Corporate Social Responsibility Report 2011
Strength in Community
Contents
1. AboutthisReport.....................................................................................................................................................4
1.1 ScopeandFrameworkoftheReport................................................................................................4
2. ChiefExecutive’sMessage..................................................................................................................................5
3. CorporateSocialResponsibilityattheGroup.........................................................................................6
3.1 CSRGovernance............................................................................................................................................6
3.2 FocusAreasin2011.....................................................................................................................................6
3.3 RecognitioninHangSengCorporateSustainabilityIndexSeries.................................... 7
4.OurBusiness..................................................................................................................................................................8
4.1 BusinessHighlightsin2011....................................................................................................................9
4.2 SolidReturnwithSustainableGrowth..............................................................................................9
4.3 EconomicImpact........................................................................................................................................10
4.4 EnhancingSustainableGrowth:ESGAnalysis.......................................................................... 10
5. CorporateGovernance...................................................................................................................................... 11
5.1 CorporateGovernancePolicy............................................................................................................. 11
5.2 CorporateGovernanceFramework................................................................................................. 11
5.3 BoardofDirectors...................................................................................................................................... 12
5.4 RiskManagement...................................................................................................................................... 12
6. StakeholderEngagement................................................................................................................................ 13
6.1 Customers...................................................................................................................................................... 13
6.2 Employees..................................................................................................................................................... 13
6.3 Shareholders..................................................................................................................................................14
6.4 Investors......................................................................................................................................................... 14
6.5 StakeholderEngagementandCSRReporting.......................................................................... 14
6.6 LookingAhead............................................................................................................................................ 14
7. OurPeople................................................................................................................................................................ 15
7.1 Training............................................................................................................................................................ 15
7.2 EmployeeBenefits..................................................................................................................................... 16
7.3 EmployeeHealthandSafety............................................................................................................... 16
7.4 Work-lifeBalance........................................................................................................................................ 16
7.5 CaseStudy:BOCHKthroughtheEyesofaManagementTrainee................................ 16
8. OurCommunity..................................................................................................................................................... 17
8.1 FabricoftheCommunity...................................................................................................................... 17
8.2 CommunityAccess................................................................................................................................... 18
8.3 CaringforourCommunity:theDynamicVolunteerTeam................................................ 19
8.4 BOCHKCharitableFoundation........................................................................................................... 19
8.5 CommunitySupport................................................................................................................................ 19
8.6 CorporateCitizenship.............................................................................................................................. 19
8.7 EducationalProgrammes...................................................................................................................... 20
8.8 Sports,ArtsandCulture.......................................................................................................................... 21
8.9 CaseStudy:WahFuEstate-WahKwaiEstateBranch.......................................................... 22
9. EnvironmentalPerformance........................................................................................................................... 23
9.1 EnvironmentalHighlightsin2011.................................................................................................... 24
9.2 EnergySavinginKeyBuildings.......................................................................................................... 25
9.3 WaterSavinginKeyBuildings............................................................................................................ 25
9.4 OtherEnvironmentalInitiativesandVoluntaryCodes......................................................... 25
9.5 EnvironmentalStandardsandSchemesAdoptedin2011................................................ 26
10.SupplyChainandProcurement................................................................................................................. 27
11.SelectedAwardsandRecognition...............................................................................................................28
11.1Customer-centric...................................................................................................................................... 28
11.2CorporateGovernanceandInvestorRelations......................................................................... 29
11.3SocialResponsibility................................................................................................................................. 29
11.4EnvironmentalProtection..................................................................................................................... 29
11.5InnovationandCreativity...................................................................................................................... 30
1.1ScopeandFrameworkoftheReportThisreportprovidesanannualsummaryofthesustainabledevelopmentandcorporatesocialresponsibility(“CSR”)activitiesofBOCHongKong(Holdings)Limited(“theCompany”)anditssubsidiaries(comprisingBankofChina(HongKong),NanyangCommercialBank,ChiyuBankingCorporationandothers,collectivelyreferredtoas“theGroup”)duringthe2011calendaryear.
TheGrouphasmadeasignificantprogressofitsCSRmeasurementandreportingin2011.ThisreportisitsfirststeptowardsadoptionofglobalCSRreportingstandardsandistheGroup’sfirstreporttofollowtheGlobalReportingInitiative(“GRI”)G3.1Guidelines.
TheG3.1GuidelinesallowtransparentandreadyaccesstoourstakeholdersandbringallconceptsofsustainabledevelopmentandCSR–includingfinancialgovernance,shareholdertransparency,communityresponsibilityandsocialwork–togetherinonecohesivedocument.
1.AboutthisReport
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2. Chief Executive’s Message
At the Group, sustainability is the core belief of how we manage our business and plan for our development. We also recognise the importance of driving the sustainable development of society and environment which allows us to continue to thrive on. We are, therefore, committed to promoting CSR development and strengthening the relationships with our stakeholders as part of the Group’s sustainability strategy.
Banking is a pivotal sector in Hong Kong, especially given its status as an international financial hub. As a major leading banking group in Hong Kong, we are well aware of the important role we play in supporting the stability of the financial system. We are committed to conducting our business in a sustainable and responsible manner with robust governance and risk management in place. We endeavour to safeguard our solid foundation to support the Group’s long-term growth and generate greater value for our customers, employees, shareholders and the community as a whole.
While the Group has long been promoting CSR in different aspects of its operation, we enhanced our efforts in recent years to further demonstrate our vision in CSR. We consider the fulfilment of our social responsibility as crucial for creating and maintaining our long-term core competitiveness and increasing the value of our brand. A CSR Committee was set up and the Group’s CSR policy was formulated in 2010. This policy guides the Group in fulfilling its CSR commitment and in contributing to the sustainable development of the economy, society and environment. In 2011, we continued to drive our CSR development by strengthening our CSR governance and formulating our CSR policies in specific areas. We played an active role in contributing to the well-being of society. Amid the challenging operating conditions in 2011, we maintained our balanced growth strategy and delivered another year of solid results. We also continued to invest in our business and people to better serve our customers’ needs and to support the Group’s long-term development.
In addition to focusing on our business, we believe it is as important to enhance the communication with our stakeholders about our sustainability strategy. We understand that CSR is an evolving topic which covers a wide range of areas and CSR reporting involves more systematic data collection. We seek to advance our work in connection with CSR and to enhance the disclosure of CSR-related information on a continuous basis. Through this report, we hope to share our commitments by articulating the work we are doing, including financial governance, shareholder transparency, community responsibility and social activities. We aim to be open and transparent about our progress and continuous improvement. Going forward, we will continue to align our strategy with sustainability and to step up our efforts to integrate the CSR development into different facets of our business.
He Guangbei
Vice Chairman & Chief Executive
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3.CorporateSocialResponsibility attheGroup
FortheGroup,CSRmeansconductingbusinessinaresponsibleway.Thisapproachbenefitsourinternalandexternalstakeholdersaswellasthewidereconomy,societyandtheenvironment.Thefulfilmentofoursocialresponsibilityiscrucialforcreatingandmaintainingourlong-termcorecompetitiveness,forgingcloserrelationshipswithourstakeholdersandenhancingthevalueofourbrand.
WeaimtodemonstratethatCSRisembeddedinourbusinessoperationsandstrategyaswemovetowardsourcorporatevisionofbecomingthepremierchoiceforcustomers,employeesandshareholders.Wealsocontributetotheeffortsofgovernmentandworkwithothersinthefinanceindustrytoenhancesustainabledevelopmentandinternationalbestpractices.Weseektodevelopamutuallybeneficialrelationshipwiththemandtheircommunities.
Sustainable finance:Recognisingtheimportanceofenvironmentalprotectionandethicalbusiness,wehaveincorporatedenvironmental,socialandgovernance(“ESG”)factorsintoourlendingandcreditpolicies,toensuremoresustainablebusinessgrowthforboththeGroupandthecommunity.
1 2Stakeholder engagement:TheGrouphasasoundpolicyofengagingcustomers,employeesandshareholders.Wehavealsoidentifiedareastoimprovedialoguewithawiderrangeofstakeholdergroupsinfutureyearsbydevelopingalong-termstakeholderengagementplan.
3.1CSRGovernanceIn2010,theGroupsetuptheCSRCommitteetobringtogetherthemanystrandsofourCSRworkunderonesupervisorystructureoverseeingandapprovingallCSRactivities.TheCommitteeischairedbytheChiefExecutiveandiscomprisedofseniormanagementandthechiefexecutivesofthesubsidiaries.Itsresponsibilitiesincludestipulatingsocialresponsibilitystrategiesandpolicies,overseeingtheirexecution,andreviewingandperiodically
reportingprogresstotheBoard.TheBoardiscommittedtoundertakingCSRbystrengtheningrelationshipswithitsstakeholderswithaviewtocontributingtothesustainabledevelopmentoftheeconomy,societyandenvironment.
AppropriateinternalandexternalassessmentmechanismsaresetuptoassessthepracticeofCSRonaregularbasisinordertoimproveouroperatingperformance.EachkeydepartmentisallocatedspecifieddutiestocarryoutCSRwork.
