06-21-2022

To our stakeholders:

I am pleased to confirm that MONETA Money Bank, a.s reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption. MONETA publicly communicate all the commitments, performance in ESG ratings and initiatives on esg.moneta.cz web page and in Sustainability Report MONETA Group 2021.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Tomáš Spurný
Chief Executive Officer

MONETA Group is represented by MONETA Money Bank, a.s. and its subsidiaries included in the consolidated entity MONETA Auto, s.r.o., MONETA Leasing, s.r.o. and MONETA Stavební spořitelna, a.s. The Bank and its subsidiaries are headquartered in Prague. The Shared Services Centre is located in Ostrava. The company’s share capital of CZK 10.2 billion is divided into 511,000,000 registered ordinary shares with a nominal value of CZK 20 per share, the issue price of which has been fully paid up. All of the Bank’s shares are publicly traded on the Prime Market organized by the Prague Stock Exchange. The Bank’s shares are also traded without the Bank’s consent on the regulated market organised by RM-SYSTÉM, česká burza cenných papírů a.s. and may also be traded on certain foreign markets.

MONETA aims to be one of the leading banks in the retail segment and in the segment of entrepreneurs and small companies in the Czech Republic. It has established a very good position in financing Czech households and a growing position in the segment of entrepreneurs and small companies. It is subject to regulatory supervision by the Czech National Bank and has a universal banking licence. The Bank operates in the Czech Republic through a well distributed nationwide network consisting of 154 branches, 560 ATMs and a full-service customer service centre as of 31 December 2021.

Democracy as the rule of law and human rights are interconnected and mutually supportive pillars of human dignity. Respect for international law and justice are fundamental principles in the field of human rights. Their protection in the Czech Republic is enshrined primarily in the Charter of Fundamental Rights and Freedoms, which is the cornerstone of the Czech constitutional framework. The Czech Republic is a signatory to most of the main agreements on the protection of human rights – both those within the United Nations and regional (within the Council of Europe, the Organisation for Security and Cooperation in Europe and the European Union) and builds on their principles and commitments. All laws of the Czech Republic, including the regulatory framework for the banking sector, must comply with the Charter of Fundamental Rights and Freedoms and the Czech constitutional system. MONETA operates only within the Czech and European regulatory framework and the protection of human rights is inherent in all its activities. The Group’s inclusive approach to fair and equal treatment of all employees is enshrined in its Code of Ethics, which prohibits any discrimination and promotes equal opportunities for all. In 2021, there were no recorded cases of discrimination or human rights violations in the MONETA Group.

All the commitments and policies are publicly available on MONETA´s web page:
Sustainability report MONETA Group 2021 https://esg.moneta.cz/documents/19688341/19700902/mmb-sustainability-report-2021.pdf
• ESG web site including ESG KPIs https://esg.moneta.cz/
• Code of Ethics https://www.moneta.cz/documents/3370787/11889146/mmb-code-of-ethics.pdf/6a3f9891-ef01-1c53-295b-2c8da1acc7d8?t=1573652664000
• Diversity and Inclusion policy https://investors.moneta.cz/documents/12270853/20121822/mmb-diversity-inclusion-policy-2020-en.pdf
• Diversity Charter https://esg.moneta.cz/social-responsibility
• Code of Conduct https://investors.moneta.cz/documents/12270853/20121822/mmb-code-of-ethics-for-suppliers-en.pdf
• ESG Strategy https://investors.moneta.cz/documents/12270853/20117377/mmb-esg-strategy-en.pdf

