Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Digitalization
• Customer Experience
• Financial Inclusion
• Responsible Financing
• Sustainable Financing
• Sustainability-themed Products and Investing
• Environmental Footprint
• Strong Governance
• Fair Dealing
• Combating Financial Crimes and Cyber Threats
• Employee Health, Safety and Wellbeing
• Inclusive Workforce
• Talent Management
• Community Development
• Economic Contributions

Environmental Achievements

• Achieved Green Mark Platinum Award for Data Centre and Green Mark Gold Award for OCBC Centre, OCBC Centre East, OCBC Centre South, OCBC Tampines Centre One and OCBC Tampines Centre Two.
• Achieved Green Mark Certification for Bank of Singapore Centre.
• Reduced energy consumption by 11.9% between 2018 and 2020 at OCBC Wing Hang Tower.
• Reduced paper usage by 16% year-on-year and 44% since 2016.
• Reduced water usage by 19% in 2021 compared to 2020.

Social Achievements

• Launched a suite of sustainability training modules for all 30,000 employees.
• Supported nearly 200,000 individuals in 2021 through community initiatives.
• Empowered 1,000 women entrepreneurs with IDR 862 billion in new loans in Indonesia.
• Supported two community shops providing daily provisions to 1,500 needy families in Singapore.
• Launched FRANKpreneurs program, a 16-week summer internship for graduates.

Governance Achievements

• Established the OCBC Culture and Conduct Dashboard to measure ethics and good conduct.
• Launched the OCBC Group Culture and Conduct Programme Framework.
• Launched OCBC Group Conflicts of Interest Policy.
• Enhanced whistleblowing programme, making it accessible to the public.
• Implemented a robust cyber defense and monitoring capabilities to strengthen IT system security.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Increased risks of cyber-attacks and data breaches.
• Heightened risks posed by fraud and scam incidences.
• Managing climate-related risks and opportunities.
• Maintaining operational resiliency amid the COVID-19 pandemic.

Mitigation Strategies

• Enhanced digital banking proposition to reduce social exposure.
• Allocated more resources to digital platforms to simplify and enhance banking experience.
• Implemented robust cyber defense and monitoring capabilities.
• Implemented the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
• Developed a 5-year Climate Strategy to support actions in building a sustainable future.
• Enhanced operational resiliency through pandemic-resilient workforce, environmental hygiene, and transforming work arrangements.

Supply Chain Management

Responsible Procurement

• OCBC’s Supplier Code of Conduct
• ESG criteria in procurement evaluation

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Growth opportunities in sustainable finance

Reporting Standards

Frameworks Used: GRI Standards: Core Option, GRI G4 Financial Services Sector Disclosures, SASB for commercial banks, UNGC

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• 3
• 7
• 8
• 9
• 11
• 13

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Electric Vehicle portfolio on RoboInvest platform
• Eco-Care Home, Renovation and Electric Vehicle Loans

Awards & Recognition

• ASEAN SME Bank of the Year
• Best Retail Bank, Singapore
• Number 1 in Customer Satisfaction Index of Singapore Survey
• Pinnacle Award at The Tripartite Alliance Awards 2021
• Corporate Excellence and Resilience Award
• Runner up of the Singapore Corporate Governance Award
• ASEAN’s Top 20 Listed Companies for Corporate Governance
• United for Humanity Award
• Singapore Children’s Society Gold Award
• Excellence in CSR Strategy Silver Award
• Best Branch Digitisation Implementation
• First bank in Southeast Asia to adopt the Poseidon Principles
• AA rating for MSCI ESG Ratings Assessment
• Special Award for Sustainable Energy Financing 2021
• Best HR team and Best HR programme at HRFlag’s 2021 Flag Awards
• Fair and Progressive Employment Practices
• Work-Life Excellence
• #1 LinkedIn Top Companies (Singapore)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Financial Inclusion
• Community Development
• Strong Governance
• Fair Dealing
• Financial Crimes Prevention
• Cyber Security

Environmental Achievements

• Achieved carbon neutrality in operational emissions for 2022 through building and space optimization, innovative cooling technologies, and carbon offset projects.
• Invested over S$25 million over four years to reduce carbon footprint in Singapore, Malaysia, and Greater China, reducing approximately 10,000 tonnes of carbon emissions.
• Supported two mangrove conservation projects resulting in the growth of 18,000 mangrove trees.
• Contributed S$3 million to the OCBC Mangrove Park to enhance mangrove growth and conservation.

Social Achievements

• Launched Sustainability Learning Series and Eco-versity certificate program to upskill employees on sustainability.
• Employees contributed over 1800 hours of skills-based volunteering in Singapore and Malaysia.
• Donated S$2.39 million and contributed over 65,000 volunteering hours to address societal gaps.
• Launched the first community urban farm in Singapore's Central Business District, expected to produce 140 kg of vegetables annually.

Governance Achievements

• Established the Board Sustainability Committee on 7 February 2023.
• Launched the Culture Stewardship Programme to empower younger colleagues in building a stronger OCBC culture.
• Launched the Best Execution Policy to ensure legal compliance and fair dealing.
• Formed an Anti-Scam unit in collaboration with over 80 institutions.

