Privacy Policy

HDFC SUSTAINABILITY POLICY

• Purpose

Corporate Sustainability (CS) considers every dimension of a corporation as to how it could prosper economically, environmentally and socially. CS is a board concept that has super several phases of evolution such as corporate social responsibility (CSR) and corporate citizenship. Sustainable management was first defined by the United Nations in 1987 and more academically. It was further developed as Triple Bottom Line (TBL) management – development that meets the needs of the present, without compromising the ability of future generation to meet their own needs.

The concept of TBL demands that a company’s sustainability lies with Stakeholders rather than Shareholders. In this case, “Stakeholders” refers to anyone who is influenced, either directly or indirectly, by the actions of the firm. Thus open communication with these stakeholders is crucial for sustainable development of any organization.

Therefore, an open and honest communication (social accountability) as to how HDFC economically, environmentally and socially engages/interacts to safeguard the interest of these stakeholders (social responsibility) is critical to the sustainable growth of the Bank.

This social responsibility and it’s communication is the core of the sustainability development and reporting which is also known as Triple Bottom Line accounting (TBL). The Global Reporting Initiative (GRI) and UN associated non – profit making organization has established a set of internationally accepted guidelines, namely GRI Index, to enable corporations comparably report on this social aspects of business.

• Policy objectives

      Objectives of the proposed sustainability development policy are;

1. To comply with the Subsection 3 (1) (i) – d of the CBSL Direction No.11 of 2007; the  Board is to ensure that a board approved policy on stakeholder communication is placed and implemented.
2. To develop a policy framework to guide inculcation of sustainability practices as an integral part of the Bank’s operation and its reporting.
3. To enhance bank’s commitment towards sustainability implementation and reporting.
4. To enhance the brand value and reputation of the Bank through structured and organized sustainability reporting.

• Sustainability Commitment

Sustainability development is a globally accepted approach to sustaining economic growth without harming our planet or exhausting its resources while improving the quality of life for current and future generations. HDFC Bank of Sri Lanka being a responsible corporate citizen is committed to conduct business in a manner consistent with the corporate vision and mission, with environmental stewardship and social progress.

• Policy Directives 

HDFC’s philosophy on sustainability is, incorporating sustainability Considerations as an integral part of it’s business and creating a balanced, long- term benefits for all our stakeholders. HDFC is to conduct business in a best possible way that demonstrates our commitment to continued improvement and the advancement of sustainable development practices and engagement with all our stakeholders, in an open straightforward manner to balance HDFC Bank’s corporate objectives with their interest.

HDFC’s sustainability line of actions emphasizes mainly on the following;

• Transparency
• Employee Development
• Dynamism and Resources Efficiency,
• Strengthen Stakeholder engagements,
• Sustainability Accounting
• Crime prevention (KYC)
• Investment

             HDFC Bank is committed to use the above seven pillars as points of reference, in the process of 

             formulating business strategies, internal policies and procedures and also for assessing the 

             institutional progress in meeting its objectives.

• Transparency

Our stakeholders urge to know; what we do? Therefore, HDFC acknowledges, that by having an open and straight forward dialogues with critical stakeholder groups will create a competitive environment that improve resources efficiency, performance, recognition and will inevitably increases profits. Transparency is an open culture that reduces uncertainty, stress and promotes employee involvement with regard to innovation and creative processes. It enhances reaching out to the community that creates a much broader team, and provides evaluation measure from all angles of a corporate behavior.

• Employee Development

HDFC acknowledge, the employees are the most important resource and therefore, is the strongest asset to the organization. Staff is the concrete foundation of the Bank and to be thoroughly analyzed and evaluated to tap into their true motivations and desires. We recognize that to HDFC to reach its potential, employees must work towards improvement rather than perfection. In this regard, HDFC is to create a competitive environment with set targets, evaluate and rewards star performers, fosters a creative learning process and provides training, decent work environment through work lie balancing and respects their rights. HDFC also creates a workplace with a supportive culture in which our sustainability efforts are regularly discussed, and opportunities for improvement are sought out, shared and implemented when possible.

• Dynamism and resource efficiency

HDFC believes that it should adopt to the rapidly changing environment by being prepared to be dynamic and implements new creative ideas to gain competitive advantages. New solutions and improve products and processes can ultimately reduce costs and increase profits. On economic context, efficient and sustainable utilization of natural resources should be a paramount important in our operation.

• Strengthening stakeholder’s engagement

Stakeholder Group

HDFC Bank recognizes that statutory and financial obligations and equitable partnership as the basic principles used in the process of identifying the stakeholders with whom the Bank is to maintain regular engagement. The prime stakeholder, the Bank is statutorily obliged to engage with, is the government; who is the founder of the Bank by an Act of Parliament and the major shareholder. The secondary priority of the Bank is in its financial and statutory obligation to the shareholders/investors who ensures the existence of the Bank. HDFC also maintains an equitable partnership with the other stakeholder who directly and indirectly interact and are influenced by the bank’s operations.

Accordingly HDFC recognizes the government of Sri Lanka, shareholders/investors, customers, employees,suppliers,environment and community  as the critical stakeholder groups with whom it should maintain an open and straight forward communication based on the policy described as follows;

• Communication Policy

• Sustainability Accounting

HDFC voluntarily adopts the Sustainability Reporting guidelines of Global Reporting Initiatives (GRI) for reporting on its sustainability activities and report shall be made available to the public via the corporate website and the Annual Reports.

• Cyber Security and Crime Prevention

HDFC maintains Central Bank recommended Baseline security standards which acts as a control mechanism against cyber related incidents and threats. On the other hand, in its day to day business, obtaining KYC (Know your customer) forms will ensure maintaining customer information to prevent using the bank for money laundering activities.

• Investments

To avoid and minimize risk in investments HDFC bank adheres to the investment guidelines issued by the Central Bank of Sri Lanka and according to those guidelines HDFC has a Board Approved Investment Policy which it adheres to.