International Standards’ Application

## ANNUAL REPORT FOR 2012

ENG РУС FR CSR MR

- CSR and Business
- Contributing to Economic Growth
- Social Dimension
- Investing in Human Capital
- How We Manage Business
- About the CSR Report

#### Materials:

- Annual Report
- Social Report
- Financial Report PDF
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# International Standards’ Application

The Report is prepared in accordance with the Global Reporting Initiative Sustainability Reporting Guidelines (hereinafter — GRI Sustainability Reporting Guidelines) and sectoral supplement for financial service sector. The Report corresponds to the application level B of GRI Sustainability Reporting Guidelines. Besides, at the Report preparation the approaches were used determined by ISO 26000 and AA 1000 standards.

#### GRI Content Index

| GRI disclosure/indicator (as defined by GRI Guidelines) | Report Section
| 1.1. Statement from the most senior decision-maker of the reporting organization about the relevance of sustainability to the organization and its strategy | Opening Statement by Herman Gref, Sberbank CEO & Chairman of Management Board

1.2. Description of key impacts, risks, and opportunities

Opening Statement by Herman Gref, Sberbank CEO & Chairman of Management Board

Interview with Denis Bugrov, Sberbank Senior Vice President, Board member

About the Report
Management Report

Financial Statements

See also Sberbank’s Corporate Social Responsibility Policy

See also The Development Strategy of Sberbank of Russia up to 2014

| 2.1. Name of the organization | About the Report

2.2. Primary brands, products, and/or services

Small Business Support

Development of remote channels

Service of pensioners

Housing loans

Management Report

Financial Statements

The bank’s Primary Brands page

| 2.3. Operational structure of the organization, including main divisions, operational companies, subsidiaries and joint ventures | Management Report
| 2.4. Location of organization’s headquarters | Management Report
| 2.5. Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report | About the Report Financial Statements
| 2.6. Nature of ownership and legal form | Management Report
| 2.7. Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) | Small Business Support Ensuring availability of financial services Housing loans Service of pensioners Financial Statements
| 2.8. Scale of the reporting organization | The bank’s Mission and CSR How does the bank address stakeholder interests? Ensuring availability of financial services Investing in Human Capital Management Report
| 2.9. Significant changes during the reporting period regarding size, structure, or ownership | New model of network management Shareholder and investor relations Management Report Financial Statements
| 2.10. Awards received in the reporting period | Bank Awards
| 3.1. Reporting period (e.g., fiscal/calendar year) for information provided | About the Report
| 3.2. Date of most recent previous report (if any) | About the Report
| 3.3. Reporting cycle | About the Report
| 3.4. Contact point for questions regarding the report or its contents | About the Report
| 3.5. Process for defining report content | About the Report
| 3.6. Boundary of the report | About the Report
| 3.7. Limitations on the scope or boundary of the report | About the Report
| 3.8. Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. | About the Report
| 3.9. Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. | About the Report
| 3.10. Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement | About the Report No re-statements
| 3.11. Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report | About the Report No significant changes from previous reporting periods
| 3.12. Table identifying the location of the Standard Disclosures in the report | Table identifying the location of the Standard Disclosures in the report
| 3.13. Policy and current practice with regard to seeking external assurance for the report | General Information about the Report The Report corresponds to GRI Application Level B and was not subjected to external assurance procedures. However, nearly 2,500 people participated in the web-based public discussion of the Report. See section How does the bank address stakeholder interests?
| 4.1 Governance structure of the organization | Management Report
| 4.2 Indication of whether the Chair of the highest governance body is also an executive officer | Management Report Distinction of functions of the Head of the Supervisory Board and the Chairman of Management Board is established by the bank’s Charter.
| 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members | Shareholder and investor relations Management Report
| 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body | How does the bank address stakeholder interests? Shareholder and investor relations

4.5. Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’sperformance (including social and environmental performance).

