TRUSTED RELATIONS WITH LOCAL COMMUNITIES

Moscow Exchange Group is cognizant of its responsibility to catalyze 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 mobilize 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 programs, 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.

Moscow Exchange Group’s objectives and the UN Sustainable Development Goals

SDG 4.3 Improve the financial literacy of the public
SDG 5.5 Contribute to ensuring equal opportunities for women in business
SDG 12.6 Develop corporate volunteering and charity activities, integrate corresponding information into the reporting cycle
SDG 12.6, 12.8 Improve the quality and quantity of ESG information disclosed by issuers
SDG 12.6, 13.3 Raise companies’ awareness of sustainability trends, standards, and practices
SDG 17.16, 17.17 Expand partnerships for sustainable development with various institutions to spread knowledge and experience in order to achieve the Sustainable Development Goals

Major highlights in 2023

Performance indicators for 2021, 2022 and 2023 are disclosed in the subsection “Trusted relations with local communities” of the section “Sustainability Data.” Information on major policies, procedures, and responsible departments is given in the subsection “Trusted relations with local communities” of the section “Sustainability Approaches and Procedures.”

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 programs 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 270 events were conducted in the reporting period to improve financial literacy, which were attended by some 720,000 people.

In 2023, Exchange continued promoting “The Investor’s Way” basic course both at the Moscow Exchange School and through its partners.

In 2023, the Moscow Exchange School launched new educational courses: “Personal Investments”, “Investment Analysis of Stocks”, “Scalping”, “Principles of Forming a Portfolio of Stocks”, “Options Course” and others. The experts of these programs were both Exchange employees and practicing traders.

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.

The mobile application for the Moscow Exchange School project continued its development with new educational programs. Over 15,000 people have used the mobile application in 2023.

Apart from own educational programmes of the Exchange, partner projects with the Bank of Russia were proposed and the following actions were taken in 2023.

The sixth All-Russian Online Financial Literacy Test for Population and Entrepreneurs was organised. Traditionally, the event is open to everyone and there is a separate category for SMEs. In the reporting year participants were given the opportunity to participate individually and in groups. A family test was offered as well. https://www.moex.com/n65301
The Exchange participated in “The Financial Literacy Week in Russian Regions” project. About 1 thousand schools participated in the project, and more than 20 thousand schoolchildren simultaneously connected to the webinars. https://dni-fg.ru/ as well as
Also MOEX continued its work in the Expert Council for Financial Literacy under the Bank of Russia and in working groups of the Financial Literacy Development Association.
In 2023, Moscow Exchange also supported the socially important project for financial literacy named “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.

Charity and sponsorship

In total, in 2023 Moscow Exchange donated RUB 272 million to charity and sponsorship projects.

Sponsorhip and Charity Expenses, million RUB

Charity and Sponsorship Expenses Structure in 2023, %

In charitable and sponsorship activities, the Moscow Exchange Group focused in 2023 on providing support to Russian universities, by allocating to them over 110 million rubles. The main areas of support for universities are provided by financing educational and learning activities. In particular, in 2023, NSD financed two educational projects: the podcast “Economics by Hearing” (RSE) and the project “Innovative Academic Environment” (MSU) - in the amount of RUB 100 million.

In 2023, 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. In particular RUB 6 million. was transferred to the “Gift of Life” Foundation, as a result of which assistance with expensive medications was provided to 10 seriously ill children. In addition, RUB 5 million. was sent through the Vera charity foundation to support institutions providing palliative care. As part of its cooperation with charitable foundations, in 2023, NSD provided assistance in the amount of RUB 4 million to five charitable foundations (“Penetrating into the Heart”, “Butterfly Children”, “Elizabeth Orphanage”, “Kind Kindred Club” and “Old Age in Joy”) . Targeted assistance was provided to 116 beneficiaries of charitable foundations, 100 of whom are disabled and elderly. The payroll of a teacher in the senior correctional group of an orphanage, who worked with children for six months, was funded.

Moreover, in the framework of veteran the Group provided support assistance to 30 participants of the WWII.

“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 58.5 litres of blood to young cancer patients of Dima Rogachev’s Center (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 time for the start of the school year the necessary stationery was collected for the children. 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. NSD employees regularly collect bottle caps and allocated the proceeds received from collections points to the treatment and rehabilitation of the foundation wards. The employees also participated in Kind Grandfather project and purchased desirable gifts for 4 beneficiaries of the Klub Dobryakov foundation.

