Defining key stakeholder groups is imperative to ensure materiality in engagement and reporting.
Our Organisation derives numerous benefits through stakeholder inclusiveness, such as deriving and embedding opinions of key stakeholders in our business activities, promoting active stakeholder engagement and facilitating allocation of resources and managerial effort based on materiality. Therefore, we recognise the need of defining key stakeholder groups to ensure materiality in engagement and reporting. The key stakeholder groups thus identified are given in Stakeholder Engagement Section.
Materiality assessment is an integral aspect of our stakeholder management mechanism. We consider an aspect to be material, if it substantially affects our organisation’s ability to create value over short, medium and long term. The materiality matrix is used to track stakeholder concerns and identify emerging issues. This enables us to identify, proritise and review material economic, social and environmental aspects that impact our Company. In addition, it also helps to formulate strategies accordingly, to create sustainable value for every stakeholder.
Our business model focuses on aspects that are material from the perspective of our business as well as the stakeholders. What is ‘material’ is determined based on relevance, the probability of occurrence and the magnitude of the impact. Thus we adopt GRI G4 Sustainability Reporting Guidelines for defining report content to identify material aspects and their impacts. Since these reporting principles are fundamental to achieving transparency in sustainability reporting, we have adopted them in preparing our sustainability report. They help us to focus on issues that matter most to us and our stakeholders.
These are rated as moderate, high and very high and are tabulated below with a cross reference to the GRI Content Index.
Reason for Assigning Materiality to Aspect from
|To Company||To Stakeholder|
|1.||Economic performance||G4-EC1||Very high||Very high||Our key objective is to ‘create’ and ‘distribute’ value through our Business Model to our stakeholders: Shareholders, policyholders, employees, independent contractual agents, the Government and the like.|
|2.||Indirect economic impacts||G4-EC7||High||High||We believe that investments in education and health enable societies to derive positive benefits. Therefore, we attach high importance to ensure the communities we serve remain educated and healthy. Furthermore, the long term nature of life insurance promotes economic development of the country as well.|
|3.||Materials||G4-EN1||Moderate||Moderate||It is equally important for us to ensure that our performance doesn’t harm the environment in any way. Therefore, we strive to reduce our environmental footprint always.|
|6.||Effluents and waste||G4-EN23||High||High|
Labour Practices and Decent Work
|8.||Employment||G4-LA1||Very high||Very high||Loyal and competent employees are an asset to our organisation. We owe most of our success, to our employees as they translate our strategy into results. Therefore, it is imperative to train and motivate our employees, while adopting fair labour practices and ensuring we maintain diversity and equal opportunities at all times.|
|9.||Training and education||G4-LA10||Very high||Very high|
|10.||Diversity and equal opportunity||G4-LA12||High||High|
|11.||Labour practices grievance mechanisms||G4-LA16||High||High|
|12.||Non-discrimination||G4-HR3||High||High||We continuously strive to facilitate a working environment free from discrimination and bias. Hence, an effective grievance handling mechanism has been implemented to attract and retain the best talent.|
|13.||Human rights grievance mechanisms||G4-HR12||High||High|
|14.||Local communities||G4-SO1||High||Very high||We understand the importance of making our presence felt in the local communities where we operate. Therefore, we increasingly engage with local communities and comply with relevant laws and regulations. We endeavour to be a sustainable entity in these communities.|
|17.||Product and service labelling||GE-PR3||Very high||High||It is imperative to maintain ethical standards in advertising and marketing communications to deliver an unmatched customer service. We do this through transparent and honest marketing communications, ensuring customer privacy, complying with laws and regulations and always helping our customers to make well informed, independent decisions.|
|18.||Marketing communications||G4-PR7||Very high||High|
|19.||Customer privacy||G4-PR8||Very high||Very high|
|20.||Compliance||G4-PR9||Very high||Very high|
The matrix below is a visual summary of the ratings with the numbers depicting the different aspects listed above.
Value creation is a two-way process. This is because; the ability of our Company to create sustainable value for itself is also related to the value we create for our stakeholders. Hence, we distinguish between the Company and the stakeholder and we prioritise them by understanding their importance to us and why our Company is important to them. The materiality matrix discussed above underscores this process.
We take a broad view of value creation which remains our primary purpose. Our value creation activities use inputs from our main capitals – Financial, Institutional, Investor, Customer, Employee, Business Partner and Environment and Social Capital. The first two capitals, which are owned by the Company, are classified as ‘internal’ capital, whilst the rest which are not owned by the Company are classified as ‘external’ capital.
At the core of all what we do, lie our corporate vision, mission and values. They explain the reason for our existence and where we want to go. These are brought into focus through our corporate objectives which explain ‘what’ we want to achieve in the short, medium and long term. Our strategies explain ‘how’ we will transform our objectives into action plans.
Our strategies are implemented through business operations and the results are measured by key performance indicators (KPIs) which are focused on time bound specifics. A more holistic view of our business takes us to value creation and capital formation which are the outcomes. The section on Management Discussion and Analysis reviews both performance and outcomes.
Value creation is a dynamic process. There are flows between the various forms of capital all the time. We use monitoring and evaluation systems to manage the process. This leads to oversight mechanisms such as Corporate Governance, Risk Management and environmental scanning operating environment .
The process goes on as we relentlessly fine-tune our corporate strategy based on the outcomes.
The Management Discussion and Analysis that follows is structured along value creation and capital formation. This is supported by KPIs and measures. Hence, the discussion explains why we consider an aspect to be material, what we do to manage them and the manner in which we measure the performance and outcomes.