1. INTRODUCTION - voban.co.rscontrols 1/4 of its retail operations in its home country and has a 25% share in the deposit market. Deposit participation reflects the trust of clients,

Izveštaj o održivom poslovanju za 2016. godinu

1. INTRODUCTION 1.1. Bank Profile ....................................................................................... 8 1.2. Strategic Approach to Sustainable Business ......................................12 1.3. Management ....................................................................................16

2. RESPONSIBILITY TO THE MARKET .................................................... 23 2.1. Client Satisfaction ........................................................................... 24 2.2. Financial Inclusion ........................................................................... 29

3. RESPONSIBILITY TO THE EMPLOYEES ............................................... 31 3.1. Equal Opportunities ......................................................................... 34 3.2. Development and Specialization .......................................................35 3.3. Safe Working Environment ...............................................................37

4. RESPONSIBILITY TO THE COMMUNITY .............................................39 4.1. Promotion of Culture and Cultural Heritage ..................................... 40 4.2. Helping Vulnerable Social Groups .................................................... 42 4.3. Supporting the Development of Sports ............................................ 43 4.4. Supporting Education ...................................................................... 44

5. RESPONSIBILITY TO THE ENVIRONMENT ..........................................47 5.1. Responsible Resource Management .................................................. 48 5.2. Responsible Financing .......................................................................50

6. GRI INDEX AND INDICATORS ...........................................................53

TABLE OF CONTENTS

VOJVODJANSKA BANKA A.D. NOVI SADThe Sustainable Business Report for the Year 2016

Editor-in-Chief: Zorica Džida

Editors: Vladimir Stojanović, Ana Račić

Editorial Team: Ana Kruna, Jasmina Lukić

Contact Details of the Editorial Team:[email protected] banka a.d. Novi SadCorporate Social Responsibility DepartmentTrg slobode 5-721000 Novi Sad

Partner: Smart kolektiv

Design: DNA Communications

Circulation: 200

Printed by: Jovšić printing centar d.o.o. Beograd

5The Sustainable Business Report for the Year 2016

MARINOS VATHISPresident of the Executive Board of Vojvodjanska banka a.d. Novi Sad

Dear readers,

I am proud and honoured to present to you our Bank’s first “Sustainable Business Report” for the year 2016. Corporate social responsibility as well as sustainability, form an integral part of our business strategy. By adopting and accepting this commitment, we express our desire that our daily banking business is tightly connected to our efforts to continuously strive towards economic prosperity, without neglecting activities of improvement of life and work conditions of the community we operate in.

In the very dynamic environment we live and operate in, we are very actively committed to be a “responsible” member of the community, regardless if it is about our clients, employees, marginalized social groups, top sports, or cultural heritage. As a responsible financial institution, we have chosen to be among the corporate social responsibility leaders, aware of a fact that we can and we must contribute to the achievement of the Global Goals, defined by the United Nations.

The 2016 Sustainable Business Report, which is in front of you, prepared under the General Reporting Initiative (GRI) methodology, unifies all our activities towards achieving sustainability in the past year. Our efforts, as well as the achieved results, have been presented comprehensively and realistically. The Report helps in a very transparent way, to perceive what has been done, but at the same time it indicates to which direction we should set our challenges in the upcoming years.

Respectfully,Marinos Vathis

INTRODUCTION

6 The Sustainable Business Report for the Year 2016


ZORICA DŽIDACorporate Social Responsibility Department Head

Dear Reader of this Report,

The preparation of the Sustainable Business Report for 2016 represented a major business challenge, but was also a pleasure to do. Bearing in mind the fact that by deciding to establish the Corporate Social Responsibility Department in April 2016, the management of Vojvodjanska Bank determined that this non-core activity should become an integral part of the business strategy, the preparation and publication of this Report represents one of the priorities in our activities.

In modern business conditions, the significance of corporate social responsibility grows by the day. From day to day we are confronted with the recognition of the importance of "responsible" business. In its beginnings, socially responsible business was identified with philanthropy, which in today's terms represents only one segment. In preparation of this report, which is the result of team work of colleagues at the Bank, we sincerely believe that we have made progress in understanding the socially responsible business and its importance. By applying the GRI methodology in preparing the report, Vojvodjanska Bank is represented in all segments of "responsibility". We have encountered questions about the need for this Report, since this form of non-financial reporting is not an obligation. The answer is very simple - by preparing and publishing the Report in a "responsible" manner, all stakeholders are introduced to the efforts and achievements of responsible business of Vojvodjanska Bank.

Sincerely,Zorica Džida

About the Report

The Sustainable Business Report of Vojvodjanska banka a.d. Novi Sad for the year 2016 brings for the first time a systematic review of strategy, activities, and performance of the Bank in this field, by providing an insight into the impacts that the Bank achieves in the corporate governance area, responsibility to the customers, suppliers, employees, community, and the environment.

The Report has been made in accordance with the G4 guidelines of the Global Reporting Initiative – GRI, an internationally recognized methodology, which enables a comprehensive approach to the reporting on sustainability, but also offers a frame for sustainability management in a company and for a dialogue with stakeholders.

An overview of the Bank’s performance in the Report has been shown through presenting a strategic approach to each and every area and responses to 29 GRI indicators, including answers to indicators of the GRI sectoral appendix for the financial sector. Thereby, the GRI principles of balance, comparability, completeness, clarity, and timeliness have been consistently applied. The techniques of measuring and collecting data are marked next to each and every indicator.

For all questions, suggestions and comments regarding the Report, the contact person is:

ZORICA DŽIDACorporate Social Responsibility Department Head

+381 21 488 [email protected]


1.1. Bank Profile

NBG Group

The National Bank of Greece, founded in 1841, became the first bank in the modern Greek state, thus providing a significant contribution to financial life over the past 175 years. Today, the National Bank of Greece is leading one of the largest and strongest financial groups in Greece, with a strong presence in Southeast Europe and the Eastern Mediterranean. The National Bank of Greece controls 1/4 of its retail operations in its home country and has a 25% share in the deposit market. Deposit participation reflects the trust of clients, which are its driving force. NBG Group is the first Greek financial institution to have successfully listed its shares on the New York Stock Exchange in 1999.

NBG Group offers a wide range of financial products and services that meet every new need of businesses and individuals, such as deposits, business investments, finance, brokerage, insurance, leasing and factoring. The Group operates in 11 countries and, in addition to the National Bank of Greece, controls 8 banks and 53 companies providing financial and other services, with 20,057 employees. It has a strong international presence, serving a market of 100 million inhabitants: Greece, Serbia, Romania, Bulgaria, Albania, Macedonia, Malta, the United Kingdom, Cyprus, Egypt and South Africa. In Greece, it has a wide distribution network of 509 branches, 1448 ATMs and 56 off-site locations for transactions.

The National Bank of Greece has been present in Serbia since 2002 with the opening of its first branch in Belgrade, and since 2006, by taking over the Vojvodjanska Bank, the NBG Group significantly expanded its operations on the Serbian market. Since 2007, NBG Leasing has

INTRODUCTION

Advanced Sustainability Practices in the

NBG Group

The vision of the NBG Group is to maintain its position in Greece as well as its dynamic presence in South-eastern Europe and the Eastern Mediterranean, with dedicated, consistent and transparent business for the benefit of clients, shareholders, employees and, last but not least, with responsible business towards society.

started operating in Serbia, providing financial leasing services to legal entities and individuals. NBG Leasing is not covered by this report.

Vojvodjanska Bank

With a long tradition of nearly 150 years, Vojvodjanska Bank has been operating successfully in Serbia and is one of the most famous domestic brands in the country, and since 2006 it has been operating as one of the leading international banking groups – the National Bank of Greece Group.

Vojvodjanska Bank is among the ten biggest banks in Serbia by size of assets, has the status of a significant bank and is among the best transactional banks in the market. The bank is highly capitalized and liquid and is


financed from its own funds. With one of the five largest networks in Serbia (taking into account the number of branches), which consists of 106 branches at the end of 2016, four regional SME business centres and more than one million clients, Vojvodjanska Bank covers the entire territory of the country.

Business Results for 2016

Having increased its balance sheet assets by 5,570 million dinars in 2016, Vojvodjanska Bank managed to

The leading international banking and financial institution, Commerzbank, once again declared Vojvodjanska Bank the best in the field of commercial payments and financial transfers. The STP (straight-through-processing) award granted to the Bank implies exceptional quality, high standards and high efficiency in the implementation of commercial payments and financial transfers. "This prestigious award that we have won for the fourth year in a row is a confirmation of our commitment to always provide our customers with high quality of service. We are extremely honoured that Commerzbank, the leading international bank, recognized and rewarded the efficiency of our business, which motivates us to continue to improve the standards of all the services we provide" – said Xenofon Damaskos, a member of the Executive Board of Vojvodjanska Bank. Commerzbank is one the most significant and prestigious financial institutions in Europe, which has traditionally rewarded its best associates in the world for outstanding results in the field of execution of payment transactions. STP award is granted only to institutions and companies with which Commerzbank cooperates internationally and who have reached a certain level of quality in the field of payment in dollars and euros.

In addition, Vojvodjanska Bank has been declared the best custodian bank in Serbia according to the prestigious magazine "Global Custodian Magazine", for the fourth year in a row (2012, 2013, 2014 and 2015). This award for exceptional quality, high standards and exceptional efficiency in executing commercial payments and financial transfers, is a confirmation of our commitment to providing our clients with the highest quality of services.

maintain its position on the banking market, and in 2016 it remained among the ten largest banks in Serbia.

The Bank managed to achieve a positive business result after taxation of 301 million dinars, which is 267 million dinars more than in 2015.

“For us, 2016 has been a good year. At the end of September we recorded a net profit of 4.6 million euros and continued with positive results in all business segments. As a bank financed from own funds with an indicator of capital adequacy safely above the regulatory minimum, we focused on lending to small and medium-sized enterprises and retail business.”

“The confirmation of our strong liquidity was once again proven by our strong deposit base. Despite the low interest rates on the market, our total deposits increased by 6% since December 2015. This is very important to us because it shows that our clients have confidence in Vojvodjanska Bank, they see us as a safe guardian of their money. Also, it proves that the market is more sophisticated; clients do not choose banks on the basis of the offered current interest rates, but on the basis of trust. In addition, the volume of lending continued to increase while the volume of non-performing loans decreased significantly”, said Marinos

Prestigious Awards for Vojvodjanska Bank


Vathis, President of the Executive Board of Vojvodjanska Bank, when presenting the annual results.

The level of deposits in 2016 increased by 5.1% compared to the previous year, amounting to RSD 104,410 million. The solid deposit base enabled the Bank's high liquidity, and consequently increased lending activity as well as higher investments in securities.

RetailVojvodjanska Bank managed to increase the level of gross placements to the individual clients by 6.6%, as well as to maintain a market share of 4.6% in 2016.

Retail deposits of Vojvodjanska Bank during 2016 increased by 5% compared to 2015, which maintained market share at approximately the same level as in the previous years – above 5%.

CorporateThe main objective in corporate operations during 2016 was to maintain long-term relationships with customers in addition to providing quality services and various products. Total gross corporate loans grew by ~ 2% in 2016. The market share of total loans granted to corporate entities slightly increased during the year to ~ 3.6%.

For more information on business results, see the Annual Business Report for 2016. https://www.voban.co.rs/sr/o-nama/izvestaji

Vojvodjanska Bank aims to contribute to social cohesion and progress and to support efforts to address local social and development problems. The Bank takes a significant place in Serbia as an employer, but also as a participant in the local scene. It is involved in the life of the local community, contributing to economic growth by employing the labour force and developing partnerships, thus providing financial stability and support to the economy and population.

2016 in ’000 RSD

1. TOTAL REVENUE 6,528,049

1.1. NET INCOME FROM INTEREST 4,871,147

1.2. NET INCOME FROM FEES AND COMMISSIONS 1,634,905

1.3. NET RESULT OF TRADING 21,997

2. TOTAL EXPENSES 6,012,596

2.1 OPERATING COSTS

The cost of office space 294,003

Operating expenses 1,393,762

IT costs 341,864

Marketing and communication costs 179,734

Costs of legal and advisory fees 134,439

Other operating costs 16,970


Operating costs In total:

2.2. Expenses related to employees

Costs of salaries and other benefits 2,842,683

Travel and training costs 87,131

Expenses related to employees in total:

2.3. Expenses related to the provision of capital

Dividends of shareholders

Interest on loans

Interest on all types of debts

Expenditures related to the provision of capital in total:

2.4. Expenditures related to liabilities to the State

Costs of all fees and taxes, state and local 370,820

Costs of penalties 29

Expenditures related to liabilities to the State in total:

2.5. Expenses related to community

Donations 23,564

Infrastructure investments in the community including the finances and value of donated goods, products and working hours (excluding investments that directly contribute to business)

Consultancy services for community projects

Other investment in the community

Expenses related to community in total:

2.6. Depreciation costs 327,597

3. RETAINED ECONOMIC VALUE (INVESTMENTS, STOCK, ETC. 1. – 2.) 515,453


1.2. Strategic Approach to Sustainable Business

Sustainable business in Vojvodjanska Bank is based on a long tradition of social responsibility and integrating the principles of sustainability with business objectives of the Bank.

