SBFN Member Since:
2012
Member Organisations
Bangladesh Bank
Progress Against sub Pillars
Framework Documents
| Ref | Country | Policies/ Principles/ Guidelines | Year | Issuer |
|---|---|---|---|---|
| 8 | Bangladesh | SFD Circular No. 01 Target and Achievement of Sustainable Finance & Green Finance | 2021 | Bangladesh Bank |
| 10 | Bangladesh | 2020 | Bangladesh Bank | |
| 11 | Bangladesh | Sustainable Finance Policy for Banks and Financial Institutions | 2020 | Bangladesh Bank |
| 12 | Bangladesh | 2019 | Bangladesh Bank | |
| 13 | Bangladesh | 2018 | Bangladesh Bank | |
| 14 | Bangladesh | 2018 | Bangladesh Bank | |
| 15 | Bangladesh | 2017 | Bangladesh Bank | |
| 16 | Bangladesh | 2011 | Bangladesh Bank |
Pillar 1 - ESG Integration - Strategic Alignment
National Framework
P 1.1 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
Yes
Source Reference Detail
1. Policy Guidelines for Green Banking; BRPD Circular No.-02/2011 2. Guidelines on Environmental & Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh. It is mandatory for all Banks & FIs to implement the guidelines by integrating Environment & Social (E&S) risks and incorporating appropriate risk mitigation measures in overall credit management to be able for extending the credit/investment portfolio rather than avoid investing in high E&S risks. Reference: https://www.bb.org.bd/aboutus/regulationguideline/guidelist.php; -> Guidelines on Environmental & Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh, February 2017; SFD Circular No.- 01/2017.3. Sustainable Finance Policy for Banks & Financial Institutions; https://www.bb.org.bd/mediaroom/circulars/circulars.php# (Department: Sustainable Finance Department-> SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)Policy Guidelines for Green Banking (BB, 2011)
Source Reference Description
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P 1.2 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 1 - ESG Integration - Strategic Alignment
Alignment with International Goals & Standards
P 1.3 – Does the Framework make reference to international sustainable development frameworks or goals?
Yes
Source Reference Detail
Sustainable Development Goals (SDGs) has been referred in the Guideline on E&S Risk Management for Banks and FIs in Bangladesh (BB, 2017), Page 3
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Page 3
P 1.4 – Does the Framework make reference to established international ESG risk management standards and principles for FIs??
Yes
Source Reference Detail
1. Policy Guidelines for Green Banking; BRPD Circular No.-02/2011 2. Guidelines on Environmental & Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh. It is mandatory for all Banks & FIs to implement the guidelines by integrating Environment & Social (E&S) risks and incorporating appropriate risk mitigation measures in overall credit management to be able for extending the credit/investment portfolio rather than avoid investing in high E&S risks. Reference: https://www.bb.org.bd/aboutus/regulationguideline/guidelist.php; -> Guidelines on Environmental & Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh, February 2017; SFD Circular No.- 01/2017.3. Sustainable Finance Policy for Banks & Financial Institutions; https://www.bb.org.bd/mediaroom/circulars/circulars.php# (Department: Sustainable Finance Department-> SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Page 11 – 5
Pillar 1 - ESG Integration - Strategic Alignment
Alignment with national goals & strategies
P 1.5 – Does the Framework make reference to specific national development objectives, plans, policies, goals, or targets?
Yes
Source Reference Detail
Categorizing Transection.
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Page 15
P 1.6 – Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design and/or implementation related to ESG integration?
Yes
Source Reference Detail
c) stakeholder consultations.
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Page 3
P 1.7 – Does any inter-agency data sharing currently exist related to ESG integration by FIs?
Yes
Source Reference Detail
–
Source Reference Document
The cooperation agreement with IFC has scope for interagency data sharing in the fields of Environment, Social, and Governance.
Source Reference Description
Refer to Description
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 1.8 – Does the Framework provide guidance on the role of the regulator or industry association with regard to assessing and managing ESG risk and performance in the financial sector?
