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Sustainability Report 2013

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Table of Compliance with GRI Guidelines, Financial Services Sector Supplement and UN Global Compact’s Principles

Disclosure/GRI Performance Indicator

UN Global Compact’s Principles

Sections of the Report/Comments and Additional Information/References to Other Sources

1.1 Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy

Chairman’s Statement

1.2 Description of key impacts, risks, and opportunities

Risk Management in Vnesheconombank Group

2.1 Name of the organization

About the Report

Vnesheconombank’s History

2.2 Primary brands, products, and/or services

Priority Business Lines

Development Projects

Impact on Investment Climate Improvement

Investment of Pension Savings

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

Vnesheconombank’s Annual Report 2013

The VEB Group entities’ annual reports 2013 available from official sites

2.4 Location of organization’s headquarters

Contact Information

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

Vnesheconombank Group: Key Highlights

Priority Business Lines

Attracting Foreign Investments and Technologies

2.6 Nature of ownership and legal form

About the Report

Vnesheconombank’s History

Corporate Governance System

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)

Priority Business Lines

Development Projects

Impact on Investment Climate Improvement

Investment of Pension Savings

2.8 Scale of the reporting organization

Vnesheconombank Group: Key Highlights

Priority Business Lines

Development Projects

Impact on Investment Climate Improvement

Investment of Pension Savings

Personnel Management

2.9 Significant changes during the reporting period regarding size, structure, or ownership

In 2013, no significant changes regarding size, structure, or ownership were recorded in Vnesheconombank and the VEB Group entities

2.10 Awards received in the reporting period

Volunteering

In 2013, Bank BelVEB won the Gold Award in the republican competition “Brand of the Year 2013” in the category of Sustainable Brand

3.1 Reporting period (e.g., fiscal/calendar year) for information provided

01.01-31.12.2013

3.2 Date of most recent previous report (if any)

The VEB Group’s Sustainability Report 2012 was published in 2013

3.3 Reporting cycle (annual, biennial, etc.)

Vnesheconombank publishes its non-financial reports on an annual basis

3.4 Contact point for questions regarding the report or its contents

Contact Information

3.5 Process for defining report content

About the Report

Stakeholder Engagement

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)

About the Report

3.7 State any specific limitations on the scope or boundary of the report

About the Report

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations

About the Report

Priority Business Lines

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report

About the Report

Vnesheconombank deploys its own internal data collection system. To collect and consolidate non-financial information regarding the Group, Vnesheconombank uses inquiry forms developed in the light of specific nature of each subsidiary’s operations and corresponding to the GRI Guidelines (Version 3.1)

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/ acquisitions, change of base years/periods, nature of business, measurement methods)

There are no re-statements of information provided in the VEB Group’s Sustainability Report 2012

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

There are no significant changes from the previous reporting period in the scope, boundary, or measurement methods applied in the report

3.12 Table identifying the location of the Standard Disclosures in the report

Table of Compliance with GRI Guidelines, Financial Services Sector Supplement and UN Global Compact’s Principles

3.13 Policy and current practice with regard to seeking external assurance for the report

About the Report

Conclusion Based on the Results of the Non-Financial Audit of the Report

The Certificate of Public Assurance by Russian Union of Industrialists and Entrepreneurs

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight

Corporate Governance System

4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement)

Corporate Governance System

4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members

Vnesheconombank’s corporate governance system does not provide for a unitary board structure

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body

Corporate Governance System

Stakeholder Engagement

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance)

Corporate Governance System

Compensation for members of Vnesheconombank’s governing bodies is not conditional upon social and environmental performance

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided

Responsible Business Practices

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity

Corporate Governance System

Vnesheconombank determines the composition of its governing bodies in accordance with Federal Law No. 82-FZ “On Bank for Development” dated 17 May 2007

