ESG and Sustainable Development

Davr Bank considers the principles of environmental, social responsibility, and corporate governance (ESG) an integral part of its development strategy. Our goal is to build a sustainable business that delivers financial results, supports the development of the Uzbek economy, and minimizes negative impacts on the environment and society.

In its activities, the Bank is guided by the requirements of the legislation of the Republic of Uzbekistan and best international practices, including the standards of international financial institutions with which the Bank has collaborated for many years, such as the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and the Asian Development Bank (ADB).

The Bank strives to limit financing of projects that could have a significant negative impact on the environment and to support projects that promote sustainable development, including:

• implementation of resource-saving and energy-efficient technologies;
• use of renewable energy sources;
• modernization of production facilities to reduce emissions and waste;
• development of "green" and climate-resilient projects.

For all financed projects, the Bank:

• assesses compliance with the requirements of the legislation of the Republic of Uzbekistan on environmental protection, state environmental assessment, licensing, and permitting procedures;
• verifies the availability of necessary permits, approvals, and approvals;
• applies the Bank's Exclusion List, excluding the financing of prohibited activities.

PJSCB Davr Bank pays attention to social aspects both internally and in its relationships with clients and partners. In its activities, the Bank:

• requires compliance with labor laws, occupational health and safety standards, and employee health and safety;
• does not permit the use of child labor or forced labor in financed projects, paying particular attention to the agricultural and textile sectors;
• supports the development of small and medium-sized businesses that create jobs and improve the well-being of local communities;
• strives to create an inclusive and non-discriminatory work environment that ensures equal opportunities for employees.

Effective corporate governance is the foundation of the trust of clients, partners, and investors. The Bank:

• complies with the requirements of the legislation of the Republic of Uzbekistan and regulatory documents;
• develops a system of compliance control, internal audit, and risk management, including the integration of environmental and social risks into the overall risk management system;
• adheres to the principles of transparency, accountability, and business ethics;
• maintains a high level of engagement with shareholders, international financial institutions, and other stakeholders.

As a partner of the EBRD, IFC, and ADB, the Bank builds its environmental and social management system (ESMS) in accordance with the requirements and principles of these organizations, including:

• environmental and social sustainability principles and requirements;
• responsible finance practices;
• integration of climate and social risks into the credit analysis process.

The requirements of the Environmental and Social Management Policy (ESMS) are being gradually implemented into the Bank's procedures, including:

• mandatory E&S screening of projects and verification against the Exclusion List;
• verification of compliance with national environmental, health, and safety standards;
• inclusion of key ESG covenants in contractual documentation;
• integration of ESG issues into credit analysis, scoring, and internal policies.

As part of the development of the ESG/ESMS system, the Bank has adopted and implemented the following key documents:

• Environmental and Social Management Policy (ESMS) of Davr Bank;
• List of activities excluded from financing;
• Internal procedures for assessing environmental and social risks in the lending process.

The Bank is open to dialogue with all stakeholders on sustainable development, green finance, climate and social risks, gender equality, and other ESG topics.

For questions related to environmental, social, and corporate governance aspects, please contact us by: [email protected]