Green transition and sustainable finance
OTP Group takes on a role in today's major challenges such as climate protection, green financing and cybersecurity. As a major financial service provider in Europe and Central Asia, OTP Group strives to take a responsible stance in the way its banking solutions and investment decisions are carried out. A strong focus on cybersecurity and risk management is also an integral part of social responsibility and safe internal operation.
Our climate target
OTP Group is committed to sustainability across multiple dimensions, with key priorities including green lending, the decarbonisation of our own operations, and reducing the carbon footprint of our financed portfolio. For more information, please refer to the document below.
Green finance
Environmental considerations are becoming an increasingly important factor in economic and investment decisions, supporting the achievement of sustainable growth. OTP Group has established its green lending criteria and
definitions in line with international best practices and in full compliance with supervisory expectations.
The green criteria apply across the entire OTP Group. Green corporate or retail exposures include on-balance sheet loans, advances, leases, and bond exposures that have undergone an internal green alignment assessment process.
Following this assessment, and based on the client’s and/or business line’s intention, the exposure must meet the requirements of at least one of the frameworks or criteria listed below:
For non-financial companies and municipalities
- OTP Sustainable Finance Framework (SFF)
- The Hungarian National Bank's Green Corporate and Municipal Preferential Capital Requirement Programme
For the retail segment
- Hungarian National Bank’s Green Housing Preferential Capital Relief Programme
- Funding for Growth Scheme – Green Home Programme
- OTP Mortgage Bank Green Mortgage Bond Framework
- EU Taxonomy substantial contribution criteria for real estate and zero-emission vehicles
In addition to the above, green exposures may also be recognized based on external verification.
Sustainable Finance Framework
Our investment and banking services both have environmental components
- OTP Bank provides interest-free loans to condominiums and housing cooperatives for investments in energy efficiency and renewable energy
- Our available responsible investment product is the
- OTP Bank was the first in the Hungarian market to issue green mortgage bonds
- CKB and OTP Bank Albania signed an agreement with the EBRD (European Bank for Reconstruction and Development) on the Green Economic Finance Facility (GEFF) at the end of 2020
- OTP Bank S.A. (Moldova) is one of the reference banks for the EU and the International Financial Institutions (IFIs) in Moldova. The EU4business EBRD loan, a joint initiative of the EU and the EBRD (European Bank for Reconstruction and Development) under the Deep and Comprehensive Free Trade Area (DCFTA) programme, continued to be available at our subsidiary bank
- In Croatia, the subsidiary bank’s green home loan portfolio saw strong growth in the second half of 2024, reaching HUF 15 billion by year-end. The Sunny Loan product supports new home (apartment or house) construction and purchases and used home purchases and renovations if they meet energy efficiency criteria
Sustainable Finance Framework - Previous Reports
ESMS Framework, Environmental & Social concerns
Environmental and Social Risk Management Framework of OTP Group
We offer opportunity to be heard and assisted through a grievance mechanism. Email contact: environment_otp@otpbank.hu
Read moreExpert financial services committed to sustainability
OTP Group aims to service all customer segments. All our products and services are designed to comply with the principles of ethical business conduct and legal requirements.
Responsible lending
Crediting helps economic and individual development and the achievement of goals, but at the same time, imprudent credit can cause serious long-term problems for debtors through over-indebtedness and can also put the providers of the funds at risk.
We ensure that retail customers are not over-indebted by means of a solvency test. We also inform customers of the results of the Central Credit Information System (CCIS) query and also if their application is rejected at credit assessment on account of over-indebtedness. The training of administrators, internal Administrative Directives and the automation of the credit approval system ensure compliance with the relevant procedures. We also examine over-indebtedness in the context of corporate lending.
We make sure that our employees have up-to-date knowledge of risk management principles and practices on an ongoing basis.
Financial well-being and social impact products
OTP Group aims to ensure financial well-being for its customers and to have a positive impact on society through its many products.
- Our discounted products are primarily aimed at young people, customers looking to purchase or modernise their homes or to improve their energy efficiency, and pensioners.
- We place particular emphasis on serving the financial needs of residential communities and municipalities (where local regulations allow).
- Many of our services are aimed at meeting the needs of small and medium-sized enterprises.
Risk management
The identification and management of risk types is a key element in the operation of banks. The Risk Management Strategy provides the uniform basis for the risk management of OTP Group. Using the risk appetite framework, we compare the level of risks with expected losses and the cost of risk management to help decide how much risk the Group should take.
Our risk management principles and practices are established in line with the criteria of responsible lending. We lend the money deposited with us, ensuring that it is repaid and that it will not serve illegal purposes, or those contrary to the values of society.