Yes
Source Reference Detail
Environmental & Social Risk Management (ESRM) forBanks and Financial Institutions in Bangladesh is mandatory for all Banks & Fis to implement the guidelines by integratingEnvironment & Social (E&S) risks and incorporating appropriate risk mitigation measures in overallcredit management to be able for expanding the credit/investment portfolio rather than avoidinvesting in high E&S risks. BB, as a regulator of banking sector, has the authority to monitor the above mentioned issue, and is also working on motivating the Banks & FIs in ingraining E&S risk as thier core risk. By the Monetary Policy 2019-20, BB has expressed their priority to focus on ‘Green Transition of output practices for environmental sustainability’.
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
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P 1.9 – Has the regulator or industry association undertaken market assessment to identify systemic ESG risks through analysis of the portfolios of supervised entities/members and published the results?
Yes
Source Reference Detail
The International Finance Corporation (IFC), in partnership with the Swedish International Development Cooperation Agency, commissioned Vivid Economics and Climate Bonds Initiative to undertake the study on Market Landscape on Green Bond, to assess the potential for a domestic green bond market in Bangladesh, and to support Bangladesh Bank in helping this market achieve its potential. Based on the study, a Market Landscape report was published and uploaded on BB website in 2020.
Source Reference Document
Refer to Description
Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Technical Guidance
P 1.10 – Does the Framework provide technical guidance or tools to support implementation of ESG risk and performance management by the financial sector?
Yes
Source Reference Detail
Bangladesh Bank (Central Bank of Bangladesh) has issued the Guidelines onEnvironmental & Social Risk Management (ESRM) forBanks and Financial Institutions in Bangladesh. It is mandatory for all Banks & Fis to implement the guidelines by integratingEnvironment & Social (E&S) risks and incorporating appropriate risk mitigation measures in overallcredit management to be able for expanding the credit/investment portfolio rather than avoidinvesting in high E&S risks.
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
–
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Supervisory Activities & incentives
P 1.11 – Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry association?
Yes
Source Reference Detail
Data related to ESRM: number of environmental risk rated projects and amount disbursed against rated projects- are collected through Quarterly Review Report on Green Banking Activities of Banks & Financial Institutions. Reference: https://www.bb.org.bd/mediaroom/circulars/circulars.php -> Search by Department -> Sustainable Finance Department -> SFD Circular No. 01/2018 (15.01.2018)
Source Reference Document
Refer to Description
Source Reference Description
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P 1.12 – Does the regulator or industry association provide any financial or non-financial incentives for FIs to manage ESG performance as part of the Framework?
Yes
Source Reference Detail
1. integration into CAMELS rating of the FI by BB. Reference: Guideline on E&S Risk Management for Banks and FIs in Bangladesh (BB, 2017), page 21 – 8.22. BB will recognize top performing banks and FIs on basis of Sustainability Rating. Reference: Sustainable Finance Policy for Banks & FIs, Page 30, Para 5- Reward and Incentives
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Refer to description
P 1.13 – Does the regulator or industry association apply any disincentives/penalties for non-compliance by FIs in terms of expectations from the regulator and/or industry association related to ESG risk management as part of the Framework?
No
Source Reference Detail
All the policies under this framework have been issued under Bank Company Act 1991. Any non-compliance by FIs in terms of expectations from BB is punishable according to the above mentioned act.
Source Reference Document
–
Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 1.14 – Has the regulator or industry association established a data collection approach and database to track or regularly publish data related to ESG integration by FIs as part of the Framework?
Yes
Source Reference Detail
Policy Guidelines for Green Banking (BB, 2011), Page 2 – 1.1.Guideline on E&S Risk Management for Banks and FIs in Bangladesh (BB, 2017), Page 13 – B.
Source Reference Document
Refer to Description
Source Reference Description
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Pillar 1 - ESG Integration - Expectations of FI Actions
Strategy & Governance
P 1.15 – Does the Framework require/ask the FI’s board of directors (or highest governing body) to approve an ESRM and/or ESG integration strategy, and to supervise its implementation?
Yes
Source Reference Detail
Policy Guidelines for Green Banking (BB, 2011), Page 2 – 1.1.Guideline on E&S Risk Management for Banks and FIs in Bangladesh (BB, 2017), Page 13 – B.
