Material issues are significant internal and external concerns that can impact the Bank's ability to create value and meet the needs of stakeholders. The Bank follows a structured process to identify material topics that influence its strategy and operations, as outlined below:
The materiality assessment for 2022 was built on the material topics identified in the previous year. The Bank reviewed the scope of its material topics in line with changes in its operations and determined that there were no significant changes to its reporting boundaries. In the analysis, BoC revisited the 2021 material topics to confirm their relevance to the Bank and the operating conditions.
One of the two new topics added in 2020, customer support and business revival, continues to be material due to the ongoing implications of economic crisis. Meanwhile, macroeconomic developments and policy changes, which have been further elevated in materiality, remain among the most significant matters of 2022 due to the country's prevalent economic complexities and uncertainties.
Material Topics
| Stakeholder group | Relevant material topic | Why it is material to BoC | Our response to the material topic during the year | Change in materiality |
Corresponding reporting standards (GRI, CSE-ESG Guidance, SASB Standards for Commercial Banks) | Contribution to UN SDGs |
Customers |
Customer support and business revival |
The Bank has continued to lead the country’s economic recovery by supporting business revival through rescheduling/restructuring facilities, cash flow monitoring and access to finance. | Refer: Business Line Reviews.
Stakeholder Outcomes: Customers |
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SASB FN-CB-240a.1 Financial inclusion and capacity building
SASB FN-CB-240a.2: Financial inclusion and capacity building |
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Customer experience |
Customer service has emerged as the key differentiator in the intensely competitive banking sector of Sri Lanka |
Refer: Business Line Reviews.
Stakeholder Outcomes: Customers |
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Customer privacy and data security |
Increased thrust towards digitisation has heightened vulnerability to customer privacy and security issues, thereby requiring organisations to strengthen IT security frameworks | Refer: Business Line Reviews.
Stakeholder Outcomes: Customers |
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GRI 418: Customer privacy
SASB FN-CB-230a.2: Data security |
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Responsible banking |
Responsible lending practices underpin BoC’s ability to drive impactful socio-economic change | Refer: Business Line Reviews.
Stakeholder Outcomes: Customers Stakeholder Outcomes: Community and Environment |
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Digitalisation and technology |
Driving digital excellence is a key strategic aspiration for the Bank | Refer: Business Line Reviews.
Stakeholder Outcomes: Customers |
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| Employees
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Employee health and safety |
During the tail end of the pandemic in early 2022 health and safety remained an area of concern. Ensuring employee well-being in a high inflation environment was another point of concern. | Refer: Stakeholder Outcomes: Employees | |
GRI 403: Occupational health and safety |  |
Talent management and labour relations |
Employees are vital in driving corporate strategy and are one of the Bank’s most valuable assets, underscoring the importance of managing employee related issues effectively. | Refer: Stakeholder Outcomes: Employees |  |
GRI 401: Employment
GRI 402: Labour/Management relations GRI 404: Training and education GRI 407: Freedom of association and collective bargaining |
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Diversity and equal opportunity |
BoC is committed to creating a diverse and inclusive workforce in which employees can thrive | Refer: Stakeholder Outcomes: Employees | |
GRI 405: Diversity and equal opportunity | ||
Labour rights (outsourced/contract) |
BoC is committed to providing a safe and conducive work environment for all outsourced and contract employees engaged by the Bank | Refer: Stakeholder Outcomes: Employees | |
GRI 408: Child labour
GRI 409: Forced or compulsory labour |
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Community and environment
 |
Macroeconomic developments and policy trends |
Multifaceted challenges affecting Sri Lanka’s economy and related policy developments have a direct impact on the financial sector’s operations, performance and sustainability. | Refer: Operating Context PESTEL Analysis Stakeholder Outcomes: Community and Environment |
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Climate change and environmental footprint |
BoC is committed to driving down the environmental footprint of its operations while propagating sustainable practices through green lending | Refer: Stakeholder Outcomes: Community and Environment | |
GRI 302: Energy
GRI 305: Emissions SASB FN-CB-410a.2: Incorporation of ESG factors in credit analysis |
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Brand reputation |
Consistently ranked as Sri Lanka’s No.1 banking brand, the BoC brand is a key source of competitive advantage, underpinning its strong market position | Refer: Business Line Reviews.
Stakeholder Outcomes: Customers |
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Shareholder and fund providers
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Financial performance |
Critical in ensuring commercial sustainability and continued value generation to stakeholders | Refer: Financial Review
Business Line Reviews Shareholder Outcomes: Stakeholder and Fund Providers |
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Regulators
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Socio-economic contribution and financial inclusion |
As a state-owned bank, BoC’s role extends beyond traditional banking to drive financial inclusion and socio-economic empowerment across the island | Refer: Stakeholder Outcomes: Community and Environment | |
GRI 201: Economic performance
GRI 202: Market presence GRI 413: Local communities GRI 203: Indirect economic impacts SASB N-CB-240a.3: Financial inclusion and capacity building SASB FN-CB-240a.4: Financial inclusion and capacity building |
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Regulatory environment, governance and compliance |
A strong compliance culture and robust corporate governance practices underpins BoC’s value creation process | Refer: Operating Context
PESTEL Analysis Corporate Governance report Risk Management report Stakeholder Outcomes: Regulators |
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GRI 207: Tax
GRI 419: Socio-economic compliance GRI 307: Environmental compliance |
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Business partners
 |
Responsible procurement |
BoC engages with a large base of suppliers and ensures responsible practices in procurement through propagation of sustainable practices | Refer: Stakeholder Outcomes: Business Partners |
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GRI 204: Procurement practices |  |
Bribery and anti-corruption |
As a state-owned entity, nurturing a culture of anti-bribery and anti-corruption is vital in the responsible creation of shared value | Refer: Stakeholder Outcomes: Business Partners Corporate Governance report Embedding Sustainability |
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GRI 205: Anti-corruption
GRI 406: Non-discrimination SASB FN-CB-510a.2: Business Ethics |