Strategic goals set for the period 2017 – 2019:

• Commitment to creating a bank that is a bank of long-term choice of our clients

• Careful risk management is the pillar of our Bank's support

• Constant investment in IT infrastructure in order to improve business efficiency

• Achieving business with social responsibility and providing support to the local community, clients and socially vulnerable groups

• Proactive approach to include the best and innovative products and services in the offer of the Bank

• Preservation of high capitalization of the Bank with monitoring of internal indicators and indicators prescribed by the National Bank of Serbia

• Continue with digitalization of business operations, which is more and more represented in the banking market

• Continuous training and improvement of employees for the purpose of their personal and professional development within the Bank and improvement of business quality; Attracting and retaining talents

• Maintain high liquidity by focusing on its own sources of financing in the country, developing and promoting deposit products

• Increase efficiency and economy without affecting the quality of business and service delivery

• Informing employees through organized events and internal magazines about plans and current results.

Corporate Social Responsibility Policy

Establishing high standards of corporate social responsibility, Vojvodjanska Bank aims to preserve and promote universal human values as well as the social, intellectual and cultural values of the community in which it operates.

Vojvodjanska Bank has developed a corporate culture that reflects the Bank's desire to function responsibly in all sectors that contribute to sustainable growth, including the market, shareholders, employees, the community and the environment.

One of the core values and one of the leading principles of the National Bank of Greece through its history was to contribute to the progress and prosperity of every society, in every country in which NBG is present.

Vojvodjanska Bank defined the basic values in the manner defined by the NBG Group as well. In April 2016, the Corporate Social Responsibility Department was established in Vojvodjanska Bank as a strategic organizational unit. In accordance with this, the Board of Directors of Vojvodjanska Bank adopted the Corporate Social Responsibility Policy defining the basic values on which the corporate social responsibility is based:

• Respect for human rights – based on the United Nations Universal Declaration of Human Rights, human rights in Vojvodjanska Bank are guaranteed in all aspects of business, primarily in those relating to labour rights and employees. In addition, the Group and Vojvodjanska Bank fully support decisions that prohibit cooperation with countries, companies and individuals supporting violence and terrorism.

• Respect for environmental protection – The Group and Vojvodjanska Bank believe in the importance of environmental responsibility through the adoption and implementation of specific environmental policies that are implemented through different business policies and procedures of the Bank, and form an integral part of ethical corporate behaviour.

• Contributing to society – The Group and Vojvodjanska Bank strive to act in accordance with the values and policies of the EU, which in 2000 sent a special invitation to companies in terms of their social responsibility to promote the progress and contribution to the development of learning, work organization, equal opportunities, social inclusion and sustainable development.

• Contribution to art, culture and education – The Group and Vojvodjanska Bank are trying to improve and promote cultural values and support actions in the field of arts and education in every country where the Bank operates, as well as in Serbia. The Bank also operates through sponsorships and donations for the development of science, culture, art, sports, non-profit organizations, citizens' associations and the non-governmental sector.


• Independence in the implementation of CSR (Corporate Social Responsibility) activities – The Group and Vojvodjanska Bank conduct all CSR activities independently of clients, shareholders or any other stakeholders. The Bank does not provide either direct or indirect contributions or funding to political parties.

The policy is available to the Bank's Board of Directors as a guide for delegating authority and responsibility for the planning, implementation and control of the CSR framework. The Executive Board has primary responsibility for the implementation of the Bank's Corporate Social Responsibility Policy.

Fields of operation of the Bank's corporate social responsibility, which are reflected in the stated values, are:

• Responsibility to the market • Responsibility to employees• Responsibility to the community• Responsibility to the environment

Material Aspects and Key

Stakeholders

The Code of Ethics of Vojvodjanska Bank recognizes that its business success and reputation depend, inter alia, on the extent to which the Bank fulfils its role in society, understanding the nature and needs of different social groups and seeking to meet such needs within the permanent values by which it is governed. The key principle of the business philosophy of the Bank is that each of its activities should be oriented towards the ultimate basic goal – providing efficient customer service, which is not only contributed by the improvement of business processes, but also the satisfaction of shareholders, the development of a pleasant and motivating working environment for employees, and participation in development of local community.


STAKEHOLDER COMMUNICATION CHANNELS ISSUES OF IMPORTANCE

EMPLOYEES

• «Moja Bank» (My Bank) Internal magazine for employees of the Bank;

• Bank’s Intranet website;• Notifications via internal

communication channels;• Meetings between the Union and

the management of the Bank;• Complaints mechanisms.

• Employment and labour practices

• Relations between management and employees

• Safety and health at work• Training and education• Diversity and equal opportunities• Anti-discrimination• Complaints mechanisms related to

human rights

CLIENTS• Customer Satisfaction Surveys;• Contact Centre for Clients;• Internet site of the Bank.

• Economic performance• Anti-corruption• Labelling of products and services• Advertising and communication

practices• Data privacy

SHAREHOLDERS

• Presentation of financial data at quarter, semi-annual and annual level;

• Annual Business Report;• Annual Sustainable Business Report.

• Economic performance• Anti-corruption

GOVERNMENT INSTITUTIONS

• Reporting to competent bodies;

• Conferences regarding the banking sector.

• Economic performance• Anti-corruption• Labelling of products and services

LOCAL COMMUNITY

• Meetings with representatives of local self-governments and local associations;

• Cooperation with local government;• Taking into account the needs of

the local community based on received requests for sponsorships and donations.

• Energy consumption• Waste management• Investing in the development of

local communities

BUSINESS COMMUNITY

• Meetings;• Conferences;• Participation in the work of

business associations.

• Economic performance• Anti-corruption• Procurement practices

THE MEDIA• Direct contact;• Interviews;• Press releases.

• Economic performance• Anti-corruption• Advertising and communication

practices

Key stakeholders of Vojvodjanska Bank are:


Participation in Joint Initiatives

Vojvodjanska Bank is a proud member of various business organizations and associations, including Association of Serbian Banks, Chamber of Commerce of Serbia, Chamber of Commerce of Belgrade, Regional Chamber of Commerce of Novi Sad, Chamber of Commerce of Vojvodina, Council of Foreign Investors, Hellenic Business Association of Serbia, American Chamber of Economy, Association of Economists of Vojvodina, as well as the Responsible Business Forum and the United Nations Global Compact in Serbia. In addition, in March 2016, the Bank joined the Premium Club "Friends of the SAM" of the Serbian Association of Managers. Within these initiatives, the Bank actively promotes high ethical standards in business and seeks to contribute to the development of socially responsible practices by concrete engagement.

Responsible Business Forum

The Responsible Business Forum is a network of leading companies in Serbia that contribute to community development, encouraging the development of corporate social responsibility. The Forum develops practical and sustainable solutions in all four fields that form the pillars of corporate social responsibility: the local community, the environment, the work environment, and the market.

Vojvodjanska Bank has been a member of the Responsible Business Forum since 2014. President of the Executive Board of Vojvodjanska Bank, Mr. Marinos

Vathis is also the vice president of the Responsible Business Forum, confirming the Bank's commitment to responsible business practice. Since its incorporation into the Responsible Business Forum, the Bank has gladly responded and participated in all activities that the Forum organized. During 2016, the Bank's volunteers joined the big campaign "Naš Beograd" (Our Belgrade). On that occasion, the volunteers prepared meals intended for the children of the Day Care for Homeless Children and the Serbian Association for Promoting Inclusion.

In November 2016, the Bank, together with the Forum, organized a working breakfast with journalists when media representatives were presented with results of the

Mr Vathis joining the membership of the Responsible Business Forum


annual CSR questionnaire of the Responsible Business Forum, which was completed by 18 members, including Vojvodjanska Bank.

United Nations Global Compact in Serbia

The Global Compact is the framework under which member companies commit themselves to align their business with 10 principles in the field of human and labour rights protection, environmental protection, and the fight against corruption, as well as with 17 sustainable development goals. In April 2016, Vojvodjanska Bank became one of the members of the Task Force for Promoting the Sustainable Development Goals of the Global Compact in Serbia.

The Bank also participated in the development of the brochure "How our Organizations Achieve the Sustainable Development Goals", together with other members of the Global Compact in Serbia. The brochure presents how the Bank supports the project "Budi svoj" (Goal 4 - Quality Education) and voluntary education of

the Bank's employees for communication in the Serbian sign language (Goal 16 - Peace, Justice and Strong Institutions). The brochure was published electronically on the website of the Serbian Chamber of Commerce (http://www.pks.rs/SADRZAJ/Files/brosura%20GDUN.pdf).

1.3. Management

The Bank operates in an efficient corporate governance framework by establishing a unified system of authority, procedures and control, in accordance with the provisions of domestic regulations, as well as the best international practices, striving to protect the interests of all stakeholders in the corporate structure. The Bank's priority is to create value for shareholders in combination with the implementation of socially responsible practices, activities and initiatives.

Management Structure, Mandate and Composition

Management structure of the Bank consists of the Assembly, the Board of Directors and the Executive Board.

The Board of Directors of the Bank has 5 members, out of which 2 are independent members in accordance with the provisions of the Law on Banks. The term of office of a member of the Board of Directors is 3 years with the possibility of reappointment.

The Executive Board of the Bank has 5 members. All members of the Executive Board are employed by the Bank, in accordance with the Law on Banks. The term of office of a member of the Executive Board lasts 4 years with the possibility of reappointment. All members of the Board of Directors and the Executive Board of Vojvodjanska Bank are male.

All members of the Board of Directors and the Executive Board have been assessed by the National Bank of Serbia as persons having a good business reputation and appropriate qualifications. There are procedures for appointment or reappointment of the members of the Board of Directors and the Executive Board in compliance with the Law on Banks and the Decision of the National Bank of Serbia regulating this matter.

President of the Board of Directors of the Bank is a member of the Board of Directors and is authorized to sign decisions within the competence of the Board of Directors, while President of the Executive Board

Vojvodjanska Bank on the CSR Index

Serbia List

At the seventh international CSR Forum, Vojvodjanska Bank officially received the recognition that it is on the list of CSR Index Serbia and thus it is among the twenty companies that represent the leaders of corporate social responsibility in Serbia.

For the first time the results of the first national CSR Index Serbia were presented at the conference. The index represents an online platform for measuring CSR activities, which consists of 117 indicators, divided into 5 categories: corporate governance, working environment, market, local community, and the environment. In order for a company to be placed on the CSR Index Serbia list, it was necessary to respond positively to over 70% of the total number of indicators. The President of the Executive Board of Vojvodjanska Bank, Mr. Vathis, spoke at the award ceremony and the proclamation of the first national CSR Index List, underlining the importance of completing the index, because that way we get a true picture of what we have achieved in the previous year, as well as transparent deficiencies that need additional work.


Organizational Chart of the Bank


of the Bank is a member of the Executive Board and in accordance with the Law on Banks represents the Bank.

Details of the members of the Board of Directors and the Executive Board are publicly available on the Bank's website https://www.voban.co.rs/sr/o-nama/upravljanje

Sustainability Management

In order to systematize its management of corporate social responsibility issues, in 2014 Vojvodjanska Bank defined the framework of activities and operations of corporate social responsibility, introducing the position of the Corporate Social Responsibility Manager. This step clearly affirmed the Bank's commitment to continually improve corporate social responsibility, as an integral part of primary, banking activity.

Accordingly, in 2016 the Corporate Social Responsibility Department was established in Vojvodjanska Bank as a separate organizational unit.

In this way, the Bank will further focus on the important aspect of business, while still establishing high standards of corporate social responsibility, contributing to the progress and prosperity of the community in which it operates, and contributing to responsible functioning in all sectors that contribute to sustainable growth.

The mission of the department is reflected in the contribution to achieving the strategic goals of the Bank through defining and implementing the Corporate Social Responsibility Policy and program in relation to all segments of corporate social responsibility.

The Scope of Competence of this Department:

• Defining and developing a strategy and a corporate social responsibility policy

• Creating detailed plans and budget for corporate social responsibility

• Initiating and implementing activities aimed at having a positive impact on the environment and raising awareness of corporate social responsibility

• Internal and external reporting on corporate social responsibility

The activities of this department are aimed at recognizing Vojvodjanska Bank as a financial institution dedicated to its clients, its employees, its shareholders and the needs of the community in which it operates.

The Corporate Social Responsibility Department is directly responsible to the Executive Board, which is

involved, through the process of adoption, in the development and implementation of documents related to this field. All decisions regarding corporate social responsibility are adopted by the Executive Board, while certain strategic decisions are adopted also by the Board of Directors. The Corporate Social Responsibility Department Head answers directly to the Executive Board member, who, among other things, is also responsible for corporate social responsibility. During 2016, a number of decisions were adopted, approving many corporate social responsible activities and the adoption of the Corporate Social Responsibility Policy, which was adopted by the Executive and the Board of Directors of Vojvodjanska Bank, is among the most important. The Executive Board has primary responsibility for the implementation of this Policy.

