Business partners

[GRI 103-1, GRI 103-2, GRI 103-3] The principles of cooperation with Bank Millennium’s suppliers are described in the Instructions for selecting suppliers and making purchases. These instructions define, among other things, how the procurement process is organized, the role played by the various process participants and the supplier selection criteria. Suppliers are selected in tenders, which allows the Bank to use objective selection criteria. To ensure transparency of the procurement process, the substantive and commercial evaluations of bids are done by independent Bank units. The chief risk ensuing from inappropriate cooperation with suppliers involves a limitation on the ability to render banking services.

[GRI 102-9] The Bank cooperates with many business partners as the buyer of products and services from various market segments. The key business partners render services associated with the lease of and support for branches and office space, services and purchase of IT equipment and security and marketing services.

The Bank collaborates with brokers on the basis of agency agreements. Collaboration involves the Bank entrusting businesses to perform the activities prescribed by the agreement related to acting as an intermediary in the sales of mortgage products. Ordinarily, the agency agreements entered into by the Bank are outsourcing contracts. Some branches of the Bank are operated under franchise agreements entered into with commercial undertakings running them.

The Bank’s Companies collaborate with business partners on the basis of agency cooperation agreements. They are entered into with business entities or individuals working in a given organizational unit (Representatives).

The criteria for selecting suppliers in tender procedures include: good ratio of quality to cost of the services or products and the terms of delivery and payment. The bidder’s substantive capabilities and financial reliability are also taken into account.

Geographical location of the suppliers is not one of the selection criteria. In justified cases, the Bank also includes environmental and social factors among the aspects that affect its choice of suppliers.

Purchases of goods used by the whole Group are governed by the Bank’s supplier selection policy. Specific supplier selection criteria are employed by Companies if separate regulations require that, e.g. the ones governing the operations of funds and mutual fund management companies at Millennium TFI.

The requirement to apply ethical and/or environmental clauses in agreements, where applicable, is an important element of the regulation pertaining to the procurement process (for example OHS regulations in construction contracts or environmental services in waste disposal agreements). [GRI FS5] Every supplier taking part in a tender procedure must undertake to observe the rules included in the Bank Millennium Group’s Code of Ethics, including the respect of human rights and compliance with anti-corruption policies, by signing a representation to that effect. Additionally, any supplier agreements currently executed contain a clause confirming the supplier’s compliance with the provisions of the Code of Ethics. In 2019, all suppliers of Bank Millennium participating in tenders were provided with the anti-corruption policies included in the Code of Ethics of the Bank Millennium Group.

The performance of agreements of significance to the Bank is monitored. The quality and timeliness of services and goods and financial standing of the suppliers are evaluated. In justified cases, audits are conducted in suppliers’ offices to assess their security and continuity of their business activity. In 2019, the quantity and quality of goods and services supplied was monitored for roughly 2,170 agreements by the Bank. In the case of 38 agreements, the suppliers’ financial standing and their contingency plans were monitored. The quantity and quality of goods and services supplied was monitored for roughly 2,280 agreements by the Bank’s Group.