Radu Crivoi, Sustainability and Investor Relations Analyst at maib, in an interview with journalist Pavel Zingan.
Radu, hello. I was preparing for an interview recently when I found maib's sustainability page on the Investor Relations website. Specifically, I noticed that maib was included in the ESG- risks ranking by Sustainalytics, part of Morningstar, the largest research and rating agency in the USA. Apart from the bank's website, I couldn't find any other information, and I haven't heard of any other bank in the Republic of Moldova getting such a rating, so I'm curious to discuss this topic.
On November 15, 2023, maib became the first bank in the Republic of Moldova to receive an internationally recognised ESG risk score. We are pleased with our result - the overall rating was 25.5 points, meaning we fall into the low and medium risk category. Among regional banks, we are in the top 38%, and among global banks, we are in the top 45%. The performance is good, given that these are maib's first steps in ESG.
Will it become mandatory for the banks in the Republic of Moldova to obtain such a qualification?
Let's hindsight. Last year, with the launch of the annual report, maib also published its first sustainability report. It is common knowledge that maib intends to list its shares on the Bucharest Stock Exchange. After the listing, investors will compare maib not with Moldovan but international banks. All banks and large companies in EU countries, such as Romania, prepare sustainability reports. This is mandatory not only from a regulatory point of view but also from a practical point of view, as many investors now require it. This practice is optional in the Republic of Moldova and needs better development. However, a few companies, such as Premier Energy and Kaufland, have recently published such reports, but no bank has done so. Notably, some Moldovan daughter companies of foreign companies produce reports at the group level. Maib is the first bank in Moldova to publish such a report. As the Republic of Moldova legislation is aligned with European standards, all banks must publish such reports soon.
I have an idea of what a bank's annual report is, but what should a bank's sustainability report include?
There are generally accepted European and global standards for such reports, and we have followed these standards from the start. The report includes information on maib's impact on the environment (carbon footprint of our operations, resource use, environmentally responsible practices, financing the green economy), impact on the community (fair and accountable consumption practices, social responsibility, fairness in the way we deal with employees) and governance standards (business ethics, governance mechanisms and ensuring accountability and transparency).
You decided not to stop at the report but to be included in the international ESG risk rating. I checked out the company that did that evaluation. Morningstar Sustainalytics is a leading ESG research, ratings and data company. It works with the world's leading investment firms, pension funds and large companies to help them integrate sustainability into their policies, practices and investments. What was the rationale behind the initiative to create this ranking?
The ESG risk rating is not just a tool for the present but a crucial asset for our future. As maib's plans to IPO progress, this rating becomes a significant indicator for international investors who prioritize transparency. It bolsters our sustainability endeavours, paving the way for global recognition.
This rating will also be an important starting point and internal reference point for us. We have received a detailed analysis of why we received this particular score, which means we can work on improving it in the future.
Will the results of the evaluation be taken into account when elaborating the maib development strategy?
We are already preparing the sustainability report for 2023, and the audit results will be included in it. In addition, our current sustainable development strategy includes around 60 initiatives that will be implemented across the bank in almost all areas, from banking products to corporate social policy.
This is a process that requires a lot of organisational and financial effort on the part of the bank and, at the same time, is not mandatory.
Do you want to know why maib has taken this step now?
Yes.
Accession to the EU is the main vector for Moldova's development. The subject of sustainable development in the European Union has become extremely important. All large companies will report on sustainability, and their work will be assessed regarding ESG risks. This practice will soon be implemented in Moldova. The tax mechanism will also be changed, and the climate impact of companies' activities will be considered. Changes are also coming to the legislation governing banking. The European Central Bank and the National Bank of Moldova must assess climate risks. The Republic of Moldova has already received a roadmap, and shortly, banks will have to consider the effects of climate risks in their risk management. Thus, maib is investing in its future. As a leader in the banking sector in the country, we need to be an example in this direction, including for our customers, because we will be able to share with them our experience of practical actions towards this.
Regarding the financing of the green economy, at what stage is maib?
We are now working on the climate risk management function and developing an internal fund to finance and support green initiatives. This fund, which we have allocated 10 million MDL, will play a crucial role in our sustainability strategy. Our green credit portfolio at the end of 2023 was 580 million MDL. Most of this is solar panels, wind energy and a large loan for the Chisinau trolleybus park. The bank is consciously anticipating regulatory requirements in sustainable development so that we will be fully prepared to comply with the new regulations when the legislation is aligned with European standards.
How long have you been working at maib?
I have been part of the maib team for a year. Before joining maib, I studied at University College London and interned at PwC. Shortly after graduating, I heard about a vacancy for an Investor Relations Analyst at maib, which caught my eye. I also liked the idea of returning home after 5 years of living abroad. During the job interview, I learned about the sustainability element being an essential part of my job at maib. Still, I accepted the challenge, and I don't regret it!
