ЕNVIRONMENTAL AND SOCIAL
RESPONSIBILITY REPORT 2022
TABLE OF CONTENTS
INTRODUCTION AND STATEMENTS .................................. 3
ESG ACCENTS AND METRICS OF OUR MAIN ESG
ACHIEVEMENTS IN 2022 .......................................................7
RESPONSIBLE PROVIDER ....................................................8
RESPONSIBLE EMPLOYER .................................................. 12
RESPONSIBLE SOCIAL ACTOR ...........................................14
AWARDS .................................................................................20
2
Striving to keep transparent and comprehensible
communication with our interested
stakeholders, we prepared this report for the
second year in row in addition to the statutory
required Non-financial statement to share our
Environmental, Social and Governance (ESG)
achievements and commitments made to
promote the green transition of the economy
and to continuously reduce our -unfavourable
environmental impact resulting from our
activities, products and services. We also use
the opportunity to communicate our progress
on ESG matters achieved meanwhile, at the time
of drawing up the Report.
DSK Bank continues to maintain its trusted
leader position among the bank users and
financial services in Bulgaria. The Bank strives
to establish and maintain high client service
standards, advanced and suitable products and
services, best corporate and ethical practices in
its relations with all interested parties following
the relevant legislation. One of the Bank’s key
objectives is to become a market leader in all
banking segments, and at the same time to
emphasize on a number of initiatives in the field
of sustainable development that reflect our
responsiveness to environmental changes and
the needs of society.
In fulfilling one of the main objectives of
ECO project, established in 2021 to set the
fundamentals of a systemic management of
climate and environmental risks within DSK
Bank’s Group, in July 2022 DSK Bank’s ESG
Strategy was adopted by the Management Board
and approved by the Supervisory Board of the
Bank. The Strategy was developed to enhance
INTRODUCTION
3
the efforts and actions we take to become
a leader in sustainable financing. Given the
urgency of climate and environmental issues,
the main emphasis in this first edition is put on
the “E” part of ESG, covering two main topics –
sustainable financing/business opportunities
and own carbon footprint. The key strategic
ESG targets set are supported by a dashboard
of quantitative and qualitative KPIs and KRIs
to ensure proper follow-up on the progress
achieved and to facilitate the Management
Board in overseeing the climate-related and
environmental risks.
DSK’s ESG Strategy is aligned with OTP ambition
to be the regional leader in financing a fair and
gradual transition to a low-carbon economy
and building a sustainable future through
responsible solutions. It became part of OTP
Group ESG Strategy and outlines the three main
pillars of OTP Group:
• Responsible Provider
• Responsible Employer
• Responsible Social Actor
The presentation of information in the current
report is organized around these three pillars.
ESG Strategy of DSK Bank supports the UN
Sustainable Development Goals adopted by
all UN member states. Our strategic plans are
aligned with those which we believe we can
contribute the most to:
4
When it comes to matters of climate change (the E
in ESG), the strategic problem is not that the planet
is warming up, but why the world is yet to take
more decisive action to address it. My answer to this
conundrum: we, who are simultaneously consumers and voters,
do not feel the urgency to act. As such, we do not demand action
from our politicians, rendering government regulation ineffective
and slow.
We at DSK Bank continuously ask ourselves; what can I do to
change this situation? And we must ask it on three levels: as a
citizen, as a business leader, and as a banker.
Our guiding policy, and the leverage that we as business leaders
have, is to encourage (inspire) and enlighten (inform) the millions
of individuals who use our products and services. Unfortunately,
however, our E(SG) strategies are lacking breakthrough solutions
on this front. I would like to argue that we should measure
our efforts against a single criteria: are we encouraging and
enlightening our consumers?
Is there something else we, as banking executives, can do that
will differentiate us from other business leaders?
The short answer is yes. Finance, along with technology and
international cooperation, are critical enablers for accelerated
climate action.
Climate resilient development requires tremendous investment.
If climate goals are to be achieved, both adaptation and mitigation
financing needs to increase manifold. Our role is to smooth the
flow of capital towards climate action.
This leads us back to our duties as citizens. The award-winning
climate reporter Akshat Rathi has answered this question
succinctly for us: #4 - eat less meat, #3 - fly less, #2 - vote for the
right politician, and #1 - talk about climate change.