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)Policy Guidelines for Green Banking (BB, 2011)
Source Reference Description
Refer to description
Pillar 1 - ESG Integration - Expectations of FI Actions
Organizational Structure & Capacity Building
P 1.16 – Does the Framework require/ask FIs to allocate resources/budget commensurate with portfolio ESG risks and define roles and responsibilities for ESG integration within the organization?
Yes
Source Reference Detail
Policy Guidelines for Green Banking (BB, 2011), Page 2 – 1.1.Guideline on E&S Risk Management for Banks and FIs in Bangladesh (BB, 2017), Page 13 – B
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)Policy Guidelines for Green Banking (BB, 2011)
Source Reference Description
Refer to description
P 1.17 – Does the Framework require/ask FIs to develop and maintain the ESG expertise and capacity of staff commensurate with portfolio ESG risks through regular training and learning?
Yes
Source Reference Detail
–
Source Reference Document
Policy Guidelines for Green Banking (BB, 2011)
Source Reference Description
Page 2 – 1.8
P 1.18 – Does the Framework require/ask FIs to create incentives for managers to reduce the ESG risk-level of the portfolio over a specified timeframe?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
Page 20 – 8
Pillar 1 - ESG Integration - Expectations of FI Actions
Policies & Procedures
P 1.19 – Does the Framework require/ask FIs to develop policies and procedures to identify, classify, measure, monitor, and manage ESG risks and performance throughout the financing cycle at the client level and/or the transaction/project level?
Yes
Source Reference Detail
a) transaction screening b) risk categorization and rating methodologies c) due diligence processes d) financing conditions (rates/terms/collaterals) e) action plan / financing covenants (e.g., conditions of disbursement related to ESG issues) f) engagement with company/client g) supervision/monitoring h) loan denial or divestment Reference: Policy Guidelines for Green Banking (BB, 2011), Page 2 – 1.1.
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Page 2 – 1.1
P 1.20 – Does the Framework require/ask FIs to undertake a regular review and monitoring of ESG risk exposure at aggregate portfolio level?
Yes
Source Reference Detail
–
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Page 18 – H
P 1.21 – Does the Framework require/ask FIs to establish and maintain an external inquiry/complaints/grievance mechanism for interested and affected stakeholders in relation to ESG practices?
Yes
Source Reference Detail
–
Source Reference Document
Policy Guidelines for Green Banking (BB, 2011)
Source Reference Description
Page 19 – I
Pillar 1 - ESG Integration - Expectations of FI Actions
Tracking, Reporting & Disclosure
P 1.22 – Does the Framework require/ask FIs to report ESG risks and performance to the regulator or industry association?
Yes
Source Reference Detail
Policy Guidelines for Green Banking (BB, 2011), Page 5 – 3.2.
Source Reference Document
Policy Guidelines for Green Banking (BB, 2011)
Source Reference Description
Page 5 – 3.2
P 1.23 – Does the Framework require/ask FIs to report on ESG integration publicly?
Yes
Source Reference Detail
GBCSRD Circular No.: 04/2013 (Para-3.2; Page-5)
Source Reference Document
Policy Guidelines for Green Banking (BB, 2011)
Source Reference Description
Page 6 Para 3.2
P 1.24 – Does the Framework require/ask FIs to track credit risk (e.g. loan defaults) and/or financial returns in relation to ESG risk level?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Strategic Alignment
National Framework
P 2.25 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
Yes
Source Reference Detail
Environmental and Social Due Diligence Risk Assessment Tool (2018), ESDD Checklist, Question 2.4 on physical climate risks and GHGs. The Bank of Bangladesh Sustainable Finance Policy (2020) makes reference to the Policy Guidelines for Green Banking and ESRM/ESDD as part of Section 3.3.2 on Screening as related to E&S and climate risk, and the Climate Risk Fund (Page 23).
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)ESDD Risk Assessment Tool (BB, 2018)
Source Reference Description
Refer to description
P 2.26 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with International Goals & Standards
P 2.27 – Does the Framework make reference to international agreements or frameworks to address climate?
Yes
Source Reference Detail
Message from the Governor refers to Bangladesh’s vulnerability to climate impacts, and the Sustainable Development Goals in the context of environmental, social, and climate management.
Source Reference Document
Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 2017)
Source Reference Description
Message from the Governor refers to Bangladesh’s vulnerability to climate impacts, and the Sustainable Development Goals in the context of environmental, social, and climate management.
