BCA involves both internal and external stakeholders in determining material topics through focus group discussions. Internal stakeholders are representatives from each work unit, while external parties are representatives from each stakeholder group, such as investors, customers, vendors, media, and business partners. We have determined eight material topics this year. The prioritization of material topics considered the significant issues encountered in the current year, the actual and potential future impacts on the environment, social and human rights, as well as their impact on business strategy and stakeholder decision- making.
There are changes in material topics from the previous reports. In the previous year, there were nine priority material topics, namely Data Security and Customer Privacy; Anti-corruption and Anti-fraud; Bank Services;
Economic Performance; Loan Portfolio; Product and Service Responsibilities; Occupational Health and Safety (OHS); Training and Education; Access and Affordability. In this period, BCA set eight priority material topics, namely Data Security and Customer Privacy; Anti-corruption and Anti-fraud; Economic Performance and Green Loan Portfolio; Product and Service Responsibilities; Access and Affordability; Climate Action; Supply Chain Management; and Human Rights.
MATERIAL TOPIC PRIORITY
Data Security and Customer Privacy
• Data security system implementation
• Cybersecurity and cybercrime mitigation
• Ethics to protect customer privacy Significant Issues
SDGs
Anti-corruption and Anti-fraud
• Building an anti-corruption and anti-fraud culture, including through training and dissemination of sustainable implementation
• Operating areas/work units assessed concerning corruption
• Complaint mechanism for corruption and fraud cases
• Sanctions for corruption and fraud violations Significant Issues
SDGs
Economic Performance and Green Loan
Portfolio
Product and Service Responsibilities
• Bank's economic performance growth
• Climate-related financial risk
• Sustainable loan classification and green loan portfolio improvement
• Policies to assess eco-friendly businesses
• ESG risk management
• Compliance and code of ethics for the launch of financial products and services
• Quality assessment
• Customer satisfaction
• Development and innovation of financial products and services Significant Issues Significant Issues
SDGs SDGs
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We changed the material topics by considering the optimal impact management strategy and performance improvement on Bank Services;
Occupational Health and Safety (OHS); Training and Education. This year BCA added Supply Chain Management and Human Rights as material topics.
This year, BCA considers Supply Chain Management and Human Rights as crucial material topics to improve the quality of banking products and services, as well as reduce the possibility of human rights violations on the part of partners due to non-compliance. BCA recorded a good financial performance in 2022 for consistently implementing service excellence as a culture, as well as maintaining good economic performance and economic impact management.
The company also has consistently implemented OHS through facilities to protect employees from the COVID-19 virus and occupational diseases
(PAK). Meanwhile, BCA continuously holds training and education to create excellent, professional, and competitive human resources in the banking industry. Therefore, these three topics were no longer a priority, but we still reported their impact on management and performance. We adjusted the 'Loan Portfolio' topic to 'Green Loan Portfolio' due to BCA’s priority to increase eco-friendly financing disbursements and loan portfolios. The additional 'Climate Action' material topic in this reporting period aims to demonstrate BCA's commitment to managing climate change impacts, physical risks, and transition risks. BCA management has approved the Climate Change Strategy to strengthen 'Climate Action'.
Access and Affordability
• Availability of banking facilities and accessible areas
• Service to unbankable communities
• Digital banking Significant Issues
SDGs
Climate Action
• Loan sector policies to support eco- friendly businesses
• Implementing green taxonomy
• GHG emissions inventory Significant Issues
SDGs
Supply Chain
Management Human Rights
• Local supplier engagement
• Human rights monitoring on partners
• Transparent and fair procurement process
• Protection of customers from privacy breaches and data leaks
• Human rights due diligence on partners and employees
• Respect for Collective Labor Agreement (PKB) Significant Issues Significant Issues
SDGs SDGs
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Stakeholders’ decision-making affects BCA's business management. BCA has identified key stakeholders, who have a direct relationship with the Bank's business and influence on the company's sustainability, to delve into significant issues. BCA also involves local parties in the Sustainable Finance implementation.
The Bank carries out mapping method and stakeholder engagement in accordance with the AA1000 SES:2011 Stakeholder Engagement Standards, namely dependency, responsibility, tension, and influence. The Bank collectively manages stakeholder engagement in business activities with various work units, including by the Environment Sustainability Governance (ESG) Group.
