Our materiality assessment
The sustainability context facing our business is changing faster than ever before. At OCBC, we take a long-term approach to assessing our materiality matters, considering ESG topics that can impact all stakeholders as well as our operations now and in the longer term.
As part of our ongoing monitoring of ESG factors, we conducted an annual review in 2021. This was done to identify new ESG factors that have emerged from recent global events and validate the ongoing relevance of existing material ESG factors. We also sought to ensure that our selected United Nations Sustainable Development Goals (SDGs) continued to be relevant.
To ensure an objective review of our approach, an external consultant conducted our materiality assessment and performed a gap analysis of OCBC’s material topics against global ESG best practices in the financial industry. Current sustainability trends and issues were also taken into consideration.
Identify
OCBC management and Sustainability Working Group conducted regular discussions to keep abreast of global and local ESG topics that can impact stakeholders and operations at OCBC. We identified several ESG factors and trends that are relevant to the Group.
Prioritise
OCBC discussed with an external consultant to ensure an objective review of our approach. A gap analysis of OCBC’s material ESG topics against global best practices in the financial industry was performed. OCBC’s selected SDGs were also reviewed to ensure they are still relevant to the Group’s operations and initiatives.
Review
The results from the review were discussed with OCBC’s senior management and relevant business units. OCBC also consulted external stakeholders to obtain their expectations of the Group’s ESG efforts. Considerations from both internal and external stakeholders were considered in the final material assessment report.
Validate
The findings of the review were discussed and validated by the Sustainability Council before being presented to our Board for final approval. As we progress on our sustainability journey and our business context changes, we will continue to evolve and update the relevance of our materiality through a regular review of our material ESG factors.
Our current material topics and the SDGs remain relevant to our operations, aligned to industry best practices. However, we ramped up efforts and disclosures in responsible financing, sustainable financing, sustainability-themed products and investing, as well as our environmental footprint, to reflect our commitment to embracing the global climate agenda. This is further supported by the Group’s goal to achieve carbon neutrality for OCBC’s banking operational emissions in 2022. We believe our focus on climate action and the sustainable transition is crucial at this juncture to preserve resources for the generations to come.