Reporting performance

Approach

Debt collection companies focus on the establishment of a satisfactory and respectful relationship with the customer (debtor) that will result in a positive outcome for both parties.

To this end, B2Holding seeks to guarantee ethical treatment of the customer in line with the legal framework, as well as with the Code of Conduct and with the Company’s values.

Further, assertive and transparent communication is considered highly important in the interest of finding agreements and amicable solutions whenever possible; customers’ needs are taken into account and simple and understandable language is privileged.

Moreover, as a company working face to face with the public, B2Holding is required to have mechanisms to allow customers to express their opinion and to assess their level of satisfaction. This includes not only treating claims adequately but also having the capacity to identify how to improve the relationship with customers and develop associated plans.

To this end, responsibility lies with the Heads of Operations in all the Group’s entities, as well as the Heads of business lines in the Group Executive Management.

This aspect is a top priority of B2Holding’s ESG management for several reasons.

First, the management of customers represents the core of B2Holding’s operations, and its main impact in terms of ESG is thus associated with this stakeholder. Furthermore, in light of the business niche of its activity, the company must ensure treatment in line with the most basic rights, such as respect and dignity, for people in vulnerable situations.

Second, the relationship with customers shapes the public image of B2Holding and the perception that stakeholders may have of the Group. As a result, good management is key to reinforce B2Holding’s main stakeholders’ confidence in the Group’s services.

Finally, ensuring the fair treatment and satisfaction of customers responds to B2Holding’s commitment to providing a service to society, helping people in a situation of debt to regain control and financial credibility.

Main achievements and performance

This topic is material to B2Holding entities acting as solution providers focused on delivering amicable solutions to customers before starting legal action. Thus, the majority of payments in all three business lines come from amicable solutions.

10 out of 22 entities surveyed (45 %) have established internal Quality & Auditing Control reviewing calls and other actions performed for customers in order to supervise and review the Group’s operations that fulfil both internal requirements and partners’ and clients’ requests with regards to ethical, respectful and professional ways of working.

Of all audited calls and actions in 2020, 98 % comply with the established standards. To improve performance, action plans and trainings are planned on a monthly basis. It is the Group’s ambition to extend Quality & Auditing Control to all Group entities.

The industry is especially exposed to complaints or claims that could lead to serious reputational damage; however, the incidence of complaints in 2020 was very low. Complaints made by customers regarding customer rights, disagreements or non-conformity (non-judicial claims) in 2020 represented only 0.01 % of cases serviced during this period.

Currently, two entities in B2Holding are performing customer surveys to collect feedback on services provided. The average score on a customer satisfaction survey was 4.88, which means that 97.5 % of surveyed customers were satisfied with the professional approach when finding a solution for their debt. Given the positive results and insights from these surveys, the implementation of customer surveys in other countries are planned in the strategy for 2021-2023.

Approach

It is increasingly clear that companies need to have an ethical business model that fights corruption due to the risk it poses to management quality and institutional continuity. Ethics business practices are also a moral duty of any company towards its own employees and society in general.

B2Holding defines corruption as the abuse of entrusted power for illegitimate personal benefits or private gain and has a zero-tolerance policy against corruption. This involves both financial and non-financial benefits. The Group’s attitude towards corruption is communicated mainly through the Code of Conduct.

Corruption represents a high risk for B2Holding not only because the Group has presence in countries and markets which are more exposed to financial crime than others, but also due to the business activity and the industry B2Holding is operating in. The Group takes a firm zero-tolerance position against bribery or corruption in any form. B2Holding believes that a culture with no corruption can only be achieved if it is appropriately and effectively led from the top.

Furthermore, for B2Holding, the development of a corporate culture with well-rounded programmes and policies to manage corruption risks is very important, particularly in the countries that are most exposed to financial crime. The corruption risk for the Group is assessed to be related largely to the acquisition of debt portfolios when these are not sold through regulated channels. Such sales are guided by the authorization hierarchy and the application of the “four eyes principle”.

The responsibility to comply with the principles set out in the Code of Conduct and the ethical rules lies with all B2Holding employees.

The identification, management, and remediation of non-ethical and/or corruption risks are to be handled in the light of the three reporting functions model where:

• The Business operations owns and manages risks (first reporting function);
• The Compliance and Risk management functions support the implementation of risk and compliance management procedures, as well as measuring, monitoring, following up and reporting any risks (second reporting function); and
• The Internal Auditor independently evaluates the governance, risk management and control processes within the first and second reporting functions (third reporting function).

