KfW, based in Frankfurt am Main, Germany, operates as the promotional bank of the Federal Republic of Germany. It was formed in 1948 after World War II as part of the Marshall Plan. Its capital is held by the German federal government (80%) and the federal states (20%), but the shareholders do not receive any dividend. The bank provides the general funding of the promotional institutions of German federal states, but also for housing construction and modernisation, infrastructure, education, and other social projects, besides doing transactions on behalf of the federal government. In addition, the company offers financing for German and European export activities, and for projects and investments in German and European interests. Further, it promotes developing and transition countries on behalf of the federal government; and provides private enterprise financing. Its goal is to promote sustainable economic, social, and ecological development in- and outside Germany. The company has more than 6,000 employees worldwide.
KfW promotes the transition to a sustainable society by financing projects mainly in Germany and developing countries. In its mission statement, KfW explicitly states that it takes actions to align its financing activities with the SDGs and the Paris Agreements. Through this mission and a strong score in the GABV assessment of 63/100, KfW has a clear positive impact and it is a good theme fit with our Social Inclusion & Empowerment theme. KfW follows the UN Principles for Responsible Investment and an in-house team safeguards that comprehensive social and environmental standards are applied. It has a group-wide exclusion list for its financing activities and investing activities for its own account. KfW aims to contribute sustainably to the four current megatrends it identifies worldwide. KfW is also very active in the green bond market, and since 2014 issues and invests in green bonds. It dedicates 40% of total new commitments to finance environmental mitigation and adaptation measures and the bank’s own operations are carbon-neutral since 2006. The company is very transparent in its reporting on energy consumption, carbon footprint, water use, paper use and waste. Furthermore, it has a gender equality program in place, to promote equal opportunities at KfW.