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