asset two in ­invested account) (employee-financed by voluntarily converting aportionof theirgross “Aufbaukonto” compensation. Thesecontributions are an to contributions additional make can ­employees LBBW markets. the capital of performance ­employees the with annual contributions in from a “Basiskonto” (employer-financed benefits retirement account). LBBW that model fund-based a their for years thanabank?Inview of theongoing low interest planning rate environment, ourpensionsystem uses financial arranging in employees its support better could business What Company retirement planning LBBW alsosupportsemergency care services for relatives requiring care inMainz. ­subsequently returning to theiroriginalworking hours. home were ableto reduce theirworking hours onatemporary basisfor upto 24monthsbefore (“bridging part-time employment”) in2019,LBBW employees wishingto lookafter dependentsat ­prior to theintroduction of thestatutory entitlementto part-time employment onatemporary ­ and ­Shorter ­ 16 ­apply for anadditionalsixmonths'leave over andabove the statutory entitlementof sixmonths. Subject to priorconsultation withtheirmanagers, employees whocare for afamily membercan in theseminar. ­attended the­ centers. Inaddition,itprovides aforum for reaching out to other colleagues. 632­ and precautions, legal services, nursing home with dealing costs, of financing and ­insurance What Now?) seminarprovides ouremployees withanoverview of issues ­ (Care “Pflegefall, nun?” The was years.coming overthe growevenmore will members ­family In thewake of demographic change, therelevance of achieving abalance between work and­ Care of Family Members caring for olderrelatives orfamily members withdisabilitiesisbecoming increasingly important. ­children, thishasgone without sayingatLBBW for alongtimenow. Supportfor employees whoare into balance asmuchpossible withtheother half. For employees inthelife phaseof caring for Work takes uphalfof ourlives, asthey say, and we seeitasourresponsibility to bringtheonehalf Career andpersonal life mlye to lae f bec t cr fr fml mme i 21 (rvos er 21). year: (previous 2019 in member family a for care to absence of leave took ­employees increased flexibility thanks to the works agreement on mobile working (see page 136).Even page (see working mobile on agreement the works to thanks flexibility ­increased periods of leave are alsopossible. We alsoprovide furtheroptions suchas­ seminar since itsinception in2013.In201955employees (previous year: 68)participated including long-term care employees have telecommuting ­retirement Required – ­Required – ­counseling caring for ­provides ­benefit ­golden basis ­structure that suitsthem: for themselves. We provide various meansfor ouremployees to design anindividual,mobilework ­provide substantial flexibility for caring for children or other dependents or simply making some time we Because flexibly. managed see work-life balance asapriority, we be offer our employees arange of working time modelsthat to time work require policies resources human Family-oriented Flexible working arrangements family-oriented services andbenefits, as well astheculture itactively promotes. that LBBW iswell positionedwhenitcomes to enablingahealthy work-life balance interms of its on how successfully the Bank makes management positions attractive for women. The audit confirms Following successful re-audits in2013and2016,another re-audit took place in2019.This­ LBBW has been recognized as a “family-oriented company” by the “berufundfamilie” audit since 2010. through the“LBBW Einblicke” e-mailnewsletter. ­informing themabout current jobvacancies andtheprocedure for returning to work, aswell as care period. For example, Human Resources regularly keeps employees informed via an online ­measures for maintaining contact andpursuing continuing education duringtheparental leave or To make iteasier for our staff to return to work after aleave of absence, we offer avariety of ­temporary part-time employment ononeoccasion for amaximumof three years. basis (“bridgingpart-time employment”) in2019,we offered allemployees thepossibility of Even priorto theintroduction of thestatutory entitlementto part-time employment ona­ of thisoffer (previous year: 37women, three men). the leave, nosalaryispaid.In2019,23female employees andtwo maleemployees took advantage by LBBW for atleast three years previously can take aleave of absence called a“family year”. During In addition to the parental leave time guaranteed by law, mothers and fathers who were employed childcare costs are paidby theparents. “pme Familienservice”. LBBW pays thecost of theconsulting andplacement services, whilethe­ We offer allemployees anadvisoryandsupportprogram provided by athird-party service ­ West”. ­emergency childcare services withtheparent-child center atthegeneration house“Generationenhaus care options round out thisservice. InStuttgart, for example, we signedapartnership agreement for 18 places attheSavingsBanks Academy inStuttgart. Specialvacation programs and­ These Leipzig. and officesKarlsruhe, Mainz, childcare Mannheim, the Stuttgart, facilities in at is balanced to everyone's satisfaction. A total of 96 spots are offered in what are mostly LBBW's own Reliable and skilled childcare is crucial for working parents to ensure that professional and family life Childcare andother services emergency temporary provider, focused ­include actual ­portal

Landesbank Baden-Württemberg 2019 Sustainability Report 135 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 136 Responsibility and commitment ➔ Employees LBBW FlexiWertkonto an ­ the ­ ­independent team solutions. Flexible working arrangements are alsopossible withinthescope of Part-time models:Theseincludeindividual,family-friendly solutions, jobsharingoptions, and by LBBW. assuming professional andpersonal suitability andwithpriorapproval. Thecosts for thisare borne T many employees can now alsoaccess theBank's platforms from theirprivate computers andlaptops. framework for mobileworking atLBBW was drawn up. New electronic access technology meansthat employees aspossible can work from homeorwhiletraveling. Aworks agreement establishing the Mobile working: In 2018, we took decisive organizational and technical action to ensure that as many ­representatives are includedintheprocess to develop sociallyacceptable solutions. ­information andarticles.Whenchanges occur atLBBW thataffect theworkforce, theemployee ­councils andthever.di laborunionemployee group useLBBW's intranet to disseminate ­ by staff councils orwork councils. Staff meetings are heldregularly atLBBW's larger locations. Staff and at various locations inGermany. Executive staff (2.8 Currently, 93.7 ­Arbeitgeberverband Baden-Württemberg” (KAV)). are aguest memberof theBaden-Württemberg MunicipalEmployers' Association (“Kommunaler collectiveagreementsforthe public-sectorprivatebargaining(VÖB)), LBBWapplies and banks. As a member of the Federal Association of Public Banks in Germany (“Verband Öffentlicher subsidiaries are subject to the German Labor Management Relations Act (“Betriebsverfassungsgesetz”). the version dated 12March 2015forms thebasis for co-determination atLBBW. Incontrast, ­ in (“Landespersonalvertretungsgesetz”)Act Representation Employee State Baden-Württemberg The Co-determination of absence. Temporary leaveof absence: In principle, our staff have the option of taking a longer temporary leave LBBW FlexiWertkonto account to finance a temporary leave of absence. for ­ LBBW FlexiWertkonto plan. continue to becovered by statutory pensionandhealthinsurance aswell asthecompany's pension LBBW FlexiWertkonto account. Employees utilizing this option continue to be employed by LBBW and benefits. During this period, they receive their salary from the capital which they have saved in their model with which they can finance early retirement prior to the commencement of statutory pension elecommuting: Mobiletelecommuting orsetting upahometelecommuting workstation are permitted employment level of atleast 70%orajob-sharing modelisrequired. continuing education purposes,employees can alsousethecapital they have saved intheir statutory possibilities for full-andpart-time employees. For part-time management positions, offices outside Germany (2.2 Germany outside ­offices % of theLBBW Group's employees are represented by staff councils orworks ­ – earlyretirement: TheLBBW FlexiWertkonto provides ouremployees witha – sabbatical: Whether to take timeout to care for afamily memberor %), and employees at some subsidiaries (1.3 subsidiaries some at employees and %), %), local employees working atthebranches %) are not are %) ­represented ­Banken” councils LBBW's current ­We remuneration atLBBW isdetermined according to theGroup's target attainment is geared toward risk-adjusted performance asawhole. Theamountof performance-based variable performance-based variable remuneration thatcan beearned.Thismeanstheremuneration system provide anincentive to take unnecessary risks. There isnocorrelation between risk-taking andthe Group remunerationThe strategy ensures thatperformance-based variable remuneration doesnot ­attainment withaview to theemployee's position,theagreed targets, andtheduties performed. cars. Performance-based variable remuneration isbasedonquantitative andqualitative target the company pension plan, the LBBW FlexiWertkonto (working time account), and the use of are benefits remuneration-related major The benefits. and an component variable applicable, ­performance-based where and, salary fixed a comprises employees LBBW for Remuneration with local laws andregulations inallcases. ­LBBW's foreign branches andsubsidiariesfollow LBBW's domestic remuneration policy, complying collective bargaining agreement). Thisguarantees paymentexceeding statutory minimumwage. bargaining agreements for the private-sector banking industry and public-sector banks (bank- arule,As whenLBBW hires new employees, they are assigned to awage group basedonthe­ variable remuneration. ­objectives. This means that sustainability plays a significant role when it comes to performance-based to be disbursed for bonus payments is determined based on target achievement in these four key of theBoard of ManagingDirectors andemployees eligiblefor bonuses.Theamountof thebudget for sustainability) and agility, digitalization, focus, (business objectives strategic key four and risk strategy. Since 2018,performance at the LBBW Group has been measured on the basis of the for variable compensation therefore supporttheattainment of thegoals derived from the­ are implemented intheremuneration systems andprocesses atLBBW. Theremuneration ­ It isderived from thehigher-level business andriskstrategy. Thisensures thatstrategic objectives tion strategy provides the framework for the structure and implementation of remuneration guidelines for asoundremuneration policyinto Germanlaw. IntheLBBW Group, theGroup remunera- published on15February 2018.Therevision primarilytransposes theEuropean Banking­ The amended InstitutsVergV came into force on 4 August 2017, and guidelines for interpretation were ­remuneration systems isreviewed annually. this report at www.LBBW.de/finanzberichte. In accordance with InstitutsVergV, the appropriateness of the publishes (“Institutsvergütungsverordnung”Institutionsand for(InstitutsVergV)) annually Regulation tion L Remuneration system BBW (Bank)prepares aremuneration report inaccordance withSection 16of theGermanRemunera- parameters Authority's ­additional collective ­members ­company business ­systems. ­specific

Landesbank Baden-Württemberg 2019 Sustainability Report 137 Responsibility and commitment ➔ Employees Landesbank Baden-Württemberg 2019 Sustainability Report 138 Responsibility and commitment ➔ Employees supplier selection andthecareful useof resources initsbusiness operations: varied andhealthy nutritional choices. LBBW Gastro Event's sustainability approach alsoinvolves active The sixcompany restaurants operated by oursubsidiaryLBBW Gastro Event GmbHoffer ouremployees Company restaurants • • • • • • • •

people to regularly engage withhealthy nutrition thatisgood for theenvironment andtheclimate. encourage to intended is This served. is non-vegetariandish one only which at Plus” Day “Veggie monthly restaurantscompanya biggestorganizedthree have the 2019, of quarterthird the Since and 20 “Am Pariser Platz” in Stuttgart). Of these dishes, around 5 720,000 mealswere served atthetwo largest company restaurants (“Am and Hauptbahnhof” and “regional” as “organic”, labeled “vegetarian” inorder to address diners' preferences specifically andculinarytrends. In2019,atotal of around and monitored continually is served meals The the central buildingshave beenservingsolelyfair trade andorganically grown coffee since 2009. All therestaurant and cafeterias runby LBBW Gastro Event GmbHandthekitchenettes itoperates at Our fishsuppliers are aware of this topic andindicate theorigin of thefish in every shipment. certification. “Naturland” or ASC MSC, with products certified purchase we possible,Where stocks. contact.wepersonalmaintain Wearea,whom with take care nottopurchase from fish overfished The meatusedinthecompany restaurants isobtained from selected butchers inthesurrounding The food purchased orproduced intheregion isdesignated onthemenuas “From theRegion”. strain ontheenvironment. We alsotailor ourmenusto incorporate seasonalfruitandvegetables. ­producers. Thissupportslocal suppliers andalsomeansshorttransportation routes, thuseasingthe bulk of thefresh produce served ispurchased viaregional business partners andfrom regional In selecting suppliers, LBBW Gastro Event gives preference to smaller, regional providers. appetizers, maindishes,or desserts are occasionally alsooffered day.every dishes side vegetable of types different two least at as well as week, a twice In addition,themenuof theStuttgart company restaurants includes two vegetarian ­ All company restaurants offer atleast onevegetarian dishandonepork-free dishevery day. to certified organic meals. production) food organic since 2008andare audited annuallyby third parties.Thismeansaround on 70 regulation EU the to (according organic as certified been have gart Stuttin “Amlocations “Amand restaurantsPlatz” companyParisertwothe Hauptbahnhof” The at been met. back. Therequirements of theDGEqualitystandard for in-company catering were found to have ­general conditions intherestaurants, communication withdiners, andopportunitiesfor feed- The auditlooked atthequalityof food provided, mealplanningandpreparation, aswell asthe ­“Job & Fit” logo of the German Nutrition Society (“Deutsche Gesellschaft für Ernährung e. carry the to certified been restaurantshavecompany GmbH EventGastro all 2016, October Since % were vegetarian. % were wholly organic, 25 . % of diners have access % were V.” (DGE)). ­regional, dishes ­Vegan The - high quality standards and pronounced employee identification are key factors in acompany's in values andhence makingasignificant contribution to theBank's success. factors key are identification ­success. As employeepart of our corporate culture, idea management pronouncedis an important element of realizing these and standards quality high optimal products thatoffer real value addedfor ourcustomers. Innovation andprocess ­ and processes, efficient solutions, digital and sustainable,agile, create to able are we ideas, ­creative Thanks to thehighlevel of employee engagement whenitcomes to developing and­ for EUR1.1millionof thisfigure. The A our employees theopportunityto actively shapethefuture withtheirexpertise andimagination. The future requires ideas, andideasoriginate inpeople's minds.LBBW's ideamanagement gives LBBW improvement process • • • • • •

­total of 4,234 suggestions were submitted in 2019, of which 262 were classified as sustainable. ­people in the hospitality industry in order to meet the future requirements for qualified employees. fairs. Theaimisto lookfor trainees inatargeted mannerand actively promote talented young Since thestart of 2019,LBBW Gastro Event hasalsobeenrepresented atinterdisciplinary ­ ­subsequently invited to apply for anapprenticeship asachef withLBBW Gastro Event. to four trainees from Winnendencomplete aninternship atoneof theBank's restaurants andare year,Every difficulties. learning up with people and autism, with people impairments, speech and since 2015.Thecenter provides vocational training for around 300 young peoplewithhearing Winnenden in center training vocational Paulinenpflege the with worked has Event Gastro LBBW to reusable cups. Around 55,000containers usedfor food retention sampleshave beenconverted from PETplastic plastic PLA(polylactic acid),we are reducing ourPETwaste by around 12,000plastic cupsayear. By switching theto-go cupsfor cut fruitandvegetables from PETplastic to thebiodegradable bio- Organic waste from allthesites issent to biogas facilities andrecycled to produce energy. out of oursixrestaurants to ensure maximumqualityandfreshness. fresh as possible. Some dishes are prepared to order at the live cooking stations available at four Food isprepared inbatches, served continuously, andregularly replenished to ensure thatitisas resulting benefit totaled EUR 33.8 million, with sustainability-related with million, ­resulting benefit 33.8 totaled EUR suggestions accounting UE implementing excellence, training

Landesbank Baden-Württemberg 2019 Sustainability Report 139 Responsibility and commitment ➔ Employees Society

Giving joy

Every year, the Christmas trees at our ­com­pany restaurants are decorated with little cards contain­ ing gift wishes from children of underprivile­ged Festive families.­ Employees are ­invited to pick out a season card and buy the gift the child has asked for. The ­campaign is organized by LBBW's local staff Christmas campaign for councils, which hand over the lovingly ­wrapped underprivileged­ children cuddly toys, games, and other presents. The ­organizations supported in 2019 were ARCHE Karlsruhe e. V. and Kinderschutzbund Mainz e. V., as well as refugee families in Stuttgart.

