Caixa Geral de Depositos is not only a cornerstone of the Portuguese economy, but a model of sustainability – financially, socially, and environmentally. The New Economy visits CGD’s Lisbon headquarters to discover exactly how the bank has become such a shining example of responsible banking.

António Nogueira Leite: We are virtually a partner with most of Portugal’s largest companies.

Francisco Viana: Strength, reputation, trust and sustainable development: this is our positioning.

Jorge Guimarães: We are a good example of success throughout the country to save energy.

The New Economy: The headquarters of Caixa Geral de Depositos in Lisbon is many things. A place of work for more than 3,000 members of the staff. An efficient building: the first in Portugal to achieve A+ rating for energy use. And in its own way, a work of art.

But above all, it is also home to a bank that is a cornerstone of the Portuguese economy.

António Nogueira Leite: CGD is Portugal largest financial group. We have been around for 135 years.

We have commercial banking activities in Portugal, in which we are the largest commercial bank. We have also an important investment bank that operates not only in Portugal but also overseas. We have 40 percent of Portugal’s insurance market, through our insurance companies. And we have a presence worldwide in 24 countries.

We are a partner of virtually every Portuguese family, because we – out of a population of slightly over 10 million – we have over four million clients. And we are virtually a partner with most of Portugal’s largest companies and also with many Portuguese SMEs.

The New Economy: In challenging economic times, sustainability sometimes takes a back seat but not at CGD. Here, sustainability is more than just an aspiration. 

The New Economy: Let’s look at how CGD delivers on its vision of sustainability. How do you put sustainability into practice in the bank’s day to day operations?

António Nogueira Leite: We are very committed to that principal through different angles. In our daily commercial operations, we try to design our products and to address our clients, sharing a vision of the sustainability of their economic activity, of their personal decisions, of our partnering with them.

But also we have activities in terms of trying to reduce our contribution, for example in CO2 emissions. We have a very comprehensive programme of air preservation and of diminishing emissions of CO2. We try as much as possible to use our energy from renewable sources: as you know, we have the largest solar plant in our roof.

The New Economy: Nowhere is the commitment to renewable energy sources more visible than on the roof of CGD’s headquarters: where the bank has installed, 1,600 square metres of solar thermal panels.

The project is known as ‘Solar Central’ and is the biggest solar thermal installation in Portugal. Solar Central has already made a major impact on energy consumption in the building.

Jorge Guimarães: We are a good example of success, after four years of managing a central solar plant and also for the photovoltaic experience. We are quite happy and the results can be shown to everybody.

So it helps at first – saving energy. So in our case, three percent of our consumption. Of course during summer, we have a system with an absorption chiller that enables us to produce cold water that Caixa is using over summer time.

During winter, we have the production of hot water in order to help the climatisation and the water system, the sanitary system and other uses of hot water.

The New Economy: Of course, it is important to remember that 85 percent of Portugal’s energy needs come from imported fossils fuels. So initiatives like Solar Power Central could be pointing the way to the future.

Jorge Guimarães: We are quite happy with the results: that enable us to save energy and also to stimulate our customers – our bank customers – to apply these kinds of systems in their houses, or in their organisations. And in this way, to help the country to save energy.

The New Economy: To see how Solar Central saves energy in this enormous and elegant structure you have to travel several floors below ground.

Engineer Sergio Albino, who works in the energy efficiency team, showed me around Solar Central’s technology, six floors below street level. 

This system is the largest and most sophisticated of its kind in Europe, supplying air and water to the building at the desired temperature whatever the season. 

A network of pipes carries air throughout the building, while four tanks are each capable of storing and delivering a 100,000 litres of water. This is efficient energy management on a huge scale. 

Back above ground, this is what you might call mission control: the room that monitors and controls energy management in CGD’s headquarters. 

Here the performance of 20,000 individual point of energy use can be called up on screen at the touch of a button.

Sunshine is one of Portugal’s natural resources. The sun isn’t just good for the tourism and leisure industries: it’s a source of renewable energy for companies which are serious about sustainability.

CGD has established micro-generation systems on the roofs of some of its branches. But this is just one aspect of its policy of taking sustainability into the communities it serves.

