corporate responsibility 2018report 04 SOCIAL REPORT 2018 SOCIAL REPORT 2018 05 The Employees 94 Nurturing human capital policy 96 table of contents 05 Employee hiring 99 Discount Bank’s employees 98 Diversity and equal opportunity 104 The Discount values and their integration into the operation of the Bank 06 Maintaining employee rights 111 Discount Bank Summarized Sustainability Performance Table 08 Investing more in employees 120 About the report 10 Goals 136 Greetings from the Chairman and the President & CEO 12 01 Suppliers 138 Discount's eight Corporate Social Responsibility Report 14 Promotion of Responsible Procurement 140 Managing social responsibility at Discount 16 06 Goals 145 Dialogue with stakeholders 16 Discount for the community 146 The process of identifying the material topics 17 "Discount Sprint for the Future" 148 Reporting to the Global Compact 19 07 Discount volunteering in the community 152 Assurance examination 20 Investment in the community 154 Group profile and financial data 22 Goals 158 02 Discount Bank - General Overview 24 Green Discount 162 Mercantile Discount Bank General Overview 29 08 Policy 164 Israel Credit Cards Ltd. ("ICC") – General Overview 31 "Green Credit" 165 IDB Bank - General Overview 33 Promoting green building 166 Membership of organizations and external Initiatives 35 Responsible consumption of resources 168 Social Responsibility Ratings 36 Carbon footprint 172 Commendations and prizes 37 Goals 179 Discount Bank and the United Nations' sustainable development goals 38 Corporate Governance 180 Contributing to the economy 41 09 Corporate Governance Code for the Discount Group 182 Discount Spirit 44 The General Meeting of Shareholders 183 The Board of Directors 184 Formation and integration of the "Discount Spirit" 46 03 The Bank's Management 194 Vision, Values and Everything in Between 47 Remuneration of Senior Officers 195 The Code of Ethics 50 Principal Control Functions 197 Goals 52 Prevention of Corruption 199 The Customers 54 Compliance with Regulation 202 04 Policy 56 Goals 207 Innovation 57 Epilogue 208 Services and products for the advancement of populations 60 10 Thank you's and responses to the report 209 Promotion of accessibility 69 GRI Content Index Combined with UNGC 210 Impact Investments 72 Principles of the Global Impact Initiative 219 Financial education 73 Appendices - Customers 220 Suits you better - quality of service 77 Appendices - Employees 223 Appendices - Community 231 Fairness in products 84 Appendices - Green Discount 232 Customer privacy and information security 87 List of tables and charts 233 Goals 92 06 SOCIAL REPORT 2018 SOCIAL REPORT 2018 07 Committed to the customer Making it happen Professionalism, service and innovation Initiative and determination, accepting responsibility and honoring obligations Commitment to Commitment to service Commitment Strengthening Accepting customers in crisis quality improvement to a personally ethical aspects environmental situation customized service and corporate responsibility governance The setting-up of an First place in the Intensification of thedialogue Digital workshops and additional support Marketest Index with customers and an training sessions for team for customers regarding customer increase of 9% in the number third age persons Integration of a system Replacing the air in financial crisis experience in Israel of followers on Facebook for the monitoring conditioning systems Development and offer of employee by power saving VRF of banking products embezzlement systems at fourteen intended to advance intensifying the Bank locations 5.2% 35.6% Commitment to designated populations campaign against decrease in decrease in paper innovation Advancement of corruption electricity consumption consumption Enlarging the fintech small and minute operations and the businesses 5.6% 11.9% 4.4% offering of new services increase in reduction in reduction in increase of 9% in credit and products for customer the number the number customers of Paybox, service of complaints of complaints A personally Integration of the code Installing power 7.6% NIS 10.3 iCount, and Didi (the experience and inquiries regarding the customized service for of ethics and employee saving LED light bulbs decrease in the million in favor of digital representative) satisfaction received quality of service freelance customers instruction at 22 Bank locations carbon footprint energetic efficiency During 2018, the Bank acted towards the The Discount values and their integration integration of the values of the organization, on into the operation of the Bank the basis of the "Discount Spirit" formed in 2017 Leading change Succeeding together Identifying change as an opportunity, daring, curiosity Creation of cooperation and knowledge