Making a difference together

Every month, many of our employees round off their net salaries to the nearest euro and donate­ the amount after the decimal point to social 2,300 ­projects. EUR 47,000 has been collected for good employees causes in the first five years of this “Rest-Cent” campaign. A total of EUR 12,000 was donated participate in in 2019 alone. Topped up to EUR 17,000 from the “Rest-Cent” LBBW's central budget, this money helped the campaign­ “Herzenswünsche” organization to bring some moments of happiness to seriously ill children and young people.

Cultivating diversity

Since it was established in 1984, the ­Landesbank Baden-Württemberg Foundation has provided 11,100 ­funding totaling EUR 26 million for numerous ­projects in the fields of art and culture, training projects and further education, and nature and the environ- ment. The projects supported in 2019 included have been ­­ the literature festival of the “Bühne über Stutt- supported by the gart” open-air theater association, the addiction LBBW Foundation to date prevention week at the Fanny-Leicht-Gymnasium­ school in Stuttgart-Vaihingen, and the species ­conservation project for the parti-coloured bat organized by the conservation association NABU Ostfildern-Nellingen e. V. Landesbank Baden-Württemberg 2019 Sustainability Report 142 Responsibility and commitment ➔ Society our corporate culture. shapes society to commitment Our force. driving and a are sponsorships, we philanthropy, donations, Through initiatives. educational different many and projects civic in participate therefore We markets. corepeople our the in to obligation an have we region, our in roots with bank a As Regional, value inspiring -enhancing, Society for thebetter through respectful andconstructive cooperation. encouraging peopleto thinkahead,andupholdingthevalues of asociety thatchanges manythings ­foundations. Thisisbecause we alsoseeourselves asbeingresponsible for drivingsocietal impetus, and sponsorships, donations, our with concerns social and ecology, sports, culture, art, of fields the We alsosupporteducation inschoolswithavariety of initiatives andlendahandto projects in ­social projects, andourmanyyears of foundation experience. ­support from usintheform of sustainable investment products, ourcrowd investing platforms for Customers whowishto make acontribution to society withtheirinvestments orassets receive (Schufa)). In this way, we continue to provide people in financial crises with access to banking ­record with the general credit protection agency (“Schutzgemeinschaft für allgemeine ­everyone” onacredit basiscan beopenedby anyone, regardless of income ornegative ­ BW-Bank functions asasavingsbankintheterritory of thestate capital Stuttgart. An“account for the regional economy, to reinforce theircompetitiveness andprotect local jobs. of engine the enterprises, medium-sized and small- particular,support weIn Hamburg. and ­Bavaria, leverages growth opportunitiesinattractive economic regions such asNorthRhine-Westphalia, its ­ ­appropriate andadequate monetary andcredit services. TheLBBW Group doesbusiness ­ bank forthe central as the institution: ­savings banks, we ensure thatthepopulation,business andthepublicsector are providedas a with public-law responsibility social our fulfill to continue “Sparkassenverband Baden-Württemberg” (SavingsBanks Association of Baden-Württemberg). We Our owners are theState of Baden-Württemberg, theCityof Stuttgart, andthemunicipallyowned crop failures. To thisday, we remain deeplyconnected to thepeopleandcompanies inourregion. in Stuttgart withtheaimof alleviating thesevere famine affecting herpeople following ­ Queen Catherine of Württemberg founded ourearliest predecessor, “Württembergische Spar-Casse”, ­important social mission. And we have been living up to this mission for a good 200 years: In 1818, apublic-sectorAs bank(“Landesbank”), ourcalling isnot just about business: we alsohave an regional core markets of Baden-Württemberg, Rhineland-Palatinate, andSaxony, and­ ­Kreditsicherung” catastrophic primarily in selectively entries on ­services. haus, asapartnerin2019. StuttgartJugend- the byorganized is which Camp,Science Summer the supported again LBBWtime. a at days five of period a for questions technical and scientific explored 14 and eightbetween aged objects, mobility, underthemotto andenergy “Watch, understand, andtryfor yourself.” 200­ robotics, on focuses Camp Science Summer The technology. and sciences natural the science, mathematics, in interest an awaken to is Arena Benz Carl the at project educational week ­future intheirown experiments aswell asinworkshops andpresentations. Thepurposeof thethree- and girlsattended theSummerScience Camp, where they were ableto explore exciting topics of the when itisstanding still but not whenitisbeingridden?Can robots replace people? Around 600boys Where come doesenergy from andwhy must itbeusedsparingly?Why doesabicycle fall over Summer Science Camp took place for thethirteenth timein2019. “Kinderspielstadt gGmbH, Jugendhaus Stuttgarter by Organized initiative. the ­toward customers on behalf of the mayor – with the message that the proceeds generated would also go ­absorbing larger quantitiesof CO euro donated. Thetrees grow between twice andfour timesmore quicklythanin­ forMexico in PeninsulaYucatán the on tree one ­“Plant-for-the-Planet”plants which initiative, ­fairer, greener world. For every child who drew a symbolic BW-Bank plant, donated one euro to the bank for business andsociety. At BW-Bank's branches, theyounger generation madethecase for a the children learnedhow money circulates inacity, how to invest itwell, andthe­ business andprovided“their” guidance to thechildren attheStutengarten bankbranch. For ­ ­community. explored­ more than72different professions andbusinesses through play, ­ Bad Cannstatt equestrian stadium. Whether acting asmayor, banker, orbaker, the6- to 13- how life inacommunity works inamini-village comprising wood cabins, containers, andtents set upin During thesummerbreak from 12August to 31August 2019,another 1,500-pluschildren ­ large-scale game project for the participation of children) as apartnersince thevery ­ B Kinderspielstadt Stutengarten Learning playfully ­development of society. not only knowledge but also reinforce social skills and a sense of responsibility for the sustainable while givingschoolpupilsearlyguidance inchoosingtheircareer. Indoingso, we aimto ­ ­mandate seriously and actively help to increase young people's familiarity with the business world training aspossible isprovided. apublic-sector As bankwithregional roots, we take oursocial Investing ineducation isinvesting inthefuture –andtherewards are greatest whenas much­ Education W-Bank hasbeenactively involved in“Kinderspielstadt Stutengarten” (apedagogically ­ ­15 BW-Bank apprentices andCooperative State University students took charge of 2 . Inaddition,fair trade chocolate was handedout to thebank's young shaping theirown importance of a Germany, thus ­Stutengarten” supervised discovered beginning. ­year-olds ­computer example, practical children convey ­every ­flying

Landesbank Baden-Württemberg 2019 Sustainability Report 143 Responsibility and commitment ➔ Society Landesbank Baden-Württemberg 2019 Sustainability Report 144 Responsibility and commitment ➔ Society pno WCNM. BW a ivle i mnoig ih mme o te or o Managing of Board ­Directors, the headsof division,andother employees. of member a with mentoring in involved was LBBW WECONOMY. sponsor other highlight isaninvitation to spendtheweekend withtop managers from the15companies that ­executives as well as access to a nationwide network of more than 130 established companies. An- for oneyear. They gain theopportunity to learn from theknowledge andexperience of prominent WECONOMY competition for young company founders. The winners receive regular coaching In addition,LBBW hasbeenpromoting entrepreneurship for thepast sixyears asapartnerto the Companies includingLBBW participated innineworkshops aspartof theWissensfabrik network. from 14schoolsobtained aninsight into thelivingspaces andworking environments of thefuture. verstehen” Zukunft meine Spaß Mit UnderstandingSimple?! FutureMade DigitalMy – Digital (Simply Through Fun). Ninth-grade students einfach?! ganz digital – Digital “Einfach motto the under time On 2 July 2019, a day of action was held at the experimental science center in Heilbronn for the first school pupilsform theirown companies withtheassistance of volunteer advisors from BW-Bank. Via BW-Bank, LBBW is involved in education through the core project “School2Start-up”, in which and thereby contribute to thefuture viabilityof Germanyasalocation for business. educational institutions andentrepreneurs to improve career prospects for theyounger ­ ­promote education andentrepreneurship inGermany. Wissensfabrik's aimisto form partnerships with LBBW isamemberof “Wissensfabrik”, anationwideinitiative by companies andfoundations to Wissensfabrik –Unternehmen fürDeutschland e. Thinking entrepreneurially V. generation, ­services plcto documents. ­application to select acareer orfindinternships andtraineeships. Thisalsohelps to support teachers. part of 395 school projects throughout Baden-Württemberg, teaching themGermanandhelping the volunteer retired managers have already taken around 3,500young refugees undertheirwingas which is supported by the Baden-Württemberg Ministry of Culture, Youth and Sports. Since fall 2015, tion assistance program of theSeniorExpertService (SES:www.ses-bonn.de) atvocational schools, their place insociety, both privately andprofessionally. Withthisinmind,LBBW fundstheintegra- find can they that so opportunity training a find and German learn quickly to vital particular,is in it An active commitment to integration istheonlyway to shapethefuture together. For young refugees Senior expert service as partof theprofessional orientation camp. Thetopics covered includedaptitude tests andjob In 2019,we atourbranch again heldan“applicants' day” inMannheimfor around 20­ a corporate partner, helpingyoung peoplewiththeirprofessional orientation, amongother things. conditions for apositive personal andprofessional future. BW-Bank isinvolved inthecareers area as sports, school, careers, and social issues, thereby enabling participants to create the best possible organization non-profit the support We whole. “ a as society and life own one's living to ­approach responsible a of interest the in skills social improving thus spirit, team and self-confidence health, Sports can bethekey to achieving sustained positive changes inlife. They promote wellbeing and “Anp Opening upnew opportunities BW BW-Bank's schoolservice/partnerships witheducational institutions Training purposefully schools onaregular basis,lendingtheirexpertise to teachers andpupilsalike. BW-Bank hasanactive relationship witharound 55schools.BW-Bank employees teach atthese ­senior highschoolsprepares final-year students for entering the workforce. at abankandhelpthemto make theright career choice. Applicant training atmiddleschoolsand paths, andprovide jobapplication tips.Internships give students insights into everyday working life (such astheGermanbankingsystem, sustainability, statutory andprivate pensions),explain career and whateffects itcan have onsocialdevelopments, discuss topical issues withstudents inclass of services. In practical dialog with students, for example, Bank employees explain how finance works Anpfiff ins Leben”, which provides a full range of support for youth sports. The concept combines concept The sports. youth for support of range full a provides which Leben”, ins ­Anpfiff -Bank's schoolservice supportseducational institutions intheStuttgart area withawide­ fiff ins Leben” sportsand exercise program sportspeople variety

Landesbank Baden-Württemberg 2019 Sustainability Report 145 Responsibility and commitment ➔ Society Landesbank Baden-Württemberg 2019 Sustainability Report 146 Responsibility and commitment ➔ Society organized by ­organized leisure ­ Stuttgart” youth raised around EUR248,000for charitable projects inthepast year. are not distributed as prizes but instead are used for social purposes. In this way, PS-Sparen accounts 25 25,000. EUR to up win can theywhere draws annual special as well as draw prize grants to 137 community projects in Baden-Württemberg. Premium savers take part in a monthly In addition,thedonationsdistributed from BW-Bank premium savingsaccounts (“PS-Sparen”) ­ services andarranges tripsandexcursions. ­addition ­Europa inthepreviousEUR 919,000.As year, itsupported thegroundbreaking Streetwork project inthe In 2019,theLBBW Group assisted 360charitable institutions withtotal donationsof around to political parties,politicians,orgovernments. extended to recipients inourregional core markets. arule, As LBBW doesnot make anycontributions on social, cultural, and scientific projects. In keeping with our strong regional roots, grants are Donations are animportant partof LBBW's commitment to society. Donationsare primarilyfocused LBBW Group donations Lebenshilfe Stuttgart e. In addition,LBBW's Christmas donationof EUR30,000went to supporttheparticipation­ Mannheim, Mainz,andLeipzig received adonationof EUR5,000. rounded uptheamountto EUR25,000,meaningthateachof thehospices inStuttgart, Karlsruhe, LBBW campaign. this of result a as deleted data was gigabytes of 18,000 locations. main five Bank's no longer needed.For every gigabyte deleted, oneeuro was donated to children's hospices atthe are bank computersemployees from that their deleteits tofiles upon LBBWcalled 2019, summer In charity. viertel ­viertel activities. hasbecome As traditional, LBBW helpedpeopleinneedviatherelief campaigns to comprehensive advisory services, the organization puts people in touch with Stuttgart's two daily newspapers and the “Weihnachtsmann & Co.” & “Weihnachtsmann the and newspapers daily two ­Stuttgart's ­district of Stuttgart, where librarians from thecitylibrary andthe“Mobile­ ­organization work together to engage young people in a dialog and facilitate V., which looks after people with disabilities and their family corporate Christmas ­corporate ­supple % of the funds the of % ­members. In Jugendhilfe network of ­attractive ­typically mentary mentary funded up to EUR 17,000 from the Bank's central budget and used to support the non-profit organization organization non-profit the support to used and budget central ­Herzenswünsche, whichfulfillsthelong-held wishes of seriouslyillchildren and young people. Bank's the from 17,000 EUR to up ­initiative began (asof December 2019).Thecontributions for 2019(around EUR12,000)were ­ Some 2,300employees are now witharound taking part, EUR47,000havingbeenraised since the ­internal mediato encourage peopleto participate inthischaritable initiative. an additional contribution is made to the program from LBBW's central budget. The Bank also uses its of theirmonthlysalariesforpoint, socialprojects. Inrecognition of employees' willingness to participate, the LBBW Group have had the opportunity to contribute the“cents”, i.e. the amounts after the ­example of whichis“Kinderspielstadt Stutengarten” (seepage 143). Masters equestrian competition. We are alsoinvolved invarious community projects, onesuccessful and MannheimNationalTheater, we sponsorsportingevents includingtherenowned Stuttgart German ­particular focus onBaden-Württemberg. Inadditionto musical institutions suchasStuttgart Opera House A Sponsorship Kinderschutzbund e. councils andhandedover to two charitiessupportingchildren andyoung people–ARCHE Karlsruhe and ­employees were invited to pickout card andbuytherespective The gifts were gift. collected by the staff families. Each childwas invited to wishfor agiftworth upto roughly EUR25.LBBW andBW-Bank Karlsruhe,Mainz, Stuttgartand cardslittle with containing fromwishes gift children of under- ­ In 2019,LBBW's local staff councils again decorated theChristmas trees atthecompany restaurants in Christmas campaign supporting projects by the children's organization “Kinderlachen e. T “Rest-Cent” campaign: employee donationsby rounding off salaries he LBBW Group's “Rest-Cent” campaign turned five years old in January 2020, with the sixth edition edition sixth the with 2020, January in old years five turned campaign “Rest-Cent”Group's LBBW he s asponsor, we supportprojects andcultural institutions intheregions inwhichwe operate, witha V. inMainz–aswell asto refugee families inStuttgart. V.” Since 2015 all active ­employees of privileged privileged rounded decimal ­decimal

