T | TRUSTED RELATIONS WITH LOCAL COMMUNITIES

Moscow Exchange Group is cognizant of its responsibility to catalyse positive change in society and create benefits for the public. By uniting financial market participants (novice and professional investors, issuing companies, financial analysts) and other stakeholders, exchanges help mobilise capital, seek out new opportunities for economic growth, and solve global problems. Moscow Exchange helps create social value by supporting charity organisations, children and youth, and wider society.

This section describes the Group’s major programmes, which are aimed at various stakeholders. They include educational and partner projects and charitable and voluntary corporate initiatives. Moscow Exchange Group advocates for financial literacy and strives to support socially vulnerable groups. Throughout its history, it has consistently worked to support its community and taken various actions for the benefit of the market and the public, and to protect the environment.

Major highlights in 2022

Performance indicators for 2020, 2021 and 2022 are disclosed in the Trusted Relations with Local Communities subsection of the Sustainability Data section. Information on major policies, procedures, and responsible departments is given in the Trusted Relations with Local Communities subsection of the Sustainability Approaches and Procedures section.

Moscow Exchange Group’s efforts to improve financial literacy

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The Group is expanding its involvement in projects to develop the financial market by attracting new participants and improving their financial literacy. Moscow Exchange’s educational programmes have different formats, and most are designed for novice investors.

Against the background of high volatility in the financial markets, the educational initiatives and training activities of the Exchange gain particular social significance.

Over 250 events were conducted in the reporting period to improve financial literacy, which were attended by some 500,000 people.

In 2022, the Exchange continued promoting the Investor’s Way basic course both at the Moscow Exchange School and through its partners. For example, in 2022 the Investor’s Way course became available on the Okko streaming service and at Tinkoff, the largest retail broker.

In response to high volatility observed in 2022 the following new training courses were launched: Eight Mistakes of the Investor, Financial Markets – Time of Change. The experts on these programmes were leading analysts from brokerage companies who provided investors with up-to-date information in a fast-changing environment.

Educational and outreach programmes of the Exchange also continued in the reporting year. All programmes are constantly being improved based on the analysis of the student behaviour and their feedback.

A mobile application for the Moscow Exchange School project was announced for private investors in summer 2022. The mobile application not only allows you to study educational content in the form of online courses and articles, but also to follow the quotations of exchange-traded instruments. Over 5,000 people have used the mobile application in less than six months.

In 2022, Moscow Exchange also supported the socially important project for financial literacy named the Finathlon for High School Students, the All-Russian Olympiad in Financial Literacy, Financial Market, and Financial Service Consumers Right Protection. For several years now, the Olympiad has been the largest financial literacy project for high school students in the country. In 2022, over 81,000 high school students from 85 regions participated in the Olympiad.

Charity and sponsorship

Main charity partners of Moscow Exchange Group in 2022:

• Pronikaya v Serdtse (Reaching into the Heart) charity foundation;
• Deti Nashi (Our Children) charity foundation;
• BELA. Butterfly Children charity foundation;
• Klub Dobryakov (Club of Kind Souls) charity foundation;
• Federal State Autonomous Institution “National Medical Research Centre “Treatment and Rehabilitation Centre” of the Ministry of Health of the Russian Federation;
• Miloserdie (Mercy) orthodox support service;
• Nikitsky Scientist and Entrepreneur Club;
• National Research Nuclear University MEPhI;
• Rossiya association.

In part of its charity activities, Moscow Exchange Group focused in 2022 on supporting Russian medicine. For this purpose the Group allocated RUB 100 million for the Federal State Autonomous Institution “National Medical Research Centre “Treatment and Rehabilitation Centre” of the Ministry of Health of the Russian Federation to purchase the modern medical equipment for surgeries and further physical rehabilitation of patients with musculoskeletal disorders.

In 2022, the Group continued cooperating with a number of charity foundations and organisations. The projects aimed at helping orphans and children with serious diseases were supported. As part of NSD interaction with Pronikaya v Serdtse, Deti Nashi, Butterfly Children, Elizavetinsky Orphanage, Klub Dobryakov charity foundations and Miloserdie orthodox support service, targeted assistance was provided to 14 foundation wards, and social training and individual psychological work was funded for 100 foundation wards, with a therapeutic exercise instructor working with the children for five months. In addition, assistance was provided in preparing the New Year presents for foundation wards.

As a result of the New Year charity event 812 children being the foundation wards received presents.

Moreover, in the framework of veteran support assistance was provided to 35 participants of the Great Patriotic War.

Some educational institutions received support as well. In particular, additional payments were made to the salaries of professors and employees of the Cybernetics Department of the National Research Nuclear University MEPhI.