Climate Goals & Targets

Environmental Challenges

• Climate change-related risks (transition and physical risks) impacting clients and the bank's portfolio.
• Evolving ESG risks impacting business activities.
• Growing impact of human-induced climate change.
• Talent crunch in the workforce.

Mitigation Strategies

• Integrated climate risk management into Responsible Financing Framework and Policies.
• Enhanced coal-related lending prohibitions to phase out exposures to coal-fired power plants and thermal coal mines.
• Developed a systematic plan to achieve net zero by 2050, with an interim target for 2030.
• Launched the OCBC IGNITE apprenticeship and STEM Internship Programme to attract and nurture young talent.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Changes in public sector policies
• Changes in consumer demand
• Increase in costs due to carbon pricing

Opportunities

• Development of energy-efficient products
• Growth in sustainable finance

Reporting Standards

Frameworks Used: SGX Listing Rules 711A and 711B, SGX Practice Note 7.6, SASB Standards for Commercial Banks, TCFD Recommendations, GRI Standards

Certifications: BCA Green Mark

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 13

Initiatives contribute to these goals through various programs and strategies detailed in the report.

Sustainable Products & Innovation

• Eco-Care Home Loans
• OCBC RoboInvest with ESG ratings
• Sustainable financing instruments (green loans, green bonds, sustainability-linked loans)

Awards & Recognition

• Numerous awards from Singapore Police Force for anti-scam efforts
• Best SME Bank in Asia-Pacific 2023
• ASEAN SME Bank of the Year
• Best Bank for Employee Experience
• Runner up of the Most Transparent Company Award
• Bronze for the Best Managed Board Award

Environmental Metrics

ESG Focus Areas

• Climate Action
• Responsible Financing
• Sustainable Financial Solutions
• Talent Management and Wellbeing
• Workplace Diversity
• Community Development
• Cybersecurity and Data Protection
• Fair Dealing
• Financial Crime Prevention
• Governance and Culture

Environmental Achievements

• Achieved carbon neutrality for our banking operational emissions by actively reducing our emissions and offsetting unabatable and residual emissions with carbon credits
• Received BCA Green Mark award for OCBC Wisma branch and OCBC Tampines branch
• Completed installation of electric vehicle charging points at most of the major Group-owned commercial buildings in Singapore, Malaysia, Indonesia and China
• Achieved 7.9% year-on-year reduction in office paper usage within the Group offices for business operations

Social Achievements

• Initiated Grow Your Way Expedition, a skills-first mobility initiative, resulting in 12,000 activity completions by employees and a 75% rise in career awareness within the Bank
• Embarked on two long-term volunteering projects, Families100 by OCBC and Care Corner ElderConnect supported by OCBC, involving more than 1,200 volunteers to provide targeted assistance to 100 families and 3,500 seniors respectively in Singapore
• Launched our inaugural non-conventional talent hire initiative in Singapore
• Empowered over 1,300 women entrepreneurs through our Women Warriors Programme in Indonesia

Governance Achievements

• Established the Board Sustainability Committee to strengthen our sustainability oversight
• Appointed our first Group Chief Sustainability Officer to strengthen our sustainability leadership and governance
• Rolled out a set of first-to-market anti-malware security measures on the OCBC digital app, preventing customer losses of over $2 million in Singapore

Climate Goals & Targets

Environmental Challenges

• Challenges in obtaining accurate and complete data in the calculations of financed emissions.
• Data challenges in the Real Estate sector due to lack of direct data and divergence between national statistics and reference pathways.
• Challenges in decarbonising the Aviation sector due to lack of commercially viable decarbonisation solutions.
• Challenges in the Shipping sector due to the availability of commercially viable low-carbon alternatives.

Mitigation Strategies

• Deepening collaboration with clients to enhance transition advisory capabilities and obtain direct data.
• Increased financing of greener assets and engagement with clients on transition plans.
• Working with clients to implement measures to reduce emissions (SAF, fleet renewal, retrofitting, route optimization, CORSIA).
• Active engagement with clients to improve AER by upgrading vessels and adopting low-carbon fuels.

Supply Chain Management

Responsible Procurement

• Prioritising sourcing from local suppliers to support the economy in our core markets.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Changes in consumer demand
• Increase in costs due to carbon pricing

Opportunities

• Development of energy-efficient products
• Growth in renewable energy sector

Reporting Standards

Frameworks Used: SGX Listing Rules 711A and 711B, SGX Practice Note 7.6, GRI Standards, GRI G4 Financial Services Sector Disclosures, SASB Standards for Commercial Banks, TCFD Recommendations, UNGC Ten Principles

Certifications: Cyber Trust Mark (Advocate)

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• 5
• 7
• 8
• 9
• 11
• 13

Initiatives contributing to gender equality, clean energy, decent work, innovation, sustainable cities, and climate action.

Sustainable Products & Innovation

• OCBC 1.5°C loan
• SME Solar Programme
• eBiz Account-i

Awards & Recognition

• AA rating for MSCI ESG Ratings Assessment
• FTSE4Good constituent
• iEdge Singapore ESG Leaders Index constituent
• Numerous other awards listed on page 6