sharing, and openness for new ideas establishing trust, concern and honor Leading social change Leading narrowing gaps Sharing knowledge and Nurturing of the in society advancing financial education human capital Social impact Enlarging the operation of the investments by TeleBank centers comprising NIS 16.9 means of Discount Activity with respect Nurturing managers An increase in million investment in the employment centers in Capital to financial education and the future the number of community, an increase of 4.3% peripheral areas for customers of all generation – participants in compared to 2017 A new wage agreement, which banks, with the aim of investment of an welfare and leisure reduces gaps and strengthens advancing financial average of programs Cooperation with the Bank's future generation skills in the society Sprint Association 105 instruction hours scholarships granted to students developing and 38 operating programs Leading an environmental per manager, compared of the Arab sector, within the to 35 hours in 2017 framework of the "Sprint Discount" for the advancement change program, financed by MDB of youth in risk situations in peripheral areas, NIS 822 Formation of new Improvement in leading to the million of "green" credit to performance internal services 48.4% reduction in gaps in solar projects advancing green evaluation processes between the increase in the number of volunteers the society energies for employees different units 08 SOCIAL REPORT 2018 SOCIAL REPORT 2018 09 Discount Bank Summarized Sustainability Performance Table Investors performance Social Environmental Field Index 2018 2017 2016 Field Index 2018 2017 2016 Customers Rate of justified complaints 15.1% 13.6% 17.9% Carbon Volume of emission 24,892 26,947 31,657 against the Bank footprint (in tons of CO2e) Justified complaints regarding 6 4 2 Emission per square meter 0.17 0.18 0.2 customer privacy and data protection Resources Electricity consumption 37,102,203 39,150,000 45,451,596 consumption (in Kw/h) Complaints regarding 0 0 0 product fairness Fuel consumption 623,646 621,880 613,548 (in liters) Employees1 Number of employees 5,343 5,502 5,529 Paper consumption 263 408 539 Ratio of unionized employees 89.3% 91.7% 91.0% (in tons) Green credit Credit to solar projects 822 884 736 Ratio of resigned employees 14.4% 13.0% 17.8% (in NIS millions) Ratio of female employees 60.3% 59.7% 59.2% of the Bank Ratio of female employees in 50% 49% 48% executive positions Ratio of employees belonging to 8.4% 7.7% 4.2% the under-represented population in the labor market (Discount Bank) Ratio of employees belonging to 13.5% 12.6% 4.9%2 the under-represented population Economic – corporate governance in the labor market (Discount Bank and the principal subsidiaries in Israel) Average instruction hours per 37 39 34 employee Field Index 2018 2017 2016 Suppliers Ratio of domestic suppliers 94.6% 95.3% 95.9% Economic Economic value to stakeholders 7,055 6,441 6,552 performance (in NIS millions)1 Community Investment in the community 16,900 16,200 17,200 (in NIS millions) Board of Independence of the Board 69% 67% 71% Directors of Directors Ratio of volunteers at the Bank 22.5% 14.7% 21.7% (ratio of external Directors) Commitment for investment in 10,500 - - Ratio of female Board members 23% 25% 29% Impact funds (in thousands of US dollars) 3 Average tenure of Directors 2.46 4.24 4.01 Notes: 1 The data does not include employees on unpaid leave and on maternity leave Notes: 1 Operating and other expenses with the addition of provision for taxation and dividends 2 Excluding Mercantile Discount Bank 3 Total commitments through Discount Capital within the framework of funds managing investments having a social impact alongside a financial return 10 SOCIAL REPORT 2018 ABOUT THE REPORT 11 01 About the Report Greetings from the Chairman and the President & CEO 12 Discount's Eighth Corporate Social Responsibility Report 14 Managing social responsibility at Discount 16 Dialogue with stakeholders 16 The process of identifying the material topics 17 Reporting to the Global Compact 19 Assurance examination 20 12 SOCIAL REPORT 2018 ABOUT THE REPORT 13 Greetings from the Chairman and the President & CEO We are honored to present the Corporate Social Responsibility Report (“CSR Report”) of continues to reduce wage gaps and strengthens the next generation of Bank employees. Discount Bank for 2018. The publication of the CSR Report reflects Discount Bank's deep commitment to the subject of social and environmental responsibility, including in matters Within the scope of its social involvement and commitment, the Bank continues to take action of corporate governance. Discount Bank continues to act in accordance with the Vision that to advance weak populations and encourage