Tamas Hak- Kovacs
CEO and Chairman of the Management Board of DSK Bank
LETTER FROM THE CEO
5
ENVIRONMENTAL
Establishment of climate and environmental
targets
• DSK’s ESG Strategy sets clear and
ambitious targets on green financing and own
carbon footprint as well as KRIs to limit the
climate transition and physical risks
Business opportunities
• 130 project financing, mid- and large
corporate projects for renewable energy
production financed by DSK Bank in 2022; 4 local
projects for culture and urban development co-
financed by the Bank and its subsidiary Regional
Fund for Urban Development
Environmental initiatives
• Our participation in the Mastercard
Wildlife Impact Card program allows debit card
holders to become involved in the conservation
of critically endangered species. DSK Bank also
supports the Sofia Zoo’s conservation program
to protect endangered wildlife species
SOCIAL
Health and employee well-being
• We consider our employees as a key
to success. Therefore, we are committed to
strengthening our activity in employee well-
being and personal development
Employee engagement and inclusion
• Personal development ensured through
various specialized and advanced training
programs - Digital Academy, OTP Risk Academy
(incl. ESG module), Leadership Academy
Responsiveness to societal needs
• Numerous socially responsible initiatives
established/ supported by the Bank - “City as
its people” project for improving the urban
environment, donation campaigns to help
refugees from Ukraine, the affected people
from the flooded villages in Karlovo Region,
SOS Children’s Villages Bulgaria
GOVERNANCE
Sustainability governance in DSK
• Establishment of DSK ESG Strategy –
the first of its kind document that outlines our
ambitions and commitments in the field
• Social responsibility is one of the six
objectives set in the Group’s Risk Strategy for
2023-2025, and ESG factors in risk management
are part of the strategic focus programs for the
next three-year period
• Gradual integration of ESG factors in the
policies, processes, and systems to assess and
manage the relevant risks
• An organizational structure was
established, including the newly founded
Sustainability Development Section, that
ensures strong governance, regular monitoring,
and reporting to the MB for overseeing the ESG
Strategy implementation
ESG ACCENTS
6
METRICS OF OUR MAIN ESG ACHIEVEMENTS IN 2022
2020 2021
Electricity consumption (GJ), DSK Group 83092 -5,6% 78402
Total energy consumption per capita, GJ 21,38 -6,5% 19,98
Usage of paper, ink and toner cartridge, t 9260 -18,9% 7514
Share of financed low- or -zero-carbon assets in Leasing 1,55% +276% 5,84%
Volume of investment projects in RES powerplants financed (tsd EUR) 96 082 +157% 247494
Employees
Headquarter Branch network Subsidiaries
1978 2700 877
Access points
Branches ATMs
294 998
Total clients
2 658 100
Retail 2 569 000
Micro enterprise 80 000
Corporate 9 100
7
RESPONSIBLE
PROVIDER
Our ambition is to transform the Bank in a
way to successfully meet challenges of the
environment we face with, while continuously
improving financial results. To achieve that,
we built our Business Strategy on four main
pillars for future development: Protect, Grow,
Digitalize, Comply, and the ESG topic was put
(into the fourth pillar) as a strategic objective of
utmost importance.
The purpose of our existence is the Client. In
2022, we continued to intensify our activities in
improving the client services and to effectively
solve the various clients’ financial needs. The
New service model implemented in a hole
branch network ensures better customer
experience and management of customer
flow in the branches. Those who visited the
office only for a payment transaction can rely
on faster service with significant decrease of
waiting time. On the other hand, the customers
who are interested in a banking product/service
can rely on professional consultancy and
individual approach by a financial specialist.
To measure the customer experience, the Bank
uses an innovative metric, which allows the
customer to rate the service immediately after a
service has been provided or a visit to a branch.
This approach guarantees transparency and
provides an opportunity to take immediate
action to improve the customer experience
when using the Bank’s products and services.
The Bank uses Transactional NPS (Net Promoter
Score) – a leading global indicator for measuring
customer experience. In 2022, transactional
NPS increased compared to 2021, thus marking
the second year in a row with a higher level
of service quality at the Bank’s branches. This
result confirms the high level of service quality
and positive experience that our customers
receive.