Our risk management balances are upheld through the following:
- our prudent Risk Management Strategy
- our annually revised Lending Policy
- our continuously developed credit risk assessment system
The Group applies an ESG exclusion list in corporate financing that lists activities and behaviours whose controversial nature and impact make them incompatible with OTP Group’s values for safeguarding human rights and promoting sustainable development.
We pay special attention to identifying and managing ESG risks. The goal of our ESG risk management framework in loan origination and monitoring is to ensure well-grounded decision making by identifying and managing the environmental and social risk of financing. ESG risks are also included into the operational risk assessment processes. By performing a climate stress test we have evaluated the possible consequences of different scenarios.
In line with the requirements of the risk management strategy, member companies constantly renew and revise their risk management practices and clearly define in their lending policies the sectors, business lines and activities in which they are active and the areas in which they do not wish to take risks.
Cybersecurity and data protection
The Bank’s management is committed to maintaining the security of OTP Group, striking a balance between safe and user-friendly operation, both internally and for our customers. We need to guarantee security while ensuring that our customers have easy access to our services anywhere, anytime.
Anti-fraud measures
- Most of the subsidiary banks have implemented the Anti-Fraud Competence Centre and OTP Bank's Anti-Fraud Policy.
- The OTP Bank Annual Fraud Risk Self-Assessment and Action Plan provides a framework for measures, which include the risk levels applied and the measures planned to mitigate the risks.
- Our Banking Group places great emphasis on Anti-Fraud training for both customers and employees. All employees must participate in 1 online training and exam per year.
- All subsidiary banks began to implement realtime transaction fraud monitoring system capability.
Cyber Defence Developments
- The OTP Bank Cyber security Governance Unit provides a wide range of high quality training for employees, which also has an impact on the wider society.
- Thanks to the Cyber Defence Centre's developments, misuse of the OTP brand is quickly detected and addressed. The removal of thousands of phishing sites and misleading advertisements has been managed, helping to safeguard customer assets.
The principles and guidelines for the processing and protection of personal data is covered by the Compliance Policy as approved by the Board of Directors.
- The Deputy CEO responsible for the Digital Division is responsible for data processing at the bank and the protection of customers’ personal data. OTP Group banks have a designated Data Protection Officer and Data Owners.
- The protection of data assets and the prevention of data loss are priority goals, which are achieved through our processes, systems and the development thereof. The Bank uses and develops state-of-the-art information technology and security solutions to ensure data management, data security and data leakage prevention.
- We regularly assess risks and focus on maintaining and developing awareness. Our staff receive annual compliance training, which also covers data protection.
- OTP Group treats all data, facts, information and solutions relating to the identity, data, financial situation, business activities, financial management, ownership and business relations, balances and transactions of its customers’ accounts as bank secrets.
The principles and main guidelines concerning security at the Bank are set out in the Security Policy, which is approved by the Board of Directors.
- The Policy — with the exception of data protection — covers all aspects of security, including IT and cyber security, which have become increasingly important.
- Responsibility for security rests with the Board of Directors and the Supervisory Board. The Bank and the Banking Group operate a Banking Security Directorate, headed by the Managing Director, to enforce cyber security and banking security requirements.
The basic principle of security measures is that they should be primarily aimed at preventing security incidents.
All OTP Group employees receive annual training in banking security, covering all aspects of security.
Security serviceSecurity service is ensured by the Bank and the Group members through the use of external security providers. The security guards act in accordance with the Security Policy, applying the practices thereof.
Security service providers and guards must be licensed to carry out the activity and, in the case of guards, must hold the required professional qualifications and receive regular training. The Bank continuously controls, and evaluates on a monthly basis the performance of the security guards.
Banking securityWe aim to achieve security by applying countermeasures that are appropriate and proportionate to the activity, the hazards and the security risks. We also comply with the relevant government regulations and supervisory requirements at all times, and take into account the recommendations and best practices (ISO 27001, BS 7799, COBIT) that can contribute to maintaining and improving security.
As a result of effective banking security measures, violent crime (e.g. bank robberies, ATM robberies, burglaries) is today strongly on the decline.
Our IT systems continue to meet the highest and ever-increasing security standards, as confirmed by the statistics on abuse.
IT and cyber securityOur Banking Group develops risk-proportionate protection and deploys advanced technology solutions in anticipation of the risks and vulnerabilities of systems based on digital technologies.
We are committed to improving the maturity of IT security controls and developing new controls. We have built and operate an IT filtering system to filter abuse to ensure compliance with obligations under the European Union's PSD2 and GDPR regulations.
Our Banking Group is continuously improving its detection, response and elimination capabilities relating to information security incident prevention, in order to reduce the probability of adverse events occurring and their impact to an acceptable level.