M.P. Ruwan Kumara, Chief Financial Officer of Sri Lanka’s biggest bank, the Bank of Ceylon (BOC) shares insights into the bank’s deep commitment to the UN Sustainable Development Goals, providing a snapshot of the many initiatives and their impact on the economy, planet and people’s lives. He begins by explaining why the SDGs are a priority and part of its business strategy:
We are committed to being more than just a financial institution; we are dedicated to being responsible corporate citizens with a strong focus on sustainability. Our vision extends beyond the realm of traditional banking. We align our goals with the global Sustainable Development Goals (SDGs) because we believe it’s crucial to contribute to our national priorities and uplift our country and community. Our business process and all our CSR activities now cover all 17 goals stipulated under the UN’s SDGs. This isn’t just a policy; it’s a conscious choice that reflects in our decision to evolve our business model into one that is sustainable at its core.
By doing so, we are not only pursuing financial success but also striving to make a meaningful, positive impact on both society and the environment, as the following exemplify:
Gender Equality: In 2022, 62% of our recruits were women, with women comprising 59% of our workforce. We provided Rs1.7 billion in microfinancing to female entrepreneurs and disbursed Rs2.6 billion in development lending to women-led businesses.
Clean Water and Sanitation: We invested Rs362.5 million in the state water supply and sanitation sector and funded two major water sanitation projects.
Decent Work and Economic Growth: The bank employs approximately 8000 employees, invests in creating a conducive work environment and ensures fair treatment and remuneration.
Industry Innovation and Infrastructure: Our focus was on increasing access to financial services for SMEs through development lending and concessionary loans.
Reduced Inequalities: We provided Rs52.6 billion in development lending and extended our services to economically deprived areas, reaching marginalized populations.
Sustainable Cities and Communities: Our housing loan portfolio reached Rs78.2 billion, with significant lending to the transport and logistics sector. We also supported sustainable transport initiatives and constructed environmentally friendly branches.
Sustainability often requires the alignment of employees, customers, and stakeholders. How does BoC ensure that its staff, customers, and stakeholders are on board with its sustainability initiatives?
Our bank is firmly committed to sustainability, championed by both the Board and Management. We’ve established a management-level committee specifically for sustainability oversight, led by an Assistant General Manager dedicated to these initiatives. As Sri Lanka’s first commercial bank to hire a sustainability consultant, we’re enhancing our environmental, social, and governance (ESG) processes. Sustainability is a strategic pillar, reflecting its critical role in our direction and operations.
We actively promote sustainability through circulars, training, and workshops, and encourage staff involvement with a voluntary pledge. Our commitment extends to offering products and services that support sustainable practices and businesses.
Additionally, we’re proud leaders in gender representation and equal pay, with a 59% female workforce. Our inclusive hiring and comprehensive retirement support demonstrate our dedication to diversity and employee well-being. These efforts underscore our comprehensive commitment to sustainability, emphasizing its significance in our value creation and business model, engaging everyone in our sustainable future vision.
Can you provide examples of the impact that BoC’s sustainability efforts have had on the bank and the communities it serves?
In advancing our sustainability goals, we’ve made considerable progress. We’ve disbursed Rs59.4 million to BoC Mithuru microfinance groups, supporting 130 new groups, and allocated Rs4.3 billion to women-led businesses to enhance financial inclusion. Our ‘BOC Gammana’ project has uplifted seven villages, focusing on their financial and digital literacy.
In 2022, we trained hundreds in quality education initiatives, allocating Rs30 million in Nana-Jaya scholarships and engaging students in sustainability seminars and Green Talks webinars. During the COVID-19 crisis, we supported home-based patient management and contributed $65.1 million for essential pharmaceutical imports.
Our commitment to clean energy led to Rs711.6 million in green technology facilities, 3,219.3 MWh of renewable energy, and significant investments in solar power, with 51 solar-powered branches. Our climate action saved 373 trees through recycling, while our sustainable finance efforts resulted in Rs5.3 billion disbursed, with Rs4.7 billion following ESMS compliance. We also screened 841 loans for environmental and social criteria and trained 153 officers in these screenings, demonstrating our comprehensive approach to sustainability and social responsibility.
How do BoC’s SDG goals align with its commercial objectives, especially in the current economic crisis?
Recognizing the importance of sustainability, we have integrated it as a fundamental pillar within our bank’s strategic plan. It is deeply embedded in both our business operations and value creation models, ensuring that sustainability is at the core of everything we do.
Amid an economic crisis, we’ve reaffirmed our commitment to both our commercial objectives and community development. During this crisis, we introduced a specialized loan product for solar panels, electric bikes, and bio-gas plants at competitive interest rates. This decision entailed sacrificing some profit and net interest margin (NIM) for the greater good.
To further embrace sustainability, we launched green products in our deposit schemes and integrated an Environmental and Social Management System into our credit approval process. We’ve also established an Environment and Social Risk unit under the Chief Risk Officer (CRO) to ensure alignment with sustainability principles.
Our core belief is that, especially during crises, our bank plays a pivotal role in contributing to the nation’s recovery and well-being. We are steadfast in aligning our objectives for the betterment of our country and communities, even in challenging economic times.