Sustainability

MKB's corporate governance system is based on best national and international practices. Adhering to multilateral development banks' requirements, MKB follows best social and environmental standards and customer treatment principles.

MKB regularly analyses, and seeks to continuously improve, its sustainability performance, in particular by improving its sustainable development governance framework. The most notable changes in the Bank for the last 2 years include: the establishment of a special committee of the Supervisory Board with a focus on sustainable development, the approval of a framework sustainable development strategy, improvement of ESG bylaws, as well as the creation of a team of professionals united in the Sustainable Development Division.

Key participants of MKB's sustainable development governance process.

Supervisory Board, Strategy and Sustainable Development Committee – approving bylaws, and setting strategic objectives, for sustainable development.

Chairman of the Management Board – ensuring execution of the Supervisory Board's resolutions as regards sustainable development, ensuring integration of requirements from approved sustainable development bylaws into the Bank's business processes, supervising and supporting employees contributing to sustainable development goals and tasks, providing enough resources and trainings for effective fulfilment of such goals and tasks.

Social and Environmental Officer – overseeing environmental and social issues, analysing reports on borrowers' sustainable development issues and authorising the provision or continuation of financing, overseeing the preparation and delivery of the Bank’s annual environmental and social performance reports to EBRD.

Social and Environmental Coordinator – responsible for everyday environmental and social requirements, assisting in sustainability evaluation of borrowers and financed projects, and in performance appraisal of their environmental and social management, consolidating reports on borrowers' sustainable development issues, coordinating preparation and timely delivery of annual environmental and social performance reports to EBRD.

Sustainable Development Workgroup – contributing to the preparation of annual sustainability reports, devising and implementing key sustainable development initiatives, charting road maps for their implementation, contributing to the formulation of ESG goals, tasks and action plans implementing the sustainable development strategy.

Sustainable Development Division – controlling the fulfilment of social and environmental activities, goals and tasks, providing methodological support, carrying out environmental and social evaluation and monitoring in respect of the provided financial products and services, verification of project / activity exclusion, agreeing projects / activities with EBRD, verification of project categorisation, comprehensive consolidation of the Bank's portfolio data, compilation of reporting, including annual environmental and social compliance reports for EBRD, taking part in the structuring of ESG products, liaising with internal and external stakeholders on environmental and social issues.

Risk Management Directorate – classifying projects under review by social and environmental risk categories, supporting the Sustainable Development Division in preparing reports.

Other functional subdivisions – carrying out social and environmental activities, goals and tasks, as well as complying with sustainable development bylaws.

The managerial approach is evaluated by the Internal Audit Department as part of its regular internal audits.