Green Banking Policy

Green Banking Policy Guideline & Initiatives:
Bangladesh Bank vide BRPD Circular no. 02 dated 27.02.2011 circulated prudential Guidelines for Green Banking and advised all Banks to implement the policy. The Board of Directors adopted Bangladesh Bank Policy Guideline for Green Banking for implementation in our Bank in their 177th meeting held on 22.06.2011. Salient features of the policy Guidelines on Green banking & Initiatives taken are appended below:

Introduction:
We are aware that global warming is an issue that calls for a global response. The rapid change in climate will be too great to allow many eco-system to suitably adapt, since the change have direct impact on biodiversity, agriculture, forestry, dry land, water resources and human health. Due to unusual weather pattern, rising greenhouse gas, declining air quality etc. society demands that business also take responsibility in safeguarding the planet. Green finance as a part of Green Banking makes great contribution to the transition to resource-efficient and low carbon industries i.e green industry and green economy in general. Green banking is a component of the global initiative by a group of stakeholders to save environment. The state of environment in Bangladesh is rapidly deteriorating. The key areas of environmental degradation cover air pollution, water pollution and scarcity, encroachment of rivers, improper disposal of industrial/ medical and house- hold waste, deforestation, loss of open space and loss biodiversity. In addition, Bangladesh is one of the most climate change vulnerable countries. In line with global development and response to the environmental degradation, final sector in Bangladesh should play important roles as one of the key stake holders.

In response to the above, urgent measures are required by stake holders for sustainable development and thereby save the planet. Banks hold a unique position in an economic system that can affect production, business and other economic activities through their financing activities and thus may contribute to pollute environment. Moreover, energy and water efficiency and waste reduction are of high concern for many big banks. Green Banks or environmentally responsible Banks do not improve their own standards but also effect socially responsible behavior of other business.

Bangladesh Bank’s Initiatives:
Bangladesh Bank is well aware of the environmental degradation situation and has already given time to time direction to all scheduled banks. Commercial Banks are now required to ensure necessary measures to protect environmental pollution while financing a new project or providing working capital to the existing enterprise. Bank have been advised to facilitate their client with utmost care in opening letter of Credit (L/C) for installation of Effluent Treatment Plant (ETP) Bangladesh Bank has introduced some environment friendly loan refinance schemes to encourage scheduled Bank has introduced some environment friendly loan refinance schemes to encourage scheduled Bank to finance in ETP plant, solar energy, Biogas, Hoffman Kiln for brick field etc. A comprehensive Guidelines on Corporate Social Responsibility (CSR) has been issued where bank have been asked to concentrate hard on linking CSR at their highest corporate level for ingraining environmentally and socially responsible practice and engaging with borrower in scrutiny of the environmental and social impacts. Bangladesh Bank advised for the impact of natural climate change & encourage the farmer to cultivate salinity resistant crops in the salty areas, water, resistant, crop in the water logged & flood prone areas, drought resistant crops in the salty areas, water resistant crop in the water logged & flood prone areas, drought resistant crops in the drought prone areas, using surface water instead of underground water for irrigation and also using organic fertilizer, insecticide by natural means instead of using chemical fertilizer & pesticides.

Standard Bank’s Initiatives towards “Green Banking”:
1) Green Banking Unit is formed.
2) Environmental Risk is incorporated in Core Risk Management(CRM)
3) A Climate Risk Fund is Built Up.
4) All Branch Managers and Departmental Heads are advised to follow ERM Guideline, Green Banking Reporting Format.
5) All Branch Managers are advised to send report incorporating Environmental Risk Rating (EnvRR)
6) All Branches fill up General Environmental Due Diligence Checklist and Sector Environmental Due Diligence Checklist and send with relevant proposals.
7) Introducing Green Marketing.
8) Financing in Environmental Friendly Projects like Solar panel/ Renewable Energy Plant, Bio-gas plant, Solar home system, Effluent Treatment Plant (ETP), Improvised & modern technology Brick Field etc.
9) Training to the officials on Green Banking & Environmental Risk Management.
10) Money withdrawal through ATM Booth.
11) 100% Online Banking. Aim is Paperless Banking.
12) In-house consumption of paper, electricity, fuel is monitored.
13) To create green environment and carbon free atmosphere, Head Office & all Standard Bank Branches are fully decorated with pot plants to its premises to increase beauty and environmental balance.
14) Head office & all Branches already started using energy saving bulbs to reduce electricity consumption.
15) Standard Bank Ltd. already introduced Debit/ Visa-Credit Card and established ATM/ Pos to reduce the printing cost of cheque books.
16) Introduction of solar Panel Loans Scheme to increase use of green energy to reduce pressure on grid electricity.
17) All banking correspondence & Circulars are sent through e-mail to reduce paper waste and postage cost.