3.2FocusAreas in20112011wasanimportantyearinourCSRdevelopmentwithsignificantprogressinvariousareas.WeenhancedourCSRreportingprocesstoshareourCSRpracticeandresultswithstakeholders,includingcustomers,employees,shareholders,communitiesandindustrypeers.Throughouttheyear,oureffortsfocusedonthefollowingareas:
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3.3RecognitioninHangSengCorporateSustainabilityIndexSeries
includedasaconstituentoftheHangSengCorporateSustainabilityIndexSeries,whichevaluatestheenvironmental,socialandcorporategovernanceperformanceoflisted
companiesinHongKongandtheMainlandofChina.Ourrankingmovedup14placesto18thin2011.
3.CorporateSocialResponsibilityattheGroup
TheGroup’sperformancewithregardtocorporatesustainabilityhasearneduswiderecognition.Fortwoyearsinarow,BOCHongKong(Holdings)Limitedhasbeen
Our people: WerecognisepeoplearetheGroup’smostimportantasset.Weinvestedheavilyinstafftraininganddevelopment,asaresultreceivingbothexternalrecognitionandpositiveresponsetoourstaffengagementsurveyin2011.ThislaysasolidfoundationfortheGroup’ssustainabledevelopmentinthelongterm.
Community: Weattachgreatimportancetothecommunitiesweoperatein.Thisenhancesourlong-termviabilityandfulfilsourresponsibilitiesasaleadingfinancialinstitutioninHongKong.WecontinuetopromoteeconomicandsocialsuccessofourmarketsthroughallourbusinessdecisionsandpayparticularattentiontoCSRinitiativesinsocietyasawhole.
Environmental protection: Ourcommitmenttoenvironmentalsustainabilitywasformalisedin2011asweformulatedtheGroup’sEnvironmentalPolicy.Westrivetominimiseourenvironmentalimpactbyreducingourcarbonfootprint,usingresourcesmoreefficientlyandeffectivelyandpromotingenvironmentallyresponsiblebusinesspractices,servicesandproducts.
Supply chain: TheGroup’sCSRpolicieshavemoresignificantimpactwhenappliedthroughoutoursupplychain.OurnewSustainableProcurementPolicyandSupplyChainCodeofConductextendourCSRreach.ToassesstheperformanceofsuppliersbasedonournewCodeofConduct,weconductbothsupplierself-auditandphysicalon-siteaudits.
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TheCompanywasincorporatedinHongKongon12September2001toholdtheentireequityinterestinBankofChina(HongKong)Limited(“BOCHK”),itsprincipaloperatingsubsidiary.Asat31December2011,BankofChinaLimited(“BOC”)held66.06%equityinterestintheCompany.
TheCompanyisaleadinglistedcommercialbankinggroupinHongKong,asrankedbyassetsandcustomerdeposits.With266branches,572ATMsandotherdistributionchannelsinHongKong(asat31December2011),theCompanyanditssubsidiariesofferacomprehensiverangeoffinancialproductsandservicestopersonalandcorporatecustomers.
Inaddition,theCompanyanditssubsidiarieshave29branchesandsub-branchesintheMainlandofChina(asat31December2011)toprovidecross-borderbankingservicestocustomersinHongKongandtheMainland.
BOCHKisoneofthethreenote-issuingbanksinHongKong.BOCHKisappointedbythePeople’sBankofChinaasthesoleClearingBankforRMBbusinessinHongKong.On13July2010,BOCHKwasauthorisedastheClearingBankofRMBbanknotesbusinessfortheTaiwanregion.
4.OurBusiness
Fast Facts: Our Group in Hong Kong(asat31December2011)
266branches
572ATMs
branchesinpublichousingestates
26
publichousingestatessolelyservedbyourbranches
16
3millioncustomers
Morethan
RMBbusiness
Insurance
Mainland business
Person
albanking
Corporate banking
Treasury
inHong
Kong
Our key services
Personalbanking
Corporatebanking
Treasury
Insurance
Mainlandbusiness
RMBbusinessinHongKong
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4.1BusinessHighlightsin2011
Achievedabalancedgrowthinloansanddepositsandmaintainedahealthyloan-to-depositratio
Implementedaproactiveinvestmentstrategytosecurerisk-adjustedreturnandliquidity
MaintainedleadingmarketpositionsintheRMBbusiness,HongKongresidentialmortgagebusiness,insurancebusinessandHongKong-Macausyndicatedloanmarket
SignificantadvancementinRMBbusinesswithconspicuousgrowthanddevelopmentinRMBdeposit-taking,lending,tradesettlement,creditcardbusiness,lifeinsurance,treasuryproductsandfundsdistribution
Enhancedourservicingcapabilityforcross-bordercustomersandexpandedourclientele,includingcorporateclientsandwealthmanagementcustomers,throughclosecollaborationwithourparentbank,BOC
4.2SolidReturn withSustainable GrowthTheCompany’sphilosophyistopromotesustainablegrowth.Ourbalancesheetischaracterisedbyourpredominantlypersonalandcorporatebankingbusinessmodelandprudentbusinessstrategy.WemaintainedastrongcapitalpositionwithaCapitalAdequacyRatio(“CAR”)of16.90%asattheendof2011,demonstratingourcommitmenttobeastablefinancialinstitution.
Ourloanbookgrew14.10%anddepositsincreasedby11.60%fortheyear.TheGroup’stotalassetsgrew4.70%toHK$1.74trillion.Asset
qualityfurtherimprovedwithaclassifiedorimpairedloanratioof0.10%,amongthelowestinthemarket.OurconsistentlystrongfinancialratioshaveledtoourStandard&Poor’slong-termcreditratingupgradebytwonotchesfromA-toA+in2011.
Sustainablegrowthallowsustomaintainstrengthinourcommunities.Althoughthemarketconditionistough,theGroup,ourbalancesheetandourwell-entrenchedbranchnetworkremainstrongandstable,helpingustomaintainhighqualitybankingservices.
4.OurBusiness
13.0816.17
16.85 16.1416.90
12.23 10.86 11.64 11.29 12.51
Core Capital Ratio
* as at 31 December
%
Capital Adequacy Ratio
2007 2008 2009 2010 2011
Capital Adequacy Ratio
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4.3EconomicImpactAsaleadingbankinggroupinHongKong,wearecommittedtocontributingtotheeconomy.Throughtherevenuewedelivered,wecansupportpayrollstoouremployees,dividendstoshareholdersandtaxestogovernment,aswellascontinuingourservicetothecommunity.In2011,weachievedrevenuesofHK$30.85billion,up12%in2010,andearnedHK$24.68billionprofitbeforetax.ThetotaltaxpaidaccountedforHK$3.9billion.
Wealsoseeprovidingbankingservicestothecommunityasourimportantroleinfacilitatingeconomicdevelopment.TheGroup’sleadingpositionisdemonstratedbythesizeofourassetanddepositbase.In2011,weheldHK$1.1trillionindepositsforourcustomers.OurtotaladvancestocustomersgrewtoalmostHK$700billion.WeprovideloanstoindividualsandenterprisestomeettheirfinancialneedsandtosupportthesustainableeconomicgrowthofHongKong.
BeingthesoleRMBclearingbankinHongKong,BOCHKgivesfullsupporttothefurtherdevelopmentoftheRMBmarketinHongKongaswellasinotheroffshorelocations.Ithasplayedanessentialroleinsettingupasophisticatedfinancial
infrastructureforRMBbusiness,providingsmoothandefficientclearingservicestotheRMBparticipatingbanks,andensuringsufficientRMBliquidityfordailysettlements.
4.4Enhancing SustainableGrowth: ESGAnalysisTheadoptionofESGmetricsinanalysinginvestmentdecisionsisbecomingwidespread–similarly,theanalysisofsuchcriteriapromisestodelivermorerobustandlong-termsustainablecreditmanagement.
WefurtherenhancedourGreenLendingPrinciplesandCSRCreditApproach,whichoutlinehowwepromotesustainabledevelopmentoftheeconomy,societyandenvironmentthroughvariouscreditriskstrategies.Differentcreditrisk
strategiesareadoptedfordifferentcounterpartiesorcredittransactionsdependingonthelevelofsocialorenvironmentalimpacts:
1 Supportisgiventothosecorporateorbusinessactivitieswithpositiveenvironmentalimpactsthroughengaginginvariousgreenlendingprogrammes.
2 Credittransactionsorcounterpartieswithsignificantnegativeenvironmentalimpactsareprudentlyassessed.Wewillsuspendsuchrelationshipsifmaterialprogresstowardscomplianceorrelatedcertificationcannotbeachievedwithinareasonabletimeframe.
3 Credittransactionsdirectlyengagedinmanufacturing,salesandpurchaseoflethalarmsandweaponsareprohibited.
4.OurBusiness
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Key Figures 2011/2010
HK$ Mn 2011 2010 (at 31 Dec 2011) (at 31 Dec 2010)
Revenues 30,846 27,508
Operatingcosts 7,862 9,584
Taxpaid 3,867 3,052
Profitbeforetax 24,680 19,742
Costtoincomeratio 25.49%* 34.84%
Totaladvancestocustomers 699,379 613,219
* ShouldtheimpactofLehmanBrothers-relatedproductsbeexcluded,thecoreratiowas34.56%,oneofthelowestintheindustry.