• MON FAIR - In 2021, the MONETA Group and its advisory committee on diversity, inclusion and gender equality MON FAIR (established in 2020) launched several project promoting diversity among employees and their inclusion.
HUMAN RIGHTS - Democracy as the rule of law and human rights are interconnected and mutually supportive pillars of human dignity. Respect for international law and justice are fundamental principles in the field of human rights. Their protection in the Czech Republic is enshrined primarily in the Charter of Fundamental Rights and Freedoms, which is the cornerstone of the Czech constitutional framework. The Czech Republic is a signatory to most of the main agreements on the protection of human rights – both those within the United Nations and regional (within the Council of Europe, the Organisation for Security and Cooperation in Europe and the European Union) and builds on their principles and commitments. All laws of the Czech Republic, including the regulatory framework for the banking sector, must comply with the Charter of Fundamental Rights and Freedoms and the Czech constitutional system. MONETA operates only within the Czech and European regulatory framework and the protection of human rights is inherent in all its activities. The Group’s inclusive approach to fair and equal treatment of all employees is enshrined in its Code of Ethics, which prohibits any discrimination and promotes equal opportunities for all. In 2021, there were no recorded cases of discrimination or human rights violations in the MONETA Group.
EMPLOYEE OMBUDSMAN - MONETA has a system of internal ombudsmen to assist and ensure the protection of the rights and legitimate interests of our employees in situations where they suspect a breach of internal rules and regulations or where they feel they are not being treated in accordance with the principles of integrity, equal opportunity and fair remuneration. In order to protect the identity of employees who wish to report a violation, the Group has a confidential complaint referral regime. The Director of Compliance is the owner and guarantor of the process and coordinates the investigation of more serious complaints. She is also responsible for the appointment of 3 internal ombudsmen from among the employees. MONETA does not have collective agreements and there is no trade union. In 2021, there were no significant complaints indicating a serious breach of external or internal regulations. Report of the employee Ombudsman 2021 (https://esg.moneta.cz/documents/19688341/19803994/mmb-vyrocni-zprava-ombudsman-pro-zamestnance-2021.pdf/1f704ca4-8ff0-9072-f0d4-ddb28477c9c9?t=1648828006964)
OPEN AND TRANSPARENT COMMUNICATION WITH EMPLOYEES - In the course of 2021, employees again had the opportunity to have breakfast with the Group CEO and to discuss with him topics that interest them in the operation and future direction of the company. A total of 6 Breakfasts with the CEO were held during the year. All employees were also able to participate in the so-called management conferences, which are held regularly each time the Group publishes its quarterly financial results. At the conferences, the Bank’s Chief Executive Officer briefs employees on the current financial results and the Bank’s future strategic direction, while selected members of the management team present achievements and visions in their respective areas.
HEALTH AND SAFETY IN THE WORKING ENVIRONMENT - During the ongoing global pandemic COVID-19, the Safety and health of employees was a top priority for the MONETA Group. The Bank’s management has always taken a proactive approach to preventive measures, many times going beyond the emergency and protective measures of the Ministry of Health and the Government of the Czech Republic. We have constantly revised the current preventive measures according to the current development of the spread of the disease in the Czech Republic and we have familiarised our employees with the measures applicable not only at work but also in public on a regular basis. Throughout the entire COVID-19 pandemic, we provided our employees with sufficient protective equipment - respirators, masks and disinfectants - free of charge, even when these commodities were unavailable on the market. We started testing our employees for COVID-19 as early as October 2020, 5 months before37 the current preventive measures announced by the Government and the Ministry of Health made it mandatory. The employees of the Prague and Ostrava headquarters were tested on-site with antigen and PCR tests, which were evaluated by a renowned laboratory. High quality antigen self-test kits were available at the branches and outlets. The regular proof of infection-free status of MONETA’s employees started to apply at the beginning of October 2021. MONETA also took this step before the current regulation of the Ministry of Health required such an obligation. The regular testing and the requirement to prove infection-free status ensured the safety of not only the Group’s employees but also their clients coming to the branches. In order to minimize contact and the possibility of potential transmission of COVID-19, employees whose nature of work allowed it were permitted to work from home, the so-called Flex place. For those employees who needed technical equipment to work efficiently and safely from home, MONETA lent the necessary equipment. In addition, at a time of the greatest restrictions and closed catering facilities, we provided our employees with quality meals directly at the workplaces of both headquarters. In 2021, we paid out a total of CZK 600,000 from the Social Fund to our employees in a difficult life situation. Further information on this topic is provided in the chapter on the Matching and Social Fund.
MON Step project - In the area of inclusion, one of our most important projects is the MON Step initiative. This project started in October 2021 and aims to increase the proportion of employees with disabilities from 1% at the end of 2021 to more than 3.5% by the end of 2025. We are working with two renowned non-profit organisations on this project - the social enterprise group Etincelle and the social franchise Kolibřík. The hiring process for the first employees under this initiative was launched at the end of 2021.
KEY SOCIAL GOALS - Our ambition is to be a responsible and transparent company that does not allow any form of discrimination, both as an employer and as a business partner towards the wider public. Already in 2020, we have decided to re-sign the Diversity Charter of the Czech Republic to publicly declare our commitment to diversity and inclusion. We treat our employees fairly and comparably regardless of gender, nationality, age, sexual orientation, health status or other factors. We value client feedback, which we reflect in our daily operations. To ensure that we are able to deliver on our commitments, we have set social responsibility objectives that will lead to the implementation of our strategy. (https://esg.moneta.cz/documents/19688341/19700902/mmb-sustainability-report-2021.pdf, page 35)

At the Board level, the Sustainability Committee, which was established in October 2021, is responsible for the ESG agenda. Sustainability Committee is aware of the importance of the Regulation 2020/852 (EU Taxonomy Regulation) and on quarterly bases monitor and prepare appropriate actions to be in line with the requirements. Its mission is to assist the Board of Directors to effectively implement and oversee all ESG-related activities across the MONETA Group. The ultimate responsibility for the Sustainability Committee lies with the CEO of the Bank. Sustainability Committee The Sustainability Committee is responsible for managing and coordinating environmental, social and corporate governance (ESG) activities. The Commission meets quarterly.

