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Corporate Social Responsibility Report Services that unite

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Corporate Communications Department Av. Meritxell, 80 AD500 Andorra la Vella Principality of Andorra Tel.: (376) 88 80 26 [email protected] Numbers and lines that unite, the discovery of new contours that define shapes and profiles, accompanying brushstrokes...

The union and combined work of people, initiatives, projects, resources, new IT tools... give meaning and form to the Crèdit Andorrà Group to be able to accompany society with our services in the area of corporate social responsibility.

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5 1 STATEMENT BY THE CHIEF EXECUTIVE OFFICER

or some years now, corporate social responsibility has formed part of Crèdit Andorrà’s corporate identity, embodied in its desire to lead, to create wealth and boost the Fdevelopment of society and the environment. We have integrated ethical principles into all aspects of business management and professional thoroughness and transparency are still key elements in maintaining a relationship of trust with our stakeholders.

2009 brought with it a change in the international economic environment. At this new juncture, the importance of corporate social responsibility has become even clearer in contributing to sustainable development founded on good stakeholder relations. That’s why Crèdit Andorrà’s business model is based on stable relations with its customers, employees and society as a whole.

The principles of our business culture have helped us to successfully surmount the adverse financial and economic situation at an international level. We should also point out the renewal of the ratings granted by the international ratings agency for banks, Fitch Ratings, highly significant since this classification confirms a position of the utmost solidity and solvency compared with the financial sector in Andorra and abroad. The solvency, liquidity and sustained growth of the Crèdit Andorrà Group endorse this fact.

Regarding our Group’s growth, we have taken another step forward in our internationalisation process in Latin America by setting up the securities firm Crèdit Andorrà Panamá Securities, endorsed by the Comisión Nacional de Valores (CNV) of the Republic of Panama. This subsidiary, together with the bank Crèdit Andorrà (Panamá) that was created in 2008, consolidates the presence of the Crèdit Andorrà Group in the Republic of Panama. We have also expanded in Spain through the insurance holding ERM, of which the Crèdit Andorrà Group has formed a part since 2008.

In order to tackle the new challenges of the future with any kind of guarantee, and to ensure the utmost satisfaction of our customers and the excellence of our service, 2009 also saw work to prepare internally for the implementation of a software platform planned for 2010, which will allow us to adapt better to the changes and requirements of the future. This new platform has entailed the involvement of all the bank’s employees as well as a significant amount of training to build the rights skills so that the project can advance effectively, minimising the impact on customers.

Year after year, we work to constantly improve the management quality of the Crèdit Andorrà Group. As a result, in 2009 we had two international certificates renewed for the ISO 9001:2008, both for Crediinvest, Crèdit Andorrà’s fund manager, and the bank’s departments of Treasury and Capital Markets, and Market Administration and Control.

Crediinvest has also had its GIPS certification renewed (Global Investment Performance Standards) and complies with the principles established in the EU MiFID, so that the current levels of protection and information for investors have been enhanced. With regard to Crèdit Andorrà, we are also working to maintain the best banking practices and have therefore started to work on complying with this stipulation in the EU Directive.

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With regard to the companies that go to make up our corporate Group, of note is the awarding of the ISO 9001:2008 certificate to the fund manager Valira Capital Asset Management, located in Madrid.

Continuing with the philosophy of innovation and total customer focus, we have created and implemented a new business model by opening automatic branches that provide a 24-hour service, and we have also extended our timetable for attending the public throughout the bank’s branch network.

Crèdit Andorrà is the first financial group in Andorra and continues to lead its sector. It has the most extensive branch network in the country, something which, together with the rest of the channels, has meant that we can respond to the needs of our customers more quickly and effectively.

At Crèdit Andorrà we are aware that achieving our targets depends on our workforce. For this reason, we aim to attract, motivate and gain the loyalty of a competent and professional team of people. Throughout 2009, we strengthened our internal talent as the crux to employees’ professional enrichment in order to take on our new challenges: the implementation of the new software platform and the new international projects.

With regard to the environment, environmental management is integrated within our business activity and, since 2004, we have been employing an environmental management system that has been awarded the ISO 14001 certificate.

Although we have seen a year with less economic growth, at Crèdit Andorrà we have maintained our commitment to society, principally through the Crèdit Andorrà Foundation, by unfalteringly promoting initiatives in the areas of social assistance, education, culture, sport, the environment and economics. The contribution in 2009 came to 1.97% of our total net profit.

The aim of this report is to summarise Crèdit Andorrà’s commitment to its customers, its employees, society and the environment, as well as being a reflection of the bank’s achievements through socially responsible management. We hope the information in this report serves to bring you closer to the reality of Crèdit Andorrà.

Josep Peralba Duró Chief Executive Officer

7 2 INTRODUCTION

Scope

Once again, and since 2003, the aim of this report has been to show the Crèdit Andorrà Group’s commitment to corporate social responsibility, providing information on our strategy and progress throughout the year, from an economic, environmental and social perspective.

The figures published in this report cover the period between January 1 and December 31, 2009, except for the figures given in the section on the environment, which run from September 30, 2008 to September 30, 2009.

The report covers the Crèdit Andorrà Group. This year, the human resources figures also refer to the Group and not solely to the companies located in Andorra, as in earlier reports.

Preparation

As in previous years, this report has been drawn up according to accepted international principles as set out in the Guide for the Preparation of Sustainability Reports of the Global Reporting Initiative - Version 3.0 (G3). Also taken into account were the development indicators of the supplement to the G3 guideline on the financial services sector, in order to complement the general guidelines.

We have defined the content of the report according to the principles of materiality, stakeholder engagement, sustainability and completeness, as established by the G3. We have also taken into account the Crèdit Andorrà Group’s present and future contribution to the improvement or worsening of social, environmental and economic conditions as a result of its activities.

Regarding the principle of materiality, we have attempted to ensure that the report covers all those topics and indicators that reflect the significant economic, environmental and social impacts of the Crèdit Andorrà Group, as well as those we focus on in order to manage, measure and implement our strategy.

Stakeholder engagement

With regard to the principle of stakeholder engagement, the Crèdit Andorrà Group has a close relationship and fluid dialogue with its stakeholders in order to respond to their concerns and needs by using the most appropriate methods. For example, before organising an event or defining a project, we work with the associations, organisations or groups involved to find the best formula for carrying this out.

As a result of implementing the new software platform, we have created the digital newsletter entitled CorCrèdit, which is distributed via the intranet. This is a channel to establish two-way information and for relations between the bank’s different functional areas. We have also surveyed our workforce to find out their needs and respond to them accordingly and our employees have

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been able to make suggestions and ask questions, answered in person in informative sessions or explained and resolved via the CorCrèdit newsletter. Lastly, also of note are the Key Users; those people responsible for passing on these processes to the remaining bank employees.

With our staff we have also worked on identifying the main objectives and messages to prepare a corporate campaign aimed at service. We have set up several specific working groups to discover and establish the different campaign lines and to validate it. The result has been coherence between our internal and external messages, making the campaign more effective as well as the service we offer our customers.

Self-declared application level A

The content principles of sustainability and completeness have guided us in determining the materiality of the information and the indicators which allow us to monitor this.

According to the Guide for the Preparation of Sustainability Reports of the Global Reporting Initiative - Version 3.0 (G3), this report has a self-declared application level A.

The Guide has certain requirements regarding its levels of application. The Crèdit Andorrà Group believes that this corporate social responsibility report meets the requirements associated with level A, the highest G3 application level, which means that it complies with the specifications concerning the management profile and focus and provides all the development and supplementary indicators for the sector.

Corporate Communications Department Av. Meritxell, 80 AD500 Andorra la Vella Principality of Andorra Tel.: (376) 88 80 26 [email protected]

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1 Corporate Social Responsibility Report 2009

3 PROFILE OF THE GROUP

he Crèdit Andorrà Group is the leading financial group in Andorra. Since the financial institution, Crèdit Andorrà, was founded in 1949, we have strived to offer a wide Trange of financial products and services to our Private Banking, Individual Banking and Corporate Banking customers, as well as a large variety of social initiatives in order to 26 25 contribute to the progress of society.

24 We operate mainly in the Principality of Andorra. However, over the last few years we have undergone an expa nsion process that has led us to increase our international presence in order 23 to grow, diversify our business and ensure future competitiveness. We are currently also present in Panama, Uruguay, Switzerland, Luxembourg and Spain. 22 At the Crèdit Andorrà Group we work with the desire to establish long-lasting relations with our 21 customers, based on professionalism, rigour, trust and ethical behaviour. We want to progress together with our country and that is why our social responsibility policy lies at the heart of our contribution to sustainable development and to the generation of value for all our stakeholders.

Crèdit Andorrà is a 100% Andorran financial institution and 21% of its shares belong to its 20 employees. This is a historical and relevant fact that denotes the organisation’s commitment to its staff, an enthusiastic, professional team that works to offer our customers a high level of quality in service. 19

18 As a financial institution we have basic lines of business, namelyPrivate Banking and Commercial Banking, now divided into Corporate Banking and Individual Banking, to serve the current and 17 future needs of our customers. This service is complemented with other business lines offered 16 by the Group, such as insurance and asset management at an international level, among others. 15 14 13 12

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2 Crèdit Centre building in Andorra la Vella (Principality of Andorra)

11 Our management has always been characterised by being totally customer oriented and by our commitment to innovation and quality in order to meet our customers’ expectations and to adapt to their needs. Our objective and undertaking is to apply best banking practices and international standards and to be a benchmark in the international banking system.

We strive for excellence in our service and believe in innovation as a means of tackling the challenges of the future.

Through the Crèdit Andorrà Foundation we carry out a significant range of social actions in the areas of education, culture and social assistance programmes.

Crèdit Andorrà Group

Company Banking and financial activities Insurance Social activity Holdings

Crèdit Andorrà Crèdit Assegurances, Tourism sector Crèdit Andorrà life insurance Foundation Banco Crèdit Andorrà (Panamá) ENSISA, snow Vincles, actuarial services Oficina de representación de Uruguay consultancy (Representative office of Uruguay) NEVASA, snow Financera services d’Assegurances, Asset management SEMTEE, leisure non-life insurance services Crèdit Andorrà Asset Management ERM, Spain Crèdit Iniciatives, Crediinvest S.A. (Andorra), fund management venture capital Crèdit Andorrà Panamá Securities (Panamá), SPI, copyright securities firm services Valira Capital Asset Management (Madrid), fund management Private Investment Management (Switzerland), asset management Crediinvest Sicav / Investcredit Sicav (Luxembourg), collective investment companies

Ratings, awards and certifications

Economics Ratings · Fitch Ratings: long-term “A”, short-term “F1”, individual “B” and support “4”, with a stable outlook · Top 1000 ranking: position 562 (July 2009 edition) Awards · Andorra Bank of the Year (2002, 2003, 2004, 2006, 2007 and 2008 according to the financial publication, The Banker, of the Financial Times Group) · Francophonie 2009 Economic Prize, awarded by the Forum Francophone des Affaires · Award from the Club of Portuguese Entrepreneurs of Andorra, 2009 Certification · GIPS certification for Crediinvest

Environment Certification · ISO 14001:2004

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Quality Certifications · ISO 9001:2008 for the departments of Treasury and Capital Market and of Market Administration and Control at Crèdit Andorrà · ISO 9001:2008 for Crediinvest · ISO 9001:2008 for Valira Capital Asset Management

Participation in associations

Crèdit Andorrà has been a member of the Association of Andorran Banks (ABA) since 1960, when the association was founded. Since 2006 it has also formed part of the AIMA (Alternative Investment Management Association), founded in 1990. This is the leading global association for alternative investment management organisations.

Preserving and protecting the environment is a constant concern for the Crèdit Andorrà Group, a commitment that was highlighted publicly in 1998 with the signing of the United Nations Environmental Programme (UNEP), with the mission to protect the environment. Crèdit Andorrà was the first Andorran bank to join and is currently the only one.

BRANCH NETWORK AND SUBSIDIARIES OF THE GROUP

Crèdit Andorrà has the largest branch network in the Principality of Andorra, providing Commercial Banking services both for individuals and firms, as well as Private Banking. At year-end 2009, Crèdit Andorrà had a network of 17 branches and 2 automatic branches. In total, it has 44 automatic teller machines, 5 change dispensers and 5 deposit terminals operating 24 hours a day in order to provide its customers with a permanent service.

In order to offer more service to customers and to adapt better to their timetables, we have created automatic branches, the first installed at the Illa Carlemany shopping centre and then also at other points in the network, it has also been applied in Soldeu, reconverting the branch that was previously at this location. This is a pioneering model for bank branches in Andorra that offers greater freedom in terms of timetable and autonomy, based on the practicality and service offered by new technologies.

