About
This Report
Table of Contents
This is Union National Bank’s (UNB) 2011 sustainability
Chairman’s Message
4
CEO Message
6
performance and impact. The report highlights UNB’s
About UNB
8
strategic direction and approach to the implementation
Why We Care About Sustainability
16
Our “We Care” Approach
18
Our Sustainability Framework 18
Our Sustainability Strategy
20
Our Perspective and Commitments 21
report, the Bank’s first annual report that covers
its integrated economic, social and environment
of sustainability management, the Bank’s 2009-2011
sustainability performance as well as commitment for
moving towards consistently achieving award winning
and long term performance.
This report has been developed using the Global
Reporting Initiative (GRI) G3 Guidelines, the most
We Care About Our Customers
22
We Care About Our Employees
30
achieved a GRI level A+ for transparency and disclosure;
We Care About Our Society and Our Business Partners
42
this has been checked by the GRI and confirmed (please
We Care About Our Environment
48
We Care About Our Shareholders
56
UNB is committed to producing an annual sustainability
Our Sustainability Key Performance Indicators - Summary
64
report to better engage and work with all stakeholders
Annexes
internationally recognized and used sustainability
reporting framework. We declare this report to have
see annex B for our GRI statement).
on key sustainability development topics. Therefore
UNB is interested in receiving stakeholders› feedback
on this report and encourages them to send their
notes and recommendations to the following email:
[email protected].
This baseline report covers all UNB Group operations in
the UAE which includes UNB, Injaz, Union Brokerage
Company(UBC) and Al Wifaq Finance Company. However,
the financial figures reflect the entire UNB Group
including the International subsidiaries & operations.
Annex A – Who We Care About
68
Annex B - Report Parameters
70
Annex C - GRI Application Level Statement 71
Annex D - GRI Index
72
Annex E - Glossary
77
Annex F - Acronyms
78
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UNB actively encourages
Chairman’s
Message
its employees to
participate in activities
supporting the community
and the environment.
On behalf of the Board of Directors, it is a great
pleasure to present to all our stakeholders UNB’s first
sustainability report.
Considering the challenging market conditions that
arose after the world’s recent financial turmoil, UNB has
continued to deliver solid results by maintaining strong
liquidity and proactively managing its asset quality. UNB
is aware that the road ahead is paved with both risks and
opportunities, and is taking the lead in responding to
these issues by considering sustainability as a vital part
of its business strategy. UNB’s sustainability activities
are fully aligned with Abu Dhabi’s Economic Vision 2030
guidelines and priorities to support the Emirate’s socioeconomic progress. UNB’s vision, mission and strategy
have been developed in consultation with all stakeholders,
guaranteeing an aligned and clear road-map to achieve its
long-term goals.
Since its inception, UNB has accomplished a lot in terms
of delivering customer service excellence while promoting
UNB‘s vision, mission and
local development. UNB was among the first banks in the
strategy have been
Small and Medium Enterprises (SMEs), and the partnership
developed in consultation
with all stakeholders
UAE to offer full service centers catering to the needs of
UNB’s hiring policy focuses on empowering fresh Emirati
graduates through training and skills enhancement
within the financial services sector. Furthermore, UNB’s
procurement is local-focused and plays a key role in the
local development by creating new jobs and opportunities.
UNB actively encourages its employees to participate in
activities supporting the community and the environment.
All these advances underscore UNB’s commitment to
continue investing on the sustainability agenda. We invite
all our stakeholders to continue partnering with UNB,
seeking innovative opportunities for collaboration and
sustainable business growth. It is our duty to create value for
our shareholders, our customers and our business partners.
We would also like to take this opportunity to thank all UNB
employees for their continued support and engagement,
without which our accomplishments would not have
been possible.
with Khalifa Fund is helping UNB to broaden its outreach
to support and encourage national entrepreneurs.
UNB is also proud to have an engaged and challenged
workforce.
UNB supports UAE’s Emiratization Policy,
and has a division exclusively dedicated to achieve the
set Emiratization objectives. To make sure the Bank is
H.H. Sheikh Nahayan Mabarak Al Nahayan
directly impacting Emiratization on a national level,
Chairman
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CEO’s Message
8
It is my pleasure to introduce UNB’s first sustainability
report, a key milestone in our long record in investing on
sustainable management practices.
business: “The bank that cares”. We are a bank that cares
about our customers, employees, society, environment and
our shareholders.
We believe that by launching this baseline sustainability
report, we are responding to our stakeholders’ needs
and expectations on higher levels of transparency and
accountability, while committing publicly to a set of
initiatives that will guide us towards achieving our mission
to deliver superior customer service, grow market share
and shareholder value and establish the Bank as the
employer of choice in the UAE. Furthermore, this report
also demonstrates our commitment and alignment to Abu
Dhabi’s overall sustainability agenda.
We care about our customers by ensuring that our business
operations are customer focused and equipped with a
number of tailored products and services to meet client
needs. In 2011, we were awarded the «Best Domestic Retail
Bank» award by the Banker Middle East Industry Awards. In
addition, as part of our strategy of growth, we are expanding
our operations to Kuwait, marking the third GCC country
where the Bank will be present, besides Qatar. UNB is also
present in China with a Representative Office in Shanghai
and in Egypt through UNB-Egypt with a total of 28 branches
across the country. When caring about our customers, we
also care about our society and business partners by ensuring
strategic and regular dialogues are conducted.
Sustainable Management represents a new landscape
for conducting business more responsibly. Changes in
consumer behavior and customer awareness are raising
the flag for more transparency in the way companies are
conducting their business and it is important that we, as a
bank and a catalyst for development, understand the risks
related to these changes and turn them into opportunities.
By accepting the challenges of embedding sustainability
management in our organizational performance and culture
as “The Bank That Cares”, we are aiming to position UNB as
the best in class for the banking industry in the UAE.
We are aiming to
position UNB as the best
in class for the banking
industry in the UAE.
In the past years, we have received several awards and
accolades as an affirmation and testament to UNB’s quest
for business excellence. We are the first commercial bank
in the world to be certified by M/s Lloyd’s Register Quality
Assurance (LRQA) Ltd. to the Integrated Management
System (IMS) comprising three standards in Quality,
Environment and Health and Safety Management (ISO
9001, ISO 14001 and OHSAS 18001). UNB is one of
the most stable banks in the UAE. This is reflected in its
consistent ratings and robust performance throughout
the years. Despite the global downturn UNB has achieved
consistent revenues and sustained business growth while
adhering to the highest quality standards for customer
service and operations.
To continue being among the best performing banks, we
have created a customer-focused and pro-community
motto that is the true essence of the way we conduct our
To be successful in business, we need ambassadors who
promote our brand and help create a pillar for delivering the
best customer service. We care about our employees, who
are our ambassadors and endeavor to contribute to their
personal well-being. Our employees benefit from a clear
strategy based on performance, and our “open door” policy
has created a working environment where everyone feels
free to address their issues regardless of titles. In 2011, we
received the “Dream Company to work for” award from the
Asian Leadership Awards, which not only recognizes our
good practices but also publicly emphasizes our image as
a Bank that is committed to empowering and developing
its employees.
We are the first commercial
bank in the world to be
We also care about our environment and we are committed
to enhancing environmental awareness amongst our
employees and customers. The implementation of the
Integrated Management System (IMS) will help us manage
our environmental performance, and some initiatives such as
recycling waste and purchasing recycled paper are already
raising awareness among employees on the importance of
conserving the environment. Last but not least, we care about
our shareholders through continually ensuring strong financial
performance, good governance practices and high levels of
transparency and accountability.
In 2012 we will be focused on further enhancing our
responsibility towards the community, employees and the
environment. This means that we will continue aiming for
customer loyalty by strengthening and delivering superior
customer service, listening to our customer’s expectations and
directly catering to them. At the same time, for our staff we
are looking at implementing new employee - focused programs
which will help in motivating them and performing even better.
Furthermore to support our community we will explore more
opportunities for community care programs that empower the
UAE youth and contribute to our nation’s overall workforce.
Moving forward, we will also strive to adopt innovative ideas
that mitigate the environmental impact of our business
operations while helping our stakeholders to reduce their
own environmental impact, and meeting our responsibility to
protect and develop the environment in which we operate.
To believe and commit to Sustainable Management is
fundamental to ensure quality to you, our stakeholder, in all
aspects of our business. We do not invest in sustainability for
publicity, we do it for conviction.
This report materializes our commitment to continue partnering
with our stakeholders by ensuring high levels of transparency
and accountability. Your feedback is of utmost importance and
we encourage you to join us in our sustainability journey.
certified by M/s Lloyd’s
Register Quality Assurance
(LRQA) Ltd.
Mohammad Nasr Abdeen
Chief Executive Officer
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About UNB
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ABOUT UNB
UNB acquired the erstwhile Alexandria Commercial and Maritime Bank in Egypt to set up operations as
VISION
UNB Egypt and has expanded its network to over 28 branches across the country. In addition, UNB is
2010-2018: “To be the best in class for the banking industry in the UAE”
one of the first banks in the UAE to open a representative office at Shanghai in China. UNB also has a
branch in Qatar at the Qatar Financial Center, Doha, and is all set to operationalise its branches in Kuwait.
MISSION
2010-2012: “To deliver superior customer service, grow market share and shareholder value, and
Partnerships and Memberships
establish the Bank as an employer of choice in the UAE”
Union National Bank (UNB) headquartered in Abu Dhabi is one of the leading domestic banks in
UNB’s partners include over 250 correspondent banks in nearly 50 countries, marketing and advertising
the United Arab Emirates (UAE). UNB is unique within the UAE banking sector, with 60% of its
agencies, IT software and hardware companies communication infrastructure companies, core banking
shareholding held by the government of Abu Dhabi and Dubai and 40% held by public investors.
solution providers, training and accreditation/certification institutions, facility management establishments,
as well as entities such as Visa International and MasterCard. Beside, UNB partners with several government
UNB delivers its services through a network of 80 branches and business offices across all seven
departments and regulatory authorities for a smooth conduct of its business operations.
Emirates in UAE. UNB offers a variety of products and services, addressing needs ranging from basic
requirements of individuals to the more complex requirements of corporate entities. UNB caters to the
UNB is a member of the Emirates Banking Association and also contributes to the Emirates Institute
retail, corporate and high networth clients offering conventional and Sharia compliant products and
for Banking and Financial Studies.
services to meet a range of banking requirements from basic individual needs to complex commercial
transactions. The bank also offers investments, brokerage and IPO related services.
UNB’s Journey Towards Excellence
We care about
Overview - Key Indicators 2011
Revenues (AED million)
2,838
Net Profit (AED million)
1,500
Total assets (AED million)
Number of branches/business offices
Number of employees
82,469
80
1,445
UNB has grown into a Group entity spread across geographical boundaries. Union Brokerage Company
(UBC), one of the leading and oldest brokerage firms in UAE, is a subsidiary of UNB and operates
through a network of three branches across UAE. Al Wifaq Finance Company is another subsidiary
offering Sharia›a compliant products and services and has 4 branches across the UAE.
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UNB ORGANIZATIONAL STRUCTURE
ABOUT UNB
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ABOUT UNB
• Our net profit increased by 11.1% in 2011.
• UNB has been recognized in the World Finance 100 list for 2011.
• UNB recognized as a ‘Superbrand’ in 2011 and 2012.
• First commercial bank in the world to be certified by M/s Lloyd’s Register Quality
Assurance (LRQA) Ltd. to the Integrated Management System (IMS) comprising of
three standards, ISO 9001, ISO 14001 and OHSAS 18001 for the entire bank and its
operations including branches and alternate delivery channels throughout UAE.
Key Achievements
• UNB has been consistently ranked in the Top 2 with regard to Customer Service,
based on Customer Satisfaction Benchmarking surveys carried out by reputed
external market research agencies. UNB’s Complaint Management system is
certified to ISO 10002 Standards.