As an acknowledged leader on the market of
innovative products and digital services in the
banking field, the Bank develops and improves
the functionality of its remote banking
platforms – DSK Direct and DSK Smart, to make
them as much as comfortable and easier for
use by the clients. Our customers can apply,
receive and use their consumer loancompletely
online without visiting bank offices, they can
receive a loan contract through the Evrotrust
application on their mobile phone, read and
sign it, and then return it to the Bank. Option
for documents signing using the QES is also
provided for the Premium clients, as thus they
save time, perform their operations faster and
more efficiently, and have 100% security of
their personal data. By using Evrotrust and the
Call Center, our clients who are temporary out
of the country can perform remote electronic
operations, requiring signing, such as access to
electronic and mobile banking, application for
signing method, registration of mobile phone
number for 3D password required for online
shopping, opening a bank account, issuing of
debit cards for individuals, etc.
In 2022, a strategic program for digitalization
has turned out to be a highly impactful endeavor
and undoubtedly has achieved its ambitious
8
purpose to even further improve DSK Bank
services and operations. As an acknowledged
leader on the market of innovative products
and digital services in the banking field, DSK
Bank Group develops various projects with
the approach of complete online servicing. To
improve the clients’ experience, and to provide
easy and fast access to our financial products
and services, DSK Bank Group constantly
upgrades the functionality of its remote banking
platforms. As a result of the difficult situation in
the country and the increased use of electronic
banking channels – DSK Direct and DSK Smart,
the team of the financial institution continues to
work on their improvement so to make them as
far as possible more comfortable and easier for
use by the clients.
Sustainable financing
We understand our role in supporting the
clients on the way to low-carbon economy. In
this respect we set clear targets into specific
business activities to provide financing that
supports the transition:
In October 2022, a group project for extension
of the group’s Green Loan Framework was
launched, aiming to include the subsidiary
banks in the GLF, and more importantly – to
implement the requirements of EU Taxonomy
and CBI taxonomy. Finishing the project will
give the instruments for assessing transactions
in terms of eligibility to the taxonomies. Once
assessed, the exposure could be distributed by
the group as part of the Sustainable portfolio
and linked to Green or Sustainable Bonds.
In 2022, following the EU Net-zero targets, and
on the other hand – increasing of electricity price
– the demand for renewable energy production
powerplants increased. We continue to provide
financing for clients, developing projects either
for trading or for own consumption.
Leasing portfolio also shifts to low-carbon
emission vehicle financing. While in 2021 the
share of electric + hybrid vehicles in total
portfolio was 1,55%, in 2022 the share increased
to 5,84%. The target for the leasing entity set
into ESG Strategy is by the end of 2025 35%
of financed vehicles to be pure electric, and
the share of pure EV to be at least 6% of total
portfolio.
In November 2022, we launched a trading
initiative regarding the housing loans by
providing discount of application fee if a client
wants to purchase residential asset with energy
efficiency class “B” or higher. We consider this
incentive as a step ahead into changing the
mindset of clients, pointing out the importance of
impact of energy efficiency on the environment.
Renewable energy production* Real estates* Agriculture Retail mortgage*
DSK Bank’s targets by 2025, million EUR
0
100
200
300
400
344
56
48,3
41
2020 2021 2022
Financed renewables volume, thousand EUR
300 000
225 000
150 000
75 000
64781
96082
247494
9
Sustainable cities
In 2022, DSK Bank continued to contribute to
the development of local projects for culture
and urban development. Together with the
Regional Fund for Urban Development, DSK
Bank co-financed three sites from the cultural
infrastructure of Razgrad municipality - the
regional library “Prof. Boyan Penev”, the
Ethnographic Museum and the “Ilia Burnev”
School of Music at the community centre
“Development 1869”. The goal of the venture is
to transform them into modern and attractive
cultural and educational centres.
Another co-financed project is construction
and installation activities for the renovation of
the “Katya Popova” concert hall in the city of
Pleven. The project will ensure the introduction
of energy efficiency measures, repair of the roof
and existing sanitary facilities, replacement of
electrical installations, linings, flooring, and
seats in the concert hall. New sound equipment
and stage control equipment are to be installed.
ESG Risks management
The integration of ESG risks in the risk
management processes of the Bank continued
in 2022.
Regarding credit risk management, based
on the established in 2021 internal ESG Risk
Management Framework in Loan Origination
and Monitoring of DSK Bank Group, we
introduced monthly monitoring of evolution of
our business loans portfolio by ESG categories.