António Nogueira Leite: We also look at the country around us and we participate in trying to promote social values. We are part of a project with Euronext NYSE in Lisbon. The Euronext New York Stock Exchange operation in Portugal has a partnership with us for a social values exchange, in which we help promote projects aiming at enhancing social responsibility and social projects within the country.

And we have also been promoting and sustaining the willingness of all of our workforce to participate in community work and in volunteer participation in several social projects. We have over 33,000 hours of social work by our workers, last year.

So we look at sustainability through – I would say – through all possible angles, we can look at.

The New Economy: CGD is an integral part of Portugal financial life; its brand is a familiar presence in cities and towns. The bank’s sustainability policies are helping to build and strengthen the brand’s connection with customers. 

Francisco Viana: Our goals at the present time are to focus on innovation, creativity. Building a segmented range, designed and targeted to the need of customers; but also to deliver a more consistent and inclusive financial offer, to achieve higher levels of service and satisfaction, increasing the efficiency of our relationship with customers first, and the general community.

It is an incredible time for brands, due to the challenge of making them improve themselves and innovate. In the current context, and in CGD’s values and visions, we find inspiration in sustainability to build a brand more intimately connected to the Portuguese, and one that make us believe in a different but better future.

Strength, reputation, trust and sustainable development: this is our positioning and how we create distinctiveness and awareness to our activity.

The New Economy: And, of course, the bank has an important function in promoting financial literacy among its customer base.

Francisco Viana: Investment in financial literacy, ongoing since 2008, represents one of the broader aspect of integration within civil society. And it reflects our concern for the future: informing citizens and SMEs about more responsible financial management, in the medium and long-term.

CGD presented Kidzania Park, with a branch for children, where they can engage with banking and learn basic rules for managing their money, savings, and planning their future.

In turn, on the Soluções de Poupança portal, we teach younger children in a fun way to save both money and natural resources. Educação mais financeira is an entity of an educational exhibition that runs in the country, through schools, public libraries and other public spaces. It not only talks about financial education but also it gives a younger and more senior audience, the skills to deal with their personal finances, make choices and informed decisions.

I will also like to underline the relevance of the Saldo Positivo site, which has received over 250,000 unique visitors. Created in 2008, it was the first financial literacy portal in Portugal, promoting the need to educate for conscientious and informed consumption, pointing out solutions for day to day management.

Today we also have the same model for SMEs and freelancers: preparing them for more efficient and effective management at this demanding juncture; essential for the recovery of the Portuguese economy.

We believe in the future for Portugal based on ethics and solidarity, perseverance and inspiration; because we trust the ability of the Portuguese to turn difficulties into extraordinary opportunities for growth.

The New Economy: Even in the post room at the bank’s headquarters, there is a practical commitment to greater sustainability.

The move to paperless communication has reduced but not quite eliminated the daily output of shredded paper and cardboard. But here, the money received from recycling these materials goes towards a social fund for employees. It’s one small initiative, but adds to CGD’s reputation for sustainability. 

CGD was recently awarded Best Sustainable Banking Group in Portugal by The New Economy; and by the end of 2011 your environmental performance was rated as the best in the Iberian financial sector. What’s your take on these recent highlights in sustainability?

António Nogueira Leite: First our recognition of the effort. And in that sense, since the organisation has been committed with different players and different people guiding the organisation through a long-term commitment towards sustainability, it’s very nice for all of us, and especially for the entire organisation, that we are recognised.

But that is not the reason why we see sustainability as something that we should pursue as an everyday activity. But it’s clearly a stimulus for us to excel, and to probably improve, as I said in the previous answer, in the areas where we can still learn from the best performers from the best in class. So, it is clearly a motivation to do better in the future.

The New Economy: Banking can be a complex industry, but there is one simple relationship that really counts: the one between the bank and its employees.

At CGD there has been a conscious effort to provide staff with the best training, the best resources, and the best environment in which to work.  All this, allied to an equality of opportunity.

Henrique Melo: I would like to give you a small example of how we treat our staff, how we help them to develop, and naturally the opportunities that are created without distinction.

Seven years ago, the percentage of men and women was more or less the same. A few more men than women, with around 51 percent men and 49 percent women. Seven years later, there are now 54 percent women and 46 percent men.

