CSR SUSTAINABILITY REPORT AND NON-FINANCIAL INFORMATION STATEMENT 2020 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 by AENOR. INDEX 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. Key figures of the Group ........................................................................................... 13 1.7. Strategy and risk management .................................................................................. 15 1.8. Principles and governance ......................................................................................... 18 1.9. Development of the governing bodies ....................................................................... 23 1.10. Remuneration of the governing bodies ................................................................... 23 1.11. Corruption and bribery ............................................................................................ 23 1.12. Money laundering ................................................................................................... 25 1.13. 22 Regulatory Compliance ....................................................................................... 26 2. Responsible management ................................................................................................ 27 2.1. Management approach ............................................................................................. 28 2.2. Commitments and achievements .............................................................................. 30 2.3. CSR Roadmap ............................................................................................................ 32 2.4. LABORAL Kutxa's CSR Scorecard ................................................................................ 32 2.5 Materiality Analysis ................................................................................................... 33 2.6. United Nations Principles for Responsible Banking and Sustainable Development Goals (SDGs) .................................................................................................................... 35 3. Management of stakeholders ................................................................................................ 37 3.1. Our relationship with clients ..................................................................................... 38 3.1.1. Management approach .......................................................................................................... 38 3.1.2. Main customer figures ............................................................................................................ 38 3.1.3. Dialogue with the clientele ..................................................................................................... 38 3.1.4. Responsible management with customers and excellence in quality of service .................. 40 3.1.5. Protection of privacy and the security of data and operations. ............................................ 43 3.1.6. Responsible products and services ........................................................................................ 44 3.2. Our relationship with the workforce ......................................................................... 51 3.2.1. Management approach .......................................................................................................... 51 3.2.2. Main magnitudes of the workforce ........................................................................................ 51 3.2.3. Dialogue with staff .................................................................................................................. 52 3.2.4. Staff Development .................................................................................................................. 53 3.2.5. Diversity and equal opportunities .......................................................................................... 56 3.2.6. Conciliation ............................................................................................................................. 58 2 3.2.7. Remuneration Management .................................................................................................. 58 3.2.8. Occupational Health & Safety ................................................................................................ 60 3.2.9. Social Benefits Package............................................................................................................ 62 3.3. Our relationship with society .................................................................................... 64 3.3.1. Management approach .......................................................................................................... 64 3.3.2. Main figures: Profit sharing in society .................................................................................... 67 3.3.3. Dialogue with society ............................................................................................................. 68 3.3.4. Initiatives endorsed by LABORAL Kutxa ................................................................................. 69 3.4 Our relationship with the environment ...................................................................... 71 3.4.1. Management approach .......................................................................................................... 71 3.4.2. Main figures and initiatives developed .................................................................................. 73 3.5. Our relationship with supplier companies ................................................................. 78 3.5.1. Management approach .......................................................................................................... 78 3.5.2. Main figures ............................................................................................................................ 79 3.5.3. Dialogue with suppliers .......................................................................................................... 80 3.5.4. Initiatives developed during the year for responsible supplier management ...................... 81 4. Other figures ........................................................................................................................ 82 4.1. Customers ................................................................................................................. 83 4.2. People ....................................................................................................................... 85 4.3. Environment ............................................................................................................. 92 5. Information on the Report ..................................................................................................... 93 6. Annexes .................................................................................................................................. 96 6.1. Table of equivalences ................................................................................................ 97 6.2. GRI content Index ..................................................................................................... 99 6.3. Principles of Responsible Banking ........................................................................... 104 6.4. Implementation of TCFD climate change recommendations...................................... 108 6.3. Reporting level of the Report .................................................................................. 111 6.4. AENOR verification .................................................................................................. 111 3 0. Letter Index A year ago now, when writing this foreword to the previous Sustainability Report, little could we have imagined that 2020 would unfold as it has. Despite news from Asia about COVID 19, a few weeKs later we found ourselves facing a completely unexpected scenario unliKe anything we had experienced before. A health crisis with major social and economic consequences. Indeed, the pandemic has posed a huge challenge to us as a society and as a cooperative. In just a few days we had to taKe measures to protect the health of our worKforce, our customers and our suppliers, while ensuring business continuity and maintaining basic financial service. All of this has involved a very important personal, organisational and adaptation