Zagrebačka burza d.d.

Environmental & Social Information • Feb 7, 2017

Zagrebačka burza d.d.

2016.

Izvještaj o zaštiti okoliša i socijalnim pitanjima

Zagreb, veljača 2017.

Izvještaj o zaštiti okoliša i socijalnim pitanjima

U skladu s čl. 5.05. Subscription Agreementa između Europske banke za obnovu i razvoj i Zagrebačke burze, ovime:

1. potvrđujemo da se tijekom 2016. godine Društvo pridržavalo zahtjeva određenih za postupanje prema okolišu (eng. Designated Performance Requirements), opisanih u čl. 5.02. (prilog br. 1.),

2. potvrđujemo da su poslovanje i aktivnosti Društva tijekom 2016. godine bili u skladu sa socijalnim pravom (prilog br. 2.),

3. prilažemo informacije o upravljanju zaštitom zdravlja i sigurnosti na radnom mjestu te evidenciju o zaštiti na radu u poslovanju i aktivnostima Društva (prilog br. 3.),

4. potvrđujemo da tijekom 2016. godine nije bilo promjena socijalnog prava koje bi mogle bitno utjecati na poslovanje i aktivnosti Društva,

5. potvrđujemo da tijekom 2016. godine nije bilo informacija o zaštiti okoliša i socijalnim pitanjima koje Društvo dostavlja svojim dioničarima i javnosti.

ZAGREBAČKA BURZA d.d Zagreb

Predsjednica

Tomislay Gračan Član Uprave

Annual Environmental & Social Report for Stock Exchanges

Background on the Stock Exchange

Name of Stock Exchange: Zagreb Stock Exchange, Inc.

Address: Ivana Lučića 2a/22, Zagreb Country: Croatia
Company authorized representative (): Ivana Gažić
I certify that the data l contained in this report completely and accurately represents operations during this reporting
period.
	mallim Signature:
Title: President of the Management Board									Date: $97.02.2017$ .
Contact Details
Telephone:+385 1 4686806
E-mail:ir@zse.hr
Date of Report: 7.2.2017 Reporting Period: 1.1. - 31.12.2016
Does the Stock exchange operate Operates in more than one Operates only in this country ⊠ О
internationally?			country
Number of employees in country		< 50			$\Box$	51-100		$\Box$	101-500	$\Box$	>500
Other IFIs / MDBs / Donors providing financing to the Stock exchange			$\Box$	IFC		EIB $\Box$		$\Box$	EU
				$\Box$	World Bank		ADB			$\Box$	FMO
								$\Box$
				$\Box$	KFW/DEG			$\Box$	Other
									(please specify)
Nature of business relationship(s) with EBRD covered in this report
Operation		Loan	$\Box$	Fund		o	SME		TFP $\Box$		$\Box$	Leasing
		Equity				□	MSME				□	Mortgage

Section 1: Compliance with EBRD PR9: Environmental Capacity and Support Does the stock exchange have a formally adopted à Yes Environmental and Social Policy or Procedures? N_o $\Box$ What aspects does the Environmental and Social (E&S) Environment $\square$ Policy cover? Á Social (eg labour issues) X Health and Safety $\Box$ E&S issues associated with the stock exchange $\Box$ E&S issues associated with companies (to be) listed and papers traded Not Applicable $\square$ No Does the Exchange participate in The Sustainable Yes $\Box$ Stock Exchanges Initiative? × N_o http://www.sseinitiative.org Don't know $\Box$ Are any of the companies whose papers are listed on $\Box$ Yes the Exchange involved in activities on the EBRD's $\Box$ No Environmental and Social Exclusion List? (attached)? Don't Know