The ultimate responsibility lies with the Board.

Main achievements and performance

The Code of Conduct was reviewed, updated, and ultimately approved by the Board in June 2020. Furthermore, it was presented to all employees in an online event in November. The Code of Conduct is accessible on the Company’s website, as well as through its internal communication platforms. It has been translated into all local languages. Various workshops and mandatory training sessions are planned over the course of 2021 to ensure common culture is embedded in the organization.

During 2020, B2Holding continued its efforts to raise awareness on the risks related to corruption across the Group, in line with the values enshrined in the Code of Conduct. In B2Holding, all employees and managers are responsible for understanding the importance of the legal and ethical issues that affect the industry and for always performing the duties with integrity.

Further, B2Holding’s Anti-Corruption Policy, which is rooted in the Code of Conduct, outlines what is meant by corruption, the risks related thereto, and how all employees should handle them, regardless of the status and role, as well as the responsibilities and consequences in case of corruption activities. An updated version of the Group Anti Corruption Policy is currently being prepared and is finalized in the course of 2021.

In 2020, no confirmed corruption incidents have been reported.

Moreover, B2Holding has worked actively towards fulfilling its commitment to implementing an internal whistleblowing channel for the Group. Some entities in the Group already have their own local Whistleblowing Policy and channel, whilst other have been waiting for the Group Whistleblowing Policy and channel to be in place in the course of 2021.

In 2020, there has been reported a total of eleven whistleblowing incidents, whereof seven have been reported and solved by the local entities in the local compliance reporting channel. Of the four incidents that were filed directly at the Group level, one has been solved in 2020 and the remaining three are under investigation with a final report with conclusions, recommendations, and potential measures to be finalised in short time. The reported whistleblowing incidents in 2020 mainly concerned unwanted social behaviour and breach of internal procedures/governance.

All reported whistleblowing incidents made on the Group level have been registered and investigated, either internally or with the assistance of qualified external lawyers with expertise in conducting complex investigations. Once the investigation has been duly completed, a final report has been drafted, outlining the main conclusions and recommendations, and where necessary, measures have been taken.

B2Holding is in the process of setting up a common whistleblowing channel for the Group and finalising the Group Whistleblowing Policy. All whistleblowing incidents are handled with the utmost confidentiality. The common whistleblowing channel will ensure confidentiality and enable all whistleblowers to report on an anonymous basis, provided that this is allowed in the light of the local legislations.

B2Holding encourage employees to report misconduct and the Group expects the number of whistleblowing incidents to raise when the new whistleblowing channel is established, and the Group’s employees are trained in using this.

In 2020, the incidents referred to as reported whistleblowing incidents to the Group level above have been assessed as harassment. As for the incidents related to discrimination, B2Holding has not collected the figures for 2020, but aims at disclosing numbers in the 2021 report.

In 2021, the Compliance function has introduced compliance e-learning trainings which are mandatory for all employees. The compliance reporting via the centralised Data Warehouse has also been launched. The central Compliance function has met with all entities to set up and train for the Compliance Annual Program for 2021. These meetings have emphasized the importance of the training to be provided both by the Group and the local entities during the year, including but not limited to compliance-related matters.

Approach

Compliance is crucial to guarantee that the organization develops its business in a responsible manner, as well as to create stable value for stakeholders. In this sense, B2Holding works hard to establish appropriate processes to ensure that the Group complies with applicable regulations and to minimize any operational or legal risks that may arise.

Responsibility for compliance lies with all Legal and Compliance functions in the Group’s entities, which have become more closely linked in 2020 and work in tandem under the Chief Legal and Compliance Officer, a member of Group Executive Management. These functions work closely with other functions in the Group to ensure policies and guidelines are implemented and updated, training is received, improvement areas are identified, and actions are taken when required.

The Group’s goal is to safeguard its good reputation for long term sustainability to operate as a viable company. This is crucial for the Group as it deals with debt collection activities and the Group’s customers need to trust B2Holding in order to positively engage with Group.

The Group’s target in this respect is that compliance policies, the Code of Conduct, and adopted values are embedded in the Company’s operations and in how employees conduct themselves in day-to-day work and in relationships with stakeholders.