P 2.28 – Does the Framework recognize or align with established regional or international good practice for climate risk management and disclosure by FIs?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with National Goals & Strategies
P 2.29 – Has the regulator or industry association aligned the Framework with national goals to address climate change in line with the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement?
Yes
Source Reference Detail
Makes reference to the Policy Guidelines for Green Banking and ESRM/ESDD as part of Section 3.3.2 on Screening as related to E&S and climate risk, and the Climate Risk Fund (Page 23). The Sustainable Finance Policy references the Sustainable Development Goals and Bangladesh’s Nationally Determined Contribution to the Paris Agreement (Page 3).
Source Reference Document
The Bank of Bangladesh Sustainable Finance Policy (2020)
Source Reference Description
Page 23 Section 3.3.2
P 2.30 – Does any cooperation exist between agencies, or between government and industry association, with respect to policy design or implementation related to climate risk management?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.31 – Does any inter-agency data sharing currently exist related to climate risk management by FIs?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 2.32 – Has the regulator or industry association undertaken research on historical impacts to the economy and financial sector from climate change, and/or future expected impacts resulting from physical and transition climate risks?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.33 -Does the Framework identify key sources of GHG emissions – such as in particular sectors – as priorities in the proactive management of climate risks by the financial sector?
Yes
Source Reference Detail
Makes reference to the Policy Guidelines for Green Banking and ESRM/ESDD as part of Section 3.3.2 on Screening as related to E&S and climate risk, and the Climate Risk Fund (Page 23). The 2020 Sustainable Finance Policy Rationale (Page 2), among other priorities, aims to address climate risk by channeling private investment into the transition to a climate neutral, climate-resilient, low-carbon projects across specified sectors and activities, and including the objective of reducing GHGs and preserving / enhancing carbon sinks.
Source Reference Document
The Bank of Bangladesh Sustainable Finance Policy (2020)
Source Reference Description
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P 2.34 – Does the Framework incorporate the conservation/restoration of natural carbon sinks (such as oceans, forests, mangroves, grasslands, and soils) as an important part of reducing climate change risks? (e.g., through guidelines, scenario analysis, targets, or incentives for FIs)
Yes
Source Reference Detail
Makes reference to protetcting habitats and natural forests and carbon sink services (pages 16 and 32).
Source Reference Document
The Bank of Bangladesh Sustainable Finance Policy (2020)
Source Reference Description
Page 16, 32
P 2.35 – Has the regulator or industry association developed an internal strategy to address climate risk, and/or embedded climate risk management into its governance, organizational structures, and budget as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.36 – Has the regulator or industry association undertaken any activities to expand and deepen analytical understanding of national and/or cross-border physical and transition climate risks, and to raise awareness as to how these risks may transmit to, and impact, the financial sector?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Technical Guidance
P 2.37 – Has the regulator or industry association developed risk assessment approaches, methodologies, or tools to understand and assess the financial sector’s exposure to climate risk as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Supervisory Activities & Incentives
P 2.38 – As part of the Framework, has the regulator clarified supervisory expectations with regard to climate risk management by FIs, including consideration of international good practices?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.39 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.40 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
Yes
Source Reference Detail
Reporting (Page 17) and the Bank of Bangladesh Green Banking Reporting Template (2018). Sustaibale Finance Policy (2020) reporting on quarterly and annual basis (Chapter 4, Item 2, page 30).
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)Green Banking Reporting Template (BB, 2018)
Source Reference Description
Refer to description
P 2.41 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 2.42 – Does the regulator or industry association regularly collect and/or report market-level and/or FI-level data on climate-related financial sector risks as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Strategy & Governance
P 2.43 – Does the Framework require/ask FIs to establish a strategy for climate risk management with responsibility at the board of director level (or highest governing body)?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Organizational Structure & Capacity Building
P 2.44 – Does the Framework require/ask FIs to define the roles and responsibilities and related capacities of the FI’s senior management and operational staff in identifying, assessing, and managing climate-related financial risks and opportunities?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Policies & Procedures
P 2.45 – Does the Framework require/ask FIs to expand existing risk management processes to identify, measure, monitor, and manage/mitigate financial risks from climate change?