Inside a Crèdit Andorrà branch

13 Branches

Andorra la Vella Encamp La Massana Main Branch Copríncep Episcopal Les Fontetes Av. Meritxell, 80 Av. de Joan Martí, 67 Av. del Través, 1 AD500 Andorra la Vella AD200 Encamp AD400 La Massana Tel.: +376 88 86 00 / Fax: +376 88 86 01 Tel.: +376 88 84 20 / Fax: +376 88 84 21 Tel.: +376 88 85 70 / Fax: +376 88 85 71 Tel.: Corporate banking: +376 88 93 00 Pas de la Casa Sant Antoni Plaça Rebés C/ Sant Jordi, 7 Av. Sant Antoni, 34 Pl. Rebés, 3 AD200 Pas de la Casa AD400 La Massana AD500 Andorra la Vella Tel.: +376 88 84 40 / Fax: +376 88 84 41 Tel.: +376 88 85 00 / Fax: +376 88 85 01 Tel.: +376 88 81 00 / 88 83 60 Fax: +376 88 83 61 Plaça del Consell Ordino Tel.: Corporate banking: +376 88 97 00 Pl. del Consell, 7 AD200 Encamp Ordino Prada Ramon Tel.: +376 88 84 00 / Fax: +376 88 84 01 C/ Major C/ Maria Pla, 30 AD300 Ordino AD500 Andorra la Vella Escaldes-Engordany Tel.: +376 88 85 50 / Fax: +376 88 85 51 Tel.: +376 88 86 70 / Fax: +376 88 86 71 Tel.: Corporate banking: +376 88 90 95 Escaldes Sant Julià de Lòria Av. Carlemany, 42 Plaça Laurèdia Prat de la Creu AD700 Escaldes-Engordany Av. Verge de Canòlich, 55 C/ Prat de la Creu, 83 Tel.: +376 88 82 00 / Fax: +376 88 82 01 AD600 Sant Julià de Lòria AD500 Andorra la Vella Tel.: Corporate banking: +376 88 94 00 Tel.: +376 88 83 40 / Fax: +376 88 83 41 Tel.: +376 88 81 60 / Fax: +376 88 81 61 Engordany Verge de Canòlich Santa Coloma Av. del Pessebre, 27 Av. Verge de Canòlich, 17-19 Av. d’Enclar, 53 AD700 Escaldes-Engordany AD600 Sant Julià de Lòria AD500 Andorra la Vella Tel.: +376 88 82 80 / Fax: +376 88 82 81 Tel.: +376 88 83 00 / Fax: +376 88 83 01 Tel.: +376 88 81 80 / Fax: +376 88 81 81 Fiter i Rossell Canillo Av. Fiter i Rossell, 22 AD700 Escaldes-Engordany Canillo Tel.: +376 88 82 60 / Fax: +376 88 82 61 Pl. Major AD100 Canillo Tel.: +376 88 84 60 / Fax: +376 88 84 61

Automatic branches

Illa Carlemany Soldeu Illa Carlemany shopping centre Ctra. General, s/n (Soldeu)

24-hr technical helpline: +376 88 87 00

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Crèdit Andorrà Group

Banking and financial services Private Investment Management ERM Holding PIM Private Investment Management S.A. Barcelona Banco Crèdit Andorrà (Panamá) Case Postale 539 Caravel·la La Niña, 12, 9è Regus Business Centre Rue du Général-Dufour 20 08017 Barcelona Torres de las Américas CH - 1211 Geneva 17 Tel.: +34 932 803 133 Torre A, Piso 10 Tel.: +41 22 849 02 90 Punta Pacífica Girona Panama, Republic of Panama Investcredit SICAV – Crediinvest SICAV Av. Jaume I, 76, 2n Tel.: +507 306 48 00 Sociétés d’investissement à capital variable 17001 Girona Registered Office: Aerogolf Center, Tel.: +34 972 21 28 00 Oficina de representación de Uruguay 1A Hoehenhof, (Representative office of Uruguay) L-1736 Senningerberg, Palma de Mallorca Ruta 8 km. 17.500 (Zonamérica) Luxembourg Plaza del Olivar 1, 2n Edificio @3 Oficina 007 07002 Palma de Mallorca PC: 91600 Insurance Tel.: +34 971 720 977 Montevideo, Uruguay Tel.: +598 2 5184895 Crèdit Assegurances Seville C/ Bonaventura Armengol, 6-8 2n Párroco Antonio Gómez Villalobos, 100 Asset Management AD500 Andorra la Vella 41006 Seville Principality of Andorra Tel.: +34 954 636 890 Crèdit Andorrà Asset Management Tel.: +376 88 89 00 Crediinvest SA Tarragona C/ Bonaventura Armengol, 6-8 Vincles Pl. de Mossèn Cinto Verdaguer, 5 entl. 2a AD500 Andorra la Vella C/ Bonaventura Armengol, 6-8 2n 43003 Tarragona Principality of Andorra AD500 Andorra la Vella Tel.: +34 977 252 473 Tel.: +376 88 95 10 Principality of Andorra Tel.: +376 88 89 00 Social activity Crèdit Andorrà Panamá Securities Regus Business Centre Crèdit Andorrà Foundation Torres de las Américas Av. Meritxell, 80 Torre A, Piso 10 AD500 Andorra la Vella Punta Pacífica Principality of Andorra Panama, Republic of Panama Tel.: +376 88 88 80 Tel.: +507 306 48 00

Valira Capital Asset Management C/ de Moreto, 5 28014 Madrid Tel.: +34 914 290 837

15 4 GOVERNANCE STRUCTURE

he Board of Directors, on which the company’s majority shareholders are represented, is the top level of governance at Crèdit Andorrà. Our employees, who hold 21% of T shares in the enterprise, are represented at the General Shareholders’ Meeting by the Chief Executive Officer.

In its current phase of international expansion and consolidation as a leading financial institution in Andorra, the Crèdit Andorrà Group has set up an Advisory Council made up of three leading figures from the world of finance: lecturer and former director of the International Monetary Fund (IMF) and of the World Bank, Joaquim Muns; the Spanish expert and founding member of Founder Partners, Enrique de Leyva, and the chairman of BRED, the largest French regional bank in the Banque Populaire group, Stève Gentili.

This new body adds value, given the growing process of international expansion, and is an unusual figure in Andorra banking that highlights the maturity of the bank’s management and its international vision to anticipate the future changes in the market with effective, high quality responses.

The Group and corporate governance

Crèdit Andorrà heads a business group with a clear international vocation, whose main aim is to offer global services to its customers. Our organisation acts in line with current Andorran legislation and according to regulations from supranational bodies such as the OECD and the European Union. Our good practices contain and ensure compliance with the OECD principles concerning corporate governance (Sound Corporate Governance) for those banks of the Basle Committee on Banking Supervision.

The Regulations of the Crèdit Andorrà Board of Directors, approved on November 19, 2008, contain this legal framework and establish the principles of action for this governance body and its functions. They detail the rights and duties of the members and their personal responsibility when holding office, as well as clarifying conflicts of interest.

For our organisation, the principle of good governance is undertaken based on the belief that it helps us to prevent and avoid anomalies and guarantees the diligent functioning of our system for the good of our customers.

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Organs of government

Adaptation to the bank’s future strategy and to the new business context has given rise to a new executive committee.

Board of Directors

Chairman of the Board of Directors: Antoni Pintat Santolària Vice-chairman: Jaume Casal Mor Chief Executive Officer / Secretary: Josep Peralba Duró Member of the Board: Rosa Pintat Santolària Member of the Board: Maria Reig Moles Member of the Board: Josep Vidal Martí

Executive Committee Members

Chief Executive Officer / General Manager: Josep Peralba Duró Corporate Deputy General Manager: Xavier Cornella Grau Business Deputy General Manager: Xavier Cornella Castel Private Banking Division Director: David Betbesé Aleix Insurance Group Director: Josep Brunet Niu Commercial Banking Division Director: Jordi Cinca Mateos Financial Division Director: José Luis Dorado Ocaña General Secretary to the C.E.O.: Agustí Garcia Puig Loans Department Director: Frederic Giné Diumenge Accounting, Reporting and Corporate Risk Control Director: Josep Lluís Grasa Jordana Resources Division Director: Ramon Lladós Bernaus

Note: At January 1, 2009

17 5 SOCIALLY RESPONSIBLE MANAGEMENT

t Crèdit Andorrà, sustainability is key to our culture and of strategic value for the Group. We are committed to taking on board the concerns and expectations of our Astakeholders on social and environmental matters and therefore strive to continue responsibly managing our economic, social and environmental resources, always ensuring quality in the services we provide.

Since 2004, Crèdit Andorrà has had a corporate social responsibility plan in operation with specific measures to be taken both in the environmental and social spheres. This plan is reviewed regularly to set new objectives and further strengthen the bank’s commitment to sustainability.

Strategic lines of the social responsibility action plan

1. Monitoring and control 2. Environment 3. Customers 4. Workforce 5. Society 6. Communication of corporate social responsibility 7. Holdings, suppliers and contractors

Crèdit Andorrà’s social and environmental commitment forms the basis of our service to the country. The bank is a benchmark in Andorra in terms of social policy, generating opportunities for professionals and attracting and keeping talent. It also bases all its actions on progress, contributing to the progress of its customers, employees, shareholders and country.

Ethical management and respect for human rights are an essential and integral part of carrying out the business of the Crèdit Andorrà Group, both with regard to its workforce as well as other stakeholders. In this respect, and to guarantee ethical and appropriate behaviour, all employees in the Crèdit Andorrà Group sign the Crèdit Andorrà Group code of ethics and conduct and the Manual to prevent money laundering.

GROUP PHILOSOPHY

At Crèdit Andorrà we believe that it’s essential to apply the values established in our model of culture at all times in order to be close to people and to contribute in a sustainable way to the progress of our society.

We see sustainability as the commitment to integrate our stakeholders’ social and environmental concerns and expectations as a strategic value, presenting quality services and acting responsibly with society and the environment.

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A vocation for service, a close relationship with customers, transparency in management, respect for and preservation of the environment, the promotion of social, educational, cultural, sporting, environmental and economic initiatives, the responsible management of human resources and, in short, a large number of actions as part of the bank’s commitment to a better society, are the raison d’être of our activity.

Some of the essential aspects of our cultural model are:

· Total customer focus · Always working in line with the customers’ objectives / interests · Clear and transparent communication · Proactiveness and innovation · Teamwork and attracting talent

These points guide and help us advance along the lines of satisfying the interests and challenges presented to us by our different stakeholders. All of us who form part of the Crèdit Andorrà Group share this spirit and philosophy and apply it every day in our good business practices.

Based on creating value, we target our efforts at generating positive results by knowing, understanding, adapting to and meeting the needs and expectations of each of the groups we have relations with.

STAKEHOLDERS

At Crèdit Andorrà we strive to achieve a high level of relations and engagement with stakeholders, given that the main impacts produced by the Group’s activities on the environment help to generate wealth and boost sustainable development.

We therefore take on our responsibilities towards our stakeholders, society and the environment with efficacy and a clear orientation towards the quality of service, profitability and efficiency, in a constant process of renewal befitting the financial services market.

Human resources

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42 43 6 CUSTOMERS 41 40 44 t the Crèdit Andorrà Group we have a totally customer-oriented philosophy, with customers at the essential core of our business. That’s why it’s vital to actively attend to 39 38 their needs and our aim is to achieve maximum quality and ongoing improvement in 9 8 A 45 order to identify and satisfy such needs. We therefore listen to our customers and search for the 46 best solution to their requirements, to offer them the best product or service. 37 36 10 7 47

6 35 34 Recognition and international standards that endorse our management 5 33 4 In order to continue guaranteeing ongoing improvement and customer satisfaction and to align ourselves with the best practices worldwide in asset management, the Crèdit Andorrà Group has 11 3 32 48 once again renewed its two international ISO 9001:2008 certificates that guarantee customers’ 2 high quality standards in our financial business. Specifically, theISO 9001:2008 has been renewed 12 1 for Crediinvest, the Group’s fund manager, and also for the bank’s Treasury and Capital Market and Market Administration and Control departments. We have received these certifications from BSI Management Systems (British Standard Institution), an international certification board 13 specialised in the areas of quality, environment, health and safety and information security. 14 49 These ISO 9001:2008 certificates are in addition to the GIPS certification (Global Investment 31 Performance Standards) held by Crediinvest, the standard adopted three years ago that guarantees 15 the use of ethical, transparent processes when calculating and publishing customers’ returns on investment, as well as certifying that the data published are standardised in terms of other 29 30 investment fund management firms internationally. The GIPS have become a benchmark for 28 50 25 good governance practices in asset management and private banking firms. This ratification of 27 26 24 our compliance with international standards allows us to consolidate our position in terms of the 21 22 best international standards. 23 16 20 19 Since December 2008, with Crediinvest we have also followed the principles established in the EU 17 MiFID (Markets in Financial Instruments Directive). This European standard is a framework that 18 increases the current levels of protection and information for investors and regulates, safeguarding their interests, the processes of executing and attributing orders, managing conflicts of interest and transparency in trading operations. In this respect, we have incorporated policies and procedures to ensure that all agents within the organisation comply with the established requirements. At 51 the Crèdit Andorrà Group we therefore strive to maintain the best banking practices, taking the European standards as our reference in regulating the investor protection and information related to investment services, as stipulated by the EU Markets in Financial Instruments Directive (MiFID).

Finally, Crediinvest has formed part of the AIMA (Alternative Investment Management Association) since 2006, the most important world association for organisations working with alternative management products. We are the first Andorran institution to belong to this association, which proposes and prepares lines of action within the sector with regard to the legislation, regulation and standards of good governance, among others. Its members come from 46 countries around the world and, in order to join, an organisation must have accredited prestige and recognised experience in alternative management.

21 With regard to the Group in general, one important fact is that Valira Capital Asset Management, the Crèdit Andorrà Group’s fund manager, obtained ISO 9001:2008 certification in 2009. This recognises the operational maintenance of a quality management system and of ongoing improvement in the processes of administration, representation and management of collective investment institutions; in the discretional management of investment portfolios; in investment consultancy and in the selling of shares or holdings in collective investment institutions.

Valira Capital Asset Management is a management firm, located in Madrid and 60% owned by Crèdit Andorrà, which started operations in December 2007, providing advisory services for management products and strategies. Valira operates under the supervision and regulation of the Comisión Nacional del Mercado de Valores (CNMV).

Creation of a new business model: automatic branches

New to 2009, and with the clear aim of offering customers more freedom in terms of office hours as well as more autonomy, we have implemented automatic branches as a new business model and have also installed terminals for deposits and small change dispensers at the ATM areas of traditional branches. The Main Branch and the branch at Plaça Rebés in Andorra la Vella and the one on Avinguda Carlemany in Escaldes-Engordany already have these services.

The automatic branch model is already a reality in different locations: at Illa Carlemany, a strategic site located in the heart of the country’s commercial area in Escaldes-Engordany, and also at Soldeu, reflecting our desire to adapt to key segments for the economy such as retail trade and tourism.

This is a pioneering model in Andorra that provides a 24-hour service. It is particularly designed to serve companies, retailers and individuals with ATMs and terminals where they can make deposits, change dispensers and terminals for queries via e-Crèdit, our online banking system.

The fact that we are promoting this kind of banking in Andorra shows our clear desire to adapt to the new trends in the market: it offers customers more autonomy and freedom to carry out transactions that do not require managers, while enhancing the potential of personalised treatment in transactions that do require assistance in person through our traditional branch network.

Automatic branch at the Illa Carlemany shopping centre

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In order to innovate by offering technology and service, we have also created a special card to use the services at these branches. This card is designed especially for depositing cash and obtaining small change.

Extension of office hours

Another step forward in serving the country, ensuring a close relationship with customers and adapting to their needs, has been the extension of our office hours at midday.