Landesbank Baden-Württemberg 2019 Sustainability Report 147 Responsibility and commitment ➔ Society Landesbank Baden-Württemberg 2019 Sustainability Report 148 Responsibility and commitment ➔ Society schooling andvocational training andassists withselected training andcontinuing education ­ In the field of education, training and continuing education, the foundation helps fund young the at association theater open-air ­Museum andtheHausderMusikatFruchtkasten was alsosupported. Stuttgart” über “Bühne the by ­organized piece “April 19”attheSüdufer theater inFreiburg.“Lit.Fest The Stuttgart 2019”­ featuring works by artist JoannaSchulte attheKunstverein Nürtingen gallery, andthedance ­ Play) by Theater GobelinattheSudhausinTübingen, the“Gegebenenfalls” ­ (As popular publications willalsobemadeavailable to read anddownload onthe­ foundation israising publicawareness of theissue of nature conservation. Inthefuture, themost im “Naturschutz the in publications the to Thanks Design. and Arts of University REMOKKA” (Coffee Grounds asaResource –REMOKKA)attheproduct design­ Ostfildern-Nellingen e. Ostfildern-Nellingen the Parti-coloured Bat”) species conservation project organized by the conservation foundationthe 2019, In ­medicines. Zweifarbfledermaus”die suchen supported “Wir the (“Looking for projects ­relating to protection research of theenvironment andnature, andmedicine, biology includingalternative small-scale funds it addition, In fauna. and flora domestic preserving and nature In terms of nature andtheenvironment, thefoundation participates inprojects aimedat­ ­several outstanding dissertations. Friedrich-Bödecker-Kreis Baden-Württemberg. inprevious As years, we alsoprovided grants for project to promote reading at schools in Baden-Württemberg run by the Esslingen-based ­doku ­performing andvisualarts. Theprojects supported in2019included“DieBrücke nachHaifa –­ In thearea of artandculture, thefoundation primarilysupportsmusicandliterature aswell asthe purpose of thefoundation andthefundingguidelines,can befound atwww.LBBW.de/stiftung. stream of new initiatives throughout Baden-Württemberg. Additional information, includingonthe broad aneffect aspossible, supportingyoung people, andproviding assistance for acontinuous EUR 26millionto nearly11,100projects. Theactivities of thefoundation are aimedathavingas S Foundation (Making Everything from Anything: A Journey through Literature for Children and Young Adults),Young­ and Children forLiterature through Journey A Anything: from Everything (Making the In 2019,thisincludedthedevelopment of aneducational fringe program by students on Stuttgart-Vaihingen, and “Aus allem alles machen. Eine Reise durch die Kinder- und Kinder- die durch Reise Eine machen. alles allem Stuttgart-Vaihingen,“Aus and of Tübingen, theaddiction prevention week for students attheFanny-Leicht-Gymnasium schoolin exhibitionArt) and betweenScience Machines Vinci's ­Leonardoda at the Museum of the ince itwas established in1984,theLandesbank Baden-Württemberg Foundation has­ ­­“Ex ­­­­mentarisches Licht- undSchattenspiel” (TheBridge to Haifa –ADocumentary Light and­ Machina: Leonardo da Vincis Maschinen zwischen Wissenschaft und Kunst” (Ex Machina: (Ex Kunst” und Wissenschaft zwischen Maschinen Vincis da Leonardo Machina: V. It also facilitated a degree dissertation entitled “Kaffeesatz als “Kaffeesatz entitled dissertation degree a facilitated also It V. faculty of theKarlsruhe foundation's website. Applicable) ­ ütebr State ­Württemberg Kleinen” series, the series, ­Kleinen” ­association NABU literature ­ ­Jugendliteratur” ­organization Rohstoff – ­Rohstoff ­University protecting exhibition projects. donated ­people's Shadow festival theater ein

­ ­a LBBW mainbuildings,allowing employees andvisitors to see themupclose. Numerous pieces from our art collection are exhibited at the Group head office in Stuttgart and other such asthe“Long Night of Museums2019”orourpresentations atArtCologne andArtBerlin. ­exhibitions. Works from thecollection are alsopresented to thepublicinvarying contexts atevents museums andinstitutions aspartof ourpartnerships withmuseumsorasloansfor ­ (fromBerber” 1925).Pieces from theLBBW collection are alsoondisplayatanumberof ­ presents ourloansanddonationsof works by Otto Dix,includingtheworld-famous “TheDancer Anita accessible to asmanypeoplepossible. Inthe“LBBW Otto DixRoom”, theStuttgart Art­ We believe it isoursocialresponsibility to maintain theseworks of artfor thepublicandmake them development of thecollection. andart the support who advisors high-profile of boardarts promotion, a by actions our in guided areWe events. with acquisitions, ­education 2018 art since to commitment our intensified have We but alsoincludes extensive examples of contemporary international art. The ­ Neo Rauch, Andreas Gursky, Rosemarie Trockel, Tobias Rehberger, DanielKnorr, andHito ­ Richter,Gerhard Dix, Otto as such artistsbyworksBaselitz, important Georg including contemporary art, W The LBBW collection ith more than15,000pieces, LBBW hasoneof Germany'sgreat corporate collections of modernand collection provides apithy overview of key positionsof theGermanartlandscape in­ recent ­ temporary renowned decades, decades, Museum Steyerl.

Landesbank Baden-Württemberg 2019 Sustainability Report 149 Responsibility and commitment ➔ Society Environment

Promoting electric mobility

36 charging points from the innovative ­charging management system “chargeBIG”, two ­electric Innovative charging stations each with two charging points infrastructure in front of our main entrance, and a total­ of ­32 charging points for e-bikes: At LBBW's head ­office Efficient charging in Stuttgart, we have significantly ­expanded the stations for charging infrastructure for electric vehicles in electric vehicles ­order to make it easier for our employees to switch to electric mobility and to support the City of Stuttgart’s target of climate neutrality.

Bringing the energy transition to life

We have installed five solar benches in districts of Stuttgart in order to make the transition to ­renewable energy visible and bring it to life for passers-by. Solar cells in the seating surface can Solar charge up to four smartphones simultaneously­ using green electricity via a USB connector or an benches induction field. The benches also serve as free Green electricity ­wi-fi hotspots. The partners of the pilot project for smartphones are ­BW-Bank and Stadtwerke Stuttgart. Landesbank Baden-Württemberg 2019 Sustainability Report 152 Responsibility and commitment ➔ Environment Environment we are gradually reducing ourecological footprint. operations, business our in savings systematic and innovations technical aware while also conserving resources. environmentallyThanks and to eco-friendly the is digital that way a in business do to aim We Economical, efficient, consistent on theroof of LBBW's “Am building. Hauptbahnhof” ­improvements and,not least, thework they put inthemselves suchaslookingafter thebeecolonies made a­ year, showed furtherimprovements in manyareas in2019.Once again, manyof ouremployees areas, many in our environmental performanceoptimization statement, whichwe useto document ourecological progress ­ for potential the of deal great a leveraged already have we Although Meanwhile, biodiversity criteria are anestablished standard inourfinancing review process. example. for fauna, and flora domestic preserving and nature protecting at aimed projects supports partofAs ourcontinuous commitment to thepreservation of biological diversity, theLBBW ­ and thegreatest possible resource efficiency. development by constructing acomplex of buildingsatthemainrailway station withlow emissions environmentally innovative, climate-friendly concept. energy InEsslingen, and we are contributing to sustainable urban energy-efficient highly be an with neighborhood residential constructinga to currently are example,weKonstanz,for friendly. In designed are that developments ­commercial Our real estate projects are subject to strict ecological criteria in order to ensure residential and ­For example, organic waste from ourrestaurants issentto biogas plants. office. the in separation waste traditional beyond and above materials recycle systematically We ­efficiency and conserve resources inourbusiness activities. ­employees to switch to emission-free vehicles. We are continuing to work to improve ourenergy and video ­ consumption­energy of ourbuildingsystems andIThardware inrecent years, whiletelephone and All LBBW andBW-Bank buildingsare powered solelyby hydroelectricity. We have reduced the technical and ­measures. organizational targeted through performance environmental our improve further to order in operations business our in optimization and savings for potential the analyze continuously Ensuring continuing business success alsorequires sustainable environmental action. Thisiswhy we establishing a charging infrastructure at our head office in Stuttgart, we are encouraging our are encouraging we Stuttgart, in office head our at infrastructure charging a ­establishing conferences are usedto reduce thenumberof business trips.By expanding electric ­ vital contribution through theireco-friendly, environmentally aware actions, suggestions for UE ­transformation, Foundation mobility every 1 CO haltigkeit inFinanzinstituten e. Nach- und Umweltmanagement für (“Verein Institutions Financial in Sustainability and Management based on the current VfU Indicators, the standards promulgated by the Association for used in our business operations in recent years. The calculation and presentation of our key The following tables provide anoverview of LBBW's environmental performance andthe­ Environmental performance andconsumption of resources Long-haul flights Short-haul flights (business) Road travel Train travel District heating Electricity (hydroelectric) Waste (recycled) Waste (landfill) Waste (incinerated) Drinking water Recycled paper(post-consumer) Paper The Radiative Forcing Index (RFI)isnot includedintheVfU conversion factors for airtravel. RFImeasures theamplifiedgreenhouse effect of aircraft emissions athighflight altitudes. Virgin paper, elemental chlorinefree (ECF) andtotally chlorinefree (TCF) Virgin paper(chlorine-bleached) indirect (Scope 3) direct (Scope 1) 2 conversion factors according to VfU indicators 1 (business) V.” (VfU)). (2018 update, version 1.3) ­Environmental 0.2139 kg/kWh 0.0093 kg/kWh Update 2018 ­figures are 0.6631 kg/m3 0.2115 kg/km 0.3186 kg/km 0.3300 kg/km 0.0491 kg/km 0.1899 kg/km 0.6180 kg/kg 0.5200 kg/kg 1.0820 kg/kg 1.0950 kg/kg 1.0950 kg/kg resources 0 kg/kg

Landesbank Baden-Württemberg 2019 Sustainability Report 153 Responsibility and commitment ➔ Environment Landesbank Baden-Württemberg 2019 Sustainability Report 154 Responsibility and commitment ➔ Environment Real Estate Management GmbH (formerly BW-Immobilien GmbH),andLBBW Asset ­ LBBW (Bank)incl.BW-Bank, Gastro Event GmbH,LBBW ImmobilienManagement GmbH,LBBW ­ Environmental performance andconsumption of resources to asignificant increase inthelevel usage.of heatingenergy the downtime was offset by drawing from additional heatingenergy thedistrict heatinggrid,leading center and feeds it back into the central building as heating energy. The lack of heat recovery during into thecentral building's new cooling system. Theheatpumprecovers from thermalenergy thedata resume operation untilDecember. Thisdowntime was necessary inorder to integrate theheatpump The heat pump at the “Am building Hauptbahnhof” was decommissioned in March 2019 and did not 3 2 1 mentgesellschaft mbH. Input Positions Output Energy (inkWh) Energy Waste (inkg) Emissions (inkg) Office paper Printed advertising matter (inkg) Water Transportation (inkm) Unlike inprevious years, someelectronic waste hasbeenclassified ashazardous waste since 2016because it could contain lithiumbatteries. The figures for office paper consumption in2017and2018 were incorrectly shown as toohighdue to double counting. The substances contained inthewater discharged by LBBW have noimpact onbiodiversity. The figures shown represent drinking water from thepublicsupply. Wastewater isdisposed of inthelocal sewer system; there isnodirect release into natural waters.

thereof: electricity SO PM NO CO thereof: copy paper(inkg) not adjusted for weather thereof: (district heatingenergy heating), adjusted for weather thereof: (district heatingenergy heating), thereof: paper thereof: waste recycled thereof: hazardous waste thereof: by plane thereof: by car thereof: by train 2 2 X 1 equivalents data centers, includingcooling thereof: electricity consumption – sourcesenergy (in thereof: from renewable building operation thereof: electricity consumption – (m 3 )

2 (sheets)

%) 3

104,675,953 113,723,834 15,372,000 50,746,338 41,145,788 12,632,417 50,345,079 25,475,023 62,977,496 1,941,123 1,301,659 6,493,004 9,682,264 9,299,755 238,338 246,206 810,255 233,604 41,575 15,678 12,735 2,200 2019 100

165,963,688 106,431,710 13,646,941 40,425,655 32,013,839 14,121,678 51,884,377 10,185,188 26,184,164 66,006,055 1,780,769 1,219,646 6,634,465 9,364,511 247,116 318,065 205,329 760,157 37,219 14,579 10,301 2,191 2018 100

156,242,425 113,637,191 13,774,216 42,805,372 36,961,615 15,685,092 55,146,727 10,630,953 27,435,384 70,831,819 1,946,324 1,455,263 7,385,390 9,419,041 279,100 353,823 927,003 263,561 41,568 16,245 15,913 2,390 2017 100

125,629,542 114,417,258 13,351,148 16,375,499 41,308,656 33,517,186 56,733,103 11,748,188 27,216,449 73,108,602 2,061,396 1,053,392 1,482,766 5,641,942 9,826,319 Management Invest 291,302 455,618 258,331 37,471 14,123 2,425 6,387 2016 100

Corporate 114,064,910 115,604,365 13,843,444 16,709,997 40,413,348 33,658,987 58,481,020 12,452,313 29,672,497 10,238,951 75,191,017 2,133,130 1,026,093 1,484,011 6,981,233 312,539 468,371 271,031 38,985 15,117 2,514 2,437 2015 100

- Sealed surfaces atthevalidated locations in2019 ­amounted to around 141,000kWh(estimate). in Nuremberg. In2019 theelectricity usage of theNuremberg data center attributable to LBBW InformatikCo.TechnologieKG(FI-TS)Finanz & provided the GmbH byServicebeen have data Some of theservices of theLBBW data center were outsourced inOctober 2015andsince then 2 1 Employees (FTEs) Positions Area peremployee Area (inm Stuttgart Location Mannheim ­kitchenettes andrestaurants. Area peremployee alsoincludesservice, utility andinfrastructure areas suchascorridors, reception andentryareas, data centers, training, conference andmeeting rooms, =Number of full-timeFTEs employees andpart-time employees expressed asfull-time employees. Kleiner Schlossplatz Bollwerk Königstrasse Pariser Platz Am Hauptbahnhof 2 ) 1 2 (m

