Oversea-Chinese Banking Corporation (OCBC)

In terms of senior leadership accountability, the responsibility for sustainability issues within Oversea-Chinese Banking Corporation lies with the board. Moreover, the bank has an environmental, social, and governance (ESG) risk assessment process where it describes its ESG due diligence and monitoring with borrowers as well as the process of escalation to the reputational risk Review. Additionally, Oversea-Chinese Banking Corporation identified and prioritised its 15 material ESG factors through a materiality assessment process which included an annual review, gap analysis, and consultation with external stakeholders. Oversea-Chinese Banking Corporation discloses also a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.

No leading practices were identified for the Oversea-Chinese Banking Corporation in the respecting planetary boundaries measurement area.

Oversea-Chinese Banking Corporation discloses the proportion of women in its total direct operations workforce for each employee category. The financial institution discloses the amount of finance it directs towards black women-owned businesses and SMEs. Moreover, the bank has a grievance mechanism accessible to all workers, all external individuals, and communities to raise human rights complaints or concerns. Additionally, Oversea-Chinese Banking Corporation has a policy prohibiting bribery and corruption and a mechanism for reporting related concerns. Moreover, the bank discloses a global tax strategy.

Oversea-Chinese Banking Corporation could link the remuneration of its executive or management teams to sustainability performance criteria. Although the subsidiary PT. Bank OCBC NISP Tbk has been a signatory of ’s Empowerment Principles, there is no evidence of a public commitment to gender equality and women’s empowerment at the group level. Moreover, women are underrepresented on the board of directors where only three out of twelve board members are women. To improve its performance on gender equality, the bank could reach at least 40% female representation in senior leadership positions and disclose how it addresses gender pay gaps. Although it describes its 2021 transaction risk assessment, Oversea-Chinese Banking Corporation can provide evidence of how the ESG due diligence is applied in practice for all its financing activities.

Oversea-Chinese Banking Corporation could disclose a target to reach net-zero financed emissions by 2050 and the key sectors it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. The bank discloses that it has financed S$25 billion in sustainable finance to date. However it has an opportunity to improve by disclosing the proportion of ‘sustainable finance’ that is being directed toward climate solutions as well as related time-bound targets. Regarding nature and biodiversity, no evidence was found that Oversea-Chinese Banking Corporation is committed to minimising its negative impacts or financing regenerative solutions.

Oversea-Chinese Banking Corporation could disclose publicly available policy statements committing it to respect human rights, the ILO core labour rights, and the health and safety of workers. Moreover, it has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. Oversea-Chinese Banking Corporation discloses the ages of its board and overall employees but could provide this information for each employee category. To provide transparency on financial inclusivity, the bank has an opportunity to disclose the amount of finance directed towards low-income developing countries.