And women are taking charge of the development of the business. And to underscore that, it is really the case that the opportunities we create company-wide are opportunities for all people that are looking to further their own career development, their skills and roles. We have men and women in all roles throughout the company with no discrimination whatsoever.

The New Economy: CGD provides and unrivalled medical service to its employees and their families, at a much reduced cost, compared to private health insurance. This access to a full range of specialist medical care is a major benefit.

At the bank’s headquarters, there is also top quality catering available to thousands of employees. In this restaurant, staff from every department, in every level of the company, enjoy a varied menu. It is part of the bank long-term investment in its people. 

Henrique Melo: Our products won’t guarantee our future. It is people who will guarantee our future. That is why investing in people, knowing how to connect people, and caring for people, developing their skills and talents – focusing them on the future – are also important with regards to development.

For us the success of our bank is dependent on the success of our people. Our people are the key to our success; they are the key to our future. Our bank is 135 years old. This long life – we owe it to our employees, as they are, in reality, responsible for our success; they are the key to our development.

The New Economy: Safety and security training is a key part of staff development at CGD. The training is much more extensive and sophisticated than the simple first aid programmes offered by other large companies and institutions. 

Safety exercises put the staff through their paces in a variety of challenging scenarios, equipping them to deal with any emergency. The idea is to make employees not just safer at work but also safer at home with their families. 

Henrique Melo: To us family is very, very important – we give preference to anything to do with supporting families. We seek to offer conditions that allow our employees to truly maintain strong relations with both the business and their family and that they do not forget about their family when coming to work – the health of our employees and their families.

We offer housing loan support and support when purchasing a home. We help out with the purchasing books and with scholarships. In short, we offer everything that employees might need to obtain a balanced family life.

With regard to the difficulties our employees face, whether personal problems or money problems, we have techniques, specialists, to support our employees. Social carers, psychologists, who are available no matter what the circumstances, to support our employees.

For us this represents a serious commitment. A balanced family life is fundamental to a balanced employee, and balanced employees, create a space inside themselves. They effectively have greater capacity to perform for the company.

The New Economy: The impressive original paintings which  adorn the entrance hall at CGD’s headquarters are reminders of the enduring values of artistic expression.

This remarkable building also houses a full sized auditorium; one of Lisbon’s leading venues for concerts, plays and recitals. The auditorium is the centrepiece of a vibrant cultural centre – something which extends CGD’s presence in the wider community.

The New Economy: What is your assessment of Caixa’s performance in the community?

Francisco Viana: CGD’s responsibility is not limited in the ability to achieve good financial results. CGD’s history comprises continuously the promotion of best practices in response to the challenges of Portuguese society – in different times and situations – always seeking to be present in direct support, or social responsibility initiatives.

The work undertaken under the sustainability programme, has earned several distinctions: both nationally and internationally. And it has also been recognised by the European Saving Banks Group, with an invitation to join the committee for corporate social responsibility, which also includes the representation of the European commission.

The New Economy: The dealing room at CGD is a great place to take the pulse of the global economy. All businesses are facing challenging times. CGD is looking to the future on the basis of sustainable and responsible business – a clear set of principles with which to work. 

The New Economy: Of course banking is your business; how do you define responsible banking in terms of sustainability?

António Nogueira Leite: I would say something which seems very obvious, but if you look at history, it has not been so obvious in people’s actions. It’s that careless lenders are as hazardous for society as careless borrowers. And therefore we clearly have a very serious commitment to being very responsible lenders, to being very responsible investors and to make sure every decision we take now is a decision, that will in itself, as far as we can see when we take it, be a sustainable decision.

So we are not short-term minded, we always try to solve adequately the trade off, between the need to take short-term decisions, and the long-term view that has to guide our actions.

We’ve seen CGD great work on sustainability but where does the organisation take it from here in terms of commitments for the future?

António Nogueira Leite: Well, basically two things: one thing is to keep strengthening the work that we have already done. And on the other hand it is to exchange experiences and views, with the best in class that we have around the world. Try to see where we can improve, where we can also provide our experience as guidance for others. I mean, we are humble, but not so humble that we do not recognise that we have been excelling in some areas.

But also be very careful and be very attentive to everything that is developing. And to knew areas in which we can invest and we can put our efforts in order to be as sustainable as we can be; in every moment in time for the future.