Integrity Drive towards Respect Trust and Prudence Initiative Teamwork and Openness A healthy lifestyle excellence for tradition responsibility and professionalism and creativity effectiveness and goodwill (body, mind and spirit) report social dreams and aspirations. and dreams their fulfill to them better, lives helping people’s make we confidence, instill to committed are We 2010 corporate social responsibility report 2010 Contents 2 Address of the CEO side and Chairman of the Management Board Herman Gref 5 your Our Mission and CSR 9 By Our Customers 13 Recovery and Development of the Economy 14 Socially Significant Retail Services 19 Accessibility of Banking Services 21 Quality and Speed of Service 24 Good Business Conduct 30 Security as a Priority 31 Financial Literacy 33 Our Employees 37 A New Work Philosophy 38 Realising Employee Potential 40 Motivation for Success 47 The Sense of a Common Cause 54 Working Conditions and Promoting a Healthy Lifestyle 56 In Partnership with the Sberbank Trade Union 60 WWW.SBERBANK.RU Contents 3 Our Contribution to Social Development and the Development 2010 of the Country 63 Transparency in Our Actions and Intentions 64 As One with Society 65 Together with the Government 71 Towards Environmental Efficiency 78 Our Shareholders and Investors 83 The Fundamentals of Our Corporate Governance System 84 Incentives for Taking Responsibility for Results 86 corporate social responsibility report Ensuring Operational Transparency 86 Dialogue with Minority Shareholders 88 Foreign Investor Relations 92 Preventing Insider Trading 93 Profile and Performance Indicators for 2010 95 About this Report 112 GRI Content Index 115 List of Abbreviations 119 SBERBANK OF RUSSIA — 170 years A HEALTHY LIFESTYLE 170 (body, mind and spirit) “For me happiness is living in harmony with family and work. And harmony is going to work with pleasure in the morning and going home with pleasure in evening…” Olga Kharlamova, Manager, Sberbank’s Lean Production Programme WWW.SBERBANK.RU Address of the CEO and Chairman of the Management Board Herman Gref 5 What does corporate social responsibility mean for Sberbank? Most adults in Russia have used our services at least once in their life. We account for over one third of all loans provided to 2010 Russian companies and individuals. Sberbank is the largest payment system in Russia, processing millions of domestic and international payments every day. On a national scale, Sberbank is one of Russia’s largest employers. We have over 250,000 private shareholders. In other words, Sberbank is a company deeply integrated into the Russian economy and Russian society. It is the scale of this integration that determines the extent of our responsibility to our customers, shareholders, employees and the country as a whole. corporate social responsibility report Everything we do affects them either directly or indirectly. And vice versa, changes in the Russian economy or social environment become powerful drivers for a change within the Bank. The Report you are reading now is our first attempt to present, within a single document, the full extent and variety of the diverse reciprocal links between our activities and the interests of those we engage with in the process. In the modern world, a company’s success is determined not only by the results it achieves but also by how it achieves them. And we want everyone to know how the Bank achieves its goals and how shareholders’ interests are taken into account. Our starting point for understanding our position and role in the world around us is the Bank’s mission. It states that people, SBERBANK OF RUSSIA — 170 years corporate social responsibility report 2010 with their dreams and aspirations and their problems and circumstances, are at the centre of our business. This is why we are talking about how we are Fulfilling Our Mission in our first Corporate Social Responsibility Report. In 2010, we all faced many challenges in the form of the economic recession and the consequences of the summer droughts and forest fires. In these challenging circumstances, the Bank looked for the best ways to help its customers get through the difficult period while maintaining both their businesses and their social status. Some examples of significant steps taken by the Bank to that end include loan restructuring, cutting interest rates and 6 abolishing commission fees on retail loans. In the past year, we worked a lot to improve the quality and accessibility of our services across various customer categories. side We focused primarily on cutting queues and customer waiting your times at Bank branches, reducing loan request processing time, By optimising customer service processes and developing remote service channels. We will continue these efforts in 2011. Another important initiative for us is our new system of medical benefits, which we began to implement in 2010. It is a unique programme, both in terms of scale and the extent of coverage offered. The programme includes injury and serious illness insurance, as well as