ESG

The Sustainability Policy of Victoriabank serves as a framework for the Bank to manage and promote sustainability, responsible behavior and long-term value creation.

The Bank's sustainable approach focuses on three pillars:

• people

• performance

• medienvironment

The Bank's goal is to support clients in all their projects, providing support both in their development and in adapting to a constantly changing environment.

The Bank's objectives regarding sustainable financing

• developing financing portfolios in sustainable areas where we can encourage innovation and positive impact on the environment and communities (agriculture, medical and education sectors, manufacturing and services, creative industries)

• maintaining the top position in financing entrepreneurial businesses, increasing growth from start-ups to local champions

• ensuring financial inclusion by financing small businesses, individual entrepreneurs, family businesses

• developing a Green/climate finance loan portfolio. We will aim for our financing to be sustainable in terms of environmental impact, complementing traditional analysis with customer evaluation from the perspective of compliance with the provisions of the legislation in force in the environmental protection and employee health/protection fields

• increasing the weight of environmental and social aspects (E&S) in the analysis of files for juridical entities (analysis of non-financial factors, namely environmental and social risks in the evaluation process of our clients to determine eligibility for financing)

• continuous training of Bank’s resources

E&S risks are incorporated into our credit models, being adapted to the specifics of the field and the transaction. The Bank applies a credit model integrated in the process of analyzing environmental risk and social impact aspects, from the initial approach of excluding activities perceived as high risk, in order to adopt the best-founded credit decisions, based on the Exclusion List, developed according to the performance standards of the European Bank for Reconstruction and Development (EBRD) and the model of the Financial Group Banca Transilvania.

The Bank has adopted a unitary management system that is fully consistent with the objectives of good corporate governance, transparency of corporate information, protection of the interests of various categories of participants and efficient functioning on the banking market.

The Governance dimension

• Conducting the activity based on the principles of ethics, transparency and responsibility

• Implementation of compliance standards and prevention of corruption

• Integrating ESG risks into decision-making and building trust with customers and partners

The social dimension

• Ensuring a fair working environment, based on diversity, inclusion and respect for human rights

• Supporting employees through professional development programs and protecting their health and safety

• Contribution to the well-being of the community through education, health, culture projects and support for local initiatives

• Protecting customers' interests through transparency, fairness and products tailored to their needs

Victoriabank, part of the Financial Group Banca Transilvania, has zero tolerance for any corruption. The activities listed below are strictly prohibited

• receiving money or other benefits from clients or third parties for performing work duties or for intervening with an employee/manager to do or not do something that falls within their job duties

• payment or offering of a benefit that violates domestic laws or regulations

• payment or offering of a benefit to “obtain” business

• no facilitation payments. Facilitation payments are “ acceleration payments” or “extra fees,” usually small, unofficial amounts of money given to public or government officials in order to obtain, expedite, or delay a routine action to which someone has a legal right

The fundamental principles that employees must respect in their professional relationships with clients, authorities or other employees

• moral integrity

• impartiality and non-discrimination

• professionalism and transparency

• compliance with the provisions of the legislation in force

• confidentiality and professional secrecy

• prevention and combating corruption, money laundering and the financing of terrorist acts

• exercising prudent activity

• social responsibility

• avoidance of denigration

• protection of the reputation of the Bank and the Financial Group Banca Transilvania

A primary responsibility we have towards the environment is to reduce the impact of our activity on the environment. In this regard, the Bank is concerned with the implementation of the concept of sustainable development and wishes to make an important contribution to the observance of these principles among its clients, through the commitment to comply with national legislation on environmental and social issues applicable to the field of activity carried out. We are concerned with energy efficiency, renewable energy, transport and mobility, as well as responsible procurement practices.

Internally, there is ongoing concern about the carbon footprint of our own activities. The Bank's commitment to achieving this goal includes:

• Reducing our own environmental impact through efficient use of energy and resources, digitalization and responsible waste management

• Promoting green financial products and services that support low-carbon projects and the transition to a sustainable economy

The Environmental Policy of Victoriabank formalizes the commitment to support the principles of environmental sustainability and recognizes that a sustainable environment is essential for life and work itself. The Bank is committed to managing its activities to promote environmental sustainability, conserve and enhance natural resources, prevent environmental pollution and bring about continuous improvement of its environmental performance.

This objective is achieved through the following measures:

• Implementing measures to reduce and efficiently use energy resources, which include:

  • use of energy-efficient electrical and electronic devices

  • measuring, optimizing and monitoring actions to reduce total energy consumption

  • continuation of afforestation initiatives with the involvement of Bank employees

  • optimizing the fuel consumption of the car fleet

• Reducing greenhouse gas emissions, which can be achieved through:

  • modernization of heating, cooling and ventilation systems in buildings

  • replacing old systems with new, more efficient ones

  • gradual replacement of cars in the car fleet with more efficient vehicles that comply with the most efficient pollution standards, as well as with electric or plug-in hybrid cars

• Adopting a proper waste management process. Paper, plastic, electronic and electrical equipment, batteries and accumulators, lighting fixtures, printer cartridges and household waste are the main materials included in the waste management process. The Bank focuses on waste management methods, aiming at the continuous updating of all processes to reduce the amount of waste generated, in particular by reducing resource consumption and by selective waste collection.

• Reducing water consumption. In our daily activities, water is used only for sanitary purposes. The bank focuses on reducing the consumption of this important resource.

• Increasing awareness and knowledge of environmental issues among employees. These will provide the Bank's employees with clear and simple recommendations for the effective implementation of environmental protection measures.

• Compliance with environmental legislation and regulations.

The procedure for receiving and resolving complex complaints and requests within Victoriabank establishes the flow followed for resolving a complex complaint/request received from the Bank's clients or non-clients.

The Bank undertakes to ensure the confidentiality of the data that are the subject of the notification, as well as of personal data.

The channels for reporting are:

• At Victoriabank units, directly from the complainant, e-mail, letter, Complaints Register, telephone

• Through Customer Support Service (Customer Support, Online Support, reclamații@vb.md) directly from the complainant by phone, email (sugestii@vb.md), chat, social networks etc.

• Directly to the secretariat of the Bank's central office by letter, e-mail (icluding office@vb.md)

• Within Victoriabank subdivisions

The deadline for registering complaints/notifications on the Complaints Flow is a maximum of 1 working day from the date of receipt.

The general deadline for responding to a complaint/notification is 14 calendar days from its receipt, taking into account some exceptions, namely:

• In the case of notifications that cannot be responded to within 14 calendar days for objective reasons or reasons beyond Victoriabank's control, a provisional response will be sent, specifying the final resolution deadline, which will not exceed 30 calendar days from receipt

• In the case of complaints in which technical defects have been identified, which cannot be removed within 14-30 days, the investigation and response period to the complainant will be managed by the Complaints Specialist

Complaints registered and processed on the Complaints Flow will be archived electronically according to the Bank's internal procedures.