Sustainability in the Context of Risk Management

With the support of the risk management bodies of the NBG Group, the Bank has established a comprehensive risk management system that is in line with the Group's


principles. In addition to the core business risks (such as credit, market, interest, foreign exchange, liquidity risk, country risk, operational risk), the Bank recognized the importance of considering socio-ecological risks in the investment process.

As a member of the EBRD Trade Promotion Program, the Bank has been recognized as one of the most important partners in the promotion of environmental and social issues in trade. Not only has the Bank, like other Banks that are partners in the Trade Facilitation Program (TFP), adopted strict environmental and social criteria for commercial transactions, but it has also actively promoted these standards among its clients. This means that more importers and exporters will be aware of environmental and social issues in trade, and will ensure that they finance the import and export of goods and products that have a positive ecological and social impact.

Based on an agreement with the EBRD, in 2016, the total value of approved working capital loans amounted to 10 million euros. Having in mind the total loan portfolio of the Corporate Banking Division the

share of loans for working capital, under the contract with the EBRD, amounts to 2.7%.

In addition, the Bank has integrated into the contracts with clients an item obliging the borrower to comply with applicable environmental permits, laws and regulations related to environmental protection. The environment, to the extent that it affects the health and well-being of people, refers to the following: flora and fauna, land, water, air, climate, natural environment, cultural heritage and built environment.

Also, during the course of its business operations, the borrower is obligated to comply with applicable laws on occupational safety, protection of cultural heritage, protection of children and protection from forced labour, which includes observance of international conventions that are legally binding in the country.

Trade Finance Forum

Mr. Spyridon Ntallas, Member of the Executive Board / Finance Division Director in Vojvodjanska Bank and Mr. Danijel Stojanović, Large Corporate and Public Finance Department Deputy Head, participated in the Trade Finance Forum held within the Trade Promotion Program in Frankfurt am Main, Germany, in September 2016, organized by the European Bank for Reconstruction and Development (EBRD).

Mr. Ntallas was a speaker at the panel dedicated to the development of trade finance in South East Europe. Other speakers were representatives of issuing banks from Bulgaria, Croatia, Macedonia, Romania, Germany and Austria. The European Bank for Reconstruction and Development Trade Promotion Program has been successfully running since 1999, with the aim of promoting foreign trade towards, by and among the countries in which the EBRD operates, offering a range of products that would facilitate this trade. Through this program, the EBRD provides guarantees to international affirmative banks, taking political and commercial risk that the transaction related to international trade will not be settled by banks in EBRD countries.

As in previous years, through panel discussions with leading commercial banks and decision-makers in key industries, the purpose of this Forum was to discuss the latest economic and development related to trade finance, as well as related challenges in financing trade in the above mentioned EBRD countries and beyond, and topics were related to sustainable trade financing, customer introduction and business compliance control, technical support and institutional strengthening.


High Level of Corporate Governance and Compliance

The Bank makes investment choices based on carefully made business decisions, which are adopted with the necessary flexibility and financial integrity, in order to achieve the best possible results and thus protect the interests of all stakeholders. The Bank adopts practices that provide a high level of corporate governance, structure and policy, which generate strong standards of professional behaviour and business ethics, and enable unhindered business operations and strengthen trust in the Bank.

By establishing an efficient corporate governance envi-ronment, Vojvodjanska Bank:

• Adopts corporate governance acts, available on the Bank's website, which regulate the structure and policies of corporate governance in detail, improve the continuity, consistency and efficiency in the business model of the Bank’s Board of Directors and generally the Bank's management

• Contributes to the development of adequate infrastructure that will ensure the implementation of the principles of corporate governance, including: governance bodies with clearly defined roles, authorizations and responsibilities, internal control systems and bidirectional communication inside and outside the Bank's organization

• Acts in line with the guidelines of European, international and national regulatory bodies, introducing adequate procedures for the effective functioning of the internal control system and their staff updated on relevant information

• Complies with and applies applicable regulations, both nationally and internationally, adhering to the requirements of the NBG Group

• Applies an effective internal control system

The Bank's internal control system consists of a set of adequate and efficient control mechanisms and acts that serve to ensure compliance with internal procedures and all obligations arising from the relevant regulatory framework as well as consistent implementation of business policy.

Continuous work, supervision and evaluation by the internal control system are based on the work of three key divisions, in particular, the Internal Audit Division, Risk Management Division and Compliance Division. The role of the internal control system is vital and consists of a set of control mechanisms and procedures that manage continuously all activities in the Bank.

Successful and efficient operation of the internal control system provides:

• Consistent implementation of the business strategy• Identification and management of all types of risk

assumed in the context of the Bank's activities• Completeness and reliability of financial and business

information• Compliance with the legal and regulatory framework,

internal rules, acts, approved policies and procedures• Prevention of improper actions and detection of

irregularities• Development of a system of control mechanisms

that is adapted to the purpose and complexity of their functioning, as well as the synergy of the relevant organizational management units

• Assessment of the adequacy and efficiency of the system by an external auditor

• Detailed regulation of system functioning by way of procedures and adhering to them by all the organizational units

The Bank has adopted a set of policies and procedures that regulate in detail the issues of high importance for the Bank, among which are:

• Code of Ethics• Code of Ethics for Financial Professionals • Anti-Corruption PolicyCode of Ethics• Policies that regulate issues related to the prevention

of conflict of interest• Whistleblowing Policy• Anti-Fraud Policy• Other.

Since all internal acts that encompass values, ethical principles and norms, and similarly refer to the Compliance Division for assistance, support and clarification, the advisory role of the Compliance Division is the basic advisory mechanism.

The Bank has established effective internal mechanisms for reporting all potentially suspicious, unethical and illegal actions by employees, as well as third parties who are in business relationship with the Bank by providing the possibility of filing applications to the protected address, the possibility of sending anonymous applications, etc. Appointed persons are authorized to receive applications (Compliance Division Director and one officer from the division in case of absence of the Director) and also a detailed procedure for conducting any internal investigations has been drafted, in accordance with the applicable regulations. Regarding the appeal procedure, the internal mechanism is the ability to report all suspicious, unethical, unlawful acts to the applicant, and it is also possible to file a complaint through the external mechanism to the competent state authorities.


of the Bank should be customer-oriented, while at the same time we strongly believe that the satisfaction of shareholders and the improvement of a pleasant working environment contribute to the efficient provision of services to clients. Generally speaking, in the context of corporate social responsibility, the Bank acts in accordance with the following ethical values and principles:

• Integrity and honesty• Respecting clients and being honest with them• Trust in employees• Transparency in relations with third parties• The satisfaction of shareholders• Contribution to society and respect for the environment

As stated in the Code, in case of any concerns about its content, employees can contact their supervisors or the Compliance Division. The Bank also encourages its employees to report irregularities and potential violations of the Code without the risk of consequences that may arise as a result of such an application. Employees have the right to express their concerns and report behaviour contrary to the Code to their superiors. All division directors are obliged to monitor the proper application and to provide guidelines for handling violations of the Code.

The Bank reviews all applications and if necessary implements procedures and measures, all in accordance with applicable regulations and internal acts. In addition, the Bank guarantees the protection of the identity of an employee who reported with good intent the possible violation of the Code. The violation of the Code is also considered from the aspect of violation of the regulations on labour and can lead to disciplinary sanctions in accordance with the valid internal acts of the Bank.

In 2016, the Bank also adopted the Code of Ethics for Financial Professionals that establishes the key ethical requirements and standards of conduct applicable to employees and managers of the Bank involved in the preparation, compilation and filling out of the financial reports and other financial data of the Bank. It was adopted with the aim of promoting honest and ethically correct behaviour, including the prevention of situations where there is a real or potential conflict of interest, as well as transparency, honesty, integrity and moral behaviour in the performance of duties by professionals in financial operations.

Anti-Corruption Policy

This document was developed on the basis of the NBG Group Anti-Corruption Policy, in accordance with the

Code of Ethics

Over the years, Vojvodjanska Bank has demonstrated its commitment to a business principle which aims to ensure compliance with the highest legal and ethical standards. This approach is not only aimed at constant compliance with the law, but rather reflecting the moral principles adopted by the Bank, as well as the culture and values in the Bank's operations in general.

An umbrella document defining basic principles and values is the Code of Ethics, while the Whistleblowing Policy refers to all adopted policies and procedures.

The Code of Ethics adopted in 2007 sets out moral principles and values, as well as the framework of rules governing the employees and management of the Bank. It also provides the necessary guidance for decision-making in accordance with corporate governance rules, as well as the legal and regulatory framework. In 2016, a new, improved Code of Ethics was adopted, with the aim of harmonizing with the new Code of Ethics of the NBG Group.

Although the provisions of the Code do not derive from legal regulations, the Bank strives to apply the principles properly in all aspects of its business activities, so that established business procedures and practices improve the Code and represent a model of professional and business ethics.

The Code applies to all members of the Board, to all managers and to all employees of the Bank, regardless of the type of their employment, as well as to all third parties cooperating with the Bank, either in the context of providing services or doing business (including associates, mediators, agents, and any other persons with whom the Bank cooperates in terms of outsourcing operations or other types of contracts).

The success of the Bank's business activities stems from the fact that it operates on the basis of the principles and values that each employee accepts and approves. The key principle of our philosophy is that every activity


current anti-corruption regulations (Serbia adopted the following conventions: United Nations Convention on Corruption, Criminal Law Convention on Corruption, Civil Convention on Corruption), as well as in accordance with best practices and guidelines of international organizations and forces that are fighting financial crime (Organization for European Cooperation and Development, FATF, Wolfsberg Group, etc.).

This Policy was adopted in 2015, in order to further confirm the commitment to ethical and financial integrity and accountability, and recognize the effect that any involvement in corruption would have on the image and reputation of the Bank. The policy aims to establish clear principles and rules for the prevention and fight against corruption, develop actions and procedures that reflect the Bank's position on zero tolerance towards any kind of corruption, as well as raise awareness among the employees of the Bank in order to be able to observe and thus avoid corruption-related actions. The Compliance Division has overall responsibility for coordinating and monitoring the Bank's anti-corruption activities and ensuring that employees have the ability to use adequate instruments to send confidential reports (whistleblowing) in case of incidents that they notice in the area of corruption.

The Bank ensures that the Policy and all accompanying procedures are forwarded to all employees, including management bodies, as well as to conduct training, which will be adequate to the identifiable risks associated with individual positions. Instructions and internal acts are sent by e-mail and published on the Bank's website. During 2016, there were no cases of corruption. In the same period, there were no legal procedures in which the company was listed as a participant, due to behaviour contrary to free market competition and practice of monopoly. Also, in 2016 there were no significant fines and non-monetary sanctions due to non-compliance with laws and regulations.

A detailed assessment of corruption risks is also being made, at least once a year, and the process of elaboration is described in the Anti-Corruption Policy.

It was further emphasized that the Bank does not deal with political or party issues. It does not offer gifts and donations to political parties nor contributions and other benefits to candidates for public office or political parties and other political organizations.

Members of the Board of Directors and the Executive Board and generally Bank employees are prohibited from giving any direct or indirect contributions to political parties, organizations or individuals who are politically engaged as a way to gain any kind of business benefit.

Policies on the Prevention of Conflict of Interest

The Bank has developed and adopted policies to prevent conflicts of interest, which regulate in detail the treatment in case of occurrence and the actual or potential risk of conflict of interest between the Group, the Bank and its managers / employees, and the management of those risks, etc.

Whistleblowing Policy

Whistleblowing Policy sets out the basic principles for reporting serious irregularities that were noted within the Bank's to the Compliance Division, rounding the framework of principles and moral and ethical behaviour of the Bank, as provided for by the individual relevant provisions of labour regulations and labour contracts, relevant regulations in the area of banking operations, the Code of Ethics of the Bank, as well as the Bank's current policies (e.g. on prevention of conflict of interest for senior management, prevention of corruption, etc.).

Recognizing the importance of clear and timely internal reporting processes and the protection of those who are reporting (whistle-blowers), the Bank adopted this Policy in 2015 to provide guidance to its employees, as well as to express guarantees for full security and protection that it provides to whistle-blowers as part of its overall responsibility towards employees and clients.

The Whistleblowing Policy establishes the process of reporting incidents relating to all irregularities in business operations and treatment of responsible persons, including financial fraud, corruption, conflict of interest, etc. Since the adoption of the Policy, no applications have been received.

