Sustainable Development and ESG

Responsible financing. Sustainability. Accountability.

AGROPROSPERIS BANK JSC recognizes its responsibility for the environmental and social impacts of its banking activities and views sustainable development as a key component of the bank’s long-term strategy.

We strive to combine financial stability and responsible business practices with care for the environment, respect for human rights, the creation of decent working conditions, and sound corporate governance.

Sustainable development encompasses the environmental, social, and governance aspects of our operations—ESG (Environmental, Social, Governance). The bank integrates the principles of sustainable development into its corporate governance, risk management system, internal controls, business processes, and corporate culture.

The bank’s activities in the area of sustainable development are aimed at supporting Ukraine’s economic stability, providing responsible financing for the agricultural sector and small and medium-sized businesses, and promoting the recovery and long-term development of the economy.

OUR PRINCIPLES

AGROPROSPERIS BANK JSC’s activities in the area of sustainable development are based on the following principles:

Responsibility and resilience — recognizing the impact of the bank’s activities on the economy, society, and the environment; ensuring financial and operational stability, business continuity, and the ability to adapt to contemporary challenges.
Integrity and transparency — adhering to high standards of business ethics, openness, accountability, and legality; preventing corruption and conflicts of interest.
Customer Focus and Responsible Financing — respecting the rights and interests of customers, providing transparent information about the terms of financial services, and assessing the environmental and social risks of projects financed by the bank.
Inclusivity and equal opportunity — respect for human dignity, non-discrimination, ensuring equal treatment, accessibility of financial services, and equal opportunities for employees and clients regardless of their individual characteristics and life circumstances.
Environmental and Social Responsibility — taking into account the environmental and social impacts of the bank’s activities and the projects it finances, the rational use of resources, the prevention of environmental pollution, and compliance with appropriate social and labor standards.
Support for Ukraine and its Recovery — promoting the development of Ukraine’s economy, the agricultural sector, small and medium-sized businesses, food and energy security, community resilience, and the country’s recovery.

RESPONSIBLE FINANCING AND ESG RISK MANAGEMENT

Financing that contributes to the development of Ukraine’s economy

Given the bank’s specialization, one of the key areas of responsible financing is Ukraine’s agribusiness enterprises and the entire supply chain—from agricultural production to storage, processing, logistics, and sales.

The bank supports financing for enterprises and projects that contribute to:

the development of agricultural production and food security;
the modernization of production facilities and the development of the processing industry;
the development of agricultural, warehousing, and logistics infrastructure;
improved energy efficiency and the use of renewable energy sources;
the development of small and medium-sized businesses;
technological modernization, digitalization, and productivity improvements;
the restoration and reconstruction of enterprises and Ukraine’s economic infrastructure.

When evaluating projects, the bank takes into account their potential impact on the environment, social conditions, employment, community development, the efficient use of natural resources, and other material factors.

Environmental and social assessment of projects

The bank assesses the environmental and social risks of projects in accordance with its Environmental and Social Policy.

This approach involves:

applying specific exclusion criteria to activities that do not meet the bank’s requirements;
verifying that projects comply with established environmental and social requirements;
identifying potential negative impacts on the environment and the social context;
assessing the nature and significance of environmental and social risks;
considering measures to prevent, minimize, and manage negative impacts;

The bank does not finance projects that fall under the exclusion criteria established by the Environmental and Social Policy or that do not meet the specified requirements.

Regardless of its participation in financing under the government program “Affordable Loans 5–7–9%,” the bank applies the relevant environmental and social requirements — including a defined list of exclusions and project assessment procedures — to all projects it finances.

ESG as a component of Risk Management

Environmental, social, and governance factors can affect the bank’s financial condition, asset quality, operations, reputation, and long-term sustainability.

The bank takes material ESG factors into account in its risk management processes, particularly when evaluating clients and financing projects.

Environmental and social factors that may be subject to assessment include:

the impact of operations on the environment;
the use of land, water, and other natural resources;
compliance with occupational health and safety requirements;
social conditions of operations and interactions with employees;
respect for human rights and the legitimate interests of stakeholders;
potential impacts of operations on local communities;
climate and other factors that may affect the sustainability of clients’ operations.

The bank’s approach to ESG risk management involves identifying material factors, assessing the nature and potential impact of relevant risks, incorporating the results of these assessments into financing decisions, implementing risk management measures, and conducting monitoring within established processes.

ENVIRONMENTAL RESPONSIBILITY (E)

The bank recognizes the importance of conserving natural resources and using energy responsibly. Environmental considerations are taken into account both when evaluating financing projects and within the bank’s own operations.

