102 OUR SUSTAINABILITY STATEMENT ANNUAL REPORT 2017 MALAYSIA BUILDING SOCIETY BERHAD 103 OUR SUSTAINABILITY STATEMENT TRUST: DIALOGUE: PROGRESSIVENESS: FOCUS: MBSB IS COMMITTED OUR STAKEHOLDERS OUR COMMITMENT IS TO SUSTAINABILITY TO OUR COMMUNITIES SHAPE OUR VIEWS INNOVATIVELY CREATE PERFORMANCE DATA VALUE FOR SOCIETY 105 Group PCEO 112 Stakeholder 144 F4GBM Content Statement Engagement 117 Our Material Matters Index 106 Strategy 114 Stakeholder Survey 119 Integrity 148 GRI Content Index 108 Scope 124 People 109 Governance 128 Customers 131 Products 135 Technology 137 Communities 140 Planet 142 Commitments in Summary A NEW BEGINNING 104 OUR SUSTAINABILITY STATEMENT TRUST MBSB is Committed to our Communities ANNUAL REPORT 2017 MALAYSIA BUILDING SOCIETY BERHAD 105 GROUP PCEO STATEMENT Dear Stakeholders, In the exciting year of 2017, we have This is very aligned to MBSB’s increased experienced a roller coaster of events as focus on sustainability. In 2016, we officially an organisation. Business has persevered kicked off our sustainability efforts and we well through our merger and acquisition have been continuing those efforts through activities, culminating in the acquisition of 2017, which we’d like to talk about in this the Asian Finance Bank Berhad (AFB). You section. have been the pillar of my strength to arrive at where we are now. We plan to innovatively work on these issues and have undertaken a 3-year Throughout the journey this year, one thing technology transformation roadmap. This “WE NOW HAVE THE has always been clear – that we wanted will be the first phase of building to grow and transform as an organisation foundational capabilities to support the OPPORTUNITY TO AMPLIFY to play a more significant role in the lives enhanced direction of MBSB. of our communities. From our inception as OUR PURPOSE AS A a building society, we have always Most importantly, we successfully heard remembered our purpose as a provider from more than 2,000 of you in our survey of access for the communities we serve on what business matters were most PROVIDER OF ACCESS FOR – access to achieving their dreams, access important to you. I take this input very to reprieve and access to a better quality seriously and it will advise every aspect THE COMMUNITIES WE of life. of my decision making in this coming year. SERVE – ACCESS TO We now have the opportunity to amplify I look forward to continuing our conversation this purpose. in these very important areas. Let’s together ACHIEVING THEIR DREAMS, make a true difference in the lives of the Moving forward, to better serve our communities we touch. Thank you for all stakeholders, we are focused on becoming you do. ACCESS TO REPRIEVE AND a top progressive Islamic bank. With technology as an enabler, we want to ACCESS TO A BETTER inclusively expand our banking and value- added services, providing access and QUALITY OF LIFE.” services to all segments of society. A NEW BEGINNING 106 OUR SUSTAINABILITY STATEMENT TRUST STRATEGY MBSB SUSTAINABILITY STRATEGY MBSB has had an interesting year progressing our sustainability agenda through our second year of implementation. In 2017, internally, we have successfully achieved a higher level of awareness, comprehension and adoption of our Sustainability efforts. This has been portrayed by a variety of initiatives across the organisation as highlighted in this report. For this coming year, we will be striving to incorporate our Sustainability efforts and measurements more closely into our core business to increase the focus and monitoring of all initiatives across the organisation. PROGRESS FOR ALL “BUILDING Help Malaysians build a sustainable and superior financial position MALAYSIA” Help Malaysia’s economic growth by supporting local businesses OUR CORE VALUES Humility Professionalism Ethics Empathy Passion (Rendah Hati) (Profesionalisme) (Etika) (Empati) (Kesungguhan) OUR OUR OUR OUR OUR OUR OUR INTEGRITY PEOPLE CUSTOMERS PRODUCTS TECHNOLOGY COMMUNITIES PLANET ......................... ......................... ......................... ......................... ......................... ......................... ......................... Upholding Developing Enhancing Shared Transforming Advancing Thriving Trust Champions Lives Value Digitally Communities Globally PROFIT PEOPLE PLANET ANNUAL REPORT 2017 MALAYSIA BUILDING SOCIETY BERHAD 107 In support of the Sustainable Development Goals (SDGs), we are uniting our global resources towards these focused outcomes. Along these lines, we are working to map our Sustainability efforts and outcomes against the SDGs. This will be further elaborated in the coming year. PILLAR SUPPORTED SDGS OUR INTEGRITY OUR PEOPLE OUR CUSTOMERS OUR PRODUCTS OUR TECHNOLOGY OUR COMMUNITIES OUR PLANET COMMITMENTS 2018 AND