55 GRI Index and Assurance statement Engaged citizen Fair partner Responsible banker Human Capacity Report Sustainability management Overview Foreword Responsible lending The RZB Group is committed to responsible lending policies. This means that we seek to lend customers only as much as their financial situation can bear. In accordance with our “Guidelines for avoiding the overindebtedness of borrowers and for dealing with overindebted borrowers” (see also “Dealing respectfully with customers with payment difficulties” on page 57), we strive to provide in advance the clearest, most comprehensible information possible concerning our loan products and to conclude agreements with our customers that contain equally clear lending conditions. This includes an explanation of the entire process, the precise steps involved as well as the responsibilities, risks and primary lending conditions associated with a loan agreement (in particular the costs of the loan, repayment amount, precise deadlines, due dates and number of installments). We strive to prevent our customers from taking on too much debt by employing, among other measures, modern creditworthiness procedures for the issuing of loans based on clearly defined assessment criteria. The risk of a possible default should be avoided from the outset in order to prevent our customers from suffering financial cuts in their living situation and living standards. Subjective selection factors, such as gender or religion, play no role when deciding whether to issue a loan. Before issuing the loan, the customer’s creditworthiness is checked. We strive for the greatest possible level of objectivity in order to reach an unbiased and transparent lending decision. This is only possible if the customer provides all the necessary data and information. The RZB Group aims to offer the customer a suitable and tailored offering based on the available information and results of the creditworthiness assessment. Lending policy and lending decision policy Our business model is oriented around the high level strategic goal of creating long-term value. Responsible lending is a significant component of this model. We achieve this with a lending policy that is based on continuity. We remain a fair and reliable lender to businesses with future prospects, even in difficult times. And we hold a clear position regarding the handling of sensitive business areas. The Code of Conduct is part of our lending policy. All employees involved in lending are accordingly obliged to act responsibly and also to carry out their supervising duties with great care. Likewise, the reputation of our group must be con sidered in all activities and decisions. The executives of our company is responsible for compliance with these standards in their respective areas of responsibility. Specifically, we are committed to not finance – directly or indirectly – companies, projects or parties which use forced or child labor or which contravene the European Human Rights Convention, the legal working and social obligations of the respective countries, the applicable regulations of international organizations and, in particular, the relevant UN conventions and rights of the local population or indigenous people. The financing of or participation in transactions or projects which put the environment at risk (e.g. destruction of the rainforests or environmental and water pollution) is not in accordance with the business policy of RZB Group. Our employees are required to ensure that when auditing financing and projects, the company being financed is using resources in a way that ensures compliance with the respective regional and EU environmental legislation as well as with the international agreements on protecting the environment. Furthermore, the RZB Group does not participate in the building of, or transactions with, nuclear power plants or their operators. Likewise, we are not involved in business transactions involving weapons and other military goods, or involving materials of repression in countries where there is, or is expected to be, military conflict or political unrest. The RZB Group does not invest in companies that produce military goods or weapons. Financing and other transactions with military companies are strictly restricted. In addition, the RZB Group complies with international standards on financial sanctions and trade restrictions. As previously mentioned, we are also a signatory of the Global Compact of the United Nations (see page 12). The credit portfolio of the group is controlled by means of the portfolio strategy. Lending in different countries, sectors or types of products is thus limited which enables the concentration of undesirable risks to be avoided. The risks and potentials of various industries are evaluated in individual countries based on an ‘industry heat map’ which allows potential environmental risks to be taken into account, among other things. On this basis, lending
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