SUSTAINABILITY REPORT AND NON-FINANCIAL INFORMATION STATEMENT 2019 LABORAL Kutxa declares that this Report has been prepared in accordance with the GRI standards: the exhaustive option, and complies with the requirements of Law 11/2018, dated 28 December, on non-financial information and diversity, according to the external verification carried out y AENOR. CONTENTS 0. Letter ................................................................................................................................. 4 1. About us ............................................................................................................................ 7 1.1. Group Presentation ..................................................................................................... 8 1.2. Operating structure ..................................................................................................... 9 1.3. Cooperativism ........................................................................................................... 10 1.4. Values, principles, standards and rules of conduct .................................................... 11 1.5. Geographic distribution of offices ............................................................................. 12 1.6. The Group's main figures .......................................................................................... 13 1.7. Strategy and risk management .................................................................................. 14 1.8. Principles and governance ......................................................................................... 17 1.9. Development of the governing bodies ....................................................................... 21 1.10. Remuneration of the governing bodies ................................................................... 21 1.11. Corruption and bribery ............................................................................................ 21 1.12. Money laundering ................................................................................................... 23 1.13. Regulatory Compliance...................................................................................... ......24 2. Responsible management ................................................................................................ 25 2.1. Management approach ............................................................................................. 26 2.2. Commitments and achievements .............................................................................. 28 2.3. CSR Roadmap ............................................................................................................ 29 2.4. LABORAL Kutxa's CSR Scorecard ................................................................................ 30 2.5 Materiality Analysis ................................................................................................... 31 2.6. United Nations Global Compact and Sustainable Development Goals (SDGs) ............ 33 3. Management of stakeholders. .......................................................................................... 35 3.1. Our relationship with clients ..................................................................................... 36 3.1.1. Management approach .......................................................................................................... 36 3.1.2. Main customer figures ............................................................................................................ 36 3.1.3. Dialogue with the clientele .................................................................................................... 36 3.1.4. Responsible management with customers and excellence in quality of service .................. 38 3.1.5. Protection of privacy and the security of data and operations.............................................. 41 3.1.6. Responsible products and services ........................................................................................ 42 3.2. Our relationship with the workforce ......................................................................... 48 3.2.1. Management approach .......................................................................................................... 48 3.2.2. Main magnitudes of the workforce ....................................................................................... 49 3.2.3. Dialogue with the workforce .................................................................................................. 49 3.2.4. Staff Development .................................................................................................................. 50 3.2.5. Diversity and equal opportunities .......................................................................................... 53 3.2.6. Conciliation ............................................................................................................................. 56 3.2.7. Remuneration Management .................................................................................................. 56 3.2.8. Occupational Health & Safety ................................................................................................ 57 2 3.3. Our relationship with society .................................................................................... 61 3.3.1. Management approach .......................................................................................................... 61 3.3.2. Main figures: Profit sharing in society ................................................................................... 65 3.3.3. Dialogue with society ............................................................................................................. 66 3.3.4. Initiatives endorsed by LABORAL Kutxa ................................................................................. 67 3.4. Our relationship with the environment ..................................................................... 69 3.4.1. Management approach .......................................................................................................... 69 3.4.2. Main figures and initiatives developed .................................................................................. 70 3.5. Our relationship with supplier companies ................................................................. 76 3.5.1. Management approach .......................................................................................................... 76 3.5.2. Main figures ............................................................................................................................ 77 3.5.3. Dialogue with suppliers .......................................................................................................... 77 3.5.4. Initiatives developed during the year for responsible supplier management ...................... 78 4. Other figures ................................................................................................................... 79 4.1. Customers ................................................................................................................. 80 4.2. People ....................................................................................................................... 83 4.3. Environment ............................................................................................................. 89 5. Information on the Report ............................................................................................... 90 6.Annexes ............................................................................................................................ 93 6.1. Table of equivalencies ............................................................................................... 94 6.2. Table of GRI indicators .............................................................................................. 96 6.3. Reporting level of the Report .................................................................................. 101 6.4. AENOR verification .................................................................................................. 101 6.5. Principles for Responsible Banking .......................................................................... 102 3 Index 0. LETTER 2019 has been brought to a close, a very special year for the people of LABORAL Kutxa as we celebrated our first 60 years of existence. It was a year in which, looking back, we were able to remember the reason and the purpose for which this cooperative project was created, as well as the path we have travelled to get here. But it has also been a year in which we have looked to the future. Taking all of this into account, we have undertaken a strategic deliberation to analyse the challenges that we will face in the coming years. These are demanding and exciting challenges that we are keen to tackle, bearing in mind, as we have done for the past 60 years, our way of doing things in which people and a commitment to our environment continue to be a major part of our mission. During the strategic deliberation that will guide us through until 2022, we have analysed our position and the initiatives that we must promote in order to face challenges such as the acceleration of digitalisation and open banking, while maintaining the same vigour for our traditional business. We have also evaluated the technological, talent and data management