Materiality analysis

Bankinter identifies what aspects of its activity have a greater influence on the environment by launching a system for the management of dialogue with its stakeholders. The model is defined in accordance with the guidelines set out by the standard of non-financial reporting, Global Reporting Initiative (G4).  The following are the main mechanisms of dialogue used for this purpose: 

In 2016, the bank's materiality analysis was updated to determine what significant aspects are reflecting the economic, environmental, and social effects of the organisation. This allowed for detecting changes in the surroundings and in the expectations of different stakeholder groups, and to prioritize efforts in programmes that generate the greatest shared value.

This mechanism has improved the effectiveness of the channels of dialogue with social actors. The analysis can specify the priority items in accordance with two parameters: the significance and maturity of aspects related to the financial activity, and the importance assigned to them by the bank's stakeholders (customers, employees, shareholders, analysts of sustainability and ESG investors, social and sector opinion leaders, the media and society at large). 

Bankinter plans its activities while taking into account these results and compares them with the internal analysis carried out by the areas of the bank that are more directly involved in this process of active listening.

The result of this quantitative and qualitative analysis is the materiality matrix, which graphically organises factors of the bank's business according to two aforementioned criteria.

(G4-18, G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27)

Economic axis

Bankinter understands sustainability to mean a business model based on the quality factor that makes business targets compatible with social development and respect for nature.

The bank's sustainability was recognised in 2016, both by socially responsible investment indices like the FTSE4Good, publications such as the Sustainability Yearbook published by RobecoSAM, and by environmental management rankings such as the Carbon Disclosure Project, which includes the largest international companies by capitalisation.

Bankinter is also a member of the United Nations Global Compact Network Spain. As such, it assumes the commitment to incorporate Global Compact's ten conduct and action principles into its activity on human rights --the bank has an online course on this subject available to employees--, labour rights, environment and combating corruption. 

Also, the bank has become a member, along with another 32 large Spanish companies, of the Cluster of Transparency, Good Governance and Integrity, a platform of companies coordinated by Forética, the leading association of companies and professionals of CSR in Spain. The Cluster transfers to Spain the main business principles and transparency, good governance and integrity, and it contributes to the generation of knowledge and collaborates with public authorities and opinion leaders, thus assuming a leadership position in this area.

In December 2016, the bank adhered to the Ecuador Principles, a leading international initiative in the financial sector with the objective of evaluating and managing the environmental and social risks of the projects to be financed. These voluntary guidelines are applicable in project finance transactions that have an amount equal to or higher than 10 million dollars and in corporate loans linked to projects with a total amount above 100 million dollars. From 2017, Bankinter undertakes the obligation to annually report on the processes of implementation and monitoring of the principles. 

The promotion of energy sources that are sustainable, competitive and safe is a key objective for Bankinter's financing. Over the course of 2016, the bank took part in 30 renewable energy projects (photovoltaic and wind energy, among other technologies), with total financing amounting to 84 million euros.

The main novelties in sustainable products and investments were as follows:

• Bankinter Sustainability Fund. It invests in equities that are on the main social and environmental responsibility indices. It is notable that this is a fund rated at five Morningstar planets, and it stands in the 91st percentile of its sustainability category. It increased its assets by 0.5 million and ended 2016 with a total of 76.7 million euros. It attained a profit of 7.3%.
• Responsible investment funds. The bank makes available to its customers 79 funds of international prestige that invest with responsible criteria. Their investment strategies centre on companies dedicated to renewable energies, innovation and technology, and reduction of the impact of climate change, or that are present in sustainability indices. 
• Investments in venture capital funds or companies that invest in sustainable products. The bank held stakes such as the following: 4.3% and 4.5% in YsiosBiofund I and II (biotechnology and life sciences), 10% in Going Green (electric automotion) and 2.5% in Private Change Capital Private Equity Fund (clean technologies). 
• Bankinter Solidarity Visa Card. In 2016, the conditions of the card were modified. The percentage donation from purchases made with deferred payment changes from 3% to 5%. Also, the Bankinter Solidarity Card donates 0.25% of purchases paid at the end of the month. At 31 December 2016, there were 1,382 solidarity card holders. The income generated were used for the financing of social action projects presented in the 2016 'Involvement and Solidarity 2016' event, and which were selected in a vote of all bank employees.
• SME Initiative. In the last quarter of 2015 Bankinter and the European Investment Fund signed their third agreement. The bank provides financing of up to 300,000 euros to companies that are eligible, under highly advantageous conditions, thanks to the guarantee under which it will receive 50% of the transaction from the European Investment Fund. In addition to this new agreement, there is still 145 million euros available in Innovfin 2014, within the scope of Horizon 2020. Its aim is to support the financing of Spanish companies with fewer than 500 workers that conduct research and innovation activities and projects.
• Hal-Cash. The system, which enable customers to send money to any person's mobile phone so they can withdraw it from a cash machine without using a credit card, was used in 2016 by 14,809 customers, who placed 183,070 orders for the amount of 40,267,420 euros. Hal-Cash provides access to financial services to groups that do not have bank accounts.

