2024 became a year of profound changes for TASCOMBANK. Not only change in business, but, especially, change in mentality. We consciously take a course on integration of sustainable development principles, making ESG not just an initiative, but a part of our strategy, corporate culture and what is the most important – a part of daily work of every employee.

 

Why does the bank need this? Because the world is changing and the business that wants to be successful tomorrow, has to be responsible today. ESG is about trust, reputation, ability to see a bigger picture, act at the deeper level and create not only financial results, but a humane and sustainable world.

 About how TASCOMBANK lived through 2024, what challenges we faced, what we managed to implement, how internal culture is changing and why ESG is not just a one day thing, but a labour of love, tells Iryna Oliinyk, head of ESG and sustainable development coordination stream (ESG project manager).

 

How did you manage to organize work of the project team in such an important area as ESG?

Productive work of professionals of different fields in one team, in my opinion, is only possible when all members realize meaning and significance of what they are working on. ESG is not just another initiative; it is, essentially, a new business philosophy. It’s about ecological consciousness, social and managerial responsibility, and corporate culture in broader sense.

Nowadays, no business can be truly successful, if it ignores sustainable development principles. Global economy follows these guidelines.

Foundations for ESG team at our bank were laid thanks to the genuine support of the management. Transformation process began with “Tone from the Top”[БОЯ1] , that is, from understanding and acceptance of  the sustainable development values by the higher management.

It not only gave an impulse, but also a meaning to all things we did further.

 

Who was involved in implementation of ESG project throughout the year? Who became, so to say, the core of this transformation?

Our team is not just a list of names. It’s a living organism that combines experience, expertise and, most importantly, internal motivation to act differently.

 

Key employees of the bank participated in the project: Iryna Sushak, Deputy Chairman of the Management Board; Oleh Kukulchuk, Head of Organization and changes department; Oleksandr Linkov, Head of the Department of credit risks of corporate clients;  Anna Lutsuk, Head of the Operational risks section; Iryna Batyzhmanska, Deputy Head of the Legal Department;  Tetiana Zmiyevska, HR Director;  Oleh Khromov, Deputy Head of the Financial Department; Yana Biberina, Manager of Coordination of compliance control of the banking group and me — Iryna Oliinyk, as head of ESG and sustainable development coordination stream, as well as, colleagues from marketing and communications unit.

 

But we wouldn’t be a team, if not for participation of our other colleagues, namely: my manager Anton Kachan, Head of Compliance Service; Iryna Yushchenko, Head of the Personnel Management Unit; Vsevolod Kucheriavyi, Head of Stream of attraction of external funding of Product Development Unit;  Rostyslav Horupaha, Head of the Labour Protection Section;  Valentyna Verbytska, Ecologist of the Department of credit risks of corporate clients and all other colleagues from business and risk management units.

This project became really cross-functional and that’s exactly what gave it its strength.

 

What were the biggest challenges in 2024?

The biggest challenge was change of the mind-set. ESG is a new concept for many and its depth is not understood right away. We worked all year not only to explain, but also to convey core essence of this approach to every employee.

It is a transformation of processes, change in habits and creation of internal policies, specifically, of environmental  and social policies of the Bank. And the work is still ongoing. But we can see now: there is an understanding in people’s eyes why we are doing this.

 

What motivates you the most?

I am deeply inspired by the realization: we are the generation that can set new standards. I believe that the core principle of sustainable development, - “to meet the needs of the present generation without compromising the ability of future generations to meet their own needs”, - should not  be just left on paper.

 

I feel responsible for what our Bank will be and how we, as people, make our impact on society and the planet overall. It is my internal mission.

 

What did you manage to achieve in 2024?

    The biggest achievement is the fact that ESG stopped being something abstract. It became a part of our reality.

Among the key achievements, the following should be mentioned:

ž   Selection  and approval of ESG goals and initiatives of the Bank for 2024-2025, with their correspondent reflection in the Bank’s Development Strategy.

ž   Creation and filling of the ESG page of the Bank at the official external website of the Bank.

ž   Identification of responsible people of the Bank for the complex management of environmental and social risks of the Bank.

ž   Creation of unified system of environmental and social management of the Bank and its official agreement by the Business Development Fund.

ž   Initiation and conduct of regular internal trainings on topics related to ESG.

ž   Creation of unified knowledge base of the Bank on ESG and sustainable development and at the TASCOMBANK Academy.

ž   Development and start of the pilot project of surveying clients data in the part of  learning of ESG impact of their activities.

ž   TASCOMBANK became a member of the Ukrainian Sustainable Finance Alliance.

ž   Participation in various external trainings, conferences, forums and other events on ESG on the regular basis.

ž   Holding of survey on identification of satisfaction level of the Bank employees with their employer.

 

How implementation of ESG changes internal processes?

ESG changes the logic behind decision making. We’re reviewing approaches to risk management, product development, assessment of partners and clients. We work on reducing carbon footprint, digitalize our documents flow, and change our approach to procurement by choosing environmentally and socially responsible suppliers. We implement ESG into our personnel management system. It’s about inclusion, voluntary work and education. We want that our employees not only work for the bank, but live  by its values.

We also adapt our processes to the World Bank standards, cooperate with IFOs and are gradually becoming a part of global “green” financial ecosystem.

 

How does ESG affect the corporate culture?

Undoubtedly, ESG is already changing employees perception of their work. They see that the Bank cares not only about profit, but also about people, environment and the future.

 

Firstly, ESG contributes to the formation of culture of business transparency. When the Bank implements sustainable development standards, it affects the principles of decision making at all levels. Responsible attitude towards environment, social issues and corporate governance changes the mind-set of the Bank’s employees, encouraging them to anticipate and consider the long-term consequences of their actions.