2 ) 375,901 8,493 2019 44

Sealed surface 382,117 8,514 2018 14,028 m 33,189 m 45 3,000 m 7,195 m 4,761 m 9,798 m

2 2 2 2 2 2

393,742 8,796 2017 45 Share of total floorarea of location

376,088 9,233 2016 41

392,116 ­center 9,502 2015 57.8 % 19.0 % 30.0 % 39.5 % 26.6 % 38.5 % 41

Landesbank Baden-Württemberg 2019 Sustainability Report 155 Responsibility and commitment ➔ Environment Landesbank Baden-Württemberg 2019 Sustainability Report 156 Responsibility and commitment ➔ Environment Real Estate Management GmbH,andLBBW Asset Management Investmentgesellschaft mbH. L Key figures 1 CO Emissions Waste volume (inkg/employee) Waste Business travel (inkm/employee) Business travel Share recycled matter)/output paper Ratio of input (copy paper, printed advertising Printed advertising matter (inkg/employee) Paper usage (insheets/employee) Materials efficiency Copy paper(inkg/employee) Ratio of input (drinkingwater)/output (wastewater) (in kWh/employee) usage,Heating energy not adjusted for weather Water usage (inliters/employee/day) Water (in kWh/employee) usage inadjustedHeating energy for weather (in KWh/m usage,Heating energy adjusted for weather (in kWh/m usage,Heating energy not adjusted for weather Electricity consumption (inkWh/employee) Electricity consumption excl. data centers (inkWh/m Electricity consumption incl.data centers (inkWh/m Energy efficiency CO (in kg/employee) BBW (Bank) incl. BW-Bank, Gastro Event GmbH, LBBW Immobilien Management GmbH, LBBW Corporate for CO The VfU conversion factor for airtravel increased inthecourse of the2018update. Ahigherconversion factor was alsoappliedfor rail travel for 2018. Accordingly, thefigures Printed advertising matter (in Copy paper(in 2 2 emissions from travel emissions from electricity, heating 2 emissions from travel alsoincreased in2018. 2 2 ) ) %) 1 (inkg/employee) %)

2 2 ) ) 12,326 2019 3,000 5,975 4,845 7,416 1,105 229 112 135 109 134 168 577 0.6 77 28 29 6 1

19,494 2018 3,076 4,748 3,760 7,753 209 116 106 136 173 598 876 0.7 78 24 37 84 6 1

17,762 2017 3,119 4,866 4,202 8,052 221 127 109 140 180 539 893 0.7 24 76 30 40 94 1

13,607 2016 2,948 4,474 3,630 7,918 223 126 110 194 152 520 781 0.7 11 81 28 49 89 1

12,004 2015 3,123 4,253 3,542 7,913 224 132 103 192 149 543 764 0.7 12 84 29 49 86 1 and organizational optimization. compared with2009)andare continuously working to furtherreduce CO been supplied with hydroelectricity since 2009. This resulted in savings of over 50 over of savings in been supplied with hydroelectricity resulted since 2009. This working to continually reduce our carbon footprint. All of LBBW and BW-Bank's office buildings have CO The level of CO over 25 CO in rise sharp a to hence and consumed energy heating of amount the in increase significant a to downtime was offset by drawing from additional heating energy the district heating grid, leading the during recovery heat of and feeds it lack back into the central building as heating energy. The ­central building's new cooling system. Theheatpumprecovers from thermalenergy thedata center until December 2019.Thisdowntime was necessary inorder to integrate theheatpumpinto the the “Am buildingwas Hauptbahnhof” decommissioned inMarch 2019anddidnot resume ­ We currently expect to achieve ourCO Real Estate Management GmbH,andLBBW Asset Management Investmentgesellschaft mbH. L CO Carbon dioxide (CO CO 2019 2018 2017 2016 2015 … 2009 BBW (Bank)incl.BW-Bank, Gastro Event GmbH,LBBW ImmobilienManagement GmbH,LBBW Corporate 2 2 2 2 emissions in2009compared withtheprevious year. Inaddition,CO equivalents emissions ­emissions. % between 2009and2018thanks to technical andorganizational optimization. 2 emissions increased in2019. Amongother things,thiswas because theheatpumpat 2 ) istheonlygreenhouse gas produced atLBBW inrelevant quantities.We are 2 target for 2020(minus25 ­figures (in kg) 15,372,000 13,646,941 13,774,216 13,351,148 13,843,444 18,347,711 Absolute % interms of absolute CO

2 emissions through ­ Percentage year 2009 2 ­compared­ with base emissions were cut by change 16.2 % – 25.6 % – 24.9 % – 27.2 % – 24.5 % –

­

% in absolute absolute in % Relative figures (per employee) 2

­emissions operation technical 1,806 1,602 1,566 1,446 1,457 1,798

Landesbank Baden-Württemberg 2019 Sustainability Report 157 Responsibility and commitment ➔ Environment

Umwelt

➔

CO2-Emissionen absolut und relativ pro Mitarbeiter/-in CO2 emissions in absolute fi gures and relative fi gures per employee kg/ kg employee 30,000,000 3,000 Verantwortung und Engagement und Engagement Verantwortung 20,000,000 1,810 2,000 1,566 1,602 Responsibility and commitment ➔ Environment and commitment Responsibility 1,457 1,446

10,000,000 1,000

0

Year kg kg/employee

1 1

158 CO2-Emissionen 2019 – Aufteilung nach Emissionsquellen 158 CO2 emissions in 2019 – breakdown by source of emissions

Electricity (3.81 %)

Heating (57.25 %)

Transportation (31.86 %)

Paper (3.40 %)

Waste (2.57 %)

Water (1.03 %)

Diesel for emergency generator (0.08 %) Württemberg 2019 Württemberg

-

1 Seit All 2009of LBBW beziehen and BW-Bank's sämtliche Geschäftsgebäude offi ce buildings derhave LBBW been undsupplied der BW with-Bank hydroelectricity Strom aus Wasserkraft. since 2009. Der AnteilThe share des Stromsof CO2 emissionsan den CO 2-Emissionen der LBBW ist daher relativ gering. accounted for by electricity at LBBW is therefore relatively low. andesbank Baden andesbank Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

1 protocol Categorization of sources of emissions inaccordance withthegreenhouse gas (GHG) “Emissions from investments” are alsorelevant for All emissions induced by theactivities of thecompany but arising All emissions arisingfrom theprovision of for energy acompany, All emissions thatare directly caused orcan becontrolled by are generated by theexternal utility. the company, e.g. through thecombustion of fossil fuelsorthe operation of itsown fleet. employees' travel to work; business tripsby rail, taxi, airplane, or or through theuse of products, for example. Other examples: elsewhere. Thisincludesemissions arisingalongthesupply chain e.g. thedelivery of electricity ordistrict Theemissions heating. rental vehicle; paperconsumption; water consumption. Scope the financial segment. the financialsegment. Scope 2 Scope 3 Scope 1 Conversion factors according to VfU indicators (2018update, version 1.3). (2019 data)

Car (rental cars, taxis, andLBBW employees' Own vehicles (fleet, department, company,Own vehicles department, (fleet, Pariser PlatzandBollwerk: 11,907kg CO and service vehicles): 1,723,923CO Diesel for emergency generator at private cars): 1,420,400CO Copy paper:267,131kg CO Printed advertising matter: Electricity: 585,691kg CO Heating/district heating: Source of emissions Waste: 395,189kg CO Water: 158,042kg CO Air: 1,296,404kg CO Rail: 456,618kg CO 8,801,084 kg CO 255,611 kg CO

2 1 2 2 2 2 2 2 2 2 2 2

See “Customers” (page 110).

4,249,395 kg CO 1,735,830 kg CO 9,386,775 kg CO Total

1 2 2 2

Landesbank Baden-Württemberg 2019 Sustainability Report 159 Responsibility and commitment ➔ Environment Landesbank Baden-Württemberg 2019 Sustainability Report 160 Responsibility and commitment ➔ Environment Air pollutants ­leakages were fixed andthe systems filled accordingly. of 26kg, 180kg and31 kg respectively in2019.Thisprimarilyrelated to thecoolant R134a.The coolant experienced the 11 Schlossplatz Kleiner locations, and Platz Pariser EMAS-certified 2, Hauptbahnhof Am the buildings Among leaks. for regularly checked are systems cooling LBBW's 1 Business travel by plane(long-distances) Business travel by plane(long-distances) Business travel by plane(short-distances) Business travel by plane(short-distances) Business travel by train Business travel by train Heating energy Heating energy Business travel by car (diesel) Business travel by car (diesel) 2019 Air pollutants (kg/employee) Total airpollutants (kg) Electricity Business travel by car (gasoline) Air pollutants (kg/employee) Total airpollutants (kg) Electricity Business travel by car (gasoline) 2018 Conversion factors inaccordance withGEMIS2004. 1 41,145,788 32,013,839 62,977,496 66,006,055 3,558,644 3,621,077 2,934,360 3,013,388 9,299,755 9,364,511 6,060,197 6,823,528 3,622,067 3,361,660 kWh kWh km km SO SO SO SO 2 2 2 2 15,678 14,579 (inkg) (inkg) (inkg) (inkg) 2,426 2,469 3,006 3,087 1,088 1,095 6,311 4,910 1,369 1,541 1.85 1.71 873 915 606 562

NO NO NO NO X X X X 41,575 37,219 (inkg) (inkg) (inkg) (inkg) 22,505 17,510 3,119 3,173 4,575 4,698 1,242 1,251 2,771 3,120 5,268 2,094 5,522 1,944 4.90 4.37

Dust (inkg) Dust (inkg) Dust (inkg) Dust (inkg) ­losses 2,200 2,191 1,036 0.26 0.26 499 388 441 497 989 47 48 60 62 96 96 69 64 4 3 2 1 ­equipment orcomponents. systems,replacingrefurbishingefficient processes or general,takewhen use careweto and In primarily onthesebuildings. concentrate therefore we measures, efficiency energy introducing and potential savings ­identifying Our central buildings are responsible for the majority of LBBW's total usage. energy In terms of financial potential. Cuttingheating. backontheseexpenses holds not onlyenormousenvironmental potential but also LBBW's billtotals annualenergy approximately EUR11.7millionfor electricity andEUR4millionfor usedinfacilityEnergy management Stuttgart Mannheim Mainz Branches andother administrative buildings Total Leipzig Karlsruhe (kWh perbuilding) Electricity usage inabsolute figures As onlyasmallpartofAs the buildinginKronprinzstrasse 8isinuse, theconsumption figures have beenallocated to branches and other administrative buildingssince 2014. The emergency generators atthePariser PlatzandBollwerk buildingsare tested monthly. Usage amountsto around 3,500liters of dieselperyear. The buildinginLeipzig was partially converted in2018,leadingto reduced usage. The employees inLeipzig moved to adifferent buildingin2016,meaningthatspace isnolonger used. Pariser Bollwerk Am Hauptbahnhof Kronprinzstrasse 8 Königstrasse Kleiner Schlossplatz thereof: buildingoperations thereof: data center thereof: data center thereof: buildingoperations 1, 2

Platz 3 3 4 62,977,496 22,469,281 16,281,669 11,555,950 1,543,285 2,613,417 6,187,612 4,016,980 6,792,779 9,201,750 3,381,586 6,444,805 5,111,145 453,982 948,486 2019 –

66,006,055 26,042,487 18,819,499 11,474,829 1,459,320 2,762,304 7,222,988 4,197,068 7,208,558 7,995,782 3,409,606 6,898,690 4,576,139 1,025,015 431,086 2018 –

70,831,819 29,787,577 21,779,776 11,688,896 1,461,222 2,734,142 8,007,801 3,957,425 6,732,630 9,271,121 3,588,904 7,677,291 4,011,605 620,294 989,608 2017 – 73,108,602 29,799,688 21,325,943 10,981,137 11,716,050 1,487,039 2,803,235 8,473,745 4,551,335 6,858,431 3,447,867 7,901,754 3,814,296 1,044,143 419,677 2016 –

75,191,017 31,836,522 22,792,418 11,733,954 2,051,670 2,841,525 1,172,712 9,044,104 4,381,889 7,218,457 9,439,179 3,431,498 7,665,893 4,068,061 1,083,611 2015 –

Landesbank Baden-Württemberg 2019 Sustainability Report 161 Responsibility and commitment ➔ Environment

Umwelt Umwelt

➔ ➔

2019 2018 2017 2016 2015 StromverbrauchElectricityStromverbrauch usage absolut absolutin absolute und und relativfirelativ gures StromverbrauElectricity usagechch absolutinabsolut absolute und und firelativ relativ gures Electricity usage Incl. Excl. Incl. Excl. Incl. Excl. Incl. Excl. Incl. Excl. (proand(pro Mitarbeiter/ relativeMitarbeiter/ fi gures-in)-in) (per employee) (proand relativemm²²)) fi gures (per m²) in relative fi gures data data data data data data data data data data (kWh/m2 per building) centers 1 centers centers 1 centers centers 1 centers centers 1 centers centers 1 centers kWh/ Karlsruhe – 55 – 60 – 58 – 61 – 69 kWh employee kWh kWh/m2 Leipzig – 92 – 87 – 125 – 85 – 101 100,000,000 10,000 100,000,000 Mainz – 84 – 89 – 88 – 165 – 84 7,913 7,918 8,052 7,753

7,416 und Engagement Verantwortung 80,000,000 8,000 80,000,000 und Engagement Verantwortung Mannheim – 91 – 86 – 86 – 88 – 121 Responsibility and commitment ➔ Environment and commitment Responsibility ➔ Environment and commitment Responsibility 60,000,000 6,000 60,000,000 Stuttgart

Am Hauptbahnhof 262 192 302 223 337 252 337 246 360 258 40,000,000 4,000 40,000,000

Pariser Platz – 129 – 136 – 127 – 130 – 137 20,000,000 2,000 20,000,000 Königstrasse – 333 – 348 – 328 – 377 – 369 0 0 0 Kronprinzstrasse 8 2 – – – – – – – – –

Bollwerk 482 233 478 208 487 175 488 166 489 170 Year Year Kleiner Schlossplatz – 214 – 216 – 227 – 218 – 217 kWh kWh/employee kWh kWh/m2 Branches and other

administrative buildings – 80 – – – 71 – 86 – 78

Weighted average 168 134 173 136 180 140 194 152 192 149 1 The data centers are located in the Am Hauptbahnhof and Bollwerk buildings. 2 As only a small part of the building in Kronprinzstrasse 8 is in use, the consumption fi gures have been allocated to branches and other administrative buildings since 2014.

