Catalyzing Climate Action Through Sustainable Finance

In today's rapidly changing world, where climate change and environmental risks pose significant challenges, Green and Sustainable Finance has emerged as powerful tools to drive the transition to a low-carbon, resilient economy.

Green Finance focuses on financing initiatives aimed at reducing greenhouse gas (GHG) emissions and promoting renewable energy sources. These efforts are crucial in preserving our ecosystems and ensuring a sustainable future for generations to come.

Sustainable Finance goes a step further, integrating Environmental, Social, and Governance (ESG) factors into investment and business decisions. By weighing social and governance considerations alongside environmental goals, sustainable finance creates long-term value for people, the planet, and businesses alike, driving inclusive economic growth that benefits everyone.

As one of Bangladesh's leading private commercial banks, BRAC Bank recognizes the critical role financial institutions play in channeling capital toward a greener, more resilient economy. Through our Sustainable Finance Department, we work to embed environmental and social considerations into our core banking operations from green and sustainable financing to climate risk management and responsible lending practices. Our approach is shaped by Bangladesh Bank's sustainability and green finance guidelines, ensuring that our practices align with national priorities for environmental stewardship and inclusive growth.

At BRAC Bank, we are committed to supporting this transformation helping businesses, communities, and individuals across Bangladesh build resilience against climate and environmental risks while fostering long-term, sustainable growth. Together, we can build a greener, more sustainable future for all.

Sustainability Accolades & ESG Ratings

Global Milestone: BRAC Bank Joins PCAF Climate Data Working Group

BRAC Bank PLC has been selected as a core member of the Partnership for Carbon Accounting Financials (PCAF)’s Global Climate Data Working Group, joining as the first Bangladeshi Bank along with leading global financial institutions for shaping international climate data standards. This recognition reflects the Bank’s sustained commitment to sustainable finance and reinforces its position as a thought leader in climate finance, both nationally and internationally.

Bangladesh’s First Social Bond

BRAC Bank has issued first-ever social bond of Bangladesh, aligned with the 2025 ICMA Social Bond Principles, marks a transformative step for financial inclusion in the country. The bank will allocate 79% of proceeds to CMSME financing, prioritizing collateral-free loans to spark employment.

Ranked No.1 in Bloomberg ESG Rating

BRAC Bank has achieved a major milestone by being ranked the No. 1 sustainable bank in Bangladesh by Bloomberg.

One of the Top Sustainable Banks for 5 Consecutive Years

For the fifth consecutive year, BRAC Bank has been named the Top Sustainable Bank by Bangladesh Bank a recognition we've held since the Sustainability Rating began in 2020. It reflects our institutional strength in governance, responsible lending.

First bank in Bangladesh to independently disclose IFRS S1&S2 Report

 BRAC Bank became the first bank in Bangladesh to independently disclose IFRS S1 & S2 report according to ISSB Standard. 

DFI Engagement for Creating Social and Environmental Impact

BRAC Bank collaborates with leading global Development Finance Institutions (DFIs) to channel bilateral and multilateral finance into impactful socioeconomic and environmental initiatives across Bangladesh. The bank directs this capital toward critical sectors, including Women Enterprise Development, MSMEs, Affordable Housing, Financial Inclusion, and Economic Resilience. List of DFI’s: 

Our Contribution to Environment and Climate Advancement 

1. Green Finance Portfolio in 2026

BDT 61,679 million 

2. Sustainable Finance Portfolio in 2026

BDT 592,815 million

3. CSR Expenditure

    BDT 247.09 million 

Our Key Sustainable Finance Products

Training and Capacity Building on our own Platform ALO

Learn More:

BRAC Bank continued to strengthen its sustainability culture and embed ESG principles across the organization through ALO, the Bank’s internal digital learning platform, by delivering a succinct training program on Sustainability and Sustainable Finance. In 2025 over 1,300 employees participated in the training.

• Employee Training: Regular internal sessions to build understanding of sustainable finance principles.
• Relationship Manager Training: Specialized programs to equip managers with expertise in green financing and sustainability.
• Knowledge Sharing: Participation in national and international seminar, workshops and conference industry programs to stay updated on global trends.
• Capacity Building: Ongoing development to ensure all employees are aligned with our sustainability goals.

