CORPORATE SOCIAL RESPONSIBILITY 2013 CORPORATE SOCIAL RESPONSIBILITY CHAIRMAN’S MESSAGE 3 METHODOLOGICAL NOTE 5 THE IDENTITY OF THE GROUP 7 • The Carige Group at a glance 8 • History and its link with the territory 9 • Mission and core values 10 • 2014-2018 Business Plan 12 • The Group structure 13 • Geographical footprint and distribution network 15 CUSTOMERS COMMUNITY SHAREHOLDERS • Corporate Governance 18 • The internal control and risk management system 24 • 2013 Awards and prizes 28 ECONOMIC REPORT 29 • Financial Highlights 29 PAGE 36 PAGE 48 PAGE 57 • Value Added 31 SOCIAL REPORTING 34 EMPLOYEES SUPPLIERS ENVIRONMENT • Social Responsibility in Banca Carige 34 • Dialogue with stakeholders 34 ANNEXES • Tables and indicators 80 PAGE 61 PAGE 74 PAGE 76 • GRI-G3 Indicators 95 CHAIRMAN’S MESSAGE In 2013 the Banca Carige Group embarked on a path Report. Today, more than ever before, Banca Carige of profound renewal which led to a real turning point considers this document not only as an obligation to in both the Group’s governance and management its stakeholders but also as a due response to their structure. Similarly to other players in the banking right for clear, transparent and complete information industry, the Bank has suffered the impact of the on the Group’s operations and key corporate economic crisis that has been particularly harsh on events. The Corporate Social Responsibility Report families and SMEs, i.e. the Bank’s traditional clients, is intended as a rigorous, thoughtful report on the and led to major changes, including regulatory Group’s choices and activities, whose impact on the reforms, in the financial markets. community and regions of operation is described and assessed. These issues, which became of the utmost urgency particularly in the second half of the year, led the It is precisely by assessing the interests of the new management to take important decisions Bank’s main stakeholders that we gain a broader to safeguard the assets and restore the financial understanding of the overall context, which confirms balance of the Group. the effectiveness of the path undertaken and strategies implemented by both the Management Strict and rigorous, yet unavoidable measures were and the Board of Directors. Within the framework of thus taken which, on the one hand, had a severe this document, capital strengthening (including via a impact on the operating income and, on the other, rights issue), which is the main pillar of the Group’s are the pre-requisites for re-launching a growth strategic plan, takes on a broader significance. process for the Bank. We can therefore affirm we have closed 2013 with a pledge of responsibility for The value it acquires in guaranteeing the Bank’s focusing on the future while aiming at preserving financial strength takes centre stage for our the business and safeguarding all those who work in customers, whom we have a fundamental -and for- this organisation. commitment to serve; for our employees and the safeguarding of their jobs; for our suppliers, who can Such a change of perspective, which allows us to rely on a stable relationship with us and for our local look to the years to come in a different light, is the communities, which benefit from the long-lasting background for this Corporate Social Responsibility presence of our credit institution in their areas. (1.1) 3 2014 opens with the presentation of the new 2014- This commitment does not intimidate us but is key asset of the Bank and the one reason why it 2018 Business Plan that marks the beginning of a rather welcomed as an opportunity which we are was founded and operates. I am thinking of our new phase of re-launch for the Group’s business. getting ready to seize via an in-depth review of the shareholders, customers, collaborators, suppliers The Plan reaffirms – as is worth highlighting in this Group’s structure, organisation and functions. Our and the community in general. We appeal to them message – that the values which inspired both the aim is to revise the Group’s governance and internal to share and face the challenge together. In the origin and the development of our Bank still hold control systems, boost the sales-force potential and future, their support will be ever more crucial for us true: support the areas of the Bank’s footprint via increase the Group’s productivity. The distribution to achieve the mission we have set before us, in the lending activities focused on the needs of families of our locally operating network will therefore be aim to enhance and enrich the human, social and and SMEs. re-organised and the head office structure will economic capital available so as to secure a peaceful be simplified, to align internal processes to the future to all of us and the society we live in. Our mission has roots plunging deep into our history, industry’s best practice. which is anything but antiquated and obsolete. Being a local bank nowadays requires the capability The development of our Business Plan focuses to respond to the fast-pace