162 163 163 163

2019 2018 2017 2016 2015 2017 2016 2015 Heating energy usage in absolute fi gures Adjusted for Adjusted for 2017 Adjusted for 2016 Adjusted for 2015 Adjusted for witterungs- witterungs- witterungs- (kWh per building) 1 Usage weather Usage weather Usage weather Usage weather Usage weather Verbrauchswert bereinigterwitterungs Wert- Verbrauchswert bereinigterwitterungs Wert- Verbrauchswert bereinigterwitterungs Wert - Karlsruhe 583,190 758,147 639,720 863,622 624,050 767,582 624,050 836,227 576,850 732,600 Verbrauchswert624.050 bereinigter767.582 Wert Verbrauchswert624.050 bereinigter836.227 Wert Verbrauchswert576.850 bereinigter732.600 Wert Leipzig 446,857 527,291 566,679 668,680 540,875 600,371 517,617 615,964 861,388 973,368 624.050540.875 767.582600.371 624.050517.617 615.964836.227 861.388576.850 973.368732.600 Mainz 3,918,960 5,094,648 3,898,250 5,145,689 3,468,427 4,266,165 1,612,015 2,031,139 3,227,979 4,067,253 3.468.427540.875 4.266.165600.371 1.612.015517.617 2.031.139615.964 3.227.979861.388 4.067.253973.368 Mannheim 1,288,188 1,687,526 1,663,870 2,246,224 1,663,869 2,063,198 1,445,153 1,835,345 1,414,855 1,796,866 3.468.4271.663.869 4.266.1652.063.198 1.612.0151.445.153 1.835.3452.031.139 1.414.8553.227.979 1.796.8664.067.253

Stuttgart 1.663.869 2.063.198 1.445.153 1.835.345 1.414.855 1.796.866

2019 Württemberg - Am Hauptbahnhof 11,493,476 14,251,910 5,816,403 7,386,831 6,200,840 7,254,983 6,370,449 8,026,766 5,199,617 6,343,533 6.200.840 7.254.983 6.370.449 8.026.766 5.199.617 6.343.533 2019 Württemberg - den 2 Pariser Platz 5,113,380 6,340,591 3,581,130 4,548,035 6.200.8404,873,6304.873.630 5,702,1477.254.9835.702.147 4,480,8266.370.4494.480.826 5,645,8415.645.8418.026.766 4,680,6104.680.6105.199.617 5,710,3445.710.3446.343.533 den Königstrasse 2,108,737 2,614,833 1,551,721 1,970,685 4.873.6301,924,9301.924.930 2,252,1685.702.1472.252.168 1,793,4604.480.8261.793.460 2,259,7602.259.7605.645.841 1,993,8341.993.8344.680.610 2,432,4772.432.4775.710.344

Kronprinzstrasse 8 3 – – – – 1.924.930– – 2.252.168–– 1.793.460–– 2.259.760–– 1.993.834–– 2.432.477––

Bollwerk 2,648,436 3,257,575 2,150,370 2,709,466 2,905,3142.905.314– 3,370,1643.370.164– 2,539,6942.539.694– 3,174,6183.174.618– 2,654,5832.654.583 – 3,212,0463.212.046 –

Kleiner Schlossplatz 2,395,267 2,970,131 1,898,769 2,411,436 2.905.3141,969,7771.969.777 2,304,6393.370.1642.304.639 1,923,3842.539.6941.923.384 2,423,4642.423.4643.174.618 1,710,8471.710.8472.654.583 2,087,2332.087.2333.212.046 12.789.903 14.223.955 12.210.538 14.459.532 11.338.424 13.057.628 Branches and other administrative buildings 11,149,297 13,243,686 10,246,926 12,474,987 12,789,9031.969.777 14,223,9552.304.639 12,210,5381.923.384 14,459,5322.423.464 11,338,4241.710.847 13,057,6282.087.233

Total 41,145,791 50,746,341 32,013,838 40,425,655 36,961,61512.789.90336.961.615 42,805,37214.223.95542.805.372 33,517,18612.210.53833.517.186 41,308,65641.308.65614.459.532 33,658,98733.658.98711.338.424 40,413,34840.413.34813.057.628

1 LBBW's central buildings are supplied with district heating. 36.961.615 42.805.372 33.517.186 41.308.656 33.658.987 40.413.348 2 The increase in heating energy was due to the heat pump being shut down. 3 As only a small part of the building in Kronprinzstrasse 8 is in use, the consumption fi gures have been allocated to branches and other administrative buildings since 2014.

Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Report 2019 Sustainability Baden-Württemberg Landesbank Ba Landesbank der Nachhaltigkeitsbericht

Nachhaltigkeitsbericht der Landesbank Ba Landesbank der Nachhaltigkeitsbericht

Umwelt

➔ agement 2019 2018 2017 2016 2015

Heating energy 2019 2018 2017 2016 2015 usage in relative Adjusted Adjusted Adjusted Adjusted Adjusted Heizenergiefi gures- (kWh/m2 witterungs- for witterungs- for witterungs-for witterungsfor- witterungsfor - verbrauchper building) Ver- Usagebereinigterweather Ver- Usagebereinigterweather VerUsage- bereinigterweather VerUsage- bereinigterweather UsageVer- bereinigterweather relativ; in kWh/m2 brauchs- Verbrauchs- brauchs- Verbrauchs- brauchs- Verbrauchs- brauchs- Verbrauchs- brauchs- Verbrauchs- pro GebäudeKarlsruhe wert 34 wert 44 wert 37 wert 51 wert 36 wert45 wert 36 wert49 wert37 wert47

KarlsruheLeipzig 34 90 44 106 37 114 51 135 36 109 45121 36104 12449 3774 8447

Leipzig Mainz 90 126 106 163 114 126 135 166 109 112 121137 104 95 124120 7495 12084 Verantwortung und Eng Verantwortung Responsibility and commitment ➔ Environment and commitment Responsibility Mainz Mannheim 126 76 163 99 126 98 166 132 112 98 137122 95 85 120108 9583 106120

Mannheim 76 99 98 132 98 122 85 108 83 106 Stuttgart

Stuttgart Am Hauptbahnhof 134 166 68 86 70 82 72 91 59 72 Am Hauptbahnhof 134 166 68 86 70 82 72 91 59 72 Pariser Platz 97 120 68 86 92 108 85 107 89 108 Pariser Platz 97 120 68 86 92 108 85 107 89 108 Königstrasse 175 217 129 163 160 187 149 187 168 205 Königstraße 175 217 129 163 160 187 149 187 168 205 Kronprinzstrasse 8 1 – – – – – – – – – 1 Kronprinzstraße 8 1 – – – – – – – – – 1

BollwerkBollwerk 110 110 136 136 90 90 113 113 121 121 141141 106106 132132 111111 134134

Kleiner Kleiner SchlossplatzSchlossplatz 151 151 188 188 120 120 152 152 125 125 146146 122122 153153 108108 132132

Filialen undBranches sonstige and other Verwaltungsgebäudeadministrative 97 115 85 103 98 109 96 114 94 108 buildings 97 115 85 103 98 109 96 114 94 108 Gewichteter MittelwertWeighted average 109 109 135 135 84 84 106 106 94 94 109109 89 89 110110 8686 103103

164 1 Da nur 1noch As wenige only a Flächensmall part der of »Kronprinzstraße the building in 8«Kronprinzstrasse genutzt werden, 8 wird is in der use, Verbrauch the consumption seit 2014 fi den gures Filialen have und been sonstigen allocated Verwaltungsgebäuden to branches and other zugerechnet. administrative buildings since 2014. 164

Heating energy usage in absolute fi gures andVerbrauch relative Heizenergie fi gures per absolut m² und relativ pro m2

kWh kWh/m2

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000 Württemberg 2019 Württemberg - 0 Baden Year

kWh kWh/m2 andesbank andesbank Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

• • • • The following projects to reduce usage were energy amongthosecontinued orstarted in2019: usageIT energy

Printer consolidation: printer consolidation andremoval of printers thatare nolonger required Quicker provisioning concepts for systems: Provisioning currently takes several months,­ cant increase inserver virtualization (23 signifi- centersa accompaniedbydata two tothree from Consolidation centerconsolidation: Data ­unused, unneeded,andsuccessfully migrated systems. required anddetermining whether systems can bemigrated to another system. Deactivation of System deactivation: Identifying systems that are no longer used or whose functions are no ­reduces theduration of thetest phase, andhence consumption. energy that test systems often continue to runwithout interruption, for example. Quicker provisioning %) meaning ­longer

Landesbank Baden-Württemberg 2019 Sustainability Report 165 Responsibility and commitment ➔ Environment Landesbank Baden-Württemberg 2019 Sustainability Report 166 Responsibility and commitment ➔ Environment The following conclusions were drawn: potential for savingswere energy identifiedatthelocations audited: partofAs auditinaccordance the2019energy withDINEN16247-1,thefollowing areas withthe number of printers andfaxes atalllocations. in Stuttgart, planningwork for theintroduction of data andareduction energy management, inthe Examples includetherenovation of theventilation control system attheAmHauptbahnhof 2building Measures (EDL-G) was conducted in2015/16.Measures were implemented andplannedasaresult. Efficiency Energy Other and Services Energy On Act German accordancethe in with audit initial The Results of audit theenergy • • • • • • • • • • • IT Lighting Cooling

Building shell Heat consumers Water heating Ventilation systems ­deviations andfaults duringtheyear are identifiedinatimelymannersothatthey can be resolved. track continuous monitoring viaKPIsandconsumption data, asthisistheonlyway to ensure that organization of areas and data collection andanalysis. Oneobjective inthisarea the shouldbeto expand andsystematically in improvement for potential was there that transpired it Furthermore, can positively influence energy consumption regularly and to agreater extent. In additionto thetechnical measures, employees shouldbeinformed about theways inwhichthey applicable, theshutdown of ITdevices atsomelocations. analysisThe of profileload data need the identified to re-examine the system controls where and, dataEnergy management

Umwelt

➔

PaperPapierverbrauch usage

We take care to economize and be effi cient when using paper and ensure that the paper we use is Wir achten auf eine sparsame und effiziente Verwendung sowie die nachhaltige Qualität von Papier. sustainable. As a rule, we do not use any paper containing pulp from tropical wood. In accordance Grundsätzlich verwenden wir kein Papier, dessen Zellstoff aus Tropenholz stammt. Sämtliche Papiere with the “Sustainable Procurement and Contract Award” work instruction, all paper and printed matter und Drucksachen sollen laut der Arbeitsanweisung »Nachhaltige Beschaffungen und Auftragsverga- must contain the greatest possible percentage of recycled material. If recycled paper cannot be used, ben« über einen möglichst hohen Anteil an Recyclingfasern verfügen. Ist der Einsatz von Recycling- we prefer FSC-certifi ed paper from sustainable forests. und Engagement Verantwortung papier nicht möglich, bevorzugen wir FSC-zertifiziertes Papier aus nachhaltiger Forstwirtschaft.

Since 2017, LBBW has taken part in the “CEOs bekennen Farbe” (CEOs Show Their Colors) resource ➔ Environment and commitment Responsibility Die LBBW engagiert sich seit 2017 bei der Ressourcenschutzkampagne »CEOs bekennen Farbe« der protection campaign run by Initiative Pro Recyclingpapier. The public statement by the Chairman of Initiative Pro Recyclingpapier. Mit dem öffentlichen Statement des LBBW-Vorstandsvorsitzenden wol- LBBW's Board of Managing Directors is also intended to encourage other companies to switch to Blue len wir auch andere Unternehmen dazu motivieren, auf Recyclingpapier mit dem Umweltzeichen Angel-certifi ed recycled paper. The cooperation partners of the initiative are the German Federal Blauer Engel umzusteigen. Kooperationspartner der Initiative sind das Bundesumweltministerium, die Ministry for the Environment, the German Association for the Club of Rome, and the conservation Deutsche Gesellschaft Club of Rome und der Naturschutzbund Deutschland. Der Anteil des von uns association Naturschutzbund Deutschland. In 2019, the share of recycled copy paper used was around verwendeten Recyclingpapiers lag bei Kopierpapieren im Jahr 2019 bei rund 77 % (Vorjahr: ca. 78 %). 77 % (previous year: approx. 78 %).

Recycling rate for copy paper

10.8

18.6 22.2 5.7 23.7 23.0 167 167

83.5 81.4 76.3 77.8 77.0

Year

Recycled Non-chlorine bleached Chlorine-bleached

WeAußerdem are also arbeiten working wir continuously stetig daran, to unserenreduce our Verbrauch paper consumption. an Papier zu To reduzieren. date, many Bislang of our haben employees viele haveunserer printed Beschäftigten out mails Mails and und faxes Faxe, in z.connection B. im Kundengeschäft with customer oder business bei Aufträgen, or orders ausgedruckt and scanned und Württemberg 2019 Württemberg themzusammen together mit withden Briefenthe letters nach when der Bearbeitungarchiving correspondence eingescannt, um after den processing Schriftverkehr is complete. zu archivieren. To save - paper Um Papier and time,und Zeit we zuare sparen, introducing führen the wir document im Zuge unserermanagement Digitalisierungsstrategie system Doxis4 as part das Dokumenten-of our digita- lizationmanagement strategy.-System This Doxis4allows ein,documents mit dem to Dokumente be forwarded elektronisch electronically weitergeleitet and processed und digital digitally. bearbei- The pilottet werden project können. began inDer November Pilotbetrieb 2018 startete and the im BankNovember Services 2018, division zwischenzeitlich has since been wurde switched bereits over der completely.Bereich Bankbetrieb The roll- out vollständig to additional umgestellt. departments Die Einführung and divisions in ofweiteren the Bank Abteilungen is in progress. und TheBereichen paper- lessder Bankprocesses läuft. enable Durch processingdie papierlosen from anyProzess locatione ist einewith standortunabhängigea high degree of process Bearbeitung security, whilebei hoher also

reducingProzesssicherheit the processing möglich. time Gleichzeitig and increasing verkürzt customer sich die satisfaction. Bearbeitungszeit und die Kundenzufrieden- Baden andesbank heit steigt. Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank

Umwelt

Umwelt

➔ ➔

BüropapiereOffi ce paper absolutin absolute und firelativ gures and relative fi gures ((perpro Mitarbeiter/employee) -in)

Sheets/ Sheets employee

300,000,000 30,000 Verantwortung und Engagement und Engagement Verantwortung

Verantwortung und Engagement und Engagement Verantwortung 250,000,000 25,000 19,494

Responsibility and commitment ➔ Environment and commitment Responsibility 200,000,000 17,762 20,000 13,607 150,000,000 12,004 12,326 15,000

100,000,000 10,000

50,000,000 5,000

0 0

Year

Offi ce paper (sheets) Sheets/employee

Since 1 September 2013, offi ce paper has been purchased to some extent by the IT service provider Seit 1. September 2013 werden Büropapiere teilweise nicht mehr von der LBBW selbst, sondern durch denFinanz IT- DienstleisterInformatik Technologie Finanz Informatik Service Technologie(FI-TS) rather Service than by (FI LBBW-TS) beschafft. itself. This Dieser paper Papierverbrauch usage was not

den IT-Dienstleister Finanz Informatik Technologie Service (FI-TS) beschafft. Dieser Papierverbrauch included in the LBBW environmental performance statement in 2013, 2014, and 2015. From 2016 war in den Jahren 2013 bis 2015 in der LBBW-Umweltbilanz nicht enthalten. Ab 2016 wird in der 168

168 Umweltbilanzonward, the environmental auch der Papierverbrauch performance derstatement FI-TS mit also aus containsgewiesen. the paper usage of FI-TS.