 

Secondly, ESG also affects involvement of staff. People are more motivated to work at the company that has a clear mission and cares not only about financial results, but also about the society and environment; engagement of  the Bank employees into ecological initiatives, charity projects and voluntary programs creates a sense of collective responsibility and increases the level of teamwork.

 

Thirdly, ESG programs contribute to the culture of learning and innovations. Many ESG initiatives envisage internal trainings, seminars and programs of advanced training courses, thereby not only broadening worldview of employees, but also giving them new competitive advantages in the form of profound knowledge, according to global economic tendencies.

 

Moreover, an integral part of ESG is inclusion and equality at the company. The bank that pays attention to social aspects, implements policies in terms of gender equality, creates comfortable workplace conditions for all employees and attracts people, who are looking not only for financial opportunities, but also, for values that mirror their personal worldview, and, therefore, are open to lasting cooperation, which prevents the emergence of such serious problem as employees’ turnover.

All this forms trust, increases motivation and creates a sense of unity. And that’s priceless.

 

Let’s pay more attention to the ESG risk management, where TASCOMBANK already operates in compliance with the standards that are going to be tomorrow’s norm 

“Although, there are currently no mandatory regulations on incorporation of ESG risks into the risks management system at the national level, we’re already preparing to these changes, — says Oleksandr Linkov, Head of the Department of credit risks of corporate clients.  — We classify risks, use questionnaires, monitor incidents and report to the Business Development Fund on compliance with the environmental  and social standards within the “Affordable loans 5-7-9” program. TASCOMBANK already operates in compliance with the standards that are going to be tomorrow’s norm”.

 

Furthermore, ESG transparency and reporting is one more principle that is becoming a basic one: external and public communication, feedback and complaints management – these things are operating already or are being implemented.

 

The important part of this system is education of employees and clients, implementation of ESG policies and cooperation with experts. Valentyna Verbytska, Ecologist of TASCOMBANK, talks about this. The Bank closely cooperates with the experts of the Business Development Fund, participates in trainings, practical meetings, which are organized by the Fund; some of them are organized in cooperation with the IABU, the ASDE and others.

 

“It’s not a one-time action. We monitor implementation of corrective measures, incidents, changes in the client’s activity, review the level of risk, — Valentyna explains. — This way, the Bank not only creates an evaluation tool, but a full-fledged client support system within the requirements of environmental and social standards.

 

Evaluation of environmental and social risks of the client includes:

• identification of type of activity that cannot be funded;
• analysis of impact on the environment and social aspects;
• risk category identification;
• development of Plan of corrective actions (PCA), which becomes a part of loan agreement;
• constant monitoring of PCA execution during the entire term of funding.

 

Considerable progress was made in 2024. In December, we implemented two core documents: Environmantal and social policy of the Bank and the internal regulatory document on evaluation of environmental and social risks within the “Affordable loans 5-7-9”loan program. Since January 2025, these tools came into effect.

 

We approach this matter systemically, engaging the colleagues from all decision making levels. There’s a strategy and an approved plan; work group monitors efficiency of used instruments and their impact on financial results. It’s a dynamic process, which allows adjusting approaches in real time.

At the first stage, this concerns clients that receive funding under the “Affordable loans 5-7-9” program. Meanwhile, aftergainingpractical experience, the Bank plans to broaden these approaches to a wider range of clients”.

 

In turn, Oleksandr Linkov, Heaf of the Department of credit risks of corporate clientsof TASCOMBANK, says:

 

“We understand that ESG risks must be integrated into the general risk management system with understanding of reality, in which the business currently functions in Ukraine. In 2024, the Bank implemented the requirements on evaluation of environmental and social risks in accordance with the standards of the World Bank and the Business Development Fund. These approaches allow identifying the most essential risks, inherent to businesses that seek funding within international programs.

 

An integral part of the ESG transformation is creation of the environmental, social and governance risks management system  (ESG risks). This work requires not only an update of processes, but also a cross-functional cooperation, an in-depth expertise and a strategic vision”.

 

Iryna, how do you see ESG in the Bank’s strategy in 5 years?

In 5 years, ESG will be not just a section, but a base of the whole strategy. We can already see changes in the requirements of investors, regulators and markets. ESG reporting is becoming mandatory; its criteria are getting stricter.

 

Banks, which adapt in time, gain advantage in access to resources, in clients’ trust, in resistance, because, with time, ESG criteria will be one of the key importance, when granting loans and forming investment portfolios. This means that funding will be mostly received by companies that adhere to environmental standards, efficiently manage social risks and conduct transparent and honest business.

 

Growth on the market of “green” and social bonds is to be expected, because the investors are searching for instruments with high levels of resistance more and more often. The Bank can become a mediator between companies that need funding for significant environmental or social projects, and international funds that are ready to invest in sustainable initiatives.

 

In addition, ESG reporting for financial institutions is gradually becoming mandatory around the world. Right now, the European Union actively implements the rules, according to which, banks will be required to disclose information on carbon footprint of their loan portfolios, social impact of their activity and corporate governance mechanism.

 

In very short, not even 5, but 2-3 years, term, these requirements may become a standard for Ukraine too.

So, ESG, gradually, one way or another, will become an integral part of banking activity. Financial institutions that adapt to the new requirements today, will gain a competitive advantage - access to the best investment resources and an ability to manage ESG risk more efficiently, and TASCOMBANK has a chance to be among the leaders. Because we’re already creating a systematic, deep and honest ESG transformation.

And, most importantly, ESG will help to create a business that not just earns money, but also leaves behind something truly valuable.