Structure & Framework
Established seven years ago as the Ayeyarwaddy Farmers Development Bank (A bank) is committed to conducting business responsibly and fairly for the benefit of society, and aims to strengthen the financial and banking system of Myanmar, while helping drive the economy to stability and prosperity, uplifting the nation’s quality of life.
A Bank do understand that its endurance and constancy is a result of devotion from employees, trust from customers, alliance from partners and support from shareholders. These are vital force that led to Bank to remained committed to conducting business responsibly and continued to create values to society.
For A Bank, sustainability and responsibility to society not only mean delivering satisfactory returns to shareholders, but also binding the ability to effectively respond to customer needs, taking care of employees, supporting partners and suppliers while improving the wellbeing of society and the environment, in hope to create comprehensive evolution.
A Bank’s journey to sustainability is driven by its assurance to firming economic stability and creating value for society while safeguarding the environment.
To ensure adherence to the Sustainability Policy and framework with systematic deployment, the A Bank has specified sustainability governance structure tasked with roles and responsibilities from the Board to business units.
Sustainability Governance Structure
Stakeholder engagement is the core foundation of developing the business towards sustainability. Therefore, there are specified guidelines on stakeholder engagement in the Bank’s Code of Conduct. The Bank also encourages every function to continuously foster stakeholder engagement through appropriate channels and activity to understand their expectations and perspectives as well as to solicit feedback and suggestions on the Bank’s operations. This stakeholder inclusion effort also provides an opportunity for A Bank to communicate sustainability aspirations and management approach to stakeholders. In addition, stakeholders’ feedbacks serve as input to the report selection process and provides guidance for the Bank to meet stakeholders’ expectations in all dimensions.
To promote and support bank-wide implementation adhering to Sustainability Policy while integrating sustainability concepts and practices into its business operations, the Bank has laid out the following C5 methodology
Conducting business and performing assigned duties in compliance with guideline specified in the Bank’s code of conduct, regulations, and procedures.
Organizing training and learning in different forms to build awareness and communicate the importance of conducting business.
Monitoring and reporting progress to executives and relevant committees while communicating to employees and the general public.
Customer & Stakeholder Engagement
Building meaningful engagement with customers and stakeholders through developing processes, products, services, and other activities to mee the needs of customers and create value for all of them (Bank & customers).
Collaborative Partnership & Public Policy
Initiating partnerships in order to develop an inclusive and sustainable eco system and supporting public policy implementation for economic, social, and governance issues impacting the finance and banking industry.
Sustainability Materiality Matrix
The Bank annually identified issues and any other relevant topics by considering both internal and external factors, such as organizational strategies, business risks and opportunities, prominent issues for the banking industry as well as stakeholders’ interests. The Bank performs assessment on the key focus areas and prioritization based on stakeholder interests and impact on the business.
The assessment results are reviewed and approved by the Management Committee.
A Bank’s sustainability key focus areas, identified as followed.
1. Corporate Governance & Risk Management
2. Customer Experience
3. Digital Transformation
4. Data governance & Cyber Security
5. Responsible Lending
6. Financial Literacy
7. Culture & Mindset
8. Employee attraction & Retention
9. Climate Changes Risks
10. Operational ECO – efficiency
The Bank places an importance on understanding the impacts of business activities on every group of stakeholders. The Bank introduced impact valuation methodology that examines economic, social, and environmental impacts from the Bank’s operations, both positive and negative externalities while attempting to monetizes the true value of the Bank’s contribution to society. Key business factors that have been incorporated in the economic, social, and environmental impact assessment methodology are: opportunities to improve operational efficiency, preparation for future legal and regulatory changes, customer base expansion, creating environmental business opportunities through sponsorship, promoting a positive image of the Bank, and transparent disclosure of the Bank’s operating performance to stakeholders.
At the same time, the A Bank also assesses environmental influences of digital innovation by using the digital protocols, which has been globally accepted, as guidelines. The resulted assessments will be incorporated in the business planning for customer base expansion.