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

Risk Management in Vnesheconombank Group

Responsible Business Practices

Management of Internal Environmental Impact

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

Vnesheconombank submits reports to the Government of the Russian Federation and the Supervisory Board of Vnesheconombank in accordance with Article 7 of the Federal Law “On Bank for Development” and Article 11 of the Memorandum on Financial Policies of Vnesheconombank. To assess social, economic and environmental performance within the Group, Vnesheconombank issues, on an annual basis, sustainability reports approved by Vnesheconombank’s order

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance

The list of details submitted by Vnesheconombank to the Government of the Russian Federation and the Supervisory Board of Vnesheconombank is specified in the Federal Law “On Bank for Development,” the Memorandum on Financial Policies of Vnesheconombank and other regulations

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization

Principle 7. Businesses should support a precautionary approach to environmental challenges

Vnesheconombank does not directly address the precautionary principle to its activities. However, in making investment decisions, Vnesheconombank runs due diligence of projects, including assessment of their potential environmental impact.

Approach to the risk management is described in the Annual Report 2013 and the issuer’s statements available from: http://www.veb.ru/about/annual/.

Investor relations

Risk Management in Vnesheconombank Group

Responsible Business Practices

Management of Internal Environmental Impact

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

Highlights 2013

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

Participation in the UN Global Compact and Promotion of Sustainability Principles

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations

Highlights 2013

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

4.14 List of stakeholder groups engaged by the organization

Stakeholder Engagement

4.15 Basis for identification and selection of stakeholders with whom to engage

Stakeholder Engagement

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Stakeholder Engagement

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

About the Report

Stakeholder Engagement

GRI Financial Services Sector Supplement

FS DMA Management Approach

Investment Management

FS1 Policies with specific environmental and social components applied to business lines

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

Risk Management in Vnesheconombank Group

Responsible Business Practices

Management of Internal Environmental Impact

FS2 Procedures for assessing and screening environmental and social risks in business lines

Environmental Stewardship and Energy Efficiency Projects

Support to Small- and Medium-Sized Enterprises

Risk Management in Vnesheconombank Group

Responsible Business Practices

FS3 Processes for monitoring clients’ implementation of and compliance with environmental and social requirements included in agreements or transactions

Investment Management

FS4 Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines

Investment Management

Personnel management

FS5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities

Investment Management

Risk Management in Vnesheconombank Group

Responsible Business Practices

FS6 Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/ large) and by sector

Vnesheconombank Group: Key Highlights

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Integrated Territorial Development

Support to Innovative Projects

Environmental Stewardship and Energy Efficiency Projects

Support to Small- and Medium-Sized Enterprises

Development of PPP Mechanisms

Support to Exports

FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose

Vnesheconombank Group: Key Highlights

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

Integrated Territorial Development

Support to Innovative Projects

Vnesheconombank’s Olympic Projects

Support to Small- and Medium-Sized Enterprises

Development of PPP Mechanisms

Support to Exports

Investment of Pension Savings

Responsible Business Practices

FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose

Environmental Stewardship and Energy Efficiency Projects

FS14 Initiatives to improve access to financial services for disadvantaged people

Responsible Business Practices

FS16 Initiatives to enhance financial literacy by type of beneficiary

Developing the Talent Pool for Investment Operations

Economic Performance Indicators

EC DMA Management Approach

Priority Business Lines

Strategy Implementation. Sustainability Objectives and Initiatives

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Vnesheconombank’s Annual Report 2013

The VEB Group entities’ annual reports available from official sites

Charity

EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change

Principle 7. Businesses should support a precautionary approach to environmental challenges

Neither Vnesheconombank nor the VEB Group’s entities assess financial implications due to climate change