B2Holding interacts with organizations in charge of preparing public policies, communicating both the Group’s concerns and experiences in the legal areas related to its activity.

In addition, compliance is an important part of internal efforts as the Company has operations in multiple locations and regulations are constantly evolving and increasingly strict. Furthermore, from the ESG point of view, compliance is especially important as it is tangential to many of the other relevant issues for the Company such as fair treatment of debtors, data privacy and anti-corruption.

Main achievements and performance

In 2020, nine cases related to breaches of applicable laws or other obligations were registered. Only two cases were assessed as critical by the local entity which experienced them. The local entity has confirmed that appropriate remediation measures have been taken and the cases are closed.

In 2020, B2Holding has collected the figures related to sanctions imposed after an audit has been conducted by the local authorities. Such audits have been conducted by the authorities in Poland and Romania, however no sanctions have been imposed.

Sanction without an audit resulting from non-compliance with laws and other obligations is not included. The Group aims at reporting the latter figures in the 2021 report.

Furthermore, the Group Compliance Policy and the Code of Conduct were implemented in the Group in 2020 and communicated to local entities.

Approach

Corporate governance is the backbone of any organization and comprises all the practices an organization has in place to guarantee that its top management performs in an ethical and effective way.

For B2Holding, good governance represents the ability to lead and is key to identifying and managing risks, as well as to visualizing, planning, and fulfilling the goals of the Company.

The implementation of good corporate governance practices also contributes to the efficiency of processes, reduction of costs and access to financing. Moreover, it fosters an ethical and responsible organizational climate, which increases the Company’s ability to attract and retain employees, maintain team commitment, and ensure positive perception.

Good governance is a key element to promote ethical behaviour by the Company, which is essential to generate the trust of all stakeholders.

Main achievements and performance

B2Holding’s corporate governance is described in the Corporate governance report, which outlines specific procedures, mechanisms, commitments, and responsibilities.

Approach

Regarding the responsible management of information and data, B2Holding’s ability to adapt to emergent regulatory changes related to data privacy and protection is of great significance, including General Data Protection Regulation (GDPR) or best practice actions regarding cybersecurity.

In the current digital world, globalization and data sharing have triggered an increase in cyberattacks and data breaches. As a result, B2Holding prioritizes the implementation of prevention plans to avoid these risks and the development of information pathways to ensure that the Company’s information is secure.

Furthermore, the Group acknowledges that the world and its customers are moving towards online services and digitalization and therefore sees cybersecurity as an opportunity to thrive in such a competitive market.

Considering that the portfolios B2Holding own or service involve several million customers, for whom privacy is of the utmost importance, data privacy is a major concern for the company’s top management. As a result, the Company has developed and implemented several policies to ensure the responsible management of data and information security in order to adapt to the legislation and recommendations concerning these issues. Additionally, considering that online services and digitalization are highly relevant to B2Holding’s business model, the Group is committed to developing the necessary cybersecurity tools to tackle the associated risks.

B2Holding has implemented and respects the GDPR requirements in the Group and the local data protection laws. Appropriate and suitable safeguards and technical measures have been implemented in order to protect personal data, to safeguard the rights and freedoms of the data subjects.

B2Holding has approved the policies currently in place, which are revised and updated regularly, in order to appropriately handle customer privacy and personal data processing:

Personal Data Processing:

• GDPR Policy
• Personal Data Breach Management Policy
• Cookie Files Policy
• Risk Analysis Policy

IT:

• Information Security Policy

B2Holding protects and safeguards customer data, applying the fundamental principles of information security and complying with the rules and requirements of the EU’s GDPR.

Confidentiality, integrity, and availability are respected during the whole data processing cycle: collection, processing, storage, and erasure with the aim to protect customers’ personal data.

Main achievements and performance

In 2020, neither investigations have been conducted, nor sanctions have been imposed against B2Holding by any European government authorities responsible for the application of and compliance with GDPR and data processing requirements.

In addition to the trainings with respect to the GDPR and data processing requirements, all changes, clarifications, recommendations, etc. related to GDPR and privacy that may impact the Group’s business have been duly monitored both locally by local Data Protection Officers (DPOs) and at the Group level by the Group DPO and communicated across the Group on an on-going basis.

