When making business decisions and developing our products and services, we consider our stakeholders’ expectations in appreciation of what is material to them. As part of our commitment to sustainable and responsible growth, we also seek to identify, to assess and to manage ESG risks, challenges, impact and opportunities.
We stepped up our non-financial reporting to include sustainability reporting in our Annual Report 2016 to give our stakeholders insight into the Bank’s approach to sustainability and we continued to build on our efforts in 2017.
During the year, we refined our sustainability strategy after extensive discussions and workshops with teams from across the Bank which were facilitated by an external consultant. Our deliberations considered macro sustainability trends, including responsible banking, the Singapore Exchange’s (SGX) reporting requirements, the United Nations’ (UN) Sustainable Development Goals (SDGs), the Paris Climate Agreement and the recommendations by the Task Force on Climate-related Financial Disclosures.
Our Group Chief Financial Officer Mr Lee Wai Fai (centre) receiving from Mr Chan Chun Sing, Minister in the Prime Minister’s Office, the Best Inaugural Sustainability Report (Mainboard) Award at The Singapore Sustainability Reporting Awards 2017 organised by the Singapore Institute of Directors. We received the award in recognition of the quality of our sustainability disclosure in our Annual Report 2016.
Our sustainability strategy mirrors our business approach of balancing growth with stability. It takes into account the influence and impact our decisions and actions might have on the industry, society and the environment. It was also formulated to ensure we remain economically relevant through managing ESG risks and opportunities practically and in line with market realities. To help our programmes and initiatives take root and gain ground, we have ensured alignment with the ESG regulatory policies and guidelines in each of our key markets. Just as our business strategy hinges on doing what is right for our customers, our sustainability strategy informs our engagement with our stakeholders and how we can help them in their own practices for positive outcomes in the long run.
The pillars of our sustainability strategy arise from our fundamental strengths and are rooted in our values. They reflect the Bank’s expertise, the responsibilities we hold and the role we can play for the long-term benefit of our key stakeholders. Each of the pillars determines a set of objectives which we strive to achieve to ensure that we implement our strategy with clear plans and purpose.
In sustaining growth responsibly, we incorporate sustainability risk elements in our approach to risk management. This includes integrating ESG considerations into our credit evaluation and approval processes. Beyond financing, we are increasing impact investing in our portfolio allocation. For our customers, we help develop and provide sustainable solutions that will assist them in making a difference. We also align our sustainable development efforts with the UN’s SDGs.
With customers as our focal point, we ensure that Fair Dealing principles are entrenched in all aspects of our relationship with them. Keeping their best interests in mind, we harness technology and use data to make banking simpler, smarter, safer and more intuitive for them. By doing so, we aim to make banking more accessible and inclusive in the communities in which we operate. Standing by our customers also means that we must protect their data and privacy, and maintain the security and robustness of our systems.
Our colleagues enable us to ensure the best outcome for our customers, our business and our community. Hence we are focused on developing professionals of principle – high-performing teams and individuals who are guided by our values. We embrace diverse abilities and strengths as these enhance our capabilities and enrich our competitiveness. We equip our colleagues to take on the challenges of tomorrow even as we care for their welfare and work-life harmony today. We also foster a sense of belonging by encouraging employee volunteerism and increasing their engagement and satisfaction.
We believe that as a responsible financial services provider, we have a role to play in strengthening the fabric of society by supporting the spirit of enterprise across all stages of business growth and protecting the financial system for its full benefits to be felt. We remain steadfast in our commitment to promote the development of art, children and education, and to help protect the environment – all aimed at contributing to a strong and sustainable future for the wider community.
Sustain Growth Responsibly
Incorporate sustainability risk elements in our approach to risk management
Integrate social and environmental considerations into our credit evaluation and approval processes
Increase impact investing in our portfolio allocation
Develop and provide sustainable solutions that enable our customers to make a difference
Align our focus with Sustainable Development Goals
Keep Customers at the Centre
Harness technology to make banking simpler, smarter and safer
Use data effectively to design intuitive customer experiences
Make banking more accessible and inclusive
Secure our systems and protect customer data and privacy
Develop Professionals of Principle
Build high-performing teams and develop individuals who are guided by our values
Embrace diverse abilities and strengths
Develop skillsets and mindsets for the future
Ensure workplace health and safety
Promote work-life harmony
Encourage employee volunteerism
Increase employee engagement and satisfaction
Strengthen Community Bonds
Protect the financial system against those who try to abuse it
Support businesses across all stages of growth
Support social development in the areas of art, children and education
Encourage sustainable procurement and supply chain
Manage the impact of our environmental footprint
Partner colleagues, customers and vendors to promote SDGs
As we focus on creating sustainable value for our stakeholders, we assess the ESG matters relevant to the banking industry, the implications for the Bank and the insights provided by our internal and external stakeholders.
