ESG and Sustainable Development
Bank CenterCredit is a reliable bank having responsible attitude towards its customers, partners and the environment.
In July 2023, Bank CenterCredit joined the UN Global Compact and adheres to its principles in the areas of human rights, labor, environment and anti-corruption, promoting these principles among stakeholders and integrating them into its operations.
Bank CenterCredit supports all 17 UN Sustainable Development Goals, focusing on 9 priority SDGs and related sub-goals, where the Bank is able to make a visible impact.
Safe and decent working conditions for employees
- Social security
- Favorable moral and psychological climate
- Comfortable working conditions
- Free medical insurance
- Financial assistance to employees
- KPI-based staff performance assessment
- Regular human rights training for all employees, including discrimination and harassment in the workplace
Sociocultural, gender, age diversity
- Non-discrimination in any form in recruitment, appointment, daily work, and remuneration.
- Respect for the opinions of all employees, an inclusive working environment, and work in a team of like-minded people.
- According to the results of 2023, the share of women in the staff structure totaled 65%, among them more than 60% hold managerial positions
- Zero tolerance for sexual and non-sexual harassment, harassment and abuse
The goal of the "Key Employees" program is to enhance motivation among employees, increase productivity, and foster loyalty to the Bank. Participants receive support that helps them stay with the Bank and develop. The main KPI measuring the program's impact is employee turnover. For "key employees," it decreased from 6.3% in 2022 to 2.4% in 2023, highlighting the program's effectiveness in retaining talent. In 2023, 300 employees from various departments were recognized as "key employees."
In 2023, the "Leadership School" program was launched, aimed at the systematic development of leaders. At the start of the program in 2023, 60 employees underwent training, and currently, the number of participants has exceeded 180 leaders, including both new and experienced managers at all levels. The "Leadership School" was created by the Bank to improve work processes and increase managers' engagement in business processes. The quantitative KPI for the program's effectiveness is the engagement rate of the employees participating in the program.
The Board of Directors (BoD) of the Bank provides strategic management and control over the activities of the Bank's executive bodies. Members of the BoD are elected through a transparent procedure that takes into account the diversity of shareholder opinions, ensures that the composition of the BoD complies with legal requirements and allows for the election of independent directors. As part of the process for nominating members of the Board of Directors, the factor of diversity of the Board of Directors by nationality, ethnicity or country of origin is also taken into account.
In 2023, the Bank established the Sustainable Development Committee. The Committee's function is to supervise the development and implementation of the ESG and the Climate Strategy, as well as the management and assessment of climate risks and opportunities. The Sustainable Development Committee meets at least once a year to discuss climate issues.
The Bank improves its offices, saves energy and water, introduces paperless workflow, manages waste and acts in the interests of society and the state contributing to the quality of life of citizens, social and economic development and environmental sustainability.
- Assessment and mitigation of climate risks in the loan portfolio
- Financing of activities and projects that support sustainable development goals
- Gradual reduction of financing for projects that are contrary to sustainable development
BCC is the first Kazakhstani bank to develop and approve the Climate Strategy, thus strengthening its leadership in sustainable development and commitment to climate action.
The Climate Strategy is a strategic document containing goals and a set of measures and initiatives for the bank to achieve carbon neutrality. Amid the global transition to sustainability and carbon neutrality, development and implementation of the effective Climate Strategy will contribute not only to the bank’s risk management, promotion of climate transition and compliance with international best practices, but also to unveiling new opportunities for green economy financing.
Bank CenterCredit in liaison with the international consulting company EY has set interim and long-term targets pursuant to the science-based approach to reduce carbon footprint both for the bank’s own operations (by 2030, reduce emissions by 42% compared to 2023) and for the financed corporate loan portfolio (by 2030, reduce financed emissions by 42% in key sectors: energy, agriculture, metallurgy, manufacturing).
The Climate Strategy prioritizes building up the green finance portfolio. For the purpose of setting the green portfolio targets, a market analysis of green directions was performed to identify priority activities/projects for financing. Renewable energy and sustainable agriculture were identified as the priority green economy directions to be financed by the bank until 2030, with a potential market volume of ~$3.5 billion by 2030 in the Republic of Kazakhstan. Based on the results of the market analysis performed, targets for the green finance portfolio were set to achieve the target of KZT 400 billion by 2030.
