Our Strategy
Integrating Sustainability
As a financial institution committed supporting long-term economic growth and stability, the Bank recognises that sustainability is essential to the well-being of all stakeholders. In the face of increasingly complex Environmental, Social, and Governance (ESG) challenges, the Bank strives to integrate sustainability into its business practices and decision-making processes.
We continued our efforts to ensure that our financial products, services, and investments support responsible practices, contributing to both positive social impact and environmental stewardship. Our commitment to sustainability is reflected in our strategies and actions.
BOC has sought to embed ESG considerations as an organisation-wide discipline, underpinned by a holistic Sustainability Policy that sets out the Bank's sustainability objectives, governance structures and reporting mechanisms.
As a state bank with the widest reach across the island, our ambition is to be the market leader in sustainable financing whilst driving financial inclusion. While we pursue the above aspiration, we undertake conscious steps to transition to a carbon neutral entity by integrating sustainability into every aspect of our operations. During the year, BOC remained steadfast in its commitment to ensuring that the impact of its activities are align with the United Nation's Sustainable Development Goals (UN SDGs) while taking holistic action towards addressing global challenges.
ESG FRAMEWORK
INTERGRATING SUSTAINABILITY
CAPACITY BUILDING
In accordance with the Bank's ESMS policy, the dedicated ESMS Unit continued to engage in capacity building of its cadre. Several initiatives were carried out during the year to educate and raise awareness among staff, leveraging internal and external resources and experts in the field to train and build awareness and capacity of employees from the highest tiers of corporate management to the Bank's credit officers and relationship officers.
STRATEGIC PARTNERSHIPS AND MEMBERSHIPS
GRI 2-28BOC has partnered with various environmental organisations, and businesses, combining diverse perspectives, expertise, and resources to confront complex challenges and ensure that ESG initiatives meet stakeholder expectations.
- 🔸 Marine Environment Protection Authority (MEPA)
- 🔸 Biodiversity Sri Lanka
- 🔸 Department of Wildlife Conservation
- 🔸 Sri Lanka Banks' Association - Sustainable Banking Initiative
- 🔸 Green Building Council of Sri Lanka
SUSTAINABILITY REPORTING
GRI 2-5The Bank believes that, transparency and accountability are essential for driving meaningful change. Sustainability reporting provides a comprehensive overview of the steps taken to integrate ESG factors into the Bank's operations. This report serves as a key tool in communicating sustainability performance, highlighting the progress made, and identifying areas for improvement.
This report is prepared with reference to the Global Reporting Initiative (GRI) Standards to provide stakeholders with comparable information relating to the sustainability performance of the Bank.
In addition to this, the Bank engages with Messrs Ernst & Young (E&Y) to provide limited assurance over selected sustainability information to provide confidence in our data. The Assurance Report is produced on pages 399 to 400 of this report.
The United Nations Sustainable Development Goals (UN SDGs) seek to address the most significant challenges the world is facing by 2030. We have integrated the 17 global goals into our business practices, focusing on areas like poverty reduction, environmental sustainability, and economic growth to create long-term value while contributing to global efforts for a better and more sustainable world.
During the year, steps were taken towards adopting IFRS S1 and S2 sustainability reporting standards. By aligning the disclosures and reporting with industry best practices, the Bank will disclose S1 and S2 requirements.
THE PATH AHEAD
As we move forward, the Bank is committed to deepening its efforts and advancing its role as a responsible corporate citizen. The sustainability strategy will continue to evolve, guided by the changing needs of stakeholders, the environment, and economic trends.
The Bank's portfolio of sustainable financial products and services, including green bonds, sustainable investments, and financing for renewable energy projects will continued and is expected to expand. By directing capital towards initiatives that support a low-carbon economy, the Bank aims to drive positive environmental outcomes.
Further, the Bank will continue to expand access to financial services for underserved population, enhance financial literacy programmes, and support local development initiatives that promote social well-being and equitable growth.
While the ESG policy is being developed, the Bank is mindful that there will be a host of external challenges which need to be considered. In order to navigate through the complexities of the marketplace, the Bank will ensure that the internal structure and capabilities across the organisation are adequately resourced and well-primed. This will help to address in a timely and effective manner, all risk and opportunities that may arise.
As a part of our ongoing commitment to sustainability, we plan to introduce an ESG-based incentive structure, integrating ESG Key Performance Indicators (KPIs) into the Best Branch Competition and the 5S Award Scheme. This initiative aims to motivate and encourage employees to embed sustainability across the Bank's operations in the coming years.
The commitment to sustainability will remain central to the business strategy, creating long-term value for customers, the shareholder, employees, communities and the planet. By integrating sustainability into every aspect of the business, the Bank aims to contribute to a thriving, resilient, and equitable economy.