• UNB was ranked amongst the Top 50 Safest Banks in Emerging Markets in
2011 – Global Finance.
• 2011 Brand Leadership Award at the Global Awards for Brand Excellence.
Other Prestigious awards & Recognitions conferred upon UNB
• 2011 Stevie Distinguished Honoree - Executive of the Year Financial Services for
UNB CEO at the International Business Awards.
• 2011 Stevie Distinguished Honoree - Company of the Year Financial Services at
the International Business Awards.
• 2011 People’s Choice Stevie Awards for Favorite Companies at the International
Business Awards.
• “Dream Company to work for” Award (2011) at the “Asian Leadership Awards”
• 2011 Golden Award for Quality from the Arab Administrative Development
Organization member of the Arab League and Tatweej Academy for Excellence
and Quality.
• “CEO of the Year” at the CEO Middle East Award (2010).
• UNB won the Dubai Quality Award for the 2nd consecutive cycle (2009).
• UNB won the Sheikh Khalifa Excellence Award (SKEA) Gold category for the 2nd
consecutive cycle (2009).
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Why We
Care About
Sustainability
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WHY WE CARE ABOUT SUSTAINABILITY
Our “We Care” Approach
For UNB, sustainability management can be seen as an evolution of our position as “The Bank That Cares”.
Based on the principle of creating value for all of our stakeholders the “We Care” approach is focused on
the systematic understanding and addressing of the issues that our stakeholders care most about.
Priority Sustainability Area
Key Issues
• High-quality customer service and delivery
We Care About Our Customers
• Innovative products and services
• Financial inclusion
• Diversity and Emiratization
strategy accordingly to address these issues.
We Care about Our Employees
• Employee engagement and satisfaction
• Employee training and development
Although often not seen as a stakeholder, we see the inclusion of the environment as an important
• Employee well-being and benefits
We Care About Our Society and
Our Business Partners
• Strategic community investment
We Care About
Our Environment
• Efficient operations
Our Sustainability Framework
Following on from our approach, our sustainability framework has been built on the five stakeholder
groups that we feel are most impacted by the bank, or have a major influence over the bank’s
operations. These include our customers, employees, society and business partners, the environment
and shareholders. We have determined what the top issues are for each stakeholder and tailored our
strategic move given that environmental risks and opportunities continue to have a substantial impact
on our economy, society and nation, and thus our business. For more information on the analysis of
our stakeholders needs and our response, please see Annex A.
• Social inclusion and financial literacy
• Strategic business partners and strong relationships
• Protecting the environment through responsible banking
• Risk-registers in all locations
• Strong financial performance and shareholders return
We Care About
• Strong governance practices – including risk management
Our Shareholders and compliance
• Transparency and accountability
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Our Sustainability Strategy
We see the implementation of sustainability management and reporting as an opportunity to build a
unique advantage in the marketplace. Our sustainability strategy is built on three key components,
WHY WE CARE ABOUT SUSTAINABILITY
Our Perspective and Commitments
Priority Sustainability Area
UNB Perspective
Our 2012 Commitment
We Care About
Our Customers
UNB strives to provide high-quality services and
customer care to all its customers and potential
customers. UNB aims to provide innovative and
sustainability-oriented products and services
while increasing its customer base in current
segments as well as under-served segments
• Conduct an assessment of all retail
products to identify opportunities for
integrating sustainability principles
• Engage with two corporate customers
on adopting sustainability management
and reporting
We Care about Our
Employees
Human capital is core to UNB’s success. UNB
spares no efforts in investing and developing
its employees, and engaging them in achieving
its targets while providing a healthy working
environment and competitive remuneration
packages and benefits.
• Conduct two sustainability training
sessions for all employees
• Integrate sustainability into employees
job description
• To increase annualized intake of new
UAE National recruits by 4% every year
We Care About
Our Society and
Our Business Partners
As a community member, UNB takes
responsibility for contributing to community
development through responsible lending and
strategic community investment that contributes
to financial inclusion and enhances financial
literacy. UNB aims to systematically engage with
its business partners to achieve this through
strategic partnerships.
• Enhance UNB community investment
projects and their impact through the
development of Community Investment
strategy that incorporates UNB’s core
competencies into its community
investments
•Develop UNB current procurement
policy and guidelines to incorporate
further sustainability criteria
We Care About
Our Environment
UNB respects the environment and aims to
achieving environment friendly operations
through the adoption of energy efficient
practices while minimizing materials
consumption in all its operations. UNB also
recognizes that financial institutions are
strongly linked to other strategic sectors at
the national level, and accordingly UNB works
to mitigate its environmental impact in its
investments and lending processes.
• Reduce UNB’s greenhouse gas emissions
through reduced resource consumption
arising from internal awareness and
new technology adoption
We Care About
Our Shareholders
UNB realizes that adopting sustainability
management provides wide range of opportunities
of products and services innovation that could
lead to increased business and revenue leading to
improved shareholder value. UNB would support
this approach by adopting best governance,
accountability and transparency practices.
• Issue a GRI level A+ sustainability report
•Create a sustainability stakeholder
council to inspire co-innovation and
collaboration
drawn from an analysis of our stakeholders and current context:
1.World leading management systems
UNB is the first commercial bank in the world to be certified to the Integrated Management System
(IMS) comprising of ISO 9001, ISO 14001 and OHSAS 18001 standards. Through sustainability we
aim to leverage and broaden our management systems to generate greater levels of performance
that outpaces the market, and satisfies the needs and expectations of stakeholders.
2. Award Winning Leadership
Sustainability management, and especially public sustainability reporting will help us to further
develop the measurement and transparency of the performance that has helped us to win
numerous awards. This will allow our stakeholders to be the judges of our success, not just award
panels.
3.Innovation
We shall actively seek to work together with all our stakeholders to demonstrate “Care”
by developing products and services that provide financial benefits alongwith enhanced
environmental and social benefits. In addition, we will foster sustainability in our value chain
and workplace, encouraging everyone to innovate and propose more sustainable solutions to
existing operations.
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We Care About
Our Customers
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WE CARE ABOUT OUR CUSTOMERS
WE CARE ABOUT OUR CUSTOMERS
UNB’s excellence in performance in terms of customer service and products and services innovation, highlighted in this section,
was recognized and awarded in several areas:
UNB Perspective
Our 2012 Commitments
UNB strives to provide high-quality services and customer
care to all its customers and potential customers. UNB aims
to provide innovative and sustainability-oriented products
and services while increasing its customer base in current
segments as well as under-served segments
• Conduct an assessment of all retail products to identify
opportunities for integrating sustainability principles
• EveryDay Interest Savings Account wins Best Savings Account Award at the 2011 Banker Middle East Product Awards
• Engage with two corporate customers on adopting
sustainability management and reporting
• “Extra” credit card received Best Credit Card Award at the 2010 Banker Middle East Product Awards
Abu Dhabi Economic Vision 2030 Objectives
• Superbrands Award for 2011 and 2012
• “Best Domestic Retail Bank» award at the 2011 Banker Middle East Industry Awards
• Engage with corporate clients to determine their
capabilities for IMS implementation and set a mechanism
to incorporate the weightage of the same for credit
evaluation in the future
UNB Contribution
Participating in the Khalifa Fund – a program to support and develop small
and medium enterprises (SMEs)
1. Enlarge the enterprise base
2. Stimulate faster economic growth in
the regions
UNB provides Microfinance to SME non-banking customers in order to
enhance their financial skills and provide them with the required banking
services and finance that supports their growth and business elevation
from one sector to another.
UNB launched the Medic Loan; The Best Innovative SME product in
the Middle East as per “Banker Middle East 2011 Product Awards”.
UNB’s “Medic loan is an SME product that provides healthcare providers
easy access to finance.
UNB also launched the innovative prepaid Hadiya Gift Card for the first
time in the UAE.
In cooperation with the Abu Dhabi Cooperation UNB launched Extra credit
UNB has around 200,000 retail customers who are served through an extensive network of branches and through a range of
card offering exclusive discounts for the Coop’s shoppers as well as cash back
convenient and flexible delivery channels. More than 37% of UNB’s retail customers have a relationship with the Bank for longer
than 5 years.
Customers are the central component of our “We Care” approach, one of the main reasons for us winning “Best Domestic Retail Bank”
award at the 2011 Banker Middle East Industry Awards. Customers are our most important stakeholders we strive to not only care for them
by satisfying their banking needs, This is why we will continually aim to better engage customers in the development and implementation
of new and innovative products and services that combine financial sense with enhanced environmental and social benefits.
Our ‘consumer sector’ customers have been growing and represent 20% of our total loans and advances in 2011, followed by ‘real
estate sector’ customers and ‘government sector’ customers which account for 16% and 14% of our loans and advances in 2011,
respectively.
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Product and Service Development and
Innovation
Our Products and Services
UNB offers a variety of products and services, addressing needs ranging
from the fundamental requirements of the individuals to the more specific
requirements of corporate entities or investments. Our main business lines
include retail banking, corporate banking, SME banking, real estate banking,
Islamic banking and private banking for high net-worth customers offering
conventional and Sharia›a compliant products and services.
Our International and Investment Banking Division offers various services
comprising of structured finance, treasury and investments, private banking
and wealth management in addition to brokerage services through UNB›s
subsidiary “Union Brokerage Company” (UBC).
Developing Innovative Products and Services
Creativity and innovation are integral to our product development
methodology. Input is taken from both internal and external partners to
design, develop and deliver competitive products and services that really do
respond to what our customers expect from a bank that cares.
To ensure that our customer’s inputs and needs are captured and integrated
into our products and services a variety of surveys are administrated by a
dedicated Research and Business Development department that works in
close coordination with the Product Development team.
WE CARE ABOUT OUR CUSTOMERS
Other innovative products and services:
•SMART Account: A Unique account that addresses
the issue of involuntary job loss in the market
place. Customer can choose an insurance benefit
up to a maximum of AED 50,000 per month for a
period up to 12 months. In addition, the customer
is also eligible for a cover of AED 200,000 in case
of death due to any reason.
•Every Day Savings Interets: An account that
credits interest on a daily basis to the account. In
order to encourage customers to save more, the
product pays higher interest for higher amounts
saved in the account
•SME Medic Loan: A unique product that is
designed and targeted to SMEs involved in the
medical sector such pharmacies, diagnostic
centres, laboratories etc. The customer can
receive a loan for business expansion, cash flow
management etc.
•UNB Hadiya Pre-paid Gift Cards: UNB was the
first Bank in the UAE to launch the concept of
pre-paid Gift cards with Hadiya
•Extra Card: UNB partnered with Abu Dhabi
Co-operative Society to introduce an exclusive
shopping card offering significant rewards and
incentives to UNB Extra credit card holders at
ADCOOP outlets in terms of cashback as well as
exclusive discounts on everyday shopping items as
well as high end electronic items
As a bank that is committed to actively contributing to the Abu Dhabi
Economic Vision 2030, we see our commitment to sustainability and product
In a bid to further support the growth of the small business sector in the UAE, UNB introduced new and innovative
financial solutions for SMEs among which was UNB’s “Medic loan”; The Best Innovative product in the Middle East
as per “Banker Middle East 2012 Product Awards”. UNB’s “Medic loan” is an SME product that provides healthcare
providers easy access to finance with simple documentation. The purpose of the loan facility could be for equipment
purchase, expansion or cash flow requirements. Customers can choose from a combination of loan or overdraft or both
depending on their needs. UNB introduced this product as the Medical segment has largely been overlooked by financial
institutions and financing options have either been structured on the basis of corporate customers or at very high
rates. “Medic loan” addresses the funding needs of all private sector healthcare providers such as hospitals, medical
centers, clinics, labs and pharmacies authorized by health authorities. The facility is offered to those who have service
agreements with one or more insurance company against assignment of proceeds to UNB.