Yes
Source Reference Detail
Bank of Bangladesh Guidelines on Environmental & Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (2017), Section 1 Overview (Page 7), Point 2: “The ESRM guideline has a bigger focus on social and climatic risks which are becoming relevant and crucial for Bangladesh”. Environmental and Social Due Diligence Risk Assessment Tool (2018), ESDD Checklist, Question 2.4 on physical climate risks and GHGs.
Source Reference Document
ESDD Risk Assessment Tool (BB, 2018)Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 20
Source Reference Description
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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking, reporting & disclosure
P 2.46 – Does the Framework require/ask FIs to report on their overall approaches to climate risk management in line with international good practices (e.g., TCFD), or establish a timeline by which FIs should begin to align their reporting with such practices?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.47 – Does the Framework require/ask FIs to identify, measure, and report on exposure to sectors which are vulnerable to transition risk and physical risk?
Yes
Source Reference Detail
Section 1 Overview (Page 7), Point 2: “The ESRM guideline has a bigger focus on social and climatic risks which are becoming relevant and crucial for Bangladesh”. Environmental and Social Due Diligence Risk Assessment Tool (2018), ESDD Checklist, Question 2.4 on physical climate risks and GHGs.
Source Reference Document
ESDD Risk Assessment Tool (BB, 2018)Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh (BB, 20
Source Reference Description
Refer to description
P 2.48 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce portfolio greenhouse gas (GHG) emissions on a regular basis?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 2.49 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce exposure to climate change risks at the portfolio level on a regular basis?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Strategic Alignment
National Framework
P 3.50 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy?
Yes
Source Reference Detail
d) regulations (mandatory) Reference: Sustainable Finance Policy for Banks & Financial Institutions; Department: Sustainable Finance Department-> SFD Circular No. 5, Date: 31/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
P 3.51 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy
Yes
Source Reference Detail
Defines sustainable finance to cover banking, capital markets, investment and insurance.
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)Green Banking Reporting Template (BB, 2018)
Source Reference Description
–
Pillar 3 - Financing Sustainability - Strategic Alignment
Alignment with International Goals & Standards
P 3.52 – Has the regulator or industry association developed a strategy, regulations, or set of frameworks for stimulating the allocation of capital to sustainable assets, projects, and related sectors in line with global goals, such as the Sustainable Development Goals (SDGs)?
Yes
Source Reference Detail
Sustainable Finance Department-> SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
P 3.53 – Does the Framework recognize and/or align with existing standards, voluntary principles, or market good practices related to sustainable finance instruments?
Yes
Source Reference Detail
d) European Union (EU) Sustainable Finance Taxonomy and Green Bond Standard (under development) Reference: Sustainable Finance Policy for Banks & Financial Institutions; Sustainable Finance Taxonomy & Green Taxonomy. https://www.bb.org.bd/mediaroom/circulars/circulars.php# (Department: Sustainable Finance Department-> SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Alignment with national goals & strategies
P 3.54 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
Yes
Source Reference Detail
1. BB has aligned the Sustainable Finance Policy for Banks & FIs with INDCs and SDGs to achieve the stated national objectives. Reference: Sustainable Finance Policy for Banks & Financial Institutions; https://www.bb.org.bd/mediaroom/circulars/circulars.php# (Department: Sustainable Finance Department-> SFD Circular No. 5, Date: 30/12/2020).
2. BB has established several Refinance Schemes such as: Refinance Scheme for Environment Friendly Products/Initiatives, 4.2 Refinance Scheme for Islamic Banks & Financial Institutions for Investment in Green Products/Initiatives, Green Transformation Fund and Technoligy Development Fund.
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
P 3.55 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
Yes
Source Reference Detail
Circular No. 5, Date: 30/12/2020-> Sustainable Finance Policy for Banks & Financial Institutions-> ‘Foreward’)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
P 3.56 – Does any inter-agency data sharing currently exist related to stimulating and monitoring sustainable finance flows?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 3 - Financing Sustainability - Strategic Alignment
Overall Approach & Strategy
P 3.57 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
Source Reference Detail
Sustainable Finance Policy for Banks & Financial Institutions; https://www.bb.org.bd/mediaroom/circulars/circulars.php# (Department: Sustainable Finance Department-> SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Technical Guidance
P 3.58 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
P 3.59 – Does the Framework provide guidelines for extending green, social or sustainability-focused loans (excluding bonds)?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
P 3.60 – Does the Framework provide guidelines for issuance of green, social or sustainability bonds?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020) Page: 24/43; Chapter 3.7 )
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
–
P 3.61 – Does the Framework require/ask for external party verification to ensure the credibility of sustainability instruments?