The reported results as of end of 2022 show that
while on a client level the share of High ESG risk
transactions is still high, on a transaction level
it is only 9% of the portfolio. The client level risk
assessment is based on the NACE code of the
sector only, while the risk on a transaction level
is determined by considering the maturity and
purpose of the project as well as the positive
outcome of the due diligence performed
(possibility currently applied for a limited
number of deals - the riskiest sectors from
ESG perspective where a pre-defined exposure
threshold is exceeded).
Total portfolio
Electric assets
Hybrid vehicles
OTP Leasing: share of financed low- or
zero- carbon emission assets, thousand
EUR
10
The key supporting element is a risk indicator that was
introduced into ESG Strategy and later on implemented into
Risk Appetite Framework (RAF), affecting the corporate clients
– the share of newly contracted High ESG transactions to not
exceed 10% of total newly contracted transactions. This way,
the value and evolution of this RAF indicator is monitored
monthly, in addition to the Exclusion list (also included in the
RAF). Considering the requirement, both business and risk
underwriting units maintain proper structuring of the deals.
Regarding physical risk that affects collaterals, steps were
taken in the collateral assessment by engaging the valuators
to include climate-related and environmental risks into the
collateral evaluations. Landslide, groundwater, dust and
noise pollution are presented, and taken into account in the
assessment.
In 2022, OTP Group did its first climate change stress testing
based on the developed own framework, as part of the internal
capital adequacy assessment process. Calculations were made
under the stress testing methodology to measure the impact
of climate risk on the corporate portfolio of individual banks
within the Group of OTP Bank, incl. DSK Bank. The result of the
analysis shows that annual losses under the worst climate
scenario (so-called “Hot house”) would increase by up to 16
basis points compared to the scenario of planned transition to
a climate neutral economy by 2050.
Materiality assessment performed by the Bank for a second
year in a row shows that, apart from the credit risk, other
traditional risks could also be impacted by climate and
environmental changes. In the operational risk management
area, we strengthened the assessment of ESG risks in the
scenario analyses by analyzing a separate scenario related
to climate change, and we also started to indicate the risks
affected by ESG in both the risk control self-assessment and
the loss collection in order to accumulate the necessary data.
In 2022, one more KRI was established for monitoring the
number of incidents caused by damages to physical assets as
result of natural disasters.
We will continue to gradually embed the climate risk related
considerations in managing other types of banking risks
that could be impacted tangibly according to the materiality
assessment.
39%
39%
23%
26%
12%
9%
45%
46%
29%
31%
20%
18%
Business portfolio distribution
by ESG category
100%
75%
50%
25%
0%
Low Medium Medium-high High Unidentified
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Strategic vision
Personal and leadership qualities are very
important for the Group to move forward. And
so is the diversity of professionals working
in the Bank. Thus, the focus set by DSK Bank
in 2022 was to further establish the Bank as a
top employer with a clearly defined Employee
Value Proposition (EVP) and a communication
campaign that follows “Everyone is looking
for employees, we are looking for people”. A
special focus was placed on the Bank offering
multiple career paths and opportunities,
transforming itself into collaborative mixed
teams that work flexibly towards a common
goal. The strategic vision of the campaign
includes overall initiatives and visualizations of
Bank employees.
“DSK New beginning” program was active in
2022 and focused on the most common Bank
position – clients relationship expert, providing
mobility and structured training program for
new colleagues, the internship program and
our overall campaign aimed at IT and digital
professionals.
In 2022, the main goal of DSK Bank was
digitization. In this regard, the focus of the
presentation of the Bank as an employer was
on its positioning in front of IT specialists. The
company invested resources in developing a
corporate profile on the DEV.BG platform, which
focuses on finding IT talents.
DSK Bank is also a regular participant in various
career forums, which are another connection
of the institution with young talents and
established professionals. Such an opportunity
is also the Bank’s internship program.
The staff as of the end of 2022
2022, distribution by age
AGE Senior Management Middle level Subordinates Total
<30 789 789
30-50 4 138 3007 3149
> 50 3 40 1208 1251
Total 7 178 5004 5189
2022, distribution by gender
Gender Senior Management Middle level Subordinates Total
Women 2 73 3965 4040
Men 5 105 1039 1149
Total 7 178 5004 5189
2022, distribution by gender
Data Total Men Women
Distribution by
gender
100% 22,14% 77,86%
Turnover rate 16,46% 3,74% 12,72%
o.w. voluntary 12,14% 2,83% 9,3%
New employees in 2022
Gender/ Age <30 30-50 >50 Total
Women 263 221 27 511
Men 86 89 12 187
Total 310 39 698
RESPONSIBLE
EMPLOYER
12
Employee data
Employees under permanent vs. temporary
contracts: 94,87%/ 5,13%Full vs. part-time
employees: 96,3%/ 3,7%
Occupational health and employee well-being
We consider our employees as a key to success.
