corporate social responsibility report 2013 Table List List List of Contents of Tables of Figures of Appendices Welcome 04 Table 01 - Bank Audi's Membership in Industry Figure 01 - Our CSR Milestones 06 Appendix 1 - Highlights of Code of Ethics and Conduct 71 Introduction 06 Associations 14 Figure 02 - Main Steps Followed in our Materiality Appendix 2 - Bank Audi CSR Policy 72 Our Materiality Process 07 Table 02 - Regulations to which Bank Audi Group Assessment 09 Our Updated CSR Strategy for 2013 11 Lebanon Subscribes 19 A Partnership Model for CSR 14 Figure 03 - Materiality Matrix and Main Issues of Priority Table 03 - Total Number and Percentage of Employees Concern for 2013 10 The Corporate Governance Pillar 16 who Received Training on Anti-corruption Figure 04 The Economic Development Pillar 22 by Category 20 - Bank Audi CSR Pillars for 2013 11 The Community Development Pillar 28 Figure 05 Table 04 - Percentage of Senior Management at - At end 2013 CSR at a Glance 12 Health 30 Significant Locations of Operation for Figure 06 - A Partnership Model for CSR 15 Humanitarian and Social Initiative 31 Bank Audi Group Lebanon 26 Figure 07 - CSR Committee Charter 18 Employee Volunteerism 32 Table 05 - Employee Composition by Gender and Culture 34 Employee Category at Bank Audi Figure 08 - A Spectrum of Bank Audi's Brands, Sports 34 Group Lebanon 41 Products and Services 25 The Human Development Pillar 36 Table 06 - Employee Composition by Age Group and Figure 09 - Bank Audi's Kids Rewards Employee Category at Bank Audi Program Characters 32 Training and Development 38 Group Lebanon 42 Performance Appraisal/Management 39 Figure 10 - "Be a Hero for a Day" Volunteering Talent Management 39 Table 07 - Governance Body Composition by Gender Program Examples 33 Diversity and Equal Opportunity 40 and Age Group at Bank Audi 42 Figure 11 - A Spectrum of Community Development Compensation and Benefits 43 Table 08 - Employee Distribution by Contract Type Initiatives 34 Rewards System 45 and Gender at Bank Audi Group Lebanon 42 Figure 12 - A Rounded Employee Development Occupational Health and Safety 46 Process 38 Educational Aid in Community 46 Table 09 - New Employee Hires in Bank Audi Group Lebanon 43 Capacity Building 47 Figure 13 - Bank Audi's Employee Table 10 - Return to Work Rates after Parental Leave Sponsorship Grants 40 The Environmental Protection Pillar 50 by Gender in Bank Audi Group Lebanon 46 Figure 14 - Employee Tenure at Bank Audi Solid Waste 52 Table 11 - Retention Rates after Parental Leave Group Lebanon 45 GHG Emissions 53 by Gender in Bank Audi Group Lebanon 46 Figure 15 - Government Capacity Building Program Energy Consumption 55 at Bank Audi 47 Environmental Loans and Sponsorships 57 Table 12 - Paper Recycling between 2012 and 2013 52 Scientific Research 58 Table 13 - Total Weight of Waste by Type 52 Figure 16 - Total GHG Emissions per Year for Bank Audi 53 Supplementary Information 60 Table 14 - Bank Audi's Greenhouse Gas Emissions Reporting and Ratings 62 between 2012 and 2013 53 Figure 17 - Bank Audi's Greenhouse Gas Conclusion 68 Emission Sources 54 Table 15 - Global Warming Potentials (GWP) of Common Internal Audit 71 Greenhouse Gases and Refrigerants 55 Figure 18 - Emissions per Source in 2013 54 Table 16 - ISO 26000 Core Subjects Reference Table 62 Figure 19 - Monthly Variation of GHG Emissions in Bank Audi Group Lebanon 55 Table 17 - Implementation of GRI Content Index - General Standard Disclosures 63 Figure 20 - Sources of Conversion Factors Used 56 Table 18 - Implementation of GRI Content Index - Specific Standard Disclosures 66 Table 19 - Implementation of the 10 Principles of the UN Global Compact 67 Table 20 - Bank Audi Awards for Bank Audi Group Lebanon in 2013 69 4 5 In 2012, Bank Audi had formalised its adherence and of being a role model for ethical behaviour. Hence, Bank to its long lasting inherent CSR principles, and had Audi’s commitment to sustain a sound financial standing developed a comprehensive and ambitious Corporate and performance comes concurrently with a commitment Social Responsibility policy founded on 4 key pillars: to preserve the common interests of all our stakeholders Sound Governance, Economic Development, Community through sound controls, risk management and governance Engagement and Human Development. practices, and with a commitment to be a role model, not only for ethical behaviour, but also for environmental In 2013, we articulated it further, giving the environmental awareness, for community engagement and support, and dimension a higher visibility and promoting it to the same for the promotion of culture. pre-eminence as the other pillars. We are proud to have abided by our ambitious policy, and to have advanced on In conclusion, we wish to express our gratitude to all previously launched initiatives, notably in our support to our shareholders, customers and employees for their young entrepreneurs, as well as in environmental efforts, continuous support and for embracing with us our crucial capacity building and philanthropy. Many new objectives CSR objectives. were also set and