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World Without Barriers. VTB Group 2010 Social Report Social 2010 Mission and Values Who we are VTB Group is the leading Russian financial institution with a strong local presence in key international markets. Our mission To provide world-class financial products and services that help to create a prosperous and sustainable future for our customers, stakeholders and society. Our values Trust. Gaining and retaining the trust of our customers is VTB Group’s most important value. Reliability. VTB Group’s long-term strength is reinforced by leading positions in the financial markets where we operate and our ability to provide local expertise on a global scale. Transparency. Our business is open and transparent, and all of our key stakeholders cooperate closely in order to deliver maximum value and visibility. Versatility. Our wealth of expertise across a broad range of financial products and services ensures that we offer all of our customers the most comprehensive, flexible and sophisticated solutions that suit their individual needs. Solidarity. Knowledge sharing and open communication are fundamental to our team ethos and strengthen our team spirit. While our lines of business are diverse, we are all pulling in the same direction, harnessing the creative insight and potential of each individual member of our team. Our vision VTB Group aims to replicate our successes in the domestic market on a global scale, becoming a premier player in all of our priority markets. 4 Table of Contents A Letter from the President and Chairman of the Management Board 7 1. We 1.1. Profile 11 1.2. Strategy 13 1.3. VTB Group Management 15 1.4. VTB’s Approach to Corporate Social Responsibility 17 1.4.1. CSR Management 17 1.4.2. Stakeholder Engagement 19 1.5. Corporate Governance 20 1.6. Shareholder and Investor Relations 21 1.6.1. Government Relations 21 1.6.2. Relations with Individual Shareholders 22 1.6.3. Relations with Institutional Shareholders 25 2. Business 2.1. Management Approach 27 2.2. Supporting Key Economic Sectors 28 2.2.1. Innovative Technologies 29 2.2.2. Energy 29 2.2.3. Transport Infrastructure 31 2.2.4. Automotive Industry 32 2.2.5. Food Industry and Agriculture 32 2.2.6. Public Utility Sector 33 2.3. Financial Services for the Government 34 2.4. Supporting Medium Businesses 35 2.5. Supporting Small Businesses 36 2.6. Socially Significant Retail Products 38 2.7. Accessibility of Banking Services 39 2.8. Improving Service Quality 40 2.9. Reliability and Security of Banking Transactions 41 5 3. Team 3.1. Management Approach 43 3.2. Personnel Profile 44 3.3. Attracting Talent 44 3.3.1. Personnel Selection Practices 44 3.3.2. Attracting Young Specialists 46 3.4. Opportunities for Development 48 3.5. Remuneration and Social Benefits 51 3.6. Favourable Corporate Culture 52 3.7. Occupational Health and Safety 54 3.8. Protecting Employee Rights 55 4. Society 4.1. Management Approach 57 4.2. Supporting Culture and the Arts 57 4.2.1. Supporting Theatrical and Musical Art 57 4.2.2. Supporting Visual Arts 58 4.2.3. Supporting Cinematography and Television 59 4.3. Supporting Sport 60 4.3.1. Supporting Sports Associations and Events 60 4.3.2. Developing Sports Infrastructure 60 4.4. Supporting Health Care 61 4.5. Strengthening the International Reputation of Russian Business 61 4.6. Combatting Money Laundering and the Financing of Terrorism 63 5. Environment 5.1. Management Approach 65 5.2. Environmentally Sound Approach to the Construction and Reconstruction of Buildings 65 5.3. Resource Efficiency and Waste Management 66 Objectives for 2011 68 Selected Awards Won by VTB Group Companies in 2010 71 About this Report 73 GRI Content Index (G3.0) 75 6 A Letter from the President 7 and Chairman of the Management Board Welcome to VTB’s third Social Report. For the first finance industry. Our international network, which time, we are disclosing information not only about includes over 20 banks and financial companies the corporate social responsibility performance in 19 countries in the CIS, Europe, Asia and Africa, of VTB Bank but also of the entire VTB Group. is unique to the Russian finance industry. This expansion of the reporting boundary is yet another step towards increasing the transparency However, we will not rest on our laurels. of our operations and furthering open dialogue We continuously strive to develop our business and with a broad range of stakeholders. improve the quality and efficiency of our operations. To this end, we adopted the VTB Group 2010–2013 In 2010, VTB celebrated its 20th anniversary. Development Strategy, which is our response to Despite being a relatively young financial group, dynamic changes in the economic and social we have achieved a great deal over our two-decade environment. VTB’s new strategy is, first and history. Today we occupy leading positions in the foremost, a strategy for efficient