5.1Corporate GovernancePolicyTheCompanyrecognisestheimportanceofhighstandardsofcorporategovernanceandmaintainsaneffectivecorporategovernanceframeworkwhichdeliverslong-termsuccessoftheGroup.TheCompanyisalsostronglycommittedtoembracingandenhancingsoundcorporategovernanceprinciplesandpractices.Theestablishedandwell-structuredcorporategovernanceframeworkdirectsandregulatestheethicalconductoftheCompany,therebyprotectingandupholdingthevalueof
5.CorporateGovernance
shareholdersandstakeholdersasawholeinasustainablemanner.
5.2Corporate Governance FrameworkTheBoardisatthecoreoftheCompany’scorporategovernanceframeworkandthereisacleardivisionofresponsibilitiesbetweentheBoardandtheseniormanagement.TheBoardisresponsibleforprovidinghighlevelguidanceandeffectiveoversightoftheseniormanagement.TheBoardhasestablishedfourstandingBoardCommitteestoassistinperforming
itsresponsibilities.EachoftheBoardCommitteeshasawell-definedMandateandmakesrecommendationstotheBoardonrelevantmatterswithinitsscopeofresponsibilitiesormakesdecisionsunderappropriatecircumstancesinaccordancewiththepowerdelegatedbytheBoard.
TheBoardalsoestablishesadhocIndependentBoardCommittees,wheneverneeded,toreviewandapproverelevantissuesinviewofgoodcorporategovernance.TheIndependentBoardCommitteescomprisealltheIndependentNon-executiveDirectorsoftheCompany.
The Company’s corporate governance framework
The Board of Directors
RiskCommittee
NominationandRemuneration
Committee Management
StrategyandBudgetCommittee
AuditCommittee
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5.3BoardofDirectorsTheBoardconsistsof12members,ofwhichfivearenon-executivedirectorsandfiveareindependentnon-executivedirectors.The
5.CorporateGovernance
chairmanoftheBoardisanon-executivedirector.TheBoardactshonestlyandingoodfaithsothatdecisionsaremadeobjectivelywithaviewtodeliveringlong-termandmaximumshareholdervalueand
fulfillingitscorporateresponsibilitytootherstakeholdersoftheGroup.During2011,nineBoardmeetingswereheldwithanaverageattendanceof88%.
5.4RiskManagementTheGroupbelievesthatsoundriskmanagementiscrucialtothesuccessofanyorganisation.Initsdailyoperations,theGroupattachesahighdegreeofimportancetoriskmanagementandemphasisesthatabalancemustbestruckbetweenriskcontrolandbusinessgrowthanddevelopment.Wehavebuiltarobustriskmanagementorganisationalstructurewithacomprehensivesetofriskmanagementpoliciesandprocedures.Wehaveappropriaterisklimitstoidentify,measure,
Meetings of Standing Board Committees During 2011
Standing Board Committee Number of members Number of meetings Average attendance
AuditCommittee 6 5 97%
NominationandRemunerationCommittee 5 5 84%
RiskCommittee 4 8 94%
StrategyandBudgetCommittee 5 6 97%
monitorandcontrolrisksthatmayarise.TheprincipaltypesofrisksinherentintheGroup’sbusinessesarecreditrisk,interestraterisk,marketrisk,liquidityrisk,operationalrisk,reputationrisk,legalandcompliancerisk,andstrategicrisk.WehavebegunformalmeasurementofourownESGrisks.WealsomeasureandincorporateESGfactorswhenassessingoursuppliersandcreditrisksofourcustomers.
TheGroup’sriskmanagementobjectiveistoenhanceshareholdervaluebymaintainingriskexposures
withinacceptablelimits.TheGrouphasadefinedriskappetitestatementapprovedbytheBoard,whichisanexpressionofthetypesandlevelofriskthattheGroupiswillingtotakeinordertoachieveitsbusinessgoalsandtomeettheexpectationsofitsstakeholdersunderacontrollablerisklevel.
FormoreinformationonBOCHK’scorporategovernance,pleaserefertoour2011annualreportortheCompany’swebsite.
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6.StakeholderEngagement
TheGrouprecognisesthefundamentalimportanceoftransparencyandaccountabilityandiscommittedtoengagingwithstakeholders.Weaimtomaintainconstantcommunicationwitharangeofstakeholders.
Insecondquarter2011,wedevelopedalong-termstakeholderengagementplan.TheGroupidentifiesitsstakeholdersas:
Customers EmployeesShareholders
and the investment community
Government and regulators Supply chain Community
Ouron-goingstakeholderengagementeffortscouldbeoutlinedasfollows:
6.1CustomersTheGroupregularlyconductscustomersatisfactionsurveysandfocusgroupdiscussionswithcustomersegmentsincludingmass-market,wealthmanagementandcorporates.Weemploydifferentmethodstogatherinformationoncustomersatisfactionandstrivetoimproveourservicelevels.Weconductcustomersatisfactionsurveys,organiseseminarsandvisitourcorporatecustomerstogaina
betterunderstandingofourcustomerneeds.
TheGrouphassetupafaircomplainthandlingprocessforcustomerstovoicetheiropinionsandprotecttheirinterests.Complaintsaboutfrontlinestaffareinvestigatedindependently.ComplaintsrelatedtoinvestmentproductsarehandledbyaninvestigationteamwhichreportstotheChiefRiskOfficer.
Inrecognitionofourexcellenceincustomerserviceandprovisionofareliableserviceplatform,theGroup’sCallCentrereceived9awardsbytheHongKongCallCentreAssociation(“HKCCA”),
includingtheHKCCAAwards–GrandAwardoftheYearin2011.BOCCreditCard(International)LimitedhasreceivedtheISO10002CertificationfromHongKongQualityAssuranceAgencysince2008,signifyingourcompliancewiththeinternationalstandardofcustomercomplaintmanagement.
Wehavecommissionedthirdpartyresearchintocustomersatisfactiontofurtherimproveourcustomers’experience.ThesurveyreportbyNielseninApril2012revealedthatthemajorityofourpersonalandcorporatecustomersweresatisfiedwithourservicequality.
6.2EmployeesWeplacegreatemphasisonhavingtwo-waycommunicationsbetweentheGroupandouremployees.Toensurefairandreasonabletreatmentforemployees,theGroup’sHumanResourcesPolicystatesclearlythemechanismforaddressingouremployees’needsandconcerns.Adedicatedemployeehotlineisinplacetogatheremployeefeedbackandopinions.In2011,BOCHKconductedan“onlinestaffengagementsurvey”tobetterunderstandstaffopinionsandenhanceourpoliciesandmeasures.HavingthemostextensivebranchnetworkinHongKong,theGroupvaluesthevoiceofourfrontlinestaff.Ourseniormanagementmakesconstantvisitstodifferentbranchesandhasface-to-faceinteractionwithourstaff.
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6.3ShareholdersTheBoardattachesahighdegreeofimportancetocontinuouscommunicationwithshareholders,particularlythroughdirectdialoguewiththemattheCompany’sannualgeneralmeetings.Shareholdersareencouragedtoactivelyparticipateinsuchmeetings.
AttheCompany’s2011annualgeneralmeeting(“AGM”)andextraordinarygeneralmeetingheldon25May2011,theChairmanoftheBoard,theChairmanoftheNominationandRemunerationCommittee,theChairmanoftheRiskCommittee,theChairmanoftheStrategyandBudgetCommittee,membersoftheAuditCommittee,seniormanagementoftheCompanyandrepresentativesoftheexternalauditor,PricewaterhouseCoopers,werepresenttorespondtoenquiriesraisedbyshareholders.Atotalof825registeredshareholdersandtheirauthorisedproxiesand117authorisedcorporaterepresentativesholdinganaggregateof10,359,163,269shares,representing97.98%ofthetotalissuedsharecapitaloftheCompanywerepresentatthe2011AGM.
6.StakeholderEngagement
6.4InvestorsTheCompanyaimstopromoteeffectivecommunicationwiththeinvestmentcommunitytoenhancetheirknowledgeandunderstandingofourdevelopmentandstrategies.In2011,theCompanyhadover270meetingswithinvestorsandanalystsacrosstheworldwithtotalattendancesofover780.Thesemeetingswereheldthroughglobalroad-shows,internationalinvestorconferences,companyvisitsandconferencecalls.TheCompanyiswidelycoveredbymorethan20securitiesresearchinstitutions.
WehighlyvalueinvestorfeedbackandcommentswhichareimportantfortheformulationoftheGroup’sgrowthstrategiestoenhanceitsshareholdervalueandtoensureitssustainabledevelopment.
TheInvestorRelationsCommittee,chairedbytheChiefExecutiveandconsistingofotherseniorexecutives,isresponsiblefortheformulationandoversightoftheCompany’sinvestorrelationsstrategiesandprogrammes.TheeffectivenessoftheinvestorrelationsprogrammesisreviewedbytheBoardandtheInvestorRelationsCommitteeonaregularbasis.
