Social report 2012 World Without Barriers. VTB Group It is taking part that counts 2012 Social report Social Social report 2012 World Without Barriers. VTB Group VTB Social Report 2012 2 Table of Contents 3.4. Accessibility and Quality of Banking Services 44 3.4.1. Expanding the Geography of Operations 44 3.4.2. Development of the Integrated ATM Network 45 3.4.3. Development of Remote Banking Services 46 3.4.4. Security of Banking Transactions 47 4. Our Team 50 4.1. Human Resource Management System at VTB Group 50 4.1.1. Personnel Profile 51 4.2. Employee Selection 52 4.3. Employee Motivation and Development 53 4.3.1. Employee Training 53 4.3.2. Social Benefits 55 Statement of President and Chairman of the Management Board of JSC VTB Bank 4 4.3.3. Employee Evaluation 55 1. About Us 8 4.3.4. Internal Communications 55 1.1. VTB Group Profile 8 4.3.5. Corporate Events 56 1.2. Key Events and Awards Received by VTB Group in 2012 10 4.4. Occupational Health and Safety 56 1.2.1. Key Events 10 5. Our Contribution to the Society 60 1.2.2. Key Awards 10 5.1. Approach to Charity 61 1.3. Our Strategy 12 5.2. Development of Business Environment 62 1.4. VTB Group Governance and Management System 13 5.3. Supporting Sports 64 1.4.1. Corporate Governance 14 5.3.1. Supporting Sports Infrastructure 65 1.4.2. Functional Management of the Business 17 5.4. Supporting Culture and the Arts 65 1.4.3. Sustainability Management System 18 5.4.1. Supporting Theatrical and Musical Art 66 2. Our Stakeholders 22 5.4.2. Supporting Visual Arts 67 2.1. Approach to Stakeholder Engagement 22 5.4.3. Supporting Cinematography and Television 67 2.2. Engagement with Key Stakeholder Groups 24 5.4.4. Supporting Literary, Multimedia, and Other Arts 68 2.2.1. Relations with Shareholders 24 5.5. Key Social Projects 68 2.2.2. Relations with Institutional Investors 30 5.5.1. World without Tears 68 2.2.3. Government Relations 32 5.5.2. Supporting Vulnerable Social Groups 69 3. Our Customers 36 6. Our Contribution to the Environment 72 3.1. Supporting Key Economic Sectors 36 6.1. Environmental Performance in Management of Administrative and Housekeeping Activities 72 3.1.1. Construction and Real Estate 36 6.2. Resource Efficiency and Waste Management 73 3.1.2. Energy and Public Utilities 37 6.3. Financing New Energy, Energy Efficiency and Environmental Projects 75 3.1.3. Manufacturing 37 6.3.1. Innovative Financing Mechanisms 75 3.2. Supporting Small and Medium Business Development 38 6.3.2. Environmental Financing 76 3.2.1. VTB Group Approach to Supporting Small and Medium Business 38 6.3.3. Financing Renewable Energy Projects 77 3.2.2. Small Business Support at VTB24 39 7. About this Report 78 3.2.3. Small and Medium Business Support at the Bank of Moscow 40 8. Annexes 80 3.3. Socially Significant Retail Banking Products and Services 41 8.1. Independent Assurance Report on 2012 VTB Group Social Report 80 3.3.1. Mortgage Loans 41 8.2. GRI Table 82 3.3.2. Socially Significant Card Products 43 Contact Details 84 VTB Social Report 2012 Statement of President and Chairman of the Management Board of JSC VTB Bank 4 Statement of President and Chairman 5 of the Management Board of JSC VTB Bank VTB reputation in Russia and abroad, unite the The high quality of customer service is our Russian bank operating in six APEC economies. Group companies around the shared values, and imperative. Therefore, we are proud to note that At present, we are the only Russian bank that minimise reputational and operational risks. The VTB for the fourth time in a row became the operates in China while also having branches in key principle of the Group activities is to assume leader of the annual customer service ranking Singapore, Hong Kong and Vietnam. Furthermore, responsibility for their consequences since our of banks by The Retail Finance magazine, whereas in 2012, the Group investment arm, VTB Capital, long-term success directly depends on the trust of the service Mobile Bank offered by VTB24 was opened its office in the United States of America. our customers, partners, shareholders, and investors. recognised the best in the market according Being one of the largest financial organisations to the study Mobile Banking Rank 2012. As a facilitator of the government policy, VTB actively in Europe, we realise that our activities have contributes to addressing the most important impact on all the regions where we operate. A truly key event to VTB and a significant challenges faced by the society. One such challenge development to the Russian retail banking sector is the improvement of energy efficiency of the To us social responsibility implies, among other was the launch, in October 2012, of OJSC Leto Bank Russian economy — one of the most energy-intensive aspects, the efficient and successful running targeting