Does the stock exchange list and trade papers of companies with high E&S risk clients according to EBRD's environmental and social risk categorisation list (see http://www.ebrd.com/who-we-are/our- values/environmental-and-social-policy/tools-for- financial-intermediaries.html%20	Don't know. ó
Provide a sample breakdown by industry sector of listed companies dating from the last quarter.	Breakdown by industry sector of listed companies on 30 а December 2016 attached.
Do listing rules for issuing companies specifically cover disclosure of material E&S risks and liabilities, and how they are being addressed by the company?	Yes (please give details and state where the $\Box$ requirement is located, e.g. company law, Stock Exchange regulations, Stock exchange's own statues/policies etc.) × No
Does the stock exchange offer sustainability-related guidance and/or training companies and/or investors?	Yes $\Box$ No x Don't know $\Box$
Please provide details of any initiatives taken or planned by the Exchange to raise issuing companies' awareness and/or to promote or require better transparency and disclosure on E&S-related performance and risk factors". Does the Exchange operate or plan to operate any	There were no initiatives taken or planned by the $\Box$ Exchange to raise issuing companies' awareness and/or to promote or require better transparency and disclosure on E&S-related performance and risk factors Yes $\cancel{\mathbb{X}}$
sustainability indices? Has the Stock exchange signed any national, international or industry agreements or declarations concerning environmental and social issues?	No $\Box$ Yes (please provided details) $\Box$ Ă No
Stakeholder Engagement Is there a point of contact for dealing with public enquiries and concerns related to environmental and social matters?	Name: Marina Selman Title: Head of Investor relations Phone/mobile: +385 1 4686 806 E-mail: ir@zse.hr
Does the Stock exchange disclose project / environmental/social information to stakeholders? (eg via web site, local newspapers, dialogue with issuing companies or investors on environmental and social matters, etc)?	Yes (please provide details) $\Box$ $\cancel{\mathbb{X}}$ No

$\label{eq:2.1} \frac{\partial \phi(t)}{\partial t} = \frac{1}{\sqrt{2\pi}} \int_0^t \frac{dt}{t} dt$

Section 2: Compliance with EBRD's PR2: Labour and Working Conditions
2.1 What is the name of the employee with primary overall responsibility for Human Resource Management in the Stock exchange?
Name: Igor Poljanić Title: Head of Legal Affairs and Human Resources Phone/Mobile: +38514686816 E-mail:igor.poljanic@zse.hr
2.2 Human Resources Management
2.2.1 Have there been any changes to the following policies or terms and conditions during the reporting period: Non-discrimination and equal opportunity policy Employment of young persons under $\bullet$ age 18 Wages (wage level, normal and $\bullet$ overtime) Overtime $\bullet$ Working hours $\bullet$ Grievance mechanism for workers $\bullet$ Union recognition or negotiation $\bullet$ Health & safety $\bullet$	Yes $\Box$ No 区	If yes, please give details:
2.2.2 Does the company have policies and/or procedures for any of the following: Gender equality $\bullet$ Equal pay for work of equal value $\bullet$ Anti-harassment/bullying $\qquad \qquad \bullet$ Promoting family friendly work and the $\bullet$ work/life balance	Yes □No ⊠ Yes □No ⊠ Yes ZANo □ Yes □No	The Company has established anti-harassment program for workers to raise workplace concerns related to protection of employees' dignity. Program allows for confidential complaints to be raised and addressed. Person responsible for the above is Ivana Gažić, president of the Management Board.
2.2.3 Were there any collective redundancies during the reporting period?	Yes $\Box$ $No & \cancel{\mathbb{X}}$	If yes, please describe the redundancy plan, including reasons for redundancies, number of workers involved, how they were selected, and consultation undertaken:
2.2.4 Are there any planned redundancies or additions to the workforce in the next year?	Yes $\Box$ $No \cancel{\boxtimes}$
2.2.5 Have employees raised any grievances with the stock exchange during the reporting period?	Yes $\Box$ $No & \mathbb{X}$	If yes, please state how many, summarise the issues raised in grievances (disaggregated by gender) and explain how the Stock exchange has addressed them:
2.2.6 Have there been any strikes or other collective disputes related to labour and working conditions at the Stock exchange in the reporting period?	Yes $\Box$ $No & \cancel{\boxtimes}$	If yes, please summarise nature of disputes and how they were resolved

2.2.7 Have there been any court cases related to	Yes $\square$	If yes, please summarise the issues contested
labour issues during the reporting period?	$No$ $\boxtimes$	and outcome.

Section 3: Compliance with EBRD PR4: Occupational Health and Safety (or Workplace Health and safety)

What is the name of the employee with primary overall responsibility for Occupational Health and Safety within the Institution?

Name: Igor Poljanić

Title: Head of Legal Affairs and Human Resources Phone/mobile: +385 1 4686816

E-mail: igor.poljanic@zse.hr

Occupational and Safety (OHS) Data

Please provide details of any fatalities or major accidents that have not been reported to EBRD during the reporting period.

There were no fatalities or major accidents in 2016.

Please summarise any emergency prevention and response training that has been provided for company personnel during the reporting period:

One employee participated in a training related to health and safety hazards.

Please summarise any emergency response exercises or drills that have been carried out during the reporting period:

There was one emergency response exercise in 2016.

