Case study: How BEA creates economic value for its stakeholders
Incorporated in Hong Kong in 1918, the Bank of East Asia, Limited (“BEA”) is dedicated to providing comprehensive wholesale banking, personal banking, wealth management, and investment services to customers in Hong Kong, Mainland China, and other major markets around the world. It is through diligently meeting society’s evolving financial needs that BEA creates long-term value for its stakeholders, retains customers, and develops its business in Greater China and beyond.
This case study is based on the 2021 Environmental, Social, and Governance Report by BEA, 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.
Creating and distributing sustainable value responsibly to all its stakeholders is a top priority for BEA. Tweet This! In order to create economic value for its stakeholders BEA took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for governments
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) BEA has identified;
- How BEA proceeded with stakeholder engagement, and
- What actions were taken by BEA to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Environmental, Social, and Governance Report BEA identified a range of material issues, such as business ethics, cybersecurity and data privacy, treating customers fairly, talent attraction and retention. Among these, creating economic value for its stakeholders stands out as a key material issue for BEA.
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 s 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 BEA engages with:
Stakeholder Group | Method of engagement |
Customers | · Customer feedback channels · Customer events · Sustainability communications via the Bank’s website and social media |
Shareholders
| · Annual General Meetings · Corporate communications · Communications with ESG rating agencies and ESG indices representatives |
Regulators
| · Participation in industry events · Communications with regulator representatives · Responding to information requests |
Employees
| · Bank-wide and division town halls · Focus groups · Employee surveys · Staff e-Newsletters · Sustainability communications via BEA’s intranet |
Society
| · BEA Foundation programmes · Staff volunteering · Meetings with NGOs |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics BEA engaged with its stakeholders through daily operations and targeted outreach.
What actions were taken by BEA to create economic value for its stakeholders?
In its 2021 Environmental, Social, and Governance Report BEA reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, BEA paid HK$ 5,521 million for employee compensation and benefits.
- Creating economic value for providers of capital
- In 2021, BEA paid HK$ 2,856 million to providers of capital.
- Creating economic value for governments
- In 2021, BEA paid HK$ 419 million to the government in Hong Kong, HK$ 4 million to the government in Mainland China and HK$ 249 million to governments in other markets.
- Creating economic value for society
- In 2021, BEA paid HK$ 12 million in cash donations to charitable organisations.
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 BEA, 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:
https://www.hkbea.com/pdf/en/about-bea/Sustainability/ESG%20Reports/BEA_2021%20ESG%20Report_ENG.pdf
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