Digitalisation is a Clear Enabler for The Green Transformation of Our Society
Ilinka Kajgana is an innovative and engaging risk leader whose 17 years of international work experience in large and complex banking organizations has delivered outstanding results. Her deep technical expertise across modelling and data, complex products and refined risk sensitivities is complemented by her consistent ability to partner with the business environment to drive risk-controlled growth.
In her current role as Chief Risk Officer for BCR, she has transformed the bank’s status and performance, obtaining a “low risk” rating following an ECB Supervisory Review and Evaluation Process. She also spearheaded innovation through the launch of a fully-fledged ESG transformation programme, central to business strategy.
The interview was initially published in the bilingual yearbook Community Index Magazine no. 5. You can flip through it here: https://communityindex.ro/community-index-magazine-2023/
- What impact has sustainability had on your strategic planning in the last year?
Sustainability is one of the main pillars of our company strategy, not only in the last year but also in the years to come. It marks everything we do: from the way we evaluate risk to the way we train our people, from the way we look at the development opportunities ahead to the way we operate in our offices.
On a very concrete level, 100% of the cards issued by BCR from January 2023 onwards, for private individual and corporate customers, are made of environmentally friendly materials, both recycled plastic and biodegradable material. BCR started issuing environmentally friendly cards as early as 2021, and so far about 50% of the portfolio is issued on sustainable material. Also, the green mortgage loan ’Casa Mea, NaturA’ accounted for about 44% of the total standard mortgage volumes disbursed by BCR in H1 2023. The loan is granted for buildings with an A energy certificate or for the greenhouses certified by the Romanian Green Building Council.
We continued the roundtables series on the ESG transformation of the Romanian companies, organized by BCR in partnership with ECOTECA Association, with the involvement of institutional representatives, entrepreneurs and ESG experts. In March, together with the Academy of Economic Studies in Bucharest, we developed the topic of “Establishing and measuring ESG indicators”, and in June, together with EFdeN, we discussed about „Energy efficiency in buildings: best practices and challenges.
2. What ESG actions does BCR take today to help future generations meet their needs?
All our programs that are dedicated to future generations have one common denominator: education.
We have an integrated approach towards green education and digital education since we believe that digital transformation is a clear enabler for the green transformation of our society. Therefore, 66,000 Romanians participated in a Money School class, with a 50% increase in active users on Money School Platform.
We also have a partnership with NextLab Tech, the most important digital competition from South-Eastern Europe, where more than 60.000 children developed their skills for the future. Also, we have an integrated approach towards financial education and green education.
This is the underlying philosophy of our programmes: on one hand, the integration of digital and green education, on the other hand, the integration of financial and green education. Besides, we try to give young people a better understanding of what a job means today. Apart from our ongoing programmes of internships and career workshops, BCR has a strategic partnership with Joblandia, the innovative solution in education that matches highschool students and companies for a practical experience during “Saptamana Altfel” (The Alternative Education Week). In 2023, more than 3000 teenagers were enrolled in this programme, powered by BCR.
3. The fight against climate change has become pivotal for any responsible company. How does it affect your company and how do you fight to reduce its negative impact?
In the medium term, climate change will have a more significant impact on some economic segments such as agriculture, energy, construction, and possibly tourism. Our role is to support our clients from these segments into adapting their strategies for the future, to find alternatives and to invest in sustainability.
On the bright side, the recent pandemic produced an acceleration of the transition towards sustainability: hybrid work has significantly reduced the carbon footprint of the companies and has created a deeper sense of awareness towards the impact of global challenges. However, change has to be created person by person. In BCR, we have a ongoing training module about ESG that is mandatory for all our colleagues.
We have observed that no matter which generation colleagues are -Gen Z, Millenials, Gen X- they are very eager to enrol into saving resources while embracing a more environmentally-friendly routine. There is a long journey in front of us but at least there are more people who are seeing the importance of this road and who are trying to create a sensible map.
4. Banks can have a huge influence when choosing their ESG criteria for giving loans. What are BCR’s steps in this direction?
We try to position ourselves as a committed companion of our clients in their journey towards sustainability and ESG transformation. We believe that ESG is not only about compliance and ticking some boxes with the Environment, Social and Governance labels. It is about changing profoundly the way of doing business as a company.
Therefore, our role is to actively support our clients in their process of getting access to green finance. We are all in a process of learning, therefore being transparent and open is of critical importance for transitioning towards an ESG society.
We try to explain to our clients that sustainability is the most important investment: it means care for future generations and for the planet we leave to our children. On a more pragmatic note, getting access to green finance creates real business opportunities while staying relevant in the international value chain.
5. In May 2023 you had your first green Eurobond bank transaction. What were your aims with this issuance?
BCR’s green bond issue was a first on the Romanian financial-banking market, being the largest corporate bond issuance in Romania.
The bond issue proved successful from the outset, as the order book registered a significant volume of EUR 1.9 billion, well above the minimum issue size of EUR 500 million. This increased the issued amount to EUR 700 million. The final volume reflects our commitment to the market in terms of future issuance plans and our aim of building a relationship of trust with our investors.
It is also a signal of trust in the potential of the green economy of our region. A signal of trust for a greener future.
6. How about your social impact, where do you stand and what are your latest achievements?
Let us review some clear benchmarks because I believe that, in sustainability, it is important to walk the talk. In 2022, the social impact of the BCR Group (the banking services for NGO-s and social enterprises) generated the following impact: 290.000 beneficiaries from vulnerable categories, 1800 jobs supported or created (including jobs for vulnerable persons), 2.5 million Euros for developing associations and social enterprises, 127 NGO-s included in training or acceleration programmes, 900 NGO-s enrolled in The Good Exchange (Bursa Binelui), the only donor platform without commission. Besides, at InnovX-BCR, we accelerated 32 start-ups so that the local tech business got access to 19,7 million euros.
I should add that more than 21000 local entrepreneurs had free access to entrepreneurial education on the platform Școala de Business (School of Business).
Not in the least, we have 5000 employees – they are the engines that will really move Romania towards sustainability.
Ilinka Kajgana’s Biography
Since joining the Erste Bank Group in 2006, Ilinka has taken on and executed strategic projects for the business, including Operational risk, Capital Adequacy, AMA and other priorities for both the group and its international network of savings banks (Sparkassen). As a member or chair of the supervisory board, or board of directors for a number of entities over the past five years, she has helped guide the strategic direction of the group and put in place frameworks, policies, processes and controls to optimize clarity and efficiency, as well as mitigate risk.
She adopts new technology and uses agile methodologies to transform businesses, aligning them to the evolving needs of our clients and an increasingly complex international regulatory environment. Her scientific background, Master’s and PhD, have all honed her problem-solving and analytical skills. Building trusted relationships with key stakeholders in large and complex organizations has been a key facet of her success, and is complemented by an ability to engage with the regulator, clients, partners and suppliers.