Regulator
Engagement and Frequency
- All compliance reports, including evidence of announcements of the Annual and Extraordinary General Meetings of Shareholders (AGMS and EGMS), summary of Consolidated Financial Statements.
- All reports are presented at least once a year or incidentally whenever necessary.
BCA Response
- Comply with applicable laws and regulations, capital market, banking regulations and other relevant regulations
- Ensure the implementation of corporate governance
- Develop an ESG Group to monitor the implementation of the SFAP and improve the quality of Sustainable Finance implementation
- Pay taxes in accordance with obligations and on time - Increase MSME financing
- Meets regulatory thresholds Key Concerns
- Compliance and implementation of prudential and governance principles - ESG risk analysis for lending
- Anti-corruption and anti-fraud, Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF)
- Lending to sustainable business activities and MSMEs - Payment of taxes and other obligations
Investors and Shareholders
Engagement and Frequency
- GMS once a year, EGMS incidentally
- Analyst meeting and publication of quarterly financial reports - Annual Report and Sustainability Report once a year
BCA Response
- More comprehensive disclosure of ESG performance information in the Sustainability Report and analyst meeting
- Follow up on ESG aspect recommendations from rating agencies and observers - Formulate climate change strategies and action roadmaps
- Increase investment and dividends value.
Key Concerns
- Financial performance
- Improved information on environment, social and governance (ESG) performance - Support for climate change actions
- The values of shares that are considered premium by the public
Stakeholder Engagement
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Employees
Engagement and Frequency
- Internal communication media, periodically.
- Internal meetings based on the needs of the related divisions, at least once a year - Periodic gatherings
BCA Response
- Availability of internal communication means, including internal media, gatherings, sharing sessions, and Halo SDM
- Whistleblowing system
- Offline and online internal and external training - Performance appraisal and promotion system - Adequate work facilities
- The existence of a labor union
- Guarantee employees’ rights according to the Collective Labor Agreement (CLA) Key Concerns - Training, knowledge sharing, and competency development
- Career path
- Employees' comprehension on supporting application from HR management - Freedom of association
- Work Life Balance
Customers
Engagement and Frequency
- Banking activities at branch offices, call centers, and other digital banking solutions, any time and/or as needed
- Other meetings, any time needed
BCA Response - Maintain the confidentiality of customer data and privacy
- Manage Security Monitoring Center (SMC) and Data Loss Prevention (DLP), as well as improve technological innovation system to anticipate cyber crime
- Update product and service information on the company website - Implement service excellence based on the SMART SOLUTION principle - Provide loan benchmark and competitive interest rates
- Conduct regular customer surveys - Implement financial inclusion and literacy Key Concerns
- Confidentiality of customer data and privacy - Fraud prevention
- Availability of adequate information on financial products and services - Financial service excellence
- Competitive lending rates
- Product innovation and digital banking - Banking access
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Business Partners/Suppliers/Vendors
Engagement and Frequency
- Interaction through various means of communication at any time - Vendor code of conduct
- Dissemination of the terms of procurement of goods and services, once a year
BCA Response
- Provide the required information
- Conduct fair and proper partner selection partners according to rules - Disseminate procurement procedure policies
- Ensure healthy and safe working conditions - Payment system according to work contract - Vendor performance appraisal
Key Concerns
- Transparency in building cooperation - Clear tender procedures
- smooth communication
- Occupational Health and Safety (OHS) - Timely payment
General Public
Engagement and Frequency
- General seminars or training, held regularly - Community development activities - CSR program
BCA Response
- Bakti BCA Program
- Internships and provision of job opportunities, as needed - Financial literacy and inclusion programs
Key Concerns - Assistance for Bakti BCA program - Education and training
- Financial inclusion and literacy
Media
Engagement and Frequency
- Banking information, periodically or incidentally.
- Media coverage (print and electronic)
BCA Response
- Provide materials for press releases
- Develop communication facilities including press conferences, pressroom on BCA website, email: corcom_bca@bca.co.id
- Update banking solutions or company performance information on BCA website www.bca.co.id
Key Concerns
- Schedule of meetings during press conferences - Clarity of the material to be reported
- Shared perception and knowledge about ESG to facilitate reporting
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