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Management Discussion and Analysis

Social and Environmental Capital

Our business model underscores the approach we take towards corporate, social and environmental responsibility. It is based on the truism that for the Company to create sustainable value for itself, it also has to create value for its stakeholders.

Life Insurance and Social Well-being

The long term nature of the life insurance business promotes capital formation and economic development of the country. The premiums collected from policyholders are accumulated by the Company in a Life Insurance Fund, which serves as an investment vehicle that targets both the private and public sectors. Most of the investments are made through risk-free, long term financial instruments such as Government Securities and deposits in state-owned banks, as well as in non-speculative real estate and infrastructure development projects that provide a long term yield.

The long term capital markets thus supported leads to social and environmental benefits such as new employment opportunities, better infrastructure facilities and a cleaner environment for all. It is a win-win situation that also generates an equitable return for the Company, which then passes on to policyholders in the form of claims and benefits with a residual profit for shareholders.


Strategic Initiatives

Going beyond the inherent positive impacts on society and environment made by the very nature of our business, we consciously work on a structured CSR programme that includes business operations, volunteerism and philanthropy.

Ceylinco Life social responsibility

We are committed to uplifting underprivileged communities across the country through Ceylinco Life Social Responsibility projects. Our Corporate Social Responsibility (CSR) policy is a continuing commitment of the Company to create a sustainable business environment through meaningful interventions in selected areas, making a statement for non-discrimination; serving to blur artificial divisions based on religion, caste and race.

Our CSR focuses on two areas – health and education.


Health

Health-related projects carry the objective of ‘building a healthy nation’ and the main projects carried out during the year were ’Waidya Hamuwa' (meet the doctor) projects.

Ceylinco Life ‘Waidya Hamuwa’

Ceylinco Life’s wide reach across the island both in terms of branch network and personnel, allows the Company to reach the needy masses. Under this project we provide convenient access to experienced and professional medical practitioners and medical examinations free of charge.

Donating a portable ventilator

Sri Lanka’s life insurance leader donated a sophisticated portable ventilator to the Trincomalee General Hospital. The Newport HT70® ventilator from Newport Medical, USA, offers exceptional mobility, safety and ease of use for invasive and non-invasive ventilatory support for infants, paediatric and adult patients. A similar ventilator donated by Ceylinco Life to the National Hospital (NHSL) in Colombo has to date helped many patients survive critical episodes through successful resuscitation.

The ventilator costing Rs 1.2 Mn donated by Ceylinco Life to the Trincomalee General Hospital can be used to resuscitate patients after cardiac arrest or cardiac failure, acute pulmonary oedema, respiratory failure due to pneumonia, asthma or Chronic Obstructive Pulmonary Disorder (COPD), ischaemic stroke, intra-cerebral haemorrhage or epileptic fits among others.

Education

These projects focus on developing and educating the youth in rural communities and providing them with access to quality educational infrastructure.

School Development Projects

In Sri Lanka, a vast majority of children are dependent on free education provided by state schools but in many remote areas these schools are struggling to survive and desperately need aid to develop basic facilities. To date, Ceylinco Life’s schools development project has helped many rural schools by reconstructing classrooms and donating furniture and other basic amenities. Classroom projects were executed in 2015 in the areas of Haldummulla, Trincomalee and Mannar, bringing the total to 64 to date.

Environmental Stewardship

Going green

Be it autumn or winter, our branches are turning green. We have invested in retrofitting several of our branches in the areas of energy efficiency, renewable energy augmentation and water conservation, while new Company-owned branches are born green.

Recent measures taken include:

  • Installation of Solar PV modules to reduce grid electricity consumption (six branches to date)
  • Replacement of light bulbs with energy efficient lighting systems
  • Introduction of centralised automatic temperature control at the Head Office building
  • Replacement of water taps with sensors to reduce wastage
  • Rainwater harvesting (six branches to date)

New branches are constructed on a strong environment-friendly foundation that include aspects such as natural lighting and ventilation. Our latest is the 'green' Wenappuwa branch. Installed with a solar PV array, the branch aims to avoid over 1,500 kWh per month in grid-based electricity consumption.

Our solar PV systems installed in Company-owned buildings generated approximately a total of 12,332 kWh during the year, of which nearly 1,700 kWh was exported to the national grid. This total is about 0.8% of grid-based electricity consumed by Company-owned premises during the year. Though relatively small, it is only the beginning of our drive towards green energy and environmental stewardship.

Our carbon footprint

We have begun to measure and disclose our greenhouse gas (GHG) emissions on a voluntary basis as part of our environmental stewardship. Our first attempt covers the calendar year 2015, the boundary being Ceylinco Life. The computation is based on the GHG Protocol Corporate Standard and uses the most recent emission factors.

GHG emissions of the company, tonnes CO2e

Scope Source GHG emissions
tCO2e %
Scope 1 (Direct) Stationary combustion 22.3 1.1
Mobile combustion 513.7 26.4
Total Scope 1 536.0 27.5
Scope 2 (Indirect) Purchased electricity 874.7 45.0
Total Scopes 1 and 2 1,410.7 72.5
Scope 3 (Indirect) Purchased electricity 503.7 25.9
Employee air travel 30.9 1.6
Total Scope 3 534.6 27.5
Total Scopes 1, 2 and 3 1,945.3 100.0

Our computation on Scope 1 is complete except for fugitive emissions from air conditioning plant and equipment (which are relatively negligible), while Scope 2 is complete. Scope 3 disclosure, which is optional, is limited to data availability and materiality.

Thus, for benchmarking purposes, our GHG emissions for 2015 arising from Scopes 1 and 2 is 1,411 tonnes carbon dioxide equivalent (tCO2e).

As will be seen in the analysis given above, purchased grid electricity accounts for a large 71% slice of our total GHG emissions of 1,945 tCO2e. Hence, our efforts on energy efficiency and switching to renewable energy sources are positive steps towards reducing our carbon footprint. It also makes economic sense.

Waste management

We consciously make efforts to reduce the amount of paper used throughout the Company. Waste paper is sent to a recognised recycler. During the year, a total of 17.2 tonnes of paper was recycled, which is estimated to have avoided

17.2 tCO2e in GHG emissions and saved 292 fully grown trees,

30.1 m3 of oil, 68,600 kWh of electricity, 545 m3 of water and 51 m3 of landfill.

The e-waste generated by the Company is stored at a suitable site, and when the bulk builds up, tenders are called for its safe disposal.