The Compliance Division is responsible for receiving and acting upon all internal applications, as well as external applications related to discrimination and human rights, which third parties may, through state bodies and institutions, submit in connection with the Bank's products and services. One such complaint was filed at the end of 2015 by the Centre for Protection and Assistance to Asylum seekers and it referred to requesting excessive documentation on behalf of the Bank to asylum seekers for collecting funds received through MoneyGram services. Although the Bank fully complied with the provisions of the current regulations in the field of prevention of money laundering and terrorist financing, the Bank has taken all measures recommended by the Commissioner for the Protection of Equality, and the case has been closed, without any sanctions against the Bank.


RESPONSIBILITY TO THE MARKET


2.1. Client Satisfaction

An honest and transparent relationship with clients, along with understanding and recognizing their needs, is the foundation of responsible and long-term sustainable business. Therefore, Vojvodjanska Bank seeks to adequately respond to the challenges coming from the market by continuously improving its products and services, ensuring that the interests of all its clients are equally protected. In relation to clients, the Bank fosters equality, thus preventing any kind of discrimination. The Bank respects the uniqueness and opinion of each individual client and endeavours to provide quick and adequate solutions to each individual complaint.

This is also evidenced by the fact that the key principle of the Bank's business philosophy, contained in the Code of Ethics, is that each of its activities should be customer-oriented, with the conviction that the satisfaction of shareholders and the creation of a pleasant working environment contribute to the efficient provision of services to clients.

For Vojvodjanska Bank, the development and delivery of high quality products and services to clients is a priority in business philosophy and everyday practice. Achieving competitiveness, in line with market conditions, aims primarily at customer satisfaction and building relationships with clients based on trust and cooperation. Respecting clients and promoting their interests are the main goals of every business activity of the Bank. The Bank is keeping up with technological developments and uses innovations in promoting its products and services while at the same time investing efforts to contribute to the financial inclusion of certain vulnerable social groups as a responsible financial institution. The Bank realizes a number of initiatives in this area in the following segments:

• Client satisfaction• Financial inclusion

RESPONSIBILITY TO THE MARKET

In the context of responsibility towards clients, the Bank:

• Respects all requirements arising from positive regulations, through the application of relevant codes, without exception

• Has the main goal to promote client interest

• Inform clients in a clear, responsible, and patient manner in relation to the services offered by the Bank and suggest steps that in concrete cases contribute to the best execution of their transactions

• Strives to ensure the completeness and accuracy of data / information provided to clients, other organizational units, members of the NBG Group, regulatory, independent and other bodies

• Shows special attention when serving persons with special needs or persons requiring a special type of access.

Ethics in Marketing Communications

In the context of open and transparent communication with clients, the Code of Ethics of the Bank guarantees that the Bank will ensure that its advertising is in accordance with relevant regulations, decent in terms of prevailing moral norms, true, clear and without exaggeration. The main purpose of the Bank's advertising campaigns is to provide objective information regarding its products and services. Accordingly, the advertising material should be correct; it should not generate the wrong impressions of particularly favourable conditions and advantages and should be expressed in an understandable language. In order to fully meet the high standards in this area, in 2016, in accordance with the recommendations of the National Bank of Serbia, the Bank made corrective measures related to the advertising of the VISA Olympic Credit Card and informed the National Bank of Serbia about it.


At all levels of business, the Bank provides its clients with accurate, complete and up-to-date information regarding its products, expected benefits, and possible risks, taking into account the specific needs of each client.

When it comes to providing clear and adequate information about products and services, each employee of the Bank informs the client of the essential elements of the contract (deadline, amount, nominal interest, effective interest, and fee) depending on the product for which the client is interested. In addition to the basic information about each product, the Bank's employees inform the users of all the benefits that they may have by using a particular product or benefits that they can achieve for someone else. In the course of 2016, no cases of non-compliance with the Bank's regulations and voluntary codes were reported in connection with the provision of information on products and services.

Development of Digital Banking Services and Customer Loyalty

One of the main strategic goals of Vojvodjanska Bank is the improvement of services and user experience when it comes to services provided through digital channels. It means getting closer to younger clients who are

also the most frequent users of this type of service and creating conditions that will enable them to see the Bank as their partner who will meet their needs in an efficient way, provide them with a user experience adapted to the digital environment and ultimately gain their trust and loyalty.

The Bank intends to achieve these goals through deep market research and the collection of useful information about the preferences of younger clients, their further processing and use when creating digital services and communication with this segment of users.


One of the first steps in this plan was to investigate the needs of younger clients and to determine the degree of loyalty that they carried out during 2016. The research was carried out by qualitative method of the focus group, and covered topics of young people's buying habits, their perceptions of banks, and what kind of bank should be tailor made to the needs of this population. The results showed that young people prefer online shopping, and most often spend money on clothes, jewellery, food, outings and weekends. They conceive the Bank as a safe place, with employees who are very cooperative and advisable and meet each request / issue, without lines in branches, superfluous administration and with low commissions. In addition, according to their needs, the bank needs a wide network of ATMs, a good web site and the necessary mobile applications.

In addition to the targeted qualitative research of the youth segment, the Bank monitors the results of the report "Financial omnibus" for banks every two months, which measures the following parameters:

• Recognition of the image of the bank (directly and with reminder) – Vojvodjanska Bank is in the top 5 banks according to this parameter

• Selection of the main bank – Vojvodjanska Bank was in the top 5 as the main bank

• The best bank in Serbia – the results of the selection of the main bank and the rating of the best banks coincide, which places Vojvodjanska Bank in the top 5 banks

• Use of banking products – Vojvodjanska Bank is the 5th in terms of a bank whose services / product re-spondents use

• Satisfaction with the main bank – Vojvodjanska Bank is highly rated, with an average grade above 4, on a scale of 1 to 5, where 1 is the lowest and 5 is the highest grade

• The product / service that customers currently mostly use and are planning to use in the next 12 months – the result shows that current account, debit card and overdraft are most often used.

When it comes to digital platforms, the bank's clients have an e-banking platform called i-bank with the help of which basic banking services can be performed. Also, there is a mobile application m-bank for phones with Android and iOS operating systems, while the Bank's website offers online scheduling of meetings in the branch. Brokerage companies have at their disposal services of Custodian e-office, which is an electronic "office" for the management of deposits and other financial instruments.

Vojvodjanska Bank has developed a mobile application intended for young people, users of pre-paid card called Y m-bank. This free application gives customers a number of benefits, such as the ability to track changes to the pre-paid card account and enjoy shopping through always-available discount information, partner locations with current discounts and ATM locations.

Protection of Data Privacy

The Bank undertakes all measures to ensure the confidentiality of all information that is not public, in connection with the Bank and its clients, while its employees comply with all applicable regulations regarding banking secrecy, personal data protection, and in general all confidentiality rules in the domain of banking. Additionally, reasonable steps are taken to prevent unauthorized disclosure of information to any third party, unless it is necessary in accordance with the law or the requirement of a regulatory authority or institution, when a prior approval of the Compliance Division is required.

Particular importance is given to the obligation to protect the personal data of its employees, clients and shareholders, and to comply with regulations governing the protection of natural persons from the processing of personal data. Particular importance is attached to the obligation to protect the personal data of its employees, clients and shareholders, and to harmonize with the regulations governing the protection of natural persons from the processing of personal data. In this context, the Personal Data Protection Policy was adopted in accordance with which the Bank collects and processes specific information concerning employees, shareholders and clients, who are in some kind of business relationship with the Bank, natural persons that cooperate with it and third parties that are in some other type of relationship with the Bank.

In particular, the mentioned data are:

• Collected in an ethical and lawful manner

• Collected for specific, transparent and legal purposes

• Kept safe, during the time period needed to fulfil the purpose for which they are collected and processed.

During 2016, there were no customer complaints, while the Commissioner for Information of Public Importance and Personal Data Protection requested the Bank's statement on the matter of one case of alleged excessive processing of personal data. The Bank informed the Commissioner in a timely manner that it acted in compliance with the regulations, and that any


other case was the result of an individual error. There were no additional comments or requests from the Commissioner, so the case is considered closed.

Managing Customer Complaints

As part of the effort to effectively manage issues related to client complaints, to improve the products and services it offers and to achieve a more out-of-court solution

Vojvodjanska Bank Is the Winner of the Prestigious Data Integrity MasterCard Award

Vojvodjanska Bank is the winner of the regional Data Integrity Award for 2016. This prestigious MasterCard award is given for the third year in a row to partners who excel in accuracy and data security of all transactions.

The Data Integrity Award ranked Vojvodjanska Bank in five percent of European banks that most precisely, most efficiently and expeditiously apply the high standards of the MasterCard payment system.

"Strengthening our data processing capacity and continuous and direct connection with MasterCard have contributed to Vojvodjanska Bank further improving its operations and transparency. This prestigious award, to which we are all proud, is the result of our great enthusiasm and effort", said Xenofon Damaskos, a member of the Vojvodjanska Bank’s Executive Board.

Data Integrity program was introduced by MasterCard in 2013 with the aim to recognize and reward partners, i.e. banks with the highest results of clearing and compliance with Company standards. In addition to having to apply, participants of the Data Integrity program must also achieve a certain number of monthly transactions, which MasterCard defines in advance.

Employees of the Bank perform the song „When someone hope to something good“ in the Serbian sign language


Bank's products or services is immediately investigated and answered in the spirit of trust and with the aim of timely resolution of the problems between clients or other persons and the Bank, as well as in accordance with the strict regulations governing this area, prescribed by the regulator – the National Bank of Serbia.

In this context, all employees of the Bank are obliged to deal with client complaints equally and without discrimination, as well as to provide guidelines to clients on how to file a complaint to the relevant organizational units, in case there is a need. Handling of various types of requests and complaints by customers is under competence of Customer Care Department, while written complaints filed by clients, being a specific institute defined and regulated by applicable law and regulations of the National Bank of Serbia, are handled exclusively by the legal team from the Compliance Division. This team is also responsible for

Access to Branches for Wheelchair Users

Following the plans and standards of the NBG Group, in 2014, the Bank started adjusting its branches to wheelchair users. Access was enabled in 62 out of 106 branches of the Bank, which is 58.49% of the total number. In the following period, it will be possible for each town in which there is a Bank to have at least one branch that is adapted for the unhindered access to wheelchair users.

in all disputed relationships, the Bank has adopted the Customer Complaints Policy. Any oral or written complaint, suggestion or commentary relating to the


mediation procedures – peaceful resolution of disputed relationships with clients, also regulated by the said regulations.

2.2. Financial Inclusion

Facilitating access to financial products and services to all members of the community is an irreplaceable segment of responsible business of Vojvodjanska Bank. The Bank strives to include, with unique initiatives, various categories of population that have specific needs such as young people, senior citizens, people with disabilities, as well as deaf and hearing impaired individuals in financial flows.

At the end of 2014, Vojvodjanska Bank initiated a unique project Voluntary Education of Employees for Communication in Serbian Sign Language, which aimed at enabling deaf and hearing impaired persons to perform basic banking activities without engaging interpreters for sign language, contributing significantly to improving the quality of their lives. Over a hundred employees from 13 cities across Serbia passed through a specially designed training for using sign language for bank employees.

For employees who joined this training voluntarily and with enthusiasm, weekend workshops were organized with the aim of renewing the acquired knowledge, but also exchanging valuable experiences gained in the meantime, in direct communication with deaf and hearing impaired people. Thanks to this initiative, the Bank was recognized as the first financial institution in the country that offered its clients this kind of service, which we are particularly proud of. A total of 15 branches of the Bank in 13 cities are adapted to this type of communication and are transparently marked with stickers, representing 14.15% of the total number of branches.

Inclusive Products

Having in mind that Vojvodjanska Bank is the official bank of the Olympic Committee of Serbia, in accordance with its intention to actively promote universal values, professional sport and healthy life, the activities of Vojvodjanska Bank in 2016 were focused on promoting the XXXI Olympic Games. In that regard, the Bank was given an exclusive opportunity to redeem a special donor card, VISA Olympic Credit Card, together with the Olympic Committee of Serbia.

In addition to numerous financial benefits such as drop-down interest rate and considerably more favourable refinancing of credit card liabilities from other banks, this card gives the supporters and members of the Olympic Committee, as well as all other citizens, the opportunity to express their support for the sport and our Olympic team. By using this payment card, the user directly helps our Olympic team. Each payment made by this card provides financial support to our athletes. The Bank allocates the donated funds from its profits, so that the use of the card does not represent an additional cost for the card user. Since the introduction of the card in 2011, over 10,000 clients of the Bank have performed one or more transactions, thus supporting the Olympic Committee of Serbia with an amount of about 340,000 dinars in 2016.

In addition, for our oldest fellow citizens who open an account through which they will receive a pension in Vojvodjanska Bank, a special Package for Pensioners has been prepared, which, in addition to responding to all their needs for doing business with the Bank, takes care of their health by offering them free health insurance. During 2016, the Bank also took part in the Third Age Fair, where it presented products intended for a better life in the third age, and pensioners who decided to apply for a cash loan during the fair were offered the possibility of granting loans without the cost of processing the request.

