OTP Bank : Group Sustainability report 2020

Sustainability

Report

Contents

The following icons are used to indicate additional information and help you navigate through

the various topics.

More information on another page of this Sustainability Report.

More information about the subject available on our website.

For additional information see the Annex.

HU Information relevant to specific subsidiaries and countries are marked by country codes:

AL I BG I HU I HR I MO I MD I RO I RS I RU I SK I UA I SI

About the Report	3
Chairman's Welcome	6
OTP Group	7
I.	Our Approach to Sustainability	14
II.	Responsible Corporate Governance	18
III.	Main Areas of Focus	23
1.	Addressing the pandemic	23
1.1.	Preparing for the coronavirus situation	25
1.2.	Encouraging the use of digital services during the coronavirus pandemic	26
1.3.	Supporting customers in the challenging period	27
1.4.	Supporting employees in the challenging period	29
1.5.	Supporting health institutions	31
2.	Focus on customers	33
2.1.	Customer service	37
2.2.	Accessible customer service	45
2.3.	Responsible marketing communication, clear and objective information	46
2.4.	Responsible selling	47
2.5.	Improvements to complaint management	47
2.6.	Measuring customer satisfaction	50
3.	Improving financial literacy	52
3.1.	Improving financial knowledge regarding banking services	56
3.2.	OTP Fáy András Foundation	57
3.3.	Additional programmes aimed at improving financial literacy	59
4.	Expert financial services committed to sustainability	61
4.1.	Households and residential communities	64
4.2.	Micro, small and medium-sized business customers	68
4.3.	Agro sector customers	70
4.4.	Large corporate projects with environmental benefits	71
5.	Ethical business behaviour and security	75
5.1.	Compliance and adherence to laws and regulations	78
5.2.	Enhancement of risk management systems	83
5.3.	Security and data protection	84
5.4.	Payments to stakeholders	90
6.	Responsible employer	92
6.1.	Employment	95
6.2.	Remuneration and rewarding of employees, career opportunities	101
6.3.	Training and education	102
6.4.	Engagement of employees	104
6.5.	Employee satisfaction measurement	105
6.6.	Health, working environment	106
7.	Environmental protection	110
8.	Citizenship	121
Annex		129
GRI content index	133

Responsibility

Transparency

Comprehensive Information

About the Report

A comprehensive insight into OTP Bank Plc's operations is also facilitated by our annual and quarterly financial reports and responsible corporate governance reports.

GRI 102-50,102-52,102-54,102-56

This Report is OTP Group's Sustainability Report for the 2020 reporting period. The Report has been prepared in accordance with the GRI Standards: Core option1; moreover, we also report on individual indicators of the SASB2 standards for Commercial Banks, Consumer Finance and Mortgage Finance. We issue our Sustainability Report annually; however, we present much of the data over a 5-year horizon. The external assurance of the Report has been performed by Deloitte Kft..

GRI 102-46

Management approach in defining the content of the Report

1. Information that may be of interest to stakeholders;
2. aspects deemed material
   by the management of OTP Bank;
3. information used as input for ESG (Environmental, Social, Governance) ratings;
4. information necessary for compliance with the GRI Standard (including compliance with the materiality principle).

GRI 103-1		GRI 102-47,103-1
We defined material topics in 2014 in accordance	List of the material topics of OTP Bank Plc.
with the criteria of the materiality principle, in the
context of executive assessment, which we revised	• Socioeconomic compliance
in 2018 based on the results of an extensive	• Anti-corruption
stakeholder survey	see Part I.As the result of	• Economic performance
our stakeholder research confirmed the outcome	• Preventing anti-competitive behaviour
of our earlier assessments, we have not changed	• Marketing and labelling
our material topics but slightly modified the	• Customer privacy
structure of the report, placing greater emphasis	• Market presence
on certain topics such as financial education and	• Non-discrimination
environmental protection. Involving sustainability	• Public policy
experts, conducting regular benchmarking	• Indirect economic impacts
analyses, ESG assessments and monitoring the	• Training and education
development trends in the sector on a continuous	• Labour/management relations
basis all serve the purpose of understanding and	• Occupational health and safety
incorporating the sustainability context and our	• Security practices
impacts. In 2021 we are planning to prepare a	• Product portfolio (sector-specific)
materiality analysis.		• Employment
		• Local communities
		• Diversity and equal opportunity
		• Environmental compliance
		• GHG emissions
		• Energy