In addition to the “Medic loan” UNB offers a wide range of SME products including commercial loan, rental loan. UNB
also provides finance to specialized business requirements such as buying equipments, importing goods, issuing letters
of guarantee as well as its special UNB SME credit card.
UNB also provides Microfinance to SME non-banking customers in order to enhance their financial skills and provide
them with the required banking services and finance that supports their growth and business elevation from one sector
to another.
Through UNB›s variety of SME products UNB expands its financial facilities among diversified segments offering
finance to various industries including education, health commercial and industry as all play a vital role in the UAE›s
economic development.
Service Management, Customer Care
and Satisfaction
We are committed to being the bank that cares. That is why our focus has
always been on staying close to the customers, listening to them, engaging
with them, meeting their requirements, exceeding their expectations and
and service innovation as an ongoing mission. We continue to work on developing innovative products and services that meet and
focusing on earning their trust and loyalty. UNB has a dedicated customer
align customers’ requirements to national, social, environmental and economic requirements and vision.
care unit as well as a Research and Business Development Division that
Supporting Micro enterprises and SMEs
UNB is one of the few banks in the UAE to offer dedicated service centers specifically catered to supporting micro-enterprises and
conducts regular customer satisfaction surveys and monitors customers’
feedback through different tools such as mystery shopping surveys.
SMEs. In 2011, we partnered with Khalifa Fund1 through providing various services to UAE national entrepreneurs to encourage
Our Network
them to become successful business owners and thus increase the number of projects and business enterprises created and
UNB utilizes a variety of mediums in determining the customers’ day to day
managed by UAE nationals. In 2011, the total number of SMEs customers was around 5,000 accounting for a significant portfolio
requirements including customer service officers, relationship managers and
within the Retail Business.
the customer call center, depending on the customer group.
UNB Network
Branches/Business offices
80
ATMs167
In addition to our branches and ATMs, we have also worked hard to launch
a variety of new more flexible and convenient technologies that allow our
UNB signed a Memorandum of Understanding (MOU) with Khalifa Fund. The Khalifa Fund supports the Small and Medium Enterprises (SMEs) sector and is committed
to driving the adoption of an entrepreneurial culture among Emirati youth. The Fund supports successful businesses founded and nurtured by UAE nationals.
1
customers to conduct banking services anytime, anywhere. Our delivery
channels include:
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• ATM Banking: Ensuring the customers’ reach and ease of banking, our
ATM network extends to 167 ATMs across the UAE. ATM banking offers a
wide range of services with convenient locations within each emirate. In
addition to traditional cash related services, our ATMs offer remittances,
bills payments, and inquiries services.
WE CARE ABOUT OUR CUSTOMERS
Internet Banking
Number of customers (Index)
2009
2010
2011
N/A
100
145
Banking in Remote Areas
the services offered are inquiry, remittances, cards services, donations,
UNB has been consciously increasing its presence
in the UAE through a wide network of branches
offering more convenience to its customers.
Through its expansion strategy UNB has focussed
on improving its presence and reach in remote
areas, with around 29.1% of our retail branches in
remote areas as of 2011. UNB is also one of the
only Banks to offer financial services through its
retail branch at Habshan, in the Western Region
• Phone Banking – Unicall: Unicall is our phone banking channel offering
a wide range of banking services to our customers on a 24/7 basis.
Services offered covers both enquiries and financial transaction services,
including remittances, bills payments, cards services etc.
• Call Center: We have a dedicated team of customer service representatives
of Abu Dhabi.
enquiries or interest shown by non-customers. Our team of call center
representatives are highly trained and monitored to ensure the highest
85%
88%
87%
Corporate banking customer satisfaction
81%
79%
82%
telephones and email address. We also encourage customers to voice
their opinion through “Viewpoint” feedback forms which are available at
all branches.
All complaints received are analyzed to identify root cause for corrective
and preventive actions. Necessary reports are submitted periodically to the
relevant managers and action plans are sought from them to address the
areas for improvement in a time-bound manner. UNB’s complaint resolution
process is unique as an independent validation is conducted for all resolved
complaints. In case the client is not completely satisfied with the resolution,
who are available 24/7 to serve all customer needs. Our call center
offers a range of services to customers in addition to catering to any
Retail Banking customer satisfaction
customers to express their views or submit queries through dedicated
that offers the utmost services to our customers around the clock. Among
related services.
2009 20102011
The UNB Customer Care Unit (CCU) provides a variety of channels for
• Internet Banking - Uninet: Uninet is the main electronic channel
utilities payments, 3rd party payments, and account maintenance
the case is re-opened for investigation. UNB’s Complaint Management
Business Groups
Frequency
of Survey
system is certified to ISO 10002 standards.
We are proud that there have been no breaches of confidential customer
Retail Banking Annual
data during the reporting period. We have also a fully equipped Business
Corporate Banking Annual
Continuity Plan (BCP) and a Disaster Recovery site. BCP testing is being
Commercial and SME banking
Annual
the customers on all their banking transactions and account/ credit card
Real Estate Annual
related movements. Pull Service is another offering that allows customers
Al Wifaq Finance Company
Annual
to obtain financial information related to their accounts/ credit cards, in
Union Brokerage Company
Annual
Private Banking & Wealth
Management
Annual
level of quality, meeting international call center standards.
• Mobile Banking: Mobile banking is another electronic channel that is
available to our customers. This channel offers Push Services that alerts
addition to transaction related services, such as cards activation.
Customer Care and Satisfaction
conducted annually from BCP site to ensure that identified critical activities
can be carried out and customers can be served irrespective of any crisis
or contingency from the alternative location even if the main server or the
premises is not available.
Our Marketing and Communication
We firmly believe and have inculcated the habit of fairness and transparency
across the organization. It is the policy of the Bank to clearly outline to the
To build, maintain and enhance our relationship and knowledge of our
customers the terms and conditions of each product and service including
customers, independent customer satisfaction surveys are conducted for
the fees and charges and all our communication channels consistently
each business group within UNB on a regular basis. The table across shows
maintain the corporate ethic and help in strengthening the core position
the frequency of customer satisfaction surveys per business group. In 2011,
of UNB as a bank that cares. These charges are clearly displayed in the
UNB achieved a total customer satisfaction percentage of 87% among
branches as well as on the banks web-site. In a recently launched product,
its retail customers and 82% customer satisfaction among its corporate
the Bank has also introduced a 30 day free trial period whereby customers
banking customers.
can avail the product and choose to opt out of the product, if so desired,
We encourage our customers to provide their feedback, suggestions and
without any charges.
complaints, so that we can continue to improve our processes, products
and services.
Customer privacy breaches
2009
2010
0
0
2011
0
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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We Care About
Our Employees
S U S T A I N A B I L I T Y R E P O R T 2 0 11
34
We Care A bout O ur E mployees
We Care About Our Employees
Our Workforce Profile, Diversity and Emiratization
Over the past few years, the impact of the economic crisis has pushed many companies to reduce their
UNB Perspective
Our 2012 Commitments
Human capital is core to UNB’s success.
UNB spares no efforts in investing and
developing its employees, and engaging
them in achieving its targets while
providing a healthy working environment
and competitive remuneration packages
and benefits.
• Conduct two sustainability training sessions for
all employees
increasing the number of employees year after year and maintain healthy hiring rates. We have also
•Integrate sustainability into employees job
description
past three years.
• To increase annualized intake of new UAE
National recruits by 4% every year
Abu Dhabi Economic Vision 2030 Objectives
UNB Contribution
14% of our employees are Emiratis
1.
Increased participation of nationals in the
workforce, especially in the private sector
2.
Expanded skilled workforce and reduced
dependence on unskilled Labor
3.
Increased national workforce participation
and employability
4.
Optimized use of the workforce
5.
Enhanced workforce productivity
Working with the UAE Academy, Higher Colleges
of Technology and UAE University to develop
curricula that ensures employability upon
completion, helping to improve the overall
number of Emirati workforce. Union National
Bank signed an agreement with the Higher
Colleges of Technology (HCT) to establish the
‘Union National Bank Chair of Financial Services’.
Through the agreement, HCT has set up the
‘Union National Bank Chair of Financial Services’
fully sponsored by UNB. This reflects UNB’s
commitment to harness local talent.
Encouraging all staff to continue acquiring
relevant higher professional qualifications (for
example, Certified Islamic Banking Professional,
Chartered Financial Analyst, etc.) and support
with fees reimbursement and learning resources.
Union National Bank implemented an In-House
accreditation program for its Retail Banking
staff. The accreditation process involved selfstudy, group study, training coupled with
e-learning programs, followed by assessments to
be completed by all the branch staff.
hiring activities or even the number of people they employ. At UNB we have managed to continue
achieved consistent increases in our Emiratization rate and female employment year on year for the
Employment by level
2009
2010
2011
Senior Management
51
58
57
Middle Management 308
324
334
Staff 995
978
995
Total 1,354
1,360
1,386
We strive to attain a reasonable mix of cultures to make the bank reflect the demographic indicators
of the region as closely as possible. This has been achieved through targeted selection and natural
attrition. By the end of 2011, the number of UNB employees in the UAE was 1,445 – including
subsidiaries – from 30 different nationalities, of which 14% were Emirati and 86% non-Emirati.
Employment by contract 2009
2010
2011
Full-time employees 1,354
1,360
1,386
Part time employees 51
77
59
1,405
1,437
1,445
114
235
254
Total work force Number of new joiners UNB’s Emiratization strategy focuses on recruiting and training fresh graduates offering them an
opportunity to gain valuable banking experience, which helps them build successful careers in the
financial industry. As a consequence, the Bank helps in increasing the calibre and quality of UAE
nationals joining the work force in the financial sector as a whole. As a responsible corporate institution
UNB through its Emiratization strategy supports the development of the UAE community and invests in
building careers of young Emiratis unlike other institutions that usually insist on recruiting employees
with prior experience. UNB is also committed to developing their skills through on the job practical
training, sponsorship programs, summer trainings and open employment days.
While increasing employment opportunities overall, we have continued to increase the percentage
of UAE nationals demonstrating our commitment to supporting the hiring and training of the local
population, in line with Abu Dhabi Vision 2030 which emphasises the support of the Emiratization
initiative. This has been achieved by identifying and developing a pool of well educated and highly
qualified nationals.
S U S T A I N A B I L I T Y R E P O R T 2 0 11
36
Employment by Nationality
We Care A bout O ur E mployees
2009
2010
2011
Percentage of Nationals
10%
13%
14%
Percentage of Expatriates 90%
87%
86%
33
31
30
Number of Nationalities employed
Initiatives that support Emiratization include:
• Working with the UAE Academy, Higher Colleges of Technology and UAE University to develop
curricula that ensure employability upon completion helping to improve the overall number of
Emirati workforce.
• Creating a dedicated post of Emiratization Manager and a dedicated Emiratization Department
• UNB is keen on recruiting fresh graduates into the workforce and is committed to attracting
UAE nationals and developing their skills through implementing special strategies which include
practical training for UAE graduates as well as sponsorship programs and summer trainings.
Employee Engagement and Well being
As an organization that cares for its employees, we aim to create a dynamic environment that
motivates and enthuses the team to participate in improvement activities. This is practically achieved
Workforce by Gender 2009
2010
2011
391
417
430
Male 1,014
1,020
1,015
Total 1,405
1,437
1,445
Female through different engagement channels such as; the open door policy, meetings schedule, performance
management process, explicit policies and procedures and recognition , employee suggestion schemes
and reward programs and staff fraternization activities.
An Engaged Team
Our ‘open door policy’ practiced across the organization allows employees at all levels to communicate
with any senior manager.
We are dedicated to ensuring equal opportunities are provided for both male and female employees
from all nationalities across all divisions and at all levels of our organization. This includes ensuring
equality in compensation and benefits for all employees.
The scheme encourages employees to make suggestions for continual improvement at the bank, and
has met with significant success by enhancing involvement of staff as the primary stakeholders of the
At end of 2011, 30% of our employees were female, an increase of 10% from the year 2009. Female
participation in UNB’s workforce is not limited to one employment level but spans across all employment
levels as demonstrated in the table below.