Abbreviations: ADB - Asian Development Bank EBRD - European Bank for Reconstruction and Development EIB - European Investment Bank FMO - Netherlands Development Finance Company IFC - International Finance Corporation IFI-International Finance Stock exchange KFW/DEG - KFW Banking Group Germany Development Corporation MDB - Multilateral Development Bank

EBRD Environmental and Social Exclusion List

EBRD will not knowingly finance, directly or indirectly, projects involving the following:

• (a) the production of or trade in any product or activity deemed illegal under host country (i.e. national) laws or regulations, or international conventions and agreements, or subject to international phase out or bans, such as:
• (i) Production of or trade in products containing PCBs.
• (ii)Production of or trade in pharmaceuticals, pesticides/herbicides and other hazardous substances subject to international phase-outs or bans.²
• (iii) Production of or trade in ozone depleting substances subject to international phase out.³
• (iv) Trade in wildlife or production of or trade in wildlife products regulated under CITES.⁴
• (v)Transboundary movements of waste prohibited under international law.⁵
• (b) Production or use of or trade in unbonded as bestos fibres or as bestos-containing products.
• (c) Activities prohibited by host country legislation or international conventions relating to the protection of biodiversity resources or cultural heritage.⁶
• (d) Drift net fishing in the marine environment using nets in excess of 2.5 km. in length.
• Shipment of oil or other hazardous substances in tankers which do not comply with IMO requirements.⁷ $(e)$
• Trade in goods without required export or import licenses or other evidence of authorization of transit from the relevant $(f)$ countries of export, import and, if applicable, transit.

^<sup>1 PCBs: Polychlorinated biphenyls are a group of highly toxic chemicals. PCBs are likely to be found in oil-filled electrical transformers, capacitors and switchgear dating from 1950-1985.

^<sup>2 Reference documents are Council Regulation (EEC) No 2455/92 of 23 July 1992 Concerning the Export and Import of Certain Dangerous Chemicals, as amended from time to time; United Nations Consolidated List of Products whose Consumption and/or Sale have been Banned, Withdrawn, Severely Restricted or not Approved by Governments; Convention on the Prior Informed Consent Procedures for Certain Hazardous Chemicals and Pesticides in International Trade (Rotterdam Convention); Stockholm Convention on Persistent Organic Pollutants; World Health Organisation Recommended Classification of Pesticides by Hazard.

^<sup>3 Ozone Depleting Substances (ODSs): Chemical compounds which react with and deplete stratospheric ozone, resulting in the widely publicised 'ozone holes'. The Montreal Protocol on Substances that Deplete the Ozone Layer lists ODSs and their target reduction and phase out dates. A list of the chemical compounds regulated by the Montreal Protocol, which includes aerosols, refrigerants, foam blowing agents, solvents, and fire protection agents, together with details of signatory countries and phase out target dates, is available from the United Nations Environment Programme.

^<sup>4 CITES: The Convention on International Trade in Endangered Species of Wild Fauna and Flora. A list of CITES listed species is available from the CITES secretariat

^<sup>5 Reference documents are: Regulation (EC) No 1013/2006 of 14 June 2006 on shipments of waste; Decision C(2001)107/Final of the OECD Council concerning the revision of Decision C(92)39/Final on the control of transboundary movements of wastes destined for recovery operations; Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal.

^<sup>6 Relevant international conventions include: Convention on the Conservation of Migratory Species of Wild Animals (Bonn Convention); Convention on Wetlands of International Importance, especially as Waterfowl Habitat (Ramsar Convention); Convention on the Conservation of European Wildlife and Natural Habitats (Bern Convention); Convention Concerning the Protection of the World Cultural and Natural Heritage; Convention on Biological Diversity.

^<sup>7 This includes: tankers which do not have all required International Convention for the Prevention of Pollution from Ships (MARPOL), International Convention for the Safety of Life at Sea (SOLAS) certificates (including, without limitation International Safety Management Code compliance), tankers blacklisted by the European Union or banned by the Paris Memorandum of Understanding on Port State Control (Paris MOU) and tankers due for phase out under MARPOL regulation 13G. No single hull tanker over 25 years old should be used.

Zagrebačka burza d.d.

2016.

Sektorska klasifikacija

Zagreb, veljača 2017.

