Stakeholder Outcomes
Banking For A Sustainable Future
At the heart of Bank of Ceylon's ethos lies a profound commitment to sustainability and responsible banking. Much like a honeycomb, where each hexagonal cell contributes to the stability of the whole, our sustainability blueprint is structured to create a balanced and enduring impact across multiple dimensions. This approach resonates with the interconnected pillars of economic prosperity, environmental stewardship and social equity. As a cornerstone of Sri Lanka's financial landscape for more than 85 years, the Bank continues to innovate, leveraging an extensive network and deep-rooted expertise to drive positive change. Guided by a sustainability-driven business model, the Bank's initiatives not only bolster economic growth but also safeguard the environment and empower communities.
CONTEXT FOR 2024
- Livelihood gaps have widened pushing vulnerable communities into financial insecurity. This has exposed certain segments of the community to instability and uncertain income levels.
- Climate risks heighten investment and lending uncertainties, necessitating a shift towards sustainable finance strategies that build resilience, ensuring long-term economic and environmental stability.
- Changes in the regulatory landscape require reporting on sustainability-related financial information and climate-related risks and opportunities. Thus, organisations need to ensure regulatory compliance, informed decision-making and alignment with global sustainability standards.
Strategic Pillar
STABILITY, GOVERNANCE AND SUSTAINABLE GROWTH
As a socially responsible bank, BOC is committed to promoting sustainable lending, empowering vulnerable communities and ensuring equitable financial access for a resilient, inclusive and sustainable future.
Priority Areas
- ● Improving Sustainability Governance
- ● Promoting Socio-Economic Stability
- ● Carbon Neutrality and Impact Management
IMPROVING SUSTAINABILITY GOVERNANCE
The Bank places significant emphasis on sustainability governance with greater oversight by integrating comprehensive ESG principles across every level of the operations. The governance approach is designed to ensure that every decision is made with a clear focus on sustainability, risk mitigation and stakeholder accountability. This commitment has resulted in proactive climate risk assessments, compliance with international reporting standards, and enhanced transparency across the Bank. From green financing and eco-friendly banking initiatives to financial inclusion and community empowerment, BOC is committed to creating long-term value while upholding accountability and ethical responsibility. By aligning innovation with sustainability, we continue to shape a resilient future. Our approach is holistic, combining strategic governance, socio-economic empowerment and a relentless focus on environmental stewardship.
The outcomes of these efforts are measurable in the comprehensive training programs, rigorous ESG risk management processes, and the transparent disclosure system that aligns with Global Reporting Initiative (GRI) standards, the United Nations Sustainable Development Goals (SDGs) and Sustainability Accounting Standards Board (SASB) guidelines.
Additionally, the Bank has appointed a ISO certified Sustainability Manager who plays a key role in driving sustainability within the operations.
Responsible Partnerships and ESG Risk Management
The Bank's lending policies are guided by a robust Environmental and Social Management System (ESMS), ensuring that every credit decision aligns with sustainability and responsible growth. The Bank recognises that economic progress should align with environmental stewardship, and is committed to financing projects that adhere to the highest environmental standards.
The Bank's ESMS Policy is developed based on the CBSL guidelines and further adheres to the E&S criteria of ADB and ADB fulfilling the requirements of these international credit lines.
As a part of the due diligence process, loans are selected through a screening based on Environmental and Social (E&S) risk-based categorisation. Accordingly, selected loans must obtain the necessary Environmental Protection License (EPL) and clearances from relevant authorities, including the Central Environmental Authority, Ministry of Agriculture, Excise Department of Sri Lanka and Local Authorities, ensuring that contribution of lending practices to environmental degradation, bio-diversity loss and ecological harm is minimised.
Capacity Building on Sustainability
The ESMS Unit strengthens the sustainability framework of the Bank by embedding ESG awareness and knowledge across all layers of the Bank.
Through comprehensive capacity-building initiatives, the Bank ensured that all team members encompassing credit and relationship officers to senior leadership, are equipped with the insights and tools needed to drive meaningful ESG integration. To foster a culture of responsible banking, a structured series of awareness building sessions employing both internal and external expertise were held.
These sessions were designed to provide a practical understanding of issues aligning operations with global sustainability standards and regulatory expectations. By engaging with industry experts, policy makers and sustainability practitioners, we bridge the knowledge gap to empower our teams to make informed decisions that contribute to long-term value creation.
As the Bank strengthens its ESG foundation, it remains committed to embedding sustainable practices into our business strategy, risk management and customer engagement.
PROMOTING SOCIO-ECONOMIC STABILITY
Socio-economic stability is the foundation for a resilient and inclusive society. The Bank has been a steadfast partner in national growth and stability over the last eight decades especially during times of challenge.
In 2024, greater emphasis was placed on leveraging the Bank's financial expertise to drive community development, support local infrastructure, and foster economic empowerment. Through strategic investments and targeted lending programmes, tangible outcomes have been delivered to improve the quality of life for communities across Sri Lanka, while reinforcing national economic stability.