Female Participation in the Workplace and Management (%)
An important tool for employee engagement is the staff suggestion scheme titled “The Challenge”.
bank. This scheme provides a systematic framework to the staff to suggest ideas for reducing cost and/
or improving quality, service or productivity. The ultimate goal is to encourage initiatives for bringing
in a culture of continuous improvement through staff involvement. This scheme has been functional in
the bank since Sept 2001 and has been continuously reviewed and refined for improvement.
20092010 2011
% of Total Workforce - Female
28%
29%
30%
% of General Staff- Female
37%
40%
40%
% of Middle Management - Female
7%
8%
10%
% of Senior Management - Female
2%
3%
4%
The Challenge Suggestion Scheme
2009
2010
2011
Number of suggestions received
179
256
211
Number of suggestions approved/
implemented
20
35
48
Fraternization programs to encourage bonding beyond the workplace such as children’s programs,
bowling events and desert safaris are regularly conducted at various locations.
S U S T A I N A B I L I T Y R E P O R T 2 0 11
38
We Care A bout O ur E mployees
makes a contribution to the scheme equal to the contribution made by the employee. The employee
is entitled to get the full amount at the time of leaving the organisation.
300
We are aware of the need and positive impact of recognizing both team and individual efforts and
270
this has been embedded as a shared core value. At a team level, since 2005 the “Best Service Branch
240
Award”, and since 2007 the “Best Corporate Service Division Award” have been awarded annually to
210
180
recognize superior performance of the branches in the Retail Banking and Corporate Banking Divisions
150
respectively. These awards are primarily based on customer service attributes tracked and monitored
120
through mystery shopping surveys, service quality facilitation, customer satisfaction surveys etc.
90
60
Health and Safety
30
Demonstrating our dedication to employee wellbeing, our health and safety performance has been
0
excellent having recorded zero injuries and lost days for the last five years. Certification to the Integrated
Management System, consisting of ISO 9001, ISO 14001 & OHSAS 18001 has earned UNB the distinction
of becoming the first commercial bank in the world to be certified by LRQA on the three standards.
Performance Management
The leaders of our organization provide support to staff to achieve their objectives and targets through
continuous on-the-job guidance, performance development reviews, in addition to developing clear
Occupational Health and Safety 2009
2010
2011
policies and procedures that delineate well defined roles, responsibilities and accountabilities. High
Rate of Injury
0
0
0
Rate of Occupational Disease
0
0
0
performance development reviews of staff. The Management ensures consistency and objectivity in
Lost Days
0
0
0
the process and directly links the performance with the rewards.
Absenteeism
0 00
Number of Work-related fatalities
0
quality and efficient performance are considered as the basis of reward and recognition, and hence
the performance of all employees is reviewed regularly. Organizational leaders oversee the annual
Performance Review Percentage of employees undergone
performance review
2009
2010
0
0
2011
UNB buildings are equipped with appropriate fire fighting equipments; Regular fire drills are conducted,
94%
93%
94%
and training provided to the select group of staff to assume the role of safety wardens. First aid boxes
are available in each branch and each floor of the head office. Staff are also trained and briefed on
Reward and Recognition
Based on the prevailing market practices, and in compliance with the UAE Labor law, UNB offers staff
benefits such as low-interest loans, leave air passage and education subsidy. We also have free medical
insurance for all the staff and their family members (100% premium subsidy for spouse and up to three
children), savings scheme, and free credit cards.
fire fighting and other safety and security procedures on a periodic basis.
In 2011, we also conducted several health awareness sessions for our staff which focused on healthy
living and the preventive measures to avoid serious diseases and critical illnesses including:
• Benefits of Quitting Smoking and How to Kick the Habit, 2011
• Free Spinal Health Evaluation Day, 2011
The key differentiating factors that form the backbone of our reward policy include:
• Similar benefits across levels - loan entitlements are linked to the salary multiple and do not
differentiate employees based on levels.
• Staff loans at less than the inter bank offer rate.
• We also bear the passports renewal costs for staff as well as their families
• Support staff members to obtain visit visas for their family members.
• We have a unique Voluntary Employee Savings Scheme (VESS), wherein the employee pays a
percentage of his basic salary as savings into this scheme. On a reciprocal basis, the Bank also
• Healthy Living - Heart Care, 2011
• Cervical Cancer Awareness
• Breast Cancer Awareness
• Sheikh Khalifa Medical Centre – Health Check-up Mar 2012
S U S T A I N A B I L I T Y R E P O R T 2 0 11
We Care A bout O ur E mployees
40
Human Rights
UNB complies with national laws and regulations concerning human rights.
We do not allow any
form of forced labor and we do not hire any employee below the minimum legal age. Discriminatory
practices are unacceptable and we are proud to have recorded zero cases of discrimination for the last
UNB Fellowship Program – Ms. Sabha Al Dhafri
In 2010, Ms. Sabha Al Dhafri, a UAE National Branch Manager, was selected for the prestigious
Hubert H Humphrey Fellowship Program after a rigorous selection process.
three years.
This initiative has been driven by UNB’s policy of developing UAE Nationals and providing them
with opportunities to grow and develop.
We try to watch our human rights performance in all our supply chain and plan to embed human rights
Ms. Sabha was on the fellowship for 14 months. She had the distinction of being the only lady
from UAE to have received the Fellowship. Sabha successfully completed the program and has
rejoined UNB equipped with the leadership skills she learnt through her fellowship
clauses into our contracts throughout our supply chain.
Employee Training and Development
Regular training and development initiatives ensure that staff members have the requisite skills and
Training Company-Wide capabilities to handle both the present and the future needs of the bank.
Total number of Training hours provided*
Think Bank
Average hours of training per year per employee
24.58
28.89
28.14
Think Bank, ‘Continuous Learning’ initiative was launched in February 2005 to promote organizational
Cost of Annual Training (AED’000)
3,195
3,083
2,651
and individual learning. The objective is to promote a ‘learning culture’ by enthusing staff to:
2009
2010
2011
34,421 40,44939,396
* Training hours have been estimated where actuals have not been computed
1) Be aware of and appreciate good practices
2) Introspect on how these could be applied in thework situation
We encourage all staff to continue acquiring relevant higher professional qualifications (for
3) Implement progressive changes
example, Certified Islamic Banking, Chartered Financial analyst, etc.) and will often support with fees
reimbursement and learning resources by the bank. UNB invests around AED 1.3 million annually in
Training is provided to the staff based on:
the EIBFS training.
1) The identification of training needs as identified by the division / group head / bank.
2) The individual needs identified by staff through their individual development plans.
Employee Satisfaction and Turnover
The Learning & Development function offers adequate facilities for learning and highly
We have conducted annual staff satisfaction surveys
competent faculty.
In addition the Learning Resource Centre has many books, magazines,
regularly since 2000. The staff satisfaction survey generally
Asian Leadership
CDs and DVDs across a range of relevant subjects for all employees to explore and gain from.
measures 13 key dimensions that impact staff satisfaction
The bank also offers e-learning as one of the most contemporary, convenient and effective
Award:
and can be clustered into three main categories:
“Dream
1) Job content and immediate superior,
Company to
2 Work environment within the group or division, and
work for”, 2011
ways of learning.
Staff can enroll online and access a wide variety of courses based on
their needs.
With the objective of developing people through work experience, on-the-job training is regularly
3) Compensation package and related organizational issues.
provided to the staff. This has proved beneficial especially for the Emiratis recruits, many of whom
join the bank without any prior banking experience. Specific emphasis is placed by UNB on training of
Turnover
2009 20102011
UAE nationals, who attend various programs to hone their competencies.
Total Turnover (%) 11%
14%
18%
Total Turnover (%) excluding INJAZ 11%
13.5%
15.5%
Senior Management 0.4%
0.4%
0.5%
Middle Management 2.1%
2.3%
2.4%
Staff 8.5%
11.3%
14.1%
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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We Care A bout O ur E mployees
In 2011, we achieved 69% staff satisfaction in comparison to 70% in 2010, with an average response
rate of 92% in 2011. This has been achieved by engaging with staff, communication of the results and
by setting SMART action plans for improvements based on the findings.
Turnover by Gender Turnover number of female employees
Turnover number of males employees
2009
2010
2011
48
66
81
Employment by Region 2009
2010
2011
Staff from Dubai
245
246
264
Staff from Abu Dhabi
986
1,013
996
Staff from Sharjah & Northern Emirates
174
178
185
Total
1,405 1,4371,445
Workforce by Age
2009
116137165
2010
2011
The feedback arising from the staff satisfaction survey is continually used by the leadership to draw
18–30
522 494460
up and implement timely action plans to address any persisting or one off issues that arise from the
31–40
539 593616
41–50
183 194221
51–60+ 161
Total
results. This serves as another tool for the bank to remain closely connected, actively listening and
responding to the voice of our staff.
Turnover by Age (number of employees) 2009
2010
2011
18-30
72 85115
31-40
568490
41-50
161518
51-60+
201923
Total
164203246
In addition to creating an engaging, motivating and friendly working environment, we measure
our staff turnover and always strive to minimize it. Our high satisfaction rate was reflected on an
employee turnover rate of 18% for UNB in 2011. This turnover includes employees for Injaz Sales &
Marketing, the Direct Sales & Marketing arm for UNB which typically has a higher rate of employee
turnover. Further the turnover tends to be higher amongst the younger age category and within the
junior level staff.
156
148
1,405 1,4371,445
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We Care About
Our Society and
Our Business
Partners
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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We Care A bout O ur S o c iety an d O ur B usiness P artners
We Care About Our Society and Our Business Partners
UNB Perspective
Our 2012 Commitments
As a community member UNB takes
responsibility for contributing to
community
development
through
responsible lending and strategic
community investment that contributes
to financial inclusion and reduces
financial literacy. UNB aims to
systematically engage with its business
partners to achieve this through
• Enhance UNB community investment projects
and their impact through the development of
Community Investment strategy that incorporates
UNB’s core competencies.
relationships with over 250 global banks to ensure efficient services to its customers worldwide. Our
policy for selecting and managing partner relationships is clearly linked to our vision, mission, and
strategic objectives, and thus serves as a framework to ensure that partnerships help deliver on our
strategic goals.
• Develop UNB procurement policy and guidelines
to incorporate further sustainability criteria
The Financial Institutions & Structured Finance (FI&SF) Division develops and maintains all international
correspondent-banking partnerships. This allows corporate and retail customers have access to the
world through banks in more than 50 countries.
Effective supply chain partnerships that add value to UNB and its customers...
•Streaming utility bill payments - The tie up with Dubai e-government, Etisalat, Du, Abu
Dhabi Distribution Company (ADDC), Dubai Electricity and Water Authority (ADWEA), Sharjah
strategic partnerships.
Electricity and Water Authority (SEWA) and Al Ain Utility through a direct link-up from the
Bank’s Online (Uninet) as well as the partner’s website for instant utility bill payments.
Abu Dhabi Economic Vision 2030 Objectives
1.
Enhance competitiveness
2.
Environmental Sustainability
3.
Streamlined Government Processes
4.
Optimal Government Spending
UNB Contribution
Regular dialogue with partners and suppliers to
enhance service efficiency
Strategic partnerships to improve performance
and customer value
Enhanced government operations that add
customer value
Strategically planned community initiatives
•UNB has also partnered with Gemalto International – the world leader in digital security
for the introduction of advanced payment chip-based cards to all its card customers,
•Partnering with Visa for improved products and customer service - Visa International
has consistently supported the Bank to launch various new products such as Hadiya Gift
card, Cashback card and International Travel card, as well as improve efficiencies in various
operational domains e.g. through benchmarking and improvement of authorization rates
which has resulted in better customer service and usage of the cards.