It is planned that these objectives will be achieved through a number of initiatives developed. For example, financing target projects in the area of sustainable development on special terms (new loan products), development of partnerships, and launching new retail green products.
“Implementation of the bank’s Climate Strategy not only strengthens our positions as a leader in sustainability, but also unveils unique opportunities for innovation and growth. We are proud to be the first bank in the region to launch such a strategy. We are confident that this will strengthen the trust of our customers and partners, and create added value for all stakeholders. As part of our commitment to sustainable development, the bank intends to actively implement the Climate Strategy and monitor its results, which will allow us to achieve our goals and maintain full transparency in a dialog with all stakeholders in the process”, stated Ruslan Vladimirov, President of JSC Bank CenterCredit.
The developed Climate Strategy is a significant step both for the bank itself and for Kazakhstan towards achieving sustainable development goals. The Climate Strategy, developed as part of a major ESG transformation, focuses not only on risk management, but also on development and implementation of new opportunities for the green economy. The decarbonization targets set by the bank are extremely ambitious and ahead of national targets, demonstrating leadership in the sustainability and ESG agenda.
*License No.1.2.25/195/34 dated 03 February 2020 issued by the ARDFM RK
On September 24, a round table organized by the Central Asian Institute for Environmental Research (CAIER) in collaboration with the International Finance Corporation (IFC) and with the participation of ARRFM, took place on the topic: "Development of the ESG Agenda in the Financial Sector. The Sustainable Risk Management Guide." Madina Abylkassymova, Chairperson of the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan, opened the round table with a welcoming speech, emphasizing the importance of the ESG agenda for the financial sector.
Representatives from the IFC discussed global trends in ESG risk management and shared their vision of applying IFC standards in the Kazakhstani financial market. ARRFM presented an updated roadmap for the implementation of ESG principles in the financial market and shared plans for incorporating the ESG risk management system into the practices of financial organizations as part of the ESG Risk Management Guide.
The round table was attended by A. Ovsyannikova, CFO, Vice President, and Member of the Management Board, and A. Ibraev, CSO and Head of the Sustainability Department (ESG). Representatives of the bank participated in the discussion on sustainable development risk management issues. During the discussion, Arnur Ibraev shared the key results of the bank's ESG transformation, discussed the experience of implementing the responsible financing policy, and outlined the plans within the framework of the bank's climate strategy.
The round table participants noted the bank's high score within the S&P Global Corporate Sustainability Assessment (S&P Global CSA). Experts emphasized the significance of this achievement for the bank and highlighted that the high score once again confirms the bank's commitment to high standards of environmental and social responsibility.
Note: ARRFM - Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan; CAIER - Central Asian Institute for Environmental Research; IFC - International Finance Corporation.
On 2 September 2024, JSC Bank CenterCredit was assigned a score of 61/100 in the S&P Global Corporate Sustainability Assessment (S&P Global CSA), which is the best result among second-tier banks in the Republic of Kazakhstan.
The Bank received 65 points for the Environmental Dimension (E), 56 points for the Social Dimension (S) and 63 points for the Governance & Economic Dimension (G).
In the context of its ranking across the global banking industry, Bank CenterCredit is ranked in the Top 10% (91st percentile) among banks from around the world participating in the S&P Global CSA in terms of the 2023 financial results (BNK - Banks sector).
Bank CenterCredit’s score of 61 coupled with the 91st percentile demonstrates the Bank’s commitment to sustainability practices, which is particularly important given the growing focus of the government, investors and other stakeholders on the ESG profile of financial institutions, and emphasizes its leadership compared to global peers in the banking sector.
Finvizier Consultancies DMCC (UAE, Dubai) acted as the Bank's consultant for obtaining the S&P Global CSA ESG assessment.
The S&P Global Corporate Sustainability Assessment is an annual evaluation of companies’ sustainability practices conducted by S&P Global, in which companies are rated on a scale from 0 to 100, where 100 is the best score. The S&P Global CSA is recognized as one of the most sought-after, useful and high-quality ESG assessments by many investors and companies according to the Rate the Raters 2023 Report by The Sustainability Institute by ERM.