Interaction with stakeholders

Interaction with the regulatory authorities on sustainable development issues

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In 2023, Moscow Exchange Group participated in four official bodies tackling sustainable development issues:

The Central Bank Expert Council for corporate governance;
the Central 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 State Duma’s Subcommittee for Sustainable Development and Green Financing.

The 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 2023, two meetings of the Exchange Council were held to consider the following issues:

On the results of the Moscow Exchange.
On the status of work on unlocking assets.
On the current status of Trade Radar development.
On the priorities of the Moscow Exchange for the development of the financial market of the Russian Federation.
About the new strategy of the Moscow Exchange Group.
On the development of DATA business areas of the Moscow Exchange Group.
About plans for the development of digital financial services in the Moscow Exchange Group.

In 2023, the Group calculated the Customer Satisfaction Index (CSI) for the third year in a row based on the results of the survey conducted among the market players and customers. About 274 customers of the Group participated in the survey, which composite index reached 8.8 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 Center—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. In 2021, the user committees held over 100 meetings.

On July 28, 2023, by decision of the Exchange Board, the Sustainable Development Sector Council was created.

The main task of the Council is to coordinate the activities of the Moscow Exchange Group, government bodies, development institutions, verifiers of financial instruments for sustainable development and other interested organisations in the development of exchange instruments for attracting investments to finance projects in the field of ecology, environmental protection and socially significant projects.

Main functions of the Council:

preparation of proposals for the formation and development of government support mechanisms that help stimulate financing in the field of sustainable (green) development in the Russian Federation through exchange-based Sustainability Sector instruments;
ensuring effective interaction with authorities, state development institutions, methodological centers, verifiers of financial instruments for sustainable development and the investment community in the field of green finance and sustainable development;
promoting the implementation of the principles of sustainable development by Russian companies, improving the quality of disclosed information on sustainable development and creating conditions for responsible investment, discussing and developing new corporate governance practices.

In December 2023, a meeting of the Council was held, at which the topic of creating a system of incentives for the development of sustainable finance was considered.

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 2023, the Exchange continued to deepen and expand its relations with foreign trading platforms in Southeast Asia, focusing both on maintaining, and developing existing relationships with financial institutions in China and other countries in the region. In addition, cooperation with exchanges in the CIS countries and the Middle East was strengthened, thereby emphasizing the continuation of the course towards international cooperation and expansion of partnerships.

The Group participates in the UN initiative of Sustainable Stock Exchanges (SSE) 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.
On the eve of March 8, mechanisms for ensuring gender equality in Russian business were discussed at a round table together with the global initiative of world exchanges Ring the Bell for Gender Equality.

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 organizes 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 2023, the Group together with the National Research University – Higher School of Economics (HSE University) held a student conference on financial markets. To raise awareness and promote its brand among students, the Group participates annually in career fairs.

Every year, students undergo internships at the Group’s companies, with the best interns being offered jobs.
Moscow Exchange offers three paid internship programs for senior students: Moex Start, Moex Study & Work, and 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 programs under contract.
In November 2023, Moscow Exchange PJSC held a lecture for students of the National Research University Higher School of Economics on the topic “Investors and market infrastructure for sustainable development” as part of the master’s program “Managing Sustainable Development of a Company.”

The Group holds educational lectures for students. In 2023, 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 center for the development of professional principles and standards in the field of IR.

In 2023, two meetings were held, where the club members and invited experts discussed current events and shared their experiences.

Four webinars were held within the project of the IR-Academy: Corporate governance: priority areas in the ESG strategies of companies”, “Why the concept of DEI (diversity, inclusion and sustainable development”, “How to restructure the corporate governance system taking into account the climate agenda?”), “Reducing the carbon footprint through the conservation of Russian forests: forest related climate projects and the market of carbon units”, “Practical conference based on the results of the XXVI 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. Three meetings with managers of large issuers were held in 2023.

Plans for 2024

Under Moscow Exchange School, a project for individual investors, the Group plans to train 100,000 new investors through the accredited course “The Investor’s Way”, as well as other courses.