Sberbank Supervisory Board established the limits for fixed official salaries of Board members and imposed restrictions on bonus payments during the year depending on the bank’s net profits, implementation of projects and achievement of key performance indicators.

Some KPIs reflect, among other things, various social and environmental aspects of the bank’sactivities.

See also sections The main issues discussed in 2012 (based on the analysis of media coverage),Motivation and Compensation of Employees, and Remuneration of Board members in the Management Report

| 4.6. Processes in place for the highest governance body to ensure conflicts of interest are avoided | Provisions of the bank’s Charter Compliance
| 4.7. Process for determining qualifications and expertise of members of the highest governance body for developing the organization’s economic, environmental, and social strategies | The highest competence and qualifications of Board members, including economic, environmental and social issues, are confirmed by academic degrees and relevant professional experience.
| 4.8. Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation | The bank’s Mission and CSR
| 4.9. Procedures of the highest governance body for overseeing the organization’sidentification and management of economic, environmental, and social performance. | Shareholder and investor relations The main issues discussed in 2012 (based on the analysis of media coverage) Management Report
| 4.10. Processes for evaluating the highest governance body’s own performance | Management Report Shareholder and investor relations
| 4.11. Explanation of whether and how the precautionary approach or principle is addressed by the organization | The bank does not directly use the precautionary principle in relation to its activities
| 4.12. Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses |
| 4.13. Memberships in associations and/or national/international advocacy organizations |
| 4.14. List of stakeholder groups engaged by the organization | How does the bank address stakeholder interests? About the Report See also Sberbank’s Corporate Social Responsibility Policy
| 4.15. Basis for identification and selection of stakeholders with whom to engage | See also Sberbank’s Corporate Social Responsibility Policy
| 4.16. Approaches to stakeholder engagement | How does the bank address stakeholder interests? Improving quality and reducing queues Employee satisfaction in 2012 Shareholder and investor relations
| 4.17. Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting | How does the bank address stakeholder interests? Improving quality and reducing queues Employee satisfaction in 2012 Shareholder and investor relations
| Economic Performance Indicators |
| Management approach | Management Report
1. | EC1 (core) Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments | Financial Statements, Sberbank Group’s 5-Year Key Performance Indicators over in Accordance with IFRS (partially) Management Report
2. | EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change | Performing the functions of a carbon unit operator regarding expert evaluation of projects applied for approval under Article 6 of the Kyoto Protocol
3. | EC3 (core) Coverage of the organization’sdefined benefit plan obligations | Corporate pension program Financial Statements The Group applies IAS 19 Employee Benefits for pension liabilities accounting. The corporate pension plan is implemented in cooperation with Sberbank Non-state Pension Fund. Actuarial Report 2011
4. | EC4 Significant financial assistance received from government | Financial Statements
| EC5 (add) Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation |

5.

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation

To reduce corruption risks and increase transparency, the bank is committed to organize acentralized electronic procurement system. Since main business is geographically distributed, decentralized procurement (other things being equal) is made from local suppliers.

See also Development of Procurement System

6. | EC7 (core) Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation | Business of the company is geographically distributed, therefore common service staff is normally employed from local communities. This principle does not always apply to senior management due to the bank’s system of creating succession pool and continuous management rotation.
7. | EC8 (core) Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. | Sponsorship and Charity Charity expenses are disclosed in the RAS Profit and Loss Statement available on the bank’s web-site

8.

EC9 (add) Understanding and describing significant indirect economic impacts, including the extent of impacts

Opening Statement by Herman Gref, Sberbank President and Chairman of Management Board

