SBI Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 10 Apr 2023 06:01:10 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.3 Case study: How SBI creates economic value for its stakeholders https://sustaincase.com/case-study-how-sbi-creates-economic-value-for-its-stakeholders/ Mon, 10 Apr 2023 05:59:22 +0000 https://sustaincase.com/?p=17625 Founded in 1806 as the erstwhile Bank of Calcutta, State Bank of India (SBI) is the oldest commercial bank in the Indian subcontinent and India’s largest commercial bank in terms of assets, deposits, branches, number of customers and employees. This case study is based on the 2020-21 Sustainability Report by SBI, 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 […]

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]]> Founded in 1806 as the erstwhile Bank of Calcutta, State Bank of India (SBI) is the oldest commercial bank in the Indian subcontinent and India’s largest commercial bank in terms of assets, deposits, branches, number of customers and employees. As India’s largest bank, SBI seeks to generate economic value for all its stakeholders in a resilient, responsible and inclusive manner.  Tweet This!

This case study is based on the 2020-21 Sustainability Report by SBI, 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

Being aware of its sizeable operations and the impact it has on the environment and society has made it more important for SBI to build a strong and consistent narrative on what the Bank stands for, by creating shared value for society and contributing towards the country’s development. In order to create economic value for its stakeholders SBI took action to:

  • create economic value for employees
  • create economic value for capital providers
  • create economic value for the government
  • create economic value for communities

What are the material issues the company has identified?

In its 2020-21 Sustainability Report SBI identified a range of material issues, such as customer satisfaction, natural resource management, employee health and wellbeing, data security and customer privacy. Among these, creating economic value for its stakeholders stands out as a key material issue for SBI.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 SBI engages with:

To identify and prioritise material topics SBI engaged with its stakeholders through the following channels: 

Stakeholder Group                Method of engagement
Employees

 

 ·      Regular meetings with management

·      Appraisal process

·      Online surveys
Investors and Shareholders ·      Webcasts and audio calls

·      Investor conferences
Customers

 

 

 ·      Online and offline feedback mechanism

·      Digital inclusion initiatives

·      Customer satisfaction surveys
Regulatory Bodies ·      Meetings to discuss mandates or regulations
Industry Associations

 

 

 ·      Participation and discussion during trade and industry events

·      Partnership with industry associations for events

·      Regular interaction with industry and association heads
NGOs and Community Members

 

 ·      Project assessment reviews

·      Joint execution of projects

·      Community welfare programmes

·      Meetings with community leaders
Vendors and Suppliers ·      Vendor meets

·      Grievance redressal

What actions were taken by SBI to create economic value for its stakeholders?

In its 2020-21 Sustainability Report SBI reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees
  • In FY 2020-21, SBI paid ₹ 50,936 crores for employee wages and benefits.
  • Creating economic value for capital providers
  • In FY 2020-21, SBI paid ₹ 3,570 crores to capital providers.
  • Creating economic value for the government
  • In FY 2020-21, SBI paid ₹ 151 crores to the government (net cash outgo on account of corporate income tax).
  • Creating economic value for communities
  • In FY 2020-21, SBI paid ₹ 145 crores in community investments.

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:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by SBI, 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://sbi.co.in/documents/17826/24401/140621-Sustainability+Report%28SR%29+year+2020-21.pdf/ba271367-9542-e96a-0589-2968954b2e17?t=1623659643326

Note to SBI: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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