SustainabilityStrategy / Materiality Assessment

Materiality Assessment

To ensure we prioritize the issues that have the most impact on the economy, society and the environment, and that most influence the decision-making of our stakeholders, we conducted a first formal materiality analysis in September 2019. The assessment reviewed our practices and processes against external benchmarks such as AA1000 Stakeholder Engagement Standards and the Global Reporting Initiative Framework. The assessment is intended to help us channel our ESG efforts and improve our process.

An issue is material to uab bank if it meets two conditions.

  • It impacts our business in terms of growth, cost, risk or trust.
  • It is important to our stakeholders – such as consumers, customers, employees, governments, investors, NGOs and suppliers.
    In determining if an issue is material, we also consider whether it is aligned with our Vision and Mission, brand portfolio and geographical footprint and the degree to which we can affect change.
  • Identification of the material issues to stakeholders and the bank helps to formulate the strategy
  • A robust process to identify the priority issues allows us to make an efficient resource allocation
  • As materiality requires internal and external engagement, materiality offers the opportunity for the bank to gather stakeholder opinions and provide a solid foundation for an on-going conversation, strengthen the two way communication, build credibility and reputation.
  • Through materiality assessment, we gain a better understanding of how to better position our reporting to deliver meaningful insight on issues that matter both to us and stakeholders
  • During the process, we identify other topics that are equally important because they safeguard the bank’s credibility and hence contribute to bank’s long-term business success, albeit indirectly.

The materiality analysis is based on a continuous process that include consideration, if not compliant to, international Corporate Social Responsibility (CSR) Standards. Following factors were considered while identifying material issues:

  • Their importance to key stakeholders
  • Their CSR materiality (environmental, economic and social impact of issues)
  • Their legal risks if any
  • Their impact on Bank’s reputation
  • Their possible impact on business performance

The issues identified were placed on a matrix (see below), their position relative to the degree of stakeholder interest and potential business impact. These results represent the material issues facing our business. It shall be noted that all issues on the Map regardless of where they fall are relevant to the company.

Governance

  • Diversity: Includes efforts to improve diversity of Board, Management Committee and Employees
  • Risk Management and Risk Culture: This includes uab bank’s overall approach to assessing and managing risk across the business and individual business units, products, services and transactions.
  • Technology Risk and Information Risk: This means keeping the information with us safe from external unwarranted intrusions.
  • Anti- Financial Crime: This means bank’s measures on anti-money laundering and counter financing of terrorism.

Society

  • Financial Inclusion: This includes development and increased access to financial products and services, for unbanked and underbanked segments.
  • Human Rights: This includes Bank’s approach to human rights issues
  • Social Investment: This includes building stronger and inclusive communities
  • Customer Satisfaction: This includes bank’s approach towards grievances redressal, measurement of customer satisfaction
  • SME Financing and Job Creation: This includes provisioning of financing to Small and Medium Enterprises and its consequent impact on job creation for the local economies.

Environment

  • Impact Investment: This includes investment into sectors and industries that contribute/assist in Sustainable Development Goals
  • Climate Change: This includes financing of clean and renewable energy projects
  • ES Risks: This includes integration of Environmental, Social and Governance factors into lending activity including creation of exclusion list.

People

  • Employee Commitment and Talent Management: This includes ability of the Bank to attract and retain top talent and increase employee satisfaction in doing so.
  • Employee Training: This includes communication and training to employees on ESG issues.