Siam Commercial Bank Public Company Limited (SCB) is a leading universal bank and the first local bank that has been part of the Thai society for 114 years. SCB creates and offers end-to-end financial solutions to fulfill the needs of all groups of customers and has identified an approach to reduce pollution resulting from logistics and commuting, while collaborating with suppliers to improve their environmental performance through green procurement practices.
This case study is based on the 2020 Sustainability Report by SCB, 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.Tweet This! In order to promote environmental sustainability among its suppliers SCB took action to:
- promote eco-friendly event organisation
- improve suppliers’ environmental performance
- promote continuous process improvement and communication
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With this case study you will see:
- Which are the most important impacts (material issues) SCB has identified;
- How SCB proceeded with stakeholder engagement, and
- What actions were taken by SCB to promote environmental sustainability among its suppliers
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What are the material issues the company has identified?
In its 2020 Sustainability Report SCB identified a range of material issues, such as corporate governance and risk management, customer experience, data governance and cyber security, financial inclusion. Among these, promoting environmental sustainability among its suppliers stands out as a key material issue for SCB.
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 SCB engages with:
|Stakeholder Group||Method of engagement|
|· Customer relationship-building activity
· Information sessions on SCB financial products and services
· Providing financial advice and knowledge to customers through online media, branch network and other electronic channels
· Customer satisfaction surveys through telephone, questionnaire and electronic channels
· Complaint and service channels through Customer Centre, Branch network and SCB Easy app
|· Meetings and online channels for policy and news announcement
· Employee meetings, seminars and CSR activities
· Performance evaluation
· Employee engagement survey
· Employee development programme
· Employee recognition programme
· Employee hotline
|· Annual general meeting
· Extraordinary general meeting
· 56-1 Report
· Annual report (Form 56-2)
· Press release
· Quarterly financial report
· Investor meeting/conference
· Investor call
· Equity analyst meeting
· Global roadshow event
|Society and Environment
|· Projects and initiatives by SCB and the Siam Commercial Bank Foundation
· Community and social surveys
· Community engagement activities
|· Assign Compliance function to serve as SCB’s regulatory liaison
· Attend meetings and hearings on regulatory policies and guidance from relevant authorities
· Attend forums on regulatory compliance
· Seek feedback and guidance on regulatory compliance
· Offer feedback on regulations through public hearings
· Prepare and provide support for regulatory audit
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics SCB engaged with its stakeholders through in-depth interviews.
In its 2020 Sustainability Report SCB reports that it took the following actions for promoting environmental sustainability among its suppliers:
- Promoting eco-friendly event organisation
- In 2020, SCB required event organisers and suppliers to organise events or activities on the bank’s premises to comply with environmental and safety measures consistent with the bank’s procedures. Those organising events and selling goods within SCB’s premise must utilise only eco-friendly and non-polluting products. Organisers must also sort waste into general, recycled, and organic waste before disposing of it at a designated location. Non-compliance incurs penalties as specified in procedures.
- Improving suppliers’ environmental performance
- SCB works closely with its suppliers to continuously improve their environmental performance by specifying procurement procedures which consider environmental impacts. Every vendor is required to acknowledge the SCB Supplier Code of Conduct before commencing work with the bank. This document specifies legal compliance on the basis of human rights and environmental management. To better understand vendors and to more effectively manage supply chain sustainability, SCB classifies suppliers into different groups based on their procurement value, product, and service type, and strategic importance to facilitate supplier management and regulatory compliance.
- Promoting continuous process improvement and communication
- In 2020 SCB improved its procurement process and assessed supplier efficiency in terms of environmental prudence by specifying environmental and safety requirements for new supplier selection. Assessment results are used as input into future hiring decisions. This practice is communicated during the annual Vendor Communication Day event, which had more than 185 participants in 2020. Starting in June 2020, 100% of new suppliers passed environmental and safety assessments.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.
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This case study is based on published information by SCB, 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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