168 Umweltbilanz auch der Papierverbrauch der FI-TS mit ausgewiesen.

PrintedWerbedrucksachen advertising absolutmatter inund absolute relativ fi gures and relative fi gures (per(pro employee)Mitarbeiter/-in)

kg/

kg employee

700,000

600,000

500,000

400,000

300,000 Württemberg 2019 Württemberg - Württemberg 2019 Württemberg 200,000 - 100,000

Baden 0 Baden

Year andesbank andesbank andesbank andesbank Printed advertising matter in kg kg/employee

Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

Umwelt

➔

Verkehr Transportation

Banking ist im Wesentlichen ein persönliches Geschäft, das auf dem direkten Kontakt von Mensch zu und Engagement Verantwortung BankingMensch basiert.is essentially Unsere a personalMitarbeiterinnen business thatund isMitarbeiter based on directsind dahercontact häufig between unterwegs, people. Thisum imis whyGe- ourspräch employees mit Kundinnen are often und on Kunden the road, vor developing Ort eine füroptimal diese solutions optimale in Lösung dialog zuwith entwic customerskeln oder on sitemit Responsibility and commitment ➔ Environment and commitment Responsibility orKolleginnen working with und colleaguesKollegen anderer from other Standorte offi ces. zusammenzuarbeiten. Trips to seminars and Als conferences Dienstreise aszählen well zudemas between die LBBW'sFahrten variouszu Seminaren buildings und are Tagungen also considered sowie zwischen business den travel. verschiedenen Dienstgebäuden der LBBW.

WhenBei der choosing Wahl des Verkehrsmittelsa mode of transportation, sowie der Reiseplanun and planningg und and-durchführung taking trips, wird environmental neben dem ökonomischen issues are considered Aspekt auch deralong Umweltgedanke with fi nancial berücksichtigt. concerns. LBBW'sSo ist laut travel Reiseordnung rules require der LBBW that die public Nutzung transportation von öffent- (Deutschelichen Verkehrsmitteln Bahn, local public(Deutsche transportation) Bahn, öffentlicher be given Personennahverkehr) precedence over dentravel Reisen/Fahrten by air, car, or per taxi. Flug, Before Pkw planningund Taxi vorzuziehen.a business trip,Ferner employees ist vor Planung must alsoeiner determine Dienstreise whether zu überprüfen, the purpose ob der ofReisezweck the trip can auch also im beWege achieved einer Telefon using- telephonebzw. Videokonferenz or video conferencing. erreichbar ist. Since Seit 2019 2019, steht the dervideo Video concierge Concierge service, Service, which eine providespersönliche expert und kompetente personal advice Beratung on planning rund um anddie Planung conducting und videoDurchführung conferences, von Videokonferenzen, has been available allen to allBeschäftigten employees standort regardless- und of geräteunabhängig location or the device offen. used.

Business travel in absolute fi gures and relative fi gures Dienstreiseverkehr absolut und relativ (per(pro employee)Mitarbeiter/-in) 169

km/ 169 km employee 40,000,000 4,000 35,000,000 3,123 2,948 3,119 3,076 3,000 3,500 30,000,000 3,000 25,000,000 2,500 20,000,000 2,000 15,000,000 1,500

10,000,000 1,000 5,000,000 500 0 0

Year km km/employee

2019 Württemberg - Die Summe der Dienstreisekilometer (absolut 2019: 25.475.023 km) hat sich um knapp 3 % verringert In(Vorjahr: absolute 26.184.164 terms, the km). number Relativ of prokilometers Mitarbeiter/ traveled-in wurden for business durchschnittlich purposes declined3.000 km by zurückgelegt almost 3 % year-on-year(Vorjahr: 3.076 (2019: km)1. 25,475,023 km; previous year: 26,184,164 km). An average of 3,000 km was traveled per employee (previous year: 3,076 km)1.

andesbank Baden andesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

Report 2019 Sustainability Baden-Württemberg Landesbank

Umwelt

➔

Kilometers traveled by form of transportation

34.5 36.1 34.3 35.8 36.5 Verantwortung und Engagement und Engagement Verantwortung

42 43.2 38.7 38.9 38.0 Responsibility and commitment ➔ Environment and commitment Responsibility

26.9 23.5 20.7 25.3 25.5

Year

Air Car Rail

TheBei Betrachtungbreakdown byder form Verkehrsmittelwahl of transportation zeigt has sichbeen seit relatively Jahren stableeine relativ for a numberstabile Verteilung: of years. Car Mit travel 38,0 % accountswurden die for meisten the largest Dienstreisekilometer proportion of kilometers mit PKW traveled zurückgelegt, for business gefolgt purposesvon der Bahn at 38.0 mit %, 36 followed,5 %. by rail at 36.5 %. Unsere PKW-Flotte aus Dienstwagen, Firmenwagen, Abteilungs- und Poolfahrzeugen umfasste Ende 2019 467 Fahrzeuge (Vorjahr: 517 Fahrzeuge). 26 Fahrzeuge haben einen Elektro- bzw. Hybridantrieb The total number of service, company, departmental, and pool vehicles was 467 at the end of 2019 (previous(Vorjahr: 11). year: In 517).die jährliche 26 vehicles Verkehrsdatenerhebung had an electric or hybrid fließen drive außerdem (previous Fahrten year: mit11). Privat The annual-PKW (2019:trans- 170

170 portation3,2 Mio. km) data und collected Mietwagen also (2019: includes 0,6 trips Mio. takenkm) ein. with privately owned cars (2019: 3.2 million km) and rental cars (2019: 0.6 million km). Seit dem 2. Quartal 2019 werden Ersatzbeschaffungen bei Pool- und Abteilungsfahrzeugen (inkl. Filial- Sincepool) ausschließlichthe second quarter mit Plug of 2019,-in-Hybrid replacement- oder Elektrofahrzeugen pool and departmental getätigt. vehicles (including branch pools) have been switched solely to plug-in hybrid or electric vehicles. Für die Kilometerleistung der Firmen- und Dienstwagen können wir zusätzlich die tatsächlich ver- Webrauchte are also Menge able anto Treibstoffreport the ausweisen:amount of fuel actually used for the kilometers driven in the company and service vehicle categories:

Diesel Benzin

Verbrauch (in Litern) 2019Diesel 2018 2019Gasoline 2018 Usage (in liters) 2019 2018 2019 2018 Firmenwagen 248.920 288.886 101.587 101.006

DienstwagenCompany vehicles 248,920350.232 288,886380.533 101,58792.264 101,00684.290

GesamtService vehicles 350,232599.152 380,533669.419 193.85192,264 185.29684,290

Total 599,152 669,419 193,851 185,296 Württemberg 2019 Württemberg -

Seit 2013 fahren alle bahn.business-Kundinnen und -Kunden, so auch die Beschäftigten der LBBW, Baden Sinceim Fernverkehr 2013, all bahn.businessder Deutschen customers, Bahn (DB) includingmit 100 % LBBW Ökostrom, employees, seit 2020 have sind been auch using Fahrten 100 % im green DB- electricityNahverkehr for CO their2-neutral. Deutsche Bahn (DB) long-distance trips. DB local transportation has also been carbon-neutral since 2020. Für Dienstwagen, also alle Fahrzeuge, die von der LBBW an leitende Angestellte überlassen werden, andesbank andesbank

Inhaben July wir 2015, seit we Juli introduced 2015 ein Anreizsysteman incentive system (Bonus/Malus) (bonus/penalty) eingeführt, for umcompany Modelle cars, mit i.e.geringem all vehicles CO2-

Ausstoß zu fördern. Seit Einführung der Grenzwerte konnte der durchschnittliche CO2-Ausstoß unserer provided by LBBW for managers to use, in order to promote models that generate low CO2 emissions. SinceFlotte the (Dienst thresholds- und Poolfahrzeuge)were introduced, auf the 126 average g/km emissions CO2 (Stand: of ourDezember fl eet (company 2019, Vorjahr: cars and 132 pool g/km) vehicles) ge-

senkt werden. Für die Poolfahrzeug-Flotte (48 Fahrzeuge) betrug der durchschnittliche CO2-Ausstoß have fallen to 126 g/km CO2 (as of December 2019; previous year: 132 g/km). The average CO2 emis- sions91 g/km for (Standthe fl eetDezember of pool 2019).vehicles (48 vehicles) were 91 g/km (as of December 2019). Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank

the Cityof Stuttgart. switch to electric vehicles andmakingacontribution to thetarget of carbon neutrality asadopted by With theestablishment of acharginginfrastructure, LBBW ismakingiteasierfor itsemployees to charging stations isalsoapossibility. February 2020andcan besigned upfor by e-bike users. Several employees sharing oneof thesefree can be accessed onlywithanemployee IDcard. Anadditional 20chargingstations were installed in at oneof the 12chargingsockets atLBBW's bicycle parkingbayatStuttgart central station, which Since July2018,employees whocome to work onane-bike have beenableto charge theirbicycles the mainentrance to LBBW's headoffice. We have alsocommissioned two electric charging stations eachwithtwo chargingpointsinfront of See alsohttps://www.chargebig.com/home/advantages/. parked for longer periodsof time. Thesystem isfreely expandable. many ­participants aspossible. as Thismakes itparticularlysuited for parkingareas where electric vehicles are to intelligently electricity the distributing management load centralized with speed, over a ­employees aswell asguests of theBank.chargeBIG isastart-up of Mahle, which(like LBBW) is ment system “chargeBIG” were installed intheunderground car parks andare now available to LBBW ­location nearStuttgart central station. 36chargingpointsfrom the innovative chargingmanage- In 2019,we established astate-of-the-art charginginfrastructure for electric vehicles atLBBW's Charging infrastructure shifted to rail. be to mileage road allows sharing vehicle with travel train Combining discounts. these from ­benefit sharing providers. NearlyallLBBW employees have thistypeof account andcan therefore also All customers of LBBW witha“BW extend” value-added account receive discounts whenusing­ BW-Bank logo) for business andpersonal useatpreferential conditions. Stuttgart's electric scooter rental system. Our employees can rent the electric scooters (which bear the our locations. Since April2019, BW-Bank hasbeenacooperation partnerof stella Stadtwerke sharing, with Share Now (formerly car2go) andare continuing to expand theavailability of sharingconcepts at We have established car-sharing –includingfor electric cars –aspartof themobilitymixatLBBW Sharing concepts miles ­ The business travel onDeutsche Bahntrains, we alsouseweekly andmonthlypasses whennecessary. For Bahn. Deutsche from Job-Ticketpass DB annual the as well as Mainz, and Mannheim, ­Stuttgart, of commuter tickets andpasses offered by thepublictransportation systems incitiessuchas options for makingtheircommutes more environmentally friendly. Thesemainlyincludethe­ Since personal andbusiness travel habitsare usuallyvery similar, we alsoinform employees about Commuter tickets andpasses ate o te ttgr Cen i Alac (e pg 5) Te e sse pirtzs efficiency prioritizes system new The 53). page (see Alliance Air Clean Stuttgart the of ­partner bonus points collectedpoints ­bonus BahnCardbythe for Businessusing travelbusiness frequent-flierthe and accumulated onflights can beused for free business travel ordonated.

various variety

Landesbank Baden-Württemberg 2019 Sustainability Report 171 Responsibility and commitment ➔ Environment Landesbank Baden-Württemberg 2019 Sustainability Report 172 Responsibility and commitment ➔ Environment was approximately 79 centrally for organic waste, packaging, andunrecyclable waste. Theseparate collection ratio in2019 ­separate theirgarbage. Abox for scrap paperisset out ateachworkplace. Step trash cans are ­ We alsoensure thatvaluable resources are recycled. Allemployees are required to consistently The documentscollected willbedestroyed inaccordance withtheGermanData Protection Act. for throwing away paper subject to data protection in centrally located data security containers. responsible are Employees (“Datenschutzgesetz”). Act Protection Data German the with ­compliance data. The same applies to disposing of paper. Our waste disposal plan therefore guarantees strict protect and care with handle to obligation particular a have we institution, financial a As Waste 3 2 1 Waste recycled Total Waste volume (inkg) Sub-total hazardous waste Other hazardous waste Hazardous waste Sub-total non-hazardous materials Regular paper(150101N) Non-hazardous Gear andlubricating oils Lead batteries (160601) Security paper(150101S) Insulation materials (170603) Paper, total Fluorescent tubes(200121) Glass (20 0102) Solids from oil/water separators (130501) Metal (150104) Monitors, battery-operated devices (160213) Plastic (1501 02) Electronic scrap (200135) Wood (170201) Compostable waste (200201) Organic kitchen waste (200108) Edible oils/fats (200125) Electronic scrap (160214) Mixed materials (150106)1 Non-recyclable waste (200301) Security plastics (150102S) Sludges/grease separators (020204) Some electronic waste isclassified ashazardous waste because it could contain lithiumbatteries. Hazardous andunrecyclable waste isprocessed ordisposedof atGermanfacilities. Thiswaste isnot transported outside Germany. Mixed materials mainlycomprise packaging material. 2 3 %. 1,301,659 1,941,123 1,928,388 198,674 611,581 810,255 203,848 181,620 325,301 290,800

12,735 10,666 31,105 70,820

1,924 2,596 1,300 7,586 3,042 2019 110 115 35 – – – – – 1,770,468 1,219,646 1,780,769 760,157 198,789 561,368 162,564 208,530 332,836 199,550 10,301 20,280 62,130

8,932 4,740 1,130 7,769 7,247 3,420 2018 705 152 482 115 30 – – – ­customer 1,930,411 1,455,263 1,946,324 located 927,003 324,088 602,915 188,877 207,910 301,343 160,271 14,800 32,960 93,466 10,389 2,437

1,005 4,107 1,139 2,006 2017 175 765 16 92 – – – –

Umwelt

➔

Organic waste from the restaurants is transported to biogas facilities and recycled to produce energy. Organische Abfälle der Speiserestaurants werden an Biogasanlagen geliefert und zur Gewinnung von Energie verwendet.