Interview with Denis Bugrov, Sberbank Senior Vice President, Board member

Small Business Support

Financial literacy

Mortgage lending

Developing electronic auction infrastructure

| Environmental Performance Indicators |
9. | Management approach | Managing Environmental Impact
| EN1 Materials used by weight or volume |
| EN2 Percentage of materials used that are recycled input materials |
10. | EN3 Direct energy consumption by primary energy source | Improving Energy Efficiency
11. | EN4 Indirect energy consumption by primary source | Improving Energy Efficiency
| EN5 Energy saved due to conservation and efficiency improvements |
| EN6 Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as aresult of these initiatives |
12. | EN7 (add) Initiatives to reduce indirect energy consumption and reductions achieved | Improving Energy Efficiency Electronic document circulation system introduction (in part)
13. | EN8 (core) Total water withdrawal by source | Water is withdrawn exclusively from municipal water supply systems. In 2012 total drinking water consumed reached 5,039,236.46 m3
14. | EN9 Water sources significantly affected by withdrawal of water | Water withdrawal does not have any significant impact on water sources since water use is not included in production cycle.
15. | EN10 Percentage and total volume of water recycled and reused | Since water is consumed for household needs only, no recycling technologies are used.
16. | EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas | N/A
17. | EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas | N/A
| EN13 Habitats protected or restored |
| EN14 Strategies, current actions, and future plans for managing impacts on biodiversity |
| EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk |
18. | EN16 Total direct and indirect greenhouse gas emissions by weight | Managing Environmental Impact Direct greenhouse gas emissions reached 46,354.7 tonnes of CO2-equivalent. Indirect greenhouse gas emissions from electric energy consumption reached 628,214.0 tonnes of CO2-equivalent, heat energy consumption brought 249,111.5 tonnes of CO2-equivalent.
19. | EN17 Other relevant indirect greenhouse gas emissions by weight | Other greenhouse gas emissions are negligible.
| EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved |
| EN19 Emissions of ozone-depleting substances by weight |
| EN20 (core) NOx, SOx, and other significant air emissions by type and weight |
20. | EN21 Total water discharge by quality and destination | Water use is not a part of the production cycle, water discharge is equal to consumption
21. | EN22 (core) Total weight of waste by type and disposal method | Managing Environmental Impact
22. | EN23 Total number and volume of significant spills | N/A
23. | EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III and percentage of transported waste shipped internationally | N/A
24. | EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff | N/A
25. | EN26 (core) Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation | Managing Environmental Impact Used paper is collected for further recycling
26. | EN27 Percentage of products sold and their packaging materials that are reclaimed by category | N/A
| EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations |
27. | EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce | Managing Environmental Impact Greenhouse gas emissions from transport fuel in 2011 reached 91,805.7 tonnes of CO2-equivalent.
| EN30 (add) Total environmental protection expenditures and investments by type |
| Human Rights Performance Indicators |
| Management approach | Investing in Human Capital
| HR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening |
| HR2 Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening, and actions taken |
| HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained |
28. | HR4 Total number of incidents of discrimination and corrective actions taken | No incidents of discrimination registered in 2012
29. | HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights | The bank provides every opportunity to exercise freedom of association, signs collective bargaining agreement, and cooperates with the trade union. The bank is not involved in any business that may require any restriction of the freedom of association or collective bargaining.
30. | HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor | The bank is not involved in any operations that may have significant risk of child labor.
31. | HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor | The bank is not involved in any operations that may have significant risk of forced or compulsory labor. Exercising employee labor rights is controlled by the trade union.
| HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations |
32. | HR9 Total number of incidents of violations involving rights of indigenous people and actions taken | No incidents of violations involving rights of indigenous people detected in 2012.
| Labor Practices & Decent Work Performance Indicators
| Management approach | Investing in Human Capital
33. | LA1 (core) Total workforce by employment type, employment contract, and region | Personnel Training Supplements: Actual bank staffing number Average staffing number Bank staff by type of employment
34. | LA2 (core) Total number of employees and employee turnover by age group, gender, and region | Supplements: Actual bank staffing number Average staffing number Employee turnover
35. | LA3 Benefits provided to full-time employees that are not provided to temporary or part time employees, by significant locations of operation | Corporate benefits All bank employees are staff members.
36. | LA4 (core) Percentage of employees covered by collective bargaining agreements | Collective bargaining agreements cover all employees of the bank.
