Harel Investors Social Responsibility

In view of the importance that Harel Insurance and Finance Group attributes to Corporate Social Responsibility (CSR), we have published our sixth CSR report for all interested parties, addressing our impact on community, the environment and economic activity. This report demonstrates how CSR has become an intrinsic part of our activity, increasing transparency, enhancing our dialog with and ongoing commitment to the integration of social and environmental considerations within our core business activity. Social responsibility is unquestionably an inseparable part of Harel Group’s business activity and we continue to promote CSR in all the systems at our disposal, devoting considerable resources to it. Since 2008, as part of the promotion of the Corporate Social Responsibility, Harel Group is a member in "Maala" organization, a non-profit ESG standards- setting organization in Israel, hosting a network of about 110 Israel's leading corporations. Since 2015 Harel constantly holds a "Platina Plus" rating, which is the highest rating assigned by Maala.

Community involvement

Throughout its 90 years of activity, Harel Group’s commitment to contributing towards and betterment of the community at large has become an integral part of our DNA, and it is an intrinsic part the Group’s vision and values. Harel Group aspires to provide its customers with peace of mind, allowing them to get on with their lives in the best possible way even in times of crisis and disaster and we take the view that contributing towards and commitment to the community is an inseparable part of this vision.

Our proactive approach to the creation of significant, deep and long-term social ventures that provide positive value for the community in which we operate mean that we also view the importance of encouraging our employees to become involved in social action, to practice ongoing dialog with our partners in society and provide assistance wherever necessary. We have defined a "Three-Factor Profit" model that helps us maximize our social impact enabling us to contribute to the community at large and to an organizational culture that encourages social activity within the organization.

Community: Maximizing our social impact, by employees' involvement, building personal and deep connection between our employees and the community while raising awareness to current social issues.
Employees: Creating out of routine experiences aimed to promote personal connection between the employees, increasing motivation and morale, creating organizational connectedness, providing employees with satisfaction and interpersonal skills
Organization: Implementing Harel's values, increasing the connection with the employees and their satisfaction by delivering to the employees' expectations, especially to generation Y and Z.

We advocate providing assistance to a large number of charitable organizations in a broad range of fields. Over time, we have contributed to hundreds of different charities and organizations all over the country in areas such as higher education, special education, culture and the arts, medical assistance for the needy, support for people with disabilities and special needs, and more.

Monetary donations to the community are made, in part, through the M.E.H. Foundation (Keren HaMeah - in memory of the late Margot and Ernst Hamburger) which has been active for more than 30 years.

In 2022, the Group made donations to the community in the amount of NIS 11.5 million, compared with NIS 10.7 million in 2021. Furthermore, in 2022, money-equivalent donations amounted to NIS 0.8 million and in 2021 to NIS 0.4 million.

Our volunteer program benefits from a special package of resources managed by the CSG coordinator and each employee may volunteer for three hours a month at the expense of work time. The Company’s most senior management defines the policy, sets goals and monitors actual performance.

In 2022, 47% of the Company’s employees took part in volunteer activity, compared with 27% in 2021.

Quality of Service

Our principle goal is to provide our customers with the highest standard and quality of service of, while constantly improving and streamlining this service to meet market changes and the customer’s requirements. The services are provided directly or through our agents.

In 2022 we revised our Service Level Agreement in an effort to clarify our commitment towards our customers:

Personal attention - we provide the attention we would like to receive
Professionalism - we operate professionally as well as with expertise
Fairness, respect and appreciation - we appreciate and are grateful for the trust our customers place in us and we respect their privacy
Clear and simple language - we believe in using plain and pertinent language
Availability - we are always available for you

Employees and the work environment

As a finance company, our employees are our most valued resource, the source and strength of the organization and the key to our success. Our belief in the importance of our human capital encourages us to invest in the personal and professional development of our employees, we offer them numerous and diverse opportunities for advancement, provide them with comprehensive training programs, and adopt a rich policy for their wellbeing, while maintaining a warm, family environment.

At the end of 2022, Harel Group had 4,794 employees, all with personal employment contracts. 95% of our employees hold full-time positions.

Women account for 71% of the workforce of Harel Insurance. In 2022, women accounted for 62% of the company’s management echelon.

Corporate governance and Code of Conduct

Harel Group believes that fair business culture based on ethical codes is a pre-condition for achieving value-oriented excellence and business dominance. Harel therefore focuses on fair, uncompromising business practices vis-a-vis all its interested parties, including customers, employees, agents, service providers and competitors. Business practices based on ethical values are the moral compass that guide us in our day-to-day work and we take an uncompromising stance in this regard when considering the advancement of any form of economic profit or business feasibility.

Harel’s value-oriented Code of Conduct is its ID serving as the common denominator for all the Group’s employees and executives and setting the ethical standard that the Group demands of itself. The Code of Conduct reflects the spirit of the nature of our activity, was approved by the Audit Committee and Board of Directors and is periodically revised in line with various issues arising from the different interested parties.

Code of Conduct - Harel’s key to success

Our Code of Conduct reflects the significant core values that serve as the Group’s motto in all areas of activity - Reliability, Customer Service, Human Capital, a Warm Home and Leadership.

We make a concerted effort to translate these value into applicable actions and decisions in our ongoing work, at all organizational levels and in all areas of the Group’s activity.

Environmental Responsibility

We give due consideration to the environmental value of new insurance and finance products, encourage green investment and include environmental perspectives in our annual risk management processes.

Additionally, our performance is measured and reported in a fully transparent and detailed Annual Corporate Social Responsibility report, and the relevant Ministry of the Environment mechanism for reporting and reducing greenhouse gases, and reflected also in Maala rating.

Action taken to implement these principles in 2021-2022:

We reduced electricity consumption by introducing measures such as the installation of energy management systems and replacing all the Company’s existing air-conditioning systems with advanced water chillers.
We reduced the use of paper by increasing the use of electronic mail.
We reduced the use of disposable cups by moving over to reusable utensils.
As part of Harel’s environmental responsibility approach and the importance we attribute to creating a responsible supply chain, we formulated a “green procurement” policy. To this end, our procurement centers now include requests for information from service providers about their environmental practices. This information is converted to points which help us choose our service providers. In 2022, we even increased the points given to these items so that environmental issues now account for a greater share of the considerations in our choice of procurement suppliers.

Development of environmental products

Harel Group is aware that its core business, insurance and financial activity has the capacity for added environmental value. We have therefore developed insurance products with value for the environment.

Motor insurance for electric cars

Motor insurance for the owners of electric cars that provides insurance cover for the special requirements of an electric vehicle, in addition to all the comprehensive insurance coverages. For example, a broad roadside assistance services package that includes electrical charging and wheel replacement, cover for a charging point and charging devices.

Adira Green

Special insurance for household installations that generate electricity from solar energy.

Harel Switch

A motor insurance policy in which the monthly payment is based on monthly vehicle usage (number of kilometers driven) based on the principle - “if you don’t drive, you don’t pay”.

UpGrade 10,000

A flexible motor insurance policy that entitles drivers who drive less than 10,000 kilometers a year to a 20% discount on comprehensive motor insurance. The policy is based on the principle - “Drive less, pay less”.

Social Responsibility