Its main responsibilities include:
a) discussing the ESG Strategy, updating it and proposing its approval to the Group’s Board of Directors;
b) discussing ESG reports (quarterly) relating to the development of the set objectives of the ESG Strategy;
c) deciding on corrective actions in the event of adverse developments;
d) evaluating external influences and changes (including regulatory) relevant to the ESG area;
e) deciding on appropriate actions and informing other relevant bodies and committees of the Group companies.

The Sustainability Committee makes decisions by a simple majority of the votes present at the meeting. The Sustainability Committee is quorate if half of its voting members are present at a meeting while also holding a simple majority of the votes of all voting members (including MSS Board members). In the event of absence, a voting member of the Sustainability Committee may delegate the exercise of his/her voting rights to another voting member.

In order to properly integrate ESG into practice, those in positions of responsibility for ESG issues are motivated to act in ways that reduce negative impacts on climate change. This means that the remuneration policy is set up to reward sustainable performance that is in line with our values and risk expectations.
As we regularly analyse our position on ESG issues and the impacts of ESG factors and risks, ESG is integrated into the remuneration of the Board of Directors through key performance indicators, the so-called ESG-related KPIs. The achievement of the KPIs then has a material impact on the variable remuneration component and the KPIs and their achievement are regularly assessed and taken into account in the review for the following period.

MONETA´s focus has always been on diversity and inclusion. That is why the MON FAIR Committee, an advisory body to the Bank’s Board of Directors on diversity, inclusion and gender neutrality, was established in 2020. Its mission is to oversee equal pay for men and women working in the same positions, diversity among employees, inclusion of people with disabilities and equal opportunities for men and women. The Commission also develops support programmes for employees on maternity and parental leave, for employees from the LGBTQ+ community, for employees over 55 years of age and for informal caregivers. MON FAIR makes decisions by a simple majority vote of the voting members present. A simple majority of all voting members shall constitute a quorum at a MON FAIR meeting.

Our performance in selected ESG ratings provides to our investors and other stakeholders with clear and reliable key information, as well as evidence of our sustainability efforts. We see ESG ratings not only as an opportunity to demonstrate the steps we are taking in this area, but also as a way to increase our value in the field of public trading in a transparent and attractive way. Our performance, as measured by ratings and indices, thus provides sufficient transparency to all stakeholders, facilitating informed decision-making and serving as an additional performance factor for the entire MONETA Group in meeting higher standards. (Sustainability report MONETA Group 2021 - page 18)

Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

MONETA Group is represented by MONETA Money Bank, a.s. and its subsidiaries included in the consolidated entity MONETA Auto, s.r.o., MONETA Leasing, s.r.o. and MONETA Stavební spořitelna, a.s. The Bank and its subsidiaries are headquartered in Prague. The Shared Services Centre is located in Ostrava. The company’s share capital of CZK 10.2 billion is divided into 511,000,000 registered ordinary shares with a nominal value of CZK 20 per share, the issue price of which has been fully paid up. All of the Bank’s shares are publicly traded on the Prime Market organized by the Prague Stock Exchange. The Bank’s shares are also traded without the Bank’s consent on the regulated market organised by RM-SYSTÉM, česká burza cenných papírů a.s. and may also be traded on certain foreign markets.

MONETA aims to be one of the leading banks in the retail segment and in the segment of entrepreneurs and small companies in the Czech Republic. It has established a very good position in financing Czech households and a growing position in the segment of entrepreneurs and small companies. It is subject to regulatory supervision by the Czech National Bank and has a universal banking licence. The Bank operates in the Czech Republic through a well distributed nationwide network consisting of 154 branches, 560 ATMs and a full-service customer service centre as of 31 December 2021.

Democracy as the rule of law and human rights are interconnected and mutually supportive pillars of human dignity. Respect for international law and justice are fundamental principles in the field of human rights. Their protection in the Czech Republic is enshrined primarily in the Charter of Fundamental Rights and Freedoms, which is the cornerstone of the Czech constitutional framework. The Czech Republic is a signatory to most of the main agreements on the protection of human rights – both those within the United Nations and regional (within the Council of Europe, the Organisation for Security and Cooperation in Europe and the European Union) and builds on their principles and commitments. All laws of the Czech Republic, including the regulatory framework for the banking sector, must comply with the Charter of Fundamental Rights and Freedoms and the Czech constitutional system. MONETA operates only within the Czech and European regulatory framework and the protection of human rights is inherent in all its activities. The Group’s inclusive approach to fair and equal treatment of all employees is enshrined in its Code of Ethics, which prohibits any discrimination and promotes equal opportunities for all. In 2021, there were no recorded cases of discrimination or human rights violations in the MONETA Group.