reached, including the development of a far reaching Social and Environmental Management Sincerely, System, the promotion of CSR awareness at all levels of the corporation, the boosting of employee community Raymond W. Audi The year 2013 was another good year for Bank Audi engagement, the consolidation of our commitment to best Chairman and General Manager at both business and performance levels, whereby the sustainability reporting guidelines, and others. Welcome results fairly reflect the set strategic orientations. They underscore the Group’s leaner organisation and its capacity In 2013, Bank Audi also took additional CSR-related Statement of the Chairman and to seize opportunities for the development of activities commitments towards existing and new stakeholders, thus the Chief Executive Officer and expansion in new better rated countries, ensuring tying further its long term financial performance and success added value to all stakeholders within its customers’ and with its commitment to its CSR policy and objectives. shareholders’ base at large. Samir N. Hanna At a time where the global banking industry is under an Group Chief Executive Officer As in previous years, our results were achieved without exceptional scrutiny, where spectacular social responsibility compromising our commitment to Social Responsibility failures (in terms of corruption, wrongdoings and unethical objectives. They were reached within a sound Governance behaviour) have tarnished the reputation of renowned framework (commended again by industry observers and global banking leaders, and where worldwide regulators are agencies) and while upholding the highest ethical standards, looking at the banking industry as a key law enforcement maintaining environmental awareness, remaining supportive vector, we, at Bank Audi understand more than ever before and engaged in our communities, and promoting culture. the crucial importance of being accountable for one’s acts 6 7 Introduction Founded in 1830 in Lebanon, Bank Audi has sustained growth, excellent financial standing and large financial external stakeholders, and close adherence to G4 reporting most recent previous report being that of 2012 which was its solid growth, building a strong legacy of excellence in flexibility, in the context of an entrenched risk management principles and guidelines in 2013. published in September 2013. The Report will flesh out all banking. While the Bank continues to be headquartered culture and best practice corporate governance. the above advances within a discussion of Bank Audi’s in Lebanon, by 2013 it had successfully expanded to 12 Other important achievements in 2013 include the initiation revised and extended CSR strategy which revolves around countries located across the Near East, North Africa, GCC To date, we have managed to bolster, diversify and grow of a local volunteering program, “Be a Hero for a Day”, our five identified CSR pillars. We are confident that the and Europe, including Jordan, Egypt, Turkey, Qatar, the our Corporate Social Responsibility (CSR) strategy in the which formally extends our long tradition of volunteerism discussion that follows will not only be engaging, but will Kingdom of Saudi Arabia (KSA), Monaco, Sudan, Syria, as Lebanese context. In this respect, we are building on strong and community service. We have also introduced a one of a also help capture our manifold positive impacts on people, well as France and Switzerland. Bank Audi is a joint stock foundations from previous years, including the setting up of kind capacity building project which makes various training society and the environment during 2013. Hence the Report company (“société anonyme libanaise”) with a diversified a stand-alone CSR unit in 2010, the establishment of a CSR and skill building modules available to the public sector, provides aggregate and detailed reporting in relation to shareholder base that encompasses historical shareholders, Committee and a formal CSR Policy in 2012, the piloting to help in sharing knowledge and nurturing public service core activities falling under each of those five pillars which large regional investors, and international institutional of ISO 26000 Guidance in 2012, as well as the delineation effectiveness, efficiency and productivity. We have also are grounded in an extended materiality exercise that has investors. The Bank offers a full range of products and of our four-pronged CSR strategy in 2012, revolving gone a long way in further institutionalising CSR through the helped us focus on the issues that matter the most to our services that cover principally Corporate, Commercial, around four core pillars, including sound governance, core operations of the Bank, by introducing a charter for the business, our stakeholders and our society. This year, we Individual and Private Banking, and caters to the needs of economic development, community development and CSR Committee which formalises its mission, mandate and have raised the bar in terms of transparency and with regard various sectors and industries in the economy including: human development.