The Bank's development lending initiatives have played a crucial role in supporting macro-economic stability. As a state owned entity, BOC has supported the Government's monetary policy execution to help in economic revival. As the industry leader in remittances, the Bank prioritised enabling vital foreign currency inflows. The Bank contributes to the Government through tax payments.
As the largest state bank, BOC has played a pivotal role in financing critical and large-scale infrastructure projects undertaken by the public and private sectors. The Bank's commitment to finance large scale projects has, over the years, contributed to the socio-economic progress of the nation.
Community Development and Capacity Building
Financial inclusivity is a commitment deeply embedded in our DNA. The Bank has been steadfast in its mission to provide accessible financial solutions that uplift individuals, small businesses and underserved communities. Our concessionary products and tailored financial offerings have paved the way for countless Sri Lankans to achieve economic stability, empowering them to build a better future.
The Bank's impact is further exemplified by the unwavering dedication of employees who transform our vision into reality. From guiding first-time account holders in rural villages to supporting micro-entrepreneurs with personalised financial advice, our staff play a pivotal role in bridging the gap between aspirations and achievement.
Voluntarism is another aspect of the inclusive approach of the Bank. Our employees stepped beyond their formal roles to engage in financial literacy programs, mentoring aspiring entrepreneurs and driving community outreach initiatives.
The Bank, reaffirming its commitment to corporate social responsibility, contributed a sum of LKR 207.3 million towards a multitude of initiatives that impact society and the community at large.
During the year, the Bank donated an adapted ambulance to the '1990 Suwaseriya Foundation' pledging its support for national well-being through impactful initiatives.
Through the "BOC Gammana" initiative, rural communities have been revitalised by renovating water tanks, modernising school facilities and upgrading public spaces. These projects have improved access to essential services, boosted digital literacy through computer labs and smart classrooms and enhanced transportation and public safety. Extending this initiative, two new "BOC Gammana" were established in Katandola in Southern province and Alawala in Western province north during the year. The tangible outcomes of these efforts are evident in improved community connectivity, better access to education and increased opportunities for local business development.
The Bank remains steadfast in its commitment to shaping a brighter future for the nation's children and youth. Recognising that education and financial empowerment are the cornerstones of progress, the Bank pioneered impactful initiatives to support young minds and aspiring individuals.
Education is the foundation upon which a nation thrives. BOC's Hapana Grade 5 Scholarship Programme has been a beacon of hope for thousands of Grade 5 students, providing much-needed financial assistance to excel in their studies. Through the Nenajaya Scholarship Programme for Advanced Level Students, the Bank extended its support to high-achieving students, ensuring that financial constraints do not hinder their pursuit of knowledge.
Beyond education, BOC understands that the youth need opportunities to transform their ambitions into reality. Through 'Dream Builders By Y FM' programme and 'BOC Youth' Loans, the Bank enables young entrepreneurs and professionals to take their first steps toward entrepreneurship. By facilitating financial independence and encouraging innovation, BOC helps the country's youth to turn ideas into enterprises, fostering a culture of self-reliance and growth.
As a socially conscious bank, BOC's commitment goes beyond banking services-it is about making a lasting impact on lives. By investing in education and financial empowerment, BOC ensures that the country's youth have the resources, confidence, and support they need to build a progressive future.
The BOC Sansada school savings units are designed to cultivate the habit of savings from a young age. By promoting savings within schools, BOC ensures that future generations grow up with a strong sense of financial security and independence.
Development Lending
Development lending is central to our socio-economic stability efforts. By channelling financial resources into strategic community projects, we have laid the groundwork for sustainable development. The structured allocation of funds has ensured that every project is aligned with local needs and national development goals, while generating measurable returns in terms of community upliftment and economic growth.
BOC also acts as a Participatory Financial Institution (PFI) for several credit lines that support vulnerable communities using its expansive branch network to reach out these segments.
Microfinancing Initiatives
Our microfinancing initiatives have expanded considerably, with increased loan disbursements and improved repayment performance. This expansion underscores our commitment to creating an inclusive financial ecosystem that drives long-term socio-economic stability.
Mithuru Groups:
The Bank's 'Mithuru Groups' serve as an engine for local financial empowerment. These community-based groups have been established across the country, enabling collective savings, access to MSME loans and improved financial discipline. Their impact is significant, fostering economic independence and community cohesion. The effectiveness of these groups is measured by their participation rates, successful credit access and overall contribution to local business development.
Supporting Suppliers
Supporting local suppliers is a critical component of the Bank's socio-economic strategy.
Total payments made to local suppliers were LKR 9.1 billion (88% of total supplier payments) during the year.
CARBON NEUTRALITY AND IMPACT MANAGEMENT
The Bank remains dedicated to reducing its environmental impact and striving for carbon neutrality. In 2024, the sustainability strategy has been driven by concrete actions and measurable progress, emphasising energy efficiency, the adoption of renewable energy, and responsible resource management.
The Bank's two-pronged approach consists of internal process optimisation and community-focused conservation programs. Rigorous energy audits, sustainable procurement practices and innovative green financing solutions address every aspect of our environmental impact. These initiatives underscore BOC's determination to reduce its carbon footprint, promote renewable energy and ensure that every operational process is aligned with its long-term sustainability goals.