The Bank's offer also included a Housing Loan with a Currency Clause, i.e. with a favourable interest rate which includes expert support to the client in collecting and checking the loan documentation through the Bank's customer service (legal support, appraisal service, network of lawyers), as well as the "one-stop-shop" service system, since most of the necessary actions are carried out within the Bank with minimal engagement of the client. In this way, the duration of the procedure is drastically shortened, while by checking the correctness of the submitted documentation, the client is assisted in making the purchase of real estate without any risks and bad consequences for him / her.

In order to familiarize clients in more detail with all the important aspects of taking home loan and buying an apartment in general, the Bank has made a Guide to Housing Loans. It is a brochure containing information on steps in the procedure for obtaining housing loans and its variants, the answers to the concerns that clients interested in this product most often have, but also advice on which elements of the installation and characteristics of the housing unit should be especially addressed, and which type of documentation should be obtained and checked when buying apartments under construction.


Vojvodjanska Bank is proud of the fact that for many years now it has been a stable partner for its suppliers by fostering long-term relationships based on mutual understanding and trust, all in line with its Procurement Policy and the procedures that govern this segment of business. Over 80% of the procurement budget is directed to domestic suppliers, which indirectly contributes to better quality of life in the local environment. Long-standing cooperation with social enterprises in the supply chain is the expression of a unique corporate culture and that which makes the Bank recognizable.

As part of this corporate culture, the Bank respects the rights and ensures the equal treatment of all who cooperate with it. The decision to select a particular associate is based on strict, but fair criteria, respecting the relevant regulatory requirements. Business relations are based on criteria such as reliability, integrity, honesty, impartiality, high quality products and services, price policy, stability and attention in business management. In line with the high standards of the NBG Group, the Bank has adopted Procurement Policy, as well as a series of accompanying procedures regulating relationship with suppliers – all steps of procurement, from identifying the need for a particular product or service, choosing a supplier, to making a decision on the procurement and implementation of the process.

The Bank is aware that its financial performance and reputation may be influenced by the practices of its associates and in accordance with that it requires that they respect its principles and values, as defined in the Code of Ethics.

According to the Procurement Policy, all involved in procurement activities must be familiarized with and comply with the Code of Ethics, applying it in the following activities:

• Managers and employees involved in the process of selecting suppliers must be aware that their position carries a certain risk of bribery and corruption (a reason for preferential treatment)

• In order to protect the Bank's reputation and reliability, as well as the integrity of employees involved in the procurement, any unethical / inappropriate act or action must be reported and sanctioned

• Every attempt by the supplier to gain the advantage by an unethical way of acting through bribes and corruption must be prevented and sanctioned in a timely manner

• Cases of bribery or other forms of corruption must be reported and treated as fraud

• If there is a conflict of interest with a member of the Bank team involved in the procurement process (e.g. that he / she is related to a supplier or a potential supplier), he / she must withdraw from participation in the decision-making process

• In accordance with the principle of confidentiality and goodwill, information collected by employees participating in the procurement during the performance of their duties shall be deemed confidential and will not be used for personal purposes. The data collected and affecting decision-making must be accurate and not misleading in nature.

Responsible towards Suppliers


RESPONSIBILITY TO THE EMPLOYEES


Recognizing that the Bank's strength lies in its human resources, one of the main priorities of Vojvodjanska Bank is to develop and maintain high standards in relation to its employees. In the whole spectrum of the Bank's activities, it is evident that we can achieve better results by working as a team, rather than individually. Without limiting the independence of employees and defining roles and responsibilities, the Bank fosters a team spirit in business and strives to share views and knowledge, and to use different perspectives, in order to achieve common goals.

The Bank's activities in the area of responsibility to employees are focused on the following aspects:

• Equal opportunities• Development and specialization• Safe working environment

In that sense, the Bank applies the evaluation of employees’ work, promotions and salary system based on merit, provides good and safe working conditions and equal rights and opportunities for all, respecting the balance of business / private life of its employees, believes in the constant improvement of employees' skills and provides programs for training and personal development and leave of absence for education purposes in order to enable further specialization in different fields of expertise.

At the end of 2016, the Bank employed 1,468 people, 71.66% of women and 28.34% of men. All employees are engaged in full-time work.

RESPONSIBILITY TO THE EMPLOYEES

2016

Total number of employees 1,468

Total number of permanent third parties *

27

Total number of persons engaged in work **

1,495

* Permanent third parties perform a regular on-site job for or on behalf of the Bank but are employed by another employer **The total number of employed persons includes permanent employees and permanent third parties

Total number of employees engaged

2016

men women

Belgrade 129 299

Novi Sad 117 261

Other 178 511

Total 424 1.071

Total number of employees

2016

men women

Belgrade 126 297

Novi Sad 115 253

Other 175 502

Total 416 1.052

Age structure of employees

2016

Below 30

years of age

Between 30 and

50 years

Over 50 years

4,42% 57,22% 38,36%


Permanent employees Fixed-term employees

men women men women

403 1.030 13 22

Total number of permanent employees 1.433

Total number of fixed-term employees 35

Fluctuation of employees 2016

Newly employed M W

25 40

Total number of newly employed 65

Left the Bank 67 109

<30 6 7

30 - 50 35 53

>50 26 49

Total number of employees that left the Bank 176

Fluctuation rate 11,99%


3.1. Equal Opportunities

Starting from the Universal Declaration of Human Rights of the United Nations, human rights are guaranteed to every human being on the basis of their existence as a human being and they are inalienable. The values of respecting human rights in the Bank are primarily recognized in the employment policy, labour relations, collective agreement and cooperation with trade unions, the information system, ensuring equal working conditions, safe working and living conditions, preserving the health of employees, rewarding policies and the like. The philosophy of the Bank is based on respecting the personality of employees, where the protection of human dignity is of fundamental importance, and the Bank is constantly working to improve the harmonious working environment and ensure equal treatment for all employees.

• Does not allow any form of social rejection;• Provides a comfortable and safe working

environment, and respects the balance between work and private life, ensuring that equal opportunities are offered to all employees;

• Provides equal conditions for promotion and professional development, irrespective of gender, age, religion, nationality, etc.

• Does not use forced labour in any way;• It does not allow any forms of offensive

behaviour directed against one's personality (for example, moral, sexual or other types of insults, intimidation, persecution, etc.), or unequal treatment due to differences on national, racial, gender, religious grounds, due to marital status, political views or physical defects and other differences.

New Year's Performances for the Little Ones

For Christmas holidays and New Year the Bank and the Union organized New Year performances for youngest members of the big Voban family. Two performances were held in Belgrade and one each in Novi Sad, Kragujevac and Subotica and were attended by more than one hundred youngsters. The children were able to enjoy the shows and to feel the magic that the New Year brings us. After the shows, at their delight, the kids were given a chance to be photographed with everyone’s favourite festive character – Santa Claus.

All employees of the Bank are covered by the Collective Agreement. According to that Agreement, the employer is in obligation to inform the Committee of the Representative Union about: business performance of employer, development plans and their impact on economic and social position of employees, the movement and changes in salaries and their share in

operating expenses, as well as about the structure of accrued expenses, information on average earnings, structure of earnings and changes in the structure of earnings; the number of newly recruited employees and their appointment to jobs within specific organizational units, number of hours of overtime work, monthly reports on safety and protection of life and health at work and employee injuries, measures for improving working conditions, profit distribution, status changes, preparations for determining the surplus of employees and the adoption of the program, proposal to change the employer's Articles of Association and the establishment of new subsidiary entities. Information is submitted as needed at the request of union representative, within 15 days from request submission and at the minimum of once in six months and upon annual financial statement. All employees of the Bank have life insurance,

a physical examination which includes an ophthalmologist examination, a right to severance pay in the event of contract termination due to redundancies and support in retraining and finding a new job in cooperation with the National Employment Service, the right to severance pay on retirement, a compensation based on disability or incapacity for work and the right to maternity leave.

In the context of equal opportunities for all

employees, the Bank:


The right to maternity leave 2016

Total number of employees that have used the right to maternity leave 74

The rate of return to work following the end of maternity leave 100%

Rate of retention at work 12 months after returning to work 100%

3.2. Development and Specialization

The key to providing high-quality services to clients is the professionalism of employees. In order to ensure continuous improvement of the quality of service provision, the Bank provides adequate employee training and the existence of appropriate technical infrastructure. The Bank constantly strives to provide the best possible working conditions for its employees and to appreciate their suggestions, ideas and contribution to the achievement of goals. In 2016, an individual rating of performance was made for 75.40% of employees.

• Develops a meritocratic system for assessing results, improvements and benefits;

• Believes in continuous improvement of skills of its employees and conducts important trainings and training programs aimed at professional development of employees. In this context, the Bank bears the costs, enabling participation of employees in training at home and abroad;

• Designs and implements development and motivation systems in order to engage, select and further improve human resources;

• Invests in staff training by using modern methods, and in their development through planning of training to suit each individual job position in order to utilize their full potential and to adapt them in a timely and easy manner to the growing demands for knowledge, skills and expertise in a business environment that is constantly changing;

Mechanisms for sending and resolving complaints of employees who consider their rights at risk are regulated by the Procedure for Handling Complaints / Procedure for Internal Whistleblowing, as well as the Rulebook on the Procedure for Protection from Harassment at Work. In the course of 2016, there were no complaints related to violation of labour rights or discrimination through the said mechanisms.

In the context of the development and specialization of employees,

the Bank:

The first generation of VB Academy attendees


With the aim of investing in the development of employees, the VB Academy program was created, the implementation of which began at the end of 2016. The Academy is a program for talented employees of the Bank, i.e. for employees with rare and unusual combination of skills, experience and approach to work, employees with excellent knowledge of the matter and working methods that are difficult to find in the external market and which are examples that should be followed in terms of organization value, as well as employees with high level of credibility among their colleagues and other stakeholders. The result of all activities within the VB Academy should be to increase the potential of the participants, an excellent performance that has a significant impact on the business results, as well as taking on additional responsibilities for leading new projects and tasks. Participants of the VB Academy will attend series of trainings, both internal and external, related to the strategy, basic business activities of the Bank, business partners and skills, combining different techniques and learning methods.

Resources Division Director Natalija Marko familiarized colleagues in more detail with the project "VB Academy". Previous Network Retail Products and Segments Division Director – Maria Constantinou, introduced colleagues with the steps taken so far in relation to proposals sent by colleagues from branches at regional meetings held in Belgrade, Novi Sad, Kragujevac, Niš and Zlatibor during the summer of 2016.

From March 1 to the end of June, the Bank held an internal competition "Štafetna trka" for employees in sales. The colleagues competed in the sale of housing and cash loans, and the most successful ones have won valuable cash prizes.

Second Diploma in Cooperation with the

NBG Group

Our colleague Nebojša Mikavica, a member of the Credit Risk Management Division, is another employee of Vojvodjanska Bank who successfully completed the MBA studies organized in cooperation with the NBG Group. Nebojša has enrolled MBA studies at the International Hellenic University (IHU) in Thessaloniki in January 2014. During the two-year studies, Nebojša has passed 16 exams, with his final master's thesis on "Corporate Governance in Serbia".

2016 Managers Non-managers

Total hours of training by categories of employees 4.142 8.241

Average number of training hours per employee 12,04 7,33

Internal Event „We are the team“ for all the employees, which was

organized in Belgrade Arena

In 2016, a total of 12,383 hours of training was held for employees of the Bank.

For the first time since the merger of the National Bank of Greece and Vojvodjanska Bank, which was realized ten years ago, in December 2016 all employees gathered in one place, in a unique team building event "We Are a Team" organized at the KomBank Arena. The event brought together 1,460 employees, from all five regions. A useful program provided important information about the plans and the results so far, but at the same time it was packed with fun and interactive content. Member of the Executive Board / Finance Division Director Mr. Spyridon Ntallas presented to colleagues the financial results achieved in the previous period, while the Human


Vojvodjanska Bank participated in the program implemented by the American Chamber of Commerce – Young Leaders of Change of AmChamps. It is a unique, practical educational program that is implemented with the aim of strengthening the leadership potential of young managers by providing them with the opportunity to improve their skills, develop their mentoring and organizational skills and increase the number and volume of their business contacts, as well as providing opportunities for final year students to acquire practical knowledge and skills necessary for doing business in the modern world. The AmChamps program unites a total of 46 participants – 23 students and 23 young managers, and includes work on various projects, and participation in workshops. The Bank was represented by Aleksandra Simić, the Third Party Sales Channels Department Head within the Network Division, together with her team player – student of the Faculty of Architecture, Goran Tomić. Vojvodjanska Bank team won this competition, thereby enabling our competitors MBA studies at the prestigious Sheffield University.

3.3. Safe Work Environment

Health and safety in the workplace is a priority for the Bank, in order to ensure a safe work environment, improve the quality of professional lives of employees and

prevent related risks. The Bank performs regular controls to ensure the adequacy of existing health and safety standards in the workplace, but also develops plans for dealing with emergencies.