Waste volume (including recyclables) of the validated locations Abfallaufkommen (inkl. Wertstoffe) der validierten Standorte

Waste volume by location (in kg) 2019 2018 2017 2016 2015 und Engagement Verantwortung

➔ Environment and commitment Responsibility Stuttgart Abfallaufkommen nach Standort (in kg) 2019 2018 2017 2016 2015 Am Hauptbahnhof 469,343 418,246 740,759 721,667 676,577 Stuttgart Pariser Platz 239,373 206,637 447,378 268,400 418,190 Am Hauptbahnhof 469.343 418.246 740.759 721.667 676.577 Bollwerk 73,693 60,157 55,343 81,826 76,358 Pariser Platz 239.373 206.637 447.378 268.400 418.190

BollwerkKönigstrasse 32,744 73.693 36,304 60.157 22,740 55.343 36,14881.826 30,051 76.358

KönigstraßeKleiner Schlossplatz, incl. Kronprinzstrasse 85,384 32.744 177,912 36.304 160,981 22.740 159,219 36.148 174,812 30.051

MannheimKleiner Schlossplatz inkl. Kronprinzstraße 26,032 85.384 177.91231,741 160.98155,864 105,220159.219 174.81256,424 Mannheim 26.032 31.741 55.864 105.220 56.424

AbfallaufkommenWaste volume in absolute absolut fiund gures relativ and relative fi gures

(pro(per employee)Mitarbeiter) 173

kg/ 173 kg employee

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

Year

Waste in kg kg/employee

2019 Württemberg -

andesbank Baden andesbank Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

Umwelt

➔

WaterWasser

WaterWasserverbrauch consumption absolut in absolute und relativ fi gures and relative fi gures (per(pro employeeMitarbeiter per/-in day) und 1 Tag)1

liters/ Verantwortung und Engagement und Engagement Verantwortung m3 employee Responsibility and commitment ➔ Environment and commitment Responsibility 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

Year

Water in m³ liters/employee

1 Bei The den fi angegebenengures shown representMengen handelt drinking es sichwater um from Trinkwasser the public aus supply.dem öffentlichen Rainwater Netz. is additionally Im Gebäude used »Pariser to fl Platz ush «toilets wird fürin diethe ToilettenspülungPariser Platz building. zusätzlich auch Regenwasser verwendet. 174 174

InDer 2019, absolute water Wasserverb consumptionrauch declined ist 2019 by im3.6 Vergleich % in absolute zum termsVorjahr and um by 3,6 3.4 % %gesunken. per employee. Der Verbrauch

pro Mitarbeiter/-in ging um 3,4 % zurück.

Württemberg 2019 Württemberg - Baden andesbank andesbank Landesbank Baden-Württemberg 2019 Sustainability Report 2019 Sustainability Baden-Württemberg Landesbank Nachhaltigkeitsbericht der L Nachhaltigkeitsbericht

• • • • We promote biodiversity withthefollowing activities: economic, environmental, andsocialdevelopment. The preservation of biological diversity ispartof ouraimto contribute to sustainable andbalanced consequences aswell asenvironmental effects. biodiversity andto contribute to theirpreservation. Thedestruction of ecosystems haseconomic Companies are called to take notice of theeffects of theirbusiness activities onlocal andglobal ­unbalanced, andbiodiversity isendangered worldwide. are becoming extinct across theglobehasnever beenasfast astoday. Ecosystems are becoming are endangering thebiological diversity of ourplanet.Thespeedwithwhichplantandanimal­ Pollution of theenvironment, soilsurface andtheunbridledextraction sealing, of natural resources Biodiversity

­preceded by kestrels. rise to hopesthatperegrine falcons willnest there inthefuture, asthey have beenknown to be the of out flew ­nesting box inJuly2018,andthebreedingalready seasonagain proved successfulkestrels in2019.Thisgives young Two region. this in rare are which falcons, peregrine for Since fall 2016 there has been a nesting box at LBBW's “Pariser Platz” high-rise building in and nature, andmedicine, biology includingalternative medicines. flora and fauna. It also funds small-scale research projects relating to protection of the The LBBW Foundation participates inprojects aimedat protecting nature andpreserving ­ ­second year of theproject. (www.summtgart.de). Beingableto harvest honey was apleasantbonusfor theteam inthe “Summtgart” apiary Demeter-certified the by beekeeping sustainable and species-appropriate sta- central Stuttgart near office tion in2018,witharound 40LBBW volunteers lookingafter thebees.They were head taught about LBBW's of roof the on placed were colonies bee Two ­forest willbecleared orendangered speciesthreatened. and sustainability ­criteria for useindialogwithcustomers alsoincludebiodiversity issues suchaswhether virgin reputation regarding questions the process, review financing the In products. ­included intheanalysis whenwe select theinvestment universe for oursustainable investment We apply biodiversity criteria inour investing and lending business. Biodiversity issues are ­environment domestic ­Stuttgart species

Landesbank Baden-Württemberg 2019 Sustainability Report 175 Responsibility and commitment ➔ Environment Landesbank Baden-Württemberg 2019 Sustainability Report 176 Responsibility and commitment ➔ Environment As high temperatures are required to supply the existing building, building, existing the supply to required are temperatures high As that donot give riseto anylocal CO which hastheoption of beingconnected to thissustainable supply. Thesystem useswater heatpumps will benefit the new residents of the Laubenhof development as well as the ­energy concept that it is developing and implementing in conjunction with Stadtwerke Konstanz. This and sustainable a on also but fittings, high-quality and architecture modern on only not and theParadies thedeveloper, neighborhood.As LBBW ImmobilienDevelopment GmbHis­ town old Niederburg the between Konstanz, in Laube Untere on constructed being are park 126 apartmentsoffering more than10,000m Sustainable concept energy atLaubenhof Konstanz LBBW ImmobilienDevelopment GmbHiscurrently involved inthefollowing projects, amongothers: criteria measuringenvironmental, economic, socio-cultural, functional, technical, and­ the DGNB evaluates connection, ­overall this sustainability of theproperty over theentire buildinglifecycle In according to around 40­ certified. DGNB are locations many in projects Its (DGNB). areas. LBBW ImmobilienDevelopment GmbHisamemberof theGermanSustainable ­ sustainability,in expertise its revitalizationefficiency improvementsproject management, and sustainable residential complexes andcommercial space. aservice As provider, thecompany ­ and designing in specializes company development GmbH's Management Immobilien LBBW LBBW ImmobilienDevelopment GmbH residential communities to developing concepts to improve efficiency theenergy of entire cities. the auspices of theLBBW ImmobilienGroup –from constructing environmentally pioneering, ­ A large numberof sustainable real estate andcommunity development projects are carried out under Activities of theLBBW ImmobilienGroup “low-emission construction” label. that willgenerate someof required theenergy locally. This measure isbeingimplemented underthe integrated into thecomplex. supplyincludesastate-of-the-art Theenergy cogeneration power plant thelong for term andensure local supply. the location To conserve resources, theexisting parkinggarage willbeintelligently improve will This offices. and retail, food restaurants, ­micro-apartments, ­Esslingen. Theproperty involves amodern,urbanusage mixwithamobilitystation, apartments, next to the central railway station will close the last major gap in the urban landscape of central home to the central busstation priorto itsrelocation. The attractive complex of buildings­ owned wholly a ­subsidiary of LBBW ImmobilienManagement GmbH, intends to redevelop thedisusedsite thatwasGmbH, Grundbesitz Esslingen zob competition, planning urban an of basis the On Integrated mobilitystation atEsslingen central busstation now subject to are approval onthebasisof theirclimate impact. measures and decisions all that meaning emergency, climate a declare to city German first the became Konstanz spring, the In Konstanz. of City the by adopted targets climate the to ­contribution ­35 private parkingspaces in the underground car park.Thesemeasures are makingan important for stations charging the were as Konstanz, Stadtwerke with conjunction in maximum output of around 60kWp. Thiswas alsoplannedby LBBW ­ development alsoinvolves aphotovoltaic system thatisexpected to ­ power plantsthatgenerate both electricity andheatare ­ used.Theenergy 2 emissions, instead from usingenergy a­ 2 of residential space andatwo-level underground car ­extremely Immobilien ­ comprise 200­ ­surrounding neighborhood, concept for theLaubenhof electric cars at around at cars ­electric ­efficient wastewater ­ Development GmbH Building ­ process quality. modules witha ­cogeneration immediately ­innovative collector. different provides focusing ­building friendly Council ­district ­other region. pilot schemefor furthersustainable housingconstruction projects intheStuttgart metropolitan a wide range of population groups and sectors of society. “Hangweide” is intended to serve as a “social cohesion and neighborhood living”, and “digitalization”. The aim of the project is to create create to is project groundbreaking, sustainable new residential andliving space with additional­ the of aim The “digitalization”. and living”, neighborhood and cohesion “social the key topics of “architecture and sustainable construction”, “energy efficiency”, “ecology”, ­planning andarchitectural concepts. Amongother things,thecompetition establishes guidelinesfor development andlandscape planningcompetition was beingconducted withsections for landscape around eight hectares andwas formerly hometo asocialinstitution. of As December 2019, an­ to develop asociallymixed anddenselypopulated residential area onthesite, which ­ Kreisbaugesellschaft Waiblingen andLBBW ImmobilienKommunalentwicklung GmbH–are planning Inter­ ­location for the population of Rems-Murr district in a pilot project forming part of the Stuttgart The “Hangweide” future project centers onthedevelopment of an innovative modelresidential Kernen imRemstal municipality:“Hangweide” future project ing project: For example, LBBW ImmobilienKommunalentwicklung GmbH(KE)iscurrently working onthefollow projects. LBBW ImmobilienKommunalentwicklung GmbHoperates in440citiesandmunicipalities. planning andconsulting services, spearheads renovation anddevelopment projects, andinvests in ­repurposing, andconstruction site andlanddevelopment. Thismunicipalcenter of excellence ­ municipalities for contactand thestate of Baden-Württemberg for allissues concerning urbanrenewal, urbanplanning, of land point the is company Stuttgart-based this organization, bank savings acompanyAs of LBBW ImmobilienManagement GmbH,theGermanAssociation of Cities,andthe LBBW ImmobilienKommunalentwicklung GmbH LBBW Immobilienismakingavaluable contribution to sustainable urbandevelopment. connecting thenewly emergingWeststadt area withthemedieval heartof Esslingen. Withthis­ a of concept the realize ­modern, bustling to city. Thiscombined urbandevelopment alsocreates addedvalue for helping residents by thereby repairs, for area workshop small a and advice related charging stations for concepts electric bicycles, the mobility station will feature a service point for mobility-­ mobility and flexible in alternative for interest ­ public growing reflects itself which policy, immediately next to the railway station forms part of the innovative transition in terms of ­ The mobilitystation intheparkinggarage willbeoperated by thecityauthorities. Itsideal­ intelligent connections to theStuttgart metropolitan region. Inadditionto bicycle parkingwith ainl ulig xiiin IA2) Te rjc prnr – enn m Remstal im Kernen – partners project The (IBAʼ27). Exhibition Building national commercial ­municipality, ­“mobility”, measures transport provides uses for location project, ­Region urban -

Landesbank Baden-Württemberg 2019 Sustainability Report 177 Responsibility and commitment ➔ Environment Landesbank Baden-Württemberg 2019 Sustainability Report 178 GRI Standards GRI Standards (GlobalReporting Initiative) 102-11 102-10 102-9 102-8 102-7 102-6 102-5 102-4 102-3 102-2 102-1 102 101 GRI 102-29 102-28 102-27 102-26 102-25 102-24 102-23 102-22 102-21 102-20 102-19 102-18 102-17 102-16 102-15 102-14 102-13 102-12 Precautionary principleorapproach Significant changes to theorganization anditssupplychain Supply chain Information onemployees andother workers Scale of theorganization Markets served Ownership and legal form Location of operations Location of headquarters Activities, brands, products, andservices Name of theorganization Organizational profile General disclosures Foundation Contents Identifying andmanagingeconomic, environmental, andsocialimpacts Evaluating thehighest governance body’sperformance Collective knowledge of highest governance body Role of highest governance bodyinsetting purpose, values, andstrategy Conflicts of interest Nominating andselecting thehighest governance body Chair of thehighest governance body Composition of thehighest governance bodyanditscommittees Consulting stakeholders oneconomic, environmental, andsocialtopics Executive-level responsibility for economic, environmental, andsocialtopics Delegating authority Governance structure Management Mechanisms for advice andconcerns about ethics Values, principles,standards, andnormsof behavior Key impacts, risks, andopportunities Statement from seniordecision-maker Strategy Membership of associations External initiatives 10 57 et seq. 117–119 9 73 et seq. 9, 64 9 9 9 9 67 et seq.,78et seq., 23–31 28–31 21 et seq. 19–22 19–22 19–23, 59–63 12–18 67 et seq. 7 et seq.,10,23–30, 7 et seq. 49–53 49–53 161, 165,169et seq. Report Sustainability Page inLBBW

p. 19 2019 annualreport, p. 19 2019 annualreport, p. 18 2019 annualreport, p. 17et seq. 2019 annualreport, p. 19 2019 annualreport, p. 12 2019 annualreport, p. 12et seq.,19 2019 annualreport, ­comments ­information/ Additional 102-54 102-53 102-52 102-51 102-50 102-49 102-48 102-47 102-46 102-45 102-44 102-43 102-42 102-41 102-40 102-39 102-38 102-37 102-36 102-35 102-34 102-33 102-32 102-31 102-30 GRI Claims of reporting inaccordance withtheGRIStandards Contact pointfor questions regarding thereport Reporting cycle Date of most recent report Reporting period Changes inreporting Restatements of information List of material topics Defining report content and topic boundaries Entities includedintheconsolidated financial statements Key topics andconcerns raised Approach to stakeholder engagement Identifying andselecting stakeholders Collective bargaining agreements List of stakeholder groups Percentage increase inannualtotal compensation ratio Annual total compensation ratio Stakeholders’ involvement inremuneration Process for determining remuneration Remuneration policies Nature andtotal numberof critical concerns Communicating critical concerns Highest governance body’srole insustainability reporting Review of economic, environmental, andsocialtopics Effectiveness of riskmanagement processes Contents 4 189 4 4 4 23–27 23–27 28–31 28–31 28–31 119, 137 31 137 22 42 23–27 Report Sustainability Page inLBBW report 2019 remuneration No significant changes. No significant changes. p. 286et seq. 2019 annualreport, tion report. the LBBW remunera - Board can befound in and theSupervisory of Managing Directors members of theBoard remuneration of the Information onthe dential information. salaries are confi - Individual employee tion report. the LBBW remunera - Board can befound in and theSupervisory of Managing Directors members of theBoard remuneration of the Information onthe dential information. salaries are confi - Individual employee report 2019 remuneration report 2019 remuneration Not specified p. 43et seq. 2019 annualreport, ­comments ­information/ Additional

