Governance

As a Group we are committed to high standards of governance that are consistent with regulatory expectations and evolving best practices. The Board has ultimate oversight of the identification, assessment and integration of ESG impacts, risks and opportunities throughout the organisation. The Board has delegated authority to Board Committees to support the ESG oversight. These committees play a role in identifying, managing, and reporting material ESG impacts, risks, and opportunities as well as oversight the content, scope and reporting process of the CSRD Sustainability Statement. The Terms of Reference of each committee dictate the responsibilities regarding ESG matters. The following sustainability governance diagram illustrates how BOCH’s governance is currently structured towards sustainability.

1. The Board, through the NCGC² and Risk Committee, oversees the implementation of the Group’s ESG and climate strategy. In order to adequately assess climate risks and opportunities, the Board draws on expertise both internally and externally. All ESG & Climate related matters are recommended for consideration and approval to the Board through the Risk Committee or NCGC.

2. NCGC² provides oversight to the Group’s ESG, and climate strategy aimed at achieving present and future economic prosperity, environmental integrity, climate stability and social equity for the Group and its stakeholders.

3. Risk Committee identifies, assesses, controls and monitors financial / economic risks and non-financial risks (including operational, technological, tax, legal, reputational, and compliance, and ESG including climate-related & environmental risks (C&E)) which the Group faces in cooperation with the responsible Board Committees.

4. EXCO recommends to the Board all ESG and Climate related matters and policies (Excluding ESG and climate risks matters and policies) for consideration and approval through NCGC².

5. ESG and climate risks related policies and matters are reviewed and challenged by the Sustainability Committee and are subsequently submitted by Risk Management Division directly to the Board for consideration and approval through Risk Committee, also notifying EXCO.

6. Sustainability Committee reports to EXCO.

7. Audit Committee assesses the soundness of the methodologies, policies and governance of the internal control system of the Bank’s ESG structure and framework