Management approach to sustainable development

[GRI 102-12] The basis for defining the approach to managing sustainable development is an agenda formulated by the United Nations that includes 17 goals, 169 targets, and 304 indicators. Bank Millennium signed a declaration regarding the implementation of the UN Sustainable Development Goals in 2017.

As of 2018, the Bank is a signatory to the Diversity Charter. The Charter is a pledge signed by organizations that choose to prohibit discrimination in the workplace and work to create and promote diversity.

In Bank Millennium, actions towards sustainable development are an integral part of the business strategy. ESG is also included in the Group’s new strategy for 2022-2024, which was announced in December 2021. This issue is discussed in detail in Section 1.4 of this report („ESG is an integral part of the new strategy for 2022-2024„).

Bank Millennium’s priority is to provide the highest quality of client service, conduct ethical marketing and sales and facilitate the utilization of banking and non-banking services (e.g. e-administration) by introducing facilities for people with disabilities and innovative services. Also employees are the recipients of ESG activities. In addition to ensuring stable and attractive working conditions and offering an opportunity to get involved in social activities the Bank promotes diversity in the organization. Social programs are run through the Bank Millennium Foundation and focus primarily on financial education and development of employee volunteerism.

[GRI 102-11] The Bank also attaches great importance to environmental and climate protection issues and carries out its activities in the spirit of the strategy formulated by the European Union and its member states. The Bank has defined its approach to these issues in the „Environmental Policy of the Bank Millennium Group„. These issues are discussed in detail in section „Managing Environmental Impacts and Climate Protection„.

In 2021, the readiness of the Bank and selected Group entities (Millennium Leasing, Millennium TFI) to operate in compliance with applicable regulations covering ESG and market best practices on ESG was analyzed.

The analysis included, among other things:

• Review and adaptation of the organizational structure to meet new challenges;
• Development of a methodology for reporting data/indicators based on external data;
• Identification of new reporting duties and expected disclosures to be presented in annual ESG reports of the Bank Millennium Group in 2021-2024 resulting, among others, from EU regulations;
• Definition of other reporting duties beyond the annual ESG report;
• Development of an approach to climate scenarios;
• Development of an approach to emissions targets;
• Further development of approaches to new opportunities and risks following from climate issues.

[GRI 102-26] The President of the Bank’s Management Board is responsible for overseeing the pursuit of the sustainable development goals at the highest level.

Bearing in mind the growing significance of sustainable development for the Bank Millennium Group’s business, in 2021 the Bank established within its structures the Sustainability Committee and the Sustainability Office.

The Sustainability Committee is chaired by the President of the Bank’s Management Board. The Committee is composed of all members of the Bank’s Management Board, as well as representatives of the units performing tasks related to sustainable development in the Bank and the Bank’s Group. The Committee meetings are held not less frequently than once a quarter. The Committee’s tasks include recommending a sustainable development strategy to the Bank’s Management Board, adopting operational plans related to the implementation of this strategy and monitoring the implementation of the planned actions, evaluating the impact of sustainable development principles on the Bank’s activity, approving and monitoring KPIs and KRIs in the area of sustainable development, providing the Bank’s Management Board with periodic information on key aspects of sustainable development.

The Bank has also established a Sustainability Office supervised directly by the President of the Bank’s Management Board. The purpose of the Office is to supervise and coordinate the implementation of sustainable development principles in the Bank and the Bank’s Group. The scope of the Offices tasks includes, among others: coordination of work related to the sustainable development strategy, cooperation with other units of the Bank and entities of the Bank’s Group in the implementation of the sustainable development principles, ensuring identification of risks related to climate change in the Bank’s operations, cooperation with other units of the Bank in the implementation of sustainable products, conducting activities aimed at promoting sustainable development principles among the Bank’s employees.

Sustainability activities in the respective reporting areas are the responsibility of the individual units of the Bank and the Bank’s Group in accordance with their areas of responsibility, forming an integral part of the business.

[GRI 102-26], [GRI 102-31] The execution of the strategy is subject to regular reviews and assessments. They are carried out by the Bank’s Management Board, based on information prepared by the entities responsible for their implementation and by the Bank’s Supervisory Board. Global assessment of the Bank’s activities, including the management of economic, environmental and social issues, is performed by the Supervisory Board based on the Bank’s published statements. They are analyzed and presented to the at the Shareholder Meeting and form the basis for granting a discharge to the Bank’s Management Board on the performance of its duties in a given financial year.

All ESG activities have been summarized once a year since 2006 in the Bank Millennium Group’s Corporate Social Responsibility reports.