As from October 2009, we have been open to the public at midday from Monday to Friday. Seven branches from the bank’s commercial network are open continuously from 9 am to 5 pm and a further nine branches have extended their office hours, now open from 9 am to 1.30 pm and from 2.30 pm to 5 pm, being open for an extra hour to the public at midday. This effort has been to adapt to our customers’ employment situation, as with these new timetables it is easier for those who work to access the bank.

Another change in the hours open to the public has been the closing, every Saturday, of the Crèdit Andorrà branches. This decision results from an agreement of all organisations that belong to the Association of Andorran Banks (ABA) in order to improve their employees’ work-life balance.

Implementation of a new software platform

Also of note is the start-up of the new banking platform in 2010. This is a management system that includes significant technological advantages to successfully tackle the challenges of the future. The new banking platform will provide add speed and security to transactions and improve communication between the bank and its customers; in short, the aim is to progress even further in the quality of the service we provide.

The implementation of this system will entail changes both in operations and in the format of documentation received by our customers. That’s why Crèdit Andorrà has set up two channels where customers can obtain information and request more details: a hotline (+376 88 99 77) and an information area accessed via the website at www.creditandorra.ad.

Crèdit Direct Line

We have finally created a telephone banking service aimed at all those who wish to make any kind of query or transaction through their account via the telephone, without the need to go to a branch. Callers are attended by specialised managers who can answer in Catalan, Spanish, French, English or Portuguese. This system guarantees maximum security, as users have a PIN to identify themselves in order to access the service.

23 EVALUATION OF THE DEGREE OF CUSTOMER SATISFACTION

Customer satisfaction, be it for individuals or firms, is one of the main objectives of the Crèdit Andorrà Group and different actions are carried out to achieve this aim, such as surveys to determine their degree of satisfaction.

In 2009, Crèdit Andorrà carried out a survey to evaluate the degree of customer satisfaction with Individual Banking, taking a representative sample and using a questionnaire. The overall rating for Crèdit Andorrà was 7.4 on average, on a scale from 0 to 10. The most highly rated aspects by customers, with a score of more than 7, were: the friendliness and professionalism of the managers, short waiting time at branches, speed in resolving problems and complaints, and the amount and clarity of the information received on products and services.

These results are evidence of Crèdit Andorrà’s total customer orientation, one of the core values of the bank’s cultural model.

PRODUCTS AND SERVICES

The worldwide economic crisis has been reflected in the key economic indicators. However, at Crèdit Andorrà we have remained faithful to our commitment to support firms and individuals and have even strengthened this commitment within an economic scenario that is far from favourable.

At the bank, we strive to offer a wide range of financial products and services designed to meet the different needs of customers, searching for tailor-made solutions to current and future challenges.

For more information on the products and services offered by Crèdit Andorrà, you can consult www.creditandorra.ad.

Socially responsible products

In line with the commitment undertaken by the Crèdit Andorrà Group towards people and the environment, we offer our customers a range of socially responsible products.

Clau Visa Unicef: Collaboration with UNICEF

Crèdit Andorrà has been collaborating on development projects with the Andorra National Committee of UNICEF since 2004. In order to raise awareness among our customers and make it possible for them to collaborate in aid campaigns for the most disadvantaged people, we introduced the Clau Visa Unicef card.

24 Corporate Social Responsibility Report 2009

This credit card can be used to pay more conveniently and securely for purchases or services at commercial establishments, as well as providing cash at any ATM, at the same time as helping to implement a global campaign to fight against HIV-AIDS on the African continent. Customers take part in a project with a minimum annual contribution of 30 euros. Added to this is the contribution made by Crèdit Andorrà, providing the project with 50% of its earnings from the commissions charged for using the Clau Visa Unicef card abroad, as well as an annual supplementary contribution by Crèdit Andorrà.

Clau Visa Unicef 2007 2008 2009

Number of card users 740 790 735

Donations from customers €28,635 €24,535 €24,830

Bank’s contribution €37,240 €29,240 €26,454

Socially responsible investment fund - Crediinvest SICAV Sustainability

This fund, managed by Crediinvest, is the only one in the country that offers customers the chance to invest in leading firms in sectors closely related to sustainable and green growth or that have incorporated criteria of environmental responsibility into their operations. These companies are related to agriculture, water, renewable energy sources and recycling, among others.

The product, 100% equity, is aimed at all investors looking for solid, sustained returns over time by investing in the stock market who are prepared to keep their investment over the medium/ long term. Its reference index is the MSCI WORLD EUR, a worldwide equity reference index.

25 Crèditvida Previsió

At Crèdit Andorrà, through our insurance company Crèdit Assegurances, we are offering customers a new product, Crèditvida Previsió. This is life assurance that, in addition to paying out in the event of death, also offers the relatives of the insured an extensive service when he or she dies, including professional advice, all the administrative paperwork and procedures and the payment of any repatriation and burial costs. The product also has other optional covers in the case of death caused by accident.

Crèditvida Capital

Crèditvida Capital is a life insurance policy from Crèdit Assegurances created to provide financial aid to the relatives of the insured in the case of death. The minimum capital insured is 12,000 euros and the policy can be tailored to customers’ requirements, adding extra cover such as permanent disability, additional capital in the case of accident, advance payment of the sum for death in the case of a serious illness being diagnosed or even additional capital in the case of the simultaneous death of a partner as a consequence of an accident.

PIAM and Crèditsalut

Crèdit Assegurances also offers the life insurance policies known as PIAM and Crèditsalut, two products with the best refunds for medical expenses on the market, such as up to a 100% refund for medical and hospitalisation costs and a minimum pay-out of 6,000 euros in the case of a serious illness being diagnosed or death.

New insurance cover for cards

To continue offering the best service and maximum security in transactions, Crèdit Andorrà has added two new insurance policies for travel assistance on its cards. These new covers, which replace the protected purchase insurance, are for loss of luggage and assault while at an ATM.

With the loss of luggage insurance, customers are covered for the value of the luggage should it be lost or damaged during flights paid for with their card. This cover insures the difference between the compensation paid by the airline and the value of the lost or damaged luggage. With regard to the insurance for assault at an ATM, customers are protected should an attack occur within two hours after having withdrawn cash from an ATM outside Andorra or their normal place of residence.

Launch of the ecological Crèditcotxe

Taking advantage of our participation at the Andorra la Vella Fair, we have created a promotional product to finance vehicles classed as ecological (CO2 emissions < 120 mg), with customers benefitting from a 10% discount on the interest paid.

26 Corporate Social Responsibility Report 2009

More advantages and discounts for customers

In order to improve the products we offer our customers, new to 2009 and thanks to an agreement between the Andorran Carnet Jove Association and Vallnord, all holders of the Carnet Jove 16PUNT30 card are able to benefit from a 2x1 promotion when buying a winter day pass at Vallnord and a summer day pass at Vallnord Mountain Park.

These advantages are in addition to the discounts at establishments in Andorra, to the 100,000 discounts on the Carnet Jove programme around Europe and other financial advantages, including the use, free of charge, of all ATMs outside Andorra. The number of Carnet Jove 16PUNT30 cards issued in 2009 totalled 4,676, compared with 3,353 in 2008.

Another initiative in 2009 to add advantages to our bank’s cards has been consolidated by signing an agreement with Estació Enclar Carburants Andorrans (EECA), so that customers who pay with any Crèdit Andorrà card at the CEPSA and Elf petrol stations in Andorra get a 3% discount on fuel, tyres and other products that can be bought at the petrol station shops.

In skiing, of note is the renewal of the sponsorship agreement between Crèdit Andorrà and Grandvalira for the winter and summer season, allowing the bank’s customers to benefit from different discounts and promotions on seasonal activities. Specifically, Crèdit Andorrà customers can get a 10% discount on ski passes lasting between 1 and 7 days when they pay with a Crèdit Andorrà card. Moreover, if they buy a pass for the ski season, they can finance it via our ’Crèdit Ràpid’ fast loan service.

On the other hand, and as part of the agreement between the Andorran Ski Federation, Grandvalira and Crèdit Andorrà to sponsor the Alpine Skiing European Cup, customers have benefitted from a 2x1 promotion when buying a one-day ski pass at Grandvalira.

These agreements show Crèdit Andorrà’s desire to support a strategic sector for the progress and dynamism of Andorra, since snow sports and mountain activities are one of the country’s main economic engines.

27 COMMUNICATION AND DIALOGUE

One of the Crèdit Andorrà Group’s firmest commitments in its customer relations is to providing clear, transparent communication. To achieve this aim, we strive to ensure that both internal and external communication is fluid and clear and based on active listening and mutual trust. Our conduct is governed by compatibility and sincerity.

Following regulations, we ensure compliance with Act 15/2003, dated December 18, on the protection of personal data in communication sent to customers and in handling their information, and we have received no complaint or claim regarding this issue. We also respect the ethical standards and conduct set by the Andorra Institute of Finance, the INAF Ethical Code. To this end, an external firm audits our investment product and service campaigns every year to ensure they comply with the codes of conduct and ethics of the Andorra Institute of Finance regarding the communication of investment products and services.

On the other hand, the Code of Ethics and Conduct of the Crèdit Andorrà Group contains the key values for our organisation, as well as the actions that must be carried out by our employees in their daily work.

To ensure that customers of Crèdit Andorrà have all the information they need on a particular product or service, in 2009 some new aspects were introduced in the area of customer communication, detailed below:

· Survey to evaluate the degree of customer satisfaction, as an instrument to know how customers perceive the service provided and the extent to which it meets their requirements or needs.

· Emailing (electronic marketing) as an instrument to communicate new products and services, complementing the traditional postal mailings.

· Creation and launch of a website for private banking customers. This instrument is used to publicise the bank worldwide. The website introduces Andorra and the bank and describes the main products and services provided by Crèdit Andorrà for its private banking customers. It also includes tools so that users can easily get in touch with the bank and also locate our sites around the world.

In parallel to the website, the information it contains has been produced in dossier format as a physical support for the team of private banking managers. This dossier helps them to inform about Andorra, the bank and how we can help our customers.

In 2009 we also worked on the project to create new bank websites: the corporate site, the commercial site, the site for the insurance group and the Foundation website.

· A telephone hotline has been created to provide information on products and services, at +376 88 99 88. This number appears on all product and service communication carried out by the bank, whether for advertising purposes or not. The service is offered from Monday to Friday from 8.45 am to 6 pm, non-stop.

28 Corporate Social Responsibility Report 2009

Lastly, the change in the IT platform planned for 2010 has involved a great effort in terms of communication to customers. Firstly, we have created a microsite, accessible from the bank’s corporate website at www.creditandorra.ad, so that customers can always be up-to-date on the changes affecting them. And, secondly, we have also provided a special telephone hotline for queries related to the platform.

Objectives for 2010

Offer advantages and discounts to specific customer segments.

Strengthen complementary customer care channels.

Continue with the line of work creating socially responsible products.

29 4

2 3 6

1 8 7 Corporate Social Responsibility Report 2009

7 HUMAN RESOURCES

he success of the Crèdit Andorrà Group is based on the quality, skill and professionalism of its workforce, helping the bank to evolve and progress over the last few years. Excellent Tmanagement and high quality people that go to make up the Group are key to offering our customers a better service. That’s why Crèdit Andorrà works on its capacity to add value for customers, fostering the professional growth of our employees and generating and requiring commitment and dedication from them, as well as compliance with the basic principles of professional ethics, including confidentiality, prudence and discretion, as befits our Group.

Teamwork and leadership have been two crucial elements in taking on the main challenges of the year: the change in the software platform and the new international projects. We have strengthened the involvement of all members of the team and have given them training, as well as guiding collaborators towards the achievement of strategic goals.

In order to improve the operational effectiveness of the Group’s Human Resources department, in 2009 we implemented a new IT system to manage human resources that has led to greater performance and increased efficacy and efficiency in people management.

TAKING ON CHALLENGES: THE SOFTWARE PLATFORM AND NEW INTERNATIONAL PROJECTS 4 Given the need to have state of the art technology to tackle the new challenges of the future and to serve our customers around the world, we decided that we needed to implement a software platform that would allow us to adapt better to these changes, and this will come into operation in 2010.

The change towards the new software platform, Avaloq, has entailed the involvement of employees as a key element in its successful achievement. That is why all Crèdit Andorrà collaborators have taken part in this project, to a different degree and according their responsibilities within the bank and to 2 3 6 how they are going to use the new processes in their work. We have created different multidisciplinary working groups with people from different functional areas of the bank. The core is made up of the CorCrèdit team, those people who are involved in the project on a daily basis. This team also trains 5 employees from the Swiss firm that is helping us to implement the new platform. Consequently, the people who go to make up this team have adopted English as their working language, in an 1 8 increasingly international management environment. 7 The collaboration of the rest of the bank’s staff has also played a key role in developing a project of this magnitude.

Of note is the relevant role played by Key Users, those employees from different departments who have and will have a very important role in developing this project because they are the ones involved in defining and implementing the processes, subsequently becoming responsible for the rest of the bank’s staff learning how to use the platform. We can therefore say that user training has been carried out completely within the bank, with internal trainers.

31 Within this context, training has been essential to build the skills that allow people to successfully push the project forward and minimise customer impact. Everyone has received the necessary training for their position, following a blended learning methodology that combines class-based training sessions and trials with online training. E-learning has been implemented at the bank as a result of this project and will be exploited in the future for other kinds of training, such as in products or skills.

The CorCrèdit team at work

The project for this new banking platform has also led to the professional enrichment of those involved, both due to the work carried out with other departments and external firms as well as due to the training received in technical aspects and languages. And, particularly for those people who have been most involved, a series of new technological skills has been generated, in terms of relations and project management, that have enhanced the Group’s human capital.

We have used the corporate intranet and a newsletter in order to inform all employees on how the Avaloq project is developing. These channels have also been used to establish a two-way information flow and contact between the bank’s different functional areas, as employees have been able to provide their own suggestions and have asked questions that are answered later during face-to-face information sessions. We have also surveyed employees to get to know their opinions concerning the project and thereby be able to tackle the challenges more appropriately and apply improvements.

Implementing this new software platform is the most ambitious technological project we have undertaken. It has involved the participation of a team of more than 60 full-time IT staff, working between Andorra and Switzerland, plus the support and hard work of the rest of the organisation, i.e. of a further 350 people in total, testing and being trained in the new environment. The estimate in hours totals 12,000 days of work dedicated to the project.