•Innovating in Insurance - UNB’s partnership with Arab Orient Insurance resulted in providing
travel insurance and credit shield insurance. UNB was amongst the first banks in the region
Business Partners
to bundle a loss of employment offer with the standard personal accident insurance cover.
UNB follows a policy of partnering with leading organizations in order to develop mutually beneficial
relationships that bring value to the partner as well as the customer and all other key stakeholders.
•UNB has also partnered with Oman Insurance Company in jointly developing the innovative UNB Smart Account product.
Building Impactful Business Partnerships
Identification of partners is based on well-defined
criteria including their quality of service, ability to
provide solutions and financial strength.
We have a dedicated Vendor Management team
in our IT department which ensures robust
and effective partnering relationship with the
vendors while ensuring continued, uninterrupted
maintenance and enhancement support to the
bank.
UNB also has correspondent banking
UNB has won several accolades and recognition
from its partners including:
We actively evaluate suppliers on a continuous basis to identify and leverage economics of scale by
•STP Excellence Award from Commerzbank in 2011.
improve processes and operations and cost efficiency are discussed with the suppliers and actions are
•Deutsche bank USD STP Excellence award 2010.
undertaken to facilitate better execution.
•Excellent Quality in EUR Denominated
Payments from Commerzbank in 2007
•USD Straight Through Processing (STP)
Excellence Award from Deutsche Bank in 2006;
•Funds Transfer Award from the Bank of New
York in 2005;
sourcing multi service and product suppliers from vendors. New initiatives, trends and methods to
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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We Care A bout O ur S o c iety an d O ur B usiness P artners
Fostering Sustainability in our Supply Chain
CSR is a key area of focus for the Bank and is
As part of our sustainability strategy and alignment to the Abu Dhabi Economic Vision 2030 to
intrinsically embedded in the Bank’s Vision, Mission
Key 2011 CSR initiatives
‘Enhance Competitiveness’ and ‘Environmental Sustainability’, UNB is seeking to embed sustainability
and strategies. CSR objectives form an integral part
• Al Noor Fun Fair participation
into partnerships and procurement practices. By engaging more with its partners and suppliers on the
of the UNB senior management ‘Management By
• Future Centre sponsorship
sustainability topics, we hope to embed principles of sustainable innovation into partnerships through
Objectives’ (MBOs) and this is diligently tracked on
collaboration and also ensure that social and environmental criteria are used in the selection and
a periodical basis to ensure that the CSR strategy
evaluation of key suppliers.
and initiatives are on track.
Our policy is to promote local suppliers as part of our socio-economic responsibility to the nation
All CSR initiatives are evaluated on the basis
as well as local communities, while ensuring that these local suppliers meet the highest possible
of stringent criteria and submitted to Senior
international standards. For the past three years, we have ensured that 100% of our procurement
Management for approvals. The Bank has over the
budget was spent on local suppliers.
years consistently supported community initiatives
Spending on locally-based suppliers 2009
2010
2011
Total amount spent on procurement
(contractors & suppliers) (AED)
154,465,012
171,158,080
170,865,999
Amount spent on local suppliers (AED)
154,100,812
171,152,379
170,569,899
and ensures that it plays an important and active
role as a responsible corporate citizen.
• Khorfakkan Club for Handicapped Braille Quran
• Earth Hour initiative participation
• Small World Charity sponsorship Silver sponsor
• Platinum sponsor Education Without Borders
• SME Evolution Program Platinum sponsor
• Abu Dhabi Industry Awards 2011 Support sponsor
• World Environment Day participation
We continue to develop programs and community
investment and development initiatives that are more aligned strategically with our vision, mission and
core business practices. This includes supporting community members’ to learn more about finance
% of total procurement spending gone to
local suppliers
100%
100%
100%
and banking and increase their financial literacy allowing them to use our banking services to enhance
Number of local and foreign suppliers
814 814
814
their economic situations.
In 2011, we conducted a number of workshops and participated in a range of exhibitions that promoted
Community Investments and Development
SME development as well as other banking specific sponsorships. The courses ranged from best
practices for improving business efficiency, to expanding businesses and competing internationally
Community Investment
2009
2010
2011
and were conducted both as webinars as well as in person. UNB conducted one such exclusive session
Total community investment (AED ‘000)
927.5
1,089.5
1,500.8
for more than 40 of its SME customers at the UNB Head Office premises recently. In addition, UNB
sponsored the SME exhibition which was organized to meet the needs of SME customers from a Retail
We are committed to taking a leading role in supporting local communities by actively contributing to
and Government perspective and was a sponsor of the UAE Internal Audit Association as well as the
their needs and priorities in areas such as education, the environment, health, special needs, cultural
Indian Chartered Accountants Association.
development, Emiratization and philanthropic activities. UNB has a dedicated budget allocated for
community investment and development each year, which was AED1.5 Million in 2011, representing
0.1% of pre-tax profits.
MoU with Ministry of Environment and Water
UNB was the first organization in the UAE to sign a Memorandum of Understanding (MOU) with the Ministry of
Environment & Water (MOEW) as a Strategic Partner during 2010. As per the MOU, all key initiatives undertaken
by the Ministry are reviewed and approved by UNB representatives who evaluate the same and based on the
approvals the initiatives are confirmed and implemented. The initiatives that were undertaken included the UAE
Free of Plastic campaign, “My Environment My Responsibility” Video, as well as educational sessions at schools
and stands at Malls where MOEW created awareness in the public and distributed recycled jute bags sponsored
by UNB. Jute bags were also distributed by UNB to all its employees to encourage them to avoid using Plastic
bags. The MOU with the Ministry was renewed during 2011-12 to continue the Strategic Partnership
UNB was the Platinum sponsor of the SME Evolution Program organised by M/s Potential an SME Consultant.
The SME Evolution program aims to reach thousands of SMEs by providing valuable free online interactive
training sessions, online content and live workshops. The best businesses that go through the program were
selected for a more advanced phase of development.
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We Care About
Our Environment
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We Care A bout O ur E nvironment
We Care About Our Environment
Environmental Challenges and Our
Environmental Responsibility
UNB Perspective
Our 2012 Commitments
UNB respects the environment and aims to
achieving environment friendly operations
through the adoption of energy efficient
practices
while
minimizing
materials
consumption in all its operations. UNB also
recognizes financial institutions are strongly
linked to other strategic sectors at the national
level, and accordingly we work to mitigate our
environmental impact in our investments and
lending processes.
• Reduce UNB’s greenhouse gas emissions
through reduced resource consumption
arising from internal awareness and new
technology adoption
The United Arab Emirates has one of the highest per capita energy consumption in the world, and is
amongst the top 20 most water scarce countries according to ‘water stress index 2011’. Given these important facts and other key environmental trends and impacts such as climate change,
we recognize that we have a responsibility to care for our environment, and also see an opportunity to
tackle these issues through innovative products and services and stakeholder collaboration.
Across the bank we are currently identifying areas for rapid environmental gains that would not only
help us fulfill our responsibility to the environment, but also reduce costs and increase efficiency. Our
organizational environmental management system – as part of our Integrated Management System
– achieved ISO 14001 certification during 2011. Through this system, we aim to better measure and
manage our use of precious resources and minimize waste.
We are also committed to caring for the environment together with our customers. For this reason we
are also implementing initiatives that will help us to achieve higher level of efficiency in our operations,
Abu Dhabi Economic Vision 2030 Pillars
1.
Environmental Sustainability
UNB Contribution
while offering customers more sustainable and paper free channels to conduct their banking. On the
corporate banking side we are also exploring opportunities for investing in more socio-environmental
Our organizational Environmental Management
System – as part of our Integrated Management
System – achieved ISO 14001 certification.
projects, working together with clients to implement sustainability, while also adopting more responsible
In the last three years since 2009, UNB sent
an estimated of 78.6 tons of paper waste
for recycling.
Managing and Conserving Our Precious Resources
UNB has begun purchasing sustainable paper that
is manufactured from 100% recycled materials
since 2010. 56% of our paper consumption in
2011 was from this recycled paper
In 2011, we achieved a 2% reduction in printer toner cartridges consumption as a result of automating
lending practices to reducing the environmental impact in projects that we lend to.
Materials Management
a range of processes and changing the default settings for the printers and the copying machines to
double side printing at our head office and all branches, as well as reducing the font size used.
Materials used by weight or volume 2009
2010
2011
133,862
137,241
139,600
Paper Consumption (Kg/ full-time employee)
98.9
100.9
100.7
% of recycled paper purchased
N/A
40%
56%
4,226
4,366
4,281
Paper consumption (Kg)
Printer Toner cartridges (Kg)
Plastic water bottles (Kg)
Plastic bank cards (Kg)
New indicator
454
Savings achieved from material reductions (AED)
The environmental numbers in this table include UNB operations
436
New indicator
590
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We Care A bout O ur E nvironment
We realize that paper is the most consumed material in our day to day operations; therefore, we work
managed by a dedicated transport manager and assisted by transport officer and trained drivers. All
hard to reduce our paper consumption through different measures. By the end of 2011, 56% of our
UNB cars run on special green unleaded petrol.
total paper purchased was from recycled paper, a 40% increase compared to 2010. However, our
total paper consumption increased by 1.7%. We are committed to expand our process automation
to include more processes in a wider range of our network to achieve better results in our paper
consumption in 2012.
In 2011, our direct and indirect energy consumption resulted in the emitting of 17,832 tons of
Greenhouse Gases (GHG), which represents a 12.2% increase on 2010. Demonstrating our commitment
to the environment we aim to reduce GHG emissions in 2012 by increasing internal efficiency and the
installation of new technologies.
We continue to work to measure the monetary savings as a result of these reductions and the amount
of plastic water bottles we consume.
How did the ‘Superdome’ servers help us improve our efficiency and reduce our
footprint?
Energy Management
In 2011 we consumed 85,719.8 Gigajoules (GJ) of energy from our operations representing a 12.5%
increase on 2010. This increase was primarily due to the increase in branches and office locations over
the past two years.
• Support Desk calls related to core system performance problems reduced by approximately 85%
• End Of Day processing timings for systems reduced by approximately 50%
• Backup timing for systems reduced by approximately 70%
• Overall reduction in data centre space requirements
• Reduce power consumption through consolidation of 25 servers into 3 Superdomes
Energy Consumption Electricity (kWh)*
2009
2010
2011
20,010,376
20,668,758
23,161,532
52,124
53,936
70,591
0
1,097
200
72,037.4
74,407.5
83,381.5
1721.2
1821.0
2338.3
73,758.6
76,228.5
85,719.8
54.5
56.1
61.8
28,718.9
33,515.4
33,105.6
Vehicle Fuel, gasoline (liters)
Vehicle Fuel, diesel (liters)
Electricity (GJ)
Vehicle Fuel (GJ)
Total (GJ)
Energy consumption (GJ) per full time employee
Revenues generated (AED) per GJ of
energy consumed
* Electricity consumption numbers in this table does not include office locations where no
electricity is charged, such offices has a very low electricity consumption as they comprise
few desks within a big space. However, the electricity consumption numbers reflect 80 office
locations in 2011, 84 office locations in 2010 and 77 office locations in 2009.
** The environmental numbers in this table include UNB operations
Greenhouse Gas emissions (tons) 2009
2010
2011
15,222 15,723 17,619
Vehicle Fuel, GHG
126 133 172
Air transport – Business trips, GHG
38.9
39.9
40.7
15,387
15,896 17,832
Electricity consumption, GHG
Total GHG Emission
The environmental numbers in this table include all UNB operations in the UAE
Water Management
With the increased number of branches and office locations over the past two years, our water
consumption was 215,037,000 liters at the end of 2011. This is considered as the baseline year for
water consumption because water consumption for the previous years could not be calculated due to
the lack of reliable data records from the relevant authorities.
