Table of Contents Message from the Chairman of the Board of Directors, Mr. Eitan Raff ............................................................................ 4 Leumi and the Israeli economy .............................................................................................................. 79 Message from the Chief Executive Officer, Ms. Galia Maor ............................................................................................. 5 Leumi as a driving force in the Israeli market ................................................................................................................. 80 What is a Social Responsibility Report ............................................................................................................................. 6 Financial strength of Leumi ........................................................................................................................................... 84 The Leumi Social Responsibility Report ........................................................................................................................... 7 Leumi in the community.............................................................................................................................. 85 ............................................................................................................................... 9 History, Vision and Ethics Putting Leumi’s social responsibility into practice .......................................................................................................... 86 Historical Background ................................................................................................................................................... 10 The Society of "Leumi Follow Me - the Centennial Fund for Tomorrow’s Generation" ................................................. 88 Vision and Strategy ....................................................................................................................................................... 12 "Young Entrepreneurs" organization ............................................................................................................................ 98 Leumi’s Vision ............................................................................................................................................................... 12 Donations allocated by the donations committee ....................................................................................................... 100 Leumi’s Social Vision ..................................................................................................................................................... 18 Additional activities in the community ........................................................................................................................ 102 Leumi’s Environmental Vision ........................................................................................................................................ 21 Employee involvement and volunteering ..................................................................................................................... 105 The "Leumi Way", Leumi’s Code of Ethics ..................................................................................................................... 22 Leumi and the Second Lebanon War .......................................................................................................................... 107 ....................................................................................................................................... 25 Organization Profile Leumi and the environment ................................................................................................................... 109 Bank Leumi as part of the Leumi Group ........................................................................................................................ 26 Leumi formulates a long-term environmental policy .................................................................................................... 110 Ownership Structure ..................................................................................................................................................... 28 Recycling and reduction of consumption .................................................................................................................... 112 Structure of the Board of Directors ............................................................................................................................... 30 Energy conservation and saving .................................................................................................................................. 114 Structure of the Bank .................................................................................................................................................... 32 Water savings ............................................................................................................................................................. 116 The Size of Leumi – key financial data .......................................................................................................................... 34 Preference for environmentally-friendly materials ........................................................................................................ 119 Adoption of Social and Environmental Measures .......................................................................................................... 36 Leumi’s indirect impacts on the environment .............................................................................................................. 120 Marketing and Advertising ............................................................................................................................................ 39 Preservation of historical buildings .............................................................................................................................. 122 Compliance with laws and regulations .......................................................................................................................... 40 A look to the future ..................................................................................................................................... 123 .......................................................................................................................................... 41 Leumi’s customers Directions for the next two years ................................................................................................................................ 124 Leumi Business Lines – the right financial solution for each customer ............................................................................ 42 Acknowledgements .................................................................................................................................................... 126 Leumi's Concept of Service ........................................................................................................................................... 52 List of contributors to the Social Responsibility Report ................................................................................................ 127 Approach to Accessibility at Leumi ................................................................................................................................ 56 GRI (Global Reporting Initiative) Index ........................................................................................................................ 128 Letters of recognition and congratulations .................................................................................................................. 130 ................................................................................................................................................... 59 Leumi’s people GRI ............................................................................................................................................................................. 131 Leumi’s people: the bank's most important resource .................................................................................................... 61 Maala ......................................................................................................................................................................... 132 Training and development of employees ....................................................................................................................... 64 Employee reward and remuneration ............................................................................................................................. 66 Internal communication ................................................................................................................................................ 68 Employee relations ........................................................................................................................................................ 73 Safety and the work environment ................................................................................................................................. 74 Caring for employees and their families .......................................................................................................................