EC3 Coverage of the organization’s defined benefit plan obligations

Social Policy

EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Personnel Management

Wages in the VEB Group’s entities are not conditional upon employees’ gender

EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Personnel Management

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

Development Projects

Support to Small- and Medium-Sized Enterprises

Development of PPP Mechanisms

Support to Exports

Attracting Foreign Investments and Technologies

Developing the Talent Pool for Investment Operations

Charity

Responsible Business Practices

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts

Strategy Implementation. Sustainability Objectives and Initiatives

Investment Management

Integrated Territorial Development

Support to Innovative Projects

Environmental Stewardship and Energy Efficiency Projects

Support to Small- and Medium-Sized Enterprises

Development of PPP Mechanisms

Support to Exports

Attracting Foreign Investments and Technologies

Developing the Talent Pool for Investment Operations

Charity

Environmental Performance Indicators

EN DMA Management Approach

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Strategy Implementation. Sustainability Objectives and Initiatives

Management of Internal Environmental Impact

EN1 Materials used by weight or volume

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

EN2 Percentage of materials used that are recycled input materials

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Neither Vnesheconombank nor the VEB Group entities use any materials classified as recycled or reused waste

EN3 Direct energy consumption by primary energy source

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

Neither Vnesheconombank nor the VEB Group entities use any nonrenewable energy sources

EN4 Indirect energy consumption by primary source

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

Neither Vnesheconombank nor the VEB Group entities use any nonrenewable energy sources

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Management of Internal Environmental Impact

EN7 Initiatives to reduce indirect energy consumption and reductions achieved

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Management of Internal Environmental Impact

EN8 Total water withdrawal by source

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Vnesheconombank and the VEB Group entities entered into contracts for utility services including water supply

EN9 Water sources significantly affected by withdrawal of water

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Vnesheconombank and the VEB Group entities entered into contracts for utility services including water supply

EN10 Percentage and total volume of water recycled and reused

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Neither Vnesheconombank nor the VEB Group entities re-use or recycle water in the course of their business

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities operate in protected areas and areas of high biodiversity value

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities operate in protected areas and areas of high biodiversity value

EN13 Habitats protected or restored

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities have impacts on biodiversity in the course of their business

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities have impacts on biodiversity in the course of their business

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities have impacts on biodiversity in the course of their business

EN16 Total direct and indirect greenhouse gas emissions by weight

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

EN17 Other relevant indirect greenhouse gas emissions by weight

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Management of Internal Environmental Impact

EN19 Emissions of ozone-depleting substances by weight

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities produce emissions of ozone-depleting substances in the course of their business

EN20 NO, SO, and other significant air emissions by type and weight

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities produce significant air emissions in the course of their business

EN21 Total water discharge by quality and destination

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

Vnesheconombank and the VEB Group entities entered into contracts for utility services including water discharge

EN22 Total weight of waste by type and disposal method

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

EN23 Total number and volume of significant spills

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

In 2013, no significant spills were recorded in Vnesheconombank and the VEB Group entities

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities are engaged in any activities related to hazardous waste in accordance with Annexes I, II, III and IV of the Basel Convention

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Neither Vnesheconombank nor the VEB Group entities have significant impacts on any water bodies in the course of their business

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Management of Internal Environmental Impact

EN27 Percentage of products sold and their packaging materials that are reclaimed by category

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

This indicator is not relevant since neither Vnesheconombank nor the VEB Group entities use packaging materials in the course of their business

EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

In 2013, neither Vnesheconombank nor the VEB Group entities were liable to any significant fines and non-monetary sanctions for noncompliance with environmental laws and regulations

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Management of Internal Environmental Impact

EN30 Total environmental protection expenditures and investments by type

Principle 7. Businesses should support a precautionary approach to environmental challenges

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies

Management of Internal Environmental Impact

Labor Practices Performance Indicators

LA DMA Management Approach

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Personnel Management

Social Policy

Occupational Health and Safety

LA1 Total workforce by employment type, employment contract, and region, broken down by gender

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Personnel Management

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Personnel Management

Total headcount and personnel turnover rate in 2013, by age group and gender

LA3 Benefits provided to full-time employees that are not provided to temporary or parttime employees, by significant locations of operation