Water consumption 2009
2010
2011
To help reduce our electricity consumption we have installed timers which automatically switch off
Water consumption (liter)
N/A
N/A
215,037,000
lights on all non critical floors, while manual switching off is done within critical floors by in house
Water consumption liter) per full time employee
N/A
N/A
158,816
technicians. We also now monitor all offices on a daily basis to ensure that personal computers and
Revenues generated per liter of water consumed (AED)
N/A
N/A
9.9
office equipment are switched off after operating hours.
In the efforts towards optimizing transportation usage, UNB’s fleet of 21 vehicles is maintained
at authorized service centers leading to better quality of service through specialized and expert
technicians. Scheduling of the Bank’s vehicles is done on the basis of online requests. The car pool is
The environmental numbers in this table include all UNB operations in the UAE
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We Care A bout O ur E nvironment
Reducing and Recycling Waste
At present we have a clearly defined system and process for the handling and recycling of paper waste.
We aim to put similar systems in place for the appropriate disposal or recycling of other types of waste
Increase Customers and Employees
Environmental Awareness
We believe that the biggest reductions in environmental impact can only be realized by working
over time.
collaboratively with our stakeholders; therefore, we strive to increase their understanding of the
In 2011, UNB sent an estimated 33.8 tons of paper waste for recycling. Green bins for paper recycling
challenges and the opportunities behind key environmental issues.
are available at every branch and on each floor at head office while recycling instructions have been
With our customers and also staff we have worked hard to highlight key environmental concerns,
communicated to staff.
including global warming, Ozone layer depletion and encouraged all staff and customers to adopt
For IT waste, obsolete office hardware is collected and stored centrally at warehouses in Abu Dhabi
the three Rs – Reduce, Reuse and Recycle in a bid to encourage the conservation of environmental
and Sharjah. PC hard drives are formatted or destroyed as per IT Information Security Policy and
resources and reduce waste.
Standards (IISPS).
We actively support the ‘Earth Hour’ project that encourages households and business to turn off their
Waste Total paper waste Weight (Kg) 2009
2010
2011
19,700
25,100
33,800
The environmental numbers in this table include UNB operations in the UAE
non-essential lights and electrical appliances for one hour every year to raise awareness on climate
change. All staff are actively encouraged to take part in this initiative while at work and at home. In
addition UNB staff also took part in various clean up initiatives. UNB was also keen on increasing staff
environmental awareness through highlighting significant environment related dates on the calendar
and creating different activities in the occasion for example on the environment day UNB conducted
an internal environment quiz and recognized the winners. UNB also distributed free light efficient
bulbs to familiarize the staff with environmental friendly tools.
We have also supported Dubai’s Government e-payment initiative which has helped our customers and
us to reduce paper consumption.
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We Care About
Our Shareholders
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We Care A bout O ur S harehol d ers
We Care About Our Shareholders
UNB Perspective
UNB realizes that adopting sustainability
management provides wide range of
opportunities of products and services
innovation that could lead to increased
business and revenue leading to improved
shareholder value. UNB would support this
approach by adopting best governance,
accountability and transparency practices.
Direct Economic Value Generated and
Distribute (AED ‘000)
Our 2012 Commitments
• Issue a level A+ sustainability report
• Create a sustainability stakeholder council
to inspire co-innovation and collaboration
Revenues
Strong financial performance
1.
2.
Increased Financing of Economic
Sectors and Projects
Strong governance practices
Enhanced Financial Markets Performance
Risk management
IMS ISO 9001, ISO 14001, OHSAS 18001
Annual and sustainability reporting
2011
2,118,2682,554,8262,837,805
Economic value distributed
Operating Costs
464,718
687,951
784,077
Employee Wages and Benefits
413,745
439,442
470,564
Payments to providers of capital 1
247,500
120,000
346,875
23,571
7,439
15,108
927.5
1,089.5
1,500.8
58,670
69,948
67,691
1,157,564
1,350,046
1,500,365
Gross taxes
UNB Contribution
2010
Direct economic value generated
Community investment: Voluntary contributions
and investment of funds in the broader
community (includes donations)
Abu Dhabi Economic Vision 2030 Pillars
2009
Depletion, Depreciation & Amortization
Net Profit 1 Cash dividend and interest on Tier 1 capital notes paid during the year
* financial data includes all UNB Group operations including the international operations
Generating Sustainable Value
Over the last five straight years the Bank’s net profit has been consistently over AED 1 Billion, a clear
record of sustainable value creation working in a highly competitive environment, UAE market which
has a total of 52 local and foreign banks including 8 Islamic banks.
Our robust financial performance has been achieved through a prudent governance structure and
In 2011, our revenues increased by 11.1% to AED 2.8 Billion, with net profit increasing by 11.1% to
management systems that focus on performance while showing high level of accountability and
AED 1.5 Billion.
transparency. This robust performance has also reflected how we care for our shareholders and has
Cost to income ratio is an important measure
been recognized on several occasions with success stories and awards we have received.
of our operational efficiency.
We continue
to judiciously invest in infrastructure and
We also trust that focusing on our sustainability performance would accelerate our leadership position
our team so as to maintain our competitive
with enhanced performance results while enhancing innovation and collaboration on sustainability
edge and successfully improve efficiency and
aspects together with our stakeholders.
innovation in services.
Cost to income ratio
2009
2010
2011
30.6%
28.0%
25.7%
UNB fully complies with the guidelines of UAE Central Bank, Abu Dhabi Securities Exchange, Dubai
Financial Market as well as Securities and Commodities Authority. UNB financial results are published
every quarter in the press and submitted to financial markets. The consolidated financial statement of
UNB is prepared in accordance with UAECB guidelines and International Financial Reporting Standards
(IFRS), and external audited by a third party auditing company.
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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Our strong financial performance has resulted
in consistent dividends for our shareholders.
The proposed cash dividend is 15% for the
year ended December 2011. We also achieved
We Care A bout O ur S harehol d ers
Percentage of non-performing loans
2009
2010
2011
1.5%
4.3%
3.7%
50% of BoD members are independent. An Independent Director at UNB is classified as per the
Securities and Commodities Authority (SCA) Regulation and UAE Corporate Governance guidelines:
a member who neither himself/herself, his/her spouse nor first-degree relative is a member of the
executive management of a Company during the last two years or has a relationship that creates
12.3% decrease in the amount of non-performing loans to AED 2,186.7 Million in 2011, compared to
financial deals with a company, parent company, sister company or allied company during the last two
AED 2,492.4 Million in 2010.
years if the total amount of these transactions exceeds 5% of the paid up capital of the company, an
Governance and Management Systems
Board of Directors
amount of five million AED or an equivalent amount in a foreign currency, whichever is less.
UNB is overseen by a Board of Directors (BoD) which is responsible towards regulatory authorities,
shareholders as well as other stakeholders. The BoD consists of eight members – all are male
and Emiratis.
Board members
Independent board directors
2009
2010
2011
62.50%
62.50%
50%
Total number of board members
8
8
8
Number of Emirati board members
8
8
8
Number of Female board members
0
0
0
% of independent board directors
The Board usually meets during every quarter to review the quarterly financial statements and more
frequently if required. In 2011, the Board met for four times. The BoD forms two committees; the Audit
H.H. Sheikh Nahayan Mabarak Al Nahayan
(Chairman)
Committee and the Remedial Asset Committee, for exercising overall control oversight and problem
loan recovery strategy with details delineated in their respective charters.
The Board members are selected based on qualifications and criteria set out in the corporate standards
manual through the shareholders in the Annual General Meeting.
BoD communicates with shareholders through Annual General Body Meeting and through direct
queries with the Bank Investor relations section at Capital Market Services Department.
Conflict of interest at the Board level is avoided through explicit procedures of disclosure and through
documented governance standards and code of ethics.
The Board members performance evaluation process and procedures are detailed in the Bank›s
Corporate Standards Manual.
H.E. Mohamed Ahmed
Al Bowardi
H.E. Ahmed Saeed Al Badi
Mr. Rashid Darwish Al Ketbi Mr. Khalifa Sultan Al Suwaidi
The Board members are compensated for their performance in compliance with provisions delineated
in the Articles of Association. The Board members remuneration is approved by the shareholders in the
Annual General Meeting.
Mr. Yousef Abdulaziz
Al Harmoudi
H.E. Mattar Mohammed
Al Tayer
H.E Abdulwahid Al Fahim
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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Integrated Management System (IMS) ISO 9001, ISO 14001, OHSAS 18001
UNB is the first commercial bank in the world to be certified by M/s Lloyd’s Register Quality Assurance
(LRQA) Ltd. to the Integrated Management System (IMS) comprising of three standards, ISO 9001,
ISO 14001 and OHSAS 18001 for the entire bank and its operations including branches. Through
this integrated management system we are able to manage our products and services including
customer satisfaction and feedback, as well as improving our processes internally and externally.
We also assess the environmental impact of our activities as part of risk analysis prior to the
development of any control measures to bring down the residual risks to acceptable levels.
Besides, environment conservation measures are disseminated through group-wide IMS
objectives and plans.
Also through the IMS, we have identified our health and safety hazards and their consequences
as well as controls; we have also identified emergencies and mock drills to ensure awareness
and preparedness to mitigate health and safety risks across all locations through group-wide
objectives and plans.
We Care A bout O ur S harehol d ers
need analysis of all the staff and ensures that all identified employees undergo anti money laundering
related refresher training programs at least once a year.
As crime and corruption breed money laundering activities, awareness is created amongst all employees
about the importance of submitting suspicious transaction reports.
We have also analyzed all divisions of the bank for the risks related to corruption and our anticorruption policies have been embedded in the procedures and controls as a part of audit assessment.
Every Division /Group head also to confirm this annually as part of statutory audit process. In October
2011, we have also formed a Fraud Scenario Assessment Core Team to assess the potential fraud
scenarios across the bank and to establish relevant controls to mitigate the risk. UNB has never been
fined for any incompliance or illegal actions in the past.
The bank has received consistently strong ratings by reputed international credit rating agencies such
as Capital Intelligence, Fitch and Moody’s Investor Service Ratings.
Risk Management and Compliance
2009
2010 2011
% of employees trained on UNB’s anti-corruption policies and procedures. 24 3865
To ensure loyalty and trust in our banking capabilities we take a comprehensive and detailed approach
to the identification and management of risks. We are fully compliant with the UAE Central Bank
timeframe for Basel II implementation in the UAE and also follow the clear guidelines for compliance,
credit operational and market risks. UNB has been strictly complying with regulatory guidelines of
UAE Central Bank and other external regulators on anti money laundering in its true spirit and has
implemented appropriate internal control framework to combat crime.
Risk management and core governance processes are reviewed and implemented by top management
with the guidance of Corporate Standards Manual which has been approved by the Board of Directors.
The Bank has adopted the Committee of Sponsoring Organizations (COSO) enterprise wide risk
management model.
In addition to external audit reviews, the bank has a dedicated Internal Audit Division, which
conducts regular audits. The process used is currently being benchmarked against the Global Auditing
Information Network (GAIN) study for internal auditing and is within the standards and ethics set by
the Institute of Internal Auditors (IIA). The heads of Risk Management Division and Audit Division
have direct reporting lines to the CEO and are involved in strategic decision making management
committees as observers.