ACTIONS • We commit to ingrain sustainability within our core business to further enable economic, environmental, social and governance advances • We will expand upon and communicate our Sustainability Plans across the organisation, and increase awareness of the SDGs and its targets in relation to our plan A NEW BEGINNING 108 OUR SUSTAINABILITY STATEMENT TRUST SCOPE SCOPE Malaysia Building Society Berhad (MBSB) business operations LOCATION REPORTING All operations across Malaysia PERIOD Covers period of 1 January 2017 to 31 December 2017 GUIDANCE Bursa Sustainability Reporting Toolkit FTSE4Good Bursa DISTRIBUTION Malaysia (F4GBM) Will be made available to our Global Reporting shareholders and our stakeholders. Initiatives (GRI) Will also be available via our website G4 : In Accordance – Core at www.mbsb.com.my We welcome any feedback you may have for this Sustainability Section. FEEDBACK We can be contacted at [email protected]. ANNUAL REPORT 2017 MALAYSIA BUILDING SOCIETY BERHAD 109 GOVERNANCE Our Sustainability Steering Committee is chaired by our PCEO and consists of top management across the organisation. The Steering Committee reports to the MBSB Management Committee. The Internal Audit Division acts as an independent observer. The Project Management Office drives planned sustainability initiatives across the organisation and the Working Group, comprising members from across business divisions, provides business ideas, process innovation and data to support the sustainability efforts. SUSTAINABILITY GOVERNANCE STRUCTURE SUSTAINABILITY PROJECT STEERING COMMITTEE (PSC) Internal Audit (Observer) SUSTAINABILITY PROJECT MANAGEMENT OFFICE (PMO) Finance Corporate Services SUSTAINABILITY PROJECT WORKING GROUP (PWG) • Corporate Services • Corporate Business • Retail Business • Risk • Treasury • Compliance • Project and Property Management • Finance • People Operations • Legal • Secretarial • Corporate/Retail Collection and Management and Credit Administration A NEW BEGINNING 110 OUR SUSTAINABILITY STATEMENT TRUST SUSTAINABILITY PROJECT STEERING COMMITTEE (PSC) Datuk Seri Ahmad Zaini Othman Azlina Mohd Rashad Tang Yow Sai PCEO/Chairperson Chief Corporate Officer, Corporate Services Chief Financial Officer, Finance Lim Seong Soon Tengku Khalizul Tengku Khalid Mohd Azri Mohd Nawi Chief Risk Officer, Risk Chief Compliance Officer, Compliance Chief People Officer, People Operations SUSTAINABILITY PROJECT MANAGEMENT OFFICE (PMO) NAME UNIT NAME UNIT Tang Yow Sai Finance Azlina Mohd Rashad Corporate Services Hee Wei Jean Finance Zuhaznim Izzuddin Corporate Services Chan Chooi Han Finance Sazlina Zulkifli Corporate Services SUSTAINABILITY PROJECT WORKING GROUP (PWG) FUNCTION Corporate Services Risk Corporate Business Compliance Retail Business Finance Treasury People Operations Project & Property Management Legal Corporate/Retail Collection & Management and Credit Administration Secretarial ANNUAL REPORT 2017 MALAYSIA BUILDING SOCIETY BERHAD 111 DIALOGUE Our Stakeholders Shape Our Views A NEW BEGINNING 112 OUR SUSTAINABILITY STATEMENT DIALOGUE STAKEHOLDER ENGAGEMENT The origins of MBSB is deeply rooted in the communities we now serve. This connection has always factored strongly in our way of business. Along these lines, stakeholder engagement is a concept that we fully embrace and have sought every opportunity to broaden. In 2017, MBSB placed a large focus on engaging with our stakeholders, both internal and external. The engagements were initiated by various divisions across the organisation. A high-level view of the engagements are summarised here, with details referenced throughout this section. STAKEHOLDERS ENGAGEMENT PLATFORMS FREQUENCY TOPICS/MATTERS ADDRESSED ANALYSTS Analyst Briefing Quarterly • Financial and business performance of MBSB CUSTOMERS Open house event for Hari Raya Yearly • Networking and introduction of Product Briefing Ad Hoc the product Signing Ceremony Ad Hoc EMPLOYEES Townhalls with CEO Ad Hoc • Important company updates • Policies, procedures, operations Induction program/O2 Semi Annual (On-board & Onwards program) • Internal CSR activities • Health & Fitness People week Ad Hoc • Social Engagements Training Program • Recreational activities Employee Self Portal • Educational trip for Employees’ Internal CSR Activities Several Times Children a year • Personal Development • Pledge initiative with SPRM Health Talk Semi Annual Surau Activities Monthly Corruption-Free Pledge One Off (Ikrar Bebas Rasuah) GOVERNMENT Programme under the Economic Throughout • Employment issues Planning Unit imposed on all the year GLCs (SLIM) Bumiputra Empowerment Agenda Quarterly • KPI Performance on Bumiputera Whiteroom Session Yearly empowerment agenda ANNUAL REPORT 2017 MALAYSIA BUILDING SOCIETY BERHAD 113 2017 was the