Sustainable finance generally refers to the process of taking into account of due environmental, social and governance (ESG) considerations when making investment decisions in the financial sector. More specifically, environmental considerations may refer to climate change mitigation and adaptation as well as the environment more broadly, such as the preservation of biodiversity, pollution prevention and circular economy. Social considerations may refer to issues of inequality, inclusiveness, labor relations, investment in human capital and communities as well as human rights issues. Sustainable finance looks at environmental, social and governance (ESG) factors in both market practice and policy frameworks for banking, capital markets, investment and insurance. It aims at introducing environmental, social, and governance standards as well as risk management to the lending practices of Bank Asia PLC. to promote stability of financial system of the country.

According to Bangladesh Bank, “Sustainable finance refers to any form of financial service that includes investment, insurance, banking, accounting, trading, economical and financial advice integrating environmental, social and governance (ESG) criteria into the business or investment decisions for lasting benefits of both clients and society at large. Sustainable Finance is about Green Banking, Sustainable Agriculture, Sustainable CMSME and CSR that includes Socially Responsible Finance Activities with respect to sustainability”.

Green Finance is a subset of a wider definition of Sustainable Finance. For the Banking Community in Bangladesh, Sustainable Finance is the contribution towards sustainability with respect to environmental, social, economic and governance issues which are in conformity with Sustainable Development Goals (SDGs), Intended Nationally Determined Contributions (INDCs), other international benchmark/norms/standard and various National Rules/Regulations/Guidelines issued by the Government of the People’s Republic of Bangladesh.

Banks must participate and contribute to the implementation of the INDCs for attaining respective SDGs. In the INDC, Bangladesh is committed to reduce GHG (greenhouse gas) emissions by 5% unconditionally from Business as Usual (BaU) levels by 2030 or a conditional 15% reduction in GHG emission from BaU levels by 2030. Banks have targets both for green finance and sustainable finance which are linked to GHG emissions reductions and strengthened climate resilience as well. Sustainable Finance is a work-stream to support the delivery on the objectives of Green Products/Projects/Initiatives by channeling private investment into the transition to a climate- neutral, climate-resilient, low-carbon, more resource-efficient, green, competitive and inclusive sustainable economy.

Being a responsible corporate entity, Bank Asia always projects its focus to sustainability issues not only for the business but also for the environmental, social and governance (ESG) factors in its day to day activities in order to help the country achieve SDGs. For the contributions to the sustainability issues, Bank Asia has been ranked among the Top Ten Banks in Sustainability Rating conducted by Bangladesh Bank for two consecutive years 2021 and 2022 based on the performance of 2020 and 2021 respectively.

Energy Savings

To achieve long-term sustainable development, Bank Asia plays an active role for making ‘low carbon economy’. Since 2011, Bank Asia has worked toward more energy efficient operations throughout its network of banking centers, reducing costs by millions of dollars and drastically reducing its emissions, consumption and waste in the process.

• More than 30% electricity is saved every year using the day light inside Corporate Office
• Energy savings bulbs being used in the office
• E-mail has been focused of both internal and external communications with an aim to reduce the paper consumption thereby reducing deforestation
• Loan sanctions have been uploaded in the MISDB in portable document format instead of hard copies
• For branding & marketing communication purpose, Bank Asia is focusing more on Facebook, Websites & other online platforms

Carbon offset projects

During 2022 and 20223, the Bank disbursed an amount of Tk.13,129.56 million to 155904 rural farmers where an amount of Tk.1,908.55 million was disbursed to 29,350 farmers through Online Credit Approval System (OCAS).

Reducing Energy & Resource Consumption

New Issuance, Replacement, Activation and PIN request are automated which reduced Debit Card issuance time to 2-3 days from 7-9 days as well as saved 940,000 pages and 190,000 courier service delivery cost.

Instruments of Green Banking offered by Cards Division include E-Statement, SMS Banking, SMS Alert, Online Banking, E-Fund Transfer, Digital Attendance and E-Mail correspondences which help to increase in net savings by practicing green banking instruments. During 2022 and 2023, the net savings was worth Tk.10.04 million and Tk.10.49 million respectively.

Financing ‘Renewable Energy’ and ‘Energy & Resource Efficiency’

• From January 2022 to December 2023, Bank Asia has disbursed an amount of Tk.2029.15 million in Renewable Energy and Tk. million in Energy & Resource Efficiency under Green Finance. This will enable the business entities to improve their Energy & Resource Efficiency and will reduce their operating cost to a great extent through using renewable energy without any adverse effect on the environment.
• Apart from financing to Renewable Energy, Bank Asia is also cautious about its own use of renewable energy. Solar panels are already installed in 11 branches located at Patherhat, Madhobdi, Dohazari, Hajigonj, Faridpur, Elephant Road, Lalmatia, Sonaimuri, Bashabo SME Service Centre, Bank Asia Bhaban & Nimtola Branch.

Water Usages

Bank Asia is very much conscious about efficient use of water. As a financial institution its use of water is already very much restricted. Major consumption of water is for drinking purpose. Our bank is also non- compromising about ensuring pure and safe drinking water for its employees and visitors. But normal supply water in Bangladesh is not safe for drinking. Therefore, to overcome the situation, every branch and corporate office are supplied with specially procured filtered mineral water. The management of the bank takes special care so that wastage of water is minimum. Total consumption is controlled by monitoring drinking water cost per employee per month.

