Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information Micro, small and medium enterprises In many cases of non-compliance, our proper and timely (MSME) management of the environmental and social risks of We continue to provide financing to MSMEs, a backbone our MSME clients has helped them to address issues of the Georgian economy that helps to ensure the that would otherwise have resulted in financial and sustainable development of Georgia. In addition to our legal sanctions from the state enforcement agency. own microfinance and SME loan programmes, we also participate in various projects that support entrepreneurs. Sponsorship and charity Since 2015, the Bank has partnered with the non-profit As part of our sponsorship and charitable activities, the Agriculture Projects Management Agency (APMA), which Group continues to focus on promoting and enhancing supports MSMEs in the agriculture sector. Together, access to education, conserving nature, supporting people we have co-financed agriculture loans at fixed annual with disabilities and special needs, developing social interest rates that are partially subsidised by APMA. As of enterprises and facilitating innovative projects that focus 31 December 2018, the total amount of gross loans that on social goods. The Group’s Sponsorship and Charity the Bank issued toMSMEs amounted to GEL 2.2 billion, Policy encourages partnerships with various foundations of which c.GEL 177 million was issued through the and Non-Governmental Organisations (NGOs) to deliver Preferential Agriculture Lending Program. sustainable results and bring positive change. Sponsorship and charity funds are channelled through the Bank’s Tree In 2018, the Bank continued to reinforce the financing of of Life Foundation that, in its turn, distributes funding micro business owners and considers this segment as one by means of grant competitions in order to ensure of the main areas of its portfolio growth. transparent and fair methods of financing. The Group also implements its own social projects. The Bank has dedicated staff and established processes for its Micro-Express loans that target micro businesses In 2018, Tree of Life has allocated around GEL 1.7 million and offer them loans under GEL 40,000. Increasing the to support education, nature conservation, people with automation and digitalisation is one of the cornerstones disabilities and special needs, social platforms, and the of the Bank’s micro lending strategy to make their banking development of social entrepreneurship. Bank of Georgia experience fast, smooth and enjoyable. together with the Tree of Life Foundation established a charity platform www.donate.ge, which connects the Bank of Georgia is committed to further extending people in need with those who are willing to donate items, financing to MSMEs. Furthermore, the Bank is keen clothes, books, etc. The platform offers collection, sorting to develop financial products and lending practices and delivery of items. In 2017-2018, 41,815 items were to specifically service women-led MSMEs, which will collected with help from 428 donors and www.donate.ge ultimately increase their involvement in developing has already supported 1,360 beneficiaries. Georgia’s private sector. In addition to assisting the MSMEs financially, the Bank runs an MSME portal www.businesshub.ge. The portal provides financial and business-related advice to entrepreneurs in order to upgrade their financial literacy and management skills and ensure the sustainable development of their businesses. The portal provides entrepreneurs with information on trainings and equips Bank of Georgia recognises the impact it can have on the them with knowledge and skills in accounting, legal country’s social-economic development. Therefore, the documents, business development, sales and marketing. Bank launched a grant programme to support socially The Bank assists its clients in marketing products through driven enterprises in Georgia. In 2016-2018, Bank of videos we create about them and publish on our pages Georgia supported ten social enterprises with up to GEL in social media. #Icreate corners, located in Bank of 387 thousand and GEL 50 thousand per project. At the Georgia’s branches, are also a great opportunity for clients same time, the Bank provided pro-bono services by helping to exhibit and promote their products free of charge. the businesses in areas such as marketing, public relations, information technology, etc. The Bank partners with Environmental and social risk management processes various NGOs to maximise its role in the social cause. of MSME clients are embedded throughout the Bank’s activities. By ensuring that comprehensive environmental Promoting and enhancing access and social risk assessments and the necessary action to education plans are undertaken, we encourage our MSME clients to Bank of Georgia University has offered a top quality be in compliance with national environmental and social master’s degree programme since its foundation in 2014. legislation. During site visits, we provide our clients with The university welcomed its fifth intake of MBA students advice and guidance on good practice and standards in in 2018 and simultaneously launched a bachelor’s degree these areas. We update them on environmental, health programme in 2017. The cost of studies in 2017-2018 and safety, as well as labour issues and monitor their were again largely subsidised by the Bank with GEL 767 compliance with environmental and social legislation. Annual Report 2018Bank of Georgia Group PLC 77