The Donor’s Day events were held under volunteering projects in the Group. Thanks to three events arranged over a year together with the Blood Centre of the Russian Federal Medical and Biological Agency, the employees donated 40.5 litres of blood to young cancer patients of Dima Rogachev’s Centre (Dmitry Rogachev National Research Centre of Pediatric Hematology, Oncology and Immunology). During the year, two charity fairs were organised with the participation of the employees to collect funds and gifts for the foundation wards, and a campaign was organised for 1 June to collect children for camps together with the Volunteers for Orphans charity foundation. In cooperation with the Step Up educational centre, the necessary stationery was collected for the children in time for the start of the school year. In addition, the Groups’ employees participated in the More than Jogging project, under which funds were raised for treatment and rehabilitation of two wards of the Volunteers for Orphans foundation. As part of the Kind Caps project, 50 kg of caps were collected and delivered to a collection point. The proceeds were directed towards the treatment and rehabilitation of the foundation wards. The employees also participated in Kind Grandfather project and purchased desirable gifts for 19 beneficiaries of the Klub Dobryakov foundation.

In 2022, as part of sponsor activities in biological diversity Moscow Exchange Group for the first time implemented a large-scale environmental action to plant 10 hectares of new forest in biosphere reserves of the United Nations Educational, Scientific and Cultural Organization (UNESCO). Forest Save Company became a partner in the project. 40,000 trees were planted during the autumn campaign on two territories: the Ugra national park and the Smolenskoe Poozerie national park. Both parks are among the areas affecting the world’s climate.

About 12,000 two-year-old oak saplings were planted on an area of 3 hectares at the Ugra Berezichsky forest area. For five years, the young forest will be under the constant control of foresters, guaranteeing the trees priority access to light and moisture. This planting will have a significant impact on greenhouse gases and will ensure that the carbon footprint of economic activity is offset by at least 600 tonnes of CO₂-equivalent over the next 100 years. The restoration of broadleaved forests in Ugra is the Group’s contribution to the conservation of the region’s biodiversity and active support of the existing ecosystem inhabited by the Red Book animals.

Over 28,000 pines were planted in the Smolenskoe Poozerie national park. Seven hectares of the new forest were planted in the abandoned areas of the villages destroyed during the Great Patriotic War and later transferred to the national park’s management. The plantations here are also under the control of foresters and will become a full-grown forest in as little as 7 to 10 years. Poozerie forests are an ornithological area of global importance with a rich bird and animal life. Planting 7 hectares of pine forest can offset the carbon footprint of economic activity by at least 951 tonnes of CO₂-equivalent over the next 100 years after planting.

Interaction with stakeholders

Interaction with the regulatory authorities on sustainable development issues

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In 2022, Moscow Exchange Group participated in four working groups tackling sustainable development issues:

• the Bank of Russia Working Group on Corporate Governance and Information Disclosure;
• the Bank of Russia Working Group on Carbon Regulation;
• the Interdepartmental Working Group on Development of Investment Activities and Raising Extra-Budgetary Funds for Sustainable Development;
• the Expert Council on Sustainable Development and Green Financing of the Subcommittee for Sustainable Development and Green Financing.

Moscow Exchange Council and user committees

To ensure efficient interaction with trading participants and clients, a special advisory collegial body, the Exchange Council, which is tasked with elaborating strategic proposals for the development of the Russian financial market, and also represents the interests of market participants and the Exchange’s clients, to ensure that their needs are fully reflected when addressing issues related to the organisation and development of financial market infrastructure. The Exchange Council includes management of major market participants, heads of self-regulatory organisations, management companies, investment banks and the Bank of Russia.

The Exchange Council is elected every two years by the Exchange’s Executive Board. The current members of the Exchange Council were approved by the Executive Board in August 2022.

In 2022, ten meetings of the Exchange Council were held to consider the following issues:

• the current situation on the financial markets and the resumption of trading on the Moscow Exchange markets in March 2022;
• plans to organise payments on Eurobonds of Russian issuers;
• depositary receipts on Russian shares;
• the work of the Expert Council for listing;
• the status of the Investor Protection Club;
• settlement in foreign currencies;
• the performance of the Moscow Exchange for certain periods;
• approaches to information disclosure by issuers;
• the project to set up an information and trading terminal;
• the status of asset unblocking process.

In 2022, the Group calculated the Customer Satisfaction Index (CSI) for the second year in a row based on the results of the survey conducted among the market players and customers. About 300 customers of the Group participated in the survey, which composite index reached 8.7 points out of 10. The high index level proves the efficiency of the Group’s efforts to improve the quality of interaction with stakeholders.