Waste Management

The process involved in dealing with the waste generated by day to day banking activities, food consumption, physical wear & tear of computer and office equipment, obsolete furniture & fixture and newspapers. Being a financial institution, Bank Asia does not deal with any hazardous waste.

• Both sides of papers are used and wasted papers are collected using bins after shredding

• Donates old equipment and furniture for charity or sold
• Food wastes are collected by community cleaners on daily basis
• Toner, cartridges and newspapers disposed of through community cleaners

Financing Liquid Waste Management

From January 2022 to December 2023, Bank Asia has disbursed an amount of Tk.916.90 million in Liquid Waste Management and as of December 2023, the outstanding was Tk.544.62 million. This includes Central ETP, Biological ETP, Combination of Chemical & Biological ETP etc. In 2022 & 2023, the Bank also financed various projects under Establishment/Green Building amounting to Tk.654.62 million, which helps to reduce environmental effect.

Saving CO2 emission

For saving money & time and to lessen the emission of CO2, Bank Asia implemented Video Conferencing System between Corporate Office and branches in order to conduct meetings. BAITD (Bank Asia Institute of Training & Development) also provided virtual training to the employees using ZOOM, Cisco Webex & TrueConf platforms throughout the year.

Reducing Carbon Footprint

As part of our commitment to green economy, Bank Asia signed a participation agreement with Bangladesh Bank under refinance scheme in 2011 for lending in solar energy, bio-gas, effluent treatment plant (ETP) and hybrid hoffman kiln (HHK).

Initiative to Reduce the Bank’s Adverse Impact on Environment

Bank Asia does not finance any tobacco related business, weapons & munitions, gambling, casinos, pornography (goods/stores/web-based) and alcoholic beverage and all offices of the Bank are declared smoking free zone. Bank Asia incorporated environmental and climate change risk as part of the existing credit risk methodology prescribed to assess borrowers through Environmental & Social Due Diligence (ESDD) checklists.

Socially Responsible Financing (SRF)

During the years 2022 and 2023, Bank Asia disbursed an amount of Tk.7874.42 million to 115955 number of root level farmers and individuals through NGO/MFI linkage as Socially Responsible Financing (SRF) under Sustainable Linked Finance among whom there were 107486 number of women borrowers and the amount was Tk.7109.09 million.

Sustainable Finance Unit and its initiatives  

In view of making Bank Asia greener, Sustainable Finance Unit has been restructured and included more members to promote sustainable initiatives of the Bank.

Reinforcing and Strengthening ESRM guideline

Bank Asia has been taking initiative to strengthen and fortify the current ESRM guideline and implement the proposed ESRM guideline of Bangladesh Bank.

The organizational roles and responsibility defined in the ESRM Guidelines are built upon the principles of integration of Environmental & Social risks into the Bank’s overall credit policy. It clearly delineates the responsibility of different functions of the bank in terms of E&S risk assessment and the decision-making process based upon E&S risk rating.

Since 2011, Bank Asia has started Environmental & Social Due Diligence (ESDD) through ESDD Checklist in its investment proposals by following ESRM Guidelines. From January 2022 to December 2023, total 8925 number of finances rated where 7945 number of finances disbursed for Tk.250,968.75 million. Besides, Training Institute of Bank Asia has provided training on Green Banking twice under Foundation training course & other training related to Green banking to the employees of the Bank.

Sustainability Report & Rating

• Since 2012, Bank Asia has published Sustainability Report and achieved Gold Rank- Best Sustainability Report in Asia Sustainability Reporting Rating 2021-17th SRA 2022 by NCSR (National Center for Sustainability Reporting) & ICSP (Institute of Certified Sustainability Practitioners).
• In 2022, Bank Asia was rated among the Top 10 Banks in Sustainability Rating for 2021 conducted by Bangladesh Bank which is for the 2^nd consecutive year. It was a tremendous achievement for the organization and is the acknowledgement of the Bank being a sustainable and environment friendly one.

Online Banking

• Online banking system is a great way to reduce wastage of paper.
• Bank Asia account holders are facilitated with e-commerce transactions such as purchasing e-ticket of bus, train, airways, cinemas & movies, mobile recharge, hotel booking, bill payment such as hospital bill payment, advertisement bill payment, passport fees payment, WASA, DESA, computer accessories and service related payment, e-shopping etc. by the debit/credit card of Bank Asia with less expense and within the shortest possible time from any time anywhere.
• The Bank has also integrated Internet banking system to NPSB on first phase and through this connectivity and our customers can transfer funds from their Accounts to Inter-Bank Accounts and Debit & Credit Cards real time and vice versa.
• In our banking system, ‘e-Commerce’ has been incorporated for our valued customers where Bank plays as payment partner & account holders can shop online through internet banking.
• Our banking system provides services through a unique banking app “Bank Asia SMART APP” both for branch & Agent Banking customers and also secures all kinds of transactions and information about customers.