Therefore, we are committed in strengthening
our activities in employee well-being and
individual development.
Contract with the Occupational Health Service
is in place which provides full support of
the needed activities, and assessment of the
microclimate conditions in the workspace.
Periodic instruction on occupational health
and safety is performed on all employees on an
annual basis and is compulsory for newly hired
employees.
Prophylactic examinations are conducted
annually for all staff.
Two days of additional paid leave is granted to
all employees who have used all their accrued
paid leave for the current and previous years.
In 2022, we launched a pilot project for
refurbishment of one of the HQ buildings in
order to provide a new look for the office space
and to increase the employees’ comfort during
working hours.
The recently introduced initiative Balance Your
Life, part of our Wellbeing Program, ensures:
• Individual sharing space with internal
psychologists
• Various well-being awareness-raising
initiatives like wellness academy, guest
speakers, and webinars on wellbeing topics
• Social fund to support our employees in
need.
Employee engagement
The bank is strongly focused on
engaging employees and regularly follows
the engagement level with an annual OTP
engagement survey. The results are widely
spread and based on them a bank-level
action plan and an individual one are created
and followed so that we can increase the
engagement level of our staff.
In the field of developing skills and
competencies, the focus was put on digital
training for new and current employees. We
have developed the Digital Academy, which
is open for application to all employees and
offers professional training at a high level of
IT and Data knowledge. The Academy has 3
Paths – Reskill, DevOps, Ignite, and an additional
Data path (in which all employees working with
data in the whole bank are included).
Successful completion of the Academy gives
the participants further job perspectives and
opportunities within the Bank, including
promotion in position and salary.
Another important initiative of DSK Bank is
the Leadership Academy. In 2022 over 150
employees were trained in it including B-1, B-2,
B-3 managerial levels, and informal leaders.
Each Leadership Academy is 4 months long and
all graduates are certified by a professional
external trainer.
Finally, in 2022, the focus was developing our
E-learning programs for all bank employees.
All employees were trained in various topics
like GDPR, Operational Risk, AML, Bank and
information security, Ransomware, and social
engineering. E-learning courses were made
interactive, more interesting, and useful in
terms of content and practical knowledge.
13
RESPONSIBLE
SOCIAL ACTOR
Own consumption and GHG emissions
In our activity, we aim to create shared value
that is measurable and makes a recognizable
contribution to society and SDGs.
One of the directions we follow lies in the carbon
footprint of the Bank. In our ESG Strategy, we set
ambitious goals in terms of its own operations,
including the reduction of our own emissions:
Targets of DSK Bank group by the end of 2025
Achieve net carbon neutrality (Scope 1 and
Scope 2)
Achieve reduction of GHG emissions (Scope
1 and Scope 2) by 15%, compared to reported
emissions for 2021
In 2022, we managed to significantly reduce
the total energy consumption (roughly by 9%
compared to 2021) and to achieve improvement
in performance across all its elements. Reduction
in car fuel consumption (by nearly 4%) reflects
our efforts made to improve the ratio between
diesel and petrol cars in the car fleet, as well as
the investment in purchasing 13 new hybrid cars
in 2022. The replacement of gas boilers with air-
conditioning installations in some buildings led
to a reduction of natural gas consumption by
nearly 30%. In terms of electricity consumption,
the decrease is almost 6% which became
possible thanks to the implemented Heating,
Ventilation and Air-conditioning systems (HVAC)
and Building Management Systems in some of
our main HQ buildings, as well as to various
internal initiatives with a focus on the topic, e.g.,
conducting campaigns among employees and
organizing a competition between the branches
and HQ units dedicated to the responsible
consumption of electricity. The district heating
reduction (by nearly 34%) is related to one of
the largest HQ buildings in Sofia and comes
from cutting out two floors (approx. 2 000 m2)
out of district heating supply (replaced by air-
conditioning system) as well as reducing the
heating units while much of the staff in the
building was working 50 % at home office in the
beginning of 2022.