All the committments and policies are publicly available on MONETA´s web page:
Sustainability report MONETA Group 2021 https://esg.moneta.cz/documents/19688341/19700902/mmb-sustainability-report-2021.pdf
ESG web site including ESG KPIs https://esg.moneta.cz/
Code of Ethics https://www.moneta.cz/documents/3370787/11889146/mmb-code-of-ethics.pdf/6a3f9891-ef01-1c53-295b-2c8da1acc7d8?t=1573652664000
Diversity and Inclusion policy https://investors.moneta.cz/documents/12270853/20121822/mmb-diversity-inclusion-policy-2020-en.pdf
Diversity Charter https://esg.moneta.cz/social-responsibility
Code of Conduct https://investors.moneta.cz/documents/12270853/20121822/mmb-code-of-ethics-for-suppliers-en.pdf
ESG Strategy https://investors.moneta.cz/documents/12270853/20117377/mmb-esg-strategy-en.pdf

• FAIR EMPLOYEE REMUNERATION - Our goal is to be an attractive and responsible employer. We believe in equal opportunities, fair working conditions and mutual dialogue with employees. Efficient use of time is promoted by working from home through our FlexPlace, which which allows employees to work from home occasionally, depending on the nature of the job. The design of a fair, understandable and adequate remuneration package is one of MONETA’s top priorities. The remuneration policy is designed to create sustainable value for shareholders while attracting, rewarding and retaining the best employees. We comply with all legal and regulatory requirements. The remuneration system is based on a proven process of paying rewards based on individual performance against set targets. During 2021, MONETA increased the salaries of 1.124 employees, the average increase was 4.4%. In remuneration, we consider both long-term performance and short-term challenges, paying attention to the internal balance of remuneration settings while monitoring the market (external pay equity) to ensure that remuneration is comparable to the labour market. We use Korn Ferry’s independent methodology to track market trends in compensation as objectively as possible. We have made equal pay for women and men for comparable work one of our priorities in managing our remuneration system. Since 2020, MONETA has been the only Czech company included in Bloomberg’s Gender-Equality Index. Based on data from 2020, the so-called Gender Pay Gap - the difference between the total average pay of men and women on comparable positions – was identified at 2.79% to the disadvantage of women, which is a better result than in the previous year (5.19%). MONETA’s goal is for the Gender Pay Gap to be 0% in 2026. (Page 48)

TALENT SEARCH AND ACQUISITION - We pride ourselves on equal treatment of all employees and candidates. The selection and recruitment of new employees or internal candidates is governed by firmly defined principles derived from the Code of Ethics. Only parameters that are directly related to the experience, skills and motivation of candidates are evaluated in the selection process. When selecting employees, we follow the applicable legal regulations (e.g. Labour Code, GDPR). In 2021, a total of 785 new employees joined the MONETA Group, of which 511 are women. (Page 51)

EMPLOYEE TRAINING & DEVELOPMENT - Employee training was one of the aspects that MONETA Group emphasised in 2021, again with the aim of long-term sustainability in ensuring the enhancement of expertise in both managerial and expert roles. Development activities were focused on attitudinal and skill qualities with regard to the knowledge requirements of specific job roles.

At the Board level, the Sustainability Committee, which was established in October 2021, is responsible for the ESG agenda. Sustainability Committee is aware of the importance of the Regulation 2020/852 (EU Taxonomy Regulation) and on quarterly bases monitor and prepare appropriate actions to be in line with the requirements. Its mission is to assist the Board of Directors to effectively implement and oversee all ESG-related activities across the MONETA Group. The ultimate responsibility for the Sustainability Committee lies with the CEO of the Bank. Sustainability Committee The Sustainability Committee is responsible for managing and coordinating environmental, social and corporate governance (ESG) activities. The Commission meets quarterly.

Its main responsibilities include:
a) discussing the ESG Strategy, updating it and proposing its approval to the Group’s Board of Directors;
b) discussing ESG reports (quarterly) relating to the development of the set objectives of the ESG Strategy;
c) deciding on corrective actions in the event of adverse developments;
d) evaluating external influences and changes (including regulatory) relevant to the ESG area;
e) deciding on appropriate actions and informing other relevant bodies and committees of the Group companies.

The Sustainability Committee makes decisions by a simple majority of the votes present at the meeting. The Sustainability Committee is quorate if half of its voting members are present at a meeting while also holding a simple majority of the votes of all voting members (including MSS Board members). In the event of absence, a voting member of the Sustainability Committee may delegate the exercise of his/her voting rights to another voting member.

