SBFN Member Since:

2012

Member Organisations

Bangladesh Bank

Progress Against Pillars and Sub Pillars

This graphic can also be found within this country’s 2019 Country Progress Report. 

Framework Documents

RefCountryPolicies/ Principles/ GuidelinesYearIssuer
8Bangladesh

SFD Circular No. 01 Target and Achievement of Sustainable Finance & Green Finance

2021Bangladesh Bank
10Bangladesh

Sustainability Rating of Banks and Financial Institutions

2020Bangladesh Bank
11Bangladesh

Sustainable Finance Policy for Banks and Financial Institutions

2020Bangladesh Bank
12Bangladesh

Green Bonds Development in Bangladesh. A market landscape

2019Bangladesh Bank
13Bangladesh

Green Banking Reporting Template

2018Bangladesh Bank
14Bangladesh

ESDD Risk Assessment Tool

2018Bangladesh Bank
15Bangladesh

Guidelines on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Bangladesh

2017Bangladesh Bank
16Bangladesh

Policy Guidelines for Green Banking

2011Bangladesh Bank

Strategic Development - Alignment with global E&S standards and best market practices

S1.1 – Does the framework make reference to international E&S targets (SDGs, Paris Agreement, Global Compact)?

Yes

(2) – Page 3 – Message from Governor
Guidelines on E&S Risk Management – Page 3 – Message from Governor
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)
S1.1 Source Reference Document Url–Import-Test-Sat

S1.2 – Does the framework make reference to established international E&S risk management standards (IFC PSs, EPs)?

Yes

(2) – Page 11 – 5.
Guidelines on E&S Risk Management – Page 11 – 5.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)
S1.2 Source Reference Document Url–Import-Test-Sat

S1.3 – Does the framework make reference to established international sustainability reporting standards (GRI, SASB)?

Yes

(1) – Page 5 – 3.2.
Policy Guidelines for Green Banking – Page 5 – 3.2.
Policy Guidelines for Green Banking (BB, 2011)

S1.4 – Does the framework make reference to established international climate finance reporting standards (TCFD)?

No

S1.5 – Does the framework ask to make E&S policies, practices and results externally verified (assurance, independent review)?

Yes

(1) – Page 5 – 3.2.
Policy Guidelines for Green Banking – Page 5 – 3.2.
Policy Guidelines for Green Banking (BB, 2011)

Strategic Development - Multi-stakeholder collaboration

S2.1 – Does the framework involve interagency collaboration between financial supervisors/regulators, industry association, and FIs?

Yes

S2.2 – Does this collaboration also include other public agencies (e.g., environmental agencies, ministries)?

Yes

S2.2 Source Reference Document Url–Import-Test-Sat

S2.3 – Does this collaboration also include representatives of civil society (e.g., NGOs, associations, media)?

Strategic Development - Alignment to NDCs and with National or Regional Climate Change Targets

S3.1 – Is the framework aligned with national NDCs or other national and regional policies on climate?

No

S3.1 Source Reference Document Url–Import-Test-Sat

S3.2 – Has the SBN member identified the main climate risks (transition/physical) for their local financial sector?

No

ESG Integration - Governance of E&S

Role of Governing Bodies on E & S

E1.1 – Does the country policy require one of the FI’s governing bodies (e.g., Board of Directors, Executive Committee, Supervisory Board, etc.) to approve an E&S strategy?

Yes

(1) – Page 2 – 1.1.
Policy Guidelines for Green Banking – Page 2 – 1.1.
Policy Guidelines for Green Banking (BB, 2011)

E1.2 – Does the policy require management to report on E&S strategy implementation to the governing bodies?

Yes

(1) – Page 2 – 1.1.
Policy Guidelines for Green Banking – Page 2 – 1.1.
Policy Guidelines for Green Banking (BB, 2011)

E1.3 – Does the policy require FI operational bodies to report to the governing bodies (or specific Board committee) on implementation of the E&S strategy?

Yes

(2) – Page 13 – B.
Guidelines on E&S Risk Management – Page 13 – B.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

Organization

E1.4 – Does the framework ask FIs to define E&S roles and responsibilities?

Yes

(1) – Page 2 – 1.1.
Policy Guidelines for Green Banking – Page 2 – 1.1.
Policy Guidelines for Green Banking (BB, 2011)

E1.5 – Does the framework highlight the E&S roles of front office staff and second lines of defense (e.g. risk officers and/or compliance officers)?