6.5Stakeholder Engagementand CSRReportingAnumberofinterviewswereconductedinassessingthecontentforthisCSRreport,whichhasadoptedtheformatofGRIreporting.Theintervieweesincludedarangeofstakeholdersincludingseniormanagement,branchlevelmanagement,juniorstaff,customersandshareholders.Stakeholdersforinterviewwereidentifiedbytheirrelevancetotheorganisationandtheirlegitimacy;theiravailabilityforin-depthinterviewsandtheirknowledgeoftheGroupanditsoperations.
6.6LookingAheadWewillcontinuetoraiseawarenessamongstourstakeholdersabouttheimportanceofethicalandresponsiblepracticewithinourbusiness.Atthesametime,weaimtoimprovethetwo-wayflowofinformationbetweenourbusinessandstakeholdergroups.TheGroupwillkeepstakeholdersinvolvedintheformulationofourlong-termdirectionandstrategybylisteningtotheiropinionsandsuggestionsonourcurrentandfuturedevelopment,andhelpingthemunderstandouroverallprogress.
Ourstakeholderengagementplandevelopedin2011willimproveourstakeholderengagementthroughamorestructureddialoguewithbothinternalandexternalstakeholders.
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7.OurPeople
Weunderstandtheimportanceofastableemploymentenvironmentforourpeopleandremaincommittedtothisevenduringtheglobalfinancialcrisis.Comparedtotheendof2010,ourheadcountmeasuredasfull-timeequivalentsroseby4.8%in2011to14,475.
CSRhelpsincreasethesenseofbelongingamongourstaff,hasapositiveimpactonstaffmoraleandcreateslong-termvaluefortheGroup.ItisapriorityfortheGroupintheyearahead.
TheGroupconductedan“onlinestaffengagementsurvey”tocollectstaffopinionin2011,asoutlinedinthestakeholderengagementsection.Thepurposewastoensurethevoicesofstaffmembersarefullyheard,enhancemanagementpoliciesandmeasures,andupgradetheworkingenvironment.Thesurveywasmetwithanoverwhelmingresponse.
Operating Practice
OurapproachtohumanresourcemanagementisgovernedbyourStaffCodeofConductwhichisreviewedandapprovedbytheManagementCommitteeannually.Ourstaffhandbookprovidesguidelinesfornon-discriminationandfairpracticeintheworkplacewith"CodesofPracticeonEmploymentRelatingtotheSexDiscriminationOrdinance,DisabilityDiscriminationOrdinanceandFamilyStatusDiscriminationOrdinance",whichpromotesequalopportunities.
In2010,weimplemented“GuidelinesforSex/Disability/FamilyStatusDiscrimination”toreflectthevalueoftheGroupasanequalopportunityemployer.AllstaffarerequiredtoadheretotheGuidelines.WehavealsoreviewedtheGuidelinesinresponsetotherecentenactmentofHongKong’sRaceDiscriminationOrdinance.
7.1TrainingWeunderstandthatpeoplearecriticalassetsfortheGroup.Wearecommittedtoprovidingthemwithlearningopportunitiesandacongenialenvironmenttogrowanddevelop.In2010-11,weweregrantedthehonourableawardstatusof“ERBManpowerDeveloper1st”bytheEmployeesRetrainingBoard.
TheGroupinvestsheavilyinstafftraininganddevelopmenteveryyearthroughdiverseandmulti-facetedtrainingprogrammes.Inordertoenhancetheleadershipandstrategicthinkingcapabilitiesofourmanagementstaff,wehaveemployedvariousprogrammesofferedbyrenowneduniversitiessuchasPekingUniversity,TsinghuaUniversity,ColumbiaUniversity,
OxfordUniversityandtheRichardIveySchoolofBusiness.Inaddition,wenominateoutstandingtalenttoenrolltheEMBAprogrammesofferedbyrenowneduniversitiesinHongKong.
WecontinuetonurtureourfuturetalentthroughourManagementTraineeProgramme,OfficerTraineeProgrammeandSummerInternshipProgramme.WealsooffersummerinternshipswhichincludeworkexperienceintheMainlandbranchesofBOC.
TosupporttheGroup’ssustainablegrowth,weadoptanintegratedapproachtoencourageourstafftolearnanddevelopthroughvariousoptionssuchasin-housetrainingprogrammes,jobrotationprogrammesandonthejob
trainingundertheguidanceandcoachingoflinemanagers.WeofferwellstructuredcurriculumtonewstaffincriticalrolesoffrontlinebusinessestoensurethattheyarecompetentandtheirvaluesarealignedwiththeGroup’sethicalstandardsinexecutingbusinessactivities.
RespondingtotheGroup’sriskandcompliancemanagementapproach,welaunchedtwobank-widetrainingprogrammesthroughthenewlydeployed“MyLearning”electronicportalcoveringthetopicsofOperationalRiskManagement,CodeofConduct,Anti-MoneyLaundering,InformationSecurity,CustomerDataProtection,FraudsandForgeryPrevention.
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7.2EmployeeBenefitsTheGroupiscommittedtoprovidingitsstaffwithcompetitiveremunerationpackages.Wecontinuetoreviewandrefineourremunerationandbenefitspolicytakingmarketpracticesintoaccountandincompliancewithrelevantregulatoryrequirementsincludingasoundremunerationsystem.Ourstaffarerewardedbasedonperformance.Forsalesstaff,theincentivescheme,whichisscore-driven,isdesignedinawaythattakesintoaccountbothsalesperformanceandcompliance/control.
Appreciationandrecognitionareimportanttomotivatestaff.We,therefore,identifyandrewardoutstandingperformersanddistinguishedstaff.
Ourprovisionofcompetitivemedicalschemestostaffexemplifiesourcaringattitude.Meanwhile,ourheadquartersstaffbenefitfroma
subsidisedcanteenthatoffersbreakfast,lunchanddinnerinbothChineseandWesternstylesatBankofChinaTower(“BOCTower”).Forthosenon-headquartersstaffwhocannotenjoythisbenefit,amealallowanceisprovided.
7.3EmployeeHealth andSafetyInordertoenhanceoccupationalhealthandsafetyinBOCHK,ourCorporateSafetyDivisionorganisedatotalofeightcoursesincludingabasicfirepreventionprogramme,occupationalhealthandsafetyseminarsandthefirstaidcertificationprogrammein2011.267participantsattended3,184traininghoursintotal.Inadditiontoformaltrainingprogrammes,robberypreventionexerciseswereconductedin65branchescovering1,111staff.Ourstaffareprovidedwithfreebodycheck-upsonaregularbasis.
7.4Work-lifeBalanceWebelievethatmaintainingagoodwork-lifebalanceisimportanttoouremployees.Differentrecreationalactivitiesareprovidedforourstaffandtheirfamilymembers.Inpromotingenvironmentalprotection,wehavearrangednineeco-toursofthe“HongKongGeoparkCharityGreenWalk”forourstaffandtheirfamilymembers.OurstafffundayatHongKongDisneylandinNovember2011enjoyedaphenomenalturnout,with99%ofstaffenrollingandnearly30,000staffmembersandtheirfamiliesparticipating.Educationalworkshopsbyfinancialprofessionalswereorganisedtoteachouremployees’childrenimportantfinancialconcepts.WealsopromoteareadingculturebyorganisingvariousbookfairsatBOCTowerandBankofChinaCentre(“BOCCentre”).Moreover,toadoptfamily-friendlyemploymentpractices,weprovidemaleemployeeswithpaidpaternityleave.
SharonLaujoinedBOCHKasaManagementTraineeaftergraduationin2011.ShewasattractedtoBOCHKbecausesheconsideredthebanktobebothprofitableandsociallyresponsible.ShebelievedthatasBOCHKcontinuestogrow,thiswouldbringhermorecareeropportunities.
SincejoiningBOCHK,shehasbeenmostimpressedbythebank’speople-orientedcorporateculture.Fromherownexperience,shesawthatthebankhad
BOCHKthroughtheEyesofaManagementTraineeSharon Lau
demonstratedstrongcommitmenttonurtureyoungbusinesstalentandfutureleaders.TheManagementTraineeProgramme,particularlythe12-monthrotationexperience,hasbroadenedherexposurewithinBOCHKandtothebankingindustryinHongKong.Moreover,thementorshipprogrammehasenabledhertotakeadvicefromseniorcolleaguesandtostrengthenhersoftskillsintheworkplace.SheisdelightedtoworkatBOCHKbecauseitisacaringorganisationwhichvaluespeopleandrelationships.
7.OurPeople
7.5 Case Study
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8.OurCommunity
ThesustainabilityoftheGroupisfundamentallyrelatedtothesocialandeconomicsustainabilityofthecommunityandHongKong’spositionasaninternationalfinancialcentre.
OurCSRPolicyguidesustopromotethedevelopmentoftheHongKongeconomyandsociety.Guidedbytheoperatingconceptofconformingwithsocialethicsandpublicwell-being,theGroupsafeguardstheinterestsofconsumers,employeesandthecommunity.Itactivelyparticipatesinsocialwelfarerelatedinitiativesandalsoencouragesemployeestoparticipate.Itpromotessportsdevelopment,supportsartsandculture-relatedactivities,donatestoandsponsorseducation-relatedprojects,andtakespartincharitableevents.