In order to properly integrate ESG into practice, those in positions of responsibility for ESG issues are motivated to act in ways that reduce negative impacts on climate change. This means that the remuneration policy is set up to reward sustainable performance that is in line with our values and risk expectations.
As we regularly analyse our position on ESG issues and the impacts of ESG factors and risks, ESG is integrated into the remuneration of the Board of Directors through key performance indicators, the so-called ESG-related KPIs. The achievement of the KPIs then has a material impact on the variable remuneration component and the KPIs and their achievement are regularly assessed and taken into account in the review for the following period.

MONETA´s focus has always been on diversity and inclusion. That is why the MON FAIR Committee, an advisory body to the Bank’s Board of Directors on diversity, inclusion and gender neutrality, was established in 2020. Its mission is to oversee equal pay for men and women working in the same positions, diversity among employees, inclusion of people with disabilities and equal opportunities for men and women. The Commission also develops support programmes for employees on maternity and parental leave, for employees from the LGBTQ+ community, for employees over 55 years of age and for informal caregivers. MON FAIR makes decisions by a simple majority vote of the voting members present. A simple majority of all voting members shall constitute a quorum at a MON FAIR meeting.

Our performance in selected ESG ratings provides to our investors and other stakeholders with clear and reliable key information, as well as evidence of our sustainability efforts. We see ESG ratings not only as an opportunity to demonstrate the steps we are taking in this area, but also as a way to increase our value in the field of public trading in a transparent and attractive way. Our performance, as measured by ratings and indices, thus provides sufficient transparency to all stakeholders, facilitating informed decision-making and serving as an additional performance factor for the entire MONETA Group in meeting higher standards. (Sustainability report MONETA Group 2021 - page 18)

We embarked on the path of environmental responsibility in 2017, when we issued our first non-financial reporting; however, we started tracking our own carbon footprint a year earlier, in 2016. However, 2017, mentioned above, was an important milestone in achieving carbon neutrality, which we strive to achieve through direct and indirect measures. That was when we were one of the first companies in the Czech Republic to build our own fleet of electric vehicles, contributing to a significant reduction in direct emissions under Scope 1.

Please see the environmental goals on https://esg.moneta.cz/environmental-responsibility
Especially for Environmental part, we continued in 2021 our participation in the Carbon Disclosure Project (CDP), a global project that helps leading companies across economic segments track and publish information about their environmental performance, with a particular focus on climate protection. We have been active in this project since 2018 and demonstrate our climate protection performance on a regular annual basis. In 2021, our rating was at the “C” level, confirming that the company is actively addressing carbon footprint reduction and climate change through coordinated actions, and that the environmental responsibility policy and clear definition of its objectives are a solid part of the corporate strategy.

CARBON NEUTRALITY - We embarked on the path of environmental responsibility in 2017, when we issued our first non-financial reporting; however, we started tracking our own carbon footprint a year earlier, in 2016. However, 2017, mentioned above, was an important milestone in achieving carbon neutrality, which we strive to achieve through direct and indirect measures. In our medium-term ESG Strategy, we have set out the environmental responsibility objectives we want to achieve over the next five years. The most significant of these is the achievement of carbon neutrality in Scope 1 and 2 by 2026. The sub-goals defined below then contribute directly to achieving this commitment and further developing our environmental responsibility. The calculation of our carbon footprint for 2020 has been verified for the first time according to the international standard ISO 14064-1:2018.

ELECTROMOBILITY - In line with our goal to reduce our carbon footprint, we are gradually reducing the number of our company cars. In 2021, MONETA operated 320 company vehicles, 21 fewer than in 2020. We will continue this trend in the coming years, in line with our ESG Strategy. We are the leader in corporate electromobility in the Czech Republic and one of the two companies with the largest number of corporate electric vehicles in the country. In 2021, we operated a total of 68 EVs and two plug-in hybrids. This means that every fifth MONETA’s company vehicle is powered by electricity. In line with our commitment to replace the majority of conventional company cars with electric vehicles and increase their share to 75% by 2026, our fleet has for several years now been exclusively equipped with electric vehicles. We plan to purchase a further 30 electric vehicles in 2022.

