OCBC Bank: Oversea Chinese Banking : OCBC Sustainability Report 2024 (English)

Sustainability Report 2024 OCBC Singapore OCBC Malaysia OCBC Indonesia OCBC China OCBC Hong Kong OCBC Al-Amin Bank of Singapore Great Eastern OCBC Macau OCBC Securities Lion Global Investors About This Report Board Statement 2024 Key Achievements Our Approach to Sustainability Accelerating the Transition to a Net-Zero Future Bringing Impact to Communities Conducting Our Business Responsibly Content Index Assurance Statement A close-up image of seagrass meadow, part of a seagrass restoration project sponsored by OCBC in Singapore. Contents Board Statement 3 Bringing Impact to Communities Talent Management and Wellbeing 64 2024 Key Achievements Workplace Diversity 75 Sustainability Highlights 5 Community Development 83 Awards and Recognition 6 Conducting Our Business Responsibly Cybersecurity and Data Protection 89 Our Approach to Sustainability Fair Dealing 95 Our Sustainability Governance Structure 7 Financial Crime Prevention 97 Our Approach 9 Governance and Culture 101 Stakeholder Engagement 11 Our Materiality Assessment Process 14 Content Index - GRI | SASB | TCFD | UNGC | UN SDG 104 Accelerating the Transition to a Net-Zero Future Climate Action 18 Assurance Statement 117 Responsible Financing 47 Sustainable Financial Solutions 51 Glossary 119 OCBC Sustainability Report 2024 1 Accelerating the Bringing Conducting About Board 2024 Key Our Approach Transition to a Impact to Our Business Content Assurance This Report Statement Achievements to Sustainability Net-Zero Future Communities Responsibly Index Statement About This Report OCBC is committed to accelerating the transition to a net-zero future, while conducting our business responsibly and bringing impact to our communities. This commitment is driven by our strong partnerships and ongoing collaboration with customers and key stakeholders. Scope OCBC Group's Sustainability Report outlines our approach to sustainability, highlighting the initiatives and performance of our operations (1) in key markets. This Report covers the financial year ending 31 December 2024. The disclosures in this Report are provided at a consolidated level, covering all banking operations except Great Eastern Holdings Limited (GEH), unless otherwise stated. As a subsidiary of OCBC Group and a publicly listed company, GEH publishes a separate Sustainability Report that includes detailed Environmental, Social and Governance (ESG) data related to its operations. For a comprehensive view of our performance, we recommend reading this Report alongside GEH's sustainability disclosures. Where applicable, data from previous financial years are included for comparison. This Report should also be read together with the OCBC Annual Report, which can be found here: Read more in our Annual Report by scanning the QR code. Data and External Assurance OCBC has an established internal review process to maintain the robustness and credibility of our ESG data. In 2024, we also obtained external assurance for selected indicators that are material to our operations. The external assurance report can be found on page 117. We are committed to continuously enhancing our ESG data disclosures and may expand the scope of external assurance in the future. Reporting Framework This Sustainability Report is prepared in accordance with the following standards, guidelines and regulations: • Singapore Exchange (SGX) Securities Trading Limited Mainboard Listing Rules 711A and 711B on Sustainability Reporting; • SGX Practice Note 7.6 Sustainability Reporting Guide (updated January 2022); • Global Reporting Initiative (GRI) Standards: Topic and Universal Standards (updated 2021); • GRI G4 Financial Services Sector Disclosures; • The MAS Guidelines on Environmental Risk Management for Banks (published December 2020); • Sustainability Accounting Standards Board (SASB) Standards for Commercial Banks; and • Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). By aligning with the GRI Standards, we have applied the reporting principles of accuracy, balance, clarity, comparability, completeness, sustainability context, timeliness and verifiability. We have also adopted SGX's proposed list of core ESG metrics as guidance in disclosing a common and standardised set of ESG metrics, and we have aligned our ESG data disclosures accordingly. The above standards were selected due to their global recognition and adoption, along with their robust industry guidance, which enables comparability with both global and local peers. Additionally, these standards provide a framework for communicating relevant information to stakeholders regarding the Bank's sustainability-related risks and opportunities. OCBC recognises that climate change is one of the most significant environmental challenges impacting society, businesses and the economy. We aim to clearly communicate the Bank's efforts to mitigate and adapt to climate change. In addition to adhering to the TCFD Recommendations and