Our Commitment

As an International Company, we believe our success as a business is deeply rooted in our responsible management approach, which is consistent with UN Global Compact (UNGC)’s Ten Principles on human rights, labor, environment, and anti-corruption. By carefully considering environmental, social and governance factors in our business decisions, our focus is on driving sustainable long-term value in our operating businesses and investments, while enabling economic and social progress at large.

Absa Bank Mozambique became a signatory to the UNGC in 2021 and since then, the Ten Principles have helped inspire our Company´s culture, programs, and initiatives, as well as our commitments and partnerships.
Management Approach

At Absa Bank Mozambique, we invest in companies with sustainable business models that share the same philosophy and commitment to acting responsibly and ethically, and to serving the large community in general. Our company have a long and proud history of being responsible employers, and consistently demonstrate integrity and high ethical standards. We have endeavored to build our business and this foundation and have long recognized that our success is predicated on the success of our people and our clients, on protecting the environment and on contributing to economic prosperity and to the communities in which we operate.

As part of our active ownership approach, we engage both formally and informally with our portfolio companies to confirm we continue to be managed in a manner consistent with our responsible management philosophy, including our Code of Business Conduct and Ethics, our Corporate Social Responsibility Statement, and our commitment to the UNGC

Statement of Continued Support

Every year, we strive to strengthen our responsible management commitments, programs, and disclosures in alignment with international standards. As such, we prepare our annual Communication on Progress to demonstrate the progress we have made over the past year, providing information on the commitments, initiatives, and performance of our company with the aim of contributing to social and economic progress and the betterment of our communities. This year we proudly renew our commitment of support in alignment with the UN principles on the international labour practices..

Our annual Communication on Progress references our websites and other relevant corporate disclosure, providing a means of publicly documenting and disclosing our approach and practical examples of how responsible management is implemented within our business and throughout the Absa Bank Moçambique.

Signed,

Pedro Carvalho
Chief Executive Officer

Within Absa Moçambique, it has been adopted transparent and exhaustive policies that aim to ensure that human rights are adhered throughout our organization in order to ensure business continuity as well as to remain resilient and responsible for the risks to which its employees are exposed. These policies are:
•Conditions of service Policy – Which manages working conditions in accordance with labor law and the relevant laws, regulations or collective bargaining provisions under which they are developed.
•Employee Benefits Policy - Specifies that all employee benefits are aligned to the principle of appropriate inclusivity for employees and delivered in accordance with the provisions of the relevant legislative, regulatory or collective bargaining provisions under which they are developed and offered.
•Employee Relations Policy - The management of employment relations aims to create a conducive environment for high performance and enable management and employees to engage effectively in a manner that promotes equity, fairness and human dignity.
•Also, in the area of human rights, ABM seeks to ensure that suppliers adhere to human rights principles through a clear Procurement Management Policy, which aims to ‘‘maximize commercial value from Suppliers without compromising on quality, service delivery and appropriate technical standard, manage Supplier relationships and related risks and support Absa in driving Supplier Development and transformation initiatives’’.
•ABM supports the international declaration of Human Rights, and with our strategy and vision we intend to work for them according to Moçambique legislation, which is also reflected in our bank’s policy documents

•Implement strategies and policies through the company and across the company’s value chain
•The policies are reviewed annually and posted on our intranet, where every employee can access them. In addition, there are monitoring and control mechanisms in place, both at group level and country level (including our local labor laws), that lead us to strictly follow the requirements of our policies.
•For the coming year, we intend to provide trainings with the aim of increasing awareness of human rights within the organization.
•No incidents of Human rights violation has been reported through our People and culture channels or directly to the Business Partners (HR).
•Clear policies are in place to support the employees in cases of emergences situations as a result of terrorism, natural disasters or pandemics. For the past two years the bank supported each employee whose were victim of terrorism and natural disaster (in the center and north of the country), on the other hand during the pandemic, new policies were introduced, such as vaccines that were acquired for all employees including their dependents and households, as well as conditions were created so that employees could work permanently from home (where applicable) and from the office (in small cases).
•Where there are changes within the organization extensive consultation exercises are run to ensure staff are involved in the process. Very recently we went through a rebranding, where the bank ensured that all colleagues felt part of the transformation to the new brand and ensured that internally everyone had the right to information and all necessary support material.
•We respect all religions and also celebrate with our employees every important date for each religion, following the guidelines of the ministry of labor when a holiday is granted on account of important religious dates. To further enhance our commitment to the ideologies of our employees, we have prayer rooms available at our head offices, open to everyone at any time of the day.

Assessment, policy and goals

Within Absa Moçambique, it has been adopted transparent and exhaustive policies that aim to ensure that human rights are adhered throughout our organization in order to ensure business continuity as well as to remain resilient and responsible for the risks to which its employees are exposed. These policies are:
•Conditions of service Policy – Which manages working conditions in accordance with labor law and the relevant laws, regulations or collective bargaining provisions under which they are developed.
•Employee Benefits Policy - Specifies that all employee benefits are aligned to the principle of appropriate inclusivity for employees and delivered in accordance with the provisions of the relevant legislative, regulatory or collective bargaining provisions under which they are developed and offered.
•Employee Relations Policy - The management of employment relations aims to create a conducive environment for high performance and enable management and employees to engage effectively in a manner that promotes equity, fairness and human dignity.
•Also, in the area of human rights, ABM seeks to ensure that suppliers adhere to human rights principles through a clear Procurement Management Policy, which aims to ‘‘maximize commercial value from Suppliers without compromising on quality, service delivery and appropriate technical standard, manage Supplier relationships and related risks and support Absa in driving Supplier Development and transformation initiatives’’.
•ABM supports the international declaration of Human Rights, and with our strategy and vision we intend to work for them according to Moçambique legislation, which is also reflected in our bank’s policy documents

Implementation
•Implement strategies and policies through the company and across the company’s value chain
•The policies are reviewed annually and posted on our intranet, where every employee can access them. In addition, there are monitoring and control mechanisms in place, both at group level and country level (including our local labor laws), that lead us to strictly follow the requirements of our policies.
•For the coming year, we intend to provide trainings with the aim of increasing awareness of human rights within the organization.
•No incidents of Human rights violation has been reported through our People and culture channels or directly to the Business Partners (HR).
•Clear policies are in place to support the employees in cases of emergences situations as a result of terrorism, natural disasters or pandemics. For the past two years the bank supported each employee whose were victim of terrorism and natural disaster (in the center and north of the country), on the other hand during the pandemic, new policies were introduced, such as vaccines that were acquired for all employees including their dependents and households, as well as conditions were created so that employees could work permanently from home (where applicable) and from the office (in small cases).
•Where there are changes within the organization extensive consultation exercises are run to ensure staff are involved in the process. Very recently we went through a rebranding, where the bank ensured that all colleagues felt part of the transformation to the new brand and ensured that internally everyone had the right to information and all necessary support material.
•We respect all religions and also celebrate with our employees every important date for each religion, following the guidelines of the ministry of labor when a holiday is granted on account of important religious dates. To further enhance our commitment to the ideologies of our employees, we have prayer rooms available at our head offices, open to everyone at any time of the day.

Measurement of outcomes
•Our ERMF (Enterprise Risk Management Framework) establishes a risk taxonomy with principal risks and sub risk types. People Risk is one of the sub risk types under Operational Risk is managed and tracked monthly basis to ensure timely monitoring trough a set of 11 key risk indicators with clear thresholds defined to easily warn in case of any concern regarding the employees; Two CPA’s are in place which are annually refreshed to assess controls effectiveness
•No alleged incidents of Human Rights abuses reported from 2021 to date ABM were not subject to Investigations, legal cases, rulings, fines and other relevant events related to Human Right.
•No incident was raised by the Internal and External Audit during this period on regards to human rights within the Bank.
•For the upcoming months we intend to provide to senior management, the visibility of the work that will be done in order to have their review and assessment to the results and to have their inputs for the future.
•Premises Risk and People Risk are tracked on regular basis
•Annual employee satisfactions surveys are implemented in country “Your Voice Matters Survey”.

•Employee Relations Policy - This policy outlines Absa Bank Moçambique SA (ABM) approach to employment relations, specifying the required provisions / controls. The management of employment relations aims to create a conducive environment for high performance and enable management and employees to engage effectively in a manner that promotes equity, fairness, and human dignity.

•At ABM we respect the right of all workers to form and join a trade union of their choice without fear of intimidation or reprisal, in accordance with national law. Our recognized trade union is SNEB and our relationship is governed by a Recognition agreement and our employees have a right to join and participate in the activities of SNEB.
•The union also has a seat in the negotiation table regarding staff matter’s i.e. remuneration increment. As a bank we continuously are in consultation with SNEB regarding employee matters.
•We also allow worker representatives/union to carry out their activities without interference
•We also have apply Employee Value Proposition with the following:
- Because the family is one of the pillars in all our lives, and the arrival of a new member is a time for celebration, our maternity leave period from is extended to 90 days against 60 days (provided for by, and paternity leave with 5 calendar days against 1 day (provided for by law)
- We have also invested in the balance between professional and personal life, and therefore we grant a day off, on the Employee's Birthday, so that they can spend it with those they love most (being necessary to submit their absence Workday).
- We have maintained, in our benefits package, the Employee Support Programme (PAT), with a view to providing psychological support through therapeutic assistance and help with psychological, social and well-being-related issues, as well as talks on topics of interest, and Medical and Medication Assistance, both for the Employee and his dependents, in accordance with the Medical Assistance procedure.
- We have signed agreements with gyms so that they can have access to preferential conditions.
- We have been creating conditions so that our people can work in a remote or hybrid way, ensuring greater management of their time and family balance.
- We value our talents and know that personal and professional growth is made through constant learning and therefore we support attendance of technical and specialized courses and, through the Absa learning platform, we provide courses, certifications and countless free training contents, giving the necessary tools so that the Employee can develop and learn about topics that interest him/her, with all the convenience and comfort, being able to access them anytime, anywhere.
- Just like our Customers, we want to help our Employees to make their dreams come true and make their daily lives easier. To this end, we have incorporated into our value proposition the concession of loans at subsidized rates and exemption from fees and commissions on bank transactions in their salary accounts.
- All Employees have life insurance provided by the Bank, based on the rules of the pension fund; in addition, we have created a supplementary retirement fund into which we make a monthly contribution, equivalent to 7% of salary, to ensure that they continue to have a comfortable life when they retire.
- We are a Bank of People for People and we value the co-creation, the collaboration, the contribution and the opinion of each one and therefore, in order to create and adjust the lines of action so that we can guarantee more and better working conditions and benefits, we launch, on an annual basis, the Employee Experience Survey, where our People can anonymously voice their concerns and evaluate the Bank and on a quarterly basis we promote meetings in Townhall format, where top management shares the strategy and operational model and discusses some critical points, thereby seeking to ensure that all Employees are aligned with the objectives and ambitions of the Organization

•Our ERMF (Enterprise Risk Management Framework) establishes a risk taxonomy with principal risks and sub risk types. People Risk is one of the sub risk types under Operational Risk is managed and tracked monthly basis to ensure timely monitoring trough a set of 11 key risk indicators with clear thresholds defined to easily warn in case of any concern regarding the employees; Two CPA’s are in place which are annually refreshed to assess controls effectiveness

•The Corporate Real Estate Solutions (CRES) Environmental Management Standard, hereafter referred to, specifies the provisions / controls as per the requirements indicated under Purpose. The aim is to reduce the risk relevant to environment, people and eliminate noncompliance with premises and Environmental Management under the ABM Sustainability agenda. Reporting of this data is defined and a requirement under legislation.

•Absa Bank Moçambique guides its actions by principles of sustainability and with the firm purpose of contributing positively to the entire ecosystem in which it operates. In order to manage its business fairly and responsibly, the Bank has been implementing a culture of continuous monitoring of its impact on the community where it operates, training and awareness of employees, partners and customers, remaining faithful to the principles and policies that guide its actions.
Eco-efficiency in the Bank's branches, buildings and operations – Rani/Central Services and Branches:
•Electricity consumption - In 2020, the decrease in electricity consumption continued and continues to be a premise.
•Water consumption - Although water consumption is not one of the resources where the financial sector has the greatest direct impact, the Bank continues to reduce its consumption, due to the scarcity of this resource, through proactive management.
•Paper Consumption: As paper is one of the most used consumables in the financial sector activity, it is part of the Bank's action to reduce its use, thus remaining committed to the rationalization of paper-based communication, both internally and externally. We avoid printing documents in internal meetings and ensure digital signature, wherever possible; Reduce printer park; Standard double-sided and black and white printing; Ex Abolition of physical posters and introduction of Corporate TVs etc...
•Digital signatures in place
•Waste separation: The Bank carries out waste separation at its Head Office, there is a decrease in consumables (e.g. toner and paper) sent for recycling/destruction in recent years

•Our ERMF (Enterprise Risk Management Framework) establishes a risk taxonomy with principal risks and sub risk types. Environmental Risk is one of the sub risk types under Sustainability Risk which is under embedment phase for monthly monitoring. So far there are the following measurements:
•Gorongosa - reforestation of the mountain, working with coffee, etc.
•Associate member of ALER - Lusophone Renewable Energy Association
•Main bank of the Tetereane Solar Sroject
•Ecological footprint reduction
•Generalized practice of recycling plastic and paper;
•Workplaces with selective waste collection; Dematerialization and digitalization of processes;

Other implementation (1) VS Measurement Outcomes (2)

1. Other implementation
a. Replacement of incandescent bulbs by Led,
b. Installation of light motion sensors an time switches
c. Efficient vehicle fleet
d. Generators
e. Progressive replacement of R22 gas AC units with R410 gas units
f. Assessment of generators condition and consumption patterns
g. Treatment of organic , recyclable and sanitary waste in accordance with ISO 14001 at Rani Towers
h. Installation of water filters to reduce the use of plastic bottles
i. Partnership with suppliers for buyback and recycle
j. Installation of mechanical timed taps on cupboards and WC
k. Leak detection
l. Using of digital technology (Meetings, operational processes, signatures)
m. Behavior change and best practices printing (Double sided , handouts etc)
n. Introduction of viable energy sources like solar panels
o. Virtual meetings

Measurement Outcomes
a. 27% target reduction ( 2018-2030 )
b. 27% target reduction ( 2018-2030 )
c. 50% target reduction ( 2018-2030 )
d. 50% target reduction ( 2018-2030 )
e. 50% target reduction ( 2018-2030 )
f. 50% target reduction ( 2018-2030 )
g. 30% target reduction ( 2018-2030 )
h. 30% target reduction ( 2018-2030 )
i. 30% target reduction ( 2018-2030 )
j. 45% target reduction ( 2018-2030 )
k. 45% target reduction ( 2018-2030 )
l. 50% target reduction ( 2018-2030 )
m. 50% target reduction ( 2018-2030 )
n. 25% target reduction ( 2018-2030 )
o. 20% target reduction ( 2018-2030 )

•In our Business bribery and corruption behavior is a frequent threat, therefore, massive efforts are being done daily, in order to align with the Commitment to follow all relevant laws, including anti-corruption laws. Within ABM we have a dedicated function (Money Laundering Risk Office) and people which works verry close with our regulator, the Central Bank in order to ensure that we are compliant and updated on regards to money laundering and Anti-corruption. We have clear and exhaustive policies as follows:
•Anti-Bribery and Anti-Corruption Policy – whish sets out the overarching principles in relation to Bribery and Corruption risks, and more detailed minimum control requirements designed to achieve these objectives are incorporated into a set of Anti- Bribery and Anti-Corruption Standards i.e. Hiring Practices, Expenditure, Third Party and Strategic Transactions ABC Standards.
•Anti-Money Laundering Policy – specifies the control objectives to evaluate, respond to and monitor Money Laundering Risk within appetite. ABM is committed to acting with integrity in all our business dealings and conducting our global activities in accordance with applicable laws and regulations relating to Money Laundering, Terrorist Financing and Proliferation (together, for the purposes of the ABM Anti-Money Laundering Policy, “Money Laundering”)
•Sanctions Policy – specifies the required provisions / controls as per the requirements indicated under Purpose. ABM is committed to excellence in risk awareness and risk management and as such intends for its customers, as well as stakeholders such as governments, law enforcement, regulators, shareholders, and others, to have confidence in ABM’s integrity.
•Additionally, we have Whistleblowing Policy, by which individual are strongly encouraged to speak up about behaviors and practices that contradict ABM limited values. When individuals feel empowered to raise concerns about an activity which may put our employees, Customers or the Bank at risk, they reinforce our commitment to Integrity and Stewardship

•Absa Bank Moçambique has a zero-tolerance policy for corruption, bribery and extortion. At internal level we have maintained an excellent check and balance system over transactions. The records are maintained with proper proves that where does each metical go to and what is done with it.
•We make sure that our employees consider professionalism in each situation and adhere to the work ethic. We are operating under the philosophy of working hard and winning the reward and not using any kind of means to win contracts or doing anything that is against PROFESSIONALISM and WORK ETHICS.
•All employees of our bank receive training of the Policy on Anti-corruption. The training also implicitly includes our bank’s approach to the Absa way code of ethics. These Trainings are assigned to all ABM Colleagues through an internal platform, where this trainings take place.
•Apart from that, specialized training (advanced) are given to specific areas in accordance with their need for their daily activities.
•We vigorously seek to participate in limiting the massively spread bribery and to resist the corruption. Absa Bank Moçambique senior management team is committed not participate in any corruption, bribery or extortion and its also is committed to furthering the UN global Compact in the area of Anti-Corruption.

•Our ERMF (Enterprise Risk Management Framework) establishes a risk taxonomy with principal risks and sub risk types. Anti-Bribery and Corruption is one of the sub risk types under Financial Risk is managed and tracked monthly basis to ensure timely monitoring trough a set of 8 key risk indicators with clear thresholds defined to easily warn in case of any concern regarding the employees;
•ABM has not been involved in any legal cases, rulings or other events related to corruption and bribery.
•Internal and External Audit each audit Anti-Bribery and Anti-corruption function and this is used as one of the methods of identifying any spurious payments which could be related to bribery or corrupt behavior.
•No incidents of corruption reported over the year of 2021 and 2022.
•For the upcoming months we intend to provide to senior management, the visibility of the work that will be done in order to have their review and assessment to the results and to have their inputs for the future.