Personnel Management

Social Policy

LA4 Percentage of employees covered by collective bargaining agreements

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

Personnel Management

Within the VEB Group entities, Bank BelVEB and Prominvestbank have entered collective bargaining agreements between the respective employers and trade unions

LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements

Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

The employees are notified of significant operational changes in Vnesheconombank and the VEB Group entities in accordance with the Labor Code of the Russian Federation. The current version of the collective agreement does not provide for the definition of the minimum employees’ notice period regarding the employer’s significant operational changes

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Occupational Health and Safety

Occupational Injury, Occupational Disease, Iost Day and Workplace Absence Rates in 2013 by Gender

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Neither Vnesheconombank nor the VEB Group entities provide training or counseling services regarding serious diseases for employees, their families and community members

LA9 Health and safety topics covered in formal agreements with trade unions

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

The current version of the collective agreement provides for that the trade union and the employer annually approve the trade union’s plan of mass cultural and health and fitness events

LA10 Average hours of training per year per employee by gender, and by employee category

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Personnel Management

Average Number of Training Hours per Employee in 2013, by Employee Gender and Category

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Personnel Management

LA12 Percentage of employees receiving regular performance and career development reviews, by gender

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Share of Employees Subject to Periodical Performance and Career Development Appraisals in 2013, by Gender

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Corporate Governance System

Personnel Management

LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Basic salary of Vnesheconombank’s employees is not conditional upon employees’ gender

LA15 Return to work and retention rates after parental leave, by gender

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

Vnesheconombank and the VEB Group entities strictly comply with regulations of the applicable law and guarantee employees to retain their positions during parental leave as required by the applicable law

Human Rights Performance Indicators

HR DMA Management Approach

Principles 1-6

Personnel Management

HR4 Total number of incidents of discrimination and corrective actions taken

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2. Businesses should make sure that they are not complicit in human rights abuses

Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

In 2013, no incidents of discrimination were revealed in the practices of Vnesheconombank and the VEB Group entities

HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2. Businesses should make sure that they are not complicit in human rights abuses

Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

Neither Vnesheconombank nor the VEB Group entities are engaged in any activities in which the right to exercise freedom of association and collective bargaining may be at risk

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2. Businesses should make sure that they are not complicit in human rights abuses

Principle 5. Businesses should uphold the effective abolition of child labor

Neither Vnesheconombank nor the VEB Group entities are involved in any activities which may have significant risk for incidents of child labor

HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2. Businesses should make sure that they are not complicit in human rights abuses

Principle 4. Businesses should uphold the elimination of all forms of forced and compulsory labor

Neither Vnesheconombank nor the VEB Group entities are engaged in any activities which may have significant risk for incidents of forced or compulsory labor

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2. Businesses should make sure that they are not complicit in human rights abuses

Neither Vnesheconombank nor the VEB Group entities are engaged in any activities which may have significant risk for incidents of violations involving rights of indigenous people

HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2. Businesses should make sure that they are not complicit in human rights abuses

In 2013, neither Vnesheconombank nor the VEB Group entities recorded any grievances related to human rights filed, addressed and resolved through formal grievance mechanisms

Society Performance Indicators

SO DMA Management Approach

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2. Businesses should make sure that they are not complicit in human rights abuses

Responsible Business Practices

Stakeholder Engagement

SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Investment Management

Integrated Territorial Development

Support to Innovative Projects

Environmental Stewardship and Energy Efficiency Projects

Support to Small- and Medium-Sized Enterprises

Development of PPP Mechanisms

Support to Exports

Attracting Foreign Investments and Technologies

Developing the Talent Pool for Investment Operations

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures

Principle 10. Businesses should work against corruption in all forms, including extortion and bribery

Responsible Business Practices

Share of Employees Trained and Briefed on Anti-Corruption Policies and Procedures and AML/CTF Initiatives in 2013