Yes
Source Reference Detail
Under the sector of Green/Environment Friendly Establishments, the product named ‘Green Industry established or being established’ is needed to be varified green-building rating system certified by appropriate authority (In Bangladesh – SREDA, Internationally – USGBC-LEED, BREEAM, CASBEE, EDGE, GRIHA)
Source Reference Document
Refer to Description
Source Reference Description
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Supervisory activities & incentives
P 3.62 – Does the regulator or industry association monitor information reported by FIs related to green/social/sustainability investment, lending, and other instruments to prevent greenwashing and social-washing?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 31/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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P 3.63 – Are there any financial or non-financial incentives for FIs to develop and grow green, social, or sustainability finance instruments?
Yes
Source Reference Detail
Circular No. 5, Date: 30/12/2020-> Sustainable Finance Policy for Banks & Financial Institutions; Page: 40/43; Chapter 4)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Tracking & Aggregated Disclosure
P 3.64 – Does the regulator or industry association collect and/or publish data from FIs or other sources about allocation of capital to green/social/sustainability assets, projects, or sectors?
No
Source Reference Detail
Circular No. 5, Date: 31/12/2020-> Sustainable Finance Policy for Banks & Financial Institutions)
Source Reference Document
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Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Strategy & Governance
P 3.65 – Does the Framework require/ask FIs to establish a strategy, governance, or high-level targets, including at the Board of Directors level, for capital allocation to sustainable assets, projects, or sectors?
Yes
Source Reference Detail
According to SFD Circular Letter No.- 05/2020, BB has provided a yearly target for Green Finance to achieve for all Banks & Fis.
Source Reference Document
Sustainability Rating of Banks and Financial Institutions (BB, 2020)
Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Organizational Structure & Capacity Building
P 3.66 – Does the Framework require/ask FIs to define internal staff roles and responsibilities to encourage finance flows to green, social, and/or sustainability-focused investments?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020) Page: 13/43, Chapter: 3.5 )
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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P 3.67 – Does the Framework require/ask FIs to develop and maintain internal staff capacity on green, social, or sustainability products through regular training and learning?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020) Page: 14/43, Chapter: 3.5.8 )
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Policies & Procedures
P 3.68 – Does the Framework require/ask FIs to put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, and reporting on green, social or sustainability-focused products?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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P 3.69 – Does the Framework require/ask FIs to appoint an independent external reviewer to confirm that the FI’s internal framework meets the requirements of the recognized national framework and regulations, or aligns to international standards?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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P 3.70 – Does the Framework require/ask that FIs create incentives for managers to increase sustainable loans or investments in the portfolio?
Yes
Source Reference Detail
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Tracking, reporting & disclosure
P 3.71 – Does the Framework require/ask FIs to publish annual updates on the performance and impacts of the sustainability instruments in compliance with relevant national and/or international standards?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020) Page: 14/43, Chapter: 3.6 )
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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P 3.72 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020) Page: 14/43, Chapter: 3.6 )
Source Reference Document
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Source Reference Description
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P 3.73 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020)
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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P 3.74 – Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on green, social, and/or sustainability bonds or other positive impact investments?
Yes
Source Reference Detail
Circular No. 5, Date: 31/12/2020-> Sustainable Finance Policy for Banks & Financial Institutions )
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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P 3.75 – Does the Framework require/ask FIs to report publicly on their green, social and sustainability-focused finance activities and positive outcomes or impacts (i.e. not only to the regulator or shareholders)?
Yes
Source Reference Detail
SFD Circular No. 5, Date: 30/12/2020) Page: 14/43, Chapter: 3.6 )
Source Reference Document
Sustainable Finance Policy for Banks and Financial Institutions (BB, 2020)
Source Reference Description
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