$\mathbf{A}$ Poljoprivreda, šumarstvo i ribarstvo 8 CA 19 Proizvodnja prehrambenih proizvoda, pića i duhanskih proizvoda CB Proizvodnja tekstila, odjeće, kože i srodnih proizvoda 6 CC Proizvodnja proizvoda od drva i papira, tiskanje 2 CD Proizvodnja koksa i rafiniranih naftnih proizvoda $\mathbf{1}$ CE Proizvodnja kemikalija i kemijskih proizvoda 3 CF Proizvodnja osnovnih farmaceutskih proizvoda i $\mathbf{1}$ farmaceutskih pripravaka CG $\mathbf{1}$ Proizvodnja proizvoda od gume i plastike te proizvodnja ostalih nemetalnih mineralnih proizvoda CH $\overline{2}$ Proizvodnja osnovnih metala i proizvodnja izrađenih metalnih proizvoda, osim strojeva i opreme Proizvodnja računala te elektroničkih i optičkih proizvoda $\overline{2}$ CI CJ Proizvodnje električne opreme 6 CL $\overline{4}$ Proizvodnja transportne opreme CM 3 Ostala prerađivačka industrija, popravak i instaliranje strojeva i opreme F Građevinarstvo 6 $\mathbf G$ 14 Trgovina na veliko i na malo; popravak motornih vozila i motocikala H Prijevoz i skladištenje 10 $\mathbf I$ Djelatnosti pružanja smještaja te pripreme i usluživanja hrane 30 Izdavačke djelatnosti, filmska djelatnost i djelatnosti snimanja JA $\overline{2}$ zvučnih zapisa te djelatnosti emitiranja programa Telekomunikacije JB $\overline{2}$ 25 K Financijske djelatnosti i djelatnosti osiguranja $\overline{2}$ L	Oznaka	Naziv	Broj uvrštenih vrijednosnica
		Poslovanje nekretninama
MA Pravne, računovodstvene, upravljačke, arhitektonske 11 djelatnosti i inženjerstvo te tehničko ispitivanje i analiza
$\overline{2}$ MB Znanstveno istraživanje i razvoj
$\mathbf{1}$ ${\bf R}$ Umjetnost, zabava i rekreacija

ZAGREBAČKA BURZA

Ivana Gažić
Predsjednica Up

Tomislay Gračan
Član Uprave

Prilog 2. Postupanje u skladu sa socijalnim pravom

Naši su zaposlenici naš najvažniji resurs. Naša je politika postupanje u skladu s mjerodavnim zakonima i propisima, među kojima su oni o radnom vremenu, naknadama, mogućnosti, ljudskim pravima i radnim uvjetima.

Tijekom 2016. godine Zagrebačka burza postupala je u skladu sa sljedećim zakonima:

• $1.$ Zakon o radu
• $2.$ Zakon o zaštiti na radu

Društvo nema obvezu pridržavanja odredbi Zakona o zaštiti okoliša.

Tijekom 2016. godine nije bilo provođenja inspekcija bilo kojeg regulatornog tijela, kao ni kršenja mjerodavnih zakona, propisa ni normi te nisu poduzimane korektivne mjere ni propisivane kazne u vezi s takvim kršenjem.

Nije bilo bitnih obavijesti, izvještaja ni drugog priopćavanja o zaštiti okoliša i socijalnim pitanjima u vezi s poslovanjem i aktivnostima Društva koje Društvo dostavlja bilo kojem regulatornom tijelu.

Prilog 3. Informacije o upravljanju zaštitom zdravlja i sigurnosti na radnom mjestu

Zagrebačka burza prepoznaje važnost sprječavanja ili ublažavanja nepovoljnih utjecaja i problema za zdravlje i sigurnost radnika.

Društvo je donijelo Pravilnik o zaštiti na radu kojim se uređuje njegov pristup u pogledu vlastite veličine i radne snage u skladu s nacionalnim pravom.

Tijekom 2016. godine nije bilo provođenja inspekcija bilo kojeg regulatornog tijela, kao ni kršenja mjerodavnih zakona, propisa ni normi. Društvo nije dostavilo nikakve bitne obavijesti ni izvještaje o zaštiti okoliša i socijalnim pitanjima u vezi s poslovanjem i aktivnostima Društva bilo kojem regulatornom tijelu.

U studenom 2016. ovlašteno društvo Institut za sigurnost Zagreba provelo je nadzor i izdalo zaključak da Društvo postupa u skladu sa svim pravilima upravljanja zaštitom zdravlja i sigurnosti na radnom mjestu.

Društvo svojim radnicima pruža odgovarajuće informacije, smjernice i obuku u vezi s opasnostima za zdravlje i sigurnost, rizicima, zaštitnim i preventivnim mjerama i mehaniznima za slučaj nužde koji su potrebni za njihovu sigurnost.

Tijekom 2016. nije bilo nesreća na radu, nezgoda koje bi prouzročile gubitak radnog vremena ni izbjegnutih nesreća, kao ni poduzimanja ni planiranja olakšavajućih mjera od strane Društva. Jedan je zaposlenik sudjelovao u obuci o opasnostima za zdravlje i sigurnost.