evolution that has particularly on human resources, as a key enabler changed both the face of our society as well as our for the success of the project. We intend to enhance household and business priorities. Therefore, one our workforce, especially our younger employees, of the priority objectives of the Business Plan is the by relieving their day-to-day operations from the (Cesare Castelbarco Albani) development of business models focusing on the most routine-based and bureaucratic activities. new needs of our customers. Innovation, multi- A streamlined structure will result in a natural channel services, service accessibility, efficient and turnover of personnel, with resources exiting upon effective response are the watchwords for boosting attainment of retirement eligibility requirements, customer loyalty and developing customer relations. opening the way to the recruitment of young The focus on service quality is, in fact, the distinctive employees. characteristic of Carige’s way of banking, which has been rewarded, year after year, by high customer The rationale inspiring our actions is to consider loyalty rates. today’s challenges as an incentive for us to attach renewed importance to a tradition that has so far To face the challenges raised by an increasingly proven to be rewarding for both the Bank and the competitive system, this mission needs to be pursued areas in which it operates: looking back to the past by safeguarding and enhancing revenues from the to build our future. Our history is the repository Bank’s core business, which is a prime condition of the strong values, reflective of our identity, for maintaining the high standards required by the which have allowed us to grow for 500 years. The globalized markets in which we operate. cornerstone of our mission will continue to be the individual, not as an abstract idea but in the concrete terms of all men and women who represent the 4 METHODOLOGICAL NOTE This Report refers to the Carige Group management The most important issues in this document are: and adapted by Italian Banking Association (ABI) period from 1st January 2013 to 31st December 2013, concerning the determination and distribution of coherently with the Consolidated Balance Sheet (1); • customer-based relationship in relation to the Group’s value added. this is the 13th issue of the document and, compared the new strategic lines, with a view to a retail to the past, it shows some new features that will be positioning of the Group; As explained in the specific Chapter “Balances outlined below. With a view to its disclosure, this • product responsibility, transparency and adjustment of the prior period in accordance with document is published on Banca Carige’s website. customer satisfaction; IAS 8 (accounting policies, changes in accounting (3.1- 3.2- 3.3) • response to the economic and social needs of the estimates and errors)” in the Consolidated Balance territory, with a focus on supporting households Sheet – available in the “Investor relations” section The Reporting Process (3.5) and businesses affected by the economic crisis; on the website www.gruppocarige.it – some • personnel management and training policies. The Corporate Social Responsibility Unit, which comparative data related to the previous financial year and to the Balance Sheet as at 1st January reports directly to the Communication Direction, This document takes into consideration the banking co-ordinated data gathering and processing in 2012 have been restated in comparison with Group; any deviation will be, from time to time, those originally published; these amendments cooperation with various corporate structures. noted separately. This process aimed at identifying the strategic and are specifically referred to in some tables of this operational lines, together with the most significant The applied methodology document. (3.8-3.9-3.10-3.11) information related to social, environmental and The document structure economic performances. This document has been drawn up using as a reference the following standard templates related This document is structured as follows: Contents and Reporting (3.5–3.6–3.7-4.15) to social reporting: The identity of the Group. It describes the Group The main topics discussed in this document are those • GRI-G3 standard, appropriately adapted to the features, specifically referring to its strong presence considered the most significant by the Company. banking industry in accordance with Italian in the local socio- economic environment, as well as The choice of these topics has been effected taking Banking Association (ABI) guidelines; its coherence with the new strategic lines, in addition into account internal and external drivers, among • “Principles and drafting standards for social to the Corporate Governance aspects. which the Group’s mission and strategy, which were reporting” in accordance with Gruppo di Studio newly defined, as well as the expectations expressed per il Bilancio Sociale - GBS (Study Group for by the stakeholders.