The Environmental and Social Responsibility Policy

The Environmental and Social Responsibility Policy of PJSC “MTB BANK” (hereinafter – the Policy) defines the standards, principles, and approaches for achieving the sustainable development goals of PJSC “MTB BANK” (hereinafter – the Bank), the main tools for managing environmental and social risks of projects financed by the Bank within the framework of cooperation and implementation of the State Program “Affordable Loans 5-7-9%,” other state programs, state grants, etc., the general reporting requirements, as well as the interaction of the Bank’s structural units and collegial bodies in the process of managing environmental and social risk..

 The purpose of the Policy is to assess and minimize the negative impact of the Bank’s activities on social well-being and the environment.

Recognizing its responsibility for the environmental and social consequences of its activities, the Bank strives for sustainable development of society and fully supports the 17 United Nations Sustainable Development Goals (SDGs), integrating them into its approaches to various daily challenges it faces. The Bank implements the achievement of certain UN SDGs by adhering to the Principles for Responsible Banking, adopted by the United Nations Environment Programme Finance Initiative (UNEP FI).

The 17 UN Sustainable Development Goals  are:
1. No poverty.
2. Zero hunger.
3. Good health and well-being.
4. Quality education.
5. Gender equality.
6. Clean water and sanitation.
7. Affordable and clean energy.
8. Decent work and economic growth.
9. Industry, innovation and infrastructure.
10. Reduced inequalities.
11. Sustainable cities and communities.
12. Responsible consumption and production.
13. Climate action.
14. Life below water.
15. Life on land.
16. Peace, justice and strong institutions.
17. Partnerships for the goals.

This Policy is an internal document of the Bank and is mandatory for execution by all units, managers, and employees of the Bank.

The Policy has been developed in accordance with:
— Law of Ukraine “On Banks and Banking Activity” dated 07.12.2000 No. 2121-III;
— Law of Ukraine “On Ratification of the Paris Agreement” dated 14.07.2016 No. 1469-VIII;
— Regulation on the Organization of Risk Management Systems in Banks of Ukraine and Banking Groups, approved by Resolution No. 64 of the National Bank of Ukraine Board dated 11.06.2018;
- Regulation on the Organization of Internal Control Systems in Banks of Ukraine and Banking Groups, approved by Resolution No. 88 of the National Bank of Ukraine Board dated 02.07.2019;
— Charter of the Bank;
— Risk Management Strategy of PJSC “MTB BANK.”|

The Policy is based on the International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability, namely:
Standard 1 - Assessment and Management of Environmental and Social Risks and Impacts;
Standard 2 - Labor and Working Conditions;
Standard 3 - Resource Efficiency and Pollution Prevention;
Standard 4 - Сommunity Health, Safety, and Security;
Standard 5 - Land Acquisition and Involuntary Resettlement;
Standard 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources;
Standard 7 - Indigenous Peoples;
Standard 8 - Cultural Heritage.

The fundamental principles of the Bank’s Policy, which contribute to advancing society towards sustainable development, are:
— Taking into account public opinion in decision-making processes;
— Promoting the idea of environmental and social responsibility within society;
— Ensuring respect for human rights and preventing discrimination;
• Supporting the implementation of decent working conditions;
• Promoting environmental protection and minimizing negative impacts;
• Introducing best international practices and standards in the field of social and environmental responsibility;
• Supporting the preservation of the rich diversity of our world – biological, cultural, linguistic, as well as historical and natural heritage.

 The Bank’s Policy focuses on three key areas:
— Management of environmental and social risks of projects financed by the Bank;
— Green financing;
— Environmental management and the Bank’s social responsibility.

The Environmental and Social Responsibility Policy of PJSC “MTB BANK”