1. The GRI (Global Reporting Initiative) is the most widely recognised and applied sustainability reporting framework at the international level.
2. Sustainability Accounting Standards Board

4 About the Report

Report Boundary

The report Boundary extends to OTP Group except in the following cases:

• Security practices: the report covers the supplier chain as well,
• Public policy and indirect economic impacts: only OTP Bank (OTP Hungary) and subsidiary banks with significant weight within their
  countries are covered OTP Group

GRI 102-45

For the purposes of this Report, OTP Group comprises organisations that perform activities relevant to sustainability and have a material impact in this regard: OTP Bank (parent company), all foreign subsidiary banks and the following

Hungarian subsidiaries: OTP Jelzálogbank Zrt., OTP Lakástakarék Zrt., OTP Faktoring Zrt., Merkantil Bank Zrt., MerkantilBérlet Kft.., OTP Nyugdíjpénztár, OTP Egészségpénztár, OTP Pénztárszolgáltató Zrt., OTP Ingatlanlízing Zrt., OTP Ingatlan Befektetési Alapkezelő Zrt. OTP Alapkezelő Zrt., OTP Hungaro-Projekt Kft.., OTP Ingatlanüzemeltető Kft.., Monicomp Zrt., OTP Mobil Kft.., OTP eBIZ Kft.., OTP Pénzügyi Pont Zrt., OTP Ingatlanpont Kft.., OTP Kártyagyártó Kft..

We present the data in the following subsets:

• predominantly: OTP Bank and OTP Group
• breakdown by country, where required by the GRI
• financial data: OTP Core3 and OTP Group.

GRI 102-10,305-1,305-2

In 2020 OTP Banka Slovensko - the Slovakian subsidiary of OTP Group - was sold; the Report contains the data of the organisation until 30/10/2020. In Serbia, two subsidiary banks - Vojvodjanska banka a.d. and OTP banka Srbija a.d. Beograd - still operated as two separate entities in 2020; the name 'OTP Bank Serbia' includes both entities. Of the subsidiaries acquired in 2019, from 2020 the Report covers the Bulgarian Expressbank and the Serbian OTP banka Srbija a.d. Beograd in order to ensure that the Report contains the data of all member companies for the full year. This method is also consistent with the GHG Protocol applied for the calculation of greenhouse gas emissions. Consolidation approach applied for the

topic of GHG emissions: operational control.

When presenting non-quantifiable information and practices, we always specify the companies to which they refer.

Further information on our sustainability

performance is available on our websitewhere we present general information on our responsible operations, their impacts and our principles.

A comprehensive insight into OTP Bank Plc.'s operations is also facilitated by our annual and quarterly financial reports and responsible corporate governance reports, which are

available on our website.The Annual Report incorporates the non-financial statement in compliance with statutory requirements.

Customers can also learn about the Company's sustainability activities on the display screens located in our branches.

Standalone sustainability reports are issued by OTP Bank Romania annually and by OTP Bank Croatia every other year.

3 The Report covers the members of OTP Core irrespective of size. OTP Core is the business entity measuring the core activities of OTP Group Hungary, comprising: OTP Bank Plc., OTPJelzálogbank Zrt., OTP Lakástakarék Zrt., OTP Faktoring Zrt., OTP Pénzügyi Pont Zrt.. and entities performing group financing activities; also included are OTP Bank Munkavállalói Résztulajdonosi Program Szervezet (OTP Bank's Employee Stock Ownership Plan Organisation), OTP Kártyagyártó Kft.., OTP Ingatlanüzemeltető Kft.., Monicomp Zrt., as well as OTP Ingatlanpont Ingatlanközvetítő Kft.., OTP Mobil Szolgáltató Kft.. and - from 2020 - OTP eBIZ Kft..

5 About the Report