Case study: How UOB creates economic value for its stakeholders
United Overseas Bank Limited (UOB) is rated as one of the world’s top banks, with a global network of 500 branches and offices across 19 countries in Asia Pacific, Europe and North America. Creating sustainable value for all its stakeholders over the short, medium and long term, is integral to UOB’s corporate purpose. Tweet This!
This case study is based on the 2022 Sustainability Report by UOB, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
In 2022, UOB generated a total income of $11.6 billion, of which it distributed $8.5 billion in payments that flowed to stakeholders, such as employees, suppliers, investors, authorities and local communities. In order to create economic value for its stakeholders UOB took action to:
- create economic value for employees
- create economic value for authorities
- create economic value for shareholders
- create economic value for suppliers
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) UOB has identified;
- How UOB proceeded with stakeholder engagement, and
- What actions were taken by UOB to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report UOB identified a range of material issues, such as data privacy and governance, regulatory compliance, information security, talent development and inclusion. Among these, creating economic value for its stakeholders stands out as a key material issue for UOB.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups UOB engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · CEO communications to all employees on regular and topical subjects (quarterly, and as and when appropriate) · Head of Group Human Resources’ communications to all employees on employee-related initiatives (as and when appropriate) · One-on-one sessions with managers (regularly) · Online and mobile employee portal with informative, collaborative and social features (ongoing) · Performance reviews (half-yearly) · Employee engagement surveys (annually) · Town hall meetings (annually) · Training and workshops (ongoing) · ‘Speak Up’ initiative for employees to raise issues for action and resolution (ongoing) |
| Community
| · Support of national movements to build inclusive communities (ongoing) · Fundraising events (annually) · Regional art competitions (annually) · Collaborations with customers, business partners, art institutions, social service organisations and Community Development Councils (ongoing) · Art roadshows and outreach programmes (as and when appropriate) · Education programmes for children (ongoing) · Financial literacy programmes (as and when appropriate) · Donations in cash or in kind to support causes related to art, children and education (as and when appropriate) · Employee volunteerism (ongoing) |
| Customers
| · Interactions at branches (ongoing) · Face-to-face meetings (ongoing) · Contact Centre services (ongoing) · Post-transaction customer surveys (ongoing) · Marketing and advertising campaigns (ongoing) · Website and social media channels and campaigns (ongoing) · Events and seminars, including workshops on sustainability (as and when appropriate) |
| Suppliers
| · Requests for quotations and proposals (as and when appropriate) · Vendor briefings (as and when appropriate) · Purchase agreements (as and when appropriate) · Performance reviews (annually or prior to contract expiry) |
| Governments and regulators
| · Regular meetings and engagement (as and when appropriate) · Consultations with regulatory bodies (as and when appropriate) · Annual and sustainability reports (annually) · Audit reports (ongoing) |
| Media
| · News releases and media statements (ongoing) · In-person and online conversations (ongoing) · Media briefings and conferences (as and when appropriate) · Media interviews (as and when appropriate) · Social media platforms (ongoing) · Economic and market research reports and white papers (as and when appropriate) |
| Other financial institutions, and industry and trade associations | · Participation in industry associations (ongoing) · Industry-wide workgroups and meetings (as and when appropriate) · Forums and conferences (as and when appropriate) |
| NGOs
| · Face-to-face meetings and conference calls (as and when appropriate) · Conferences and seminars (as and when appropriate) · Cooperation in joint programmes (ongoing) |
| Investors and analysts
| · Financial reporting and results briefings (quarterly) · Periodic meetings with rating agencies (at least once a year) · General meetings with shareholders (annually) · Annual and sustainability reports (annually) · SGXNet announcements (as and when appropriate) · Presentations, conferences and roadshows (ongoing) · UOB Corporate Day (annually) · Feedback from analyst surveys (ongoing) · Feedback from institutional investors and analysts on UOB‘s ESG performance (ongoing) |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics UOB engaged with its stakeholders through surveys and one-on-one interviews.
What actions were taken by UOB to create economic value for its stakeholders?
In its 2022 Sustainability Report UOB reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, UOB paid $3.0 billion in employee compensation and benefits.
- Creating economic value for authorities
- In 2022, UOB paid $1.2 billion in income tax.
- Creating economic value for shareholders
- In 2022, UOB paid $2.1 billion in dividends to shareholders.
- Creating economic value for suppliers
- In 2022, UOB paid $2.2 billion in purchases from suppliers.
- Creating economic value for the community
- In 2022, UOB paid $9.2 million in in monetary and in-kind contributions to the community.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by UOB, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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