Case study: How Sovcombank works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

The Annual Report 2022 provides an overview of the regular interactions that the Bank maintains with its various stakeholders. Sovcombank has identified five distinct stakeholder groups. The methods of interaction with these stakeholders include conference calls, meetings, emails, webcasts, and ad hoc surveys. Sovcombank consistently provides all necessary information to ensure transparency for its stakeholders.

Additionally, the Annual Report outlines the results of the materiality assessment, which is based on the responses and expectations of key stakeholders. The assessment methodology was informed by the Global Reporting Initiative and the UN’s Sustainable Development Goals. It took into account both internal factors (such as business model, corporate strategy, risk framework, and policies) and external factors (including peer reviews, global megatrends, media analyses, and industry research). Sovcombank assigned distinct weights to each topic, reflecting their significance to the Bank and its key stakeholders. The appropriateness of these weights has been validated by senior management and shareholders. The results of the assessment highlight that sustainable lending and investment are of primary importance to Sovcombank’s stakeholders. Additionally, the ability to generate long-term value through financial support for SMEs and the management of personnel potential emerges as a strong theme.

How did Sovcombank work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2022 PRB Reporting and Self-Assessment Template Sovcombank reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Sovcombank fosters strong relationships with its clients through a robust corporate culture and a comprehensive set of internal policies, including:

• Sustainability policy
• Responsible finance policy
• Code of corporate ethics
• Code of corporate governance
• Human rights policy
• Diversity & Inclusion policy
• Code of responsible supplier
• Anticorruption policy
• Cybersecurity policy
• Tax policy

The Bank aims to support its key clients in their transition to a low-carbon economy in line with the Paris Climate Agreement. Sovcombank is able to influence its clients’ investment choices by managing their access to capital, adjusting the cost of capital, and offering sound financial guidance. To further this goal, Sovcombank is currently developing an internal ESG scoring system to make loans to clients and invest in companies complying with sustainable development principles.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Sovcombank, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://sovcombank.ru/document/13420

Note to Sovcombank: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.