Corporate governance

• Development-Strategy-for-Bank-Ochrony-srodowiska-S.A.-for-the-years-2021-2023

Considering Environmental, Social and Governance (ESG) aspects in the Bank’s operations and in order to ensure effective implementation of the ESG strategy, an ESG Committee was established by decision of the Management Board in November 2021.

The purpose of the Committee is to exercise strategic oversight over the Bank’s ESG activities. The Committee is a platform for dialogue within the organisation on sustainable development.

It also serves as a consultation and advisory body for the Bank’s Management Board with respect to ESG activities. Its appointment also ensures regular, monthly monitoring of the implementation of the ESG strategy of Bank Ochrony Środowiska S.A.

The Committee is composed of two members of the Bank’s Management Board and four directors representing areas at BOŚ which are essential for the implementation of the ESG strategy.

BOŚ Bank S.A.  introduced a new aspect to the credit risk assessment process, i.e. the assessment of ESG risks of potential borrowers. Before taking a decision on financing entrepreneurs and local government units, we assess whether the client supports environmental protection (E), cares about society (S) and whether it has an appropriate corporate governance in place (G). The importance of non-financial factors in the opinion of entities is systematically growing. Along with the evolution of the capital market, the company's "quality" is perceived not only by its financial results, but also by its care for the environment, local community, customers, employees and shareholders. Assessing all these aspects allows you to assess whether the company operates in a sustainable development environment. The assessment of ESG risks takes into account such factors as: whether the conducted activity is in accordance with the environmental protection law, whether the activity does not lead to environmental pollution, whether workers' rights are complied with, whether the activity does not adversely affect local social relations, whether there are processes corruption, whether customer data is protected, etc. According to the new rules, the bank does not finance customers if it identifies risk in these areas and assesses it as critical, i.e. as a result of its materialisation or disclosure it may lose its creditworthiness or have a negative impact on the bank's image. This approach is reflected in the provisions of the existing Credit Risk Management Policy, which states that in the area of lending, the Bank takes measures to support the achievement of global climate change impact reduction targets, fully aware of the need to take into account environmental, social and corporate governance factors (ESG factors), which it considers in its approach to risk management and capital investment.

As a listed company, Bank Ochrony Środowiska S.A. attaches great importance to conducting its business in a sustainable and ethical manner, considering these factors as the most important principles of its operation, which stem directly from the bank's mission.

The Bank, as an institution of public trust, operates in accordance with applicable legal regulations, best market practices and this Code of Ethics. The Bank also complies with the "Principles of Good Banking Practice" adopted by the Polish Bank Association.

The Code of Ethics is a set of rules followed by all employees in the performance of their duties and describes the related basic principles of cooperation with business partners and contractors.

• Code of Ethics

• Anti-corruption policy

• Policy on Prevention and Management of Conflicts of Interest

The Bank operates in accordance with the rules laid down by the Supervisory Board for granting credit facilities, cash loans, bank guarantees, sureties and other commitments to:

- Members of the Bank’s governing bodies, persons holding managerial positions at the Bank, and entities having organisational or equity links with such members and persons;

- Subsidiaries and associates of the Bank, shareholders of the Bank, entities with equity or organisational links with the Bank’s shareholders, employees of the Bank, and at their request.

In accordance with the rules referred to above, lending products provided to such persons and entities should be granted on an arm’s length basis, with their creditworthiness assessed in accordance with the standard methods applied by the Bank. Decisions on granting financing, depending on the applicant and the amount of exposure, are made by the Bank’s Management Board and Supervisory Board by secret vote without the participation of the person concerned. Such transactions should be subject to obtaining prior opinion of the Bank’s Credit Committee, with the decision also made by secret vote.

• Privacy Policy

Bank Ochrony Środowiska S.A., in line with its previous practice, continuously and systematically pays the utmost attention to protecting and securing the data it processes. With utmost care, the Bank has implemented and continues to improve organisational and technical security measures corresponding to the best market standards, adequate to the risks related to the processing, in particular such as loss of confidentiality, integrity or availability of data.

Access to personal data shall be granted only to specifically authorised bank employees who have been trained in the safe processing thereof. Data processing takes place in a safe and business continuity resistant IT environment and in properly secured bank facilities.

The Bank also protects the information held on the basis of separate provisions of generally applicable law, including those concerning the obligation to keep bank secrets, confidential information or secrets of third parties.

• Regulations and other formal documents