MATERIAL MATTERS

Our materiality determination process is carried out on an annual basis, to review and evaluate issues that are of material importance
to the Bank. These issues include events occurred in the Bank’s operating landscape during the year under review, which could
significantly affect our ability to achieve our strategic ambitions and to create value over the short, medium and long term.
We follow a structured process to identify material topics that influence the Bank’s strategy and operations as outlined below.

OUR MATERIALITY DETERMINATION PROCESS

I D E N T I F Y

A S S E S S

P R I O R I T I S E

M O N I T O R A N D R E P O RT

We assess the relative importance in terms of the impact on the Bank’s strategy and

influence on stakeholder decisions

We continuously monitor the identified material topics taking account of changes in the operating

environment and respond by re-aligning the Bank’s strategy. Topic progress is reported to stakeholders

and the Board of Directors on a regular basis.

Material issues are ranked based on their likelihood and impact

The Operating Landscape

Stakeholder Needs and

Expectations

Risks and Opportunities

OUR MATERIALITY THEMES

The materiality assessment for 2023 was
built on the material topics identified
during the previous year and this year, we
grouped these topics under four broader
themes. The topics were reviewed in
line with changes in operations and
there were no significant changes to the
reporting boundaries. Further, there was
no change in materiality for the material
matters concerned.

Adapting to the

evolving context

Caring for our

people

Enabling

responsible growth

Nurturing a

sustainable business

operation

In line with the principle of double materiality, our Integrated Report extends beyond financial

reporting and includes non-financial performance, risk and opportunities and outcomes

attributable to or associated with our key stakeholders, which have a significant influence on

our ability to create and preserve value, while minimising value erosion.

M2 - 6 Responsible banking
M4 - 3 Climate change and environmental

footprint

M2 - 3 Responsible procurement

M3 - 3 Diversity and equal opportunity

M1 - 1 Macroeconomic developments and

policy trends

M1 - 2 Customer experience

High

Low

F I N A N C I A L M A T E R I A L I T Y ( I N T E R N A L )

IMP

ACT MA

TERIALITY (EXTERNAL)

M1 - 3 Customer privacy and data security
M1 - 4 Digitalisation and technology
M2 - 1 Customer support and business

revival

M2 - 2 Brand reputation
M2 - 4 Anti-bribery and anti-corruption
M2 - 5 Regulatory environment,

governance, and compliance

M3 - 1 Employee health, safety and

wellbeing

M3 - 2 Talent management and labour

relations

M3 - 4 Labour rights (outsourced/contract)
M4 - 1 Financial performance
M4 - 2 Socio-economic contribution and

financial inclusion

MATERIAL MATTERS

Material

topics

Why it is

material to BoC

Our response

Capitals

impacted

Stakeholders

impacted

Contribution

to UN SDGs

M1 : Adapting to the evolving context

1 Macroeconomic

developments and

policy trends

Multifaceted challenges affecting
Sri Lankan economy and related policy
developments have a direct impact
on the financial sector operations,
performance and sustainability.

The operating
landscape
Pages 44 to 48.

Financial

Capital

Manufactured

Capital

Customers

Shareholder and

Fund Providers

Employees

2 Customer

experience

The key differentiator in the intensely
competitive banking sector of
Sri Lanka.

A primary partner
for our customers
Pages 84 to 89.

Social and

Relationship Capital

Customers

3 Customer privacy

and data security

(GRI 418 SASB FN-

CB-230a.2)

Increased thrust towards digitalisation
has heightened vulnerability to
customer privacy and security issues,
thereby requiring organisations to
strengthen IT security frameworks.

A digitally
empowered Bank
Pages 98 to 102.

Social and

Relationship Capital

Customers

4 Digitalisation and

technology

Driving digital excellence is a key
strategic aspiration for the Bank.

A Digitally
Empowered Bank
Pages 98 to 102.

Manufactured

Capital

Customers

Employees

Material

topics

Why it is

material to BoC

Our response

Capitals

impacted

Stakeholders

impacted

Contribution

to UN SDGs

M2 : Enabling responsible growth

1 Customer support

and business revival

(SASB FN-CB-240a.1

SASB FN-CB-240a.2)

We continue to lead the country’s
economic recovery by supporting
business revival through rescheduling/
restructuring facilities, cash flow
monitoring and providing access to
finance.