Key areas of environmental responsibility:

rational use of electricity, water, fuel, and other resources;
improving energy efficiency and developing energy-efficient technologies;
supporting the use of renewable energy sources;
preventing environmental pollution and minimizing negative impacts on the environment;
responsible waste management, including reuse and proper disposal;
consideration of environmental and climate factors in project evaluation and risk management;
reduction of paper use and the development of electronic document management.

As part of its own operations, the bank is developing digital processes and electronic document management, focusing on the efficient use of equipment and resources, and identifying opportunities for further improvement of internal processes while taking environmental aspects into account.

SOCIAL RESPONSIBILITY (S)

The bank adheres to the principles of respect for human rights, equal opportunity, non-discrimination, and a responsible approach toward customers, employees, partners, and society.

Key areas of social responsibility:

respect for the rights and legitimate interests of customers;
responsible provision of financial services;
transparent and understandable disclosure of the terms, costs, risks, and limitations of financial products;
respect for labor rights; prohibition of forced and child labor;
ensuring safe and healthy working conditions;
equal opportunities for employment, professional development, and career advancement;
preventing discrimination, mobbing, bullying, harassment, and other forms of unacceptable behavior;
promoting access to financial services and improving financial literacy;
supporting the development of entrepreneurship and communities, and addressing the needs of vulnerable groups in accordance with the bank’s established priorities.

Financial Inclusion and Accessibility

The bank focuses on the accessibility of financial services and strives to address the needs of various customer groups.

In this context, the following are important:

developing understandable and accessible financial products;
providing transparent information to customers;
addressing the needs of people with disabilities and those with limited mobility;
promoting financial literacy among the general public, agricultural producers, and small and medium-sized businesses.

Employees — the Foundation of Sustainable Development

The bank views its employees as a vital component of its resilience and long-term development.

We strive to create a safe and supportive work environment, ensuring fair treatment, equal opportunities, professional development, and respect for each employee’s individuality.

The bank does not tolerate forced or child labor, discrimination, mobbing, bullying, harassment, or other forms of unacceptable behavior. Employees have the opportunity to report violations and express concerns through the bank’s designated reporting channels.

The bank also pays special attention to employee safety and business continuity in the face of military challenges.

CORPORATE GOVERNANCE AND BUSINESS ETHICS (G)

Sound corporate governance is an essential prerequisite for the bank’s sustainable development.

The bank adheres to the principles of legality, integrity, transparency, accountability, and responsible decision-making. Environmental, social, and governance factors are taken into account in risk management and the implementation of strategic and operational objectives.

Key components of this area include:

the functioning of the internal control and risk management systems;
compliance with the Code of Corporate Ethics;
prevention of corruption and conflicts of interest;
compliance with legal and regulatory requirements;
the operation of mechanisms for confidential reporting of violations;
monitoring the implementation of sustainable development goals and measures.

IMPLEMENTATION OF THE SUSTAINABLE DEVELOPMENT STRATEGY

The sustainable development strategy sets out the bank’s long-term guidelines for integrating ESG principles into its business model, risk management, and operations.

The bank plans to gradually improve its approaches to:

integrating environmental and social factors into lending processes and the risk management system;
developing responsible financing;
improving the environmental performance of its own operations;
promoting financial inclusion and social inclusion;
improving the system for monitoring and evaluating sustainable development results;
raising employee awareness of ESG issues.

The Strategy is being implemented in phases, taking into account the bank’s defined goals, operational priorities, regulatory requirements, and changes in the external environment.

ENGAGEMENT WITH STAKEHOLDERS

The bank strives to maintain an open dialogue with customers, employees, partners, counterparties, government agencies, civil society organizations, and local communities.

We value feedback and view comments and suggestions as an important source of information for improving our approaches to sustainable development.

Reports and inquiries regarding environmental and social issues

Interested parties may submit questions, complaints, suggestions, or reports regarding the environmental and social aspects of the bank’s activities and projects financed by the bank:

Mailing address: 03124, Blvd. V. Havela, 6, building 3, Compliance Department.
E-mail: compliance@ap-bank.com.
Via the bank’s website: use the feedback form, selecting “Notices on environmental or social issues” as the subject.

Submissions are reviewed in accordance with the bank’s internal procedures, ensuring that the confidentiality of the information received is properly maintained.

DOCUMENTS AND MATERIALS

In its sustainable development activities, the bank is guided by internal documents that define the relevant principles, goals, and approaches: