Corporate and Social Responsibility
Leumi - Benefiting Society and the Economy
The Leumi Group has a wide-ranging influence on Israel's financial development, resilience, and market stability. As an organization operating within the community, we recognize our responsibility to work towards bolstering Israeli society, the economy, and households as well as reinforcing the factors driving Israel's various industries.
This impact manifests itself on two principal levels:
The direct impact of the Leumi Group on the economy and society in Israel, stemming from the Bank's status as a leading domestic financial entity which provides the full range of banking and capital market services to millions of customers in the various segments. The direct effect also stems from Leumi's being a major player in the shekel-dollar trade as well as in Israeli government bonds.
The Group's support for national prosperity - financing infrastructure projects and a variety of sectors (high tech, industry, trade, chemistry, food and more) which forms the basis of its indirect impact on Israeli society and economics. Similarly, the Leumi Group promotes small businesses, provides socially and environmentally valuable services, engages in local and global procurement, contributes to the community, employs Israeli workers and invests in their development, and pays taxes to the State treasury.
Leumi – Benefiting the Community
Leumi is proud to be part of the social-ethical backbone of the State of Israel and sees a sense of mission in investing in the community through 5 key areas:
Long-term strategic partnerships; donations; employee volunteering; social procurement; mobilization for the promotion of social issues.
A core part of the Leumi Group's sense of responsibility towards the community in which the Group operates is reflected in the social involvement of the employees and their volunteering in the community.
Leumi – Benefiting the Environment
As a leading bank in Israel, we have a responsibility towards our operating environment, and a commitment to deal in the best way with climate change and the risks involved.
Our concern for the environment and our quality of life and that of future generations is a significant component of the values and goals we have set for ourselves to be a significant element in leading the necessary changes in Israel.
As part of Leumi's activity to strengthen the contribution to environmental, social and governance aspects, a strategy was formulated to manage the environmental aspects, and to deepen and expand the integration of ESG aspects in the Bank's business activities. Among other things, through increasing funding and investments in projects that promote a green environment and the development of green financial products.
Leumi Way: Vision, Core Values, and Ethics
The evolving business, economic and social environment have led the Leumi Group to review and restate its vision and its core values, in a manner that will reflect the change the Group has gone through in recent years. In a cross organizational process - with the participation of managers and employees - the Group’s vision was rephrased into one sentence: Conducting proactive and innovative banking for our customers
Additional ESG Information for the year 2022
SCOPE3 – PCAF Financed Emissions
As part of Leumi’s commitment to mitigating its climatic impact, for the first time the Bank is conducting a calculation of the credit portfolio’s carbon footprint. These emissions are part of the Bank’s Scope 3 emissions.
The calculation is made based on the Partnership for Carbon Accounting Financials methodology (hereinafter: “PCAF”), the leading framework for measuring credit portfolio emissions as well as emissions of investments made by financial institutions.
According to the PCAF methodology, there are different levels for calculation in accordance with the quality of the data available for the calculation. This first calculation of Bank Leumi was conducted according to level 3-a that relates to a financial data based emission calculation.
Due to the lack of local data, specifically sector-specific conversion coefficients, the Bank has developed a calculation methodology in accordance with the PCAF rules, with the support of an international consulting firm. Initially, the calculation was made in respect of the Bank’s customers with credit balances in excess of NIS 100 million, in selected sectors, which constitute some 4% of the Bank’s credit portfolio as of December 31, 2022.
According to the above calculation methodology, the total amount of financed emissions for 2022 for the selected customers, is 3,525,311.12 ton CO2e
At the Ethics Forum meeting, it was decided to add a reference to the topic of ethical code for employee performance valuation for 2023:
- Level of service and closing action circuit with customers (internal/external) - always available, attentive, committed and caring for its customers; Going out of its means to give them a quick, comfortable, high -quality, fair and tailored response, with an emphasis on complete and immediate closure of the action circle.
- Business appetite and Business Leading - Fighting for every transaction, initiator and leading right business development, while seeing the customer's best interests, needs and abilities and accessing all the information he needs to make decisions. For headquarters - initiates and leads with determination to promote business development; Always see the bank's customers interest and needs and constraints of business units; Makes every effort to allow and help the business units provide quality, fast and convenient service to the bank's customers.
- Managing and empowering motivate, developing, and empowering his employees for excellence and achieving goals; Leading his employees to value and ethical conduct; communicate to his employees the messages effectively, creating identification and connection to the work and national. A manager who does not manages employees - is a personal example, contributes to the empowerment of the employees around him and works to promote the teamwork.
- Value and Ethical behavior, acts within the guidelines and rules and in accordance with Leumi's ethical code, takes responsibility, strives for excellence and is a personal example of its environment; In a matter -of -fact and respectful way, in the states of conflict.
Workforce Breakdown: Gender
- Share of women in management positions in revenue-generating functions (e.g. sales) as % of all such managers (i.e. excluding support functions such as HR, IT, Legal, etc.) – 51%.
- Share of women in STEM*-related positions (as % of total STEM positions) – 41%
STEM: Science, technology, engineering and mathematics. STEM workers use their knowledge of science, technology, engineering or mathematics in their daily responsibilities. To be classified as a STEM employee, the employee should have a STEM-related qualification and make use of these skills in their operational position. Positions include, but are not limited to, the following: Computer programmer, web developer, statistician, logistician, engineer, physicist, scientist.
Average amount spent per FTE on training and development – 8,273 ₪
Employee Development Programs
- Winning together: Training program for all Bank braches’ employees, with the aim of integrating the “Winning Together” service model. Key points of focus: Becoming thoroughly familiar with the “Winning Together” service model; learning the new routines, placing an emphasis on customer- focused services, with an emphasis on development of businesses, mentoring of business developers by bankers and customer relations managers.
- Training program for all Bank branches’ employees, with the aim of integrating the “Winning Together” service model. Key points of focus: Becoming thoroughly familiar with the “Winning Together” service model; learning the new routines, placing an emphasis on customer- focused services, with an emphasis on development of businesses, mentoring of business developers by bankers and customer relations managers. The training impact on the organization: Training program for all Bank braches’ employees, with the aim of integrating the “Winning Together” service model. Key points of focus: Becoming thoroughly familiar with the “Winning Together” service model; learning the new routines, placing an emphasis on customer- focused services, with an emphasis on development of businesses, mentoring of business developers by bankers and customer relations managers.
- %18.5 of FTEs participating in the program
- High satisfaction levels in the training: 4.5 (in a 1-5 scale).
- maternity leave: according to the Israeli law, three and a half months (14 weeks). In addition, according to the spouse's Israeli law, it is entitled to leave 6 weeks from the end of birth to the end of the three and a half months, which means partially or fully (up to 8 weeks).
Certified external Audit Reports of attendance/subtractions of Employees
- An audit on attendance reports is conducted as part of the multi-year work plan of the Internal Audit Division.
- Below are details of audit results in which aspects of attendance reports were checked in recent years, for example:
- Labor laws and attendance - Audit Report No. 91/19 was disseminated in December 2019.
- The Work and Rest Hours Law and the Women's Labor Law - Record No. 77/001/2021 was disseminated in March 2021.
- Sick leave attendance reports - Record No. 77/012/2021 was disseminated in November 2021.
- Standby supplement - Record No. 77/016/2022 was disseminated in October 2022.
- A comprehensive audit on this issue is scheduled to be conducted during 2024.