All the new joiners are imparted with orientation training that includes anti money laundering
awareness module as its core elements. The Bank has imparted training on anti money laundering
and compliance through internal and external programs to identified employees. 65% of UNB staff
have been trained on polices and procedures pertaining to anti money laundering and compliance that
contains fraud control and code of ethics as part of the course contents. The Bank undertakes training
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a voluntary private-sector organization,
established in the United States
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Our Sustainability
Key Performance
Indicators
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O ur S ustainability K ey P erforman c e I n d i c ators
Our Sustainability Key Performance Indicators
Priority
Sustainability Area
Key Sustainability Performance Measures
We Care About
Our Customers
Retail customer satisfaction (%)
Corporate banking customer satisfaction (%)
*Total number of SMEs customers (INDEX)
Value of SMEs financing (AED Million)
Number of sustainability oriented services launched *Internet Banking – Number of customers (INDEX)
Number of customer privacy breaches
Number of branches and business offices
Number of Retail branches
Number of Retail branches in remote areas
Number of ATMs (onsite + offsite)
Number of ATMs in remote areas
We Care about
Our Employees
Total number of employees
Number of new joiners
Employees turnover (%)
Emiratization (%)
Female employees in the workforce (%)
Employees satisfaction (%)
**Average training hours per employee
Number of lost time injuries
We Care About
Our Society and
Our Business
Partners
Community investment as percentage of
pre-tax profit
Number of people benefiting from financial
literacy programs
***Local procurement (%)
We Care About
Our Environment
****Total electricity consumption (kWh)
Vehicle Fuel consumption, gasoline (L)
Vehicle Fuel consumption, diesel (L)
****Water consumption (liter)
Greenhouse Gas emissions (tons)
Paper consumption(tons)
% of recycled paper purchased
Total waste paper collected for recycling (tons)
Waste recycled (%)
2009
2010
2011
Priority
Sustainability Area
Key Sustainability Performance Measures
85%
81%
100
526
87%
82%
119
916
N/A
0
77
56
17
165
30
88%
79%
108
722
New indicator
100
0
84
59
17
158
27
We Care About
Our Shareholders
Revenues (AED ‘000)
Net profit (AED ‘000)
Payments to providers of capital (AED›000)
Operating costs (AED›000)
Percentage of non-performing loans
Percentage of independent directors
GRI level of the sustainability report
1,405
114
11%
10%
28%
72%
24.58
1,437
235
14%
13%
29%
70%
28.89
1,445
254
18%
14%
30%
69%
28.14
0
0
0
0.08%
0.08%
0.1%
140
175
194
100%
100%
100%
20,010,376
52,124
0
N/A
15,393.7
133.9
N/A
19.7
145
0
80
55
16
167
30
20,668,758
23,161,532
53,936
70,591
1,097
200
N/A 215,037,000
15,901.6
17,832
137.2
139.6
40%
56%
25.1
33.8
New indicator
2009
2010
2011
2,118,268
2,554,826
1,157,564
1,350,046
247,500
120,000
464,718
687,951
1.5%
4.3%
62.5%
62.5%
New indicator
2,837,805
1,500,365
346,875
784,077
3.7%
50%
A+
*The base line year has been indexed at 100 due to confidentiality reasons and the following years reflect a growth over the baseline year ** Training
hours have been estimated where actuals have not been computed *** International companies with local offices have been considered as local
suppliers **** Water consumption details have been estimated based on average consumption over 2007/08/09 for Head Office due to lack of reliable
data from relevant authorities . Electricity consumption has also been estimated where records have not been available or not reliable . This baseline
report covers all UNB Group operations in the UAE which includes UNB, Injaz, Union Brokerage Company(UBC) and Al Wifaq Finance Company.
However, the financial data is for the entire UNB Group including the International subsidiaries & operations
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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A nne x ure
Annex A - Who We Care About
STAKEHOLDER
STAKEHOLDER NEEDS
METHOD OF ENGAGEMENT
HOW WE CARE
Our Customers
•Innovative products and
services
• Alternative and flexible
banking channels
•High quality and personal
service
•Facilitated access to project,
corporate and individual
loans
•Customer satisfaction
surveys and research
•Mystery Shopper visits
•Expanding network of
branches and ATMs
•24x7 Call centre, website,
emails, fax and in-person at
the branch.
•UNB management and
customers meetings
•Excellent customer care
•Customer feedback and
satisfaction survey reports
are used for strategic and
business level planning
•Regular UNB management
and customers meetings
•Mystery shopper visits
•Shariah compliant products
and services
Our Employees
•Challenging and engaging
work
•Attractive financial
packages and benefits
•Good, and safe working
conditions
•Learning and Development
•Open communication
channels
•‘Open Door Policy’ and
regular engagement
•Performance Development
Reviews
•Staff satisfaction survey
regularly since 2000
•The CHALLENGE staff
suggestion scheme program
•Quarterly newsletter Communiqué
•Think-bank
•Performance-based
promotion and recognition
•400 e-learning courses are
offered to all staff
•Learning Resource Center
•Internal and external
training programs
•Excellent benefits to
employees and their
families
•Enhancement of the loans
eligibility
Our Community
•Transparency and
accountability
•Strengthened and open
dialogue
•Job Creation
•Local economic
development
•Volunteering activities
•Sponsorships
•Emiratization
•Easy access to branches
and ATMs
•Participation in career fairs
and events
•Partnership with Khalifa
Fund, Abu Dhabi Chamber
of Commerce, Dubai
Chamber of Commerce to
support SMEs.
•Partnership with UAE
academy, Higher Colleges
of Technology and UAE
university to develop young
Emirati workforce
•Reports and website
•100% of total procurement
spending going to local
suppliers
•254 new joiners in 2011
•Volunteering activities
•Distinct Emiratization
Division
Our Business Partners
•Long-term relationship
•Strong relationships and
communication
•Accountability and integrity
in dealings
•Equality in applying to
tenders
•On-time payments
•Procurement is localfocused
•Certain number of vendors
with more than 10 years of
association with UNB
•Engagement on
sustainability
STAKEHOLDER
STAKEHOLDER NEEDS
METHOD OF ENGAGEMENT
HOW WE CARE
Our Environment
•Resources management
•Waste management
•GHG emissions reduction
•Environmental
management system
•Partnerships with Ministry
of Environment and Water
•Participate in environment
related events
•Ongoing partnerships with
Environment Agency of Abu
Dhabi, WWF
•Implement several
environmental initiatives
to reduce resources
consumption
•Reduction of paper
consumption
•Purchase environment
friendly materials
•Switch to 100% recycled
paper across all UNB
operations in the UAE
•Waste collection and
processing
Our Shareholders
•Integrity and Transparency
•Contribution to national
priorities and plans
•Compliance to Policies
and Standards
•Achieving sustainable
profits
•Protecting the corporate
reputation
•Maintaining efficient
operations and cost
reduction
•Regular meetings with UAE
Central Bank
•Regular Board Meetings
•Annual report
•Quarterly statements
of accounts
•Strong relationship with
ADX , Emirates Securities
and Commodities Authority
and other regulatory bodies
•New Vision, Mission
and Strategy finalized
in consultation with all
stakeholders
•Supporting UAE’s
Emiratization Policy
•Fully complies with
guidelines of main
regulators
•Financing government
infrastructure projects
•Awards and recognitions
S U S T A I N A B I L I T Y R E P O R T 2 0 11
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Annex B - Report parameters
Profile: This is UNB’s first sustainability report (baseline report) that covers its sustainability performance (economic, social and
environmental), for the year 2011 providing comparable data for 2010 and 2009 were available. UNB is committed to sustainability
reporting on a annual basis.
Scope and boundary of the report: UNB adopts an integrated and multi-dimensional approach to determine its priority sustainability
areas and the report content. UNB has analyzed the sustainability issues within the countries where it operates and within the
banking sector, and has linked the sustainability issues to its stakeholders needs and to national priority areas (Abu Dhabi Economic
Vision 2030), in order to identify its sustainability focus areas.
This baseline report covers all UNB Group operations in the UAE which includes UNB, Injaz, Union Brokerage Company (UBC) and
Al Wifaq Finance Company. However, the financial figures reflect the entire UNB Group including the International subsidiaries &
operations.. Thus report was developed based on the Global Reporting Initiative (GRI) framework and indicators, aiming to achieve
Level A application level. The report also covers the GRI Financial Services Sector Supplement (FSSS).
Stakeholder inclusiveness: UNB identifies, understand and anticipates the needs and expectations of current and future stakeholders
by identifying, measuring and analysing key performance indicators for each stakeholder – as noticed in page 64 of the report.
We believe this report covers and communicates with all our key stakeholders. We think all the identified stakeholders would
be interested to read our sustainability report, including the employee, customers, shareholders, business partners and different
community and environment organizations and representatives. We also encourage them to provide feedback on our sustainability
email as mentioned inside cover page.
Comparability and balance: This report provides 3 years of comparable data within the report (2009-2011) where available. This
report also communicates UNB’s successes as well as main challenges in the economic, environmental and social aspects of the
Bank. This report uses the GRI G3 guidelines which provide clear comparisons.
Accuracy and reliability: UNB has been careful to make sure that all information provided in this report is of the highest level of
accuracy and reliability. We have used our integrated management system to gather the information in this report, and where any
estimation is made, a full explanation is provided.
Clarity of information: UNB has put its sustainability information within this report in a clear and easy to communicate framework,
besides using the GRI framework which helps ease the report reading and understanding.
Assurance: Ernst and Young has provided “limited” assurance over the data and information relating to our sustainability key
performance indicators for the period 1 January 2011 and 31 December 2011.
A nne x ure
Annex C - GRI application level statement
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A nne x ure
Annex D - GRI INDEX
4. Governance, Commitments, and Engagement
1. Strategy and Analysis
1.1
Statement from the most senior decision-maker of the organization. Pg. 4-7
1.2
Description of key impacts, risks, and opportunities. Pg. 10
2. Organizational Profile
2.1
Name of the organization.
Pg. 10
2.2
Primary brands, products, and/or services. Pg. 10-11
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries,
and joint ventures.
Pg. 10-12
2.4
Location of organization›s headquarters.
Pg. 10
2.5
Number of countries where the organization operates, and names of countries with either major
operations or that are specifically relevant to the sustainability issues covered in the report.
Pg. 10-11
2.6
Nature of ownership and legal form.
Pg. 10
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Pg. 10
2.8
Scale of the reporting organization.
Pg. 10-12
2.9
Significant changes during the reporting period regarding size, structure, or ownership.
Pg. 10-11
2.10 Awards received in the reporting period.
4.1
Governance structure of the organization, including committees under the highest governance
body responsible for specific tasks, such as setting strategy or organizational oversight. 4.2
Indicate whether the Chair of the highest governance body is also an executive officer.
4.3
For organizations that have a unitary board structure, state the number of members of the
highest governance body that are independent and/or non-executive members.
Pg. 60
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the
highest governance body. Pg. 61
4.5
Linkage between compensation for members of the highest governance body, senior managers,
and executives (including departure arrangements), and the organization›s performance
(including social and environmental performance).
Pg. 61
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Pg. 61
4.7
Process for determining the qualifications and expertise of the members of the highest governance
body for guiding the organization›s strategy on economic, environmental, and social topics.
Pg. 60-61
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant
to economic, environmental, and social performance and the status of their implementation.
Pg. 10
Pg. 60-61
4.9
Procedures of the highest governance body for overseeing the organization›s identification and
management of economic, environmental, and social performance, including relevant risks and
opportunities, and adherence or compliance with internationally agreed standards, codes of conduct,
and principles. Pg. 60-61
Pg. 11
3. Report Parameters
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
Pg. 1
3.2
Date of most recent previous report (if any).
Pg. 66-67
3.3
Reporting cycle (annual, biennial, etc.)
Pg. 1
3.4
Contact point for questions regarding the report or its contents.
Pg. 1
3.5
Process for defining report content.
Pg. 1
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.
Pg. 1
3.7
State any specific limitations on the scope or boundary of the report (see completeness principle
for explanation of scope). Pg. 1
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other
entities that can significantly affect comparability from period to period and/or between organizations.
Pg. 1
Data measurement techniques and the bases of calculations, including assumptions and techniques
underlying estimations applied to the compilation of the Indicators and other information in the report.
Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.
Pg. 66-67
3.9
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the
reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of
business, measurement methods).
Pg. 70
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
Pg. 70
3.12 Table identifying the location of the Standard Disclosures in the report. Pg. 66-67
3.13 Policy and current practice with regard to seeking external assurance for the report. Pg. 40
Pg. 59
4.10 Processes for evaluating the highest governance body›s own performance, particularly with respect
to economic, environmental, and social performance.