SO4 Actions taken in response to incidents of corruption

Principle 10. Businesses should work against corruption in all forms, including extortion and bribery

Responsible Business Practices

SO5 Public policy positions and participation in public policy development and lobbying

Principles 1-10

Development Projects

Impact on Investment Climate Improvement

Participation in the UN Global Compact and Promotion of Sustainability Principles

Stakeholder Engagement

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country

Principle 10. Businesses should work against corruption in all forms, including extortion and bribery

In 2013, neither Vnesheconombank nor the VEB Group entities made financial and/or in-kind contributions to political parties, politicians, and related institutions. Vnesheconombank is not entitled to support political parties in accordance with Federal Law No. 95-FZ “On Political Parties” dated 11 July 2001

SO7 Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes

In 2013, no legal actions for anticompetitive behavior were recorded against Vnesheconombank and the VEB Group entities.

Responsible Business Practices

SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations

In 2013, neither Vnesheconombank nor the VEB Group entities were liable to any significant fines or non-monetary sanctions

Product Responsibility Performance Indicators

PR DMA Management Approach

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

About the Report

Responsible Business Practices

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

This indicator is not relevant since Vnesheconombank and the VEB Group entities’ performance does not have significant health and safety impacts

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

This indicator is not relevant since Vnesheconombank and the VEB Group entities’ performance does not have significant health and safety impacts

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility

This indicator is not relevant for Vnesheconombank and the VEB Group entities since their performance does not provide for labeling

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction

Responsible Business Practices

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights

Responsible Business Practices

Statistics of Customer Inquiries in 2013

PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services

In 2013, neither Vnesheconombank nor the VEB Group entities were liable to any significant fines for noncompliance with laws and regulations concerning the provision and use of products and services

Share of employees trained and briefed on anti-corruption policies and AML/CTF initiatives in 2013*

Entity Executives Specialists
Bank BelVEB 40.1 74.9
Prominvestbank 47.5 58.4
GLOBEXBANK 75.3 67.0
SME Bank 100.0 95.3
Eximbank of Russia 85.7 70.0
Sviaz-Bank 36.4 44.7
VEB-Leasing 7.0 8.5
EXIAR 13.6 2.8
VEB Capital 55.9 22.9
RDIF 91.6 87.5

* Since Federal Law No. 115-FZ “On Anti-Money Laundering and Counter Terrorist Financing” dated 7 August 2011 does not apply to VEB Engineering, NCDC, The Far East and Baikal Region Development Fund, and VEB Innovations Fund, the Table does not show the share of employees of these entities trained and briefed on AML/CTF. These entities and FCPF did not run any training courses on anti corruption policies and procedures in 2013.

Occupational injury, occupational disease, lost day and workplace absence rates in 2013 by gender