In 2020, the clear majority of the employees have been trained by the Group DPO with respect to the applicable GDPR and data processing requirements. The trainings are mandatory and conducted on an annual basis.

B2Holding has an external Group DPO, and all Group entities use dedicated DPOs where required.

All Group entities have IT software to ensure compliance with GDPR requirements, and Data Protection training is provided to employees as part of the regular training programmes.

In 2020 the Group underwent and finalized the first full annual audit of all Group entities including reporting and monitoring through operational, IT and compliance functions internally. It has been established as an ongoing process that will follow up on action plans for improvement where needed.

In 2020 the Group achieved its ISO/IEC 27001 certification in Spain. The Group’s ambition is to certify or obtain a rating for collection platforms where appropriate.

Approach

Transparency and credibility at the corporate level are closely related and influence the confidence of all stakeholders. It is therefore essential for B2Holding to ensure good internal and external communication based on corporate values.

With regard to external communication, B2Holding is a publicly listed company, which provides stakeholders with access to information regarding regulatory compliance including financial and non-financial information.

Furthermore, internal communication constitutes a strategy to transmit corporate values and objectives to employees, and thereby guide them towards carrying them out, while increasing the level of commitment to the business. It implies, among other things, a successful business culture, as well as the implementation of policies and tools for ensuring transparency and increasing employee engagement.

B2Holding considers transparency and accessibility crucial for its growth.

Main achievements and performance

Internal communications from the Group to all employees are mainly transmitted through B2Holding’s internal communications platform, Workplace by Facebook (“Workplace”).

Nearly 100 % of employees have access to Workplace, and the remaining employees are encouraged to access the platform. A large number of employees are active on the platform every month, with an average of 88 % in 2020.

Interactions have been frequent during 2020 and the Group has published news about the Company’s financial performance, relevant IT projects, compliance strategy, Group strategy, ESG focus going forward, people and culture initiatives and its updated vision, mission and values. Furthermore, B2Holding held its first live-streamed event with all employees in which the strategy was presented, as well as the new Code of Conduct and vision, mission and values.

Approach

In 2020, a three-year programme was launched in the Group with the long-term ambition to transform all business processes using data and analytics to build the best-in-class NPL investor and servicer in Europe. The programme’s goal is to improve data quality, volume, access, and utilization by identifying and developing advanced analytical models. It is a Group-wide priority programme in the coming years that will improve both business outcomes and customer experience.

Considering the competitive nature of the market and the process of globalization affecting all companies, digitalization is a necessary component of B2Holding’s strategy. In this regard, digitalization goes hand in hand with innovation, illustrating the capacity of B2Holding to respond to emergent trends and the expectations of local markets.

For B2Holding, digitalization is increasingly important when considering how to approach payments and contact with customers. Nowadays, it is important to tailor services to customers’ needs and preferences, as well as to the local legislation and digital maturity of the different countries of operation.

B2Holding acknowledges the importance of being proactive and innovative when it comes to technological advancements. Digitalization is considered key to ensuring the Company’s competitiveness in the market.

Main achievements and performance

Availability of digital services in B2Holding’s unsecured markets:

• Digital payments available for customers (digital banking via payment service, mobile PSPs, card payments): 43 % of countries with unsecured portfolios (servicing 77 % of unsecured ERC)
• Digital self-service platforms (debt information, status of payments, possibility to set up payment plan): 43 % of countries with unsecured portfolios (servicing 77 % of unsecured ERC)
• Digital communication platforms (OTT, chat, chat bot, RCS, outbound IVR, outbound voice bot): 43 % of countries with unsecured portfolios (servicing 55 % of unsecured ERC)

In 2021, several projects are planned in the Group’s unsecured business line in order to maximize both collections as well as quality and customer experience via digital channels. Improvement in digital payment ratio as well as self-service payments ratio is key for 2021.

The most digitally advanced platforms include Finland, Poland and Sweden, which jointly represent nearly 60 % of  the unsecured ERC. Their digital payments ratio (digital payments/all negotiated payments) is already approaching 100 %, and the ratio of self-service payment plans (self-service payments plans/all payment plans) varies between 3 % and 50 %. Most recent experience of digital transformation in Poland shows significant improvement in digital self-service, with collections through digital channels multiplying by over fifteen between January 2019 and January 2021. The priority for 2021 is to increase availability and penetration of digital self-service channels through sharing knowledge and best practices in all B2Holding’s operations.