Branch Locations
8.1Fabricofthe CommunityAsaleadingbankinggroupinHongKong,weattachgreatimportancetoourcommunityandconsiderthefulfilmentofsocial
responsibilityascrucialforcreatingandmaintainingourlong-termcorecompetences.Wetreasuretherelationshipswehavedevelopedwiththecommunitywherewegrowourbusiness.Asacommunitybank,wecontinuetorationaliseour
branchnetworktobettermeettheneedsofthegeneralpublic.Wenowoperate26branchesinpublichousingestatesandin16publichousingestateswearetheonlybankpresent.
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Elderly and Disadvantaged
TheCensusandStatisticsDepartmentoftheHKSARGovernmentprojectsthatby2036,thenumberofpeopleagedover60willincreaseto2.9million,growingfrom18.9%ofthepopulationin2011to33.2%.Statisticsalsodemonstrateatrendthatahigherpercentageoftheelderlyisreceivingsocialsecuritypaymentsthanyoungerpeople.
BOCHKhasanumberofinitiativestohelptheelderlyandthecommunity:
Fortheelderlyagedover65,BOCHKoffersafreeBOCFastCashCardandspecialadviceonhowtouseATMssafelyandsecurely.BOCHKalsomakesvisitstoelderlycentrestoteachtheelderlyhowtouseATMs.
BOCHKhasbecomealeadingproviderofthenew“ReverseMortgageProgramme”launchedbytheHongKongMortgageCorporation.UndertheProgramme,theelderlycanpledgetheirself-occupiedresidentialpropertyinHongKongassecurityforamortgageloantoenjoygreaterfinancialflexibilityafterretirement.
Weofferaservicechargewaivertovulnerablegroupssuchasseniorcitizensaged65oraboveaswellasthosereceivingtheComprehensiveSocialSecurityAssistance.
8.OurCommunity
newlyrenovatedbrancheshavealreadyincorporatedbarrier-freefacilities,suchasslopingplatforms,inordertofacilitatedisabledcustomerstoenterthebranches.Wherethisisimpossibletoinstall,helpbellsareprovidedasalternatives.Inaddition,thereareCustomerServiceAmbassadorsinourbranchesprovidingassistancetoanycustomersinneed.
ATM Services
ForATMservices,allnewlyinstalledorreplacedATMsaredesignedwiththeheightofbothkeypadsandscreenssuitableforwheelchairaccess,incompliancewithHongKongAssociationofBanks(“HKAB”)guidelines.
Inaddition,alloftheGroup’sATMsfeatureprotrudingsymbolswhichimprovetheaccessibilityofATMservicesforthevisuallyimpaired.Around92%ofATMshavesoftkeypads,whichfulfilstherequirementofHKAB.WhensettingoutthenetworkstrategyofATMs,weensurethatthereisatleastoneATMwithsoftkeypadsateverysite.
Internet Banking Services
ForInternetBankingServices,BOCHKhasdesignedfunctionsforvisuallyimpairedcustomers,includingthesupportofscreenreadersandprovisionforfontresizingaswellasfulfilmentofbestpracticeguidelinesonnavigationandcontentpresentation.
WehaveimplementedanumberofmeasurestoassisteligibleHongKongcitizens,particularlytheelderly,inregisteringfor“Scheme$6,000”oftheHKSARGovernmentwitheasyaccessviaourbranches,CallCentreandInternetBanking,andtohelpthemtoreceivepaymentsthroughbanktransfer.TheinitiativewasextendedtohelpretiredHongKongelderlyintheMainlandtoregisterandcollecttheirHK$6,000handoutfromtheGovernment.
Specialproceduralhandlingforaccountopening,sellingprocesses,designandplanningofthebranchesandATMshasbeensetupandcontinuouslyreviewedforgroupofcustomerswithspecialneeds.Wehaveintroducedriskprofilingforallcustomers,toensurethattheelderlyorothervulnerablegroupsareawareoftheproductfeaturesandriskprofileoftheirinvestmentsandwhetherthisisinlinewiththeirriskappetite.
8.2CommunityAccess
Branches
Attheendof2011,theGroup’sservicenetworkinHongKongcomprised266branches,including133wealthmanagementcentresand21dedicatedMainlandcustomerservicecentres.Asstipulatedbyourbranchdesignguidelines,“barrier-freeaccess”isakeyelementinourbranches.All
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Call Centre Services
Multi-linguisticcapabilities–Cantonese,Putonghua,English,JapaneseandIndonesian–havebeenestablishedinthecallcentresoftheGrouptohandlecustomerenquiriesandrequests.
8.3Caringforour Community: theDynamic VolunteerTeamTheGroupestablishedthe“DynamicVolunteerTeam”in2006tofacilitateemployeeparticipationinvariouscommunityandvolunteeractivities,includingcleaningelderlyhomes,organisingfoodeventsforunderprivilegedfamilies,runningbasicandenjoyableartclassesforchildrenandorganisingcareerseminarsforsecondaryschoolstudents.
In2011,the“GuidelinesforBOCHKVolunteerTeam”,andthevolunteerteammemberdirectoryinitiativeswereestablishedtofurtherformalisethevolunteerforce.Thenumberofregisteredvolunteerstaffhasdoubledsince2006,withover1,000registeredvolunteersnowcontributingtheirtime.Allstaffreceiveonedayannualleaveforvolunteeractivities.
In2011,theDynamicVolunteerTeamcollaboratedwithTungWahGroupofHospitals,PoLeungKuk,Methodist,TheBoys’andGirls’
ClubsAssociationofHongKong,YanChaiHospitalandHelpingHandtoconductninevolunteereventsoffering24serviceactivities.
8.4BOCHKCharitable FoundationRootedinHongKong,BOCHKhasbeenservingHongKongwithadedicationtodevelopingharmoniousrelationshipswithdifferentsectorsofthecity.Overtheyears,bydonatingtoandworkingcloselywiththeBOCHKCharitableFoundation(“TheFoundation”),acharityorganisationregisteredasanindependentlegalentityinHongKong,wehavebeenactivelyparticipatinginadiverserangeofcharitableactivities,coveringeducationandsports,artsandculture,environmentalprotection,socialwelfareandassistancetotheneedyinHongKongandtheMainlandofChina,toshareoursuccesswiththecommunitiesweserve.
8.5Community SupportTheGroupisactiveinsupportingthewelfareofHongKong’ssociety,throughourowncampaignsandthroughsupportoftheHongKongCommunityChest(“theChest”)andothercharitableinstitutions.
In2009wedesignatedHK$90millionofthenetproceedsfrom
thesaleoftheBeijing2008OlympicGamesHKDCommemorativeBanknotetosetupthe“BOCHK’sCaringHongKong–AHeartWarmingCampaign”,withtheobjectivestoassistthedisadvantagedgroupsandtobuildaharmoniouscommunity.UndertheCampaign,weapprovedHK$85millionbytheendof2011to78large-scaleprojectsofsocialwelfareagenciesandcharitiesoftheChestandtheHongKongCouncilofSocialServices.Over900,000peoplehavebenefitedfromthesedonations,coveringthenewimmigrants,theaged,theunderprivilegedandsingle-parentfamilies.
8.6Corporate CitizenshipRecognisingtheneedtoenhancecorporatecitizenshipandCSRinthecity,BOCHKhascommittedasaleadsponsorofthe“CorporateCitizenshipProgramme”organisedbytheHongKongProductivityCouncil(“HKPC”)fortwoconsecutiveyears.Theaimoftheprogrammeistoencourageenterprisestoadoptsocialresponsibilityprinciplesintheirbusinessstrategiesandmanagementphilosophies.Theprogrammealsodevelopedanumberofinitiativestoenhanceyoungpeople’sawarenessoftheresponsibilityofmoderncorporations.
8.OurCommunity
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8.7Educational Programmes
Nurturing Future Talent
Since1990,theFoundationhasprovidedHK$14.43millionforscholarshipsandbursariestonineuniversitiesinHongKong,benefitingatotalof1,540students.Wealsoorganisedthe“SummerInternshipProgrammeforTertiaryInstitutionStudents”.In2011,theseventh“InternshipProgrammeforFinancialProfessionalsintheMainlandofChina”washeld,togetherwiththe“SummerInternshipProgrammeforTertiaryInstitutionStudents”,offeringuniversityandtertiaryinstitutionstudentstheinternshipopportunitiesatthebranchesofBOCintheMainland.
Inaddition,theGroupsponsoredthe“CSRCUMBAConference2011”organisedbytheFacultyofBusinessAdministrationoftheChineseUniversityofHongKong(“CUMBA”)underthethemeof“GlobalPartnershipforaSustainableFuture”.Morethan250delegatesfromover50organisationsofvariousbusinessdomainsparticipatedintheconferencetosharetheirexperienceandaspirationsofCSRfulfilment.
