Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable lending
• Net-zero emissions
• Social procurement
• Women’s empowerment
• Climate change
• Diversity, Equality and Inclusion

Environmental Achievements

• Obtained ISO 14001:2015 certificate for its environmental management system and successfully completed re-certification in 2021.
• Annual increase in total emissions (own operations) below 3%
• Annual increase in water consumption per employee below 1.5%
• Annual increase in printing paper per person below 0.4%
• Achieved 761,446 CO2kg/a in CO2 savings according to data provided by green facility fund providers.
• Renewable energy portfolio impact (avoided GHG emissions) amounted to 9,455 kg/a

Social Achievements

• Launched TBC Z, a new sub-brand targeting the young generation.
• Developed a Diversity, Equality and Inclusion Policy.
• Became a signatory of the UN Women Empowerment Principles (WEPs).
• Employee Net Promoter Score of 66%
• Employee Happiness Index of 85%
• Internal promotions rate of 19%
• Women in middle managerial positions at 38%

Governance Achievements

• Established an ESG and Ethics Committee at the Board level and at the Supervisory Board level of JSC TBC Bank.
• Achieved Hampton-Alexander gender diversity targets and Parker Review requirement for board diversity.
• Incorporated ESG-related KPIs into long-term incentive plans for executive remuneration.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Currency-induced credit risk due to high share of foreign currency-denominated loans.
• Adverse developments in the economic environment (slowdown in economic growth, exchange rate depreciation, interest rate spikes, unemployment, decreased household income, falling property prices).
• Geopolitical and economic developments in neighboring countries (Ukraine and Russia).
• LIBOR discontinuation and transition.
• Potential cyber-attacks.
• External and internal fraud risks.
• Reputational risk.
• Risks related to attracting and retaining highly qualified employees.

Mitigation Strategies

• Comprehensive credit risk assessment framework, diversified portfolio, collateral management, stress testing, scenario analysis, loan restructuring.
• Conservative lending standards for unhedged borrowers, capital buffers against currency-induced credit risk, strategy to decrease share of foreign currency loans.
• Macroeconomic monitoring process, stress testing, scenario analysis, conservative lending standards.
• Stress testing, risk measurement and monitoring tools.
• Formation of a steering committee to ensure a smooth transition away from LIBOR.
• In-depth security strategy, Security Operations Center, annual information security and cyber security threat analysis, cyber-attack readiness exercises, employee training.
• Monitoring processes to detect unusual activities, risk and control self-assessment exercise.
• Strong brand recognition, monitoring of brand value, awareness-raising campaigns.
• Competitive reward packages, talent management programme, IT academy, in-house academy, enhanced digital communication channels.

Supply Chain Management

Supplier Audits: Regular assessment of long-term contractor companies’ environmental and social risks.

Responsible Procurement

• Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in precipitation patterns
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Increased GHG emissions pricing
• Enhanced regulatory environment
• Exposure to litigation
• Substitution of existing products
• Changing customer behavior
• Market shifts
• Increased stakeholder concern

Opportunities

• Renewable energy financing
• Green Loan Framework
• Long-term business loan for solar panels
• GCF accreditation
• Energy efficiency loans

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001:2015, ISO 27001

Third-party Assurance: G&L Management LTD (for GHG emissions)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green Loan Framework
• Long-term loan for solar power plants
• Energy efficiency loans

Awards & Recognition

• Best Integrated Consumer Bank Site in Central and Eastern Europe 2021
• Best Digital Bank in Uzbekistan 2021
• Best Private Bank in Georgia 2021 and 2022
• Best Investment Bank in Georgia 2021
• Best Treasury and Cash Management Bank in Georgia 2022
• Best Trade Finance Provider in Georgia 2022
• Best Foreign Exchange Provider in Georgia 2022
• Special prize for outstanding efforts to champion Sustainable Development Goals

Environmental Metrics

ESG Focus Areas

• Sustainable lending
• Net-zero emissions
• Climate change
• Social procurement
• Workplace diversity
• Women’s empowerment

Environmental Achievements

• Successfully passed the third year surveillance audit of the environmental management system and obtained ISO 14001:2015 certification.
• Reduced paper consumption per person by 10%.