Social dimension

The institution's social commitment is materialised in the implementation of a large number of programmes in which the participation of the stakeholders is sought. 

Accessibility and financial inclusion

Bankinter is firmly committed to ensuring the accessibility of all its relationship channels with its stakeholders, and it particularly takes account of the needs of disabled and elderly people by offering quality adapted service.

To ensure continuous improvement in management of its physical accessibility, Bankinter has implemented a Universal Access Management System (UAM). The system has been certified by Aenor pursuant to the standard UNE 170001 and it has been implemented in the bank's headquarters (Paseo de la Castellana, 29, Madrid) and in seven branches. In addition, the accessibility criteria incorporated in the work manual have been applied in both the remodelled and new branch offices. They have also been incorporated in the remodelling project of the new singular Bankinter building in Alcobendas, Madrid.

Given the high percentage of banking transactions that Bankinter customers execute on remote channels, equipping these remote channels with utmost accessibility has been considered a priority. 

In terms of digital accessibility, the website bankinter.com has the certification of ICT of Aenor, pursuant to the standards UNE 139803.

Meriting mention among the accessible services started up are the Braille coordinates card for phone transactions, monthly statements in audio and large print formats, an accessible video player, and the advisory service by video-calls in sign language, which is accessible from all branches.

With respect to cognitive accessibility, the bank makes available to its customers a Clear Finance Dictionary, which was developed by Bankinter in collaboration with the Instituto de Empresa, and which adapts the definitions of the most common banking terms to make them more easily understood by all. 

The new Commercial Protocol for bank employees includes service guidelines for differently-abled people for each phase of commercial activity. 

Advanced employee management.

In 2016, the bank renewed its certification as a family-responsible company, and improved on its previous score (EFR).

The bank's advanced people management was recognised in 2016 in studies conducted by Top Employer, Actualidad Económica and Merco Talento (see more information in Human Factor chapter).

Bankinter Innovation Foundation

The Future Trends Forum has been recognised as the best technology think tank in Spain, according to the University of Pennsylvania.

In 2016, the programmes of the Foundation in Portugal were presented (see more information in the Bankinter Innovation Foundation).

Corporate volunteering

Participation of the bank's employees in the social actions of the 'Tic Tac Toe' plan was facilitated through the corporate volunteer management programme Mueve.te. Via this platform, there were 685 volunteers (634 in Spain and 51 in Portugal) in a total of 72 technical, environmental and social activities (64 in Spain and 8 in Portugal) in 2016, reaching a total of 2,548 direct beneficiaries.  The number of employees that participated in volunteer days in 2016 increased by 14%.

In financial education, the following initiatives were noteworthy:

