Corporate Social Responsibility

Sustainability approach is organically integrated in RusAg’s core business and operations. The Bank’s sustainable business practices link back to its mission, vision, and values and are targeted at ensuring national agribusiness development, the country’s food security, increasing financial literacy and upgrading the overall welfare of the rural population.

RusAg is implementing multiple initiatives for sustainable development. The Bank established special eco-fund to support the sustainable development of agribusiness; helps clients source finance for environmental projects; communicates the best agricultural practices and ESG (Environmental, Social, and Governance) principles to clients from agribusiness at its Farmer’s School; develops rural areas, helps create jobs and implements a programme for agro tourism.

RusAg works with both large corporate clients, providing them with a full range of green financing, and with retail clients, providing a wide range of investment products aimed at ESG. Taking care of the environment by involving customers and employees in environmental initiatives is a smart approach for banks working in the modern world.

The Organica Foundation, supported by the Bank, promotes the philosophy of organic consumption, develop organic agriculture and support Russian organic producers. The Foundation focuses on the comprehensive development and export of organic products, while one of its key objectives is to promote organic products among multiple target audiences. The Foundation finances programmes and projects to support organic producers, facilitate sponsorship, promote and enhance positive public attitude towards organic producers and to work with federal and regional state authorities to deliver government policy in organic production regulation.

Approved by RusAg Management Board the Corporate Ethics Code (hereafter – CEC or the Code) has been in effect since 2012. It contributes to maintaining the good business image of the Bank, respecting the interests of the its customers, business partners and employees, as well as shaping a single corporate culture based on strict observance by all employees of the current legislation and high ethical standards adopted in RusAg.

CEC regulates behaviour standards to be followed by the Bank’s employees in their teamwork, when communicating with customers and counterparties, as well as when liaising with government and local authorities, political, religious, and public and other organizations. The principles set forth in the Code are incorporated in the Bank’s internal documents and serve as guidelines for the employees in their activities.

Guided by zero tolerance of corruption in whatever form or manifestation and complying with anti-corruption laws, Russian Agricultural Bank uses systemic efforts to improve its anti-corruption practices in accordance with its Anti-Corruption Policy.

These efforts include:

• taking organizational, explanatory and other comprehensive actions to ensure that the Bank’s employees comply with any prohibitions, restrictions and requirements established for anti-corruption purposes;

• analyzing staff compliance with prohibitions, restrictions and requirements established for the purpose of combating corruption, including control measures for the purpose of possible detection of conflicts of interest or corruption offenses;

• carries out work on the formation of a negative attitude towards corruption among the employees of the Bank.

Internal social policies implemented at Russian Agricultural Bank are designed to recognize employees’ merits and fairly assess their contribution to achieving tasks set by the shareholder. The Bank’s non-financial motivation includes: commendations, letters of appreciation and other incentives awarded to its most effective employees. The Bank adheres to its principles of creating a favorable working environment, supportive of healthy lifestyle practices and skill development for its employees. In its internal social policy, the Bank promotes personnel protection based on principles of responsibility, non-discrimination and mutual respect. The Bank’s employees are eligible for voluntary medical insurance, occupational accident insurance and corporate retirement benefits.

RusAg has adopted and implements voluntary environmental responsibility principles to preserve and restore natural resources, and to reduce the environmental footprint from the Bank’s activities, as well as to raise social responsibility awareness. When implementing voluntary ecological responsibility mechanisms, the Bank complies with local and international ecological standards and norms.

As part of enhancing its environmental and social responsibility, the Bank implements the following voluntary mechanisms:

• constant monitoring and evaluation of the Bank’s activities related to input (raw materials, energy, water) and output (emissions, discharges, waste) flows, including through the development of a system for standardization and monitoring of relevant indicators;

• minimization of the direct environmental impact, including the actions of the Bank's personnel and business processes, the use of natural and energy resources, including by improving the quality of consumption management, standards of production of goods and services by the Bank’s suppliers and contractors (electricity (light, heating / cooling of premises, elevators and equipment), water, phased replacement of fluorescent lamps with LED ones, waste disposal / recycling (industrial, household, food), the Bank organized separate waste collection;

• strengthening the Bank’s role in the development of environmental responsibility mechanisms for its customers, among other things, due to participation in financing environment preservation and recovery projects, development and use of recoverable energy sources;

• promotion of environmental responsibility mechanisms by holding socially important actions aimed at environment protection, preservation, and recovery;

• introducing standards and rules of environmental responsibility of the Bank’s personnel into its corporate culture, including the understanding of purposes and methods of work incorporating the mechanisms of environmental responsibility and commitment to environment preservation.

The Bank works towards making its purchasing processes transparent, efficient and non-discriminatory prevents unreasonable restraints on competition and promotes compliance with the Russian Federal Procurement Law. The Bank publishes information on its procurement activities online at www.zakupki.gov.ru. To encourage fair competition, as well as cost optimization, the Bank conducts electronic procurement procedures via auctions/requests for proposals and other methods.

Volunteer projects evidence that the Bank’s staff upholds and embraces the Bank’s commitment to socially responsible practices. The Bank actively engages its staff in volunteer projects benefiting local communities. The key projects that have helped enhance the Bank’s corporate values are the Donor’s Day, Volunteer Descent and Financial Literacy. The Volunteer Descent project supports socially-oriented organizations such as orphanages, II WW veterans, elderly people, children without parental custody, Donor Days and ecology related initiatives.

As a corporate citizen committed to meeting societal needs and expectations, Russian Agricultural Bank extends tangible help to local communities via charitable activities, sponsorships and donations. The Bank promotes philanthropic activities with emphasis on key priorities of Russia’s social and economic development and defined by the Bank shareholders. Russian Agricultural Bank is engaged in philanthropic activities in five key areas relating to community support, education, spiritual education, sports and physical education; protection of environment and biodiversity.

As part of “Financial support of individuals” the Bank provided financial aid to a state-financed institution supervising elderly people and a health care institution, two religious establishments, two non-profit funds and a veterans’ organization, children’s rehabilitation center, agricultural professional union. As part of “Sports and physical culture” the Bank provided financial aid to a regional non-governmental fund, non-profit fund of a sports society, seven non-profit sports organizations and two charity funds to promote popular sports in Russia.

The Bank’s Corporate University adds to the positive social impact of its core operations and its CSR activities by arranging financial literacy seminars for the Bank’s clients, business community and local authorities, people employed in agribusiness, household plot owners, schoolchildren, students and general public.

As part of the initiative Russian Agricultural Bank has sponsored TV shows and numerous large specialized events that raise awareness of agricultural issues. Putting priority on digital transformation the Bank also supports IT-related events.

Such projects in line with the Bank’s core specialization have a positive impact on building the Bank’s image among wider society and business and government elites.

Year after year Russian Agricultural Bank confirms its unwavering commitment to the CSR policies and performing its pivotal role of supporting prioritized economic sectors and various customer segments in urban and rural territories, thereby facilitating the resolution of broader social tasks leading to Russia’s economic prosperity.