#### APPROACH TO SUSTAINABILITY
###### How City Bank embeds sustainability in its day-to-day operations
**Sustainability authority and delegation**
As per our standard operating procedure, all
environmental, social and governance (ESG) policies
and strategies undergo a thorough approval process.
While the Board Risk Management Committee (BRMC)
grants its in-principle consent, the final authority is
vested to the board.
The BRMC directs the Sustainable Finance Committee
(SFC) to oversee and supervise all activities related to
sustainability. The Committee
- Sets strategies and provides instructions and
necessary approvals for the functions of the
Sustainable Finance Unit and Sustainable Finance
Committee.
- Provides the approval of utilization of the annual
budget for Green Finance, CSR, Climate Risk Fund,
and Green Marketing.
The SFC carries out its mandate through the
Sustainable Finance Unit, which ensures that all
projects and programs comply with the established
ESG policies. The Committee
- Monitors and evaluates the functions of the
Sustainable Finance Unit, and also provides the
necessary management-level approval.
- Provides annual target for the Sustainable Finance
Unit's necessary activities and evaluation of the
same.
- Ensures proper coordination and support of
all relevant divisions for the functions of the
Sustainable Finance Unit.
Moreover, our organization has established an ERS
committee, called the Emission Reduction Steering
Committee. The Committee
- Coordinates and oversees carbon footprint
measurement and emission reduction-related
activities related to CBL's commitment to the NetZero Banking Alliance.
- Collaborates with relevant divisions (whenever &
wherever necessary) on the implementation of
low-carbon emission initiatives.
- Monitors and assesses emissions of CBL's own
operation & supply chain (lending portfolio) and
arranges awareness sessions for employees on
carbon footprint reduction and its significance.
In summary, our organization has a comprehensive
framework in place to ensure that all ESG policies
and strategies are rigorously reviewed, approved
and implemented. This approach emphasizes
our commitment to sustainability, environmental
responsibility, and good corporate governance
practices. [...] #### SUSTAINABLE GOVERNANCE PRACTICES
The Board of Directors approves all of the bank's ESG
policies and strategies after receiving consent in
principle from the Board Risk Management Committee
(BRMC). BRMC directs the Sustainable Finance
Committee (SFC) to oversee and supervise all activities
**Board Oversight**
related to the environment, green finance and
sustainability through the Sustainable Finance Unit
(SFU). CBL has an additional ESG Committee known as
Emission Reduction Steering Committee (ERSC), that
oversees the emission reduction strategies.
Sustainable governance practices are aimed at
ensuring that City Bank is aligned with its sustainability
objectives and is able to effectively manage its
sustainability risks. Key framework that defines
sustainable governance practices at City Bank include:
Board of Directors is responsible for overseeing the organisation's sustainability performance
and ensuring that sustainability is integrated into decision-making processes.
**Stakeholder Engagement**
City Bank engages with stakeholders, including customers, employees, suppliers and
communities to understand their perspectives and expectations on sustainability.
**Risk Management**
City Bank identifies and manages sustainability risks, including environmental, social and
governance risks to minimize their impact and ensure that they are effectively managed.
**Performance Measurement and Reporting**
City Bank measures and reports its sustainability performance, including the use of metrics
and targets, to demonstrate its commitment to sustainability.
**Ethics and Compliance**
City Bank adheres to ethical standards and complies with all relevant sustainability-related
laws and regulations.
**Transparency and Communication**
City Bank communicates its sustainability performance to stakeholders in a transparent
and accessible manner, including through sustainability reports and other communication
materials from time-to-time.