Business partners

[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.

[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.

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 of the Bank’s branches are operated under franchise agreements with entrepreneurs.

The Bank’s Companies collaborate with business partners on the basis of agency cooperation agreements. These agreements 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.

For purchases of goods used by the entire Group, the Bank’s supplier selection policy is applied. Specific supplier selection criteria are employed by Companies if separate regulations require that, e.g. the ones governing the operations of funds and investment fund companies at Millennium TFI.

[GRI 308-1], [GRI 414-1] 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 the contracts for provision of construction or environmental services in agreements on waste disposal).[GRI 205-2], [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. In addition, a clause confirming supplier compliance with the Code of Ethics has been included in currently concluded supplier agreements. In 2021, all Bank Millennium suppliers participating in tenders familiarized themselves with the anti-corruption policies contained in the Bank Millennium Group’s Code of Ethics.

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 2021, the quantity and quality of goods and services supplied was monitored for approx. 1,946 agreements by the Bank. In the case of 35 agreements, the suppliers’ financial standing and their contingency plans were monitored. The quantity and quality of goods and services supplied was monitored for roughly 2,131 agreements by the Bank Millennium Group.

[GRI 102-9] The activity of Millennium TFI and the funds it manages involves different types of business partners. These include: the transfer agent maintaining the participants’ registers, the custodian of the funds’ assets, the distributors of units, the entity maintaining the funds’ books and calculating the value of the funds’ assets, the providers of office, transport, legal and IT services, the entity maintaining the documents and the entity handling the circulation of correspondence, the entity maintaining the Company’s books (Bank), banks and brokerage houses as business partners of the funds. The main categories of service providers to the Company and the funds are unit distributors, transfer agent, custodian of the funds’ assets, the funds’ business partners (banks and brokerage houses), legal advisors, financial auditors and IT service providers.

Agreements with Millennium TFI’s suppliers are concluded, and the terms and conditions for the provision of services are defined, on the basis of legal regulations governing the activity of funds and fund management companies. To the extent not covered by the above regulations, the Company applies the Bank Millennium Group’s Code of Ethics regulating the principles of establishing and maintaining relations with suppliers of goods and services.

The main criteria for selecting suppliers are set out in the regulations governing the activity of funds and investment fund companies. Due to different regulations concerning companies and banks, the criteria used by the Company may differ significantly from the criteria used by Bank Millennium. To the extent to which the Company employs group solutions for purchases of goods and services, the applied supplier selection policy is consistent with the principles laid down in the Bank Millennium Group’s Code of Ethics.

[GRI FS5] The Company did not commit its suppliers to comply with ethical or environmental standards. Such commitments are applied in cases where the Company concludes group contracts with suppliers, in accordance with the principles contained in the Bank Millennium Group’s Code of Ethics.

Millennium Leasing cooperates with suppliers of fixed assets, which are the subject of leasing agreements. The cooperation is implemented through Vendor Programs. A potential partner, before entering into cooperation, is verified by Millennium Leasing in terms of business potential, existing portfolio of joint contracts, credibility, and in certain cases a screening of the potential Vendor is performed by the Millennium Leasing Risk Department.

In most cases Millennium Leasing concludes cooperation agreements with suppliers of leased assets, providing for remuneration for the supplier for leads delivered to Millennium Leasing. The agreements have the nature of agency agreements and do not bind the parties on an exclusive basis.

Within the framework of the Vendor Programs Millennium Leasing cooperates both with leading suppliers (importers, dealers) – leaders in their segments, as well as with smaller, local players, e.g. with car consignment stores. Millennium Leasing’s Vendors are suppliers of cars and trucks, truck tractors and semi-trailers, construction machinery, forklifts, production machinery, e.g. for metal, plastic and wood working machinery, printing machines, as well as PV installations.

[GRI FS5] The Company did not commit suppliers of leased assets to comply with ethical and environmental standards. Such commitments are applied in cases where Millennium Leasing concludes group contracts with suppliers, in accordance with the principles contained in the Bank Millennium Group’s Code of Ethics.