37. | LA5 (core) Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements | Current collective bargaining agreement does not provide for any notice to employees of significant operational changes. Employees are notified of significant changes in bank’s operations in accordance with the Russian Labor Code.
38. | LA6 (add) Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs | Current collective bargaining agreement provides for employer’s obligation to control occupational health and safety in close cooperation with the trade union. The bank and its branches have established joint health safety commissions from employer and trade union representatives which operate on a parity basis.
39. | LA7 (core) Rates of injury | Supplements. Injury rate
40. | LA8 (core) Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases | Available on Sberbank’s intranet portal
41. | LA9 (core) Health and safety topics covered in formal agreements with trade unions | The collective bargaining agreement effective in 2010–2013 includes the section OccupationalHealth and Safety
| LA10 (core) Average hours of training per employee |
42. | LA11 (add) Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings | Mass Teaching Corporate University
43. | LA 12 Percentage of employees receiving regular performance and career development reviews | Performance Management System The bank operates the 5+system that covers all employee categories.
44. | LA13 Composition of governance bodies and breakdown of employees according to gender, age group, minority group membership, and other indicators of diversity | Supplements. Governing bodies
45. | LA14 Ratio of basic salary and remuneration of women to men by employee category | The bank does not keep records of remuneration by gender.
| Product Responsibility Performance Indicators |
46. | Management approach | Improving quality and reducing queues
| PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures |
47. | PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services, by type of outcomes | No incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services registered in 2012.
| PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements |
| PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes |
48. | PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction | Small Business Support Improving quality and reducing queues
49. | PR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship | Improving quality and reducing queues
| PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes |
50. | PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data | Safety of banking products and transactions To provide for customer privacy, OJSC Sberbank of Russia has adopted the Personal DataProcessing and Protection Policy available at http://www.sbrf.ru/moscow/ru/about/today/data/
| PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services |
| Society Performance Indicators |
| Management approach | Improving quality and reducing queues How we engage stakeholders Sponsorship and Charity See also Sberbank’s Corporate Social Responsibility Policy
51. | SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting | New model of network management
| SO2 Percentage and total number of business units analyzed for risks related to corruption | Development of procurement system
52. | SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures | Compliance
53. | SO4 Actions taken in response to incidents of corruption | Compliance
54. | SO5 (core) Public policy positions and participation in public policy development and lobbying | Contributing to creating legal environment
55. | SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country | The bank doesn’t support any political parties
| SO7 (add) Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes |
| SO7 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations |
| Financial Services Sector Supplement to GRI Sustainability Reporting Guidelines
| Management approach | Management Report
| FS1 Policies with specific environmental and social components applied to business lines |
| FS2 Procedures for assessing and screening environmental and social risks in business lines |
| FS3 Processes for monitoring clients’ implementation of and compliance with environmental and social requirements included in agreements or transactions |
| FS4 Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines |
56. | FS5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities | How does the bank address stakeholder interests?
57. | FS6 Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sectors | Financial Statements
58. | FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose | Developing Product Range Main socially oriented products in housing financing and 2012 results
| FS8 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose |
| FS9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures |
| FS10 Percentage and number of companies held in the institution’s portfolio with which the reporting organization has interacted on environmental or social issues |
| FS11 Percentage of assets subject to positive and negative environmental or social screening |
| FS12 Voting policy(ies) applied to environmental or social issues for shares over which the reporting organization holds the right to vote shares or advises on voting |
59. | FS13 Access points in low-populated or economically disadvantaged areas by type | New model of network management
60. | FS14 Initiatives to improve access to financial services for disadvantaged people | Development of remote channels Specialized Formats
| FS15 Policies for the fair design and sale of financial products and services |
61. | FS16 Initiatives to enhance financial literacy by type of beneficiary | Developing Product Range Financial literacy Service of pensioners Support of education and educational establishments

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