the mass and the lower-mass segments economies among BRICS countries with its great of our business and the ability to maintain global of the retail market typically left out of the intended potential for reducing energy consumption. competitiveness. It is only by being a transparent audience of banking projects. The distinct features Therefore, a technology breakthrough in the field company to shareholders, a reliable service of VTB Group new bank include prompt service, of resource and energy efficiency will have a great provider to customers, and an attractive employer customer focus and accessibility of banking influence over the entire economy. In that context, to our employees that we can meet expectations services. In designing this project, we intended VTB started to pay serious attention to creating of all our stakeholders. And, being a responsible to depart from the traditional image of a bank mechanisms for financing energy efficiency projects. corporate citizen, we strive to run our business making the new financial institution as open and in such a way as to conform to sustainability friendly to potential customers as possible. And The report brought to your attention makes it principles to the maximum extent possible. our initiative has already been appreciated by possible to evaluate the contribution we made in experts: according to the study by the information 2012 to sustainable development of Russia and We greatly value the trust of our stakeholders. agency Bankir.ru, Leto Bank was recognised as other areas where we operate. I am convinced that Therefore, in 2012, responding to demands of our the Best Banking Project of 2012. Our plans for this document will help readers better understand Dear Readers! shareholders, we initiated a programme of stock the development of Leto Bank business involve the role of VTB as a responsible corporate citizen. buyback from individual shareholders who took the creation of a sales network comprising several I am pleased to bring to your attention the fifth part in VTB Bank IPO in 2007. Within the framework thousand offices and tens of thousands service VTB Group Social Report. It has already become of the programme, unprecedented for Russian outlets at retail stores all over the country, including a good tradition for us to release it simultaneously business, 75,000 minority shareholders chose the remotest regions. This will have a significant with our Annual Report for the upcoming General to sell back their stock at the original IPO price positive impact on the quality and accessibility Shareholders Meeting. This is another evidence which exceeded the market price at the moment of banking services in the Russian Federation. of our commitment to the highest transparency of the buyback almost twofold. Whereas the standards and our willingness to maintain dialogue number of minority shareholders decreased as Last year was marked by Russia’s presidency with the broadest possible range of stakeholders. a result of the buyback, the rate of participation of APEC — an organisation bringing together the in shareholders’ meetings increased. We are glad world’s largest and fastest growing economies. VTB Bank President and We see social responsibility as an essential element to notice that new shareholders showing active VTB works to expand its business in the most Chairman of the of corporate conduct which helps us strengthen interest in the Bank activities have come on board. dynamic regions of the world, being the only Management Board Andrey L. Kostin Every step is important even at a long distance VTB Social Report 2012 1. About Us 8 9 1. About Us The Group operates outside Russia through: Share capital of VTB Bank: key facts 15 subsidiary banks located in the CIS (Armenia, The Bank charter capital is divided into Ukraine (two banks), Belarus (two banks), 1.1. VTB Group Profile 10,460,541,337,338 ordinary registered shares Kazakhstan, and Azerbaijan) and Georgia, Europe of nominal value RUB 0.01 per share (Austria, Cyprus, Germany, France, the UK, and The international financial group VTB (“VTB Group”, business customers, financial institutions, as Serbia), and Africa (Angola); the “Group”, or “VTB”)1 comprised of JSC VTB Bank well as to government and municipal authorities. The government holds 75.5% of the Bank two representative offices based in Italy and China; (“VTB Bank” or the “Bank”) and its subsidiary Corporate and investment banking services include, equity; around 16.1% is represented by global two branches of VTB Bank in China and India; companies provides integrated financial services in among others, deposit taking and commercial depository receipts nominally held by The Bank two branches of VTB Capital Plc in Singapore and the the CIS, Europe, Asia, Africa, and in the USA.