A slight increase (below 1%) is reported in the
total Scope 1 and Scope 2 carbon emissions
which, in the direct emissions, is due to the
equipment of air conditioning installations
(freon), and, in the indirect emissions – to the
use of updated (higher) emission factors upon
calculating CO2e emissions from purchased
electricity.
Targets of DSK Bank group
by the end of 2025
Achieve net carbon neutrality (Scope 1 and Scope 2)
Achieve reduction of GHG emissions (Scope 1 and Scope 2) by 15%, compared to
reported emissions for 2021
14
The energy consumption and own emissions
data are regularly monitored by the responsible
units within the Bank Group and are considered
in the investment planning.
Pursuing the targets, we are working on energy
efficiency program in several directions:
• Energy efficiency audit of own real
estate stock started with assessment of three
buildings and continues with another 9.
• Installation of roof photovoltaic
systems is in final stage and beginning from
Q1.2023 they will start to generate electricity
for partial satisfaction of respective buildings’
consumption.
Environmental care
We continue to collect separate waste in two
of our main locations. In 2022 53 t. paper and
30 kg. PET bottles were collected and sent for
Energy consumption within the organisation (GJ)
DSK Bank standalone,
without Expressbank
DSK Bank standalone, with
Expressbank
DSK Bank Group DSK Bank Group
2019 2020 2021** 2022
Natural gas 0 3890 5441 3815
Car fuel mineral 5579,17 4861,87 19508,78 18789,42
Total non-renewable fuel sources 5579,17 8751,87 24949,78 22604,42
Car fuel biogen * 0 0 1158,41 1137,10
Total renewable fuel sources 0 0 1158,41 1137,10
Electricity 62870,40 88480,80 83091,60 78402,60
District heating 3342 6830 10062 6665
Total indirect energy purchased 66212,40 95310,80 93153,60 85067,60
Total energy consumption 71791,57 104062,67 119261,80 108809,12
Total energy consumption per capita 18,59 23,19 21,38 19,98
* Car fuel biogen consumption collected separately since 2021
15
recycling. In 2022 over 600 kg of pet bottles
were donated to the initiative Kapachki za
budeshte. The aim of the campaign is to collect
caps, recycle them, and with the collected funds
to purchase incubators and ambulances for
hospitals in Bulgaria.
At the end of 2021, DSK Bank joined the global
Mastercard Wildlife Impact Card program
for the protection of the planet’s biodiversity.
The cards are produced by 85,5% recycled
and recyclable material. For each Mastercard
Wildlife Impact card issued, DSK Bank and
Mastercard donate $ 1 to the international
organization Conservation International to help
conserve and restore wildlife habitats. By 2030,
this project will cover priority areas equal to 40
million hectares of land and 4.5 million square
kilometers of water areas worldwide.
The result by the end of 2022 is 100,000
issued bank cards. In addition, for greater
engagement of current and future users, DSK
Bank and Mastercard are adding a local cause
Scope 1 and Scope 2 CO2e emissions (t)
DSK Bank standalone,
without Expressbank
DSK Bank standalone, with
Expressbank
DSK Bank Group DSK Bank Group
2019 2020 2021** 2022
Direct (Scope 1) 748,05 985,02 2091,38 2108,06
from motor vehicles mineral 415,84 360,83 1459,60 1399,10
from the use of natural gas 0 218,62 305,78 211,96
from air conditioning 332,21 405,57 326 497
Indirect (Scope 2)
Indirect location-based 7766,88 9455,47 9052,06 9117,25
from electricity 7631,59 9130,97 8574,82 8801,13
from district heating 135,28 324,49 477,24 316,12
Indirect market-based 7773,51 9470,46 9066,14 9117,25
from electricity 7638,23 9145,97 8588,90 8801,13
from district heating 135,28 324,49 477,24 316,12
Total (Scope 1 + 2) location-based 8514,93 10440,48 11143,45 11225,31
Total (Scope 1 + 2) market-based 8521,57 10455,48 11157,52 11225,31
Biogenic CO2e emissions 0 0 83 81
Per-capita location-based 2,21 2,33 2,00 2,06
Per capita market-based 2,21 2,33 2,00 2,06
**Some figures for 2021 have been recast as a consequence of restatement, the main one - district heating consumption and related GHG emissions. For historical data published in
the past, please refer to the 2021 Non-financial Declaration.