A working group consisting of Moscow Exchange, the National Settlement Depository, and the National Clearing Centre, together with Magram Market Research, developed the methodology and interviewed respondents. The methodology involved sending online questionnaires to a list of the Group’s contacts, after which a satisfaction index was calculated based on the customer service scores received. By ascertaining the level of satisfaction and getting customers to rate the importance of individual service components, the Group can determine priority areas to focus on in further developing customer service. Moscow Exchange Group plans to calculate the CSI on an annual basis.

There are 24 user committees operating under Moscow Exchange and the National Settlement Depository. These committees discuss issues that affect all aspects of the exchange’s activities, including regulation of public circulation and issuance of securities, corporate governance, technology, and other matters.

International organisations and initiatives

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Over the years, the Group has cooperated actively with international financial organisations to study global best practices and share experience.

In 2022, Moscow Exchange continued developing actively the cooperation and interaction with foreign exchanges. Apart from the continued cooperation with the Chinese financial institutions in the stock, foreign exchange and precious metals markets, Exchange develops business relations with exchanges of Azerbaijan, Armenia, the Republic of Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

In 2022, the interaction with infrastructure organisations of the Kazakh financial market became one of the key development areas in the CIS countries.

For example, the cooperation was continued as part of the long-term strategic partnership with Kazakhstan Stock Exchange JSC to develop the financial market instruments for a partner stock exchange (currency, money and derivatives markets).

The second key area of interaction with infrastructure organisations of the financial market of the CIS countries was the interaction with Uzbek stock exchanges. For instance, joint seminars with brokers and events to familiarise traders with exchange technology and Russian market development experience were held throughout 2022 at the Uzbek Republican Currency Exchange.

• The Group participates in the UN initiative of Sustainable Stock Exchanges representing a single platform to learn, how exchanges in cooperation with investors, companies (issuers), regulators, politicians, and competent international authorities can improve their sustainability performance and contribute to the development of responsible investments, including funding of UN SDGs.
• Moscow Exchange Group also organised an event as part of the Ring the Bell for Gender Equality international initiative.

Partnership with institutions of higher education

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Moscow Exchange Group collaborates with a number of Russian universities on an ongoing basis. It organises field-specific contests and conferences to develop students’ financial market knowledge and skills.

In order to promote the brand in the student audience and improve the awareness of students, the Group participates annually in the career fairs and publishes vacancies in career groups of universities. In 2022, the Group together with the National Research University – Higher School of Economics (HSE University) held a student conference on financial markets.

• Every year, students undergo internships at the Group’s companies, with the best interns being offered jobs. In 2022, 29 out of 75 trainees, who completed the internship, were recruited. Moscow Exchange regularly offers paid internships for senior students in three formats: MOEX Start, MOEX Study & Work, MOEX Future Leaders. Students of the Higher School of Economics, the Financial University, and the MEPhI National Research Nuclear University are offered places in practical training and internship programmes under contract.
• The National Settlement Depository and the National Clearing Centre offer paid internships for senior students and graduates of technical and economic universities through programme NSD Perspective.

The Group holds educational lectures for students. In 2022, a series of lectures on financial markets was given to postgraduate students. Group employees also give lectures and hold seminars on financial risk management at the HSE University and St. Petersburg School of Economics and Management.

As part of interaction with the Financial University under the Government of the Russian Federation, the Exchange organised lectures and workshops for senior Bachelor degree and Master degree students. At the workshops the students performed independent transactions on stock markets in a test version of the trading platform. Experience with the multi-purpose terminal will be useful in the careers of future professionals in both financial institutions and non-financial companies. Exchange management was actively involved in the university events and spoke to the students. In addition, certain managers were engaged in the training process of the financial department as external part-time assistant professors.

Enhancing the professionalism of the investor relations (IR) community

Moscow Exchange operates the MOEX IR-Club and MOEX IR Academy , as platforms for dialogue within the IR community that encourages the exchange of opinions between professionals. It also serves as a discussion club and a centre for the development of professional principles and standards in the field of IR.

In 2022, five meetings were held, where the club members and invited experts discussed current events and shared their experiences. The communication format with the IR community was expanded through digests of interesting professional news.

Project, Three webinars were held within the project of the IR-Academy: “Social aspects in ESG strategies companies”, “Why the concept of DEI (diversity, engagement and inclusion) is important for companies? and how companies can integrate the DEI concept into their business processes”, “Practical conference based on the results of the jubilee XXV annual report contest of the Moscow Exchange.

As part of MOEX Home Talks, the series of online meetings, the Exchange representatives talk to senior executives from issuing companies and discuss doing business in a changing environment, as well as development plans and new opportunities for the Russian economy and private investors. Five meetings with managers of large issuers were held in 2022.