As part of the Crèdit Andorrà Group’s internationalisation process, we have further strengthened our language training, continuing to give this kind of training both within and outside office hours, to train employees to take on the new challenges effectively. The management of the international project has involved the contribution of different areas of the bank, as well as a change in work

32 Corporate Social Responsibility Report 2009

dynamics that have given rise to a more global and less local vision. This whole process has also entailed professional growth and enrichment for our employees and another consequence of this process has been the opportunity for an international career working in Latin America.

WORKFORCE PROFILE AND EQUAL OPPORTUNITY

The workforce of the Crèdit Andorrà Group has continued to grow over the last few years due to new companies joining the Group and our international expansion. In 2009, the total number of Group employees was 482, 409, employed by companies located in Andorra.

Trends

500 468 482 437

400 428 415 409

300

200 Crèdit Andorrà Group

100 Crèdit Andorrà Number of employees Number 2007 2008 2009

Age pyramid

61-65 years 56-60 years 51-55 years 46-50 years 41-45 years 36-40 years

31-35 years Women 26-30 years Men ≤ 25 years Age groups Age 60 40 20 0 20 40 60 Note: Figures are for Crèdit Andorrà Group companies located in Andorra.

33 Nationality

Other 5%

Spain 41%

Andorra 54%

Note: Figures are for Crèdit Andorrà Group companies located in Andorra.

In order to promote equal opportunities, the Crèdit Andorrà Group has human resources policies to guarantee equal treatment and non-discrimination for reasons of gender. 2009 saw the percentage of women in positions of responsibility increase.

Variable 2007 2008 2009

Percentage of women 41% 42% 41%

Percentage of women with management posts 19% 19% 22%

The existence of a job description for positions, plus the parameters applied as part of our wages policy, ensure that the basic remunerations package for each job has been defined in terms of the position a person holds, irrespective of gender.

As part of our aim to contribute towards integration in society and employment, the Crèdit Andorrà Group has established a collaboration agreement with the Labour Agency, supported by the Board of Trustees of the Meritxell Special School (AGENTAS), under which 3 handicapped persons are now working for the bank.

Workforce stability

We encourage permanent employment contracts at the Crèdit Andorrà Group, prioritising stability and professional development for our employees. 100% of the Group employees have a permanent contract and in 2009 the average length of employment for both sexes was 15.23 years.

34 Corporate Social Responsibility Report 2009

Variable 2007 2008 2009

Women 11.14 years 11.60 years 12.33 years Average length of employment Men 17.00 years 16.31 years 17.23 years

Both sexes 14.51 years 14.43 years 15.23 years

The reconversion of two branches into automatic branches has not entailed any job losses or dismissals. On the other hand, 15 voluntary resignations have been recorded (8 women and 7 men). Lastly, there were also 3 early retirements.

Variable 2007 2008 2009

Percentage resignations 4.09% 3.03% 4.91%

CORPORATE BENEFITS AND AFTER-WORK ACTIVITIES

Adding value to the job and satisfaction among professionals are vital to managing human resources. That’s why the Crèdit Andorrà Group offers its professionals the chance to enjoy corporate benefits and measures to balance their personal and professional lives.

Corporate benefits

· Full medical and health insurance. · Life insurance. · Benefit and Assistance Mutual Fund for Crèdit Andorrà Employees: a body that is fully independent of Crèdit Andorrà in capital and legal terms, this employs its funds to benefit and help the bank’s employees. The fund makes it possible for employees to enjoy the following entitlements: retirement pensions, those for disablement, orphanhood, widowhood and support for married couples or those in a stable union, as well as aid for births and other benefits. In the educational sphere, it also provides help for children’s studies, professional training, university, postgraduate or similar studies. · Special conditions for banking products and services from the moment a person begins to work at the bank.

In keeping with the bank’s desire to involve all its professionals in its broad objectives and strategy, it grants all employees with at least three years’ employment the possibility of acquiring shares. Employee participation in the bank’s stock amounts to 21% of all shares.

We should add that, to help employees balance their personal and working lives, the bank allows certain flexibility in working hours to make it possible for both fathers and mothers to enjoy some margin in the time when they start work.

35 The closing of Crèdit Andorrà branches every Saturday, the result of an agreement by the institutions that belong to the Andorran Bank Association (ABA), has also been a measure to improve our employees’ work-life balance.

After-work activities

With the aim of fostering a good spirit in the workforce, Crèdit Andorrà offers a number of after-work activities, including inter-company games, the Desman Trophy, the Andorra Inter- bank Golf Championship and the St. Charles dinner.

One of the Crèdit Andorrà teams competing for the Desman Trophy

PROFESSIONAL DEVELOPMENT AND TRAINING

One of the basic tenets at Crèdit Andorrà is the professional development of those that go to make up our workforce. In this respect, we prioritise in-house promotions, always trying to fill newly created positions with professionals from our own workforce.

In order to ensure that professional development takes place it’s necessary to have the interaction of three factors: the person involved, the Human Relations Department (which collaborates in identifying the requirements and provides the tools needed to meet them) as well as management, who should act as the driving force for this development process. Management performance reviews are an example of dialogue among these three groups.

Training is also a key element to give people the necessary skills to achieve the bank’s objectives. With training, professionals reinforce their aptitude and obtain the necessary

36 Corporate Social Responsibility Report 2009

knowledge to carry out their work with high quality. The training given in 2009 was mainly related to the project to change the software platform and the bank’s internationalisation, leading to changes in how each department works. Training related to other areas has also continued.

Both individual and team training take place in three areas: the bank’s multi-year strategic plan, the breaking up of the strategic plan into annual objectives for each division and the results obtained from the compliance management system.

2009 training plan

Every year, Crèdit Andorrà draws up a training plan with actions aimed at reinforcing the aptitude and knowledge required for the professional development of people and the competence of the whole team. The plan involves team training programmes for various areas of work, as well as individual training in the case of languages, postgraduate and master studies, among other courses and talks.

2007 2008 2009

Percentage of staff receiving training 100% 100% 100%

Percentage spending on training in relation to total 3.53% 4.45% 2.17% staff salaries

Average investment in training per employee 1,646 2,158.69 1,041.12 (€/person)

Average number of hours training per employee 56 69 97.86 (hrs/person)

Percentage of training during office hours 22% 22% 36%

In 2009, most of the training given, almost 50% of all the hours, was for the new software platform, Avaloq, in order to prepare our staff to successfully tackle the project and minimise customer impact. This kind of training was given entirely by in-house trainers. An e-learning platform was also set up called Crèdit Formació, offering a series of courses to reinforce and practise the content given in class-based sessions. Continuing with training on applications, we have also given training related to the new software for the Insurance Group, called Axis. In total, both application training courses involved 7,134 participants and took place over 20,250 hours, of which 19,954 correspond to Avaloq.

The bank has also organised financial and banking training, with a total of 70 participants and over 4,808 hours, training staff in the management of assets, financial risks and banks, among other aspects.

37 We have also continued with our language training, as this is one of the bank’s priorities to prepare employees to take on the new challenges successfully. A total of 229 people have taken part in this kind of training and 9,552 hours were dedicated to it.

With new regulations coming into force in Andorra such as the new Social Security Act and the Health and Safety at Work Act, Crèdit Andorrà has also trained its workers to ensure they are familiar with the main innovations in this area and to provide them with the necessary knowledge to be able to resolve any doubts our customers may have.

Also of note are the resources invested in training for management skills, computing and systems, skills development, insurance and commercial aspects.

As each year, we have continued to train our employees in preventing work-related risks. With a total of 195.5 hours, we have trained first and second response teams and have internally organised a series of talks on ergonomics.

In 2009, there were a total of 75 cases of people off work. If we include maternity, the absenteeism rate was 2.28% and, if we don’t, this was 1.99%. 51.4% of the days off work were concentrated into 5 of the cases.

Objectives for 2009 Degree of achievement

Stress corporate benefits for employees. (in part)

Increase the operating efficiency of the Human Relations department by introducing the new IT system to manage human resources.

Prepare employees to use the new data-processing facility and to meet the needs of internationalisation.

38 Corporate Social Responsibility Report 2009

Objectives for 2010

Stress the corporate benefits for employees.

Exploit the e-learning facility for non-transactional training.

Pass on Crèdit Andorrà’s culture model to entities outside the Principality of Andorra.

Extend the scope of management for people working outside Andorra.

39 19 18 20 17 16 15 2

3 14

21 8 9 7 10 13 11 6 12 4 5 Corporate Social Responsibility Report 2009

8 COMMUNITY INVOLVEMENT

n line with our commitment to contribute both to economic development and also to the sustainable development of the environment and society, the Crèdit Andorrà Group works Iconstantly to establish ways of cooperating and collaborating with various groups in the country.

Both Crèdit Andorrà and the Crèdit Andorrà Foundation have strong roots in the society of the Principality of Andorra and for this reason we give support to and coordinate our own programmes as well as collaborating with those bodies working for the overall development of Andorran society. Our involvement is based on planning and proactiveness.

In 2009, the Crèdit Andorrà Group invested 1.97% of its total net profit in initiatives aimed at the community, thereby maintaining its rate of investment of previous years, in spite of the current economic situation.

Overall consolidated Group investment

Economic and institutional initiatives 5%

Environmental initiatives 14% Educational initiatives 24%

Social initiatives 20%

Cultural initiatives 37%

SOCIAL INITIATIVES

19 18 20 Our social programmes have always been one of the areas in which our organisation invests 17 particular effort. The well-being of the population in general is one of the actions to which we 16 think we can and must contribute decisively and effectively. We have given ourselves the duty 15 2 of promoting programmes and of taking part in actions that substantially improve the living conditions of all citizens in the Principality, but especially of those who, due to their particular characteristics or specific needs, warrant additional effort and special attention.

3 14 Activities for senior citizens

After two years of operation, L’Espai - the premises where the activities are carried out that are organised 21 by the Crèdit Andorrà Foundation and dedicated to senior citizens - hosted a growing number of 8 9 initiatives. Of note was the fact that, added to the computing activities offered by L’Espai in previous 7 10 years (comprising various editions of a beginner’s computer course and another to further computing 13 11 6 12 knowledge, as well as basic and advanced photography workshops and an internet workshop) was an 4 5

41 advanced computing course, a PowerPoint workshop and another on digital video. The L’Espai media library has continued to give courses in oral and written Catalan as well as different workshops on such areas as drama, the CASS internet portal and nutrition, as well as a workshop to help people discover the possibilities offered by mobile phones and environment workshop. Among the other activities by the media library, we should also point out the Intergenerational Week, when the young and the elderly can learn about values and knowledge together, as well as a talk to explain the measures aimed at senior citizens in the new Social Security Act. With regard to the L’Espai volunteers centre, the more than 200 members of the Senior Citizens Voluntary Association have continued to carry out a range of activities. Finally, we should also mention the presence of the Foundation via the L’Espai stand at the sixth Senior Citizen Fair.

Diseases of great social concern

In addition to promoting different specific actions in general, in 2009 the Crèdit Andorrà Foundation devoted particular attention to different areas of this programme. With regard to cancer, the line of previous years was continued, with a workshop on the most suitable diet for women affected by breast cancer; but we have also extended our proposals with two generic talks: one explaining the essential role of research in the fight against cancer and another on epigenetics and cancer. With regard to fibromyalgia and chronic fatigue syndrome, of note was the talk on the different sleep disorders that appear in people suffering from these diseases, as well as the body relaxation workshop entitled Movement Awareness. The work on preventative aspects and skills and resources to tackle the disease were the issues developed in the workshop for people affected by multiple sclerosis. Finally, we would also like to mention that, in 2009, we included diabetes in the programme, with the organisation of the first Seminar on Diabetes in Andorra, where different doctors and specialists presented the types of diabetes in existence, as well as the appropriate treatments and advances made in this field.

Social collaboration

Collaboration with associations and organisations working in the field of social action was also worthy of particular attention on the part of our organisation in 2009.

National strategy for nutrition, sport and health

As part of the action plan of the National strategy for nutrition, sport and health (ENNES) set up by the government of Andorra, we published the guide entitled Consells pràctics per menjar sa i mantenir-se actiu, as well as holding the National Sport for Everyone Day and presenting a talk on a balanced diet for women.

Crèdit Andorrà Foundation Scholarship Holders Association

With regard to the support provided by the Crèdit Andorrà Foundation Scholarship Holders Association, we should mention the presentation of a talk on the symptoms and clinical signs of obstructive sleep apnoea syndrome.

42 Corporate Social Responsibility Report 2009

Andorra Special Olympics

In 2009 the Foundation also continued to support the Andorra Special Olympics as part of an official sponsor agreement reached in 2007. Its aim is to provide specific and direct assistance for the personal development of those suffering from mental disabilities by means of regular sporting activities and by taking part in international competitions.

Andorran Science Society

We have continued to offer our aid to the Andorran Science Society by organising the 15th Andorran Science Society Workshop and publishing the talks and contributions made at the 13th and 14th Andorran Science Society Workshops.

2009 Andorra la Vella Fair

For the sixth consecutive year, Crèdit Andorrà took part with a stand at the Andorra la Vella Fair in 2009. This time we once again supported the motor vehicle sector by sponsoring 50% of the cost of renting the AIVA grounds (Association of Vehicle Importers of Andorra), creating a fun area where young people could enjoy a virtual drive in a Formula 1 car and another where visitors could see, touch and photograph two of Joan Vinyes’ racing cars, sponsored by Crèdit Andorrà.

We also promoted our special conditions for financing vehicles, only available during the days of the Fair: the possibility of including the cost of insuring the vehicle included within the financing, via CrèditCotxe, and the special conditions offered by ’CrèditCotxe ecològic’. This particular programme offers a 10% discount on the standard interest rate applied if the vehicle is new and classified as ecological (CO2 emissions < 120 mg).

Crèdit Andorrà’s stand at the Andorra la Vella Fair, 2009

43 Blood bank – Andorran Red Cross

For another year, we collaborated with the blood bank organised over many years by the Andorran Red Cross. The aim was to sensitise people on the need to give blood while at the same time promoting more blood donations. The results this year were very positive with a total of 866 donations: 413 in spring and 453 in autumn.

