Summary CSR Report 2018
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Summary
CSR Report
2018
Another year committed
to society to our customers to our community to our team .
CORPORATE SOCIAL RESPONSIBILITY REPORT
AND CONSOLIDATED NON-FINANCIAL STATEMENTS 2018

01

Chairman's letter

"The Bank's social vocation is grounded in its legal form as a cooperative, in its corporate mission to be active in all economic sectors and in its local regional footprint, creating a symbiosis that is almost existential for the Bank in that the Bank's development parallels that of the community where it is active and each relies on the other. The region generates initiatives for development and we support these initiatives financially and socially.
Caja Rural de Navarra's business keeps it close to its community and impacts its social environment. This helps encourage sustainability and embodies our commitment to local economic development which, in turn, helps shape the present and future environment in which we operate."
Ignacio Terés de los Arcos
CHAIRMAN

02

Corporate culture

Our values are disseminated through:
  • Our comprehensive branch network and advanced virtual banking systems which create a close and trusting relationship with our customers.
  • Teamwork, which includes everyone and considers the community in the pursuit of progress.
The Caja Rural "style":
  • Human scale
  • Personal service
  • Professionalism
  • Modernity
…with commitment, responsibility and a closeness to the community that helps build trusting relationships.

03

Caja Rural de Navarra. 2018 in figures

New customers
 
33,835
Loan book
Up by
6.31%
Liabilities
Up by
5.21%
Branches
 
252
ATMs
312
Shareholders’ equity
1,092
Million
Customer deposits
8,020
Million
Employees
965
Loans and advances to customers
7,781
Million
Directly generated economic value
229
Million
Education and Development Fund
9.96
Million

04

Customers

The Bank has always been committed to customer focus as one of the core principles of its business.
04Customers

4.1 Profile and distribution of customers

Total customers
594,670
Individuals
545,836
Legal entities
48,834
(Companies, Institutions and Others)
Action principles
04Customers

4.2 Significant actions in 2018

Continuous improvement of communication and operational channels: Ruralvía (our online bank)/ Rvía App/ Ruralvía Report / Ruralvía pay/ Apple pay/ Blog. New transactions made available through the digital channel: credit card applications, prepaid cards, virtual cards, the Via T card, funds run by independent asset managers, regular contributions to pension funds through online banking, etc

We launched the "Measuring customer service in branches" project to make sure we were compliant with regulations and improve the customer experience

All pension funds sold are managed in accordance with an SRI policy. We now also offer two socially responsible investment funds: Rural Gestión Sostenible I and Rural Gestión Sostenible II. Caja Rural de Navarra also applies a socially responsible investment policy to cash managed on behalf of its listed assets portfolio (fixed income and equities).

In 2018, 100% of branches and 87.67% of all employees were qualified to advise customers.

04Customers

4.3 Dialogue with our customers and customer relationship channels

The Te escuchamos initiative collected feedback on the Bank and its services from 4,423 Bank customers through an online questionnaire.
Customer Services Department:  1,921 complaints or claims. A 65.9% reduction on 2017
The Bank is active on the following social networks:
Branch network
In 2018, Caja Rural de Navarra opened 3 new branches in the Basque country, bringing its total to 252 in the three regions where it operates. The Bank now has 73 branches in locations with fewer than 3,000 inhabitants, none having been closed in recent years. Its presence in these locations is fundamental to its provision of a full financial service, which unquestionably helps sustain economic activity and so over the medium term helps prevent depopulation in these areas. This is part of the Bank’s social commitment to the rural world, the market where it began many decades ago.
total branches
252
new branches in the Basque Country
3
branches in communities of fewer than 3,000 inhabitants
73
04Customers

4.4 ATMs and other devices

The Bank has finished modernising its ATMs so that they can accept deposits, issue receipts for cash deposits (customers and non-customers) and conduct "contactless" transactions.
Including ATMs provided under agreements with other institutions, the Bank's customers now enjoy preferential benefits at nearly 8,000 ATMs.
04Customers

4.5 Sustainability

As part of its sustainability vision, Caja Rural de Navarra some years ago created a Sustainability Framework in its loan book which aims to develop financing lines that have a greater social and environmental impact on the regions where it is active.

In April 2018, the Bank issued a new €500 million sustainable bond, mostly placed with international investors specialising in green or sustainable bonds.

Sustainalytics has certified that the Bank's sustainability framework meets relevant principles and objectives, including:

UN Sustainable Development Goals (SDGs):

Caja Rural de Navarra has aligned the nine categories of its sustainability framework with the SDGs:

3,148

million lent

44,121

beneficiaries (individuals and legal entities)



04Customers

4.6 Entrepreneurs and SMEs

Línea Inicia
Caja Rural de Navarra has for 10 years now been offering a specific financing line to support entrepreneurs called Línea INICIA. The main aim of this credit facility is to support new entrepreneurial projects from start-up, giving them access to funding on advantageous terms and tailored to the needs of the business.