1. Expert Assistance: Our knowledgeable staff at each help desk provides tailored advice on sustainable finance options that suit your business or personal project.
2. Guidance on Green Products: Get clear information on available green products, including renewable energy solutions, waste management systems, and eco-friendly technologies.
3. Application Support: Assistance with the application process for financing sustainable projects, ensuring compliance with all relevant regulations and eligibility criteria.
4. ESG Considerations: Learn how integrating Environmental, Social, and Governance (ESG) factors into your decision-making can help you achieve long-term sustainability goals.

Find Your Help Desk:

Learn More

If you're interested in exploring sustainable finance solutions or need guidance on financing a green project, visit one of our 50 dedicated Sustainable Finance Help Desks across the country. Our experts are ready to help you navigate through the various financing options available and support you on your path to a more sustainable future. Feel free to contact us or visit any of the listed branches to get started on your sustainability journey today.

Environment and Social Risk Management System Policy

Our Environmental and Social Risk Management (ESRM) is a structured framework to identify, assess, mitigate, and monitor environmental and social risks across lending and investment activities, embedded as a core part of the Bank's overall risk management.

The ESRM framework covers:

• Climate change and environmental impact
• Natural resource use
• Labor and human rights
• Occupational health and safety
• Community and social impacts

It is fully integrated into credit processes, Environmental and Social Due Diligence (ESDD) is conducted before disbursement, with ongoing monitoring by Relationship Managers and independent oversight through Credit Inspection. The Bank aligns its practices with Bangladesh Bank's ESRM Guidelines, CSR Guidelines, Sustainable Finance Policy, and Climate-related Disclosure Guidelines, and is working toward compliance with the new Climate Risk Management Guideline by 2027.

Our ESRM process:

BRAC Bank’s Exclusion List

We maintain an Exclusion List identifying activities we do not finance, regardless of commercial viability. This reflects global best practice followed by institutions, as well as leading banks worldwide and is fully integrated into our values and credit risk process ensuring every financing decision aligns with our commitment to responsible sustainable banking.

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1. Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances, PCB's, wildlife or regulated under the Convention on International Trade in Endangered Species (CITES). (Links: United Nations (UN) list of banned chemicals and products; http://www.un.org/esa/coordination/Consolidated.list-13FinalFinal.pdf and CITES list of endangered species: http://www.cites.org/eng/app/E-Apr27.pdf )

2. Forced Labour or Child Labour in Hazardous Working Conditions 

• Forced Labour means all work or service, not voluntarily performed, that is extracted from an individual under threat of force or penalty as defined by ILO conventions, UNGC Principles and/or local legislations. 
• To address the issue of Child Labour, persons may only be employees if they are at least 14 years old, as defined in the ILO Fundamental Human Rights Conventions (Minimum Age Convention C138, Art. 2), unless local legislation specifies compulsory school attendance or the minimum age for working. In such cases the higher age shall apply. 

3. Any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international phase-outs or bans, such as:

• Ozone depleting substances, PCB's (Polychlorinated Biphenyls) and other specific, hazardous pharmaceuticals, and unauthorized manufacturing of pesticides/herbicides or chemicals.
• Wildlife or products regulated under the Convention on International Trade in Endangered Species or Wild Fauna and Flora (CITES); or
• Unsustainable fishing methods (e.g., blast fishing and drift net fishing in the marine environment using nets more than 2.5 km in length, deep sea bottom trawling, or fishing with the use of explosives or cyanide).
• Operations impacting UNESCO World Heritage Site and/or Ramsar site.

4. Cross-border trade in waste and waste products, unless compliant with the Basel Convention and the underlying regulations.

5. Financing in Coal Power and Mining activities such as

• Coal power.
• Power generation from any power plant the energy source of which, whether in whole or in part, is coal which delivers its power to the transmission or distribution grid.
• Coal mining.