2nd Family Day with Club Super3

For the second consecutive year Crèdit Andorrà, together with the Vallnord ski resort and with the collaboration of the Club Super3, organised a Family Day at the Pal ski slopes. The party was enjoyed by boys and girls between 2 and 14 years of age along with their families, taking part in various activities including bouncy castles, jumping, a children’s train, painting workshops and learning how to dance with characters from the Club Super3 and their new hit Anem a veure món.

Moreover, all Club Super3 members, and those with a Super3 savings book, could ski for free and their parents had a 20% discount on the price of their ski pass.

Collaboration with sport

Collaboration with grassroots sport

Once again, Crèdit Andorrà collaborated with and sponsored different sports events aimed at encouraging young Andorrans to take up sport. In 2009, the amount allocated to grassroots sports totalled 95,088 euros. Skiing takes pride of place in our country and we are therefore present at the Borrufa Trophy and various competitions organised by the different ski clubs.

Once again we also sponsored first level international football camps, the 16th Vilaseca-Valverde Soccer Campus and the 2nd Carles Riba Seven-a-side Football Campus, among others.

Skier competing for the Borrufa Trophy

44 Corporate Social Responsibility Report 2009

Other sports

As part of our desire to contribute to the country’s development in terms of sport, we provide constant, sustained support for different initiatives and groups.

We therefore collaborate with and sponsor several sports-related bodies and events, such as Grandvalira, Vallnord, the Andorran Football Federation, the Andorran Judo Federation, VPC Andorra Rugby, Andorra Ultra Trail Vallnord, the Andorran Pitch&Putt Association and the Automobile Club of Andorra, among others. Another of the sports we particularly support is golf, by collaborating in various championships, such as the Andorran Red Cross Golf Trophy and the Unicef Golf Trophy.

Social cooperation abroad

Cooperation agreement with the Chamber of Commerce Foundation of Panama

The same philosophy as the Group has in Andorra - serving customers and serving the country - is also applied beyond our borders, in the territories where we set up our business, as we are aware that, as a leading Andorran financial group in the world, we carry the name of Andorra with us.

As part of our internationalisation, Crèdit Andorrà (Panamá) signed a cooperation agreement with the Chamber of Commerce Foundation of Panama to promote the creation of a Training and Preparation of Social Enterprises Unit. The main aim of this agreement is to support the Copyright Unit in identifying, advising and enabling new local social firms, whose competitive edge comes from their collective rights, based on which innovations in products, organisational processes and marketing are all developed.

The first company to take advantage of this cooperation agreement is the social firm Kuna, dedicated to making mola (in the Kuna language, mola means clothes or fabric). A mola is a coloured artistic fabric made with embroidery and reverse embroidery techniques. One of Kuna’s aims is to combine the world of mola with international haute couture. This project is supported by different organisations to help it create and develop its business plan. One of the important issues in this project is to turn manufacturers into business people, for which both economic and managerial aid will be given through this agreement.

The new entrepreneurs will receive training as part of the development strategy in administration, finance, operations, law, retail, the logistics process to be used in the Mola Kuna - Haute Couture alliance, marketing and sales.

This initiative is a clear example of the Group’s involvement in social growth and the wellbeing of Panama society, becoming involved in the best way possible.

45 EDUCATIONAL INITIATIVES

With the belief that education is one of the essential pillars to the growth and good development of society, we continued to work in 2009 on the different programmes started in previous years and also developed new initiatives.

Scholarships and prizes for studies and research

The Foundation’s oldest programme provides scholarships for hotel, catering and tourism studies, as well as postgraduate education. In 2009, we donated the necessary resources to finance three scholarships for specialist studies, as well as three further scholarships.

The new scholarship holders for 2009 awarded by the Crèdit Andorrà Foundation, with Antoni Pintat, Chairman of the Board of Trustees and Josep Peralba, Chairman of the Delegate Committee, in the centre

We have also co-sponsored the Fulbright scholarships, aimed at young Andorran graduates wishing to take postgraduate courses at North American universities, as well as in providing postgraduate scholarships, awarded by the Ministry of Education and Culture, for young Andorrans who wish to extend their training in research. These subsidies for study culminate with the students defending their doctoral thesis and were offered to four people in 2009.

In this section we particularly want to highlight the giving of the Calvó Armengol International Prize for research, for the very first time, created in memory of this young Andorran lecturer. This prize is given every two years to an economist or social scientist under 40 years of age for his or her contribution to the study of social interaction. In addition to a sum of 30,000 euros, the prize also involves the scientific direction of a workshop with the participation of 20-25 young researchers from all over the world.

Cooperation with the University of Andorra

The cooperation agreement established between the Crèdit Andorrà Foundation and the University of Andorra was five years old in 2009. The actions we carried out in 2009 were related essentially to areas of action started in previous years, as well as certain issues aimed at disseminating knowledge. Of note was the sponsorship to carry out higher professional

46 Corporate Social Responsibility Report 2009

studies organised by the Computer Sciences and Management School and support for the midwife training programme, which has started to produce the desired result with the first two people sponsored by the Foundation starting to work as midwives. We have also continued to sponsor the continued training course Open opera, directed by the Gran Theatre del Liceu in Barcelona, and have offered our aid for an academic activity, the postgraduate in Andorran law; in relation to this training, in 2009 we also contributed two new volumes from the collection on Andorran law books: Delictes patrimonials and Dret internacional privat del Principat d’Andorra. Volum 2. Persona, família, successions i testaments.

L’estudiant magazine

Ever since 1992, Crèdit Andorrà has been collaborating with Diari d’Andorra on the magazine L’estudiant with the aim contributing to the habit of writing and reading among young people. Students have taken part in producing the content for this magazine, with articles on their school activities and of general interest, and it is given out free with Diari d’Andorra and to all schools in the country.

CULTURAL INITIATIVES

Cultural programmes have always formed part of the core of the Foundation’s work throughout its history. With perfectly well-established projects, our task is essentially to make them grow, working to improve them and ensure they reach all sectors of society. Disseminating our actions and cultural knowledge allows us to help enrich citizens at a personal level and provide the necessary environment for creativity to develop.

Promoting theatre and music

Andorran National Classical Orchestra Foundation (ONCA)

As patrons of the ONCA Foundation, together with the Andorran government, the Crèdit Andorrà Foundation has continued to carry out different projects. The first we would like to highlight is the programming of the 16th seasons for the Andorran National Classical Orchestra. Among various classical and chamber concerts held in Andorra, of particular note was the Sant Antoni Concert, the Snow Concert, the Easter Concert, the Summer Concert, the concert in the gardens of the Casa de la Vall, the Santa Cecília Concert and the Christmas Concert, as well as two performances as part of the International Narciso Yepes Festival. With regard to performances abroad, we should mention those at the Palau de la Música Catalana, as part of the Sundays at the Palau, Primer Palau and Petit Palau, as well as the Pau Casals Festival of Prada, where the ONCA presented The Creation by Joseph Haydn, co-produced with the Festival, the Castell de Peralada Festival, the International Music Festival of Cambrils and the concert at the Mosteiro dos Jerónimos in Lisbon. These concerts are in addition to a great deal of other work in terms of production and creation.

47 Turning to the Andorran National Youth Chamber Orchestra (JONCA), we should first mention the including of new musicians in the group, bringing the total number to 18. Among the performances given as part of their usual work, there is the traditional Meritxell Concert, as well as the different performances by the JONCA Soloists, in 2009 playing as a quintet for the first time.

ONCA and Triphasic concert in the gardens of the Casa de la Vall

The Ordino Festivals Association

The collaboration of the Crèdit Andorrà Foundation with the Comú of Ordino, by means of the Ordino Festivals Association, has once again taken the form of two events: the traditional New Year’s Concert, again with the Symphonic Orchestra of El Vallès, and the 27th International Narciso Yepes Festival. The programme for this Festival was made up of five concerts: Brandenburg concerts no. 2, 3, 4 and 5, played by the Camerata Amsterdam under the baton of Jeroen Weierink and with the participation of flutist Claudi Arimany;Bolero and other favourite classics, by the Andorran National Classical Orchestra, conducted by Marzio Conti and with the presence of guest violinist Alexandre Da Costa; Quintets for strings and piano, by the JONCA Soloists; De fuego y de agua, performed by the sisters Katia and Marielle Labèque on the piano and the singer Mayte Martín; and Pròxima estació, Vivaldi!, by the ONCA, conducted by concertmaster Gerard Claret and with the participation of the National Stage of Andorra.

The Friends of the Organ Foundation

As each year, the Archpriesthood of Andorra and the Crèdit Andorrà Foundation, through the Friends of the Organ Foundation, worked hard to promote this instrument. One of the

48 Corporate Social Responsibility Report 2009

outstanding activities was the presentation of the tenth International Organ Cycle; to celebrate this, the cycle entitled Nations was programmed, including the concerts The symphonic organ in France: romanticism and contemporariness, Paths of Spain, Italy and Europe: ties and influences and The organ in Germany and Austria (17th-19th century). We also contributed to the third Autumn Organ Cycle of La Massana, with four concerts programmed. Finally, the Foundation also supported the Cinema concert initiative with the live improvisation of organist Ferruccio Bartoletti during the projection of Fritz Lang’s Metropolis, a film declared of World Heritage by UNESCO.

Carles Sabater Award

Once again, and in collaboration with the Centre of Catalan Culture, we have funded the awards for the eleventh Carles Sabater Award for the best song of the year in Catalan. In 2009, in addition to the diversity and quality of the songs presented, there was also a notable increase in participation as the writers of 73 songs took part, more than double the previous year. The winners were Anna Roig i l’Ombre de Ton Chien, with the song Corro sota la pluja, while in second place was Projecte Bu, with the composition Giro, giro, giro...

Concert with the Portuguese Embassy in Andorra

To celebrate the Day of Portugal, of Camões and of the Portuguese Communities, the Portuguese Embassy in Andorra organised a series of events including a fado concert with the collaboration of Crèdit Andorra. The concert introduced the public to fados, a Portuguese genre of music, through one of today’s most renowned fado singers, Maria Ana Bobone.

Maria Ana Bobone during the fado concert

Concert with the Spanish Embassy in Andorra

The Spanish Embassy in Andorra organised a concert for two pianists, Víctor and Luis del Valle, known as the Duo del Valle. Crèdit Andorrà sponsored the concert, the premiere in Andorra of the version for two pianos of the work Les bruixes, by composer Ignacio Ribas, based on the Andorran legend of the witches of Engolasters. The programme was completed with works by Mozart, Ligeti and Gershwin.

49 The National Stage of Andorra Foundation (ENA)

The Crèdit Andorrà Foundation, as patron of the Andorran National Stage Foundation, together with the Andorran government and the Comú of La Massana, also plays an active role in promoting stage arts and theatre creation. With regard to 2009’s programme by the ENA at the Teatre de les Fontetes, this included a dramatised reading of the work Hòmens de palla, dies de vent, winner of the 50th Crèdit Andorrà Anniversary Theatre Prize, given during the 31st Andorran Literary Night, and a poetry and music recital entitled Quartet dels mals endreços, a show also presented throughout Catalonia in 2009. Through the ENA Foundation we also took part in organising a tour around the Catalan theatre circuit of the Tennessee Williams play A streetcar named desire, the first solitary production by the ENA, which premiered in Andorra in 2008. Among other activities carried out by the ENA, of note was the co-production of the project Un somni amb René Magritte, with the dance and theatre company Líquid Dansa, and the organisation of the 12th Demonstration of Young Theatre, coordinated by Somhiteatre and within which a training course was offered, given by pedagogue Peter Gadish and aimed at the teachers of the theatre groups taking part.

From left to right, Joan Ollé and Lluís Cartes during the poetry and music recital of Quartet dels mals endreços

Promoting and reclaiming art

Book Els secrets d’una col·lecció. El fons d’art de Crèdit Andorrà

Crèdit Andorrà’s art collection is currently made up mainly of a collection of Catalan paintings, comprising around a hundred pictures by leading Catalan painters from the 18th to the 20th century, as well as a unique collection of twenty Catalan domestic timepieces from the 18th century and one exceptional piece, due to its historical value, namely the predella from the altarpiece of the church of Sant Miquel de Prats, work by the master of Canillo and one of the most important examples of 16th century painting in Andorra.

50 Corporate Social Responsibility Report 2009

This collection is yet another example of the bank’s sensitivity and desire to help to preserve our collective memory through collecting and safeguarding works of art that might disappear and constantly searching for works of great quality that are representative of specific periods of artistic movements. That’s why we have published a book, to share some moments with art lovers with the sights, landscapes, light and colours that have filled our art collection with history.

Travelling exhibition of models of Romanesque churches

Crèdit Andorrà organised the exhibition El nostre romànic... en petit format, a travelling display of models of the churches of Andorra. The exhibition, created by Carlos Pérez Castelló, reproduces on a scale of 1:50 and in three dimensions, ten Romanesque churches from the different parishes. The models are the result of meticulous work and offer visitors a realistic sensation and view, helping them to discover all the elements of medieval construction that characterise Lombardy Romanesque.

Model of the church of Sant Joan de Caselles in Canillo

Cultural cooperation

Cercle de les Arts i de les Lletres

The Cercle de les Arts i de les Lletres, in collaboration with Crèdit Andorrà, has awarded the Prizes of the 32nd Andorran Literary Night. Crèdit Andorrà funds the 50th Anniversary Crèdit Andorrà Theatre Prize and the Grandalla Poetry Prize.

On the other hand, and in order to promote artistic activity, the cultural institution has also held the 15th Andorra Poster Arts, with Crèdit Andorrà awarding the prizes for Sculpture and Painting. These are four of the most outstanding prizes for these events.

51 Circuit’Art

For the fourth consecutive year, Crèdit Andorrà collaborated with the Circuit’Art, a series of exhibitions that focus on a different artistic discipline each year. In 2009 the focus was sculpture. The L’espai B’Art of the Andorra la Vella Art School and the galleries of Art Centre and Pilar Riberaygua provided a new route to discover the most contemporary art, guided by sculptors. On show were works that disconcertingly expressed the reality in which we live, reflecting the collective imaginary, social defamation, deep human sentiment, sensations, experiences... even the return to ethnological origins through symbolism.

This initiative is a popular way to disseminate art and to encourage culture among citizens. Creativity and innovation, understood and applied in their broadest sense, are two necessary paths for the future of Andorra.

1st International Digital Photography Salon

Crèdit Andorrà collaborated with the 1st International Digital Photography Salon organised by the Andorran Photography Federation. This competition, open to all amateurs and professionals worldwide, was also open to all themes within the three sections: monochrome, colour and experimental.