Financial Workshops for Children
BOCHKactivelypromotesfinancialliteracyinthecommunity.Forexample,BOCHKandBOCGroup
conservationfromworld-classexperts.Thisprojecthasbeenwellreceivedbytheeducationcommunity,witheightparticipatingschoolsinthefirstphaseandwillbegraduallyextendedtoallschoolsinHongKong.
In2009,wespearheadedthe“HongKongGeoparkCharityGreenWalk”,whichbroughttogethertheimportantelementsofenvironmentalprotectionandcharity.AsatMay2012,84eco-tourswereorganisedformorethan8,100customers,citizens,staffmembersandtheircompanionstobetterunderstandHongKong’sgeo-conservation.Inaddition,morethan260newimmigrants,membersfromsingleparentorlowincomefamilies,youthsandseniorcitizenswereinvitedtotakepartinthe“HongKongGlobalGeoparkofChinaIn-depthTour”andexplorethegeologicalwonders.
In2011-2012,wesponsorthe“1000EnvironmentFriendlyYouthAmbassadorsAction”organisedbyeightnationalauthoritiesofthePRC,includingtheMinistryofEnvironmentalProtection,MinistryofEducation,MinistryofScienceandTechnology.Theprogrammeaimstoarousethepublicawarenessofpollutionpreventionandencouragethepublictoactivelyparticipateinenvironmentalprotectionthroughenergyconservationandemissionsreduction.
LifeAssuranceCompanyLimitedcontinuedtosponsorthe“KiddieSky”GreenKidsBankingProgrammeandKidsGardensetupbytheDepartmentofChildEducationandCommunityServicesoftheHongKongInstituteofVocationalEducation,teachingchildrenabouttheoperationofbanks.
BOCHKsponsored“Children’sFinancialManagementSeminarandSurveyFindingsRelease”.Duringtheseminar,weinvitedprofessionalstoshareviewsandvaluableexperienceonhowtocultivatechildrenacorrectattitudetowardsfinancialmanagement.
Environmental Education
Environmentaleducationisanotherkeyfocusofourcorporateresponsibilityinitiative.WepartneredwiththeAssociationforGeoconservation,HongKong(“AGHK”),inestablishingthefirst-ever“HongKongGlobalGeoparkofChina–PrehistoricStoryRoom”,featuringlifeonearthattheBOCTowerinOctober2011.Variousvaluablefossilsandmodelsaredisplayedinaninteractiveway.Morethan64,850visitorsandover360visitingorganisationswererecordedasatMay2012.Wealsosponsorthe“GlobalGeoparkE-Classroom”jointlyorganisedbytheAgriculture,FisheriesandConservationDepartmentandtheAGHK.Thefirst-everE-Classroomprovideslocalandoverseasstudentswithanonlineplatformtolearnmoreaboutgeo-
8.OurCommunity
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BadmintonisapopularsportinHongKongandoneofthesportsinwhichHongKongenjoysanOlympicpresence.HongKongfieldedonemen’ssinglesplayerandtwowomen’ssinglesplayersintheBeijing2008SummerOlympicGames,aremarkableachievementforacity.
WeareaproudpatronofbadmintoninHongKong,andhavedonatedmorethanHK$12millionforthesportinthelast13years,benefitingover920,000participants.
WecontinueoursupportwithadonationofoverHK$4milliontothe“BadmintonDevelopment&TrainingScheme2011-2014”.TheSchemeincludescompetitions,fundays,trainingcourses,rewardprogrammesanddemonstrationsessions,withover80,000peopleparticipatingin2011.
Tofurtherpromotethesignificanceofenvironmentalprotection,theGroupsponsoredthe“PowerPlant”,alarge-scaleinternationaloutdoorsoundandlightexhibitionpresentedbythe39thHongKongArtsFestival.Awiderangeofenvironmentallyfriendlymaterialswereusedinartinstallations,andover23,000visitorswererecordedduringthe21daysofexhibition.
EmbracingLOHAS(LifestylesforHealthandSustainability)canhelpreducethecarbonfootprintinourdailylife.The“LOHASAtelier”setupinChaiWanunderthe“LOHAS@BOCHK”IntegratedEnvironmentalEducationProgrammerecordednearly9,000visitorsduringtheperiodfromNovember2010toMay2011.Morethan2,300and1,000participantstookpartrespectivelyinthe150“LOHASWorkshops”and
the“LOHASCarnival”complementedbyawasterecyclingcompetitiondesignedforthelocalsecondaryandprimaryschoolstudents.In2011BOCHKsponsoredthe“ECOLITYGlobalYouthSummitonSustainability”heldbyAIESEC,withtheaimofencouragingover120globalyouthrepresentativestoformulatecreativegreeninitiativesthroughaBusinessPlanCompetition.
8.8Sports,Artsand CultureTohelpraisepublicinterestinsports,wehavesupportedthe“BankofChinaHongKongSportsStarsAwards”forsixyearsinarowandsetupthe“BestoftheBestHongKongSportsStarsAward”inrecognitionoftheexcellentperformanceofHongKong
athletes.IntheonlinepublicvotingoftheHongKongSportsStarsAwards2011heldin2012,werecordedatotalofover63,000votes.
TheFoundationalsoadvocatesthe“SportforAll”messageinthecommunitythroughsponsorshipofthe“FestivalofSport”from2007formorethan500,000participantsoverthepastsixconsecutiveyears.
For10consecutiveyears,theFoundationhasalsosponsoredthe“HongKongIsland&KowloonRegionalInter-schoolSportsCompetition”,thelargestschoolsportscompetitionofitskindinHongKong.Werecordedover79,000athleteenrolmentsfrom269schools,participatinginmorethan8,400matchesofthiscompetitionin2011.
80,000+
participantsin2011
HK$4million+donationtoBadmintonDevelopment&TrainingScheme2011-2014
8.OurCommunity
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Artandcultureenrichourlifeandenhancecreativity.In2011,theFoundationsupportedthe“DunhuangCultureandPreservationStudySeries”organisedbytheUniversityofHongKong.Ledbyscholarsandexperts,universitystudentsvisitedDunhuangonastudytourtogainadeeperunderstandingofChineseculturalheritage.Twopublic
seminars,students’reportingsessionsandexhibitionswereorganisedwithover2,600participants.
In2011,BOCHKsponsoredthe“HongKongInternationalConductingCompetitionforChineseMusic”tohelpidentifyconductingtalentsandpromotethedevelopmentofChineseorchestralmusic.Inaddition,nearly
1,500peopleparticipatedinthe“ConductorDemystifiedWorkshops”,the“ArtofManagementwithaBatonSharing”SessionsandFinalCompetition.Attheendof2011,BOCHKspeciallypresented“YundiRedRomanceRecital”.Attheconcert,YundiplayeduniquetraditionalChinesemusicontopofChopin’sclassicalpieces.
WahFuEstate-WahKwaiEstateBranch
TheWahFuEstateinHongKongwasbuiltin1967.Itconsistsof18blocksofPublicHousingandseveralschools.WahKwaiEstatewasbuiltin1990andconsistsofsixblocksofPublicHousing.
AcrossWahFuEstateandWahKwaiEstate,thereare10,300apartmentsranginginsizefrom28.3sqmto71.8sqmandapopulationof29,100.
Itisvitalforthecommunitytohaveaccessto
bankingservices,includingcashwithdrawal,moneyexchange,etc.Currently,BOCHKistheonlybankservingtheestates.Theelderlyarethemaincustomersegment,with70%ofthebranchcustomersaged65orabove;10%aredomestichelpers.Beingacommunitybankandhavingconsideredthecharacteristicsoftheresidents,BOCHKendeavourstoprovideproductsandserviceswhichmeetthebankingneedsoftheresidentsintheestates.
Wah Fu and Wah Kwai in numbers
Population 29,100
Apartments 10,300
Apartmentsize 28.3-71.8sqm
BankbranchesinWahFuEstate 1(BOCHK)
Source:HongKongHousingAuthority
8.OurCommunity
8.9 Case Study
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9.EnvironmentalPerformance
TheGroup’sEnvironmentalPolicyoutlinesourapproachtopreventing,managingandwherepossible,reducingtheenvironmentalimpactsgenerated,directlyorindirectly,bytheGroup’sactivities.
Besidescaringforourownenvironmentalimpact,ournewESGlendingguidelinesandSustainableProcurementPolicyalsohelpuspromotebetterenvironmental,socialandgovernancepracticesamongstourcustomersandsuppliers.
Environmental PolicyTheGroupiscommittedtoenvironmentalsustainability.Weminimiseourenvironmentalimpactbyreducingourcarbonfootprint,usingresourcesmoreefficientlyandeffectivelyandpromotingenvironmentallyresponsiblebusinesspractices,servicesandproducts.
OurpolicywasformulatedwithreferencetotheUNEPStatementbyFinancialInstitutionsontheEnvironmentandSustainableDevelopmentandotherfinancialsectorinitiatives.TheseincludetheUnitedNationsPrinciplesforResponsibleInvestment(“UNPRI”)andtheUnitedNationsGlobalCompact(“UNGC”).
Our Environmental ResponsibilityWerecognisethatourbusinesshasdirectandindirectimpactsontheenvironment.Ourobjectiveistomanagetheseimpactssothatwecanminimiseriskstoourbusinessandportfoliosandenhancelong-termstakeholdervalue.