Yes

(2) – Page 13 – B.
Guidelines on E&S Risk Management – Page 13 – B.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)
E1.6 – Does the framework ask FIs to define E&S competencies for each role?

No

E&S Risk Management

E&S Policy

E2.1 – Does the framework ask FIs to formalize an E&S or ESG policy?

Yes

(1) – Page 2 – 1.1.
Policy Guidelines for Green Banking – Page 2 – 1.1.
Policy Guidelines for Green Banking (BB, 2011)

E2.2 – Does the framework encourage FIs to go beyond E&S requirements of local laws and regulations?

Yes

(1) – Page 5 – 2.5.
Policy Guidelines for Green Banking – Page 5 – 2.5.
Policy Guidelines for Green Banking (BB, 2011)

E2.3 – Does the framework ask FIs to set E&S objectives and targets?

Yes

(1) – Page 4 – 2.2.
Policy Guidelines for Green Banking – Page 4 – 2.2.
Policy Guidelines for Green Banking (BB, 2011)

E2.4 -Does the framework ask FIs to publicly disclose their E&S policy and its governance?

Yes

(1) – Page 2 – 1.9.
Policy Guidelines for Green Banking – Page 2 – 1.9.
Policy Guidelines for Green Banking (BB, 2011)

Risk Assessment

E2.5 – Does the framework require FIs to carry out appropriate E&S due diligence at transaction level?

Yes

(2) – Page 7 – 2. & 3.
Guidelines on E&S Risk Management – Page 7 – 2. & 3.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

E2.6 – Does the framework require FIs to carry out appropriate E&S due diligence at client level?

Yes

(2) – Page 7 – 2. & 3.
Guidelines on E&S Risk Management – Page 7 – 2. & 3.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

E2.7 – Does the framework encourage FIs to categorize projects/clients according to their level of E&S risk?

Yes

(2) – Page 7 – 2. & 3. and Page 18 – F.
Guidelines on E&S Risk Management – Page 7 – 2. & 3. and Page 18 – F.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

E2.8 – For high-risk transactions, does the framework encourage site visits to be organized?

Yes

(2) – Page 18 – H.
Guidelines on E&S Risk Management – Page 18 – H.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

E2.9 – In case of negative E&S impacts, does the framework invite FIs to engage with clients to implement mitigation measures?

Yes

(1) – Page 5 – 2.6.
Policy Guidelines for Green Banking – Page 5 – 2.6.
Policy Guidelines for Green Banking (BB, 2011)

E&S Covenants

E2.10 – Does the framework ask FIs to incorporate E&S covenants and investment conditions into legal agreements with clients?

Yes

(2) – Page 18 – G.
Guidelines on E&S Risk Management – Page 18 – G.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

Project Supervision & Portfolio Review

E2.11 – Does the framework ask FIs to develop processes to manage E&S risks during supervision?

Yes

(2) – Page 18 – H.
Guidelines on E&S Risk Management – Page 18 – H.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

E2.12 – Does the framework encourage a periodic review of E&S risks at aggregate portfolio level?

Yes

(2) – Page 18 – J.
Guidelines on E&S Risk Management – Page 18 – J.
Guideline on ESRM for Banks and FIs in Bangladesh (BB, 2017)

Training

E2.13 – Does the framework ask FIs to develop and maintain E&S capacity through regular training?

Yes

(1) – Page 2 – 1.8.
Policy Guidelines for Green Banking – Page 2 – 1.8.
Policy Guidelines for Green Banking (BB, 2011)

E2.14 – Does the framework highlight the training of (i) front office staff, (ii) second lines of defense (risk officers and/or compliance officers), and (iii) E&S experts?

No

External Communication Mechanism

E2.15 – Does the policy require FIs to establish and maintain an inquiry/complaints/grievance mechanism in relation to E&S or ESG practices?

Yes

(1) – Page 19. I.
Policy Guidelines for Green Banking – Page 19. I.
Policy Guidelines for Green Banking (BB, 2011)

E & S Reporting

E2.16 – Does the policy require FIs to report regularly on E&S or ESG performance, including publicly, to investors or to regulators?