free comprehensive health check-ups and discounted rates on voluntary medical insurance. In 2011, we plan to expand it to cover all of the Bank’s divisions. We also plan to launch a Corporate Pension Programme. Our social role is not limited to running a business or creating jobs. By supporting various medical, educational, cultural and sporting projects and through charitable aid and the promotion of a healthy lifestyle, we have the opportunity to help improve the quality of life for the Russian population and to support those who for various reasons are unable to cope alone in difficult circumstances. Supporting education is a significant area of focus to which we pay special attention. We recognise that knowledge is the driving force behind the development of contemporary society. This is why we work closely with leading Russian universities and also develop our own corporate learning system. We play a part WWW.SBERBANK.RU From the CEO and Chairman of the Management Board in the development of the Skolkovo School of Management, as well as supporting professional programmes and competitions run by leading universities in Moscow and the regions. Thanks to significant efforts in 2010, we were able to open our very own Corporate University at the beginning of 2011. We take pride in supporting the Give Life Foundation and the Golden Mask Theatre Festival. We are also proud of our involvement in supporting orphanages and children’s homes. In 2010, more than 3,000 Sberbank employees took part in over one hundred charity events in different regions of Russia. Every regional bank has a number of child care facilities (including children’s homes, orphanages and rehabilitation centres for 7 children from abusive families) to which they regularly provide aid. The four main chapters of this Report describe our relations with our customers, employees, shareholders and investors, as well as 2010 society and the government. In each chapter, we try to describe our strategy with regards to the respective group and present the most significant results achieved in 2010. In 2011, Sberbank will celebrate its 170th anniversary. Today the Bank bears little resemblance to the institution it was just a few decades ago: our ownership structure, range of services and technological capabilities have all changed dramatically. But what has remained unchanged is the Bank’s social significance and its involvement in social development. And we hope that by fulfilling corporate social responsibility report our Mission and building one of the world’s leading financial institutions, we will contribute to the development and prosperity of all stakeholders that engage with us. Herman Gref CEO and Chairman of the Management Board SBERBANK OF RUSSIA — 170 years INTEGRITY 170 "Happiness is when you have no regrets about the day that has passed and know that you lived it for the benefit of yourself and those around you..." Yury Milkov, Head, Financial Market Operations Unit WWW.SBERBANK.RU Our Mission and CSR 9 It is impossible for any organisation to be successful without a “compass” that determines the direction and defines the meaning of its activities. For us, this compass is our mission; it 2010 elucidates the core meaning of what we do and for whom we do it. Ultimately, it establishes our social role as an institution whose activities are capable of improving lives. From this perspective, the concept of corporate social responsibility is not something new to us — we have always considered our responsibility to those we work with, to our customers and to society as a whole, to be an integral component in our business policy. Sberbank has followed this approach throughout its long history. The reward for this consistency is the most valuable asset any corporate social responsibility report company could possess — the trust of our customers and society. According to an independent survey carried out at the end of 2010, Sberbank had the highest confidence rating of any Russian company. In 2008, we adopted a new Development Strategy (http://www. sbrf.ru/en/investor_relations/strategy/), which defined our main goal — to become one of the world’s leading financial institutions. This ambitious goal made the Bank reconsider its understanding of social responsibility, as well as the associated approaches and limitations. Originally, social responsibility at Sberbank focused mainly on ensuring stability in the banking system and the accessibility of financial services, but now we have expanded this to incorporate service quality, professional and personal development for our employees and ensuring high standards of corporate governance among other aspects. SBERBANK OF RUSSIA — 170 years corporate social responsibility report 2010 Our mission We are committed to instill confidence, we make people’s lives better, helping them to fulfill their dreams and aspirations. We are determined to build one of the best financial companies in the world, and our success will be based on professionalism, harmony and satisfaction of our employees.