Wesupporttheprecautionaryapproachtoenvironmentalmanagement,whichstrivestoanticipateandpreventpotentialenvironmentaldegradation.
Our pledge Wewillworktowardsintegratingenvironmental
considerationsintoourbusinessoperations,servicesandproducts.
Wewillimplementrigorousenvironmentalprogrammesbasedonenvironmentalmanagementsystemsandaregularprogrammeofreviewingandreportingonrelevantkeyperformanceindicators.
Wewillensurethatthespaceweoccupyisoperatedwiththeobjectiveofbestpracticeenvironmentalperformance.
Wearecommittedtocomplyingwithlocal,nationalandinternationalenvironmentalregulations.
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ESG Lending Criteria
In2010,wereviewedandenhancedourcreditriskpolicyandproceduresincorporatingelementspromotingenvironmentalprotection,energyandemissionsreductionandpublichealthandsafety.Inlinewiththeseprinciples,weconductcreditassessmentstoconsidertheinfluencesofcreditcustomersorcreditprojectstowardssocialand/orecologicalenvironment,andtheirpositiveandnegativeimpactsonsocietyandenvironment.Environmentalandsocialperformanceofourcustomersorcreditprojectsisoneofthefactorsformakingthecreditdecisions.Therelatedcreditriskpolicyandproceduresarereviewedannually.
Energy and Carbon Audit
In2011,theGroupcompletedtheenergyandcarbonauditforourmainbuildings,providingforacomprehensivereviewofthecurrentlevelofcarbonemissionsandenergyconsumption.Thisprovidesafoundationtoestablishindicatorsforfurtherreductionofcarbonemissionsandconservationofenergy.
Inordertobettermeasureourcarbonfootprint,wehavesetupsystemstomeasureenergyconsumption,waterusageandwastegenerationacrossourofficebuildingswhichareourmainsourcesofcarbonemissions.
9.EnvironmentalPerformance
Green Equipment Financing
Weoffera“GreenEquipmentFinancingScheme”throughcollaborationwiththeHKPC.Theschemeencouragescorporatecustomerstopurchaseenvironmentalfriendlyequipmenttoincreasetheirproductivityandoperatingefficiencywhilereducingenvironmentalpollution.BOCHKdonatesHK$1foreveryHK$2,000ofloanstodesignatedgreengroupsviatheHKPCtosupportenvironmentalprotectioninitiatives.
Wealsojointlylaunchedthe“EnergyEfficiencyLoanScheme”withthetwoelectricitycompaniesinHongKongtoprovideloanstocommercialandindustrialcustomersfortheimplementationofenergy-savinginitiativesandencouragethemtoswitchtoenergy-efficientelectricalappliancesandequipment.
9.1EnvironmentalHighlightsin2011
Reductioninelectricity
1.7millionkWh
Recycledmaterialscollected
76,041kg
NumberofsheetsofA4papersaved
4.2million
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Company encourages its shareholders and investors to access corporate communications of the Company through its website. The Company believes that this is also the most efficient and convenient means of communication with shareholders and investors.
Paper use
We procure paper with proven environmental impact reduction or FSC-certified paper approved by procurement committee. Working towards a paperless office, we have reduced our paper use by 4% in 2011, as compared to 2010. In an effort to reduce paper use, we submitted our annual Employer’s Tax Returns in the form of CD-ROMs, resulting in us being awarded Green Employer status by the Inland Revenue Department of the HKSAR Government.
Recycling
Due to the nature of our business, our paper and electronic records may contain sensitive financial and personal information. Therefore, we must take special care with our recycling efforts. Our material recycling is handled through a company certified by the National Association for Information Destruction for Plan-based Operation. This ensures appropriate and proper destruction of sensitive printed documents and computer hard drives.
18,800 m³, of which BOC Tower and BOC Centre accounted for around 17,685 m³ and 1,126 m³ respectively.
9.4 Other Environmental Initiatives and Voluntary Codes
E-statements and Electronic Platforms
The Group launched an e-statement promotion campaign to encourage its customers to register for e-statement services in order to reduce the paper used for printing hard-copy statements. We provide 24-hour e-statement registration service to achieve convenient and paperless operations. To further reduce the environmental impact of our operations, we encourage our customers to manage their finances via Internet Banking and Mobile Banking and switch to e-card services. By the end of 2011, customers using our Internet Banking Service increased by 13% over 2010 and those choosing to receive consolidated statements and investment statements in electronic forms were up 78% and 54% respectively.
The Company’s website provides shareholders with access to important and relevant corporate information on an effective and timely basis. To support the environmental protection, the
9.2 Energy Saving in Key BuildingsEnergy saving initiatives implemented across our office buildings throughout the past year, led to total energy savings of around 1,721,914 kWh, of which BOC Tower, Bank of China Building and BOC Centre accounted for around 668,000 kWh, 59,388 kWh and 230,470 kWh respectively. Energy saving was achieved by the following initiatives:
Improving the air conditioning system of some floors
Better control of air conditioning chillers
Using more efficient lighting tubes and LED lighting
Managing the passenger lifts with zone controls
Maintaining room temperature at 22 ºC - 24 ºC
9.3 Water Saving in Key BuildingsIn addition to the carbon and energy audit, BOCHK conducted an assessment of its water usage in key buildings together with proposed recommendations for reduction. Water saving initiatives, such as washroom equipment improvement implemented across our office buildings throughout 2011 led to total water savings of
9. Environmental Performance
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(1.5mgperlitre)fromourofficefurniturematerialisanotherkeyspecificationforsupplierstocomplywith.
Banqueting Guidelines
IncompliancewiththeadvicesetoutbyWWFHongKong,theGroupformulatedtheBanquetingGuidelinesin2008tostopservingsharkfins,endangeredreefspeciesandblackmossatcorporatebanquets.
9.5Environmental Standardsand SchemesAdopted in2011ManagementSystemCertificateforISO14001(certifiedbyUKAS)
IndoorAirQualityCertificate–ExcellentClass(EPDofHKSARGovernment)
QualityWaterRecognitionSchemeforBuildingsCertificate(WaterSuppliesDepartmentofHKSARGovernment)
HygieneControlManagementSystemsCertificate(SGSHongKong)
Educational DVD
In2011,weproducedaneducationalDVDforinternaltrainingbasedonproprietaryresearchonenvironmental,sustainabledevelopment,low-carboneconomyandbankingissues.Thesevideos,availableonourinternalwebportal,havealsobeenbroadcastacrosstheGroup.TheaimoftheDVDistoraiseawarenessandknowledgeofourstaff,particularlyfrontlinestaffwhomayfacequestionsregardingourenvironmentalpolicies.
Lighting
TheGroupsignedthe“Dimit”CharterorganisedbyFriendsoftheEarthinHongKongtocommittoenergysavingandreductionofcarbondioxideemissions,lightpollutionandlightnuisancebydimmingthelightbulb/fluorescenttubesoftheGroup’spremisesperiodically.Wehavealsoparticipatedintheglobalinitiative“EarthHour”organisedbyWWFtoraisethepublicawarenessoftheglobalclimatechange.
Toxin Reduction
Duetothehealth,climateandairpollutionrisksposedbyvolatileorganiccompounds,weuselowVOCpaintinourbuildingswhenrepairingandrenovating.Wealsoensurelead-freepaintisused,giventheproventoxiceffectsoflead.Lowformaldehydeemission
Weundertakeanumberofrecyclingprogrammes:
1 SourceSeparationofCommercialandIndustrialWasteProgramme,runbytheEnvironmentalProtectionDepartment(“EPD”):mechanismsaresetuptofacilitatewasteseparationatsourceandrecycling,includingpaper,metal,plasticandproperhandlingoftheconstructionwastefromrenovationprojects
2 WastePaperRecyclingProgramme:wastepaperiscollectedbydesignatedbinsandrecycled
3 RechargeableBatteryRecyclingProgramme,runbytheEPD:properdisposalandrecyclingofrechargeablebatteriesareensured
4 ComputerRefurbishmentProject:conservationandenvironmentalprotectionarepromotedamongsttenants
5 TonerCartridgeCollectionProgramme:collectedcartridgesaresentforproperdisposal
6 FluorescentLampRecyclingProgramme:thisschemeorganisesthecollectionofmercury-containinglamps,includingcompactfluorescentlamps(“CFLs”),fluorescenttubesandhighintensitydischargelamps.Collectedlampsaresentfortreatmenttoreducetheenvironmentalriskfromimproperdisposalandtorecoverresources
9.EnvironmentalPerformance
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10.SupplyChainandProcurement
WeareoneofthefewbankswithaprocurementpolicyandCodeofConductforsuppliers.TheGroupformulateditsSustainableProcurementPolicyandaSupplyChainCodeofConductin2011andhasalreadybegunimplementation.
ThefollowingprincipleswillguidetheGroup’sbesteffortstomeetitsobjectives:
Weendeavourtosourceandusemoresustainableandresourceefficientproductsandservices.Forexample,weuseFSC-certifiedpaper,officeequipment/homeapplianceswithbetterenergyefficiency,andcarsincompliancewithlatestEuropeanstandard.