The collective agreement regulates in detail the obligations and responsibilities of the employer in the field of safety and protection of life and health at work, then the rights and obligations of employees in this sphere, and the role of employee representatives and establishment of the Occupational Health and Safety Committee. Occupational Health and Safety Committee is composed of representatives of employers and trade unions. A member of the Committee is entitled to:

• participate in the risk assessment process at the workplace and in the working environment

• have a constant insight into the risk assessment act • collect data about the risks and hazards in the

workplace and work environment that are not contained in the Act on risk assessment and to initiate its amendments

• communicate directly with employees• receive oral and written applications from employees • directly communicate with the managers – the

organizers of the working process • directly communicate with the person whose job is

occupational safety and health in the Bank• make suggestions to the employer on all issues

related to safety and health at work

2016

Total number of injuries 5 (M3, Ž2)

Total number of occupational diseases

0

Total number of lost days 180 (M102, Ž78)

Total number of working hours

2.544.005

Total number of days on sick leave

8.217

Total number of work days of working employees

318.000

Total number of fatal outcomes

0

Injury rate 0,38

Rate of lost days 14,15

Rate of absence from work 2,58

• Complying with legal provisions in the field of health and safety at work

• Providing a safe and healthy work environment for all employees through the implementation of an occupational disease prevention program

• Developing protective infrastructure and equipment, as well as techniques for dealing with emergencies

• Training employees to respond, especially in the case of natural disasters, and preparing proactive plans for fire safety and crisis management

• Reviewing occupational health and safety issues with employees

• Prepare plans and actions to prevent occupational diseases and support for employees in cases of violent attacks (theft, verbal / physical violence).

In the context of a safe working environment, the Bank is committed to:


Independent trade union of employees in banks, insurance companies and other financial organizations of Serbia – SS BOFOS since 2003 traditionally organizes work and sports meetings called Bofosijada. Since the first encounters, this competition has had an international character, with the participation of sports teams and guests from many countries. Bofosijada 2016 was held in Ohrid at the Hotel "Desaret" from June 8 to 12 with the participation of eight sports teams. Teams competed in several sports disciplines such as volleyball, bowling, small football, basketball 3 to 3, shooting, chess, darts, rope, tennis, swimming, throwing stone from shoulder, table tennis, pedalling and cooking fish soup. The Bank team had a total of 54 competitors, and recorded exceptional results in almost all disciplines.

Sports Team of Vojvodjanska Bank Is the

Overall Winner of Bofosijada

• request that the employer take appropriate measures to eliminate or reduce the risks that endanger the safety and health of employees

• publish notifications on employer’s bulletin boards regarding activities they have taken

• inform employees about current issues in the field of occupational safety and health, with the prior approval of the relevant superior

• require supervision by the labour inspection, if it considers that the employer did not implement adequate measures for safety and health at work and to attend the inspection supervision.


RESPONSIBILITY TO THE COMMUNITY

Art painting The Wandering Sun, Milan Konjovic 1960


4.1. Promotion of Cultureand Cultural Heritage

The goal of Vojvodjanska Bank is to support the various efforts to preserve domestic cultural heritage through long-term cooperation with respectable cultural institutions, but also to encourage cultural exchange between Serbian and Greek people. In addition, the important principle of the Bank's activities in this area is that culture must become accessible to all citizens, as evidenced by projects that the Bank conducts.

The Bank has shown its commitment to the preservation of our cultural heritage through a program called "Responsible in Culture". The main motive for launching the program was the desire to bring to the audience an extremely extensive art collection owned by the Bank, created by planned purchase and continuous realization of art colonies. The collection counts more than 600 works of art by mostly domestic authors from the second half of the 20th century.

In order to make these valuable works ready for public presentation, in the middle of 2016, cooperation with the Gallery of Matica Srpska began, which includes the enumeration, processing and cataloguing of artistic paintings by the professional team of the Gallery. In addition, the Gallery will direct financial resources in

The NBG Group seeks to contribute to social cohesion and progress in all the countries in which it operates and to support efforts to address local social and development issues. The group works in line with the EU values and policies, which in 2000 sent a special call to companies in terms of social responsibility to promote progress and contribution to the development of learning, work organization, equal opportunities, social inclusion and sustainable development.

Respecting the high standards of corporate social responsibility, Vojvodjanska Bank strives to preserve and promote universal human values, as well as the social, intellectual and cultural values of the community in which it operates.

The areas that are given most attention by the Bank when considering the ways in which it can influence the strengthening of the community of which it is an integral part, are the following:

• Promotion of culture and cultural heritage

• Helping vulnerable social groups

• Supporting the development of sports and education

Activities of the Bank in this area are independent of the interests of individuals, owners or third parties, subsidies or any other kind of direct or indirect support to political organizations and parties, and any similar financing should be in line with relevant regulatory requirements.

In line with this commitment, the Bank:

• Contributes to the emphasis on national heritage and participates in the financing of projects and events related to culture

• Supports programs that promote sports

• Supports the work of recognized social organizations

• Supports research and structural development and design programs that aim to improve the quality of life

• Conducts business in a manner that does not endanger its immediate or long-term competitiveness on the market

• Encourages social, intellectual and artistic life and contributes to the protection and promotion of local cultural heritage.

RESPONSIBILITY TO THE COMMUNITY

Mrs. Tijana Palkovljevic-Bugarski PhD, director of the Gallery of Matica srpska and Mr. Vathis, President of the Executive Board of Vojvodjanska Bank


Creative Workshops for Children

At the end of 2016, the curators of the Gallery of Matica Srpska held creative workshops for the children of the employees of Vojvodjanska Bank, whose goal was to draw art closer to them and present it in a comprehensible way. The workshops that took place in Novi Sad and Belgrade introduced children with the development of art from the Ice Age to modern art and they also taught them what it means to be a great collector, and how to use a glass jar to create their own piggy bank.

The Hellenic Foundation for Culture and Vojvodina Bank, with the support of the Hellenic Business Association in 2016, organized a retrospective of the contemporary Greek film in Niš. The aim of the retrospective entitled "Six Views of the Family" is to familiarize the domestic

Vojvodjanska Bank donated 2.5 million dinars to the Foundation of the Holy Monastery of Hilandar in Belgrade, intended for the reconstruction of the Hilandar Monastery, which was damaged by a fire in 2004. With this donation, Vojvodjanska Bank has shown its desire to contribute to the preservation of Orthodox culture in the contemporary world and preserve the cultural and historical heritage of the Hilandar monastery, but also to emphasize the connection and common values shared by the Serbian and Greek people.

Aid for Reconstruction of the Hilandar Monastery

audience with the most important film achievements from Greece as well as to encourage dialogue about the importance and position of the family in contemporary society through promoting the basic human values that are the foundation of each community.

Retrospective of Contemporary Greek Film

the amount of 5,200,000 dinars, which it accomplished by signing a business cooperation agreement with the Bank, to the second phase of reconstruction of its façade, which refers to the complete reconstruction of the entrance and the installation of an external elevator for people with disabilities.

Within the above mentioned cooperation, at the exhibition entitled “Responsible in Culture” held at

the Gallery of Matica Srpska in Novi Sad in October and November 2016, the public was for the first time presented with 40 outstanding art works by some of the most famous painters from the Vojvodina region. This and many other art works owned by the Bank will be exhibited in the future, with the aim of developing a partnership with the Gallery of Matica Srpska as a significant contribution to the preservation of the cultural heritage of our country.

Mr. Vathis handing donation to Mr. Milivoje Ranđić, Director of the Holy Monastery Hilandar Foundation


4.2. Helping VulnerableSocial Groups

Good business results and success on the market are one more reason why the Bank is even more dedicated to helping vulnerable social groups to make their everyday life better. The focus of the Bank's activities in the previous period was on support for social inclusion projects, donations and active participation in corporate volunteering.

Vojvodjanska Bank is the general sponsor of the "Budi svoj" project, whose purpose is better social inclusion of young people without parental care, i.e. their preparation for independent living. The project consists of three parts: education, which involves soft skills workshops, the creation of a database in order to better link unemployed young people and potential employers, as well as to stimulate employment and self-employment.

The "Budi svoj" project aims to make these young people visible to the society as a whole, so that they become part of the focus and interest of employers, socially responsible

companies, university leaders and representatives of the Government of the Republic of Serbia, all for systematic improvement of their position after leaving the social protection system.

During 2016, 70 workshops were held in 10 cities, during which 110 participants gained skills in the field of self-confidence, communication, personal capacity development and other fields. During the last training cycle titled "Budi izabran" (Be selected), the participants, with the help of lecturers from Vojvodjanska Bank who are recruiting staff, had the opportunity to learn how to prepare themselves better for an interview for the job and write a work biography. Also, the Bank employs two young people who have left the social protection system.

The "Budi svoj" project is being implemented by the "Uključi se" Foundation, the strategic partner of the project is the Ministry of Labour, Employment, Veteran and Social Affairs, while the Ministry of Youth and Sport has also supported the project. Support to this project is a logical continuation of the direction that the Bank took several years ago, when it was decided that young people without parental care should be in the focus of its activities in the field of corporate social responsibility.

Workshop for young without parental care which is realized withih "Budi svoj" project


Naš Beograd – Employees of Vojvodjanska Bank participated in volunteer action of the Responsible Business Forum called Naš Beograd (Our Belgrade), during which they helped the work of Naša kuhinja – Kuhinja na točkovima (Our House – Kitchen on Wheels) Association. The volunteer team of the Bank prepared 140 meals for the Svratište za decu ulice (Kids of the Street Shelter) of Zvezdara and New Belgrade, as well as the Serbian Association for Promoting Inclusion.

Participation of employees in the action “Baci 10” (High 10) – “Trag” Foundation, on the occasion of the celebration of its anniversary, launched the campaign for collecting used or new gloves for children from the Kids of the Street Shelter. Employees of the Bank responded to this campaign in large numbers, gathering 150 pairs of gloves, which were then handed over to this institution.

Computer Donations to Associations of Deaf People

In order to support the hearing impaired community, in September 2015 a donation campaign was launched targeting institutions whose beneficiaries are the hearing impaired, during which over 60 computers were donated to educational institutions, associations and organizations of hearing impaired across Serbia. This donation was an upgrade of our volunteer education project for employees to use the Serbian sign language (details in the Market section).

4.3. Supporting the Development of Sports

Promoting sports and a healthy lifestyle in general is an extremely important segment of Vojvodjanska Bank activities. Accordingly, providing support to most talented athletes, as well as encouraging the values of sport, especially in children, whose proper development through sporting activities is of great importance for the future of the community, is one of the strategic commitments of the Bank when it comes to corporate social responsibility.

Cooperation with Serbian Olympic Committee

During 2016, Vojvodjanska Bank continued to support sports and the spirit of sport for the fourth time in a row as the official bank of the Olympic Committee of Serbia. As the 2016 Olympic Games in Rio de Janeiro took place, all of the Bank's activities were aimed at promoting this prestigious sporting event. Accordingly, the Bank has additionally sponsored five athletes in order to prepare them better for the competition in Brazil.

One hundred days before the beginning of the XXXI Olympic Games in Rio de Janeiro, in cooperation with the Olympic Committee of Serbia, the Olympic Carnival was organized and the atmosphere of the city of Rio was brought to the centre of Belgrade. From the Olympic Hour at Terazije, through Knez Mihailova,

Volunteering of Employees


all the way to Kalemegdan, the rhythms of Brazil were heard, while samba dancers and demonstration of capoeira contributed to a real carnival atmosphere. The Olympic athletes of Serbia, who represented our country at the Games in Rio, were part of the carnival parade.

Towards the Olympics, which was held in the period from August 5 to 21 in Rio de Janeiro, Vojvodjanska Bank and the Olympic Committee of Serbia, with the support of local governments in eight cities across Serbia have organized "Olympic Carnival", which was attended by members the Olympic team of Serbia, who took part in XXXI Summer Olympics.

The Olympic Carnival brought the spirit and atmosphere of Brazil to the streets of Bečej, Ivanjica, Vranje, Bajina Bašta, Pirot, Zrenjanin, Šabac and Smederevska Palanka, in which many gathered citizens had the opportunity to see samba and capoeira dancers – performers of traditional Brazilian martial art, a combination of sports and dancing.

The entire manifestation also had a competitive character and for the elementary school pupils from the 1st to the 4th grade, a competition was organized in the performance of the carnival dance, in which the winning school from every city entered the narrow selection for winning the sports equipment in the amount of 100,000 dinars, handed by Vojvodjanska Bank.

In cooperation with other sponsors, Vojvodjanska Bank organized a manifestation titled "Olympic Torch" in ten cities throughout Serbia. The events were organized as mini-Olympics with the setting of sports grounds on a large surface, during which more than 3,000 elementary school pupils had the opportunity to compete in basketball, small football, volleyball, chess, handball and tennis.

4.4. Supporting Education

In cooperation with its partners in 2016, the Bank started cooperation with the Faculties of Economics in several cities in Serbia, and organized two programs of professional practices together with its partners.