Photograph by Philippe Garcia, winner of the special Crèdit Andorrà prize for the best photography of Andorra

Photography by Giovanni Busi, winner of the special Crèdit Andorrà prize for the best young photographer (under 20 years of age)

52 Corporate Social Responsibility Report 2009

Collaboration in publications

In 2009, the Crèdit Andorrà Foundation collaborated with the government in two publications aimed at disseminating the history of the country. The first, promoted by the National Library, was the publication of the book Història de la premsa andorrana (1917-2005), an exhaustive, detailed review of the headlines in the country’s newspapers from the time the press started up to the present day. The second book supported by the Foundation concerned the publication of the catalogue for the exhibition entitled Andorra, un profund i llarg viatge; the result of work by more than thirty academics, which provides appropriate illustrations and complements the presentation of the documents, artistic pieces and other artefacts that go to make up this exhibition.

Crèdit Andorra has also offered, together with Premsa Andorrana S.A., our support for the Andorran Committee of Unicef in the publication of the book Blanc Negre. El contrast d’una experiència, a travelogue relating the experiences of a Unicef aid worker in the Congo, Marta Alberch, who is an employee at Crèdit Andorrà.

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11 8 9 10 Corporate Social Responsibility Report 2009

9 ENVIRONMENT

he Crèdit Andorrà Group has a firm commitment to protecting and conserving the environment, as well as to minimising environmental impact. This is a strategic objective Tof the Group, brought about through initiatives that aim to ensure that all the activities we carry out respect the environment, encouraging and promoting the involvement of all those who go to make up the Group.

Moreover, and as a way of extending environmental commitment to our branches, we base their construction on environmental criteria that guarantee the maximum efficiency and respect for the environment. On the other hand, we also promote initiatives and collaborate with projects of environmental conservation and development promoted by public and private institutions.

In 2009, the investment and expenditure on environmental issues, including expenditure on collaborations, building work and maintenance, audits and merchandising, totalled 156,813 euros.

27 26

25 28 24 22 ENVIRONMENTAL MANAGEMENT SYSTEM 23 21

29 The environmental management system implemented in 2004 and certified under standard 20 ISO 14001 allows us to evaluate the significant environmental impact of our activities and to 30 31 32 36 prioritise improvements in this area. In order to implement our environmental strategy, we have 33 34 19 a team made up of one team leader, with 90% of their time dedicated to this work, and six more 35 37 47 48 people with a 5% dedication, who ensure the system is maintained correctly. 18 1 38 2 The external audit in 2009 was very positive and has revealed the organisation’s incredibly high degree of commitment to environmental management, starting up significant improvements that fully affect the environmental performance of Crèdit Andorrà. We have achieved a good 39 17 46 rating and the report highlights the efforts of ongoing improvement and the adaptation and efficiency of the environmental management system implemented in Crèdit Andorrà. The audit lasted 20 hours and covered all the bank’s branches and departments. An internal audit was also 40 45 3 carried out previously, with the same scope and lasting approximately 70 hours. 16 41 44 4 42 43 5 Below are some of the particularly notable internal initiatives carried out in 2009: 15 BUILDING WORK · Improving the insulation of the IT system building. · Training on sustainable construction given to those in charge of the building work. 14 · Improving air conditioning systems at the Head Office and installation of independent 6 thermostats. 13 7 12 SAFETY · Purchase of personal protection equipment as part of the Emergency Plan implementation. 11 8 9 10

55 SAVINGS IN THE INTERNAL CONSUMPTION OF PAPER · Start-up of a digital press cuttings service available via the intranet. This allows the day’s news to be viewed, updated each morning, as well as past articles. One of the advantages of this instrument is that it respects environmental criteria with significant savings in paper.

SUSTAINABLE MOBILITY · Modification in the timetable of delivery vans to minimise the number of trips.

Green purchase criteria

One of the actions with a significant impact on the environment has been the purchase of materials and electrical apparatus that respect the environment. In this respect, the new equipment purchases is classified AA, guaranteeing maximum consumption efficiency; the soil we have changed at the Head Office building has a range of environmental certification, as well as being recycled material; and the new piping for the systems building are also 100% recycled, with a useful life of more than 50 years, and can be 100% recycled at the end of their lives.

We are also replacing all the light bulbs, including those containing mercury, and certain fluorescent tubes with low consumption lights.

IMPROVING THE ENERGY EFFICIENCY OF BRANCHES

Improving energy efficiency is one of our strategic objectives within environmental management.

In order to increase energy efficiency and thereby minimise the impact on the environment of our branch network, once again we have implemented a series of improvements. Below are the most significant:

• We have installed new heating and cooling systems in most of the Crèdit Andorrà branches. This involved VRV systems with a heat pump, a system pioneered in Andorra because of its high output and low consumption.

• In addition, free-cooling systems were installed in the data-processing building and Head Office which, on the one hand, make it possible to cool down the machines by using outside air when this is cooler than that inside and, on the other hand, to take advantage of heat generated by the same machines for heating the building’s interior.

• The new La Massana office was studied using thermograph photos which revealed a series of slight insulation defects. The necessary improvements were carried out to resolve those deficiencies.

• Eliminating the old calculation centre in Rebés Square and insulating the technical

56 Corporate Social Responsibility Report 2009

centre in that building made it possible to considerably reduce electricity costs.

• Replacement of all printers along with the publication of a folder on good practices for employees will result in savings in energy, paper and ink.

The total investment in improvements and modernization of installations was around 2 million euros. Part of this investment involved a series of energy efficiency advances.

INDICATORS FOR RESOURCE CONSUMPTION AND WASTE MANAGEMENT

Management of energy resources

The shift from fuel-oil to electricity in the systems building is the main reason for the electricity consumption rising. On the other hand, this change has led to an overall reduction in CO2 emissions.

We have invested in most branches to improve the management of air conditioning and heating equipment by installing new thermostats and reducing the time the outdoor signs are lit by placing light sensors that regulate when these signs are on and off. This measure has saved approximately 30% of our electricity consumption.

2007 2008 2009 Trend

Electricity consumption (MWh) 5,466 6,125 6,592

Electricity consumption per m2 of 157.29 172.73 185.87 office space (kWh/m2)

2008 2009 Trend

Fuel-oil consumption (litres) 282,077 231,731

Fuel-oil consumption per m2 of office space (litres/m2) 8.89 7.30

Note: Figures from October to September.

57 Greenhouse gas emissions

The increase in the consumption of electricity has led to a rise in greenhouse gas emissions. However, the emissions resulting from the consumption of fuel-oil have fallen compared with

2008 and there has therefore been a slight reduction in the total tonnes of CO2 emitted overall.

Finally, we should also mention that, in 2009, we started to use videoconferencing, allowing us

to reduce travelling and consequently the CO2 emissions resulting from plane trips.

2007 2008 2009 Trend

1,039 1,150 1,213 Tonnes of CO2 (electricity)

Tonnes of CO (electricity)/100 m2 of 2 2.99 3.24 2.67 office space

- 731 600 Tonnes of CO2 (fuel-oil)

- 1,881 1,813 Tones totals de CO2

Sources: Electricity from Andorra - FEDA (15% hydroelectric and 85% from Spain and France in equal parts). Emission data for France - EDF. Emission data for Spain - CNE, System for guarantee of origin and labelling of electricity. Note: Figures from October to September.

Water management

Water consumption has fallen for the second consecutive year, mainly due to the improvement in managing incidents, improvements made to the systems building and the renovation of the automatic watering system in one of the main landscaped areas.

2007 2008 2009 Trend

Water consumption (m3) 43,750 23,256 17,329

Water consumption per m2 of office 1.26 0.66 0.49 space (m3/m2)

Note: Figures from October to September.

58 Corporate Social Responsibility Report 2009

Consumption of materials

We have made an effort to reduce the internal consumption of paper, reflected in the data for 2009. One of the main initiatives has been digitalising the press clippings and making these accessible on the bank’s intranet. We have also reinforced e-learning as part of training.

With regard to paper consumed to generate banking documentation aimed at customers, we are working to use alternative channels and to promote our e-banking service, called e-Crèdit, to reduce this consumption.

The consumption of paper is one of the bank’s most significant impacts on the environment and that’s why the paper we do consume has several environmental certificates and is 100% elemental chlorine free.

2007 2008 2009 Trend

Tonnes 23.83 24.85 20.56 Paper for internal use kg/employee 52.04 53.09 45.18

Tonnes 33.68 36.83 42.12 Paper for customers kg/customer 0.27 0.34 0.4

Note: Figures from October to September.

Waste management

Ensuring the correct management of waste is one of our main objectives. That is why each year we send out reminders via DAC communications (environment heads in each building) and to cleaning firms to ensure they appropriately separate waste and dispose of it in the right place.

The increase in the amount of paper and cardboard waste from offices is basically due to the fact that, since 2009, we have also counted other kinds of paper and cardboard that was not recorded before, such as paper generated by building work. The data on paper and cardboard waste from offices for 2009 are therefore not comparable with the data from other years.

On the other hand, the rise in toner waste is due to the reconversion of a large part of the bank’s printers.

59 2007 2008 2009 Trend

kg 11,103 14,936 18,641 Office paper kg/employee 24.24 31.91 40.97

kg 292 1,391 787 Cardboard kg/employee 0.64 2.97 1.73

kg 2,027 2,521 3,108 Newspapers kg/employee 4.43 5.39 6.83

kg 333 1,558 331 Plastics kg/employee 0.73 3.33 0.73

Units 218 291 480 Toners Units/employee 0.48 0.62 1.05

Units 570 1,373 1,326 Fluorescent tubes Units/100 m2 of 1.64 3.87 3.74 office space

kg 2,206 142 540 Computer material kg/employee 4.82 0.30 1.19

Note: The 2008 data for the consumption of office paper published in the report for the previous year were erroneous.

ENVIRONMENTAL AWARENESS

As part of the environmental management system and our CSR policy, every year we carry out training and awareness raising actions aimed at the bank’s employees by using aspects of internal communication.

In order to encourage and motivate our employees to take part in this kind of activity, we have provided information on the most outstanding initiatives carried out in Andorra for the World Environment Day and we have also passed on other messages of interest.

We have also continued to support environmental projects, continuing with our line of sponsorships in this area.

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ENVIRONMENTAL INITIATIVES

1st Salon for the Construction of Sustainable Pyrenees

As part of the Crèdit Andorrà Chair in Markets, Organisations and Humanities at IESE, we have sponsored the 1st Salon for the Construction of Sustainable Pyrenees, aimed principally at professionals from the business sector related to environmental issues. The aim has been to create a place where professionals can contact each other and debate new technologies and knowledge applicable to the sustainable development of the Pyrenees. Exhibitors from Andorra were present at the Salon, presenting their products and services related to renewable energy sources and sustainable materials. Crèdit Andorrà decided to collaborate in this initiative because it promotes social responsibility and, specifically, the conservation of the environment, areas that our organisation is committed to.

The Salon was inaugurated by the authorities from the Comú of La Massana and by Josep Maria Rosanas, Director of the Chair, as well as an inaugural speech by Antoni Subirà, a lecturer at IESE and former Minister for Industry and Energy in the Catalan government.

Inaugural speech given by Antoni Subirà, IESE lecturer and former Minister for Industry and Energy in the Catalan government

Collaboration with the National Waste Plan

Since 2001, Crèdit Andorrà has had an agreement with the government of Andorra to collaborate with its National Waste Plan, working together to carry out different initiatives.

As part of this collaboration, in 2009 we ran an awareness-raising campaign to encourage the use of municipal dumps, as well as informing people which waste can be taken there to be recycled, instead of leaving it at normal rubbish bins or dumping it in rivers or towns.

61 The campaign Si l’acompanyes, guanyes (If you go with it, you win) takes an ironic look at the idea that objects can’t make it from your home to the municipal dump on their own and calls for human action, which is rewarded with a prize.

Sponsorship of the Elements television programme

For the second consecutive year, Crèdit Andorrà has sponsored Elements, a television programme dealing with the environment and tourism broadcast by Andorran Television, aimed at teaching people about matters related to the environment and sustainability.

Objectives for 2009 Degree achieved

Reduce the generation of plastic wastes. (partly)

Improve energy efficiency and evaluate the possibility of introducing renewable energy. (partly)

Increase the consumption of recycled products and/or those with environmentally safe label rather than conventional products. (partly)

Study the possibility of introducing a system of video-conferences in order to reduce travel.

Provide information to construction personnel giving guidelines for good environmental practices.

Study the possibility of achieving the goal of zero CO emissions. 2 (partly)

Reduce consumption of paper through improved management of publicity sent out to customers by mail and encouraging the use of e-Crèdit.

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Objectives for 2010

Energy savings and efficiency plan: · Gradually renew the branches’ air conditioning and heating systems. · Periodically issue messages to raise awareness of sustainable mobility through existing communication channels.

Waste minimisation: · Change the coloured corporate paper to white. · Analyse the optimisation of paper consumption brought about by the new software platform.

Soundproof the systems building at Sant Julià de Lòria.

Continue with the collaboration agreements and sponsorships started.

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12 6 3 5 8

7 4 Corporate Social Responsibility Report 2009

10 ECONOMY

he year that has just ended has been one of significant changes for Andorra and also for its financial system. The most outstanding change has been Andorra’s adaptation Tto the international standards required by the OECD. On March 10, the Declaration of Paris was signed, with the undertaking that Andorra will carry out a legislative reform related to banking secrecy. The Act has been passed on the exchange of information on tax matters with prior request and, at the end of February 2010, Andorra left the grey list of tax havens after having signed more than 12 bilateral agreements. With this process, Andorra has brought itself in line with best banking practices and up to the level of other cooperating states, steps that will standardise the banking sector as part of the reorganisation of the European financial system.

Economic balance, transparency and ongoing improvement in the overall management of the Crèdit Andorrà Group are the main factors that enable the bank’s sustainable economic management. Good economic results and excellence in management establish the bank as a leader in Andorra’s financial sector.

Crèdit Andorrà is also recognised as one of the most solvent and best managed banks in the world. It enjoys excellent solvency and liquidity ratios and has earned other international distinctions, such as the Andorran Bank of the Year given by The Banker (2002, 2003, 2004, 2006, 2007 and 2008).