6. Destruction of High Conservation Value areas.

Destruction means the (1) elimination or severe diminution of the integrity of an area caused by a major, long-term change in land or water use or (2) modification of a habitat in such a way that the area’s ability to maintain its role is lost.

7. Radioactive materials. 

This does not apply to the purchase of medical equipment, quality control (measurement) equipment or any other equipment where the radioactive source is understood to be trivial and/or adequately shielded.

8. Unbounded asbestos fibres.

This does not apply to purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%.

9. Pornography or prostitution.

10. Racist and anti-democratic media

11. Commercial logging operations for use in primary tropical moist forest

• Illegal logging, and logging operations or conversion of land for plantation use in primary tropical moist forests.

12. Production or trade in wood or other forestry products other than from sustainably managed forests 

13. Production of trade in radioactive materials and unbounded asbestos fibres.

14. Production or activities that impinge on the lands owned, or claimed under adjudication,

by Indigenous Peoples, without full documented consent of such peoples.

15. Ship breaking/ trading activities which include:

• Ships with prevalent asbestos use (for e.g. passenger cruise)
• Ships listed on the Greenpeace blacklist*
• Ships not certified “gas free” for hot work.

16. In the event of any of the following products form a substantial part of a company’s primary operations, or a financial institution, investment fund or company’s financed business activities.

• Alcoholic beverages (excluding beer and wine)
• Tobacco
• Weapons and munitions
• Gambling, casinos, and equivalent enterprises.
• Financing in any activities which is related to Brick production through Fixed Chimney Kiln (FCK).

Sustainable Finance Governance Structure

Sustainable Finance Committee (SFC)

In accordance with Bangladesh Bank guidelines, BRAC Bank has established a Sustainable Finance Committee (SFC) to provide structured oversight of ESG and sustainable finance initiatives.

The Committee is chaired by the Managing Director & CEO and operates under the supervision of the BRMC.

The SFC provides a cross-functional platform that ensures ESG integration across all key business areas, including risk, finance, operations, technology, and human resources.

Members of Sustainable Finance Committee (SFC)

Chairman

Members

Sustainable Finance Department

To advance its sustainability agenda and strengthen ESG integration across the Bank, BRAC Bank has established the Sustainable Finance Department (SFD) as the central coordinating body for sustainability-related initiatives under the guidance of the Sustainable Finance Committee. The Department is responsible for embedding sustainability considerations into strategy, operations, risk management and stakeholder engagement processes.

The Department operates through two dedicated wings:

ESG & Sustainable Finance Wing: Sustainable finance, ESG integration, sustainability reporting and climate risk management

Corporate Social Responsibility (CSR) Wing: Community development, financial inclusion and social impact initiatives

Our Approach for GHG Emission Accounting

BRAC Bank is committed to calculating and disclosing its greenhouse gas (GHG) emissions across Scope 1, Scope 2, and Scope 3, using the Partnership for Carbon Accounting Financials (PCAF) methodology. This commitment aligns with our broader sustainability goals and emphasizes transparency in our operations. Our GHG emission data, fully endorsed by PCAF, is publicly available on their website, providing full visibility into our progress and ensuring that our practices align with international reporting standards.

You can view our sustainability data on PCAF's website through this link.

Sustainability Report

To ensure transparency, consistency, and global comparability, our sustainability report has been prepared following internationally recognized sustainability reporting standards and frameworks, including:

• Global Reporting Initiative (GRI) Standards
• International Sustainability Standards Board (ISSB) Standards — IFRS S1 and IFRS S2
• Partnership for Carbon Accounting Financials (PCAF) Methodology
• Bloomberg ESG Indexing and Disclosure Framework

Demonstrating leadership within Bangladesh’s banking sector, BRAC Bank continues to strengthen climate-related reporting and carbon accounting practices. The Bank measures and reports Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions using the PCAF methodology, ensuring transparent and standardized measurement of both operational and financed emissions.

You can access all the reports here.

ESG & Sustainable Finance Team

Contact Information

Tashmeem Muntazir Chowdhury

Head of ESG & Sustainable Finance

Email: tashmeem.muntazir@bracbank.com