Landesbank Baden-Württemberg 2019 Sustainability Report 179 GRI Standards Landesbank Baden-Württemberg 2019 Sustainability Report 180 GRI Standards 301-1 103-3 103-1 to 301 206-1 103-3 103-1 to 206 205-3 205-2 205-1 103-3 103-1 to 205 204-1 103-3 103-1 to 204 203-2 203-1 103-3 103-1 to 203 202-2 202-1 103-3 103-1 to 202 201-4 201-3 201-2 201-1 103-3 103-1 to 201 102-56 102-55 GRI Materials usedby weight orvolume Management approach Materials Legal actions for anti-competitive behavior, anti-trust, andmonopolypractices Management approach Anti-competitive behavior Confirmed incidents of corruption andactions taken Communication andtraining about anti-corruption policiesandprocedures Operations assessed for risks related to corruption Management approach Anti-corruption Proportion of spendingonlocal suppliers Management approach Procurement practices Significant indirect economic impacts Infrastructure investments andservices supported Management approach Indirect economic impacts Proportion of seniormanagement hired from thelocal community minimum wage Ratios of standard entrylevel wage by gender compared to local Management approach Market presence Financial assistance received from government Defined benefit plan obligations and other retirement plans Financial implications andother risks andopportunitiesdueto climate change Direct economic value generated anddistributed Management approach Economic performance Topic-specific disclosures External assurance GRI content index Contents 154, 167et seq. 132 66 66 61 59, 61 61 61 58 57 et seq. 143–145 84, 142–149 77 et seq., 142–149 119, 137 137 134 152 15 et seq.,106–110, 11 7 et seq. 187 et seq. 178 Report Sustainability Page inLBBW regulation inplace. No corresponding report 2019 remuneration port credit agencies. ­conjunction withex credit, we work in In granting export report, p. 11 2019 remuneration p. 125et seq. 2019 annualreport, p. 33et seq. 2019 annualreport, ­comments ­information/ Additional - 305-7 305-6 305-5 305-4 305-3 305-2 305-1 103-3 103-1 to 305 304-4 304-3 304-2 304-1 103-3 103-1 to 304 303-5 303-4 303-3 303-2 303-1 103-3 103-1 to 303 302-5 302-4 302-3 302-2 302-1 103-3 103-1 to 302 301-3 301-2 GRI 306-1 103-3 103-1 to 306 Nitrogen oxides (NO Emissions of ozone-depleting substances (ODS) Reduction of GHGemissions GHG emissions intensity Other indirect (Scope 3)GHGemissions indirectEnergy (Scope 2)GHGemissions Direct (Scope 1)GHGemissions Management approach Emissions areas affected by operations IUCN Red List speciesandnationalconservation list specieswithhabitats in Habitats protected or restored Significant impacts of activities, products, andservices onbiodiversity and areas of highbiodiversity value outside protected areas Operational sites owned, leased,managed in,oradjacent to, protected areas Management approach Biodiversity Water consumption Water discharge Water withdrawal Management approach: management of water discharge related impacts Management approach: interactions withwater asashared resource Management approach Water andeffluents Reductions requirements in energy of products andservices Reduction of consumption energy intensityEnergy consumptionEnergy outside theorganization consumptionEnergy withintheorganization Management approach Energy Reclaimed products andtheirpackaging materials Recycled input materials used Contents Water discharge by qualityanddestination Management approach Effluents and waste x ), sulfuroxides (SO x ), andother significant airemissions 165 23, 110,157,161, 159 159 159 159 23–27, 159 96 96, 175 175 174 174 161, 165 156 159, 169–171 161–164 169–171 152, 161,165, 167 154 172–174 160 Report Sustainability Page inLBBW (table, footnote 1) ­substances. ozone-depleting No emissions of Not relevant Not relevant Not specified Not specified Not specified Not specified institution. for LBBW asafinancial Cannot bepresented Not relevant ­comments ­information/ Additional

Landesbank Baden-Württemberg 2019 Sustainability Report 181 GRI Standards Landesbank Baden-Württemberg 2019 Sustainability Report 182 GRI Standards 403-10 403-9 403-8 403-7 403-6 403-5 403-4 403-3 403-2 403-1 103-3 103-1 to 403 402-1 103-3 103-1 to 402 401-3 401-2 401-1 103-3 103-1 to 401 308-2 308-1 103-3 103-1 to 307-1 103-3 103-1 to 307 306-5 306-4 306-3 306-2 GRI Work-related illnesses Work-related injuries Workers covered by anoccupational healthandsafety management system directly linked by business relationships Prevention andmitigation of occupational healthandsafety impacts Promotion of worker health Worker training onoccupational healthandsafety and safety Worker participation,consultation, andcommunication onoccupational health Occupational healthservices Hazard identification, riskassessment, andincidentinvestigation Occupational health andsafety management system Management approach Occupational health andsafety Minimum notice periodsregarding operational changes Management approach Labor/management relations Parental leave or part-time employees Benefits provided to full-time employees thatare not provided to temporary New employee hires and employee turnover Management approach Employment Negative environmental impacts inthesupplychainandactions taken New suppliers that were screened usingenvironmental criteria Management approach 308 SupplierEnvironmental Assessment Non-compliance withenvironmental laws andregulations Management approach Environmental compliance Water bodiesaffected by water discharges and/orrunoff Transport of hazardous waste Significant spills Waste by typeanddisposalmethod Contents 126 126 125 123–126 125 123–126 123 et seq. 123–126 123–126 123–126 136 116 118 121 116 57 57 57 et seq. 63 54 154 172 160 172 Report Sustainability Page inLBBW (table, footnote 1) (table, footnote 2) Not relevant employees atLBBW. next to notemporary employees. There are provided to part-time are naturally also All additionalbenefits ­comments ­information/ Additional 412-3 412-2 412-1 103-3 103-1 to 412 411-1 103-3 103-1 to 411 410-1 103-3 103-1 to 410 409-1 103-3 103-1 to 409 408-1 103-3 103-1 to 408 407-1 103-3 103-1 to 407 406-1 103-3 103-1 to 406 405-2 405-1 103-3 103-1 to 405 404-3 404-2 404-1 103-3 103-1 to 404 GRI clauses orthatunderwent humanrights screening Significant investment agreements and contracts thatincludehumanrights Employee training onhumanrights policiesorprocedures or impact assessments Operations thathave beensubject to human rights reviews Management approach Human rights assessment Incidents of violationsinvolving rights of indigenous peoples Management approach Rights of indigenous peoples Security personnel trained inhumanrights policiesorprocedures Management approach Security practices sory labor Operations andsuppliers atsignificant risk for incidents of forced or compul- Management approach Forced orcompulsory labor Operations andsuppliers atsignificant risk for incidents of childlabor Management approach Child labor collective bargaining maybeatrisk Operations andsuppliers inwhichtheright to freedom of association and Management approach Freedom of association andcollective bargaining Incidents of discriminationandcorrective actions taken Management approach Non-discrimination Ratio of basicsalaryandremuneration of women to men Diversity of governance bodiesandemployees Management approach Diversity andequalopportunity and career development reviews Percentage of employees receiving regular performance Programs for upgrading employee skillsandtransition assistance programs Average hours of training peryear peremployee Management approach Training andeducation Contents 15 59 57, 67 15, 57,67 95 57 15, 57et seq. 57 15, 57et seq. 57 et seq.,67,136 136 130 130–133 119, 132 122, 131 130–133 121 121, 126–128 119 126–128 Report Sustainability Page inLBBW known for 2019. No incidentsare Not relevant Not relevant ­comments ­information/ Additional

Landesbank Baden-Württemberg 2019 Sustainability Report 183 GRI Standards Landesbank Baden-Württemberg 2019 Sustainability Report 184 GRI Standards (FS3) G4-DMA (FS2) G4-DMA (FS1) G4-DMA 419-1 103-3 103-1 to 419 418-1 103-3 103-1 to 418 417-3 417-2 417-1 103-3 103-1 to 417 416-2 416-1 103-3 103-1 to 416 415-1 103-3 103-1 to 415 414-2 414-1 103-3 103-1 to 414 413-2 413-1 103-3 103-1 to 413 GRI in agreements ortransactions and compliance withenvironmental andsocialrequirements included Description of processes for monitoring customers’ implementation of and socialrisks inbusiness lines Description of procedures for assessing andscreening environmental applied to business lines Description of policieswithspecificenvironmental andsocial components Product portfolio Disclosures for thefinancialservices industry Non-compliance withlaws andregulations inthesocial andeconomic area Management approach Socioeconomic compliance of customer data Substantiated complaints regarding breaches of customer privacy andlosses Management approach Customer privacy Incidents of non-compliance concerning marketing communications and labeling Incidents of non-compliance concerning product andservice information Requirements for product and service information andlabeling Management approach Marketing andlabeling of products andservices Incidents of non-compliance concerning thehealthandsafety impacts Assessment of thehealthandsafety impacts of product andservice categories Management approach Customer healthandsafety Political contributions Management approach Public policy Negative socialimpacts inthesupplychainandactions taken New suppliers that were screened usingsocialcriteria Management approach Supplier socialassessment on local communities Operations withsignificant actual andpotential negative impacts and development programs Operations withlocal community impact engagement, assessments, Management approach Local communities Contents 68, 91et seq. 67 et seq. 12–18, 49–53 61, 66 59–63 62 62 66 66 74 66, 74 146 146 57 57 57 et seq. 143–148 143–148 142 Report Sustainability Page inLBBW Not relevant Not relevant Not relevant ­comments ­information/ Additional (FS16) G4-DMA (FS15) G4-DMA FS14 FS13 (FS12) G4-DMA FS11 FS10 (FS9) G4-DMA FS8 FS7 FS6 (FS5) G4-DMA (FS4) G4-DMA GRI Initiatives to enhance financialliteracy by type of beneficiary Policies for thefair designandsaleof financialproducts andservices Product andservice labeling Initiatives to improve access to financialservices for disadvantaged people (branch, self-service, etc.) Access pointsinlow-population oreconomically disadvantaged areas by type Local communities ­advises onvoting over whichthereporting organization holdstheright to vote shares or Voting policy/policiesappliedto environmental orsocialissues for shares or socialscreening Percentage of assets subject to positive andnegative environmental issues which thereporting organization hasinteracted onenvironmental orsocial Percentage andnumberof companies heldintheinstitution’s portfolio with Active ownership and socialpoliciesriskassessment procedures Coverage andfrequency of auditsto assess implementation of environmental Audit ­environmental benefit for eachbusiness linebroken down by purpose Monetary value of products andservices designedto deliver aspecific social benefit for eachbusiness linebroken down by purpose Monetary value of products andservices designedto deliver aspecific and by sector Percentage of theportfolio for business linesby specific region, size, ­environmental andsocialrisks andopportunities Interactions withcustomers/investors andbusiness partners regarding environmental andsocialpoliciesprocedures asappliedto business lines Description of process(es) for improving staff competency to implementthe Contents 42–45, 143–145 66, 74 113, 142–145 9 65 88 65 54 88, 107–109 88, 107–109 107–109 44 et seq. 43, 59 Report Sustainability Page inLBBW ­comments ­information/ Additional

Landesbank Baden-Württemberg 2019 Sustainability Report 185 GRI Standards 03 Environmental verifier's declaration eco-management andaudit scheme(EMAS): amended by Regulation (EU) 2018/2026 on the voluntary participation by of Regulation (EC) No1221/2009of theEuropean Parliament andof theCouncil of ­ as set out inthe2019Sustainability Report withEnvironmental Statement meet allof therequirements declares to have verified whether the following locations of Landesbank Baden- By signingthisdeclaration, itisconfirmed that: • • • • • ­DE-V-0080, licensed for Banking (NACE Code WZ [German Classification of Economic Activities] 2008: 64.19), number registration with verifier environmental EMAS Utermöhlen, Dr.Ralf undersigned, The (pursuant to annex VIIof EMASIII) validation activities atLandesbank Baden- Environmental verifier's declaration on verification and Stuttgart statement. and correct view of allthelocation' activities withinthescope mentionedintheenvironmental the data andinformation of theenvironmental statement of thelocations provide areliable, credible, with applicable legal requirements relating to theenvironment, the outcome of the verification and validation confirms that there is no evidence of non-­ Regulation (EC) No1221/2009 asamendedby Regulation (EU)2018/2026, of requirements the with compliance full in out carried been have validation and verification the Mannheim, Augustaanlage 33,68161Mannheim • • • • • • • • •

Kleiner Schlossplatz 11,70173Stuttgart Fritz-Elsas-Strasse 31(Bollwerk), 70173Stuttgart Königstrasse 3,70173Stuttgart Pariser Platz1(Building6),70173Stuttgart Pariser Platz1(Building5),70173Stuttgart Am Hauptbahnhof 8(Building4),70173Stuttgart Am Hauptbahnhof 11(Building3),70173Stuttgart Am Hauptbahnhof 7+9(Building2),70173Stuttgart Am Hauptbahnhof 2(Building1),70173Stuttgart Württemberg ­organizations in a 25 November 2009as ­Württemberg (LBBW) compliance Community ­Community

Landesbank Baden-Württemberg 2019 Sustainability Report 187 Audit opinion Landesbank Baden-Württemberg 2019 Sustainability Report 188 Audit opinion Environmental verifier Dr. Ralf Utermöhlen Braunschweig, 18May2020 This documentshallnot beusedasastand-alone piece of publiccommunication. EMAS registration can begranted onlyby aCompetent BodyunderRegulation (EC) No1221/2009. This documentisnot equivalent to EMASregistration. been acknowledged but not audited by us. Statement indicated withtheUEsymbol. Allthe remaining content of theSustainability Report has on sustainability. Accordingly, thisdeclaration of validity relates to thecontent of theEnvironmental ­validated information contained inthe Environmental Statement andother non-validated information requiredAs by theregulations, theSustainability Report makes acleardistinction between the [email protected] Fax Phone Sustainability Management Specialist Thomas Derr [email protected] Fax Phone Sustainability Management Technical Manager Silvia Weiss [email protected] Fax Phone +49711124-42112 and Sustainability Management Head Marketing, Communication Patrick Schwiertz Contacts +49 711127-6677100 +49 711127-77100 +49 711127-6642637 +49 711127-42637 +49 711127-6642112 [email protected] Fax Phone Sustainability Management Specialist Stephanie Neth [email protected] Fax Phone Sustainability Management Specialist Marion Marchthaler [email protected] Fax Phone Sustainability Management Specialist Elke Hauser +49 711127-6647558 +49 711127-47558 +49 711127-6674540 +49 711127-74540 +49 711127-6645886 +49 711127-45886

Landesbank Baden-Württemberg 2019 Sustainability Report 189 Contacts Landesbank Baden-Württemberg 2019 Sustainability Report 190 Publishing information Created using Landesbank Baden-Württemberg Design andproduction: [email protected] www.LBBW.de 70173 Stuttgart, Germany Am Hauptbahnhof 2 Landesbank Baden-Württemberg Published by Publishing information Breaking new ground

Landesbank Baden-Württemberg www.LBBW.de [email protected]

Headquarters

Stuttgart Karlsruhe Mannheim Mainz Am Hauptbahnhof 2 Ludwig-Erhard-Allee 4 Augustaanlage 33 Grosse Bleiche 54 – 56 70173 Stuttgart, Germany 76131 Karlsruhe, Germany 68165 Mannheim, Germany 55116 Mainz, Germany Phone +49 711 127-0 Phone +49 721 142-0 Phone +49 621 428-0 Phone +49 6131 64-37800 Fax +49 711 127-43544 Fax +49 721 42-23012 Fax +49 621 428-72591 Fax +49 6131 64-35701