To our stakeholders:

I am pleased to confirm that Khan Bank reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of human rights, labor, environment and anti-corruption.

In this annual Communication on Progress, we report on our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Khan Bank joined the UN Global Compact on April 30th, 2010, pioneering this initiative in Mongolia and leading others. However, due to a failure to fulfill its reporting duties within the prescribed timeframe and miscommunication issues, the Bank was removed from the UN Global Compact on April 30th, 2012. Despite this, Khan Bank has continued to comply with the sustainable development principles in our day-to-day business, while maintaining its leading position in corporate social responsibility in Mongolia. In 2007, the Bank created the Khan Bank Foundation in an attempt to implement corporate social responsibility more systematically and sustainably. As the leading bank in the country in making tangible contributions for the greater good of e society through the Khan Bank Foundation, we are also committed to being a leader in implementing, measuring and reporting the sustainable development goals.
Your consideration in accepting Khan Bank’s request to rejoin the UN Global Compact is greatly appreciated.

Sincerely yours,

______________
John Bell

Khan Bank's human resource policy specifies the importance of equal rights and gender equality principles, as well as providing all employee benefits in accordance with the Mongolian Labor Law and other applicable laws.
In addition to employee welfare, Khan Bank has also been committed to protecting customer rights. Every Khan Bank branch serves seniors, persons living with disabilities and pregnant women without a queue.
Khan Bank employs persons living with disabilities in accordance with Mongolian laws and regulations. The Bank’s human resource policy and internal procedures highlight the importance of protecting their rights and equal rights principles. Khan Bank is free from any discrimination and inequality in its operations.

The annual National Campaign Against Cancer, initiated by the Bank in 2011, has been giving individuals access to free health screenings, organizing professional training courses for local doctors, and raising public awareness about preventing cancer.
Khan Bank has been implementing a variety of projects aimed at protecting and increasing awareness of human rights and children’s rights through the Khan Bank Foundation. Children living with disabilities were welcomed at Khan Bank's headquarters for a special event to help them realize their potential and give them hope for a brighter future on the occasion of Children’s Day.

Khan Bank pays special attention to employee working conditions, the working environment and employee satisfaction, and opened its new headquarters, Khan Bank Tower (financed by the Bank’s own capital), equipped with all the tools and equipment needed for day-to-day business operations. Over 1,000 Khan Bank employees are currently working at Khan Bank Tower.
Khan Bank has been implementing its corporate social responsibility initiatives through the Khan Bank Foundation. As of June 30th, 2018, the Bank has invested a total of 3.5 billion MNT in over 350 projects in various areas, including public health. In an attempt to support public education, a total of 1,300 students have been successfully granted the annual Khan Bank Scholarship since 2007, with 165 top students awarded the scholarship in the 2017-2018 academic year.

Khan Bank offers a competitive salary to its employees while adhering to a policy in which salaries are increased systematically and employees are paid on time.
From the standpoint of labor safety and creating a healthy working environment, internal and external audit reviews are performed regularly, in accordance with international standards, to ensure the functional and stable operations of the Bank.

Khan Bank operates within Mongolian laws and regulations and is totally free from any political, social, or individual influence and pressure.
The Bank is committed to promoting engagement with every employee, listening to their voices in decision making at all levels and taking employee satisfaction surveys for the improvement of our human resources policies and procedures.

Within the scope of its corporate social responsibility to encourage the employment of single mothers, Khan Bank organized training for women residing in suburban areas on handicrafts and growing plants on their premises to ultimately help them find new and stable income sources.
Under the above mentioned principles, Khan Bank currently employs a total of 6,000 employees, including contractual employees and employees on leave.
Employee social insurance, health insurance, and tax payments are made in accordance with the applicable laws and regulations of Mongolia, and the Bank provide's equal opportunities to employees on leave to return their jobs.

Khan Bank's loan operations procedure focuses on supporting eco-friendly, green businesses and projects. In doing so, the Bank collaborates with international financial institutions to learn from their experiences and best practices, improve its loan operations, and implement sustainable development goals.
Khan Bank, in order to cultivate an eco-friendly employee culture, has been organizing training and campaigns among employees to encourage the efficient consumption of water, paper, and electricity, as well as raising awareness about environmental issues.

Khan Bank has been implementing, cooperating and investing in a range of environmental projects aimed at protecting strictly protected areas and national parks, as well as supporting the preservation of endangered species, especially Mazalai bears, through the Khan Bank Foundation.

Khan Bank continued its contributions to the fight against global warming and desertification through the Khan Bank Foundation’s annual Khan Bank Forest project by planting 23,000 trees nationwide with the help of its branch employees.
In the past two years, through the Khan Bank Foundation, the Bank has invested over 800 million MNT in social welfare, delivering tangible contributions to our communities.
Through the Bank’s commitment to promoting not only employee health but also the nation’s public health sector, 10,000 individuals received free health screenings, over 1,000 doctors have been trained, and over 500 Khan Bank employees became health volunteers under the National Campaign Against Cancer in the last 2 years. The Bank's Campaign Against Hypertension has provided 6,000 individuals with access to free health screenings, over 200 doctors have received training, and multiple trainings and campaigns to improve public awareness about living a healthy lifestyle have been carried out over the last two years.

Khan Bank prohibits employees and the organization itself from getting involved in corruption and bribery in its operational procedures, and puts integrity first in its daily operations.
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Quarterly internal and annual external audit reviews are regularly conducted in the Bank to prevent employee and senior management involvement in corruption and bribery.
New employees are provided with training on the importance of ethical behavior and integrity in the banking industry, to help them adapt to the Bank’s culture of honesty and equality from the very beginning

Khan Bank was ranked 3rd among the top 100 entities in Mongolia and named Taxpayer of the Year for the last 2 consecutive years, in recognition of its business ethics, transparent reporting, prompt tax payment, and continuous contributions to the Mongolian economy.