• Participation in the second edition of the 'Your Finances, Your Future' project. Promoted by the Spanish Banking Association (AEB) and the Junior Achievement Foundation, its mission is to develop the skills and knowledge of secondary school and baccalaureate students on managing domestic economy. The programme was given by 51 bank volunteers in three one-hour sessions, ultimately teaching a total of 592 students from 22 schools throughout Spain.
• Financial training programme for students with mental disability. Taught by 11 volunteers from the bank to students of: the Estudiantes Foundation, the Gil Gayarre Foundation and the Integra Foundation, with 34 beneficiaries. It was given in two sessions, in which basic banking concepts were taught, in addition to how to make a balanced household budget. 
• Financial training programme for young people in a situation of social risk. Given by 24 volunteers from the bank in Portugal to 33 beneficiaries of the organisations “Ajuda de Mãe” and “Estabelecimento Prisional de Caxias”.
• Financial training programme for deaf people. Taught in person to 103 people at LSE in different federations of the CNSE (Spanish federation of deaf people) and through knowledge pills on its website, with the aim of providing basic financial knowledge to deaf people, which is available in the digital channels of the CNSE and in RRSS. 
• Mentoring programme. Carried out by 10 volunteers from the bank who have been trained in the European Coaching School, and targeted at students with mental disability in the Campus Project of the Carmen Pardo Valcarce Foundation in order to facilitate their social and occupational integration. It was begun in December 2014, and it will continue until June 2017.

Such initiatives are also highly valued by staff, as they oblige them to develop specific skills to adapt communications to any interlocutor, independently of their skills and abilities.

Partnerships with the third sector

Collaborations with the third sector are a formula to establish valuable relationships between the bank and the community.

Given that they are a significant stakeholder, Bankinter strengthened its support for entrepreneurs, in so far as they are considered the engine for revitalising the economy and a long-term source of job creation and wealth. In addition to the programme developed by the Foundation, the bank supported the following initiatives:

• Collaboration with SECOT (Spanish Seniors for Technical Cooperation) on a platform for both retired and active executives to enable them to convey their knowledge on a voluntary and altruistic basis to innovative entrepreneurs and micro-enterprises.
• Participation in the eleventh edition of the Mashumano awards for young entrepreneurs, with contributions in processes of recruitment, training and financing,
• Collaboration and financing for workshops in support of young green entrepreneurs organized by the start-up Greenweekend.
• Sponsorship of projects of young entrepreneurs of the Junior Achievement Foundation in Portugal. 

Also, strategic partnerships were established with associations related to people with disabilities, such as that entered into with Cocemfe to foster the workforce integration of women with disabilities and the installation of a adapted technology room in the Ilunion residence in the Madrid town of Parla.

Bankinter is a promoting partner of the Lealtad Foundation, a not-for-profit institution whose objective is to foster confidence of Spanish society in NGOs by means of transparency.

Citizens

The following are some of the solidarity actions carried out in 2016:

• Fifth edition of the Involvement and Solidarity programme. A 360º initiative through which ten social projects are being financed, at a total amount of 50,000 euros. It involves different stakeholders of the bank: customers, who use the Bankinter Solidarity Visa; employees, who submitted 136 social projects; society, which participates in and disseminates the project in the social networks; and the bank's executives, who act as godfather to the projects.
• Fourth edition of the Innovation, Sustainability and Network award organised by Bankinter with Expansión and Viesgo, and with the technical advisory of the IE Business School. The award recognises the most outstanding projects by large and medium-sized companies and institutions that meet criteria for social and environmental criteria, and for networked collaboration.
• New toy collection campaign. Organised in December with the collaboration of the Valora Foundation. Some 1,286 toys for 1,214 children were collected for institutions and associations of disadvantaged families throughout Spain. In Portugal, 982 toys were delivered to the beneficiaries of the AMI Foundation.
• Virtual campaign of food donations, with the participation of the bank's employees in benefit of reception centres of the food bank both in Spain and in Portugal. 
• Patronage of Alento Charity Gala. Organised by the Gmp Foundation with the National Ballet of Spain and Danza Down. The entire proceeds – which amounted to 18,000 euros – were allocated to the project 'Emociones' of Down Spain, for the social integration of this group of people.
• Bankinter Madrid-Lisbon Challenge. A charity race for all Bankinter employees, in which a mobile application is used to count all the kilometres accumulated in a weekend. Based on the number of kilometres covered, Bankinter a donation of 6,000 euros to the Junior Foundation.

Social Investment Distribution Platform

The entity has adopted the methodology developed by the London Benchmarking Group (LBG) which measures, manages, assesses and disseminates the contributions, achievements and impact of social action in the community and in the environment. 

Indicators for 2016 are as follows:

Environmental Axis.