RENEWABLE ENERGY - We have been able to reduce our carbon footprint mainly by purchasing renewable electricity. Since 2018, both our headquarters in Prague and Ostrava have been using only electricity from renewable sources. A year later, in 2019, we were able to introduce “green” electricity to our entire branch and ATM network. Last year, we also converted all of our branches, including our office building obtained as part of the Wüstenrot acquisition, to renewable energy. Our data centre also uses green energy exclusively. This means that from January 2021, the Group uses only renewable energy in all its premises. The headquarters buildings and all our branches, which have been undergoing modernisation from 2018, onwards are equipped with technologies that place great emphasis on their environmental impact and low electricity consumption. For example, we make extensive use of LED lighting and low-consumption electrical appliances. In order to continue to reduce energy consumption (electricity, gas, heat, cold) and thus reduce our carbon footprint, we plan to equip our branches with online energy metering devices in 2022. This technology will allow us to evaluate consumption on an essentially daily basis and effectively manage energy consumption at our branches. From 2022, we plan to gradually install photovoltaic panels at two to four selected branches. This pilot project will allow us to assess the extent to which such a technological solution can contribute to further reducing our carbon footprint.

WATER MANAGEMENT AND RETENTION - Due to the consolidation of leased areas and simple measures, we have managed to reduce water consumption by 9,653.5 m3 between 2016 and 2020. Examples of such simple measures that contributed to the result include the installation of aerators on all taps in the branch network or touchless taps at the Group’s headquarters in Ostrava. Our refurbished branches will also be modernised and made more efficient in this respect: they will also be equipped with touchless taps, including the new OptimFlush toilets, which can save up to 50% of water compared to the toilets previously in use.

WASTE MANAGEMENT - In the context of waste management, we strictly comply with legal measures and motivate our employees to sort waste. Particularly since the end of 2018, when the Prague headquarters was reconstructed and thus a fundamental approach to waste policy was taken, we have seen a noticeable decrease in the total amount of waste we produce.

SUPPLIERS - MONETA takes into account not only its own ecological footprint, but also the indirect ecological footprint of downstream suppliers. As our supplier network enables us to provide services to our clients, it is essential that all suppliers comply with applicable laws, regulations and standards, as well as adhere to MONETA’s standards and Code of Ethics. Therefore, in 2021, we prepared what we call a “Supplier Environmental, Social and Governance Impact Assessment”. This ESG questionnaire covers all key areas of sustainability, i.e. environmental policy (long-term sustainability, greenhouse gas emissions, including a plan to reduce them), social policy (respect for human and labour rights) and responsible corporate governance (diversity, fair remuneration). The results of the questionnaire are then used as one of the criteria for the overall evaluation of the selection of suppliers and our possible cooperation with each other. As part of our ESG Strategy, we have set a target of having 95% of our suppliers assessed by the end of 2025.

INNOVATIVE ENVIRONMENTAL PROJECTS - On the basis of the Memorandum of Cooperation, in 2020 we entered into a significant partnership with the Czech University of Life Sciences (ČZU). The subject of this cooperation is primarily financial support for the innovative project Smart Landscape 2030+, which is implemented by the Centre for Water, Soil and Landscape. The aim of this project is to create a so-called Smart Landscape through biotechnical measures and to test it on a pilot basis for the climate change of 2030+. At a site called Amálie near Lány, the ČZU is creating a smart landscape with elements to ensure that the soil can withstand drought and floods. Amalie covers an area of around 500 hectares and is being developed with wetlands, ponds and irrigation systems combined with modern technology. The project is becoming a model for other areas in the Czech Republic and Europe.

FINANCED CARBON FOOTPRINT - In 2021, we began analysing the environmental impact of our financing activities - specifically our loan portfolio. This analysis should be completed by the end of 2022. The results should provide a transparent data base for measurement within our indirect emissions, the so-called Scope 3. In the future, we will be able to focus specifically on reducing the negative impact of our carbon footprint in this category.

Our performance in selected ESG ratings provides to our investors and other stakeholders with clear and reliable key information, as well as evidence of our sustainability efforts. We see ESG ratings not only as an opportunity to demonstrate the steps we are taking in this area, but also as a way to increase our value in the field of public trading in a transparent and attractive way. Our performance, as measured by ratings and indices, thus provides sufficient transparency to all stakeholders, facilitating informed decision-making and serving as an additional performance factor for the entire MONETA Group in meeting higher standards. (Sustainability report MONETA Group 2021 - page 18)

Last year, we also continued our participation in the Carbon Disclosure Project (CDP), a global project that helps leading companies across economic segments track and publish information about their environmental performance, with a particular focus on climate protection. We have been active in this project since 2018 and demonstrate our climate protection performance on a regular annual basis. In 2021, our rating was at the “C” level, confirming that the company is actively addressing carbon footprint reduction and climate change through coordinated actions, and that the environmental responsibility policy and clear definition of its objectives are a solid part of the corporate strategy.

