Social Report 2016 World Without Barriers. VTB Group Conscious Responsibility 2 Contents VTB Group in 2016 4 3.3. Internal communications and corporate culture 50 Abbreviations 6 3.4. Occupational health and safety 53 Statement of the President and Chairman of the Management Board of VTB Bank (PJSC) 8 4. Social environment 56 1. About VTB Group 10 4.1. Development of the business environment 57 1.1. Group development strategy 12 4.2. Support for sports 63 1.2. CSR management 13 4.3. Support for culture and the arts 65 1.3. Internal (compliance) control 16 4.4. Support for health care and education 69 1.4. Stakeholder engagement 17 4.5. Support for vulnerable social groups 71 2. Market environment 26 5. Natural environment 74 2.1. Support for the public sector and socially significant business 27 5.1. Sustainable business practices 74 2.2. Support for SMBs 34 5.2. Financial support for environmental projects 77 2.3. Quality and access to banking services 35 6. About the Report 80 2.4. Socially significant retail services 38 7. Appendices 84 3. Internal environment 44 7.1. Membership in business associations 84 3.1. Employee training and development 46 7.2 GRI content index 86 3.2. Employee motivation and remuneration 49 7.3. Independent Assurance Report 90 VTB Social Report 2016 About VTB Group Market environment Internal environment Social environment Natural environment About the Report Appendices VTB Group in 2016 4 VTB Group in 2016 5 RUB 51.6 billion earned 72.7 thousand people 274.9 thousand MWh in net profit employed by the Group RUB 5.1 billion spent on charity of electricity consumed 900 athletes from seven countries RUB 43 million spent 5,833.3 thousand liters Over 2,000 sales offices took part in the 9th VTB Spartakiad on the World Without Tears of fuel consumed corporate charity program 2,600 applications submitted Over 1.3 million people visited 21.1 million individual customers to enroll in the VTB Junior exhibitions supported by VTB Bank 4,161 tons of paper consumed and VTB Rost programs in the major Russian museums Over 40 awards and a top- 61.8 hours spent on training 356 contracts worth RUB 300 kg of batteries collected for three spot in 60 international per employee 1.46 trillion signed at the recycling by VTB employees rankings (VTB Capital) St. Petersburg International Economic Forum VTB Social Report 2016 About VTB Group Market environment Internal environment Social environment Natural environment About the Report Appendices Abbreviations 6 Abbreviations 7 PJSC Public joint-stock company Post Bank PJSC Post Bank RB GBL Retail Business global business line Report VTB Group Social Report for 2016 ARB Association of Russian Banks RSMB Corporation Russian Small and Medium Business Corporation Bank of Moscow OJSC Bank of Moscow RSPP Russian Union of Industrialists and Entrepreneurs Bank, VTB Bank VTB Bank (PJSC) SC State company CBR Central Bank of the Russian Federation SDO State defense order CIB GBL Corporate Investment Banking global business line SMB Small and medium-sized business CJSC Closed joint-stock company SUE State unitary enterprise CSR Corporate social responsibility Supervisory Council Supervisory Council of VTB Bank (PJSC) DIA Deposit Insurance Agency VTB Bank (Armenia) VTB Bank (Armenia) CJSC FATCA US Foreign Account Tax Compliance Act VTB Bank (Austria) VTB Bank (Austria) AG GBL Global business line VTB Bank (Belarus) CJSC VTB Bank (Belarus) GMC VTB Group Management Committee VTB Bank (Belgrade) VTB Bank JSC Belgrade GRI Global Reporting Initiative VTB Bank (France) VTB Bank (France) SA GRI Guidelines GRI Sustainability Reporting Guidelines VTB Bank (Georgia) JSC VTB Bank (Georgia) GTE Gas turbine engine VTB Bank (Kazakhstan) Subsidiary Organization JSC VTB Bank (Kazakhstan) Hals-Development HALS-Development PJSC VTB Bank (Ukraine) PJSC VTB Bank (Ukraine) IFRS International Financial Reporting Standards VTB Capital CJSC VTB Capital Leto Bank PJSC Leto Bank VTB Factoring VTB Factoring, Ltd. LLC Limited liability company VTB Insurance VTB Insurance, Ltd. MC Dynamo CJSC Management Company Dynamo VTB Leasing JSC VTB Leasing MCB GBL Mid-Corporate Banking global business line VTB Northwest Regional Center Northwest Regional Center of VTB Bank (PJSC) MCC Moscow Central Circle VTB Pension Fund JSC NPF VTB Pension Fund MultiCarta MultiCarta LLC VTB Registrar CJSC VTB Registrar NFC Near Field Communication VTB, Group, VTB Group VTB Group (within the scope of the Report) NSPK National Card Payment System VTB24 VTB24 (PJSC) OJSC Open joint-stock company 6.5 Program SMB lending promotion program OHS Occupational health and safety VTB Social Report 2016 Statement of the President and Chairman of the Management Board of VTB Bank (PJSC) 8 Statement of the President and Chairman 9 of the Management Board of VTB Bank (PJSC) be to increase the profitability of our business mention. The project allows female employees Automation and IT Department at the Financial and achieve a higher net profit, to