Bankinter addresses environmental management by assuming the challenge and responsibility to operate in the most respectful way with the environment, taking the necessary measures to mitigate its direct and indirect environmental impact.

This commitment to environmental responsibility is set out in its Environmental Policy, aimed at enhancing the positive impacts and minimising the negative effects of its activity on the environment.

The Sustainability area is responsible for ensuring compliance with the policy's principles and ensuring the bank's commitment to protecting the environment. The area coordinates the Sustainability Committee, established in 2009 and chaired by the Bankinter Chairman. This body is responsible for guiding the entity's environmental policy and programmes. It has also set up an Environmental working group with the most involved areas which periodically monitors progress.

The main environmental programme of Plan ‘Tic Tac Toe‘ is the Carbon Footprint project, through which the direct and indirect environmental impacts generated by the bank's activity are identified, measured and controlled.

Responsible environmental management also extends to our suppliers and subcontractors and includes environmental certification criteria and environmental clauses in contracts where risk is considered to be greatest.

The entity's Financing and Investment Policies also include environmental criteria. In addition, as mentioned in the chapter on the economic axis, in 2016 Bankinter adhered to the Equator Principles whereby environmental and social analyses will be carried out on all project finance projects which require them.

Similarly the bank collaborates with leading organisations which assess and evaluate its environmental performance, such as the Carbon Disclosure Project (CDP), of which Bankinter has been a signatory company from the beginning. The entity is also a member of the CDP Water and CDP Forest Disclosure projects.

Environmental management system. 

Bankinter has an Environmental Management System (EMS), certified according to the UNE EN ISO 14001 standard to guarantee the continuous improvement of its environmental performance. This system includes three buildings in Madrid and a branch. The Internal Audit area participates in the annual verification process required for certification. In Spain, 38% of the bank's staff is covered by this environmental certification. Portugal also has a certified Environmental Management System at its headquarters in Lisbon, which covers 45% of the workforce.

In its Annual Program of Environmental Management, Bankinter includes a series of objectives and goals aimed at optimizing consumption and correct waste management; The reduction of emissions to the atmosphere and the programming of communication campaigns, awareness-raising and training of employees on good environmental practices. These are detailed below: 

Carbon Footprint

Bankinter has been calculating its integral carbon footprint since 2009 in its three emission ranges: direct (consumption of fossil fuels and possible leakage of refrigerant gases), indirect (electricity consumption) and induced (travel and paper consumption, among other impacts). In 2016, for the fourth consecutive year, Bankinter's calculation of its organizational carbon footprint was verified by an external company, SGS, in accordance with the Greenhouse Gas Protocol and in line with the requirements of the Intergovernmental Panel on Climate Change.

In 2016, Bankinter was also awarded the Reduzco seal from the Carbon Footprint Registry of the Ministry of the Environment, as it has reduced the intensity of its emissions in recent years. 

In 2016, Bankinter emitted a total of 19,043 tonnes of CO2equivalent in Spain, 4.16 tonnes CO2/employee (down 2.2% on 2015).

Scope 1 (direct) emissions totalled 407.3 tonnes of CO2 in Spain. This is a 2.2% increase on 2015 in absolute terms. However, these emissions declined by 1.6% in terms of emissions per employee.  

In scope 2 (indirect emissions), there was a decrease of 1.1% (4.8% in emissions per employee) compared to the previous year in the case of Spain. Total emissions in this scope are 8,813 tonnes of CO2 equivalent (-1.93 tonnes CO2 per employee).

Total scope 1 and 2 emissions fell by 1% (by 4.7% in emissions per employee), thanks to the various energy efficiency measures implemented in recent years, such as the shift to LED lighting, improvements in automation and HVAC and the replacement of equipment with more eco-efficient designs.

Scope 3 emissions (induced emissions) increased by 4% (0.1% per employee), mainly due to the rise in business trips due to increased commercial activity, in line with the financial results presented by the entity in 2016.

Eco efficiency and sustainable use of resources

The company has identified the main eco-efficiency indicators of its activity to be measured and controlled so as to implement all necessary measures to ensure optimum environmental performance. This means minimizing its carbon footprint and mitigating climate change.