Minimising The Bank's Footprint
To minimise BOC's environmental footprint, the Bank has implemented a range of initiatives, including digital transformation, energy audits and green building practices. By streamlining operations and optimising efficiency, energy consumption has been managed.
Sustainable Infrastructure and Energy Efficiency
The Bank ensures that all new construction projects comply with the Green Building Council (GBC) Green Building standards. For several consecutive years, the Bank has been recognised with the "Green Business Leadership" award by GBC for its commitment to green building compliance. GBC has awarded 10 BOC branches by designating them as environmentally friendly buildings. Additionally, the engineers employed by the Bank are certified by the GBC.
| 2024 | 2023* | % change | |
|---|---|---|---|
| Electricity (MWh) | 25,820.0 | 22,730.0 | 14 |
| Fuel (m3) | 233.0 | 161.5 | 44 |
| Solar energy (MWh) | 4,581.5 | 3,245.3 | 41 |
| GHG emissions (tCO₂ eqv) | 19,620.6 | 19,028.9 | (3) |
| 2024 | 2023* | % change | |
|---|---|---|---|
| Electricity generated from renewable sources | 18% | 14% | 4 |
| Emission intensity (per million of revenue) | 0.04 | 0.04 | - |
*Revised as per the Audited Figures
Emissions
In tandem with renewable energy initiatives, the Bank adopted stringent energy benchmarking protocols as mandated by the Sri Lanka Sustainable Energy Authority. The Bank is guided by the ISO 14064-1 standard for measuring and reporting Greenhouse Gas (GHG) emissions, with 2021 set as the base year for assessments. The Bank assesses its GHG emissions using IPCC guidelines, incorporating Global Warming Potential (GWP) values from the IPCC 6th Assessment Report to ensure accuracy and transparency in managing its carbon footprint.
The Bank tracks and manages air emissions, recording 990.9 metric tons of CO₂, 7.2 metric tons of CH₄, 10.5 metric tons of N₂O, and 112.1 metric tons of HFCs in 2024. We are reducing our impact through energy efficiency, cleaner technologies, and regulatory compliance, supporting our net-zero goal by 2028.
The Bank has transitioned to R-410A refrigerants, eliminating ozone-depleting substances (ODS) like R-22 from its cooling systems.
Material Consumption
Our sustainable procurement practices ensure that all materials—ranging from IT equipment and air conditioners to UPS systems—adhere to high environmental standards. By focusing on energy-efficient products and encouraging the use of recycled materials, material consumption has been reduced while supporting a circular economy model. In line with this commitment, all paper waste generated at the Head Office has been responsibly recycled, further minimising our environmental footprint. This initiative has led to a substantial decrease in the overall environmental impact associated with our procurement activities.
In 2024, BOC took a significant step towards reducing plastic waste by introducing biodegradable tills across its branches. A total of 50,000 units were distributed, replacing conventional plastic tills. These paper tills are made from recycled paper and are designed for extended usability, as they can be repurposed into pen holders after their primary use. This initiative aligns with the Bank's commitment to environmental sustainability and resource efficiency.
Through systematic monitoring and enhanced recycling initiatives, we have significantly reduced waste across our operations.
Sustainable Financing
As a part of our commitment to sustainability, we have aligned every disbursement with rigorous environmental criteria, which reflects dedication to fund projects that foster a greener, more sustainable future.
Our commitment to sustainability extends into our financing strategies. By offering specialised green lending products and eco-friendly deposit schemes, we incentivise both our customers and partners to adopt environmentally responsible practices. This sustainable financing framework has enabled us to direct our attention towards green initiatives during 2024, supporting projects that drive environmental innovation and conservation.
The Bank's 'Less Plastic' initiative is designed to eliminate single-use plastics from daily operations. By promoting the use of sustainable alternatives such as glass and other eco-friendly materials, concerted efforts have been made in reducing plastic waste significantly, supported by rigorous monitoring and reporting measures which monitor plastic usage across all events and internal processes.
Carbon Reduction in Our Operational Processes
Beyond our energy consumption and procurement measures, carbon reduction strategies have been implemented into the overall operational processes. These include digitalisation efforts that minimise paper use and process automation that reduces unnecessary resource consumption. These initiatives collectively contribute towards a substantial reduction in the Bank's operational carbon footprint, underscoring the strong commitment to preserving our natural resources.
Environmental Conservation
The Bank's environmental conservation efforts extend across its community engagements and biodiversity projects. Collaborative programmes, such as beach clean-ups and reforestation initiatives conducted in partnership with the Wildlife Conservation Department, have not only enhanced local ecosystems but also have created public awareness of the importance of environmental stewardship. These initiatives contribute to a broader culture of sustainability and conservation across the communities we serve.
WAY FORWARD
The Bank is focusing on strengthening its sustainability framework by integrating comprehensive ESG policies, driving innovative green finance solutions and deepening community development initiatives. With a focus on digital transformation and robust risk management, the Bank's strategic direction is clearly defined to foster a resilient, inclusive, and low-carbon future.