Entity Gender Total number of days of absence for any disability reasons, save for maternity or childcare leaves Total number of hours worked (man-hours) in 2013 Total number of days worked (man-days) in 2013 Occupational injury rate Occupational disease rate Lost day rate Workplace absence rate
No accounting by gender is run.Bank BelVEB - 15,323 3,725,400 465,675 0 0 0 6,580.98
Prominvestbank M 5,791 2,384,322 298,040 0.08 0 6.21 3,886.06
F 15,678 3,889,985 486,248 0 0 0 6,448.56
No accounting by gender is run.GLOBEXBANK - 9,386 3,496,299 437,037 0.06 0 1.72 4,295.28
SME Bank M 1,027 220,651 27,581 0 0 0 7,447.05
F 1,865 409,780 51,223 0 0 0 7,281.94
Eximbank of Russia M 300 95,329 11,916 0 0 0 5,035.19
F 1,046 155,735 19,467 0 0 0 10,746.46
Sviaz-Bank M 4,141 1,953,081 242,570 0 0 0 3,414.27
F 16,078 4,339,523 537,215 0 0 0 5,985.69
VEB-Leasing M 1,477 1,267,341 159,158 0 0 0 1,856.02
F 3,466 1,293,766 162,417 0 0 0 4,268.03
EXIAR M 187 95,108 11,963 0 0 0 3,126.31
F 153 65,236 8,269 0 0 0 3,700.57
VEB Capital M 89 75,140 10,175 0 0 0 1,749.39
F 97 54,555 6,841 0 0 0 2,835.84
VEB Engineering M 22 39,232 4,904 0 0 0 897.23
F 13 28,872 3,609 0 0 0 720.42
FCPF M 88 21,541 2,891 0 0 0 6,087.27
F 142 35,104 4,712 0 0 0 6,027.53
RDIF M 0 125,239 16,285 0 0 0 0
F 8 90,496 11,440 0 0 0 139.86
NCDC M 30 59,357 7,477 0 0 0 802.46
F 0 46,637 5,875 0 0 0 0
The Far East and Baikal Region Development Fund M 7 48,842 6,482 0 0 0 215.98
F 40 18,728 2,414 0 0 0 3,314.00
VEB Innovations Fund M 0 69,160 1,729 0 0 0 0
F 0 39,520 988 0 0 0 0

Total headcount and personnel turnover rate in 2013, by age group and gender

Entity’s total headcount as of 31 December 2013 Total number of employees recruited by the entity in 2013 Total number of employees dismissed by the entity in 2013 Personnel turnover rate in 2013
Vnesheconombank Other entities of the Group Total Vnesheconombank Other entities of the Group Total Vnesheconombank Other entities of the Group Total Vnesheconombank Other entities of the Group Total
Total, including 2,235 14,572 16,807 340 3,723 4,063 131 3,904 4,035 0.06 0.27 0.24
Men 1,044 4,811 5,855 168 1,392 1,560 87 1,402 1,489 0.04 0.10 0.09
below 30 239 1,483 1,722 100 824 924 23 637 660 0.01 0.04 0.04
31 — 50 510 2,418 2,928 58 483 541 31 585 616 0.01 0.04 0.04
from 51 inclusive 295 910 1,205 10 85 95 33 180 213 0.01 0.01 0.01
Women 1,191 9,761 10,952 172 2,331 2,503 44 2,502 2,546 0.02 0.17 0.15
below 30 278 3,874 4,152 93 1,563 1,656 11 1,084 1,095 0.00 0.07 0.07
31 — 50 696 4,824 5,520 76 712 788 19 1,107 1,126 0.01 0.08 0.07
from 51 inclusive 217 1,063 1,280 3 56 59 14 311 325 0.01 0.02 0.02

Share of employees subject to periodical performance and career development appraisals in 2013, by gender

Entity Number of employees appraised on official performance and career development Total headcount in the entity Share of employees appraised on official performance and career development, %
Men Women Men Women Men Women
Vnesheconombank 666 919 1,044 1,191 63.8 77.2
Bank BelVEB 0 0 707 1,587 0 0
Prominvestbank 978 1,617 1,137 2,494 86.0 64.8
GLOBEXBANK 0 0 635 1,522 0 0
SME Bank 0 0 175 216 0 0
Eximbank of Russia 0 0 60 99 0 0
Sviaz-Bank 0 0 1,085 2,725 0 0
VEB-Leasing 0 0 740 888 0 0
EXIAR 50 41 52 41 96.2 100
VEB Capital 4 3 39 33 10.3 9.1
VEB Engineering 0 0 27 18 0 0
FCPF 0 0 12 25 0 0
NCDC 30 24 30 27 100 88.9
The Far East and Baikal Region Development Fund 0 0 30 16 0 0
RDIF 49 53 74 67 66.2 79.1
VEB Innovations Fund 0 0 7 4 0 0
Total for Vnesheconombank Group 1,777 2,657 5,854 10,953 30.4 24.3