Indirect energy consumption by the bank is mainly electricity consumption. This is the main source used by Bankinter (93% of total energy consumed) and its consumption has gradually been reduced in recent years as a result of the savings measures adopted. 

In addition, in 2016, energy audits were carried out at the entity's buildings as required under prevailing legislation to assess the energy management carried out so far (upgrade of equipment to more efficient models, replacement of lightbulbs with LEDs, remote management of consumption, etc.) and establish continuous improvement plans for the future.

The distribution of electricity consumption by energy sources has been determined according to the structure of energy sources in Spain, and is calculated according to the Spanish electricity mix published by Red Eléctrica de España for 2015. 

In terms of consumption of natural gas and gas oil, overall increases (11%) have been identified in relation to 2015, due in large part to the increase in staff in the main buildings of the bank. However, it should be noted that the consumption of these fossil fuels only represents 7% of the total energy consumed by the entity in Spain.

In absolute terms, the energy consumption of the entity has decreased by 0.3%. However, this has meant a 4% reduction in energy consumption per employee, which gives an idea of the efforts being made in eco-efficiency improvements. 

The tables show the comparison of consumption data of Bankinter in Spain in relation to 2015. 

Bankinter acquires paper according to demanding environmental criteria. It is 100% recycled and bears the ecological stamps of Angel Azul and Cisne Nórdico.

At Bankinter Portugal, in 2016 a total of 50.4 tons of paper (0.06 tons per employee) were consumed.

Among the outstanding measures that the Bank has been implementing for the reduction of paper consumption (among other objectives), is the biometric signature solution, which was implemented in fixed office posts and has been extended in recent years to operations related to investment funds. Tablets have been distributed among office employees so that clients can subscribe, reimburse or transfer investment funds with a digital signature. Work is currently underway on the implementation of the biometric signature for other transactions. 

In addition, customer information campaigns have been maintained to replace paper correspondence receipt with the web correspondence model .

Thanks to these measures and the awareness of employees there has been a year on year decline of 20% in paper consumption in Spain (23.7% in the case of paper consumption per employee). 

In the case of electronic waste, the replacement of old with more efficient equipment, the management of confidential information equipment and the start of activity in Portugal have influenced the management of a large quantity of this type of waste at the end of the year, which has been considered as a punctual action. 

In 2016, Bankinter offset its annual direct emissions of 2015 (398 tonnes of CO2) and those derived from the Sustainable Office (16 tonnes of CO2) with its participation in the Zero CO2 initiative of the Ecology and Development Foundation in the Conservation of the Amazon project in Madre de Dios in Peru.

Influence on stakeholders

The Bank has different communication channels, both internal and external, for the dissemination of its various social and environmental initiatives, thus promoting the participation of all its stakeholders. In addition to this Annual Report, the Environmental Portal and the internal blog ‘Let it be known‘ are also available. They are internal tools (on the corporate Intranet) and are open to opinion, reflection and debate from all employees. Among the awareness-raising actions targeted at employees are the following:

• Environmental Web. It provides the entity's staff with news about activities of environmental interest, both internal and external to the bank. It also provides the employee with a suggestion box. In 2016 the video 10 years of Environmental Care at Bankinter was published, where the achievements in environmental management are described.
• Sustainability section in Bankinter blog. It is an independent section whose publications are also disseminated through the bank's social networks (Facebook, Twitter, LinkedIn and Google+).
• XII edition of Environmental Photography Prize. The event, which was held in 2016 under the slogan ‘The Hydrosphere‘, attracted 612 entries including, for the first time, employees from branches in Portugal.
• Support for “The Planet Hour” campaign. This is a WWF initiative to reduce CO2 emissions. To support it, the lighting of all the properties of the bank was turned off and different devices were disconnected. Likewise, the participation of employees and clients was encouraged.

On the other hand, Bankinter participated in the launch of the Climate Change Cluster that promotes WBCSD (World Business Council for Sustainable Development).

They form part of the cluster of 36 companies from various sectors. The Group has deepened the concept, application and implications of carbon pricing, analysed the link between biodiversity and climate change, fostered dialogue with key opinion leaders at the corporate and institutional levels and promoted training in climate change .