Cooperation with Faculties of Economics

In order to enable future economists to take the first steps in their professional career, Vojvodjanska Bank signed a Protocol on Cooperation with the Faculties of Economics, University of Subotica, Novi Sad, Belgrade and Kragujevac.

The cooperation defined in these Protocols includes students' practices, student scholarships for master


and doctoral theses, mentoring programs, sponsorships and donations of programs of the Faculties of Economics, guest lectures of representatives of Vojvodjanska Bank, participation of students in case studies, organization of workshops and other activities.

Apart from providing practical knowledge to students by the bank and professional practices during which students participated in performing specific banking activities, joint activities of experts of Vojvodjanska Bank and teaching staff of the Faculty of Economics will also be organized, the main goal of which will be the accreditation of new modules in the field of electronic banking, i.e. digital economy.

Professional Practices and Support to Student Conferences

At the invitation of the Hellenic Business Association, in 2016, the Bank responded for the second time to the campaign "By Greek Initiative to Work Experience". This program refers to the organization of professional practices for students of the final years of the University of Belgrade in Greek companies, members of the Hellenic Business Association. The second program of professional practices was organized in cooperation with the Office for Local Economic Development of the city of Novi Sad and the University of Novi Sad.

During the above-mentioned training programs, all students went through three-time training, during which the representatives of most of the Bank's divisions held presentations in relation to their duties and tasks, so that the students were fully acquainted with the activities performed within the Bank.

A total of 18 students who successfully completed the practice programs had the opportunity to acquire new

professional skills in as many as nine divisions in the Bank, which was the Bank’s effort of enabling students to gain their work experience in various segments of a large system such as Vojvodjanska Bank. Additionally, each student was assigned a mentor, who monitored their engagement during the entire program of practice, and as a sign that their work was highly appreciated, the Bank provided for all students a cash benefit during the duration of these programs.

In addition to cooperation with educational institutions, the Bank is actively supporting individual student conferences aimed at sharing experiences and knowledge in the economy, but also in other areas:

The Economic Student Summit – Vojvodjanska Bank supported the realization of the Economic Student Summit, aimed at developing new ideas and launching entrepreneurial spirit, as well as establishing a regional network of students of economics. During the three days of this international event, the team of colleagues from our Bank created and organized a case study whose task was to develop the best quality packages of Friendly Banking products and services for young people. An expert jury, whose two members were employees of the Bank, awarded the winning team with a cash sum of 30,000 dinars.

BIMUN Conference – for the second time in a row our Bank provided incentives for young people and their education, supporting the BIMUN conference. BIMUN 2016 is the thirteenth international conference of the "Belgrade International Model of the UN" held in March 2016 in Belgrade, where a real educational simulation of the work of UN bodies on current topics was presented. About 300 selected students from 40 countries took part in the conference, in order to get acquainted in practice with the mechanisms of international cooperation and basic diplomatic principles.



RESPONSIBILITY TO THE ENVIRONMENT


RESPONSIBILITY TO THE ENVIRONMENT

Environmental protection is an extremely important segment of the business of Vojvodjanska Bank, which is constantly putting efforts in maintaining the high standards of the NBG Group, being an integral part of it. Responsible relationship towards the environment is reflected in consideration and creation of adequate responses to challenges in the following areas:

• Responsible resource management• Responsible financing

Taking into account the most significant impacts of the Bank's operations on the natural environment, the Bank is undertaking concrete activities with the aim of adjusting its business to a more rational resource consumption and when it comes to indirect effects the Bank actively promotes positive practices in the field of responsible financing.

Through active participation in certain global environmental initiatives and sustainable development, such as the United Nations Global Compact in Serbia, the Bank seeks to further contribute to the promotion of a responsible approach to environmental issues.

• Takes initiatives aimed at preventing climate change

• Encourages recycling and energy savings, as well as programs designed to save raw material

• Apply models of environmental risk assessment in investment and credit processes

• Supports activities aimed at protecting and preserving the natural environment

• Informs and raises the awareness of employees and clients about the importance of environmental protection

5.1. Responsible Resource Management

With efficient and responsible use of resources, Vojvodjanska Bank made significant steps in 2016 in order to minimize its primary negative impacts on the environment. Initiatives that were taken related to energy consumption and resulted in significant savings, and the Bank is also committed to adequate waste treatment, primarily recycling of paper and toner, which are the basic resource in everyday business.

Energy

In order to reduce the energy consumption to a greater extent, the Bank started the project of optimizing the heating and electricity consumption system in 2016. The elaboration of the energy efficiency study for the facilities that are the largest consumers of the Bank and the implementation of the conclusions reached by this analysis significantly reduced the level of energy consumed in the heating of these facilities. In the following period, the project will be implemented in other facilities belonging to the largest consumers of energy products.

Heating

The Property Management Division has undertaken a series of activities that include technical and financial analysis of energy and heating consumption. The analysis concluded that in the part referring to heating it is possible to achieve savings in the fixed and variable part of the costs. The system for saving in fixed part of heating is used and implemented in facilities in Belgrade, Bulevar Mihajla Pupina 111, as well as in Zrenjanin, Trg Zorana Djindjića b.b.

For the facility in Zrenjanin, the Bank made the elaboration of energy efficiency, as well as the measurement of the total square footage used by Vojvodjanska Bank. The analysis resulted in the square footage and exact capacity of the air-conditioning chambers used for heating and cooling the rooms.

In the context of environmental responsibility, the Bank:


Since the study was adopted by Public Utility Company "Toplana Zrenjanin", it is expected that the corrections will bring very significant savings in the following period.

01.06.2016. / kW 740 x unit price 212.57 RSD / Total cost: 157,301.80 RSD net

For the building in Belgrade, the same procedure concluded that the capacity shown in the existing contract with the supplier is no longer credible. The procedure for submission of documentation and project has been executed, as well as the signing of a new Contract for the delivery of heat energy. However, as the Belgrade branch was renovated as well as other premises of the building certain heating bodies became surplus and they were removed.

In addition to the idea of changing and establishing a new fixed expense, there was room for the variable portion of the expenditure to be reduced as well by providing the option that the Bank itself manages the capacity that is delivered, i.e. to determine on its own the level and the need for heating of offices and premises. The analysis found that the then 50oC capacity defined by the supplier exceeds the Bank's needs, especially after the working hours and weekends. In order to provide the conditions for calculating the heating consumption by actual consumption, the equipping of the radiators and the installation of thermo-regulating valves and thermostatic heads was performed.

In addition to these activities, the installation of windows with thermal breaks was carried out so that the building

could receive a passport on energy efficiency. With the Public Utility Company "Beogradske elektrane" a new contract with reduced capacity was signed, i.e. at a fixed cost, and it is planned to realize savings in the fixed and the variable part of EUR 10-17 thousand annually.

30.04.2016. / total debt per account: 519,959.89 RSD netEngaged capacity 2016 (previous contract) = 474.52 kW

In the following period it is planned that this system will be applied to other objects that are big energy consumers, such as Sombor.

Electricity

When it comes to electricity consumption in the facilities of Vojvodjanska Bank, additional reductions can be made by modifying the existing contract with the electricity supplier, which would enable the Bank to switch to a more efficient system that is recommended for business facilities and large consumers.

At the technical level, the installation of LED lighting, which, in comparison to halogen lamps, consumes up to 90% less electricity, but also façade windows with thermal break in the renovated facilities, provides additional savings and creates the basis for future initiatives that will contribute to even better energy efficiency of the Bank's facilities.

An analysis of the electricity consumed on an annual basis has led to the following conclusions:

TECHNICAL OVERVIEW OF TOTAL PER YEAR SPENT IN TOTAL kWh

2015 5.466.570,00

2016 5.034.484,00

FINANCIAL OVERVIEW OF TOTAL PER YEAR

PAID IN TOTAL (RSD w/out VAT)

TOTAL VARIABLE FIXED

2015 50.964.030,19 27.362.818,89 21.764.143,36

2016 46.917.932,49 24.754.829,51 20.391.173,70

Note: The analysis applies only to facilities for which the Bank has a contract with „Elektrodistribucija“, as it has clear calculation and control parameters. For facilities for which the Bank does not have a direct contract, there are situations where such facilities run on backup power, so the amounts are not comparable. Out of the entire business network and central office facilities 35 locations do not or cannot have a contract (mostly leased buildings, where lessors are natural persons).

In the upcoming period, this trend is planned to continue.


5.2. Responsible Financing

The extremely high standards adopted by the Bank in the field of responsible investment are one of the primary aspects of our operations and they are an indication of our long-term commitment to sustainability. The Bank recognized the importance of the contribution that a financial institution can achieve by implementing rules for the analysis and evaluation of environmental and social risks in financial procedures. Although the Bank’s influences are indirect, they are closely related to our core business.

In addition to following the NBG Group's guidelines in this area, the Bank has been included in the EBRD's Trade Facilitation Program (TFP) since 2013, thanks to which it has adopted strict environmental and social criteria for commercial transactions. Additionally, the Bank has worked hard to raise awareness among its clients in terms of environmental protection and social issues in trade, and has been recognized as one of the most successful partner banks in this program. During 2016, on the basis of an agreement with the EBRD, the Bank placed loans for working capital in the amount of 10 million euros. Having in mind the total loan portfolio of the Corporate Banking Division, the share of these loans is 2.7% in 2016.

Energy consumption 2016 * kWh

Electricity consumption 5.034.484,00

Energy intensity** 3.513,35

* Consumption does not include energy spent on heating.** Energy intensity represents the measure of the company's energy efficiency. It is calculated by dividing the total amount of energy consumed with the parameters unique to the company (in this case the number of permanent employees) and represents the required amount of energy for the unit according to the selected parameter (that is, the amount of energy per employee).

Employees of the Bank supported action „Just not by Car“


Earth Hour In 2016, Vojvodjanska Bank joined the initiative of the World Wildlife Fund (WWF), entitled "Earth Hour", for the tenth time. On Saturday, March 19, 2016, the Bank switched off façade lighting between 20:30 and 21:30 on its representative buildings, in the cities where the campaign was organized, and in that way sent a strong message that only by the joint action of the companies, but also individuals, the climate change and the consequences of excessive consumption of natural resources can be mitigated. In addition, through its corporate accounts on social networks and internal web portal, the Bank invited its clients and employees to join the initiative.

Just Not by CarThe employees of Vojvodjanska Bank participated in the global campaign "Samo ne autom" (Just Not by Car) which is organized on the World Car Free Day, and thus contributed to the promotion of the use of alternative means of transport, such as bicycles, in response to the increasing emissions of harmful gases and the lack of space due to too much cars in cities. The action is organized by the United Nations Development Program, Heinrich Böl Foundation and cycling associations. In this way, our colleagues have contributed to this important issue by their personal example.

WasteWaste management is another area in which the Bank seeks to adapt its business operations to a large extent by using principles of effective reduction of consumption and proper disposal, i.e. treatment of waste. The Bank is continuously investing in the improvement of the waste management system, actively promoting recycling. This activity involves regular recycling of written-off fixed assets, waste paper, worn-out toners and other hazardous and non-hazardous waste.

In accordance with the existing legal framework, the Bank monitors and reports to the competent state institutions on the quantities of generated and recycled waste, and the disposal of waste is carried out by a specialized organization. Thus, in 2016, a total of 15.5 tons of non-hazardous waste was generated and then recycled. Since hazardous waste is not discharged every year, for the previous 2015, 5.0 tons of electronic waste and 40.0 tons of non-hazardous waste were discharged.

The Bank Promotes Responsible Behaviour and Spreads Good Practices

EBRD Trade Facilitation Program

EBRD is one of the largest institutional investors in Serbia. So far, Serbia has received about 4.5 billion euros through the financing of banks with focus on infrastructure, but also to financial institutions, energy, industry and agribusiness, as well as other sectors, with more than half of the total investment in support of the development of the private sector.

The EBRD's Trade Facilitation Program (TFP) was launched in 1999 and aims to promote foreign trade to, from and among countries where the EBRD is investing. Through this Program, the EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for lending to domestic exporters, importers and distributors. The EBRD's Trade Facilitation Program (TFP) currently includes 96 partner banks in 26 countries in which the EBRD invests, with a total limit of over 1.5 billion euros and more than 800 worldwide confirming banks.