The Covid-19 pandemic has boosted digitalization of training tools at B2Holding. Nearly 30 % of entities had an e-learning platform in place. 32 % of all employees performed some digital training courses, whether internal or external, and 100 % of employees had access to the internal communication platform Workplace to communicate, interact and get feedback and training from colleagues.

Furthermore, three countries piloted an e-learning platform. By the end of 2020, the expansion of the Group e-learning tool to all locations was approved and this was fully implemented in first quarter 2021.

Availability of e-learning platform in Group entities:

Additionally, since mid-March 2020, the Group implemented Microsoft Teams as a tool for digital meetings and video calls.

Approach

Before rendering services, B2Holding works with different organizations, such as vendors or co-investors, to acquire non-performing loans.

Given the strategic nature of these alliances, the goal is to establish mutual trust agreements without incurring any unwanted risks. In order to make this happen, an extension of the scope of control over certain matters that are of great sensitivity to us, such as prevention of corruption, treatment of customers, absence of aggressive commercial strategies, high-risk reputational activities, anti-competitive practices, legal sanctions, etc., must be guaranteed.

B2Holding’s acquisition of non-performing loans and third-party debt collection services have important ESG implications.

Main achievements and performance

For this purpose, in 2020, B2Holding started monitoring ESG criteria in potential investments, such as prevention of corruption, treatment of customers, absence of aggressive commercial strategies, high-risk reputational activities, anti-competitive practices, legal sanctions and unethical lending conditions. The use of these practices was checked during due diligence. As a result, all investments in 2020 included some ESG criteria.

The Group’s goal for 2021 is to design and approve an ESG Responsible Acquisition Policy that can be deployed to all Group entities to ensure the harmonization of requirements and standards.

Approach

For B2Holding, talent management begins in the recruitment process and must accompany employees throughout their working lives in the Company. In this sense, the Group aims not only to attract qualified professionals but also to value existing talent. Due to its extensive scope, this aspect addresses all the issues associated with employee growth itself and the Company’s ability to attract and retain professionals and develop their potential.

More specifically, some of the phases of this process are selection and recruitment of personnel, training and promotion in the Company, evaluation and recognition of performance, retention of talent (e.g. working conditions, etc.).

Main achievements and performance

During 2020, the Company ran a pilot project, implementing a digital platform for learning in three major entities, covering 30 % of total employees. This was the first step in developing a culture for continuous development and learning. By March 2021, the platform was implemented in all Group entities with a combination of global, local, voluntary and mandatory content.

Further, 32 % of all employees participated in different training courses using digital platforms whether internal or external.

Total turnover rate in 2020 was 35 %. This figure is slightly above the average of the debt collection industry, in large due to the organizational adjustment required to adapt to the Covid-19 pandemic. Although the monthly turnover average was around 2 %, the Group experienced a peak of 9 % in March 2020 due to Covid-19. However, voluntary turnover remained low at 13 %.

The breakdown of people joining and leaving B2Holding by age range and gender is illustrated below.

The Workplace communication platform has facilitated digital collaboration, innovation, and knowledge transfer across the Group. It has become an important tool for all types of cross-border and cross-functional communication.

In 2020, Group entities in two countries had talent programmes in place to develop people’s skills. The goal is to expand this type of initiative and promote and foster its expansion in all other local entities.

Approach

B2Holding is aware of ESG concerns and is committed to sustainable development as an investment for improved growth and development of the Group.

Furthermore, investors, co-investors, lenders, and other crucial stakeholders are demanding better ESG practices. For this reason, there is a growing need to adapt to these demands, to raise awareness and to take action to tackle emergent environmental (e.g. climate change and plastic use), social (e.g. diversity and inclusion) and governance (e.g. corruption and transparency) issues.

Main achievements and performance

In the beginning of 2020, the Head of Corporate Development was appointed responsible of ESG for B2Holding. The main focus has been to analyse the Group’s and the stakeholders’ needs and requests by performing a materiality analysis and to set up a set of minimum KPIs to assess performance.

Interactions with all stakeholders have significantly increased, but different actions have been performed internally and externally. With employees, ESG workshops, surveys, interviews have taken place, and there have been external interactions with investors, lenders, clients, partners, and rating agencies through different channels.

