Within the industry policy that is in force, the Bank distinguishes high risk industries. One of the criteria for a given industry to be classified in this category is a negative growth outlook related, among others, with environmental threats. The Bank has default exposure limits for clients in respective categories, where the caps are the most restrictive for high risk industries.
Bank Millennium has inserted clauses in its rules and regulations for lending to Corporate Banking clients on all clients having to meet the requirements of environmental protection and respecting employment rules. This means that all the projects debt-financed by the Bank and all credit products are also subject to these requirements. [GRI G4 FS1, G4 DMA]
The rules and regulations contain certain restrictions regarding the financing of socially harmful activity featured on the EBRD (European Bank for Reconstruction and Development) Environmental and Social Exclusion List. The limitations commit all borrowers not to use the funding received from a loan for projects associated with forced labor and all forms of discrimination in employment and production and trade in various substances recognized as dangerous and harmful to the environment. Moreover, borrowers are obliged to run their businesses in compliance with environmental protection regulations and other health and safety regulations and the principles of social cohabitation.
Under the “General Terms and Conditions of a Lease Agreement”, clients agree to comply with the provisions about financing products while giving consideration to social and environmental factors. A client is also obligated, when using a leased asset in its business activity, to conduct this activity in compliance with all relevant laws, standards and other regulatory requirements at the nation-wide and local level with respect to protecting the environment, health and safety as well as principles of social cohabitation.
In the case of retail clients, loans granted for each investment are verified by the Bank in view of the investor’s/borrower’s holding appropriate environmental decisions that allow for performing the investment, such as the construction of a home / apartment building, etc. [GRI G4 FS5]