Our priorities include building an ecosystem where enterprise and innovation can thrive, enabling simpler and safer banking for all through the use of technology, supporting corporate clients in managing their businesses locally and as they expand across borders, and helping retail customers plan, save, spend and invest wisely.
We believe that security is paramount given the rapid development of technologies and disruptive business models, and the changing regulatory landscape. There is also growing sophistication of financial crime and cyber threats. In safeguarding the interests of our stakeholders, we maintain the robustness of our systems and processes and uphold our role in ensuring a safe, secure and trusted banking system.
Our investments are also directed to nurturing our colleagues, embracing diversity and inclusiveness, promoting trade and industry, focusing on responsible financing, encouraging entrepreneurship and making our financial services accessible to all sections of society. We support the development of the communities in which we operate and play our part in managing our environmental impact.
Keeping in mind the significance of the economic, environmental and social impact of our operations and the influence such impact may have on our stakeholders, in 2017 we considered their feedback and reviewed the 14 material ESG factors first reported in our Annual Report 2016. The following factors were deemed the most significant:
Risk-focused organisational culture;
Responsible lending;
Regulatory compliance;
Economic value of our contributions;
Customer experience; and
Cybersecurity, fraud prevention and anti-money laundering.
In line with our own expectations of strong corporate governance and high ethical standards, we included ‘Anti-corruption’ as a material ESG factor in 2017.
The 15 factors are aligned with our sustainability pillars. A summary of our material ESG factors and their corresponding GRI Standards topics and boundaries are presented in the following table.
Our Involvement with Impact
Sustain Growth Responsibly
Risk-focused Organisational Culture
Maintaining high standards of corporate governance and a robust risk management framework to protect the interests of our stakeholders
Remaining nimble to seize business opportunities amid a fast-changing environment
To achieve stable and sustainable growth through informed risk-based decisions
Responsible Lending
To be a responsible financial services provider
Regulatory Compliance
Maintaining sound risk management systems
Complying with applicable laws, rules, regulations and standards
To maintain the highest standards of professional and ethical behaviour
Economic Value of Our Contributions
Delivering consistent returns for our investors
Contributing to local economies through taxes, job creation, facilitating trade and industries and building the financial resilience of our stakeholders
To create direct and indirect economic value for our stakeholders
Keep Customers at the Centre
Customer Experience
Treating customers fairly based on the principles of integrity, trust and respect
Creating responsible solutions across our businesses to meet our customers’ needs
To keep the customers’ interests at the heart of all that we do
Marketing and labelling
Customer privacy
Local communities
Cybersecurity, Fraud Prevention and Anti-money Laundering
Protecting our customers from cyber threats through robust risk management systems and processes
Assisting regulators in preventing cyber crime, money laundering, funding of terrorism and dealing with sanctioned persons
To uphold our role in maintaining a secure and trusted banking environment
Digital Transformation
To ensure that technology enhances our people and service capabilities as we deepen our culture of innovation and enterprise
Develop Professionals of Principle
Attracting, Developing and Retaining Talent
To develop valuable and meaningful careers for our colleagues
Employment
Training and education
Diversity and Inclusion
To champion a more inclusive society
Workplace Safety, Health and Well-being
To ensure the physical, mental and social welfare of our colleagues
Strengthen Community Bonds
Social Impact
Supporting social development in the areas of art, children and education
Encouraging innovation and enterprise, and nurturing start-ups and small- and medium-sized enterprises
To strengthen our social fabric through community-building and helping individuals and organisations realise their potential
Access to Financial Services
To ensure that banking services and products are available through our comprehensive and diverse network of touchpoints
Anti-corruption
To help build a more transparent and accountable global economy
Environmental Footprint
To play our part in reducing climate change
Energy
Emissions
Effluent and waste
Water
Sustainable Procurement
To purchase from local suppliers where feasible
