SENAKA JAYASINGHE

SUSTAINABILITY MANAGER

SUSTAINABILITY UNIT

DFCC BANK, SRI LANKA

GLOBAL SUSTAINABLE FINANCE CONFERENCE

KARLSRUHE, GERMANY

JULY 2017

SUSTAINABILITY AT DFCC BANK

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DFCC BANK ­ CORPORATE PROFILE DFCC BANK ­ OWNERSHIP

The Government of Sri Lanka isindirectly the largest shareholderin DFCC Bank through Bank ofCeylon, Sri Lanka Insurance,Employee Provident Fund &Employee Trust Fund.

- Public holding 35% among 8,776 shareholders.

- Institutional investors held 85.9%.

Market capitalization of DFCC Bank as at 31 December 2016 was LKR 32.47 billion (USD 216.5 million). This was 1.18% of the total market capitalization.

DFCC Bank was set up in 1955 as Sri Lanka’s pioneer

Development Finance Institution on the recommendation of

the World Bank. It is one of the oldest development banks in

Asia, and renowned for its project financing and SME

financing expertise.

In October 2015, DFCC Bank and its 99% owned subsidiary,

DFCC Vardhana Bank amalgamated, and now DFCC Bank is a

fully­fledged Licensed Commercial Bank.

“The DFCC, Sri Lanka’s pioneer Development Finance Institution

(DFI), completed 50 years of successful operation in 2006. Many

similar institutions established in other parts of the world, most

notably following World War II, have ceased to exist because theyhave become financially not viable. The DFCC is one among a small

number of DFIs that not only has continued to remain viable, but

also has been successful in transforming itself into a multi­product

and robust financial institution in a changing international andlocal environment”

­­ The World Bank: “DFCC Bank: One Among the Successful Few”,July 2007

MISSIONTo provide innovative and responsible solutions true to our values with the expertise of ourmulti­disciplinary team of professionals andsynergies of our financial services group.

VALUES, Innovative Customer Centric

Professional EthicalAccountable Team OrientedSocially Responsible

SUSTAINABILITY AT DFCC BANK

Two main areas

1. Credit Related Aspects

SOCIAL & ENVIRONMENTALMANAGEMENT SYSTEM (SEMS) ANDSUSTAINABLE BANKING INITIATIVE

2. Sustainability initiatives

Both involve the following

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SOCIAL & ENVIRONMENTAL MANAGEMENT SYSTEM (SEMS)

SEMS is a set of policies, procedures, tools and internal capacity to identify and manage DFCC Bank’s exposure to the S&E risks of its clients.

Developed and Implemented in 2016.

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SIGNATORY TO 11 SUSTAINABLE BANKING PRINCIPLES WITH 17 OTHER SRI LANKAN BANKS

THIS SUSTAINABLE BANKING INITIATIVE IS FACILITATED BY SRI LANKA BANKS’ ASSOCIATION AND CO­FUNDED BY DEG OF GERMANY

SUSTAINABILITY AT DFCC BANK

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Sustainable Banking Principles1. Our Business Activities ­ Environmental & Social Risk Management

2. Our Business Operations ­ Environmental & Social Footprint

3. Rights of The Respective Stakeholders

4. Financial Inclusion

5. E&S Governance

6. Promote Ethical Finance

7. Promote "Green Economy" Growth

8. Capacity Building

9. Collaborative Partnerships

10. Promote Transparency and Accountability

11. No "Race To The Bottom".

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Sustainability initiatives

� Tree Planting (including for staff birthdays )

� E­Waste Campaign

� Promotion of reusable (shopping) bags to staff

� Paper Recycling Project

� Commemorating the “Earth Hour”

� ‘Sustainability Thought For The Week’

� Weekly ‘Eco Article’ in the internal newsletter

� Use of Renewable Energy (Solar panels) for Bank’s energyrequirements

� Environmental campaigns, e.g. Beach cleaning

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SUCCESS STORIES

TREE PLANTING TO CELEBRATE STAFF BIRTHDAYS

Sending personalized invitations to staff who celebrate birthdays

Facilitating their participation in tree planting

SUSTAINABILITY AT DFCC BANK

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SUCCESS STORIES (Contd.)

TREE PLANTING TO CELEBRATE STAFF BIRTHDAYS

Sending an E­Tree Certificate to all staff members, indicating the location where their trees were planted

SUSTAINABILITY AT DFCC BANK

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Success Stories (Contd.) ­ Tree Planting to celebrate staff birthdays

SUSTAINABILITY AT DFCC BANK

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Thanks a lot for birthdaywishes & I would like toinform you that both I &my husband really want tothank you for ur initiativeof planting trees & saveour planet Earth.

Thank you very much foryour wishes and alsoappreciate yourcommitment towardssaving our earth. Let meknow in what ways Ican join with this worthyproject.

Thank You so much for wishes.Highly appreciate this projectand your effort to save the worldthrough this birthday wish.

Thank you very much This isthe best birthday gift in mylife

Wow, what a fantastic initiative.

This is a very good move anda very valuable gift for me.Thanks a lot for this worthycampaign.

Success Stories (Contd.) Promotion of reusable (shopping) bags to staff

THIS ‘TAKE YOUR OWN BAG (TYOB)” CONCEPT WILL ENABLE DFCC BANK TO REDUCE ONE MILLION POLYTHENE BAGS PER YEAR.

SUSTAINABILITY AT DFCC BANK

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Success Stories (Contd.)‘Sustainability Thought For The Week’

THROUGH AN E­MAIL SENT TO ALL STAFF ON A WEEKLY BASIS.

SUSTAINABILITY AT DFCC BANK

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