GRI INDEX AND INDICATORS


GENERAL STANDARD DISCLOSURES PAGE

STRATEGY AND ANALYSIS

G4 -1STATEMENT FROM THE MOST SENIOR DECISION-MAKER OF THE ORGANIZATION

5

G4 -2 SUSTAINABILITY TRENDS, KEY IMPACTS, RISKS, AND OPPORTUNITIES 12, 13, 18-21

ORGANIZATIONAL PROFILE

G4-3 NAME OF THE ORGANIZATION 8

G4-4 PRIMARY BRANDS, PRODUCTS, AND SERVICES 8

G45 LOCATION OF THE ORGANIZATION’S HEADQUARTERS 8

G4-6 NUMBER OF COUNTRIES WHERE THE ORGANIZATION OPERATES 8

G4-7 NATURE OF OWNERSHIP AND LEGAL FORM 8

G4-8 MARKETS SERVED 8

G4-9 SCALE OF THE ORGANIZATION 8-10

G4-10 EMPLOYMENT PROFILE 32, 33

G4 -11PERCENTAGE OF TOTAL EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS

34

G4-12 DESCRIPTION OF SUPPLY CHAIN 30

G4-13SIGNIFICANT CHANGES DURING THE REPORTING PERIOD REGARDING THE ORGANIZATION’S SIZE, STRUCTURE, OWNERSHIP, OR ITS SUPPLY CHAIN

/

COMMITMENTS TO EXTERNAL INITIATIVES

G4-14 PRECAUTIONARY APPROACH OR PRINCIPLE 18-19

G4-15EXTERNALLY DEVELOPED ECONOMIC, ENVIRONMENTAL AND SOCIAL CHARTERS, PRINCIPLES, OR OTHER INITIATIVES TO WHICH THE ORGANIZATION SUBSCRIBES OR WHICH IT ENDORSES

15, 16

G4-16ACTIVE MEMBERSHIPS OF ASSOCIATIONS (SUCH AS INDUSTRY ASSOCIATIONS) AND NATIONAL OR INTERNATIONAL ADVOCACY ORGANIZATIONS

15, 16

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17ENTITIES INCLUDED IN THE ORGANIZATION’S CONSOLIDATED FINANCIAL STATEMENTS

7, 8

GRI INDEX AND INDICATORS


G4-18 DEFINING THE REPORT CONTENT AND BOUNDARIES 7, 13, 14

G4-19 MATERIAL ASPECTS IDENTIFIED 13, 14

G4-20 BOUNDARY WITHIN THE ORGANIZATION FOR EACH MATERIAL ASPECT 13, 14

G4-21 BOUNDARY OUTSIDE THE ORGANIZATION FOR EACH MATERIAL ASPECT 13, 14

G4-22 RESTATEMENTS OF REPORTED INFORMATION /

G4-23 SIGNIFICANT CHANGES IN THE SCOPE AND ASPECT BOUNDARIES /

STAKEHOLDER ENGAGEMENT

G4-24 LIST OF STAKEHOLDERS 14

G4-25 IDENTIFICATION AND SELECTION OF STAKEHOLDERS 13

G4-26 STAKEHOLDER ENGAGEMENT 13

G4-27KEY TOPICS AND CONCERNS RAISED THROUGH STAKEHOLDER ENGAGEMENT

14

REPORT PROFILE

G4-28 REPORTING PERIOD 7

G4-29 PREVIOUS REPORT /

G4-30 REPORTING CYCLE 7

G4-31CONTACT POINT FOR QUESTIONS REGARDING THE REPORT OR ITS CONTENTS

7

G4-32 GRI INDEX 54-59

G4-33 EXTERNAL ASSURANCE /

GOVERNANCE

G4-34GOVERNANCE STRUCTURE OF THE ORGANIZATION, INCLUDING COMMITTEES OF THE HIGHEST GOVERNANCE BODY

16, 17

G4-35PROCESS FOR DELEGATING AUTHORITY FOR ECONOMIC, ENVIRONMENTAL AND SOCIAL TOPICS FROM THE HIGHEST GOVERNANCE BODY TO SENIOR EXECUTIVES AND OTHER EMPLOYEES.

18

G4-36

WHETHER THE ORGANIZATION HAS APPOINTED AN EXECUTIVE-LEVEL POSITION OR POSITIONS WITH RESPONSIBILITY FOR ECONOMIC, ENVIRONMENTAL AND SOCIAL TOPICS, AND WHETHER POST HOLDERS REPORT DIRECTLY TO THE HIGHEST GOVERNANCE BODY

18

G4-39WHETHER THE CHAIR OF THE HIGHEST GOVERNANCE BODY IS ALSO AN EXECUTIVE OFFICER

16


G4-40NOMINATION AND SELECTION PROCESSES FOR THE HIGHEST GOVERNANCE BODY AND ITS COMMITTEES, AND THE CRITERIA USED

16

G4-41 REPORT PROCESSES FOR THE HIGHEST GOVERNANCE BODY TO ENSURE CONFLICTS OF INTEREST ARE AVOIDED AND MANAGED

22

G4-42

HIGHEST GOVERNANCE BODY’S AND SENIOR EXECUTIVES’ ROLES IN THE DEVELOPMENT, APPROVAL, AND UPDATING OF THE ORGANIZATION’S PURPOSE, VALUE OR MISSION STATEMENTS, STRATEGIES, POLICIES, AND GOALS RELATED TO ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS

18

ETHICS AND INTEGRITY

G4-56ORGANIZATION’S VALUES, PRINCIPLES, STANDARDS AND NORMS OF BEHAVIOR SUCH AS CODES OF CONDUCT AND CODES OF ETHICS

12, 13, 21, 22

G4-57INTERNAL AND EXTERNAL MECHANISMS FOR SEEKING ADVICE ON ETHICAL AND LAWFUL BEHAVIOR AND MATTERS RELATED TO ORGANIZATIONAL INTEGRITY

20-22

G4-58INTERNAL AND EXTERNAL MECHANISMS FOR REPORTING CONCERNS ABOUT INTEGRITY

21, 22

SPECIFIC STANDARD DISCLOSURES PAGE

CATEGORY: ECONOMIC 9-11

ASPECT: ECONOMIC PERFORMANCE – DISCLOSURES ON MANAGEMENT APPROACH

9, 10

1. G4 -EC1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED 10, 11

ASPECT: INDIRECT ECONOMIC IMPACTS – DISCLOSURES ON MANAGEMENT APPROACH

9, 10

2.G4-EC 9 PROPORTION OF SPENDING ON LOCAL SUPPLIERS AT SIGNIFICANT LOCATIONS OF OPERATION

30

CATEGORY: ENVIRONMENTAL

ASPECT: ENERGY – DISCLOSURES ON MANAGEMENT APPROACH 48-50

3. G4 - EN 3 ENERGY CONSUMPTION WITHIN THE ORGANIZATION 49, 50

4. G4-EN 5 ENERGY INTENSITY 50

ASPECT: EFFLUENTS AND WASTE - DISCLOSURES ON MANAGEMENT APPROACH

51

5. G4- EN 23 TOTAL WEIGHT OF WASTE BY TYPE AND DISPOSAL METHOD 51

ASPECT: PPRODUCTS AND SERVICES – DISCLOSURES ON MANAGEMENT APPROACH

50

6.G4- EN 27 EXTENT OF IMPACT MITIGATION OF ENVIRONMENTAL IMPACTS OF PRODUCTS AND SERVICES

50, 51


CTEGORY: SOCIAL 24, 30, 32, 40

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK 32

ASPECT : EMPLOYMENT - DISCLOSURES ON MANAGEMENT APPROACH 32

7.G4- LA 1 TOTAL NUMBER AND RATES OF NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BY AGE GROUP, GENDER AND REGION

32, 33

8.G4-LA 2 BENEFITS PROVIDED TO FULL-TIME EMPLOYEES THAT ARE NOT PROVIDED TO TEMPORARY OR PART-TIME EMPLOYEES, BY SIGNIFICANT LOCATIONS OF OPERATION

34

9.G4- LA 3 RETURN TO WORK AND RETENTION RATES AFTER PARENTAL LEAVE, BY GENDER

35

ASPECT: LABOR/MANAGEMENT RELATIONS 34

10.G4-LA 4 MINIMUM NOTICE PERIODS REGARDING OPERATIONAL CHANGES, INCLUDING WHETHER THESE ARE SPECIFIED IN COLLECTIVE AGREEMENTS

34

ASPECT: OCCUPATIONAL HEALTH AND SAFETY - DISCLOSURES ON MANAGEMENT APPROACH

37

11.G4-LA 6 TYPE OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, AND ABSENTEEISM, AND TOTAL NUMBER OF WORK-RELATED FATALITIES, BY REGION AND BY GENDER

37

12.G4- LA 8 HEALTH AND SAFETY TOPICS COVERED IN FORMAL AGREEMENTS WITH TRADE UNIONS

37, 38

ASPECT: TTRAINING AND EDUCATION - DISCLOSURES ON MANAGEMENT APPROACH

35

13.G4 -LA 9 AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE BY GENDER, AND BY EMPLOYEE CATEGORY

36

14.G4- LA 10 PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING THAT SUPPORT THE CONTINUED EMPLOYABILITY OF EMPLOYEES AND ASSIST THEM IN MANAGING CAREER ENDINGS

36, 37

15.G4-LA 11 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS, BY GENDER AND BY EMPLOYEE CATEGORY

35


ASPECT: LABOR PRACTICES GRIEVANCE MECHANISMS 35

16.G4-LA16 NUMBER OF GRIEVANCES ABOUT LABOR PRACTICES FILED, ADDRESSED, AND RESOLVED THROUGH FORMAL GRIEVANCE MECHANISMS

35

SUB-CATEGORY: HUMAN RIGHTS 21, 30, 40

ASPECT: NON-DISCRIMINATION 35

17.G4-HR3 TOTAL NUMBER OF INCIDENTS OF DISCRIMINATION AND CORRECTIVE ACTIONS TAKEN

35

ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS 35

18.G4- HR 12 NUMBER OF GRIEVANCES ABOUT HUMAN RIGHTS IMPACTS FILED, ADDRESSED, AND RESOLVED THROUGH FORMAL GRIEVANCE MECHANISMS

35

SUB-CATEGORY: SOCIETY 40

ASPECT: LOCAL COMMUNITIES 40

19.FS 14 INITIATIVES TO IMPROVE ACCESS TO FINANCIAL SERVICES FOR DISADVANTAGED PEOPLE

29

ASPECT: ANTI-CORRUPTION 21, 22

20. G4-SO 5 CONFIRMED INCIDENTS OF CORRUPTION AND ACTIONS TAKEN 22

ASPECT: PUBLIC POLICY 22

21.G4-SO 6 TOTAL VALUE OF POLITICAL CONTRIBUTIONS BY COUNTRY AND RECIPIENT/BENEFICIARY

22

22.G4-SO 7 TOTAL NUMBER OF LEGAL ACTIONS FOR ANTI-COMPETITIVE BEHAVIOR, ANTI-TRUST, AND MONOPOLY PRACTICES AND THEIR OUTCOMES

22

ASPECT: COMPLIANCE 20

23.G4-SO 8 MONETARY VALUE OF SIGNIFICANT FINES AND TOTAL NUMBER OF NON-MONETARY SANCTIONS FOR NON-COMPLIANCE WITH LAWS AND REGULATIONS

22

SUB-CATEGORY: PRODUCT RESPONSIBILITY 24

ASPECT: PRODUCT AND SERVICE LABELING 26, 29

24.

G4- PR 3 TYPE OF PRODUCT AND SERVICE INFORMATION REQUIRED BY THE ORGANIZATION’S PROCEDURES FOR PRODUCT AND SERVICE INFORMATION AND LABELING, AND PERCENTAGE OF SIGNIFICANT PRODUCT AND SERVICE CATEGORIES SUBJECT TO SUCH INFORMATION REQUIREMENTS

25


25.G4-PR 4 TOTAL NUMBER OF INCIDENTS OF NON-COMPLIANCE WITH REGULATIONS AND VOLUNTARY CODES CONCERNING PRODUCT AND SERVICE INFORMATION AND LABELING, BY TYPE OF OUTCOMES

25

26. G4- PR 5 RESULTS OF SURVEYS MEASURING CUSTOMER SATISFACTION 25, 26

ASPECT: MARKETING COMMUNICATIONS 24

27.

G4-PR7 TOTAL NUMBER OF INCIDENTS OF NON-COMPLIANCE WITH REGULATIONS AND VOLUNTARY CODES CONCERNING MARKETING COMMUNICATIONS, INCLUDING ADVERTISING, PROMOTION, AND SPONSORSHIP, BY TYPE OF OUTCOMES

24

ASPECT: CUSTOMER PRIVACY 26

28.G4- PR 8 TOTAL NUMBER OF SUBSTANTIATED COMPLAINTS REGARDING BREACHES OF CUSTOMER PRIVACY AND LOSSES OF CUSTOMER DATA

26, 27

ASPECTS RELEVANT TO THE SECTOR ACCORDING TO GRI G4 DISCLOSURES FOR FINANCIAL SECTOR

ASPECT: PRODUCT PORTFOLIO 8-10, 50

29.FS 8 MONETARY VALUE OF PRODUCTS AND SERVICES DESIGNED TO DELIVER A SPECIFIC ENVIRONMENTAL BENEFIT FOR EACH BUSINESS LINE BROKEN DOWN BY PURPOSE

50, 51

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Documents

1. INTRODUCTION - voban.co.rscontrols 1/4 of its retail operations in its home country and has a 25% share in the deposit market. Deposit participation reflects the trust of clients,