Pg. 60-61
4.11 Explanation of whether and how the precautionary approach or principle is addressed by
the organization.
Pg. 63
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives
to which the organization subscribes or endorses.
Pg. 44-45
4.13 Memberships in associations (such as industry associations) and/or national/international
advocacy organizations in which the organization: * Has positions in governance bodies;
* Participates in projects or committees; * Provides substantive funding beyond routine membership
dues; or * Views membership as strategic.
Pg. 44-45
4.14 List of stakeholder groups engaged by the organization. Pg. 68-69
4.15 Basis for identification and selection of stakeholders with whom to engage. Pg. 68-69
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by
stakeholder group.
Pg. 68-69
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the
organization has responded to those key topics and concerns, including through its reporting.
Pg. 68-69
Economic
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee
compensation, donations and other community investments, retained earnings, and payments
to capital providers and governments.
Pg. 66
EC2
Financial implications and other risks and opportunities for the organization›s activities due
to climate change.
Pg. 52-53
S U S T A I N A B I L I T Y R E P O R T 2 0 11
76
A nne x ure
EC3
Coverage of the organization›s defined benefit plan obligations. Pg. 68-69
EC4
Significant financial assistance received from government. Pg. 59
EC5
Range of ratios of standard entry level wage compared to local minimum wage at significant
locations of operation.
Pg. 38
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly
affected by the reporting organization›s discharges of water and runoff.
NA
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations
of operation.
Pg. 46
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Pg. 69
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. Pg. 53-54
EC7
Procedures for local hiring and proportion of senior management hired from the local community
at significant locations of operation.
Pg. 34
Pg. 29
EC8
Development and impact of infrastructure investments and services provided primarily for public
benefit through commercial, in-kind, or pro bono engagement.
Pg. 44
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance
with environmental laws and regulations.
Pg. 53
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts. Pg. 45
EN29 Significant environmental impacts of transporting products and other goods and materials used for the
organization›s operations, and transporting members of the workforce.
EN30 Total environmental protection expenditures and investments by type.
Pg. 52
Environmental
EN1 Materials used by weight or volume. Pg. 51
EN2 Percentage of materials used that are recycled input materials. Pg. 54
EN3 Direct energy consumption by primary energy source. Pg. 52-53
EN4 Indirect energy consumption by primary source.
Pg. 52-53
EN5 Energy saved due to conservation and efficiency improvements.
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the
Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
Social: Labor Practices and Decent Work
LA1
Total workforce by employment type, employment contract, and region. Pg. 33 & 41
LA2
Total number and rate of employee turnover by age group, gender, and region. Pg. 40
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time
employees, by major operations.
Pg. 33
Pg. 53-64
LA4
Percentage of employees covered by collective bargaining agreements.
EN6 Initiatives to provide energy-efficient or renewable energy based products and services,
and reductions in energy requirements as a result of these initiatives.
Pg. 53
LA5
Minimum notice period(s) regarding significant operational changes, including whether it is
specified in collective agreements.
Pg. 62-63
EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Pg. 53
LA6
Pg. 37
EN8 Total water withdrawal by source. Pg. 53
Percentage of total workforce represented in formal joint management-worker health and safety
committees that help monitor and advise on occupational health and safety programs.
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related
fatalities by region.
Pg. 37
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce
members, their families, or community members regarding serious diseases.
Pg. 37
LA9
Health and safety topics covered in formal agreements with trade unions. Pg. 37
EN9 Water sources significantly affected by withdrawal of water.
EN10 Percentage and total volume of water recycled and reused. Pg. 53
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas
of high biodiversity value outside protected areas.
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected
areas and areas of high biodiversity value outside protected areas.
Pg. 52-53
LA10 Average hours of training per year per employee by employee category. Pg. 39
Pg. 38-39
EN13 Habitats protected or restored. NA
LA11 Programs for skills management and lifelong learning that support the continued employability of
employees and assist them in managing career endings.
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.
Pg. 69
LA12 Percentage of employees receiving regular performance and career development reviews.
Pg. 39
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas
affected by operations, by level of extinction risk.
NA
LA13 Composition of governance bodies and breakdown of employees per category according to gender,
age group, minority group membership, and other indicators of diversity.
Pg. 40-41
EN16 Total direct and indirect greenhouse gas emissions by weight. Pg. 53
LA14 Ratio of basic salary of men to women by employee category. Pg. 36
EN17 Other relevant indirect greenhouse gas emissions by weight. Pg. 53
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
Pg. 53
EN19 Emissions of ozone-depleting substances by weight. Pg. 53
EN20 NOx, SOx, and other significant air emissions by type and weight. Pg. 53
EN21 Total water discharge by quality and destination. Pg. 52-53
EN22 Total weight of waste by type and disposal method. Pg. 52-53
EN23 Total number and volume of significant spills. NA
Social: Human Rights
HR1 Percentage and total number of significant investment agreements that include human rights
clauses or that have undergone human rights screening.
Pg. 59
HR2 Percentage of significant suppliers and contractors that have undergone screening on human
rights and actions taken.
Pg. 46
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights
that are relevant to operations, including the percentage of employees trained.
Pg. 38-39
HR4 Total number of incidents of discrimination and actions taken.
Pg. 38
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HR5 Operations identified in which the right to exercise freedom of association and collective bargaining
may be at significant risk, and actions taken to support these rights.
HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to
contribute to the elimination of child labor.
HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and
measures to contribute to the elimination of forced or compulsory labor.
HR8 Percentage of security personnel trained in the organization›s policies or procedures concerning
aspects of human rights that are relevant to operations.
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.
SO1
SO2
SO3
SO4
SO5
SO6
SO7
SO8
PR1
PR2
PR3
PR4
PR5
PR6
PR7
PR8
PR9
Social: Society
Nature, scope, and effectiveness of any programs and practices that assess and manage the
impacts of operations on communities, including entering, operating, and exiting.
Percentage and total number of business units analyzed for risks related to corruption. Percentage of employees trained in organization›s anti-corruption policies and procedures. Actions taken in response to incidents of corruption.
Public policy positions and participation in public policy development and lobbying. Total value of financial and in-kind contributions to political parties, politicians, and related
institutions by country.
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices
and their outcomes.
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance
with laws and regulations.
Social: Product Responsibility
Life cycle stages in which health and safety impacts of products and services are assessed for
improvement, and percentage of significant products and services categories subject to such procedures.
Total number of incidents of non-compliance with regulations and voluntary codes concerning health
and safety impacts of products and services during their life cycle, by type of outcomes.
Type of product and service information required by procedures, and percentage of significant
products and services subject to such information requirements.
Total number of incidents of non-compliance with regulations and voluntary codes concerning
product and service information and labeling, by type of outcomes.
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Programs for adherence to laws, standards, and voluntary codes related to marketing communications,
including advertising, promotion, and sponsorship.
Total number of incidents of non-compliance with regulations and voluntary codes concerning
marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
Total number of substantiated complaints regarding breaches of customer privacy and losses of
customer data.
Monetary value of significant fines for non-compliance with laws and regulations concerning the
provision and use of products and services.
A nne x ure
Pg. 38
Pg. 38
Pg. 39
Pg. 38
Pg. 46
Pg.
Pg.
Pg.
Pg.
62-63
62-63
63
34
Pg. 29
Pg. 29
FS4
Process(es) for improving staff competency to implement the environmental and social policies and
procedures as applied to business lines.
Pg.55
FS5
Interactions with clients/investees/business partners regarding environmental and social risks
and opportunities.
Pg.55
FS6
Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large)
and by sector.
Pg.26-27
FS7
Monetary value of products and services designed to deliver a specific social benefit for each
business line broken down by purpose.
Pg.26-46
FS8
Monetary value of products and services designed to deliver a specific environmental benefit for
each business line broken down by purpose.
Pg.27-46
FS9
Coverage and frequency of audits to assess implementation of environmental and social policies
and risk assessment procedures.
Pg.62-63
FS10 Percentage and number of companies held in the institution›s portfolio with which the reporting
organization has interacted on environmental or social issues.
Pg.46
FS11 Percentage of assets subject to positive and negative environmental or social screening.
Pg.46
FS12 Voting polic(ies) applied to environmental or social issues for shares over which the reporting
organization holds the right to vote shares or advises on voting.
Pg.59
FS13 Access points in low-populated or economically disadvantaged areas by type.
Pg.23
FS14 Initiatives to improve access to financial services for disadvantaged people.
Pg.28
FS15 Policies for the fair design and sale of financial products and services.
Pg.29
FS16 Initiatives to enhance financial literacy by type of beneficiary.
Pg.46
Pg. 29
Annex E - GLOSSARY
Pg. 29
• Abu Dhabi Economic Vision 2030: based on the principles laid out in the Government’s Policy Agenda published in August
2007, the Abu Dhabi Economic Vision 2030 is a roadmap for the emirate’s socio-economic progress.
Pg. 29
Pg. 29
Pg. 40
Pg.27-29
Pg. 29
• Emiratization: An initiative by the government of the UAE to employ its citizens in a meaningful and efficient manner in the
public and private sector.
• Global Reporting Initiative (GRI): is a non-profit organization that works towards a sustainable global economy by providing
sustainability reporting guidance.
• G3 Reporting Guidelines: is a framework for reporting on an Organizations’ economic, environmental, social and governance performance.
Pg. 29
• Financial Services Sector Supplement (FSSS): sector specific guidelines for sustainability reporting from the GRI, covering the
aspects of sustainable development that characterizes the financial services sector.
Pg. 29
• Greenhouse Gas (GHG) Emissions: Gases in the atmosphere that absorb and emit thermal and infrared radiation. Greenhouse
gases include water vapor, carbon dioxide, methane, nitrous oxide, and ozone.
Pg. 29
• Money laundering: The act of concealing the identity, origin, or destination of often illegally-obtained money.
• Stakeholders: Stakeholders are those groups who affect and/or could be affected by an organization’s activities, products
or services and associated performance. Organizations will have many stakeholders, each with distinct types and levels of
involvement, and often with diverse and sometimes conflicting interests and concerns (source:http://www.accountability.org)
Financial Sector Supplement
FS1
Policies with specific environmental and social components applied to business lines.
Pg.26-27
FS2
Procedures for assessing and screening environmental and social risks in business lines.
Pg.46
FS3
Processes for monitoring clients› implementation of and compliance with environmental and social
requirements included in agreements or transactions.
Pg.46
• Sustainability: is an attempt to provide the best outcomes for the human and natural environments both now and into the
indefinite future.
• Sustainability report: an organizational report that gives information about economic, environmental, social and governance performance.
S U S T A I N A B I L I T Y R E P O R T 2 0 11
80
Annex F – Acronyms
ATM
Automated Teller Machines
BoD
Board of Directors
CEO
Chief Executive Officer
CSR
Corporate Social Responsibility
GHG
Greenhouse Gas
GRI
Global Reporting Initiative
IFRS
International Financial Reporting Standards
M³
Cubic Meters
SMEs
Small and Medium Enterprises
UAE
United Arab Emirates
LRQA
Lloyd’s Register Quality Assurance
IMS
Integrated Management System
UNB
Union National Bank
ISO
International Organization for Standardization
AED
United Arab Emirates Dirham
UBC
Union Brokerage Company
CCU
Customer Care Unit
BCP
Business Continuity Plan
EIBFS
Emirates Institution for Banking and Financial Studies
VESS
Voluntary Employee Savings Scheme
FI&SF
Financial Institutions & Structured Finance
MBO
Management By Objectives
kgKilograms
kWh
Kilo Watt per Hour
GJ
Giga Joule
ISPS
IT Information Security Policy and Standards
BoD
Board of Directors
SCA
Securities and Commodities Authority
COSO
Committee of Sponsoring Organizations
GAIN
Global Auditing Information Network
IIA
Institute of Internal Auditors