build a single to work from home while on child-care leave in University under the Government of the Russian full-service bank, and to modernize the Group order to make money and keep their skills current. Federation. Students now gain practical professional through large-scale technological transformation. Moreover, companies of the Group actively promote skills working directly at business units. The launch The key task for 2017 is to finish the main part of mentoring practices in Russia and abroad. of the joint innovative educational program has the activities, which aim at integrating VTB24. become a new milestone in our long-term fruitful For many years, Group companies have been cooperation with this leading specialized university. In 2016, VTB retained and strengthened leading implementing large-scale sponsorship and charity positions in all main business segments. activities, placing a special focus on seamlessness As we head into the Year of Ecology in Russia, we The Group’s investment business unit VTB and continuity. Upon completion of Bank Moscow’s place particular emphasis on various environmental Capital was named Best Trade Finance Bank in integration, VTB Bank continues to support Bank initiatives and promoting a more sustainable use Russia. It received more than 40 awards and Moscow’s most important sponsorship projects, of resources. To prove our commitment, in 2016 confirmed its high position in international including the intellectual TV game show “What? we established VTB Ecology, a separate legal entity rankings and the title of the best investment bank Where? When?”, the Velobike bike rental system, within the Group. VTB Ecology will act as a single in Russia. Among the most notable events of the VTB Kremlin Cup and the Moscow Urban Forum. center for managing the Group’s environmental 2016 were the completion of Bank of Moscow’s projects, the most notable of which are cooperation integration and the establishment of Post Bank by Supporting high-profile business events is a key area with the World Wildlife Fund (supporting its effort to reorganizing Leto Bank and FSUE Russian Post. of VTB’s sponsorship activities. Some of the biggest conserve the population of wild cats), projects with events of 2016 were the St. Petersburg International the Ministry of Natural Resources and Environment One of the landmark initiatives on this front was Economic Forum, the Eastern Economic Forum of the Russian Federation and international the 6.5 Program, a lending promotion scheme and the Army 2016 Military Technology Forum. programs including a series of initiatives aimed that was launched with the support of VTB at restoring the balance in the ecosystem of Bank and VTB24 to offer soft loans to the SMB A major cultural event in 2016 was the exhibition the Arctic. We also continued the Plant a Tree sector. Over RUB 30 billion has been advanced of Ivan Aivazovsky’s paintings at Moscow’s as a Gift project, aimed at encouraging tree Sustainability matters hold an important place in since the scheme was set up in late 2016. Tretyakov Gallery timed to the bicentenary of planting to restore forest habitats in Russia. VTB Group’s corporate culture and the Group’s the artist. VTB was the general sponsor of the practical activities in all regions of activity. We place great value in our people and exhibition, which drew over 600,000 visitors. Looking forward, we aim to maintain strong economic pay particular attention to developing their The year was marked by another important performance, improving our corporate culture, and We are pleased to present our ninth Social professional competencies and improving the event: the signing of an agreement with the continuing sponsorship projects and environmental Report, which summarizes VTB Group’s environment they work in. In December 2016, Pushkin State Museum of Fine Arts to support initiatives. We hope that 2017 will allow us to accomplishments in the area of corporate social a special training program, Project Mindset, exhibition, restoration and publishing activities. implement our ambitious plans and will justify responsibility in 2016. We hope you will find was introduced. It aims at providing insight the highest expectations of our stakeholders. this information useful and interesting. into effective project and risk management VTB Group is committed to supporting education, techniques and teamwork communication and many of its members maintain close ties with In 2016, we examined the results of the VTB skills for employees. Over 200 employees leading local universities. In 2016, we continued to Group Development Strategy for 2014-16 and set participated in the program in December 2016. run the VTB Junior and VTB Rost programs. Over 350 new targets in the strategy document approved young specialists have participated in the programs for the following two years. The priority areas of Among innovative HR projects in 2016, Post since their inception five years ago.