growth. Today our corporate, retail and investment sectors of the efforts are focused on “growth points”. These growth VTB Bank. Social Report 2010 8 points are our most promising products and a favourable business climate. These include the segments with the greatest potential for revenue high-tech sector, power generation, transport growth. Our key priorities include improving the infrastructure, car manufacturing, public utilities, efficiency of our business, achieving our target return the food industry and agriculture. Over the last year, on equity level and increasing the Bank’s market we participated in a number of socially significant capitalisation. We pay particular attention to projects, including the reconstruction of the Pulkovo strengthening our international standing, seeing airport and the construction of a waste processing ourselves as a prospective key player on the global plant in Yanino. financial markets. VTB24 continued its policy of actively lending At the same time, it is important for us that to small businesses, recognizing their role as an we not only achieve the objectives laid out important provider of jobs, as well as expanding in our new strategy but also create added its line of retail products and improving the security value for our stakeholders. So while for the Group of banking transactions. the strategy means improved financial performance, for our customers it means new products and Our people are what makes VTB unique. It is thanks services that meet their needs and help them to them that VTB was able to celebrate its 20th make investments. At the same time, for our anniversary last year, maintain stability in the employees it means better rewards and better face of a changing macroeconomic environment opportunities for professional growth. and enter a new stage of its development. And for the countries and regions in which we It is our priority to maintain and develop this operate, it means greater financial infrastructure unique asset. Through on-going collaboration and a contribution to socio-economic development. with educational institutions, we are able attract Corporate social responsibility is at the heart of VTB’s energetic and talented young people that business and is the foundation of the Group’s demonstrate significant potential, while at long-term success. the same time making our contribution to improving education in the field of economics in Russia. In 2010, we maintained our traditional focus on We place equal importance on developing strengthening investor and shareholder relations. the skills and abilities our managers and specialists The central theme of our engagement was the need to implement VTB’s new strategy. In 2010, discussion of VTB’s new strategy. For individual the Group ran a number of programs to develop shareholders we held VTB Open Days and corporate culture and unite employees around workshops, while we met with institutional investors common values. The most significant program at meetings and conferences, often with the was most likely We Remember, a voluntary campaign involvement of top VTB Group executives. These dedicated to the 65th anniversary of victory events helped create favourable conditions for the in the Second World War, which united over privatization of further shares in VTB Bank in 2011. 4,000 employees from different cities in Russia The Russia Calling Investment Forum, which was and the CIS. organised by the VTB Group for the second consecutive year to attract investment in Russia, For many years we have supported culture, sport has helped improve the overall investment climate and the arts in Russia. In 2010, VTB Bank and its in the country. subsidiaries organised major cultural events in partnership with leading museums and theatres, We also continued to support key economic sectors, supported television and literary projects and to ensure the social wellbeing of the population and supported athletes who went on to record A Letter from the President and Chairman of the Management Board 9 outstanding achievements. We are particularly We face a number of important tasks in 2011 proud of our charity programme World Without including the partial privatisation of the Tears, which for eight years already has been government’s stake in VTB and the integration helping provide Russian health care institutions of newly acquired assets into the Group’s with expensive medical equipment needed to save management system. I am certain that the children’s lives. professionalism of our staff and the support of our partners will help VTB successfully pass these One significant event in 2010 at Group important milestones and achieve its strategic goals level was our office move. The head office within the next three years, becoming a truly global of VTB Bank and the Russian division financial group that meets the highest international of VTB Capital have now moved to a new building standards.