Weadoptanethicalandresponsiblebehaviourindealingwithsuppliers,basedontrustandcooperationtoensurelong-termpartnerships.Forexamplea“GiftandEntertainmentPolicy”isinplaceforallourstafftoabideby.
Weworkwithpeersandpolicymakerstoshareexperiencesandadoptbestpractices.
TheCodeoutlinestheminimumsetofrequirementsforsocial,ethical,corporategovernance,environmentalstandardsandfairlabourconditionsthattheGroupexpectsitssupplierstocomplywith.IthasbeendevelopedtakingintoaccountinternationallabourstandardsandtheprinciplesofdecentworkbasedontheInternationalLabourOrganization(“ILO”)CoreConventions.
TheCodeaddresseslabourandworkingstandardsrequirementsaroundforcedandchildlabour,freedomofassociation,discriminationandharassment,healthandsafety,wages,benefitsandtermsofemployment,workinghoursandenvironment.ItclearlyindicatestherequirementstothesuppliersoftheGroup.
SupplyChainin2011Ourimmediatefocusisonkeysupplierswhichhavethelargestenvironmentalorsocialfootprint.WeaimtoextendthescopeoftheProcurementPolicyforSustainableDevelopmenttoourentiresupplychainovertime.
ToassesstheperformanceofsuppliersbasedonournewCodeofConduct,weconductbothsupplierself-auditandphysicalon-siteaudits.Aself-assessmentquestionnairehasbeendeveloped,whichcoversallrelevantESGissues:
1 Labourmanagementsystems
2 Forced,bonded,indenturedandprisonlabour
3 Childlabour
4 Freedomofassociationandtherighttocollectivebargaining
5 Discrimination,harassmentandabuse
6 Healthandsafety
7 Wages,benefitsandtermsofemployment
8 Workinghours
9 Ethicalstandards:briberyandcorruption
10 Governanceandriskmanagement
11 Environment
12 Compliancemechanism
In2011,theSelf-AssessmentQuestionnairewassentto42companiessupplyingaspecifiedlevelofgoodsandservicestotheGroupinthefinancialyearof2011.TheassessedsupplierswereincompliancewiththeCodeofConduct.
TofacilitatetheimplementationoftheCodeforsuppliers,inthefirstquarterof2011weformulatedacommunicationstrategy,wherewetrainedprocurementstafftocommunicateourstandardandrequirementstooursuppliers.Anynon-compliancewiththeCodemayleadtocontractterminationifaremedialactionplantocomeintocomplianceisnotputintoplacebythesupplier.
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ongKong(Holdings)Lim
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CorporateSocialResponsibilityReport2011
11.1Customer-centricOneoftheWorld’s10StrongestBankandtheTopamongBanksinHongKong(BloombergMarkets)
“OneoftheTop10BanksinHongKongandTop20BankswiththeHighestNetProfits”oftheTop300BanksinAsiain2011(YazhouZhoukan)
ChinaBondHouseoftheYear2011(InternationalFinancingReviewAsia)
InthecapacityofaJointGlobalCoordinatorofICBCAsia’sBaselIIIcompliantRMBsubordinatedbond:BestOffshoreRenminbiOfferingAward2011(FinanceAsia),Investment-gradeBondoftheYear2011(InternationalFinancingReviewAsia)
TopbankintheHongKong-Macausyndicatedloanmarketforsevenconsecutiveyears(BasisPoint)
11.SelectedAwardsandRecognition
ExcellentBrandofRMBBankingServiceoftheHongKongLeaders’ChoiceBrandAwards2012(MetroFinance)
BestSME’sPartnerAwardforfourconsecutiveyears(TheHongKongGeneralChamberofSmallandMediumBusiness)
ThePerson-to-PersonTelemarketingCodeofPracticeCertification,HKCCAGrandAwardoftheYear2011andsevenotherGoldawards(HKCCA)
CustomerServiceExcellenceAward2011–IndividualAward(CounterService)(HongKongAssociationforCustomerServiceExcellence)
TheHKIBOutstandingFinancialManagementPlannerAwards-OutstandingFinancialPlannerGoldAward,OutstandingFinancialPlannerCertificateofMerit(TheHongKongInstituteofBankers)
ISO9001:2008QualityManagementSystemCertificationpresentedtotheTradeServiceCentre(SGSHongKong)
BestRetailBankofthePrimeAwardsforBanking&FinanceCorporations2011(MetroBOX)
CapitalWeeklyServiceAwardsforMobileBanking,andInternetBankingforthreeconsecutiveyears(CapitalWeekly)
BOC Credit Card (International) Limited:
ComplaintsHandlingSystemCertificateofISO10002(HongKongQualityAssuranceAgency)
BOC Group Life Assurance Company Limited:
OneoftheTop3ofthe15thAsiaInsuranceIndustryAward–2011LifeInsuranceCompanyoftheYear(AsiaInsuranceReview,SingaporeandTheReviewWorldwideReinsuranceMagazine,UK)
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BOCH
ongKong(Holdings)Lim
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CorporateSocialResponsibilityReport2011
BestPracticeAwards–BestPracticesinCustomerEngagement(BestPracticeManagementGroup)
AwardforExcellenceinTrainingandDevelopment:AwardforExcellenceinTrainingandDevelopment–Gold,MostInnovativeAward(HongKongManagementAssociation)
11.2Corporate Governanceand InvestorRelations
HongKongCorporateGovernanceExcellenceAward2011–MainBoardCompanies:HangSengIndexConstituentCompanies(TheChamberofHongKongListedCompaniesandtheHongKongBaptistUniversity)
2011BestInvestorRelations–SecondPlaceinthebankingsector,nominatedbytheBuySide(InstitutionalInvestorMagazine)
Top3BestReportingbyaHongKongCompanyAward2011(InvestorRelationsMagazine)
11.3Social Responsibility
AconstituentofHangSengCorporateSustainabilityIndexandHangSeng(MainlandandHK)CorporateSustainabilityIndexrespectivelyfortwoconsecutiveyears,andincludedasaconstituentoftheHangSengCorporateSustainabilityBenchmarkIndex
PartnerinGivingandSharingAward,President’sAward,SilverAwardoftheCorporateandEmployeeContributionProgrammeandtheSecondHighestDonationAwardoftheGreenDayin2011(TheHongKongCommunityChest)
CaringCompanyfornineconsecutiveyears(TheHongKongCouncilofSocialService)
11.SelectedAwardsandRecognition
GoldAwardofEnterpriseswithIntegrityandCredibilityandAwardofJusticeintheFinancialandInsuranceCategory(HangSengManagementCollege)
BOC Credit Card (International) Limited and BOC Group Life Assurance Company Limited:
CaringCompany(TheHongKongCouncilofSocialService)
11.4Environmental Protection
GreenEmployerAward(InlandRevenueDepartmentoftheHKSARGovernment)
BOC Tower, BOC Building, BOC Centre and Bank of China Wanchai Commercial Centre:
ISO14001Certification(UKAS)
CertificateofQualityWaterRecognitionSchemeforBuilding(WaterSuppliesDepartmentoftheHKSARGovernment)
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BOCH
ongKong(Holdings)Lim
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CorporateSocialResponsibilityReport2011
BOC Tower and BOC Centre:
IndoorAirQualityCertificate–ExcellentClass(EnvironmentalProtectionDepartmentoftheHKSARGovernment)
HygieneControlManagementSystemsCertificate(SGSHongKong)
BOC Building:
HKQAACarbonReductionLabel(HongKongQualityAssuranceAgency)
BOC Centre:
CarbonLess4%Certificate(HongKongAwardsfortheEnvironmentalExcellence)
ISO50001:2011EnergyManagementSystemCertification(SGSHongKong)
BOC Group Life Assurance Tower:
IndoorAirQualityCertificate–GoodClass(EnvironmentalProtectionDepartmentoftheHKSARGovernment)
CertificateofQualityWaterRecognitionSchemeforBuilding(WaterSuppliesDepartmentoftheHKSARGovernment)
BOC Credit Card (International) Limited:
CertificateofMeritoftheHongKongAwardsforEnvironmentalExcellenceinthesectorofFinancial,InsuranceandAccountingInstitutions(EnvironmentalCampaignCommittee)
11.5 Innovation andCreativity
OutstandingCorporateImageAward2011(TVBWeekly)
AstridAwards:BOCHK’sCaringHongKong–AHeartWarmingCampaign:SilverAwardfor“Campaigns:CorporateSocialResponsibility”
MercuryAwards:PowerPlant:BronzeAwardfor“SpecialEvents:ExhibitionPromotingEnvironmentalProtection”;HongKongGlobalGeoparkofChina–PrehistoricStoryRoom:SilverAwardfor“SpecialEvents:Exhibition(GeologyFormation)”andHonoursfor“Promotion/Marketing:EarthScience”
11.SelectedAwardsandRecognition
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ongKong(Holdings)Lim
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CorporateSocialResponsibilityReport2011
Corporate Social Responsibility Report 2011
Strength in Community
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