In 2020, the year for which the latest up-to-date data on our carbon footprint is available, MONETA achieved a further reduction in its carbon footprint. Measurements were carried out in accordance with the international Greenhouse Gas Protocol (GHG Protocol) and covered specific GHG emissions in Scope 1, 2 and 3 and in accordance with the technical standard ISO 14064- 1:2018. The inventory included GHG emissions of carbon dioxide, nitrous oxide, methane and partially fluorinated hydrocarbons (CO2, N2 O, CH4 , HFCs). Emissions from other greenhouse gases are not relevant due to the technologies used. The calculation of our carbon footprint for 2020 has been verified for the first time according to the international standard ISO 14064-1:2018 by a certified company SGS Slovakia. All of our employees who are responsible for the underlying data for the carbon footprint calculation have also been trained in detail on ISO 14064-1:2018 and have been certified for completing the training.

In all our activities, we have long been guided by binding legislative and regulatory requirements, both locally and internationally. In line with these, we have developed a robust corporate governance structure that is supported by a set of internal policies and directives that govern our day-to-day operations. Our voluntary initiatives related to the specifics of the banking sector are also reflected in this management system. At the same time, we have also decided to voluntarily join international initiatives that cover the area of sustainable development. The Bank is aware that the ESG area is becoming an increasingly important topic worldwide and needs to be addressed proactively. Therefore, a comprehensive analysis was conducted in 2021, focusing, among other things, on governance arrangements (ESG Cluster, Sustainability Commission), division of responsibilities and key performance indicators. The analysis also identified themes that we will be focusing on strongly in the coming years but are already integrated in our management system. We will continue to monitor the development of legislative and regulatory requirements (in the Czech Republic and the European Union) and reflect them in our activities and internal directives.

ANTI-BRIBERY AND CORRUPTION - We conduct our business in accordance with all applicable laws of the Czech Republic, European Union legislation, as well as all applicable international treaties. These include, among others, Act No. 40/2009 Coll., the Criminal Code, Act No. 418/2011 Coll., on the criminal liability of legal persons and proceedings against them, Act No. 89/2012 Coll., the Civil Code, Act No. 90/2012 Coll., on Commercial Corporations and Co-operatives (Act on Commercial Corporations), Act No. 69/2006 Coll., on the implementation of international sanctions, Act No. 143/2001 Coll., on the protection of competition, Act No. 253/2008 Coll., on certain measures against the legalization of proceeds of crime and financing of terrorism, Act No. 159/2006 Coll., on conflict of interest, EBA Directive on internal govenance (EBA-GL-2017-11) and many more. Our anti-corruption policy prevents corrupt behaviour and undesirable conflicts of interest.

FINANCIAL CRIME PREVENTION - The fight against money laundering and the prevention of terrorist financing, including international sanctions (hereinafter referred to as AML/CFT), plays a key role in the prevention of financial crime. We take matters related to this risk very seriously and incorporate them into a separate AML/ CFT strategy set out in internal AML policies (the so-called Internal Principles Systems)47. Measures aimed at AML/ CFT are in line with all relevant legislation, directives and recommendations of international organisations in this area. All implemented AML/CFT measures are regularly reviewed in the light of current trends and regulatory changes. The AML/ CFT program therefore remains strong, stable and oriented towards continuous improvement of the set processes. MONETA has never been subject to sanctions by regulators. It has also never been the subject of any lawsuits or similar legal actions related to money laundering or terrorist financing. We also strictly adhere to the so-called KYC (Know-YourCustomer) process, which sets out all the measures needed to comply with international sanctions, prevent money laundering and terrorist financing. In addition to these measures, we have set appropriate regulations to prevent the financing of activities in potentially high-risk sectors and activities where there is a threat of potential money laundering. As part of the measures in place, we do not provide products to non-resident clients who do not sufficiently demonstrate a link to the Czech Republic by means of the required document: the only exception is the conclusion of a contract based on a legal obligation. However, all such requests are considered on an individual basis in terms of the risk to the Group, where enhanced scrutiny is always applied. MONETA also has a long-standing and effective Anti-Fraud Management Programme and Anti-Fraud Strategy, which reflect the risk of fraudulent behaviour in all its complexity. These documents are regularly reviewed in light of current trends in fraud risk in relation to financial institutions. Of course, there is also an internal regulatory framework and processes covering the management of fraud risk. Our approach to the AML/CFT area is dynamic, informal and risk-based, with a proactive and experienced AML & Anti-Fraud team. We use cutting-edge AML/CTF tools, particularly for transactional monitoring, sanctions screening and client identity verification through online channels.

WHISTLEBLOWING - To ensure that we do not break any laws, regulations or act in a way that conflicts with our ethical values, we maintain a culture where anyone can raise concerns. We therefore provide our employees with the opportunity to anonymously raise concerns or report any perceived wrongdoing, either directly to MONETA Group management or through a dedicated independent reporting line. We are committed to discussing all cases in a timely and confidential manner.