Average number of training hours per employee in 2013, by employee gender and category

Entity Employee category Total number of training hours per employee category (academic hours) Total number of the employee category as of 31 December 2013 (persons) Average number of training hours per employee of the category
Men Women Men Women Men Women
Vnesheconombank Executives 1,908 2,102 385 355 4.96 5.92
Specialists 11,077 12,195 507 835 21.85 14.60
Other employees (technical staff) 0 0 162 21 0 0
No accounting by gender is run.Bank BelVEB Executives 12,675 494 25.66
Specialists 13,677 1,703 8.03
Other employees (technical staff) 0 97 0
Prominvestbank Executives 16,676 14,498 314 335 53.11 43.28
Specialists 26,833 52,582 523 1,551 51.31 33.90
Other employees (technical staff) 640 0 300 608 2.13 0
GLOBEXBANK Executives 674 1,978 82 144 8.22 13.74
Specialists 2,783 10,081 495 1,244 5.62 8.10
Other employees (technical staff) 17 0 46 9 0.37 0
SME Bank Executives 1,009 506 18 9 56.06 56.22
Specialists 2,681 3,530 139 207 19.29 17.05
Other employees (technical staff) 0 0 18 0 0 0
Eximbank of Russia Executives 91 25 8 6 11.38 4.17
Specialists 200 607 38 91 5.26 6.67
Other employees (technical staff) 0 0 14 1 0 0
Sviaz-Bank Executives 4,285 6,009 242 354 17.71 16.97
Specialists 5,576 19,769 684 2,284 8.15 8.66
Other employees (technical staff) 42 52 159 87 0.26 0.60
VEB-Leasing Executives 6,716 6,427 149 121 45.07 53.12
Specialists 21,116 36,387 547 749 38.60 48.58
Other employees (technical staff) 0 0 44 18 0 0
EXIAR Executives 459 376 17 5 27.00 75.20
Specialists 858.5 388 36 36 23.85 10.78
Other employees (technical staff) 0 0 0 0 0 0
VEB Capital Executives 235 550 18 16 13.06 34.38
Specialists 99 216 18 17 5.50 12.71
Other employees (technical staff) 0 0 3 1 0 0
VEB Engineering Executives 0 0 3 0 0 0
Specialists 0 0 23 18 0 0
Other employees (technical staff) 0 0 1 0 0 0
FCPF Executives 40 8 5 5 8.00 1.60
Specialists 24 146 7 20 3.43 7.30
Other employees (technical staff) 0 0 0 0 0 0
NCDC Executives 0 80 12 4 0.00 20.00
Specialists 56 259 14 23 4.00 11.26
Other employees (technical staff) 16 0 4 0 4.00 0
The Far East and Baikal Region Development Fund Executives 280 72 16 7 17.50 10.29
Specialists 104 0 11 5 9.45 0
Other employees (technical staff) 0 0 3 4 0 0
RDIF Executives 640 177 14 10 45.71 17.70
Specialists 1,548 1,124 41 55 37.76 20.44
Other employees (technical staff) 0 0 19 2 0 0
VEB Innovations Fund Executives 20 10 2 1 10.00 10.00
Specialists 10 10 1 1 10.00 10.00
Other employees (technical staff) 0 0 2 1 0 0

Statistics of customer inquiries in 2013

Entity Number of inquiries Number of complaints
Individuals
Bank BelVEB 440 142
Prominvestbank 852,921 5,021
GLOBEXBANK 231 199
Sviaz-Bank 634,408 3,969
NCDC 18 0
Corporate and self-employed businessmen
Bank BelVEB 25 12
GLOBEXBANK 24 13
VEB-Leasing 3,507 18
NCDC 33 0
FCPF 70 0

Conclusion Based on the Results of the Non-Financial Audit of the Report

The Certificate of Public Assurance by Russian Union of Industrialists and Entrepreneurs