Social Achievements

• Launched a series of videos and podcasts to increase financial education in Uzbekistan.
• Developed a Diversity, Equality and Inclusion Policy.
• Established the ESG Academy for employee and customer training.
• Supported the Ukrainian people through various programs and fundraisers.
• Launched a large-scale education initiative providing programming basics to 1000+ Georgian schoolchildren.

Governance Achievements

• Published the second TCFD report.
• Established the ESG and Ethics Committee.
• Developed independent ESG strategies for eight material subsidiaries.

Climate Goals & Targets

Environmental Challenges

• Limited availability, accessibility, and suitability of climate data for financial risk analysis in Georgia and Uzbekistan.
• Challenges in achieving gender balance in middle managerial positions.

Mitigation Strategies

• Developed scenario analysis capabilities to better understand climate-related risks.
• Adjusted targets for the share of women in middle managerial positions and included agile managerial positions in calculations.
• Developed a stress testing model covering various economic sectors in Georgia.

Supply Chain Management

Supplier Audits: 7 long-term contractors assessed in 2022.

Responsible Procurement

• Green Procurement Recommendations
• Environmental and Social Risk Management Questionnaire for suppliers
• Know Your Partner (KYP) questionnaire for suppliers
• Inclusion of anti-corruption, environmental, and tax avoidance clauses in supplier contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001:2015, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 16: Peace, Justice and Strong Institutions
• SDG 8: Decent Work and Economic Growth
• SDG 13: Climate Action
• SDG 5: Gender Equality
• SDG 4: Quality Education

Various initiatives contributing to these goals, including sustainable lending, employee well-being programs, community investment, and financial literacy programs.

Sustainable Products & Innovation

• Green lending products
• Digital banking platform (Space)

Awards & Recognition

• UN Global Compact Network Award for supporting the Ukrainian people
• EBRD Annual Sustainability Award
• Best Annual Report and Transparency Award (BARTA) 2021

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic Impacts
• Employee Relations
• Clients and Services
• Promoting Society Well-being
• Direct Environmental Footprint
• Indirect Social and Environmental Impacts of our Operations

Environmental Achievements

• Increased sustainable portfolio by 57% year-on-year to GEL 1.23 billion
• Reduced energy consumption by 3% and CO2 emissions by 6%
• Installed two solar power plants with a total capacity of 130 kW
• Recycled 125 tons of paper and 1300 kg of plastic waste
• Achieved ISO 14001:2015 re-certification for the fourth time

Social Achievements

• 41% of middle managers and agile leaders are women
• Launched ESG Academy to train 900 employees and 300 customers on green financing
• Launched Hi!, a banking app for under-18s
• Launched Tech-School for schoolchildren, providing training to over 1800 students
• TBC IT Academy awarded a prize in the “Quality Education” category at the Corporate Responsibility Award Ceremony 2023

Governance Achievements

• Established ESG and Ethics Committee
• Developed Diversity, Equality and Inclusion Policy
• Implemented the Green Lending framework and Green Taxonomy of the National Bank of Georgia
• Developed a stress testing model covering various economic sectors in Georgia

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• High staff turnover and active migration
• Geopolitics and macroeconomics
• Incompleteness and novelty of data sets and methodologies for financed emissions calculation

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented international hiring strategy
• Enhanced investor relations strategy
• Developed methodologies for calculating financed emissions based on PCAF approaches

Supply Chain Management

Supplier Audits: 17 long-term suppliers screened in 2023

Responsible Procurement

• Green procurement recommendations
• Environmental and Social Risk Management Questionnaire for long-term suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, ISO 27001

Third-party Assurance: G&L Management LTD (limited assurance)

UN Sustainable Development Goals

• SDG 4
• SDG 7
• SDG 8
• SDG 10
• SDG 13
• SDG 17

Initiatives contribute to these goals through sustainable financing, education, job creation, gender equality, and community development

Sustainable Products & Innovation

• Green loans
• Subscription packages for digital channels
• Mass market retail brokerage platform

Awards & Recognition

• EBRD Annual Sustainability Silver Award
• UN Global Compact Network Award (SDG 4 and 17)
• CSRDG award “Georgia’s Responsible Business Awards – Meliora 2022”