Melody Wickramanayake, Vice President – Legal of NDB Bank and Chairperson of the NDB CS Committee, tells us why the bank’s CSR strategy aligns with its broader ESG objectives and why this is crucial. At NDB, sustainability is more than just corporate social responsibility (CSR); it’s an integral part of the bank’s business model, woven into the fabric of our Environmental, Social, and Governance (ESG) objectives, she explains in this interview. Excerpts are as follows:
Why is aligning CSR and ESG with the banking business so important?
This approach is fundamental to our vision of creating shared value for all stakeholders. Our commitment spans several key areas, including ethical business practices, robust governance, reducing our carbon footprint, nurturing a culture of sustainability, and driving community-responsive initiatives for national sustainable development.
The integration of our CSR initiatives with broader ESG goals is vital to our approach to sustainable banking. We strive to embed sustainability in every aspect of our operations, ensuring we uphold ethical standards, protect the environment, and actively engage with our communities.
This strategy stems from our deep understanding of the interplay between economic, social, and environmental factors. By acknowledging and responding to these interconnected elements, we enhance our adaptability and resilience.
This proactive stance not only helps us mitigate risks associated with these factors but also positions us well to tackle emerging challenges and surpass regulatory expectations.
By aligning our CSR efforts with ESG principles, NDB solidifies its identity as a socially conscious financial institution. In a world where businesses are increasingly evaluated on their impact beyond profit, our dedication to sustainability bolsters our brand reputation and fosters trust among stakeholders.
Could you highlight recent CSR initiatives that NDB Bank has undertaken and share the tangible impact it has had on the community or a specific cause?
At NDB, championing inclusivity is key to our sustainability agenda, exemplified by our support for the differently-abled. This year, we proudly sponsored Sri Lanka’s first-ever ‘Code of Ethics’ Book for Sign Language Interpreters, a critical step towards legal recognition and support for the Deaf community, impacting approximately 500,000 individuals. Developed through a community-based consultation model, with inputs from diverse stakeholders, this book is a precursor to the proposed Sign Language Act in Parliament. In collaboration with the Department
of Social Services (DSS), we launched this book on International Sign Language Day 2023, establishing guidelines for professional conduct in sign language interpretation. This initiative aligns with our goal of creating an inclusive society.
Additionally, the DSS’s first ‘Sign Language Oratory Competition’ in Sri Lanka, sponsored by the Bank, showcased the talents of Deaf individuals, emphasizing the importance of sign language and environmental protection. Complementing these efforts, we recently donated essentials to 40 differently-abled individuals at the Mother Charitable Foundation (MCF), supporting their creativity and educational development. MCF’s mission to foster hope and independence aligns with our vision of sustainable shared value. Furthermore, we collected and donated used men’s
clothes from NDB employees to MCF for the National Mental Hospital, demonstrating our commitment to diverse community needs.
What measures or indicators does NDB Bank use to assess the effectiveness of its CSR efforts in contributing to social and environmental sustainability?
We employ a comprehensive strategy to evaluate the effectiveness of CSR activities in promoting social and environmental sustainability. Key to this approach is gathering community feedback, which serves as an essential gauge of the real-world impact of its initiatives. The bank places high importance on quantifiable social and environmental impact metrics, allowing for a data-driven assessment of its sustainability projects.
Employee feedback is another critical component, ensuring that CSR initiatives resonate with the bank’s internal culture and meet the workforce’s expectations and values. Additionally, we engage in responsible business awards, using these platforms to benchmark its projects against industry standards and peers, thereby gaining external validation for its CSR efforts.
In our commitment to environmental sustainability, NDB Bank has partnered with the Sri Lanka Climate Fund to calculate and verify its greenhouse gas (GHG) emissions inventory, demonstrating a proactive stance in understanding and mitigating its environmental impact.
As a major financier of renewable energy projects in Sri Lanka, these indicators are also crucial for tracking the bank’s progress towards fostering a sustainable and greener future.
How does NDB Bank engage its employees and stakeholders to actively support and participate in CSR activities that promote ESG goals?
At NDB, sustainability is not just a policy but a strategic priority deeply embedded in our business ethos. We are committed to integrating sustainability into all business decisions and activities. A key part of this commitment involves fostering ‘Responsible Behaviour’ among our
employees, ensuring that sustainability is more than a concept—it’s a way of life.
Our ‘Employee Volunteerism Programme’ is a testament to this commitment. Through this initiative, we empower and encourage NDB employees to volunteer and contribute meaningfully to society. These volunteer activities are skillfully balanced with daily work responsibilities,
showcasing our employees’ dedication to driving positive changes in both the environment and society. This, in turn, significantly bolsters the bank’s overarching sustainability objectives.
We also strive to involve other key stakeholders, including customers and suppliers, in our CSR and sustainability initiatives, believing that collective effort is crucial for meaningful impact.
To further embed our commitment to Environmental, Social, and Governance (ESG) goals, we conduct knowledge-sharing sessions that span from top management to all levels of employees. Additionally, we offer comprehensive online training on ESG principles, with mandatory modules for relevant employees like credit staff, who interact directly with corporate and SME project customers. This approach ensures that our team is not only well-informed but also actively engaged in our sustainability journey.