16
in partnership with the Sofia Zoo. The two
organizations support the Zoo’s conservation
program to protect endangered wildlife species.
Social projects
In 2022, DSK Bank continued its own socially
responsible project for the improvement of
the urban environment “City as its people”. The
initiative once again aimed to make the capital
a better place to live, as well as draw attention
to the problem of active lifestyles in the city. The
second edition of the campaign transformed a
municipal basketball court in Sofia. Once again,
we worked with an established Bulgarian graffiti
artist to transform the playground into a work
of street art. The site was chosen because the
financial institution wanted to draw attention
to the topic of abandoned sites and active
lifestyles in an urban environment.
DSK Bank continues its partnership with the
BCause Foundation, and the foundation’s
activities are aimed at developing the donation
culture, policies in the field of donations and
social investments, etc. In 2022, the Bank
implemented a campaign together with BCause
to help refugees from Ukraine, as a result of
the war that broke out. Funds collected were
distributed by the foundation’s team to the most
pressing needs in locations across the country.
DSK Bank also organizes an internal donation
campaign among employees to help colleagues
from OTP Ukraine.
In September 2022, again together with BCause,
the Bank’s employees made a donation to
provide timely support to the affected people
from the flooded villages in Karlovo Region.
In addition, the Bank’s regional team, in
partnership with the Ministry of Interior and the
Municipality of Karlovo, is assisting customers
from the region who have lost their identity
documents or debit cards during the disaster.
During the year DSK Bank continued its
successful partnership with SOS Children’s
Villages Bulgaria – a social development
organization, that aims to guarantee that every
child has a family and lives in an environment
of love, respect, and security. The partnership
dates back to 2011 when the Bank committed to
take care of two SOS families.
In 2022, we continued to share our time and
knowledge with the kids from SOS Children’s
Villages. For Easter, we held a workshop with
the children and employees of the Bank in one of
the organization’s centres in the village of Dren.
Towards the end of the summer, we organized a
photo contest for the children to challenge their
creativity and show us through their eyes the
beauty of this season.
In 2022, over BGN 675 thousand in the form
of donations were accumulated through the
different banking channels.
DSK Bank was for another year recognized the
largest corporate donor and partner of the
association.
402
448
Used paper, t
450
438
425
413
400
2021 2022
7112
8812
Used ink and toner cartrigde, kg
9000
6750
4500
2250
0
2021 2022
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Financial education and innovations
In 2022, DSK Bank continued its educational
initiative “Calm on the Internet” with a
new campaign “We know, that you know,
but…” dedicated to raising consumer awareness
of safe banking and safe use of the Internet.
The campaign again was aimed not only at the
Bank’s customers but also at all those who use
online financial and other services. The purpose
of the initiative is to present in a simple and
understandable way the main highlights of safe
online banking and Internet browsing.
Within the campaign, a special page was used
https://dskbank.bg/препоръки-за-сигурност
– together with social media activations in
different bank channels in combination with
paid digital ads in order to reach greater
audiences.
Ethics Code and Anti-Corruption Policy
DSK Bank as part of OTP Group is committed
to the fight against corruption and states zero
tolerance to any kind of bribery. The Bank has
adopted a Policy for corruption prevention,
where the principles of anti-corruption activity
are defined, as well as the main fields with risk
of corruption. In the course of and in connection
with the Bank’s activities, all staff members
and any other contractual partners of the Bank
are strictly prohibited from performing any act
of corruption and from participating or being
involved in corruption. The Bank consistently
and resolutely stands up against corruption. In
case of a violation of the Policy by any person,
the Bank shall take all steps necessary to avert
potential negative consequences and to avoid
similar events in the future. The Bank ensures
the full enforcement of all Bulgarian, European
Union, and international anti-corruption
regulations, and requires all of its staff members
and contractual partners to comply with such
regulations.
In addition, the Ethics Code of the institution
defines clear principles and requirements for
the employees and the partners of the Bank,
as well as its affiliated companies, in relation
to the adherence to ethical norms at work. The
main emphasis of the Ethics Code includes – the
right of employees to participate in political
or public life, ensuring a safe and healthy
occupational environment, promotion of
mutual respect, prohibition for discrimination
and abuse, integrity in business relations,
zero tolerance to corruption and attempts for
influence, limitations for offering and accepting
gifts above the specified value. In case of doubt
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or possible violations of the norms of the Ethics
Code and the Policy, the employees are offered
an option to report it, including anonymously,
to the Regulatory Compliance Department,
which will undertake the measures necessary
as per the internal rules.