S&P Global is an American publicly traded holding company, which includes S&P Global Market Intelligence providing the ESG scoring services to companies worldwide.
On March 2 a new branch of the Dos Ortopedia company, which develops solutions for people with disabilities, was opened in Shymkent.
During the event, wheelchairs were donated to improve the living conditions of people with disabilities. The initiative was implemented with the support of Bank CenterCredit.
In turn, representatives of “Dos Ortopedia” emphasized the significance of this event.
“Through this partnership, we are moving towards our goal of affordability and quality of life for all. By providing wheelchairs from European brands, we not only provide mobility tools, but also increase awareness of quality rehabilitation products, preventing the choice of low-quality products. We give not only means of transportation, but also the key to an independent life,” said Sultan Konyrbasov, head of the marketing and PR department of Dos Ortopedia.
“Supporting social projects and contributing to society are important aspects of the bank’s activities. Such initiatives to ensure equality are one of the steps towards a more sustainable, fair, humane and developed society and this is important for all of us,” said PR director of Bank CenterCredit Saken Nigmashev.
2024-04-16
On April 12, the final of the Smart Space competition took place in Almaty, bringing together more than 80 project teams from 40 leading educational institutions of Kazakhstan. The competition aimed to stimulate the interest of the younger generation in scientific creativity and technological entrepreneurship in the field of high technologies, particularly in the space industry.
The goal of the project is to select and support the best project teams for their further inclusion in the business projects of the initiative industrial-innovative and scientific-educational program "International Space Networking Community (MK2S)," which unites education, science, and entrepreneurship.
Bank CenterCredit supported the project, emphasizing its commitment to supporting scientific and educational initiatives aimed at developing the country's innovative potential and involving young people in breakthrough research and development.
"Kazakhstan Smart Space is not just a platform for exchanging knowledge and innovative ideas but also a vivid example of our shared commitment to progress, innovation, and the development of young talent. Bank CenterCredit values the opportunity to contribute to the scientific potential and creativity of youth, especially in the field of education. We are convinced that the younger generation plays a key role in the exploration and conquest of space," said Didar Khalyk, a representative of Bank CenterCredit.
During the Smart Space competition, master classes, teleconferences with thought leaders in the fields of TRIZ, PRIZ, STEM, and STEAM, presentations of internship and acceleration program opportunities, as well as tasks from leading partners in the space industry, were conducted. The main event was the Space Cup KZ Smart Space 2024 tournament, where teams competed for the title of "Best Young Project Manager in the SpaceTech field." Winners in three age categories: 7-12 years, 12-16 years, and 16-22 years, were awarded various prizes, including a tour to the Baikonur Cosmodrome and annual subscriptions to the PRIZ Guru Hub platform.
2024-04-12
On April 10, a ceremonial opening of the Hall dedicated to the memory of Albina Leonovna Kotova and the Science and Technology Park of KazNMU took place at the Kazakh National Medical University named after Sanzhar Asfendiyarov, with the support of Bank CenterCredit.
The Science and Technology Park at the Kazakh National Medical University represents a modern innovation center that combines academic and scientific resources with industry and business opportunities. This center promotes active collaboration between academic and scientific groups, startups, pharmaceutical companies, and other participants in the innovation sphere.
"The KazNMU Science and Technology Park is not just a building or a complex of laboratories. It is a place where ideas and innovations meet, where students and researchers can bring their boldest projects to life, and where our specialists, scientists, laboratory technicians, and representatives of the Endowment Fund are called upon to help innovators implement their scientific ideas. The opening of our Science and Technology Park confirms our commitment to innovation and quality education. Here, we will develop advanced medical technologies, conduct research that will help us tackle modern healthcare challenges, and prepare the future generation of medical professionals ready to face future challenges," noted Marat Shoranov, Rector of KazNMU.
The KazNMU Technopark will integrate the existing structures of the university, including the Department of Science with its divisions, the Educational and Scientific Center for Neurology and Applied Neurosciences, the Data Center, the Research Institute of Fundamental and Applied Medicine named after Atchabarov, which already houses five modern laboratories, the Scientific and Educational Pharmacopoeia Center, and the vivarium.