aligning with regulatory and industry requirements, this Sustainability Report was prepared with reference to the International Financial Reporting Standards (IFRS) S1 and S2 standards. These standards provide the latest and most widely accepted guidance for disclosures on climate-related risks and impacts to the Bank, as well as the strategies implemented to manage these risks and seize new opportunities. As OCBC is a signatory to the United Nations Global Compact (UNGC) and its Ten Principles, this Report also includes our Communication on Progress (CoP). By integrating the Ten Principles into our strategies, policies and procedures, and fostering a culture of integrity around issues such as Human Rights, Labour, Environment and Anti-Corruption, OCBC reaffirms its commitment and responsibilities to both people and the planet. (1) This includes OCBC Singapore and its international branches, OCBC Malaysia, OCBC Indonesia, OCBC China, OCBC Hong Kong, OCBC Macau, OCBC Securities Pte Ltd, OCBC Property Services Pte Ltd and Bank of Singapore. Accelerating the Bringing Conducting A bo u t B o ar d 2024 Key Our Approach Transition to a Impact to Our Business Content Assurance This R eport St a t ement Achievements to Sustainability Net-Zero Future Communities Responsibly Index Statement In 2024, we made significant strides in fostering inclusive and sustainable economic growth in the markets we serve. Our commitment to sustainability principles shapes every aspect of our operations, from product development and customer service to employee support and community engagement. At OCBC, we believe our greatest impact lies in our financing and advisory capabilities, empowering our clients to align their operations with their sustainability goals and with the Paris Agreement's target of limiting global temperature rise to 1.5°C. Transitioning to sustainable practices has become essential for our clients to future-proof their businesses, and we are committed to partnering with them through this transformative journey. Sustainability is of paramount importance to OCBC for three key reasons. First, as a purpose-driven organisation, we have a responsibility to our society and communities. Second, we must proactively manage the physical risks of climate change and the transition risks associated with a decarbonised economy. Finally, sustainability presents an unprecedented business opportunity as this transition will require profound transformations across sectors and business models, involving substantial investments from both the public and private sectors. In 2024, our sustainability approach remained focused on integrating sustainability into our core operations through our "ABC" imperatives: A ccelerating the Transition to a Net-Zero Future, B ringing Impact to Communities, and C onducting our Business Responsibly. Our Sustainability Report details our progress in each of these imperatives, demonstrating how we create sustainable value for our clients, employees, investors and the communities we serve. Accelerating the transition to a net-zero future In 2024, we extended over 200 green, social and sustainability-linked loans to our wholesale banking clients, serving as sustainability advisors in more than 140 of these transactions. Our efforts led to a $15 billion increase in our committed sustainable finance portfolio to $71 billion. In the small and medium-sized enterprises (SMEs) segment, we partnered with ecosystem stakeholders to launch the Queen Bee Enabled Sustainability Transition (QUEST) programme , designed to assist SME suppliers in developing their carbon inventories and implementing effective decarbonisation strategies. Since the introduction of the OCBC SME Sustainable Finance Framework in 2020, we have provided over $9 billion in sustainable finance to more than 3,800 SMEs across the region . We have also made significant progress in decarbonising our corporate and commercial banking loan portfolio in our six priority sectors where we have established net-zero targets. These collective efforts positioned OCBC as the top Mandated Lead Arranger in 2024 for Sustainable Finance Loans Volume in Asia Pacific (excluding Japan) and Southeast Asia. (2) In the consumer banking segment, we launched the OCBC Sustainability Hub , a market-leading platform that simplifies sustainable investing and empowers our retail customers to track, understand and act on their investments, enabling informed financial decisions while fostering positive societal and environmental change. Within just six months of its launch, the Sustainability Hub achieved a 2.3x year-on-year increase in sustainability-themed investments. At Bank of Singapore (BOS), we established an independent investment advisory council , comprising global experts from leading think tanks and asset managers, to enhance our research capabilities and provide deeper insights for our clients, with a strong emphasis on sustainability and climate change. (2) London Stock Exchange Group. Acceler