Case study: How Center-invest Bank 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.

Center-invest Bank is actively involved in the development and implementation of state programs aimed at fostering entrepreneurship, regional and municipal development, and works closely with public entrepreneurial organizations. The bank also engages in active information dissemination regarding entrepreneurial challenges. It collaborates on ESG banking development with the State Duma of the Russian Federation, the Government of the Russian Federation, the Bank of Russia, the Ministry of Economic Development, the State Development Corporation VEB.RF, Rosstat, and the Moscow Exchange. The Chairman of the Board of Directors of Center-invest Bank leads the ESG Banking Project Group of the Association of Russia, approving the Russian Taxonomy, instruments for financing environmental and social projects, measures to support investors and issuers of a fiscal, economic and regulatory nature are discussed. Center-invest Bank experts contribute to the discussion of criteria and metrics for financing ESG projects in energy efficiency, responsible consumption, social entrepreneurship, and sustainable agriculture. The Deputy Chairman of the Executive Board, Ph.D. Alexander Dolganov, joined the expert council on sustainable development and green financing under the Committee of the State Duma of the Russian Federation on the financial market.

Since these authorities and institutions are also stakeholders of the Bank, Center-invest engages in dialogue with them, systematically discloses its ESG risk management results and responsible financing practices, and receives feedback to monitor progress in sustainable development.

The Chairman of the Board of Directors, Vasily Vysokov, published an article titled “Competitive Advantages of Sovereign ESG Banking,” analyzing how Russian banks can leverage their competitive edges to take climate change into consideration and benefit from legal incentives for ESG transformation.

In the interest of current and future generations, Center-invest Bank supports talented youth and promotes the Sustainable Development Goals. In 2022, in collaboration with Don State Technical University, the bank released the world’s first task book on the Sustainable Development Goals. Based on this task book, Center-invest bank organized a competition among young scientists to find the best ESG solutions. Contestants used big data and modern digital technologies to research ESG issues and develop proposals for sustainable global development.

How did Center-invest Bank work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

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

In 2022, Center-invest Bank implemented a new methodology for assessing the ESG risks of entrepreneurial borrowers. This updated methodology significantly expanded the list of parameters used for borrower ratings, with the final score determining one of seven levels of the final rating, from the highest ESG-A to the lowest ESG-G.

A high rating (ESG-A/B) was assigned to 47% of all loans, indicating a high level of environmental, social, and corporate responsibility among the bank’s customers. Clients with an ESG-A/B/C rating receive certificates of gratitude for responsible business conduct. Additionally, borrowers can apply for an overdraft discount that varies with the level of their ESG rating (higher rating results in a higher discount). So, the bank forms a loyalty system and engages entrepreneurs in responsible management practices.

Center-Invest Bank launched the Green Mortgage program, which offers customers a preferential rate when purchasing real estate with a higher energy efficiency class. The “Green Mortgage” program continues the bank’s energy-efficient financing initiatives for both individuals and businesses.

In 2022, Center-Invest Bank introduced a new electronic magazine, “Green Vector,” focusing on environmentally friendly and conscious lifestyles. “Green Vector” aims to engage those who wish to become more active in the eco-movement.

Center-Invest Bank received a laureate diploma of the XVIII Annual International Prize in Economics and Finance named after P. A. Stolypin, in the category “For popularization of ESG-banking.”

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.

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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 Center-invest Bank, 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://centrinvest.com/files/PRB_Report2022.pdf

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