The Ethics Code of DSK Bank and the Policy for
Corruption Prevention are publicly accessible
on the Bank’s official website.
AML
DSK Bank is committed to combating financial
crime and ensuring that accounts held at
the Bank are not misused for the purpose of
money laundering or terrorism financing. As
an obliged entity under the Measures Against
Money Laundering Act, the Bank has AML
policies, procedures, and rules that comply
with applicable laws in Bulgaria and European
regulations. The established practice of the Bank
includes customer due diligence, enhanced due
diligence automated suspicious and prohibited
transaction monitoring and behavior and
reporting policies as well as surveillance
systems for monitoring such activity.
Customer Protection
The satisfaction and confidence of customers
have always been DSK Bank’s special priority
and accordingly, continuous compliance with
consumer protection principles has been
integrated into the Bank’s day-to-day operation.
DSK Bank has established a compliance culture
enabling the Bank to efficiently offer a broad
spectrum of products and services and satisfy
the financial needs of its clients. The Bank has
declared its commitment to ensure enforcement
of consumers’ interests in its Compliance Policy.
In all areas of its activities, it applies consumer
protection principles that are consistent in its
approach and take into account changes in
consumer habits and interests. In respect of
its products and services, the Bank specifically
strives to provide all necessary information to
its customers in order to enable them to take
recourse to the service that is most suitable for
them.
The purpose of the Consumer Protection
Compliance Program is to facilitate the
performance of the Bank’s obligations – as
set out in local and EU legislation relevant to
consumer protection, and internal regulations
– to define the procedural framework and
to provide professional assistance to the
relevant organizational units of the Bank.
The Compliance Program is also intended to
enable all employees and managers of the
Bank to understand the essence of consumer
protection principles, the objectives related to
ensuring compliance, and their importance,
and to make them aware of the risks and
potential consequences of non-compliance.
Actions carried out under the Compliance
Program include the continuous monitoring
for compliance of Internal rules with consumer
protection legislation; preliminary control to
facilitate compliance, submission of proposals
for correction, and as necessary, the provision of
information required for managerial decision-
making. When introducing new products and
technologies, their modification and updates,
the Bank pays special attention to regulatory
compliance in accordance with the Compliance
Program.
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AWARDS
Last year DSK Bank has won several awards.
At the beginning of 2022, the CEO of DSK Bank,
Tamas Hak-Kovac, was awarded by the Employer
Branding Awards in category “Team Lead of the
year” award.
Shortly afterwards, the head of the Human
Resources team, Radoslava Krosneva, was
awarded the “HR Manager of the Year” award.
In February, DSK Bank was awarded by “24
Chasa” with the Business Honoris Causa award
for its long-term support to SOS Children’s
Villages.
In April, the corporate social responsibility
campaign “City as its people” was awarded in
the PR Digital category at the IAB Mixx Awards.
May brought us a Green Oscar for the Mastercard
Wildlife Impact Debit Card.
Again in May, the “City as its People” project won
another award in the “Digital Communications”
category, this time from the Bulgarian PR
Association - PR Prize competition.
Our subsidiary DSK-Rodina won the prize for
the most dynamically developing pension
insurance company.
In June, for the sixth time, we were awarded
the “Most Generous and Significant Corporate
Partner” award by SOS Children’s Villages
Bulgaria.
2022 brought many international honors to
DSK Bank. The British magazine “Euromoney”
recognized the bank as the “Best Bank in
Bulgaria” for 2022, and also in the categories
“Market Leader - Digital Solutions”, “Market
Leader in Corporate Social Responsibility” and
“Market Leader in Corporate banking’.
Another prestigious international edition -
Global Finance also recognized the bank as
the best service provider related to foreign
exchange operations in Bulgaria.
To close the awarding season for 2022 DSK
Bank, along with its advertising agency Noble
Graphics, won a bronze Effie from Effie Bulgaria
for positive change. It was for the campaign
“You get everywhere with a bank card” that aims
to inform Sofia’s citizens and visitors that they
can pay with a card for travelling in the public
transport.
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