The Group has decided to be proactive in the improvement and has participated in forums and events such as the Goldman Sachs Investor Day discussing ESG issues.

In 2021, B2Holding is committed to reporting significant changes and progress related to its implementation of Sustainability strategy on the Company’s website.

Approach

As a result of the Covid-19 pandemic, more attention has been drawn to the resilience of companies in the face of emergent risks which were sometimes classified as “less likely” to happen.

In this sense, it is important for B2Holding to have prevention plans and robust risk management systems in place to identify, evaluate and manage the potential risks that might impact the Company’s activities and performance, including ESG issues. Having these measures in place will be vital to mitigate the potential detrimental impacts of such events.

Social risks, such as strikes or epidemics, also have a major impact on a company’s performance and should be evaluated and integrated into its risk management system, particularly in a sector in which environmental factors do not play a major role, such as the debt collection industry.

Main achievements and performance

211 active employees, less than 10 %, have been infected by Covid-19 in the Group. Spain and Italy have been the countries most affected.

The Company has experienced no fatalities from the pandemic.

The lockdowns imposed from mid-March 2020 were unlike anything any of the Company’s employees had ever experienced; however, the entire Group managed to navigate the situation with great success and all employees were working from home within weeks. Having robust management systems and IT connections proved key during the adaptation process and ensured that there were no negative effects on operations.

Finally, 2020 was an especially challenging year in some countries, such as Croatia, which experienced two earthquakes. Out of concern for the Group’s people, premises were closed for a few days, and all employees were contacted to ensure their health and safety and offered assistance; measures were also taken regarding collection procedures and flexibility for vulnerable clients.

Approach

When considering a company’s diversity, many issues are usually highlighted including gender, race, age, capabilities, and background. B2Holding believes that having a diverse workforce will contribute to providing a more holistic approach to ideas and initiatives and improve innovation as well as performance and productivity.

As a result, B2Holding fosters the development of action plans to guarantee equal labour opportunities to all individuals, no matter their gender, ethnicity, or age. Furthermore, current trends emphasize the need to ensure that gender diversity ratio (particularly in top management positions) and pay gap are properly disclosed and that great efforts are dedicated to reducing any difference.

Main achievements and performance

The Board has 43 % women. Further, 27 % of local entity CEOs are women. When combining both management positions and middle management, the ratio increases to 49 %.

Overall, the gender distribution in the B2Holding Group is 65 % women and 35 % men, which remains similar to 2019 data.

Other data relevant for diversity include the composition of governing bodies in terms of age group, shown below.

Although B2Holding has operations in 22 different countries, the Group has employees representing 42 different nationalities in various teams, whereof 24 (almost 60 %) are European. Furthermore, employees come from five different continents. Four nationalities are represented in the Group Management.

One of the Company’s projects for 2021 is to perform an analysis of the gender pay gap and dedicate efforts to reducing any differences.

Since 2018, B2Holding has participated in the SHE Index, a survey intended to gather more facts and motivate companies to work on narrowing the leadership gender gap. Although the Group has improved its score compared to 2019 and is in the average range at 44, its goal is not only to improve at promoting female leadership but also to disclose information and statistics in a clearer way.

Approach

Safety at work is critical for the well-being of employees and the ultimate productivity of the business. For this reason, B2Holding monitors major health and safety indicators, develops strategies to reduce the rates of accidents and absenteeism, provides training to employees and performs health and safety audits.

The Group regularly run an engagement survey for all entities monitoring engagement levels and giving the employees an opportunity to make their voices heard.

For B2Holding, providing a safe and sustainable work environment from an ESG perspective does not just relate to employee safety but also to how the Company promotes sustainability within the Group and at its premises. Therefore, even though a company like B2Holding does not have a great environmental impact, it is important to consider initiatives and targets for reducing its carbon footprint, energy, water, and paper consumption, and improving its waste management, among other goals.

Although environmental matters are assessed of limited relevance to B2Holding, it is important to acknowledge that stakeholders are demanding the evaluation of these aspects.

Main achievements and performance

*Sick leave ratio calculated as total number of days lost of employees due to an in-work accident with sick leave and professional illness over the time period/total number of annual working hours) x 1,000.
**Accident frequency rate calculated as total number of accidents at work with sick leave over the time period/total number of annual working hours x 200,000

Although only 27 % of the countries have work-life balance measures in place, all entities have different measures accessible to employees that help work-life balance to some extent, such as flexible working hours.

