BRAC Bank is driving sustainable finance in Bangladesh, with 82% of its portfolio to green and inclusive growth, supporting SMEs, women entrepreneurs, and climate-friendly projects
When I think about the future of banking, I don’t just see balance sheets, profit margins, or loan disbursements—I see an opportunity to reshape how finance interacts with the environment and society. Globally, sustainable and green banking is still evolving, but Bangladesh has managed to carve out a strong position. Much of this credit goes to Bangladesh Bank, which has pioneered frameworks such as the Sustainable Finance Taxonomy, Environmental & Social Risk Management (ESRM) Guidelines, and directives aligned with IFRS S1 and S2.
At BRAC Bank, we have embraced this vision with conviction. Today, 82% of our portfolio qualifies as sustainable finance, with 20% dedicated purely to green projects. These are not just numbers—they represent thousands of businesses and communities across Bangladesh adopting cleaner, smarter, and more inclusive practices with our support.
Financing Change Where It Matters Most
For me, one of the most rewarding aspects of sustainable banking is how it empowers those who are often left behind. As the country’s largest SME bank, we work closely with small and medium entrepreneurs who are the backbone of our economy. Through schemes like the Tk. 25,000 crore Pre-Finance Facility, the TARA Refinance Scheme for women entrepreneurs, and Agro-Processing and ‘New Entrepreneur Refinance’ programmes, we’ve been able to channel funds where they can make the biggest impact.
Green financing has been equally close to my heart. By tapping into facilities like the ‘Green Transformation Fund’ and the ‘Technology Development Fund’, we’ve supported renewable energy, energy efficiency, and effluent treatment plants. These projects may sound technical, but their impact is deeply environmental as they create cleaner air, safer water, and healthier communities.
Our commitment hasn’t gone unnoticed. BRAC Bank consistently ranks among the top sustainable banks in Bangladesh and holds the highest Bloomberg ESG rating in the country. These recognitions remind us that we are on the right path, but they also push us to go further.
Bringing Sustainability Home
At BRAC Bank, we don’t view sustainability as something we only offer to customers—it also starts with us. Our digital platforms, Astha and CorpNet, have brought banking to the fingertips of over 10 lakh customers. Every digital transaction reduces paper use, branch visits, and travel-related carbon emissions.
Inside our offices, we’ve made deliberate choices: converting to LED lighting, installing solar panels at selected branches and ATMs, and introducing a Green Office Guideline to make sure every small action—from printing to power use—reflects efficiency. Our Sustainability Report, aligned with international standards, details not just our successes but also the carbon calculations that keep us accountable.
The Roadblocks We Face
Of course, this journey is not without challenges. Bringing awareness is the toughest part. Many businesses still consider green projects a luxury, largely because the initial investment in clean technologies is higher than conventional alternatives. On top of that, Bangladesh lacks skilled manpower trained in sustainable finance and ESG practices.
But these barriers only strengthen my belief in leadership. We were the first bank in Bangladesh to publish an ISSB-aligned IFRS S1 and S2 report. It was not easy, but it proved that once you commit to sustainability, the obstacles start turning into milestones.
Where We’re Headed
Looking ahead, my vision is to expand our sustainability-linked financing and issue more bonds dedicated to climate-friendly projects. At the same time, we will continue to grow our digital banking platforms and adopt measures to shrink our operational footprint.
I also believe the government has a critical role to play. Policy incentives such as tax breaks, subsidies, and broader refinancing schemes would not only encourage banks but also make it easier for businesses to transition to greener practices. Together, we can accelerate Bangladesh’s leadership in sustainable finance.
Beyond Banking: Making a Human Impact
Sustainability for us isn’t just about green finance—it’s also about creating opportunities for people. Inspired by Sir Fazle Hasan Abed, our founder at BRAC, we focus on education, healthcare, environment, and climate change through our CSR programmes.
The Aporajeyo TARA Scholarship has already helped more than 700 young women from underserved areas continue their higher education. Aporajeyo Ami has improved healthcare and disability inclusion for over 50,000 people. Our Aporajeyo Desh programme promotes climate-smart farming and access to safe drinking water in coastal areas. And with the BRAC Bank–Samakal Literary Award, we’ve kept our promise to nurture Bangla literature, honouring 38 writers since 2011.
Managing risks the right way
Ultimately, no path forward for sustainable banking is complete without addressing risk. We take ESG risk management seriously, following the guidelines of the Bangladesh Bank’s ESRM and the IFC Performance Standards. Our climate risk assessments cover both physical risks—like floods and cyclones—and transition risks that come with shifting to a greener economy. By doing so, we ensure that our financing decisions remain responsible and resilient.
For me, sustainable banking is reliable for a secure future. Every loan we disburse, every initiative we support, and every digital innovation we roll out is part of a much bigger story: a story where finance doesn’t just fuel economic growth but safeguards the planet and uplifts people.
At BRAC Bank, we are committed to bringing the necessary changes to support our vision.
Source: https://www.tbsnews.net/