10 Internationalisation process

The development of new businesses and reinforcing expansion are basic goals in the 2007-2010 Strategic Plan of the Crèdit Andorrà Group. The internationalisation process results from our aim to continue growing and consolidating the business both within and outside Andorra. 11

Opening of a securities firm in Panama 9 1 2 Banco Crèdit Andorrà (Panamá) was opened in Panama in 2008, specialising in asset management, financial services and global consultancy. The creation of Crèdit Andorrà Panamá Securities consolidates the Group’s international expansion in the Republic of Panama. 12 6 3 Another step forward in the internationalisation of the Crèdit Andorrà Group in Latin America 8 5 was taken by Crèdit Andorrà Panamá Securities being granted a business licence from the Comisión Nacional de Valores (CNV) of the Republic of Panama, being the first Andorran bank to get a securities firm licence in Panama.

This subsidiary will focus its services on financial brokerage and consultancy. It will operate in the local market but will also trade its customers’ portfolio on international markets, offering personalised advice based on knowledge of the markets and prioritising the Group’s own values, such as trust, thoroughness and total customer focus. The new organisation will be regulated and supervised by the Comisión Nacional de Valores of Panama, the highest authority in the country, 7 and will report to the Ministry of Economy and Finances of Panama. Its offices are located next to 4

65 Crèdit Andorrà (Panamá), in the heart of Panama’s financial district, at Punta Pacífica, inside the emblematic Torre de las Américas. Setting up this new company will help us to continue working and growing within a scrupulous financial context and with a good reputation.

Torre de las Américas, the site of Crèdit Andorrà Panamá Securities

In Spain, expansion in the insurance business

Continuing with the internationalisation process within insurance, the Crèdit Andorrà Group has expanded in Spain through its insurance holding ERM. Since 2008 ERM has formed part of the Crèdit Andorrà Group and currently has an extensive commercial network spread around the Spanish cities of Barcelona, Girona, Tarragona, Palma de Mallorca and Seville.

The insurance holding ERM specialises in the full management of risks, principally in the Spanish insurance market. Its work is based on identifying, evaluating and handling risks in order to appropriately protect and preserve the assets of firms in the case of possible contingencies.

Within the insurance holding is ERM Consultoria, specialised in risk management, actuarial consultancy and company benefit schemes, and ERM Corredoria d’Assegurances, specialised in

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the consultancy and design of insurance programmes. Each of these companies and the holding in general are well integrated within the Spanish insurance sector and enjoy great prestige among their private clients and Spanish firms.

Crèdit Andorrà’s participation in ERM translates into an added value for its customers, as it is a powerful platform to provide insurance services for Andorran firms operating in the Spanish market or in other international markets, with the guarantees and total confidence offered by the Crèdit Andorrà Group.

Internationalisation process of the Crèdit Andorrà Group

Crèdit Andorrà is an Andorran bank with an international calling. The Group is currently present:

2003 · In Switzerland, through Private Investment Management, asset management firm

2004 · In Luxembourg, through the collective investment firm Crediinvest Sicav

2007 · In Spain, with the fund manager Valira Capital Asset Management

2008 · In Panama, with the opening of Banco Crèdit Andorrà (Panamá). · In Uruguay, with the creation of a representative office for Crèdit Andorrà in Montevideo. · In Luxembourg, with a new collective investment firm, Investcredit Sicav. · In Spain in insurance, with a 76% majority share of the holding ERM, insurance consultancy and brokerage firm.

2009 · In Panama, with the opening of the securities firm Crèdit Andorrà Panamá Securities.

67 BUSINESS FIGURES

2008 2009

Customer loans (thousand euros) 2,902,788 3,030,163

Total customer funds 8,812,768 9,254,456

Operating costs less Taxes / Ordinary margin 31.26% 31.36%

Profit / Average Capital + Reserves 14.74% 13.01%

Solvency 20.37% 23.45%

Number of branches 21 17

Number of ATMs 43 44

Number of automatic branches - 2

ECONOMIC FIGURES

Thousand euros 2008 2009

Profits 85,005 76,655

Income 378,053 261,362

Operating costs 40,677 34,656

Staff costs 35,805 31,415

Investment in sponsorship and social programmes 1,419 1,506

Payments to capital providers 252,004 155,646

Taxes 15,570 15,558

Investment and expenses on environmental matters* 97 157

(*) Expenses on collaboration activities, building work and maintenance, training, audits and patronage.

RATINGS AND AWARDS

According to the Top 1000 (*) ranking, with the most capitalised banks in the world, Crèdit Andorrà comes 562nd (previously 509), heading the list of Andorran banks. *(July 2009 edition, with data from December 2008 and published by The Banker).

The international bank ratings agency, Fitch Ratings, classified Crèdit Andorrà, in February 2009, with a long-term rating of “A”, an “F1” short-term rating, an individual rating of “B” and

68 Corporate Social Responsibility Report 2009

a support rating of “4”. The renewal of this rating is very significant as it confirms a position of the utmost solidity and solvency related to the financial sector in Andorra and internationally.

According to Fitch, these ratings “reflect the entity’s leadership position in the Andorran market, its conservative management and solid profitability”.

Francophonie 2009 economic award

The Francophonie Economic Congress, held in Beirut (Lebanon), gave the Francophonie 2009 economic award to Crèdit Andorrà. This award, organised by the Forum Francophone des Affaires, is given every year to an exemplary initiative for competitive and innovative firms operating in territories where the French language is habitually spoken. The congress was organised through the Comité National Libanais du Forum Francophone des Affaires, in collaboration with the Ecole Supérieure des Affaires (ESA) and the Club France des VIe Jeux de la Francophonie.

From left to right, Stéphane Attali, President of ESA; Reine Codsi, President of the Comité National Libanais du FFA; Josep Peralba, CEO of Crèdit Andorrà; Tammam Salam, Lebanese Minister of Culture; Roger Nasnas, President of the Economic and Social Council of the Lebanon, and Christian Estrosi, French Minister for Industry

ECONOMIC INITIATIVES

With the philosophy of serving its customers and serving the country, Crèdit Andorrà is involved in the economic development and international promotion of Andorra. In spite of the current delicate economic situation, in 2009 we continued to work with the business fabric of various economic sectors in order to give them support. The bank’s aim is to boost initiatives aimed at specific business and social groups, as well as others with a clear customer focus.

69 Talks organised by Crèdit Andorrà

The new Social Security Act

With the coming into force of the new Social Security Act, Crèdit Andorrà organised a series of talks to explain the main changes and the measures to which different economic agents and groups in the country will have to adapt. Specifically, six talks were held, all given by Daniel Marsol, Director of Vincles, an actuarial consultancy firm that is part of the insurance group of Crèdit Andorrà, specialising in the implementation of bespoke benefit schemes for firms. With regard to the economic agents, the talks were aimed at large firms, freelancers and small entrepreneurs, salaried workers and retired people. The talks covered areas such as the new obligations acquired, the additional costs represented by the new legislation and how to economically optimise the possibilities it offers, among others.

The material from these talks was also extended to two groups interested in the issues covered: the Club of Portuguese Entrepreneurs of Andorra and the College of Physiotherapists and Kinesitherapists of Andorra.

Talk given by Daniel Marsol, Director of Vincles, actuarial consultancy firm in the Crèdit Andorrà insurance group

Talk Current situation of financial markets

Crèdit Andorrà organised the talk Current situation of financial markets, given by Francisco García Paramés, Chief Investment Officer at the Spanish financial services firm, Bestinver, which analysed the current situation of the Crèdit Andorrà funds advised by Bestinver and their potential appreciation, as well as the global financial scenario.

Talk given by Francisco García Paramés, Chief Investment Officer at Bestinver

70 Corporate Social Responsibility Report 2009

Andorra Update

Once again, in 2009 Crèdit Andorrà organised the third Andorra Update. This event, given by communication experts Alfons Cornella and Antonella Broglia, CEO and Consultant at Infonomia respectively, provided ideas to tackle the new era of tourism, a key element in the Andorran economy, and presented the main advances and trends in the world of the economy and business. This is a dynamic talk format that, combined with an informal lunch, aims to bring directors, business people and entrepreneurs up-to-date on issues that have affected the economy over the last year.

Collaboration with business institutions and associations

20th Business Meeting in the Pyrenees

For the fourth year in a row, Crèdit Andorrà collaborated with the Business Meeting in the Pyrenees, organised by the Business Meeting in the Pyrenees Association, which in 2009 held its 20th event under the heading Let’s overcome the difficulties, let’s reinvent the future, also supported by the Andorra Chamber of Commerce. The aim of the meeting was to strengthen professional relations in the business world and encourage debate, analysis and reflection on a fundamental issue in 2009: tackling problems and rebuilding the future. Figures of great renown from the world of politics, institutions and business took part in the meeting and this is one of the most important economic workshops in Catalonia, held at La Seu d’Urgell.

From left to right, Ramon Fuertes, Chairman of the Business Meeting in the Pyrenees Association, Josep Peralba, Chief Executive Officer of Crèdit Andorrà and Xavier Juvillà, member of the Business Meeting in the Pyrenees Association.

Andorra Family Business Association

In 2009, Crèdit Andorrà once again co-sponsored the Andorran Family Business Cycle, in its 11th year and under the title of Family and ownership, the challenge of continuity. This seminar, aimed at all business people in the country, especially those representing Andorran family firms, contained a talk given by Jaume Tomàs Carulla, founder and General Manager of the portal www.laempresafamiliar.com, a leading communication channel in its sector.

71 We also co-sponsored the 8th Andorran Family Business Forum, which dealt with the management of family firms in times of crisis. The event had three prestigious guests: Tarun Chopra, Indian photographer of international renown, analysing the values held by business people in emerging, dynamic Indian companies in relation to the new world order; Josep Piqué, Vice-Chairman of the Circle of Economy of Barcelona and non-executive Chairman of Vueling, talking about the new economic paradigm of the post-crisis period; and Víctor Clavell, Regional Vice-President of Ritz Carlton for Europe and General Manager of the Hotel Arts in Barcelona, tackling the management of excellence in times of crisis in hotels of the 21st century.

Crèdit Andorrà promotes this kind of event every year to support the country’s business fabric, stimulating debate and the exchange of experiences among professionals from different sectors.

Conference of the Andorra Euram Circle

In order to debate the opportunities and challenges of trade in the Euro region of the Mediterranean Arc (Euram) and in Andorra, within the context of the current world crisis, the Andorra Euram Circle of the Ignasi Villalonga Institute of Economics and Business, Crèdit Andorrà and the Andorran Chamber of Commerce organised a conference and a round table. The event tackled the need for analysis from the perspective of different business entities, public and private, to ensure this key element of the economy continues to be competitive.

Talk Leading and managing in uncertain times

Together with the consultancy firm Opció Recursos Humans, Crèdit Andorrà organised the talk Leading and managing in uncertain times, whose aim was to analyse the current economic situation. The talk was given by Marcos Urarte, an industrial engineer who has taken the General Management Programme at IESE. The speaker explained the advantages and threats of today’s economic situation and how advantage can be taken of business opportunities at this time. He also covered the role of a transforming leader that must appear at this time when, above all, we need “a large dose of optimism”.

Marcos Urarte, during the talk Leading and managing in uncertain times

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Specialist seminar The keys to good hotel management in times of crisis

With the support of Crèdit Andorrà, Ecotècnic organised a specialist workshop that, under the title The keys to good hotel management in times of crisis, presented the seven key points for good management in this area. The seminar explained the points of the business that must be used to differentiate yourself from your rivals and increase productivity without unnecessarily wasting resources.

Colloquium The Portuguese community: its role in Andorran society

Crèdit Andorrà has collaborated with the Council of Portuguese Communities and with the Portuguese Embassy in Andorra in the colloquium The Portuguese community: its role in Andorra society. This event served as a place for debate concerning the social, economic, employment, linguistic and cultural integration of the Portuguese community in Andorra.

Mario Damas Nunes, Ambassador of the Portuguese Republic to the Principality of Andorra, and Jordi Cinca, Director of Commercial Banking of Crèdit Andorrà

Talk for Portuguese business people on the new Social Security Act and the new Employment Regulations

Together with the Club of Portuguese Entrepreneurs of Andorra (CEPA), we organised a talk on the new Social Security Act and the new Employment Regulations, as well as to provide information on equal conditions in public and private tenders for Portuguese entrepreneurs. Our aim has been to collaborate with CEPA in offering advice to the Portuguese business fabric related to the economy, taxation and law.

73 Signing of the sponsorship agreement with APEDE, the Panamanian Asso- ciation of Business Executives

In order to support the business fabric, not only in Andorra but also in the economic sectors of countries we are expanding to, Crèdit Andorrà has signed a sponsorship agreement with APEDE, the Panamanian Association of Business Executives, to promote training among Panamanian business people.

Publications

Andorra 2008

Since 1981, Crèdit Andorrà has produced a publication with the key socio-economic data for Andorra: in 2009, this was Andorra 2008. This contains the data and indicators from the main economic areas of the country, such as the financial sector, retail trade, tourism, construction, public finance and imports, among others. The publication also provides an estimate of the GDP and demographic, institutional and historical information on Andorra. As every year, we were supported by lecturer Xavier Sáez from the Faculty of Economic Science at Barcelona University, in charge of gathering and processing the data.

Practical Manual of the General Accounting Plan for Andorra 2008

The Andorra Chamber of Commerce, with the collaboration of Crèdit Andorrà, has published the Practical Manual of the General Accounting Plan for Andorra 2008. The aim of this guide, totally free of charge, is to explain in depth, thoroughly and didactically, the General Accounting Plan approved in 2008, to which Andorran firms had to adapt as from January 1, 2009. The production of this publication has involved leading figures such as Antoni Bisbal Galbany, Vladimir Fernández Armengol, Jordi Alcobé Font and Jordi Figueredo González, economists, auditors and accounting experts.

74 Corporate Social Responsibility Report 2009

75 11. TABLE OF GRI INDICATORS AND FINANCIAL SERVICES SECTOR SUPPLEMENT

GRI G3 CONTENT Page

1. STRATEGY AND ANALYSIS

1.1. Statement from the most senior decision-maker of the organization. 6-7

1.2. Description of key impacts, risks, and opportunities. 6-7

2. ORGANIZATIONAL PROFILE

2.1. Name of the organization. 11

2.2. Primary brands, products, and/or services. 24-27

2.3. Operational structure of the organization, including main divisions, operating 12 companies, subsidiaries, and joint ventures.

