Environmental and Social Risk Management (ESRM) Policy
Environmental and Social Risk Management (ESRM) Policy of Ipotekabank defines the general principles, obligations, and approaches of the bank to ESRM. The purpose of the Policy is to strive to increase potential positive ESG impacts, avoid or reduce negative ESG impacts from active operations, and to help ensure that projects supported/serviced by the Bank contribute to sustainable development.
The policy describes the main stages of ESG risk management procedure, provides the final provisions towards ESMS, and includes the exclusion list, which determines the activities the bank refuses to finance.
Environmental and Social categories of the bank
The bank categorizes projects by their environmental and social aspects, reflecting the potential level of environmental and social risks and impacts. Projects are classified into high, medium, or low environmental and social risk by the following categories:
- A- severe impact that extends beyond the boundaries of the banking activity/project of the client;
- B- average impact, limited to the boundaries of the banking activity/project of the client;
- C- no or minor impacts.
Information about the complaint handling mechanism in the bank
The Bank has established a separate communication channel, such as a helpline/contact center (+998 78 150-11-22 or 1233) for submitting complaints from interested parties. In addition, it is also possible to accept complaints and applications on the website. You can also file a complaint via instant messengers and social networks.
Information on projects related to the coal industry
As of 01.01.2024, the percentage of projects related to the coal industry is 0.03% of the total loan portfolio of the Bank.
In addition, the Bank will make all reasonable efforts to reduce its Coal Related Sub-project* Exposure to zero (0).
*"Coal Related Sub-project" means (a) the development or expansion of coal-fired power plants, coal mines, transportation assets used exclusively for coal, or infrastructure assets exclusively dedicated to support coal mines and coal transportation by any sub-borrower, client or recipient of financing from the Borrower, or (b) any economic activity by any sub-borrower, client or recipient of financing from the Borrower that, in the prior financial year, (i) generated more than twenty percent (20%) of its energy or revenues from coal (including coal power production, thermal coal trading for electricity generation (but excluding trade in coal for the purpose of various chemical/manufacturing processes where coal is an integral component (e.g., industrial fuel, reductant), thermal coal logistics, thermal coal engineering and construction services, coal exploration and underground coal gasification), (ii) had an installed coal-fired capacity of 5,000MW or more, or (iii) produced 10 million tons or more of coal.