1,700

new businesses supported

3,400

jobs created (381 in 2018)

75%

Success rate of businesses backed

SMEs
Caja Rural de Navarra has always supported SMEs, building up the essential business fabric so that the regions where it is active can develop and their productive capacity can be competitive.
"Over 40% of companies have been loyal customers of the Bank for more than 10 years."

1,160M€

Financing

4,539

loans

3,221

borrowers

5.4%

new companies in 2018

05

The team

At Caja Rural de Navarra we embrace the personal and career development of our employees as part of our corporate mission.
05The team

5.1 The team
in 2018

Support and guidance for the team is part of our corporate culture. We trust employees, give them responsibility and demand effort and commitment. This two-way process helps mould Caja Rural employees, creating value and competitive advantages for the organization and enhancing the person’s career development and employability.
05The team

5.2 Training policies

Caja Rural de Navarra promotes collaborative training among employees. We understand that internal training is essential to transmit the company's values and know-how and for day-to-day professional growth as well as permanent knowledge management and continuous learning.
Of total training hours, 103,576 were related to regulatory compliance, especially MiFID II and the Spanish Insurance Brokerage Act.
05The team

5.3 Measures to promote employment

1. COMMITMENT TO THE UNIVERSITY ENVIRONMENT:
We have in-house programmes to welcome and fully integrate people into the organisation. We provided 169 training scholarships through these programmes in 2018.

2. COMMITMENT TO NEW EMPLOYEES:
At Caja Rural de Navarra, we take responsibility for the professional development of newly hired employees. We support and guide them as part of our culture. We show confidence, give early responsibility and demand effort and commitment.

3. COMMITMENT TO CREATING EMPLOYMENT:
In 2018, 24 temporary contracts were made permanent. We uphold our commitment to secure employment.

06

Suppliers

06Suppliers

6.1 Supplier and employee relations

Caja Rural de Navarra seeks to maintain with its suppliers and partner companies a close, respectful, trusting and transparent relationship which promotes in-depth knowledge of the companies we contract with and confidence in the quality of the services provided. Relationships always comply with the confidentiality provisions of Organic Law 15/1999, of 13 December, on Personal Data Protection (LOPD).

Caja Rural also has a Suppliers Handbook, approved by the Governing Board which sets, among other internal rules, the criteria for selecting suppliers. In general, supplier selection procedures must meet criteria of objectivity, impartiality and equality of opportunities.

07

Caja Rural de Navarra
and the environment

At Caja Rural de Navarra we see our environment as a valuable asset to be preserved and human activities must take account of the stress we put on the natural environment.
07Caja Rural de Navarra and the environment

7.1 Actions

We take action on multiple levels to balance the development of our business with the needs of the environment:
07Caja Rural de Navarra and the environment

7.2 Waste management

Caja Rural de Navarra conducts its business through its branch network and the waste it generates is managed in accordance with current best practice, considering both mandatory regulations and ways of reducing, reusing or recycling waste.

Most of the waste generated is managed as follows:

  • Paper: specific containers for paper and cardboard in the street.
  • Toner cartridges: collected by a company licensed to recycle and reuse them.
  • Fluorescent lighting and batteries: taken to recycling centre.
  • Obsolete computer hardware which cannot be reused: donated or returned to the supplier.

07Caja Rural de Navarra and the environment

7.3 Sustainability projects

Support for sustainability projects takes multiple forms, including the following:

Loans to fund the generation of electricity from renewable sources – solar, wind, geothermal, hydro-electric, etc. – use of bio-fuels, development of infrastructure or systems for renewable energy and the manufacture of components for these industries.

Total loans and advances (millions)

39.7

loans

80

borrowers

57

The current mortgage book includes at least 2,498 homes with energy ratings A, B or C (“energy efficient housing” as defined by the sustainability framework).

Total loans and advances (millions)

443.1

loans

3,711

borrowers

3,024

Loans to develop equipment and technology that make more efficient use of resources and/or reduce waste.

Total loans and advances (millions)

25.8

loans

74

borrowers

51

Eco Integra

Integration, recycling and circular economy project

08

Caja Rural de Navarra and society

Caja Rural de Navarra, as an entity deeply committed to its social base of 164,960 members and 594,670 customers, is directly involved in wider society. It therefore conducts its business within a Corporate Social Responsibility framework.
08Caja Rural de Navarra and society

8.1 Social welfare fund

Caja Rural de Navarra’s vehicle for its social actions – donation of economic resources to projects intended to benefit wider society – is its Social Welfare Fund. This is used to return part of its profits to the community as a social dividend.

How much?
10% of the available surplus (profit) each year.

What type of activities are supported?:

  • Training and education of Caja Rural employees and members in cooperative principles and values.
  • Promoting the cooperative model and fostering relationships between cooperative entities.
  • Cultural, business and welfare initiatives serving the local area or community in general, initiatives that enhance quality of life, promote community development and/or protect the environment.

Who sets the general guidelines for support?
The General Meeting.