Yes

(1) – Page 5 – 3.2.
Policy Guidelines for Green Banking – Page 5 – 3.2.
Policy Guidelines for Green Banking (BB, 2011)

E2.17 – Does the policy make E&S or ESG reporting and disclosure more consistent across financial institutions through principles, guidelines, or templates?

Yes

(1) – Page 7 – 1.
Policy Guidelines for Green Banking (BB, 2011)
Policy Guidelines for Green Banking (BB, 2011)

E & S Integration - Enforcement

E3.1 – Is the implementation of the framework regularly verified or is information regularly collected from FIs?

Yes

(1) – Page 5 – 4.
Policy Guidelines for Green Banking (BB, 2011)

E3.2 – Is there any financial and/or non-financial incentive for establishing ESRM systems?

Yes

E3.3 – Are there sanctions/penalties/warnings in case of noncompliance with the framework?

No

Climate and Green Finance - Products and Services

Defining sustainable assets and financial products

C1.1 – Does the framework provide definitions and examples of green assets?

Yes

(1) – Page 4 – 1.4.
Policy Guidelines for Green Banking (BB, 2011)

C1.2 – Does the framework provide a comprehensive taxonomy of green assets?

No

C1.3 – Does the framework provide definitions, examples, or a taxonomy of social and/or sustainable assets?

No

C1.4 – Besides debt products (loans, bonds), does the framework provide definitions and examples of different types of sustainable finance products/services (e.g., saving accounts, means of payment, insurance, private equity, etc.)?

Yes

(1) – Page 2 – 1.4.
Policy Guidelines for Green Banking – Page 2 – 1.4.
Policy Guidelines for Green Banking (BB, 2011)

Green Finance Product Guidelines

C1.5 – Does the framework provide guidelines for green loan/green credit or other green financial assets (excluding green bonds)?

Yes

(1) – Page 3 – 1.4.
Policy Guidelines for Green Banking (BB, 2011)
Policy Guidelines for Green Banking (BB, 2011)

C1.6 – Does the framework provide guidelines for issuance of green bonds?

No

C1.7 – Does the framework refer to existing standards (e.g., ICMA’s Green Bond Principles or CBI’s Climate Bonds Standard)? 

No

C1.8 – Does the framework recommend external party verification (e.g., second party opinion, assurance, certification)?

No

Climate and Green Finance - Climate and Green Investment Reporting

Tracking and Disclosure of Climate & Green Finance

C2.1 – Does the framework ask FIs to report on climate/green finance flows (quantitatively or qualitatively)?

Yes

(1) – Page 4 – 1.9.
Policy Guidelines for Green Banking – Page 4 – 1.9.
Policy Guidelines for Green Banking (BB, 2011)

C2.2 – Does the framework ask FIs to report on climate risk exposure at portfolio level?

No

C2.3 – Does the framework encourage FIs to report publicly on their green finance activities (i.e. not only to the regulator)?

Yes

(1) – Page 6 – 4.
Policy Guidelines for Green Banking – Page 6 – 4.
Policy Guidelines for Green Banking (BB, 2011)

Climate and Green Finance - Measurement

Calculation of Environmental Benefits

C3.1 – Does the framework ask FIs to calculate the environmental benefits of their investments? (e.g., CO2 emission reduction, water saving, etc.)

No

C3.2 – Does the framework provide a taxonomy of potential environmental impacts?

No

C3.3 – Does the framework provide methodologies, tools, and/or templates to measure and report these impacts?

No

Climate Risk Exposure Assessment

C3.4 – Does the framework ask FIs to monitor climate risk exposure at portfolio level?

No

C3.5 – Does the framework refer to specific climate risk exposure methodologies (e.g., climate scenario analysis, climate risk stress testing, calculation of carbon risk exposure, tracking of energy efficiency for real estate portfolio)?

Yes

C3.6 – Does the framework encourage FIs to take mitigating steps on these risks?

No

Climate and Green Finance - Incentives

Financial and Non-Financial Incentives

C4.1 – Does the framework provide any type of incentives for green financial products and services?

Yes

(1) – Page 6 – 5.
Policy Guidelines for Green Banking – Page 6 – 5.
Policy Guidelines for Green Banking (BB, 2011)

C4.2 – More specifically, does the framework introduce financial incentives on green products and services?

Yes

(1) – Page 6 – 5.
Policy Guidelines for Green Banking – Page 6 – 5.
Policy Guidelines for Green Banking (BB, 2011)