2.4. Location of organization’s headquarters. 3, 9

2.5. Number of countries where the organization operates. 14, 15

2.6. Nature of ownership and legal form. 11

2.7. Markets served (including geographic breakdown, sectors served, and types of 11, 14-15, 65-67 customers/beneficiaries).

2.8. Scale of the reporting organization, including the number of employees, net 7 (Annual Report), sales, total capitalization and quantity of products or services provided. 33, 24-27, 68

2.9. Significant changes during the reporting period regarding size, structure, or 32-33 (Annual Report), ownership of the organization. 11-15, 65-67

2.10. Awards received in the reporting period. 12-13, 68-69

3. REPORT PROFILE

3.1. Reporting period for information provided. 8 3.2. Date of most recent previous report. 8 3.3. Reporting cycle. 8 3.4. Contact point for questions regarding the report or its contents. 3, 9 3.5. Process for defining report content. 8-9 3.6. Boundary of the report. 8 3.7. State any specific limitations on the scope or boundary of the report. 8 3.8. Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from 8, 12 period to period and/or between organizations. 3.9. Data measurement techniques and the bases of calculations, including Specified when necessary assumptions and techniques underlying estimations applied to the compilation in the indicators of the Indicators and other information in the report. throughout the report. Specified when necessary 3.10. Explanation of the effect of any re-statements of information provided in in the indicators earlier reports, and the reasons for such re-statement. throughout the report.

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3.11. Significant changes from previous reporting periods in the scope, boundary, or 8 measurement methods applied in the report

3.12. Table identifying the location of the Standard Disclosures in the report. 76-81

3.13. Policy and current practice with regard to seeking external assurance for the The report has not been report. verified externally.

4. GOVERNANCE, COMMITMENTS AND STAKEHOLDER ENGAGEMENT

4.1. Governance structure of the organization. 16-17

4.2. Indicate whether the Chair of the highest governance body is also an executive 17 officer.

4.3. Number of members of the highest governance body that are independent and/ 17 or non-executive members.

4.4. Mechanisms for shareholders and employees to provide recommendations or 16 direction to the highest governance body.

There is a link between compensation for members of the highest 4.5. Linkage between compensation for members of the highest governance body, governance body, senior senior managers, and executives and the organization’s performance. managers and executives and the organisation’s performance. Confiden- tial information.

The processes are governed 4.6. Processes in place for the highest governance body to ensure conflicts of interest by law and contained in are avoided. the Regulations of the Board of Directors.

4.7. Process for determining the qualifications and expertise of the members of the Processes exist as per current highest governance body for guiding the organization’s strategy on economic, legislation. environmental, and social topics.

4.8. Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and 13, 18-19, 28, 55 the status of their implementation.

4.9. Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or 16, 18-19, 28, 55 compliance with internationally agreed standards, codes of conduct, and principles.

4.10. Processes for evaluating the highest governance body’s own performance, 16, 18-19, 55 particularly with respect to economic, environmental, and social performance.

4.11. Explanation of whether and how the precautionary approach or principle is 48-50 (Annual Report) addressed by the organization.

4.12. Externally developed economic, environmental, and social charters, principles, 13 or other initiatives to which the organization subscribes or endorses.

4.13. Memberships in associations and/or national/international bodies the 13, 28, 41-53, 61-62, 69-74 organization supports.

4.14. List of stakeholder groups engaged by the organization. 19

4.15. Basis for the identification and selection of stakeholders with whom to engage. 19

4.16. Approaches to stakeholder engagement, including frequency of engagement by 8-9, 19 type and by stakeholder group.

4.17. Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, 8-9 including through its reporting.

77 GRI ECONOMIC PERFORMANCE Information on the economic management focus 65-74 EC1 (P) Direct economic value generated and distributed. 68 Financial implications and other risks and opportunities for the EC2 (P) 26, 43 organization’s activities due to climate change. EC3 (P) Coverage of the organization’s defined benefit plan obligations. 35-36 NA. As a bank, no government EC4 (P) Significant financial assistance received from government. assistance is received. Work with suppliers from the Principality of Andorra Policy, practices, and proportion of spending on locally-based is prioritised. The factors EC6 (P) suppliers at significant locations of operation. influencing selection are environmental, geographic location, quality and price. There are procedures for the local hiring of senior Procedures for local hiring and proportion of senior management management. Senior positions EC7 (P) hired from the local community at locations of significant operation. come from the Principality of Andorra and directors from the local community. Development and impact of infrastructure investments and services EC8 (P) provided primarily for public benefit through commercial, in kind, or 41-53, 61-62, 69-74 pro bono engagement. ENVIRONMENTAL PERFORMANCE Information on the environmental management focus 55-62 EN1 (P) Materials used by weight or volume. 59 EN2 (P) Percentage of materials used that are recycled input materials. 59 EN3 (P) Direct energy consumption by primary energy source. 57 EN4 (P) Indirect energy consumption by primary source. 57 EN5 (A) Energy saved due to conservation and efficiency improvements 55-57 Initiatives to provide energy-efficient or renewable energy based EN6 (A) products and services, and reductions in energy requirements as a 55-58 result of these initiatives. Initiatives to reduce indirect energy consumption and reductions EN7 (A) 55-58 achieved. EN8 (P) Total water withdrawal by source. 55-58 Location and size of land owned, leased, managed in, or adjacent to, EN11 (P) protected areas and areas of high biodiversity value outside protected 58 areas. Description of significant impacts of activities, products, and services NA. There are no facilities in EN12 (P) on biodiversity in protected areas and areas of high biodiversity value protected areas or areas of high outside protected areas. biodiversity. NA. No harmful activity is EN16 (P) Total direct and indirect greenhouse gas emissions by weight. carried out in protected areas or areas of high biodiversity. EN17 (P) Other relevant indirect greenhouse gas emissions by weight. 58 EN19 NA. No other emissions of Emissions of ozone-depleting substances by weight. (P) greenhouse gases are generated. NA. The level of consumption EN20 (P) NO, SO, and other significant air emissions by type and weight. of fossil fuels is low. NA. No significant discharge EN21 (P) Total water discharge by quality and destination. of waste water has been carried out. EN22 (P) Total weight of waste by type and disposal method. 59-60 NA. No significant spill has EN23 (P) Total number and volume of significant spills. occurred. Initiatives to mitigate environmental impacts of products and EN26 (P) 55-60 services, and extent of impact mitigation.

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Percentage of products sold and their packaging materials that are NA. No products are sold that EN27 (P) reclaimed at the end of their useful life, by category of product. can be recycled. NA. There have been no fines Monetary value of significant fines and total number of non- or legal penalties related EN28 (P) monetary sanctions for noncompliance with environmental laws and to noncompliance with regulations. environmental laws and regulations. EN30 (A) Total environmental protection expenditures and investments by type. 55 SOCIAL PERFORMANCE (LABOUR PRACTICES) 18, 31-39. There are safety systems, emergency plans in the offices and employees are Information on the labour practices and decent work focus trained in this respect. Training is given on customer service skills (commercial, technical). Total workforce by employment type, employment contract, and LA1 (P) 33-34 region. Total number and rate of employee turnover by age group, gender, LA2 (P) 35 and region. Benefits provided to full-time employees that are not provided to LA3 (A) 35-36 temporary or part-time employees, by major operations. NA. The legal figure of a collective bargaining agreement does not exist in Andorra, so LA4 (P) Percentage of employees covered by collective bargaining agreements. there is no employee covered by a collective bargaining agreement. NA. Operational changes are notified with the maximum advance notice. With regard Minimum notice period(s) regarding operational changes, including LA5 (P) to notifications in collective whether it is specified in collective agreements. agreements, the legal figure of a collective bargaining agreement does not exist in Andorra. Rates of injury, occupational diseases, lost days, and absenteeism, and LA7 (P) 38 number of work-related fatalities by region. Education, training, counselling, prevention, and risk-control LA8 (P) programs in place to assist workforce members, their families, or 38 community members regarding serious diseases. 37-38. The overall information Average hours of training per year per employee by employee covers all levels and categories. LA10 (P) category. Currently producing job descriptions. Programs for skills management and lifelong learning that support LA11 (A) the continued employability of employees and assist them in 37-38 managing career endings. Composition of governance bodies and breakdown of employees per LA13 (P) category according to gender, age group, minority group membership, 17, 34 and other indicators of diversity. LA14 (P) Ratio of basic salary of men to women by employee category. 34 SOCIAL PERFORMANCE (HUMAN RIGHTS) Information on the human rights management focus 18 The code of ethics and conduct and the rules of Crèdit Andorrà Percentage and total number of significant investment agreements guarantee respect for human HR1 (P) that include human rights clauses or that have undergone human rights in all the Group's rights screening. activities. The legislation of each country is also respected. The main distributors and Percentage of significant suppliers and contractors that have contractors are screened, HR2 (P) undergone screening on human rights and actions taken. although this is not formally established. There have been no incidents of HR4 (P) Total number of incidents of discrimination and actions taken. discrimination.

79 Operations identified in which the right to exercise freedom of No risks have been identified in HR5 (P) association and collective bargaining may be at significant risk, and this respect. actions taken to support these rights. Operations identified as having significant risk for incidents of child No risks have been identified HR6 (P) labour, and measures taken to contribute to the elimination of child with activities. labour. Operations identified as having significant risk for incidents of forced No risks have been identified HR7 (P) or compulsory labour, and measures to contribute to the elimination with operations. of forced or compulsory labour. SOCIAL PERFORMANCE (COMMUNITY) Information on the management focus related to the community 41-53 Nature, scope, and effectiveness of any programs and practices SO1 (P) that assess and manage the impacts of operations on communities, 41-53, 61-62, 69-74 including entering, operating, and exiting. NA. The Crèdit Andorrà Access points in low-populated or economically disadvantaged areas Group does not operate in FS13 by type. low-populated or economically disadvantaged areas. Initiatives to improve access to financial services for disadvantaged FS14 45-46 people. Percentage and total number of business units analyzed for risks The analysis of risks related to SO2 (P) related to corruption. corruption is governed by law. Percentage of employees trained in organization’s anti-corruption SO3 (P) 38 policies and procedures. There have been no incidents of SO4 (P) Actions taken in response to incidents of corruption. corruption. The bank has no position in Public policy positions and participation in public policy SO5 (P) public policy and does not development and lobbying. participate in its development. There have been no significant Monetary value of significant fines and total number of non- fines or sanctions for SO8 (P) monetary sanctions for noncompliance with laws and regulations. noncompliance with laws and regulations related to supply. SOCIAL PERFORMANCE (PRODUCT RESPONSIBILITY) Information on product responsibility management focus 21-29 FS15 Policies for the fair design and sale of financial products and services. 21-29 There are security measures at the branches to minimise the risk Life cycle stages in which health and safety impacts of products and of attack and robbery (presence PR1 (P) services are assessed for improvement, and percentage of significant of digital image recording products and services categories subject to such procedures. equipment, exclusive access door, etc.). There is a security director. Type of product and service information required by procedures, The information on products PR3 (P) and percentage of significant products and services subject to such is subject to regulation by the information requirements. Andorra Institute of Finance FS16 Initiatives to enhance financial literacy by type of beneficiary. 69-74 Practices related to customer satisfaction, including results of surveys PR5 (A) 24 measuring customer satisfaction. Programs for adherence to laws, standards, and voluntary codes PR6 (P) related to marketing communications, including advertising, 28 promotion, and sponsorship. There has been no significant Monetary value of significant fines for noncompliance with laws fine for noncompliance with laws PR9 (P) and regulations concerning the provision and use of products and and regulations concerning the services. provision and use of products.

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GRI. FINANCIAL SECTOR SUPPLEMENT PRODUCT AND SERVICE IMPACT Information on management focus 21-29 FS1 Policies with specific environmental and There is a corporate social responsibility policy and an social components applied to business lines. environmental policy at the level of the Crèdit Andorrà Group. FS2 Procedures for assessing and screening There is a corporate social responsibility policy and an environmental and social risks in business environmental policy at the level of the Crèdit Andorrà lines. Group. FS3 Processes for monitoring clients’ There is an Environmental Management System with ISO implementation of and compliance with 14000 certification. The degree of customer satisfaction is environmental and social requirements also evaluated every year. included in agreements or transactions. FS4 Process(es) for improving staff competency to implement the environmental and social 37-38 policies and procedures as applied to business lines. FS5 Interactions with clients/investees/business The Shareholders' General Meeting is held every year. partners regarding environmental and social There is an Environmental Management System with ISO risks and opportunities. 14000 certification. The degree of customer satisfaction is also evaluated every year. PRODUCT PORTFOLIO FS6 Percentage of the portfolio for business lines Taking into account the size of the country and that the by specific region, size (e.g. micro/SME/large) bank’s business is universal banking, there is crossed and by sector. segmentation. Confidential infiormation. FS7 Monetary value of products and services designed to deliver a specific social benefit for Sustainability fund. each business line broken down by purpose. FS8 Monetary value of products and services Products and services designed to offer environmental designed to deliver a specific environmental benefit are created from a global perspective, not by line benefit for each business line broken down by of business. purpose. AUDIT FS9 Coverage and frequency of audits to assess implementation of environmental and social 55 policies and risk assessment procedures. ACTIVE OWNERSHIP FS10 Percentage and number of companies held in the institution’s portfolio with which the 41-53, 61-62, 69-74 reporting organisation has interacted on environmental or social issues. FS11 Percentage of assets subject to positive and All the assets of Crèdit Andorrà follow the social and negative environmental or social screening. environmental policies. FS12 Voting polic(ies) applied to environmental The Crèdit Andorrà Group’s power of decision over or social issues for shares over which the companies in which it has a holding depends on the reporting organisation holds the right to vote percentage of shares held. or advises on voting.

81 List of photograph credits:

Crèdit Andorrà: pages 11, 13, 32, 43 and 66 ANA: page 22 Desman Trophy: page 36 Borrufa Trophy: page 44 Eduard Comellas: pages 46, 48, 50, 70 and 73 Dorte Passer: page 49 Jaume Blassi: page 51 Philippe Garcia: page 52 Giovanni Busi: page 52 Jordi Pujol: pages 61, 71 and 72 Forum Francophone des Affaires: page 69

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