"We are pleased to participate and contribute to the development of education in the country. Bank CenterCredit and the Kazakh National Medical University named after S.D. Asfendiyarov have been reliable partners for many years. We are confident that the new Albina Leonovna Kotova Hall and the Science and Technology Park will become an excellent platform for training the new generation of healthcare professionals and help the university reach new heights," noted Ruslan Vladimirovich, President of Bank CenterCredit.
2024-04-08
Bank CenterCredit will allocate 200 million tenge from its own funds to assist the affected regions of Kazakhstan. The funds will be directed towards recovery efforts in the impacted areas.
"We deeply empathize with everyone affected by the disaster. We hope that our contribution will help restore normal life in the affected regions as soon as possible," commented the press service of Bank CenterCredit.
The bank is monitoring the situation and will continue to provide assistance based on the needs of the affected areas.
According to the Ministry of Emergency Situations, residents of Atyrau, Aktobe, Akmola, Kostanay, West Kazakhstan, North Kazakhstan, and Pavlodar regions have been affected by the floods to date.
Astana, 13 August 2024
Bank CenterCredit took part in the closingevent of the United Nations Development Program (UNDP) project “Reducing the Risks of Investing in Renewable Energy Sources” (RES).
The event brought together representatives of public authorities, international organizations, energy and financial sector of Kazakhstan.
The UNDP presented the results of the Project aimed at reducing risks for investments in the green energy sector in Kazakhstan. During the event, experts shared their experience in implementing RES projects, discussed the industry prospects and plans for further implementation of financial and non-financial support facilities.
Bank CenterCredit, as an active participant in Green Finance Programs, shared its experience in responsible and green financing. ArnurIbrayev, Head of Sustainable Development (ESG) Directorate, told about the Bank’s ESGtransformation and integration of responsible and green financing principles into the Bank’s operations. He also noted the successful implementation of joint green financing programs with EBRD and UNDP in the field of RES and green technologies.
This year, the Bank has developed and approved the Climate Strategy, a strategic document containing objectives and a set of measures and initiatives for the Bank to achieve carbon neutrality. The report describedan approach to setting green portfolio growthtargets.
About the UNDP Project “Reducing the Risks of Investing in RES”:
The Project is implemented by the UNDP in partnership with the Ministry of Energy of the Republic of Kazakhstan with financial support from the Global Environment Facility (GEF), and is aimed at promoting investments in RES in Kazakhstan by reducing financial and non-financial risks for investors.
On 27 August 2024, Almaty hosted the award ceremony and opening of the exhibition of the finalist’s works of the “Protection of Ice Massifs” Creative Competition held as part of the V National Social Eco-campaign TURAQTY JOL with the support of Bank CenterCredit. The event highlighted the importance of preserving glaciers and drew attention to the problem of melting glaciers.
Arnur Ibrayev, Head of ESG Directorate at Bank CenterCredit, noted the importance of the Bank’s involvement in such projects: “We are delighted that the competition has brought together so many talented people who care about our planet. Your works focus the attention on critical environmental issues, and we are privileged to be the UNESCO’s partner in implementing such projects”. It is worth noting that Bank CenterCredit actively supports environmental protection initiatives.
The winners were awarded in three categories: visual arts, applied arts and photography. The works of the competition finalists reflect their creative approach to the environmental challenges we face today.
“I would like to express my gratitude to the organizers of the creative competition held within the framework of the National Social Eco-Campaign TURAQTYJOL. The event was held at a high level, and this project gave us the opportunity to express our idea on canvas and contribute to the promotion of ecological culture. I am very happy that I was able to be a part of this significant initiative,” said Asemay Yermakhan, a winner of the Community Choice award.
TURAQTY JOL is an educational initiative aimed at instilling in the younger generation a careful attitude towards their homeland and environmental values. This year, the Project has been implemented by the Kazakhstan National Federation of UNESCO Clubs with the support of Bank CenterCredit, Chevron and Shymbulak Mountain Resort.