A primary partner
for our customers
Pages 84 to 89.

Social and

Relationship Capital

Customers

2 Brand reputation

Consistently ranked as Sri Lanka's
No.1 banking brand, and Positive
brand and reputation help to attract
and retain customers and other
stakeholders.

A primary partner
for our customers
Pages 84 to 89.

Intellectual

Capital

Financial

Capital

Human

Capital

Customers

Shareholder and

Fund Providers

Employees

3 Responsible

procurement

(GRI 204)

BoC engages with a large base of
suppliers and ensures responsible
practices in procurement through
propagation of sustainable practices.

A beacon of trust
in everything
we do
Pages 103 to 109.

Social and

Relationship Capital

Natural

Capital

Business

Partners

4 Anti-bribery and

anti-corruption

(GRI 205, 406 SASB

FN-CB-510a.2)

As a state-owned entity, nurturing a
culture of anti-bribery and
anti-corruption is vital in the
responsible creation of shared value.

A winning,
talented and
diverse team
Pages 90 to 97.

Human

Capital

Social and

Relationship Capital

Customers

Employees

Business

Partners

5 Regulatory

environment,

governance and

compliance

(GRI 207, 419, 307)

It is imperative to ensure compliance
on current and emerging regulations
as failure to do so leads to litigation,
regulatory and reputational risks.

Corporate
governance
Pages 111 to 121
Risk and
opportunities
Pages 132 to 148.

Social and

Relationship Capital

Shareholder and

Fund Providers

Employees

Regulators

6 Responsible

banking

Responsible lending practices
underpin BoC’s ability to drive
impactful socio-economic change.

Performance of
business segments
Pages 73 to 82.

Financial

Capital

Human

Capital

Social and

Relationship

Capital

Natural

Capital

Customers

Shareholder and

Fund Providers

Employees Community and

Environment

Material

topics

Why it is

material to BoC

Our response

Capitals

impacted

Stakeholders

impacted

Contribution

to UN SDGs

M3 : Caring for our people

1 Employee health,

safety and wellbeing

(GRI 403)

Promoting employee health,
safety, and well-being enhances
employee productivity and minimises
absenteeism, employee turnover and
hiring costs.

A winning,
talented and
diverse team
Pages 90 to 97.

Human

Capital

Employees

2 Talent management

and labour relations

(GRI 401, 402, 404,

407)

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.

A winning,
talented and
diverse team
Pages 90 to 97.

Human

Capital

Employees

3 Diversity and equal

opportunity

(GRI 405)

Prioritising diversity creates a positive
work environment that supports
the overall goals of the Bank and
contributes to its long-term success.

A winning,
talented and
diverse team
Pages 90 to 97.

Human

Capital

Employees

4 Labour rights

(outsourced/

contract)

(GRI 408, 409)

BoC is committed to provide a safe
and conducive work environment
for all outsourced and contract
employees engaged by the Bank in
addition to the permanent cadre.

A winning,
talented and
diverse team
Pages 90 to 97.

Human

Capital

Employees

M4 : Nurturing a sustainable business operation

1 Financial

performance

(GRI 201)

Critical in ensuring commercial
sustainability and continued value
generation to stakeholders.

Financial review
Pages 68 to 72.

Financial

Capital

Shareholder and

Fund Providers

Employees

2 Socio-economic

contribution and

financial inclusion

(GRI 201, 202, 413,

203

SASB N-CB-240a.3

SASB FN-CB-240a.4)

Promoting socio-economic
empowerment and financial
inclusion open access to new
markets, generates new revenue
streams, improves reputation
and also contributes to economic
development.

A beacon of trust in
everything we do
Pages 103 to 109.

Embedding
sustainability
Pages 61 to 63.

Social and

Relationship Capital

Community and

Environment

Employees

Customers

3 Climate change

and environmental

footprint

(GRI 302, 305

SASB FN-CB-410a.2)

Minimising the environmental
impact can help to meet regulatory
requirements, enhance reputation,
reduce costs, increase revenue and
create new business opportunities.

A beacon of trust
in everything
we do
Pages 103 to 109.

Natural

Capital

Community and

Environment

MATERIAL MATTERS