Although sick leave is usually high in the industry, during 2020 the Group experienced a slight decrease, albeit with a peak in March (8 %) due to Covid-19.

There were reported seven labour incidents for the entire year in 2020. This is a low figure, although the debt collection industry does not have many risk factors for labour incidents.

Environmental issues are assessed of limited relevance to B2Holding due to its activity; however, as part of the Group’s commitment to reducing environmental impact, 17 % of countries have energy reduction plans and 24 % have plans for reducing paper consumption. Despite its focus on reducing paper consumption, the Group must still respect official requirements to send paper letters.

In 2020, B2Holding started measuring CO2 emissions in Norway, Poland, Finland and Spain, representing over 60 % of all employees, and the goal is to extend these measures to all Group entities during 2021 in scopes 1 and 2 (see table below). Calculations below are based on conversion factors from DEFRA, AIB, the Norwegian Environment Agency and the Norwegian District Heating Association.

Approach

B2Holding sees culture as the set of values and ways of acting and thinking shared by the members of an organization, in short, its essence. The culture includes elements such as shared values, communication, symbols, experiences, or work philosophy and is fundamental to strengthening the commitment to the organization of key stakeholders such as customers or employees.

As far as employees are concerned, there are many other elements besides the culture to reinforce the feeling of belonging to the Company, such as alignment with its mission and their role within the organization, working conditions and social benefits, transparency, or the creation of a healthy working environment.

This aspect becomes even more important in a multinational organization that has grown through the acquisition of local entities.

Main achievements and performance

The first Group-wide employee engagement survey was conducted in March 2019 with a response rate of 88 % at Group level which is higher than the average response rate for similar types of surveys (85 %). Following the survey, each country received feedback for its entities and action plans to be initiated in cooperation with employee representatives, with the overall goal of improving employee satisfaction in the Group over time. B2Holding has performed another engagement survey in March 2021, in line with its intention to regularly run an engagement survey to monitor engagement levels and giving the employees an opportunity to make their voices heard.

Additionally, in 2020 the Group revised its vision, mission and values. The new statements were shared with all employees, and the Group also held an online launch event. The vision, mission and values were translated into local languages, and a programme of different activities is planned for all entities to participate in digital workshops and activities involving everyone in the Group.

Approach

B2Holding recognizes that an unpaid loan indicates not only an unfortunate situation for a debtor but also a dysfunctional relationship between a borrower and the lenders who ultimately own the money. This chain of defaults creates a gap in the financial chain that materializes in a direct negative impact on the economy. B2Holding sees its mission as “bridging the gap”, as a financial agent that helps its customers get out of debt and back in the financial system.

B2Holding is committed to raising awareness of its role in and impact on stabilizing economies.

Main achievements and target

At the end of 2020, B2Holding began measuring how many debtors return to the financial system as a result of resolving their debts under the Group’s management using the ways of payment B2Holding can offer.

Although B2Holding has an estimate of the number of customers that returned to the standard financial system after fully resolving their debt balances in 2020, the Company will be ready to report this information in its sustainability report for 2021.

Approach

For B2Holding, local impact is the added value that the Group can bring to the communities in the countries where B2Holding operates. In this regard, this ESG aspect englobes the direct and indirect economic benefits that the Group’s activities might bring to the community, such as donations or local purchases and other benefits associated with the externalities brought by the Company’s activities, including the direct and indirect employment generated or even the positive impact that B2Holding might have on its surroundings in social terms (creation of opportunities, improvement of citizens’ wellbeing, etc.).

In addition to the local impact generated by B2Holding itself, contributions made by employees that have a positive impact on the community (both individually and through volunteer activities or corporate fund donations) are encouraged in all Group entities.

Main achievements and performance

B2Holding is proud of the activities performed by associated people and entities in different countries. Initiatives carried out include charity activities aimed at local communities, environmental goals, donations, sponsorship of those in need, educational courses, etc.

In 2020, a difficult and challenging year, B2Holding managed to maintain social initiatives and to dedicate some resources to both the Covid-19 pandemic and natural disasters such as earthquakes in Croatia.