TRANSPARENCY – ACCOUNTING, TAX - We are aware of the need for transparency in tax administration. The company is a tax resident only in the Czech Republic and fulfils all its tax obligations properly and in a timely manner in accordance with Czech tax legislation. All corporate tax obligations for 2021 are disclosed in the “ Annex to the Consolidated Financial Statements” section of the MONETA Group’s Annual Report. We also comply with the rules of international cooperation in tax administration (FATCA/CRS rules) and duly fulfil our obligations in identifying and reporting clients to the competent tax authority: we also inform our clients about this reporting obligation.

CYBERSECURITY - We implement leading data protection tools into our operations. Our Cybersecurity Department develops cooperation in this area with relevant industry associations and regulatory authorities such as the Czech National Bank, the National Office for Cyber and Information Security, the Czech Banking Association, the Police of the Czech Republic and others. In guarding and protecting the Group’s assets, our Cybersecurity Department cooperates with top companies and third-party partners and benefits from the quality of their tools, services and knowledge. MONETA’s cybersecurity strategy is mainly based on three pillars: a risk-based approach, cybersecurity governance and compliance with legal requirements. Within the risk-based approach, the main focus is on mapping the threat landscape, identifying key threat actors, early identification of current and upcoming risks with regard to their potential likelihood and impact, and defining and implementing preventive or mitigating measures. The main focus of cybersecurity governance is on thorough, comprehensive, harmonised management of all areas of cybersecurity, specification of security rules and standards, specification of security objectives for each area, setting KPIs and reporting and monitoring. To ensure compliance with legal requirements, we focus on overall openness and transparency of our cybersecurity activities to internal and external stakeholders and on cooperation with supervisory authorities and associations within the industry.

RISK MANAGEMENT - We strive to comply with all legislative and regulatory risk management requirements applicable to the banking sector. In addition to the current legislative requirements, we are aware of the main ESG risks facing our company and understand them as drivers of the existing financial risk categories: credit risk, market risk, operational risk and liquidity risk. We take a holistic approach to ESG factors and risks, viewing ESG risks as a state of affairs with negative impacts on the bank, our counterparties, as well as on the assets in which MONETA has invested that are linked to ESG factors. For this reason, we have decided to start work at the end of 2021 to analyse the main ESG risks we face as a bank within the existing risk categories and, in parallel, to identify our potential business opportunities. This analysis will be reviewed annually and its findings will be incorporated into our ESG Strategy. We have also updated our risk catalogue to cover climate and environmental risks: we will extend this update to include social and corporate responsibility risks during 2022. In line with our ESG Strategy, which we published in October 2021, a Board-level Sustainability Committee was also established. This oversees the assessment of the above analysis and the overall management of ESG risks across the Group. Our approach to risk management is based on the availability of relevant ESG data. We understand the challenges we face in relation to the availability of relevant ESG data and we undertake data enrichment projects to gather all the data we need to make ESG risk decisions: particularly with respect to credit risk

• AML/CFT program is closely monitored by the top management. These factors, together with the business model and risk management approach, result in a client portfolio with lower AML/CFT residual risk. We are also very transparent when it comes to AML/CFT. Relevant documents incl. “AML/CFT Assessment Reports” are publicly available on the MONETA website.
• Our commitments and policies against bribery and corruption are built on the foundations of the Code of Ethics. We have internal processes and procedures in place to manage the selection of new suppliers, other third parties and the giving and receiving of gifts from clients or partners: these processes are designed to prevent any corrupt behaviour or undesirable conflicts of interest. We also require the same anti-corruption standards from our employees, partners and suppliers. The above standards also include a policy to avoid improper payments (giving/receiving gifts from clients and third parties) and other areas.

MONETA has an internal policy that covers the following areas:
a) Prevention of money laundering and terrorist financing (AML/CFT policy)
b) Managing the risk of fraudulent behaviour (Anti-Fraud Policy)
c) Prevention of improper payments
d) Conflict of Interest Prevention and Management Policy
e) Whistleblowing
f) Rules on the provision of investment services and prevention of market abuse

• There were no confirmed cases of corruption during 2021. We are proactive in enforcing our policy of minimising the risk of corruption or bribery through a wide range of regular annual training sessions for staff. These trainings are divided into 5 categories: prevention of improper payments, conflict of interest, whistleblowing, Code of Ethics and compliance training. All Group employees have received mandatory training on anti-bribery and anti-corruption measures and are regularly trained in all of the above categories.
• We regularly publish our audited financial results and annual report in accordance with the applicable legislation. In addition, we also publish non-financial information and a quarterly financial results report to inform shareholders of the MONETA Group’s financial position. We are focusing on automating and digitising our financial reporting to achieve paperless processes wherever possible.